TRADE WITH CANADA.

Hawke's Bay Herald-Tribune, Issue 150, 13 July 1937, Page 4

TRADE WITH CANADA.

Ffora Ottatva we Have to-day dome -tverd of iSegotiatirOns intO which our Minister 6f Finance and of Marketing, the Hoh. W. Nash, has entered with Canadian anthofitieS for the purpose of stfikihg a hew trade agreeraent with ihe Big Dominion. It has been nnfortunate that the time Mr. Nash was able to allow himself for tbese negotiations on his passage • through Canada brief at the best hnd was furfher shortened by unforseen delay in arrival at the Canadian capital. Thfe consequehce is that as yet there would seem to be nothing very definite to report. All that the cablfenfan can tell us is that it is nnderstood that the old agreeraent hds been br'oadened oiit with a view to increasing trade both \frays. That there is ample rooni for a readjustment of the mntual exchange of material ahd cOhxmbditieS is sbown hy statistical figures. For inStanCe, in 1985 onr exports to Canada were valiied a.t £657,600, while our imports from that conixtry ran up to £2,439,000, leaving an unfavourable balance for New Zealand of over £l|-million. For the six years ending 1985 the corresponding aggregate figures were about £3£million and £l0£-million, thus giving a balance on the wtong side for us of no Iess than £7|-miillioii. It was xiot, however, , always as had hs this, for, if we go back to the three iinmediately preceding years, 1928-30, we find the corresponding aggregates to have been £8J-million and £l 1^-millioii. This very marked change in trading relations followed updn the Mposition by Canada, in the interests of her own daify farmers, of what were virtually prohibitive import duties on New Zealand butter. This put the two countries pretty Well at arni's-length so far as mutual commerce was concemed. In 1982 soiiie soft Of new1 trade agreement Was reached, but, as the foregoing figures indicate, it was not of a very satisfactory hatUre ffroift Ottr point of view. In the intefval there have been some mddificatidfis, but even for last - yeafj thOtigh the trade fignres rose on both sides, the balance * against New Zealand was still little short of £2|-million. This was mainly due to the revival of p£osperity in this cduntry that began to shoW itself in 1988 and, as it advanced, manifested itself in a marked increase in the importation of motor crs, and their accessories, of which a goodly prdportion have come from Canada. Beyond this, of courSe, NeW Zealand fakes from Canada A very coflsiderable volume of manufactured wares, such as print-paper, footwear, hosiery &nd electrical machinery, as Well as a Very Oonsiderable c[uantity of timber. On the other hand, Canada wants from us very little exeept iS the form of raw material, such as wool, hides, skins and the like. At one time, as the result of Canadian dairymen being given some freer access to northern United States marketS for their milk and cream, it was hoped that the demand for New Zealand bdtter might revive to some extent. That hope has, howeter, never been fulfilled, nor does there Seem much prospect of it now, seeing that Canada is herself exporting butter to the Old Country. Mr. Nash has thus had a by no means easy problem to solve when setting about to seek Some new arrangement that would have the effect of evening up oii£ trade figuifgs witk Canada.