NEW AMERICAN TARIFF

Hokitika Guardian, 11 May 1929, Page 2

NEW AMERICAN TARIFF

EFFECT ON DOMINION. WILL INCREASE ADVERSE TRADE BALANCE. AUCKLAND, May 8. Wiion the new American tarifl, as cabled this morning, was submitted to ]ilr T. hi. Bowie, oi' Fletcher, Ltd., lie said that the increases Wert; not unexpected, as it had been rumoured for some months that the tariffs won!,l, be increased. It was one of the; p;t in .as of the Republican policy that protection would he given to the farmers of America, and, with the election of President Hoover, a tariff rise • was anticipated. “It simply means that the American market for beef, mutton and lamb is eliminated so far as New Zealand is concerned,” said Mr Bowie, “but the effect is not serious just now, as the Dominion has not a great surplus for export at present. The present duties are three cents per lb lor l.eef and veal, two and it half cents for mutton, and four cents lor lamb .'Hie new duties mean a considerable increase. and, in a nutshell, the position is that the market is shut to us.” Air Bowie quoted figures showing that from October, 1928, to April Jo, 1.929, New Zealand exported to the United States 25,746 quarters of beef, 390 carcases of mutton, and 4452 carcases of lamb, and for the corresponding period, October, 1927, to Aprii 10. 1928 the figures were 16 69(1 quarters of beef, 2005 carcases of mutton, and' 12.514 carcases of lamb. “It is not possible to say to what extent the suggested tariff is likely to prove prohibitive to such products mentioned in the report.” said Dr E. P. Neale, secretary of the Chamber ol Commerce. “It does appear, however, in most instances that ' prohibition will be the case. It is of interest to consider to what extent New Zealand’s exports to America in recent years have amounted. Our exports of butter to the United States were approximately £230 COO per annum. The wool exports fluctuated considerably from year to year, 'and this fact suggests that there is probably a' very narrow margin of profit, which is likely to he removed by raising the duty. For tiie past five years tile ■average exports of wool to the -Idated States have fluctuated in value from a third of a. million pou’ndrf am' 11:; filly to one and one-third millions':* From this it is clear that wool is one of the items likely to be aifoctcd most. The raised duties on meat are not likely to affect Now Zealand seriously. hut it is fortunate that quite a number of commodities which rank high in New Zealand’s export trade do not appear in the list, though possibly they may bo struck at through the general clauses of the Bill. These items are sausage casings, which approximately amount to one-third of a million pounds in value annually, rabbit skins (one-third of a million), hides (a quarter of a million), sheepskins (from three-quarters to one arid a half millions), and kauri gum (more than £IOO.OOO worth). None of these items appears' to be struck at. If the ■new duties succeed in their purpose it means tlntt the importation of our butter and wool into the United States js impossible as a commercial proposition, and that will mean iv reduction of exports from New Zealand to the United States of at least £1.000,000.

“What the reaction may be it is impossible to say. but it can be definitely affirmed that it will still more accentuate the present marked onosidediiess of New Zealand’s trade with North America, and the United States particular. The 1928 exports from New Zealand to the United States were valued at approximately £4,250,000, and the imports at £8,250,000. Likewise in 1927 the exports to the States were about £2,600,000, and the imports £8,000,000. The effect of the curtailment of the exports to the extent of £1,000,000, as is quite possible under the new scheme of duties, would be to render New Zealand’s imports, from the United States equal to not less than three times the value of our exports to the States.”