TARIFF WAR

Hokitika Guardian, 2 June 1931, Page 6

TARIFF WAR

AGAINST CANADA. BY N.Z. GOVERNMENT. NEARLY EVERY DUTY RAISED. (By Telegraph—Per Press Association) WELLINGTON, June 1. The Government had decided that, from to-morrow, practically the whole range of Canadian imports, to New Zealand will be deprived of the advantage of tlie British Preferential Tariff rates, and will he placed on the general tariff list. This decision will mean that, with few exceptions all Canadian exports to New Zealand will be treated as foreign goods, and will be taxed accordingly at the ports of entry. The Government’s action has been taken in view of a complete failure to reach any satisfaction with the Canadian Government regarding reciprocal tariffs.

Negotiations have been going on between the two Governments ever since Canada decided to increase her duty on'New Zealand butter from one cent to four cents per pound about the middle of last year. Although it had agreed that conversations should take place between the two Governments when the Prime Minister, of New Zealand, Mr Forbes, was in Ottawa, on his way to the Imperial Conference, yet on the day that he arrived in the Canadian capital the duty on New Zealand butter was increased to eight cents per pound. As a result of this, 1 New Zealand then imposed additional tariffs on Canadian .motor vehicles, tyres, and engines. The trade in these commodities between the two Dominions then fell away to practically nothing. . The imports from Canada which will be excluded from the increased duties will be gum boots and certain classes of paper anl wire. In addition, no alteration has been made in the tariffs on Canadian rubber tyres and motor vehicles and engines, the duty on which was increased last August. The attitude of the New Zealand Government is revealed in a telegram that was sent by the Prime Minister, Mr Forbes, to Mr Bennett, Canadian Prime Minister, on May 26tli. In this, Mr Forbes makes it clear that he is unable:to expdet anything from further negotiations at present, although he expressed the hope that a Canadian Minister will be able to come to New Zealand and discuss th© situation as sodn as possible. In his 'cable to the Canadian Prime Minister, Mr Forbes outlines the tar iff position as it exists ■at present between the two countries', and points out the disadvantages, from which New Zealand is suffering. He says that strong pressure has been brought to , b'fe{fl'nipbjPthe ! 'N%w Zealanl Government, at various times to increase the duties on many lines of Canadian goods for which more than sufficient for local requirements can be manufactured here. These requests haci consistently been refused. On the ground that mutual sacrifies were necessary in order to promote inter-im-perial trade, however, substantial remissions of duty were granted by New Zealand upon Canadian imports, without any corresponding advantages for New Zealand, and as increased taxation was necessary to balance the Budget, the present position could not be maintained.’-after June Ist. CANADIAN ANXIETY. OVER TAXATION. RETRENCHMENT COMING. OTTAWA, May 31. Canada is awaiting the Prime Min ister, Mr Bennett’s budget pronouncements in the House of Commons with no little anxiety, as his statements as to changes in the tariff and the taxes will make them of personal significance to the people of the Dominion. -On Saturday the Cabinet wrestled with the problems which the Budget has been greatly rushed, and it is expected that the revision of the tariff schedules will not bo so comprehensive as was at first planned. On Sunday there was no indication of what the Budget would contain. It is understood that all of the air mail services in Canada will be cancelled at •van early date. There have been heavy deficits in these operations, which are understood to be the reason for the curtailment. This decision was made known by the Prime Minister, Mr Bennett, on Saturday night. It is announced from AVimiipeg by tlie AVheat Pool officials that open market selling of wheat and course grain as approved by the Manitoba Wheat Pool, under the sptional system whereby the members will be able to collect the full spot price on delivery at pool elevators, will be effective tomorrow, (Monday.) CANADIAN PAPER. STILL TO HAVE PREFERENCE. WELLINGTON, June 1. The Canadian paper that is remaining under the preferential tariff, is described as “Paper other than wrapper and carbon paper when imported in rolls not less than ten inches wide.”