U.S.A. IMPORT TARIFF.

Hauraki Plains Gazette, Volume XXXX, Issue 5470, 4 September 1929, Page 1

U.S.A. IMPORT TARIFF.

PROPOSED INCREASE OF RATES. EFFECT ON NEW ZEALAND. In the twelfth annual report of the N.Z. Department of Industries and Commerce the following important information is given about trade between the United States of America and New Zealand :— “In view of the interest that has been aroused and the discussion that has taken place in regard to the proposed increases in the import tariff rates of the United States, a orief survey of the extent and nature of the trade between New Zealand and that country will not be out of place. Our relations with that country have always been most friendly, and our trade for some years has reached considerable dimensions. Actually, our trade with the United States ranks second in importance both as regards exports and imports, the United Kingdom, of course, occupying first place. “For the three, years 1926 to 1928 our exports to the United States amounted to £3,818,232, £2 681,( | c , l, and £4,260, 315, which respectively re- ' presented 8.43, 5.53, and 7.58 per cent, of the total value of our exports in those years. For the same three years our imports from the United States amounted to £10,000,507, £8,077,066, and £8,203,342, which expressed as percentages represented 20.05, 18.04, and 18.28 per cent, of the whole value of our imports. “Our chief exports to the United States are as follows, the figures for 1928 being given in parentheses : Hides, pelts, and skins (£1,874,226), wool (£701,730), frozen beef (£358,345), butter (£328,140), sausage casings and skins (£272,616), kauri-gum (£141,845), phormium fibre (£96,291), seeds (£70,087), gold (£57,941). “Approximately half of the value of the imports from the United States in 1928 consisted of motor spirit and other mineral oils (£2,263,948), and motor vehicles and materials and parts for same (£,737,059). The remainder of the trade covers a wide range of articles, in which iron and steel goods, timber, sulphur, tobacco, fruits, cinematograph films, etc., figure prominently. An important announcement was made early this year by one of the shipping companies—that, with a view towards improving trade facilities between New Zealand and Pacific coast ports of the United States, it intended installing refrigerating machinery in four vessels for that particular trade. By this means it was hoped to offer greater inducement for the export of frozen meat and other primary products from the Dominion. “In view of the efforts which are being made by exporters in this country to open up new markets and develop existing ones by instituting additional shipping facilities and in other ways, it is to be regretted that the United States Government has proposed to raise the tariff rates. The Bill, which was recently introduced, provides for increases in import levies on many classes of agricultural and manufactured commodities, and for the taxing of some articles previously admitted free of duty. Advances in duties, designed to aid the farmer and manufacturer, affect such commodities as wool, cattle, dairy products, meats, grains, sugar, textiles, glass, paper, furniture, and clothing of all descriptions. “Such important commodities as hides, leather, boots and shoes, cement, common building-brick, cedar, maple, and birch lumber long allowed free entry into the United States are now dutiable. As far as New Zealand is concerned, the main items affected are hides, wool, and butter. Hides, formerly admitted free, may now be assessed with 10 per cent ad valorem duty. Wool, on which the duty was formerly 31 cents| per pound, may now be subject to 34 cents per pound. On butter the duty was formerly 12 cents per pound, and it is now proposed to increase it to 14 cents. “Formal protests have been made by a number of nations against the duties contained in the Bill, while others have informally presented their distaste for the provisions of the Bill through their trade associations, and reprisals have been threatened in some cases.

“As to just what effect the new duties will have on exports from New Zealand it is yet too early to say, but it seems inevitable that they will have some effect. Whether the increased duties will provide sufficient determent to keep out our commodities, and sufficient incentive to induce home produce?’s to supply the full requirements of the people of the United States, depends upon the relative costs of production in the two countries, including, of course, in the case of the exporting' country, the cost of transportation and charges incidental thereto, and, further, upon whether the duties can I e passed on to the consumers, fur that is generally the first effect of the imposition of a duty or an increase in duty, owing to the producer’s desire to get his usual return.”