MARKET IN BRITAIN

Manawatu Standard, Volume LVII, Issue 224, 21 August 1937, Page 16

MARKET IN BRITAIN

RECIPROCITY URGED. DANGERS TO NEW ZEALAND. HAMILTON, Aug. 19. Referring to quota, tnriif, and other marketing difficulties at the annual meeting of the New Zealand Co-opera-tive Dairy Company, Ltd., to-day, Mr William Goudfellow. advisory director, quoted figures to show the amount of duty and tax payable on New Zealand butter if and when exported to the following countries: — Germany per lb minimum Franco 7jd per lb plus a quota Belgium sid per lb plus a quota U.S.A 7d per lb. Canada 5d per lb, plus dump duty.

United Kingdom ... Free. He stated further that a number of countries competing with New Zealand for the British and other markets received export bonuses of various kinds, as under, which enabled lower prices to be quoted:— Holland Bonus on exports equal 9d per lb on local sales. Argentine 4-sllis of a penny per . lb. Irish Free State Approx. 40 p.c. on market values. Denmark I Govt, subsidy on local ' sales per lb., plus profit on German sales paid to exporters. Franco Sd per lb. Australia An equalisation scheme to subsidise, exports. WHERE ARE ALTERNATIVE MARKETS? In view of these quotas, tariffs, and other obstructions to sales, he asked, where and how was New Zealand to develop alternative markets to that of the United Kingdom ? It was self-evi-dent, lie said, that there was no immediate prospect of developing any other substantial market anywhere in the world. For this reason, it was regrettable tbafc the Government had been unable to enter into a bilateral agreement with the Government of the United Kingdom, which would retain for New Zealand the privileges of the Ottawa Agreement. Cnnada had recently made a bilateral agreement with Great, Britain; hut in order to do so she had to reduce tnriffs on 40 per cent, of the goods she imported from the United Kingdom. Presumably ing to high internal costs, New r Zealand was unable to offer any worthwhile tariff reduction. Mr Goodfellow pointed out that to raise tariffs to enable local industries to compete profitably with imported goods from the United Kingdom would undoubtedly seriously prejudice New Zealand’s chances of holding a free market in Great Britain. The position, in his opinion, .required very careful handling, and the question might he asked why had not some attempt already been made to correct New Zealand’s adverse trade balances with U.S.A., Canada, and more especially Australia, from which country shiploads of manufactured goods were now pouring * into New Zealand? These countries, said Mr Goodfellow, were all New Zealand’s competitors in the British market. Why not build up goodwill in Great Britain by developing reciprocal trade? The great danger to New Zealand of ignoring the interests of our only substantial customer had been pointed out repeatedly in the past, and he strongly urged that some attention should be given to this matter in the near future.

Australia 6d per lb. Hawaiian Islands ... 7d per lb. Japan 62(1 per lb. China aid per lb. Java 2i(J per lb. Manila M per lb.