NEW ZEALAND-CANADIAN TRADE

Otago Witness, Issue 4028, 26 May 1931, Page 79

NEW ZEALAND-CANADIAN TRADE

A REGRETTABLE INCIDENT (From Our Own Correspondent.) VANCOUVER, April 12. An extraordinary change has come over the trade relations of New Zealand and Canada, since the latter raised the duty on butter and the former retaliated with a higher duty on automobiles. From January to October, 1930, prior to the alteration of the duty, New Zealand exported approximately 37,000,000 lb of butter to Canada, or an average of 4,000,0001 b a month. In subsequent months butter arrived in Canada as follows: — November .. .. 641 b December .. .. 84,2421 b January .. .. 1,79G1b February .. .. 132,3381 b The total value of motor ears exported from Canada to New Zealand in 1930 was £1,120,000, nearly 8000 cars being exported, or over G5O per month. In the month of January, this year, Canada exported 225 cars, valued at £19,800. In February only four cars were exported. These figures show the effect of the cancellation of the agreement with New Zealand, and demonstrate that the results have been most unfortunate for both countries. The Vancouver Daily Province, which has always sponsored the agreement, is urging Canadian business interests to stress the need for immediate action and to urge the Government at Ottawa to restore the agreement. “ New Zealand,” it says, “feels the loss of her butter trade keenly, and has an idea that Australia has got ahead of her through the negotiation of a reciprocal agreement with Canada. Premier Forbes has been blamed severely for the prevailing conditions, and has been criticised for not returning from the Imperial Conference by way of Canada. The Australian agreement, however, is still hanging fire. Mr Stevens, the Alinister at Ottawa most interested in carrying it through, has been ill, and in Australia the Government has been very much worried by both financial and political troubles. When the Australian agreement has been completed, no doubt steps will be taken to arrange similar treaty with New Zealand. The two southern dominions are ho tn good customers of Canada, and have a market capable of being developed. They have similar products to export, and there should be a market for some of these in Canada. It was never intended that one should be treated differently from the other.

But while negotiations are draggins, New Zealand is becoming impatient, and the Chamber of Commerce at Auckland has decided to take up the matter of better relations with the New Zealand Government, the other New Zealand chambers of commerce and the Canadian boards of trade. It is to be hoped its efforts will meet with success. If the method of negotiating, instead of clapping on high duties, had been adopted from the beginning, the trade between the two countries might have been in a more satisfactory condition to-day.” A very regrettable incident in the present controversy is the attack made in the New Zealand press by Air W. H. C. Alacaulay, of Vancouver, on the Dominion's Commissioner, Air W. J. Collins, in saying: —"A year or so ago, we heard that a Trade Commissioner had been sent here, but nothing i s known about him or his whereabouts, or whether he is still in Canada. With Australia pushing her butter in, and making a real effort, through her much-alive Trade Commissioner, New Zealand mav soon lose what trade she has.” Quite apart from the unwarranted and unjustifiable attack made by Air Alacaulay on a deserving public officer, he piobably does not know what is known to the whole commercial community of Vancouver, that is, that Nev.Zealand has had a very active Government agent in Vancouver. Air W A James, for the past 25 years. A simple inquiry from any member of the commercial community, tile Board of Trade, or the public press would have placed him m possession of the facts. Air Alacaulay must surely be aware that the reason for Australia securin" the butter trade formerly held bv New Zealand has nothing whatever to do with the activity of either trade commissioner It is due to the fiscal policy or the -Bennett Government, which permits Australia to sell her butter in Canada at 32 cents (Is 4d) per lb while making it impossible for New Zealand to do so with a duty of eight cents (4d) per lb. Distortion of plain statistical facts will not help to solve the problem, which is simply a matter of asking Canada to honour the pledge she has honoured under the Gentleman’S Agreement for over 30 years, until last August, of extending to New Zealand the same Imperial preference accorded to another dominion.