CANADA RAISES BUTTER DUTY

Sun (Auckland), Volume IV, Issue 961, 2 May 1930, Page 1

CANADA RAISES BUTTER DUTY

NEW RATES HIT NEW ZEALAND

INCREASE OF 300 PER CENT. EFFECTED

TRADE AGREEMENT WILL BE CANCELLED

United P.A.—By Telegraph—Copyright Received 9.13 a.m. OTTAWA, Thursday. rE Minister of Finance, Mr. Chas. A. Dunning, in his Budget speech today, announced that the duty on New Zealand butter would be increased from one cent to four cents a pound. The trade agreement now operating with New Zealand would be terminated on October 12. The new duties on butter will take effect from the same date.

Mr. Dunning said after October 12 Canada will extend full British preference to New Zealand. The Government of Canada had proposed to the Government of New Zealand that a direct trade agreement be negotiated to supercede the present arrangement. “We hope to be able to arrange for h meeting of representatives of both countries in the near futures,” he said, “in order to endeavour to reach a mutually satisfactory arrangement.” The Minister estimated a surplus of £8,901,400 for the fiscal year. He also announced numerous and complex changes in tariff rates, involving under the general tariff increased rates on 54 items and decreases on 46. Under the intermediate tariff the increases are on 35 items and decreases bn 90. and under the British preference the increases are on lThtems and decreases on 270. When the revision is complete, the customs tariff will consist of 1,188 items, of which 559 items will be free pnder British preference. The changes proposed, Mr. Dunning said, will have the effect of greatly increasing the British preference in the Canadian market. “Canada will not engage in a tariff war with any country," he added. “The tariff changes do not result in any bargain with any other country, and they are the expression of a spirit in which Canada will approach the Imperial Economic Conference in a few months’ time. “We do not Intend to meet other countries of the British Commonwealth of Nations in a spirit of petty bargaining, but rather in a broad spirit of willingness to become, in ever Increasing measure, good customers to those who treat us in a like manner. This is the spirit In which we desire to meet all nations, but we believe that within the British Commonwealth of Nations lies the greatest measure of opportunity for mutual development of trade, because of our common heritage, kindred institutions and common patriotism.” The Budget was calculated to enable Canda to buy more freely from nations which dealt freely with the ; Canadians. The countervailing tariff makes the d»ty on vegetables, eggs and grain ihe same as that of the countries exporting these goods to Canada. The!

duty on British-grown tea is removed, and Canadians abroad are made the subject of income-tax. Mr. Dunning announced that he expected to complete a Newfoundland trade agreement shortly.

AUCKLAND COMMENT

REASONS FOR INCREASE The announcement of an early increase in the tariff on New Zealand l butter entering Canada caused con- . siderable comment in Auckland dairy . produce exporting circles this morn- ; ing. Although It was not totally un- , expected, most merchants, had hoped tha-t it would not be applied for some time to come. Interviewed this morning, Mr. C. M. ; Croft, the Canadian Trade Commis- , sioner, stationed at Auckland, had nothing to say. He had not received . i any official advice on the pending ' change from Canada, and was not in a , position to make any official statement. To those in close touch with the , position It has been obvious for some ' time now that strong pressure was being brought to bear on the Canadian Government to increase the duty on New Zealand butter, of which imports to a total value of approximately £1,500,000 have been made during the season just closing. Exports to Canada from New Zealand this season were particularly heavy, and have helped largely, as a result of a favourable forward agreement made last spring by Amalgamated Dairies, Limited, to even up the margin of deficit on this season’s output from the Waikato. One of the big factors In the bringing about of the increase is undoubtedly the duty to be put on Canadian cream entering the United States; Canadian farmers had built up a big business in fresh cream with the United States, but the recent notice of intention to place a tariff wall against this trade has given the Canadian farmer further argument In favour of some form of retaliation. The industrial sections, hacked up by commercial interests, have been strong opponents of any increase on [duty on New Zealand butter.