CANADA’S BUTTER DUTY

Sun (Auckland), Volume IV, Issue 973, 16 May 1930, Page 11

CANADA’S BUTTER DUTY

“SERIOUS MATTER,” SAYS SIR JOSEPH WARD NEW ZEALAND’S POSITION Special to THE SUE ROTORUA, Thursday. The Canadian Government’s announcement that it intends to terminate, as from October 12 next, the concession which has been extended since 1925 to New Zealand butter imported into Canada, formed the subject of a statement by the Prime Minister, Sir Joseph Ward, today. “Our butter lias been enjoying the benefits of the trade agreement between Australia and Canada, and has been subject to a duty of 1 cent a lb. on importation into Canada,” said Sir Joseph. “The New Zealand Government has now been informed by the Canadian Government that this concession is to terminate on October 12, and that thereafter the rate will be increased to three cents a lb., which is the rate of duty under the British preferential tariff on butter imported into Canada.

“The Canadian Government has also proposed that a discussion regarding the trade relations between our two countries should be entered into as soon as may be convenient, with a view to negotiating a direct trade agreement. The Canadian Government has also suggested that such discussions might take place at Ottawa or in London, the latter on the occasion of the meeting of the Economic Conference later in the year. .

“Having regard to the fact that the amount of New Zealand butter imported into Canada last year was no less than £2,^00,000, it will easily be seen that the proposed increase in the Canadian duty is serious matter to New Zealand producers. CONCESSIONS TO CANADA “In replying to the Canadian Government we have indicated that New Zealand will be happy to enter into discussions on the trade relations between the two Dominions with a view to negotiating a direct trade agreement, but that we regret the decision of the Canadian Government to discontinue the present concession rate on New Zealand butter after October 12. We have pointed out that in 192 9 the export of butter from New Zealand to Canada constituted 80 per cent, of our total export trade to the sister Dominion, and that we cannot view with equanimity the proposed increase of duty. Moreover, the concessions granted by New Zealand to Canada during 1929 amounted in value approximately to £1,000,000, while concessions granted by Canada to New Zealand were approximately £300,000. NEW ZEALAND OPINION

“We have suggested that the Canadian Government agree to enter into early conversations, either at Ottawa or Wellington, so that any direct trade agreement may be implemented by legislation during the next session of the New Zealand Parliament, or, in the alternative, that the Canadian Government extend the present concessions until such an agreement can bo implemented by legislation after negotiation at the time of the Economic Conference in London.

“Should, the Canadian Government find it impracticable to adopt either of these suggestions, we have expressed the view that public opinion in New Zealand might render difficult the consideration of further concessions to Canadian products, and might prejudice the existing favourable treatment granted by New Zealand, to certain Canadian products. A further expression of the views of the Canadian Government has been' requested as soon as possible.”