World Talks Tariffs

Sun (Auckland), Volume IV, Issue 1079, 17 September 1930, Page 9

World Talks Tariffs

CANADA’S BUTTER RATES UP New Zealand Affected EMPIRE TRADE A POLITICAL ISSUE TILE world is talking tariffs. Canada has raised the duties on butter to eight cents a lb, which seriously affects New Zealand, Australia’s tariii was strenuously defended at a conference at Brussels; and Empire tariffs are likely to decide the next political move in England.

United r.A.—By Telegraph—Copyright Reed. 10.20 a.m. OTTAWA, Tuesday. The duties on butter under the new tariff, as announced in Parliament today by the Prime Minister, Mr. R. R Bennett, are 8 cents a lb under the British preference, 12 cents on the intermediate list, and 14 cents under the general provision. The tariff changes numbered approximately 130 and covered a broad variety of goods, including the iron and steel schedules, cottons and woollens, and many classes of farm machinery. Mr, Bennett announced that a general revision of the tariff would be undertaken at next session of Parliament. Today’s changes dealt only with such items as would ensure additional employment. Mr. Bennett declared that his earlier estimate that 25,000 men and women would be assisted in securingemployment through the Government’s proposals was too conservative. “The Government has had definite assurance from those charged with production,” he said, “that the steps now being taken would result in increasing that number and give jobs to Canadian labour.” It is also announced that positive assurance has been given by manufacturers that no increase in prices to the consumer would be fixed, but should this happen Cabinet possessed the power to remove the protection. One of the most important features of the new tariff is the imposition of a specific duty in addition to the ad valorem impost on textiles, from the yarn right through to the finished garment.

The countervailing duties introduced in the Dunning Budget are wiped out, and are replaced in almost every instance by rates higher than those now prevailing. The rates on fresh meats are increased. Lamb and mutton are now two cents, two and a-half cents, and six cents. Agricultural - machinery shows a heavy advance. Numerous items on the intermediate list have jumped from 7£ per cent, to 15 per cent., and in the general some rise from 7i per cent, to 25 per cent., while generally the British preference remains free. OPPORTUNE ARRIVAL MR. FORBES IN OTTAWA MAY BE NEGOTIATIONS The Prime Minister of New Zealand, Mr. G. W. Forbes, is expected to arrive opportunely in Ottawa today, and he is expected to conduct negotiations with the Canadian Government in regard to the tariff changes announced yesterday. The new butter tariff is double that instituted on May 1 last and will replace it on October 12 at the expiration of the Canadian-Australian trade agreement, under which the tariff on New Zealand butter is only one cent a pound. It is believed that the new tariff is to eliminate the old countervailing duties which provided that, in the event of any country imposing a higher duty than that ruling in Canada. equivalent rates could be imposed in that Dominion. The working of the countervailing duties has presented many difficulties. The Acting-Trade Commissioner for Canada, Mr. H. L. E. Priestman, had no comment to make on the change this morning. He explained that lie had as yet received no official intimation of the Government’s action. Neither were merchants in the City willing to comment until further

details were available. It was pointed out that the 14 oents under the general provision was imposed with special regard to the United States as the States’ tariff on Canadian butter was also 14 cents. The trade agreement expired on October 12, and it was a fortunate coincidence that a large cargo of New Zealand butter would be landed in Vancouver two days beforehand according to present shipping arrangements. EMPIRE FREE TRADE POSITION OF DOMINIONS RECIPROCITY—NOT ABOLITION Reed. 9.5 a.m. FREMANTLE, Today. Senator Elliott, when interviewed on his arrival on the Ormonde, said that while in England he made a study of Lord Beaverbrook’s Empire free trade policy and had found it did not include the abolition of Dominion tariff walls, but represented the principle of reciprocal preference, which was what Australian Prime Ministers had been seeking since the days of Sir Alfred Deakin.

He said: “We must realise it is useless trying to establish economic laws without regard to the rest of the world. If we will not think with our heads, we will be forced to think with our stomachs.” AUSTRALIA’S TARIFF “A dOOD CUSTOMER” Reed. 10.30 a.m. LONDON, Tuesday. Senator Foil represented Australia at the International Parliamentary Commercial Conference at Brussels, at which 40 nations were rer -ented. Members roundly condei d Australia’s tariff, but Senator Foil defended it, and pleaded that Australia was endeavouring to restore her trade balance and readjust her finances. He urged that the- world should regard Australia as a good customer endeavouring to solve her temporary difficulties. GREAT EXPECTATIONS IMPERIAL CONFERENCE TALK ELECTION ISSUE AT HOME LONDON, Tuesday. A message from Geneva states that the President of the British Board of Trade, Mr. 'William Graham, at a conference with journalists, especially those representing the Dominions, expressed the opinion that the tariff convention would not prejudice the discussions of the Imperial Conference, which would include any proposals, whether tariffs or preferences If any change of policy were approved there would be ample opportunity for Britain to withdraw from the truce before the next Budget. The Government, says the political correspondent of the “Weekly Dispatch,” is viewing the approaching Imperial Conference with trepidation, recognising that if it fails to make a success of it by not producing decisions that will assist to solve the employment problem, the Conservatives are likely to make a determined effort to force a General Election.