The Waikato Times SATURDAY, MAY 23, 1936. TRADE WITH BRITAIN

Waikato Times, Volume 119, Issue 19893, 23 May 1936, Page 8

The Waikato Times SATURDAY, MAY 23, 1936. TRADE WITH BRITAIN

There was a remarkable statement in the reply given by .the Minister of Finance on Thursday to a deputation from the Lmted Kingdom Manufacturers and New Zealand Representatives’ Association. “We are going to ensure,” Mr Nash said, “that to the extent that Great Britain will take goods from us we will take goods from Great Britain . . . If we cannot organise bilateral agreements Wllh Great Britain, trade with Great Britain must decline." Such 5m attitude does not hefit a country which, last year, sold 83.63 of its exports to the Mother Country and imported only 50.30 per cent from that source. When the "Government comes to negotiate with Canada, Australia, or the United States then that stand might be justified, because for many years those countries have found good markets here for their manufactures and products while our sales to them have been comparatively small. New Zealand could, with reason, ask for concessions that would tend to reduce these persistent adverse balances. But to assert that unless the best customer of the Dominion consents to make bilateral trade agreements then it will lose at least part of its export trade to the Dominion is useless. The logical reply to any demand of that nature would be that the Dominion should do something to redress the heavy balance. A country that ships 83 per cent of its products to a purchaser and, in return, purchases just half its requirements from that customer, is not in a pasition to dictate however diplomatically that may be done.

Bilateral trade agreements may be part of the Labour Government’s policy, but we have much more to lose than we stand to gain by any attempt to force their acceptance on our best customers. Even when allowance has been made for invisible imports, such as freight charges and insurance, the balance of trade with Britain is in favour of the Dominion, and that being so this country is not the one that should seek for concessions. During the years of depression the Dominion had only one reliable market for its surplus produce, and for a IMinister of the Crown to assert that, unless the Mother Country meets us in the matter of agreements, trade will decline looks very like ingratitude. It has the further disqualifica—tion that it would strengthen the hands of those at Home who want to impose quotas or duties on Dominion produce. The best, indeed, the only way to counter that movement is to provide an ever—increasing market for British goods, not to discuss the possibility of trade being restricted. The latest Year Book gives the external figures for 1934 and in that year our exports exceeded our imports from the Mother Country by £22,476,478, the only favourable balance in our dealings with any British Country, so that, from the bargaining point of view, New Zealand does not hold a strong position. The idea that, in return for an assured market in Britain the Dominion would direct its policy in order to encourage imports of British goods, will not bear examination. The value of British markets is plain, and the action should be on the part of the authorities here. Year after year New Zealand has had a heavy balance in its favour with re—spect to Great Britain, yet the Prime Minister has mentioned the possibility of higher tariffs. If. this undertaking that New Zealand will take goods from Britain to the extent that that country takes goods from us is to be honoured then there is a~lot of leeway to be made up on our part. Concessions are usually made to good customers, and the financial stability of New Zealand rests upon its produce having free access to British markets. When the percentage of British imports equals the percentage of Dominion exports to Britain then, and not till then. will the country be in a position to strike a bargain.