H. —44.

One pleasing feature of the trade relations between the two countries is that there is more evidence of good will and better understanding in Canada towards New Zealand products than in previous years. It is yet possible that New Zealand foodstuffs, frozen or canned, may command interest, though present tariff duties in some instances render it difficult. The duty of 3 cents per pound on frozen lamb is a particular case in point, and with its removal there should be a valuable seasonable trade in this commodity. Particular attention should be paid to the judicious advertising and attractive labelling of our speciality canned foodstuffs if they are to find a place in leading Canadian stores. Trade with the United States op America. Total trade for 1936 as disclosed by the figures appearing hereunder show increases over the calendar year 1935 in both imports from and exports to the United States of America amounting to £990,371 and £409,686 respectively. The United States of America provides our second-best market, taking in 1936 5-07 per cent, of our total exports, as against 5-30 per cent, in 1935. In respect of imports, the United States of America supplied in 1936 12-52 per cent, of our total requirements, as compared with 12-50 per cent, in 1935, and, after the United Kingdom, ranks as the most important source of our imports. It is interesting to note that of the total imports into the United States of America New Zealand supplies 0-48 per cent., while, expressed as a percentage of the total exports of the United States of America, we take 0-79 per cent.

Total Trade with United States of America.

The continued growth of our direct trade with the United States of America is very much in evidence, and while it has not yet reached the proportions obtaining in 1929 the figures show that the disparity between imports and exports has improved very materially. The principal exports from New Zealand to the United States of America are given in the table below. It may be seen that sheep-skins without wool, rabbit-skins, and wool continue to be the most important items.

Principal Exports.

The marked increase in the value of wool exported is particularly pleasing, and as a matter of interest I quote hereunder figures showing the United States of America classifications of the wool imported from New Zealand and indicating the quantities which are dutiable and which are free.

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j I Year ended 31st December, Exports to the Imports from the Excess of Imports United btates. United States. over Exports. | I £(N.Z.) £(N.Z.) £(N.Z.) 1930 2,116,752 7,893,114 5,676,362 1931 .. .. .. 920,931 4,227,550 3,306,639 1932 .. .. .. 690,015 3,565,846 2,875,831 1933 .. .. .. 1,188,972 2,952,009 1,763,037 1934 .. .. .. 1,250,364 3,749,559 2,499,195 1935 .. .. .. 2,468.066 4,534,086 2,066,994 1936 2,877,752 5,525,431 2,647,679

j — Commodity. j 1933. 1934. 1935. 1936. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Wool .. .. .. .. .. 88,923 104,005 302,476 .660,777 Tallow .. .. .. .. .. 1,327 39,907 339,858 77,993 Calf-skins .. .. .. .. .. 82,537 43,684 56,931 86,240 Cattle-hides .. .. .. .. 30,869 17,360 32,766 30,567 Rabbit-skins .. .. .. .. 155,852 187,287 348,784 642,932 Sheep-skins, with wool .. .. .. 64,035 43,862 41,414 114,883 Sheep-skins, without wool .. .. .. 380,197 372,824 528,778 814,588 Sausage-casings .. .. .. .. 170,019 312,626 345,279 178,906 Grass and clover seeds .. .. .. 22,066 33,066 44,377 61,056 Butter .. .. .. .. .. 2,904 4,693 226,020 102,353