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The New Zealand Railways Magazine, Volume 5, Issue 2 (June 2, 1930)

An Overture to Reciprocity

page 11

An Overture to Reciprocity.

In 1925 New Zealand exported to Canada £ 423,068 worth of goods, and imported from Canada goods worth £ 3,916,237. In 1929 this huge adverse balance of trade had been much reduced, New Zealand's exports being worth £ 3,353,975, and her imports worth £ 4,787,181. In that readjustment of trade, a leading part was played by butter, which, benefiting by the treaty of 1925-a treaty which was made between Canada and Australia, but to the benefit of which New Zealand was admitted-gained entry to Canada on payment of a duty of one cent per pound. So far did New Zealand butter profit by this opportunity that in 1929, according to official figures, 80 per cent. in value of New Zealand's exports to Canada was butter. Now, however, the long delayed action of the Canadian Government has materialised, and the duty is to be raised from one cent to three cents. As the matter is in negotiation between the two countries no more need be said than to point out that overtures for closer trade, if prefaced by a trebling of the duty on 80 per cent. of the trade of one of the parties, start with a tremendous initial incubus.