H.—2B.

It will be seen from the foregoing that the percentage of imports of goods of United Kingdom origin (and of those of British origin generally) which were accorded preference on importation into New Zealand has increased appreciably as compared with the position existing prior to the adoption of the Tariff of 1921. A consideration of the imports of goods subject to differential tariff treatment according as they are of British or of foreign origin indicates that during the past three years goods of foreign origin have tended, to increase their share of the New Zealand market. Figures bearing on this point are given hereunder :■ —

Imports of British and Foreign Goods of Classes subject to Preferential Tariff Treatment.

The total imports of the Dominion (which, of course, include classes of goods not subject to differential tariff treatment) also reflect some decline in the proportion which is of British origin. The figures for the past four years and also for the first half of 1927 are as follows : —

Total Value of all Imports according to Country of Origin.

The Commission has concluded that the principle of according tariff preference to goods of Empire origin is a fundamental feature of New Zealand's tariff policy

10

Percentages of Imports during Imports of a]l Goods of British Origin. rj wo Years ! prior to Year 1925. ; Year 1926. J 921 Tariff. J Goods subject to preference — (a) Free of duty, similar foreign goods being dutiable .. 7 30 80 (b) Dutiable, similar foreign goods being dutiable at higher rates 38 41 42 Goods not subject to 'preference— (a) Free of duty, similar foreign goods also being free of duty .. 44 21 18 (b) Dutiable, similar foreign goods being dutiable at same rates 11 8 10 Totals for all imports of British origin .. . . 100 100 100

Imports of British Goods Imports of Foreign Goods Percentage Relation. y subject to Duty at Rates subject to Duty at Rates lower than similar Foreign higher than similar British Goods. Goods. ! British. Foreign. £ £ 1923 .. .. 23,380,721 6,465,460 78-3 21-7 1924 .. .. 25,436,717 6,766,358 78-9 21-1 1925 .. .. 27,206,784 8,118,838 77-0 23-0 1926 .. .. 24,376,238 8,750,178 73-6 26-4 I

Percentage of Total. Year. British. Foreign. British. ' Foreign. , _J £ £ 1923 .. .. 31,866,993 11,511,500 73-5 26-5 1924 .. .. 35,380,909 12,696,694 73-8 26-2 1925 .. .. 38,262,276 14,194,131 72-9 27-1 1926 .. .. 34,073,741 15,815,822 68-3 31-7 1927 (six months) .. 15,152,389 7,048,315 68-3 31-7