Samoa Against British Preferential Tariff
p. 12 · Read in the full issue
Desire To Revert to Pre-1914 System
BEFORE the Western Samoa adminis tration was taken over by Germany in 1900, there was an ad valorem duty on all goods entering the country, to help pay government costs. Germany maintained the old system—an ad valorem duty on all goods, irrespective of country of origin—but increased the duty to 10 per cent, in 1901 and to 12 per cent, in 1909. Many goods came in free, and some—like liquor, tobacco and fire-arms —were specially taxed.
The New Zealand military administra tion followed the same system from 1914, until 1920, when the Mandate Govern ment functioned. Thenceforward, all goods with an origin in British countries were given a preference of 7i> per cent, over other goods. When World War II came, the rates of duty had climbed up to 17i per cent, on British goods and 25 per cent, on others, plus a heavy sur charge In mid-1949, the new Legislative As sembly of Western Samoa set up a Select Committee — “(a) To consider, in view of the statements and discussions at the Fourth Session of the United Nations Trusteeship Council, whether the existing British Preferential Tariff should be maintained or, if not, what principle in this respect should be adopted in determining rates of customs duties in future; “(b) To take evidence, on oath or otherwise in the discretion of the Select Committee, from, and ascertain the opinions of, representatives of the various sections of the community upon the existing Preferential Tariff and upon any desirable modifications thereto.’’
This Committee now has reported, and its conclusions are thus summarised: — 1. That the existing British tariff pre ference should be abolished: 2. That a new tariff should be drawn up providing for — (a) specific duties on certain lines of low value on which it is de sired to impose a high rate of duty (e.g., cigarettes, tobacco, petrol); (b) a general rate of ad valorem duty to be imposed on all goods not otherwise provided for, re gardless of their country of origin: (c) a lower rate of ad valorem duty to be imposed on certain speci fied staple lines, regardless of their country of origin. (d) a free list. 3. That there should be a single con solidated rate of duty in place of the present basic duty plus sur charge ; 4. That the Government should con sider the advisability of valuing all goods for the assessment of Cus toms due in terms of Samoan cur rency; 5. That the Government should con sider undertaking a thorough sur vey of the economic resources of the Territory, with special reference to the possibility of expanding existing industries and establishing new ones.
In its deliberations upon the form of tariff best suited to the needs of Western Samoa, the Committee has kept in mind two main principles:— 1. That any proposals which it might make should be designed so as to allow the Government to obtain the same amount of revenue, in proportion to import trade, as at present; 2. That the price of staple lines, prin cipally foodstuffs, should be kept as low as possible.
Editorial Note
AS Western Samoa is a New Zealand Trusteeship, the New Zealand Government probably will have to be consulted before any such far-reaching changes are made.
The newly-elected NZ Parliament is sharply critical of the Leftist influences which, since 1945, have been seeking the disintegration of the British Empire; and, if the Trusteeship Council’s tendency to interference in Samoan affairs is regarded as coming in that category, the Select Committee’s report will get short thrift in Wellington.
However, Trusteeship territories like Western Samoa have been given a new status since 1945, which seems to place them partly outside Imperial controls; and New Zealand probably will accept that viewpoint, and permit the implemen tation of the Report. NZ businessmen will not like it, however. The Western Samoa administration has cost NZ a lot of money, in special grants and subsidies—why, therefore, should New Zealand not get the benefit of trade with Western Samoa?
The trade figures (1947 are the last available) are worth quoting:—
British imports Into Samoa New Zealand £289,892 Australia 133,396 United Kingdom .. .. 120,671 Canada 98,701 Fiji 23,338 Other countries .. .. 18,093 Total British imports .. £684,091 Foreign Imports Into Samoa United States £224,890 Iran 7,379 Other countries .. .. 7,413 Total foreign imports .. £239,682 “The most important reasons why Samoa trades with these five British countries and the United States,” says the report, “are not difficult to find. They are the countries with which the Territory has reasonably good shipping connections.
All but the United Kingdom are within, or upon the borders of the Pacific; and the United Kingdom, owing to the scale of its trade with Pacific countries, operates regular and frequent trans-Pacific freight services. Samoa trades with these countries not so much because they pro duce what she needs —for other countries do that as well —as because they have means of sending their goods to Samoa with at least fair regularity and without unduly expensive trans-shipment.”