Ashburton Guardian Magna est Veritas et Prævalebit. SATURDAY, JUNE 17, 1933. JAPANESE TRADE.

Ashburton Guardian, Volume 53, Issue 210, 17 June 1933, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. SATURDAY, JUNE 17, 1933. JAPANESE TRADE.

The difference that has arisen over Japanese trade in India is by no means a new matter, for in various ways trouble has been experienced at intervals for a considerable time. The alleged dumping of Japanese cotton piece goods caused the Government of India recently to announce an increase in the duty on these imports, with the result, according to the Japanese Economic Federation, that "Japanese cotton interests are so perturbed over the revision of the Indian import tariff that they are prepared to boycott Indian raw cotton. Japan may impose a prohibitive tariff on wool, wheat and other products imported from Britain and the Dominions." The reluctance of India to adopt the anti-dumping measure which will come into operation in October was due, according to an article in "The Times" Trade and Engineering Supplement, to hints of retaliation, notably in regard to Indian raw cotton, of which Japan has been the predominant purchaser. It was asserted the other day that "prohibitive" duties may be imposed by Japan on Indian raw -cotton and iron and also on Australian wool and wheat and Canadian timber and wheat. As far as Australian wool is concerned the consequence of an excessive duty would undoubtedly react against Japanese industry. Last season Japan purchased 597,772 bales, representing 22 per cent, of the total Australian shipments. Whether the threats against importations from Empire countries will be carried out is therefore open to question. But the mere expression of such a threat cannot fail to disturb international relationships, a result especially regrettable at a time when all the energies of all countries should be directed toward rehabilitation. That India has justification for taking action to protect her own industry and that British industrial and commercial interests have reason to be disquieted is proved by the fact that severe competition from Japan is not confined to the Empire countries. The Australian trade delegation now in the Far East found that in the Netherlands Indies low-priced Japanese goods, particularly textiles, had undercut supplies from Holland as well as from Great Britain, and there was talk of raising the tariff. In Sourabaya Japanese cotton dresses could be bought for the Australian equivalent of fourpence halfpenny. An electric iron cost 2s 6d, against 10s 6d in Australia. Here Japan has an exchange advantage of 35 per cent. No European nation would accept the standard of living forced upon the Japanese workers by extremely low wages and Jong hours of labour. Yet it is due to these conditions that the Japanese manufacturer has been enabled to under-cut his Western competitors. As to the remedy, it is in practice not so much a question of what should be done, as what can be done.