TRADE TREATY

Ashburton Guardian, Volume 56, Issue 27, 13 November 1935, Page 7

TRADE TREATY

CANADA AND UNITED STATES. TARIFFS TO BE STABILISED. United Press Association— Copyright) WASHINGTON, November 11. Mr Roosevelt,-at the Armistice Day address at the tomb of the Unknown Soldier at Arlington Cemetery, announced the conclusion of fi reciprocal trade agreement concluded with Canada. This announcement was made simultaneously, by Mr Mackenzie King in Canada. . , ' , The President hailed the treaty as another tie of friendship between two historically friendly neighbours. The treaty, the draft of which lias not yet been made public, will be signed after a few days. ' - The general outline of the treaty, according to observers at Washington who followed the protracted negotiations, will be an agreement, on the part of Canada, to stabilise her whole tariff system, including the elimination of the" procedure whereby duties on United States imports can he raised or lowered almost at will. In addition, Canada will grant outright tariff concessions in some form or other to several hundred exportable United States commodities, including, it is thought, coal, petroleum, iron, steel, machinery, motor cars, and parts radio sets, seasonal and dried fruits, grazing cattle, and other items of less importance. In return it i,s believed the United States will maintain on the free list three main items of Canadian exports, namely, newsprint, gralpwood, and wood pulp. In addition’ it will grant a liberal reduction in the duty on whisky, and possibly a smaller reduction on rough timber, seed potatoes, nickel, dairy products, and certain raw products. . It is indicated that Administration leaders hold high hopes that- the new treaty, will, greatly accelerate the flow of trade between the two countries, which dropped , from 1,400,000,000 dollars in 1929 to about 500,000,000 dollars in recent years. < Interviewed in. Ottawa, Mr Mackenzie King said that the treaty would •not interefere in any way with the Empire agreements made at Ottawa. He returned to Ottawa on Sunday after conferring with Mr Roosevelt and other United States officials.