NEW TRADE TREATY.

Auckland Star, Volume LXVI, Issue 269, 13 November 1935, Page 7

NEW TRADE TREATY.

Agreement Between Canada And America. MUTUAL BENEFIT EXPECTED. WASHINGTON, November 12. President Roosevelt took occasion in the course of his Armistice Day address at the Tomb of the Unknown Soldier in Arlington Cemetery to announce that a reciprocal trade agreement had been concluded with Canada. A similar announcement was made by the Canadian Prime Minister, Mr. W. L. Mackenzie King, in Ottawa. Mr. Roosevelt hailed tlie treaty as .another tie of friendship between the two historically friendly neighbours. The new* treaty, the draft of which has not been made public yet, will be signed within a few days at Washington and at Ottawa. A general outline of its provisions, according to observers in Washington who followed the protracted negotiations is as follows:—An agreement on Canada's part to stabilise her whole tariff system, including the elimination of the procedure whereby duties on United States imports were raised and lowered almost at will. In addition Canada will grant outright {ariff 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, radios, seasonal and dried fruits, grazing cattle and other items of less importance. In return it is believed that tha United States will maintain on the free list three main items of Canadian export, namely, newsprint, pulp wood and wood pulp. In addition she will grant a liberal reduction of the duty on whisky and possibly a lesser reduction of the duties on rough timber, seed, potatoes, nickel, dairy products and certain raw products. It is indicated that United States Government leaders hold high hopes that the new treaty will greatly accelerate the flow of trade between the two countries, which has dropped from 1,400,000,000 dollars in 1029 to about 500,000,000 dollars in recent years.