TRADE WITH U.S.A.

Auckland Star, Volume LXVIII, Issue 40, 17 February 1937, Page 7

TRADE WITH U.S.A.

Australian Exports Show Big Advance. FAVOURABLE BALANCE NOW. (Received 11.30 a.m.) SYDNEY, this day. For the first time for many years, trade between Australia and the Ignited States is shown to have a balance in favour of the former, states the Canberra correspondent of the "Sydney Morning Herald."

For the first half of the current financial year the balance in favour of AusWalia is £1,000,000, which was reached after gold and gold concentrates valued at about £2,500,000 were included in exports to the United States.

Even if gold exports are excluded, the ratio of commodity trade shows a complete change from the trade situation prevailing between the two countries in recent \ ears. This change is likely t<> be used as an argument against con timiauce of the clauses in the Commonwealth trade diversion policy, which arv discriminatory against the United States.

It is recognised, however, that the incidence of this policy on the American export industry may have been a factor in inducing American exporters to come to Australia for products formerly purchased elsewhere, and thus restore the balance of trade between the two countries. This would justify Australia in resuming normal trade with the United States.

The development of the export trade to America shows how little the Commonwealth suffered from the formal retaliatory measures applied by Washington against Australian produce when the trade diversion policy was announced last May.