INDO-BRITISH TRADE.

Auckland Star, Volume LXX, Issue 124, 29 May 1939, Page 4

INDO-BRITISH TRADE.

i. NEW AGREEMENT OPERATES. MANY NOTABLE CONCESSIONS. The bill giving effect to changes in the Indian Tariff Act necessitated by the ' ! trade agreement between the Government ' of India and the United Kingdom Government has been passed by the Council of State. Immediate effect had been given to clauses relating to the duties on cotton piecegoods and other articles, the rates for cotton goods of British manufacture being revised in accordance with the trade agreement. The introduction of the bill caused little surprise, for it was generally expected that, despite the Central Assembly's majority vote against the new trade pact, the Government would proceed with the necessary legislation. The bill gives a list of 44 articles on which there have existed a standard rate of 30 per cent and a preferential rate of 20 per cent ad valorem and there is provision for the removal of the preference and the introduction of a standard rate of 25 per cent. Under the agreement concessions hitherto granted to India in the United Kingdom remain almost unchanged. But the general preferences granted by India have been considerably modified. Only about 16 per cent of India's imports from the United Kingdom will now rank for preference as against the very high proportion of 82 per cent of India's exports to the United Kingdom which will be covered by concessions under the agreement.