The Press. Thursday, April 1, 1920. The Australian Tariff.

Press, Volume LVI, Issue 16798, 1 April 1920, Page 6

The Press. Thursday, April 1, 1920. The Australian Tariff.

Although we lack the full details of the new Australian tariff, it is pretty obvious that its general tendency js accurately enough summed up by the British merchant whoso comments are cabled to.us to-day. "While "giving us a welcome preference over "foreigners," he says, "Australia evi- " dently does not want to encourage "imports."" This British merchant points out that a policy of non-importa-tion "may raise a difficult position re- " garding shipping;" it is possible, he observes, that there will be insufficient tonnage to lift all that Australia desires to export.. The Australian protectionists will reply that this will not matter, for the Commonwealth Government will provide its own ships; and one must admit that there will be nothing illogical about a policy that will thus buttress an anti-importation programme with an intense system of virtual subsidies on exports. The new tariff provides for substantially increased preference to Great Britain, and for reciprocal tariff relationships with other parts of the Empire, subject to the condition that Australia will not admit trade reciprocity with dominions where the economic conditions are lower than those in Australia. There is also an intermediate tariff for foreign countries reciprocating, anti-dumping duties, and a deferred tariff to encourage the establishment of new industries. It is not made entirely clear whether the preference to Britain is absoluto or conditional upon British preference to Australia. The tendency in protectionist circles in Australia has been to deny any obligation to give favours to anybody without a quid pro quo. The "Age" puts tho view of these unsentimental protectionists as follows: "While Australia still " believes in British preference, it is a " matter for discussion whether that "policy can be developed further as a " one-sided arrangement. Local representatives of British manufacturers " declare that they do not object to the "highest possible tariff against foreign " countries if the preference to Great " Britain be made sufficiently favour- " able. It would be possible, of course, u to adopt this suggestion and carry it "-Jar enough to give Great Britain a o'monopoly in the supply of competitive not produced in Australia, ''"and the people might have further " experiences similar to that which they "have had in the supply of sewing " thread. Australia has to develop its "own country, and while it is anxious " to accept the slightest encouragement " to give British trade special advan"Uiges, it can hardly jyoce<nl tfa*

" expense of its trade elsewhere. It " wants a natural compensation in the

" shape of a reasonable preference for " its own exports in the British market. "That preference can be given without "a tax on the food of the British "masses, and without affecting the "cost of British production. The enor"mous profits which foreign countries, " some of them none too friendly, have " taken out of the British markets dur- " ing the last five years ought to have " taught a lesson. The Dominions " shouldered enormous burdens during "the war, and when they grant the "Mother Country a valuable trade preference they need feel no embarrass- " ment in asking for the same treat- " ment as they concede." It will be very unfortunate if the spirit visible in this extract develops to the point of commanding {hat Britain shall be treated as a foreign country like any other, because in that case Britain's export trade to Australia would suffer, and for a longer period of years than is within the future of any present-day politician it will remain more important that Britain should grow strong than that Australia should attain to whatever national strenglii can be secured by keeping her trade and industry in a great hothouse of high tariffs, anti-dumping measures, and deferred subsidies. If, however, Britain continues to receive an absolute preference, Britain's position will not bo seriously prejudiced, for even with any conceivable duty British goods will I>e imported and sold, for the policy of extreme Protection towards which Australia has been tending will result in a greatly increased cost of production. Our own Government intend to deal with the tariff in the coming session, and if they are wise they will regard the Australian tariff policy as interesting chiefly for its exhibition of points to be avoided. I