BRITISH TRADE.

Press, Volume LXVIII, Issue 20551, 20 May 1932, Page 6

BRITISH TRADE.

IMPORTANCE OF OTTAWA 1 CONFERENCE. PREPARATION OF 'DISCUSSIONS. Of the major industries of Britain i none will be more vitally interested in ; the forthcoming Ottawa Conference than . that of motor manufacturing (writes ; A. G. Throssell in the "Weekly Northern Whig"). I' l preparation for its '; discussions, the Society of Motor Manu facturers and Traders recently laid their case before the Secretary of State for the Dominions. In the Home market our makers are not now afraid of any competition from abroad, but the future of our motor, export trade, which has recently shown promise of valuable response to the enterprise and vigour of a few firms, will be in the balance at Ottawa. Difficult and delicate problems will have to be solved, primarily on account of the motor industry of Canada itself. Canada and the Preference. This industry has expanded considerably in the last year or two, and now comprises seventeen, vehicle factories and thirty-two works turning out accessories and components. Tbey represent in all some £20,000,000 of invested capital. But t*he greater part of these businesses are branches founded by United States firms, partly to reach the Canadian market, now guarded by fairly high tariffs, but also to take advantage of Imperial preference in exporting to Britain and to the Dominions and Colonies. ' ' - .* A certain percentage of "content" qualifies a vehicle to enjoy these preferences. If it is 25. per cent. Canadian in material or labour it is admitted to this country as a Canadian-built vehicle, paying 22 per cent, duty instead of 33 l-3rd per cent. In New Zealand where the Imperial preferential tariff is 10 per cent, and the general tariff 40 per cent., motor vehicles must be 50 per cent. Imperial in content, but generally one-quarter Canadian suffices, and it is not difficult for the American firms to pass their Detroit-made, Canadian-as-sembled cars, with perhaps some Canad-ian-made accessories, as products of the Empire.entitled to Imperial preferences. British Makers' Plea. Therefore the Society is pressing that no vehicle should qualify for Imperial preference unless it is 75 per cent, the product of Imperial material and , labour. British manufacturers have no , desire to handicap Canadian industry, - but they do urge that Canada should . not be used by United States mdus- \ trialists as a base for their exports, sharing unfairly (as they maintain) m, l the growing system of Imperial preferj ences. , New Zealand car registration returns t for February show that a British make, [ the Morris, has outsold all others .dur-. ing the month. The British proportion of sales in that country has been* steadily rising, and is evidence of the effects " of the qualification of 50 per cent. Im- ! perial demanded there, as against .25 f per cent, elsewhere. But, as the S.M. , M T urges a 75 per cent, qualification , would help the British export trade still more strongly, or alternatively comr pel the use of more British steel in the \ Canadian factprjeg.