USE OF IMPERIAL PREFERENCE

Press, Volume XC, Issue 27404, 17 July 1954, Page 7

USE OF IMPERIAL PREFERENCE

“Little Difference To ( British Trade” ■ (Special Correspondent N.Z.P.A.) (Rec. 11 p.m.) LONDON, July 16. Taking into consideration that little more than half of Britain’s exports went to Commonwealth countries and that only half of these enjoyed preferences, it is unlikely that Imperial preference could make a difference of more than 5 per cent, in Britain’s total exports to the world as a whole, says Sir Donald MacDougall, Fellow of Nuffield College, Oxford, discussing in the “Financial Times” how Imperial preference works in practice. He says that the effects of Imperial preference on total sales of United States manufacturers was entirely

negligible. Summing up the present position of Imperial preference Sir Donald MacDougall says: “We give preference on something like half pf our imports from the Commonwealth. Likewise we receive preference on about half of our exports to the Commonwealth, but the proportion varies widely from country to country. “Thus we enjoy preference on about nine-tenths of our exports to Australia and New Zealand and perhaps fourfifths of our exports to Canada, but on orily one-quarter to one-third of our exports to India, South Africa and Eire. “The average rate of preference is about 6 per cent, on trade in each direction. The average rate is about twice as high on goods enjoying preference and there are still very few preferences as high as 50 per cent. “But not many goods enjoy preference of more than 20 per cent.—less than one-tenth of our exports to Commonwealth countries and less than one-twentieth of our imports from them, do better than this. “Preferences are undoubtedly/of importance in certain trades where the rate is relatively high or the market highly competitive and sensitive to price differentials, but the effect on our total export trade cannot be more than marginal," he said.