FREE TRADE PLAN

Press, Volume XCV, Issue 28257, 20 April 1957, Page 12

FREE TRADE PLAN

Effects On Britain Weighed (N.Z. Press Association—Copyright) (Rec. 7 p m.) LONDON, April 18. The Federation of British Industries said yesterday that under the proposed European free trade plan\ British industry and commerce stood to lose most of the direct and indirect protection they now enjoyed in the home market. But, on the other hand, they would have greater scope for keener competition with Continental producers and traders. Owing to legislation or Government policies, however, they were likely to be more sensitive to any disadvantages compared with European competitors. British industrialists would, therefore, be likely to demand that if they were to compete in European free trade they must be in a position to do so on equal terms. How this could be secured would emerge progressively as the free trade area came gradually into operation during the next 12 to 15 years. But some factors demanded attention. The federation warned that cheapness and efficiency in transport would be vital to British competitive power. The English Channel tunnel project might well acquire a new significance. The free trade area would lend even more urgency to the need for a thorough reform of the taxation of British industry and commerce. Would-be Continental competitors were apparently more favourably treated. The federation also said that though the Government had promised speedy action against dumping, or subsidies on goods imported into Britain, only experience would show whether existing powers would be adequate.