CANADA ASSURES U.K. OF EXPORT MARKETS

Press, Volume XCVII, Issue 28700, 25 September 1958, Page 13

CANADA ASSURES U.K. OF EXPORT MARKETS

(Rec. 9.30 p.m.) MONTREAL, September 24. Canada yesterday assured Britain of a longrange, wide-open Canadian market for a number of ( key British exports. The move was hailed by British leaders as fitting in with the spirit of Commonwealth trade expansion.

But some divergence between British and Canadian views still remained on the lifting of all trade discriminations within the Commonwealth. The President of the Board of Trade (Sir David Eccles) suggested that all import quotas on Commonwealth goods should be removed as quickly as possible. The Canadian Minister of Finance (Mr Donald Fleming) cafled for a trade attack on a broader front “We cannot hope to flourish by endeavouring to develop trade between ourselves alone,” .Mr Fleming told the Commonwealth trade conference. World markets were vital. “We are seeking, therefore, to consolidate and expand our Commonwealth trade but not to create a discriminatory Commonwealth economic bloc.” He pledged that Canada would bind herself to the maintenance of duty-free entry of a number of British goods, such as aircraft, cars, trucks, china, diesel engines, printing presses and other products. Steel and iron products and pipes and tubes, which entered at varying rates of preferential duty, alsc would be tied down at existing rates so that British exporters could plan ahead and not fear a possible Canadian tariff increase, such as in the case of woollen cloth.

The Chancellor of the Exchequer (Mr Heathcoat Amory) said the Canadian move would provide a great opportunity for an expansion of British shipments to Canada. Sir DaVid Eccles agreed, but he suggested the Commonwealth might take steps which could lead to freer trade in the partnership In the case of food, he said, import quotas were more damaging than tariffs. Britain’s imports of foo I from Commonwealth sources were free not only of tariffs but also of quo.tas. The Canadian press said this seemed to be an oblique reference’ to Canada, which had been criticised by New Zealand for maintaining embargoes on dairy products while providing her farmers with high price supports. Sir David Eccles said the trade conference should come out with a firm resolution not to place any obstacle in the way of exports of manufactured goods for binder-

developed parts of the Commonwealth.

If imports clashed with domestic industries, then consultations should be held to agree on an “orderly evolution of such trade.” Commonwealth countries should also agree to remove such discrimination as still existed among them. This should be done as quickly as possible. They should pledge not to discriminate against each other in the future, either by tariffs or quotas, except in Canada, where currency reserves were endangered.