TARIFFS AND TRADE

Dominion, Volume 10, Issue 2955, 15 December 1916, Page 21

TARIFFS AND TRADE

AN AFTER-THE-WAR SCHEME BRITISH AND PRO-ALLIED CUSTOMS UNION ■Many proposals, more or less practical', Have been put forward for the protection and conservation of British trade after the war is over. The idea of tho late Joseph Chamberlain of an Imperial Zollverein with preferential treatment to all parts of the Empire as against even mo6t-favoured nations is» being revived, and the foresight of one of England's greatest Secretaries of State for the Colonies duly appraised. Whatever may be the outcome, muoh thought is being given to the problem of how to increase British trade and develop the resources of the Empire after peace is proclaimed. Although peace is not yet, it is two years and a half nearer than St was, and the end may not he as far distant as some may think, so that it behoves the merchant, manufacturer, and statesman to prepare for peace as well as to continue to prosecute with vigour those war operations which will bring it about. A Comprehensive Proposal. We have before us an elaborate project described as "An after-the-war scheme for a Customs Union," by atr John Pilter, honorary president of the British Chamber of Commerce in Paris. He starts with tho assumption that "we 6hall carry this war to a successful issue from a military point of view." But he does not expect Germany to be "crushed," for the conflict, he says, does not end there._ "The Germans, with their usual foresight and thoroughness, will leave nothing to chance; and whatever be the military issue, they will pursue their avowed -aim, viz., to destroy our trade and shipping, and by this means destroy our Empire. It behoves us, therefore,.in concert with our Allies/, to consider the measures we should', take to ensure our trade, supremacy for the future, and to prevent our home, colonial, and allied markets from recapture by the enemy." What- he 'fears is that the end of the war may come' suddenly, and that we shall be taken by surprise. "Wo were unprepared for war. Let us be prepared; for peace.. Here he sees a lacuna, and to fill it is the aim of his proposal. Not that it is free from difficulties. "The institution of a Customs regime or union amongst tho Allied nations is a subject requiring to be well thought out, for so many and so diverse are the interests involved that of a necessity 1 the solution must bo somewhat intricate, added to which, it must he borne in mind that, as a consequence of the war, each of the Allied Governments will require drastically to increase their revenue." Cheap Cerman and Austrian Coods. . To meet the case he proposes (1) an

Allied Nation Tariff; (Si) a General Tariff; (3) a British Empire Tariff. The first would be a maximum tariff to be applied by the Allied nations to the goods of all other nations. The second or general tariff is for Great Britain. It must be considerably higher than the Allied nations tariff, and is "to be applied to all neutral and enemy countries." As after the peace all enemy countries would be neutral, they will benefit by concessions to neutrals. Nevertheless, Sir John Filter suggests the following clause:—"Reductions to any . extent, even to exemption, may be granted to neutral countries; but 2o reduotion be allowed to any _ enemy country which shall reduce this tariff to a rate inferior to 150 per cent, of the Allied tariff, as it is applied at the time."

At {he same time, Sir John Filter is afraid that cheap German and Austrian goods may be dumped' on the Allied markets immediately after the conclusion of peace. He seems to think, in fact, that the manufacturers of Germany and Austria are largely employed now in making goods on credit, although admittedly nearly all raw materials are very scarce and very dear in Germany and Austria. Thirdly, there is to be a British Empire tariff. This tariff is to be a maximum tariff, that is, "one that shall not necessarily be levied by any portion of the Empire, but one that shall not be exceeded by any portion of the Empire against the produce of any other portion of tho Empire." \ Not Empire Free-trade. Sir .John Pilter does not contemplate Free-trado within the Empire; he would allow all our colonies and dominions to retain their separate tariffs. But they would also have this British Empire tariff, whioh will have to be "fixed in all cases at least a small perlower than the Allied tariff," so as to give at all times to all portions of the British Empire a small but sufficient advantage over Allied as well as neutral competition. For this, purpose he sees that a Colonial Conference should be summoned at an early date. .The Allies and their colonies are to be allowed to have a similar tariff scheme. Raw material not produced in sufficient quantity within tho Empire is to be imported duty free. As part of the Treaty of Peace "Most Favoured Nation treatment is to lie imposed by Allied nations on enemy countries for a period of 50 years." Sir John wants to sell to Germany, but he does not want Germany to sell to Britain and her Allies. It is hard, however, to see why he makes this proposal; for he goes on to say that such a convention would only bo a scrap of paper, which could not "in the light of recent events be considered as binding on tho German nation."

■ Theso are the byard lines of the proposal of an eminent man in commerce, capable of taking a large view of affairs; and every merchant, "manufacturer, trade and consumer in this Dominion will doubtless give this and similar schemes some consideration in the light of the qucstions._ How would such a proposal in operation affect me and my business? How may such a scheme bo made to strengthen international trade and re-establish, the trading supremacy of the British Empire?