CANADA AND BRITAIN

Dominion, Volume 23, Issue 221, 14 June 1930, Page 4

CANADA AND BRITAIN

Extension of Preference many goods on free’ list Both the House of Commons and the galleries at Ottawa were crowded to the limit of their accommodation when Mr. Charles Dunning, Finance Minister, rose to introduce his first Budget. His statement had been awaited with intense interest, inasmuch as the fortunes of parties in the coming election campaign were felt to be deeply involved with the Budget proposals and their reception by the country. In the course of his speech Mr. Dunning outlined numerous and important changes in the tariff covering more than 500 items, or almost half the total. The fundamental feature of the revision is a widespread and generous improvement in the British preference rates. The tariff is decreased in 270 cases and only increased in 11 cases, and as a result in no fewer than 589 tariff items out of a total of 1188, British goods will have free entry into the Canadian market, which means an extension of preference on a range of imports valued at 8200,000,000 (£40,000,000). Mr. Dunning declared that these changes were the expression of the spirit in which Canada would approach the coming Imperial Conference and were designed simultaneously to serve the best interests of the Canadian people and greatly to increase British preference and to enable Canadians to buy freely from those countries which buy most freely Canada’s most vital products. Help to Exporters. In the iron and steel schedules there is a comprehensive readjustment of rates on all primary forms. A new tariff group is created to cover ferro alloys, whereof all become free under British preference rate. There is an increase in the general rates on structural steel in certain shapes and weights commercially rolled in Canada, with a cut in the British preference rates on heavier classifications and on all .finished structural steel. A new British rate is established for ail kinds of hot rolled strip steel used in cold rolling, and on saw steels untempered, wth an extension on the existing preference on tempered saw steels. From the British point of view one of the most important changes is the free listing under British preference rate of all non-specified machinery, engines, boilers, electrical equipment, etc., of a class not made in Canada, coupled with increases in the general tariff on all such machinery. and apparatus of a class made in Canada. It is estimated that this change gives British .exporters a fresh advantage in competition for $50,000,000 of business per annum. Under the British preference tariff there are also placed on the free list a large number of types of road-building and construction machinery, fire-fighting equipment, washing -machines, printing machines, all kinds of heating and cooking appliances, the general tariff on gas stoves and ranges being raised. The British preference rate is decreased on wire springs, typewriters, dictating and adding machines, lighting fixtures and appliances, enamelled hollow-ware, enamelled baths, tubs, sinks, etc. There is a reduction on all rates on farm tractors, and all agricultural machinery will enter free under the British preference rate, while there are cuts on all duties covering machinery used in tanning, ceramic industries, in carbonising lignite, coal, on sewing machines, vacuum cleaners. and domestic refrigerators. There will be an increase in all tariff rates on butter, and Mr. Dunning announced the termination of the existing trade arrangement with New Zealand .on October 1, which will mean the raising of the duty on New Zealand butter from 1 cent to 4 cents. Tea in packages of 51b. or more is given free' entry under the British preference tariff, and tableware, porcelain, and china are free on the British preference list, coupled with increased rates under the general tariff. The general tariff on malt and malt derivatives is increased, with a reduction on the British preference rate. A wide range of hospital supplies-and equipment is free listed, as are 5a miscellaneous commodities in which trade under the British tariff has hitherto not materialised. In the fruit and vegetable items the British preference on prepared vegetables, sauces, soups, canned meats, etc., is extended, and all fresh vegetables and fruits are made free. Anti-Dumping Proposal. These latter changes are accompanied by an important departure in policy aimed to curtail the dumping of fruits and Vegetables by American producers. There is proposed a countervailing duty whereby Canada will iinpose upon certain products imported from another country rates equivalent to those imposed by that country upon identical Canadian products when these rates are higher than those enumerated in the Canadian tariff. This countervailing duty will cover livestock, wheat, Wheat flour, oats, oatmeal, rye, fresh, cured and pickled meats, eggs in the shell, and frozen butter, cut flowers, and cast-iron pipes. Mr. Dunning explained that countries who interchange these commodities with Canada in-trade would have it in their power at any time bv reciprocal action to secure a reduction of the Canadian duties to the old level. An ad valorem rate of 25 per centhas been applied to all fresh fruits of a domestic character imported under the general tariff with a specific minimum rate appended, but they will enter free, as will fresh fruits under the British preference tariff. Mr. Dinning explained that this action was taken to assist Bermuda and the British West Indies to capture the Canadian market with fruit and vegetable produce during the Canadian off season. The new trade agreement with Newfoundland was on the verge of completion. The surplus for the .past year vras placed at $44,007,0u0.