BRITAIN AND ARGENTINE MEAT

Dominion, Volume 26, Issue 186, 4 May 1933, Page 8

BRITAIN AND ARGENTINE MEAT

With respect to meat Great Britain has steadily refused to protect her own or Dominion producers by means of She has prefen ed to proceed by limiting imports from foreign countries. From the published summary of the trade agreement with Argentina, it is clear that Britain is adhering to the policy embarked upon at Ottawa. The progressive tightening on imports of foreign mutton ana lamb is to continue as agreed. In addition Britain reserves the right to restrict imports of chilled beef from Argentina up to a maximum of 10 per cent. .... ■ The percentage limit is based on British imports in the season ended June 30, 1932. In that production year Argentina’s meat exports were below those of the two previous years. Thus het chilled beef exports may be reduced to 90 per cent, of the output in a season that proved to be below the recent average. Under the Ottawa agreement, “chilled beef imports from foreign sources were to be regulated so that no increase beyond the quantity Jor the year ended' June 30, 1932, would be permitted." Now, nine months later, a cut in that quota is contemplated. Apparently under the new agreement neither the Dominions nor other foreign countries will be permitted to fill the comparative shoi tage which may be created by Argentina’s abstention. In the circumstances, that reservation seems reasonable. It should not be forgotten that considerable relief has already been given the British meat market by the import restrictions operating on foreign bacon, mutton, and lamb. Chilled beef represents so large a factor, however, that the exercise of the option to limit British imports would prove important in levering up prices. Britain imports annually between 11,000,000 and 12,000,000 cwt. of beef, most of it chilled. Under the Ottawa Agreement restrictions have already been applied to frozen beef, but the latter commodity is relatively unimportant. Chilled represents the great volume of the trade. Nor should it be forgotten that restrictions on foreign mutton and lamb have now entered the second phase, the percentage of reduction rising from 10 to 15 on April 1 last. The limitation stiffens each quarter until it reaches and remains at the maximum of 35 per cent. 14 months hence. These various restrictions should soon have the expected effect on Smithfield prices. If not, the policy of quotas will have failed. Efforts • would then have to be renewed to increase demand, rather than to curtail supply.