ARGENTINE TRADE

Dominion, Volume 31, Issue 70, 16 December 1937, Page 2

ARGENTINE TRADE

Menace Of German And Italian Subsidies

Subsidies, granted to their overseas commerce by the German and Italian Governments are, it is staled, becoming a serious menace to British ami American trade with Argentina. The'exact method of administration of the pool into which every industry in Germany pays a proportion oi Hie profits from its home trade in order to enable German exporters to undersell British and other foreign competitors has never been divulged, but this system of "dumping” is securing tor Gernutn.v an increasing share in the Argentine market as successfully as the system of payment by "blocked ’ marks, unnegotiable except in exchange for German goods, has enabled her to invade tlie rest of Latin America, says the “Manchester Guardian.” Subsidies, it is stated, make it possible for German and Italian shipping companies to accept traffic at rates with

which British lines cannot hope to compete. Italian exporters are now enabled to quote prices so low that theyare obtaining orders for goods in which hitherto they could not compete with British manufacturers. 'ltalian woollen cloths are challenging the British products for the first time. Italian tinplate has never been exported to Argentina until this year. Thanks to a subsidy it ean now be sold there at a price 5 per cent, below the British figure. Contracts worth £3,.500,060 for the construction of rainwater drainage works in Buenos Aires wore awarded to German firms recoutlt owing to Ihe inability of British' lirtm- to compete with tenders which ignore rises in the cost of raw materials. Uneconomic railway freights, coupled with Hie bounty paid to exporter,•• by the Westphalian syndicate controlling 90 ]>er cent, of the German coal production, are enabling German coal to compete seriously witli South Wales in the Argentine market. German coal exports to Argentina have jutnimd from 56.000 10 200.000 ions tills year, as compared with 1936. The British figure has risen only by 15 per cent, from tlie disappointingly low level reached last year. German light motor-ears are displacing the British product in the Argentine market. German exports of cars to Argentina exceeded British for the first time last year, anil the German figure for 1937 shows a further striking increase.