The Dominion. THURSDAY, OCTOBER 19, 1944. WORLD TRADE POLICY

Dominion, Volume 38, Issue 21, 19 October 1944, Page 4

The Dominion. THURSDAY, OCTOBER 19, 1944. WORLD TRADE POLICY

While the initiative in convening an international conference to formulate a comprehensive post-war world trade policy apparently rests with the Government at Washington, decisions will be reached only by agreement with the "other Powers. The international gatherings held thus far have been, for the most part, concerned with some aspects of the war, or with urgent problems arising from it, such as relief for the overrun countries, world food supplies, finance for the rehabilitation of whole nations and allied matters. It has, however, been found possible to summon conferences to deal with such specific problems as civil air services, and there have been important discussions regarding oil supplies. Taken as a whole, these things all lead up to the formulation of a permanent agreement with respect to world trade.

The policies and programmes of individual countries are, in a very direct manner, dependent upon some such agreement or understanding. Recognition of this fact can be seen in'the Atlantic Charter and particularly in the terms of the lend-lease agreements. The investigations that are being made into the operations of international cartels afford further proof of preparations now in train. The goal of many countries in the post-war period will be full employment, and that requires an expanding trade; also essential if they are to carry the heavy burden which colossal war expenditure has placed upon them. It is generally agreed in Great Britain, for instance, that the export trade must be increased at least by 50 per cent, of the post-war aggregate. Each country views the outlook in the light of its own pressing requirements. It may not be possible to secure the adjustment of all conflicts of interests and policies, but only an international conference could ensure a general agreement. It is perfectly true, stated a London journal recently, that while one Government can propose, only’ an international agreement can dispose, and there can be not the slightest doubt that any agreement of this nature must have important repercussions in a country such as New Zealand, dependent as it is upon overseas markets to an exceptional extent for its economic stability. It is now generally recognized that our primary objective must be to assist in building up British markets, for by so doing a constant demand, at economic price levels, will be assured for the foodstuffs and raw materials which constitute the bulk of our shipments. Even if, as is hoped, an international conference should result in the removal of what are regarded as barriers to world trade the interests affecting the direction of this country’s operations will remain. It is probable that the expressed policy of the Government, involving the permanent retention of the system of import licences, will have to be reviewed and at least materially modified. A recent message from Washington mentioned a reduction of trade barriers and restrictions, as well as the elimination of harmful trade restrictions,' and a great deal will depend upon the interpretation placed on those terms. But whatever the final decision, and the policy adjustments that may be found necessary if a general agreement is reached, they will not materially affect the dependence of this country on the British market.