CANADIAN TARIFF

Evening Post, Volume CX, Issue 10, 11 July 1930, Page 9

CANADIAN TARIFF

BEITISH PREFERENCE A GENERAL SURVEY (From "The Post's" Representative.) - VANCOUVEB, 28th May. A commercial survey of the new Canadian tariff shows that the increase of the British preference to 559 items out of a total of 1118 has been achieved iu three different)-ways; on some items the British preferential rate has been lowered, on some tho general intermediate rates have been raised, and on others both of theso changes have been made. In each case, however, tho British producers' advantage in Canadian markets has been increased, and accordingly, all throe cases may bo combined in estimating tho volume of trade to which these increased advantages apply. The present estimate is based on Canadian imports for the fiscal year, 1929. As a single group, alike in Canada's tariff and import trade, steel and iron, which have just been subjected to a complete overhaul of rates by the Tariff Board, are naturally the dominant feature. In fact, out of £40,000,000 worth of imports on which the preference is increased £29,000,000 are included among iron and its products. Over 90 per cent, of last year's £69,----000,000 worth of these imports camo from the United States. Out of these, £20,000,000- worth of automobiles and their parts and £20,00.0,000 worth of other products are not affected by the change. Machinery, engines, and boilers, electrical apparatus and a list of miscellaneous iron and steel items, having been treated alike, form the largest section of the iron and steel schedules. Thoso i of a kind not made in Canada are on | the free list for Empire countries, with the general tariff fixed at 20 per cent.; on the rest a lesser extension of the preference has been granted. The year's total imports of these goods amounted to £11,000,000.

Next in importance come the agricultural implements that have been free-listed, representing £2,750,000 worth of imports; and steel plates, on which the preference has 'been widened Vy £1,400,000. Heavy structural steel,.comprising £1,500,000, forms a section of Canada's trade in which the British steel industry has lately shown a keen interest, Ind which Canada is not at present equipped to supply. Skelp, or wrought iron,' represents £1,400,000 and household machinery another £1,200,000. This accounts for nearly £19,000,000 of the steel and iron 'list. Other items represent £2,600,000. PRODUCE ADJUSTMENTS. j The tariff adjustments on fresh fruit and vegetables, affecting £2,500,000, have a double purpose. The free-list-1 ing is aimed at getting Canada's offseason supplies from the "West Indies, instead of from tho United States.' There is a certain irony in the fact that thia suggestion originally came from the American tariff imposed in response to a demand for protection against the West Indies, whose problem is now solved almost at its birth. The second purpose is to prevent "glut dumping" from the United States. Canada's import of items subject to countervailing duties amounts to £3,----200,000, but £1,800,000 of this is butter, nearly all of it coming from New Zealand, which, when a new reciprocal treaty is negotiated, is not likely to run the risk of a countervailing duty for tho sake of maintaining tho present 20 per cent, rato on Canadian butter. Tho real issue is deeper. Meantime the increase from one to four cents a pound on New Zealand butter has become a subject of protest by Sir Joseph Ward, in view of possible disturbance of tho balance of trade between the two Dominions.

One of tho largost remaining charges applies to table ehinawarc, ' worth iBSOO,OOO, much of which conies from Continental Europe. ■

It may not yet be assumed that the .huge total of import trade involved under the increased British preference will all, or noarly all, be. diverted to Empire sources. But tho road is open. \ j