BRITAIN'S CASE AT OTTAWA RECIPROCAL PREFERENCES

Evening Post, Volume CXIV, Issue 25, 29 July 1932, Page 7

BRITAIN'S CASE AT OTTAWA

RECIPROCAL PREFERENCES

MR. BALDWIN DEFINES ATTITUDE

CONTRIBUTION TO EMPIRE TRADE

IMPORTANT FACTORS IN PROBLEM

(United Press Association—By Electric' Telegraph— Copyrisht.)

(Received 29th July, 11 a.m.)

OTTAWA, 28th July. Mr. Baldwin has issued the following important statement to the Conference, defining Britain's attitude to reciprocal preferences:— "The British delegation has no intention of weighing meticulously the benefits given or received, but is anxious that the outside world shall realise that the spirit animating us all has been con- - stantly and consistently displayed in our actual dealings with the Dominions. Any suggestion that Britain has been backward in developing and assisting Dominion trade or not fully reciprocating Dominion concessions in the letter and spirit is wholly unwarranted. The British delegation, appreciating fully the advantages received in Empire markets, has entered the Conference with the intention of making a full contribution to the still further extension of Empire trade. . ' "We have stated frankly and fully to die Dominions the articles on which we desire to secure further advantages in Dominion markets. We will welcome equally a full statement of the corresponding advantages the Dominion/ seek in Britain's market. The British delegation will examine these statements as received with an unprejudiced mind; and an earnest desire to give effect to the Dominions' wishes. We are,convinced that our own views in turn will be given equally favourable consideration." RECENT TARIFF ADVANTAGES Mr. Baldwin proceeds to quote a table covering Britain's retained imports (imports not re-exported) in 1930, and showing what the new British tariff of December, 1931, means' to the Dominions. The table shows what percentage of .Australian imports received tariff advantage before December,, 1931, what percentage would have been advantaged under the new tariff, and what percentage remains without such advantage. • Similar figures are given for New Zealand imports. In the following table the figures are given in thousands sterling (that is, three noughts must be added): —

COMPARISON ON DUTY-FREE BASIS

" ■ Mr. Baldwin points out' that about 90 per cent, of the. imports .sent by the' Dominions enjoy free entry into Britain, and in no case is the percentage appreciably below 90 per cent, except inthe case of India. Since Britain's change of fiscal policy only 30 per cent, of her foreign imports are admitted free. Regarding Britain's exports to the four principal Dominions, there is to-day practically no free entry. Most of the preferences granted by Britain to Dominions are a total remission of the, duty payable by foreign .goods. i i' ' • ' ' The following table shows the total imports pf Australia and New Zealand and the sources from which they are" drawn:—

Australia. New Zealand

SOME EMPIRE FIGURES The following table ,of imports and exports for 1930 is in millions sterling, and includes bullion and coin, and also includes re-exports. The table shows what Britain imports from and what she exports to the several Dominions:—' '

Mr. Baldwin then proceeded to ijuote'the visible balances of trade in the; case of each of the Dominions in the above order. In. the following .table, "plus" means. ; a ; yisiblesbalance tof trade favourable'to the Dominion, and "minus" means a visible balance of trade favourable to the United Kingdom:—- v ..,..;■''

Total, plus 95.7.

TWO CARDINAL PRINCIPLES

Mr. Baldwin said that these figures reveal two noteworthy points:—Firstly, a visible'trade balance*in favour of the Dominions, of nearly one hundred millions sterling;-secondly, Dominion imports from foreign countries to the amount of nearly 350 millions, ' " , ■ "It is necessary to remember that the percentage of duty is of great importance in assessing the value of preference. 'If it is to give material assistance, preference must not be so high as to seriously restrict importation. The British delegation urges upon the Dominions that the rates of duly should be so graduated as to give British products a reasonable chance of competing on even terms; also, that duties against British products for protective, purposes should be fixed no" higher than ia necessary to give a fair chance to reasonably efficient Dominion industry. We desire, to draw attention to the favourable tariff treatment Britain has accorded Dominion" imports which compete with United Kingdom products. "Certainty of outlook is also important in trade. It is essential that the manufacturer and the importer shall be able to assess with reasonable assurance the cost of the article to the consumer. Any arbitrary and uncertain impositions, especially where the Executive has the discretion to determine duties,' cannot fail to restrict and even prevent business. CRUCIAL POINT: FOREIGN MARKETS VITAL"We desire also,to emphasise to our Dominion colleagues that Britain is so highly industrialised that it is vital to the physical existence of her people to find adequate markets for her, products. Actually more than half of Britain's exports,go to foreign countries. Britain- has 2*J million unemployed;' Anything lending to check Britain's foreign imports must lessen her people's purchasing

and_ saving power, thus damaging; the market on which the Dominions largely depend for the consumption of Uieir products. The ioregoing tables show:— . ; ■> . "(1) That Britain lias heen doing her share in encouraging Dominions trade and industry.; : ■"(2) That Britain takes a very large proportion of Dominion exports, for many of which there would seem,to be no other available world outlet. ' ' "(3) That Britain has consistently facilitated the entry of these Dominion products on the best possible terms and the least possible interference by Government policy or Customs' administration. <--v "(4) That BritainTias been eager to give the Dominions extensive preference wherever 'she found it possible to impose a tariff. "(5) That Britain has thus helped the Dominions to build up a substantial favourable visible trade balance v , LOAN PREFERENCE AND ITS RESULTS "It is a source of legitimate satisfaction that preferential access to the British investment market^ which has resulted from the close association of Britain and the Dominions, has played an important part in the development of the Dominion resources. Showing the extent to, which this factor has operated, it is estimated that. 3800 millions out of the' British capital invested overseas before the war was placed in Empire countries. -Although necessarily there has been a diminution of the flow of oversea investment since the war, the proportion allotted to Empire countries has substantially increased. Out of. a total of 1401 millions invested between 1919 and 1931, no less than 848 millions was placed in Empire countries;''

Value of-Aus. Percentage of Aus. Imports. Imports. £1000. ' Before December, 1931 .... 4,660 - 12 Under new Acts* 13,500 34.G Not subject duty 20,820 53.4 , ' Value of. N.Z. Percentage of N.Z. Imports. , Imports. 1 £1000. , Before December, 1931 .. v '80 - 0.2 Under new Acts* '. .... 20,280 , 50i3 ' - Not subject duty 19,930 49.5 * Import Duties Act or Horticultural Products Act

N . . ,• £1000. £1000. From all sources ' 129,220 42,663 „ United Kingdom 54,241 20,223 „ Other British countries .. 15,509 9,007 „ Foreign countries .... 59,470, 13,433

. . U.K.Imports. U.K. Exports. £1,000,000. .£1,000,000. Canada 38.7 31.3 Australia 70.5 33 New Zealand 44.9 18.7 South Africa ' ' 62.1 ■ : 27.7 Irish.Free State 43.1 44.3 Newfoundland .............. 2.2 0.9 India 52 61.6 Rhodesia .................. 2.3 2.6 Total ■.... 315.8' 220.1

Canada ........... plus 7.4 Irish Free State .... minus 1.2 Australia .....i... plus 37.5 . Newfoundland .... plus 1.3 New Zealand . ♦.... plus 26.2 India minus 9.6 v South Africa ....., plus 34.4 Rhodesia ........ minus 0.3