IN LIEU OF OTTAWA

Evening Post, Volume CXXIII, Issue 49, 27 February 1937, Page 9

IN LIEU OF OTTAWA

NEW TRADE AGREEMENT

CANADA & UNITED KINGDOM

LOWER PREFERENTIAL RATES

(British Official Wireless.)

RUGBY, February 25.

The text of the new trade agreement between the United Kingdom and Canada, signed on February 23, was issued tonight. It will come into force as a whole as soon as the necessary legislation has been passed, and meantime each Government will give effect to its provisions as far as possible. The new agreement takes the place of the Ottawa Agreement, and will remain in force until August 20, 1940, after which it will continue subject to six months' notice.

As a result of the agreement Canada will lower the British preferential duties on some 15u items and sub-items in the Canadian tariff list. The reduction affects about 40 per cent, by value of the total imports of United Kingdom goods into Canada. Free entry for a number of classes of United Kingdom goods, representing about 30 per cent, by value of the total imports, is conventionalised, while existing duties on about 20 per cent, of imports from the United Kingdom are also conventionalised. Only about 15 per cent, of imports from the United Kingdom will be L">bject to duties not fixed in the.agreement.' Canada will apply most-favour-ed foreign-nation treatment to colonial goods. .

, The agreement lowers the British preferential duties on 150 items, mainly by 2J to 5 per cent, ad valorem, with some 5 to 20 per cent, ad valorem. The reductions coyer a wide range of goods, including.woollen, textiles and cottons. The United Kingdom maintains dutyfree entry of Canadian goods as under the old agreement, including dairy produce. ■ '

The British and Canadian Governments will henceforth negotiate differences as between Governments instead of Great Britain making representations to the Canadian Tariff Board. Summed up, the agreement gives Great Britain substantial concessions over the old agreement, whereas Canada's position is virtually unchanged.