BRITAIN’S TRADE.

Evening Star, Issue 21079, 16 April 1932, Page 12

BRITAIN’S TRADE.

In* February, when participating in the tariff debate in the House of Commons, the President of the Board of Trade (Mr Walter Runciman) described himself as a “ director of slimming,” as imports had to be thinned down. Mr Runcirnan has always been a Freetrader, and claims to be one still. He did not hope that a 10 per cent. Customs tariff would redress Britain’s balance of trade, but he expressed the belief that the duties would contribute to that end. This week Mr Runciman, in a speech which really presents an interim report on the first effects of a change of fiscal policy, has been at least able to disclose that retaliation by foreign countries has not eventuated. The world’s trade keeps on shrinking, but Britain has suffered less from that shrinkage than any other country. Her exports have decreased by 11 per cent., against diminutions of 33, 34, and 35 per cent, suffered by France, Holland, and the United States respectively. Despite the lowered volume of exports there has been a diminution of unemployment, which is probably attributable to the preservation of her own hojno market against ioreign invasion. Simultaneously there have been increases of unemployment in European countries. On the other hand, foreign firms are contemplating establishing factories in Britain, just as some British firms established factories in, Australia

when the rising scale of Commonwealth Customs duties reached,a prohibitive height. Probably the section of Mr llunciman’s speech which will bo read with most interest in New Zealand is that dealing with the Ottawa Conference. Britain’s object is to extend trade within tho Empire without, if possible, forfeiting any of her trade with the rest of tho world. As has been stated, Britain’s export trade has suffered relatively less than that of competing countries; on tho other hand, prior to the inception of protection some six weeks ago, British imports from foreign countries increased relative to her imports of Empire origin. Eight years ago 110.21 per cent, of British imports came from within the Empire, but last year tho figure had dropped to 28.73 per cent. On the other hand, in the case of British exports, during tho same period the percentage which went to the overseas Empire rose from 41.67 to 43.84 per cent. But whereas Canada and South Africa in 1931 took more Empire goods, Australia and New Zealand took less. In our own case, and especially in Australia’s, this decrease was due to the financial situation demanding severe restrictions of imports, a development which was furthered by the state of the exchanges. And whereas both the Australian pound and New Zealand pound stand at a discount compared with the English pound, Canadian and South African currencies stand at a premium. This would facilitate importation by those countries but for the fact that the difficulties of their exporters have been correspondingly increased, thus lowering their purchasing power. The Empire representatives at Ottawa will indeed have a complex situation to discuss.