AUSTRALIAN TRADE

Evening Star, Issue 22575, 17 February 1937, Page 10

AUSTRALIAN TRADE

FAVOURABLE BALANCE OVER AMERICA FIRST TIME IN MANY YEARS Press Association —By Telegraph Copyright SYDNEY, February 17. (Received February 17, at 1.30 p.m.) The Sydney • Morning Herald’s 1 Canberra correspondent says' that for the first time in many years trade between Australia and the United States has shown a balance in favour of Australia. For the first half of the current financial year the balance in favour of Australia is £1,000,000, which is reached after gold and gold concentrates, valued at about £2,500,000, are included in the exports to the United States. Even if gold exports are excluded, the ratio of the commodity trade shows a complete change from the trade situation prevailing between the two countries in recent years This change is likely to be used as an argument against the continuance of the clauses in the Commonwealth trade diversion policy, which ■are discriminatory against the United It is recognised, _ however, that the incidence of this policy on the American export industry may have been a factor in inducing American exporters to come to Australia for products formerly purchased elsewhere, and thus restore the balance of trade between the two countries, which would justify Australia in resuming normal trade with the United States.

The development of the export trade to America shows how little the Commonwealth suffered from the formal retaliatory measures applied by Washington against Australian produce when the trade diversion policy was announced in May.