AUSTRALIA AND U.S.A.

Greymouth Evening Star, 17 February 1937, Page 7

AUSTRALIA AND U.S.A.

TRADE BALANCE CHANGED. (by CABLE —PBESS ASSN. —OOPYBIGHT.] (Recd. February 17, 1 p.m.) SYDNEY. February 17. The “Herald’s” Canberra correspondent says: For the first time for 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, thej balance in favour of Australia is £1,000.000, which is reached after gold and gold concentrates values at about £2,500,000 are included in the exports to the United States. Even if gold exports are excluded, the ratio of 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 States. 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.