ADJUSTING TRADE

Gisborne Herald, Volume LXXIV, Issue 22407, 14 August 1947, Page 5

ADJUSTING TRADE

NATIONAL RIGHTS RESTRICTIONS IN CRISES GENEVA AGREEMENT GENEVA, Aug. 12. Delegates to the trade conference agreed to incorporate in the world trade charter provisions enabling nations to adjust their external trade in times of economic crisis. The agreement follows weeks of difficult negotiation and provides that nations may restrict imports from some countries and increase imports from others where this may be necessary because of the threat of a serious decline in monetary reserves. After March 1 1952. nations wishing wishing to apply these restrictions must first obtain the approval of the international trade organisation which can set a time limit for the measures if it decides they are being applied in a discriminatory manner. This is part of the general agreement by the trade conference on inter-Gov-ernmental arrangements. The conference recognised the agreements could be used for the following purposes:—

(1) To alleviate serious economic problems when adjustments between production and consumption could not be effected by normal market forces alone. (2) To arrange economic adjustments designed to promote the expansion consumption or a shift of resources and man-power from over-expand-ed industries to now productive occupations. (3) To moderate pronounced fluctuations in prices of primary commodities. (4) To maintain and develop the world’s natural resources to protect them from unnecessary exhaustion. (5) To provide for expanded production of primary commodities in short supply.

The conference agreed that any member of the State could ask for a study to be made of any industry where special difficulties were likely to affect international trade.