Grey River Argus THURSDAY, April 28th, 1932. TARIFF CHANGES.

Grey River Argus, 28 April 1932, Page 4

Grey River Argus THURSDAY, April 28th, 1932. TARIFF CHANGES.

Considerations of an industrial and agricultural, no less than of a geographical nature are tending to make Canada a factor of growing importance as to the Imperial Economic Conference to begin next July at her capital. At the moment her treaty with this country is to the fore, and the tariff readjustments, by their narrow marginal nature, go to indicate that some of the extremely optimistic predictions by British protectionists and others may require to be largely discounted. In meat products New Zealand has secured some moderate concessions, while the dairy produce tariff changes put this country on an equality with Australia. The cheese rate has been lowered in a relatively greater degree than the butter duty, but Canada herself sells cheese in Britain at .a better price than ours, so that it is a matter of uncertainty in what degree New Zealand will recover the ground she has lost on the Canadian market with dairy produce, though some advantage is, of course, certain. Tn woollen products there is also an advantage secured, especially as Canada, while maintaining a high duty against this country, is raising the tariff against certain competitors. In return the Canadian motor exporters are given a renewed hold on our market, and her timber and other building material producers obtain a renewed concession, which is increased by a still greater penalty as against their United States competitors. Canadian electrical ranges obtain a useful preference, and likewise preserved peas, which should thus oust the United States goods from our markets. It is nevertheless evident that the agreement was negotiated with an eye to subsequent possibilities, and if the new measure of preference accorded is any criterion, the possibility of excluding from the Ottawa gathering a spirit of pretty keen bar-

gaining seems to be nowise a strong one. It is stated at London that the British delegates expect the Dominions to cut out foreign imports entirely. That proposal might be more feasible in the case of this country and Australia, than in the ease of Canada, where there is a good deal of manufacturing for export, and this predicates some measure at least of reciprocal trading with foreign customers. The Leader of the Canadian Opposition gives it out that the Government of the northern Dominion has been given the broad hint that no negotiations for a new basis of Empire trade may be expected if the pm sent Canadian policy is maintained. That policy, of course, is to have experts make such periodical tariff adjustments as are deemed prudent to protect home industry. At present, factors other than tariffs operate as a check on British exports to the Dominions, and notably the adverse rates of exchange, but in Canada’s case it is the reverse, as her sounder currency would give British industrialists an advantage only that her Government has adapted the tariff to prevent dumping. The Prime Minister, Mr Bennett, evidently includes British goods in this category when he says the recent tariff changes were made to ensure that the Dominion should not be >a dumping ground. The Opposition Leader does not definitely say, but he may mean that when the tariff against British manufactures was altered the moment Britain went off gold there should have been no such adjustment made. It is probable that in such an event, the Government would have far the greater backing of public opinion in its attitude. It will be remembered that Mr Bennett took the initiative in calling the Ottawa Conference, after he had met with a very disconcerting rebuff at the last Imperial Conference in 1930 at London. Therefore he may be ready at Ottawa to negotiate) again on precisely the same lines. He is certainly keeping his own counsel in the meantime. It will be remembered that in 1930 the Australian and Canadian Prime Ministers were for days in negotiation with the British Minister for the Dominions, Mr J. H, | Thomas, and thought that a satis. factory agreement was about to be reached. Mr Thomas had led them to believe that this was the case, but, at a nod from Lord Snowden, Mr Thomas then informed the House of Commons that the talk of such an agreement so widespread at the time was all “humbug.” The same term has now cropped up again at Ottawa, so that it is not forgotten. Mr Thomas is going as a delegate to Ottawa in July, but the Dominion delegates will hardly leave themselves in the position of being again “sucked in” by that particular politician. Mr Bennett declares the British public since 1930 have taken a stand the opposite of that then adopted by Mr Thomas, but it has to be remembered that the British tariff is now subject to alteration in a manner no less sudden than that adopted ere its advent by Canada when she raised her duties against Britain. Moreover, having now a high tariff, the British Government may at Ottawa intimate that it is useful for bargaining, not only with foreign countries, but with Dominions as well. In fact, Britain to-day is in a better position to “talk turkey” to the Dominions than she was in 1930, although, on the other hand, her greatest need is obviously to regain a secure oversea market; and that is only to be had in the Dominions . Whether she will go so far as to give them an effective preference on their staple products and largest exports, which are in the nature of foodstuffs, meat, and woollens, remains to be seen. Opinion on that point is divided in Britain, but the majority mayremain one in favour of the cheapest possible food supply.