The Grey River Argus TUESDAY, October 11, 1949. AMERICA’S LEAD FOR FREER TRADE

Grey River Argus, 11 October 1949, Page 4

The Grey River Argus TUESDAY, October 11, 1949. AMERICA’S LEAD FOR FREER TRADE

initiative,, as well with economics as politics or strategies, being now more than ever with the United States in the international sphere, it is hopeful when that country gives the world a lead towards much greater reciprocity. In her hey-day Britain throve upon such a policy, and with greater resources America also should prosper still more by widening her exchanges and those of other countries. In Britain today there remains the idea of imperialistic as distinct from international trading, but the other parts of the Commonwealth are less inclined to such a limitation than formerly, and probably a majority even of British traders, with a drive for dollars, realise that it is no longer feasible to calculate, without the Source of dollars . The Annecy Agreements, which America is about to implement, related to 23 countries •at the outset, but now include ten more, and, as remarked by a London paper, that extension is a good sign, with the moral that far larger accommodations are probable later. Indeed, the United States Government now is to follow up the Annecy tariff reductions with a campaign of world-wide scape for tariff reductions. Mow far these are attainable is only to be ascertained by negotiations. Those at Annecy, which merely break the ice, were sustained for months, and while the, volume of trade so far affected is but a fraction of the total, it has been demonstrated that much more is yet possible. For instance, it is by means of trade, rather than by mere finance capital, that Americans will be able to promote development in backward countries and thus raise their living standards. In turn the higher standards must make for better markets. Nobody imagines, however, that anything like the old conception of free trade is to be realised. If it were left to the countries best able to produce particular commodities to have the free run of the world markets, other countries would be economically restricted too greatly. Multilateral trading to-day implies multilateral negotiation. There is certainly room for the preferential principle of British practice, but even that principle does not now suffice either for Britain or the Dominions and Colonies, whilst India is no longer limited as she used to be in initiative. Lord Beaverbrook, the chief protagonist of economic imperialism, suggests that the Americans have not as yet made any great sacrifice, such as a comprehensive scheme might call for, but he cannot ignore the urgency of Britain’s need of dollars and therefore of a market in the dollar area. Changes in production have made countries now more complementary to each other, which used not formerly to be nearly as much so. This process applies not simply to food, but to other raw materials, to machinery, and even to recreational things. In the degree Britain may have contracted capacity the United States has expanded, but the consequent urge to find markets dictates that there must be reciprocity. An expanding economic system reaches a definite limit when it is enclosed by a tariff wall. Tn a country like this, with only a home market for secondary industry, import, regulation is essential even for protection, but it is quite otherwise with a colossal industrial system like that of the United States. Even Australia, with more advanced manufactures than our own, has a bigger interest -in America’s initiative than we have, a .fact already indicated by her response to the United States initiative. It is too early to predict the ultimate results of this gradual reversal of American protectionist policy, which requires to go a good deal further if it is to have a permanent effect. The announcment that such an objective is now being pursued implies a realisation

that it requires further concessions. That some will be forthcoming is certain, but it will remain to see their extent and the reaction, not only of other countries, but Americans themselves. They have at least made a definite start. i