THE H.B. TRIBUNE MONDAY, SEPTEMBER 26, 1927 REDUCING TARIFF WALLS

Hawke's Bay Tribune, Volume XVII, 26 September 1927, Page 4

THE H.B. TRIBUNE MONDAY, SEPTEMBER 26, 1927 REDUCING TARIFF WALLS

z~|N E of to-day s messages from ” Geneva stales that the Assembly oi the League of Nations adopted the recommendations with regard to reduction of tariff walls passed at the International Economic Conference which was held some few months ago. That Conference performed a most useful service in clearing the air and laying down the lines on which international action might be taken for the removal of some of the oustanding obstructions to the freedom of commerce. It passed unanimous resolutions emphasising the necessity for a return to a reasonable tariff policy in Europe, and demonstrated the interdependence of nations, and the folly of the idea that the disorganisation of industry and the inflated currencies which followed from the war can be corrected by high tariffs. Import and export prohibitions, arbitrary practices and disguised discriminations in the form of internal taxes or subsidies, export taxes on raw materials, which increase the price of production in foreign countries, and all such measures designed to promote the trade of one country at the expense of another were shown to be illusory in their effect, for they injure the nation which adopts them even more than its competitors.

The rudimentary doctrine that a nation cannot export unless it imports, and that all trade is an exchange of goods, and not a kind of warfare for the exclusion of the foreigner’s wares, was accepted by the Conference as a fundamental doctrine. Equality of treatment in the matter of tariffs, by the application of the most-fav-oured-nation clauses in all commercial treaties, was also recog nised as the just and proper method of commercial dealing between nations. The disadvantages of frequent changes in tariffs, which produce uncertainty and confusion in the making of contracts, were also proclaimed, while the delegates of forty-five n- ions put their names to a plea fo giving fair treatment to fir signers trading in their midst. Moreover, to avoid disputes as to the interpretation of commercial

treaties, the Conference laid it down that the arbitration of the Hague Court ought to be accepted. It may, however, take a long time for the nations of Europe to learn the full meaning of the lessons which were thus written on the blackboard and have now been affirmed at Geneva. Nations may still be inclined to think of trade in terms of war rather than of peace. Powerful interests are ranged behind the high tariffs; it may still be difficult to rid the world of the idea that the safest plan for a country is to aim at self-sufficiency. The deadweight of prejudice and long adherence to wrong habits of thought -are not likely to be removed merely by discussion at Geneva. Too much must not be expected from the Conference, and Assembly resolutions, but considerable impetus can hardly fail to have been given to public opinion by the findings at Geneva. How far the Govern ments will act depends on this opinion. In November next there is to take place a great international diplomatic conference at which the question of import and export prohibitions and restrictions will almost certainly come up for discussion. This will afford a good opportunity for making a start and will be a test of the sinSerity of the Governments concerned.