CUSTOMS AGREEMENTS

Hawke's Bay Tribune, Volume XXII, Issue 258, 14 October 1932, Page 6

CUSTOMS AGREEMENTS

MUTUAL CONCESSIONS SECRETS NOW DISCLOSED. BRITAIN AND THE DOMINIONS. British Official Wireless Service Rugby, Oct. 12. With the publication to-night of a summary of the proceedings of the Imperial Conference at Ottawa, the terms of the schedules which hitherto have been kept back, mainly at the request of the Dominion* owing to risks of fore stalling, are revealed. It is on the basis of the agreements and the schedules thereto contained in this report, that legislation has been drafted which will be taken up Uy the House of Commons immediately Parliament reassembles on Tuesday. The legislation is to be pressed forward with all speed, not only to prevent forestalling but because under the Import Duties Act provision for the free entry of imports from the Dominions and Colonies ceases on November 15.

The report contains the terms of the agreements between the United Kingdom and the. various Dominions and India, and in the opinion of the Government the agreements greatly increase the opportunity for inter-Imperial trading and represent an important step towards the restoration of world trade. This over-riding consideration is expressed in a resolution passed by the conference, which declared that by the lowering or removal of barriers among themselves provided for in the agreements the flow of trade between the various countries of the Empire would be facilitated, and that by the consequent increase in the purchasing power of their peoples the trade of the world would also be stimulated and increased. BRITISH CONCESSIONS. The agreements with all the Dominions follow the same general form. Imports from Empire countries into the United Kingdom fall into three classes, namely—1. Those accorded entry free of duty, subject to revision three years hence. 2. Those which are granted preference through the imposition of specific duties on foreign goods. 3. Those which receive preference by virtue of the ten per cent ad valorem duty on foreign goods imposed under the Import Duties Act. In the first category are included eggs, poultry, butter, cheese, and other milk products from Canada, New Zea-

land, South Africa, Newfoundland and Southern Rhodesia. Foreign goods in the second category respecting which Parliament will be asked to impose specific duties are set out In schedules to the agreements and include: Wheat in grain, 2/- per quarter; butter, 15/- per cwt.; cheese, 15 per cent, ad valorem THE VARIOUS SCHEDULES. The schedules to the various agreements set out the details of other proposed duties. In the schedule to the Canadian agreement the goods specified include apples, pears, canned apples, dried fruits, eggs and condensed milk. Under the corresponding schedule to the Australian agreement are in eluded in addition to the above, powdered milk, honey, raw oranges and grape fruits. The New Zealand agreement makes no addition to this list, but the schedules attached to the South African' agreement include a number of specific duties to be imposed on foreign imports of various other fruits, raw and canned, also a ten per cent ad valorem duty throughout the year on maize. The only items specified in the corresponding schedule to the Newfoundland agreement are a duty on foreign cod liver oil of 1/4 per gallon and on chilled or frozen salmon of l}d per pound. Under the United Kingdom-Indian agreement, which is subject to ratification in India, provision is made for the imposition of duties on foreign imports of wheat, rice, castor oil, magnesiumchloride and linseed. An undertaking is given by the British Government not to reduce the existing general ad valorem duty of ten per cent imposed under the Import Duties Act on a large class of foreign goods which are also enumerated in special schedules to the agreements with the Dominions whose interests are affected. CONCESSIONS TO BRITAIN. In regard to the modification of import duties in the Dominions on articles imported from Britain, full particulars are given of the new rates imposed. In regard to Canada these modifications apply to some 215 items, of which in 132 cases the dut}ps on United Kingdom goods are to be reduced, while in 70 cases such goods are for the first time to enjoy freedom from customs duty. On the basis of last year’s trade over 40 per cent, ot the imports from the United Kingdom into Canada wifi enjoy immediately the advantage of lower mstoms duties than those previously in force, goods to the value of over 8,000,000 dollars being admitted free of customs duty. AUSTRALIAN PREFERENCE. The agreement with Australia provides that, subject to Tariff Board recommendations, United Kingdom goods will enjoy certain minimum preferences graded according to the duties chargeable upon them The minimum margin of preference will range from 15 per cent, ad valorem when the duty on United Kingdom goods is up to 19 per cent ad valorem to 20 per cent, preference, where the duty is 29 per cent., but the maximum duty rate must not exceed 75 per cent. Preferences exceeding those resulting from the application of this formula remain at the existing level subject to certain minor reservations. Certain prohibitions on British imports are withdrawn, and the removal of surcharges and primage duties is promised as soon as practicable. REGULATING MEAT IMPORTS. An important feature of the Australia agreement has reference to arrangements for the regulation of imports into Britain of frozen and chilled meat Lt provides, inter aha, for Australia limiting the export of frozen mutton and lamb to Britain in 1933 to an amount equivalent to that so imported in the year ending June 30 last. Meanwhile the United Kingdom Government will arrange with the Australian Government for the regulation of the importation of foreign meat tn accordance with an agreed programme and for quantitative regulation of supplies of bacon and hams coming on the United Kingdom market. The Governments will consult in 1933 on the best means of securing an improved price situation and a more orderly marketing o f supplies. NEW ZEALAND’S UNDERTAKINGS Britam already enjoys a very large proportion of the New Zealand trade Under the hew agreement the Dominion undertakes not to increase the primage duty, to lower still further existing duties, to abolish the surtax on British goods, and to modify certain basic import duties. Increased margins of preferences on United Kingdom goods are granted by the South African agreement affecting £2,200,000 worth of trade, whereof Britain hitherto has supplied £400,000. Hitherto Newfoundland has not adopted the principle of Imperial preference, but its agreement provides as from July next for preferences of ten per cent, on a wide range of goods, subject to certain reservations. India absorbs about 10 per cent, of Britain’s total exports, but hitherto Britain has had no customs advantages. Preferences are now proposed on articles in which the total trade last year was £34,900,000, whereof Britain supplied £14,300.000.