BARRIERS TO TRADE

Hawke's Bay Tribune, Volume XXIV, Issue 81, 17 March 1934, Page 7

BARRIERS TO TRADE

Balkans and Danubia WORLD RECOVERY CHECKED ! Balkan and Danubian States seeking a freer flow of trade among themselves are being forced to the conclusion that permanent improvement in commerce can only come with wider economic unity. The Economic Council of the Little Entente met in Prague in January and tried to work out plans whereby commerce between Czecho-Slovakia, Roumania and Yugoslavia might be in- j creased. A month earlier the Kings of Bulgaria and Yugoslavia met at Belgrade and agreed to increase the volume of trade between these two countries. But results show that trade streams do not conform to political affinities. However much the Bulgarians and Serbs may come to like one another they will not be able to turn that goodwill into business At present Yugoslavia’s trade with Bulgaria amounts to less than one-fifth of 1 per cent, of her total foreign commerce, and economic experts see no possibility of any great improvement. There also little possibility of an extensive exchange of goods between Yugoslavia and Greece or between Albania and Yugoslavia. To be sure, Albania has need of Yugoslavia’s grain and timber, but has almost nothing to give in exchange. Czecho-Slovakia has manufactured articles that she might sell to Yugoslavia and Roumania, but then States are both trying to create industries of their own, while Czecho-Slovakia is so strictly protecting her own agriculture that she will not accept the only things Roumania and Yugoslavia have to exchange for her manufactured articles. Since 1929 Czecho-Slovakia’s trade with the other two Little Entente States has fallen from 1,434,000,000 crowns to 373,000,000; Yugoslavia’s from 283,000,000 to 148,000,000 and Rouniania's from 462,000,000 to 172,000.000. Thus in spite of all political efforts economic relations among the Little Entente States, are growing worse instead of better. It is now being realised that there cannot be little economic blocks in south-east and central Europe. There must be general trade improvement which it is felt will come only when economic requirements take precedence over political interests.