RECIPROCAL TRADE

New Zealand Herald, Volume LXX, Issue 21468, 17 April 1933, Page 8

RECIPROCAL TRADE

Through the dust of political and international conflict there shines a ray of real hope for the improvement of trade in the negotiations that are taking place between Great Britain and many other countries for a better basis for the interchange of goods, and in the new attitude in America toward the protection policy. It was stated recently by Mr. Runciman, President of the Board of Trade, that since Ottawa some 20 countries had made commercial approaches to Great Britain and now he mentions that proposals in regard to Sweden will shortly be submitted to Parliament, that arrangements are being effected with Germany which *vill substantially increase the export of coal to that country and that in respect of Norway, Denmark and Argentina the prospects are encouraging. At the same time comes a message from Washington in which the new Secretary of State, Mr. Cordell Hull, denounces the theory that moderate tariffs will flood the American market with cheap goods that will force down the American standard of living. He invites those who fear that a reduction in tariff** will throw American workmen out of work to debate the question with the 13,000,000 American wage-earners who have been rendered idle by the operation of the "highest tariffs in American history." An outline of President Roosevelt's legislative proposals to give authority for drastic revision of the tariff reveals that the machinery to give effect to these ideals will soon be in existence. Thus the two greatest trading nations in the world will be able to proceed to the World Economic Conference with hands not so tightly bound as heretofore. Although it is possible that agreements which Britain is now discussing may result in concessions that may create some apprehension, a broad view suggests the whole movement is a logical development of. Ottawa. There Britain, having abandoned free trade, having virtually been forced to adopt the principle of protection, bargained for reciprocal preferences with the

Dominions and India. Within a few weeks the first of the foreign countries depending largely upon the British market were on the doorstep eager to arrange new treaties. The second great move in the plan is rapidly developing. Tariff restrictions and quota limitations are beginning to diminish, and though it is too much to hope that apparent anomalies will not appear here and there, the ultimate effect will be to help Britain back to her position as a world trader. As her manufacturing industries expand so will the purchasing power of her people, and consumption of New Zealand's products will increase. The day of deliverance from the grip of depression may be too distant to bring about optimism, but it must be admitted that the new psychology in regard to high protection and import prohibition is one of the best portents of the times.