BRITISH TRADE

New Zealand Herald, Volume LXXII, Issue 22206, 5 September 1935, Page 7

BRITISH TRADE

ECONOMIC EECOYERY EXPANSION OF EXPORTS BENEFITS FROM OTTAWA A deduction that the best course for Great Britain is to continue tencl the present policy of- home industrial protection, Empire "tariff preferences find specific trade Agreements with foreign countries is drawn by the Federation of British Industries from its survey of Britain's recent commercial policy. "The main conclusion to be drawn," it is stated, "is that our commercial policy, taken as a whole, has sec Tired a remarkable degree of economic recovery for Britain, as compared with that of other countries during the same period. In the home market, the consumption of domestically produced goods has substantially increased; in the Empire market!), United Kingdom exports have advanced, both in value and as a percentage of our exports; with the trade agreement countries, British exports have also gained ground. It is a fair deduction that the best course for Groat Britain is to continue and extend the policy which has been pursued with success during the last few years." After noting that too great a proportion of revival in industrial activity has been clue to the demands of the home market, too little to the real development of the export trade, and that the improvement does not warrant any feeling of complacency, tho authors of the survey state that, unless the policy of the industrial countries of turning: their attention to stimulating agriculture,, and that of the agricultural countries in embarking on industrial production, are kept within reasonable limits, there would appear to be littla likelihood of building a firm foundation for a resumption of international trad® on a large scale. They suggest that three points, stand out in British commercial policy. First, industrial protection hus been a success, since it has been designed to give protection to industries which are economic and efficient. Secondly, the results of the Ottawa agreements have been to increase inter-Imperial trade, although, so far, the oversea Dominions have reaped greater' benefits than has the United Kingdom. The importance of increasing the economic prosperity of the Empire as a unit is so important, the report says, that British industrialists have taken a broad view of the disproportion in the advantages which have, accrued from Ottawa. Thirdly, the trade agreement coun-> tries have been the most satisfactory of foreign customers. Some of the exist.'ng trade agreements are due for revision in a short time, and other agreements are contemplated. In both cases, * the report suggests, the outstanding importance of the British market to oversea sellers should be borne in mind.