TRADE AGREEMENT

New Zealand Herald, Volume LXXIII, Issue 22392, 13 April 1936, Page 11

TRADE AGREEMENT

NEW BASIS WANTED FARMERS IN BRITAIN IMPORTATION OF FOODSTUFFS [l'-ROil our own correspondent] By Air Mail LONDON, March 21 The National Farmers' Union, has issued a pamphlet dealing, from the British farmers' standpoint, with the trade agreements with the Dominions and foreign countries. Consideration of the effects of the trade agreements of the United Kingdom on the agricultural industry of the country, the pamphlet states, shows that the outstanding feature of the position is the fact that the United Kingdom, as far as agricultural commodities are concerned, is an importing country, and, with the exception of small quantities of specialised items such as pedigree livestock, there is no export market for agricultural products, which are entirely dependent on the home market. Consequently, agriculture in Britain has nothing to gain from trade agreements by way of an increased share of markets overseas, but much to lose should concessions be granted to exporters of competing agricultural produce which diminish or destroy the home producer's margin of preference in his only market. Imports from Dominions

It is significant, the pamphlet states, that of the imports of foodstuffs mainly for human consumption the proportion consigned from Dominion countries rose from 38.5 per cent of the whole in 1931 to 49.7 per cent in 1935, The total quantity of these imports from the Dominions, excluding the Irish Free State, increased by 38.8 per cent in this period. The combined effect of these agreements with Empire and foreign countries on home agriculture has been aggrevated by three factors, as follows:—

The diversion of produce to the United Kingdom from Continental markets where prohibitive tariffs have been imposed in order to achieve agricultural self-sufficiency. For example, the German food policy has led to diversion of eggs and butter to the United Kingdom.

Many countries have organised systems of subsidising exports of produce. For example, exports of butter have been subsidised in Canada, Australia, Finland, Denmark and Sweden.

The currencies of some countries from which the greater part of Britain's imported produce is consigned have been depreciated in terms of sterling. The New Zealand and Australian pounds, and the currencies of Canada, Argentina, Denmark and Finland, are examples of this depreciation. In that connection, Britain's own departure from the gold standard is not overlooked.

What the Farmers Demand The general effect of the combined factors has been an increase in Britain's total imports in 1935, compared with 1934, of foodstuffs mainly for human consumption. If imports of bacon and hams, of which there has been control, and of wheat, are excluded from this total, the increase is striking. Imports of those foodstuffs —excluding wheat and wheat flour, bacon and hams —in 1933, 1931 and 1935, were respectively 91.4 per cent, 93.1 per cent and 96 per cent of the 1931 figure. The pamphlet deals in detail with the results of the agreements on chilled beef, frozen beef, frozen mutton and lamb, bacon, butter and eggs, and sets cut the following as what British farmers to-day definitely favour: —

The prompt termination of all existing trade agreements. The negotiation of new agreements on a basis which will specifically give effect to the right of the home agricultural producer to priority in his home market.

Modification of the most-favoured-nation clause in the commercial treaties. Consultation with the responsible representatives of home producers' interests during the progress of trade agreement negotiations in the same way as overseas Government delegations consult their producers' representatives.

GRAMMAR SCHOOL OLD BOYS IN LONDON PLANS OF MR. H. J. D. MAHON [from our own correspondent] By Air Mail LONDON, March 21 The annual dinner in London of old boys of the Auckland Grammar School will be held on April 18. It will take place at the club house of the Overseas League, and it is hoped that Mr. H. J. D. Mahon, retired headmaster of the school, will be the chief guest. Mr. A. S. Rintoul will again act as honorary secretary. Mr. and Mrs. Mahon and their daughters will probably leave London in April, and tour by car in the south and west of England. In May they will return to London, and during July and August will motor through England. Wales and Scotland. In September and October tliev inav visit the Continent From Julv 17 to July 21 Mr. Mahon with Dr. H. G. Denham, will represent the University of New Zealand at the conference of the universities of the Empire, to be held in Cambridge.