REBUFF TO UNITED STATES

New Zealand Herald, Volume LXXVI, Issue 23275, 18 February 1939, Page 12

REBUFF TO UNITED STATES

Just two months ago a resolution regarding trade relations, submitted to the Pan-American Conference at Lima, Peru, by the United States delegation, was accepted by all the nations present, including Argentina. One clause pledged those present to the "negotiation of commercial agreements on the principle of 'no discrimination,' " The gathering also agreed in principle to the policy of removing all barriers to trade except customs tariffs. Now Argentina has announced that imports from the United States will be increasingly restricted in order to reduce the existing adverse balance of .trade. It has not taken long for the agreement in principle to become very sharp disagreement in practice. It is not that the balance of trade been very seriously against Argentina in recent years. Figures for 1938 are not yet available, but in 1937 there was actually a small commodity balance in favour of Argentina. This was probably caused by sales of wheat. The position has changed since; with no visible prospect of selling wheat to the United States, and with beef excluded from the great northern market, Argentina is obviously determined to penalise return trade. A more significant point still is that, recent exchange restrictions already favouring trade with Britain, the Minister of Finance has affirmed a policy which must mean giving Britain preference so far as is possible. The statement is that the Argentine will buy from any country goods equivalent to its purchases in Argentina, with allowance for debt payments on both sides. In 1937 British imports from the Argentine were valued at £60,000,000 and her exports to that country at £20,000,000. Here is the chief field for the new trade policy and a further indication, which New Zealand should note, of Argentina's determination to preserve British goodwill by all possible means.