ANGLO-DANISH TRADE

Otago Daily Times, Issue 21979, 14 June 1933, Page 9

ANGLO-DANISH TRADE

AGREEMENT SIGNED ALLOCATIONS OF DAIRY PRODUCE CONCESSIONS BY TARIFF. (From Oub Own Correspondent.) LONDON, April 28. The trade agreement _ between Great Britain and Denmark, signed at the beginning of this week, has been published as a (White Paper. It is the first of the British agreements with foreign countries to be made since the Ottawa Conference, and will be followed shortly, it is anticipated, by others with Norway and Sweden. An important feature of the agreement is that it provides a recognition by Denmark that the balance of trade is heavily in that country’s favour, and efforts are to be made to secure increased purchases of British goods both by tariff concessions and by purchase agreements in industries.

Britain recognises Denmark’s desire to be able to sell her produce in this country, and is willing to meet her wishes so far as is possible without relinquishing the degree of control necessary to benefit home agriculture and fisheries, or infringing in any way the Ottawa agreements with Empire countries. The Danish tariff concessions- cover a wide range. Coal, coke, iron and steel, including tinplates and galvanised sheets* are in the free schedule. Among purchasing agreements arrived at between Danish and British industrial organisations is one under which Denmark will import an increase of 1,350,000 tons of coal over the present figure. The Government of the United Kingdom undertake not to regulate the quantity of the imports of bacon and hams, butter, eggs, or cream from Denmark, except in so far as may be necessary to secure the effective operation of a scheme or schemes for the regulation of the marketing of domestic supplies of these products. In the event of such regulation of imports being introduced in the case of all or any of these products* the Danish allocation for bacon and hams shall not be less than 62 per cent, of the total permitted imports from foreign countries.

This provision, which is quite apart from the Canadian bacon admitted under the Ottawa agreements, hag been worked out strictly in accordance with the agricultural policy of the Government, and nothing in the agreement prevents the expansion of home production, or the further reduction of foreign supplies. The percentage of 62 is approximately the same as now. BUTTER AND EGGS. For butter, the Danish allocation shall not be less than 2,300,000 cwt in any year. If the total imports of butter are allowed to exceed B,loo,ooocwt in any year, Denmark will be allotted her share of the imports in excess of that amount. This minimum figure is appreciably below last year’s import of Danish butter. The existing import duty of 15s a cwt is retained. With regard to eggs, the agreement allows the British Government to reduce the import of eggs below the provisional limit; which is fixed at 5,500,000 “great hundreds.” ( Britain can reduce below that figure, after consultation with the Danish Government, if the condition of the Home market warrants it, but Britain undertakes to give Denmark 38 per cent, of the British import of eggs from all foreign sources.

Thirty-eight per cent, of the existing import would be about 6,000,000 “ great hundreds.” DANISH TARIFF CONCESSIONS. The agreement provides tariff concessions as follows to a wide range of'British goods—almost all the goods in which the Urfited Kingdom is principally interested. Free of Duty—Coal, coke, iron and steel, including tinplates and galvanised sheets, jute cloths, wrappers. Lower Duties. —Printed cotton piece goods, certain unbleached cotton piece goods, certain piece goods of artificial silk mixed with cotton or wool, carpeting piece goods, felt hats, photographic, plates, jams, marmalade, pickles, biscuits, cakes, motor cars.

There is also an undertaking not to raise duties on a very wide range of ) goods. In respect of coal, Denmark has agreed to take from the United Kingdom in the three years of the agreement 80 per cent, of her total imports. The increase amounts to 1,350,000 tone, as compared with the present Danish import of British coal. Assurances have been given that Denmark will be charged the world market prices of coal. Denmark undertakes to purchase from Britain all the jute, salt, saltpetre, and wrapping paper required for the export to Britain of bacon, hams, and butter. The Danish Government undertakes .a course of action which will result in United Kingdom obtaining a considerably increased share of Danish orders of iron (incl steel. MR RUNCIMAN’S COMMENTS. Mr Walter Runeiman, President of the Board of Trade, discussed the trade agreements with Denmark and other countries at a dinner of the Association of British Chambers of Commerce last night. He said that out of the agreement with Denmark the British coal trade had secured 80 per cent, of the entire coal trade of Denmark’. “ Our coal, the Danes will find, is as good as anything that came from Poland, and our prices are just as honestly assessed,” he added. “ They send us bacon, we send them coal—tit for tat. “ The iron and steel trade will also be able to look forward to a substantial increase of purchasers of their material in Denmark, and when we turn to bacon and ham we have arranged for the salt and saltpetre which go into the hams that we eat to come from this country. We have been able to arrange for a substantial degree of trade with them without injuring the agricultural interests here.” The Baltic countries would shortly be making arrangements with us which we hoped would help to free us from tariff barriers. It was a programme completely consistent from beginning to. end, and it show'ed how far it was possible by means of tariffs to establish ourselves in a position ’where we could negotiate on an equal footing.