BRITAIN’S COMMERCIAL POLICY

Otago Daily Times, Issue 22659, 26 August 1935, Page 10

BRITAIN’S COMMERCIAL POLICY

F. 8.1. SURVEY PROTECTION A SUCCESS (From Ocb Own Correspondent. ■ (Bt Air Majl.j i LONDON, July 27. The Federation of British Industries has issued a' survey which sets forth in detail the results of British commercial policy since the construction of a British protective tariff, the measures taken for the rehabilitation of British agriculture, the conclusion of the Ottawa agreements, and the negotiation of trade agreements with a number of xioh.-. Empire countries. The main conclusion drawn by the federation from the facts contained in the survey is that Britain’s commercial policy, taken as a whole, has secured a remarkable degree 'Of economic recovery for this country, 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 markets United Kingdom exports have advanced, both in value and .as a percentage of our total exports; with the trade agreement countries British exports have also gained ground. It is a fair deduction from this state of affairs-that the best course for ‘Great Britain is to continue and extend the policy which the Government has pursued with success during the last few years. It has to be admitted (the report continues) that although the tendency of our trade has been in the right direction the actual improvement registered does not warrant any feeling of complacency. Too great a proportion of onr revival in industrial activity has been due to the demands of the home market : - too little has been due to a real development of the export trade which is vital to the future prosperity of the country. So' far as the commercial policy ,of Great Britain is concerned the federation suggests that three points stand out: T ndustrial Protection has been a success, since it has been designed to give protection to industries which are economic and efficient. The fears expressed in the past that industry would use a tariff as a shelter for inefficiency and for the purpose of exploiting the consumer have not been realised. Equally so, the cost of lining index, which it has been alleged would rise in consequence of a tariff, has not been affected thereby and remains stationary. OTTAWA AGREEMENTS.

The results of the Ottawa agreements have been to increase interimperial trade, although so far the overseas 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 great that British industrialists have taken' a broad view of the disproportion in the advantages which have accrued from Ottawa. It is suggested, however, that it is essential, in the long run, for the development of the economic life of th Empire on a sound and enduring basis, that there should be closer relation ’between the treatment meted out to and received by each part of the Empire from the other constituent units. Before the next Imperial Conference the United Kingdom will have to decide whether its policy towards the overseas dominions is to be based on the principle of. reciprocity, or whether Great Britain is prepared to continue the general principle of free entry irrespee> tive of the treatment which British exports receive in the various dominion countries. The third deduction is that the trade agreement countries have been the most satisfactory of our foreign customers. The federation suggests that the most-favoured-nation clause should hot be included more or less automatically in any treaties with foreign countries, but should be regarded as a most valuable concession by this country, requiring an adequate and quid pro quo.