BARRIERS TO TRADE

Otago Daily Times, Issue 23686, 19 December 1938, Page 8

BARRIERS TO TRADE

A message from Lima records that the nations represented at the PanAmerican Conference adopted unanimously a resolution denouncing excessive trade barriers, and pledging themselves to substitute quotas and reasonable tariffs as rapidly as possible. This implies an affirmation on their part of readiness to pursue a trade policy which the United States has latterly advocated. Mr Cordell Hull's exhortations respecting economic restoration, and his exposition of what his Government considers to be essential features of a policy serving that end, have evidently not been without their effect. The interesting observation is offered concerning the Lima resolution that it constitutes by implication an emphatic repudiation of Germany's barter systerh. A reasonable interpretation to place upon the affirmation on the part of the twenty-one countries endorsing it is that the South American republics have agreed to give no support to a plan of trading under which Germany, in circumstances suiting herself, and of course the factions within their populations which sympathise with her political faith, would be able to penetrate their markets. To offset her handicap of scarcity of foreign exchange Germany has done her best to exploit barter, exchange. Under her fouryear plan one of her objectives is to secure self-sufficiency, to build up her economy in such a way as to make herself at any time completely independent of other countries. She cannot hope to attain self-sufficiency, but her effort in that direction runs counter to the move-

ment for economic appeasement and the reopening of international channels for world trade —a movement in which Mr Cordell Hull, by his negotiation of many bilaterial treaties between the United States and other countries, has taken some prominence. One of the arguments in support of the trade agreement between Great Britain and the United States was that it would have far-reaching consequences since it would tend to force participation in world economic reconstruction upon the totalitarian Powers, and so lay the foundation of economic international appeasement. However the people of Greater Germany may themselves fare behind what has been termed "The Schacht Wall," it means, it has been pointed out, for Europe and the world, the abstention of nearly seventy-five million persons from the normal commercial amenities. Referring recently to the trade methods of the totalitarian States Mr Oliver Stanley, President of the Board of Trade, said that, whereas formerly the British manufacturer could compete on level terms with the foreigners, to-day he had to compete firm against industry or possibly firm against country. This was unfair, he declared, and Britain was determined that in the neutral markets .of the world her traders should have a fair deal from those countries. An indication of Germany's attitude has been afforded in her resentment of an attempt to develop British trade in South Eastern Europe. The Export Guarantees Bill at present before the House of Commons is regarded as an important first move towards assisting British exporters to meet the competition of, the totalitarian countries in the overseas markets.