TRADE AGREEMENTS

Poverty Bay Herald, Volume LXIII, Issue 18992, 17 April 1936, Page 7

TRADE AGREEMENTS

BRITISH FARMERS' VIEW PAMPHLET STATES ISSUES t LONDON. March 21. The National Farmers" Union lias issued :i pamphlet dealing, from the Brilish farmers' standpoint, with the trade agreements with the Dominions and foreign countries. Consideration of the effects u!' _ the trade agreements of the United Kingdom on' the agricultural industry of the country (this pamphlet stales) shows that 1 he outstanding feature of the position is tin' fact that I lie United Kingdom, as tar as agricultural commodities ore concerned, is an importing country and, with the ejKC'ption of small quantities of specialised items such as perliei'ct: livestock, there is no export market for our.agricultural products, which are entirely dependent on the home market. Consequently, agriculture in this country has notliing to gain from >rade agreein'ents by way of an increased share oi markets overseas, bill much lo 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. It ia significant 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. AGGRA YATIN'i J FACTORS The combined effect of these agreements with Empire and foreign countries on home agriculture has been aggravated hy three factors : (a) The diversion of produce to the United Kingdom from Continental markets where prohibitive tariffs have been imposed in order to achieve agricultural self-suflieiency. For example, the German food policy has led to diversion of eggs and butter to the United Kingdom. (b) Many countries have organised systems of subsidising exports tor produce, for example, exports of butter have been subsidised in Cana la. Australia, Finland, and Denmark and Sweden.

(e) Currencies of soiile countries from which the greater pan of our imported produce is consigned have been depreciated in terms of sterling. The New Zealand ami Australian pounds, and the currencies of Canada, Argentina, Denmark, and Finland, are examples of this depreciation, In thai connection our own departure bom the gold standard is not overlooked. The general effect of the combined factors has been an increase in our total imports in 1935 as compared with 1934, of foodstuffs mainly for human con-

sumption. 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 these foodstuffs (excluding, wheat and wheat-flour, bacon,,'.anil hams) in 1933, 1534, and 1935 were respectively 91.4 per cent. 93.1 .per, cent, and 96.0 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. | WHAT FARMERS DEMAND The writers of the pamphlet set on! the following as .what British farmers to-day definitely favour;— .'.. (a) The prompt termination of all • existing..trade agreements. (b) The negotiation of new agreements on a basis which will specifically give effect lo the tight* of the home agricultural producer 10 priority in his home market. (c) Modification of the ''most-favoured-nation" 'clause in the commercial treaties; and (dj Consultation .with the responsible representative.; of home producers' interests during the progress of trade agreement negotiations in the same way as overseas Government delegations consult with their' producers' representatives. . ,