TRADE AGREEMENTS

Poverty Bay Herald, Volume LXIII, Issue 19045, 19 June 1936, Page 3

TRADE AGREEMENTS

REVIEW IN BRITAIN

ARGENTINE AND DENMARK

LONDON. May 13. Britain's foreign trade agreements arc very much in the forefront, of discussion again. On Mav 6 the Boca, Agreement. by which Anglo-Argentine trade lias been regulated since 1933, entered the final stage of its life. Notes bad been exchanged between the two countries providiug for what mav be called a "conditional" termination of the agreement next November. The period which mus elapse between giving notice and final termination has been shortened from six to four months. July 7. therefore, now becomes zero dav for this agreementIn the interval, it is hoped to negotiate a revised agreement. The Anglo-Danish agreement expires on June 20. Negotiations with the Danes were renewed this week. Bttfc these negotiation:* are stated to have only a very modest aim. The most that is hoped for is a prolongation of the present agreement for s'ix months or so. with n few minor modifications, of its more objectionable clauses. At the end of this year, or in the first, days of 1937, a whole batch of other agreements expire—among them those with Poland and Norway. The key to the question of the future of these agreements is the longterm agricultural policy which Britain is to follow, and, of course, the -discussion.with the dominions.

Summing up the results of the Ai'gen tine agreement, which, it declares is no! an easy task, the Financial Mows States that tiie devaluation of the peso almost immediately after the agreement was signed masked tendencies which would otherwise have been clear. On balance, however, British exporters have probably benefited. The, agreement gave them certain tariff reductions and stabilised other duties. Such stabilisation/ is in itself an advantage in these days. Certain types of British manufacturers, such as cotton textiles, have certainly lost ground in Argentina recently. But the effects of Japanese competition on the sales of cotton goods can hardly, according to (he Financial News, he laid at the door of the agreement. Argentina's exports, lo Britain consist chiefly of chilled or frozen l meat, and it is here that the battle round a new agree incut is most tierce. "Mr. Elliott's policy," the Financial News points out, "has hitherto theeu directed to raising prices for the British farmer, and in many branches of agriculture he has had some success. How far in the case of meat, this process can be carried 1 without injuring consumption is open lo question. But impartial opinion must, doubt whether the limit has not been nearly reached. The essence of the question can be slated in quite simple terms. The in-, vestment of British capital in Argentina is estimated at between £500,000,000 and £600,000,000. If this capital is. to draw the return it should draw—or, indeed, any return at all—Argentina must have sterling exchange beyond' what is necessary to pay for imports from Britain. She can acquire this only by her exports, and the most important of these is beef, now and apparently for a long lime to come."