UNITED STATES AND CANADA.

Southland Times, Issue 14633, 25 January 1911, Page 4

UNITED STATES AND CANADA.

The announcement that has beeu made by cable, that there will be a substantial reduction in duties on several natural and manufactured products of both countries, recalls to mind the fact that the proposal that tariff negotiations be initiated at the earliest opportunity was first mooted in May of last year, and that off and on since then news of the protracted negotiations that has trickled through has indicated that little progress was being made towards bringing about a reciprocal agreement. The increasing cost of printing paper was reported to have been the immediate cause of the United States Secretary of State hastening reciprocity negotiations. On April'lst last the United States Payne tariff came into force. This tariff imposed upon all imports into the United States duties according to schedule, with a surtax of 125 per cent. The duties together with the surtax constitute what is known as the general or maximum tariff. The surtax is used as an instrument for the negotiation of special tariff treaties with other countries. Providing a quid pro quo is forthcoming, the United States is prepared to rule out the surtax and admit certain imports agreed upon with no other charge than schedule rates. The matter in dispute between the United States and Canada was whether imports should he subject to the 25 per cent, surtax or not. Canada allows a general preference equal to 33 1-3 per cent, on British manufactures, and she has arranged a tariff agreement with Germany, and by a convention with Prance special concessions were made upon some hundred lines of imports from that country. Clearly, then, Canada has granted preference to certain rivals of United States manufacturers. The President of the United States is empowered to remit the surtax of 25 per cent, in favour only of countries which do not “unduly discriminate’’ against American goods. The concessions made by Canada in favour of French and German goods were construed by President Taft as discriminating against the United States, and he refused to remit the 25 per cent, surtax. The result was that a tariff war has been waged between the two countries, Canada making a particularly effective reply by placing a prohibitive export duty on wood pulp. In consequence the trade between the two countries became greatly affected, and almost immediately an agitation was begun, more especially by the United States press, regardless of party, urging conciliation. Both countries stood to lose heavily by a tariff war. In 1908 exports from the United States to Canada were valued at £44,000,000, while Canada’s exports to the United States amounted to £28,000,000. Exports of primary products from Canada to the United States will also steadily increase, for America has now practically been struck off the list of countries exporting foodstuffs, and the advantages that must accrue from unrestricted trade intercourse with an enormous food-producing country like Canada must, in the circumstances, be obvious. The prohibition of the exportation of wood pulp from Canada to the United States, as previously indicated, pressed hardly on the latter country, and this from all accounts caused the agitation for conciliation to become intense. It is quite evident that by waging a tariff war neither country has been benefiting itself, and the reported results of the just-con-cluded negotiations Indicate that the peoples of both countries have thoroughly realised this.