BRITAIN’S FOREIGN TRADE

Wanganui Chronicle, Volume 76, Issue 108, 10 May 1933, Page 10

BRITAIN’S FOREIGN TRADE

Like the new trade pact with Denmark, the Anglo-Argentine agreement is a reminder to the (Dominions that Britain’s commercial interests go far beyond the Empire, and it is impossible to ignore the foreigner. Denmark has been given a privileged position among foreign suppliers of butter, and now the Argentine is promised equally favourable treatment in regard to meat, thus showing the strong position of these two competitors in the British market. To New Zealand and Australia the vital clause in the Argentine agreement is thtat relating to chilled and frozn meat. It virtually puts foreign end Empire meat on the same basis, requiring the Dominions, if need should arise, to share with the Argon tine competitor any further sacrifice which may be required to raise prices on the British market. In plain terms, the agreement provides that there shall be no replacing of Argentine meat by supplies from Empire sources, and Thereby bars the way to that expansion of the Dominion’s trade which producers hoped for as a result of Ottawa. Tart of the intention is to protect the Home producer. The effect of the agreement sems to be to raise the Argentine to Dominion status or, what comes to the same thing, reduce the Dominions to the status of the foreigner. Such a development in Britain’s trade policy will give rise to immediate and widespread dissatisfaction both overseas and in Britain, and will show the operation of the Ottawa agreements in a new and unfavourable light. One object is to increase trade between Britain and South America, and it has been made abundantly clear in recent years how important that trade is. In 1931 the British market took 39 per cent, of the Argentine’s exports, and supplied that country with one-fifth of its imported goods. Though this trade appears lop-sided, it must he borne in mind that an annual export surplus is necessary to enable the Argentine to pay interest on British capital invested there. Those investments amount to considerably more t han £600,000,000 and it is well known that British influence is deeply-rooted in the industrial and social life of the Argentine. It is known, too. that conditions for further importations from Britain might be much more favourable than they are, but there is no indication yet what concessions are to be made. As in tho ease of the Dominions, this side of Ihe question is reserved for separate investigation.— Auckland Star.