FEAR OF "DUMPING"

Dominion, Volume 13, Issue 245, 10 July 1920, Page 9

FEAR OF "DUMPING"

AMERICA'S EXPORT TRADE - WEBB-POMERENE ACT EXPLAINED ; Many business men in Australia and t New Zealand have expressed a fear that manufacturers of the United States have • organised a 6cheme of dumping in order to get a grip of foreign markets, They have also suspected that tho American Government is aiding and abettiiix the exporters in unfair methods of competition. The jJVew Zealand Koard of Trade has made careful inquiries into thin matter, and has reason to believe that tho suspicion of dumping ia based on <t nisunderstanding of America's Webb-Pom-erene Act, by which the Federal Government ■ facilitates the co-operation of manufacturers for the export .trada and regulates their in loreijn .markets. The Webb-Pomerene Act was exr/iaincd at the National Foreign Trade Convention at San Francisco on May U by tho Hon. Huston Thompson, vice-chairman of the Federal Trade Commission, foimerly Assistant Attorney-General of the •' United States. Copies of Mr. Thompson's address- are being sent to chambers of commerce by the Board of Trade. "It was the hope of the proponents of *he Bill," Mv. Thompson explained, •"that it would enable the small manufacturers and producers of America, by combining and thereby saving prohibitive overhead expenses, to get their goods into the foreign market where formerly they were unable to do so; that in cutting • down the expenses of reaching the foreign markot American exports could be Isold in competition «t a lower ptice, and, ■', thus benefit the foreign consumer. It was 'expected that the sections of the Act • giving control to the Federal Tride Commission, not only of the Webb-Pomerene .combinations, but all of the American exporters in. foreign markets, and of their competitive methods in relation there- • to, would result in regulating competition in tho foreign market between American competitors, just a* much, as competition ia regulated in our domestic market; that such regulation could only redound to the benefit of the home competitor in the foreign market or to the competitors of other nations. It was believed- that fulZ protcc tion was given by the Act to the domestic market from the possibility of exploitation through the supervision of the Federal Trade Commission. Though hostility to the law still prevails in Australia and other countries, it. is pleasing ■to note that our Canadian cousins, having closely observed its effects, have stated their belief that the Wobb-Pome-rene Act in due time will prove a factor 'in increasing the trade of the United • States with their markets. "Whether the Webb-Poinereno Act shall serve as a successful vehiclo by which we shall reach those foreign markets and obtain oui fair share of their business depends in very great part on us. Thero is but- one Obstacle in the way; there is but one problem to meet, If we would solvo.it, ■let us instead of attempting first to capture the business of the foreign markets,' capture first and. keep always the eon•fidence of tho people in those markets. It was this conception and vision that ..President,Wilson and our Congress had ■ when the Webb-Pomerene law was en.acted. Whatever may be said of this •Act, it was passed % legislators who had high hopes that they were doing that which' would benefit American business ■men, would not injure tho domestic consumer, and would not exploit the foreign t consumer." "Since we havo taken this step," coneluded Mr. Thompson, "is it not proper that we should invito the other nations of the world to likewise supervise their, 'exporters in their methods of compoti- ' tion? Until tho other nations do so, ;the final great step in tho reorganisation 'of the world's business is likely to be : delayed, i.e., the formation of an international trade commission by the nations of the world. It'is a most hopeful 6ign that the Pan-American Financial Congress, lately convened in Washington, declared in favour of such an international trade commission for the Pan-American republics. In inviting our friends to take this step, we hold out' to them as our'purpose and intent that which is so beautifully phrase 3 in tho Speech of President Wilson, in hig message to Congress on May 20. 1919. wherein he says: 1 believe that our business men, • our merchants and our capitalists, will have the vision to see that prosperity in one part of the world ministers to .prosperity everywhere; that there is in E very true sense n solidarity of interest throughout the world of enterprise, and thnt our dealings with the countries that have need of. our products and our money will teach them, to deem us more than ever friends'whose necessities wo seek in the right way to serve.'"