AN ANGLO-AMERICAN TRADE AGREEMENT

Hawke's Bay Herald-Tribune, Volume 81, Issue 51, 23 November 1937, Page 4

AN ANGLO-AMERICAN TRADE AGREEMENT

Talk of bringing about a trade agreement between Great Britain and the United States of America bas been in the air for a good many months now. President Roosevelt is apparently in tborough aeeord with his Secretary of State, Mr. Oordell Hnll, in a desire to promote greater freedom of trade among tbe nations. This is not with only economic considerations in view, bnt also with the idea that closcr and more iiberal trading relations wonld work greatly for the restoration and preservation of peace in the world. Already Mr. Hull has been able to effect trade agreements with some of the smaller Enropean States, hnt as yet none of general import with any of the Great Powers. It is, however, thought that if some Anglo-American understanding could be reached and proved satisfactorily workable, other countries might realise it to be to their advantage to relax their policies b.ased on the principle of internal self-sufficiency. In agreement with this conception there is a considerable body of publie opinion in the Old Country, and it is not so long ago that the Britisli Foreign Secretary, Mr. Anthony Eden, presumably speaking for bis Government, said that a trade agreement between Great Britain and the United States "wonld be one of tbe most effective steps we could take not only in our own interests but also in those of the whole world." There would thus seem to be full .agreement between tbe two Governments so far as concerns the broader questions of policy. One of the main difficulties in the way, however, is as to how any such agreement can be framed without prejudice to the principle of intra-imperial preference that has become pretty fairly estahlished and has been embodied in the Ottawa agreements of 1931 and their extensions. It appears to be taken for granted that America will have in mind easier access to British markets not only for her manufactures hut also for her surplus 1 agricultural products, some of which at least would come into competition with those from overseas dominions. Probably this would apply more to eereal crops, such as wheat, thus touching both Canada and Australia, than to the pastoral products, wool, meat and dairy produce, which constitute New Zealand's chief exports. .The problem that thus presents itself is as to how the interests of the primary producers of the dominions can be safeguarded wbile at tbe same time conceding admittance of like American products to the British market in any volume that would be really worth while. Doubtless a good deal of discussion on this point bas been going on between tbe Governments of the Old Country and of the dominions, though, being doubtless of a confidential nature, we bave heard very little, if anytbing, about it. Possibly our own Government may in one respect weleome the opportunity of reopening the subjeet of mutual preferences, as it is just now in something of a dilemma as to how our secondary industries, so hardly hit by its legislation, may be fostered and proteeted without offending against the terms of the Ottawa agreements. Despite contentious to the contrary, there can be little idouht as to the Ottawa agreements entered into six years ago and, with but sligbt modifications, still in operation having worked definitely to the mutual advantage of the. Mother Country and of her dominions, though perhaps more of the latter thau of the former. According to published returns, betweed 1932 and 1936 British imports from dominions parties to those agreements increased by £73-million, from £177-million to £250-million, while British exports to tliose dominions rose by about £47-million, from £101-million to £148-million. Concurrently, too, the trade both of the United Kingdom and of the dominions as a body with foreign countries has very substantially increased. As for trade betwlen the United Kingdom and the United States, it has during the same period been distinctly lop-sided, American exports to Great Britain exceeding imports from her by no less an aggregate than £363-million. Thus, if any concessions are to be made in order to secure an Anglo-American trade treaty, there seems little doubt as to which side shonld make them. Beyond all this, however, it is just as well for us out here to bear in mind that among Old Country agrienlturists there is a by no means negligible lot who condemn the Ottawa agremeents as being inimieal to their interests and would like to see them abolished altogether. If we are to judge by the messages we are receiving there is some prospect of Anglo-American negotiations being brought to a fairly early . conclusion, and the outcome will be awaited both liere and in . Australia with no little interest.