AMERICAN FEAR

Rotorua Morning Post, Volume 2, Issue 365, 28 October 1932, Page 3

AMERICAN FEAR

OTTAWA RESULTS ESTIMATED THAT HUGE TRADE LOSSES Wli^L RESULT. MUST CUT PROFIT. A canvass of foreign trade authori.ties who have kept a close wateh on the deliberations at Ottawa developed the unanimous opinion that until unpublished portions of trade pacts are made known and agreements-still under consideration concluded, the American exporter will find it impossible to evaluate the effects of the Conference on this country's trade, says the New York Times. Explaining their reluctance to be quoted on future 'effects of the agreements, exporters pointed out that estiinates concerning the U.S.A's probable annual trade losses due to the treaties ranged from 75,000,000 dollars to more than 200,000,000 dollars. Major points upon which uncertainty still existed included the designation of the 220 man" ifactured items which Canada would allow free entry from England; the percentage of British raw materials necessary to entitle goods to tariff privileges in the Empire (opinions varied between 25 and 75 per cent) ; the details of Schedules E, F and G in the treaty between Australia and the United Kingdom; details 6f the trade compact between Canada and South Africa, a treaty be- 1 lieved to be aimed at American citrus 1 fruit saies in Canada, and the major details of the treaty between Great Britain and New Zealand. Waiting for News. Considering the Canadian treaties as of chief importance to the United States manufacturers pointed out that until the list of 220 items was made public no plans to meet that part of the agreement with the United Kingdom could be eonsidered. If, as was expected, the items granted free entry were highly competitive with United States exports to Canada, the loss, in saies to producers here might well assume serious proportions. The decision reached as to the "Empire content" necessary for the designation of goods as home produce will be of tremendous importance to the hundreds of branch plants established in Canada by American manufacurers. Menace to Branches. If the 75 per cent. rule is adopted, these producers, who have diffieulty now in complying with the 50 per cent. requirement, will find it impossible to operate branches economically. Many producers now ship semi-finish-ed goods from the main plant in the United States to branch factories, where final production processes are carried out. Of the three unpublished schedules in the Australian treaty with the United Kingfidom, one, Schedule F, contains a formula under which increased preferences will be granted the Mother Country on a wide range of commodities. Will Face Difficulties. In the Canadian treaty with South Africa the way is opened to deprive the United States of saies to both Dominions. Some estimates have placed the possible annual volume of this country's saies to South Africa which will be lost to Canada at 20,000,000 dollars, including both raw and finished goods. Saies of citrus fruits and other products for which America has built up a considerable market in Canada will be lost to South Africa, it was explained. In spite of the uncertainty felt producers are far from discouraged about continuing saies to the Empire. Once the obstacles with which they will have to contend are known, they said, ways wijU be found to meet the difficulties. "To summarise the whole situation," one executivie said, "the /American manufacturers will have to work harder to retain their markets. Profit margins on fcreign saies may have to be cut, and moi'e liberal terms granted to British buyers; but American producers will find some way of keeping the major portion of the markets. they now enjoy in the Empire.