New Britain herald., 1930-05-02
CANADA PROPOSES
 TARIFF INCREASES
CounterVailing Rates Answer to
 U. s. Levy on Goods

Ottawa, May . LPl-A new budget was before the house of commons today embodying a system of coun- tervailing tariff schedules which will make the Canadian duty on com- aodities in reciprocal trade between this country and the United States equal to the United States tariff.
 The products subject to the coun- tervailing rates are wheat four rye. oats. livestock, eggs. butter, meats, potatoes. soups, cut flowers and cast iron pipe.
 The budget does not specifically name the United States but that is the only country with which Canada carries on any considerable trade in which the commoditits listed are both imported and exported.
 Not Retaliation Move
 C. A. Dunning, minister of finance. in his speech presenting his first budget yesterday, denied that the Countervailing rates were placed in the budget as a means of retaliation for tariffs imposed on Canadian ex- ports.
 Those who raise prohibitive bar riers against our products entering their markets" he said, must eX- pect that we will extend favor to our own good customers rather than to them. l speak in no spirit of re- taliation. I would rather extend lower tariff favors to those who ex- tend them to us than to those pro- hibitive tariffs in return for like treatment.
 Tt has been decided to embody within the wording of limited lumber of items provision for coun- tervailing duties whereby Canada, while not gene rally raising schedule rates, imposes upon such products from another country rates equiv alent to those imposed by that coun- try upon the identical Canadian tariff schedule.
 This means that other countries who both buy from and sell to us these commodities, have it in their power. by reciprocal action on their part, 10 enable us to reduce duties to the level Of the rates stated in our tarif,"
 42 Cents Per Bushel
 Under the operation of the coun tervailinc duties, wheat on which a duty of 12 cents bushel is levied under the general schedule would be subject to duty of AZ cents per bushel from the United States These figures are based on the present United States tariff schedules.
 The countervailing rates would automatically adjust themselves to any changes On the commodities listed in the new United States tariff bill now before congress.
 The new budget provides broad extension of British preference in the Canadian market with 5S9 of the LIS items listed in the tariff schedules on the free list when inn ported from within the empire. on hundreds Of other items duties under British preference have been re- duced, in many cases on comm odi- ties on which the general tariff has been increased.
 In his budget speech MT. Cunning said Canadas visible exports showed decline Of s44,ooo,oo0 for the fiscal year, the total being 44,a0o, oo0 as against imports of sl,24S.20o, 900.
 |. $. Largest Customer
 He said the Country's largest trade continues to be with the United States. Exports 10 that country during the past year increased sl5,- 3oo,ooo and imports decreased s2o,- s0n.o0o.
 The budget showed surplus of s44,507.o6o for the fiscal year Dur ing the year the most important ex- penditures were s10,o00,0o0 for the New Welland canal and s6,5o0,00o for the Hudson Bay railway and terminals