Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-14
Canadian-Australian Tariffs.

To divert to each other trade now
being done with countries outside the
British Empire" is the euphonicus but
not ambiguous purpose Of a commercial
treaty just effected between Britain s
two great daughter nations Of Canada
and Australia. 1t was proclaimed with
an appropriate flourish Of trumpets in
the Dominion House of Commons at
Ottawa yesterday by Prime Minister
Bennett. The agreement guarantees the
bulk Of commodities exported from
Canada substantial tariff preference
In Australia. In return, the Canadians
extend preferential rates to specified
Australian goods.
The interempire pact thus completed
is the second major tariff reform step
initiated by the Bennett government,
which was swept into power in Canada
last year primarily on tariff issues. The
FIRST step was the PRONUNCIATION of re-
taliatory duties against American prod
ucts entering the Canadian market. In
direct consequence Of the new Hawley-
Smoot rates imposed on Canadian
goods crossing the border into the
United States.
There is little room to doubt that the
Canadian-Australian treaty is prin-
cipally aimed at American trade. No
other country outside the British EN-
pre- comes seriously into consideration.
The Australians object to the 1890
American tariff law almost as strenu-
ouSly as the Canadians do. Having a
common grievance, the vast continent
down under" sees entire fitness in
making common cause with Uncle
Sans best customer and North Amer
lean neighbor.
1t would be idle to underestimate the
importance of their arrangements to
buy more OF each others manufactures
and less OF those stamped Made in
U. s. A" One item in the agreement
tells its own eloquent story. Canada
is to have an increased advantage on
motor car chassis unaSsembled. The
former rate was 221s per cent against
Canada. Under the new arrangement
the Australians will assess a duty Of
only Is per cent, while the general
tariff of 321a per cent-a differential
against us Of 171s per cent-will apply
to chassis from the United States
Canada shipped 100000 worth of
chassis unassembled to Australia last
year. From this country there was ex-
ported $16,5o0, 900 worth.
The United States Tariff Commission
has just made public, in answer to
charges OF ineffective operation Of the
flexible provision of the revenue act.
figures showing that 1evisionary action
on twenty-five commodity rates-out
OF the 2,200-odd in the law-has been
taken since the Hawley-Smoot meas
ure was enacted. Rate decreases,
eventually decreed by presidential order
were recommended on such items as
maple sugar, pigskin leather, wool felt
hats, pipe organs, gelatin, olive oil in
package and Brentwood furniture.
When President Hoover signed the
1880 tariff bill he pledged that Its
acknowledged inequalities could and
would be rectified by its flexible machin-
cry. If more potentially damaging deals
abroad, like the Canadian Australian
commercial treaty, are to be warded
of betlmes, it would seem as If Chair
man Fletcher and his fellow tarin
commissioners would be well advised to
step on the flexible gas during the next
year with somewhat more vigor than
hitherto.