Evening star., 1934-03-22
LATIN COMMERCE
PARLEYSADVANCE
Conferences With Mexico,
Brazil and Cuba Due
to End Soon.

(Copvright, 1894, by the Associated Press)
NEW YORK, March 22.-An early
conclusion is expected in the negoti-
atoms for trade pacts with three
Latin American countries, Mexico,
Brazil and Cuba, and considerable
increase in Aemrican exports to those
countries can then be expected, COM
mercial leaders said here yesterday.
Trade between the United States
and Mexico has steadily advanced in
the past few months, with the balance
in favor of American exporters, chief
ly due to the fact that the Mexican
peso is pegged to the dollar.
Advices from Mexico state, how
ever, that the benefit to the United
States is largely incidental because of
the nationaistic financial program of
the government there.
Part Of the increased exports to
Mexico have come from the Western
part of the United States, the goods
entering from Southern California
into the free trade zones at Tiajuana
and Ensemada, Lower California.
Roa Holds Farley.
The establishment of the free zones
is viewed as a temporary measure, de-
signed to encourage industries in that
region and soon as that end is accom-
plished the former barriers probably
will be put up again.
Fernando Gonzalez Roa, Mexican
Ambassador to Washington, has been
Conferring with State Department Of
f1cials relative to a reciprocal agree
ment.
Mexican adviceS say that the United
States, under terms of the proposed
pact will ask an increased market for
manufactured products, including
steel. automobiles and farming ma
chinery, and for lard and other prod
ucts of this nature
1t is understood that Mexico will
ask an increased market for its
liquors, fruits, vegetables and cattle.
The extent to which the United
States can hope to improve its sales
to Brazil depends almost entirely on
the coffee market.
A commercial treaty with Brazil,
now being negotiated, is expected to
give American exporters certain con-
oessions there in exchange for a per-
manent tariff-free market on coffee
here.
The foreign exchange problem,
however, has intervened in the trade
situation to a serious extent. Brazil
has embarked on a course of guided
economy, hoping to obtain a trade
balance of size sufficient to permit
the resumption of service on its for
nil -
pay about f8000,0O0 gold on her debts
Trade on Barter Basis.
The United States not only buys
half of Brazils coffee exports, but
provides about half of the foreign
exchange available there and buys
three times as much from Brazil as
it sells there.
European nations have maintained
their trade with Brazil chiefly on the
barter basis, exchanging products for
coffee The United States once tried
the barter system with Brazil. making
al exchange of wheat for coffee, but
the American coffee market was so
upset the scheme probably will not be
tried again, it is reliably asserted in
Rio de Janeiro.
Cuban-A American negotiations have
aimed at revision Of the 1902 treaty,
with the writing of new agreement
on give and take" basis.
The study of the pact is being
rushed because Of the desire to have
it approved before the American Con-
gress adjourns.
Cuba wants preferential treatment
and an increased quota for sugar, and
also desires to retain the free entry
clause of the 1902 arrangement on
such products as copper, manganese,
iron ore and other metals.
The Cubans, at the same time. de-
sire reduction of American tariffs on
seasonal fruits, vegetables and to-
bacco.
Many Artificial Industries.
On the American side, there is a
demand for an increased market in
Cuba for manufactured and other
products which Cuba does not have
or cannot economically make.
1t is asserted in Havana that the
United States has no desire to hurt
any basic, justified or natural Cuban
industry, but there is a prevailing
belief among Americans that there
are many unnatural or artificial in
dustrleS which do not warrant the
protection of high tariffs. Many such
industries were established under the
regime of former President Gerardo
Machado.
Elsewhere in Latin America, vari-
GUS countries are watching President
Roosevelt's tariff program carefully,
expecting overtures for reciprocal
treaties or moves for mutual stimu-
lation of foreign business.
The recent Pan-American Confer
ence at Montevideo aroused wide
spread interest in increased inter-
American trade, especially of Latin
America with the United States.