Evening star., 1936-04-05
TRADE BENEFITS AREDUE
FROM NICARACUAN PACT
Recent U. S. Policy of Commercial
Reciprocity Furthered by Sixth of
Latin America Agreements.

nOG lArQ, VarnlSneS ana reaQy-mlXeQ
paints, and q long list Of medicinal
preparations are outstanding. AS for
the benefits to Nicaragua, they con-
sist Of assurances that coffee, cocoa
beans, bananas and other products,
which together constitute more than
80 per cent Of Nicaraguan exports to
the United States. will continue on the
free list during the period the agree
ment Is in force, and Of the maximum
reduction Of so per cent In the duty
on Peru" balsam.
Article ~ Of the new trade pact
provides for reciprocal most-favored-
nation treatment In respect of internal
taxes, while Article v safeguards i'm
porters against adverse changes In the
methods Of determining dutiable value
and Of converting currencies in con-
nection with products subject to ad-
valorem rates Of duty. Article vi pro-
hibits the imposition Of quantitative
restrictions or quotas on any product
enumerated and described in the
schedules listing the specific tariff
benefits, subject to certain standard
exceptions, which are provided for in
Article VII. Article VIII establishes
the rules to be applied in the event
either country sets up q Government
monopoly for the importation, produc-
t1on or sale OF . particular commodity.
Provisions for Exchange Control.
In Article TX are found provisions
with respect to the administration of
any foreign exchange control system
adopted by either country. Article K
provides for unconditional most-fa-
vored-nation treatment. Article XI
concerns publication Of customs in
formation and entry into effect Of
changes in customs regulations. Article
XII is q standard article providing
the agreement may be terminated on
80 days written notice II wide ex-
change fluctuations should seriously
undermine the benefits of the same.
Article XIII concerns the imposition
Of customs penalties for clerical er-
rors, and provides for sympathetic
consideration Of representations In
regard to customs regulations and
related matters and the application
Of sanitary regulations. Article XIV
defines the territorial application Of
the agreement and contains the Gus
tomary exception to the pledge Of
INSTRUMENTATION treatment in re-
spect Of advantages accorded by the
United States to Cuba and the Philip
pines, and In respect Of Nicaraguan
tariff relations with the other Gen.
tral American republics.
The remaining articles provide for
consideration Of any representations
which either country may make con-
cerning measures which, although
not In conflict with the terms Of the
agreement, may be regarded as nulli-
tying or impairing the benefits OF
the agreement, and also contain de-
tails As to the proclamation, entry
into force. duration and termination
Of the same.
The commercial concessions and
advantages Of q material nature just
outlined are not, however. the only
benefits to be derived by the United
States and Nicaragua from their new
trade agreement. The psychological
value Of one more pact intended to
promote inter-American trade and
cooperation. at . time when other
nations are pulling strongly for isola-
ton and sef-suficiency, should not
be overlooked.
(copyyisht. 1861