October 12, 1932


The leather schedules are revised, with resultant increased preference on such important lines as belting and sole leather, pig and morocco leathers, and all leather further finished than tanned. Kip lining leathers, reptile leathers and upholstery leathers are made free of duty under the British preferential tariff.


CHEMICALS


Although difficult to describe in non technical language, no changes among all those proposed are more complete, more vital or more valuable in a trading sense than are those pertaining to chemicals and drugs. The Canadian schedule has been revised from end to end with one objective always in view: the shifting from foreign to empire channels of the great and growing business in these indispen9a'bles of domestic and industrial economy. The immediate diversion will be great; the potential, incalculable. As industry continues to turn more and more to research and the laboratory, and as science becomes more and more applied rather than pure or academic, so will the place and power of the chemical factor in our modern development continue to grow apace-and in that growth Canada and the empire stand ready to share, hand in hand. Inasmuch that industry stands to gain most directly from the development of the empire toward self-sufficiency in a chemical sense, it is believed that Canadian industry as the largest consumer-will gladly accept the imposition of duties on certain chemicals at present free, in order that empire sources many of them in Canada, actual and potential-'may be exploited and developed for mankind.



The British preference has been widened on every item of the flat glass schedule; on one item the British preferential rate has been reduced and on all others it has been removed entirely.


VEGETABLE OILS


An empire policy has been followed in respect of vegetable oils. Even in the subnormal trading of 1932, Canada imported of these close upon $7,000,000, of which more than $5,000,000 came from foreign sources. Duties have been imposed under the intermediate and general tariffs, in the hope that the preferences will divert at least a part of this enormous trade into empire channels. Other commodities or commodity groups on which the British preference is materially increased include: Cigarettes and manufactured tobaccos, Canned pineapples, Perfumes and toilet accessories, Books and advertising matter, Gums and lacs, Soap, Glues and gelatines, China and porcelain tableware, Metal wire, Aluminum and products thereof, Linen thread, Asphalt, Gutta percha and balata, Rubber boots and shoes, Fertilizers, Manufactures of fur, Parts for motor trucks, Certain crude oils, not natural. Under this agreement, Canada has in addition declared that it will give the United Kingdom producers full opportunity of reasonable competition on the basis of the relative costs of economical and efficient production, provided that in the application of such principle, special consideration should be given to the case of industries not fully established. Pursuant to that undertaking, this government has increased the preferences in the manner I have just indicated, and has furthermore agreed to cause the tariff board, authorized by act of parliament at its last session to review, at the request of the government of the United Kingdom, any item in our tariff schedule which it is claimed is out of keeping with the principle adopted. I shall make only a very few observations about the provisions in our treaty with the United Kingdom dealing with this feature of the agreement.



114 COMMONS Imperial Conference-Trade Agreements The general rule governing United Kingdom concessions to us is, that we have free entry, being on an equality basis with the United Kingdom producers except as to freight charges. The exceptions to this rule are very few. The general rule governing our concessions to the United Kingdom, is that we maintain a tariff, though a preferential one, against their products. We have lowered our tariffs in respect of those articles in which they are specially equipped to supply our market and we have made substantial concessions by additions to the free list, while they, having in the United Kingdom the greater advantage in years, production and markets, and the like, were prepared to meet us on a free entry basis. It was not to be expected that the industrial structure of this country could permit of free entry from such a highly developed state as Great Britain with her more than forty millions of people. But it was our purpose to adjust our preferential tariffs so as to place the United Kingdom producers on that basis of fair competition with ours that has been afforded to us by continued free entry into their markets. We have therefore provided that our tariff board shall act as a judicial body as well as a fact-finding body in so far as their functions of interpreting the agreement are concerned. Upon representation of the British government, the duty will devolve upon our tariff board to make a survey of the relevant facts touching production, labour costs and the like in the industries affected in order that parliament shall have the facts necessary to enable it to see that the government of the day is carrying out in spirit and in letter our undertaking solemnly given to the United Kingdom government. It may be mentioned that it is possible under the terms of the treaty for the government to ignore the recommendation made. The government, of course, could not, without being guilty of a sharp departure in constitutional practice relating to tariff and other financial matters, abrogate its responsibility of recommending to parliament all decisions affecting our tariff structure. The report of the tariff commission is, however, tabled in parliament in order that the government may satisfy parliament and in fact the country as a whole that the decisions which the government makes under these provisions are in keeping with the spirit and letter of the agreement. I think that the house may be well assured that this government which gave the undertaking in the agreement will see that it is carried out, and if I interpret aright the attitude of this country to the great imperial policy we are adopting, public opinion throughout Canada would demand that it be so carried out. I believe that this principle of fair competition will always find favour with the Canadian people. It has never been the intention of this government so ito permanently adjust its tariffs as to give the Canadian manufacturer an improper advantage in competition with the importer. To do so would have worked an unforgivable hardship upon the consumer, whose welfare is after all, the surest criterion of our prosperity. Two years ago this country enacted measures to meet abnormal world conditions. It then became manifest that all earlier attempts at world reconstruction following the war, had failed. In 1920 it was thought that the world's producing capacity was sufficient to refill those warehouses of supplies emptied by the war. Then after a few years currencies were again linked with gold, and the world had, with a few exceptions, a single medium for concluding contracts and conducting trade, and it was assumed that we were once more on the tried and certain path of recovery. By 1925 the real evidences of recovery were supposed to have appeared. The world's standard of living was then higher than in 1913, and in 1929, after a full postwar decade had passed, the world as a whole was well ahead of all earlier standards and seemed to be advancing to unheard of levels of prosperity. Then the great disillusionment came, and we were called upon to face the reverse activity of that false inflationary world movement which culminated in the collapse of markets. Special measures which we then took to protect the financial integrity of this country against the wholesale dumping of goods at distressed prices by foreign industrial concerns facing or going into bankruptcy, will be maintained so long only as world conditions justify their existence. The economic situation having since then slightly improved, our industries have had an opportunity to readjust themselves to new conditions, have become more firmly established and are in a better position now to meet competition from abroad. Having regard to the advantages which we have Imperial Conference-Trade Agreements secured through the concessions we have given, I am confident that Canadian manufacturers who realize that their welfare is inseparable from the welfare of this country, will gladly accept the readjustments to be made, and under them as we return to better times, will enjoy that measure of prosperity which in this country is attendant upon their efficiency, resourcefulness and good management. For the concessions granted, Canada has secured concessions in the United Kingdom market for both its manufactured and natural products. For its manufactured products, we have secured free entry except in respect of a very limited list of goods, and the advantages of current tariffs against foreign countries. This means that whereas in the Canadian market, the United Kingdom manufacturer must still compete with the Canadian manufacturer protected in respect to the great majority of our products, in the United Kingdom market, the Canadian manufacturer may compete on equal terms with the British manufacturer, except in respect to the small list of articles I have mentioned, and will enjoy alike with him whatever protection is given the United Kingdom producer against foreign countries. And I submit, sir, there are very few within sound of my voice who, merely hearing these words, have any adequate appreciation of their implication. It is elementary that the price to the consumer of Canadian products will be reduced in direct ratio to the cost of production. It is equally elementary that the cost of production will be reduced in direct ratio to the volume of production, and it is self-evident that the volume of production depends on the volume of consumption. Consequently, when the Canadian producer is assured not only of fair competition with the United Kingdom producer in the home market, having regard to the relative cost of production, but furthermore is assured of free competition in the United Kingdom market with the United Kingdom manufacturer, behind a tariff wall by which both profit without distinction, the consumption of Canadian products must be increased. The cost of production must, therefore, decrease and the cost to the consumer be proportionately lessened. In other words, when there is open to the Canadian manufacturer not only the home market of ten million people, but the United Kingdom market of over forty million people, it is manifest that Canadian industry must profit, and will develop by sure and progressive stages to the point where it will be able to compete on equal terms with all the countries of the earth. Thus, it may be fairly said that by an adjustment in our tariffs we have secured preferences in the market of the United Kingdom which promise great advantage to Canadian industry. I shall illustrate the substantial character of the preferences secured by enumerating a number of important articles of Canadian manufacture, indicating the margins of preference that will operate in cur favour as a result of the free entry provision contained in article 1 of the agreement and by reference to the marked change which six months under these preferences have made in many of pur export products. I shall ask the house to observe that when the Import Duties Act was passed in the United Kingdom on March 1, 1932, the British parliament provided by section 4 of that act as follow's: 4. (1) This section shall apply to the following countries, that is to say, the dominions within the meaning of the Statute of Westminster, 1931. India and Southern Rhodesia, and any territories in respect of which a mandate of the League of Nations is being exercised by, or which are administered under the authority of, the government of any such dominion as aforesaid. (2) In the case of goods which are shown to the satisfaction of the commissioners- That is, the Commissioners of Customs and Excise -to have been consigned from any part of the British Empire and growrn, produced or manufactured in any country to which this section applies, neither the general ad valorem duty nor any additional duty shall be chargeable until the fifteenth day of November, nineteen hundred and thirty-two, or if a later date is fixed for the purposes of this section by resolution of the commons house of parliament either generally or as respects any particular country, then, in cases to which the resolution applies, until that later date. (3) At any time after the first day of November, nineteen hundred and thirty-two, the treasury may, on the recommendation of the Secretary of State, by order direct as respects goods of any class or description specified in the order, being goods which are shown to the satisfaction of the commissioners to have been consigned from any part of the British Empire and grown, produced or manu- 116 COMMONS Imperial Conference-Trade Agreements factured in aiiy country specified in the order, being a country to which this section applies, that as from such date as may be specified in the order, not being earlier than the said fifteenth day of November, or, if any later day is fixed as aforesaid, not being earlier than that date, the general ad valorem duty or any additional duty or both such duties shall not be chargeable or shall be chargeable only at some specified rate less than the full rate, and where any such order is made, the provisions of this act shall have effect accordingly. During the last session of parliament attention was riveted upon that provision by the leader of the opposition (Mr. Mackenzie King), and it will be within the memory of this house that he brought to our attention this fact, that on the 15th day of November the preferences we enjoy7 in the British market would lapse unless some action were taken. When I point out that with only a few exceptions that preference applies to all goods exported from a British dominion to the United Kingdom the character, the scope, the magnitude of that preference can be understood. What we have succeeded in doing is embodied in article 1 of the agreement between the United Kingdom and Canada which I have laid on the table, to which article I now direct attention. Article 1 provides as follows: His Majesty's government in the United Kingdom undertake that orders shall be made in accordance with the provisions of section 4 of the Import Duties Act, 1932, which will ensure the continuance after the 15th November, 1932, of entry free of duty into the United Kingdom of goods consigned from any part of the British Empire and grown, produced or manufactured in Canada which by virtue of that act are now free of duty subject, however, to the reservations set forth in schedule A appended hereto. I wonder if the true significance of that is understood, I wonder if the magnitude of that concession is appreciated. After the 15th day of November, while other countries pay tolls and duties in order that their goods may find a market in the United Kingdom, the goods of this dominion find access to that market free of duty of any kind. The free entry therefore provided for in our favour by the Import Duties Act until the 15th day of November of this year only, has now been guaranteed to us during the currency of the agreement by reason of article 1 thereof. The range of Canadian goods accorded tariff preference in the United Kingdom, in consequence of article 1 of our agreement with the United Kingdom, is practically unlimited. Under the Import Duties Act, passed on February 29, 1932, the United Kingdom extended its former limited tariff so as to impose duties on nearly all foreign goods. The measure temporarily exempted empire products. Article 1 of our agreement guarantees the continuance of this exemption to Canadian goods during the life of the agreement. The general rate imposed against foreign goods by the Import Duties Act was 10 per cent ad valorem, but by means of power taken in the act to increase duties, this rate has been increased on many commodities to 15 per cent, 20 per cent, 25 per cent, 30 per cent or 33,' per cent ad valorem. Preferences under article 1 therefore range from 10 per cent to 33^ per cent ad valorem. I shall in a moment deal in more detail with the benefits to be derived from our preferences in the United Kingdom under the existing tariff as modified by the conference agreements. I shall touch only on goods likely to be of most interest to Canada. In respect of manufactured goods, free entry secured to Canada by article 1 of the agreement will mean that we shall now enjoy the following preferences: Not ten per cent, but the larger margins represented by the tariffs which Great Britain has imposed against imports from foreign countries, while goods from this country enter free. The preferences are as follows: Commodity Preferential Hate General Tariff Kraft and imitation kraft, machine-glazed paper (other than bleached white poster); grease proof paper; certain glazed paper; all when weighing from 7 to 90 lbs. to the ream of 480 sheets of double crown 30" x 20" 25 p.c. ad val. 20 p.c. ad val. 15 p.c. ad val. 20 p.c. ad val. 10 p.c. ad val. 20 p.c. ad val. 20 p.c. ad val. 20 p.c. ad val. Paper and board (other than newsprint) weighing up to 90 lbs. per ream of 480 sheets double crown, 30" x 20" Foregoing, when of heavier class Free Articles of which paper or board comprises 50 p.c. or more of the value (not including printed books, newspapers or music) Aluminum bars Free Aluminum manufactures Brass manufactures Copper manufactures Free [Mr. Bennett.1 Imperial Conference-Trade Agreements Commodity Preferential Rate General Tariff Free 20 p.c. ad val. Free 20 p.c. ad val. Free 20 p.c. ad val. Free 20 p.c. ad val. Free 20 p.c. ad val. Free 20 p.c. ad val. Forks, shovels, spades, scythes, sickles, and farm implements and Free IS p.c. ad val. Free 20 p.c. ad val. Reapers, binders, threshers, ploughs, planters, seeders, farm trac- Free 15 p.c. ad val.Other machinery and parts except ball bearings and roller bearings Free Free 20 p.c. ad val. 20 p.c. ad val.Free 20 p.c. ad val.and 2s. gross 20 p.c. ad val.Free 20 p.c. ad val.Insulated wires and cables, telegraph, telephone, and wireless Free 20 p.c. ad val.20 p.c. ad val.20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free Is. per lb.Free (key industry Duty) 33| p.c. ad val.Free (key industry Duty) 331 P.c. ad val.Free (key industry Duty) 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.Free 20 p.c. ad val.*22 2/9 p.c. ad val. *33} p.c. ad val.*22 2/9 p.c. ad val. *33} p.c. ad val.Free 20 p.c. ad val.Free f50 p.c. ad val.Free t50 p.c. ad val. Leather, Furs, Rubber, Textiles Leather dressed, other than patent, varnished, etc Patent leather Saddlery and harness Trunks, bags, wallets Boots and shoes of leather Gloves of leather Machinery belting (including conveyor and elevator bands).... Furs and otheT skins (dressed) Goods made wholly or partly of fur-skin including any skin with fur, hair, or wool attached Rubber tires and tubes for motor cars Rubber boots, shoes, heels and soles Rubber hose Rubber balls (toys) Rubber belting Rubber gloves and clothing Rubber rods and sheets Rubber mats and matting Hosiery and underwear Gloves Corsets and brassieres Free Free Free Free Free Free Free Free Free J22 2/9 p.c. ad val. Free Free Free Free Free Free Free See following items on clothing Ditto Ditto 15 p.c. ad val. 10 p.c. ad val. 20 p.c. ad val. 25 p.c. ad val. 20 p.c. ad val. 30 p.c. ad val. 15 p.c. ad val. 15 p.c. ad val. 30 p.c. ad val. J33$ p.c. ad val. 20 p.c. ad val. 10 p.c. ad val. 25 p.c. ad val. 15 p.c. ad val. 20 p.c. ad val. 10 p.c. ad val. 20 p.c. ad val. See following items on clothing Ditto Ditto *McKenna duties. tKey industry duty. ^Imposed to complete McKenna Duties. 118 COMMONS Imperial Conference-Trade Agreements Leather, Furs, Rubber, Textiles-Cone. Commodity Preferential Rate General TariffClothing containing i.i value more than 20 p.c. of silk or both silk and artificial silk* Five-sixths of general tariff Five-sixths of general tariff One-half general ad val. rate or, if higher, five-sixths of specific rate. 43$ p.c. or if higher 12s. lb. 20 p.c. ad val. or if higher 4s. per lb. 20 p.c. ad val. or if higher 9d. per lb. 20 p.c. ad val. 20 p.c ad val. 20 p.c. ad val. 20 p.c. ad val. 15 p.c. ad val. 15 p.c. ad val. 20 p.c. ad val.Clothing containing in value 5 p.c.-20 p.c. of silk or both silk and Clothing containing in value not more than 5 p.c. of silk or both Blankets, shawls, coverlets and travelling rugs Binder twine Other cordage and rope of fibre Free Chemicals 10 p.c. ad val. t33-3 p.c. (pure) 10 p.c. (other) t33-3 p.c. (pure) 10 p.c. (other) *33-3 p.c. ad val. 10 p.c. ad val. 33-3 p.c. ad val. 33-3 p.c. ad val. 20 p.c. ad val. 20 p.c. ad val. 10 p.c.lad val. 20 p.c. ad val. 20 p.c. ad val. 10 p.c. ad val. 20 p.c. ad val. Cobalt oxide Talc Citric acid Phosphorus Free Miscellaneous Goods Musical instruments Cinematograph films, on basis of a width of one and three-eights inches- Blanks Positives Negatives Toilet soaps Other soaps including abrasive soaps Tooth paste and powder Medicinal preparations Alcoholic spirits (tested) Athletic goods Brushes and brooms of all kinds Candles Fountain pens Toys and games Plaster of Paris J22-2 p.c. ad val. J2s. 9d. ft. J2s. 3d. ft. J3J d. ft. Free Free Free ** Free 72s. lOd. 75s. 8d. (proof gallon Old tariff) Free Free Free Free Free Free 133-3 p.c. ad val. tls. 3d. ft. {Id. ft. J5d. ft. 30 p.c. ad val. 20 p.c. ad val. 30 p.c. ad val. ''*10 p.c. ad val. 75s. 4d. 78s. 5d. (proof gallon Old tariff) 25 p.c. ad val. 20 p.c. ad val. 20 p.c. ad val. 20 p.c. ad val. 25 p.c. ad val. 10 p.c. ad val. Other Goods Note.-Nearly all other goods with the exception of a limited list admitted free from all countries are 10 p.c. to 33| p.e. ad valorem in the general tariff column and exempt from duty in the preferential column. *If containing artificial silk (but not silk) the alternative specific rates of the general tariff are 5s., Is. 8d., and 4d. respectively. f Key Industry Duty. JMcKenna duties. "Tariff status may be affected by certain dutiable ingredients.



Imperial Conference-Trade Agreements These preferences have already had a stimulating effect, particularly noticeable in the case of cereal foods, wooden ware, paper boards of various kinds, wrapping paper, wall boards rubber footwear, rubber heels and soles, socks and stockings, patent leather, toilet preparations, soaps, photographic films, office furniture, hardware, brass valves, radio parts, typewriters, agricultural implements and machines, electrical household appliances, and a variety of manufactured specialities, heretofore mainly supplied from foreign countries. In other words, the direct effect already upon the trade of this country has been to increase very largely the volume of our exports in the commodities I have indicated into the markets of Great Britain. Figures of Canadian exports to the United Kingdom in July and August of this year, show considerable increases over the figures for the same months in the previous year in nearly all branches of trade. Iron products-The value of Canadian exports to the United Kingdom in the first five months of the present fiscal year were $2,481,968 compared with $1,570,244 in the same period in 1931, an increase of 58 per cent. Further examination of trade returns reveals striking increases in certain items. Exports to the United Kingdom from Canada of typewriters increased from $11,259 in five months, April to August 1931, to $400,468 in the same period of this year. Similar exports to the United Kingdom of paper beards, n.o.p. rose from $182,429 to $324,816. Medicinal preparations from $65,663 to $237,855. All electrical appliances from $88,433 to $195,968. Socks and stockings from $18,964 to $73,259. Although the total imports of the United Kingdom during the first six months of this year decreased by £58,000,000, as compared with the same period in 1931, the imports from British empire countries show a net increase of nearly £4,000,000. While Canada's contribution rose from £13,200,000 to £17,300,000, the imports from the United States dropped from £51.500,000 to £43,250,000. Taking a few items at random: Imports of Canadian wrapping paper into the United Kingdom increased from 11,007 cwt. in the first months of 1931 to 31,385 cwt. in the same period of this year. Imports of Canadian patent leather increased from 2,884 cwt. to 3,580 cwt., while those from the United States in the same periods decreased from 7,972 to 3,603 cwt. These figures should be all the more impressive when we take into account the invariable practice of countries to forestall tariff increases by importing heavily prior to the imposition of the new rates. It is certain that when complete trade figures for the present year are available, they will reveal a still more substantial diversion of the United Kingdom trade from foreign to empire countries. The house will not fail to observe that Canada, more than any other part of the empire, will benefit by the preference secured in respect to manufactured goods. Canada is the only part of the British Empire with factories equipped to manufacture for export to the United Kingdom many of the manufactured articles heretofore supplied to that market by foreign countries. The possibilities of increased activities in Canadian factories and transportation routes with corresponding decrease in unemployment, as a result of these preferences, is unlimited. We should not fail to note the additional advantage of transferring to Canada the industries formerly carried on in these other countries which now have the advantage of United Kingdom trade. Before I leave the subject of manufactured goods, I would also invite the house to consider that by article 8 of the United Kingdom agreement, Canada is assured of the benefit of the over-growing preferences which are being adopted in the colonial empire. I do not think I shall take time to do more than direct attention to the preferences. I shall not read them, although they might be well worth reading. Perhaps at this point I may read the article hurriedly, so that it may be incorporated in Hansard as part of my remarks: Article 8. His Majesty's government in thu United Kingdom will invite the governments of the non-self-governing colonies and protectorates to accord to Canada any preference which may for the time being be accorded to any other part of the British Empire, provided that this clause shall not extend to any preferences accorded by Northern Rhodesia to the Union of South Africa, Southern Rhodesia and the territories of the South African High Commission by virtue of the Customs Agreement of 1930; and further will invite the governments of the colonies and protectorates shown in schedule D to accord to Canada new or additional preferences on the commodities and at the rates shown therein. It will readily be observed that not only does this dominion benefit in the markets of the United Kingdom, but in the vast colonial empire, with its possibilities which no man can foresee, on terms similar to those of the United Kingdom itself. This article, it will be noted, also stipulates that the United Kingdom will seek to enlarge the range of preferences in the colonies on a list of 120 COMMONS Imperial Conference-Trade Agreements articles of special importance to Canada, such as rubber footwear, motor cars and parts, socks and stockings, electrical appliances and apparatus, hardware, furniture, lumber, and some food products. This clause in the trade agreement should be of increasing value to our manufacturers since it assures to them the benefit of empire preferences throughout the colonial empire. When consideration is given to the possibilities for development inherent to the natural resources of the colonies and protectorates it can be realized that Canadian manufacturers are granted tariff benefits in an expanding market of great possibilities. For many of our natural products, we have 4 secured preferences which, with industry on our part and capable marketing, will undoubtedly give us a substantial place in the markets of the United Kingdom. These preferences practically cover the entire range of our natural products. Had it been practical to do so, this government would naturally have desired to have even wider preferences extended to our whole list. It would be unprofitable to expect, however, that preferences can be made effective without making trade advantages reciprocal. Those who would seek to obtain advantages in empire markets for our products, without giving corresponding advantages to empire countries in ours, are seeking to imperil the effective operation of the whole empire tariff plan and to destroy utterly the basis of mutual advantage, upon which alone these agreements can be made to operate most effectively. For we must commonly agree that there can be no continued sale without purchase; that if we exipect to market our goods in the United Kingdom, we must expect to purchase goods from the United Kingdom. I have said before that by a scheme of mutually advantageous agreements, based on the principle of tariff preferences, new and greater channels of trade between the parties to the agreements will be established, and new and greater channels of trade will, as a result of these agreements, be established between the United Kingdom and Canada. It is unprofitable at the present time to tally u.p the potential sales against the potential purchases. The practical object then is to ensure both increased sales and purchases. We in turn have secured great advantages in the markets of the United Kingdom. How great these advantages are will be more apparent when our producers of natural products shall have organized for the great market which is awaiting them. And it shall be the privilege and duty of this government to assist by all proper means our producers so that without delay they may equip themselves to take advantage of this unprecedented opportunity. Nor are the advantages we have secured confined to the United Kingdom agreement. In respect to certain natural commodities, the increased export of which perhaps means more to some of the other dominions than it does to Canada, preferences have been given those other dominions which are not specifically contained within the terms of our own agreement. But with those other dominions we equally enjoy the advantages of them. I shall enumerate the preferences secured for our natural products, with such brief comments upon the value and character of them as at this juncture may seem appropriate. Timber Products: In respect to timber products the present tariff of the United Kingdom affords to Canada the following preferences: Commodity Preferential Rate General Tariff Planks, deals, boards, scantlings, battens, strips, laths, tongued and grooved flooring, planed or dressed wood, sleepers, staves, plywood, veneers Free Builders' woodwork, including window frames, doors, gates and parts; shingles Free Tops, bottoms and sides of boxes, in appropriate numbers to make complete boxes Free Unspecified manufactures of wood and timber Free **20 p.c. ad val.Lumber for shipbuilding or repairs, consigned to shipyards; pit props, logs of pine, spruce or aspen up to 50 inches long and 12 inches diameter at top Free Free "Schedule C: Timber now dutiable imported in substantial quantities from Canada not to be reduced below 10 p.c. ad valorem.



Imperial Conference-Trade Agreements By article 1 of the agreement, we are ensured continued free entry, and by article 3 a minimum margin of 10 per cent is guaranteed in respect of timber of all kinds imported into the United Kingdom in substantial quantities from Canada in so far as it is now dutiable. In other words two ships, one from a foreign country and the other from Canada, enter a harbour laden with timber. Before the foreign ship may tie up to the quay side and discharge her cargo of timber, a minimum of S10,000 must be paid. The Canadian ship may come to the quay side and unload her cargo without any such payment. The United Kingdom imports annually about 3,800 million board feet of sawn lumber. Of this amount Canada could supply 3,000 million feet of softwood and about 170 million feet of hardwood. The industry, therefore, may well look forward to this agreement and subsequent developments from it to open this market for a greatly increased proportion of its products. In dealing with lumber it is worth mentioning that the value of all ad valorem preferences in the United Kingdom is enhanced in consequence of the United Kingdom duty being levied on the cost insurance freight valuation of imports. Under the Import Duties Act, our advantage over the United States in competing in the United Kingdom market is already evident by the exports of the first half of this year. Consider these comparative figures: United Kingdom imports of sawn softwood lumber for first six months, 1931 and 1932: Quantity Value 1M ft. B.M. f 1931 1932 1931 1932 Canada 29.469 49,591 218.625 372,497 United States 171,836 46,586 642,104 492,140 Per cent Canadian increase 68 United States decrease 73 That, I believe, is the direct result of the application of these preferences. On the Pacific coast, for the first time in many years, British Columbia exports of lumber to the United Kingdom have exceeded those of Washington and Oregon combined: 1M ft. B.M. First six months-[DOT] 1931 1932British Columbia 37,251 49,805 Washington and Oregon.. 55,435 25,064 As article 21 of the agreement, which becomes important, controls imfair competition, it is not unreasonable to expect that with the operation of that section the prices of commodities coming from Baltic countries again will be put upon the basis of supply and demand. That article reads as follows: This agreement is made on the express condition that, if either government is satisfied that any preferences hereby granted in respect of any particular class of commodities are likely to be frustrated in whole or in part by reason of the creation or maintenance directly or indirectly of prices for such class of commodities through state action on the part of any foreign country, that government hereby declares that it will exercise the powers which it now has or will hereafter take to prohibit the entry from such foreign country directly or indirectly of such commodities into its country for such time as may be necessary to make effective and to maintain the preferences hereby granted by it. Under normal conditions Canada exports annually about 1,S00 million board feet of lumber valued at 850,000,000, of which 1,445 million feet, valued at $39,000,000 has been going to the United States and 186 million feet valued at 86,474,000 to the United Kingdom. The recent United States import tax of 83 per 1,000 board feet has practically closed that market to Canada. New markets are essential. This applies especially to lower and common grades, which comprise from 60 per cent to 70 per cent of the lumber sawn. The orient provides a market for some of the lower grades of British Columbia lumber, but for the eastern provinces and a large part of the British Columbia output, the United Kingdom presents the only market capable of absorbing a sufficient amount to enable the mills to continue the manufacture of the higher grades for which there is a demand. I think the house will agree that this provision will ensure a stability of market to Canadian producers of lumber which certainly they have not enjoyed hitherto. Fish products: As a result of the conference agreements, Canada will now enjoy the following preferential rates in respect of fish products: 122 COMMONS Imperial Conference-Trade Agreements Commodity Preferential Rate General Tariff [DOT]10 p.c. ad val. *10 p.c. ad val. *10 p.c. ad val. 10 p.c. ad val. lid. per lb. 30 p.c. ad val. 10 p.c. ad val. Free 30 p.c. ad val. Is. 4d. gal. Free Free 10 p.c. ad val. Stabilized in schedule C. Under our treaty, free entry with 10 per cent preference is secured to us on fresh sea fish, canned salmon and other canned fish while Newfoundland has been given Is. 4d. per gallon on cod liver oil and lid. per pound on chilled and frozen salmon. The Newfoundland salmon preference, which Canada will also enjoy, will be of distinctive benefit. The salmon preference will prove a distinct stimulation to Canadian trade in this commodity on both coasts of Canada. In 1930, the United Kingdom imported 126,231 cwts. frozen salmon, valued at £761,923. Of this, 34,867 cwts. were from Canada; 29,353 cwts. from Newfoundland; 27,448 cwts. from the United States; 17,144 cwts. from the Irish Free State, and the remainder from Japan and Norway. From these figures it will be seen that one-third of the salmon imports came from non-empire countries. With the preferences I have indicated the enterprise and courage of our people will ensure a substantial part of that market to Canada. On the Pacific coast, the market for frozen salmon product should be increased substantially. It should be remembered that Canada has to market abroad approximately 70 per cent value and 80 per cent tonnage of fish in fresh, frozen, smoked, salted, dried or canned jondition. The United States high tariff makes wider markets elsewhere imperative. Already the 10 per cent preference is proving advantageous in respect of all canned lobster in competition with foreign canned crab, which I shall show by the following figures: Exports-Canada to the United Kingdom This year to 1930 end of July cwts. cwts. Canned Lobster 17,648 19,375 We have a large production of canned sardines on the Atlantic coast produced from young herring, although technically, I believe, in consequence of a decision of the court of appeal in England, they are not called sardines. These are of high quality, but in the past a market has not been found for them in the United Kingdom. We find, however, that in this year up to the end of July, in consequence of the preference, 1,045 cwts. were already exported. It seems probable that the 10 per cent preference will enable us to take a substantial portion of the United Kingdom business in this canned fish in which the United Kingdom for the year 1930 imported a total of 188,000 cwts.


MINERALS OR MINERAL PRODUCTS REQUIRED BY THE UNITED KINGDOM


Nearly every manufacturing industry uses minerals or products made from minerals at some stage in the factory process. In the United Kingdom, with its enormous manufacturing establishments, no less than forty-eight mineral products have to be imported from outside sources. Canada, rich in mineral resources, has a surplus available for export of at least twenty-eight products. The United Kingdom is a potential market for all mineral products of which we have a surplus for export, excepting lignite coal. The most important metal products we have for export are copper, lead, zinc, nickel, cobalt and certain minor metals, especially bismuth and cadmium. Our proposed trade agreement with the United Kingdom provides special preferences for three principle metals-copper, lead and tine.



Imperial Conference-Trade Agreements Following are the preferences on a few of the leading minerals in which Canada is interested:- Commodity Preferential Rate General Tariff Copper, unwrought, refined, or not, in ingots, bars, blocks, slabs, cakes and rods *2d. per lb. "10 p.c. ad val. 15 p.c. ad val. "10 p.c. ad val. "10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. Asbestos Zinc Free Free Lead Cobalt alloys Bismuth Free The Import Duties Act at the present time makes free to all countries metallic ores, concentrates, and residues; scrap metals; gold and silver bullion and coin; platinum in grain, ingot, bar or powder; iron pyrites. 'Stabilized in Schedule B. "Stabilized in Schedule C. Capper: Our total copper production in 1930 reached its maximum of 151,739 tons; in 1931, 146,577 tons, This year's production is less. Until recent years no refining was done in Canada. In 1930, 36,432 tons refined copper were produced here. In 1931 this increased to 95,342 tons. There is a present installed refining capacity of 185,000 tons, and this could readily be expanded should circumstances warrant. Until recently our surplus production of copper was sold almost entirely in the United States, the only market available to copper mines of British Columbia and eastern Quebec. The recent United States tariff of 4 cents per pound closed this market. Our preference of 2d. per pound assures Canadian producers access to the third largest market in the world for unwrought products. Lead: Allowing for home production capacity, the United Kingdom offers a market to the empire fcr nearly 290,000 short tons of piglead. The average British imports for the 5 year period ending 1930, were 317,650 short tons of piglead annually, in addition to 13,730 tons of lead in manufactured products imported. In recent years about one-third of the imports of lead into the United Kingdom were of foreign origin, nearly all from the United States; about two-thirds was of empire origin, Australia contributing at least half of this. Canada contributing about 49,900 short tons, or 15 per cent of the total. Lead produced from Canadian ores, refined at home or abroad totals 166,447 tons in 1930; 133,670 tons in 1931. Nearly all Canadian production is refined in Canada. Canada's installed plants for producing lead have a capacity of about 170,000 tons. The Canadian home consumption of lead, including that required for brasses and print pigments, is normally 45,000 tons. If plants operated to capacity, there would be a surplus for export of about 125,000 tons. In 1927 experts were 119,705 tons; 1931, 108,213 tons. Canada's lead production hitherto sold in all the principal markets of the world except the United States, which imposes a tariff of 2-125 cents per pound. I am sure, Mr. Speaker, that the house must realize the value of a stabilized market for Canadian lead and copper where the preference is at the rate I have indicated. Zinc. The total production of zinc in Canada is gradually increasing-1930 reaching a maximum of 133,S22 tons; 1931 declining to 118,623 tons, and this year less still, owing to market conditions. The installed capacity of our refineries has been gradually increased as market conditions warranted, and we now have two plants capable of producing 169,400 tons of refined zinc annually. Canada's home requirements of zinc metal, under normal conditions, are about 24,000 tons per annum, including metal used in brasses, 124 COMMONS Imperial Conference-Trade Agreements bronzes and zinc white pigments. If our normal requirements were supplied from Canadian sources there would still be a surplus of over 145,000 tons for export, if the refining plants operated to capacity. The average imports of zinc into the United Kingdom in primary forms during the five year period ending 1930 was 157,500 tons. In addition there were imports of 25,500 tons of manufactured zinc products. About 56 per cent of these imports came from nonBritish countries, chiefly Germany, Belgium and the United States, and the balance from British countries; Canada supplying two-thirds of this, and Australia slightly more than, and Rhodesia less than, half the remaining. The retention of the British preference of 10 per cent will assure empire countries of a market capable of absorbing a very large proportion of the surplus production. We also have certain other minerals such as mica, talc, graphite, and feldqpar, in which a trade is possible, provided that our producers can meet the market conditions of the United Kingdom. Electro-furnace products made from minerals such as ferro-silicon, ferromanganese and calcium carbide are in demand in Great Britain although only a small trade has as yet been developed. Other mineral products that may become of importance in our export trade to the United Kingdom are calcined and dead burned magnesite granites and marbles. I mention these because they indicate that, with respect to our great undeveloped mineral fields, we have been afforded by this agreement an opportunity for development and expansion which is limited only by the capacity of our people to exploit the great natural resources which Providence has given us. I turn now to- Agricultural Products. And ask the house to take note of these figures. (a) Bacon and hams. Cwts Lbs. Value United Kingdom imports, 1931 Canada's exports to United Kingdom, 1931.. .. Canada's total exports, 1931 Canada's production, 1931 Canada's maximum production Canada's maximum exports to United Kingdom, 11,968,978 or Head Est. 6,190,695 @ $12.50 1,340,525,536 10,961,700 12,775,200 240,729,586 £36,353.309 00 $ 1,493,363 00 $ 2,035,382 00



Article 6 of the agreement is as follows: His Majesty's government in the United Kingdom declare that it is their intention to arrange as soon as possible after receiving the report of the commission now sitting on the reorganization of the pig industry in the United Kingdom, for the quantitative regulation of the supplies of bacon and hams coming onto the United Kingdom market and undertake that in any legislation which they may submit to parliament for regulating the supplies of bacon and hams from all sources into the United Kingdom, provision will be made for free entry of Canadian bacon and hams of good quality up to a maximum of 2,500,000 cwt. per annum. Under favourable marketing conditions and with a price maintained continuously above the cost of production, Canada has potential possibilities for the production of 8,500,000 hogs by 1937, permitting of an export volume of 300,000,000 pounds of bacon and 10,000,000 hogs by 1942, permitting of an export volume of 500,000,000 pounds of bacon and hams. One of the matters that have constantly engaged the attention of government in this country has been the providing of a market for bacon and ham. In Great Britain the domestic producer has had his difficulties against foreign competition, and now in this agreement it is provided that whatever benefits are obtained by the domestic producer in Great Britain shall also be part and parcel of the rights of the Canadian producer; and in the quota arrangement under consideration and soon I believe to be made-the commission has been sitting now for several months and the report, I understand, is practically complete-we shall have a quota of 2.500.000 cwt. per annum. I wonder if the farmers of this country have a proper appreciation of just what the value of that is. The declaration in article 6 and the undertaking that in any legislation submitted to the United Kingdom parliament for regulating the supplies of bacon and ham from all sources into the United Kingdom, provision will be made for free entry of Canadian bacon and hams of good quality up to a maximum of 2.500.000 cwts. (280,000,000 lbs.) per annum, is of vital importance to the Canadian swine industry. . The benefits under this article of the treaty will become manifest when:- (1) Confidence is established among farmers through government policy to secure the necessary increase in production from year to Imperial Conference-Trade Agreements year to make possible the objective in volume of product for export to the United Kingdom market; (2) Organization of ithe packing industry in Canada is arranged so that each respective packing plant will assume responsibility for bacon exports in relation to its respective share of the kill from week to week and month to month. Need I point out that here we have a stability for at least five years. The difficulty heretofore has been that the producer of bacon and ham has had no certainty and business has been spasmodic with the results not being at all satisfactory. Here we have a value in stability, a value in the certainty of a market for a period of years; and I believe that there will be opened up a useful and profitable activity to Canadian farmers which has not heretofore been presented to them. Coming now to cattle I shall first read some statistics of interest: British imports of live cattle, 1931 (cal. year) Canada's exports to United Kingdom, 1931 Canada's total exports, 1931- Cattle Dressed beef in terms of cattle Calves' Canada's total exports under more normal conditions- 1927 Cattle Beef in terms of cattle Calves Maximum annual exports to United Kingdom since the embargo was partially removed in 1923-* 1925 Cattle Maximum exports to United Kingdom since 1874- 1906 Cattle Total Canadian marketings (through stock yards direct to packers and direct on export, less feeder cattle returned to county points from stock yards) - 1931 Cattle - Calves 1927 Cattle Calves No. 766,523 27,140 Value £12,615,945 $ 2,218,383 40,217 6,261 16,069 $ 3,348,748 435,186 268,256 216,209 94,570 79,065 $12,496,582 7,116.382 1,501,379 110,808 $11,796,383 163,994 $11,045,463 569,283 338,509 854.961 433.244 $22,771,320 3.406,581 847.022.555 6.931,904 I give these figures because it becomes important to understand just what is the potential market with respect to even live cattle since our exports to the United States have been practically prohibited under the Ford-ney-McCumber tariff and lately the Hawley-Smoot tariff. Article 5 of the agreement is as follows: His Majesty's government in the United Kingdom will invite parliament to pass the legislation necessary to modify the conditions at present governing the importation into the United Kingdom of live cattle from Canada on the lines already agreed upon in principle between themselves and His Majesty's government in Canada. In 1906 Canada exported to the United Kingdom 163,994 cattle, being her maximum since 1874. The restrictions, removal of which is provided by the agreement, have materially impeded the forwarding of Canadian cattle to Great Britain and have unduly increased costs in developing this trade. At the present time the only Canadian cattle eligible for licensing to interior markets and farms in Great Britain are store cattle-defined in the Importation of Animals Act of 1922 as "castrated male or spayed female bovine animal intended for further feeding purposes and not for immediate slaughter." All male and female cattle, as well as cattle shipped as "fats" may be landed only for immediate slaughter. To insure against cattle in finished condition being shipped as stores, the British port veterinarians are authorized to classify as near fats any cattle which in their judgment could not properly be termed "stores." Such cattle, if licensed to farms or feed lots, must be retained for at least twenty-eight days before being returned to market. The purpose of this has been to prevent, as far as possible, competition of Canadian finished cattle with home finished cattle on interior markets and it has had that effect. In the agreement which has been arrived at, the parliament of the United Kingdom will be invited to amend the Importation of Animals Act of 1922 so as to provide for the admission to interior markets and other premises of all Canadian cattle shipped to Great Britain irrespective of conditions and sex, subject to regulations similar to those which at present apply to the movement to interior markets and other premises in the United Kingdom of Irish cattle of the same classes. The United Kingdom would, however, retain the right to require the slaughter at the port of entry of any male or female 126 COMMONS Imperial Conference-Trade Agreements animal considered by them to be below the desired standard for breeding purposes. The agreement also provides for amendment of the Importation of Animals Act of 1922 to eliminate the requirement that a federal veterinarian accompany each shipment of store cattle, and to reduce to one clear day the present three day isolation period in Canada prior to shipment. In addition, the agreement provides for the amendment of the Canadian cattle (marking) order to do away with the present requirement that store cattle be branded on the cheek. While Canada's surplus in cattle production is at present at the lowest level in twenty years, an export outlet is required, under normal conditions, for upwards of 200,000 cattle. The Hawley-Smoot Tariff of 1930 practically closed the United States market. It is therefore of utmost importance to Canadian producers to have unrestricted access to the only alternative export outlet. When the new agreement becomes effective, Canadian cattle will be in a position to compete on their merits in the interior markets of Great Britain, and will be relieved of some of the overhead costs which have in the past made this trade a precarious one. While this clause is of vital importance to Canada as a whole its benefits will be more quickly manifested in the stock growing areas in the interior of British Columbia, in southern Alberta and in southwestern Saskatchewan. The mixed farming areas of the prairie provinces, and the cattle finishing counties in western Ontario are the parts of the dominion in which an improved, outlet for beef cattle is of the most importance. I shall next deal with (c) dairy products, giving figures which present similar possibilities of expanding markets: (1) Concentrated Milks (Condensed sweetened, evaporated unsweetened, dried whole milk and condensed coffee) Cwts. Lbs. Value United Kingdom imports, 1931



Canada's exports to United Kingdom, 1931.. Canada's total exports, 1931 Canada's production, 1931 Canada's maximum production, year 1920.. .. Canada's maximum exports, year ended March 31, 1920 Canada's potential production 2,798,840 313,470,080 f 4,336,835or (112 lbs.) 8,153,900 $ 623,51820,204,200 $ 2,098,02563,037,221 $ 5,512,05192,601,754 $16,355,834Lbs. Value54,247,536 $ 8,517,7715 years hence 200,000,000 pounds. As the capacity of existing plants is about 200,000,000 pounds, any increase beyond this figure must be through new establishments, which would be provided to take care of the demand. Under the United Kingdom tariff as modified by the conference agreements Canada, on sweetened condensed milk, will enjoy free entry (except for sugar duty) for three years certain, maintaining the preferential margin during the currency of the agreement as against as. per cwt., in addition to the preference in respect of sugar content. As to condensed milk, whole, not sweetened, under the Australian-New Zealand and South African agreements we have the benefit of 6s. per cwt. (112 lbs.) As to milk powder and other preserved milks not sweetened, under the New Zealand agreement we will enjoy a preferential margin of 6s. per cwt. One non-Canadian manufacturer who has not a branch factory in Canada has contracted with a Canadian factory for the production in Canada of his requirements for the United Kingdom trade. The producer receives a higher price for milk to produce concentrated milks than for milk used in the manufacture of butter or cheese, but the volume of the milk required for the manufacture of concentrated milks represents a smaller percentage of the selling value of the product than is the case with other dairy products. An expansion in the output of concentrated milks means a greater increase in employment not only in manufacturing the product itself, but also in producing packages, as cans and cases, labels, etc., than is the case with an expansion in the output of cheese and butter.



Imperial Conference-Trade Agreements agreement will be especially beneficial to the province of Ontario. This feature of the (d) Creamery Butter. United Kingdom imports, 1931 Canada's exports to United Kingdom, 1931.. .. Canada's total exports, 1931 Canada's production, 1931, which was maximum production year as well Canada's maximum exports, year ended June 30, 1903 Canada's potential production- 5 years hence 10 years hence Cwts. Lbs. Value8,071,167 (112 lbs.) 903,970,704 £46,357,9978,656,900 $ 1,815,80110,680,500 $ 2,329,853225,802,635 $50,168,73834,128,976 $ 6,954,618275.000. 000 325.000. 000 Canada is guaranteed free entry for three years certain as against 15s. per cwt. (112 lbs.) general tariff and a preference margin of 15s. per cwt. during the life of the agreement. The price level has probably been higher in the past few months than would have been the case if the Import Duties Act had not been passed, but the effect is not very perceptible. This preference should greatly assist us to sell in the British market. It is reported that butter production in Denmark is now about 10 per cent less than that of a year ago. United Kingdom imports, 1931 Canada's exports to United Kingdom, 1931.. .. Canada's total exports, 1931 Canada's production, 1931 Canada's maximum production, 1903 Canada's maximum exports, year ended June 30, 1904 Canada's potential production- 5 years hence 10 years hence * Approximate. Exact figures not available. This is probably largely due to the effect of the Import Duties Act. The proposed treaty should also result in a gradual increase in the price of creamery butter, in which case Canadian agriculture will benefit, not only from the increase in price but also from the increase in production, which will result from an increase in price. The prairie provinces will enjoy a most needed benefit as a result of this provision as will Canadian agriculture as a whole. (e) Cheese. Cwts. Lbs. Value2.884.757 323,092.784 £ 9,059,599(112 lbs.) 80.565,500 $ 9,959,13184,788,400 $10,594,917113,704.109 $12,796,610250,000,900* $26,975,000233,980,716 175.000. 000 225.000. 000 $24,184,566 The decrease in exports between 1903 and 1920 is due to increased consumption of milk products in Canada, such as butter, fluid milk and ice cream, and from 1920 to 1930 more to diverting fluid milk and cream to the United States. Canada will now enjoy in the British market free entry for three years certain, with preference margin of 15 per cent which will be maintained during the currency of the agreement. Since the empire countries supplied 86-89 per cent of the cheese imported into the United Kingdom in 1931 and the entire quantity of the type of cheese produced in Canada the direct effect of this preference is not so important. It is however, important to keep in mind that the various milk product industries act interdependently in maintaining a stable price for these commodities. I shall next deal with (f) Tobacco, again beginning with Canadian production and export figures: Lbs. United Kingdom imports, 1930 236,934,505 (unmfd.)Canada's exports to United Kingdom, 1930 3,976,017 (unmfd.)Canada's total exports, 1930 5,365,869 (unmfd.) Canada's production- 1930 36,717,000 1931 51,300,000 Canada's maximum production (1931) 51,300,000 Canada's maximum exports- (1929) 7,244,045 (1932 7 mo.) 8,941,215 128 COMMONS Imperial Conference-Trade Agreements Article 7 of the agreement is as follows: His Majesty's government in the United Kingdom will invite parliament to pass legislation which will secure for a period of ten years from the date hereof to tobacco, consigned from any part of the British Empire and grown, produced or manufactured in Canada, the existing margin of preference over foreign tobacco, so long, however, as the duty on foreign unmanufactured tobacco does not fall below 2/OJd. per pound, in which event the margin of preference shall be equal to the full duty. The following are the existing preference margins secured: Tobacco, unmanufactured, containing 10 pounds or more moisture in every 100 pounds weight: Unstripped Stripped [DOT] [DOT][DOT] ;[DOT] containing less than 10 pounds moisture in every 100 pounds weight: TJnstripped Stripped ' Of the figures I have just quoted these will bear emphasis. In 1930, the United Kingdom imported 236,934,505 pounds unmanufactured tobacco, of which Canada supplied 3,976.017 pounds, while Canada's total exports for that year were 5,365,869 pounds. In 1929, Canadian exports were 7,244,045 pounds while for the first seven months of 1932 they were 8,941,215 pounds. The maximum Canadian production was in 1931, being 51,300,000 pounds. Canada's potential production of Bright flue-cured tobacco for five years may be conservatively estimated at 50 per cent increase, and within ten years at 100 per cent increase. The extension of the present margin of preference for another ten years will enable Canadian producers and exporters to plan production and business relationships for at British preference General per lb. per lb. 7/5* 9/6 7/51 9/6J 8/21 10/6 8/31 10/6J least this period. This will particularly affect the large producers of Bright flue-cured tobacco in the Norfolk district, who have been taking such an active part in introducing this type of tobacco on the English market. It should also have a pronounced stabilizing effect on Canadian tobacco production and marketing. Furthermore, English manufacturers after ten years will be familiar with the quality of Canadian tobacco and its use there will be established. Sections of Ontario and Quebec will reap substantial benefits from the tobacco tariff provisions. Next coming to (g) Fruit, the statistics of interest are: Fresh Apples United Kingdom imports, fiscal year, 1931-32.. Canada's total exports to United Kingdom, 1931-32 Canada's total exports, 1931-32 Canada's production, 1931 Canada's maximum production, 1921 Cwts. 7,816,000 (112 lbs.) 1,919.514 (100 lbs.) 2,261,015 (100 lbs.) 5,120,620 (100 lbs.) 5,652,020 (100 lbs.) Canada's maximum exports, 1929-30 Canada's potential production- Tn 5 years, average In 10 years, average 2,536,009 (100 lbs.) 5,824,192 (100 lbs.) 6,594,140 (100 lbs.) Value $5,577,339 00 6,537,584 00 8,632,014 00 Shipping point value not available $8,111,943 00 Under the treaty, 4s. 6d. per cwt., on the oasis of Canadian free entry, is to be substituted for the existing 10 per cent ad valorem rate. In other words, apples, and pears, going into the United Kingdom from Canada will enter free, whereas if sent from a foreign country they pay 4s. 6d. per hundred pounds. The proposed tariff on fruit of non-empire origin is expected materially to reduce the quantity of fruit imported into the United Kingdom from the United States, which is Canada's chief competitor, thereby assuring a more stable and enlarged market, preventing the dumping of large quantities of inferior fruit, and encouraging greater production and care of orchards in Canada. This preference Nova Scotia, Ontario and British Columbia, but particularly Nova Scotia, will most beneficially enjoy. Imperial Conjerence-Trade Agreements Apples, canned: Canada is secured free entry except for any sugar duty as against 3s. 6d. per cwt (112 pounds) in addition to duty in respect of sugar content. Taking into account a rate, not guaranteed by treaty but at present in force there is a preference of 25 per cent ad valorem on fruit preserved without sugar by chemical process or artificial heat. There has been a slight increase in the export of canned apples to Great Britain since March 1, 1932, but inasmuch as Canadian apple packers were not aware of the possibilities under the United Kingdom Imports Duties Act last fall, they did not pack stock for export. Many of the packers, are, however, preparing to take advantage of this market now. The provinces of British Columbia, Ontario and Nova Scotia are in a preferred position to benefit from this concession. Apples Dried: I have not available the statistics showing imports of dried apples into the United Kingdom, but Canada, in the year 1931 according to Fruit branch records, exported to the United Kingdom $S,967 worth of this commodity out of her total export of $78,723. Canada's production in the years 1930-1931 amounted to $256,807. What her maximum production is no one can now estimate, but it could be safely stated as 100 per cent increase over that at present. United Kingdom imports, 1930 Canada's exports to United Kingdom, 1931.. Canada's total exports, 1931 Canada's production, 1930-31 Canada's maximum exports, 1929 We have -maintained for this industry free entry as against 10s. 6d. -per cwt, the former general tariff rate being 25 per cent ad valorem or which is approximately equal at present prices to a specific duty of 7s. We should safely look to a considerable increase in our dried apple trade as a result of this -preference. Pears Fresh: The United Kingdom imports of fresh pears in the year 1931 were 991,123 cwts (112 pounds) out of our total export trade of 9,118 cwt (100 pounds) we secured 8,990 cwts. (100 pounds) of the British trade. We have not the figures -to enable me to state these importations in terms of value. Our total production was in 1931, 223,899 cwts. (100 pounds) valued at $464,773. 1920 was our maximum year in which we produced 290,540 cwts. (100 pounds) valued at $611,068. Our potential production based on a five-year average should ibe well over 200,000 cwts. (100 pounds). From this it will -be seen that Canada's pear growing industry is capable of great expansion. Particularly is this true of Nova Scotia, Ontario, and British Columbia. The protection which we have secured on this commodity-free entry as against a general tariff of 4s. 6d. should provide the incentive to produce pears on a much greater scale in order to secure a greater part of the United Kingdom market. Pears Canned: Cwts. Value 501,283 (112 lbs.) 19.053 (100 lbs.) 19.053 (100 lbs.) 107,928 (100 lbs.) 39,550 (100 lbs.)



130.976 00 130.976 00 1,049,904 00 284,812 00 We have secured continued free entry except as to sugar duty as against a 15 per cent ad valorem general tariff plus sugar duty, or taking into account a rate now in force under the Import Duties Act but with continuance not guaranteed 25 per cent when the fruit is preserved without sugar and by chemical or artificial heat. Considerable benefits should United Kingdom imports, 1931 Canada's exports to United Kingdom, 1931-32.. Canada's total exports, 1931-32 accrue to Canada by means of this preference. Already a small increase in shipments of canned pears to Great Britain may be noted since the coming into force of the United Kingdom tariff rates under the Import Duties Act. Fresh Plums: Cwts. Value 513,665 (112 lbs.) 1,528 (100 lbs.) 1,584 (100 lbs.) I have not the figures representing the ada's maximum exports were 4,347 cwts (100 values corresponding to these amounts. Can- lbs.). Cwts. Value Canada's production, 1931 112,310 (100 lbs.) $ 234,930 00Canada's maximum production, 1920 366,918 (100 lbs.) 750,559 00 Under the existing 10 per cent preference, Fresh Plums and Fruit Juices should be, to some extent developed.



130 COMMONS Imperial Conference-Trade Agreements (h) Tomatoes (Canned). United Kingdom imports, 1930 646,675 (112 lbs.)Canada's exports to United Kingdom 1930-31.. 43,052 (100 lbs.)Canada's total exports, calendar year, 1931.. 63,341 (100 lbs.)Canada's production, 1930 1,677,827 (100 lbs.) (which is also its maximum) Value



There has been a very considerable increase in the export of canned tomatoes to Great Britain since March 1, 1932. Our information is that many of the packers are aiming to take advantage of the 10 per cent British preference. (i) Ketchup The market for canned tomatoes in Great Britain will not only provide an outlet for a large part of our annual pack but will help to stabilize the Canadian market. British Columbia, Ontario and Quebec are in a position to take the fullest advantage of this preference. No information available as to importations into the United Kingdom, or Canadian production and exports since statistical records include ketchup with other sauces and condiments. Our production is at least capable, however, of a 50 per cent increase. There has been little evidence of change in the export of ketchup since March 1st, last, exports from this country being made largely by one firm. There is no doubt, however, that that firm has benefited under the British preference. With free entry secured as against this preference of 10 per cent, it is expected that other Canadian firms will seek to develop this market. Canada should now materially extend her sales of ketchup into the United Kingdom in competition with Italy and Spain. While Ontario is the principle manufacturer of ketchup, quantities are also produced in British Columbia and Quebec. (h) a Potatoes. Cwts. Value United Kingdom imports, 1931 16,588,000 (112 lbs.) Canada's exports to United Kingdom, 1931-32.. As a result of the embargo Canada, of course, obtains none of United Kingdom trade but for the years 1931-1932 Canada's total exports were- Cwts. Value Canada's total exports. 1931-32, fiscal year.. .. Canada's production, 1931 Canada's maximum production, 1920 (when its greatest crop was produced) Canada's maximum exports, 1926-27 2,834,171 (100 lbs.) 52,305.000 (100 lbs.) 80,298,840 (100 lbs.)



4,991,448 (100 lbs.) 9,717,425 00 A preference of 10 per cent with our free entry will mean that in some years when production in the United Kingdom is low and our production high, free access to the United Kingdom market will be of especial importance. (i) Eggs in Shell. United Kingdom Imports, 1930 long cwt. 26,560,914 £16,390.735Canada's Exports to United Kingdom, 1930-31 (Fiscal) ..dozen 26,260 $ 9,607Canada's Total Exports, 1930-31 (Fiscal).dozen 186,396 66,122Canada's Farm Production (not including urban), 1930.. ..dozen 278,255,753 74,837,092 Canada's Maximum Production-Farm Production (not including urban), 1931 dozen 286,882,447 49,206,845Canada's Maximum Exports-Fiscal Yearsi«88 dozen 14,170,859 2,122,283i!)02 dozen 11,635,108 1,733,242 By article 3 of the treaty with the United Kingdom, Canada will enjoy free entry for 3 years certain as against the following rates instead of the existing rate of 10 per cent ad valorem, and will throughout the life of the agreement enjoy these preferential margins.



Imperial Conjerence-Trade Agreements Eggs in shell: (i) Not exceeding in weight 14 pounds per great hundred, Is. per great hundred. (ii) Over 14 pounds per great hundred but not exceeding 17 pounds, Is. 6d per great hundred. (iii) Over 17 pounds per great hundred, Is. 9d. per great hundred. It will be noted from the figures I have just placed on Hansard that the United Kingdom is a big importer of eggs, importing in 1930, 26,541,280 long cwt., valued at £16,377,646. Canada in the fiscal year 1930-31 exported to the United Kingdom 26,260 dozen eggs, valued at S9,607, out of a total export of 186,396 dozen, valued at $66,122. Canada's maximum production (this is farm production not including urban) was in 1931- 286,882,447 dozen, valued at $49,206,841. With a favourable price incentive, Canada can double her production in five years, and treble or quadruple it in ten years. Article 8 in the Canada-United Kingdom agreement has special significance to the egg and poultry trade with Bermuda. Bermuda's present British preferential tariff is as follows: Eggs-6d. per dozen, January to May inclusive: and 3d. per dozen, June to December inclusive: while the general tariff is 25 per cent additional to this. Under the agreement a preferential margin of 2d. per dozen is proposed. In the calendar year 1930, Bermuda imported 174,340 dozen eggs,, valued at £14,056 and 12,089 packages of dressed poultry valued at £61,310. Canada can now supply all Bermuda's requirements in eggs, the greater part of the above having been imported from the United States. In the egg and poultry industry the principal effect of the Import Duties Act has been an extension of the market for dressed poultry and frozen eggs. In the former quite a useful trade has been developed since March. The volume, while not large, has been promising and would have been greater if the exchange situation had been more favourable. In frozen eggs, the first export to Great Britain on record took place this spring, between 200,000 and 300,000 lbs. having been shipped to date. It is apparent that even the existing preferences have been sufficient to create interest and stimulate export trade. There is, in addition to the increased preferences, the value of the closer associations made during the conference, particularly along the lines of empire standards and qualitative control, as reported upon favourably by the committee on economic cooperation within the empire. 53719-9J This gives promise of establishing a demand for the superior quality which Canada is in a position to supply. The next item is honey. I was speaking to the High Commissioner for Canada yesterday with respect to this item and I find that we do not enjoy the benefit of the market we should have in Great Britain for Canadian honey because we have not standardized our product. But the opportunities are amazing. In fact, one will find Quebec honey, specially prepared, on sale in many places in the United Kingdom because of the effort that has been made to standardize it. Canada now has, by reason of free entry, secured through the Import Duties Act, a preference of 10 per cent and through the United Kingdom, Australian and New Zealand agreements she will have a preference of 7s. per cwt. In 1930, Canada exported to the United Kingdom £41,662 worth of honey-almost half of Great Britain's total of importations from British countries, and almost a quarter of her total importations altogether. Total from British countries, £89,670. Total imports from all countries £170,506. Canada's exports to the United Kingdom also exceeded those of the United States, which were £40,257. In 1931, Canada's maximum amount of honey was exported, being 2,589,269 pounds, valued at $225,643. Canada's production in 1931 had an estimated value of $2,647,402 estimated on the average wholesale quotations for that year. The trend of production is steadily upward and is likely to continue so for some time, our potential production being practically unlimited. With assured markets ten years should double the present volume. It may be noted that the Import Duties Act up to date has been of decided benefit to the Canadian honey industry. The 10 per cent preference granted to Canada enabled the largest exporters of Canadian honey to clear, at reasonable prices, large stocks of honey held over from previous years, which otherwise should have been sacrificed. With a duty of 7s. per cwt. imposed on foreign honey, much of the low-priced honey formerly dumped on the United Kingdom markets, at prices far below the cost of production of Canadian honey, will be eliminated, thus making room for the expansion of our trade. Ontario and Quebec honey producers are most in need of markets. This wider market to the United Kingdom will also make way for the ever-increasing supply from western Canada. 132 COMMONS Imperial Conference-Trade Agreements With respect to grains I have similar figures which I may be permitted to place on Hansard for the service of the house in imports are and what our total production has been. I have these figures with respect to barley, oats, peas and other grains, as follows: discussing this matter, showing what the total (k) Barley: Value United Kingdom Imports, 1930 Canada's Exports to United Kingdom- .Cwts. (112 lbs.) 15,207,759 £4,593,8121930 2,058.149 $ 681,3881931 8,099,922 2,985,995Canada's Total Exports- 1930 2,834,299 987,2231931 24,259,755 9,923,520Canada's Production- 1930 135,160,200 67,382,600 136.391,000 38,943,642 1931 Canada's Maximum Production (Crop Year), Canada's Maximum Exports, Total fiscal year 1928 Bus. 1926-27.. ..Bus. 25,875,024 Canada's production of barley could be tremendously increased through the breaking of new land and the substitution of barley for other grains on presently cultivated land. It is essential that Canada widen her market for this product. The ten per cent preference which is secured to us will assist in improving Canada's competitive position in the United Kingdom market. This preference, if taken advantage of, should be of particular benefit to the prairie provinces and in all provinces which can produce barley of satisfactory malting quality. (1) Oats: United Kingdom Imports, 1930 Canada's Exports to United Kingdom Canada's Total Exports, 1930-31 Canada's Production, 1930 Canada's Maximum Production, Crop year 1923 Canada's Maximum Exports, fiscal year 1916-17.. Value 9,631,091 2,373,314 6,403,181 423.148.000 563.998.000 66,368,832 £2,409,111 $1,452,935 4,055,855 33,918,479 The potential production of oats in Canada is limited only by demand. Under the prevailing preference, the continuance of which is secured by the treaty, the export of oats from Canada to the United Kingdom has increased substantially during the five months' period ending August 19, 1932, as compared with the same period in 1931. 1931, 3,082,430 bushels; 1932, 3,957,915 bushels. It should be noted that this increase has occurred while Canada's total exports of oats have slightly decreased. (m) Peas (whole): United Kingdom Imports, 1930 Cwts. (112 lbs.) Canada's Exports to United Kingdom, year ending March 31, 1932 Bus. Canada's Total Exports, year ending March 31, 1932.. ..Bus. Canada's Production, 1930 and 1931- 1930 Bus. 1931 Bus. Canada's Maximum production, 1909 (Crop year) Bus. 1,272,655 8,685 57,766 2,370,600 1.370.000 8.145.000 V alue £964,498 $ 29,748 111,809 3.487.000 1.155.000 A sufficient time has not yet elapsed for 10 per cent preference under the United Kingdom Import Duties Act to show any appreciable effect on Canadian production and exports to the United Kingdom of peas. In 1931 the Canadian pea crop was short with no exportable surplus and the 1932 acreage is slightly less than that of 1931. The three principal pea growing provinces of Canada are Ontario, Quebec and British Columbia. The continuance of this preference will improve our competitive position in the United Kingdom market. [Mr. Bennett-. 1 Time will not permit me to deal further with the advantages that should accrue to Canada in respect of farm products throughout the country if we are to take the fullest advantage of this vast and ever-widening market that has been secured. I shall hurriedly mention a list of those commodities most essential to Canadian farm industry on which we have secured continued free trade with a tariff margin which will be indicated by placing opposite them the general tariff rates that will prevail when the conference agreements are ratified. OCTOBER 12, 1932 133 Imperial Conference-Trade Agreements Products, Mainly Agricultural Commodity Preferential Rate General TariffWheat Free Free Free Free Free Free Free Free Free Free Free Free Free Free, plus sugar duty, if any Free, plus sugar duty, if any Free, plus sugar duty, if any *3d. per bu. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. 10 p.c. ad val. *4s. 6d. cwt. *4s. 6d. cwt. 25 p.c. ad val. if dried by artificial heat or chemical process and without sugar; otherwise 10 p.c. ad val. *10s. 6d. cwt. plus sugar duty if any in trade agreement (1) *3s. 6d. cwt. plus sugar duty if any in trade agreement (1) 115 p.c. ad val. plus sugar duty, if any.Wheat flour Rye Barley Oats Peas, whole Hay Specific rate is stabilized in Schedule B. fThis rate is in United Kingdom trade agreement with Australia and Union of South Africa. Under Import Duties Act, fruit preserved without sugar by artificial heat or chemical process is 25 per cent ad valorem. (1) Under Import Duties Act, fruit preserved without sugar by artificial heat or chemical process is 25 p.c. ad valorem. Note: Sugar duty is 5s. lOd. cwt. (Preferential) and 11s. 8d. (general) for highest polarization. On this basis following rates are established on preserved fruit: - Preferential GeneralWhen sugar duty not over 9|d. (preferential) or Is. 6£d. (general) per cwt. on total weight 9|d. cwt. 15§d. cwt. 41Id. cwt. 18^d. cwt. 31d. cwt. 82^d. cwt.Preserved in thin syrup Preserved in thick syrup Commodity Preferential Rate General Tariff Free, unless containing sugar or spirit. Free, except for sugar duty, if any Free Free Free 10 p.e. ad val. but not less than duty on sugar or spirit content 10 p.c. ad val. or duty on sugar content if higher 10 p.c. ad val. 20 p.c. ad val. 6s. per cwt. Pickles and sauces Vegetables, other, canned Condensed milk, not sweetened 134 COMMONS Imperial Conference-Trade Agreements Commodity Preferential Rate General TariffCondensed milk, slightly sweetened Is. lid. cwt. (sugar *9s. per cwt. (plusduty) 2s. Id. sugar duty)Condensed milk, sweetened 2s. 8d. cwt. (sugar *9s. per cwt. (plus 9s.duty) 4d. sugar duty)Milk powder and other preserved milk, not sweetened Free 6s. per cwt.Milk powder and other preserved milk, sweetened 2s. l£d. or 4s. 9£d. 4s. 3d. or 9s. 7d. perper cwt. depend- cwt. depending oning on sugar con- sugar contenttent Free 7s. per cwt.*19 p.c. ad val.Free *15s. per cwt.Eggs in shell Free *12d. to 21d. perTobacco, raw 7s. 3fd. to 8s. 3fd. cwt. 9s. 6d. to 10s. 6£d.per lb. per lb.(Article 7) (Article 7)93s. 4d. per cwt. 80s. per cwt.(Old tariff) (Old tariff)Confectionery made from sugar and no other ingredient except flavouring 5s. lOd. cwt. 11s. 8d. cwt.(Old tariff) (Old tariff)Confectionery, when duty on sugar used therein does not exceed per cwt. 4s. 2§d. (pref.) and 8s. 9d. (gen.) 4s. 2id. 8s. 5d.(Old tariff) (Old tariff) 'Stabilized in Schedule B. I have not yet touched upon that farm commodity which is at the moment of most immediate importance to this country. Finding wheat and wheat flour markets is the great problem facing our wheat growers today. In flour we have secured free entry as against a minimum general British tariff of 10 per cent. You are all aware that our flour industry has suffered a serious decline due to tariff walls erected against us by foreign countries, import restrictions and the like. This gives the preference an especial relative value which is already reacting to the benefit of the Canadian wheat producers. Not only does the increase in the sale of Canadian flour widen the Canadian wheat market, but Canadian flour is most important in promoting the direct sale of Canadian wheat. Our secured place in the British flour market means that British domestic millers can only compete with the Canadian flour if they use Canadian wheat standards. In 1931, the total import of wheat flour into the United Kingdom was 9,141,192 barrels of which 3,712,824 barrels came from British countries and 2,428,368 barrels from foreign countries, Canada being the chief British Empire supplier with 2,225,490 barrels and the United States the chief foreign supplier with 1,187,190 barrels. This tariff preference should deflect to British Empire countries a large part of the flour trade of the United Kingdom heretofore supplied by foreign countries. Up to the pres- ent, Australia has had the chief advantage of the deflection of trade from the United States. It is significant, nevertheless, that in the first six months of the present calendar year, the imports of wheat flour into the United Kingdom from the United States amounted to only 210,560 barrels as compared with 593,250 barrels in the corresponding period during the preceding year. On wheat we have secured a preference of 2s. per quarter. Article 4 of the agreement makes the continuance of this preference, as well as the preferences granted in respect to copper, zinc and lead conditional upon empire producers of these commodities being able and willing to offer them a first sale in the United Kingdom at prices not exceeding the world prices and in quantities sufficient to supply the requirements of the United Kingdom consumers. I have never at any time represented to the wheat growers of this country that the effect of a preference would be to set up in their favour a price differential in world markets and at the expense of the British consumer. What I did maintain was that it was vital to us to find a secured market in the United Kingdom which is now by far, and is likely to continue to be, the greatest wheat consuming country in the whole world. The United Kingdom in 1931 imported what is equivalent to 250,466,000 bushels of wheat and her average imports over the past five years were 232,084,000. These figures are arrived at by converting barrels of flour Imperial Conference-Trade Agreements at 4i bushels of wheat per barrel. There is no need of emphasizing the value of this market to Canada. The preference, it is agreed, will substantially increase the purchase of Canadian wheat by British importers. When this, the greatest of all the markets is secured, the problem of finding markets in other countries for the balance of our exportable surplus is proportionately lessened. When we have secured world markets sufficient to absorb our exportable surplus, our wheat in world markets will as a result enjoy a price which is more in keeping with the cost of production and the standards of living of our farmers in this country. Furthermore, it should be borne in mind that a preferential position in this market will be of immense advantage to Canada in maintaining our great wheat growing areas while world sources of supply are being compelled to adjust their acreage to market requirements. It will be observed that the preferences secured are as far as possible fairly divided among the various classes of producers and among the various sections of the country. The United Kingdom agreement is made on the express condition- -that, if either government is satisfied that any preferences hereby granted in respect of any particular class of commodities are likely to be frustrated in whole or in part by reason of the creation or maintenance directly or indirectly of prices for such class of commodities through state action on the part of any foreign country, that government hereby declares that it will exercise the powers which it now has or will hereafter take to prohibit the entry from such foreign country directly or indirectly of such commodities into its. country for such time as may be necessary to make effective and to maintain the preferences hereby granted by it. This clause of the agreement is directed to unfair competition of the kind named from whatever source it may arise. I have heard it said that this provision to secure this agreement against unfair foreign competition is ineffective. My answer to that criticism is this. That provision goes to the very root of this agreement. Without definite protection against unfair competition from abroad, the advantages under the agreement would be seriously impaired. It remains with the United Kingdom to provide the means by which this provision will be made operative, and I, for one, am content that when in honour, the United Kingdom is bound to ensure its effectiveness, that effectiveness will follow upon their undertaking, as the night follows upon the day. And I must counsel any member of this house before he prejudges this provision and dares to impugn the good faith involved in its satisfactory operation, to remember that the Canadian people, acting in good faith under this agreement, will bitterly resent any suggestion that the United Kingdom is not in this, like-minded with ourselves. At the opening of the conference, I said that while our proposal was made directly to ithe United Kingdom, it was offered in principle to all the other countries of the empire wherever its application would be of mutual advantage. And I am happy to say that we have succeeded in concluding agreements, based in spirit and principle upon the agreement with the United Kingdom, and which in their turn, having regard to their necessarily more limited application, are of corresponding mutual benefit. These agreements, I have enumerated, and I shall take time now only to outline the important provisions of them. Trade Agreement with South Africa A trade agreement was also concluded at the conference between the governments of the Dominion of Canada and the Union of South Africa. This agreement, for the first time in the history of these two dominions, places their commercial relations upon a treaty basis. The Union of South Africa has been receiving the benefits of our British preferential tariff ever since 1904, prior to the formation of the Union. Up to 1925 the Union granted preferences .to Canada on a whole range of goods for which there were preferential rebates to empire countries. In 1925 the Union of South Africa adopted the principle of granting restricted and exclusive preferences to other countries in return for reciprocal tariff concessions. Accordingly the trade agreement which has been concluded with South Africa deals with the principal commodities which each dominion can sell to the other and is more limited in scope than the trade agreements recently concluded with Australia and New Zealand. It has, however, secured a considerable extension of the list of commodities on which preferences have hitherto been extended to Canada. Special consideration has been given by administrative regulation to the position of corn from South Africa and to motor cars from Canada. An examination of the schedule attached to the trade agreement providing for preferential rebates on Canadian products imported into the Union of South Africa will indicate that the agreement provides for preferences on a number of important foodstuffs, forest products and manufactured goods for which the Union of South Africa offers opportunities for the extension of Canadian trade. 136 COMMONS Imperial Conference-Trade Agreements Trade Agreement with the Irish Free State The agreement concluded at the conference between the government of the Dominion of Canada and the Irish Free State places the trade relations between the two dominions on a treaty basis. The Irish Free State on becoming a separate customs area in 1923 adopted the tariff of the United Kingdom with the then existing preferences on empire goods. The tariff has since been considerably modified but the principle of preferential rates for empire goods has been maintained. While these preferences have been extended to Canadian products Canada was not assured of their continued application so long as commercial relations were not regulated by an agreement. The trade agreement concluded at the conference secures for all goods the produce or manufacture of Canada imported into the Irish Free State the benefits of the lowest rates of duty accorded to similar goods the produce of any country. In return, goods the produce of the Irish Free State when imported into Canada will be accorded the same tariff treatment as similar goods imported from the United Kingdom of Great Britain and Northern Ireland. Our exporters and manufacturers should henceforth derive considerable benefit from the preferences embodied in the Irish Free State tariff and it may be expected that this factor will be of material assistance in increasing the exports of certain Canadian foodstuffs and manufactured goods to the Irish Free State market. Trade Agreement with Southern Rhodesia The trade agreement between the governments of the Dominion of Canada and of the Colony of Southern Rhodesia provides for the exchange of preferential treatment on selected lists of commodities. In addition, other goods not enumerated in the schedules attached to the agreement will continue to enjoy the benefits of existing and future British preferences. The preferences accorded to Canada under this agreement should afford our exporters and manufacturers important advantages in competing with foreign countries for a share of the trade with Southern Rhodesia. Conversations with British India The presence of the Indian delegation at the Imperial economic conference enabled conversations to be initiated with respect to the desirability of a trade agreement between the two countries. Although the time available did not permit definite conclusions to be reached, the conversations served to provide an opportunity of examining the openings for (Mr. Bennett.] mutual trade. It is hoped that after the Indian delegation have had the opportunity of reporting to the government of India the result of the conversations at Ottawa direct negotiations may be entered into between the two governments for the conclusion of a trade agreement which will secure to Canada preferences on the principal Canadian products for which India offers a market. Conversations with Australia Discussions took place during the conference with the representatives of the government of the Commonwealth of Australia on the question of implementing the trade agreement of 1931. The possibility was explored of each country extending further tariff concessions to the other. The Australian delegation are reporting to their government the result of these discussions, after which it is hoped that further negotiations will be conducted with a view to implementing the trade agreement and securing for Canada a number of additional tariff advantages on certain of the articles which we ship to Australia. Conversations with New Zealand The presence at the conference of the New Zealand delegation afforded an opportunity of discussing the extension of the trade agreement between Canada and New Zealand concluded on April 23, 1932. This agreement was concluded only for the period of one year. The opportunity was afforded of examining the respects in which the trade agreement should be implemented or modified and a general exchange of views took place, which should materially assist the consideration by both governments of the modification and extension of the existing trade agreement. It is hoped that further negotiations will lead to the conclusion of another agreement which will serve to regulate trade relations between the two countries for a long period and bring to Canadian exporters and manufacturers valuable tariff preferences in the New Zealand market. Article 19 of the United Kingdom agreement is as follows: His Majesty's government in Canada undertake to accord to those non-self-governing colonies, protectorates, and the mandated territories to which the benefits of the British preferential rates are at present accorded and also to Zanzibar the preferences on the commodities and at the rates shown in schedule F and also any preferences for the time being accorded to the United Kingdom. Provided that His Majesty's government in Canada shall not be bound to continue to accord any preferences to any colony or protectorate which, not being precluded by international obligations Imperial Conference-Trade Agreements from according preferences, either (i) accords to Canada no preferences or (ii) accords to some other part of the empire (in the case of Northern Rhodesia excepting the Union of South Africa, Southern Rhodesia and the Territories of the South African High Commission) preferences not accorded to Canada. The house will have at an early date further details of the concessions hereunder granted. Then there remains for consideration the length of the agreements. It will be recalled that they are for a period of five years, and thereafter indefinitely. I believe it would be well to advise the house as to the length of time for which trade agreements have been heretofore negotiated, and the dates upon which they became effective. The following table will give this information: Trade Agreement between Canada and Australia. Convention of Commerce with Belgium.... Convention of Commerce with Czechoslovakia. Convention of Commerce with Italy Convention of Commerce with the Netherlands. Trade agreement with the British West Indies Date on which effective Aug. 3, 1931... Oct. 22, 1924.. Nov. 14, 1928. Jan. 8,1924.... Oct. 28, 1925.. April 30, 1927. Trade Agreement with New Zealand... Trade Agreement with the United Kingdom. Trade Agreement with the Irish Free State.. Trade Agreement with the Union of South Africa. Trade Agreement with Southern Rhodesia.. May 24, 1932 Aug. 20, 1932 (subject to the necessary legislative or other action being taken as soon as may be practicable there after). To go into force on date to be agreed upon. To go into force on date to be agreed upon. To go into force on date to be agreed upon. Period for which negotiated 1 year and indefinitely thereafter, subject to 6 months' notice of denunciation. 4 years and indefinitely thereafter, subject to 12 months' notice of denunciation. 4 years and indefinitely thereafter, subject to 12 months' notice of denunciation. 4 years and indefinitely thereafter, subject to 12 months' notice of denunciation. 4 years and indefinitely thereafter, subject to 12 months' notice of denunciation. 12 years and thereafter indefinitely, subject to 12 months' notice of denunciation. 1 year. 5 years and indefinitely thereafter, subject to 6 months' notice of denunciation. 5 years and indefinitely thereafter, subject to 6 months' notice of denunciation. 5 years and indefinitely thereafter, subject to 6 months' notice of denunciation. 5 years and indefinitely thereafter, subject to 6 months' It will be observed that the practice of preceding governments has been to initiate trade agreements for a maximum period of twelve years, and for periods of four years or less. The present agreements will be in existence for a period of five years, and thereafter will be subject to a six months' notice of termination. We believe that not less than five years will be required in order fully to demonstrate the value of these undertakings, and we are satisfied that if stability is desired, as it is, and if the value of the agreements is to be tested, any period less than that would be too short a time in which to try an experiment so great. The agreements made with Italy and Belgium, it will be remembered, were for a period of four years, and thereafter indefinitely. We believe, as I say, that five years should be the period selected. Although it has been somewhat tiresome, I have endeavoured to place before this house a review of the agreements. I have tried to indicate the benefits to be derived from them, not only by Canada but by the other countries to the agreements as well. During the course of the debate questions naturally will arise which the members of this government will be glad to answer fully. Any presentation of this agreement with the United Kingdom or the agreements with the other dominions, however, would be incomplete did I not express again the privilege it has been to meet the representatives of the governments of the other countries of the empire, and to say how greatly we have esteemed the honour of cooperation with them in the development of this great scheme of inter-eimpire trade. And I furthermore desire to acknowledge with


October 12, 1932