128 SECTIONAL ADDRESSES 



specialists ^ who would examine sales problems from this angle and who 

 could undertake both general studies and commodity marketing studies. 

 Such work would give a balanced view of the market examined, and could 

 be carried out without offence to other countries ; it is an entirely different 

 type of task from that which the U.S.A. Tariff Commission imposed on its 

 agents when it instructed them, some years ago, to inquire into the costs 

 of production of certain industries in foreign countries. It should be 

 possible to define the strength and weakness of a seller, to make some 

 estimate of the extent of the existing market and the shares of different 

 exporters. In addition, it should cast some light upon the elasticity of 

 demand, and whether changes in the product or in its price would enable 

 it to reach new groups of consumers. It is not a question of finding out 

 whether a few firms sell badly and lose trade, but an entirely different 

 attitude towards the possibilities of selling organisation which is most to 

 be aimed at. 



The Position with regard to 0\'erseas Tariffs. 



From the standpoint of this paper the only issue which it is proposed 

 to discuss in connection with tariffs is whether Britain is at any dis- 

 advantage compared with her trade competitors in gaining access to over- 

 seas markets. The central feature of her policy within recent times 

 has been the unconditional interpretation of the ' most favoured nation ' 

 clause : this has meant that Britain claimed by treaty, convention and 

 custom that her goods should be admitted at the lowest rates into over- 

 seas markets ; even if nations such as the U.S.A. did not accept the 

 unconditional interpretation but insisted on ' reciprocity,' Britain has 

 commonly enjoyed the benefit of the lowest available rates. The excep- 

 tions to this position have been few and unimportant in their relation 

 to the export trades. The special circumstances where the clause would 

 not apply would be, for example, if there were a complete customs 

 union between two countries which maintained their tariff against other 

 countries : no third country could claim in virtue of the clause to introduce 

 its goods duty free into the united territory. Colonial and Empire 

 unions are commonly outside the scope. The case of the preferential 

 rates between the U.S.A. and Cuba may be quoted as a general illustration. 

 It can therefore be said that British trade is at least as favourably treated 

 in foreign markets as that of any other exporting country, and it must 

 be added that it is more favourably treated by certain of the overseas 

 Dominions. 



In so far, however, as Britain is the chief world exporter of manufactured 

 goods, tariffs do in fact partially discriminate against her, since if the 

 proportion of her exports be taken as 75-80 per cent, manufactured, while 

 that of the U.S.A. is only 37-44 per cent., it follows that since finished 

 goods tariffs have, until the last two years, ruled much higher than 

 agricultural tariffs, Britain has faced the barrage on a larger portion of 

 her trade than any other country except, perhaps, Germany. Again, the 



» The Economic Mission to the Far East (Report, p. 128) did recommend a 

 service of speciahsts and experts, but the task assigned was not purely market 

 investigation. 



