Now, tied at various points by the Ottawa agree- ments,
the Cabinet will have to consider the proposals the Argentine, Danish and other Governments have to make. Tied though we may be, we are 'by no means completely disabled from entering into low-tariff agree- ments with these and other countries. With a few exceptions our tariff is still on a 10 per cent. basis, and the exceptions need not prevent us from making reciprocal agreements with countries that will keep their tariff against us to that figure. There is a difficulty here, which might be surmounted, arising out of the most-favoured-nation clause, but the real trouble is that the Government, by guaranteeing the Dominions their 10 per cent. preference, can offer no reductions to foreign countries and must negotiate only on the basis of a threat of still higher duties against them. The coming negotiations with the Argentine in particular must be difficult in the last degree. We are steadily losing trade in that country to the United States, and we have just agreed to a 2s. a quarter duty against Argentine wheat and a meat quota' scheme which will unques- tionably hit the Argentine exporter. With that as starting-point what bargain are we to make for lower tariffs on our exports to Argentina ?
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