Corn Laws in Other Countries

CORN LAWS IN OTHER COUNTRIES In Europe generally, the import and export of corn was pro hibited until the rise of industrialism in the beginning of the i9th century caused many countries to take steps to maintain their food supplies, either by permitting free import, and thus becom ing dependent on imported cereals, or by protective tariffs or prohibition of exports, to encourage home supplies.

France.

Prior to the French Revolution, the movement of corn, even between the various provinces, was subject to restric tions, but in 1789, importation into all parts of France was per mitted, free of duty. In 1814 it was proposed to prohibit exports, but owing to the decline in prices, export was permitted when prices fell to a certain low level, in order so far as possible to secure a fair return to the grower by not limiting his market artificially. In 1816, a small import duty was imposed for revenue purposes, but in 1819 a protective duty was levied, consisting of a fixed rate, together with a surtax varying with the prices in the home market; if the price reached a fixed minimum, imports were entirely prohibited. In 182i the limits at which surtax became payable or prohibition enforced were raised. These con ditions remained in force until 186o, although the sliding scale was suspended (1853-59) on account of the high prices reached on the home market. In 1861, the sliding scale was abolished and exports were freed from restriction, while a small duty was imposed on imports. The whole tariff was revised in 1881, while in 1885 duties were imposed on rye, barley and oats, which had been free since 1861, and the duty on wheat flour was increased to fivef old. In 1887 these rates were again increased. The effect of this increased protection was to maintain prices, which in England were falling rapidly, owing to the development of cereal culture in America and elsewhere. When the tariff was revised in 1892 grain duties were unaltered, but in 1894, the duties on wheat and flour were increased. In the 9 io tariff these were unchanged, but on the outbreak of war 09'4), these duties were suspended and exports prohibited. The duties on wheat were however re-imposed after the 1915 harvest, and on oats, barley and maize in 1919.

After the war, co-efficients of increase were applied to the basic tariff rates to keep the duties in line with the values, as ex pressed in paper currency. In Sept. 1927 higher basic rates in currency were imposed, to be again increased in Nov. 1927.

Germany.—Modern German Customs practice may be dated from the formation of the Zollverein (Customs Union), between certain of the German states in 1834. It was not till 1879 how ever that, in response to the demand from agricultural interests, who were feeling the competition, in both home and foreign markets, of America, Russia, etc., import duties were imposed on corn. These duties were increased from time to time till 1888, while in 1892 a series of commercial treaties were negotiated, by which, in return for concessions on German manufactures, import duties on corn were reduced. The rates thus fixed were not to be altered, by the terms of the several treaties, until the end of 19o3, and in that year a new tariff law was enacted. This provided a "general" tariff, applicable to all countries, but the Government was authorized to negotiate commercial treaties, and to make concessions on these "autonomous" rates, by fixing certain rates for specified commodities, imported from the other contracting power. While generally, the Government was left free to make whatever concessions were found necessary to obtain the desired reductions from the other party, the legislation authorizing the tariff laid down for certain cereals, definite limits below which concessions could not be made. The rates finally negotiated were, by the operation of the "most favoured nation" clause, applied to almost all the producing countries: the "gen eral" tariff rates were about 5o% higher. By the terms of the act, any excess (per head of population) in the receipts from these and certain other duties on foodstuffs, over the average yield during the period 1898-1903 was to be used for the estab lishment of widows' and orphans' funds. The negotiation of these treaties took some time, and the tariff did not come into force till March I, 1906, and remained in force till the outbreak of war. Under this tariff, the exporters of milled cereals re ceived certificates (Einfuhrscheine) permitting them to import, free of duty, grain corresponding to the amount of foreign grain contained in the exported products. During the war, these duties were suspended, but from Sept. 1, 1925, duties were again im posed and were increased from Aug. 1, 1926, but still below the level of the 1903 tariff, although the basic rates of that tariff are the standard, the present rates being temporary reductions. The export of grain was freed from control Oct. 1, 1925.

Denmark.-Exports of grain have been free of duty since 182o, and imports since 1848. This is one of the earliest examples of complete freedom of trade in cereals, and has not been followed by any general decline in home production, as has been claimed by the agricultural interests to be a result of unlimited competi tion of foreign grain.

Netherlands.-When the kingdom of Netherlands was set up in 1813, the French protectionist system was in vogue. In 1822 and 1825 the grain duties were increased. In 1835 a sliding scale was established, dependent on the price of grain in various home markets. This was repealed in 1847, and moderate import duties imposed. These duties were finally fixed in 1862, while from July I, 1877, imports of grain have been entirely free of duty. Export duties were abolished in Belgium.-The duties in force in the Netherlands were con tinued when the separation from that country occurred in 183o, and in 1835 a similar sliding scale of duties was imposed, together with a merely nominal export duty. The latter was removed in 185o, since when the export of grain has been free. The import duties were reduced to a nominal level at the same time, and were withdrawn in 1854; they were re-imposed in 1857, and finally withdrawn 1872. (A duty on imported oats was re-imposed in 1895 and is still in force.) Spain.-Export duties were abandoned in 182o, but the import of cereals was prohibited till 1867, when on account of bad har vests, the ban was suspended. After the revolution of 1868, the prohibition was definitely withdrawn, but moderately high duties were imposed. These duties have varied from time to time; immediately before the war they stood at about the same level as in 1882. During the war import duties were suspended and exports were prohibited. The duties in the 1922 tariff are higher than those prevailing before the war, while different rates for the First and Second Tariffs (the former applicable to countries not having commercial treaties) are imposed, the former being three times the latter. In 1926 the prohibition of exports was raised, but control of imports was continued and imports sub jected to sufficient duties to maintain home prices.

Norway.-From July 1, 1927, a state monopoly of grain and grain products has been established. The state buys up the Nor wegian crop, and has the sole right to import grain, but licences are issued to persons who prove that they have purchased from the state a corresponding quantity of Norwegian grain. Import duties were modified at the same time.

Italy.-At the formation of the kingdom of Italy in 186 r, free trade in cereals was permitted, but in 1866 both import and export duties were imposed; and the latter were abolished in 1867. The import duties were increased in 1887, again in 1883, and finally in 1895; the rates then fixed were unaltered till the outbreak of war (1914), when import duties were suspended and export prohibited. Import duties were re-imposed from Jan. 1, 1926, but export of wheat is still prohibited.

Austria-Hungary.-Export duties on cereals were abolished in 1852, and imports from the German Zollverein were admitted free of duty from 1853 onwards. These constituted the greater proportion of imports. At the end of 1866, cereals from the former Austrian Italy were admitted into Tirol free of duty, while in July 1876 Rumania was accorded the same exemption from duty as the Zollverein. In 1879 all import duties were re moved, but in 1883 duties were re-imposed, although the bulk of the supplies came from Rumania and were admitted duty free. In July 1886 this preferential treatment was abrogated. Increased customs duties were imposed in 1892 ; and further increases were made in the i 906 tariff, even in the conventional rates agreed upon in the series of commercial treaties consequent upon the introduction of these revisions. These rates were adopted by the Succession States after the war, but their application was suspended for some time owing to shortage of foodstuffs.

In the case of Austria, duties were again levied from Jan. 1925, based on a sliding scale. New definite duties have been enacted, but had not been put into operation at the end of 1927. In Hungary, all restrictions on imports and exports were withdrawn from the beginning of 1925, and import duties were imposed shortly afterwards. In Czechoslovakia, cereals were admitted free of duty under the tariff of 1921. In 1925 the sliding scale prin ciple was introduced, while a fixed scale of duties has been levied since July 1926; higher rates are charged on imports from coun tries which have no treaties with Czechoslovakia. This provision led to the commercial treaty with Hungary negotiated in 1927.

United States.-In view of the large exportable surplus of cereals produced in the United States, import duties are of little importance in price regulation, but are of considerable interest as matter of practical politics. The general tendency of American tariff legislation has been protective, and the agricultural interests have always obtained their share of the protective duties. It may be said that the only source of supply is Canada, and this fact has coloured all the tariff legislation relating to cereals. Under the earliest tariffs (1789 onwards) cereals were not enu merated separately and paid duty at ad valorem rates under "un enumerated articles." Specific duties were imposed in 1824, but ad valorem rates were again used from 1832 onwards until 1857. Under the reciprocity agreement (1854) imports from Canada were free of duty, but this was abrogated in 1866, and the normal tariff rates again became payable. Increased duties were imposed in 1894; temporary reductions were made in 189o; but in 1897 the 1890 rates were restored. In the 1913 tariff, wheat, maize, rye and flour were made free of duty, but a duty was imposed on Canadian cereals on the ground that Canada imposed a duty on American wheat. On the entry of America into the war in 1917 this was remitted and imports were free of duty until the coming into force of the 1921 emergency tariff which re-imposed duties. The Fordney-McCumber tariff continued these duties, which were at about the same level (specific rates) as in 189o. On the ground that the difference in cost of production in Canada was not equalized by this duty, the rates on wheat and wheat products were increased in March 1924.

British Countries Overseas.-Imports of grain into Canada from the United States were free of duty during the continuance of the Reciprocity Treaty of 1855-66, but duties have been pay able since.

Import duties are also levied in Australia and New Zealand, but in the case of Australia, wheat is admitted free under the British Preferential Tariff. In South Africa a moderate import duty is levied, which is stated to have materially encouraged home pro duction.

No duty is levied on imports into the Irish Free State, nor into British India. An export duty on rice is imposed by the last named, but none of the British Overseas Dominions imposes such duties.

Export Duties.-Some of the more important producing coun tries retained export duties on cereals until the war, i.e., Rumania and Bulgaria, and these are still in force, while since 1918, Argen tina has levied a variable duty dependent on the price. This was introduced as a temporary measure, but has not yet been withdrawn.

Information as to the actual rates in force in any particular country can be obtained from the Department of Overseas Trade, London, or from similar official trade development organizations in the principal countries, such as the Department of Commerce, Washington. (H. CR.)