HC Deb 28 May 1936 vol 312 cc2192-3
66. Mr. CHORLTON

asked the President of the Board of Trade whether, with a view to making more advantageous terms with the various countries in the trade agreements now coming up for renewal, he will, when possible, withdraw the privilege of the most-favoured-nation clause?

Captain WALLACE

If negotiations for the renewal of any trade agreement should break down, the possibility of withdrawal of most-favoured-nation privileges from the country concerned would fall to be considered, but His Majesty's Government regard this expedient as one to be held in reserve. The prior denunciation of most-favoured-nation agreements would have an unsettling and detrimental effect on the flow of trade.

Sir JOHN HASLAM

Is it not time that the Government abolished this relic of policies which have been abandoned in this country? Why should we retain a policy of this class when our entire fiscal policy has been altered?

Captain WALLACE

Because my right hon. Friend thinks that, on balance, we gain more from it than we should gain by abandoning it.

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