§ 63. Mr. Jayasked the President of the Board of Trade why he imposes a heavier rate of protective duty on rayon cloth and motor cars imported from the Commonwealth than on cotton cloth from the same source.
§ Mr. P. ThorneycroftThe reason is historical. Commonwealth goods have traditionally not been exempted from revenue duties. The import duties on motor cars and artificial silk goods were originally introduced in 1915 and 1925 respectively and were in force before 1932 for revenue reasons. They were not, therefore, covered by the duty-free entry provisions of the 1932 tariff legislation under which Commonwealth imports, including cotton goods, enjoy duty-free entry, as part of our Ottawa arrangements. These duties are not contrary to the Ottawa arrangements or to our trade agreements with Commonwealth countries under which we receive reciprocal benefits by way of preferences.