§ Sir P. HURDasked the Under-Secretary of State for Dominion Affairs whether he will state the general character of the new trade agreement between Canada and the United States, and the means that have been taken by Canada to safeguard the basis of imperial preference?
§ Mr. HACKINGI understand that this agreement is based upon the reciprocal grant of most-favoured-nation treatment in tariff matters and upon a schedule of reductions in the tariffs of the respective countries. The agreement further provides in general terms for most-favoured-nation treatment in respect of import and export restrictions, quantitative regulation and other matters, and generally for national treatment in respect of internal taxes, fees or charges. The duty reductions in the agreement come into effect on the 1st of January, 1936, and the whole agreement, if ratified, will remain in force until the 31st of December, 1938, but in certain circumstances may be terminated by either side before that date. The basis of Imperial Preference is safeguarded in the Agreement by a clause which provides that any advantages already accorded, or hereafter accorded, by Canada exclusively to other territories under His Majesty's sovereignty, suzerainty or protection are excluded from the operation of the agreement. The text of the agreement has been published in the Board of Trade Journal of the 5th of December, to which reference may be made for its detailed provisions.