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quently used loosely in reference to open-door régimes-that is, régimes whose characteristic feature is not absence of duties but absence of differentials. The usage is due partly to the prevalence of low revenue rates in open-door colonies.
The open door with moderate duties is found in some colonies of countries whose prevailing policy is assimilation or preference— France, Portugal, Spain, and the United States-and in the leased territories of Japan. The exceptions are made because of treaty or similar obligations, or for other reasons. (See p. 42.) Such treaty provisions or obligations are described elsewhere in this section under the heading "Treaties and other international arrangements imposing limitations in regard to colonial tariffs." (See p. 26.)
NATIONAL POLICIES AND COLONIAL TARIFFS.
At this point the tariff policy of each colonial power may be summarized briefly. As is seen in Table 8, the colonies of the Netherlands and Belgium are, and those of Germany were, all open-door colonies, as are also the majority of the British dependent colonies. The countries which pursue a policy of assimilation-free trade between the colonies and the mother country and in both the same tariff against outsiders-are France, Japan, and the United States (in Porto Rico); while Spain, Portugal, Italy, and the British Dominions pursue a preferential policy without going so far as free trade between the colonies and the mother country. The British Dominions alone systematically levy protective duties against products of the mother country. It will be observed from the table that all except Germany, Belgium, and the Netherlands have colonies where by exception, for reasons indicated and discussed below, the national policy is not put in force.
TABLE 8.--Colonies classified according to import tariff system.
79 Longer summaries will be found in Section III of the chapters devoted to the dependent colonies of the different countries, and in the final sections of the chapters of Part II.
Also differential export duties.
? One or two items of differential export duty.
In relation to New Zealand, the Cook Islands constitute an assimilated colony.
Northeastern Rhodesia lies within the basin of the Congo and maintains the open door in accordance with the general act of the Conference of Berlin, 1885. The rest of Rhodesia has greater preferences than the other territories in the South African Customs Union.
Formerly British East Africa.
The Netherlands, Belgium, and Germany.-The Netherlands since 1874, and Belgium and Germany since they became colonial powers have maintained in all their colonies the open door and low or moderate tariffs for revenue only. They have made no exceptions to the rule that no direct tariff favors were to be enjoyed either in import or export duties either in the colonies or in the mother country. In all three cases, however, a great share of the trade of the colonies has remained with the mother country.so
Great Britain.-Between 1860 and 1919 Great Britain maintained the open door in India and in the Crown Colonies generally, with either free trade or low tariffs for revenue only. In this period no British dependent colony had a general system of preferential rates, but ten of the West Indian tariff schedules already contained preferential rates upon a fairly extensive but by no means complete list of Canadian and British goods.82 Previous to 1919 there was also a preferential export duty upon tin ore exported from the four Federated Malay States. Beginning with September, 1919, the British market has given a special preference to colonial imports, and this may be described as a general system of preference since it extends to all of the articles dutiable under the British tariff; but it must be noted that the British tariff before the war was limited to sugar, cocoa, coffee, tea, tobacco, liquors, dried fruit, gasoline, and a few lesser items, and that only a very few manufactured articles were added during the war. The British Government accepted this preferential principle as applicable to the whole Empire and during 1919-1921 there has been a considerable extension of differential tariffs in the dependent colonies. In these years complete preferential import schedules have been adopted or extended by all the tariff divisions of the West Indies except Bermuda, and the amount of the preferentials has been increased; a complete system of preferences has been introduced in Cyprus; and differential export duties have been imposed upon raw hides and skins exported from India, upon palm kernels exported from Nigeria, the Gold Coast, Sierra Leone, and Gambia, and upon tin ore exported from Nigeria. There are thus, in addition to the self-governing Dominions and the possessions dependent upon or intimately associated with them, 25 tariff jurisdictions among the British Crown Colonies, including India, which now have more or less extensive differential duties-16 (Cyprus and 15 in the West Indies) have more or less complete schedules of differential import duties, and 9 (4 Federated Malay States, 4
So This has been due to various factors, of which the most tangible are: For the Netherlands, the domination established before the trade was thrown open, shipping subsidies, the reservation of the colonial coasting trade to national vessels, and the remnants of the culture system"; for Germany, certain shipping restrictions, as well as subsidies; and for the Belgian Congo, a practical monopoly of trade by the State (abandoned after Belgium took over the colony from King Leopold) established by means of land legislation. the taxation system, and other instrumentalities.
81 The only exceptions were the South African dependencies, which are outside of the self-governing Union of South Africa, but within the South African Customs Union, and the Cook Islands, governed by New Zealand. British possessions in South Africa have the preferential tariff of the South African Customs Union, with the exception of Rhodesia, part of which lies within the basin of the Congo where treaty provisions require the open door, and the rest of which is subject to the provisions of the charter of Rhodesia, which limits the rates leviable upon British goods and thus in effect requires preferences greater than those of the Union. These possessions are treated in this report as dependencies of the Dominions rather than as Crown Colonies of Great Britain, since with the partial exception of Rhodesia their tariff policy is determined by the Dominions. But see chapter on South Africa. p. 743. The list con
These rates were the result of the negotiations with Canada in 1912. tained 47 items and the reductions were generally 20 per cent of the duty ordinarily
West African colonies, and India) have differential export duties upon not more than two articles each. But since only about 5 per cent of the total trade of the British Crown Colonies is affected by these differential duties (see pp. 369, 370), the open door is still the policy prevailing in the dependencies of Great Britain.
The self-governing Dominions. The four great self-governing Dominions Canada, Australia, New Zealand, and South Africapursue tariff policies which are more characteristic of nations than of dependent colonies. These Dominions are industrial nations systematically seeking the development and diversification of local industries. By the use of tariff walls they reserve their markets to domestic manufacturers and producers. Seeing in the tariff an instrument of domestic political and economic policy, they have extended its use to the larger field of imperial and international affairs. Since the sentiment for drawing the Empire more closely together may be utilized either in favor of a reduction of duties upon British products or in favor of an increase of the duties on foreign products, statesmen of the Dominions have frequently found the preferential tariff a useful means of popularizing changes which they desired to make in the general level of tariff rates. These facts explain in a broad way the adoption of preferential tariff policies in the selfgoverning Dominions a dozen to twenty years earlier than in freetrade Great Britain.
As already mentioned, the type of preferential tariff found in the Dominions is peculiar to them. It is distinguished from the preferential schedules of the dependent colonies in that the base rates are high protective duties instead of moderate protective duties or revenue rates and in that the differentials granted constitute a minor rather than a major fraction of the base rate. Upon a relatively small number of items, rarely dutiable at more than 10 per cent,85 the differential reduction takes the form of free admission. Generally, however, the base rates run from 20 to 50 per cent, and the preference is a minor fraction of the rate, usually from one-fourth to one-half, and amounts to from 5 to 20 per cent ad valorem.
The preferential schedules of the self-governing Dominions are applicable primarily to products of the United Kingdom. To a limited extent they are extended also to the products of the other Dominions, and to the rest of the Empire, but there is no uniformity in this matter. Between 1898 and 1907 all the Dominions adopted preferences in favor of Great Britain. This was done without bargaining on the subject and without receiving any reciprocal favor until 1919.86 In 1903, when New Zealand introduced her preferential rates, she made them immediately applicable to the whole British Empire, and all increases in her differentials 87 made since that date
83 Throughout this discussion the Dominions do not include Newfoundland, which has no preferential tariff. The rates applied in the preferential-tariff colonies to raise revenue and to give partial protection to the industry of the mother country.
8 In New Zealand a dozen articles dutiable at 20 per cent are on the Empire free list. In Canada in 1919-1920, after the repeal of the war tax on imperial products and before its repeal on other products, the British free list was composed largely of articles otherwise dutiable at 7 per cent, but a few items had rates even higher than 20 per cent. In South Africa and Australia articles ordinarily dutiable at not more than 3 per cent and 5 per cent, respectively, are on the British free list.
And see p. 824 for the insignificance of the advantages to be derived by the Dominions from the preferential schedules adopted in Great Britain in 1919.
I. e.. in the voluntary and one-sided preferences. Her reciprocity agreement with South Africa conceded certain rates not granted to other British possessions.
have had an equally wide field of operation. The other three Dominions have granted tariff favors to sister Dominions only after negotiations and special concessions,88 and as the negotiators have frequently failed either to agree among themselves or to satisfy the legislative bodies whose ratification of the agreement was necessary, the network of preferential agreements among the Dominions is by no means complete.89 The British Crown Colonies and India have been regularly included in the preferential legislation of New Zealand, but in Canada the preferential rates were extended to the dependent colonies only gradually between 1898 and 1913, while South Africa and Australia have granted to those colonies no favors. Italy.-Italy maintains colonial tariffs with low rates of duty but otherwise with large preferences to national goods. Italian goods enter Eritrea practically free and receive a preference in Somalia which is especially effective on cottons--the chief article of trade. In Libia there is a preference by the process of undervaluing Italian goods to the extent of about 50 per cent, and certain open preferences on textiles and sugar. The export duties of Eritrea are insignificant and those of Libia very low and neither colony has differentials in these duties; in Somalia a few of the chief items of export have differential duties. Somalia offers special rates to certain products of Eritrea. The preferences in Italy to colonial goods are very limited, though the tendency is to increase them.
Spain-Spain is by tradition among the countries which restrict their colonial trade by preferential tariffs. Differential rates are granted to the chief colonial products when they enter Spain in Spanish ships; and in both the import and export schedules of Fernando Po preferences are granted to the mother country. The importance of Spanish preferences, however, was much diminished in 1898-99 by the loss of Cuba and Porto Rico and the sale of the Spanish colonies in the Pacific. Spain had long maintained the open door in the Canary Islands (except for preferentials given to cocoa and coffee of Fernando Po) and with the recognition of her possession of a part of Morocco (in which the maintenance of the open door is required by treaty), the greater part of her colonies became open-door colonies. But in 1914 a preference was granted to Spanish sugar in the Canary Islands.
Portugal.-Portugal applies most thoroughly in her colonies the principle of preferential tariffs, but without going so far as tariff assimilation. At the same time there is less uniformity in the Portuguese system, and there are more exceptions required to any generalization that may be attempted than in reference to the other colonial systems. Generally speaking, however, there are duties on all imports both in Portugal and in the colonies and on all exports from the colonies, and in all these duties there are differential rates in favor of Portuguese or colonial goods or in favor of Portuguese ships. Colonial products, except a few more favorably treated, pay in Portugal, if transported in Portuguese vessels, only one-half of the usual rates, and a law of 1914 prescribes that in the colonies the
SN Except that Canada responded to New Zealand's free extension of her preferential schedule to the products of Canada by a like free extension of her preferential schedules to the products of New Zealand. (See p. 695 for the extension of Canada's preferential rates to products of sister colonies not Dominions.)
50 See under the heading Intercolonial trade, p. 53.