Export Sales Cramped by Bulkbuying Arguments
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BRITISH manufacturers, as a whole, seem to have done reasonably good business as a result of exhibiting at the recent International Show of Commercial Vehicles at Amsterdam, but there are now certain signs that the competition from Germany is already being felt. Our correspondent in Holland suggests that this is not the result of any lack of quality in our products or their prices, but consequent upon the British Government's trading policy.
It seems that the vehicle-import quotas for German makers and certain others, particularly in respect of the lighter models, are not so satisfactory to us as they are in a position ,to promise quicker delivery. In some cases, foreign concerns actually have stocks in Holland. whereas buyers there are dependent upon shipments from Britain —and our import quotas are practically exhausted.
• Since last November negotiations have been proceeding between Great Britain and the Netherlands for a new trade agreement, but this has been delayed by arguments concerning the prices of Dutch agricultural and dairy products. Consequently, the Dutch authorities were compelled to cut severely their sterling expenditure in Britain. This is one of the fruits of the system of bulk buying to which we are so seriously committed and which is endangering the entire Anglo-Dutch trade. This is particularly regrettable as the Dutch are anxious to develop mutual trade relations, but they are not prepared to sacrifice unduly the interests of their agriculturists. They hold that prices should not be fixed by a Government body but by world market conditions and normal trade.
British exports are subject to far too many restrictions, whereas other countries, especially•Germany, have gone much further in dispensing with these. Meanwhile German industrialists are congratulating themselves and doing excellent business, as was the case at the Utrecht International Industries Fair, which has just shut its doors. There the German mechanical-equipment industry staged a fine joint exhibit by 60 concerns and received direct orders amounting to over a million dollars.
Orders Lost to Germany At Amsterdam a number of orders originally meant for British makers went to-German producers. If our Government does not get busy, Britain may lose more by the reduction of our vehicle exports to the Continent than it is hoped to save by quibbling over food prices.
Interest at Amsterdam was largely centred on oil-engined vehicles and light vans, but petrol trucks in the 2-5-ton range were not neglected. Operators in many trades are renewing their transport equipment or adding to it while conditions are reasonably good—possibly fearing that they may deteriorate in the future.