Jerusalem.
The Jewish fight for imperial preference for Palestine and for tariff reforms to curb unrestricted imports into Palestine has entered a new phase with the resolution adopted here by the Palestine Farmers’ Association, demanding that Palestine products, especially oranges, be exempted from customs duty in all the territories of Great Britain, since Palestine is under the British Mandate.
This fight has been going on for a number of years, especially since Cyprus became a competitor for Palestine on the imperial market. As far back as 1928 the Joint Palestine Survey Commission recommended in its report that imperial preference must be granted to Palestine in order to stimulate the country’s export trade.
The vineyards and the tobacco fields of Palestine give promise of good financial returns, the report said, were it possible to export into the British Empire the wine and other liquors produced from the grapes as well as tobacco, both in its raw and in its manufactured state, at reduced customs rates.
The home market, confined as it is to local consumption, can absorb only a small part of the production. Foreign markets are, therefore, essential, to the profitable development of this industry.
There is an encouraging demand for these products in Great Britain. A serious difficulty, however, is encountered in the laws regulating imports into the territory of the mandatory government, and subject the Palestinian producer and his infant industry to destructive competition. If these products were afforded the advantage of Imperial Preference, there would be an encouragement to those who are investing their capital and devoting their labor in this promising field of what may be called the Palestinian agricultural industry. It would add to the wealth of Palestine and thereby enable it to expand in many directions.
In view of the comparatively large imports it is desirable that they be counterbalanced so far as practicable by the volume of exports.
Although Palestine is not constituted British territory and cannot be said to be a protectorate, yet its affairs are under the supervision of the British Colonial Office. While not, strictly speaking, a British Colony, nevertheless, in some aspects it partakes of the character of a Colony. Comprehensive duties toward Palestine have been imposed upon the mandatory by the Council of the League of Nations.
The Joint Palestine Survey Commission also dealt in its Report with the question of Tariffs for Palestine.
In Palestine, as in other countries, it said, it is essential that industries should enjoy some measure of protection in their infancy. The effect of the revised customs tariff which has recently been promulgated is to give protection to certain local industries. It is not suggested that protective duties should be levied indiscriminately. Every case should be considered on its merits in accordance with a well-considered policy. The judicious use of tariffs for the encouragement of industries having a reasonable prospect of establishing themselves on a self-supporting basis, will have a beneficial effect on the conditions of life in Palestine, and will be to the advantage of the population as a whole.
Bound up with the question of tariffs is that of customs agreements with neighboring countries. Article 18 of the mandate provides that: “The mandatory shall see that there is no discrimination in Palestine against the nationals of any State Member of the League of Nations (including companies incorporated under its laws) in matters concerning taxation, commerce and navigation.” The same article states that the Administration of Palestine may: “On the advice of the mandatory, conclude a special customs agreement with any State the territory of which in 1914 was wholly included in Asiatic Turkey or Arabia.” There would, therefore, appear to be nothing to prevent the Palestine government from concluding customs agreements with Syria, Iraq, Hejaz and Turkey.
Customs agreements with these neighboring countries are of special importance since they constitute the approximating free trade between Palestine and Syria was, in fact, negotiated in 1921, but it is understood that this agreement is not to be persisted in. If such agreements are to serve a useful purpose, it is essential that there should be no sudden changes, since new industries cannot be expected to make headway if they are exposed to the risk of abrupt alterations in the conditions under which they have been established.
In view of the complicated problems involved in the use of protective duties, and the importance of ensuring that tariffs shall take into consideration the interests alike of industry, revenue and the consuming public, it would seem desirable for the Palestine government to establish a special. Tariff Board charged with the duty of laying down and applying definite principles of fiscal policy.
The existing railway tariffs in Palestine are not sufficiently flexible, and neither favor the local manufacturer as against the importer nor encourage export trade. It is suggested that the government of Palestine consider the feasibility of a general reduction of freight rates, and in particular of the introduction of a special tariff on goods for export.
The co-ordination of transport facilities is assuming increasing importance, more especially in view of the harbor projects in contemplation. The establishment of a Transport Board by the Palestine government is therefore deemed an urgent necessity.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
