0003230
G.F. 323
CONFIDENTIAL
4.
In 1966, however, the principal markets had become
U.K.
Value
$5.0 million
U.S.A.
$2.2 million
Belgium
$1.5 million
Sweden
$1.2 million
W. Germany
1.0 million
Tariff
nil 13/6d. per
1b.
or 30% a.v.
whichever is the higher
10.5%
23% a.v.
25% a.v.
13% - 17% a.v.
17.1% a.v.
while total exports had declined slightly to $12.2 million.
That Hong Kong succeeded in increasing its exports to Belgium in this item from $82 thousand in 1961 to $1.5 million in 1966 appears to indicate that Hong Kong could compete over the 23% tariff (equal to the present C.E.T. which is to be reduced to 20% as a result of the Kennedy Round). As this item comprises gloves made from several components (possibly wholly or mainly of materials other than cotton or wool), it appears that exports at present are already subject to high tariffs in the U.K. The U.K.'s adoption of the C.E.T. would therefore probably result in some reductions in duty.
Jackets, jumpers, sweaters, cardigans and pullovers, knitted or crocheted, wholly or mainly of wool. men's and boys' wear (841 462)
As boys' garments were classified under "children's wear" in 1961, no exact export figures for this item were available for that year.
In 1966, the principal markets were
A
U.K.
Value
$44.2 million
$26.0 million
IN •
Germany
15.9 million
U.S.A.
Netherlands
8.0 million
out of total exports valued at $111.8 million.
Tariff
nil - 13/6d. per lb. or 30% a.v. whichever is the higher
15.3% a.v.
30% a.v. + 37.5¢ per lb. to 42.4%
a.v.
21% a.v.
It appears that Hong Kong is able to surmount the high tariff in the U.S. and should therefore not find serious difficulty with the 21% C.E.T. which will probably be slightly reduced as a result of the Kennedy Round. But, of course, loss of preference will mean increased competition from Japan, Taiwan and South Korea.
CONFIDENTIAL