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Encl. 3
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G
Section E
Hong Kong's unilateral undertaking on exports of polyester and polyester/cotton blend shirts blouses and trousers. Encl. 3)
Statistical Position
(a) General
Encl.14
Encl.9
Encl.15
Encl.16
*
53.
Enclosure 14 shows Canadian imports of m.m.f. shirts, blouses and trousers over the last three years. The Canadian import market in this particular sector has seen considerable expansion. Total imports increased by 108% and 73% between 1966/1967, and 1967/1968 respectively. Hong Kong's share of the market increased from 35% in 1966 to 49% in 1967 but dropped to 30% in 1968. Hong Kong first gave a unilateral undertaking to restrain polyester/cotton shirts, blouses and trousers in 1967. Given the expanded import market it can be argued that the decline in Hong Kong's share of the market between 1967 and 1968 is attributable, at least in part, to the introduction of restraint. Hong Kong however suffered no decrease in the absolute volume of trade over these three
years.
54.
In general utilisation of quota for polyester/cotton garments under restraint has been slower this year when compared with last year (Enclosure 9). This is possibly the result of uncertainty over the outcome of the revision of Canadian customs valuation on garments from Hong Kong, with the result that some orders are possibly being diverted to Taiwan and South Korea. Given the buoyant state of the Canadian m.m.f. garment market and comparatively small size of the quotas, it would be reasonable to assume that full utilisation will be achieved by the end of this quota year.
(b) Shirts
55.
Enclosure 15 gives Canadian imports of m.a.f. shirts. Among the four restrained exporting countries, Hong Kong was the only one to have suffered a decline of 34% between 1967 and 1968. The Canadian market on the other hand improved by 124% 1967 over 1966, and 85% 1968 over 1967. Both South Korea and Taiwan registered substantial gains in both absolute and relative terms. It should be recalled, however, that this year penal surcharges have imposed on imports of all shirts from South Korea and Malaysia and this will undoubtedly affect the total volume of imports this year.
(c) Blouses
56.
Total Canadian imports increased by 100% between 1966 and 1967, and 47% between 1967 and 1968, but imports from Hong Kong registered a slight decline between 1967 and 1968 after showing substantial increases in 1966 and 1967. Japan, Taiwan and South Korea, on the other hand, all showed substantial increases in 1968 over 1967. Japan overtook Hong Kong's lead in this sector in 1968 and became the leading supplier, followed by Hong Kong. (See Enclosure 16.)
/(a)
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