EXTRACT.

Reference.......

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RESTRICTED.

To Director of Commerce and Industry, Hong Kong.

From Counsellor (Hong Kong Affairs), Geneva.

Memorandum No. 77.

File No. GVA/ 4/34

RESTRICTED

Date 13 May 1969

Annex 1

V.B

Non-tariff Barriers

Discussion on Hong Kong Notifications

in Sections W, Y and VI

Surcharges, Port Ducs, Statistical Taxes, etc.

ALGERIA

10. In claberating on the Hong Kong notification regarding the application of the general rate of duty in Algeria to imperts from Hong Kong I said that, despite the footnote questioning whether the notification concerned a non-tariff barrier, we would wish to see it maintained in the inventory. This was a matter of principle because the most fundamental provision of the General Agreement was the most favoured nation principle embodied in Article I. From a GATT point ▸f view I would therefore regard any duties imposed on Hong Kong over and above the MFN rate as more in the nature. of discriminatory import surcharges than tariffs. As the surcharges concerned amount, in most cases, to about twice the level of the MFN tariff this was a serious barrier which was having a significant effect on Hong Kong's exports to Algeria. As no Algerian representative was present, the Secretariat said they would pass n the notification.

R

LEVED IN

MKK6/344/1

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