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(B) THE TARIFF WILL ENABLE EFTA AND IRISH SUPPLIERS (AND ESPECIAL-
LY PORTUGAL) TO GAIN A BIGGER SHARE OF THE MARKET AT THE EXPENSE
OTHER LOW COST COUNTRIES NOW SEVERELY
OF THE COMMONWEALTH.
RESTRICTED BY GLOBAL QUOTA, SUCH AS TAIWAN AND KOREA, WOULD ALSO
BE EXPECTED TO GAIN A BIGGER SHARE SEMI COLON
(C)
THIS FIGHT FOR THE MARKET COULD LEAD TO CONSIDERABLE FALLS
IN PRICES. THIS WOULD HAVE DISRUPTIVE EFFECTS IN BOTH BRITAIN
AND SUPPLYING COUNTRIES. OVERALL EFFECT WOULD BE THAT IMPORTS
WOULD NOT BE REDUCED BUT WOULD MORE LIKELY INCREASE SEMI COLON
(D) BUT THE REPORT, INDICATED THAT THE OBJECT WAS TO REDUCE
IMPORTS SO QUOTAS WOULD NEED TO BE RE-IMPOSED BY MORE STRINGENT
USE OF THE CTA SEMI COLON
(E) THIS WOULD VERY LIKELY LEAD TO A NEW PATTERN OF QUOTAS
WHICH COULD PERPETUATE THE CONSEQUENCES MENTIONED ABOVE OF
GREATER SHARE OF MARKET FOR EFTA, IRELAND AND NON-COMMONWEALTH
LOW COST COUNTRIES AT EXPENSE OF COMMONWEALTH, INCLUDING HONG KONG
SEMI COLON
(F) IN SITUATION OF FREE COMPETITION HONG KONG'S EXPORTS
OF YARN AND PIECEGOODS TO U.K. WOULD FORCE SEVERE PRICE CUTS,
AND PROBABLY A FALL IN QUANTITY AS WELL. TOTAL VALUE WOULD
DECLINE SIGNIFICANTLY. THIS IS PARTLY BECAUSE TARIFF HAS
MORE SEVERE EFFECT ON VALUE ADDED (1.E, EFFECTIVE TARIFF IS
HIGHER) IN THESE SECTORS AND THERE IS THEREFORE MORE ROOM FOR
E.G. PORTUGAL TO TAKE ADVANTAGE OF FREE ENTRY, AS THERE WOULD
ALSO NO LONGER BE INTERNAL REQUIREMENT TO USE HONG KONG YARNS
AND. PIECEGOODS IN WEAVING AND MAKING UP, LOWEST COST SUPPLIES
WOULD BE USED AND HONG KONG COULD BE VULNERABLE TO DUMPING
SEMI COLON
/(G) HONG
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