CRE/903/74
BACKGROUND NOTE
1
Statistics of EEC/Hong Kong trade
1971 is the latest year for which full EEC(9) textile trade figures are available.
2
In 1972:-
a) Total UK textile imports (vam, fabric and made-ups) from
Hong Kong amounted to 286.5 million US dollars.
b)
c)
Total textile imports from Hong Kong into the other eight EEC countries amounted to (US) 302.5 million.
8
The UK took 48% of total EEC(9) imports of Hong Kong yarn, fabric and made-ups. Of this the UK took 79% of total EEC(9 imports of Hong Kong yarn and fabric, and 43% of total EEC(9) imports of Hong Kong made-ups.
d) Hong Kong provided over 19% of total UK textile imports,
but only 3 of total EEC (8) textile imports.
New EEC(9)/Hong Kong bilateral Agreement
•
Discussions at official level have now started in Brussels on a mandate for the negotiation of a bilateral agreement between Hong Kong and the enlarged Community. This bilateral agreement will replace the EEC(6) and UK agreements with Hong Kong for textile restraints which were negotiated under the previous and less liberal Long Term Arrangement for cotton textiles (LTA). The w bilateral textile agreements must have regard to the stricter criteria of market disruption embodied in the recently concluded GATT Multifibre Arrangement (MFA).
The negotiations for a bilateral textile agreement with Hong Kong cannot now be expected to take place until after the Commission's August recess. It is not yet possible to anticipate the final form of the Community's mandate. However, the UK, which has been less restrictive in its imports from Hong Kong than the original Member States, is concerned that in the formulation of all the mandates for such bilateral agreements with major supplying countries the EC(8) provides er ater access for textile imports than previously.
3
The EEC's Generalised Preference Scheme for Textiles
Along with other dependent territories, Hong Kong does not receive preferences on textiles (or footwear) in the LEC's generalised prefer- ence scheme. Accordingly she is placed at a disadvantage in relațion to her developing country competitors in Asia and has made strong representations to G about this.
It is one of our objectives in renegotiation of the GSP to remove discrimination against Hong Kong, as the Foreign Secretary's statement on 4 June made clear. We shall continue to press Hong Kong's case. It has to be recognised, lower, that despite this discrimination Hong Kong is one of the principal participants in the GSP Scheme of the enlarged Community, and certain other member states are not at all enthusiastic about adding to the benefits she secures from the EEC.