V
HONG KONG
V Reverse Preferences and the USA's GSP
1.
The USA believe in liberating international trade and disapprove of
agreements such as reverse preferences. They feel that reverse preference
discriminate against all other country exporters, help the developed
limit
nations rather than the developing ones, and developing nations choice
of market. Any country wishing to benefit from the USA's GSP would
have to phase out its reverse preferences by the end of 1976 at the
latest.
2. While welcoming the USA's introduction of a GSP scheme we are con-
cerned that the conditions of eligibility for the scheme, requiring the
loss of reverse preference schemes at present in use, could deprive a
number of Commonwealth developing nations of preferential access to the
US market on the same basis as other countries.
This concern is strongest
over the Caribbean countries. We would wish the USA's GSP to be more
flexible on this point.
3. Hong Kong however benefits relatively little from reverse preferences,
since she is a free port.
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