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I HONG KONG AND THE EEC'S GS.P
The Commission's proposals for GSP in 1975
1
The Commission's original proposals for the 1975 GSP embody 2
major features - first a reduction of the number of "sensitive" items
subject to quota from 51 to 7. The quotas for these items would be
replaced by "ceilings" which unlike the former would not be divided
into shares for each Member State and duty reimposition would not be
automatic once the ceiling was filled. We welcome this development
as a measure of liberalisation and likely to improve the position of
smaller developing countries whose trade in the past was inhibited
by the rigid division into Member States sub quotas. Second there is
to be a tightening of the "butoir" system. For the products previously
subject to quota, "super competitive" countries will be restricted to.
15% of the ceiling or their 1974 level of preferential exports if that
is higher. Thus no beneficiary would be obliged to export less under
proferences in 1975 than 1974. Super competitive countries are defined
as those that have hit the butoir on a product in 1972 and 1973 or
who have supplied more than 40. of the Community's imports from all
beneficiaries of a product in 1972. We did not favour this aspect of
the proposals because of its restrictive nature but recognise that it
is the price demanded by other Member States for Improvements. Low
income countries are exempt from this provision; the concept of special
treatment for poorer countries is one we support.
2 Hong Kong, along with Yugoslavia is the beneficiary principally
affected by the cuper competitive provision. ühe will be subject to
the "special" butoin on 15 products covering cost of her G3P exports.
1