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27. In general terms Hong Kong also has excellent trading
links and access to markets on the West Coast of the USA.
With its low cost production and geographical location
Hong Kong could well enable a UK manufacturer to develop
markets there which would be unattainable from their UK
manufacturing base.
III. Hong Kong/EEC Textile Negotiations
28. The current HK/EEC Textiles Agreement which covers the
five years from 1978 is due to expire at the end of 1982.
This is a very restrictive agreement which in general limits
exports from Hong Kong to the 1976 import levels. Under
this agreement, Hong Kong's established access rights in
certain categories were substantially cutback. To quote
an example, the 1978 Community quota limit for Hong Kong
in respect of cotton woven fabrics was well below the limit
agreed for the UK alone in 1959.
29.
Negotiations with the Commission of the EEC for a new
agreement have started. Two rounds of negotiations were held in Brussels in June and September 1982 respectively.
30. When drawing up its textile mandate, the EEC classified
Hong Kong as a 'dominant supplier', along with Korea, Macau
and Taiwan. The EEC has indicated that its new agreement
with Hong Kong should comprise the following restrictive
elements:
(a)
(b)
cutbacks of about 12% on the 1982 restraint
limits for 5 'sensitive' categories of products (woven and knitted shirts, trousers, blouses and sweaters) which make up some 70%
of Hong Kong's apparel exports to the EEC;
minimal growth rates (ranging from 0.1% for
the 'sensitive' categories to 3% for some of the less sensitive categories);
(c) ....../-