XN000022-1986-11-27 — Page 10

THURSDAY, NOVEMBER 27,

1986

SEVEN PRODUCTS EXCLUDED FROM EEC GSP

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SEVEN HONG KONG PRODUCTS WILL BE EXCLUDED FROM THE EUROPEAN ECONOMIC COMMUNITY'S GENERALISED SYSTEM OF PREFERENCES (GSP) FOR 1987, THE ACTING ASSISTANT DIRECTOR OF TRADE, MR S.S. TAM, SAID TODAY (THURSDAY).

THE PRODUCTS ARE PROTECTIVE GLOVES, IMITATION JEWELLERY, PORTABLE ELECTRIC LAMPS, QUARTZ WATCHES, DOLLS, OTHER TOYS, AND EQUIPMENT FOR PARLOUR, TABLE AND FUNFAIR GAMES.

HONG KONG'S EXPORTS OF THESE PRODUCTS TO THE EEC AMOUNTED TO $2 971 MILLION OR 13.7 PER CENT OF TOTAL EXPORTS TO THE EEC IN THE FIRST NINE MONTHS OF 1986,

THE DECISION WAS MADE AT A MEETING OF THE EUROPEAN COUNCIL OF MINISTERS HELD ON NOVEMBER 24-25.

FOUR PRODUCTS FROM SOUTH KOREA WILL ALSO BE EXCLUDED FROM THE PRIVILEGED TREATMENT.

MR TAM SAID THAT ALTHOUGH THE EXCLUSION OF THE SEVEN PRODUCTS WOULD REDUCE HONG KONG'S BENEFITS UNDER THE EEC GSP IT WAS UNLIKELY TO AFFECT TO ANY SIGNIFICANT EXTENT HONG KONG'S ABILITY TO EXPORT THESE PRODUCTS TO THE EEC OR TO COMPETE WITH OTHER SUPPLIERS.

+THIS IS BECAUSE THE QUOTAS OF DUTY-FREE GOODS ALLOWED FOR THE SEVEN PRODUCTS UNDER THE EXISTING GSP ARE VERY SMALL AND THE ADDITIONAL DUTY PAYABLE OF $9 MILLION FOR THESE PRODUCTS DUE TO EXCLUSION AMOUNTS TO ONLY 0.2 PER CENT OF THE VALUE OF TOTAL EEC IMPORTS OF THESE PRODUCTS FROM HONG KONG IN 1985, + HE SAID.

+IT IS ALSO UNDERSTOOD THAT THE EXCLUSION WOULD BE ACCOMPANIED BY A NUMBER OF IMPROVEMENTS IN BENEFITS FOR OTHER PRODUCTS. AS FULL DETAILS OF THE 1987 EEC GSP SCHEME ARE NOT YET AVAILABLE, AN OVERALL ASSESSMENT ON THE EFFECT OF THE ENTIRE 1987 SCHEME ON HONG KONG'S EXPORTS TO THE EEC IS NOT POSSIBLE AT THIS STAGE,+ HE ADDED.

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