TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 150

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Community and its associates where they once had

preferences. Community products would tend to

replace Commonwealth products in our market.

(2) Common agricultural policy

Without special arrangements, acceptance of the

common agricultural policy with its protective system

of tariffs and levies and high prices for Community

producers would also be likely to lead to a decrease

in imports of temperate agricultural products from

the Commonwealth both through increased domestic

production and through the replacement of imports

from the Commonwealth by imports from the Community.

There are two special problems:

-

(a) The New Zealand economy is particularly

dependent on the British market (see country

brief).

Fortunately, it seems to be widely

recognised in the Community that New Zealand

is a special case requiring an exceptional

solution.

(2) Sugar A number of small Commonwealth

countries and dependencies (including Fiji)

rely heavily on sugar exports for their

livelihood.

The Commonwealth Sugar Agreement,

which is a commercial contract between the

Minister of Agriculture and Commonwealth sugar

producers and which runs until 1974, ensures

that these producers can sell agreed

quantities of sugar on the British market at

highly favourable prices. Sugar falls within

the common agricultural policy of the

Community, which is a net exporter.

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