TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 71

0003230.

G.F. 323

CONFIDENTIAL

· 4-

Value

U.K.

$2.2 million

W. Germany

$2.0 million

15%

Burma

31.0 million

Tariff

nil

-

17% a.v.

unknown

France

$1.0 million

15% - 17% a.v.

U.S.A.

$850 thousand

MORE

13.5% - 44% a.v.

out of total exports valued at $11.3 million. In 1961, Hong Kong claimed that the application of the C.E.T. of 15%

17% a.v.

would have a serious effect on this item's export performance. But Hong Kong's export performance in the E.E.C. since then tends to suggest that such an argument is not altogether valid. Since the C.E.T. is to be reduced to 7.5% - 15% a.v. as a result of the Kennedy Round, loss of preference should not create serious difficulties.

Footwear (except slippers and house footwear) wholly or mainly of rubber (wellingtons, far boots, etc.) (851 013)

In 1961 principal export markets were

U.K.

$6.3 million

U.S.A.

$2.1 million

Canada

500 thousand

out of total exports valued at 10.5 million. principal markets were still

In 1966,

the

Value

Tariff

U.K.

07.1 million

nil

Canada

31.4 million

25% 27.5% a.v.

U.S.A.

$1.0 million

12.5% - 37.5% a.v.

but total exports had only risen to $11.6 million. Exports to the E.E.C. were valued at only $140 thousand, almost all which went to W. Germany. This industry's exports are still heavily dependent on the U.K. market and the imposition of the 20% a.v. C.E.T., which is not to be changed as a result of the Kennedy Round, may have a disturbing effect on them; Hong Kong manufacturers have pointed out that exports of this item suffered badly from the recent import surcharge in the U.K. In particular, they consider that Hong Kong will find it difficult to compete with Italy in the face of reverse preferences. But exporters, on the other hand, feel that the industry seems to have scope for improving its competitive position generally by increased automation for which this item is particularly suitable.

Slippers and house footwear, wholly or mainly of plastic materials 851 014)

This item was not included in the Department's 1961 exercise mainly because of the small value of total exports

CONFIDENTIAL