TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 73

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G.F. 323

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Footwear (except slippers and house footwear) with textile uppers and soles of rubber, 851 025)

In 1961, the principal export markets were

U.K.

U.S.A.

Canada

Benelux

$30 million

$5.4 million

$4.2 million

$3.2 million

$2.7 million

W. Germany

out of total exports valued at $52.8 million. In 1966, the same countries remained the principal markets but the order had changed

to

+

Value

U.K.

$38 million

Tariff

nil 20% a.v.

(depending on the

element of man-made fibres in the textile component)

14. .5% a.v.

15% a.v.

W. Germany

39.1 million

U.S.A.

38.3 million

Canada

35.4 million

25%

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Benelux

35.0 million

27.5% a.v.

20% a.v.

Assuming that most

out of total exports valued at $79.5 million. of the exports to the U.K. within the scope of this statistical item are tennis shoes and plimsolls with canvas uppers and therefore entitled to duty-free entry, imposition of the 20% C.E.T. (also to remain unchanged as a result of the Kennedy Round), although perhaps leaving a substantial trade in being, could clearly affect export performance in the U.K. market, particularly in the face of reverse preferences favouring Italy and of increased competition from Eastern European countries, Taiwan and South Korea. Hong Kong manufacturers tend to agree with this view although certain exporters consider that, as Hong Kong is already competitive in many markets without preference, the industry should not suffer undue hardship provided it is given adequate warning of the loss of preference.

Footwear (except slippers and house footwear) with leather uppers and soles of rubber (851 028)

This item was not separately classified in Hong Kong trade statistics until 1964. Before then it had been included with a number of other items in the "leather footwear not elsewhere specified" category. In 1966, however, separate classification indicated that

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CONFIDENTIAL