TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 74

0903230

G. F. 323

CONFIDENTIAL

M

- 7

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Value

Tariff

U.K.

$6.1 million

nil

Trinidad and

Tobago

$1.0 million

15% a.v.

The

were the principal markets out of total exports valued at $9.9 million. Exports to the E.E.C. (W. Germany and the Netherlands only) were valued at only $64 thousand. imposition of a 16% C.E.T. in the U.K. could have a serious effect on export performance in that market even though the tariff will be reduced to 8% as a result of the Kennedy Round. For example, Hong Kong is unlikely to be able to compete with Italy in the face of reverse preferences or with low-cost suppliers such as Spain, Taiwan and various Eastern European countries.

Photographic cameras (other than cinematograph) (861 401)

In 1961, the industry considered that there was little prospect of increasing sales to Europe against the C.E.T. Exports to the E.E.C. at that time were virtually non-existent, and the U.K. was the only market of substance ($4.2 million out of total exports valued at $5.1 million), In 1966, however, the position had changed and

Value

Tariff

U.K.

4.3 million

nil

U.S.A.

$4.0 million

15% - 20% a.v.

E.E.C. (mainly

W. Germany)

$1.2 million

15% a.v.

were the principal markets out of total exports valued at $13.9 million.

Since exports to the U.S.A. and W. Germany have succeeded in crossing tariff barriers of 15% - 20% e.v., the industry's 1961 assessment appears to have been unduly pessimistic. Imposition of the C.E.T. of 18% a.v. (13% after Kennedy Round cuts) in the U.K. now, however, would probably affect export performance in that market slightly, at least in the short term. But the industry agrees that, on the whole, loss of preference should not create too serious a problem.

Binoculars and refracting telescopes n.ë.s. (861 310)

In 1961, the principal market for this item was the U.K. which accounted for 1.4 million out of total exports valued at $1.7 million. The only company involved stated then that they were not particularly worried about imposition of the C.E.T. in the U.K. as they had just broken into the W. German market and expected to obtain reasonable results there and possibly elsewhere. This optimism seems to have been justified for in 1966 the principal markets were

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CONFIDENTIAL