TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 75

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G.F. 323

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Value

U.S.A.

$4.7 million

U.K.

$4.5 million

Italy

$2.6 million

$2.2 million )

W. Germany

Tariff

17.5% - 30% a.v.

nil

C.E.T. 20% a.v.

In fact, the trade has now become much less dependent on the U.K. market and the industry agrees that the adoption of the 20% C.E.T. should not present difficulties, particularly as this tariff is to be reduced to 13% a.v. as a result of the Kennedy Round.

Polyethylene packing bags (893.003)

In 1961 the principal markets for this item were

U.K.

$1.0 million

Malaya

U.S.A.

$670 thousand

$420 thousand

out of total exports valued at $3.2 million. the main export markets were

In 1961, however,

Value

Tariff

U.K.

Australia

3.0 million

$1.4 million

nil

121% - 221% a.V.

U.S.A.

$1.0 million

121% - 15% a.v.

out of total exports valued at $8.3 million. E.E.C. came to only $26 thousand.

Exports to the

Exporters claim that the 22% C.E.T. is the main reason for the poor export performance in the E.E.C. Although the tariff is to be halved as a result of the Kennedy Round, they consider that Hong Kong cannot compete with low-cost automatic production in E.E.C. countries or with cheap Japanese and S. Korean products.

Toys (excluding dolls), plastic, not containing electric motors. (894 235)

This item was not separately classified in 1961.

In 1966, the principal markets for this item were

Value

Tariff

U.S.A.

U.K.

$149.2 million

$75.8 million

35% a.v.

nil

Canada

$19.1 million

30% a.v.

CONFIDENTIAL

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