TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 88

0003230

G.F. 323

CONFIDENTIAL

Valuc

U.K.

$7.9 million

U.S.A.

$1.1 million

Sweden

$827 thousand

W. Germany

$678 thousand

Nigeria

$641 thousand

Tariff

nil

12.5% - 5 per lb. 56 plus 27.5%

13% a.v.

12.2% - 17% a.v.

4.8d. per sq. yd.

out of total exports valued at $12.7 million.

This item is still heavily dependent on the U.K. market mainly because of the more liberal quota arrangements that apply there compared with those that exist in the U.S.A. and W. Germany, two of Hong Kong's other important markets. Although exports have prospered in countries with substantial tariff barriers, the comments relating to grey cotton sheeting also apply to this item which, in addition, is especially vulnerable to increasingly sharp competition from blended fabrics Imposition of the 14%

16% C.E.T. would have serious effects on this item's export performance in the U.K. market.

Twill and sateen, cotton, grey (652 139)

No exact export figures for this item were available for 1961. In 1966, the principal markets were

Value

U.K.

$22.2 million

U.S.A.

$12.4 million

Australia

$3.5 million

Canada

$3.2 million

Tariff

nil

8.25% - 17% a.v.

171% a.v.

12.5%-25% a.v.

out of total exports valued at $45.4 million. Of the E.E.C. Member States West Germany took $687 thousand in 1966.

Although Hong Kong has achieved some success in surmounting high tariffs in the U.S.A., Australia and Canada, the lack of performance in the .E.C. seems to suggest that Hong Kong would be unable to compete with E.E.C. industry in the U.K. in the face of reverse preferences. There is little opportunity for expanding sales elsewhere as this item is subject to a quota of 21 million sq. yds. in the U.S.A. for 1966/67 (covering both grey and finished twill and sateen) and a quota of 5.7 million sq. yds. in Canada for 1966/67 (covering a wide range of grey fabrics), while the UK. quota 1967 is 36.7 million sq. yds. (also covering Jocastate drills, jeans and gaberdines).

Drills, cotton, grey (652 144)

In 1961, the principal markets for this item were

U.K.

U.S.A.

$39.1 million

$11.3 million

CONFIDENTIAL