TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 93

0001230

G.F. 323

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8

out of total exports valued at $23.8 million.

This item is subject to quota restrictions in these three marketa. But the relevant quotas are large as they cover a number of different products. The item is not heavily dependent on the U.K. market and Hong Kong has achieved considerable success in surmounting the U.S. and German tariffs. However, performance in the U.K. market could be adversely affected by loss of preference because, according to Hong Kong manufacturers, it is difficult to compete in this item with U.K. industry even with preference protection.

Car coats, wholly or mainly of cotton, not

rubberised, men's and boys' wear (841 124)

This item was not separately classified in 1961.

In 1966, the principal markets were

Value

U.K.

$4.5 million

Sweden

$683 thousand

W. Germany

$534 thousand

nil

Tariff

13/6d. per lb. or 30% a.v. which- ever is the higher

13% a.v.

16% a.v.

out of total exports valued at $6.2 million.

Exports of car coats fall within categories of outer garments that are subject to export restraint not only in the U.K. but also in the U.S.A. and W. Germany. As restraint levels in the latter two countries are much lower than in the U.K., the trade is mainly dependent on the U.K. market, and performance there may be affected by the imposition of the 20% C.E. T. (17% after Kennedy Round cuts).

Raincoats, wholly or mainly of cotton, not rubberised, women's and girls' wear (841 155)

This item was not separately classified in 1961.

In 1966, the principal markets were

Value

Tariff

U.K.

$12.2 million

nil

W. Germany

$2.8 million

16% a.v.

U.S.A.

$1.5 million

20% a.v.

out of total exports valued at $17.1 million.

Although some sales have been made to W. Germany and the U.S.A., performance in these markets still lags considerably behind that in the U.K. on which this item is heavily dependent. Imposition of the 20% a.v. C.E.T. (subject to slight reduction in the Kennedy Round) is likely to cause considerable difficulties.

CONFIDENTIAL