TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 94

0001230

G. F. 323

CONFIDENTIAL

9.

Car coats, wholly or mainly of cotton, not rubberised, women's and girls' wear (841_156)

This item was not separately classified in 1961.

In 1966, the principal markets were

Value

Tariff

U.K.

$1.5 million

nil

<

13/6d. per lb.

or 30% a.v. which-

ever is the higher

Sweden

$120 thousand

15%

out of total exports valued at $1.7 million.

This item is also almost entirely dependent on the U.K. and the adoption of the 20% C.E.T. is likely to cause serious

difficulties.

Dress shirts, not knitted or crocheted, wholly

or mainly of cotton 841 163)

This item was not separately classified in 1961.

In 1966, the principal markets were

Value

Tariff

U.K.

$34.7 million

nil

U.S.A.

$28.0 million

25% a.v.

W. Germany

$14.7 million

16% a.v.

out of total exports valued at $103.6 million. In all these markets quota restrictions are currently in force. The quota levels covering all cotton woven shirts are

U.K.

U.S.A.

W. Germany

-

24.5 million sq. yds.

(1967 level)

27.4 million sq. yds.

(1966/67 level)

17.5 million sq. yds.

(14 months 1966/67)

Although the U.S. restraint level is larger than the U.K. one in terms of square yardage, it is less valuable in terms of dozens. This is because actual yardage used in manufacture is deducted from the U.K. restraint level, while for the U.S., conversion factors are used to translate dozens into square yards.

Hong Kong has found little difficulty in surmounting the 25% U.S. tariff. But the effects of loss of preference and the imposition of the 20% C.E.T. (17% post Kennedy Round) on this item are particularly difficult to assess because of the move towards mixed cotton/man-made fibre blends which are already subject to high tariffs in the U.K. However, the industry claims it will be seriously affected as a result of increased competition from U.K. domestic industry producing shirts of synthetic materials.

CONFIDENTIAL