TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 96

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Value

Tariff

nil

U.K.

$2.8 million

Canada

$525 thousand

25% a.v.

U.S.A.

$364 thousand

W. Germany

$178 thousand

30.5% - 40% a.v.

17.1% a.v.

In 1961, the

but total exports had declined to $4.9 million. trade considered that there was little prospect of expanding sales to Europe against the C.E.T. What appears to be an already declining trade will probably be seriously affected if the U.K. adopts the C.E. T. of 14% 23% even though the tariff will be halved as a result of the Kennedy Round.

Shirts, knitted or crocheted, wholly or

mainly of cotton 841 431

In 1961, the principal markets for this item were

U.K.

U.S.A.

$11.4 million

$10.9 million

In 1966, the

out of total exports valued at $42.3 million. principal markets were still

May

U.S.A.

U.K.

Value

29.0 million

$19.6 million

Tariff

25% a.v. (not ornamented) 42.5% a.v. (ornamented)

nil

but the position of the markets had changed while total exports had increased to $67.1 million. Of the E.E.C. Member States, West Germany and Italy each took $1.2 million in 1966.

Although exports of cotton knitted shirts are subject to quota restrictions in the U.S.A. but not in the U.K., this item seems to have become less dependent on the U.K. market now than in 1961. As Hong Kong has succeeded in surmounting the high U.S. tariff, and in view of its performance in the Community, the 21% C.E.T. (17% after the Kennedy Round cuts) should not present too much difficulty in the U.K. market. In addition, exporters believe that Hong Kong at present exports lower quality knitted shirts to the U.K. and there is scope for the industry to move into higher quality ranges (such as those now being exported to the U.S.) which would be less susceptible to direct competition from low-cost suppliers such as Taiwan and Portugal.

Under garments, knitted or crocheted, not elastic nor rubberised, wholly or mainly of cotton, women's and girls' wear, n.e.s. (841 442)

As girls' under garments were classified under "children's wear" in 1961, no exact export figures for this item were available for that year.

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