(109/E
Comment on European Commission's tentative proposala
on terms for the inclusion of Hong Kong in a scheme
of generalised preferences for the exports of
developing countries to the EEC.
It is understood that the tentative proposal is as follows.
Hong Kong would not be included in the general scheme but would
be accorded preferences, item by Item, equal to 5 per cent of
the greater part of her present exports to the Communi. These
preferential quotas would be operated at the importing enā
and would presumably be divided among the Member States.
total of these duty quotas, on the basis of current trade, would
amount to some $5 million 6 million.
Comment
The
2. It seems unlikely that duty quotas on such a small proportion
of trade would have any real economic effect. As the quotas
would be allocated to importers the most likely effect wouLA
probably be to allow these importers to take a somewhat la.or
profit margin on the trade concerned. Furthermore the con、ost,
being based on existing trade, appears to be a static one.
The more Hong Kong sells at present over existing tarifes the
bigger the duty quotas will be and the less she sells the more
The preference will therefore be sm limited they will be.
Lor
on less competitive products and there will be no incentiv
this sulume for Hong Kong to diversify into new products, a there
would be for other developing countries participating in thu
general scheme.
3. From this it would seem that Hong Kong would only be permitted
a token participation in preferences in the Community so that, On political grounds, it cannot be said that she has been totally
excluded and that the principle of auto-selection has therefore
been irrevocably breached. Nevertheless, there would still be
very considerable discrimination against Hong Kong compared with
her competitors among developing countries which would not be
The position suggested based on any agreed objective principles.
/would
No comments yet.
Private notes are available after approval.