14.
6.
in other markets would at least compensate
them for the loss of preferences in the U.K.
It is therefore worth considering what advantages or
difficulties there might be for us in adopting the EEC's working
hypothesis of duty free entry limited by means of duty quotas
fixed by a formula applied to all products as the basis for a
revised and more definitive U.K. offer.
The EEC's duty quota proposals
7. The submission tabled by the EEC states that the general
nature of their offer is that on all manufactured and semi-
manufactured industrial products in Chapters 25-99 of the BTN
from developing countries they are prepared to grant duty free
entry. Although this will be the general rule they reserve the
right to make a very limited number of exceptions following the
discussions with other donors in 0.E.C.D. The Preferential
imports from developing countries will receive duty free entry
only within quota limits calculated by value for each product
according to a standard formula that will according to the
submission apply to all products. Furthermore, no developing
country will in general be allowed to exceed 50% of the total
quota fixed for a product, in order to reserve a substantial
part of the quota for the less competitive developing countries.
The proposed formula is stated only in very general terms. On
each product it will consist of two elements: a basic amount
and a supplementary amount. The basic amount will be the value
of the imports on a c.i.f. basis from beneficiary countries in
a recent year (say 1967). The supplementary amount will be 5%
of the c.i.f. value of imports from all other countries. Although
the EEC indicate they may vary the method of calculation after
the system has been in operation for a few years, their present
/intention
No comments yet.
Private notes are available after approval.