TNAG-0135-FCO40-171-Tariff-preferences-for-developing-countries-1969 — Page 199

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manufactures and semi-manufactures under SITC sections 5-8 with

the exclusions listed in paragraph 16 above. In the case of the

U.K. existing imports from beneficiary countries of these goods

are $262m.; 5% of imports from other non-beneficiary countries

excepting EFTA and the CPA are $260m. The total value of the

duty quotas would therefore be $522 m, or about twice the

existing volume of trade. In the case of the EEC their imports

from beneficiary countries are $1,164m and 5% of their imports

from all other countries except intra-Community trade, are $52600.

The total value of their duty quotas would therefore be 1,690mg

which is 50% more than existing trade and rather more than three

times the total of the U.K.'s total quotas. Looked at this way

the figures are not grossly out of proportion in comparison with

the size of the markets. However, total figures of this sort are

pretty misleading in that it is not proposed to control all

imports enjoying preferences by means of duty quotas but only

those that are judged to be sensitive.

Nevertheless, there is

some presentational importance in being able to demonstrate whether

the formula as applied to all preferential trade is fair in

comparison with the offers of the EEC. Since a number of

anomolies and difficulties are clearly revealed by the few figures

produced so far, it would be necessary to examine the statistical

picture more closely, preferably in relation to a proposed list

of sensitive products.

19. The next set of questions therefore relates to what products

we should decide are sufficiently sensitive to imports from non-

Commonwealth developing countries for inclusion in the sensitive

list on which duty quotas would be rigidly enforced. The first

approach to this problem would be lists of exceptions to duty

free entry that we tabled on 1st March. The only important items

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