TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 74

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(B) THE TARIFF WILL ENABLE EFTA AND IRISH SUPPLIERS (AND ESPECIAL-

LY PORTUGAL) TO GAIN A BIGGER SHARE OF THE MARKET AT THE EXPENSE

OTHER LOW COST COUNTRIES NOW SEVERELY

OF THE COMMONWEALTH.

RESTRICTED BY GLOBAL QUOTA, SUCH AS TAIWAN AND KOREA, WOULD ALSO

BE EXPECTED TO GAIN A BIGGER SHARE SEMI COLON

(C)

THIS FIGHT FOR THE MARKET COULD LEAD TO CONSIDERABLE FALLS

IN PRICES. THIS WOULD HAVE DISRUPTIVE EFFECTS IN BOTH BRITAIN

AND SUPPLYING COUNTRIES. OVERALL EFFECT WOULD BE THAT IMPORTS

WOULD NOT BE REDUCED BUT WOULD MORE LIKELY INCREASE SEMI COLON

(D) BUT THE REPORT, INDICATED THAT THE OBJECT WAS TO REDUCE

IMPORTS SO QUOTAS WOULD NEED TO BE RE-IMPOSED BY MORE STRINGENT

USE OF THE CTA SEMI COLON

(E) THIS WOULD VERY LIKELY LEAD TO A NEW PATTERN OF QUOTAS

WHICH COULD PERPETUATE THE CONSEQUENCES MENTIONED ABOVE OF

GREATER SHARE OF MARKET FOR EFTA, IRELAND AND NON-COMMONWEALTH

LOW COST COUNTRIES AT EXPENSE OF COMMONWEALTH, INCLUDING HONG KONG

SEMI COLON

(F) IN SITUATION OF FREE COMPETITION HONG KONG'S EXPORTS

OF YARN AND PIECEGOODS TO U.K. WOULD FORCE SEVERE PRICE CUTS,

AND PROBABLY A FALL IN QUANTITY AS WELL. TOTAL VALUE WOULD

DECLINE SIGNIFICANTLY. THIS IS PARTLY BECAUSE TARIFF HAS

MORE SEVERE EFFECT ON VALUE ADDED (1.E, EFFECTIVE TARIFF IS

HIGHER) IN THESE SECTORS AND THERE IS THEREFORE MORE ROOM FOR

E.G. PORTUGAL TO TAKE ADVANTAGE OF FREE ENTRY, AS THERE WOULD

ALSO NO LONGER BE INTERNAL REQUIREMENT TO USE HONG KONG YARNS

AND. PIECEGOODS IN WEAVING AND MAKING UP, LOWEST COST SUPPLIES

WOULD BE USED AND HONG KONG COULD BE VULNERABLE TO DUMPING

SEMI COLON

/(G) HONG

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