to make an exact calculation of the direct loss of exports to the U.S. undor (1) above; but an approximate calculation might be made as follows:
$ Million
Hong Kong s total exports to the U.S. in 1969 Deduct: exports of textiles and footwear: (not included in U.S. offer)
740
300
440
Deduct: radios, human hair wigs, cigarette lighters, etc. (not eligible under origin rules
86
At risk under Preferences Scheme
354
This figure includes some categories in which all exports would qualify for preference from the point of view of origin, but also others in which Varying proportions of exports would be in-
A fair estimate is eligible owing to excessive imported content. that in 1969, some $200 million of exports to the U.S. would have (The figure complied with an origin critorion of 50% added value, for 1970 might be $300 million.)
>
Some of the categories making up this figure arei
Total
exports to
Product
Proportion meeting..
origin criterion
1969 Million
V.S. Tariff
Toys and dolls
All
ස
83
124 to 33%
Transistors
A11
36
10%
Rettanware
Most
18
20%
Electrical Appliances
Mont
16
6 to 40%
Travel goods and handbags
Most
10
94 to 20%
Furniture
Most
7
3 to 28%
Batteries
Most
3
14%
Plastic flowers
Some
52
25%
Synthetic hair wigs
Some
35
11%
The above are all products which can be, and are being, The margin made in and exported from Taiwan, Korea and elsewhere, of superiority (quality or price) which Hong Kong products used to enjoy has in many cases already disappeared, and it is clear that even a small tariff differential would inevitably deflect
It seems likely that, purchases from Hong Kong to other countries.
as a result of discrimination, ilong Kong would lose at least half of the $250 million current exports to the United States that would have been eligible for preference, and would lose, in addition, the prospect of future growth in the above categories and in new ones.
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