TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 38

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27.6

Import of Textiles from Hong Kong

into the United Kingdom

You asked for details of the position regarding the import of textiles from Hong Kong into the United Kingdom.

2. At present synthetic (mmf) textiles can be imported into Britain from Hong Kong without limitation but they are subject to the appropriate tariff under Commonwealth preference arrangements. In the case of cotton textiles, the import of these is restricted to quotas agreed under the Heads of Agreement between the United Kingdom and Hong Kong which is about to be extended up to 31 December, 1971. Under this arrangement imports against the quota are free of duty. With effect from 1 January, 1972, however, imports of cotton textiles will be subject to the tariff as in the case of synthetic textiles.

3. In our offer to UNCTAD, Britain has excluded textiles from generalised preferences. This will result in Hong Kong having an advantage over competitors such as Taiwan and South Korea who are subject to the full tariff while Hong Kong en joys Commonwealth preference. This advantage, however, will be lost to Hong Kong when Britain joins the EEC when the latter's common external tariff will be applied to all imports equally except, of course, where developed countries have been granted generalised preferences.

Kinnear.

(G.F. Kinnear) 20 October, 1970

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