TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 74

CONFIDENTIAL

ANGLO-JAPANESE TRADE

(Background Note

ANNEX A

PART I

The Anglo-Japanese Commercial Treaty

A

The 1962 Commercial Treaty with Japan enabled us to

enter into a full GATT relationship with her. Japan agreed

to operate voluntary restraint on the export of certain sensitive items to the U.K. (now reduced as a result of

negotiations to some non-cotton textiles and pottery). 'safeguard' protocol enables either side, unilaterally, to impose import controls on disruptive imports if a problem

arises which can not be solved by agreement, though this

power has never been used.

Residual import Controls

2.

1

Global import controls still mainting by Japan on

number of ite us have recently been cut substantially and are

due for further reductions. Or goods with export prospects

for us only confectionery, leather and footwear are among

the items on which the Japanese are not yet ready to offer

liberalisation.

Proposals for Removal of Controls

3. The Japanese market is expanding rapidly and although

we have succeeded in doubling our exports from £70m in 1966

to the current annual rate of £150m in the first half of this

year, prospects for further growth would be enhanced by

removal of the remaining trade restrictions.

In negotiations

begun in 1969, we have offered to release Japan progressively

1

CONFIDENTIAL