TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 100

CONFIDENTIAL

Annex TV

Trade Provisions of the Association Convention

Import Duties

In return for benefiting from the gradual reduction and

eventual elimination of inter-EEC duties (and from the immediate

application by the EEC of the Common Tariff, with zero duties for the Associated States, for certain tropical products, including coffee and cocoa) the obligations on the Associated

States are:

(i) Within six months of the entry into force of the Convention,

the Associates must accord "identical" tariff treatment to

imports from the EEC member states, i.e. abolish any preferences

which they at present give to one Community member over another

(ii) With the exception of duties needed to meet their development or industrialisation needs or required for budgetary purposes (and

there is provision for consultation in the Association Council about the duties to be retained for these purposes), the

Associates must reduce their duties on imports from the EEC by

15 per cent annually, beginning from the seventh month after

entry into force of the Convention.

Export Duties

The Associated States are not prohibited from imposing

export duties, but in so doing they must not discriminate between

EEC members, nor can they give more preferential treatment to any

third country.

CONFIDENTIAL

Quantitative Restrictions