TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 65

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positive tariffs on many commodities where they now

enjoy free entry, and reverse preferences in favour of

members and associate members of the enlarged Communities

where they now enjoy preferences.

6. This would carry different implications for different

Commonwealth countries. The CET on many raw materials is

nil; and duty-free access to the United Kingdom market of

Commonwealth exports of such items as wool, iron ore,

tropical oil seeds, sisal, hides, skins and crude rubber

would not be impeded. Manufactured goods would, however,

be subject to the CET and this would apply particularly to

exports of such products from Canada, Australia, New Zealand,

the Asian Commonwealth countries and Hong Kong. The CET

would also apply to a wide range of tropical products, and

products subject to the Common Agricultural Policy would

have to face levies.

70 The Commission have proposed that there should be a

freeze on the application of the CET to those developing

Commonwealth countries secking association, until at latest

31 January, 1975 (the date of expiry of the present Yaoundé

Convention), to allow them to become a party to the arrange-

ments which will succeed the present Yaoundé Convention.

(For the countries potentially falling into this category see

paragraph 18 below). In this case the CET would not affect

them unless they refused association or their association

negotiations failed. A transitional period after 1974 might

have to be agreed for them, for the Six and for us.

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/(ii)