TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 89

CONFIDENTIAL

Annex II

Yaoundé Convention

The provisions of the Convention can be summarised under

three headings: trading arrangements, financial and technical

assistance, and institutional mechanisms.

Trade

2. The Association is essentially an economic arrangement,

and the provisions for trade are the backoone of the system.

Theoretically the Association aims to establish a series of

free trade areas between the Community on the one nand and each

of the Associates separately on the other, providing for the

elimination of tariffs and other oarriers to trade pe tween them.

But there are important provisions permitting associates to

maintain tariffs and other barriers to trade against EEC

countries in certain circumstances (described below). Further-

Decause the arrangement is basically a series of free

trade areas and not a customs union, the associates are allowed

to retain their own tariffs against third countries, including

each other, and they are not required to adopt the Communities'

common external tariff.

3. Under the first Convention, which ran from 1964 to

1969 all the EEC countries were required to remove oy stages

their customs tariffs and other restrictions on imports from

the associates other than those applying to those agricultural

products which are, or will be, covered by the Communities'

common agricultural policy. All EEC countries' tariffs on

(non-agricultural) imports from the existing associates mad

/been.

CONFIDENTI AL