TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 91

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CONFIDENTIAL

products from third countries.

The common external tariff

on the first two of these products has been reduced, thus

reducing the margin of preference available to the Associates).

5. The associated countries and territories in their turn are

required to give the same tariff treatment to all member states

of the Communities, and at no time should the treatment

accorded to member states be worse (it may of course be better)

than the treatment accorded to imports from any third country.

Under the first Yaoundé Convention associates were also

required in principle gradually to eliminate their customs

duties on imports from member states (by 15 per cent a year),

except that they were permitted to retain or to introduce such

duties as were required for fiscal purposes or to meet

development or industrialisation needs. The second Convention

takes account of the final elimination of these duties and

continues the arrangements for the retention or introducfion.

of fiscal duties.

6.

Associates are also required gradually to remove

quantitative import restrictions on imports from member states

(subject to certain exceptions permitted on grounds of public

morality, public policy etc.). Here also, however, they may

retain or impose quantitative restrictions if needed for

development or industrialisation, or to protect their balance

of payments. To the extent that associates maintain any

quantitative restrictions, they must open any quotas they

CONFIDENTIAL

/establish

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