RECEIVED IN REGISTRY NÁ. E 1
SSDEC 1971
R.GLARYNɔ$1
71
HKK6/540/3
10
Wednesday, December 1, 1971
COMMONWEALTH PREFERENTIAL TARIFF TO BE PHASED OUT
By Gradual Imposition of E.E.C. External Tariff
*
126.
The Commonwealth preferential tariff in the United Kingdom will
be phased out by the gradual imposition of the E.E.C. common external
tariff if and when Britain enters the European Economic Community in
January 1973.
This was said today by the Financial Secretary, the Hon. C.P.
Haddon-Cave, in the Legislative Council. He was replying to the Hon. Dr.
S.Y. Chung.
He said the phasing out process would start on January 1, 1974
when tariffs on Commonwealth products would be increased by 40 per cent of
the difference between their previous levels and those of the common
external tariff.
There would be a further increase to 60 per cent on January 1,
1975, and to 80 per cent on January 1, 1976. The full common external
tariff would be applied to Commonwealth products from and after July 1, 1977.
Mr. Haddon-Cave said although Commonwealth preference in Britain
would be phased out in this manner, both the existing E.E.C. and Britain
had included Hong Kong as a beneficiary in their schemes of generalised
preferences for developing countries.
"This is one offsetting benefit which I think Hong Kong has gained
as a result of the negotiations for British entry."
As regards preferences granted to Hong Kong by Commonwealth countries
other than Britain, the future was something for the countries themselves
to decide as they were not required to abolish such preferences after
Britain had entered the E.E.C.
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