43.
(iii)
(iv)
(x)
CONFIDENTIAL
the EEC's generalised preference scheme which the UK will adopt on 1 January 1974 provides duty-free access for the Asian Commonwealth's exports of manufactured goods (this treatment is subject to fairly limited quotas in the case of a substantial list of "sensitive" products). In October 1972 the Community's Heads of State stated that they intended to improve the EBC's system of generalised preferences and the High Level Group is at present examining means of implementing this decision.
we expect enlargement to increase the prosperity of the nine EEC countries, and therefore their need for imports from the developing countries.
under the Declaration of Intent to the Asian Commonwealth (Annex B) the enlarged EEC has declared its readiness to seek solutions, in consultation with the countries concerned, to any trade problems that may arise.
However, the different circumstances of the countries covered by the Declaration - India, Pakistan (and now Bangladesh) Sri Lanka, Malaysia and Singapore make it essential to consider them separately.
India
44. The UK is the 4th largest market for Indian products. In 1971/2 Britain imported 11% of India's exports whereas only 8% of India's exports were marketed in the six countries that then made up the EEC.
In 1972* UK imports from India totalled £112 million. Major commodities were
tea
leather
tobacco
cotton fabrics
jute fabrics
£25 million
£12 million
£9 million
£7 million
£4 million
45.
animal feeding stuffs
sugar
£4 million
€1.6 million
Of these products, the common customs tariff on bulk tea is suspended at zero. Leather is included in the EEC's generalised preference scheme. Indian unmanufactured tobacco is already subject to revenue duty of about £5 a lb. The Common Customs Tariff to be applied to Indian tobacco will add 6.6p a lb to this. (Indian tobacco is highly competitive with N American tobacco and (unlike European or Mediterranean Associates' tobacco) is of the Virginian flue-cured type smoked in the UK market. Indian tobacco growers are concerned that the East African Associables, who will not be subject
Source:
Indian export statistics * Source: UK import statistics
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