TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 58

(e) THE ADOPTION OF THE EMC'S GOP BY THE UK AND THE EFF LOT,

OF THIS CN HONG KONG

(1) General other than textiles and footwear

The revised scheme, to come into effect on 1.1.74, will show some improvements over the present scheme of the ix, in the direction of grater liberalisation, and in some areas those improvements should, and could, be of some benefit to long Kong. The main improvements will be:-

(1) a general raising of "ceilings" which limit the tariff concessions for rengitive products in the industrial sector, arising from the use of 1971 rather than 1968 as the base year for the calculution. The Commission have sted that overall this has produced an uplift in ceilings of about 40. But this is the overall position and rives no indication of the level of change for individual items which will vary substantially. Thus, although this can be used as a general pointer to increased liberality in the scheme, it is not possible to cite this as an indication of any specific benerits for long long.

(81) to uplifting of the butoirs (limiting the shame of tarifi free cuctus which can be enjoyed by any one beneficiary country) from 20 to 30%. There are fourteen products in this cute, ory of which seven are of significant intercnt to long long. of these products, with an indication of the mea urc of improvement vis a vis Hong Kong, is attached.

ligv

(iii) the removal of certain items from the list of sensitive products. e have achieved less than we might have hoped for here; only nine items have been so downgraded und of those only three involve any significant Hong Long trade. we canno5, therefore, hope to get much mileage out of this.

(iv)

some improvements in the coverage and depth of t rifr cut for processed agricultural products. The improvements full far short of our aspirutions but this is not en are where there is any significant long long interest.

On the other side of the coin, in te cae of three sensitive items in the industrial succor where Hong Kong is evorenely competitive, the normal basis for calcul: ting the tariff quote has been varied so as to exclude hong kong imports. -nis does not result in discrimin: tien against Hong kong, in the sence thas Hong Kong can still share equally in the quotus. does mean that the necess is more restricted than otheruise would have been the case for items where Long Kong her a major interest/