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CHA
HKK 6/3.
19
Susta
FINANCIAL TIMES
cutting dated
22 NOV 1072
HK worry on textile preferences
BY PHILIP BOWRING
HONG KONG, Nov. 21.
THE RELEASE is expected now being phased out, was of thanks largely to demand from to the U.K-all the woven and within the next two days of the limited beneft.
an unprotectionis. Germany. If polyester collons-enter under British Government's reply to a Hong Kong's free trade posi- this continues, Hong Kong's bar- quota agreements. Hong Kong petition, sent in 'August, from tion, then, is to request not so gaining position on GPS will be holds an aggregate quota of over Hong Kong textile interests, much developing country weakened. But there are serious 270m. square yards of these Requesting urgent action to privileges in regard to textiles worries here that with Hong items in the British market. secure inclusion of the colony's but to avoid being disadvantaged Kong's relative, but not absolute, The effect of this is to restrict textiles and footwear in the in relation to its mainly Asian competitiveness declining in the hopeful new entrants to the face of Korcan and other Asian market, whether they enjoy
EEC's Generalised Preference competitors, such as Korea.
was
L
on
Scheme. The U.K. ** due to Though the EEC has never competition, GPS discrimination tariff preference or not. enter the EEC scheme on January officially stated its reason for could have serious long-term Colombia and Thailand. for 1, 1974.
opposition to Hong Kong's entry effects. Already the much instance, were recently placed The reply will doubtless con- to the GPS for textiles and foot smaller, and also much less under restraint in their textile tain plenty of soothing words, but wear, the main reason would efficient, Hong Kong footwear exports to Britain. it is likely to highlight once again appear to be that this would industry is suffering from GPS Finally, the GSP preferences the feeling in the colony that its upset the basis for calculating discrimination against it by Japan which will become available to interests take a very minor place CPS-the level of imports from and other countries. The Hong Kong's competitors in British bargaining in Brussels. the countries concerned in 1968, industry is now in its second suc- other items, notably shoes and Though on November 6, Mr. The entry of Hong Kong would cessive year of decline in exports. knitted garments, will be on the John Davies, Chancellor of the either demand an increase in
basis of duty-free tariff quotas. Duchy of Lancaster, stated that it GPS quotas, or a change in the
no longer acceptable for base system.
When these ceilings for 1974 It is not known U.K. view Hong Kong to be discriminated here whether the EEC has con
are announced they may prove against, Britain has apparently sidered
Dick Wilson adds: British less generous to the developing a change in the base failed to raise the question at which would allow Hong Kong officials argue that Britain did countries than liong Kong fears. recent Brussels discussions on to participate without raising the its duty to Hong Kong in 1971 by The base-year on which quotas 1974 GPS arrangements. It has total level of GPS imports-in insisting against bitter opposition are calculated is likely to be postponed arguing the colony's theory
a simple step which from the EEC Six on the colony's 1968, case for another year-until 1975 would merely add one more pro- inclusion in principle in the Com- advances by Hong Kong's com arrangements are being dis ducer to the ranks of those community's GSP scheme. The ex- petitors could not be consoli- cussed.
Hong Kong is net so much con- cerned to try to benefit from the GPS directly as it does not re- gard the REC'S Common External Tariff, which ranges from 13 to 17 per cent. for major replace the ten-year-old existing point out that there are three this matter is treading a careful textile items, as any great
one which covers only cotton reasons why the subjection of path between its obligations to barrier.
textiles.
these Hong Kong products to the UK. industry, to Hong Kong,
Opposition
at
its
peting in the GPS free-for-all.
clusion of textiles and footwear dated.
SO that more' recent
A further complicating factor, was the only condition on which Hong Kong shoe exports to however, is the negotiations, this was acceptable to the Six, Britain are in any case falling now proceeding intermittently in and now Britain itself must also for other reasons-by 12 per
cent. so far this year. Geneva under Gatt auspices, of abide by it.
agreement to
British Meanwhile,
traders The British Government in
223 new
textile
ups
It remains to be seen whether duty may not be as deadly as to its EE partners and to the the EEC can agree a common their counterparts in the colony developing countries.
British imports of Hong Kong Nor, necessarily, does it fear position on future quota levels fear.
which does not sacrifice develop- For one thing. Taiwan, which yarn, fabrics and made the inroads that GPS present quota level would have ing nation eports to the protec- is probably Hong Kong's knest exceeded £22m. in the first the
of the French
is in competitor,
also excluded. quarters of this year. The directly on its own sales. The tionism main fear is that EEC importers particular. For the moment at from EEC preferences.
clothing and footwear figures will divert their orders to GPS least, Hong Kong textile exports For another, a good half of were £87m. and £8m. respec- 'countries in the hope of getting to the EEC are flourishing, Hong Kong's textile shipments tively.
goods through the Scheme, which
operates on હૈ first-come-first served basis and is probably e more benefit to importing the to exporting countries.
Britain's inclusion in the EE scheme is seen as particularl; serious as the UK's previous lack of GPS for textiles placed all Commonwealth exporters on
while equal footing.
the Commonwealth Preference itself,
an
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