TNAG-0462-FCO40-527-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 93

RECEIVED IN

Reference....

FILE NOTE:

EEC BUTOIRS

1.

REGISTRY No. 51

-4 FEB 1974

HKK 6596/1

PA HKK 6/598/1

There is an overall quota for each individual item imported into the EEC's GSP. About 42 products have quotas. Each country has a share of the total quota.

2.

The Butoir is the percentage limit of the quota which beneficiary country can export within the total quota. The beneficiary countries are the group of 77 (less Hong Kong for textiles and footwear). DTI comment that the Butoir system is infact just another protective device, but the rationale is that without the Butoir system the front runners could take the entire trade. For the most sensitive items the percentage is 20% which we managed to have increased in several cases to 30% (with Hong Kong's interests in mind), up to 50% in the less important categories.

3. There is a different quota different Butoir for each product.

4 February 1974

ellow