SOUTH KOREA, WHICH DOES ENJOY TEXTILES PREFERENCES,
QUITE CLEARLY SEEN.
CAN BE
IT HAS BEEN STATED THAT THE DUTY-FREE
QUOTAS FOR TEXTILES ARE SO SMALL IN THE EEC IN RELATION TO
OVERALL IMPORTS THAT SUCH DIVERSION CANNOT BE MEANINGFUL.
THIS IS REGRETTABLY NOT THE CASE.
23. IMPORTERS WHO HAD PREVIOUSLY PLACED ORDERS IN HONG
KONG HAVE BEEN DIVERTING TO OTHER BENEFICIARIES AND THESE
DIVERSIONARY ORDERS HAVE NOT BEEN CONFINED IN VOLUME TO
EITHER THE DUTY-FREE TRADE OR TO THE MOST SENSITIVE ITEMS.
THIS IS BECAUSE IMPORTERS HAVE NATURALLY FOUND IT
ADVANTAGEOUS TO PLACE LARGE AND EXTENSIVE ORDERS WITH
SUPPLIERS ON WHOM THEY CAN RELY FOR AT LEAST PART OF THE
TRADE ARRIVING DUTY-FREE AND THUS WITH INCREASED PROFITS
RATHER THAN CHOP AND CHANGE BETWEEN SUPPLYING COUNTRIES.
THIS EFFECT IS CUMULATIVE.
24. HONG KONG IS WELL-KNOWN TO ALL, I AM SURE, FOR
ITS COMPETITIVE THRUST, FOR EXAMPLE, IN THE MARKETS FOR ·
NEVERTHELESS, WHILST OUR TRADE IN THIS
NON-COTTON SHIRTS.
ITEM TO ONE MEMBER STATE OF THE COMMUNITY ONLY GREW BY LESS
THAN 10% BETWEEN 1972 AND 1973, THE IDENTICAL TRADE FROM
SOUTH KOREA TO THE SAME MARKET INCREASED BY OVER 300%.
IN ABSOLUTE TERMS KOREA ADVANCED FROM A VOLUME OF LESS THAN
HALF THE HONG KONG TRADE IN 1972 IN THIS MARKET TO ONE OF
/CONSIDERABLY MORE
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