TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 204

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5.

in value; but

(ii) during the same period Hong Kong's total exports of

footwear to countries which maintained discrimination

(iii)

against Hong Kong showed a sharper decline of 40.6% in

quantity and 21.2% in value; thus

the inclusion of Hong Kong footwear in GSP will

unlikely boost its footwear exports but continued

exclusion will certainly accelerate its rate of decline.

The following paragraphs analyse the trend of Hong Kong.

exports of footwear to markets before and after the introduction

of the various GSP discriminations.

EEC

6.

The EEC (Six) GSP was the first to be introduced by

any OECD country. It commenced on 1 July 1971 and excluded

Hong Kong in footwear. The statistical analysis at enclosure 1

is only confined to Hong Kong exports to EEC (Six) since U.K.,

Denmark and Ireland did not adopt the enlarged EEC scheme until

1 January 1974.

7.

In 1970 and 1971, exports of footwear to the EEC (Six)

amounted to HK$50.1 million and 65.8 million respectively. It

took a downward turn in 1972, the full year of the EEC GSP, when

exports dropped by 15.7% to HK$55.5 million. This downward trend

continued in 1973 when exports dropped by 40.2% in value to

HK$33.1 million. The decline was even sharper in terms of quantity,

the rate of decrease being 20.9% in 1972 and 45.6% in 1973.

/Swiss GSP

i