TNAG-0632-FCO40-780-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 97

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62%.

21

Importa from Hong Kong dropped by 11.9% in.1976.

The increase in non-EEC imports in 1976 came from sources other than Hong Kong and there are no grounds for penalising Hong Kong.

63.

In view of the substantial increase in importa from non-EEC countries between 1974 and 1976, Hong Kong's large share of such imports and of the EEC market, and Hong Kong's high

quota utilisation rate it can be argue d

1976

that there maybe a real risk of market disruption if the ́exis ting restraint on this item is removed.

Woven shirts

Percentage charge 1975/1974

Percentage charge 197671975

Share of Consumption

in 1976

(a) EBC Production

-7.2%

-11.2%

39.9%

(b) Imports from

non-EEC Bources

+22.2%

+9.0%

60.1%

of which

Hong Kong

+31.3%

-2.5%

19.5%

South Korea

+59.2%

-19.6%

11.1%

India

+29.3%

+208.9%

7.4%

State-trading

countries

-7.5%

+29.6%

3.5%

Countries having

preferential

agreements.

-29.1%

+26.9%

(c) Imports from

EEC sources

-1,6%

+2.1%

64.

Imports from Hong Kong dropped in 1976. The increase

in non-EEC imports in 1976 came from sources other-than Hong Kong and there are no grounds for penalising Hong Kong.

65.

•

In view of the substantial decline in EEC produ tion between 1974 and 1976, the substantial increase in non-EEC imports over the same period, Hong Kong's dominant share of non-EBC imports and of the ER market and Hong Kong's relatively high quota utilisation rate in 1976, it can be argued

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that there may be a real risk of market disruption if the existing restraint on this item is removed.