GENERAL AGREEMENT ON mmm - World Trade OrganizationGENERAL AGREEMENT ON mmm Spec(71)79 TARIFFS AND TRADE i4 September 1971 Working Party on the Tariff Study ANALYSIS OF THE TARIFF

GENERAL AGREEMENT ON mmm Spec(71)79

TARIFFS AND TRADE i4 September 1971

Working Party on the Tariff Study

ANALYSIS OF THE TARIFF AND TRADE SITUATION

Product Category 15; Footwear and Travel Goods

Introductory note

1. The tariff rates given in this document are the post-Kennedy Round duties which will enter into effect on 1 January 1972 at the latest.

2. The four tariff averages were calculated according to the following methods:

Average No. 1 is a simple (unweighted) arithmetic average of all most-favoured­nation duty rates applying to tariff lines classified in a commodity category. It was calculated directly from national tariff lines.

Average No. 2 was calculated in two steps. First, a simple (unweighted) arithmetic average of tariff lines, the same as average No. 1 in Summary Table 1, was calculated for each BTN heading in a category. Each of these arithmetic averages

. /was then weighted by total (most favoured nation, preferential and intra-area) combined imports of the industrial countries covered by the study in calculating an average for a category.

Average No. 3 is a weighted average of all duty rates classified under a category using most-favoured-nation imports of the country concerned at the national tariff line level as the weighting pattern.

Average No. L was calculated in two steps. First, a weighted average based on a country's own most-favoured-nation imports up to the BTN heading level was calculated. The results in individual BTN headings were then weighted by the total (most favoured nation, preferential and intra-area) combined imports of the industrial countries covered by the study in calculating an average of each category.

3. All import data are for 1967, with the exception of Canadian figures which are for 1970 and data for Switzerland, Norway and Denmark which refer to 1968. The United States and Canadian import values are calculated on an f.o.b. basis while the other countries have provided c.i.f. values. Generally, the tariff averages of these two countries would be lower if calculated on a c.i.f. rather than an f.o.b. basis.

t

Spéc(7l)79 ; Pago 2

4-. The figures for the number of tariff lines arc not strictly comparable between schedules. The United States and Canadian totals are generally overstated as, in the process of converting the nonenclatures used by these countries to the BTN, individual tariff lines have often been sub-divided. In the case of Sweden, Finland and Norway the numbering .of linos reflects sub-divisions introduced for statistical reasons.

5. The tern "combined" refers to the totals of the eleven tariffs included in the study. Where broader figures are used for world totals the sources .and * :.,; coverage are indicated. ... ..--A; » - .J

6. Preferential imports include intra-EFT.*! trade, (and the United Kingdom-Ireland Free Trade .Urea), Commonwealth preferences as well as preferences extended by Finland to the USSR, by the EEC to associated countries, and by the United States to the Philippines and to Canada under the iiutonotive Agreement. Intra-EEC trade is not included.

I» Product coverage

• Product category 15 covers all products coming under BTN Chapter 6,4 and BTN 42.02.

Sub-category 15.01 - Footwear Includes footwear with outer soles of leathery rubber, plastic, wood and other materials, parts-of footwear, certain sporting wear (e.g. cricket pads), excludes orthopaedic and asbestos footwear, .old footwear and toys and skating boots with skates attached.

Sub-category 15.02 - Travel Includes trunks, suitcases, rucksacks, shopping goods bags, handbags, briefcases, wallets, purses,

toolcases and cases for musical instruments, jewellery, firearms, binoculars etc. of leather, composition leather, vulcanized fibre, plastic,

•f•'_;•."; t.jiï ;.'":' ••„ paperboard or textile fabric;

r

Spec(71)79 Page 3

II. Summary

The footwear and travel goods category is characterized by relatively high tariffs. The four averages of all itens for the eleven countries conbined are higher, and in the case of average three almost twice as high ae the corresponding averages for finished manufactures as a whole. No country has averages below 8 per cent while five countries have averages exceeding 20 per cent. Duty free trade is negligible, less than 1 per cent of most-fdvoured-nation imports. Piates on individual items go as high as 50 per cent, .almost one third of combined most-favoured-nation imports are subject to duties exceeding 19 per cent.

Switzerland and the United Kingdom have the lowest averages (for Switzerland Nos. 1 and 2 arc lowest, the United Kingdom Nos. 3 and A). The United States, the EEC and Sweden also have averages lower than the other countries. The United States is by far the major importer accounting for over one-half of combined most-favoured-nation imports.

Canada, Austria, Norway and Denmark have the highest averages (at least three of four above 20 per cent), .urcund 70 per cent of Canadian and Danish most-favoured--nation imports take place at rates over 23 per cent. For Canada, Sweden and Switzerland, the averages are about twice and for Denmark three times their corresponding averages for finished manufactures as a whole. (The latter three tariffs are generally relatively low).

The foctxvear and travel goods category ranks fifteenth out of twenty-three in trade importance, Kost-favoured-nation trade accounts for about 85 por cent of combined imports of the countries covered, and over 90 per cent of imports of non-EFTA countries. Developing countries supply around 15 per cent of the combined total.

Specific duties are important for Switzerland, the United Kingdom, Norway, Finland and Denmark. Unbound tariff items are a significant fraction of the total only in the case of Norway.

^tSP-i'PEPJlLJÂrSQif footwear, accounts for about 80 per cent of imports in category 15, over half of which is covered by one BTN heading 64-. 02. The averages for footwear sub-category are similar to those for category 15 as a whole, the main differences being that Japan is clearly among the highest, while the United States is clearly among the lowest. There is an even more pronounced concentration of most-favoured-nation imports at higher rates with over 70 per cent of the most--favoured-nation imports of Canada, Japan, Denmark and Austria entering at rates above 20 por cent.

Although sub-category 15.02. travel goods, shows combined averages slightly higher than footwear, the majority of national averages are lower. Switzerland is the lowest followed by Sweden and the EEC. The averages of the United States

L

Spec(71)79 Page 4.

(by far the major Importer) are higher than in the footwear sub-category. Norway is clearly the country with the highest tariff averages. The largest concentration of nost-favoured-nation imports (over 4-0 per cent) is in the 19.1-23 per cent range. Sub-category 15.02 coincides with BTN heading £2.02.

The United States is the major most-favoured-nation importer in both sub­categories. The proportion of most-favoured-nation trade is slightly higher for travel goods than for footwear.

III. AnaJLysis of Product Category lfj: Footwear and. Travel Goods (BTN Chapter 64" and BTN 42.02; SÏTC 612Ï3, 851,831.0)

!• Trade importance and.trade network

Combined imports of footwear and travel goods were 761 million or approximately 0.8 per cent of the combined imports of industrial products. With combined most-favoured-nation imports of $643 million, footwear and travel goods accounted for about 1.7 per cent of combined most-favoured-nation imports of finished manufactures.

Category 15 ranks fifteenth of twenty-three categories in terms of most­favoured-nation trade importance. Footwear and travel goods are relatively more important import items in the cases of Sweden (11th of 23), Norway (12th), the United States and Denmark (13th) and account for 1.8 per cent of United States most-favoured-nation imports of industrial products. Category 15 is least important in Japan (twenty-first of twenty-three, 0.1 per cent most-favoured­nation imports of industrial products) and the EEC (nineteenth and 0.3 per cent).

In absolute terms the United States is by far the largest most-favoured­nation importer ($331 million) followed by Canada ($76 million), the EEC ($59 million) and the United Kingdom ($50 million). Sweden and Switzerland have most-favoured-nation imports around $40 million, Austria, Denmark and Norway between $10 million and $15 ;?Illion, Japan and Finland less than $10 million.

Combined preferential imports are significant (over $100 million). The . United Kingdom ($39 million), Sweden, Norway, Denmark and Switzerland (around $15 million) are the major importers of footwear and travel goods on a preferential basis. About 2C per cent of United Kingdom preferential imports came from EFTA sources, 57 per cent from developing countries.

Over 80 per cent of combined most-favoured-nation imports were from developed country sources. The developing countries supplied 15 per cent, the Eastern Trading Area 5 per cent.

The major supplier of footwear and travel goods (of the countries covered by the study) is the EEC ($298 million). Other suppliers are Japan ($112 million), the United Kingdom ($40 million) and Austria and Switzerland (around $25 million).

i

Spec(71)79 Page 5

2. S.truc[bure. _qf Tariffp. and Tra.de

(a) Nunber _qf_ J ar if.f lines,.and_ .tatus. of. .b J^dings

Norway (sixty-three linos), Sweden and the United States (fifty-nine lines) have the most detailed tariff schedules for footwear and travel goods. The EEC (ten lines) and Dennark (eleven lines) the least detailed.

Ninety per cent of the 368 tariff lines are fully bound covering 95 per cent of conbined nost--favoured-nation inports.- Canada and Switzerland have all lines fully bound, Norway on the other hand has fully bound only 73 per cent of tariff lines covering only 22 per cent of nost-f avoured-nation inports. Seventy-six per cent of inports into the EEC and 80 per cent into Dennark are on fully bound lines. For the other six countries over 90 per cent of nost-favoured-nation inports are on fully bound tariff lines.

(b) Nature, of tariffs, .and. trade

Over 95 po:: cent of United States, EEC and Japanese inports and over 79 per cent of the inports of Canada, Switzerland and Austria are on a nost favoured nation basis. This proportion is lower in the other EFTA countries being the lowest in Norway (41 per cent) Denmark (54- per cent) and the United Kingdom (56 per cent).

Two per cent of Japanese and United States inports are subject to general duties at rates higher than nost favoured nation.

Ad valorem duties riake up 100 per cent of the tariff lines in the footwear and travel goods category in the tariff schedules of the EEC, Canada and Japan and account for over 96 per cent of the lines and over 99 per cent of the nost-favoured-nation inports of the United States in this category. On the other hand specific (including conbined, nixed) rates are important for the countries listed below.

Specific Rates

& JMiable % Dutiable m»f ,n. tariff lines imports

Switzerland United Kingdon Horway Finland Dennark

100.0 50.0 34.9 14.9 9.1

100.0 56.0 76.4 52.4 58.7

(c) Average tariffs. _--_ aJJL.itens

The conbined averages range fron 12.5 per cent (No.l) to 13.7 per cent (IT0.3), As can be seen fron Table I below, and fron Graph A, Austria and Canada followed by Dennark, Norway and Japan have the highest averages in that at least

Spec(7l)79 Page 6

one of the four national averages is above 20 per cent. Canada is highest in averages 1 and 3? Austria in averages 2 and 4. Switzerland (lowest in averages 1 and 2) and the United Kingdon (lowest in 3 and 4) have tariff averages lower than the other nine countries.

Table I

Averago Tariffs - AllJCtens 15

,

United States

Canada

SEC

United Kingdom

Switzerland

Sweden

Denmark

Austria

Norway

Japan

Finland

Eleven tariffs combined

1

11.2

20.7*

11.2

11.4.

8.6**

11.5

17.2

18.3

18.1

16.1

14.0

12.6

Highest average

Lowest average

(d) Duty-free Aariffs__and_inpjsrt s

Duty-free trade is negligible (0,9 per cent) and only 1.1 per cent of combined tariff lines are free of duty. The United States is the only country to have any duty-free imports (1.7 per cent). The United Kingdom, Norway, and Finland are the only other countries with duty free tariff lines.

Spec(71)79 Page 7

( e ) Average tariffs _-L dutiabJLe_ J-iPSS

Since the percentage of duty-free tariff lines and inports is negligible, there is no significant difference between averages of all itens and averages of dutiable itens only.

(f ) Freqjiency di stribution _of_ Jtariff_ lines, .and trade.

Tables II and III show the frequency distributions for the footwear and travel goods category of tariff lines and nost-favoured-nation inports in intervals of U percentage points fron 3.1 per cent to 31.0 per cent, sinple frequency distributions are illustrated graphically in Graph B.

Ilorway and the United States have the widest distribution of rates with lines under 3 per cent and over 31 per cent, Norway has the highest rate - 50 per cent. On the other hand, the rates of Canada and Sweden are concentrated into throe intervals between 15.1 and 27.0 per cent and 3.1 and 15.0'per cent respectively.

For the eleven countries conbined, only about 10 per cent of tariff lines and less than 20 per cent of nost-favoured-nation inports are at rates less than, or equal to T'J. The largest single concentration of tariff lines and inports for the eleven conbined and for five individual inporters are in the 7.1 - 11.0 per cent interval.

The two intervals between 7.1 and 15.0 per cent contain alnost 60 per cent of the tariff lines but less than half the conbined nost-favoured-nation inports. On the other hand at higher rates the inport profile exceeds the tariff profile in that the two intervals between 19.1 per cent and 27.0 per cent contain less than 20 per cent of the tariff lines but alnost 30 per cent of nost-favoured-nation inports.

About 50 per cent of conbined nost-favoured-nation inports and 4.0 per cent of tariff lines are at rates not exceeding 10 per cent.

Spec (71). Page S

Table II

Frequency Distribution of Tariff Lines: 15, Footwear and Travel Goods

EEC

United States

Canada

Japan

United Kingdom

Sweden

Denmark

Norway

Finland

Switzer­land

Austria Sleven bariffs 3ombined

0.1-,3.0 ;

J—-J i i -

1.7

! "

-

..

-

> -

3.2

-

.3.4

i ! j ,1.1 1

3.1- | 7.0

20.0 i

25.5 .

-

-

6.6

3.4 -

1.6

-

34.4

5.9

8.9

7.1- . 11.0 i

i

50.0*1 i

1 50.6* -

52.6*

60.0*

49.1*

9.1

17.5

17.0

41.3*

5.9

30.7*

11.1-15.0

10.0

18.7

-

5.3

19.9

47.5

45.5*

15.9

59.6*

13.7

35.3*

27.2

! 15.1-| 19.0

!

1

i

8.5

'. 33.3

5.3

i " i ! 9.1

j 8.0

! 12.8 ! 1 | 6.8

j 11.8

! ! 8.1

19.1-23.0

20.0

10.2

a . 7* 10.5

3.3

-

9.1

14-3

4.3

_

11.8

9.5

' 23.1-27.0

1.7

25.0

15.8

3.3

-

27.3

28.6*

2.1

_

11.8

9.5

27.1-31.0

-

10.5

_

-

6.4 2.1

17.7

2.7

31.1 and over

1.7

-

-

3.3

3.2

-

_

1.2

1 Highest rate

20

30

25 30

or

14 j

25 J !

50 28

16

30

50

Highest concentration of tariff lines/inporte

Spec(71)79 Page 9

Table_jn

Frequency Distribution of Most-Favoured-Nation Imports: 15

1

!

1 !

L ,EEC

United iStates

Canada

Japan

United Kingdon

Sweden

Denmark

Norway

Finland

Switzerland ! Austria

Eleven combined

0.1-3.0

-•

2.6

-

-

-

•-

-

•-

-

0.3

:-

1.3

3.1-7.0

o.3

20.1

--

-•

34.3

4«-'

-•

-•

-

22.6

0.1 '

15.4

7.1- • 11.0

50.4*

38.2»

-

47.8»

56.9*

15.4

0.1

8.6

7.8

63.3*

1.4

34.3*

11.1-15.0

4.0

12.5

--

11.4

8.1

30.3"""

23.0

9.5

37.7*

5.6

.6.6

13.6

15.1-19.0

—

0.1

3.2

3.4

-

-

6.9

4.2

8.2

8.2

19.3

1.3

19.1-23.0

37.3

20.4

26.3

3.S

-

-

0.3

45.3*

2.0

-

4.8

17.9 i

23.1-27.0

0.1

70.6*

32.3

0.6

-

69.8»

13.1

31.2

-

57.2»

11.9

27.1-31.0

-

-

1.3

-

-

7.2

13.2

-

10.7

0.5

31.1 and over

4.3

-

-

0.1

-

7.0

-•

...

-

2.3

Highest concentration of tariff lines/inports.

L

Spec(71)79 Page 10

IV. AnaJ jsijs. of_ S ^ Chapter 64,SITC 85.0,612.3)

1. Trade irportance and trajle. netwprjq

Combined iiiports of footwear totalled }609 million of which v508 million cr 83 per cent was subject to nost-favoured-nation rates.

Footwear accounted for a relatively higher proportion of the nost-favcured-nation inports of the United States (1.4- per cent) and Sweden (1.2 per cent) and a lower proportion for Japan (less than 0.1 per cent) and the EEC (0.2 per cent).

The United States is the largest inportor of footwear with most-favoured­nation imports of 0259 nillion. Canada, the EEC and the United Kingdom have nost-favoured-nation imports around ";5Ô nillion, Sweden and Switzerland '}j0 nillion, the others §12 nillion or less.

The largest preferential inporter was the United Kingdom with V34 nillion of which 60 per cent was from developing countries, only ^6 million was from EFTA sources.' Sweden, Denmark, Norway and Canada had preferential imports in the range of 01O-315 million.

Developed countries supply over 84 per cent of combined nost-favoured-natlcn inports, developing countries over 11 per cent and the Eastern Trading Area around 5 per cent.

Of the countries covered by the study the major supplier of footwear is the EEC which was the source of \j>253 million of imports, Japan($80 nillion); the United Kingdom (.j33 million) and Austria and Switzerland (022 million) were the other major suppliers. 2». Stjniçtm'e of tariffs and trade

(a) Number_pf. tariff, lines and status of bindings

In sub-category 15.01 it is Norway (forty-four lines) and Sweden (forty-three lines) which have the most detailed tariff schedules. The least detailed are those of the EEC (eight lines) and Denmark (10 lines).

Norway lias the lowest percentage of nost-favoured-nation imports on fully bound lines (8 per cent on 64. per cent of lines). The EEC has 71 per cent and Denmark 76 per cent. The other countries have over 90 per cent of most-favoured­nation imports on fully bound tariff lines.

(b) ?Lajturc.__of tariffs. and trade

Most-favoured-nation imports account for over 95 per cent of total footwear imports into the United States, the EEC and Japan, 86 per cent for Canada and over 75 per cent for Switzerland and Austria. The lowest percentage of imports on a most-favoured-nation basis are in Norway (43 per cent) and Denmark (52 per cent).

i

Spec(71)79 Page 11

Two pei* cent of United States imports and 3 per cent of Japanese inports ente;" under general tariff rates»

In the footwear sub-category specific duties are important for the United Kingdom (50 per cent lines, 63 per cent r.ost-favoured-nation imports) Norway (4-6 per cent lines, 90 per cent r.ost-favoured-nation inports), Finland (21 per cent lines, 64 per cent most~favoured--nation inports) and Denmark (10 per cent lines, 71 per cent nost-favoured-nation inports). There are no ad valoren rates in the Swiss tariff.

(c) Avera£e_ tariffs. -, jail it ens

Austria (in average 2,3, and 4) and Canada (in average l) have the highest tariff averages; Denmark, Austria, Norway and Japan each have averages 2,3 and 4 over 20 per cent. Switzerland is the lowest in averages 1 and 2, the United Kingdon in averages 3 and 4- The averages for the eleven tariffs conbined are between 12.3 per cent (Nc.l) and 13.9 per cent (No.2). (See Table IV below and Graph A.)

Table IV

Average Tariffs - All itens 15.01

f " ••

i

|

| United States

i Canada

EEC

United Kingdom.

S\;eden

Switzerland

Denmark

Austria

Norway

Finland

Japan

Eleven tariffs combined

Averages

1

10.3

21.5*

11.1

11.4

12.1

8.7**

17.4

17.9

16.3

13.S

17.4

12.3

2

10. S

24.0

14-. 5

12.9

'10.2**

21.8

26.5*

22.5

14-.4

22.5

13.9

3 U

11.4

24.3

13.3

8.3**

13.9

9.2

23.0

24.4-*

20.8

19.6

23.4

13.7

11.0

24..I

13.5

8.4**

13.7

10.0

23.0

25.4*

21.0

19.6

22.8

13.6

M.f.n. imports (I'OOO)

258,662 ,

60,864.

48,433

42,109

30,531

29,879

11,998

10,443

8,631

3,527

2,4-62

507,539

Highest average

»# Lowest average

Spec(71)79 Page 12

(d) Jfotyr£jS$-$3?J-£?A ?P-À jt.ïiade

Only 1.1 per cent of most--favoured-nation imports and 1.5 per cent of tariff lines are free of duty. The United States v;ith 2.2 per cent of most-favoured nation imports duty free is the only country above 0.1 per cent in this regard.

(e) Averages -_ dutiable items only

There is no significant difference between the averages in Table IV and the averages of dutiable items only.

(f) FjFe_qjuency_ distribution of tariffs and trade

As can be seen from Tables V and VT belo; , the largest concentrations of tariff rates in the footwear sub-category are in the 7.1-11.0 per cent and 11.1-15.0 per cent intervals which contain over one half the combined tariff lines and account for the largest single concentrations for ten countries.

For the eleven countries combined, the major concentration of most-favoured­nation imports is in the 7.1-11.0 per cent interval but over 20 per cent of tariff lines and almost 30 per cent of most--favoured-nation imports are at rates over 19.1 per cent. About 10 per cent of tariff lines and almost 20 per cent of imports are in the dutiable range not exceeding 7 per cent. About 52 per cent of most­favoured-nation imports and 39 per cent of tariff lines are at rates of 10 per cent or less. Over 4-0 per cent of the most-favoured-nation imports of each of three of the four major importers (the EEC, United States, United Kingdom) are in the 7.1-11.0 per cent interval. On the other hand, five countries have their major concentrations of imports in the 23.1-27.0 per cent interval.

Norway and the United States have the most widely dispersed tariffs, Canada and Sweden the least. '

r

Spec(71)79 Pago 13

Table V

Frequency Distribution of Tariff Lines: 15.01, Footwear

!

EEC

United S ta t e s

Canada

Japan

UK

Sweden

Deariarlc

Norway

Finland

Switzer ­land

Aust r ia

Eleven t a r : coribined

0 . 1 -3 .0

i

2 .6 1

.

-

-

-

4 .5

-

_

LffS 1.1

3 . 1 - ! 7 .0 !

25 .0

I

29 .0* -

..

7 .2

2 .3

-

2 .3

-•

J O . J

"'

9 .4 •

7 . 1 - . ! 11 .0

50 .0* i

• 29 .0*

-

53 .9*

6 0 . 7 *

32.6

10 .0

1Ô.2

1/ .6

4-2.2*

V . ri

2o.o

1 1 . 1 -15 .0

-

23.7

-

--

17.9

6 5 . 1 *

40 .0*

22 .7*

5o.9';:"

10 .6

4 6 . 2 *

31 .4* •

1 5 . 1 -19 .0

-

2 .6

29.4

-

-•

10 .0

9 .1

O . O

10.6

--

6 .0

1 9 . 1 - ; 23 .0 i

25 .0

5.3

35.2

7 .7

3 .6

10 .0

20 .4

5 9

-

S.9

2 3 . 1 -27.0

2 .6

3 5 . 3 *

3 .6

30 .0

6 .8

2 .9

15 .4

7 .5

2 7 . 1 -31 .0

15 .4

_

9 . 0

2.9

23 .1

3.7

31 .1 and Highest! over r a t e

2 .6

3 .6

4 . 6

1.6

20

38

25

30

35

14

25

50

28

16

30

50

Iablé_VI

Frequency Distribution of iiost-Favoured-Nation Inpcrts: 15.01

i

EEC i

United S t a t e s

Canada

iJapan

United Kingdon

Sweden

jDennark

[Norway

Finland

Switzer land

Aust r ia

Eleven coribined

0 . 1 -

_

3 .3

-

--

-

-

-

—

...

-

1.'.

; 3 . 1 "

7 .0

1 0 . 1 ,24 .2

-

4 0 . 4

0 .1

* •

-..

.9 .3

0 .2

1 7 . 1

Ui T -/ • JL—

11 .0 44 .3

4 0 . 1 *

-

13 .5

5 2 . 3 *

2 . 1

0 .1

9 .5

7 .8

' . 4 . 5 *

1.8

33 .9* j

1 1 . 1 -15 .0

14.8

-

6.5

9 7 . 8 *

7 .2

11 .3

29.9

4 . 9

8.7

14.9

1 5 . 1 -19 .0

..

3.3

-

8.3

4 . 4

5 .4

11 .4

-

1.4

1 9 . 1 -„ 2 3 . . q . .

4 5 . 6 *

9 .8

8.5

4 . 8

• "

0 .3

53 .7*

2 .4

-

11 .3

2 3 . I -27 .0

0 . 1

8 8 . 2 *

7 3 . 8 *

0 .7

8 4 . 1 *

4 . 3

3 8 . 3 *

7 5 . 3 *

15 .0

2 7 . 1 -J31.0

-

2 .9

-

8 .6

16 .2

1 4 . 1

0.5

33 .1 and over

5.5

0 . 1

8 .2

2 .9

Highest concentration of tariff lines/inports

Spec(71)79 Page 14

3. Important BTN headings

6£.02 Footwear with outer soles of leather or composition leather, or rubber or plastic, is by far the most important BTN heading in trade terms accounting for 79 per cent ($395 million) of combined most-favoured-nation imports of footwear. The major importing country was the United States (most­favoured-nation imports $200 million). The United Kingdom ($34- million most­favoured-nation, $27 million preferential) and Sweden ($28 million most-favoured­nation preferential) are also important importers. 64.02 has the highest combined average tariffs (weighted and simple) on the sub-category. Canada, Japan, Denmark, Norway and Austria have simple and weighted averages over 20 per cent. The United States and Switzerland have the lowest simple averages (9.5 per cent), the United Kingdom the lowest weighted average (7.7 per cent).

64-01 Footwear with the outer soles and uppers of rubber or plastic, is the other important heading with most-favoured-nation imports of $83 million. It is also the one heading where the developing countries are significant suppliers (18 per cent combined most-favoured-nation, 55 per cent combined preferential imports). The United States accounts for about 71 per cent of combined most­favoured-nation imports under this heading.

64..03 Footwear with outer soles of wood or cork, is the one heading where for certain countries the weighted tariff average is zero while the simple average is positive. This occurs in the cases of Japan (simple average 10 per cent, Sweden 9 per cent, Norway 13.1 per cent and Finland 5 per cent).

In sub-category 15.01, Norway has the highest rates with duties on certain types of footwear with leather uppers at rates of 50.4 VeT cent, 32.9 per cent and 30.6 per cent (BTN 64.02). The United States has a miscellaneous tariff line under BTN 64.01 at 37.5 per cent and the United Kingdom a rate of 34.8 per cent for footwear to cover the ankles exceeding 11 inches in length (BTN 64.02).

Analysis of Sub-Category 15.02; Travel Goods, handbags, etc. (BTN 42,02, SITC 831.0)

1. Trade importance and trade network

Total combined imports of travel goods were $152 million, 89 per cent ($136 million) on a most-favoured-nation basis.

The major most-favoured-nation importer of goods under sub-category 15.02 is the United States with $73 million. Canada, the EEC and Switzerland have most­favoured-nation imports of between $10-$15 million. The remaining countries less than $8 million.

The United Kingdom is the largest preferential importer ($5 million).

Imports of products in 15.02 are relatively more important in the United States and Switzerland, (0.4 per cent of combined most-favoured-nation imports of industrial products), least important in Japan (less than 0.2 per cent).

1

Spec(71)79 Page 15

The developed countries were the source of 70 per cent of conbined most­favoured-nation imports, the developing countries of 27 per cent and the Eaetern Trading Area of 5 per cent.

Of the eleven, the major supplier of travel goods was the EEC (04-5 million) followed by Japan (033 million) and the United States (07 million).

2. Structure, pf. tariffs., and trade

(a) Number of tariff lines_ _-•. A^atus. °£. pipMSEP.

Denmark and the 120 have only one and two tariff lines respectively. The United States tariff with twenty-one lines is the most detailed in this eub-categox-y.

Only Finland (63 per cent) shows significant nost-favourcd-nation imports on unbound tariff lines.

(b) Nature, of tariffs, and trade

The EEC, the United States, Canada -and Japan have over 90 per cent of their total imports entering on a most-favoured-nation basis, Switzerland aid Austria over 79 per cent. The only countries whore uost-favoured-nation imports contributed less than 60 per cent of the total were Norway (35 per cent) and the United Kingdom ( 59 per cent).

In the travel goods sub-category specific duties are significant (apart from in Switzerland) only for the United Kingdom (50 per cent of tariff lines covering 17 per cent of most-favoured-nation imports) and Sweden (19 per cent lines, 31 per cent imports).

(c) Average.Jjariffs. -. _all„itens

Combined averages are between 13.1 per cent (l and 2) and 14.. 3 per cent (3 and 4-). Norway is highest, in all four averages, with Canada and Austria also having relatively high rates. Switzerland is lowest, in all averages, • Sweden being the only other country with all averages less than 10 per cent. (See Graph A as well as Table VII below.)

L

Spec(7L)79 Page 16

Table VII

Average Tariffs - All Itens 15.02

Averages

United States

Canada

Switzerland

EEC

Ohited Kingdom

Sweden

Austria

Japan

Denmark

Norway

'inland

Eleven tariffs ïombined

1

12.8

13.9

8.4**

• 11.3

11.9

9.7

19.5

13.3

15.0

21.4*

14-4

13.1

2

12.8

18.9

8.4**

11.3

11.9

9.7

19.5

13.3

15.0

21.4*

li.4

13.1

3

15.7

19.9

7.5**

9.2

10.6

8.8

18.0

11.3

15.0

23.1*

14.9

U.4

* Highest average

Lowest average

(d) Duty-free tariffs ! and_ jtrp .do

4

15.7

19.9

7.5**

9.2

10.6

8.8

18.0

11.3

15.0

23.1*

14.9

14.4

M.f.n. imports (Î '000)

72,569

15,223

11,655

10,747

7,458

6,659

3,311

3,165

2,453

1,615

807

135,662

-

) (e) Average tariffs ..-. dutiable,items)

There are no duty-free tariff lines in sub-category 15.02.

(f) Frjajjuency jiistributipn pf_ tariffs, and trade

The tariff rates in the travel goods sub-category are not widely dispersed with the highest rate being 24 per cent. The United States has the most widely dispersed tariff.

ft>ec(71)79 Page 17

As can be seen fron Tables VII and IX below, the major concentration of tariff linos is in the 7.1-11.0 per cent interval, containing the largest single concentration of sis countries. On the other hand the largest concentration of conbined nost-favoured-nation inports lies in the interval between 19.1-23.0 per cent, the two largest inporters, the United States and Canada have their concentrations in this interval.

There are very feu low rates in the travel goods sub-category; less than 10 per cent of tariff linos and nost-favoured-nation inports involve duties at rates of 7 per cent or less. 'Only 4-7 per cent of nost-f avoured-nation inports and tariff lines are at rates of 14 per cent or less.

Table VIII

Frequency Distribution of Tariff Lines: 15.02, Travel Go#ods

EEC

United States

Canada

Japan

United Kingdom

Sweden

Dennark

Norway

Finland

Switzer­land

Austria

îleven ff t tined

tar i ffs îombj

0 . 1 -3.0

-

-

-

-

-

-

-

-

10.0

-

1.0

3 . 1 -7.0

-

19.1

-

-

-

6.3

-

-

...

30.0

-

8.0

7. I'­l l . 0

50.0*

33,4*

-

50.0*

50.0*

93. o*

- •

15.G

15.4

4&.0*

--

35. S*

11 .1 -15.0

50.0*

9.6

-

16.7

50.0*

100.0*

- •

61.5*

20.0

--

15.9

15 .1 -19.0

19.1

4-2.9

16.7

5.3

23.1

50. OH

13.9

1 9 . 1 -23.0

19.1

57.1*

16.7

-

50.0*

10.9

23 .1 -27.0

78.9*

14-.9

2 7 . 1 -31.0

Highest concentration of t a r i f f l i nes / inpor t s

i

Spec(71)79 Page 18

Table IX

Frequency Distribution of Host-Favoured-Nation Inports: 15.02

EEC

United States

[Canada

Japan

United Kingdou

Sweden

pencarlc

[Norway

Finland

Switzerland

Austria

Eleven aombined

0.1-3.0

-

~

-

-

-

-

-•

-

1.1

-

0.1

3.1-7.0

••

5.7 „

...

-

23.6

-

-

-

56.3*

-

9.2

r<. 1- • 1 1 . 0

••.-7.7*

30.9

-

70.6*

03.1*

.76.4*

• ' ..

4.7

7.8 0 / <•*

• •

35.7

11.1-15.0

22.3

4.4 ~

20.2

16.9

100.0*

-

71.9*

7.2

•-

15.1-19.0

0.6

2.7

6.0

3.1

20.3

80.0*

2.9

19.1-23.0

58.5*

97.3*

3.1

-

20.0

42.7*

23.1-27.0

92.2*

»

1.1

27.1-31.0

t

31.1 and over

It /

Highest concentration of tariff lines/inports

3. jfeBPrtant BTN Heudings All of sub-category 15.02 cones under one heading - BTN 4.2.02

In sub-category 15.02 the highest rates arc naintained by Norway, with rates of 24 per cent on a variety cf goods. The nost important being wallets, purses and travelling bags.

Çrap_h A shows averages 1 to 4 Call iteus) for each of the eleven tariffs.

Grap_h_ B shows for each tariff and for the eleven tariffs combined the frequency distribution of nost-favoured-nation inports and tariff lines.

These graphs are being prepared by a computer and will be issued later, as an addendum.