| Abstract | In December 1997, the Southern Common Market, or Mercosur, announced plans to raise its Common External Tariff (CET) by 3% in response to the Asian financial crisis. The new, higher tariff rates went into effect on 1 January 1998 in Argentina and Brazil and will be implemented in Paraguay and Uruguay at later, undetermined dates. As a result, Mercosur's average CET will increase from 14% to 17% and the CET's maximum rate will rise from 20% to 23%. The article explains why Mercosur's 3% tariff hike is expected to affect Hong Kong's exports only slightly. |
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