Govt Launches Trade Action

(To watch the full media session with sign language interpretation, click here.)

The Hong Kong Special Administrative Region Government today formally launched procedures in accordance with the World Trade Organization (WTO) Dispute Settlement Mechanism against the US' new rule on the origin marking of Hong Kong products.

Secretary for Commerce & Economic Development Edward Yau made the announcement during a media session this afternoon.

"Our permanent representative to the WTO has sent the US permanent representative to the WTO today our request for formal bilateral consultations with the US on its new requirement under the WTO Dispute Settlement Mechanism.

"I have also written to the US Trade Representative, informing the US that the Hong Kong SAR has officially taken action against the US under the WTO Dispute Settlement Mechanism."

He explained that the Hong Kong SAR Government formally took issue with the US Government on September 16 requesting that the new requirement be withdrawn immediately. The action was taken in accordance with the WTO's spirit and practices with a view to resolving the matter first through bilateral discussion.

However, the US has not made any substantive response and has not withdrawn the requirement so far.

Mr Yau added that the Hong Kong Economic & Trade Offices in Washington, DC, and Geneva have been following up on the matter with relevant US authorities. Hong Kong's permanent representative to the WTO also clearly expressed the city's strong objection to the US' new requirement at the WTO General Council meeting on October 13.

The US representative to the WTO did not give any concrete response, he said.

"Given the disappointing response of the US in the past six weeks, it is necessary for the Hong Kong SAR Government to take further action against the US on the multilateral front."

According to the WTO Understanding on Rules & Procedures Governing the Settlement of Disputes, the US shall respond to Hong Kong's request for consultations within 10 days and conduct consultations with Hong Kong within 30 days.

If the two parties fail to resolve the dispute through consultations within 60 days, the Hong Kong SAR Government has the right to take further action and request the Dispute Settlement Body to establish a panel to consider the dispute.

Mr Yau reiterated that the Hong Kong SAR Government will safeguard the city's interests.

"As a responsible WTO member, Hong Kong always abides by WTO rules.

"And the US' new requirement undermines Hong Kong's separate customs territory status conferred to us through the Basic Law, which is a basic principle under 'one country, two systems'. We will therefore robustly defend Hong Kong's interests."