SAR urges WTO to probe new US export rule

The government has asked the World Trade Organization to establish a panel to investigate the new United States rule demanding Hong Kong exporters to relabel their products as "made in China."

The restriction, announced last August and effective since November 10, has triggered fierce condemnation from the city's officials, while the US has said the move was because "Hong Kong is no longer sufficiently autonomous to justify differential treatment in relation to China."

The SAR government yesterday filed a request to the WTO dispute settlement body to set up a panel at its January 25 meeting to consider whether the US labeling policy violates WTO rules.

Authorities expect the panel to be established no later than the body's next meeting on February 22.

Secretary for Commerce and Economic Development Edward Yau Tang-wah has written to the US trade representative to inform them about Hong Kong's request.

"The US' unilateral and irresponsible attempt to weaken Hong Kong's status as a separate customs territory, which is conferred by the Basic Law, is highly inappropriate," Yau stated.

"Such a move also confuses the market and undermines the rules-based multilateral trading system."

He added that the SAR government had launched procedures under the WTO dispute settlement mechanism on October 30, which began a 60-day consultation with the US ending last Monday.

But the result was "disappointing," with no substantive response from the country, according to Yau.

"It is necessary for us to take further action against the US in accordance with the mechanism."

Yau also said the "Made in Hong Kong" label has long been accepted internationally and should be maintained to provide buyers clear and accurate information.

"Hong Kong's special status is a basic principle under 'one country, two systems,' and the government will do its utmost to safeguard it."

Previously, the city has taken multiple efforts to protest against the new labeling restriction and demanded its withdrawal, including sending opposition letters to the US and denouncing the measure at the WTO General Council.

In documents sent to the WTO, Hong Kong accused the US of violating the organization's agreement on rules of origin, as well as the general agreement on tariffs and trade.

mandy.zheng@singtaonewscorp.com