Hong Kong authorities on Friday said that they are set to take formal action against the United States (US) at the World Trade Organization (WTO) to challenge a pending regulation that the city label goods manufactured there as ‘Made in China.’
Secretary for Commerce and Economic Development Edward Yau said that the territory has already requested a bilateral consultation with the US through the WTO’s dispute settlement mechanism. The US has 10 days to respond to the request and 30 days to engage with Hong Kong. If the two sides are then unable to resolve the issue within 60 days, Hong Kong can request the formation of a panel to settle the matter.
The Asian financial hub has come under great scrutiny in recent months, not only because of the US’ ongoing trade war with China but also following Beijing’s imposition of a new draconian national security law curbing political freedoms in the city. In July, US President Donald Trump signed an executive order ending preferential treatment for Hong Kong, saying that going forward, it would be treated the same as mainland China, with “no special privileges, no special economic treatment and no export of sensitive technologies”.
The order also allowed Washington to freeze US assets of any person determined to be complicit in or responsible for “actions or policies that undermine democratic processes or institutions in Hong Kong”. Additionally, the new rules also state that products from the city—which could earlier carry a ‘Made in Hong Kong’ label—now needed one that said ‘Made in China’.
“Given the disappointing response of the US in the past six weeks it is necessary for the Hong Kong government to take further action against the US,” Yau told reporters on Friday. “The US’ unilateral and irresponsible attempt to weaken Hong Kong’s status as a separate customs territory is highly inappropriate. Such a move also confuses the market and undermines the rules-based multilateral trading system,” he added.
Though a part of China, Hong Kong is a separate member of the WTO, with its own customs and immigration rules. The regulation regarding the label is expected to come into force on November 9, less than a week after what is expected to be a bitter presidential election between Donald Trump and his Democratic rival Joe Biden.
Hong Kong to Take Formal Action Against the US at WTO over ‘Made in China’ Label Rule
The territory has already requested a bilateral consultation with the US through the WTO’s dispute settlement mechanism.
October 31, 2020
SOURCE: SHUTTERSTOCK