Hong Kong derives its GATT rights and obligations from its status as a dependent territory of the United Kingdom. The UK has accepted the GATT in respect of territories for which it has international responsibility. As a result of the change of
sovereignty on 1 July 1997, Hong Kong's status in the GATT will cease unless some means can be found to transmit such status to the SAR.
China's present status
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However,
China is not currently a member of the GATT. she attends GATT meetings as an observer and has announced her intention of "resuming eventually, full GATT membership. Irrespective of the method by which China might eventually seek accession to the GATT, it is believed that some contracting parties would take the line that China's accession would have to be on terms which satisfactorily mitigated the economic disadvantages of her participation. Negotiations would be
likely to be long drawn out.
Possible options for Hong Kong's
continued participation in the GATT
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There are, in essence, three basic options:
Option 1: Hong Kong to maintain the status quo until 1997 when China, as the metropolitan power, would accept the GATT in respect of Hong Kong as a territory for which it has international responsibility;
the GATT on terms to
Option 2: Hong Kong to seek to accede to the GATT on
be agreed with the contracting parties in accordance with GATT Article XXXIII (Note 1);
Option 3: Prior to June 1997, HMG to declare, in accordance with GATT Article XXVI 5(c) (Note 2) that Hong Kong possesses full autonomy in the conduct of its external commercial relations whereupon Hong Kong would be deemed to be a contracting party (i.e. full member). (see also paragraph 15 below).
Note (1) Article XXXIII
"A government not party to this Agreement, or a government acting on behalf of a separate customs territory possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement, may accede to this Agreement, on its own behalf or on behalf of that territory, on
on terms to be agreed between such government and the CONTRACTING PARTIES. Decisions of the CONTRACTING PARTIES under this
paragraph shall be taken by a two-thirds majority.