Issue
6
CONFIDENTIAL
Objective/explanation
Present status/progress
China
interest*
UK
interest*
Secretary for Trade and Industry (Cont'd)
China's Resumption
of GATT Contracting Party Status
Tariff Negotiations with China
China is likely to insist
on including in its Protocol of Resumption a reference to the
territorial non-application of the Protocol's provisions to Taiwan, Hong Kong and Macau. This might re-open doubts on HK's separate GATT contracting party status after 1997.
China has invited all GATT contracting parties for tariff concession negotiations in connection with her application for resumption of GATT contracting party status. Separately, China has made a conditional offer of tariff concessions in the Uruguay Round tariff negotiations. Hong Kong needs to consider whether to enter into negotiations with China.
Progress in the Working Party has been stalled by the 1989 Tiananmen Square incident. The major players remain sceptical of the compatibility of China's economic and trading systems with GATT principles and provisions. No breakthrough is expected in 1990.
Recent indications are that China does not wish to enter into tariff negotiations with, Hong Kong. No definitive line by HKG is needed for the moment. Line and strategy to be considered in the light of positions to be taken by other GATT contracting parties.
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