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PS/Lord Caithness
RESTRICTED
HKD 0281
RECE
FROM:
M V Stone!
NISTRY
2 5FEB 1991
Hong Ko Department
867
¡STRY
faken
DATE:
25 January 1990
Cc:
Mr Burns
Mr Crystal, News Dept
Mr Paul, HKD
LORD CAITHNESS' VISIT TO HONG KONG: EC ANTI DUMPING DUTIES
IMPOSED ON HONG KONG
1. With effect from 20 January 1991 the EC has imposed anti
dumping duties of 2.1% to 4.8% on small screen colour TV
received from Hong Kong. The duties are also aimed at
Chinese colour TVs and range up to 17.4%.
2. Anti dumping duties are a measure sanctioned by GATT designed to prevent an exporter flooding a market with low cost goods so as to wipe out domestic industry. We have been concerned that they can be used to protect the domestic industry against fair competition. Moreover, it is the
consumer interest to have access to a wider range of cheaper
goods. These arguments led us to oppose duties in this case. However, we are in a minority within the Community in
taking a liberal view. Moreover Community policy is consistent with GATT rules. The answer is to change the
GATT rules.
3. Hong Kong has been the target of a number of EC anti dumping cases. Given the nature of her economy, we think it unlikely that firms could sell at a loss over a sustained
period. We have worked behind the scenes with Hong Kong in GATT so as to help her make a strong case for reform of the
RODAEU/1
CC
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