INDUSTRY AND TRADE
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The two-year bilateral textile agreement concluded between Hong Kong and Sweden in 1981 was due to expire in March 1983. Following two rounds of negotiations held in February and March, the agreement was extended for five months to August 31, 1983, as an interim arrangement. A third round of negotiations held in May led to the conclusion of an agreement of four years' duration from September 1, 1983. Under the new agreement, exports in 16 categories of textile products are subject to quantitative restraint, while exports in four other categories are subject to an export authorisation surveillance system operated by the Trade Department.
Under the MFA, bilateral agreements were renegotiated during the year with Switzer- land and Austria. The agreement concluded with Finland in 1982 remains effective until July 1984. Under the terms of the agreements, exports of certain textiles from Hong Kong to these countries are subject to restraint or surveillance.
Norway's action against certain textile imports which was introduced in January 1979 under Article XIX of the GATT remained in force during 1983. Early in the year, Norway proposed negotiations with Hong Kong for a bilateral agreement under Article 4 of the MFA. Following two rounds of inconclusive negotiations, the Norwegian Government extended its Article XIX action until June 30, 1984, pending the outcome of further negotiations with Hong Kong and other exporting members of the MFA.
France maintains unilateral quantitative restrictions against imports from Hong Kong in respect of a number of products, including quartz watches. After numerous rounds of inconclusive consultations with France and the EEC Commission to seek the removal of the restrictions, Hong Kong requested the GATT to convene a panel to consider its complaints against the French action and to make a ruling on the matter. The GATT panel concluded in its report that the restrictions were maintained by France without any justification under the GATT and recommended that they be terminated. The report was adopted without reservation by the GATT Council in July 1983.
Generalised schemes of preferences (GSP) are operated by most developed countries to promote the export of goods from developing countries and territories by providing duty-free or reduced import tariff treatment. Except for Finland, all developed countries operating such schemes include Hong Kong as a beneficiary. Hong Kong has consistently made it clear that it seeks no special advantages under these schemes, but simply treatment similar to that accorded to its close competitors. However, certain products from Hong Kong are specifically excluded from the schemes operated by Australia, Austria, Japan, Norway, Switzerland and the United States. The difference in treatment has been the subject of continuing official exchanges between Hong Kong and the countries concerned which have resulted in gradual improvement of Hong Kong's position in certain schemes. In 1983, Japan removed two further items from its GSP exclusion list for Hong Kong.
The current US Generalised Scheme of Preferences is due to expire in January 1985. Hong Kong made a detailed written submission to the United States administration which conducted public hearings on the renewal of the scheme, and has used other opportunities to make its views known.
Documentation of Imports and Exports
Import and export licensing formalities are kept to a minimum in line with Hong Kong's international obligations. The most complex licensing formalities are those resulting from Hong Kong's obligations to restrain certain exports of textile products. All import licences and export licences covering products other than textiles are issued free. However, a fee is charged on each application for a textile export licence and certain other applications under Hong Kong's textiles export control system.