INDUSTRY AND TRADE
Hong Kong is an active participant in the GATT Uruguay Round of multilateral trade negotiations which began in 1986 and is scheduled to conclude by the end of 1990. Hong Kong's complete adherence to the GATT principles of free trade gives it added credibility and influence in the negotiations which aim to strengthen the GATT and further liberalise world trade. Hong Kong was closely associated with many of the key decisions taken during a ministerial review of progress held in Montreal in December 1988 and completed in Geneva in April 1989. Significant differences among the governments participating in the Uruguay Round negotiations were overcome during the review and a framework for discussions up to completion of the Round was agreed upon, paving the way for substan- tive negotiations for the remainder of the Round.
Hong Kong co-sponsored proposals in the Uruguay Round talks during the year. In particular, it introduced initiatives to improve and strengthen the multilateral rules governing anti-dumping actions and country of origin regulations which, it was felt, in their present form could be used to obstruct legitimate trade. Hong Kong played an im- portant role in the discussion on bringing trade in services within the disciplines of a multi- lateral system. To raise awareness among service sector companies in Hong Kong, the Trade Department and Trade Development Council jointly organised a seminar in October 1989 at which Hong Kong's interest in negotiations on trade in services was more clearly identified. Hong Kong also worked closely with exporters of textiles and garments under the International Textiles and Clothing Bureau to press for bringing world trade in textiles and clothing back under the disciplines of the GATT and for phasing-out the MFA.
Textiles
Bilateral agreements negotiated under the MFA govern Hong Kong's textiles exports to Austria, Canada, the EEC, Finland, Norway, Sweden and the United States.
Consultations held in Vienna in November 1989 resulted in a new three-year Hong Kong/Austria Textiles Agreement (February 1, 1990 to January 31, 1993). The agreement represents a substantial improvement over the current one in terms of product coverage and growth rates. The number of categories under restraint has been reduced from five to four and export authorisation categories from 14 to eight.
Two rounds of consultations between Hong Kong and the EEC were held in 1989 to address problems arising from changes of product definitions upon adoption of the Harmonised System by the EEC. Agreement was reached on adjustments to the quota levels of six categories of textile products restrained under the agreement. Consultations were also held with the United States to review implementation of the new US textiles category structure adopted in conformity with the Harmonised System and a clearer understanding of classification practices was established.
Non-textiles Issues
Anti-dumping actions against Hong Kong companies emerged in 1988 as a signifi- cant phenomenon. Few cases had been brought against Hong Kong in the past; not surprisingly, since in Hong Kong's highly competitive trading environment it is difficult to see how companies could afford to operate at a loss or sell at less than normal value. However, during the period December 1987 to March 1989, eight anti-dumping actions were initiated in the EEC against Hong Kong companies. Of these, only one case (against Hong Kong exports of mobile cellular radio-telephones) was terminated without imposi- tion of any anti-dumping duties. Definitive anti-dumping duties, as high as 22 per cent for some companies, were imposed as from June 23, 1989, in respect of video cassette
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