INDUSTRY AND TRADE
The bilateral textiles agreement with the EC expired at the end of 1992. Consultations in early November 1992 resulted in the extension of the agreement for two years up to December 31, 1994 extendable until end-1995. The new agreement will automatically terminate upon the entry into force the Uruguay Round Agreement. The terms of the new agreement are basically the same as those of the previous one but with regional restrictions removed.
Non-Textiles Issues
In September 1992 the EC initiated new anti-dumping proceedings against Hong Kong companies in respect of 3.5" magnetic floppy discs. The case is under investigation by the EC Commission.
The relatively uncertain developments in trade relations between the United States and China have cast a shadow over Hong Kong's economic well being. The areas of concerns include, inter alia, the uncertainty of renewal of China's most-favoured-nation (MFN) trading status and the US market access 301 action against China. The failure of the Senate to override the Presidential veto of the MFN conditionality bill as well as the successful conclusion of the market access negotiations between the United States and China are welcome news to Hong Kong. Nevertheless, the United States has to renew MFN trading status for China annually under the present United States laws. The Hong Kong Government and the private sector will continue to emphasise to the United States Administration and Members of Congress as well as the Chinese authorities the adverse effects on Hong Kong's economy that withdrawing or conditioning of China's MFN status will bring about.
In December 1991, Turkey completed its anti-dumping investigation in respect of woven cotton fabrics originating from Hong Kong and decided that no anti-dumping duty should be levied.
In 1992, the Mexican authorities initiated anti-dumping proceedings against Hong Kong companies in respect of woven cotton fabrics, excluding denim, and candles originating from China and re-exported from Hong Kong. The investigation against woven cotton fabrics, excluding denim, was subsequently terminated in December 1992 because the Mexican authorities found that there was insufficient evidence to establish the existence of dumping. The case for candles is still under investigation by the Mexican authorities.
The Mexican authorities have completed investigation initiated in 1991 against Hong Kong in respect of tableware and kitchenware of ceramic, porcelain or china originating from China and re-exported from Hong Kong. Final compensatory rates of 26 per cent of the declared import price for porcelain or china and 23 per cent for ceramic on tableware/ kitchenware originating from China, regardless of the country of re-export, were imposed.
In November 1992, the Mexican authorities initiated a review on the final resolution made in September 1991 to impose anti-dumping duties on imports from Hong Kong of denim of 85 per cent cotton or more. The review is in progress.
In March 1992, the New Zealand authorities initiated an anti-dumping investigation against Hong Kong companies in respect of certain men's footwear. No evidence of material injury caused by the importation of the goods from Hong Kong could be established and the proceedings were terminated.
In April 1992, the New Zealand authorities initiated another anti-dumping investigation against Hong Kong companies in respect of certain non-leather women's footwear
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