TRADE AND INDUSTRY
102
World Trade Organisation (WTO)
The World Trade Organisation (WTO) oversees the implementation of the multilateral rules and disciplines agreed to at the Uruguay Round (UR) of negotiations for trade in goods, services and trade-related aspects of intellectual property rights. It also serves as a forum for multilateral trade negotiations. The multilateral trading system under the WTO is the cornerstone of Hong Kong's external trade policy. Hong Kong supports a strong and credible multilateral trading system, to sustain global trade liberalisation and economic growth.
Hong Kong is a founding member of the WTO. This separate membership status will continue beyond 1997, under the name of 'Hong Kong, China', reflecting Hong Kong's autonomy in the conduct of its external commercial relations as guaranteed under the Sino-British Joint Declaration on the Question of Hong Kong and the Basic Law of the Hong Kong Special Administrative Region.
Hong Kong participates actively in the work of the WTO to ensure proper and full implementation of the UR outcome, and to safeguard Hong Kong's trading interests. Hong Kong played an active role in the preparatory process leading to, and at, the first WTO ministerial conference in Singapore on December 9-13, 1996. The conference reviewed progress on implementation of the UR agreement and adopted a future work programme for the WTO. Hong Kong will continue to participate actively in taking forward the agreed future WTO work programme to further global trade liberalisation.
Textiles
Hong Kong's textiles exports to the European Union (EU), Norway, Canada and the USA are subject to certain quantitative restrictions maintained under the WTO Agreement on Textiles and Clothing (ATC) which came into force on January 1, 1995. This provides for the phased removal of quantitative restrictions on these products in 10 years. Hong Kong monitors closely the implementation of the ATC and the functioning of its supervisory body, the Textiles Monitoring Body, to safeguard Hong Kong's rights under the ATC. Through the co-ordination of the International Textiles and Clothing Bureau, of which Hong Kong is a member, Hong Kong and a group of developing country exporters of textiles work together to ensure that the liberalisation process under the ATC is on course, and to explore possibilities for further liberalisation.
Upon the formation of the EU/Turkey Customs Union in January 1996, Turkey imposed unilateral and discriminatory quantitative restrictions on Hong Kong's textiles exports. With a view to urging Turkey to rescind its action, Hong Kong initiated consultations with the country in April 1996. Since these did not resolve the matter, Hong Kong will continue to seek protection of its position in accordance with the WTO rules and procedures.
During the year, the US imposed additional import measures on 10 categories of Hong Kong garments. Representatives of the governments of Hong Kong and the USA met to discuss ways to address the problem and bilateral co-operation to control and eliminate illegal transshipment of textiles and garments. Both governments are committed to continuing their mutual efforts to resolve the matter.