WEDNESDAY, OCTOBER 18, 1978
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HONG KONG'S SUCCESS ATTRIBUTED TO THE RULE OF TRADE LAW
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HONG KONG OFFERS POSSIBLY A HIGHER DEGREE OF FREEDOM TO TRADE THAN ANYWHERE ELSE IN THE WORLD, THE DIRECTOR OF TRADE, MR. LAWRENCE MILLS SAID TODAY.
IN A TALK TO THE CANADIAN BUSINESS ASSOCIATION OF HONG KONG, MR. MILLS SAID THAT THE HONG KONG GOVERNMENT'S INVOLVEMENT IN TRADE MATTERS + IS KEPT TO THE MINIMUM COMMENSURATE WITH THE DISCHARGE OF OUR INTERNATIONAL TRADE OBLIGATIONS AND THE PROTECTION OF OUR INTERNATIONAL TRADING RIGHTS.+
DESCRIBING THE RULES THAT GOVERN INTERNATIONAL TRADE, MR. MILLS SAID THE MAIN ONES FOR HONG KONG ARE TO BE FOUND IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND THE ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES BETTER KNOWN AS THE MFA.
+THE GATT IS THE ONLY MULTILATERAL INSTRUMENT THAT LAYS DOWN AGREED RULES FOR INTERNATIONAL TRADE,+ MR. MILLS EXPLAINED. THE BASIC AIM OF THE GATT IS TO LIBERALISE WORLD TRADE AND PLACE IT ON A SECURE BASIS, WHEREAS THE MFA'S PURPOSE IS BASCIALLY TO RECONCILE THE INTERESTS OF IMPORTING AND EXPORTING COUNTRIES IN THE TRADITIONALLY SENSITIVE AND DIFFICULT FIELD OF TEXTILES BY PERMITTING THE EXPANSION OF TEXTILE TRADE WHILE AVOIDING DISRUPTION OF MARKETS.
MR. MILLS SAID THAT UNDER THE GATT OUR PRINCIPAL OBLIGATION IS DERIVED FROM ARTICLE 1 WHICH REQUIRES HONG KONG TO APPLY THE MOST FAVOURED NATION+ RULE. +CUTTING THROUGH THE JARGON, THIS MEANS THAT TRADE MUST BE CONDUCTED ON THE BASIS OF NON-DISCRIMINATION, HE SAID.
+THUS HONG KONG IS OBLIGED TO TREAT IMPORTS FROM ALL SOURCES IN AN IDENTICAL FASHION. BUT, BY THE SAME TOKEN, HONG KONG'S RIGHT IS TO HAVE ITS EXPORTS TO OTHER CONTRACTING PARTIES TREATED IN AN IDENTICAL WAY TO THE MANNER IN WHICH EXPORTS FROM OTHER SUPPLIERS TO THOSE CONTRACTING PARTIES ARE TREATED.+
BUT DESPITE THESE RIGHTS THERE IS STILL DISCRIMINATION AGAINST HONG KONG AND RESTRICTIONS ON OUR TRADE, WHICH MR. MILLS ATTRIBUTED TO THE SMALL PRINT OF THE GATT, +WHICH ALLOWS EXCEPTIONS TO THE BASIC MOST FAVOURED NATION RULE IN CERTAIN SPECIAL CIRCUMSTANCES, AND THE NOT SO SMALL PRINT OF THE MFA WHICH ALLOWS DISCRIMINATORY RESTRAINT ACTION WHEN A DOMESTIC MARKET IS BE ING DISRUPTED OR THREATENED WITH MARKET DISRUPTION,
THESE RESTRICTIONS ON TRADE NOTWITHSTANDING, MR. MILLS POINTED TO THE EIGHTFOLD GROWTH IN THE VOLUME OF INTERNATIONAL TRADE OVER THE PAST 30 YEARS.
*THIS INCREASE CAN, I THINK, BE ATTRIBUTED TO THE SUCCESS OF THE GATT, TO THE RULE OF LAW IN TRADE MATTERS AND TO THE PROPER DISCHARGE OF RESPONSIBILITIES AND THE JEALOUS GUARDING OF RIGHTS+.
HE ALSO STRESSED THAT HONG KONG'S EXPORTS HAD INCREASED 15 TIMES IN THE PAST TWO DECADES. THIS SUGGESTS THAT PLAYING THE GAME BY THE RULES HAS PAID HANDSOME DIVIDENDS FOR HONG KONG.+