THURSDAY, APRIL 28, 1983
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CAUTIOUS OPTIMISM FOR HK'S TRADE PROSPECTS
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THE DIRECTOR OF TRADE, MR HAMISH MACLEOD TODAY (THURSDAY) SAID CAUTIOUS OPTIMISM SEEMED AN APPROPRIATE MOOD FOR HONG KONG'S TRADE PROSPECTS FOR THE NEXT YEAR OR TWO.
ADDRESSING THE LUNCHEON MEETING OF THE ROTARY CLUB OF KOWLOON, HE EXAMINED HONG KONG'S TRADE PROSPECTS IN RELATION TO RESTRAINT AGREEMENTS AND MEASURES WHICT MIGHT PREVENT HONG KONG TAKING ADVANTAGE OF THE EXPECTED UPTURN IN WORLD ECONOMY.
HE SAID THAT THE PRESSURE FOR 'SAFEGUARDS - MEANING THE AUTHOR ISATION OF SELECTIVE RESTRAINTS - AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) MINISTERIAL MEETING LAST YEAR WAS STILL UNDER STUDY, BUT THE THREAT WHICH IT POSED OF TEXTILE AND CLOTHING STYLE RESTRAINTS BEING EXTENDED TO OTHER PRODUCTS NOW SEEMED LESS REAL.
+IN PARTICULAR, THE USA IS NOW LESS ENTHUSIASTIC ABOUT SAFEGUARDS, AND THE UPTURN IN WORLD ECONOMY SHOULD HOPEFULLY LIFT THE PRESSURE SOMEWHAT IN OTHER COUNTRIES TOO.
+SO FAR AS NON-CLOTHING AND TEXTILE EXPORTS ARE CONCERNED, THE PROSPECTS ARE REASONABLY BRIGHT THAT THEY WILL BE ABLE TO EXPAND WITHOUT FORMAL OR INFORMAL RESTRAINT AGREEMENTS ARTIFICIALLY LIMITING THE IR POTENTIAL. THE ONLY DANGER HERE IS THAT WE MAY GRADUALLY LOSE SOME OF THE TARIFF CONCESSIONS THAT WE ENJOY, ALONG WITH OTHER DEVELOPING COUNTRIES, FOR CERTAIN PRODUCTS EXPORTED TO CERTAIN DEVELOPED COUNTRIES.+
HE EMPHASISED THAT HONG KONG HAD TO DATE EFFECTIVELY RESISTED AGREEING TO ANY RESTRAINT ON EXPORTS OF GOODS OTHER THAN TEXTILES AND CLOTHING.
THIS WAS MAINLY DUE TO THE FACT THAT HONG KONG WAS ONE OF THE FEW COUNTRIES OR TERRITORIES WITH A GENUINELY FREE MARKET FOR OTHER COUNTRIES' EXPORTS.
+ANOTHER REASON IS THE EXISTENCE OF THE GATT, WITH ITS RULES AGAINST SELECTIVE IMPORT RESTRICTIONS THAT IS TO SAY SELECTIVE AS BETWEEN ONE COUNTRY AND ANOTHER.
+ONE OF THE DANGERS HAS BEEN THAT AS HONG KONG DIVERSIFIES AND BEGINS TO BE A SUBSTANTIAL AND COMPETITIVE EXPORTER OF NON- TEXTILE AND CLOTHING PRODUCTS - LIKE WATCHES THE PRESSURE GROWS TO MODIFY THE GATT IN SOME WAY SO THAT SELECTIVE RESTRAINTS ON SUCH PRODUCTS CAN BE IMPOSED ON HONG KONG. HENCE OUR CONCERN OVER THE PRESSURE AT THE GATT MINISTERIAL MEETING LAST YEAR FOR ACTION ON 'SAFEGUARDS', HE REMARKED.
TURNING TO THE TEXTILES AND CLOTHING TRADE, MR MACLEOD STRESSED THAT THE GOVERNMENT WOULD CONTINUE TO DO ALL IT COULD TO OBTAIN THE LEAST RESTRICTIVE AGREEMENTS FOR HONG KONG.
/PUTTING THESE