THURSDAY, OCTOBER 4, 1984
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ON THESE REPORTS, MR TSANG SAID HE WAS VERY PLEASED AND ENCOURAGED WITH THE EEC'S SUPPORT.
HE SAID THAT HONG KONG'S COUNSELLOR IN GENEVA, MR MICHAEL CARTLAND, TOLD THE GATT COUNCIL THAT HE SUPPORTED THE EEC'S CALL FOR THE WITHDRAWAL OF THE REGULATIONS.
MR CARTLAND DREW THE GATT COUNCIL'S ATTENTION TO ARTICLE VIII OF THE GENERAL AGREEMENT WHICH RECOGNISED THE NEED +FOR DECREASING AND SIMPLIFYING IMPORT AND EXPORT DOCUMENTATION REQUIREMENTS+,
THE ARTICLE ALSO ENVISAGES THAT THE PRODUCTION OF CERTIFICATES OF ORIGIN SHOULD ONLY BE REQUIRED TO THE EXTENT THAT IS STRICTLY INDISPENSABLE+.
MR STATING THAT THE SAME IDEAS WERE ENSHRINED IN ARTICLE IX, CARTLAND SAID THAT THE UNILATERAL INTRODUCTION BY THE U.S. OF NEW ORIGIN RULES FOR TEXTILES HAD RESULTED IN +CUMBERSOME DOCUMENTATION REQUIREMENTS+ DEMANDED OF EXPORTERS TO THE U.S.
+THE NEW RULES ALSO REQUIRE THE DISCLOSURE OF COMMERCIALLY SENSITIVE OR CONFIDENTIAL INFORMATION WHICH TRADERS ARE UNABLE TO PROVIDE. THIS IS NO MINOR TECHNICAL MATTER. IT AMOUNTS TO A SIGNIFICANT BARRIER TO TRADE AND RUNS CONTRARY TO THE LETTER AND SPIRIT OF ARTICLES VII AND IX, MR CARTLAND SAID.
MOREOVER, MR CARTLAND EMPHASISED, IN THE TEXTILES SECTOR WHERE TRADE IS GOVERNED BY THE FRAMEWORK OF THE GATT, THE MFA AND THE BILATERAL AGREEMENTS, IT SEEMS CLEAR THAT UNILATERAL RULES OF ORIGIN CANNOT AND SHOULD NOT BE USED OUTSIDE THAT FRAMEWORK AND IN A MANNER THAT CONFLICTS WITH IT, THUS FRUSTRATING LEGITIMATE TRADE.
+MORE SPECIFICALLY, HE ADDED, THE USE OF ORIGIN RULES BY ANY CONTRACTING PARTY AS A PROTECTIVE MEASURE, RESULTING IN SUBSTANTIAL TRADE LOSS ON THE PART OF OTHER CONTRACTING PARTIES, CANNOT BE JUSTIFIED IN TERMS OF THE GENERAL AGREEMENT.+
IN SUCH CIRCUMSTANCES, AFFECTED PARTIES WOULD BE WITHIN THE IR RIGHTS TO RAISE THE QUESTION OF NULLIFICATION OR IMPAIRMENT.
+MR CHAIRMAN, THE QUESTION OF IMPAIRMENT ARISING FROM THE NEW U.S. COUNTRY OF ORIGIN REGULATIONS IS BEING EXAMINED IN HONG KONG. THE PRELIMINARY ASSESSMENT IS THAT CONSIDERABLE DAMAGE HAS ALREADY BEEN SUSTAINED IN TERMS OF CANCELLATION OF CONTRACTS TO THE VALUE OF MANY MILLIONS OF U.S. DOLLARS.
+ IN CONCLUSION, MR CHAIRMAN, I SUGGEST THE CALL BY THE DISTINGUISHED REPRESENTATIVE OF THE EEC FOR THE WITHDRAWAL OF THE COUNTRY OF ORIGIN REGULATIONS.
+ I ALSO SUGGEST THE PROPOSAL IN THE STATEMENT OF MR BAJWA (OF PAKISTAN WHO SPOKE ON BEHALF OF DEVELOPING COUNTRIES) AND RESERVE HONG KONG'S RIGHTS UNDER THE GENERAL AGREEMENT IN THIS MATTER, + MR CARTLAND SAID.
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