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Preliminary study of possible impact of US Special 301 action on HK completed
The Trade Department has, in conjunction with the Census and Statistics Department and the Economic Analysis Division, completed a preliminary study of the possible impact on Hong Kong's re-export trade, if the United States Government did implement in full its proposed retaliation list against Chinese imports.
"This preliminary study suggests that if the list was implemented in full in 1993, as much as US$1.45 billion of Hong Kong's re-export that year could have been affected," Deputy Director-General of Trade, Mr Thomas Yiu, said today (Saturday).
"The Hong Kong re-export items that might be hardest hit, in value terms, include electrical products, plastic articles, furniture items, ceramic household ware and footwear," he said.
"This confirms our concern that US Special 301 retaliation against Chinese products could have knock-on effect on Hong Kong's trade and economy.
"The proposed retaliation list, if implemented, would inadvertently affect Hong Kong traders and their legitimate trade interests, which have nothing to do with the intellectual property rights (IPR) issue between China and the US."
The proposed list was published by the US Government on December 31, 1994 for public comment, as part of its proposed way forward for the investigation on China's IPR practices under the US Special 301 provisions.
Mr Yiu said: "This preliminary study is the first part of the Government's overall assessment of the potential impact on Hong Kong's trade and economy, if the US proposed list was implemented in full."
"The final comprehensive assessment will incorporate the present study on re- exports, and cover other direct or indirect effects on our economy.
"Once that is done, we will pass it to the US Government and emphasise our hope that Hong Kong's interests should be taken into account in any decisions which the US may take."
On publishing the retaliation list on December 31, 1994, the US also announced the extension of the Special 301 investigation on China to February 4, 1995, in the light of the need for further time for negotiations to resolve remaining issues.