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She recalled that Hong Kong manufacturers had to change their mode of production to comply with the change in origin requirements on piece-knitted garments by the US in 1986.
Another vivid example was the sudden imposition of Mexican country of origin requirement on imports by Mexico in 1994, she added.
"Apart from change within a single set of rules, some countries have many sets of preferential and non-preferential origin rules to cater for different trade purposes. For example, there may be one set of rules for most-favoured-nation tariffs, another set for origin marking, and yet a third set for anti-dumping and safeguard actions.
"The proliferation of rules which can be altered at the total discretion of national administrations has become a threat to trade liberalisation and facilitation world-wide. Not only are these rules difficult to comprehend and comply, but they also cost a lot to maintain and enforce."
"Recognising the impeding effects of proliferation of rules to trade, Hong Kong was amongst the first to advocate multilateral action during the Uruguay Round Mid- term Review in 1988," she said.
"Hong Kong is a staunch supporter of the WTO Agreement on Rules of Origin and is committed to bringing the Harmonisation Work Programme on non-preferential rules to a successful completion.
"In this connection, the Trade Department had embarked on extensive consultation with local industrial and commercial associations. Over 120 associations were invited to participate in providing Hong Kong's input to the Harmonisation Work Programme.
"Moreover, a working group comprising representatives of Trade, Industry, Customs and Census & Statistics Department had also been set up to coordinate action on the home front." she added.
As regards how Hong Kong could meet the challenge ahead, such as coping with new rules like the URAA final rules, Miss Lau said Hong Kong would follow closely the principles laid down in the WTO Agreement on Rules of Origin.
End/Wednesday, November 8, 1995