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"The actions taken are discriminatory, violate the EU's obligations under the World Trade Organisation Agreement and impair Hong Kong's benefits accruing to it directly or indirectly," she said.
"Furthermore, the Regulation on which the EC's actions were based, also lacks transparency and fails to spell out the nature and scope of the investigation."
Miss Lau strongly urged the EC to terminate immediately its anti- circumvention actions against Hong Kong.
"We note that findings of the EC's anti-circumvention investigation are expected to be submitted to its Anti-dumping Advisory Committee in late March and a decision may be made soon by the EC on whether or not to terminate the case against Hong Kong," she added.
The anti-circumvention measures against 3.5-inch microdisks originating in Hong Kong and eight other countries were initiated by the EC on October 20 last year. It is alleged that the anti-dumping duties imposed on 3.5-inch microdisks originating in the People's Republic of China and Taiwan were circumvented by imports of the product from Hong Kong and eight other countries.
As a result, 3.5-inch microdisk imports from Hong Kong and eight other countries are subject to a registration requirement following the initiation of an investigation.
Twenty-four Hong Kong companies are alleged to be practising circumvention. Should circumvention be established, the higher anti-dumping duties applicable to the People's Republic of China or Taiwan will be extended to those companies found involved in the circumvention.
The Hong Kong Government issued a Note Verbale to the EC on November 22 last year, raising its strong principled objection and subsequently held a round of informal bilateral consultations with the EC on February 6 this year in Brussels to find out more about the legal and factual bases of the EC's anti-circumvention actions against Hong Kong.
On the basis of the information gathered from the informal bilateral consultations, the Trade Department drew up Hong Kong's detailed comments on EC's anti-circumvention actions and issued a representation to the EC.
End