XN000022-1984-10-11 — Page 5

THURSDAY, OCTOBER 11,

1984

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H.K. STILL IN U.S. GSP

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+ HONG KONG WILL CONTINUE TO BE ACCORDED TARIFF PREFERENCE UNDER THE NEXT GENERATION OF U.S. GENERALISED SYSTEM OF PREFERENCES (USGSP) WHICH WAS APPROVED BY THE U.S. CONGRESS ON OCTOBER 9, 1984,+ A SPOKESMAN FOR THE TRADE DEPARTMENT SAID TODAY (THURSDAY).

THE NEW GSP, WHICH WILL EXTEND THE CURRENT GSP PROGRAMME, WILL RUN FOR EIGHT AND A HALF YEARS FROM JANUARY 4, 1985. IT WILL EXPIRE ON JULY 4, 1993.

THE GSP'S CURRENT PROVISIONS RELATING TO COUNTRY ELIGIBILITY WILL REMAIN UNCHANGED BASICALLY. THERE IS HOWEVER, AN ADDITIONAL PROVISION TO BE ESTABLISHED WITH RESPECT TO INTERNATIONALLY RECOGNISED WORKER RIGHTS+ IN THE BENEFICIARY COUNTRY.

ON PRODUCT ELIGIBILITY, THE GSP'S CURRENT PROVISIONS FOR EXCLUSION OF CERTAIN PRODUCTS FROM ELIGIBILITY WILL REMAIN UNCHANGED WITH ONE EXCEPTION. THAT IS, ANY NEW PRODUCTS IN THE LEATHER-RELATED PRODUCT SECTOR WILL BE DEEMED IMPORT-SENSITIVE AND CANNOT BE INCLUDED IN THE GSP.

+THE IMPACT ON HONG KONG IS UNKNOWN SINCE PRODUCT DETAILS ARE NOT YET AVAILABLE BUT CERTAIN LEATHER GOODS FROM HONG KONG ARE CURRENTLY EXCLUDED FROM GSP TREATMENT UNDER THE TERMS OF THE EXISTING SCHEME, THE SPOKESMAN SAID.

ON GRADUATION (I.E. DENIAL OF PRODUCTS FROM GSP TREATMENT), THE NEW LEGISLATION REQUIRES THE PRESIDENT TO COMPLETE WITHIN TWO YEARS A GENERAL REVIEW ON WHICH PRODUCTS FROM WHICH COUNTRIES ARE +SUFFICIENTLY COMPETITIVE+.

IN THOSE INSTANCES WHERE THE DETERMINATION IS AFFIRMATIVE, LOWER LIMITS SET AT 25 PER CENT AND US$25 MILLION WILL BE APPLIED, OTHERWISE, THE CURRENT LIMITS (50 PER CENT AND US$57.7 MILLION) WILL CONTINUE TO APPLY.

THE SPOKESMAN WELCOMED THE CONTINUED INCLUSION OF HONG KONG UNDER THE GSP.

+WE ARE PLEASED THAT THE U.S. CONGRESS HAS DELETED THE MORE OBJECTIONABLE ELEMENTS PROPOSED EARLIER WHICH WOULD AFFECT ADVERSELY HONG KONG'S TRADE UNDER GSP, THE SPOKESMAN SAID. *WE ARE ENCOURAGED BY THIS DEMONSTRATION OF RESISTANCE AGAINST PROTECTIONIST TRADE ATTITUDES IN THE U.S.+

FULL DETAILS OF THE LEGISLATION ARE STILL AWAITED. ON RECEIPT, THE TRADE DEPARTMENT WILL EXAMINE THE IMPACT OF THE GSP ON HONG KONG'S TRADE.

IN 1983, TOTAL U.S. GSP IMPORTS. FROM HONG KONG AMOUNTED TO US$3 036 MILLION, OF WHICH US$1 125 MILLION (37 PER CENT) WORTH OF GOODS WERE IMPORTED DUTY FREE.

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