XN000022-1987-01-03 — Page 3

SATURDAY, JANUARY 3, 1987

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HK GENERALLY SATISFIED' WITH GSP REVIEW

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THE U.S. GOVERNMENT NAS ANNOUNCED PRESIDENT REAGAN'S DECISIONS ON THE RESULTS OF A TWO-YEAR GENERAL REVIEW OF THE GENERALISED SYSTEM OF PREFERENCES (GSP) PROGRAMME, WHICH PROVIDES BENEFITS FOR DEVELOPING COUNTRIES. THE NEW SCHEME WILL BE EFFECTIVE FROM JULY 1, 1987.

HONG KONG IS A BENEFICIARY UNDER THE U.S. OSP PROGRAMME.

A TRADE DEPARTMENT SPOKESMAN SAID TODAY (SATURDAY) HE WAS GENERALLY SATISFIED WITH THE OUTCOME OF THE RÈVIEY.

HE SAID THAT HONG KONG WOULD BE ABLE TO MAINTAIN ITS CURRENT LEVEL OF BENEFITS UNDER THE NEW SCHEME ALTHOUGH THERE WOULD BE SOME CHANGES IN SPECIFIC PRODUCT LEVELS, THAT IS SOME PRODUCTS CURRENTLY INELIGIBLE WOULD BECOME ELIGIBLE WHILE SOME PRODUCTS CURRENTLY ELIGIBLE WOULD BE EXCLUDED.

IN 1985. U.S. IMPORTS OF GSP ITEMS FROM HONG KONG AMOUNTED TO U.S. $3.7 BILLION, OF WHICH U.S. $1.2 BILLION ENTERED DUTY FREE.

THE SPOKESMAN SAID THAT BETAILS OF THE NEW U.S. ASP SCHEME WILL BE ANNOUNCED IN THE DEPARTMENT'S COMMERCIAL INFORMATION CIRCULAR WHICH WILL BE DISTRIBUTED TO THE TRADE.

THE GENERAL REVIEW WAS MANDATED BY THE U.S. CONGRESS IN 1984 WHEN THE GSP PROGRAMME WAS RENEWED FOR EIGHT AND A HALF YEARS.

UNDER THE REVIEW, THE U.S. PRESIDENT WAS REQUIRED TO EXAMINE THE COMPETITIVENESS OF EACH OSP BENEFICIARY COUNTRY IN EACH GSP ELIGIBLE PRODUCT.

IF A COUNTRY WAS FOUND TO BE +SUFFICIENTLY COMPETITIVE+ IN A PRODUCT, THE PRESIDENT WAS REQUIRED TO REDUCE ITS GSP BENEFITS BY REDUCING THE PROGRAMME'S +COMPETITIVE NEED LIMITS ON THE PRODUCT.

AS PART OF THE REVIEW, THE PRESIDENT ALSO CONSIDERED REQUESTS FOR WAIVER OF COMPETITIVE NEED LIMITS SUBMITTED BY THE BENEFICIARY COUNTRIES, AND U.S. AND FOREIGN FIRMS.

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