XN000022-1987-07-02 — Page 5

THURSDAY, JULY 2, 1987

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ROOM FOR HK-KOREA TRADE GROWTH

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THE BASIC PRINCIPLE OF THE GENERAL AGREEMENT ON TARIFF AND TRADE (GATT)

APPLICATION NON-DISCRIMINATORY

OF MOST FAVOURED NATION TREATMENT TO ALL CONTRACTING PARTIES --REMAINS THE CORNERSTONE OF HONG KONG'S CONDUCT OF INTERNATIONAL TRADE.

THE SECRETARY FOR TRADE AND INDUSTRY, MR HAMISH MACLEOD SAID THIS IN A SEMINAR IN SEOUL TODAY (THURSDAY).

HE SAID AS HONG KONG BELIEVED IN AND PRACTISED FREE TRADE, IT NATURALLY SUPPORTED THE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS, WITH THE AIMS OF ACHIEVING TRADE LIBERALISATION, IMPROVED MARKET ACCESS AND STRENGTHENED DISCIPLINE IN THE MULTILATERAL TRADING SYSTEM.

IT ALSO VALUES CO-OPERATION WITH KOREA IN THE MULTI-FIBRE AGREEMENT AND GATT, WHILST LOOKING TO OTHER LIKE-MINDED TRADING PARTIES TO WORK TOWARDS LIBERALISATION OF TRADE.

MR MACLEOD POINTED OUT ONE POSSIBLE AND MUTUALLY ADVANTAGEOUS WAY TO HELP LESSEN THE THREAT OF PROTECTIONISM IS TO INCREASE TWO-WAY TRADE THROUGH MARKET OPENING.

IT IS ALSO NECESSARY TO LOOK AT POSSIBLE WAYS ΤΟ HELP EASE DOMESTIC ECONOMIC DIFFICULTIES FACING TRADING PARTIES AND OTHER DIFFICULTIES WHICH ARE FUELLING PROTECTIONIST SENTIMENTS.

HE SAW PARTICULAR DANGERS IN U.S. TRADE LEGISLATION WHICH

SEEKS TO REDUCE THE COUNTRY'S TRADE DEFICIT.

THE U.S. IS BECOMING INCREASINGLY LINKED TO ASIA AND THE PACIFIC REGION THROUGH TRADE AND IN 1986, 36 PER CENT OF ITS TRADE WAS WITH ASIA AS COMPARED WITH ONLY 26 PER CENT WITH EUROPE.

PATTERN,

ANOTHER NOTABLE RECENT CHANGE IN HONG KONG'S TRADING SAID MR MACLEOD, HAS BEEN THAT CHINA HAS OVERTAKEN U.S. AS HONG KONG'S NO.

TRADING PARTNER, WITH THEIR TWO-WAY TRADE HAVING INCREASED 12 TIMES BETWEEN 1978-86.

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HE ALSO NOTED THAT BOTH KOREA AND HONG KONG HAVE HAD AN EXCELLENT RECORD OF GROWTH IN TRADE IN RECENT YEARS, BEING THE 12TH AND 13TH LARGEST TRADING COUNTRY/TERRITORY IN THE WORLD RESPECTIVELY.

THERE IS ROOM FOR THE HONG KONG/KOREA BILATERAL TRADE TO GROW, WHICH MAY HELP REDUCE PROTECTIONIST PRESSURES, HE ADDED.

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