XN000022-1988-09-07 — Page 4

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WEDNESDAY, SEPTEMBER 7, 1988

QUOTED

ASSOCIATION, MR

LO

ADDRESSING THE HONG KONG/CANADA BUSINESS

THE EXAMPLE OF PROVISIONS UNDER THE FTA CONCERNING THE ESTABLISHMENT OF DUTY-FREE QUOTAS FOR APPAREL MADE FROM IMPORTED FABRICS AND FOR FABRICS AND MADE-UP ARTICLES MADE FROM IMPORTED YARN.

"UNDER THESE

PROVISIONS, CANADIAN NON-WOOLLEN APPAREL MADS FROM IMPORTED FABRICS WILL QUALIFY FOR FTA TREATMENT WHEN SOLD TO U.S. UP TO AN

THE ANNUAL LEVEL OF 50 MILLION SQUARE YARDS. WOOLLEN APPAREL MADE IN THE SAME MANNER WILL BE SUBJECT TO A QUOTA

WHEREAS

SIX MILLION SQUARE YARDS.

OF

"SEPARATELY, NON-WOOLLEN FABRICS AND MADE-UP ARTICLES MADE IN CANADA FROM IMPORTED YARN WILL QUALIFY FOR FTA TREATMENT FOR THREE YEARS UP TO AN ANNUAL LEVEL OF 30 MILLION SQUARE YARDS," MR LO SAID.

HONG KONG'S EXPORTS OF TEXTILES, INCLUDING FABRICS AND YARNS, TO CANADA AMOUNTED TO CAN$72 MILLION (ABOUT HK$453 MILLION) IN 1987.

MR LO ALSO SAID THAT THE U.S.-CANADA FTA DID HAVE FEATURES WHICH MIGHT PROVE HELPFUL TO THE PROCESS OF TRADE LIBERALISATION THE CURRENT URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS.

IN

"ITS DISPUTE SETTLEMENT PROVISIONS PROVIDE FOR BINDING ARBITRATION OF TRADE DISPUTES, A FEATURE AT PRESENT NOT AVAILABLE IN THE GATT. THE FTA'S FRAMEWORK OF GENERALLY APPLICABLE RULES IN THE SERVICES AREA COULD ALSO FORM A USEFUL MODEL FOR A MULTILATERAL AGREEMENT HE SAID.

T

MR LO SAID THERE WAS UNLIKELY TO BE KEEN COMPETITION BETWEEN HONG KONG AND CANADIAN PRODUCTS IN THE U.S. MARKET AND THE FTA SHOULD HAVE LITTLE OR NO ADVERSE IMPACT, OVERALL, ON HONG KONG'S COMPETITIVENESS IN THE U.S.

HOWEVER, HE ADDED THAT ABOUT 85 PER CENT OF CANADIAN IMPORTS FROM HONG KONG MIGHT, TO A SMALL DEGREE, EXPERIENCE A CHANGING COMPETITIVE POSITION A9 THE CANADIAN DUTY ON V.3. PRODUCTS WAS REMOVED GRADUALLY OVER A 10-YEAR PERIOD.

"GIVEN THE RELATIVELY LONG PERIOD AND THE PRICE DIFFERENTIALS, EXPORTERS AND MANUFACTURERS IN HONG KONG SHOULD HAVE LITTLE DIFFICULTY IN ADJUSTING TO THE SLIGHTLY MORE COMPETITIVE CANADIAN ENVIRONMENT, HE SAID.

MR LO ALSO SAID THAT BUSINESSMEN WERE INCREASINGLY RECOGNISING THE IMPORTANCE OF HONG KONG BOTH AS A MARKET IN ITS OWN RIGHT AND AS A SPRINGBOARD FOR ENTRY INTO CHINA AND THE REST OF SOUTHEAST ASIA.

IN 1987, CANADA-HONG KONG TRADE EXCEEDED HK$10.141 BILLION), UP 27 PER CENT FROM 1986.

CAN$1.6 BILLION (OR

MR LO NOTED THAT HONG KONG EXPORTS TO CANADA INCLUDED AND APPAREL, TOYS, SPORTS EQUIPMENT AND ELECTRICAL APPLIANCES.

MAJOR

TEXTILES

SUPPLIER

OF

FOR ITS PART, CANADA WAS A TELECOMMUNICATIONS EQUIPMENT TO HONG KONG AND SALES OF COMPUTER SOFTWARE WERE ESTIMATED TO HAVE RISEN MORE THAN 1,000 PER CENT IN THE LAST THREE YEARS.

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