XN000022-1989-05-25 — Page 2

THURSDAY, MAY 25, 1989

EXPORTERS WARNED AGAINST U.S. PROTECTIONISM

THE FIGHT AGAINST THE UNITED STATES TEXTILES BILL AND RELATED MOVES TOWARDS GREATER PROTECTIONISM SHOULD NOT BE RELAXED. THE SECRETARY FOR TRADE AND INDUSTRY, MR JOHN CHAN, SAID TODAY (THURSDAY).

SPEAKING AT A LUNCH MEETING OF THE HONG KONG EXPORTERS' ASSOCIATION, MR CHAN SAID HE BELIEVED THAT THE U.S. TEXTILE LOBBY WOULD BE MOVING TOWARDS A MORE DIVERSIFIED APPROACH, WHEREBY BARRIERS AGAINST IMPORTS WOULD BE ERECTED BIT BY BIT THROUGH A SERIES OF MEASURES IN A NUMBER OF AREAS.

HE SAID THIS WOULD BE AN INTERIM CHANGE OF TACK PENDING A DECISION AS TO WHEN TO REVIVE ITS ATTEMPT TO INTRODUCE COMPREHENSIVE AND HIGHLY RESTRICTIVE TEXTILES LEGISLATION.

ELABORATING ON THIS THREAT, MR CHAN EXPLAINED THAT UNDER THE SO-CALLED "SUPER 301" PROVISIONS OF THE 1988 OMNIBUS TRADE

ACT, THE U.S.ADMINISTRATION WAS REQUIRED TO IDENTIFY AS PRIORITY PRACTICES THOSE TRADE BARRIERS THE ELIMINATION OF WHICH WAS LIKELY TO INCREASE U.S. EXPORTS, AND TO DESIGNATE PRIORITY COUNTRIES TAKING INTO ACCOUNT THOSE WITH NUMEROUS AND PERVASIVE BARRIERS.

BY JUNE 20, HE SAID, THE U.S. TRADE REPRESENTATIVE, MRS CARLA HILLS, MUST INITIATE 301 INVESTIGATIONS OF ALL PRIORITY PRACTICES OF PRIORITY COUNTRIES, AND TO SEEK TO ELIMINATE THEM THROUGH NEGOTIATION OVER THE NEXT 12 TO 18 MONTHS.

ACCORDING TO MR CHAN, SURPRISINGLY HONG KONG HAD BEEN INCLUDED IN ONE COMPLAINT LODGED BY THE WINE INSTITUTE AND THE ASSOCIATION OF AMERICAN VINTNERS REGARDING HONG KONG'S DUTIES ON LIQUOR.

"NATURALLY, WE HAVE ALREADY EXPLAINED ΤΟ THE U.S. ADMINISTRATION, AS WELL AS TO THE COMPLAINANT, THAT OUR DUTIES ARE LEVIED FOR THE SOLE PURPOSE OF RAISING REVENUE AND ARE NOT MEANT AS A BARRIER TO TRADE, MR CHAN SAID.

"

BEING A TO TAKE

ITS USE

HE SAID HONG KONG'S REAL CONCERN WAS THAT "SUPER 301" VERY POTENT WEAPON WHICH ENABLED THE U.S. ADMINISTRATION UNILITERAL ACTION AGAINST IMPORTS IN CERTAIN CIRCUMSTANCES, WOULD JEOPARDISE THE SUCCESSFUL CONCLUSION OF THE URUGUAY ROUND MUTILATERAL TRADE NEGOTIATIONS.

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OF

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"THERE IS A CLEAR POSSIBILITY THAT SUPER 301' ACTION WOULD INTERPRETED AS A LOSS OF FAITH ON THE PART OF THE USA IN THE MULTILATERAL TRADING SYSTEM WHICH IT HAD DONE SO MUCH IN THE CREATE.

PAST TO

"GIVEN THAT THE U.S. IS THE BIGGEST AND MOST INFLUENTIAL PLAYER IN THE URUGUAY RORND, SUCH AN INTERPRETATION WOULD SERIOUSLY WEAKEN THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH IS THE CORNERSTONE OF THE WORLD TRADING SYSTEM, MR CHAN SAID.

/TURNING TO