XN000022-1995-03-13 — Page 2

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HK supports China's membership in WTO

Hong Kong sees it particularly important to have China to come back into the multilateral system through World Trade Organisation (WTO) membership, the Secretary for Trade and Industry, Mr T H Chau, said today (Monday).

Speaking at a luncheon meeting of the Hong Kong Exporters' Association, Mr Chau said bringing trade disputes involving China into the multilateral system would be a major step, and a major improvement from Hong Kong's point of view.

Mr Chau said Hong Kong was a staunch supporter of free trade and it was also firmly behind the multilateral system. It sees the WTO as the cornerstone of the new order in world trade and views trade disputes between other economies in the light of the rules of the WTO.

"China is such a large player in world trade that it is unimaginable that she should be kept out of the system for much longer. The WTO cannot properly fulfil its function when the trading relationships of such a big player are not covered by it.

"Once China rejoins, it will not only be possible for China to challenge any trade measures imposed on her by other members, but Hong Kong, as well as any other member, will also be able to question the conformance of such measures with the agreed rules.

"A strong and effective integrated dispute settlement system is a cornerstone of the multilateral trading system. The WTO provides for improved and strengthened rules leading to more prompt and effective resolution of disputes.

"Upon accession to the GATT/WTO, China will have access to this system. China will then be able to defend herself against any trade measures which are not consistent with the WTO rules. China will then not be as easily threatened by unilateral sanctions during bilateral trade disputes.