XN000022-1995-09-29 — Page 3

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WTO rules in Hong Kong's favour in textiles case

The World Trade Organisation (WTO) Textiles Monitoring Body (TMB) in Geneva has ruled in Hong Kong's favour in a case over the United States' call on Hong Kong's exports of Category 440 (wool woven shirts and blouses).

"The TMB has reached a consensus recommendation that under the WTO Agreement on Textiles and Clothing (ATC), calls cannot be made on products already under restraint, and that since Hong Kong's Category 440 is already under US restraint, the US call is not justified," said Deputy Director-General of Trade, Mr Thomas Yiu, today (Friday).

"This is precisely the position we took in our bilateral consultations with the US, and at the TMB meeting," stressed Mr Yiu, who was the head the Hong Kong delegation attending the TMB discussion on the case held this week.

"The TMB also reached a consensus recommendation that since the call was not justified, the US should rescind the measure. We are naturally pleased with the ruling,

"The ATC represents the liberalisation of textiles trade, and provides for a 10- year phased-programme for the complete abolition of textiles export limits.

"The TMB is tasked to monitor the implementation of the Agreement. Its work is essential in providing guidance through this transition, and in ensuring the full realisation of the liberalisation programme.

"That TMB is able to reach a definite ruling in the present case clearly demonstrates its effectiveness and capability."

As to whether the ruling meant that the US restraint imposed on Hong Kong's Category 440 would now be lifted, Mr Yiu said: "Under the ATC members have a responsibility to endeavour to accept in full the TMB's recommendations. We hope that the US will lift the restraint as soon as possible.

"So far the limit imposed by the US has not had any real impact on our trade. As at September 28 we have licensed only 1,084 dozens of Category 440 exports, whereas the limit imposed by the US is 3,688 dozens."

Under ATC, in specified circumstances a Member may make a call on imports of a particular product to provide transitional safeguard for its relevant domestic industry.