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"Such drastic change will fundamentally disrupt trade patterns, affect the balance of rights and obligations established in bilateral agreements, impede legitimate market access, and nullify or impair benefits under the GATT.
"Furthermore, current origin rules are also part of the balance of rights and obligations which were the basis for the negotiation and conclusion of the Uruguay Round Agreement on Textiles and Clothing, which since January 1, 1995, has become the multilateral instrument under the World Trade Organisation governing international trade in textiles and clothing.
"Finally, under the Uruguay Round Agreement on Rules of Origin, the participants agreed to work collectively to harmonise their origin rules. "The US move to change its rules unilaterally now pre-empts that exercise, and could impede the harmonisation effort."
Mr Yiu said Hong Kong's objection had been conveyed repeatedly to the US Government.
"We will continue to make known our position to the US," he said.
As regards impact of the new rules on Hong Kong exports to the US, Mr Yiu said exports of finished fabrics and textiles made-up articles could be seriously affected.
"The new US rules require fabric forming as the origin-conferring process for both types of products," he said.
"Therefore, under the new rules, fabrics finished and decorated in Hong Kong using imported grey fabrics will no longer be accepted by the US as product of Hong Kong origin. "Similarly, textiles made-up articles assembled in Hong Kong using imported fabrics will not be regarded as product of Hong Kong origin.
"Taking these two types of products together, using 1994 figures the value of trade affected could be as high as HK$235 million."
For cut and sewn garments, Mr Yiu said it was difficult at this stage to accurately assess the impact of the new rules.
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