RESTRICTED
Annex V
Assessment of the effect of
non-renewal of MFN status for China
by the United States on Hong Kong's
re-exports of China origin to the United State
Background
MS
In 1990,
re-exports at HKS413,999 million accounted for some 65% of the total exports of Hong Kong. During the same year, 93% of Hong Kong's re-exports to the were of China uliyi, du they accounted for 20% of Hong Kong's total re-exports. Based on import statistics of the US for 1990, it is estimated that about 69% of the total imports of the US from China were re-exported through Hong Kong. Thus the non-renewal of MFN treatment of all China's exports to the US will have an adverse effect on the re-export trade of Hong Kong. This paper attempts to
provide some quantitative assessment on this effect.
Methodology
2.
with the loss of MFN treatment, China's exports will be subjected to higher tariff in the US. This has the same effect of increasing the prices of China's products relative to other competitors in the US market. As a result, there will be a decrease in the demand for China's exports. Viewing this as the price effect on demand, its
effect on China's
exports will depend on, among other things, the extent of the price increase of China's products and the degree of competition of similar products from other exporting countries in the US market.
3.
major
through
To assess the effect on Hong Kong's re-exports, commodities of China origin exported to the US market Hong Kong are identified based on their trade
な
No comments yet.
Private notes are available after approval.