TNAG-2242-FCO40-3223-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 86

RESTRICTED 內部文件

Background

Since 1980, exports from China have enjoyed the Most Favoured Nation (MFN) status in the United States,

which confers the lowest available tariffe to the gandr 38

they are imported into the United States. China's MFN

status must be renewed each year by a Presidential waiver.

Unless the waiver is granted before 3 June 1991, China's

MFN status in the United States will lapse on 3 July 1991.

2.

An assessment of the impact on

the Hong Kong

economy of China's exports losing their MFN status in the

United States was carried out last year. The present

assessment is essentially an

update of the previous one incorporating such additional information as has become

available since then.

Importance of the MPN status to China's exports to the

United States

3.

Staroo

If China's MFN status is removed. the tariff

rates for most of China's exports to the limited increase by around 2 to 10 times. Currently the MFN tariff

rates for Chinese goods are generally well below 20%. Their corresponding non-MFN tariff rates are in the range of 35% to 90%. A table comparing the MFN and non-MFN rates for selected products is at Annex 1.

Contribution to the Hong Kong economy by re-exporting goods

of China origin to the United States

4.

States will have a

re-exports of China

therefore

useful,

as

Removal of China's MFN status by the United

direct adverse impact on Hong Kong's

origin to the United States. It is

a starting point. to assess

the

G.F. 324

RESTRICTED 內部文件