TNAG-2242-FCO40-3223-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 88

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

G.F. 324

RESTRICTED 內部文件

5

Effect of removal of China's MFN status on Hong Kona's

7.

A quick

assessment

hac

heon

mado

tho

proportion of Hong Kong's re-exports of China origin to the United States that is likely to be lost if China's MFN

status is removed. Although the relevant exporters in China as well as trading companies in Hong Kong would probably be prepared to accept a cut in their profit margins in order to dilute the effect of the higher Tariff it is not unreasonable, if only for the DurnosA of assessing relative competitiveness, to assume that the whole of the tariff increase would be reflected in the US import prices

the Chinese goods. The adjusted import Chinese

prices of the import prices competitors in

of

goods are then compared with tho of corresponding products from China's major the US market. Based On nrico Aifferential

and market share considerations. a judgement Can he mado of the possible impact of the MFN removal on re-exports in each of the main product categories. A note descrihina this assessment in greater detail is at Annex V.

8.

abnarra Of China

amounted to HK$ 82

would probably be

billion (US$3.5-4.6

Summing up. Hong Kona's

origin to the United States, which

billion (US$10.5 billion) in 1990,

reduced by 33% to 44% or HKS27-36

billion) as a direct consequence of the MFN removal. Based

on the data available. the greatest imnact i a likely to fall оп garments, followed by electrical annliances and electronics. Toys, footwear, and travel goods and handhags are expected to face relatively lega insignificant, impact.

9.

hur

བ+.}།

nat

indirectly

Trade flows that are directly กศ associated with Hong Kong's re-exports of China origin to the United States probably amounted to a total of HK$208 billion (US$27 billion) in 1990 (see estimation in Annex

RESTRICTED 內部文件

сазана

05:6 C7-C TA.

GNDY NOH

SONH INAWNYANNO

ааа

Comments

Approved members can add comments, bookmarks, and private notes.

No comments yet.

Private Research Note

Private notes are available after approval.