ENG-1978 — Page 45

INDUSTRY AND TRADE

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under the provisions of Article XIX of the GATT. These consultations were held in September, but failed to produce a mutual agreement on what Hong Kong considered its rights under the provisions of the GATT.

At the end of November, Norway notified the GATT Council of details of its action to be taken in 1979 under Article XIX. These were subsequently examined by Hong Kong to determine whether Norway's action was inconsistent with the provisions of the GATT and if so, what further action Hong Kong should take.

Work accelerated during 1978 on the Multilateral Trade Negotiations, which were launched in September, 1973, in Tokyo with the object of further liberalising world trade by removing or reducing tariff and non-tariff barriers. Significant progress was made in the negotiations, especially in the second half of 1978. Hong Kong took an active part in several major areas.

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Generalised preference schemes are operated by most developed countries to promote the export of goods manufactured by developing countries. The schemes include provisions allowing duty-free or low tariff entry for products from beneficiary developing countries; but the form, coverage and other provisions differ from country to country. Hong Kong has been included as a beneficiary by all developed countries operating such schemes, except for Finland and Norway. Some products from Hong Kong are excluded from the schemes operated by the European Economic Com- munity, Japan, Switzerland, Australia and Austria. Such difference in treatment is the subject of continuing official exchanges. Hong Kong has consistently made it clear to the countries concerned that it seeks no special advantages under these schemes; it only wants treatment similar to that accorded to close competitors.

Documentation of Imports and Exports

Import and export licensing formalities are kept to a minimum in line with Hong Kong's international obligations. The most complex formalities are those resulting from Hong Kong's obligations to restrain certain exports of textile products. Apart for which a fee of $15 an application is from export licences covering textiles charged all other import and export licences are issued free.

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Steps are being taken to computerise the textile export control system to improve operational efficiency. In the initial phase, the control arrangements for the export of textiles to the United States are being computerised. The proving process was com- pleted in 1978. In 1979 consideration will be given to the next phase, which is the computerisation of the control arrangements for the export of textiles to the European Economic Community.

With Hong Kong's dependence on the export of manufactured goods - mostly made from imported materials - and on the substantial re-export trade, a certification of origin system to meet the requirements of overseas customs authorities is important. The Trade Industry and Customs Department issues certificates of origin and accepts responsibility for safeguarding the integrity of the entire Hong Kong certification system. To this end, close liaison is maintained with overseas authorities and with five authorised non-government certificate-issuing bodies the Hong Kong General Chamber of Commerce, the Indian Chamber of Commerce in Hong Kong, the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong and the Chinese General Chamber of Commerce. The value of domestic

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