ENG-1979 — Page 46

INDUSTRY AND TRADE

25

was of the view that it was inconsistent with the provisions of the GATT as it was not truly global in nature because it excluded certain countries. Furthermore, Norway failed to make its action consistent with Article XIII of the GATT by allocating to Hong Kong an appropriate share of the so-called global quotas for 1979. Consultations were held between the two governments in May, 1979, but these failed to produce a mutually satisfactory solution. As its rights under the GATT were being impaired, Hong Kong referred the matter to the GATT Council in July, 1979, under Article XXIII: 2 of the GATT, and requested that a panel be set up to assist the Contracting Parties to investigate the matter promptly. A three-member panel was subsequently established and held three meetings in the last quarter of 1979.

The Multilateral Trade Negotiations, which were launched in 1973 in Tokyo with the object of further liberalising world trade by removing or reducing tariff and non-tariff barriers, were concluded in 1979. Major developed countries agreed to reduce their in- dustrial tariffs by about one-third over a period of seven to eight years commencing in 1980. These tariff reductions will be made on a most-favoured-nation basis, and will therefore automatically apply to Hong Kong. Apart from tariffs, the Tokyo round results consist of 11 multilateral agreements on a number of non-tariff measures, and on im- proving some important provisions of the GATT. Hong Kong has accepted seven of these agreements.

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; however, 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 EEC, 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 licensing formalities are those resulting from Hong Kong's obligations to restrain certain exports of textile products. Apart from export licences covering textiles for which a fee of $15 an application is charged - all other import and export licences are issued free.

—

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 government-approved certification organisations - 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 exports covered by certificates of origin issued by the department and the five approved organisations during 1979 was estimated at $18,864 million, of which $11,253 million was covered by government-issued certificates.