This photo taken on April 2, 2019 shows the logo of the World Trade Organization (WTO) on the main gate of the WTO headquarters in Geneva, Switzerland. (XU JINQUA / XINHUA)
The Hong Kong financial chief and the business community on Thursday said a ruling by the WTO against the US is fair and just, and that it has righted a wrong and safeguards Hong Kong’s status as a separate customs territory.
Their comments came a day after a World Trade Organization panel ruled that the US had violated the global trade body’s rules by banning “Made in Hong Kong” labeling on imported goods produced in Hong Kong.
Hong Kong Financial Secretary Paul Chan Mo-po said it was unreasonable for the US to impose such a labeling ban, and that the SAR government had therefore had to take steps to reverse the ban by bringing the issue to the WTO — even though the US’ requirement has had little impact on Hong Kong, which is mainly a transit port for mainland goods and a service-center city.
Steve Chuang Tzu Hsiung, executive deputy chairman of Federation of Hong Kong Industries, said that as a separate customs territory, Hong Kong has established a good reputation in the international market for its products over the past decades, especially for food, jewelry and high-end clothing, and consumers have confidence in the “Made in Hong Kong” mark, which guarantees quality
Allen Shi Lop-tak, president of the Chinese Manufacturers’ Association of Hong Kong (CMA) said the WTO’s ruling has righted the wrong.
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The US’ origin marking requirement has had little influence on Hong Kong’s manufacturers, Shi said. But the SAR’s objections to the requirement were legitimate and it was right to seek justice under the “one country, two systems” principle, Shi stressed.
Dennis Ng Wang-pun, permanent honorary president of the CMA welcomed the WTO’s ruling. Ng said that products made in Hong Kong are widely recognized outside the city, including foods and pharmaceutical products.
“Made in Hong Kong” itself is already an established brand, signifying that the products fully meet WTO standards, Ng said.
He said the origin marking requirement of the US had been aimed at using Hong Kong as a bargaining chip in China-US trade disputes.
Though the US’ requirement has had limited impact on the city, as Hong Kong does not produce a large quantity of goods, such a move by the US was unreasonable and was likely to confuse the public, Ng said.
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The Federation of Hong Kong Industries on Thursday also welcomed the WTO’s ruling, saying it was a fair, just ruling that safeguards the interests of the consumer and Hong Kong’s status as a separate customs territory.
Goods produced in Hong Kong have been marked “Made in Hong Kong” for years and the mark is widely accepted internationally. It not only complies with the WTO’s rules, but also provides clear information as to the origin of the goods, the federation said in a statement.
Hong Kong SAR’s status as a separate customs territory is endorsed by the nation under the Basic Law, under the “one country, two systems” principle, and Hong Kong can build mutually beneficial trade ties with other economies, the statement reads.
The US’ origin marking requirement has had a negative impact on some Hong Kong manufacturers and the practice should be ended as soon as possible, the statement added.
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Steve Chuang Tzu Hsiung, executive deputy chairman of Federation of Hong Kong Industries, said that as a separate customs territory, Hong Kong has established a good reputation in the international market for its products over the past decades, especially for food, jewelry and high-end clothing, and consumers have confidence in the “Made in Hong Kong” mark, which guarantees quality.
The crux of the matter, he said, was that what the US did was unreasonable; Hong Kong-made exports to the US last year amounted to about HK$7.4 billion ($950 million), or about 0.1 percent of Hong Kong’s total exports, so the impact on local manufacturers has not been significant.