Shipping containers are seen stacked on top of each other at a cargo terminal in Hong Kong on July 18, 2020. (ISAAC LAWRENCE / AFP)
HONG KONG — The Hong Kong Special Administrative Region (HKSAR) government on Thursday welcomed a ruling made by the panel established under the World Trade Organization's (WTO) Dispute Settlement Body (DSB) that the origin marking requirement imposed on Hong Kong products by the United States is inconsistent with WTO rules.
Algernon Yau, secretary for commerce and economic development of the HKSAR government, told reporters that the ruling has once again confirmed that the United States has disregarded international trade rules, attempted to impose discriminatory and unfair requirements unilaterally, unreasonably suppressed Hong Kong products and enterprises, and politicized economic and trade issues.
The panel has in its report categorically refuted the erroneous and groundless views of the United States, and gave a clear ruling that the United States has violated WTO rules
The panel has in its report categorically refuted the erroneous and groundless views of the United States, and gave a clear ruling that the United States has violated WTO rules, Yau said, noting that the ruling has fully affirmed the status of Hong Kong, China as a separate customs territory.
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Since Nov 10, 2020, the United States has required that all products exported from Hong Kong to the United States may no longer be marked as originating in "Hong Kong," but must be marked to indicate "China." The HKSAR government said it had swiftly and robustly advanced an objection via bilateral and multilateral means. The WTO's DSB agreed at its meeting on Feb 22, 2021, to the request to establish a panel to consider the dispute.
The panel has submitted its report to the DSB, which clearly ruled that the US origin marking requirement imposed upon Hong Kong products is inconsistent with WTO agreements. The panel also completely refuted the US invocation of security exceptions, and recommended the United States bring the measure into conformity, according to a statement by the HKSAR government.
Yau said he had written to the US trade representative, urging the United States to respect the ruling and immediately withdraw the requirement which violates WTO rules.
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On Wednesday, the Office of the Commissioner of the Chinese Foreign Ministry in the HKSAR said the lawsuit against the United States is an action of justice to safeguard the basic principles of international law and the multilateral trading system, and also a necessary measure to urge the United States to honor its international obligations.
A spokesperson for the office said the status of Hong Kong as a free port and a separate customs territory is confirmed and protected by the Basic Law of the HKSAR and WTO agreements, and has long been recognized and respected worldwide.
"The status is not granted by the United States, and cannot be revoked by the United States at its will," said the spokesperson.