US label requirement on Hong Kong goods deemed “discriminatory”: Gov’t

In a letter, the Hong Kong government asked the WTO to consider its position.

The Hong Kong government has asserted that the US origin marking requirement on Hong Kong products “unlawfully discriminates” goods imported from the City.

In writing, Hong Kong has asked the World Trade Organization (WTO) Dispute Settlement Body (DSB) to consider its position over the US’ new requirement to relabel Hong Kong products as “Made in China.”

"The US has imposed such a discriminatory and unjust requirement for political reasons unrelated to a proper determination of the place of origin of the goods as required under the various WTO covered agreements,” Secretary for Commerce and Economic Development Edward Yau said.

He added that it the new requirement is accepted, it will undermine the critical role of accurate origin determination.

It also goes against agreements, under the WTO, such as the Agreement on Rules of Origin, Agreement on Technical Barriers to Trade and the General Agreement on Tariffs and Trade 1994.

“Under the Basic Law, Hong Kong is a separate customs territory, and may, using the name 'Hong Kong, China,’ participate in relevant international organisations and international trade agreements,” Yau also said.

“The special status of Hong Kong has been widely recognised and respected by the international community, and Hong Kong's economic and trade status is on par with that of other WTO members,"

Moreover, Yau said the requirement to relabel Hong Kong-made products led to an increase in cost and complexity in exportation amongst Hong Kong enterprises, putting them at a disadvantage against other WTO member states.

Read also: WTO creates panel to settle dispute with US on 'Made in Hong Kong' label

Last February, the WTO DBS authorized the creation of a panel to settle the dispute between the US and Hong Kong on the origin marking that first took effect in November.