HONG KONG is taking a worsening trade row with the United States to the World Trade Organisation today as the territory's exports of wool clothing plummet.
The deterioration in the dispute follows two rounds of failed discussions on Washington's decision to limit the import of wool woven shirts and blouses from Hong Kong.
The attempt to lift the damaging restrictions on the territory's exports comes as the industry suffers a significant decline in sales of the clothing to the US.
During the first eight months of this year exports of woollen shirts and blouses were running at one-third below the level of last year - 978 dozens (11,736) compared with 2,962 dozens (35,544) during the same period in 1994.
Despite this, the US claimed the imports were harming its local industry producing woollen clothing and imposed the penalties in April.
But the Hong Kong Government delegation to a WTO meeting in Geneva starting today will argue the action was not justified.
The exports were small, said delegation leader and Deputy Director-General of Trade Thomas Yiu. Last year's sales of 5,046 dozens (60,552) were equivalent to only 2.3 per cent of the total US market, he explained. Even American's own market data failed to demonstrate an increase in sales had seriously damaged or posed a threat to the industry, he said.
