Top US and Hong Kong officials are believed to have met to discuss their billion dollar textile dispute. Acting US Trade Representative Charlene Barshefsky is believed to have met Secretary for Trade and Industry Denise Yue at the Asia-Pacific Economic Co-operation (Apec) forum meeting in New Zealand. Both sides have reportedly expressed interest in negotiating a settlement to the dispute. Hong Kong officials seem willing to continue talks until the end of the month before applying the World Trade Organisation's dispute settlement procedures. It is believed that the confidential talks focused on finding agreement on underlying principles. If agreed, this would pave the way for more detailed talks on how to resolve the issue for both parties. The US has imposed extra documentation requirements on textile and clothes shipped from Hong Kong, alleging huge quantities of falsely labelled goods were evading quota restrictions. The rules, which take effect today, cover textiles and clothing worth about $3.5 billion, or 9.6 per cent of the territory's textiles and clothing exports.
