Hong Kong’s WTO threat against US ‘Made in China’ ruling puts city in uncharted waters

Name: US suspends extradition treaty with Hong Kong over city’s national security law
Uploaded: 2020-08-20T22:00:08.000Z
Duration: 1 min 15 s
Description: US suspends extradition treaty with Hong Kong over city’s national security law

Hong Kong confirms intention to launch a World Trade Organisation case over Donald Trump’s order requiring ‘Made in China’ labels on goods exported from the city to the United States

Some experts are imploring city authorities to stand up to perceived US bullying, but others warn of ‘kicking the hornet’s nest’

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If bilateral consultations with the United States fail, Hong Kong could proceed to a panel dispute at the World Trade Organisation, but experts warn of a “Pandora’s box scenario” that risks “airing dirty laundry in public”. Illustration: Henry Wong

Finbarr Bermingham

Published: 6:00am, 21 Aug 2020Updated: 2:47pm, 23 Aug 2020

On April 24, 1986, when Hong Kong became an independent member of the global trading system in its own right, Michael Cartland stood up from his erstwhile British colleagues within the European Community’s delegation and walked over to take Hong Kong’s seat between Haiti and Hungary.

More than a third of a century later, Hong Kong is facing an existential crisis in the system in which it has thrived for decades.

In response to sweeping national security legislation that has placed question marks on Hong Kong’s autonomy, Washington has begun to strip away the city’s special trading status.

Goods made in Hong Kong for export to the United States must be labelled as “Made in China” from September 25. And the city will no longer enjoy unfettered access to sensitive technology due to US export controls on China being broadened to include Hong Kong, while many think additional tariffs on Hong Kong’s exports will follow in due course.

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US suspends extradition treaty with Hong Kong over city’s national security law

On Thursday, a Hong Kong Commerce and Economic Development Bureau spokeswoman told the South China Morning Post that it “will take action against the US under the WTO dispute-settlement mechanism to defend our separate customs territory status and protect our interests”, adding that the US rules on labelling flout “Hong Kong’s status as a separate WTO member”.

Citing articles 116 and 151 of the Basic Law, which “provide that the HKSAR is a separate customs territory”, she said that it will seek bilateral consultations with the US, which will proceed to a panel dispute at the World Trade Organisation should the talks fail.

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