Us Trade Agreement With Hong Kong

6The definition of “rules of origin” for products is defined in Schedule 2. Approximately 67% of the 273 products covered by the agreement (including jewellery, textiles, clothing, cosmetics, paper and plastics) are defined on a case-by-case basis according to the original criteria currently in force in Hong Kong, in accordance with Article VII of the GATT, which requires “substantial transformation”. In 17% of the categories, including chemicals and metals and certain electronic products, this “substantial transformation” must be significant enough to result in a change in tariff position, according to the four-digit international nomenclature. The agreement therefore provides for the fairly widespread definition of the change in the tariff position in terms of the origin of the product. Finally, for the remaining 16% of the categories (including watch components and optical components), production or processing costs in Hong Kong (including product development costs) must account for at least 30% of the fob (Free On Board) export price. While Hong Kong had to make concessions on this percentage to the Chinese (their goal was to put this percentage of 25%), they nevertheless succeeded in integrating development costs into the calculation. 26A more than the authorization granted to Hong Kong merchants to open stores under their own name and without conditions of access in Guangdong province, according to HKGCC , has already led to the opening of 400 outlets. “Imagine that it is no longer as important in the context of the ocean of trade that comes from China. If President Trump acted in trade, Hong Kong would suffer, but it`s not a joy for China,” he said. 28The EPA is of great political importance. The agreement signed at the end of June 2003 on the occasion of the official visit of the new Chinese Prime Minister Wen Jiabao to the SAR shows that the maintenance of Hong Kong`s prosperity remains the essential objective of the people`s republic of China`s policy towards SAR, not least because the Chinese authorities consider it to be the main factor in maintaining political stability in Hong Kong.

, as well as in the principle of the success of the “one country, two systems” principle. The EPA is therefore the most visible sign of the Chinese authorities` desire to bring Chinese growth to Hong Kong by increasing economic penetration without jeopardy the total autonomy of Hong Kong`s economic territory, which has been symbolically strengthened by the conclusion of a bilateral trade agreement.