US ban on ‘Made in Hong Kong’ label breaches trade rules: WTO

GENEVA: The United States is flouting international trade rules by imposing a “Made in China” stamp on goods imported from Hong Kong, the World Trade Organisation ruled Wednesday.

The US rule was introduced by former president Donald Trump in 2020, prompting a complaint by Hong Kong with the global trade body.

Trump announced the end of the preferential conditions granted by Washington to Hong Kong, after the imposition by Beijing of sweeping new security laws on the semi-autonomous territory.

A month later, in August 2020, US customs announced that goods imported from Hong Kong would have to be stamped “Made in China” rather than “Made in Hong Kong”.

But the WTO’s dispute settlement body said in its report that the origin marking requirement was “not justified” under global trade rules.

It ruled that the United States “has not demonstrated that the situation at issue constitutes an emergency in international relations”. The US rule also fell foul because it “accords to products of Hong Kong, China treatment with regard to marking requirements that is less favourable than the treatment accorded to like products of any third country”, the WTO panel concluded.

The difference in treatment changes competition conditions to the detriment of products from Hong Kong, it added.