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제목 Revoking Hong Kong’s Preferential Trade Status: Legal Framework and Implications (CRS) 기타 2021-01-13



Revoking Hong Kong’s Preferential Trade Status: Legal Framework and Implications

 

 

 

 

 

 

January 12, 2021

Nina M. Hart

 

 

On July 14, 2020, the President issued an executive order finding the Hong Kong Special Administrative Region (Hong Kong) “no longer sufficiently autonomous to justify differential treatment in relation to the People’s Republic of China” (China) with regard to specific laws listed in the order, and suspending differential application of those laws to Hong Kong. One of the relevant laws, 19 U.S.C. § 1304, sets out how products from other territories must be marked to indicate their country of origin. In response to the executive order, U.S. Customs and Border Protection (CBP) issued a notice requiring all goods previously marked with “Hong Kong” to indicate “China” as their country of origin. Since this action, Hong Kong has initiated a World Trade Organization (WTO) dispute by requesting consultations with the United States, arguing the new marking requirements violate several WTO agreements.

 

This Sidebar presents the legal framework that applies to Hong Kong’s status as a separate customs territory from China, and analyzes the implications of the U.S. actions as well as Hong Kong’s decision to initiate WTO proceedings. Although the President’s executive order suspended a number of statutory provisions that gave preferential treatment to Hong Kong and invoked authority to declare a national emergency with respect to the situation in Hong Kong, these actions are beyond this Sidebar’s scope.

 

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