WTO: US Ban on “Made In Hong Kong” Label Breaches Trade Laws

The World Trade Organization (WTO) ruled against the United States as it breaches international trade rules by labeling imports from Hong Kong with the “Made in China” stamp, a decision rejected by the US.

The WTO made the ruling addressing a mandate from former president Donald Trump’s administration to label Hong Kong products with a “Made in China” stamp after Beijing imposed a sweeping security law on the financial hub in 2020.

Trump responded by removing special trading privileges for Hong Kong. Consequently, US customs authorities labeled goods produced in the region to indicate they were made in China instead, which sparked complaints.

Hong Kong argued that this move violates trade rules since it ignores its status as a separate member of the WTO.

A panel set up by the WTO’s dispute settlement body said the origin labeling requirement was “not justified” under global trade rules.

The panel report also said that the US “has not demonstrated that the situation at issue constitutes an emergency in international relations.”

The panel added that labeling Hong Kong products would also receive a “less favorable” treatment than other countries, adding that other countries use their names on their product labels.

The ruling drew a strong response from Washington, with US Trade Representative spokesperson Adam Hodge saying the country “strongly rejects the flawed interpretation and conclusions” of the report.

Hodge said the US was reacting to China’s “highly concerning actions” threatening US national security interests.

“Issues of national security cannot be reviewed in WTO dispute settlement, and the WTO has no authority to second-guess the ability of a WTO Member to respond to what it considers a threat,” Hodge said.

Hodge said the US does not plan to remove the marking requirement from the latest report.

Source: ABS-CBN