U.S. and Hong Kong (1998)

17 September 1998

USTR 9/17 RELEASE ON U.S.-HONG KONG TEXTILE AGREEMENT

Following is the text of the press release:

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UNITED STATES AND HONG KONG AGREE TO ENHANCED COOPERATION TO COMBAT ILLEGAL TEXTILE TRANSSHIPMENT

United States Trade Representative Charlene Barshefsky today announced that on September 15, 1998, the Governments of the United States and Hong Kong Special Administrative Region agreed to additional steps to combat illegal circumvention of textile and apparel quota arrangements. Ambassador Barshefsky hailed the agreement, commenting: "Circumvention violates Hong Kong and U.S. law, undermines the integrity of international textile agreements, and harms the U.S. textile and apparel industry and legitimate import trade. The United States government is firmly committed to enforcing our trade agreements. This agreement is part of a broader initiative to strengthen controls to prevent illegal textile transshipment."

Secretary of Commerce William Daley noted: "This agreement will go a long way in strengthening the government to government cooperation that is crucial in detecting and deterring illegal transshipments. It will increase the flow of information from Hong Kong that we need to enforce our agreements, and it provides for an ongoing review process so that we can ensure that the level of cooperation remains to our satisfaction."

The agreed additional measures include greater cooperation in joint factory observation visits in Hong Kong, increased information sharing, and enhanced enforcement measures to be taken by the United States and Hong Kong. In addition, on the basis of this greater cooperation, the United States will no longer require original signatures by manufacturers and sub-contractors on U.S. textile declarations and certification by importers on the accuracy of textile declarations. The Governments agreed to review these enhanced efforts on an on-going basis to ensure that they are effectively addressing illegal textile and apparel circumvention.

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