The US Department of Commerce released a report on 16 February, stating that the quantities and circumstances of steel and aluminum imports might pose a threat to its national security. The Department of Commerce has proposed to the US President to impose high tariffs or quotas on steel and aluminum imports, including a tariff of at least 7.7 per cent on aluminum imports from all countries and regions, or a tariff of 23.6 per cent on aluminum imports from China, Hong Kong, Russia, Venezuela and Vietnam.
The Federation of Hong Kong Industries, the Chinese Manufacturers’ Association of Hong Kong, the Chinese General Chamber of Commerce, the Hong Kong General Chamber of Commerce and the Hong Kong Chinese Importers’ & Exporters’ Association (collectively the Joint Association) deeply regret that the US unilaterally raises such unfair and discriminatory trade arrangements towards individual countries or regions. The Joint Association does not agree with the report’s proposal because of the following reasons:
- The limited quantity and amount of aluminum exporting and re-exporting from Hong Kong are not sufficient enough to impose any threat to US’ national security;
- It is unfair that the Department of Commerce did not gather opinions from all affected stakeholders before making such recommendations; and
- The US violates the principle of free trade and is not in conformity with the spirit of the World Trade Organization (WTO), should the proposed measures are stemmed from its trade deficit in aluminum with Hong Kong.
The Joint Association is concerned that this may lay down a precedent for the US and to use this in the future as an excuse to introduce similar unfair trade measures on other imports. We hereby urge the HKSAR Government to contemplate follow-up actions with the WTO should the US President accept the proposal. The Joint Association will continue to work closely with the HKSAR Government, promptly reflect the views of the industries, and support the HKSAR Government in communicating and resolving the issue with the US.
Media inquiries: Please contact Mr Jason Wong at 2732 3103 / [email protected]