Hong Kong is out of N.Z. GSP scheme

Press, 25 February 1986, Page 23

Hong Kong is out of N.Z. GSP scheme

PA Wellington Hong Kong would be graduated from the generalised system of preferences (GSP) scheme, the Minister of Trade and Industry, Mr Caygill and the Minister of Customs, Mrs Shields, have announced. Hong Kong is the 17th country to be graduated from the scheme. The move follows the Government’s decision last year that countries achieving 70 per cent of New Zealand’s per capita gross national product would lose developing country tariff preferences.

Discussions had been held with the Hong Kong authorities on their territory’s graduation and further consultations were expected to begin soon, the Ministers said in a statement.

The move will come into effect on July 1, this year.

Mr Caygill and Mrs Shields said the GSP was introduced in the early 19705. Since then there had been major international and domestic economic changes which had affected the New Zealand scheme, they said. Those changes included

the increasing prosperity of some developing countries and recent moves to liberalise New Zealand’s import regime. Modifications to the scheme had become unavoidable.

There was provision under the graduation procedure to consider requests from a country or territory affected by the policy for the reinstatement of the developing country rate for individu-ally-nominated tariff items.

In doing so, however, the Government would take account of New Zealand’s domestic concerns. The ministers said it was important that the graduation of Hong Kong be seen as part of the total package of measures to open up the New Zealand market to establish a more competitive trading environment.

They said they were sure that Hong Kong would understand and accept the changes that had to be made to the scheme. “We have no doubt that Hong Kong exporters will be able to take over-all advantage of the various changes that have been introduced over the last 18 months."