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1 1 (January 12, 2021)

handle is hein.crs/govebsd0001 and id is 1 raw text is: Congressional ______ a Research Service Revoking Hong Kong's Preferential Trade Status: Legal Framework and Implications Updated January 12, 2021 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. Background On May 28, 2020, the National People's Congress of China approved a decision authorizing its Standing Committee to enact laws to prohibit acts and activities in Hong Kong it considers to undermine national security. The same day, Australia, Canada, the United Kingdom, and the United States issued a joint statement expressing deep concern about China's decision, suggesting that such a law would dramatically erode Hong Kong's autonomy and conflict with China's international obligations to respect such autonomy stemming from, among other things, the Sino-British Joint Declaration on the Question of Hong Kong. In addition, the U.S. Secretary of State issued a report finding Hong Kong no longer sufficiently autonomous from China to warrant certain privileges under U.S. law that allow Hong Kong to be treated differently than China. Thereafter, the President announced on May 30, 2020, that his Administration would take actions to curtail these privileges, including by no longer treating Hong Kong, the United States' 15th-largest export market, as a separate customs territory from China. Congressional Research Service https://crsreports.congress.gov LSB10488 CRS Legal Sidebar Prepared for Members and Committees of Congress

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