A general view of the Kwai Tsing Container Terminals port facility in Hong Kong on Aug 20, 2019. (PHILIP FONG / AFP)

HONG KONG - The Hong Kong Special Administrative Region's government is taking formal action at the World Trade Organization against the US over pending regulation that the city label goods manufactured there as "Made in China."

Hong Kong has launched procedures under the WTO’s dispute settlement mechanism requesting a bilateral consultation with the US, Secretary for Commerce and Economic Development Edward Yau Tang-wah said at a press briefing Friday.

According to WTO rules, the US must respond to Hong Kong’s request within 10 days and conduct the consultation with Hong Kong within 30 days, he said. After that, if the two sides can't come to an agreement within 60 days, Hong Kong has the right to request a panel be formed to settle the dispute, Yau said.

The city retains separate representation at the global trade body and has a separate customs jurisdiction from the Chinese mainland.

READ MORE: HKSAR govt formally asks US to rescind new rule on HK exports

"Given the disappointing response of the US in the past six weeks it is necessary for the Hong Kong government to take further action against the US,” Yau said.

The US' unilateral and irresponsible attempt to weaken Hong Kong's status as a separate customs territory is highly inappropriate. Such a move also confuses the market and undermines the rules-based multilateral trading system

Edward Yau, Secretary for Commerce and Economic Development, HKSAR govt  

"The US' unilateral and irresponsible attempt to weaken Hong Kong's status as a separate customs territory is highly inappropriate. Such a move also confuses the market and undermines the rules-based multilateral trading system," Yau said. 

"The US' new requirement concerns Hong Kong's status as a separate customs territory conferred by the Basic Law, which is a basic principle under 'one country, two systems'. The HKSAR government will do its utmost to safeguard it," Yau added.

Yau reiterated that under "one country, two systems", Hong Kong is an inalienable part of the People's Republic of China, and the special status of the HKSAR is conferred by the motherland through the Basic Law.

The special status of Hong Kong has been widely recognized and respected by the international community, and Hong Kong's economic and trade status is on par with that of other WTO members. 

"The 'Made in Hong Kong' marking on Hong Kong products has been accepted internationally for many years. This not only conforms to Hong Kong's status as a separate customs territory and complies with WTO rules, but also provides consumers with clear and accurate information on product origin," Yau said.

Yau said Hong Kong’s action was necessary as the US has given no concrete response over the past six months to requests from the HKSAR government to withdraw its new origin-labeling requirement.

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The US administration’s rule that demands Hong Kong relabel its exports to the US will take effect on Nov 9 — six days after the US presidential election.

Hong Kong formally took issue with the US government on Sept 16, strongly objecting to the US’ new requirement and requesting that the requirement be withdrawn immediately.

Yau said this is the first time that Hong Kong has proactively and directly lodged a complaint against a WTO member.

At the WTO General Council meeting on Oct 13, Hong Kong and the WTO clearly expressed Hong Kong’s position that it strongly objected to the new US requirement, Yau said. However, in the past six weeks, the US has not made any substantive response to the request of the Hong Kong government, and has so far not withdrawn the new requirement, which means that it will be implemented on Nov 9.

Yau said if the US insists on the new rule, Hong Kong’s exports to the US and the US exports to Hong Kong will be both affected.

In response to a question about the impact the imminent US presidential election will have on Hong Kong, Yau said the relationship between Hong Kong and the US is not established by a certain government or person but by the mutual benefits.

With Bloomberg inputs