WT/TPR/M/306  
19 January 2015  
(15-0344)  Page: 1/42  
Trade Policy Review Body 
19 and 21 November 2014  
 
  TRADE POLICY REVIEW 
HONG KONG, CHINA 
MINUTES OF THE MEETING 
Chairperson: H.E. Mrs. Mariam MD Salleh 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE REPRES ENTATIVE OF HONG KONG, CHINA ................... 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 8  
4  STATEMENTS BY MEMBERS ........................................................................................ 11  
5  REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 37  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 41  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Hong Kong, China are reproduced in document WT/TPR/M/306/Add.1 and will be 
available online at http://www.wto.org/ english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/306 • Hong Kong, China 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The seventh Trade Policy Review of Hong Kong, China was held on 19 and 
21 November 2014. The Chairperson H.E. Mrs. Mariam MD Salleh (Malaysia) welcomed the delegation of Hong Kong, China headed by Ms . Carol Yuen, Deputy Secretary for Commerce and 
Economic Development; the rest of the delegation from Hong Kong, China; Ms. Irene Young, 
Permanent Representative of Hong Kong, China to  the World Trade Organization; other colleagues 
from the mission in Geneva; and the discussant, H.E. Mr. Ronald Saborío Soto (Costa Rica). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Hong Kong, China was contained in document WT/TPR/G/306 and that of the WT O Secretariat in WT/TPR/S/306. 
1.3.  Hong Kong, China adopted the alternative timeframe for its TPRB meeting. Questions by the 
following delegations had been submitted in writing at least four weeks in advance and had been 
transmitted to the delegation of Hong Kong, China: Switzerland; New Zealand; Colombia; Canada; Mexico; Chile; the European Union; Pakistan; Australia; Singapore; Chinese Taipei; China; the 
United States; Indonesia; and Guatemala. The fo llowing delegations submitted written questions 
after the four-week deadline: Peru; Ecuador; Thailand; Malaysia; Korea; Brazil and Honduras. 
1.4.  Since its previous review in 2010, Hong Kong, China had maintained one of the most open 
trade and investment regimes worldwide, which was the backbone of its successful integration into 
the global economy.  
1.5.  Hong Kong, China had grown at an average annual rate of 3.1% between 2010 and 2013, 
despite a difficult external environment. Servic es remained the driving force of the economy, 
accounting for 93% of GDP and 88% of total employment. Hong Kong, China had consolidated 
itself as an international hub for financial services, trade, transport and logistics. As noted in both the Secretariat and the Government reports, th ese achievements had been supported by Hong 
Kong, China's sound macroeconomic framework, economic openness, modern transport and 
telecommunications infrastructure, strong links to international markets, close economic and financial ties with Mainland China, and an overall business-friendly environment. In addition, 
facing competition from other regional centres and seeking to evolve into a knowledge-based 
economy, Hong Kong, China was fostering the development of other niche economic sectors such as innovation and technology, creative industries, testing and certification, environmental industries, IP trading and distribution.  
1.6.  Notwithstanding its achievements, Hong Kong, China faced some economic challenges. These 
were, on the external sector, a weak global recove ry, a slowdown in growth in some of its major 
trading partners and potential bouts of volatility in international financial markets. On the domestic 
front, the challenges included preserving a heal thy fiscal position in the face of the increased 
spending needs of an ageing population, reducing income gaps, and ensuring adequate and affordable housing supply.  
1.7.  As regards trade policy itself, both the Secretariat and the Government reports noted that 
Hong Kong, China was a firm supporter of the multilateral trading system, the conclusion of the DDA, and the implementation of the Bali package.  At the same time, Hong Kong, China had been 
actively engaged in bilateral and regional trade negotiations and concluded FTAs with a number of 
trading partners since the last Review. In their advance questions, Members had enquired about 
the current status and particular provisions of these agreements and, more generally, about the domestic ratification process of FTAs.  
1.8.  A key development in Hong Kong, China's economic policy since the last Review was the 
adoption of its first comprehensive law on competition, which still had to be fully implemented. The new legislation had elicited Members' interest on aspects such as its scope of application, 
exemptions, merger control rules and the powers conferred to the Competition Commission, so the 
Chairperson was sure that the delegation of Hong Kong, China would like to enlighten Members on this important development.  
1.9.  Judging from the number of advance questions received, another area of great interest to 
Members was Hong Kong China's IP regime, in part icular as regards current initiatives to update WT/TPR/M/306 • Hong Kong, China 
 
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  legislation on copyrights and patents, develop an IP trading hub, and actions pertaining to 
enforcement. Further elaboration by the delegation of Hong Kong, China was appreciated.  
1.10.  Hong Kong, China boasted some of the most efficient and speediest customs clearance 
procedures in the world. And it had continued to implement measures to facilitate trade over the 
review period, including the adoption of an auth orized economic operator scheme. Members liked 
to learn more about the particulars of this scheme and its results so far.  
1.11.  In the previous Review, Members had recommended that Hong Kong, China eliminate excise 
duties on spirits, as it had successfully done for wine. Perhaps, the delegation of Hong Kong, China 
could brief Members on its views in this regard. 
1.12.  In the TBT and SPS areas, questions had been raised regarding Hong Kong, China's 
adoption of international standards, accreditation systems, import procedures for high risk food 
items, application of OIE standards for imports of poultry meat; and the basis for the marketing 
ban on formula milk for infants. Members also appreciated to hear from Hong Kong, China on these issues.  
1.13.  Before closing her introductory remarks, the Chairperson wished Hong Kong, China a 
successful Trade Policy Review and looked forward to active engagement by Members. 
1.14.  Finally, she informed Members that the podcast of this meeting could be accessed on the 
Members' website after the first day of the meeting. WT/TPR/M/306 • Hong Kong, China 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF HONG KONG, CHINA 
(MS. CAROL YUEN) 
2.1.  I have great pleasure to be here today to represent Hong Kong, China (HKC) in this Trade 
Policy Review meeting (TPR). We highly value the TPR mechanism which provides an effective 
platform to enhance transparency and an excellent  opportunity to foster a better understanding of 
Members' trade and economic policies. 
2.2.  This is the fifth review of HKC since the establishment of the Hong Kong Special 
Administrative Region of China in 1997. I thank you all for coming to the meeting, and my 
particular appreciation goes to Ambassador Mariam Salleh for chairing the meeting and Ambassador Ronald Saborío for serving as the Discussant. I would also like to thank the WTO Secretariat for all its hard work in preparing for this TPR. 
The macro picture 
2.3.  Let me begin by updating Members on our macroeconomic developments since the last TPR 
in 2010. 
2.4.  Since our last TPR, HKC's economy has grown continuously despite a challenging external 
environment. We staged a strong rebound from the recession inflicted by the 2008 global financial crisis, with a visible 6.8% growth in 2010. Our ec onomy attained further growth of 4.8% in 2011, 
1.5% in 2012 and 2.9% in 2013, despite the uns teady external environment and the slow 
recovery of major advanced economies. In 2013, our GDP was 14% higher in real terms than its 
pre-crisis peak in 2008. It continued to maintain a moderate growth in the first three quarters of 
2014. Our domestic labour market was in a st ate of almost full employment, with the 
unemployment rate staying low at 3.3%.  
2.5.  The medium-term outlook for our economy is positive. HKC is well-positioned to leverage on 
Asia's, especially Mainland China's, economic strength in moving towards a high value-added, 
knowledge-based economy, yet the legacy of the global financial crisis may weigh on global 
economic performance in the medium term. The trend GDP growth rate in real terms is forecast at 
3.5% per annum from 2015 to 2018. Investments in large-scale cross-border and domestic 
infrastructure projects will continue. These projec ts will enhance the competitive edge and growth 
potential of our economy. 
Role of the Government in the economy 2.6.  The institutions and policies that have served HKC well all along include the rule of law, free 
and open market, low and simple tax system, and a level playing field for business. These remain 
the bedrock of our prosperity. We are firmly committed to pursuing policies and an institutional framework that allow the full play of market forc es. In the Index of Economic Freedom released by 
The Heritage Foundation in 2014, HKC ranks first for 20 years in a row. Canada's Fraser Institute 
has also consistently ranked HKC as the freest economy. According to the World Bank's Doing Business 2015 Report, we remain as the third easiest place to do business in the world. 
2.7.  While upholding a pro-market philosophy, we re cognise that the Government plays a pivotal 
role in the economy in the provision of public institutions, infrastructure, and sound regulatory frameworks. The Government also redresses market failures, engages in government-to-government negotiations to broaden the market access for our industries, and at the macro-level 
p r o v i d e s  t i m e l y  s u p p o r t  m e a s u r e s  t o  c o u n t e r a c t  s e v e r e  e x t e r n a l  s h o c k s  i n  o r d e r  t o  s a f e g u a r d  
macroeconomic and financial stability.  
2.8.  HKC's competitiveness is always high on the Government's agenda. In recent years, the 
Government has rolled out various measures to enhance the pillar industries such as trading and 
logistics, financial services, tourism, and business and professional services. With a view to broadening our economic base, efforts have also been made to cultivate emerging industries and 
to help our enterprises explore new export market s. To attain sustainable development over the 
longer term, we will continue to invest heavily  in education and infrastructure to enhance our 
economic capacity, re-examine our population poli cy to relieve the impacts of population ageing, 
and increase land supply to provide the necessary room for further development. WT/TPR/M/306 • Hong Kong, China 
 
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  Synergy between HKC and Mainland China 
2.9.  Over the years, we have been benefiting significantly from Mainland China's economic reform 
and rapid development.  
2.10.  The advent of the Mainland and Hong Kong Closer Economic Partnership Arrangement 
(CEPA) in 2003 and its continuous broadening over the years have enabled HKC to ride on its 
competitive strength in the services sector.  
2.11.  HKC has a unique role in the internationalisation of Renminbi (RMB) and has developed into 
an offshore RMB business centre and asset mana gement centre. The processes of urbanisation, 
industrial upgrading and development of the services sector in the Mainland, together with market-oriented reforms in the Mainland financial sector should offer ample opportunities for us and render solid support to our economic growth going forward. 
Staunch supporter of the mu ltilateral trading system 
2.12.  Let me now turn to our trade policy. The multilateral trading system as embodied in the 
WTO is the cornerstone of HKC's trade policy. As a small economy that has thrived on free trade, 
HKC believes a multilateral approach to trade liberalisation is our best option. HKC fully supports 
early conclusion of the Doha Round. We stand ready to work constructively with other Members towards an outcome that will strike a balance between agriculture, NAMA and services, with 
development at its core. 
2.13.  HKC considers the Bali Package agreed at the Ninth Ministerial Conference (MC9) an 
important breakthrough in multilateral trade negotiations. The Trade Facilitation Agreement within the Bali Package is the first multilateral trade agreement concluded since the establishment of the 
WTO. It contributes to the efficient movement of goods across borders and benefits all WTO 
Members. Other Ministerial Decisions in the Package relating to Agriculture, Development and Least-Developed Countries Issues must also be taken forward. We are therefore very pleased to 
note that WTO Members are back on track, and on ce again ready to implement the Bali Package in 
full. 
2.14.  With regard to the post-Bali work programme, we remain open-minded. We are willing to 
explore, in a positive spirit, any proposals that are conducive to the negotiation process and 
helpful in generating consensus. We hope that work in this area would proceed without further delay. 
HKC's participation in preferential trade agreements 
2.15.  HKC also maintains an open mind on bilateral, plurilateral and regional free trade 
agreements (FTAs), with the belief that WTO-consistent FTAs would be building blocks to global trade liberalisation. So far, we have signed four FTAs, respectively with Mainland China, New 
Zealand, the Member States of the European Free Trade Association (EFTA) and Chile. In July this 
year, we have also commenced negotiation of an FTA with the Member States of the Association of Southeast Asian Nations (ASEAN). We will continue to explore opportunities for forging high quality 
FTAs with other economies. We are in parallel taking part in the negotiations on the expansion of 
the Information Technology Agreement, Trade in Services Agreement and the Environmental 
Goods Agreement. 
International Financial Hub 
2.16.  HKC is essentially a services economy. The cont ribution of services to our GDP amounts to 
93% (2012). The major developments in our services sectors have been detailed in the Secretariat Report and Government Report. There is not enough time for me to go into details in each of the 
services sectors but I still would like to highlight developments in our financial services and dispute 
resolution services. 
2.17.  Our stock market is the second largest in Asia and sixth globally in terms of market 
capitalisation. In terms of fund raising, the Stock Exchange of Hong Kong was the top exchange WT/TPR/M/306 • Hong Kong, China 
 
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  for IPOs for three consecutive years in 2009-2011 and one of the top five exchanges in the past 
decade. 
2.18.  In the bond market, the Government has successfully issued Islamic bonds in September 
this year. This inaugural sukuk offering has marked the first US dollar sukuk originated by an 
AAA-rated government in the global Islamic financial market and the transaction recorded a heavy 
oversubscription. We have also updated our laws  to meet evolving market needs and improve 
market quality. For example, the new Companies Ordinance has come into effect to further 
improve our business environment and enhance corporate governance.  
Centre of Dispute Resolution 2.19.  The Government is also committed to strengthening HKC's legal and dispute resolution 
services. 
2.20.  In respect of arbitration services, arbitral awards made in HKC are enforceable in more than 
150 jurisdictions under the New York Convention. Arbitral awards made in HKC and Mainland China are enforceable reciprocally, so are those made in HKC and Macao, China. These 
developments have enhanced HKC's status as a centre for international legal and dispute 
resolution services in the Asia-Pacific Region. 
Enhancing competition 
2.21.  HKC recognizes that a free and competitive market is the backbone of our economic 
success. In 2012, we enacted the Competition Ordinance which established a legal framework to prohibit anti-competitive conduct that has the object or effect of preventing, restricting or distorting competition. Under the Ordinance, a Competition Commission is established as an 
independent statutory body responsible for investigation and enforcement actions. A Competition 
Tribunal is also established to hear and adjudicate competition-related cases.  
2.22.  The Government will put the Competition Ordinance into full operation when all preparatory 
work is completed. 
Intellectual property rights  2.23.  We note that many Members have indicated interest in various initiatives we have put in 
place concerning intellectual property (IP) rights. 
2.24.  We protect IP rights through comprehensive legislation, rigorous enforcement action, 
sustained public education, close liaison with stakeholders, cross-boundary cooperation and promotion of IP trading.  
2.25.  HKC is fully aware of the challenges posed by technological advancements in the digital 
environment and has been vigilant with such developments. 
2.26.  For copyright protection, HKC introduced a new Copyright (Amendment) Bill into the 
legislature in June 2014. The Bill aims to update our copyright regime to ensure that it can keep 
pace with technological advancements and developments in other places. The key proposals of the Bill include introducing a new communication right and the corresponding criminal sanctions 
against unauthorised communication, expanding the scope of copyright exceptions to cover 
education, parody and other reasonable uses, establishing a safe harbour for online service providers and listing additional factors for the court's consideration in assessing damages.  
2.27.  We are also actively promoting HKC as a premier IP trading hub in the region. In 
March 2013, we set up a Working Group on IP Trading to advise the Government on the overall 
strategies. In November 2013, the Working Group promulgated a strategic framework. Specific policies and support measures are now being explored. 
2.28.  In these opening remarks, I have outlined HKC's efforts to enhance our competitive 
advantages and support the development of our industries. We fully appreciate that besides such efforts, a stable external environment is essent ial to the sustainable development of our economy WT/TPR/M/306 • Hong Kong, China 
 
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  and the global economy. In this regard, the multilateral trading system has proven to be crucial to 
the continued growth of Members' economies. HKC will continue to play an active and constructive role in strengthening the WTO and the multilateral trading system. Thank you. WT/TPR/M/306 • Hong Kong, China 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  Greetings to Ms. Carol Yuen, Deputy Secretary for Commerce and Economic Development; to 
her delegation; to Ms. Irene Young, Permanent Repr esentative of Hong Kong, China to the WTO; 
and to Members. 
3.2.  Having the opportunity to participate in the Trade Policy Review of Hong Kong, China is a 
great chance for WTO Members to look into one of  the most market-friendly and open economies, 
as described by the report by the WTO Secretariat. And being the discussant is a genuine privilege 
for me. 
3.3.  Let me highlight that Hong Kong, China adopted the alternative timeframe for this review. 
This adds to the transparency a better understandi ng of their trade policy. I encourage Members to 
follow that example. I would like to commend Hong Kong, China for its positive contribution to the 
multilateral trading system. Hong Kong, China is an example of consistent and positive support to 
the work of the Organization and to the efforts to maintain an open trade regime. Hong Kong, China performs a valuable leadership in the negotiations under the DDA. It positively contributed 
to the Trade Facilitation Agreement. Not surprisingly , it was the first Member to notify its category 
A commitments.   
3.4.  Hong Kong, China makes part of the efforts under the Trade in Services Agreement and the 
Environmental Goods Agreement as well. They are also a serious participant in the WTO dispute 
settlement mechanism. 
3.5.  Trade plays an essential role in Hong Kong, China’s economy. As figures show, Hong Kong, 
China is the world’s seventh largest importer and the ninth largest exporter of goods, and the 
world’s sixth largest exporter of services.   
3.6.  During the period under review, trade in goods and services represented each year more 
than four times its GDP reaching 458% in 2012. It ranks second in the world in the trade to GDP 
ratio, following Singapore, another open economy.  
3.7.  Hong Kong, China is a leading trade center, hosting the world’s busiest air-cargo hub, and 
one of the top five container ports in the world. It has been successful in taking profit of its 
strategic location but also creating competitive advantages in trade and logistics services to 
become an important gateway for business in Asia.  
3.8.  Merchandise trade figures exemplify what it means to be an international trading hub. 
Domestic exports account for only 2% of total exports and have decreased on average -7.8% 
during the past three years, while re-exports continued growing steadily at an average of 10% 
annually during the period under review, and reached US$452 billion in 2013.  
3.9.  The graph shows a persistent trade deficit, which is a result of the decreasing trend in 
domestic exports. However, this has been offset by the large surplus in services.  
3.10.  Mainland China has been Hong Kong, China’ s largest trading partner since 1985, and 
represents today 51% of its total trade compared  with only 9% in 1978. The "Mainland and Hong 
Kong, China Closer Economic Partnership Arrangement" (CEPA) entered into force in 2006 and has 
helped strengthen the relationship, and has confirmed HKC as a key intermediary for trade with Mainland. The figures suggest that this tendency will continue, making Hong Kong, China’s economy increasingly intertwined with the economic performance of the Mainland. 
3.11.  As for services, the period under review conf irms Hong Kong, China as a services-driven 
economy. The rapid growth of the services sector in  the last two decades has turned it into one of 
the most service-oriented economies in the world.  This sector accounted for 93% of GDP, 88.4% 
of total employment in 2012 and US$137 billion in total services exports in 2013.  
3.12.  The key four services industries contribute to 47% of total employment. Trade related 
services represent 44% of the employment pr ovided by the four industries, followed by 
professional services and tourism. To complement its modern port and transport infrastructure, 
Hong Kong, China hosts a sophisticated trade services and logistics industry, which is adding new WT/TPR/M/306 • Hong Kong, China 
 
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  value to services such as inventory management, regional distribution and global supply chain 
management. 
3.13.  The financial services sector is mainly devoted to offshore services. Since the last TPR, new 
legislation has been implemented to strengthen financial supervision.  
3.14.  Appropriate policy choices have facilitated trade, have further liberalized services and 
maintained duty free for goods, which in  turn has enhanced competitiveness. 
3.15.  Hong Kong, China's efforts to allow the full play  of market forces under the state of law are 
paying. Hong Kong, China has brought to the tabl e very high efficiency standards. The summary 
table shows that it completes trade procedures in  half the time of the OECD average and almost 
one fourth of the time required on average in its region. It is also extremely competitive in trade 
cost procedures.  
3.16.  Hong Kong, China is ranked number 1 in the Economic Freedom Index of the Heritage 
Foundation and has repeatedly been in the top positions of other performance rankings, including the World Economic Forum Global Competitiv eness Index and the World Bank’s Logistics 
Performance Index.  
3.17.  In the 2014 World Bank's Doing Business, it  ranked third overall and number 2 in the 
Trading Across Borders indicator.  
3.18.  In what comes to investment, Hong Kong, China received on average 24% of the total 
investment flows destined to Asia and Oceania since the last review. Perhaps even more striking is the fact that it represented almost 44% of the regions' total outbound investment flows during this period. 
3.19.  According to 2012 data, Hong Kong, China is the third largest recipient of investment flows 
in the world, but also the fourth largest source of world FDI outflows.   
3.20.  All services sectors are open to foreign inve stment, and Hong Kong, China offers a level 
playing field for foreign players. Its regulatory effi ciency also draws foreign companies to invest, to 
open offices and regional headquarters in Hong Kong, China. The new Companies Ordinance (company law) that entered into force in March of this year further facilitates business operations, 
by streamlining procedures and simplifying obligati ons. Using e-submission facilitates a person to 
register a company in as little as an hour.  
3.21.  I would like to highlight one of the noteworthy features in Hong Kong, China's trade policy 
during the period of review, which is the negotiation of free trade agreements.  
 Hong Kong, China implemented the Closer Economic Partnership Agreement (CEPA) with 
 Mainland China in 2006, which was the first one that entered into force;  
 It was not until 2011 that a second Agreement entered into force with New Zealand; 
 Then, Hong Kong, China enacted a FTA with the European Free Trade Association in 2012; 
 and negotiated another FTA with  Chile, which just recently entered into force in 2014.   
 It is currently negotiating an agreement with ASEAN.  
3.22.  This has not diminished Hong Kong, China’s very active support of the multilateral trade 
negotiations, which remain central in their trade policy priorities. 
3.23.  Hong Kong, China's open market economy is  well complemented with other effective 
policies. It applies a simple tax system based on low rates; the maximum salaries tax rate is 15% 
and the profits tax rate is a flat 16.5.  
3.24.  The Government is relatively small and its expenditure has been a constant 13% of GDP 
over the last five years, implying that it is effi cient and operates within established limits. A sound WT/TPR/M/306 • Hong Kong, China 
 
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  fiscal policy and fixed exchange rate have also contributed to FDI attraction and a healthy business 
environment.  
3.25.  During this period, Hong Kong, China implemented trade facilitation measures, including the 
introduction of an authorized economic operator  program, which provides member companies with 
priority clearance and reduced inspections. It also put in practice an intermodal transhipment 
facilitation scheme for cargoes.  
3.26.  In another effort to improve its competitiveness, the Government enacted in 2012 the 
Competition Ordinance to establish a legal framework to prohibit anti-competitive conduct, but it 
has not been fully implemented.  
3.27.  It has also been quite successful in the fight to eradicate corruption. In the last survey 
conducted by the Government on this matter, only 1.2% of the respondents said to have 
experienced corruption in the previous year.  
3.28.  Besides taking action in regulatory improvements, Hong Kong, China is also committed to 
investing in infrastructure.  
3.29.  Please allow me to signal a growing concern: the growing inequality. This has been a trend 
since the 1970s and may take a toll in their well-being. Young people are the ones who are feeling the strongest pressure of the income gap, particularly as the cost of living and the housing prices 
continue to rise. 
3.30.  Another challenge for Hong Kong, China is the aging of its population. The latest projections 
by the Census and Statistics Department show that po pulation will continue to grow in the next 20 
to 30 years, but only at a decelerating pace, fr om 7.2 million today to 8.5 million in 2041. There 
will be a startling shift in composition: in less than 30 years’ time, the number of elders aged 65 
and above will surge from the current 1 million to 2.6 million in 2041. 
3.31.  This means that there will be a decrease in the labour force and an impact on the tax 
revenue.  
3.32.  This calls for the promotion of a more inclusive and cohesive environment, so that migrant 
workers see Hong Kong, China as an attractive destination to work and live. The Government is 
already thinking about ways to cope with this situation and has identified new economic 
opportunities, catered for the elderly.  
3.33.  An area for improvement is the tariff bindings  in the WTO. Having more than half of the 
tariff schedule unbound, although Hong Kong, China applies duty free on an MFN basis, jumps out 
as an inconsistency in its trade policy.  
3.34.  Some time ago, Minist er Tim Groser from New Zealand made an interesting remark on the 
occasion of the coming into force of New Zeal and-Hong Kong, China agreement. He said that 
under the agreement, duty-free access for all New Zealand goods exported into Hong Kong is 
guaranteed into the future. "Guaranteed into the future" means legal binding of tariff treatment. What Minister Groser celebrated was the predic tability that bindings provide. I very much 
encourage Hong Kong to complete this task in the WTO.   
3.35.  Let me conclude my remarks by saying that Ho ng Kong, China has consolidated itself as an 
open and free market economy with very positi ve economic and human development results. My 
perception is that it never sleeps, and is always innovating, thinking ahead, taking into 
consideration expected and unexpected changes, and aiming to stand out as one of the best. WT/TPR/M/306 • Hong Kong, China 
 
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  4  STATEMENTS BY MEMBERS 
SWITZERLAND 4.1.  We are impressed by Hong Kong, China’s achievement of upholding economic – and in 
especially external – competitiveness during the reporting period amidst a challenging global 
environment. We also note the Government’s focus on further strengthening key services 
industries as well as the territory’s role as a trade hub. We believe that Hong Kong China’s very 
open, market-friendly environment will be an important asset when addressing challenges in 
coming years, including demographic changes and inflationary pressure.  
4.2.  We would like to thank the Delegation of Hong Kong, China for the written answers provided 
to our questions as well as to those of other Members. Notably the detailed information offered on the new competition law and with respect to best practices in its implementation are being 
examined with great interest by our authorities. We also appreciate Hong Kong China’s 
commitment expressed in its written answers to reco nsider its status of a “developing country” in 
the WTO as an when the membership of this Organization will be ready to conduct such a 
discussion. 
4.3.  Turning to bilateral economic relations between Hong Kong, China and Switzerland, I am 
pleased to say that these have developed very we ll since the last TPR. In terms of merchandise 
trade, Hong Kong, China even has become Switzerland’s second most important partner in Asia by 
last year. A new record level of Swiss FDI stoc ks in Hong Kong, China, reached in 2012, also 
testifies to the attractiveness of the territory for our businesses. A free trade agreement between 
the EFTA States and Hong Kong, China, which en tered into force in 2012, has come to further 
underpin a dynamic economic relationship.    
4.4.  Before concluding, we would like to highlight and commend the important and constructive 
role of Hong Kong, China in the WTO and its support for the multilateral trading system. In this 
context, Switzerland particularly welcomes Hong Kong, China’s policy of not applying trade 
remedies and of not having resorted to protectionist measures during recent crises. For economies such as the ones of Hong Kong, China and of Switzerland, a strong, rules-based multilateral 
trading system remains of an especially high importance.  
NEW
 ZEALAND 
4.5.  The reports from Hong Kong, China and the Secretariat provide a comprehensive outline of 
Hong Kong, China’s trade policy. 
4.6.  Hong Kong, China is one of the world’s most prominent international trade and financial hubs 
and continues to be a significant conduit for trade and investment flows between New Zealand and China. 
4.7.  The lively trade links between the two economies have been underpinned by the New 
Zealand-Hong Kong, China Closer Economic Partne rship Agreement (CEP), which came into force 
in January 2011. New Zealand was the first country  after China to sign such an agreement with 
Hong Kong, China. The CEP is a comprehensive and high quality agreement that supports what 
was already an open and sophisticated trading re lationship, by guaranteeing duty-free access for 
New Zealand goods into Hong Kong and a high quality services outcome that supplements the 
WTO General Agreement on Trade in Services. Strategically, the agreement complements our Free 
Trade Agreement with China.  
4.8.  New Zealand commends Hong Kong, China for its staunch support for the multilateral trading 
system, and the proactive strides it has taken during the review period to further enhance 
transparency, simplification and liberalization. As the Secretariat report noted, Hong Kong, China 
achieved the landmark development of its first comprehensive competition law and has continued to enhance intellectual property protections. We also noted Hong Kong, China’s aim to become a 
global intellectual property and reminbi trading hub. 
4.9.  We have sought clarification in our written questions about several areas and are studying 
the responses carefully. While we commend Hong Kong, China for its commitment to applying WT/TPR/M/306 • Hong Kong, China 
 
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  tariffs at zero, we have asked about its intentions to increase the proportion of its tariff lines that 
are bound in its WTO schedule as Ambassador Saborío has highlighted today. We were also interested to learn how Hong Kong, China’s requirement for services suppliers to possess local experience affects the ability of foreign services  suppliers to bid for public works construction 
contracting opportunities. We have also noted that Hong Kong, China’s share of government 
procurement to GDP has been relatively modest over the review period. 
4.10.  We have an interest in the long-term development of Hong Kong, China – a fact borne out 
by its importance as a trading partner for New Zealand. As such, New Zealand would welcome 
further elaboration on the strategic decisions Hong Kong, China might make to: 
1. maintain its position as a leading trading and shipping hub; 
2. if there would be plans to review the exchange rate that could affect currency stability in the 
 future; and  
3. how Hong Kong, China sees its role as a reminbi trading hub as reminbi business expands to 
 other financial centres. 
4.11.  Hong Kong, China’s notification to the SCM Committee of its low-interest loans for the 
fisheries sector provides greater detail than the TPR report. This includes the fact that loans are provided for upgrading fishing vessels. We we lcome Hong Kong, China’s transparency and 
engagement on their fisheries programme in the SCM Committee, and take the opportunity here to 
encourage reform of such support given the contri bution to overcapacity and overfishing of such 
vessel related subsidies. 
4.12.  Questions aside, New Zealand congratulates Hong Kong, China for maintaining its status as 
one of the most market-oriented and open economies in the world, and for its constructive 
engagement across the range of WTO initiatives, including its involvement in the Trade in Services Agreement (TiSA) negotiations. Hong Kong, China’s role in the WTO Trade Facilitation negotiations 
also deserves a special mention. We welcomed Hong Kong, China’s early notification of all 
provisions within the Trade Facilitation Agreement in category A. Throughout the negotiation, Hong 
Kong, China provided an excellent model of the benefits that customs reform can offer for all 
Members.   
COLOMBIA 4.13.  In the course of our studies, each of us qu ite probably had a classmate that stood out for 
his or her high academic performance. 
4.14.  The facts show that Hong Kong, China is that academically gifted student in the WTO, with 
the following features: 
 An open, international trade oriented economy. 
 Third place in the 2015 Doing Business Index. 
 First place in the 2014 Index of Economic Freedom. 
 Sound economic fundamentals, a macroeconomic framework marked by fiscal prudence, a 
 well regulated financial system and a simple tax structure. 
 Few non tariff measures. 
 Transparent and simple TBT and SPS systems. 
 No restrictions on investment, capital flows or foreign exchange. 
 All services sectors are open to foreign in vestment, and foreign services providers and 
 foreign investors generally receive national treatment. WT/TPR/M/306 • Hong Kong, China 
 
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   Hong Kong, China has become a regional and global hub for financial services and maritime 
 and air transport. 
 Impeccable record in submitting notifications to the WTO. 
 No involvement as a respondent in any WTO dispute settlement cases during the period 
 under review. 
4.15.  Although that outstanding student may have earned very high marks in mathematics or 
science, there may be subjects like sports, for ex ample, in which he or she has difficulty and 
should try to score better. According to the Secretariat report, Hong Kong, China faces a number 
of policy challenges, such as: 
 Preserving fiscal sustai nability in the face of an ageing population; 
 addressing income inequalities and social welfare, health, and education needs; and 
 keeping inflation in check. 
4.16.  In any case, unlike most gifted students, many  of whom tend to be arrogant, Hong Kong, 
China is an example not only in terms of modesty and keeping a low profile, but also in setting 
clear objectives to move further and further ahead. 
4.17.  We therefore urge Hong Kong, China to pursue th e goal stated in its report of strengthening 
those areas in which it has a competitive advantag e and expanding its industries, with a view to 
promoting sustainable economic development. 
4.18.  We also encourage it to continue playing an active role in the WTO by promoting the 
consolidation of a free, open, and stable multilateral trading system conducive to the successful conclusion of the Doha Development Agenda. 
4.19.  We wish the Hong Kong, China delegation every success with this trade policy review. 
CANADA 4.20.  We commend Hong Kong, China for its continued strong economic performance in recent 
years and for being one of the world’s most market -friendly and open economies. As the report by 
the WTO Secretariat noted, Hong Kong, China has been served well by its sound economic 
fundamentals such as a healthy fiscal balance, a strong external financial position, flexible markets 
and a well regulated financial system. We hope that Hong Kong, China will continue with the sound 
policies that have allowed it to obtain some of the highest rankings in the world in terms of economic freedom, competitiveness and ease of doing business. 
4.21.  It is also notable and commendable that through fiscal prudence, Hong Kong, China has 
been able to maintain a surplus in public finances throughout the review period. Canada shares 
this commitment to fiscal prudence.  
4.22.  Canada’s bilateral relations with Hong Kong, China reflect long-standing and comprehensive 
political, commercial and people-to-people ties. Canada and Hong Kong, China share common 
values, including a respect for the rule of law, transparency and openness. Hong Kong, China’s economic success is a result of its respect for those values. Many Canadian companies are 
continuing to choose Hong Kong, China as a base for their regional operations given its economic 
policies that are supportive of business, its transp arent regulatory regime, its strong legal system 
founded on the rule of law and its highly educated workforce. It is estimated that close to 200 Canadian firms have offices in Hong Kong, China. The rule of law is particularly important to 
business and trade and an independent judiciary helps to ensure the certainty and predictability 
that traders and investors need. 
4.23.  Canada and Hong Kong, China enjoy a strong trade and investment relationship. In 2013, 
Hong Kong, China ranked as Canada’s sixth largest market for merchandise exports. Canada 
exported $4.9 billion in merchandise to Hong Kong, China, an increase of 99% compared to 2012. WT/TPR/M/306 • Hong Kong, China 
 
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  Meanwhile, reflecting the growing importance of services to Hong Kong, China’s economy, it 
currently ranks seventh as a global destination for Canadian exports of services, totalling nearly $1.7 billion in 2013. Hong Kong, China is also a major investment destination for Canada, with the stock of Canadian direct investment in Hong Kong, China amounting to CAD$5.1 billion as of 2013, 
which makes it the most popular destination for Canadian foreign direct investment in Asia.  
4.24.  Canada and Hong Kong, China also share stro ng people-to-people ties. Hong Kong, China 
boasts one of the largest Canadian communities abroad, estimated at 295,000 individuals, 83% of 
whom hold dual citizenship. This community, along with hundreds of thousands of people of Hong 
Kong, China descent in Canada plays a dynamic role in our bilateral relationship by promoting two-way trade and investment and building goodwill.  
4.25.  Moreover, Hong Kong, China plays a vital role as a conduit for investment from Mainland 
China and for other Asian investment into fore ign markets such as Canada. Canadian firms, 
notably natural resources companies, are already taking advantage of Hong Kong, China as an 
efficient international financial center to directly access Chinese capital and of the success of its 
mature and active stock market, now one of the largest in Asia and indeed the world. The 
development of Hong Kong, China as a platform to raise capital, combined with its role as an intermediary under China’s “go abroad” policy, constitute an opportunity for Canadian financial 
institutions and professional services companies to expand their activities in the region. Some of 
Canada’s leading financial institutions have had a longstanding and significant presence in Hong Kong, China, with a relationship that dates back to the late 19th century. All six major Canadian 
banks now have operations in Hong Kong, China. Canadian financial institutions present in Hong 
Kong, China benefit from its status as the worl d’s largest renminbi (RMB) offshore centre and 
Canada looks forward to continuing to participate in the growing internationalization of the currency. 
4.26.  In light of the strong trade and investment relationship between Canada and Hong Kong, 
China, as well as Hong Kong, China’s relationship with Mainland China, the Canadian Intellectual Property Office (CIPO) and its counterpart in  Hong Kong, China have begun a program of 
cooperation that includes examiner training and exchange of information on business services. We 
have been impressed in particular with Hong Kong, China’s innovative approaches in creating an electronic marketplace for patents. We are interested in learning even more about the particulars of Hong Kong, China’s intellectual property regime to better inform our understanding of its 
domestic framework policies. 
4.27.  Finally, I would like to commend Hong Kong, Ch ina for the landmark adoption of its first 
comprehensive competition law in 2012. We welcome the elimination of all anti-competitive 
practices. 
4.28.  Canada will continue to work together with Hong Kong, China in fora such as APEC and the 
WTO to advance our common interest in ensuring an effective rules-based trading system. 
MEXICO 
4.29.  I should like to extend a warm welcome to the Hong Kong, China officials joining us here 
today and especially to their head of delegation, Deputy Secretary for Commerce and Economic Development Carol Yuen, and to pay tribute to th e tremendous work accomplished by Permanent 
Representative Irene Young. 
4.30.  As we did four years ago, we can see that Hong Kong, China's trade liberalization and 
investment policies have performed very well indeed. The period under review – 2010-2013 – 
came just after the global financial crisis, which makes this particularly relevant. 
4.31.  It is remarkable that despite the prevailing global uncertainty Hong Kong, China's economy 
grew at an average rate of 3.1% over the review  period, sustained by solid domestic demand, and 
is forecast to expand by 3.7% this year. Such an achievement would clearly have been impossible 
had the Hong Kong, China economy not been underpinned by sound economic fundamentals such as fiscal prudence, flexible markets, a strong financial system and moderate rates of inflation and exchange. WT/TPR/M/306 • Hong Kong, China 
 
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  4.32.  The Secretariat has identified a number of policy challenges for Hong Kong, China, which 
include: (i) ensuring affordable housing supply as well as a stable property market; and (ii) addressing income inequalities and needs in terms of social welfare. 
4.33.  As regards the first challenge, it is good news that credit granted to businesses and families 
has reached record levels, as this will undoubtedly facilitate the purchase of housing. In agreement 
with the International Monetary Fund, the authorities have also taken steps to stabilize the property market. 
4.34.  As regards social inequality, it should be noted that a Poverty Commission was established 
in 2012 and that last September saw the publication of the first official poverty line, which will be 
used to facilitate policymaking and to evaluate  the effectiveness of policy action. A statutory 
minimum wage was introduced in 2011 and increased by 7.3% in May 2013. Albeit insufficient, the 
measures taken are on the right track to address these major challenges. 
4.35.  An additional challenge facing Hong Kong, China in the longer term is the ageing of its 
population. Only one in four inhabitants is aged under 25 and the average age is 43.2 years. This 
situation will undoubtedly have a serious impact on the tax burden. 
4.36.  We welcome the adoption in 2012 of Hong Kong, China's first competition law, which applies 
across the board and follows international best prac tices. According to the Secretariat report, in 
Hong Kong, China: 
 Customs procedures are among the easiest and fastest worldwide; 
 the TBT and SPS systems are transparent and simple; 
 there are no export taxes; 
 as to services, the applied regime is quite liberal, mainly in the financial services, maritime 
 transport, air transport and distribution clusters. 
4.37.  However, this liberal regime does not apply to the consumption of tequila, which is subject 
to discrimination compared to beverages of lower alcoholic strength by volume. Tequila is taxed at 
100% whereas wine is zero rated, and we all know that tequila is better for our health. 
4.38.  I would like to express renewed congratulations to the Hong Kong, China delegation and 
convey our very best wishes for a highly  constructive outcome of this review. 
4.39.  We thank Hong Kong, China for replying to my country's questions and wish the Hong Kong, 
China officials who joined us here a good journey back to Hong Kong. 
CHILE 
4.40.  On behalf of the Permanent Mission of Chile, I would first of all like to extend a special 
welcome to the distinguished delegation of Hong  Kong, China, led by Her Excellency Ms Carol 
Yuen, Deputy Secretary for Commerce and Economic Development. 
4.41.  Chile also welcomes the Hong Kong, China Mission in Geneva, and especially Permanent 
Representative Irene Young, whom I thank for the report submitted for this review process and for 
the replies provided to Chile's questions, which range from intellectual property and air transport 
services to matters relating to competition policy. 
4.42.  We also appreciate the Hong Kong, China Mission's undertaking to provide us as soon as 
possible with a copy of the Memorandum of Un derstanding between the Competition Commission 
and the Communications Authority, to which reference is made in paragraph 3.113 of the 
Secretariat report. 
4.43.  We are grateful to the Secretariat for producing this thorough and comprehensive report, 
which has proved most useful, and thank H.E. Ambassador Ronald Saborío, Permanent 
Representative of Costa Rica, for his contribution as the discussant. WT/TPR/M/306 • Hong Kong, China 
 
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  4.44.  Chile and Hong Kong, China have concluded a bilateral free trade agreement, which recently 
entered into force, on 9 October last. 
4.45.  This is a comprehensive agreement which covers a variety of areas of bilateral trade ranging 
from financial services and trade in goods to government procurement and technical barriers to 
trade. 
4.46.  We have also begun negotiating a comprehensive agreement on investment. 
4.47.  These agreements will help give a fresh boost to bilateral trade, which has declined sharply 
since 2009, and will enable us not only to extend it  to other spheres such as cross border services, 
including financial services, and higher value added production, but also to seek greater balance in 
the structure of reciprocal trade. 
4.48.  Both Hong Kong, China and Chile are WTO and APEC members. 
4.49.  We also note that our two countries have trade agreements with major economic players in 
the Asia Pacific and European regions. 
4.50.  Our view after examining the reports is that Hong Kong, China is clearly a very special case: 
(i) it has free port status, that is, it applies no tariffs; (ii) it is a net importer of manufactured and 
food products; (iii) services account for 93% of its GDP and 88% of its labour force; and (iv) it is a developed economy, with a per capita income of $52,700 in terms of purchasing power. 
4.51.  In our opinion, Hong Kong, China is a model from the standpoint of institutional capacity, 
pragmatism and economic success. 
4.52.  If we consider global rankings by international organizations, universities or think tanks, 
Hong Kong, China's economy is always among thos e topping the list for competiveness, openness, 
and commercial and financial innovation or development. 
4.53.  For the eighth consecutive time, the World Bank recently ranked Hong Kong, China first in 
terms of ease of doing business. 
4.54.  Furthermore, Hong Kong, China is an international trade oriented economy that implements 
policies in keeping with this paradigm. 
4.55.  The fact that it has adopted international standards as its own at the domestic level bears 
witness to the above. This could be interpreted as  a mere manifestation of regulatory authority, 
but for Hong Kong, China it is the outcome of  a consistent policy of proven efficiency. 
4.56.  As regards challenges still outstanding since the previous review, the non-binding of a 
substantial number of tariff lines is a question that remains open, considering that Hong Kong, 
China is a duty free customs territory. 
4.57.  We understand that there may be political or strategic trade reasons for this, but it is 
becoming increasingly difficult to measure the real impact of this policy on Hong Kong, China's 
economic development. 
4.58.  Having analysed the reports, one point regarding Hong Kong, China to which we would like 
to draw attention is its investment in science, technology and innovation, which is critical to 
addressing the challenges posed by the new economy. 
4.59.  Indeed, Hong Kong, China has an administrative  structure that selectively allocates funding 
for more than 3,000 specific projects, as well as special funds that go directly to universities, in order to foster technological development and spread its outcomes across the business world. 
4.60.  We would be extremely interested to know mo re about this structure and other ways of 
addressing the innovation challenge. WT/TPR/M/306 • Hong Kong, China 
 
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  4.61.  Specifically, we are struck by the role played by the Quality Assurance Agency in accrediting 
wine storage, retail and transport operators wi t h  g o o d  m a n a g e m e n t  s y s t e m s  a s  w e l l  a s  i n  
recognizing the sources of wines that are being traded, i.e. their traceability. Since Chile is a major producer and global exporter of wine, the steps ta ken by Hong Kong, China are of genuine interest 
to us. 
4.62.  Another point that emerges from the reports concerns the initiatives taken in regard to 
intellectual property and green industries. 
4.63.  In particular, we would be very interested to learn more about how the Intellectual Property 
Department of the Government of Hong Kong, China promotes awareness and observance of 
intellectual property rights through public education programmes. 
4.64.  As regards green industries, we note not only the level of public investment in 
infrastructure, but also the Government's initiatives to promote business opportunities for 
environmentally friendly products and services. 
EUROPEAN
 UNION 
4.65.  As the Secretariat's report notes, Hong Kong China remains one of the most open and 
liberal economies in the world, with some of the highest rankings in world indicators of economic 
freedom, competitiveness, and ease of doing business.  
4.66.  Hong Kong China’s sound economic fundamentals have enabled it to adjust swiftly to 
challenging external conditions, allowing its economy to grow, during the review period, at an average annual rate of 3.1%. 
4.67.  Hong Kong China is a highly externally-oriente d economy, with an impressive trade-to-GDP 
ratio of 458% in 2013 and ranking at the top places in terms of merchandise trade, financial 
external transactions, and stock market capitalization. The statistics show how trade is vital for Hong Kong China's economy and how, as such, its economy is strongly influenced by the global 
and regional economic conditions. 
4.68.  The EU appreciates that during the years under review, Hong Kong China has played an 
active role in the WTO and fully shares with Hong Kong China the objectives to foster progressive 
global trade liberalization and to strengthen the rules of the multilateral trading system. 
Furthermore, the EU shares the view that an expe ditious entry into force of the Trade Facilitation 
Agreement has to be considered a top priority for WTO Members. In this respect, the EU commends Hong Kong, China for having being the ea rliest WTO Member to have notified the WTO 
of the scheduling of all provisions in Section I of the Trade Facilitation Agreement as Category A 
commitments.  
4.69.  The EU would also like to acknowledge the active and positive role that Hong Kong, China 
plays in services negotiations in the WTO and beyond, reflecting the importance of the services 
sector in Hong Kong, China’s economy.  
4.70.  A word on the EU’s bilateral relationship with Hong Kong, China. The EU and Hong Kong, 
China are important trade and investment partners. The EU continues to be one of Hong Kong, 
China's main trading partners and trade relations have been growing steadily. In 2013, the EU maintained its position as Hong Kong, China’s second largest trading partner after Mainland China. Hong Kong, China is the EU's 16th largest trading partner for trade in goods. For trade in services, 
Hong Kong, China is EU's most important trading pa rtner in Asia after China, Japan and Singapore.  
4.71.  Hong Kong, China plays a key role as a regional hub for EU companies given its unique 
position and ample experience as service providers and facilitating EU companies' access to the 
Mainland and other major markets in the region. The rule of law in Hong Kong, China and the 
top-quality financial and related services are key to all of this. This is an environment in which European companies feel at home – or at least comfortably at work. The EU companies are well 
integrated and play a major role in the day-to-day business of Hong Kong, China, for instance in 
finance, shipping and logistics.  WT/TPR/M/306 • Hong Kong, China 
 
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  4.72.  Because of the close ties with Hong Kong, China, the EU is watching with interest the 
developments in trade policy between Hong Kong, China and China Mainland. We understand that the parties are working closely and cooperatively in order to reach a full liberalization of trade in services by the end of 2015. Hong Kong, China, in  its responses, declared that the parties have 
been taking steps to achieve this goal progressively and we would welcome additional information 
in this respect. The EU is also watching the free trade negotiations of Hong Kong, China with ASEAN that have just started. 
4.73.  Because of the strong engagement of EU companies in Hong Kong, China, the EU welcomes 
the adoption of Hong Kong, China first comprehensive competition law in 2012 and encourages Hong Kong, China to move forward to the actual enforcement of the law. The EU also encourages 
an extension of the merger control to cover all sectors of the economy that are currently excluded 
by the Ordinance.  
4.74.  Finally, the EU is looking forward to the adop tion and implementation of the new copyright 
bill which finally would bring Hong Kong, China's copy right regime in line with the laws in force in 
other developed countries.  
4.75.  In closing, I would like to emphasize that the EU continues to value the close work with the 
Hong Kong, China Government as well as with th e other WTO partners to strengthen and build on 
the WTO’s rules-based and cooperative foundation.  
PAKISTAN 4.76.  Hong Kong, China is rated as one of the world's best market oriented economies. It had a 
trade/GDP ratio of 458% in 2013, and highest rankin gs in several indices like economic freedom, 
competitiveness, and ease of doing business. Its op enness is grounded in free trade, low taxation, 
an attractive business climate, efficient logistics chain, diversified capital markets, independent legal system, and minimum intervention. Besides, being the world's 8th largest trading economy, 
it is also a major service economy, as services account for 93% of GDP and 88% of total 
employment. HKC is the world's largest free zone, re-exports constitute the bulk of its goods trade. However, its manufacturing is shrinking and now accounts for less than 2% of GDP. HKC 
runs a persistent deficit in the goods trade balanc e, which is, however, offset by services trade 
surplus. 
4.77.  Hong Kong, China's success is anchored in sound economic fundamentals, including a robust 
fiscal balance, a strong external financial position, flexible markets and a well regulated financial 
system. They served it well to shield it from the ravages of the global financial crisis. 
4.78.  Hong Kong, China possesses a successful track reco rd in several sectors of its economy. Its 
technology sector specialises in commercialisation, application and industrial engineering. 
Electronics sector is Hong Kong's largest export earner. In 2013, Hong Kong's exports of high-tech 
products amounted to US$226 billion, accounting for 50% of its total merchandise. 
4.79.  Electronic products, especially telecom equipm ent, semiconductors and computer items, are 
Hong Kong's major high-tech exports. High-profile foreign technology companies in Hong Kong 
include Nvidia (US), Texas Instruments (US), IBM (US), Sierra Wireless (Canada), Samsung (South Korea), Hitachi High-Technologies (Japan),  Siemens (Germany), Philips (the Netherlands), 
Huawei (Chinese mainland), and Macronix (Taiwan). 
4.80.  The Hong Kong Science and Technology Parks (HKSTP) alone houses more than 
300 technology companies. Overall, companies ba sed at the HKSTP are primarily involved in 
biotechnology, electronics, green technology, ICT,  and precision engineering. The Cyberport, a 
wholly-owned Hong Kong government facility, is a creative digital community and home to a 
cluster of more than 270 technology and digital content tenants. 
4.81.  Hong Kong has one of the highest concentrations of banking institutions in the world. 
Approximately 70 of the largest 100 banks in the world have an operation in Hong Kong. 
4.82.  HKC is also hailed as an international financial hub having strong linkage with Mainland 
China's capital market. Its reputation as a key financial centre is built on its high standard of WT/TPR/M/306 • Hong Kong, China 
 
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  market transparency, disclosure and prudently supervised financial institutions. It is also a premier 
offshore Renminbi (RMB) centre, due to the scheme for trade settlements in RMB and related financing activities. Hong Kong has an active and liquid private-sector bond market. Of interest is the fact that the Hong Kong Monetary Authority made an issuance of sukuk (the Islamic equivalent 
of a bond) in September of US$1 billion issuing that attracted US$4.7 billion in orders. 
4.83.  HKC has few NTMs. Its customs procedures are among the easiest and fastest in the world, 
and virtually all customs declarations and related documents are processed electronically. The TBT 
and SPS systems are transparent and relatively simple. No export taxes are applied. HKC 
maintains a simple tax structure with a narrow base and low rates. It applies a duty-free tariff regime on an MFN-basis, but more than half of its tariff schedule remains unbound in the WTO. HKC adopted its first comprehensive competition law in 2012. However, as noted by the 
Secretariat report, merger control remains limited to the telecommunications sector, and statutory 
bodies are exempted from the Ordinance. 
4.84.  However, Hong Kong also faces several challe nges. Its GDP has shrunk from 6.8 in 2010 to 
2.9% in 2013, and so has its current account balance (mainly in goods), gross domestic fixed 
capital formation, and exports of goods and non-factor services, mainly goods. Other challenges include the need to preserve fiscal sustainability  in the face of an ageing population; address 
income inequalities and social welfare, health, and education needs; ensure appropriate and 
affordable housing supply as well as a stable property market; and keep inflation in check. 
4.85.  I am also pleased to note that the HKC is a staunch supporter of the MTS and its Mission 
plays a proactive role here in the WTO. My Mission is pleased to have a close relationship with HKC 
Mission. 
4.86.  The Review of HKC has provided a wealth of in formation and provided food for thought. We 
asked HKC a few questions, and thank them for their replies. 
AUSTRALIA 
4.87.  Australia has extensive and enduring interests in Hong Kong, China, built on strong 
people-to-people links, common values and interests, and long-standing trade and investment 
ties. Approximately 90,000 Australians reside in Hong Kong, China; and more than 600 Australian 
companies have opened offices there. It is Australia’s largest business base in East Asia, and one of our most important economic gateways to markets in Mainland China. Australia is keen to support Hong Kong, China’s future success, based on reforms that further strengthen its already 
enviable reputation of being an open, efficient and transparent economy. 
4.88.  Hong Kong, China is an important economic partner for Australia. The investment 
relationship, in particular, is considerable. At the end of 2013, Hong Kong, China was Australia’s 
fifth largest source of foreign investment with a stock of AU$51.3 billion, and total two-way 
investment stock had climbed to AU$81.3 billion.   
4.89.  Our bilateral trade is significant, and growth trends are positive. In 2013, Hong Kong, China 
was Australia’s fourteenth largest merchandise export market, largely due to demand for 
Australia’s high-quality food produce, including crustaceans, meat and wine; and luxury items such as pearls, gems, gold, and cosmetics. In return, in 2013, Australia was Hong Kong, China’s sixteenth largest principal merchandise export destination, led by telecommunications equipment, 
optical goods, gold and clothing. 
4.90.  Hong Kong, China was also Australia’s eighth largest services market in 2013 at 
AU$1.8 billion, mainly attributable to tourism and education related travel. As of March 2014, over 
9,000 Hong Kong, China student visa holders were in  Australia, and visitor levels from Hong Kong, 
China grew seven per cent in 2013, year-on-year, to over 167,000. 
4.91.  During the period of this Review, Hong Kong , China has achieved commendable results in 
strengthening its global economic links, including: entering into the Closer Economic Partnership 
Agreement with New Zealand; Free Trade Agreem ents with Chile and the European Free Trade 
Association; and commencing Free Trade Agreement negotiations with the 10 member States of ASEAN. We support Hong Kong, China’s efforts to more deeply engage with bilateral and WT/TPR/M/306 • Hong Kong, China 
 
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  plurilateral partners where this complements its participation in, and commitment to, the 
multilateral trading system. 
4.92.  Hong Kong, China continues to demonstrate fully its support for the multilateral trading 
system and delivering concrete outcomes by MC10.  Hong Kong, like all Members, stands to benefit 
from further multilateral liberalization throug h the WTO. We appreciate Hong Kong, China’s 
commitment to the outcomes of MC9 and we look fo rward to continuing to work with Hong Kong, 
China and other WTO Members to capture the full benefits of the Bali package, including the 
Agreement on Trade Facilitation.   
4.93.  Australia recognises Hong Kong, China’s strong  services-based economy and relatively open 
services market, but we consider there is more Hong Kong, China could do to liberalize its services market. The openness of Hong Kong, China’s servic es market was not well-reflected in its Doha 
Round offer, which covered only around 54% of service sectors. We would like to see increased 
commitments, particularly across professions in the professional services sector, such as accounting, legal services and veterinary services. We would also like to see stronger 
commitments on temporary entry for business visitors, contractual service suppliers and 
independent professionals. 
4.94.  Australia welcomes Hong Kong’s first competition law – the Competition Ordinance – which 
will apply to all economy sectors and provide a legal framework to deal with anti-competitive 
practices. As noted by the Secretariat, however, there is room for the Ordinance’s scope to be broadened. 
4.95.  Australia is supportive of Hong Kong, China’s efforts to strengthen food safety and is closely 
cooperating on this issue. Australia encourages Ho ng Kong, China to pursue pragmatic food safety 
regulatory reforms that cause no impediments to legitimate trade. 
4.96.  Australia applauds Hong Kong, China’s efforts to weather the global financial crisis through 
strong counter-cyclical measures and Government intervention in the form of large-scale 
infrastructure investments. Hong Kong, China’ s investments in cross-border and domestic 
infrastructure will not only directly strengthen it s competitive edge into the future, but have helped 
reduce unemployment to 3.4% and re-catalysed economic growth. Such initiatives will go a long 
way in securing Hong Kong’s future as a glob al transport and services hub for East Asia. 
SINGAPORE 4.97.  Singapore and Hong Kong, China enjoy excellent long standing economic ties underpinned 
by strong trade and investment linkages. We al so share very similar outlooks, being small, 
extremely open economies that are highly sensitiv e to global economic currents. In 2013, Hong 
Kong, China was Singapore’s 6th largest trading partner and Singapore was Hong Kong, China’s 
4th largest source of imports. As of the end of 2012, Hong Kong, China was our 3rd largest 
investment destination and Hong Kong, China was Singapore’s 9th largest source of cumulative 
investments. As a member of ASEAN, Singapore has also started engaging Hong Kong, China on 
an ASEAN-Hong Kong FTA. We are confident that in the coming years Singapore-Hong Kong, China 
trade and economic ties will continue to grow from strength to strength.   
4.98.  It is clear from the Secretariat report that in the period under review, Hong Kong, China 
continued to be steadfastly committed to the multilateral trading system and maintaining a 
business and investment friendly environment. This coupled with prudent macroeconomic policies, 
a robust legal system, sound and transparent regu lations and well developed infrastructure have 
led to solid economic growth in the period under review despite continuing weaknesses in the 
global economy. It is no accident, that Hong Kong, China is one of the world’s largest ports (4th), 
banking centres (8th) , stock markets (6th) , fore ign exchange centres (5th) and has received top 
tier rankings in terms of long term credit rating s, economic freedom and ease of doing business.   
4.99.  Singapore also highly commends Hong Kong, China's active role and positive contributions 
within the WTO. These included chairing a number of important WTO bodies and being deeply involved in various WTO negotiations including the Trade Facilitation Agreement, the Information Technology Agreement expansion negotiations, the Government Procurement Agreement, the 
Environmental Goods Agreement and the Monitoring Mechanism on special and differential WT/TPR/M/306 • Hong Kong, China 
 
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  treatment. Hong Kong, China’s record on transparency is impeccable with the Secretariat report 
noting no outstanding notifications. We also note that Hong Kong, China’s applied tariffs are at zero-rate and it has very limited non-tariff barriers.   
4.100.  Singapore would like to extend particular appreciation to Hong Kong, China for being a role 
model in the area of Trade Facilitation. Hong Kong, China was the first WTO Member to notify its 
TFA commitments on 13 May 2014 and set a high standard by designating all provisions of 
Articles 1 to 12 under Category A. Hong Kong, China’s customs procedures are recognized as 
among the easiest and fastest in the world wi th most procedures and payments processed 
electronically. Singapore commends Hong Kong, Chin a’s efforts during the period under review to 
become even more trade facilitative including its introduction of an Authorised Economic Operators (AEOs) programme. In this period, Singapore was one of the customs administrations to have 
signed a Mutual Recognition Arrangement on AEOs with Hong Kong, China’s Customs and Excise 
Department. We are confident that this will contri bute to even greater efficiency in our trading 
relations. 
4.101.  In conclusion, we would like to acknowledge the constructive and conscientious work of the 
Hong Kong, China Permanent Mission here in Gene va, ably led by Permanent Representative Irene 
Young. We thank Hong Kong, China for their answer s to our questions and we are confident that 
Hong Kong, China will have a very  successful Trade Policy Review.  
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.102.  Over the period under review, Hong Kong, Ch ina's economy grew at a moderate annual 
rate of 3.1% on average, driven mainly by soli d domestic demand. With a ratio of trade in goods 
and services to GDP at 458% in 2013, it is not surprising that Hong Kong, China has been ranked 
by the Heritage Foundation for the 20th consecutive year in 2014 as the freest economy in the world. 
4.103.  As mentioned in the Secretariat's report, although Hong Kong, China maintains a sound 
macroeconomic framework, it does face many of the same policy challenges as most developing Members in Asia, such as the fiscal sustainability of an ageing population, the issue of income 
inequality, the supply of appropriate and affordab le housing and keeping inflation at a reasonable 
rate. We encourage the government of Hong Ko ng, China to find ways of overcoming these 
challenges, just as we all must, in time. 
4.104.  We have long enjoyed a close and mutually bene ficial trading relationship with Hong Kong, 
China, which has actually expanded over the period under review. In 2010, a formal official 
platform was established for economic and cultural cooperation between our two Governments. This has strengthened our cooperation in the ar eas of financial supervision, education, trade 
facilitation, and in food and medical fields as well as culture and innovation industries.   
4.105.  The amount of two-way trade registered between Hong Kong, China and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu in 2013 was US$41 billion, making us the 
fourth largest trading partner of Hong Kong, China. It is also one of our major investment 
destinations, evidenced by the intense amount of air traffic back and forth every day and some two million of our people visiting  Hong Kong, China each year.   
4.106.  Hong Kong, China is well known as a strong su pporter of free trade and an active advocate 
of the multilateral trading system. It is also the first developing Member to have committed to 
implementing all the trade facilitation measures la id out in the Trade Facilitation Agreement (TFA) 
on its entry into force. In fact, we find ourselves very close to Hong Kong, China on many issues in 
the WTO negotiations, in particular in the areas of NAMA and Services.  
4.107.  Given its open and transparent regime, we welcome the fact that Hong Kong, China has 
just adopted its first competition law in 2012. The Competition Ordinance applies to all economic 
sectors, but merger control remains limited to the telecommunications sector. We would 
encourage the Hong Kong, China Government to consider applying Competition Ordinance to mergers in all sectors as soon as possible. We also have high hopes of Hong Kong, China binding its two-thirds of non-agricultural tariff lines and bringing its services commitments closely in line 
with its current regime at the end of this Round of negotiations.  WT/TPR/M/306 • Hong Kong, China 
 
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  4.108.  Finally, I would like to commend Permanent Representative Ms. Irene Young on her 
valuable contributions to the work of the WTO. We also thank Hong Kong, China for the answers to our questions received last week, which we shall study very carefully and may wish to come back to at a later stage.  
CHINA 
4.109.  We note that Hong Kong, China maintains an average annual growth rate of 3.1% in the 
period under review. The growth rate of Hong Kong, China is much higher than those of many 
developed and developing economies, which can be attributed to the liberal economic environment 
and open trade policies of Hong Kong, China. Mainland China concurs with the Secretariat that Hong Kong, China is among the world’s most market-friendly and open economies, and its sound economic fundamentals helped it fight against the financial crisis and refrain from the destabilizing 
effects of the crisis. The Government of Hong Kong , China is indeed confronted with several other 
key challenges, such as inflation, income inequalities, social welfare problems and an aging population. We encourage Hong Kong, China to take more concrete actions to properly address 
those challenges.  
4.110.  Coming to the bilateral front, economic and financial ties between Hong Kong, China and 
Mainland China continue to deepen, with our interests increasingly intertwined through the Closer 
Economic Partnership Arrangement (CEPA). Merchandise trade has flourished since the entry into 
force of CEPA. For example, bilateral trade volume reached US$401 billion in 2013, registering an increase of 18% on a year-to-year basis. CEPA al so promotes bilateral trade in services. It needs 
to be highlighted that trade in services will be basically liberalized between Hong Kong, China and 
Mainland China by the end of 2015 as mentioned by several colleagues. Two-way investment is 
also flowing at a faster pace, and Hong Kong, China and Mainland China turn out to be each other’s largest source of overseas direct investme nt. Another piece of good news is from the stock 
market. Hong Kong-Shanghai Stock Connect Scheme  was launched just a couple of days ago, 
which allows investors from both sides to buy and sell on each other’s stock markets. This scheme will not only further consolidate Hong Kong, China’s position as a global financial hub, but also 
facilitate the opening up of Mainland China’s capital markets. We are fully confident that economic 
cooperation between us will not only provide more opportunities for prosperity of Hong Kong, China, but also bring new vitalities to the economic development of the Mainland. In the meantime, new opportunities could be provided to the other members.  
4.111.  Getting back to the multilateral front, we fully recognize the role played by Hong Kong, 
China as a staunch supporter of the multilateral trading system and an active participant in all WTO activities. We are deeply impressed by th e firm commitments of Hong Kong, China to 
conclude the Doha round negotiations, in particular by the fact that it was the first WTO Member to 
notify the intention to implement TFA without any flexibilities. We expect that Hong Kong, China will continue to faithfully implement the Bali decisions and mandate, and formulate a well-defined, 
detailed and balanced Post-Bali Work Program with  a view to successfully concluding the Doha 
round.  
UNITED
 STATES 
4.112.  The past four years since Hong Kong’s last Trade Policy Review have seen tremendous 
challenges to economies around the world, and Ho ng Kong’s has been no exception. The United 
States recognizes and commends Hong Kong for its unwavering commitment to open trade and investment during these challenging times. We value the Government’s assertion that the 
institutions and policies that served Hong Kong well in the past, such as the rule of law, an open 
trade policy, “and a level playing field for bu siness, remain the bedrock” of Hong Kong’s 
prosperity. Hong Kong’s strong commitment to these policies has made its recovery possible and 
will serve Hong Kong well in the years to come. We further applaud the Government for not 
adopting any protectionist measures in response to the global financial crisis. 
4.113.  In the two years following its last Trade Policy  Review, Hong Kong achieved impressive real 
GDP growth of 7% in 2006 and 6.4% in 2007 before  slowing to 2.2% in 2008. As the Secretariat’s 
report notes, Hong Kong is one of the most mark et-oriented and open economies in the world and, 
as such, is strongly influenced by global and regional economic conditions. Fortunately, as the WT/TPR/M/306 • Hong Kong, China 
 
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  world economy, and especially that of China, began to improve, Hong Kong’s economy rebounded 
strongly beginning in the second quarter of 2009 and has continued to perform well. 
4.114.  China’s economic growth has had and will continue to have a strong impact on Hong 
Kong’s own economic growth and development. Hong Kong’s economy has long been dominated 
by services industries: financial services, trading and logistics, tourism, and professional services 
currently account for roughly 55% of its GDP and almost half of its employment. As the Secretariat points out, Hong Kong’s challenge will be to maintain these services industries in the face of 
growing competition from China. Hong Kong will need to focus on its comparative advantages and 
adapt accordingly to meet this challenge. Similarly, growing economic ties between China and Chinese Taipei pose challenges for Hong Kong’s long-time role as an intermediary provider of financial services, trade, and logistics. The Secretariat’s report shows that Hong Kong has acted to 
meet the challenges posed by improved cross-strait relations by expanding Hong Kong 
International Airport’s cargo handling capacity and making available land nearby for the development of a logistics cluster. 
4.115.  The Closer Economic Partnership Arrangement with China (CEPA), originally signed in 
2003, recognizes these trends and demonstrates Hong Kong’s efforts to capitalize on its relationship with China. As noted by the Secretariat, the depth and coverage of liberalizing 
measures have been extended for both goods and services in the years since Hong Kong’s last 
Trade Policy Review. The United States takes note of this work and underscores the importance of transparency and consistency with WTO obligations with regard to bilateral and regional trade agreements for all WTO members. 
4.116.  The United States has a strong trade and investment relationship with Hong Kong. It is 
currently our twenty-fourth largest goods trading partner, with US$24.6 billion in total two-way 
goods trade during 2009. U.S. goods and services trade with Hong Kong totalled US$42 billion in 
2008, the latest year for which goods and services trade data is available. The stock of U.S. 
foreign direct investment (FDI) in Hong Kong was US$50.5 billion in 2009, primarily concentrated in the finance/insurance, non-bank holding compan ies, and wholesale trade sectors. The stock of 
Hong Kong FDI in the United States was US$3.8 billion in 2009, mostly in the manufacturing and 
wholesale trade sectors. 
4.117.  Despite Hong Kong’s overall transparency and openness to trade, the United States is 
concerned with Hong Kong’s overly restrictive sanitary and phytosanitary (SPS) measures as they 
apply to U.S. exports, particularly those of be ef and beef products. The World Organization for 
Animal Health (OIE) BSE guidelines provide for the importation of meat and meat products, including bone-in products, offal, and variety meats, regardless of cattle age, from countries or 
zones posing a controlled BSE risk if the appropriate tissues defined as specified risk materials 
(SRMs) are removed. Even though the OIE classifies the United States as a controlled risk country for BSE, Hong Kong currently only accepts deboned beef from cattle less than 30 months of age 
from the United States. We hope that this Trade Policy Review will encourage Hong Kong to focus 
on the importance of consistently implementi ng science-based sanitary and phytosanitary 
measures as a critical component of its longstanding commitment to trade and openness. 
4.118.  The United States also notes that Hong Kong has been a signatory to the WTO Agreement 
on Government Procurement (GPA) since 1997 and that it had been a signatory under the GATT 
Code on Government Procurement. Yet, we contin ue to be disappointed that Hong Kong has not 
submitted a market access offer in the current negotiations on the revision of the GPA. We will be 
interested to hear from Hong Kong  about its plans in this regard. 
4.119.  We are further disappointed that a significant number of Hong Kong’s tariffs remain 
unbound. According to the Secretariat, while all applied MFN tariffs are zero, only slightly more 
than one third of Hong Kong’s non-agricultural tariffs are subject to WTO bindings. Inasmuch as 
this imparts a certain degree of unpredictability to Hong Kong’s tariff regime, we are interested to 
know the Government’s plans to bind its tariffs. 
4.120.  In closing, I would like to reiterate our appreciation for Hong Kong’s active participation in 
the Doha Round negotiations. I would also like to emphasize that we continue to value our close 
work with the Hong Kong Government and our WTO partners to strengthen and build on the WTO’s rules-based and cooperative foundation. But more work is needed to reach a balanced and WT/TPR/M/306 • Hong Kong, China 
 
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  ambitious conclusion to the Doha Round. To achieve a Doha outcome that results in the global 
economic growth necessary to spur development, all key players will need to make meaningful 
market-opening contributions. As a dynamic economy that sees the benefits that open trade has brought, Hong Kong stands to gain from new market access opportunities generated by the Doha 
Round, particularly in emerging economies. We look forward to continuing our work with Hong 
Kong and other Members to ensure these gains are realized. 
4.121.  We thank the delegation of Hong Kong for its willingness to consider these points and 
welcome the opportunity to engage with your and ot her delegations in a discussion of Hong Kong’s 
trade policy regime. The United States values our strong bilateral trade partnership and we offer good wishes to the Government of Hong Kong for a successful and productive Trade Policy Review. 
INDONESIA 
4.122.  We are pleased to be here today to participate in the Trade Policy Review of Hong Kong, 
China. Since its last review in 2009, Hong Kong, China has continued with the open market policy, 
liberalized trade and investment regimes as a basis for economic growth. With a strong economic 
fundamental, Hong Kong, China has been able to spare the negative impacts of the Global 
Financial Crisis. Grew at an average annual rate of 3.1% between 2010 and 2013, services remain the dominant sector of the economy. 
4.123.  Indonesia further commends the strong role of Hong Kong, China in promoting trade and 
investment liberalization through regional, sub-regional, and bilateral cooperation. We also appreciate Hong Kong China's positive contribution in the WTO, not only in the regular work of the WTO but also in the on-going efforts in the DDA negotiations, as well as active participation in 
various plurilateral initiatives. 
4.124.  On the bilateral side, please allow me to share how Indonesia and Hong Kong, China have 
been engaging in a mutually beneficial trade relationship. Hong Kong, China is the 13th largest 
trading partner for Indonesia and Indonesia is the 22n largest trading partner for Hong Kong, 
China. However, in the period of 2011 to 2013, our trade balance had experienced a deceleration. From 2012-2013, the deceleration rates is at - 14.61% with the value of US$102.7 million. To be 
among the 4th largest port for exported product from Indonesia to several countries, Hong Kong, 
China obviously plays as an important hub for Indonesian exported product to mainland China. 
4.125.  To increase its trade relation, in the margin of the last APEC meeting in Beijing, Indonesia 
and Hong Kong, China have agreed to build coop eration on the small and medium enterprises and 
maritime sector. To implement this cooperation, Indonesia wants to know how Hong Kong, China 
will work on this cooperation. 
4.126.  Finally, I would like to conclude my remarks by expressing our profound appreciation to 
the delegation of Hong Kong, China for its hard work and wish every success in its seventh trade 
policy review. 
GUATEMALA 
4.127.  On behalf of my country, I would like to extend a warm welcome to the Hong Kong, China 
delegation, headed by Ms Carol Yuen, Deputy Se cretary of Commerce and Economic Development. 
4.128.  I would also like to take this opportunity to emphasize the quality of the work done by the 
WTO Secretariat, which is reflected in the report on Hong Kong, China's trade policies presented to 
us today. The analysis provided in this report gives us a better insight into the developments and 
most relevant aspects concerning Hong Kong, China's trade and economic framework over the 
period 2010 2013. 
4.129.  We also thank Ambassador Ronald Saborío Soto of Costa Rica for giving us such an 
objective and comprehensive presentation today. 
4.130.  Guatemala regards Hong Kong, China as an important partner. Trade between my country 
and Hong Kong, China has traditionally consisted of the sale of products such as electronic 
equipment, machinery and manufactured goods. For the purposes of such trade, the Guatemalan WT/TPR/M/306 • Hong Kong, China 
 
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  authorities signed a Memorandum of Understanding with the South-South Steering Committee for 
Sustainable Development (SS SCSD) at the beginning of this year. This will enable us to strengthen our trade relations with Hong Kong, China. 
4.131.  Turning to the review that brings us together today, I would like to highlight the soundness 
of Hong Kong, China's trade and economic po licy, which has enabled Hong Kong, China to 
maintain sustained levels of growth. As stated in the Secretariat report, these policy measures contribute to Hong Kong, China's status as one of the most open and competitive economies in the 
world. We are also pleased to note Hong Kong, China's active involvement in and support for the 
multilateral trading system, as well as the simpli city and clarity of its systems, such as those 
applying to technical barriers to trade and sanitary and phytosanitary measures. 
4.132.  In general terms, we acknowledge the efforts made by Hong Kong, China in these major 
areas and wish the delegation visiting us today a successful conclusion to the review of Hong 
Kong, China's trade policies. 
PERU 
4.133.  The shift in the centre of international economic gravity to the Pacific Basin, driven by the 
emergence of Asian economies and their economic consolidation is a fact that Peru has taken into special consideration in order to step up its activities in this region, in search of greater 
development opportunities through access to new markets, investment, transfer of technology and 
cooperation in a variety of areas. As described in the reports reviewed for this exercise, Hong Kong, China has a strategic place in this scenario. 
4.134.  Peru attaches great importance to the Asia Pacific Economic Cooperation (APEC) forum and 
its aim of achieving an ambitious integration of trade in this economic area, in keeping with the 
goals set at the summit in Bogor, Indonesia, in 1994, of enhancing trade and investment liberalization and openness in the APEC framework. 
4.135.  Peru is actively involved in the work to drive forward the Free Trade Area of the Asia Pacific 
(FTAAP) process, as well as the Trans Pacific Pa rtnership (TPP), aimed at the conclusion in the 
near future of a state of the art agreement for trad e in goods and services and capital flows in this 
strategic theatre, which is already of major significance for global growth. We therefore welcome 
the substantial progress made towards the FTAAP at the recent APEC summit held in Beijing, China. 
4.136.  We welcome Hong Kong, China's firm support for the multilateral trading system, the 
successful conclusion of the Doha Developmen t Agenda and the implementation of the Bali 
Package, and its commitment to applying the Trade Facilitation Agreement upon the latter's entry into force. These are all objectives shared by Peru. 
4.137.  In spite of the international economic crisis that began in 2008 and the fragility of global 
economic recovery, it is remarkable that Hong  Kong, China's economy has grown at an annual 
average of 3.1% over the past three years, thanks  to robust domestic demand and countercyclical 
measures to preserve financial stability and stimulate the local economy. 
4.138.  Development of the services sector in Hong Kong, China's economy, in particular trading 
and logistics, financial services, tourism, and business and professional services, which are the backbone of the economy, has unquestionably been, and still is, an economic development 
strategy from which we can draw important and valuable lessons. 
4.139.  As described in the Secretariat report, despite its sound macroeconomic framework Hong 
Kong, China faces challenges in preserving fiscal sustainability in the face of an ageing population, 
and in addressing income inequalities and needs in areas such as social welfare, health, education 
and housing. Peru faces similar challenges in spite of the economic and trade development strategy implemented by my country for the past 20 years. 
4.140.  In recent years, Peru and Hong Kong, China have been strengthening their economic 
relations and trade facilitation and investment related cooperation in particular. Bilateral trade between Peru and Hong Kong, China amounted to US$101 million in 2013, that is, a 27% increase WT/TPR/M/306 • Hong Kong, China 
 
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  since 2009. Between January and August 2014, bilateral trade had already reached US$114 
million, that is, 63% more than over the same period the previous year. Hong Kong, China has thus become Peru's ninth largest Asian export market. 
4.141.  Peru regards this exercise of reviewing Hong  Kong, China's trade policy as a significant 
opportunity to obtain valuable information of benefit to all. We wish Hong Kong, China a very 
successful outcome of this exercise. 
4.142.  Peru has submitted some questions concerning various operational aspects of the general 
conduct of trade by Hong Kong, China that are of particular interest to my country. I would like to 
take this opportunity to thank Hong Kong, China for its replies, which will be forwarded to the relevant Peruvian authorities for assessment and follow up. 
ECUADOR 
4.143.  It is interesting for Ecuador to participate in this trade policy review. The period covered by 
the review, namely 2010 2013 according to the Secret ariat report, shows overall that Hong Kong, 
China's economy has recovered from the 2008 2009 global crisis, growing by 2.9% in 2013 and 
forecast to expand by 3.75% in 2014, which has allowed Hong Kong, China to maintain relative 
financial stability. 
4.144.  Hong Kong, China's stability and economic buoyancy are largely due to trade relations with 
the People's Republic of China, with which it has signed a Closer Economic Partnership 
Arrangement (CEPA). The CEPA offers vast oppo rtunities for trade for the territory's service 
suppliers and for consolidating Hong Kong, China's position as a key intermediary for Mainland China's external trade. Mainland China is Hong Kong, China's chief trading partner, receiving, 
according to the figures in the reports, 55% of Hong Kong, China's re exports and supplying 48% 
of its imports. 
4.145.  Having reviewed the information provided, Ec uador welcomes the fact that Hong Kong, 
China is a firm supporter of the multilateral trad ing system, the successful conclusion of the Doha 
Development Agenda and the implementation of the Bali package. 
4.146.  Another point that my delegation wishes to highlight about Hong Kong, China's economy 
concerns the services sector, where the most dyna mic subsectors have been wholesale and retail 
trade; accommodation and food services, mariti me and air transport services and, first and 
foremost, financial and insurance services, which ha ve enabled Hong Kong, China to consolidate its 
position as a regional and even global centre. 
4.147.  Ecuador welcomes Hong Kong, China's application of a duty free tariff regime on an MFN 
basis. It encourages the Government of Hong Kong, China to adopt the necessary measures to bind its customs tariff in the WTO. 
4.148.  The Secretariat report states that Hong Kong, China has a Textiles Control System 
applying to both imports and exports, which categorizes markets as "non-sensitive" and "sensitive". Among the questions submitted, Ec uador considered it important to thoroughly 
understand the operation of the import and export licensing mechanism for textiles originating 
from or destined to sensitive markets and the parameters for categorizing a market as "sensitive" or "non-sensitive". 
4.149.  To conclude, we would like to thank the Hong Kong, China delegation in anticipation for its 
responses to the questions we submitted to the Secretariat on various aspects of Hong Kong, 
China's trade policy. These responses will provide significant input for us to strengthen our bilateral relations concerning foreign trade. 
THAILAND 
4.150.  Hong Kong, China and Thailand have a meaningful trade and commercial tie, which 
Thailand very much appreciates. Currently, Hong Kong, China is Thailand’s ninth largest trading 
partner, fourth export destination and twenty-sixth import source. Thailand is Hong Kong, China’s 
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  and import suppliers. In 2013, the bilateral trade value reached around US$14.8 billion. Hong 
Kong, China is also the fifth largest foreign investors in Thailand. 
4.151.  With the strong bilateral trade and invest ment, Thailand most welcomes Hong Kong, 
China’s recent effort to accelerate the free trade agreement negotiations with ASEAN. Along with 
other ASEAN members, Thailand looks forward to the conclusion of the negotiations by end of 
2016. As one of the world’s most market-frien dly and open economy, the prospect of the 
ever-closer trade relation between Hong Kong, China and ASEAN is definitely another step 
Thailand looks forward to.   
4.152.  Hong Kong, China’s economy has performed ve ry impressively. Examples of remarkable 
elements in the economy are sound economic fundam entals with a healthy fiscal balance, a strong 
external financial position, and a fiscal prudence. Hong Kong, China’s non-tariff measures are few 
and rarely applied. The simple tax structure with a narrow base and low rates, is also welcomed by 
trading partners and private sectors.  
4.153.  Thailand recognizes Hong Kong, China’s stronger economic and financial ties with China, 
especially through the Closer Economic Partnershi p Arrangement. We support this effort which, 
Thailand believes, will positively contribute to Hong Kong, China, the Mainland, and the world trading system as a whole.   
4.154.  In the multilateral trading system, Hong Kong, China’s role in this Organization has been 
well-recognized. We are grateful for Hong Kong, China’s commitment to the implementation of the 
Trade Facilitation Agreement upon its entry into force and its active and meaningful role on the path to the conclusion of the Doha Developmen t Agenda and the implementation of the Bali 
Package. Thailand is looking forward to working closely with Hong Kong, China and other Members 
in the upcoming negotiations in this Organization. 
4.155.  We would also like to commend Hong Kong, China for using the alternative timeframe for 
submission of written questions and responses. This confirms Hong Kong, China’s willingness to be 
open and transparent, which is the core principle of this Organization. 
4.156.  In this review, Thailand submitted questions to Hong Kong, China on the business and 
investment environment; the operations of several services sectors such as professional, 
educational, and environmental services; intellec tual property rights protection; and import 
controls. We thank Hong Kong, China for their resp onse, which we will study with great interest. 
4.157.  To conclude, Thailand would like to express its appreciation to the delegation of Hong 
Kong, China for today’s presentation and their respon se to our questions. The Thai delegation here 
in Geneva is grateful for the continuing close cooperation of Permanent Representative Ms Irene 
Young and her staff. We wish Hong Kong, Ch ina every success in this trade policy review. 
MALAYSIA 
4.158.  At the outset, Malaysia would like to commend Hong Kong, China on its impressive 
economic achievements against the challenges faced. Being rated as one of the world’s most 
market-friendly economy in 2013; Hong Kong, China’s growth story is of continuing interest to 
Malaysia. As close economic partners, and more so now regionally with the launch of the ASEAN-Hong Kong FTA negotiations, we have a mu tual stake in each other's economic progress 
and prosperity as important trade partners.   
4.159.  Malaysia praises Hong Kong, China on its st rong progress towards trade and investment 
liberalization. We noted that the achievements we re underpinned by an open trade and investment 
regimes as well as continued improvement in domestic reforms. In particular, Malaysia believes 
that Hong Kong, China’s reform in establishing a cross-sectoral resolution regime for financial 
institutions as well as the adoption of Competition Law in 2012, would further strengthen Hong Kong, China’s position as a global player. Malaysia  congratulates Hong Kong, China on its issuance 
of Sukuk bonds and Islamic finance is an area that Malaysia and Hong Kong, China could work 
closely on. WT/TPR/M/306 • Hong Kong, China 
 
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  4.160.  Malaysia and Hong Kong, China are enjoying a robust and interlinked economic 
relationship. Hong Kong, China is currently Malaysia’s 11th trading partner, while Malaysia stands as Hong Kong, China’s 13th largest trading partner. The bilateral trade volume reached US$13.22 billion in 2013. In term of investment, a total number of 434 approved projects had 
been implemented by both countries since 1980 wi th a total value of US$1.65 billion. It is 
encouraging to note that this had created 80,351 job opportunities in both countries.  
4.161.  At the multilateral front, Malaysia commends Hong Kong, China’s active role in the WTO 
and DDA negotiations. Hong Kong, China was the first Member to notify the WTO that it would 
implement all provisions of the Agreement on Trade Facilitation upon its entry into force, without using any of the flexibilities provided by the Agreement. As negotiations resume, we believe Hong Kong, China will, with others, work diligently to develop a WTO Post-Bali Work Programme that 
would benefit all Members and consequently brings a positive impact on international trade.  
4.162.  While welcoming the reforms undertaken by Hong Kong, China over the past years, 
Malaysia like others is concerned on a number of import restrictions imposed by Hong Kong, 
China. Thus, we encourage Hong Kong, China to review these measures so as to better facilitate 
businesses. 
4.163.  Regarding the Trade Policy Review at hand, we are seeking further clarification from Hong 
Kong, China among others, on its trade and trade-related policies and measures; in particular, 
Hong Kong, China’s non-membership to the HS Convention.  
4.164.  We would like to take this opportunity to thank Hong Kong, China in advance for 
responding to our questions and we will look into them carefully.  
REPUBLIC
 OF KOREA 
MTS and Bilateral Economic Relationship 4.165.  Hong Kong, China is one of the strong supporters of the multilateral trading system and 
also an important trading and investment partner of Korea. 
4.166.  On the multilateral front, Korea and Hong Kong, China are firm believers in the rule-based 
multilateral trading system. Hong Kong, China has been actively participating in the DDA 
negotiations, the implementation of the Bali package as well as plurilateral negotiations on the 
revision of the 1994 GPA, the expansion of the ITA, the Trade in Services Agreement, and the 
liberalization of environmental goods.  
4.167.  With regard to the implementation of the Bali package, Hong Kong, China was the first 
Member to notify all provisions contained in  the Trade Facilitation Agreement (TFA) under 
Category A, followed by Korea as a second Member in doing so, setting the example for many other developing Members. At this critical junc ture, given that there have been some recent 
positive developments in breaking the impasse over the adoption of a Protocol of the TFA, I hope 
that Hong Kong, China will continue to play an instrumental role in the development of post-Bali work programs. 
4.168.  On the bilateral front, Korea and Hong Kong, China are enjoying a robust economic 
relationship. In 2012, Hong Kong, China was Korea' s 4th largest export market, while Korea also 
stands as Hong Kong, China’s 8th largest trading partner, with our bilateral trade volume reaching US$34.7 billion. We are also close partners in term s of bilateral investment. Hong Kong, China is 
Korea’s 3rd largest destination for foreign investme nt, cumulatively amounting to US$18.6 billion.   
4.169.  In this regards, I believe that there is a huge potential for bilateral cooperation in the 
future, taking into account the complementary nature of economic structures of our two economies 
and Hong Kong, China’s economic integration with Mainland China. WT/TPR/M/306 • Hong Kong, China 
 
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  Macroeconomic performance 
4.170.  For the most open economy like Hong Kong, China, well recognized in global indicators of 
economic freedom and competitiveness, Korea’s comments are confined to words of compliment and encouragement. 
4.171.  First of all, I would like to commend Hong Ko ng, China for its strong resilience with an 
average annual growth rate of 3.1% since 2010 am id a fragile global economic recovery. Without 
a doubt, Hong Kong, China’s economic openness is one of the main driving forces in its economic 
rebound and growth. Hong Kong, China’s continued efforts to strengthen its economic ties with 
Mainland China, in particular through the CEPA (Closer Economic Partnership Agreement) and its prudent macroeconomic policies have contributed to a strong economic performance during the period under review. 
Trade and trade-related policy regime 
4.172.  Secondly, Hong Kong, China, being the most open economy, has implemented further 
steps towards enhancing its attractiveness to foreign traders and investors. I note, with 
satisfaction, the progress achieved, in particular through the adoption of its first Competition 
Ordinance in 2012, the revision of the Companies Ordinance, and the enhanced protection of Intellectual property rights (IPRs) among others. 
4.173.  Thirdly, my delegation submitted some written questions to Hong Kong, China on certain 
aspects of its trade and trade-related policies and measures. We therefore would like to take this opportunity to thank Hong Kong, China for providing us with written answers. We will look into them carefully and come back later, if necessary. 
4.174.  Last but not least, even though there are such  challenges as aging population and growing 
inequality Hong Kong, China has faced as discussant pointed out, we do believe that Hong Kong, China will meet and overcome those challenges wisely through making change. 
Conclusion 
4.175.  On that note, I would like to conclude by expressing my sincere appreciation to the 
delegation of Hong Kong, China for their hard work, and wish them every success in their seventh 
TPR.  
BRAZIL 4.176.  It is a matter of great satisfaction for Brazil to participate in the seventh Hong Kong, 
China's TPR. Our trade relations have experienced a very discernible and positive growth over the 
past few years and can certainly be further improved. 
4.177.  Between 2010 and 2013, the period covered by this review, Hong Kong, China's economy 
grew at an average of 3.1%, demonstrating its ca pacity to quickly and steadily recover from the 
impacts of the international financial crisis. This growth is no doubt the result of both a solid 
domestic demand and the countercyclical measures implemented to preserve financial stability and stimulate the local economy. 
4.178.  Based on the improving macroeconomic indicato rs and the stable and predictable business 
environment, there are certainly grounds for optimism. Brazil would like to emphasize Hong Kong, China's sound economic fundamentals, with regular fiscal balance surplus, flexible markets, a well regulated financial system and an open and market-oriented economy. 
4.179.  The Secretariat report states that Hong Kong, China is one of the most open economies in 
the world, with one of the most liberal and transparent foreign investment regimes, MFN tariffs at zero and all agricultural tariffs bound. Nevertheless, the Secretariat report also indicates that a 
sustained portion of non-agricultural tariff lines still remains unbound. As we stated in the previous 
Hong, Kong, China TPR, Brazil believes that a higher level of bound tariffs would contribute to improve predictability regarding the customs territory tariff regime. WT/TPR/M/306 • Hong Kong, China 
 
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  4.180.  The trade flow between Brazil and Hong Kong , China has increased almost five-fold since 
2003 and more than 70% during the period under review, from US$2.452 billion in 2010 to US$4.181 billion in 2013. Nevertheless, there is still room for improvement; we believe that bilateral trade is well below its potential and can be further expanded in terms of volume and 
diversification. 
4.181.  The majority of Brazilian exports to Hong Kong, China are composed of commodities, 
especially meat products. Most of the imports are of manufactured goods. As regard trade in 
agricultural goods, the sanitary authorities of Brazil and Hong Kong, China have a maintained level 
of mutual trust that helped promote the growth in trade we have witnessed in the last few years. We expect that this environment of trust keep nurturing our trade relations. 
4.182.  The Brazilian delegation has presented a few questions regarding Hong Kong, China's trade 
policy and we are looking forward to the replies. Le t me conclude by reiterating that Brazil stands 
ready to further enhance its cooperation and trad e with Hong Kong, China and wishes a successful 
trade policy review exercise. 
HONDURAS 
4.183.  As stated in the Government and Secretariat reports, we are pleased to note that today 
Hong Kong, China is one of the world's leading trade and financial centres and was the world's 
eighth largest economy in 2013. 
4.184.  As indicated in the Secretariat report, Hong Kong, China is the world's number one cargo 
airport and eleventh passenger airport. 
4.185.  According to reports by specialized agencies, Hong Kong, China has ranked first in terms of 
economic freedom for 20 consecutive years and has continued to evolve into a knowledge based 
economy that concentrates more on high value adding activities. It has also recorded a fiscal surplus for ten consecutive years, thanks to a ve ry liberal, transparent and open regime for trade 
in goods and services, the latter being the dominant sector of the economy and a high contributor 
to GDP and employment. 
4.186.  As regards foreign direct investment, in 2012 Hong Kong, China ranked as the third largest 
recipient of FDI flows worldwide, and the second largest in Asia. 
4.187.  Our country is aware of the considerable efforts made to implement public policies aimed 
at boosting innovation and high value adding and technology intensive economic activities based on sound R&D capacity. These have led to th e establishment of excellent technological 
infrastructure and a well-conceived and, above all, efficient legal system. We would like to inform 
you that we have submitted a number of written questions to Hong Kong, China, and its feedback would be much appreciated. 
4.188.  I would like to thank you once again for this renewed opportunity to exchange views and 
examine Hong Kong, China's trade policies and practices. We wish the authorities a successful seventh trade policy review, whilst already welcoming the extraordinary results achieved. 
NIGERIA 
4.189.  Nigeria like Hong Kong, China, believes that open markets, non-discrimination and global 
competition in international trade are essential for global and national economies. My delegation, is therefore, pleased with the active and construc tive roles Hong Kong, China has been playing in 
the DDA negotiations. We also acknowledge its full commitment to the successful conclusion of the 
Doha Round, the implementation of the Bali package, particularly, the Trade Facilitation 
Agreement, upon its entry into force. Nigeria would also like to commend Hong Kong, China for 
creating a favourable business environment and for not applying any protectionist measures in 
response to the global financial crisis and challenges.    
4.190.  Hong Kong, China can be described as a mainly services-oriented economy that is 
traditionally dominated by four pillars industries that include; financial services as one of the most 
important pillar of the economy, trading and lo gistics, tourism and professional services. The WT/TPR/M/306 • Hong Kong, China 
 
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  sector accounted for 93% of the country’s GDP an d 88% of total employment in 2012. Within the 
services sector, the main contributors to GDP continue to be import/export, whole sale and retail trade 25.4%; administration, social and person al services 16.8%; and finance and insurance 
15.9%. We note from the same report that agriculture, fishing and mining is very small, 
accounting for a mere 0.1% of both GDP and total employment in 2012, while the manufacturing 
sector contributed 1.5% to the GDP and 3% to employment. 
4.191.  My delegation takes note of the Secretariat re port which pointed out that during the review 
period, Hong Kong, China continued to strengthen it s economic and financial ties with the People’s 
Republic of China (Mainland), in particular, through their closer Economic Partnership Arrangement (CEPA). As indicated in the Secretariat report, CEPA offers many trade opportunities for Hong 
Kong, China’s services suppliers for the territory to consolidate itself as a key intermediary for 
Mainland China’s external trade. We also note fr om the same report that the position of Hong 
Kong, China as an international financial centre has also benefited from the gradual liberalization of Mainland China’s capital account and the increasing international use of the Chinese Renminbi.   
4.192.  My delegation would like to commend Hong Kong, China on the Government effort’s in 
adopting a strategy that aimed at promoting areas identified in 2009 as having competitive advantages for further growth which include, testing and certification; medical services; innovation 
and technology; cultural and creative industries; environmental services and education services 
that led to the country’s enhanced economic relationship with China under the CEPA which offers an immense opportunity for Hong Kong China to exploit its comparative advantage.   
4.193.  The Secretariat’s report shows that consumer goods are reasonably safe. My delegation 
would like to know whether Hong Kong, China takes similar measures to ensure that consumer 
goods being exported to developing countries and least developed countries are equally safe. 
4.194.  Finally, Members of the review body and distingu ished delegation, it is gratifying to note 
that Hong Kong, China continues to earn well-deserved global recognition arising from its 
strengths in financial market development, infr astructure, business-friendly environment, world 
class institutions and market efficiency. Furthermore, we would like to commend Hong Kong, China 
for its strict adherence to the principle of free- trade, transparency and high standard. Nigeria 
would like to encourage Hong Kong, China to continue with its open market that encourages and provides the best environment for doing business and hope to benefit from strengthening of its trade and economic ties with all WTO Members bilaterally and multilaterally.   
JAPAN 
4.195.  First of all, Japan appreciates Hong Kong China’s open economic policy and sound fiscal 
policy which have supported its good business and investment environment and competitiveness. 
With its trade ratio to GDP exceeding 450%, HKC is  sensitive to external changes and the global 
financial crisis presented serious challenges to its economy. It is commendable, however, that HKC implemented various measures, including infrastructure projects to create jobs and assistance to 
small and medium-size enterprises, which have su ccessfully stimulated growth in facing these 
challenges. In dealing with the ageing population and income disparities, it is our hope that HKC will overcome them while maintaining its open economic policy. 
4.196.  On the WTO, according to the report by the Secretariat, there have been no WTO dispute 
settlement claims to Hong Kong, China since the last TPR review. Japan commends the exemplary 
role it plays in actively upholding the WTO rules. Japan hopes to continue to cooperate with HKC for the further development of the multilateral trading system.  
4.197.  In addition, Hong Kong, China has actively participated in plurilateral negotiations, 
including negotiations of revised GPA, IT A expansion, TiSA, and Environmental goods 
liberalization. Japan commends these efforts for trade liberalization. 
4.198.  On RTAs, Hong Kong, China has actively engaged itself in negotiations, such as RTAs with 
New Zealand, EFTA, Chile, and ASEAN. In addition, during this period of review, it signed four supplements to the Closer Economic Partnership Ar rangement (CEPA) with the People’s Republic of 
China, which provide liberalization of trade in goods and services. Japan commends these efforts, 
and hopes that these RTAs will complement and strengthen the multilateral trading system. WT/TPR/M/306 • Hong Kong, China 
 
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  4.199.  Finally, I’d like to turn to two specific points.  
4.200.  Firstly, on intellectual property rights. Hong Kong, China has been strengthening its 
enforcement against infringement of intellectual property rights to cope with the rapidly changing digital environment. It has also been implementi ng a reform of its patent system and has been 
making efforts to become a regional IP trading hub. HKC’s sincere efforts for strengthening of IPR 
protection and promotion of IPR application are appreciated, and Japan expects that these efforts will continue.  
4.201.  Second, numerous foreign enterprises, includ ing from Japan, are operating in HKC and 
many individuals from foreign countries reside there for the short or long term. We believe that ensuring rule of law, transparency and predicta bility of regulatory procedures and preparing the 
environment where businesses can operate freely will be conducive to further growth. Japan is 
hopeful that HKC will maintain and further enhance its economy as an economic and financial hub 
in a vibrant Asian region. 
TOGO 
4.202.  In the light of the reports produced by the WTO Secretariat and the Hong Kong, China 
delegation, one can safely say that the economy of this customs territory has performed well since its sixth review in 2010. 
4.203.  My delegation congratulates Hong Kong, China for maintaining its rate of growth over the 
past four years despite the financial crisis. 
4.204.  In 2010, growth reached 6.8%. It increased by 4.8% in 2011, 1.5% in 2012, 2.9% in 
2013, and 3.75% during the current year. 
4.205.  It should be recalled that this favourable situation is due to the know-how and foresight of 
the Hong Kong, China authorities, which implemented countercyclical measures during the period of economic turmoil in 2008 2009 in order to preserve financial stability and stimulate the local 
economy in view of the contraction in external demand. 
4.206.  The other reason is undoubtedly the free trade orientation of Hong Kong, China's economy. 
4.207.  The statistics speak for themselves. Hong Kong, China is not only a leading trade and 
financial centre, but it is also the world's eighth largest economy in terms of merchandise trade, 
the eighth largest banking centre and the sixth larg est stock market, and it ranks first in the Index 
of Economic Freedom. 
4.208.  Hong Kong, China's economy, largely dominated by services, represents a challenge for 
the African countries, most of which are still focused on a low value added primary sector. 
4.209.  It bears witness to the obvious fact that the services sector holds enormous potential that 
can be explored wherever there is interest in doing so. 
4.210.  Another sign of the virtuous circle driving Hong Kong, China's economy is the budget 
surplus achieved in 2014 – by no means an isolated occurrence, since the budget has been in surplus for the past five years. This situation, which is due to Hong Kong, China's prudent policies, 
deserves to be commended. It is indeed an exception in an international environment in which 
most States have a public deficit to contend with. 
4.211.  My delegation shares Hong Kong, China's faith in a very strong multilateral trading system 
and believes that it is the only bulwark against protectionism. 
4.212.  In particular, my delegation wishes to emphasize the ongoing negotiations concerning a 
draft agreement on trade in services involvin g 23 WTO Members, one of which is Hong Kong, 
China. WT/TPR/M/306 • Hong Kong, China 
 
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  4.213.  My delegation encourages the Members involved to extend participation in this future 
agreement to all other WTO Members with a view to its multilateralization, as Hong Kong, China so 
rightly emphasized in its report. 
4.214.  Along these same lines, my delegation urges Hong Kong, China to take into account the 
interests of LDCs in regard to services, since their share in the sector is only marginal. 
4.215.  Togo accordingly calls on Hong Kong, China to give full consideration to the LDCs' 
collective request concerning the operationaliza tion of the services waiver introduced on 
21 July 2014, aimed at enabling them to increase their market share in services trade through 
preferential treatment. 
KINGDOM  OF SAUDI  ARABIA 
4.216.  An important trading center since the Tang dynasty, today, with a trade/GDP ratio of 
458%, Hong Kong, China, remains a leading trade cent er in the world. With a population of less 
than eight million inhabitants, it is the eight la rgest economy in terms of merchandise trade in the 
world. Hong Kong, China is to be recognized for having developed and strengthened its economy 
by establishing an open and business-friendly environment, a strong financial system and modern 
infrastructure.  
4.217.  The counter-cyclical measures adopted by Hong Kong, China immediately after the 
beginning of the global economic and financial crisis have allowed it to perform well over the 
review period. After growing by 4.8, 1.5 and 2.9% in 2011, 2012 and 2013, respectively, the GDP is expected to increase by 3.75% in 2014. Hong Kong, China, undertook reforms to stimulate the economy and strengthen policies to maintain its financial stability. These reforms together with the 
rapid growth of services’ trade, the continued in-flow of foreign direct investment and healthy 
budget surplus will undoubtedly allow Hong Ko ng, China to continue to perform strongly.  
4.218.  A traditionally very open economy, Hong Kong, China reinforced its economic integration 
with China and actively engaged in negotiations with a view to concluding preferential trade 
agreements so as to secure more favourable market access for its goods and services, within and outside of Asia. 
4.219.  Hong Kong, China is to be recognized for its trust in the multilateral trading system and its 
desire to reinforce it by promoting stable, transparent and predictable disciplines. 
4.220.  Trade in goods between the Kingdom of Saudi Arabia and Hong Kong, China grew in 2013. 
The Kingdom of Saudi Arabia primarily exports chemicals and petrochemicals to Hong Kong, China 
and imports information technology equipment. During the period of review, initiatives were taken 
to develop trade and investment relations between  the Kingdom of Saudi Arabia and Hong Kong, 
China.   
4.221.  In closing, I would like to congratulate Hong Kong, China for its solid economic 
performance over the review period and its co mmitment to the reinforcement of world trade 
through the improvement of the WTO system. Th e Kingdom of Saudi Arabia too wishes an 
intensification of the current round of negotiations with a view to concluding them in the interest of 
the entire membership. 
NORWAY 4.222.  Norway appreciates the very open and liberal trading regime in Hong Kong, China. This 
regime is no doubt one of the principal reasons for the impressive growth of Hong Kong economy 
over many years and the prosperity that Hong Kong, China enjoys today as well as the strength of the economy in resisting the financial turmoil over the last few years. 
4.223.  Indeed, as others have mentioned, Hong Ko ng, China has very impressive rankings in 
many of the international rankings that are taking place. This concerns trading across borders, economic freedom, competitiveness and ease of doing business. As my Colombian colleague stated 
indeed in many respects, Hong Kong, China is a st ar people. There is one question that strikes me 
in the face: only 46% tariff bindings in the schedule?  WT/TPR/M/306 • Hong Kong, China 
 
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  4.224.  We have also, as others, noted the challenges related to preserve fiscal sustainability in 
the face of an aging population. And others have also mentioned the problems of income disparities and this is a challenge Hong Kong, China has to face. Indeed, we see some increase public expenditure on health care and welfare as welcomed developments in this respect.  
4.225.  A predictable environment for trade and investment including legal security and a 
transparent society with free flow of information are other major assets that benefit business with and in Hong Kong, China. These assets mu st also be safeguarded in the future. 
4.226.  We view positively the work that has been undertaken to further strengthen competition 
policies, most notably the adoption of a comprehensive Competition Law in 2012.  
4.227.  Hong Kong, China and Norway attach great importance to the multilateral trading system, 
the conclusion of the Doha Round and the implementa tion of the Bali package. Particularly now in 
the current economic climate, the world economy needs an impetus. 
4.228.  Hong Kong, China plays a very active role in the WTO. It is not only an active Member but 
also a very constructive one and, indeed, friend  of the system. This is  highly appreciated by 
Norway. 
4.229.  Referring to our bilateral trade relationship, Hong Kong, China is Norway's 8
th largest 
trading partner in Asia and number 33 in the world.  Norway is pleased with the functioning of our 
free trade agreement with Hong Kong, China which entered into force on the 1st of November 
2012. Our agreement, as others have referred to, was concluded by the EFTA (European Free Trade Association) with Norway, Iceland, Liec htenstein and Switzerland. The agreement has a 
comprehensive scope, including trade in goods, industrial and processed agricultural goods, fish 
and other marine products, trade in services, investment, protection of intellectual property rights, 
government procurement, competition, trade and environment, and provisions on dispute 
settlement. 
4.230.  In addition, bilateral agreements on agricult ural products between the EFTA States and 
Hong Kong, China form part of the instruments establishing the free trade area between both sides. Indeed, the level of ambition in the free trade agreement, particularly on services, has 
served as an example as we now work on the TiSA negotiations to improve trade relations in the 
area of services. 
4.231.  Hong Kong, China and Norway are both significant marine nations. Norway appreciates the 
open market situation for maritime transport in Hong Kong, China and the cooperation with Hong 
Kong, China in promoting commitments on maritime transport in the WTO. Norway welcomes 
Hong Kong's decision to establish an Emission Controlled Area (ECA) in the harbour from 2015 and is ready to work with Hong Kong to develop the ECA. 
4.232.  In closing, Norway appreciates this opportunity to comment on Hong Kong, China's trade 
policy, and we welcome further cooperation on trade matters with our colleagues from Hong Kong, China. 
INDIA 
4.233.  Despite uncertain external economic environm ent, we note that between 2010 and 2013, 
the economy of Hong Kong, China expanded at an average annual rate of over 3%. The structure 
of Hong Kong, China's economy is dominated by the services sector and it remains highly 
externally oriented economy, which is evident from its high trade/GDP ratio of 458% in 2013.  
4.234.  Given its sound macroeconomic framework, prudent fiscal policies and business friendly 
environment, in 2013, Hong Kong China’s GDP was 14% higher in real terms than its pre-crisis 
peak in 2008, and the medium term outlook for the economy remains positive. However, Hong 
Kong, China also faces a number of policy challenges, including the need to preserve fiscal sustainability in the face of an ageing population, addressing income inequalities and ensuring a 
stable property market, as brought by the discussant in his presentation.    WT/TPR/M/306 • Hong Kong, China 
 
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  4.235.  Bilateral trade between India and Hong Kong Special Administrative Region has been 
growing steadily and in 2013 stood at about US$ 22 billion. India is Hong Kong China’s 7th largest trade partner. Our bilateral trade and investment ties between India and Hong Kong, China are underpinned by a robust framework of institutional arrangements. Most recently, in the backdrop 
of increasing bilateral trade, the two sides signed in 2013 a Mutual Recognition Arrangement 
(MRA) of the Authorized Economic Operators programme (AEOs) to be administered by the respective customs administrations.    
4.236.  The large volume of trade is underpinned by strong presence of Indian banks in Hong Kong 
as well as leading Indian IT firms. A robust presen ce of Indian professionals in the services sector, 
and more than half million Indians visiting Hong  Kong, China every year, provide added dynamism 
to India-Hong Kong China relations. We look forward to taking our bilateral economic engagement 
with Hong Kong, China forward given the vast potential for growth.     
4.237.  Finally, my delegation appreciates the active role played by Hong Kong, China in the WTO 
under the leadership of PR Irene Young, and its commitment to multilateral trading system. With 
these words, we wish the delegation of Hong  Kong, China a productive and successful TPR. 
PANAMA 4.1.  Hong Kong, China is among the 20 main users of the Panama Canal by average gross 
tonnage per vessel and the second largest by gr oss tonnage for the fiscal year 2014, which shows 
the importance of our country's trade with the territory. Moreover, Hong Kong, China and Panama also share a substantial interest in the logistics and services sectors, since our free zones are respectively the largest and second largest in the world. 
4.2.  We would emphasize that this review and the part played by Hong Kong, China in the various 
bodies of this Organization bear witness to Hong Kong, China's endeavours to facilitate trade. We also highlight the progress made by Hong Ko ng, China's economy towards high value-added 
sectors and note, in this connection, the great importance of services and the commitments 
undertaken in the intellectual property field. 
4.3.  Hong Kong, China's commitment to the multilateral trading system is clearly demonstrated by 
its active participation in the life, work and negotiations of the WTO. All these efforts have allowed 
it to assume a highly visible profile in this Or ganization and in the global trade negotiations. 
4.4.  To conclude, we urge Hong Kong, China to work to improve on those areas that have been 
identified during the review as needing greater at tention, so that it remains on a steady growth 
path. We wish it a successful trade policy review. 
EL
 SALVADOR 
4.5.  As regards trade relations between El Salvador and Hong Kong, China, my country's exports 
to Hong Kong, China amounted to US$3.8 millio n in 2013, while imports from Hong Kong, China 
were worth US$95.3 million, down by 6% from 2012. 
4.6.  As regards bilateral trade, El Salvador's main export products to Hong Kong, China are edible 
products of animal origin, live reptiles, poultry products, plastics, processed fish products, 
crustaceans and molluscs, made up textile products and footwear. The main imports are telephony products, knitted or crocheted fabrics of dyed cotton, apparatus for radio telephony or radio telegraphy, paper and paperboard. 
4.7.  We note that Hong Kong, China is one of the world's leading trade and financial centres. In 
2013, it was the world's eighth largest economy in terms of merchandise trade, eighth largest banking centre in terms of external transactions, sixth largest stock market in terms of market 
capitalization, and fifth largest foreign exchange centre in terms of turnover. 
4.8.  In the Index of Economic Freedom released by  The Heritage Foundation in 2014, Hong Kong, 
China ranks first for the 20th consecutive year. Canada's Fraser Institute has also consistently 
ranked Hong Kong, China as the freest economy in its annual report on Economic Freedom of the 
World. WT/TPR/M/306 • Hong Kong, China 
 
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  4.9.  We further note that for many years now Hong  Kong, China has maintained its leadership 
role as a free economy. According to the report submitted, it is a market economy with few barriers, adopting measures to restructure its economy and trade in order to attract foreign investment and place greater emphasis on services. 
4.10.  We commend the efforts made by Hong Kong, China in the form of ongoing improvements 
in the administrative sphere, transparency in its notifications, and TBT and SPS systems that are transparent and relatively simple. It has also notified the new Food Safety Ordinance, which 
establishes a registration scheme for food importer s and distributors, and requires food traders to 
maintain proper transaction records for a specified period in order to enhance food traceability. 
4.11.  Turning to innovation and technology, we congratulate Hong Kong, China for its efforts to 
foster innovation and high value added, technology intensive economic activities. We urge it to 
share its good practice within the South South framework in particular because, thanks to its R&D 
capacity, technological infrastructure, world class universities and pool of R&D talents, among other things, Hong Kong, China has an enabling environment for the business sector to collaborate 
with universities and R&D organizations to conduct research, backing innovators right the way 
through to the commercialization of their innovations, with direct support from the Innovation and Technology Commission and the Innovation and Technology Fund (ITF). 
4.12.  The promotion of an environment conducive to the development of innovation and 
technology inspires developing country Members such as El Salvador to provide for such modalities in their public policies, in order to encourage investment in this area and enhance cooperation between the government and industry , academia and research sectors. 
4.13.  As regards the multilateral framework, we  congratulate Hong Kong, China for its 
commitment to and support for the multilateral trading system, sending out clear signals in favour of the successful conclusion of the Doha Develo pment Agenda and the implementation of the Bali 
package, and undertaking, among other efforts, to apply the Trade Facilitation Agreement upon its 
entry into force, which we hope w ill occur in the very near future. 
4.14.  Considering all of the foregoing, it only remains for us to wish Hong Kong, China a very 
successful review, in the knowledge that it w ill be an interesting and fruitful exercise. WT/TPR/M/306 • Hong Kong, China 
 
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  5  REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND ADDITIONAL 
COMMENTS 
5.1.  I sincerely thank Members for the kind words and very constructive comments you have 
offered us in the first session of the Trade Policy Review meeting on Wednesday. I would like to 
address the broader questions on our macroeconomic environment first and then the specific 
issues in which Members have shown particular interest.  
Macroeconomic issues 
Long Term Fiscal Position 
5.2.  A number of Members have asked about the challenges presented by an ageing population 
and our approach towards maintaining our healthy fiscal position. Hong Kong, China (HKC) is prepared to rise up to these challenges. In fact, the Government set up the Working Group on 
Long-Term Fiscal Planning (Working Group) last year to look into this issue. The Working Group 
has conducted the first comprehensive fiscal sustainability appraisal of our public finances. Having regard to our demographic trends, economic grow th and prevailing policies, it has compiled a 
projection on the Government’s long-term fiscal position.   
5.3.  According to the Working Group's analysis, the Government's overall fiscal position in the 
short to medium term remains healthy. It also foreshadowed that to ensure fiscal sustainability 
and avoid the problem of structural deficit in the longer term, the Government must seek to foster 
economic growth, and align the growth rates of government revenue and expenditure.  
5.4.  We are therefore putting in place a series of fiscal measures primarily to manage expenditure 
growth and broaden the revenue base. We have also invited the Working Group to explore and 
propose options for a savings scheme, and to advise on how the Government can step up the 
management of its assets.  
Income disparity 
5.5.  The Discussant and some Members also asked about our actions to tackle income disparity, 
while noting that HKC’s economy has grown continuously despite a challenging external environment. We have reinstated the Commission on Poverty since 2012 to promote tripartite 
collaboration among the community, the business sector, and the Government to address this 
important issue. We have taken a number of measures to render assistance to the disadvantaged. 
Trade and investment regime 5.6.  On HKC’s trade and investment regime, we have provided detailed written replies to 
Members’ questions on specific trade policies and measures. Here, I will respond to a few key 
points.  
Competition policy 
5.7.  Members have shown great interest in our Competition Ordinance and the institutional 
arrangements for implementing the Ordinance. This is not unexpected, as the enactment of the Ordinance represents a major milestone in the development of the competition policy in HKC. It 
underlines the determination of the Government in maintaining fair and free competition in the 
market.   
5.8.  Subsequent to the enactment of the Ordinance in June 2012, the Government has been 
working together with the Judiciary and the Competition Commission (the Commission) on the 
phased implementation of the Ordinance.  This ap proach allows the public and the business sector 
to familiarise themselves with the new legal requir ements during the transitional period and make 
necessary adjustments to their business practices. 
5.9.  One of the major tasks leading to the full implementation of the Ordinance is for the 
Commission to prepare guidelines. The Commission published a set of draft guidelines in October this year, and has been consulting the public sinc e then. The draft guidelines cover issues such as WT/TPR/M/306 • Hong Kong, China 
 
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  how the Commission will interpret and give effect to the competition rules in the Ordinance; how 
complaints are to be made; procedures for investigation; and procedures for application for exclusions and exemptions. 
5.10.  Meanwhile, the Judiciary has been working to  prepare for the full operation of the 
Competition Tribunal, including the making of rules relating to its operations and proceedings, and 
the making of other necessary administrative arrangements. 
5.11.  A few Members have enquired about the Merger Rule which only applies in the 
telecommunications sector. This is the case because in making the Ordinance and in our public 
engagement efforts, we note that there was no clear consensus in the community to apply merger control to all economic sectors. Merger control therefore only applies in the telecommunications sector, where such regulation already exists.  
5.12.  As experience and expertise build up a few years after the Competition Ordinance comes 
into full operation, the Government will conduct a review, and merger control will be covered in the review. 
Intellectual property rights 
5.13.  We are very encouraged by Members’ acknowle dgement of our efforts in the protection of 
intellectual property (IP) rights. Colleagues from Canada, the EU, Japan and the US have, in 
particular, commended our efforts in coping with the global challenges of infringement of IP rights 
in the rapidly changing digital environment. In this regard, the introduction of the Copyright 
(Amendment) Bill 2014 is welcomed as a positive step to ensure that our copyright law keeps pace with technological and overseas developments. 
5.14.  I can see from the questions received that our IP regime is of great interest to many 
Members. I assure Members that we will review and update our IP legislation in the light of the latest international development. We will also strive to promote respect for IP rights in the general 
public, and step up the fight against internet piracy. We will also enhance our co-operation with 
other Members’ IP enforcement authorities in combating cross-border IP rights infringements. 
Tariff binding 
5.15.  We are encouraged to note Members’ recognition of our open and free trade policies 
including our well-established zero-tariff regime in goods and highly liberal regime in services. Members also spoke highly of our staunch support for the multilateral trading system and our efforts in furthering trade liberalization. We do look forward to substantial reduction and 
elimination of tariffs on goods and ambitious liberalisation in services in the Doha Round 
negotiations.   
Excise duty on liquor 
5.16.  We note the suggestion to abolish or reduce the excise duty on liquor. Apart from fiscal 
consideration, we will need to take into account social and health concerns when approaching this issue. At present, we have no plans to review liquor duty. 
SPS and TBT 
5.17.  In the areas of SPS and TBT, I assure Members that HKC maintains only those non-tariff 
measures that are required to protect public heal th, safety, security and the environment, and to 
fulfil our obligations under international agreements. We are confident that they are in compliance 
with WTO agreements, and we will keep them under constant review.  
Concluding remarks 5.18.  HKC values the frank and positive exchanges in the TPR meeting. The TPR exercise has 
been informative for us and is invaluable in promoting transparency and understanding of WTO 
Members’ regime. HKC will continue to play an active role in the Trade Policy Review Mechanism and in the WTO. Thank you. WT/TPR/M/306 • Hong Kong, China 
 
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  DISCUSSANT 
5.19.  I would like to congratulate Ms. Carol Yuen, Secretary for Commerce and Economic 
Development of Hong Kong, China and her delegation as well as their team based in Geneva, lead by Ms. Irene Young, Permanent Representative to the WTO for providing timely and 
comprehensive written replies to the questions received by the WTO Members.   
5.20.  I will be brief in summarizing my impressions of the discussions that took place on 
Wednesday.  
5.21.  Hong Kong, China’s clear and straight answers confirm the transparency that guides their 
work in the WTO. Those that are based in Geneva are used to the outstanding work of Hong Kong, 
China and Irene, which I would like to highlight as a precious asset.   
5.22.  This review of Hong Kong, China’s trade policy has confirmed the widespread opinion of the 
WTO Members on the great value contributions this  Member brings to the multilateral trading 
system. Hong Kong China performs such an outstanding role in the different WTO activities and in trade policy choices that I can only reaffirm that it should be the example to follow by both 
developed and developing members. Hong Kong , China contributes every day to the good 
functioning of this Organization, but more important to its citizens, Hong Kong, China makes the sort of policy choices that allows it to re ap the benefits of a globalized economy.   
5.23.  Let me briefly refer to some of the areas often highlighted by Members during this exercise.  
5.24.  Members have referred to Hong Kong, China's mi nimal restrictions on foreign capital flows 
and investment, the existence of few non-tariff barriers, and the transparency of its sanitary and phytosanitary measures.   
5.25.  As a small and open economy, highly sensitive to regional and global economic conditions, 
Hong Kong, China was commended by Members fo r not resorting to protectionist measures 
following the financial crisis. Instead, they focused on Hong Kong, China’s successful efforts to 
tackle the challenges through investments in infrastructure, assistance to small and medium 
enterprises, which happen to constitute over 98 % of the business establishments in Hong Kong, 
China, and on-going policy reforms to simplify procedures and enhance competition.  
5.26.  In fact, Hong Kong China's Financial Secretary, Mr. John C Tsang, considers that it is 
precisely their free-market philosophy, which has allowed for speedy and efficient adjustments of the economy in times of crisis. This is sometimes mentioned by a number of Members as a recognition.  
5.27.  Many showed interest in the growing trade and financial relationship with Mainland China, 
including Hong Kong, China's aim to become a re minbi trading hub. Through further liberalization 
of their trade in services and the recent launch of the Shanghai-Hong Kong Stock Connect, they 
are building even stronger ties. It is to note that despite its promising connection with the 
Mainland, Hong Kong, China has recently turned its attention to the negotiation of free trade 
agreements with other partners. This is an accurate change of policy, considering the risks 
associated with having all the eggs, or most of the eggs, in one basket.   
5.28.  In the area of intellectual property rights, most Members commended Hong Kong, China for 
its protection efforts and enforcement of the law, and look forward to the adoption and 
implementation of the new copyright bill.   
5.29.  Members also welcomed the adoption of Hong  Kong, China´s first competition law, and 
encouraged it to move forward to the actual enforcement. However, the need to broaden the scope of the law to ensure mergers and acquisitions control be applied to sectors other than 
telecommunications, was also highlighted by several delegations.   
5.30.  Members raised some concerns with respect to specific trade-related policies. One concern 
pointed out is overcapacity and overfishing, as  a by-product of a policy support program, for 
upgrading shipping vessels. This was also a concern that was mentioned during the last Trade 
Policy Review.   WT/TPR/M/306 • Hong Kong, China 
 
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  5.31.  Another concern dealt with the application of internal taxes based on the volume of alcohol; 
a measure affecting alcoholic beverages of higher volumes. The expansive use of import license requirements and the implications derived from applying local experience requirements to service suppliers in public works construction bids were also areas that were highlighted.   
5.32.  When it comes to challenges, income inequality, inflation and the implications of an ageing 
population were mentioned as some of the main areas in need of attention. They do not come as a surprise for the Government. We learned from the reports and the Government’s statement this 
week, that Hong Kong, China is already working on a long-term fiscal plan, encouraging the 
development of new services industries, among ot her programs to cope with a number of these 
challenges.  
5.33.  Despite the challenges and concerns raised by Members, there was an overall assessment 
that Hong Kong, China represents an example to  follow in terms of openness of its economy, 
transparency and predictability of its trade policies; policies that have led them to become a major player in world trade and a respected Member of the multilateral trade system.  
5.34.  Hong Kong, China has well understood that potential investors, small and middle size 
enterprises or consumers have little interest on whether giving trade liberalization decisions come from a Doha Round mandate, under Bali or the post-Bali, from a WTO plurilateral negotiation or 
from a regional trade agreement. They have well understood that the result that will make them 
efficient, competitive, predictable and resilient is what is crucial. They have well understood that since development is not something to postpone, policy decisions do not need to wait for others to align and has used different ways, very often autonomous liberalization to promote economic 
freedom, market economy and with this their ow n growth and development. Pure pragmatism, 
once again, is an extraordinary example to follow. 
EUROPEAN
 UNION 
5.35.  Let me first express our sincere appreciation to the delegation of Hong Kong, China for the 
timely replies they have provided to the adva nce written questions and for the comprehensive 
presentations given on the first day and today. 
5.36.  The EU has no follow-up questions but we are pleased to note that this review of Hong 
Kong, China has been very helpful for better under standing the trade policy of Hong Kong, China 
and the challenges Hong Kong, China is ca lled to face in the forthcoming years. 
5.37.  The EU would like to thank the delegation of Hong Kong, China for their very constructive 
participation in this exercise. 
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
5.38.  I would like once again to welcome Deputy Secretary Carol Yuen and her delegation from 
Hong Kong, China. I want to thank them for the constructive and efficient work for this review. 
5.39.  As a close neighbour to Hong Kong, China in geography, economy and culture, we are very 
pleased to participate in this TPR exercise and we have learnt from the recent reforms in Hong 
Kong, China. 
5.40.  We just submitted one follow-up question on patent law in writing to the Secretariat and 
look forward to receiving the reply in writing from Hong Kong, China. 
5.41.  I wish Deputy Secretary Carol Yuen and her delegates from capital a nice journey back 
home. 
 
Agenda item: Adoption of TPRB's Annual Report for 2014  
5.42.  The TPRB adopted its Annual Report for 2014 co ntained in document WT/TPR/W/71/Rev.1. WT/TPR/M/306 • Hong Kong, China 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This seventh Trade Policy Review of Hong Kong, China has enabled us to improve our 
understanding of recent developments in its trade and trade-related policies as well as the challenges it now faces. The review has benefi ted from the constructive engagement of the 
delegation of Hong Kong, China led by Ms Carol Yuen, Deputy Secretary for Commerce and 
Economic Development, as well as from the insightful contribution of our discussant, Ambassador Ronald Saborío Soto of Costa Rica, and from some 30 interventions by Members. Timely responses 
from Hong Kong, China to the large number of questions as well as its choice for the alternative 
time-frame were highly appreciated. We look forward to any additional replies no later than one month after this meeting. 
6.2.  Hong Kong, China was highly commended for maintaining one of the most open trade and 
investment regimes, which has earned it some of the highest rankings in world indicators of 
economic freedom and competitiveness. Members no ted that this liberal policy stance, together 
with sound macroeconomic fundamentals, a robust legal framework, and a business-enabling 
environment, have underpinned Hong Kong, China's continued economic growth, notwithstanding 
challenging external conditions. Members also recognized Hong Kong, China's success in consolidating itself as a major exporter and international centre for high-value added services, 
such as finance, transport, trade and logistics -an achievement that has been supported by its 
world-class physical infrastructure and connectivity to global markets.  
6.3.  Members praised Hong Kong, China's strong commitment to the multilateral trading system, 
including its active role in the DDA and its support for the implementation of the Bali package. In 
particular, Hong Kong, China was congratulated for being the first Member to notify the WTO that 
it will implement all provisions of the Trade Facilitation Agreement upon its entry into force without making use of any flexibility arrangements. Hong Kong, China's participation in plurilateral trade 
initiatives, including the revised GPA, the expansion of the Information Technology Agreement, 
and the Trade in Services Agreement, among others, was also acknowledged.  
6.4.  Likewise, Members noted with interest the ac tive engagement of Hong Kong, China in 
bilateral and regional trade agreements such as those signed with New Ze aland, the EFTA member 
states and Chile during the review period. They also acknowledged Hong Kong, China's increasingly deep economic and financial integration with Mainland China through the Closer Economic Partnership Arrangement (CEPA) and its supplements. Some Members welcomed efforts 
to reach full liberalization of services under CE PA by the end of 2015. The role of Hong Kong, 
China as an offshore renminbi trading hub and platform for doing business with China also drew Members' attention.  
6.5.  Hong Kong, China was commended for operating some of the world's most efficient and 
speediest customs clearance procedures and for its implementation of new trade facilitation measures, including its authorized economic operator scheme. In its written replies to questions 
regarding its textile trade control system, Hong Kong, China announced the cessation of textiles 
import and export licensing requirements from 21 November 2014, that is, today.  
6.6.  During the review period, Hong Kong, Chin a continued strengthening its trade-related 
regulatory framework, mainly by adopting comprehensive competition legislation, a new 
Companies Ordinance, and by updating some of its intellectual property laws to keep pace with 
technological developments; these areas have elicited much interest from Members.  
6.7.  Notwithstanding these impressive achievements, Hong Kong, China still faces some important 
structural challenges such as preserving fiscal sustainability in the face of an ageing population, 
addressing social inequalities and providing affordable housing. Cognizant of these challenges, the authorities of Hong Kong, China are already impl ementing measures to address these needs.  
6.8.  In the trade sphere, Members have identified some areas in which further improvements 
could be made or where more information is sought. The delegation of Hong Kong, China has addressed most of these issues in its final remarks or written replies. I would now like to highlight some of them: WT/TPR/M/306 • Hong Kong, China 
 
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   Tariff bindings:  while commending Hong Kong, China for applying all MFN tariffs at a zero 
rate, Members encouraged it to expand the coverage of its WTO tariff bindings. 
 Competition:  Members welcomed the recent adoption of comprehensive competition 
legislation in Hong Kong, China, which is a remarkable development from the previous 
Review. The exemption of statutory bodies and th e fact that merger control rules only apply 
to the telecommunications sector has drawn Members' attention. Hong Kong, China was therefore encouraged to consider extending the scope of the Competition Ordinance.  
 Intellectual property:  Members appreciated Hong Kong, China's initiatives to update its 
legislation in several intellectual property areas, as well as its actions to continuously improve enforcement of IPRs and raise awaren ess of the importance of their protection. 
They were keen to learn more about the Copy right Amendment Bill; the proposed Original 
Grant Patent system; the protection for GIs; and Customs' actions to strengthen 
enforcement against IPRs violations in the digital environment. 
 TBT and SPS measures:  Hong Kong, China was commended for maintaining transparent 
and relatively simple TBT and SPS regimes, and was encouraged to continue doing so. 
However, some Members sought further clarific ation about SPS measures relating to imports 
of dairy products, meat and high-risk food item s, and about a proposed ban on marketing of 
infant formula.  
 Services:  Members appreciated the overall liberal services regime applied by Hong Kong, 
China. Some encouraged it to bind such regime through more extensive GATS commitments, notably in sectors such as accounting, legal services and veterinary services; 
and regarding the temporary entry for business visitors, contractual services suppliers and 
independent professionals. 
6.9.  To sum up, Hong Kong, China was applauded for being one of the most liberal and market-
friendly economies, characterized by a sound le gal system and transparent regulatory settings. 
Indeed, Hong Kong, China's exemplary achievements illustrate how an open trade and investment regime is crucial in harnessing the benefits of global integration. Members encouraged Hong Kong, 
China to maintain the momentum along this path.    
6.10.  This successfully concludes our review of Hong Kong, China. The substantial number of 
advance questions and the many interventions are testimony to the important role Hong Kong, China plays in the WTO. I believe that the current Review will be helpful for Hong Kong, China in 
further improving its trade-related regulatory framework. 
6.11.  Finally, let me thank the delegation of Hong Kong, China for their efforts and dedication to 
this exercise, the discussant for his comments, and Members for contributing to what has been an 
informative Review. 
 
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