WORLD TRADE  
ORGANIZATION  WT/TPR/M/241 
26 January 2011 
 (11-0379) 
Trade Policy Review Body 
1 and 3 December 2010  
 
 
 
TRADE POLICY REVIEW 
 
HONG KONG, CHINA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF HONG KONG, CHINA 4 
III. STATEMENT BY THE DISCUSSANT 8 
IV. STATEMENTS BY MEMBERS 12 V. REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND ADDITIONAL 
 COMMENTS  34 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 39 
 
 
  
Note:   Advance written questions by WTO Member s and the replies provided by Hong Kong, China 
are reproduced in document WT/TPR/M/241/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/241 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The sixth Trade Policy Review of Hong Kong, China was held on 1 and 3 December 2010.  
The Chairperson H.E. Mr. Bozkurt Aran (Tur key) welcomed the delegation of Hong Kong, 
China headed by Mr. Martin Glass, Permanent Representative to the WTO, and the discussant, 
H.E. Mr. Eduardo Muñoz Gómez (Colombia).   
2. The Chairperson recalled the purpose of the Trad e 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/241 and that of the WTO Secretariat in WT/TPR/S/241. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to  the delegation of Hong Kong, Chin a:  Mexico, the United States, 
Australia, Korea, Brazil, Switzerland, Singapore, Ch inese Taipei, China, Turkey, Canada, Costa Rica, 
Japan, the European Union, Chile , Colombia, and Argentina.   
4. The following delegations submitted written questi ons after the two-week deadline:  Pakistan, 
New Zealand, Thailand, and Indonesia.   
5. The Chairperson noted that he had consider ed the Secretariat and Government Reports 
prepared for this meeting.  Both reports noted that although Hong Kong, China's economy was hit 
hard by the global financial crisis, it had recovered fairly quickly, and the crisis had not affected Hong 
Kong, China's belief in free and open trade.  The economic recovery was due mainly to the closer 
economic relationship with China and the latter's retu rn to strong growth.  The economy's resilience to 
external shocks was also underpinned by the flexibili ty of its wages and prices, and prudent regulation 
of its financial markets had shielded Hong Kong, Ch ina from the worst effects of the global financial 
crisis. 
6. Hong Kong, China was facing a number of challe nges, as well as opportunities, as result of 
the global financial crisis and Ch ina's shifting reliance from manufacturing to services.  For example, 
Hong Kong, China's position as a regional and gl obal financial centre was facing increased 
competition from cities such as Shanghai.  In response to the global financial crisis and the challenges 
it was facing, the Government of Hong Kong, Ch ina had been rethinking its role in promoting 
economic development.  The Chief Executive of the Hong Kong Special Administration Region (HKSAR) had unveiled incentives to promote the development of six innovative and knowledge-
based industries.  The intriguing question arose wh ether this marked a shift by the Government 
towards a more interventionist policy. WT/TPR/M/241 
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  II. OPENING STATEMENT BY THE REPRES ENTATIVE OF HONG KONG, CHINA 
7. This is our fourth Trade Policy Review afte r the establishment of the Hong Kong Special 
Administrative Region in 1997 and before 1997 we have a couple more.  The review mechanism 
promotes transparency and provides a useful forum for peer review and to foster understanding of the trade policies and practices of Members.  As in pr evious Reviews, we attach much importance to the 
Review and look forward to bene fiting from constructive and insightful comments from Members. 
8. Since our last Trade Policy Review in 2006, the economy of Hong Kong, China has gone 
through some pretty drastic ups and downs.  In 2007, our economy expanded rapidly in line with the 
strong global economic upturn.  However, the intensifi cation of the global financial crisis in the latter 
part of 2008 derailed this strong upturn.  Our econo my was hard hit in the first quarter of 2009 when 
the global recession led to a plunge in world trade.  Yet, as the global economy began to stabilise and as the Mainland of China resumed its fast pace of economic growth, our economy rebounded strongly 
in the second quarter of 2009 and has continued to  improve since then.  The economic recovery 
remained robust, and became incr easingly entrenched in 2010.  By now, our economy has already out 
performed the pre-crisis peak in 2008.  We expect  our economy to grow by 6.5% in 2010 as a whole.  
Hong Kong, China has emerged from the global financ ial crisis and the subsequent recession in good 
shape, thanks to our strong economic fundamental s that have been established over the years, and 
which I will highlight shortly together with majo r economic developments since the last Review. 
9. As one of the world’s freest economies, we fi rmly believe in, and support, a free market 
economy and trade and investment liberalisation and facilitation.  We have no tariffs, no restrictions 
on foreign exchange transactions, movement of capital,  or repatriation of capital and returns related to 
foreign investments.   
10. Hong Kong, China continues to earn global recogni tion of our strengths in financial market 
development, infrastructure, business-friendly e nvironment, world class institutions and market 
efficiency.  We remain highly competitive, especial ly in terms of government and business efficiency 
and economic performance.  Our strong fundamentals, such as free flow of information, ideas and 
capital, transparent regulatory regime, rule of law,  and low and simple tax regime are well known.  
All these contribute to our success as one of th e most favourable places to do business around the 
world.  In the latest publication of the World Bank’s Doing Business Report, Hong Kong, China again 
stands out as one of the easiest places to do business.  
11. We are committed to providing a business-friendly environment where all firms can compete 
on a level-playing field, foreign and local investor s alike, and enhancing our  regulatory regime to 
ensure the integrity and smooth functioning of a fr ee market.  We strongly believe that the market 
should always lead, and the Government should just  be a facilitator in a mature and open market 
economy.  The Government does not and cannot hand-pick winners.   
12. The growing economic relationship between H ong Kong, China and the Mainland of China 
has been mutually beneficial, and these links have strengthened further in recent years.  While the 
Mainland economy develops rapidl y, Hong Kong, China still has cl ear comparative advantages in 
terms of institutions, the rule of law, governan ce and geographical location.  These enable Hong 
Kong, China to maintain its status as an internationa l city of global significance, especially in our role 
as a leading international financial center.  
13. Our status as the international financial, trad ing and shipping centre of the region has also 
ensured that we continues to play a key role in  the cross-strait economic exchanges between the 
Mainland of China and Chinese Taipei.  Hong K ong, China’s intermediary role has actually 
strengthened, due to the rapid increase of goods, cap ital and people flows across the strait.  By the 
way of illustration, Hong Kong, China’s re-exports  involving the two sides increased strongly by 42%  WT/TPR/M/241 
 Page 5 
 
 
  in value terms in the first three quarters of 2010 over a year earlier.  Hong Kong, China has welcomed 
the implementation of the Economic Co-opera tion Framework Agreement between China and 
Chinese Taipei, as this will boost economic developmen t in the region as a whole.  Hong Kong, China 
will stand to benefit from the growth in demand for financial services, professional services and air 
cargo, as well as business and leisure travel. 
14. I will now turn to our trade policy developmen t.  I will start by reaffirming Hong Kong, 
China’s faith in and commitment to the multilateral trading system.  Hong Kong, China has observed 
the principle of free trade faithfully, tran sparently and to the highest standards. 
15. The benefits of a balanced and ambitious c onclusion of the Doha Development Agenda in 
strengthening the multilateral trading system and lib eralizing trade need no elaboration.  As I 
mentioned yesterday at the informal TNC meeting,  we are very much encouraged by the strong 
political emanating from our Leaders at recent G20 a nd APEC Summits, in that they have specifically 
pointed to the need for intensified engagement in Geneva and for negotiations across the board to take 
us into the endgame.  What we must do now is clear , and that is to act on these signals and translate 
them into real "give-and-take" in  our negotiations.  My delegation w ill strive to do our utmost in our 
collective efforts to open the window of opportunity for us to close out the Round in 2011. 
16. The benefits of the multilateral trading syst em have helped to stave off widespread 
protectionism despite the pressure from the global fi nancial crisis, for its part, Hong Kong, China is 
committed to resisting all forms of trade protectio nism.  We, together with other APEC member 
economies, have renewed the standstill commitment made in 2008 and extended to 2013.  Hong 
Kong, China also joined other Members to issue a ministerial statement at the OECD Ministerial 
Council Meeting in June 2009, calling upon economies to remain vigilant and exercise restraint 
against protectionism, and to rectify promptly  any protectionist measures introduced.   
17. Within the WTO, we have actively participat ed in the monitoring mechanism of trade and 
trade-related measures taken duri ng the recent economic crisis and which provides Members with 
regular updates within this Body.  We  believe that peer asse ssment is one of the best forms of policing 
to ensure compliance with the multilateral trading system, and we will continue to support this 
initiative.   
18. Turning to RTA, we also believe that free trade agreements (FTAs) which are fully WTO-
consistent can help promote the cause of glob al trade liberalization.  While upholding our 
commitment to the primacy of the multilateral tr ading system, we maintain a positive approach in 
pursuing with other economies high standard FTAs that go beyond WTO commitments.  So far, we have concluded a Closer Economic Partnership Arrangement with the Mainland of China and a Closer 
Economic Partnership Agreement w ith New Zealand.  FTA negotiati ons with the European Free 
Trade Association are under way. 
19. During the period under Review, Hong Kong, China has made efforts to further liberalize or 
improve various specific areas.  I would like to share with Members a few examples of our major initiatives.  Hong Kong, China is a free trade port with no applied MFN tariffs.  Excise duties are 
levied only on a few items and are applied to loca lly manufactured and importe d products alike.  With 
effect from February 2008, Hong Kong, China abolis hed the excise duty, amongst other items, wine.  
This has enabled our business community to take  advantage of the growing business opportunities 
across Asia.  Hong Kong, China has quickly become a major regional wine trading and distribution hub.  Wine imports have increased significantly by 162% over the two years since abolition of the 
duty.  Many wine-related companies have set up and/or expanded their presence in Hong Kong, 
China.  Wine auctions have become very vibran t affairs.  In 2009, Hong Kong, China became the 
world’s second largest wine auction centre, second only to New York.  WT/TPR/M/241 
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  20. To strengthen our position as a leading internationa l financial centre, we are sparing no efforts 
in modernizing our regulatory regime, enhancing investor pr otection and facilitating market 
development.  We aim to strike a balance between  investor confidence and the burden of compliance, 
and cater to both market innovation and regulatory effectiveness. 
21. In this regard, we will continue to deve lop our city as a global financial centre through 
promoting our thriving asset management and offshor e Renminbi business.  We are also rewriting our 
company legislation, modernizing our trust law, and preparing legislative proposals to introduce a 
corporate rescue regime and to require timely di sclosure of certain price-sensitive information by 
listed companies.   
22. On the competition front, Hong Kong, Chin a has introduced the Competition Bill in 
July 2010.  The objective of the Bill is to put in place a legal framework for regulating anti-
competitive conduct in all sectors which have the obj ect or effect of preventing, restricting or 
distorting competition in Hong Kong, China.  The Bill is now being scrutinized by our legislature.   
23. As regards intellectual property rights, our laws comply fully with the international standards 
laid down in the TRIPS Agreement.  We keep our laws under constant review to ensure that they 
remain appropriate in present-day circumstances.  Since the last Trade Policy Review in 2006, we 
have introduced a number of legislative measures to further strengthen the protection of IPR in Hong 
Kong, China.  The Copyright Ordinance was amended in July 2007 to provide, among other things, civil remedy and criminal liability for certain infringing activities, including the business end-user 
copying and distribution offence as well as anti -circumvention measures.  We also took the 
opportunity to make our copyright exemption regime more flexible and to strengthen the enforcement 
of rights.  In November 2007, we amended the Pate nt Ordinance to implement the Protocol amending 
the TRIPS Agreement which facilitates access to generic versions of patented pharmaceutical 
products for addressing public health problems.    
24. Meanwhile, we have spared no effort in su ppressing counterfeiting and piracy activities in 
Hong Kong, China.  Our Customs officers work cl osely with rights owners and other enforcement 
agencies to combat related crimes.  Our Intellect ual Property Department has also made sustained 
efforts to enhance the awareness of and respect for IPR in the community through various publicity 
and education programmes. 
25. Finally, I would like to touch briefly upon some social and public policy issues that have been 
highlighted in the Secretariat Report.  Apart from economic development, Hong Kong, China also 
attaches much importance to social development, and strives to achieve social and public policy goals 
consistent with free market principles. 
26. One important area of work is public health.  The Government is mindful that provision of 
nutritional information on food labels is an im portant public health tool.  We have therefore 
introduced our nutrition labelling scheme for pre-packag ed food and this took effect from July 2010.  
The scheme aims to assist consumers in making informed food choices, to regulate misleading or deceptive labels and nutrition claims, and to en courage food producers to apply sound nutrition 
principles in the formulation of foods. 
27. The scheme has been carefully dr awn up to be in line with in ternational standards and in 
compliance with the WTO SPS standards.  The sc heme does not create any trade barrier for the 
import of pre-packaged food.  We have adopted a number of trade facilitation measures to enable 
traders to comply with the new requirements including provision of laboratory support, technical information and tools and workshops.  We have al so introduced a Small Volume Exemption scheme 
under which many niche food prod ucts imported in small volumes  would be exempted from the  WT/TPR/M/241 
 Page 7 
 
 
  labelling requirement.  Thanks to  the cooperation of the trade, the scheme has been implemented 
smoothly without undue impact on consumer choice,  and with a compliance rate of over 99%.   
28. Another important social policy initiative is the introduction of a statutory minimum wage to 
protect low-income workers, and forestall excessive ly low wages.  In setting the minimum wage the 
Government has sought to strike a balance to en sure that its introduction would not compromise our 
economic freedom and competitiveness. 
29. In conclusion, I have briefly outlined the be liefs that underpin our trade and economic 
policies, the economic and social development as well as major trade policy initiatives since the last 
Review.  As a small territory without many natura l resources, trade is indeed Hong Kong, China’s 
lifeblood.  We believe that the multilateral trading sy stem as embodied in the WTO is crucial to the 
continued growth of our economy.  We will continue to play an activ e role in the WTO to promote the 
primacy of the multilateral trading system and to st rive for trade liberalization through the prompt 
conclusion of the DDA.   WT/TPR/M/241 
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  III. STATEMENT BY THE DISCUSSANT, H.E. MR. EDUARDO MUÑOZ GÓMEZ 
(COLOMBIA) 
30. It is a genuine privilege for me to serve as the discussant for the Trade Policy Review of 
Hong Kong, China.  There are a variety of reas ons for this:  Hong Kong, China is a dynamic, 
expanding economy, essentially based on trade in g oods and services.  Its policy and practices are 
geared towards market openness, integration of th e economy in international trade flows and ever 
increasing levels of competitiveness.  It is, moreover, a WTO Member highly committed to a free, sound and stable multilateral system. 
31. Hong Kong China's trade policy viewed in the light of trade performance provides an 
objective picture of its effectiveness, particularly in an unfavourable environment such as we have 
recently experienced.  It should be recalled that intern ational trade is not a goal in itself but a tool for 
economic growth and, ultimately, for the comprehe nsive development of society.  The investor 
community clearly supports HKC's economic regi me, as reflected by a stock of inward FDI 
amounting to four times HKC's GDP in 2008.  The introduction to the Government Report for this Review states that in 2007, HKC's economy "… expanded rapidly alongside the strong global 
economic upturn … [D]ue to the intensification of the global financial crisis ... the HKC economy was 
hard hit in the first quarter of 2009, due mainly to the plunge in world trade.  As the global economy began to stabilize and as the economy of the Main land of China resumed faster growth, our economy 
rebounded strongly in the second quarter of 2009 and c ontinued to improve in the second half of the 
year.  The economic recovery became increasingly entrenched in the first quarter of 2010".  
The Report goes on to highlight a point that clear ly illustrates HKC's economic and trade policy, 
i.e. " ... [t]he institutions and policies that served HKC well in the past, such as the rule of law, free 
and open trade policy, low and simple tax regime, and a level playing field for business, remain the 
bedrock of HKC's prosperity". 
32. Trade is fundamental for Hong Kong, China (accordi ng to the Secretariat, the ratio of trade to 
GDP was 380% in 2009).  Thanks to its open trade policy directed towards international markets and 
the Chinese market in particular and a stable a nd transparent investment regime, HKC has succeeded 
in weathering the ups and downs in the global ec onomy, as confirmed in the Secretariat Report:  
"Hong Kong, China remains one of the most market  oriented and open economies in the world ...  
Although [its] economy suffered a sharp contraction in early 2009 … it has recovered fairly quickly 
owing mainly to its closer ec onomic relationship with China". 
33. During the crisis, Hong Kong, China did not si mply wait for the market to respond.  
It pursued its prudent regulation of the financial ma rkets and, as part of a set of counter cyclical 
measures, it introduced a bank deposit protection sch eme in order to maintain confidence in the 
banking sector;  it also took the customary precauti onary measures to maintain a sound banking 
system, a strong external financial position and h ealthy public finances.  As the economy hinges on 
trade, which has enabled it to achieve rapid and sustai ned growth, it is useful to examine the trends in 
HKC trade because of the lessons they can yield conc erning its strengths and the challenges before it. 
34. According to Secretariat data, the value of HKC's merchandise trade reached 
US$665,800 million in 2009, including US$318 ,500 million worth of exports and 
US$347,300 million worth of imports.  The magnitude of  these figures made this economy the world's 
sixth largest exporter and fifth largest importer of goods in 2009.  However, re-exports, to a large 
extent involving Mainland China, are a spec ial phenomenon and a ma jor export component, 
accounting for US$311,000 million (or 97.6%).  Dom estic exports amounted to US$7,400 million, 
that is, 2.4% of the total. 
35. A review of the origins and destinations of HKC  trade reveals a number of significant trends.  
HKC's imports come from China (46.4%), Japan (8 .8%), the EU (7.7%), Chinese Taipei (6.5%) and  WT/TPR/M/241 
 Page 9 
 
 
  Singapore (6.5%).  Domestic exports go to China (4 6.2%), the United States (12.7%), the EU (8.8%), 
Singapore (3.9%) and Chinese Taipei (3.3%).  Re-e xports are destined to China (51.3%), the EU 
(12.6%), the United States (11.5%), Ch inese Taipei (3.3%) and Japan (4.4%). 
36. This raises several questions concerning trade be haviour which merit further consideration.  
Re-exports are clearly important for HKC trade.  Ho wever, they represent a very large proportion of 
total exports.  How to ensure that this does not  become a weakness over time?  Hong Kong, China's 
geographical proximity to and close relationshi p with China offer obvious business and economic 
opportunities.  However, China's role as a market  of origin and destination of HKC merchandise 
imports and exports is gradually increasing.  How, again, to ensure that these very close ties do not 
turn into dependency and ultimatel y a weakness for Hong Kong, China? 
37. According to the Secretariat, HKC's economy m oved swiftly from manufacturing to services.  
Services contributed 92% to GDP in 2008 and accounted  for 88% of total employment generation in 
2009.  As was to be expected, this shift in produc tion also entailed a tremendous change in services 
trade. 
38. In 2009, HKC's exports amounted to US$86,3 02 million and its imports  were valued at 
US$44,377 million.  The main components of servi ces exports were trading in goods (30.2%), 
transport (29%), travel (19.1%) and financial services (12.6%).  At least two of these activities, 
i.e. transport and trading in goods, are directly co nnected to merchandise trade, once again pointing to 
the critical importance of this activity for HKC trade. 
39. If we look at the direction of trade in services, export and import trends differ from those of 
trade in goods.  In value terms, 25% of services expor ts went to China and 21.4%  to the United States, 
other destinations accounting for 34.4%;  25.6 % of services imports came from China and 14.8% 
from the United States, other origins representing 38% of the total.  This shows that whilst China 
plays an increasingly dominant role in HKC merchandi se trade, the composition of trade in services is 
much more balanced and diversified in terms of or igin and destination.  This trend in services trade 
somewhat alleviates concerns regarding excessive reliance on a single trading partner as a market 
destination as well as a supplier. 
40. As already noted, services play a very signifi cant part in HKC's economy, with a 92% share 
of total GDP.  In contrast, agriculture and manuf acturing (0.1% and 2.5% share, respectively) are 
steadily declining.  Non government services with  the largest contribution to GDP are import and 
export trade (21%), financing and insurance (16%),  ownership of premises (11.5%), and transport, 
storage and communications (7.7%).  A major proportion of these are clearly linked to international 
merchandise trade.  The current production situation of HKC's economy can therefore be said to rely 
on traditional services largely centred on one key ac tivity, namely trading in goods.  Although this 
situation adds strength to the HKC economy for the time  being, it could entail challenges in the future 
because of the economy's very strong focus on an end activity. 
41. In order to broaden the production base, the au thorities have adopted a new policy.  Albeit not 
an explicitly stated objective, implementation of this policy will lead to greater diversification in trade 
in services.  According to the Government Report,  "[w]hile HKC has exhibited much resilience in 
countering the crisis, we have also been cons tantly looking for opportunities to strengthen our 
economic foundations further and enhance our comp etitiveness.  In his 2009-2010 Policy Address, the 
Chief Executive of the HKSAR unveiled new incentives to promote the development of six innovation and knowle dge based industries ... These six industr ies are education services, medical 
services, testing and certification, innovation and t echnology, cultural and creative industries, and the 
environmental industry.  The aim of the policy init iative is to broaden HKC's economic structure". WT/TPR/M/241 
Page 10  
 
  42. It is encouraging to note that the authorities are anticipating the challenges outlined above and 
are seeking to develop new sectors, most of th em services related.  Such a strategy should be 
underpinned by improved human resource training and higher education levels and by developing and 
adopting technology.  It will also require maintain ing high level infrastructure, particularly in 
research, communications and information technology.   Moreover, and to conclude this review of 
HKC's production structure, there still appears to be  room for growth in traditional services sectors 
such as finance and tourism.  In the course of th is Trade Policy Review, many Members had questions 
pertaining to the policy for promoting the six new s ectors.  The greatest concerns seem to arise in 
connection with the incentives gran ted for the new sectors, and several considerations are of note in 
this respect:  the incentives should be of a cross cu tting nature and linked to the sectors' initial stages 
of establishment;  they should apply for a temporary,  pre determined period of time;  and they should 
not relate to the actual operation of businesses in the sectors concerned. 
43. As already noted and as emerges from the Secret ariat Report, HKC's legal, institutional and 
trade policy framework is open, highly transparent,  and effective.  Instead of commenting point by 
point, I shall therefore refer briefly to some areas of trade policy and practices where further action 
might be taken. 
44. Hong Kong, China has begun to negotiate free trade agreements.  This policy may yield 
positive results to the extent that it supplements  but does not override the multilateral system.  
The Closer Economic Partnership Arrangement (CEP A) between China and HKC can help strengthen 
and liberalize trade between the two economies, particularly in the area of services.  It would be 
interesting to explore possibilities of extending the arrangement as regards government procurement, 
which is a high value market for the two parties. 
45. In their endeavours to counter the impact of the financial crisis, the authorities introduced a 
series of measures in support of enterprises and esp ecially SMEs.  Several Members raised questions 
concerning these measures.  The important thing to remember is that the measures are definitely of a temporary nature and will be revoked as soon as th e effects of the crisis have subsided, as 
circumstances currently seem to indicate. 
46. Electronic submission of import declarations is a very positive step in enhancing efficiency.  
Nonetheless, it should be recalled that these can only be processed through three Government 
appointed service providers. 
47. HKC's applied MFN tariffs are zero.  It is surprising for such an open economy to have a 
relatively high percentage of tariffs unbound in the WTO.  This appears to be inconsistent with the 
trade policy implemented by HKC. 
48. It is to be hoped that the Competition Bill will soon be adopted and enforced.  
Rules governing competition are basic tools in a modern economy and do not run counter to HKC's 
economic openness. 
49. The political purpose of HKC rice policy is understandable.  None theless, experience 
suggests that the liberalization process under wa y since 2003 has proved effective and should be 
pursued for the benefit of the consumer market as a whole. 
50. In contrast, sustainable fishing in Hong Kong,  China is faced with tremendous challenges.  
It would therefore be desirable to implemen t the recommendations made by the Committee on 
Sustainable Fisheries with a view to limiting fishing activities and banning destructive fishing practices.  WT/TPR/M/241 
 Page 11 
 
 
  51. The energy market, one of the pillars of economic activity, would benefit from in depth 
review of its efficiency, long term stability of supply and impact on the environment. 
52. The review of a vibrant, dynamic and open economy such as Hong Kong, China's, committed 
as it is to the multilateral trading system, is an enriching exercise.  HKC's economic trends bear 
witness to the benefits of integration in internati onal trade flows and of pursuing a consistent trade 
policy. 
53. As Hong Kong, China struggles to consolidate its  economy, it is faced with challenges arising 
from the very circumstances that brought it success.  For the authorities, the overriding question is 
how HKC's economy is to overcome these challenges in a positive way – or, as Ortega y Gasset would have put it, overcome its own circumstances – and emerge stronger and better as a result.  
The authorities have a great many tools at their disposal and will most certainly also benefit in their 
endeavours from age old Chinese wisdom and farsightedness. WT/TPR/M/241 
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  IV. STATEMENTS BY MEMBERS 
MEXICO 
 
54. Hong Kong, China is one of the most salient  examples of successful implementation of a 
policy aimed at liberalizing trade and investment.  I shall merely reiterate how speedily its economy 
rebounded after the plunge in trade in 2009, and, as we  all know, trade is the driving force of HKC's 
economic growth.  It should also be emphasized that in 2009 trade in goods underwent a sharper decline than trade in services and that services ma ke up 92 per cent of HKC's externally oriented 
economy, which explains the very high share of  re-exports and re imports in total trade. 
55. I must confess that it was no easy task to deliver a statement concerning a Member that 
adopted no protectionist measures in the wake of th e recent international financial crisis, with an 
outstanding record of notifications to the various  WTO bodies, very few restrictions on foreign trade 
and an almost fully computerized customs administration.  According to Doing Business 2011 , HKC's 
economy ranks second in terms of ease of doing busin ess.  Its applied tariffs are zero, although it 
would be desirable for HKC to bind them;  it applies no restrictions on foreign investment;  and it 
provides for freedom of financial flows. 
56. We would like HKC's liberalization process to extend to consumption taxes on tequila, 
because alcoholic beverages containing more than 30 per cent alcohol by volume are taxed at 100 per cent, whereas wines and other alcoholic beverages are zero-rated. 
57. By removing duties on wines, Hong Kong, China has become a global wine auction hub, 
overtaking London and coming second only after New Yo rk.  If it were to abolish the 100 per cent 
consumption tax on tequila, HKC would emerge as one of the world's auction hubs for this product as 
well. 
58. Mexico will closely follow developments as re gards the key challenge facing HKC in the area 
of services, that is, to maintain its position as a regi onal and international financ ial, trade and logistics 
centre in the face of increasing competition from the Asia and Pacific region. 
59. As already mentioned in the context of previ ous Trade Policy Reviews, Hong Kong, China is 
important to Mexico as a strategic partner in the Asia and Pacific region.  This is reflected in the ever 
increasing levels of bilateral trade, which rose by  33 per cent between 2000 and 2008, i.e. one year 
before the international financial crisis.  Unlike in other markets, Mexico's exports to HKC fell by 
only 4 per cent as a result of the crisis.  Impor ts from HKC and Mexico underwent a 17 per cent 
increase over the same period. 
60. HKC's FDI flows into Mexico have focused primarily on the manufacturing industry, 
accounting for 75 per cent of total inflows.  Today,  37 HKC businesses are operating in Mexico, most 
of them in the export market but also incl uding port operators and enterprises involved in 
infrastructure development. 
61. Hong Kong, China and Mexico have held simila r positions in a number of international trade 
forums.  At the WTO, we belong to the Middle Ground Group that seeks to reconcile the different 
positions in NAMA;  in APEC, our support goes to various initiatives such as streamlining customs 
procedures and promoting greater mobility of bus iness persons, which have helped enhance the 
region's business environment by reducing business cost s;  and in the OECD Trade Committee, we 
generally share similar positions.  WT/TPR/M/241 
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  UNITED STATES 
62. The past four years since Hong Kong, Chin a’s last Trade Policy Review have been 
tremendous challenges to economies around the wo rld, and Hong Kong, China’s has been no 
exception.  The United States recognizes and commends Hong Kong, China for its unwavering commitment to open trade and investment during these challenging times.  We value the 
Government’s assertion that the institutions and pol icies that served Hong Kong, China well in the 
past, such as the rule of law, an open trade policy,  "and a level playing field for business, remain the 
bedrock" of Hong Kong, China’s prosperity.  Ho ng Kong, China’s strong commitment to these 
policies has made this recovery possible and will ser ve Hong Kong, China well in the years to come.  
We further applaud the Government for not adoptin g any protectionist measures in response to the 
global financial crisis. 
63. In the two years following its last Trade Policy Review, Hong Kong, China 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, China is one  of the most market-oriented and open economies 
in the world and, as such, is strongly influen ced by the global and regional economic conditions.  
Fortunately, as the world economy, and especially that of China, began to improve, Hong Kong, 
China’s economy rebounded strongly beginning in th e second quarter of 2009 and has continued to 
perform well. 
64. China’s economic growth has had and will conti nue to have a strong impact on Hong Kong, 
China’s own economic growth and development.   Hong Kong, China’s economy has long been 
dominated by services industries;  and financial services, trading and logistics, tourism, and 
professional services currently account for roughly 55% of GDP and almost half of employment.  As 
the Secretariat points out, Hong Kong, China’s challe nge will be to maintain these services industries 
in the face of growing competition in China.  H ong Kong, China will need to focus on its comparative 
advantages and adapt accordingly to meet this cha llenge.  Similarly, growing economic ties between 
China and Chinese Taipei pose challenges for Hong Kong, China’s longtime role as an intermediary 
provider of financial services, trade, and logistics.   The Secretariat’s Report shows that Hong Kong, 
China has acted to meet the challenges posed by improved cro ss-strait relations by expanding Hong 
Kong, China International Airport’s cargo handling capacity and making available land nearby for the 
development of a logistics cluster. 
65. The Closer Economic Partnership Arrangement with China (CEPA), originally signed in 
2003, recognizes these trends and demonstrates Hong Kong, China’s effo rts to capitalize on its 
relationship with China.  As noted by the Secretaria t, the depth and coverage of liberalizing measures 
have been extended for both goods and services in  the years since Hong Kong, China’s last Trade 
Policy Trade 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. 
66. The United States has a strong trad e and investment relationship with Hong Kong, China.  It 
is currently our 24
th largest goods trading partner, with $24.6 billion in total two-way goods trade 
during 2009.  U.S. goods and services trade with H ong Kong, China totalled $42  billion in 2008, the 
latest year for which goods and services trade data is available.  The stock of U.S. FDI in Hong Kong, 
China was $50.5 billion in 2009, primarily concentrated in the finance/insurance, non bank holding companies, and wholesale trade sectors.  The stock of Hong Kong, China FDI in the United States 
was $3.8 billion in 2009, mostly in the manufacturing, and wholesale trade sectors. 
67. Despite Hong Kong, China’s overall transparency  and openness to trade, the United States is 
concerned with Hong Kong, China’s overly restric tive sanitary and phytosanitary measures as they 
apply to U.S. exports, particularly those of beef and beef products.  The World Organization for WT/TPR/M/241 
Page 14  
 
  Animal Health BSE guidelines provide for the im portation of meat and meat products, including 
bone-in products, offal, and variet y meats, regardless of cattle age, from countries or zones posing a 
controlled BSE risk if the appropriate tissues define d as specified risk materials are removed.  Even 
though the OIE classifies the United States as a cont rolled risk country for BSE, Hong Kong, China 
currently only accepts deboned beef from cattle less th an 30 months of age from the United States.  
We hope that this Trade Policy Review will enc ourage Hong Kong, China to focus on the importance 
of consistently implementing science-based san itary and phytosanitary measures as a critical 
component of its longstanding commitment to trade and openness. 
68. The United States also notes that Hong Kong, China has been a signatory to the WTO 
Agreement on Government Procurement since 1997 a nd that it had been a signatory under the GATT 
Code on Government Procurement.  Yet, we conti nue to be disappointed that Hong Kong, China has 
not submitted a market access offer in the current ne gotiations on the revision of the GPA.  We will 
be interested to hear from Hong Kong, China about its plans in this regard. 
69. We are further disappointed that a significant number of Hong Kong, China’s tariffs remain 
unbound.  According to the Secretariat, while all appl ied MFN tariffs are zero, only slightly more than 
one third of Hong Kong, China’s non-agricultural tari ffs are subject to WTO bindings.  Inasmuch as 
this imparts a certain degree of unpredictability  to Hong Kong, China’s tariff regime, we are 
interested to know the government’s plans to bind its tariffs. 
70. In closing, I would like to reiterate our  appreciation for Hong Kong, China’s active 
participation in the Doha Round negotiations.  I woul d also like to emphasize that we continue to 
value our close work with the Hong Kong, China Government and our WTO partners to strengthen 
and build on the WTO’s rules-based and cooperative f oundation.  But more work is needed to reach a 
balanced and 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, China 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, China and other Members to  ensure these gains are realized.  
AUSTRALIA 
71. Australia and Hong Kong, China enjoy a str ong relationship built on mutual cooperation, 
people to people links and strong commercial links.  There are more than 885,000 people of Hong 
Kong, China descent in Australia and Hong Kong, Ch ina is an important source of international 
students in Australia.  Many tertiary courses are also offered by Australian educational institutions 
operating in Hong Kong, China. 
72. Australia and Hong Kong, China enjoy a strong a nd expanding commercial relationship.  It is 
our 13
th largest market for goods, and our ninth largest market for services.  Hong Kong, China is also 
our fifth largest source of foreign investment, and is our fifth largest destination for direct investment. 
73. We welcome Hong Kong, China’s strong voice in support of open markets which was well 
evidenced through the global financial crisis.  Hong Kong, China is a strong supporter of the 
monitoring process on protectionism undertaken by the Trade Policy Review Body and Australia, like Hong Kong, China, makes a continued call to trading partners to refrain from protectionist measures. 
74. Underscoring Hong Kong, China’s strong intern ational trading profile, it has one of the 
world’s most liberal trading regime s, backed by sound economic polici es.  It is one of Australia’s 
leading business bases in East Asia.  The commi tment to the rule of law provides a secure 
environment for Australian citizens and business, with more than 60,000 Australians living and  WT/TPR/M/241 
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  working there.  The Australian Chamber of Comme rce in Hong Kong, China was established in 1987 
and is our largest overseas chamber. 
75. We are also watching with interest Hong Kong, China’s increasing economic integration with 
the Pearl River Delta region and beyond which is  creating further business opportunities.  The 
Australian Government and Australian banks are very  interested in Hong Kong, China’s role in the 
internationalization of the Renminbi and its use in cross-border trade settlements.  We think this will 
be a fruitful new area for cooperation be tween Australia and Hong Kong, China. 
76. As a strong services-based economy, Australia notes that Hong Kong, China has a relatively 
open services market, however we do believe that th ere is more that Hong Kong, China could do in 
this area.  The openness of Hong Kong, China’s servi ces market is not reflected as well as it could be 
in its Doha Round services offer, which covers onl y approximately 54% of sectors.  We would like to 
see a higher level of commitments particularly in the professional services sectors, such as the accounting, architecture and legal services.  We would also like to see stronger commitments on 
temporary skilled entry for contractual services s uppliers, independent prof essionals and business 
visitors. 
77. In the area of industrial products we note that all applied MFN tariffs are at zero.  Despite 
this, we note the low proportion of industrial tariff lines subject to WTO bindings, as highlighted in the Secretariat Report, particularly in sectors such as textiles and clothing, chemical and photographic supplies, and transport equipment.  Australia would encourage efforts from Hong Kong, China to 
significantly increase the coverage of its bindings to give greater certainty to exporting members. 
78. Wine exports are an area of growing interest for Australia in the Hong Kong, China’s market.  
We therefore welcome the decision by the Governme nt to eliminate its previous 40% excise tax on 
wine since its last TPR, as part of its strategy to become a wine trading and distribution centre for the 
Asian region.  This strategy presents opportunitie s for wine producers and for providers of wine-
related services, including from Australia, as evid enced by the Memorandum of Understanding 
between Australia and Hong Kong, China on coope ration in wine-related business signed in April 
2009. 
79. Australia has also been taking an interest in Hong Kong, China’s commitment to review the 
operation of its nutritional labeling scheme, which came into force on 1 July 2010, after one year.  
Hong Kong, China’s decision to exclude products with nutrition claims from its "small volumes" 
exemption has the potential to have a negative impact on Australian food exporters whose export 
volumes are small. 
80. Finally, Australia and Hong Kong, China have  a strong interest in promoting economic 
prosperity in the region and globally, and are str ong supporters of the multilateral trading system and 
APEC.  Australia shares Hong Kong, China’s commitmen t to global and regional trade liberalization, 
and shares the view that current economic difficu lties in many countries make international trade 
liberalisation even more important.  We welcom e Hong Kong, China’s commitment as a constructive 
middle ground Member to bringing the Doha Round of multilateral trade negotiations to a successful 
conclusion.  A successful outcome to the Doha Ro und – one that delivers improvements in market 
access across agriculture, industrial products and ser vices – would provide a major boost for the world 
economy, strengthen the multilateral trading syst em, and make an important contribution to 
improving global food security.  Australia looks fo rward to working closely with Hong Kong, China 
and other WTO Members, in the intensification wo rk we have now embarked upon so that we can 
finally conclude the Doha negotiations in 2011. WT/TPR/M/241 
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  KOREA, REPUBLIC OF 
81. As strong supporters of the multilateral tradi ng system, Korea and Hong Kong, China have 
long maintained an important and prosperous economic re lationship.  In 2009, Hong Kong, China was 
Korea’s fourth largest export market and sixth la rgest trading partner, while Korea was Hong Kong, 
China’s sixth largest trading partner, with the size of bilateral trade reachi ng US$21.2 billion.  We are 
also close partners in terms of investment.  Hong  Kong, China was Korea’s fifth top destination for 
foreign investment in 2009. 
82. Still, there is tremendous potential for bilate ral cooperation down the road thanks to the 
mutually complementary economic structures of our two economies and the acceleration of Hong 
Kong, China’s economic integration with Mainland China. 
83. Turning to the macroeconomic performance and environment, my delegation would first like 
to congratulate Hong Kong, China for its quick r ecovery from the economic downturn that came with 
the recent global financial crisis.  Hong Kong, Chin a’s GDP in the first half of 2010 grew by 7.2% 
from the previous year partly thanks to the reboun d of exports of goods and services which increased 
by 21.6% and 17.9% respectively in the first quarter of 2010. 
84. Hong Kong, China’s economic openness is undoubtedly  one of the principal driving forces in 
its impressive economic rebound and growth.  H ong Kong, China’s growing integration with 
Mainland China through the "Closer Economic Partne rship Arrangement" and its  participation in the 
"Plan for the Reform and Development of the Pear l River Delta" as well as its government’s prudent 
and timely macroeconomic policies and structural tran sformation have all contributed to this strong 
economic performance. 
85. As we all are aware, Hong Kong, China was once described by Milton Friedman, a renowned 
American economist and Nobel Prize laureate, as th e world’s greatest experiment in laissez-faire 
capitalism.  It has remained as the world’s fr eest economy, according to the Index of Economic 
Freedom since its inception in 1995. 
86. Despite being the most liberalized economy, Hong Kong, China has taken further steps in 
promoting trade-related reforms during the period und er review.  In particular, my delegation notes 
with satisfaction the progress made in the ar eas, among others, of competition policy and the 
protection of intellectual property, as indicated in the Secretariat Report. 
87. Before I conclude, let me remind this house of the urgent tasks we have to tackle next year.  
We are now at a critical juncture in the DDA ne gotiations and our leaders at the G-20 and APEC 
Summits last month sent us a clear and strong messag e to engage in across-th e-board negotiations and 
complete the end game.  My delegation hopes and tr usts that all the WTO Members will show utmost 
flexibilities so that we can tran slate this message into tangibl e progress and conclude the DDA 
negotiations in 2011.   
BRAZIL 
88. Between 2006 and 2009, period covered by this Review, Hong Kong, China continued to 
impress us as an example of success based on an op en and market-oriented economy.  During this 
period, Hong Kong, China also could demonstrate its capacity to quickly recover from the impacts of a major global crisis. 
89. As indicated in the Secretariat Report, Hong Kong, China is one of the most open economies 
in the world, with one of the most liberal and tr ansparent foreign investment regimes.  All applied 
MFN tariffs are zero, and all agricultural tariffs  are bound.  Moreover, Hong Kong, China with its  WT/TPR/M/241 
 Page 17 
 
 
  well-developed infrastructure is an example of effici ency in logistics and customs procedures.  As a 
consequence, Hong Kong, China is ranked highly by  indicators of competitiveness and ease of doing 
business, among others. 
90. Nevertheless, the Secretariat Report also indi cates that, with respect  to non-agricultural 
goods, a great part of the tariff lines remains unbound, especially in sectors such as textiles and 
clothing, chemical and photographic supplies, and tr ansport equipment.  Brazil believes that a higher 
level of bound tariffs would contribute to improve  predictability regarding the tariff regime of the 
territory.  Thus, Brazil welcomes the willingness of  Hong Kong, China’s authorities to increase the 
number of bound tariffs under the DDA, as pointed out by the Secretariat Report. 
91. Hong Kong, China’s economic openness does not imply, however, absence or negligence 
regarding the role of the Government in securing the functioning of the market.  That has been shown 
by the quick recovery of the territory from the ef fects of the global economic  crisis.  After being 
severely affected in the first quarter of 2009, with a GDP contraction of 7.7%, Hong Kong, China managed to resume growth by the end of 2009, than ks not only to the economic strength of China, its 
main partner, but also in response to the effec tive contra-cyclical measures its authorities adopted. 
92. Moreover, Hong Kong, China’s prudent regulatio n of its financial market contributed to 
protect the territory from the worst e ffects of the global financial crisis .  This is remarkable given that 
the territory is a services-oriented economy, greatly  relying on sectors such as financial, trading and 
logistical services.  It is also worth mentioning that Hong Kong, China refrained from adopting any protectionist measure, in the context of the global crisis. 
93. With respect to participation in the WTO,  Hong Kong, China and Brazil shares the same 
objective of supporting the multilateral trading syst em and favouring a successful conclusion of the 
Doha Round.  In line with its interests and trade policies, as a middle-ground Member, Hong Kong, China plays an important role in trying to promote convergence in the current negotiations.  It is also 
an active participant in a wide array of issues,  ranging from non-tariff barriers to trade facilitation. 
94. Furthermore, Brazil notes with apprecia tion Hong Kong, China’s commitment to 
transparency, which is indicated by its excellent reco rd of providing notifications to the WTO.  Brazil 
also supports Hong Kong, China’s legitimate obj ectives of promoting health, environment and 
consumer protection through new or  improved regulations.  It is im portant, however, to ensure that 
those legitimate objectives are pursued without creating unnecessary obstacles to trade.  In this 
context, Brazil notes that Hong Kong, China’s ne w regulation for nutritio n labelling and nutrition 
claims has prompted questions regarding its potentia l burdens.  In view of that, Brazil stresses the 
importance that concerns related to the implementati on of this measure be taken into account by local 
authorities. 
95. Turning to the bilateral trade relations, it is hard to exaggerate th e opportunities represented 
by the further development of ties between traders in  Hong Kong, China and Brazil.  One just need to 
mention that Hong Kong, China has played an incr easingly important role as an entrepôt between 
Brazil and China, which in turn has become the main destinati on to Brazilian exports in 2009. 
96. Between 2006 and 2008, the volume of trade between Hong Kong, China and Brazil grew 
steadily, from US$1.7 billion to US$2.6 billion.  In 2009, due to the global crisis, that growth was 
halted but there was no huge decline in the volume  of trade, which reached US$2.4 billion in that 
year.  In 2010, preliminary figures indicate that th e volume of trade between the two partners will be 
similar to that of 2009, but with a greater particip ation of Brazilian imports from Hong Kong, China.     WT/TPR/M/241 
Page 18  
 
  SWITZERLAND 
97. Despite the slump in world trade we all have experienced in the last couple of years, Hong 
Kong, China, as a free and open economy weathere d these tides remarkably well and continues to 
play an important role as a commercial hub in East Asia. I would like to congratulate the Government 
of Hong Kong, China for not falling to the lure of pr otectionist policies during and after the crisis and 
for remaining a strong defender of free trade. 
98. Thus, I am pleased to say that bilateral ec onomic relations between Switzerland and Hong 
Kong, China remain excellent: While the volume of bilateral merchandise trade declined moderately 
to CHF 6.6 billion during 2009, Hong Kong, China rema ined our third most important trade partner in 
Asia. This is an important volume also when co mpared to the bilateral trade between Hong Kong, 
China and countries such as the United States or Brazil.  For 2010, I am sure that we will reach again 
the record pre-crisis level of 2008. The fact that Hong Kong, China has fallen a bit behind with regard 
to Swiss direct investment flows is not due to re duced economic attractiveness  but rather a result of 
the economic rise of some of its Asian neighbours. 
99. As the Secretariat rightly points out, the rise of its neighbours may come as a challenge to 
Hong Kong, China as a hub both for goods trading and logistics as well as for services. At the same 
time, budgetary demands may grow also, as rising inequality among the population call for higher 
spending on social services. Nevertheless, I remain  confident that the Government of Hong Kong, 
China will find ways and means to address these challenges without jeopardising Hong Kong’s long 
term attractiveness for business and trade. 
100. Questions submitted by Switzerland to Hong Ko ng, China concern, among others, customs 
procedures, where we would like to get clarifications on a number of points, particularly with regard 
to charges levied during the import declaration pr ocess and which are earmarked for trade statistics 
and trade promotion. Furthermore, Switzerland w ould appreciate to know whether Hong Kong, China 
would be willing to bind all tariffs for non-agri cultural goods under the Doha Development Agenda. 
We also raise the question how the authorities of Hong Kong, China can ascert ain that a number of 
new measures introduced to support small and medium -sized enterprises do not amount to or are not 
misused as prohibited export subsidies. Lastly, we  note – as we already had done at the time of the 
last TPR – that while the level of real GDP per capita as well as the ranking in the UN Human 
Development Index would put Hong Kong, China am ong the most developed countries of the world, 
it continues to avail itself the status of a "dev eloping country" in the WTO. We wonder therefore 
whether Hong Kong, China would be ready to r econsider this status once the Doha Round 
negotiations are concluded. 
101. Before I conclude, I would like to highlight once again the constructive and dynamic role 
played by Hong Kong, China in international trade and in the WTO. We very much hope that this 
dynamism will also inspire Hong Kong,  China to submit next week an initial offer with regard to the 
revision of the GPA which is now in its very final phase. This being said, as you are doubtlessly 
aware, Switzerland negotiates, within the framewo rk of the European Free Trade Association, a 
comprehensive Free Trade Agreemen t with Hong Kong, China in order to further enhance our already 
close bilateral relations. We are confident that we w ill be able to conclude this Agreement in the near 
future. At the same time, a strong rules-based sy stem, as provided by the WTO, remains crucial for 
small but highly integrated and open trading ec onomies like Hong Kong, China – and Switzerland. 
We look forward to pursuing and fu rther enhancing our already close co-operation in this regard, and 
call on all Members for an ambitious and balanced  conclusion of the Doha Development Round of 
multilateral trade negotiations.  WT/TPR/M/241 
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  SINGAPORE 
102. Singapore takes particular interest in participa ting in today’s TPR, to share our views and to 
seek clarification on Hong Kong, China’s trade polici es.  As can be shown by the very strong turnout 
this morning, despite the weather, many WTO Member s similarly take a strong interest in this TPR.  
Singapore also shares a special affinity with Hong K ong, China.  We share many similarities, in the 
small sizes of our economies; in our historical beginnings in entrepôt trade, when merchant ships 
sailed the trade winds between the East and West; but most of all, in our common belief in free trade and open markets.  Indeed, according to the He ritage Foundation’s 2010 Inde x of Economic Freedom, 
Hong Kong, China has been ranked the world’s freest economy. 
103. With trade in goods and non-factor services constituting 380% of GDP in 2009, Hong Kong, 
China continues to be one of the most open economies in the world.  Hong Kong, China should be 
commended for continuing to maintain its openness in the face of immense pressures from the global 
financial crisis, and for resisting the adoption of protectionist measures during that time.  Hong Kong, China can be proud of its quick and strong recovery from  the crisis.  This, surely, is a reflection of its 
sound economic fundamentals, such as a strong and stable financial position and flexible labour 
market. 
104. Singapore is very pleased to have maintained  deep links with Hong Kong, China over the 
years.  Our trade ties are strong.  Hong Kong, China is currently Singapore sixth largest trading partner, while Singapore is Hong Kong, China’s fourth  largest trading partner after China, the U.S. 
and Japan.  In 2009, total trade between Singapor e and Hong Kong, China decreased by 10% due to 
the financial crisis but still amounted to a respectable S$49.2 billion (US$37.3 billion). 
105. Singapore is Hong Kong, China’s third largest inve stor from Asia.  Latest figures show that 
Singapore’s cumulative investments in Hong Kong, China stood at S$20.7 billion (US$15.7 billion), in various sectors such as property, financial services,  and logistics services.  Similarly, Hong Kong, 
China’s investments in Singapore are substantial,  with cumulative investments of S$7.3 billion 
(US$5.5 billion), making Hong Kong, China Singapore’s  fourth largest Asian investor.  Indeed, these 
trade and investment links between Singapore and Hong Kong, China are so extensive and 
intertwined that the decline or growth of one economy w ould inevitably be felt in the other.  In fact, as 
at September 2010, a total of 50 Hong Kong, China companies are listed on the Singapore Stock Exchange with a market capitalization of  S$138 billion (US$105 billion).     
106. Given its openness, there are little, if any w eaknesses that could be found in Hong Kong, 
China’s trade policy and investme nt regime.  We note that Hong Kong, China plans to introduce 
cross-sectoral competition laws and to establis h an independent Competition Commission. We 
welcome this and look forward to Hong Kong, China’s efforts to promote a greater level playing field 
for investments and businesses through its competiti on policy framework.  We also note Hong Kong, 
China’s identification of its six priority industries with growth potential, and look forward, with much 
interest, to the development of these areas. 
107. Hong Kong, China, like Singapore, is tariff-free.  We believe that this free trade policy has 
contributed significantly to Hong Kong, China’s economic development; and Singapore fully concurs 
and supports the rationale of such a policy.  Wh ile we note that the scope of Hong Kong, China’s 
tariff bindings remains low, at 43.9% of all tari ff lines, we look forward to Hong Kong’s willingness 
to negotiate the binding of more tariff lines in the context of the DDA.   
108. In addition, we are happy to note the improveme nts made to the Closer Economic Partnership 
Agreement (CEPA) between China and Hong Kong, China over the years, which has expanded to 
cover many areas of liberalisation and cooperation. Ho wever, as mentioned in the Secretariat Report, 
government procurement and competition are not c overed in the CEPA. The Secretariat Report has WT/TPR/M/241 
Page 20  
 
  also observed that the majority of government c ontracts in Hong Kong, China were awarded through 
restricted and selective tender process as opposed to open and competitive tenders.  Singapore has 
submitted written questions on these matters and looks forward to  studying Hong Kong, China’s 
responses. 
109. Hong Kong, China has stated that its top priority  is to bring the multilateral trade negotiations 
to a successful and early conclusion.  As a firm s upporter of free and open trade, Hong Kong, China’s 
aims are fully shared and strongly supported by Si ngapore.  Indeed, at the WTO, we share a common 
interest and a close working relationship in seeking an ambitious and balanced outcome in all areas of 
the DDA such as NAMA, services, rules,  trade facilitation and others.  We express our appreciation to 
the positive contributions that Permanent Representati ve Martin Glass and his entire team have made 
to the WTO and the DDA negotiations, including his efficient work as Chairman of the TRIPS 
Council.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
110. Since the previous Review in 2006, the perfo rmance of Hong Kong, China’s economy, like so 
many of ours, has been on a roller-coaster ride in the aftermath of the severe global economic 
downturn.  We are pleased to see that the prompt  measures taken by the Government of Hong Kong, 
China, have effectively stabilized its economy, and we now hope it is on its way to renewed growth as 
the global economy shows signs of recovery.  We are especially heartened by the fact that no 
protectionist measures have been adopted during these difficult times. 
111. Hong Kong, China has long been praised as the "P earl of the Orient".  Within the WTO, Hong 
Kong, China also shines out, lighting our way to a more  liberal and transparent trading world.  In fact, 
Hong Kong, China consistently ranks first on the gl obal index of economic free dom.  And, of course, 
it is recognized as being a particularly strong supporter of free trade and an active advocate of the integrity of the multilateral trading system. 
112. Having said that, there may be some areas wher e further improvements in terms of openness 
and transparency could be made.  For example, we  are looking forward to the passage of the recently-
introduced Competition Bill.  We are also expecti ng that about two-thirds of Hong Kong, China’s 
non-agricultural tariff lines will be subject to th e WTO binding at the end of this Round of 
negotiations.  And, there appears to be room for further liberalization of its government procurement 
regime. 
113. Despite the global economic turmoil of recent years, our bilateral trade and investment 
relations with Hong Kong, China, have remained close.   It is our fourth largest trading partner, next 
only to Mainland China, Japan and the United States.  It ranks seventh on our list of sources of inward 
foreign direct investment.  And, looking from the other direction, we are also Hong Kong, China’s fourth largest trading partner, and its sixth largest  export destination.  With the closer economic ties 
and improved transport links across the Taiwan Strait established in recent years, we attach the importance of the role Hong Kong, China is  continuing to play in this regard. 
114. We commend Hong Kong, China on its strong  commitment to and participation in the 
multilateral trading system.  We share the same view that further trade liberalization can only help to 
forestall regression into protectionism and to pr ovide the engine for sustained economic growth 
worldwide.  In fact, in the WTO negotiations, we fi nd ourselves very often on the same side as Hong 
Kong, China, on numerous fronts:  in NAMA, we are both Friends of Sectorals;  in Services, we are 
both Really Good Friends;  and, in rules, we ar e both AD Friends.  We certainly look forward to 
continuing this close cooperation with the H ong Kong, China delegation here in Geneva, under 
Martin's leadership, in joint pursuit of a successful early conclusion to the Round.  WT/TPR/M/241 
 Page 21 
 
 
  115. This TPR has provided us with a valuable oppor tunity to get a better understanding of Hong 
Kong, China’s trade policies and practices, and its  regulatory measures.  In the written questions 
submitted by my delegation in adva nce, we have already identified certain policy areas in which we 
have a particular interest.  These areas include:  the CEPA arrangement with Mainland China, where 
we have asked some questions about practicalitie s;  the measures taken by Hong Kong, China to 
support SMEs;  etc.  We are very grateful for the written responses received earlier today, which we 
shall study further. 
CHINA 
116. As an old Chinese saying goes, "A good snow is a good omen for a good harvest next year." I 
hope this would apply both to Hong Kong, China's trade expansion and to the harvest of the Doha 
Round next year!   
117. Hong Kong, China is one of the most market-oriented and open economies in the world, 
driven mainly by its services sectors. Hong Ko ng, China’s economy rebounded quickly from the 
financial crisis in the second quarter of 2009. It c ontinued to improve in the second half of the year 
and has been in good shape since the beginning of 2010. China notes with pleasure that Hong Kong, 
China’s sound economic fundamentals,  such as its strong external fi nancial position, stable banking 
system, the flexibility of its labour market, and h ealthy public finances, are important contributing 
factors. It is also commendable that in respon se to the recent economic challenges, Hong Kong, China 
has taken initiatives to foster six new economic ar eas, namely testing and certifications services; 
medical services; innovation and technology; cult ural and creative industries; the environment 
industry; and education services, which are of ke y importance to its long term economic growth. 
118. China appreciates Hong Kong, China’s staunch support of the multilateral trading system 
with its strong commitment to the Doha Developm ent Agenda.  Hong Kong, China has not resorted to 
any trade protectionist measures during the financial cr isis, and instead has taken the lead to call for a 
"standstill" of such measures at the WTO. 
119. The period under review has witnessed a s ound development of trade and economic ties 
between the Mainland and Hong Kong, China, desp ite the impact of the global financial and 
economic crisis. What strengthens further our strong and mutually beneficial relations within the 
multilateral trading system is the Closer Economic  Partnership Arrangement  (CEPA). CEPA and its 
supplementary agreements form a comprehensive arrangement covering areas of trade in goods, trade 
in services, investment, and other cooperation, wh ich serves as a supplementary engine on the road 
towards further trade and investment liberalizati on on the basis of the fundamental role of the 
multilateral trading system. The implementation of CEPA has advanced further our economic 
exchanges and cooperation. It not only provides more opportunities to Hong Kong, China but also 
brings new vitalities to China’s economic development. 
120. Our statistics indicate a bilateral trade volume of US$180.3 billion in the first 10 months of 
2010, representing a 31.9% growth over the same period in 2009.  About 9,000 Hong Kong, China’s invested projects were newly added in China in the first nine months of 2010, up by 21.9%, and Hong 
Kong, China’s total investment in these nine months is US$41.43 billion, up 34 .8% year on year. This 
sound trade and investment performance proved the complementary nature of our two economies and 
the benefits we can draw through further liberalization efforts.  
TURKEY 
121. While our trade with Hong Kong, China is ar ound US$350 million in 2009, we believe that it 
has an excellent base to provide us one of the majo r gateways to the emerging markets in the Far East. 
We have quite a number of reasons to believe so.  Hong Kong, China with a dynamic economy has an WT/TPR/M/241 
Page 22  
 
  outstanding trade and investment regime with hi gh level of economic freed om, zero tariffs, minimal 
and simple licensing requirements, and level playing field for foreign investors, to say a few.   
122. It is also noteworthy that Hong Kong, China achieved to maintain a business environment 
which provides distinctive and advantageous features for the local and foreign companies, particularly 
in light of the Closer Economic Partnership Arra ngement with China.  The conclusion of the DDA 
will further strengthen Hong Kong, China’s position as a trade hub. 
123. Indeed, we very much welcome the positive and very active role Hong Kong, China plays in 
the negotiations under the leadership of Mr. Glass. We share their commitment to the conclusion of 
the DDA and we will continue to work with them, ai ming to deliver additional benefits to the world 
trade.  
124. While Hong Kong, China’s trade and investment re gime is one of the most developed in the 
world, there are still certain elements which deserve attention. In this respect, let me now focus on a 
very few issues.  It is worrisome that Hong Kong,  China maintains unbound tariffs in some sectors. 
We hope that this feature of the trade structure which causes a certain degree of unpredictability may 
be addressed in the context of the DDA negotiations. 
125. We are also surprised to read that Hong Ko ng, China relies on selective tendering public 
procurement procedures despite its relatively low sh are in the economy. In our opinion, this represents 
a contrast to Hong Kong, China’s highly transparent trade regime.  We hope to hear more on reasons 
for this issue through the course of this review.  
126. We have noted that Hong Kong, China has intr oduced a draft new law of competition after a 
long period of consultation with stakeholders. We  welcome this initiative. It is important that 
stakeholders in Hong Kong, China felt the need of a regulatory instrument for a fair and efficient 
business environment.   
127. Furthermore, it seems that CEPA’s VII.  S upplement will play a significant role in the 
services market in the future, and we hope that H ong Kong, China will also provide the opportunity to 
learn more about this latest Supplement through its practice of notifying Supplements to the relevant 
WTO Committee.  
CANADA 
128. Canada is pleased to have the opportunity to co mment on the trade regime of one of our key 
commercial partners in Asia.  Canadian companies recognise the strong role of Hong Kong, China, in 
global value chains.  In addition to being a valuab le market in itself, Hong Kong, China is an 
important regional hub and platform for China.  Its rule of law, stability, transparency and openness 
are highly valued, as was its steadfast advocacy fo r international trade and the respect of WTO 
commitments throughout the recent financial crisis.  Indeed, in March Canada’s Fraser Institute found 
Hong Kong, China, to be the freest  economy in the world for 2008. 
129. Canada’s merchandise exports to  Hong Kong, China, amounted to CAD$1.5 billion in 2009.  
Key categories include electrical machinery and electronic products, meat, nickel, fish and seafood, 
and oil seeds. Canadian agri-food exports to Hong  Kong, China, have recently increased, and we 
would again like to express our thanks to the aut horities of Hong Kong, Chin a, for providing Canada 
full beef access in accordance w ith guidelines established by the World Organization for Animal 
Health, and more generally for its science-based a pproach in dealing with sanitary and phytosanitary 
issues.  In the services sector, many Canadian firms,  notably in banking and insurance, continue to use 
Hong Kong, China, as a regional platform and are thriving.    WT/TPR/M/241 
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  130. Overall, this role as a platform  is enhanced by the Closer Economic Partners hip Agreement, 
which gives all companies based in Hong Kong, Chin a, regardless of nationality, preferential access 
to China in various market categories.  We look forward to additional iterations of this important 
agreement. 
131. Canadian companies have investments of roughl y CAD$5.8 billion, in Hong Kong, China, the 
highest level in Asia.  This figure, as well as invest ment into Canada, will no  doubt be enhanced via 
the Canada-Hong Kong, China Investment Promot ion MOU signed in January, which encourages 
bilateral cooperation to enhance two-way flows.  
132. Following our comments at the 2006 TPR, we would like to commend the Competition Policy 
Advisory Group (COMPAG) of Hong Kong, China,  for their continuing efforts to develop a 
comprehensive competition policy.  We welcome COMPAG’s goal of eliminating anti-competitive 
practices across all sectors, and follow with interest the progress of the Competition Bill. 
133. Canada will continue to work together with H ong Kong, China in fora such as APEC and the 
WTO to advance our common interest in ensuri ng an effective rules-based trading system. 
COSTA RICA 
134. The delegation of Costa Rica is participating with  great interest in this Trade Policy Review.  
It wishes to take this opportunity to highlight  a number of points relating to HKC's successful 
economic performance, so closely linked to foreign tr ade, and several aspects of our relationship both 
in the WTO and at bilateral level. 
135. The Secretariat Report emphasizes the HKC economy's swift rebound from the financial 
crisis, its sound economic fundamentals and st rong resilience, which enable it to respond 
appropriately to external shocks.  In particular , the Report notes the ongoing efforts invested by HKC 
in improving education and developing its human  capital, which has enhanced the quality of its 
workforce and turned it into a high value added, knowledge based economy. 
136. Whilst the relatively high percentage of unbound  tariff lines in certain non-agricultural sectors 
gives cause for concern, we welcome HKC's readiness to work towards increased  binding coverage in 
the context of the Doha Round negotiations. 
137. I should now like to turn to trade between Costa Rica and Hong Kong, China, which has 
vastly expanded over the last 15 years.  Bilateral trade has increased almost 550% over this period.  
Costa Rica's exports to HKC rose from slightly more than US$20 million in 1995 to over US$330 million in 2009, and largely consist of IT products.  In 2009, HKC was the sixth largest 
destination market of Costa Rican exports worldwide. 
138. Imports from HKC to the Costa Rican market  have also undergone a significant increase, 
expanding by more than 50% over the same period, and are made up of a wide variety of products 
such as computer parts, toys, electrical and electroni c machinery, engines, umbrellas, textile products 
and footwear. 
139. Costa Rica welcomes HKC's strong support for a nd active participation in the multilateral 
trading system and shares its aim of promoting and strengthening an open, rules based system.  
HKC and Costa Rica both attach great importance to  trade liberalization and the goal of reaching a 
prompt and successful conclusion to the Doha Round negotiations.  Of particular note are our shared 
objectives and the major work we are jointly engage d in as members of the Friends of Anti Dumping 
Negotiations Group, the Middle Ground Group in the NAMA negotiations, and the Colorado Group 
in the negotiations on trade facilitation. WT/TPR/M/241 
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  140. In the context of this Trade Policy Review, Co sta Rica asked HKC to provide further details 
concerning the overall stimulus measures adopted in response to the crisis and had other questions 
regarding HKC's FDI regime, government procuremen t, standards and technical regulations, sanitary 
and phytosanitary measures, intellectual pr operty and other economic policy measures. 
JAPAN 
141. Hong Kong, China is one of the economies which have shown remarkable early recovery 
from the global financial crisis. The Secretariat Re port relates this recovery to its close economic 
relationship with China. Hong Kong, China’s econom y is very much service oriented. The services 
industries account for more than 90% of the economy, led by financial services (16.1% of the GDP in 2008), trading and logistics (26% of the GDP in 2008)  and tourism. We all know that each of these 
industries has established a leading position in the re gional and international markets. In addition, the 
Secretariat Report shows that these services subsect ors are closely linked with the Chinese economy 
as well. In other words, Hong Kong, China is a gateway to the business with China, as well as a 
regional and international market center. 
142. We observe that the Government of Hong Kong, China has been strengthening its role as a 
gateway to China, taking advantage of prefer ential access under the Closer Economic Partnership 
Arrangement with China (CEPA). This policy has been made it possible for Hong Kong, China to 
benefit from the strong growth of China, but in evitably increased its reliance on the Chinese economy. 
143. However, as the Secretariat Report points out, this increasing dependence on Chinese market 
has generated new challenges mainly in two aspects.  Firstly, China itself is developing its service 
sectors and becoming a competitor. Secondly, the Economic Cooperation Framework Agreement 
(ECFA) between Chinese Taipei and China may have some serious implications on Hong Kong, 
China’s role as a gateway to China. We heard this morning from Mr. Glass that the agreement 
between China and Chinese Taipei is a welcomed  step because it would contribute to the regional 
economic development. However, there may be so me elements of competition between Hong Kong, 
China and Chinese Taipei.  Japan will continue to observe closely how Hong Kong, China will 
address these challenges and strategically position itsel f in the regional and international economy.  
144. With regard to trade and investment policies, there are relatively few requests from Japanese 
companies operating in Hong Kong, China, thanks to  the elimination of all the MFN applied tariffs. 
Furthermore, most of those companies appreciate the efficient and speedy administrative and custom 
procedures. Japan raised this issue earlier with H ong Kong, and so we particularly appreciate this 
development.  Among recent policy changes intr oduced by Hong Kong, China Japan especially 
welcomes the adoption of the company law last July , which addresses the issues of trade names which 
partially incorporate internationally famous tradem arks or trade names of the Japanese companies.  
145. Japan also appreciates the strengthened enforcem ent in IPR protection. However, counterfeit 
or pirated goods have been still ob served to be in distribution. Japan therefore hopes that Hong Kong, 
China will continue to strengthen the protection of IPR. 
146. It is also our expectation that Hong Kong, Ch ina will maintain and, in some cases, further 
improve its free economy and open trade and investment regime.  
147. Finally, Japan would like to re iterate its hope that Hong Kong, China will further promote and 
liberalize trade and investment, and the economic partnership between Hong Kong, China and other 
Members including Japan will expand on that basis.  Hong Kong, China is also our good friend in 
many of the negotiation fora in the DDA negotiations.   WT/TPR/M/241 
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  EUROPEAN UNION 
148. Hong Kong, China is an example of an economy that has developed its great potential thanks 
to its strong support for the multilateral trading syst em and its firm commitment to maintain an open 
trade regime. It is recognised as one of  the most open economies in the world. 
149. It was certainly the openness of the economy, which helped Hong Kong, China to regain 
growth so quickly after the global economic downturn. Benefitting from the strong growth 
momentum in mainland China and other Asian economies, the Hong Kong, China economy exhibited a broad-based recovery this year: after a 2.7% contraction in 2009, the real GDP of Hong Kong, 
China increased by 7.2% in the first half of 2010.   Economic recovery has been solid, thanks to a 
strong rebound in exports, continued inflows of in ternational investment, as well as rising consumer 
and business confidence. The domestic sector has rema ined resilient, as retail sales and investment 
spending have continued to grow at double-digit pace. 
150. The EU and Hong Kong, China ha ve developed and maintain strong trade relations - Hong 
Kong, China remains an important partner for trad e in goods and services, as well as investment, for 
the EU.  Hong Kong, China also plays a key role as an  intermediate platform for trade and investment 
flows between the EU and China.  We have seen significant improvement of trade in goods between 
the EU and Hong Kong, China in 2010 as the reco very has developed (29% increase to €17.9 billion 
in the first half of 2010).    
151. While it is fair to highlight Hong Kong, China' s achievements, it is also necessary today to 
point to those areas where the EU has questi ons and concerns.  A new nutritional labelling 
requirement is one of these areas – this new scheme came into force on 1 July 2010. The Secretariat's 
Report comments that the scheme has been burdens ome for some businesses and we fully agree with 
that. European industry has been complaining about the additional costs involved in re-labelling of 
food products for the Hong Kong, China's market . The Hong Kong nutritional labelling requirement is 
unique and different from the normal labelling practices  of major suppliers. The EU believes that the 
impact of the regulation will likely be a significant reduction in the variety of goods available on the 
Hong Kong, China's market, especially new- to-market products, hence posing a potential de facto  
barrier to the free trade that Hong Kong, Ch ina traditionally adheres to. Hong Kong, China's 
authorities have committed to review the impa ct of the nutritional labelling scheme on 'new-to-
market' products in July 2011, i.e. one year after its entry into force. In this context, we would like to 
highlight the importance of such review, and recommend a thorough analysis of the results.  
152. Competition policy is an area which the EU al so addressed during Hong Kong, China's last 
TPR in 2006 and I would like to comment on this again today. After years of consideration and 
consultations, Hong Kong, China submitted a cross- sectoral competition bill to the Legislative 
Council in July 2010.  We understand that the views of Council's members are divided; and that some 
members argue in favour of exempting from the c overage of the bill several economic operators 
(beyond the government and statutory bodies already exempted in the current draft). The EU would 
like to express the view that any further exemptions , as well as any relaxation of sanctions and fines, 
would seriously undermine the benefits from th e Bill and its purpose of reinforcing more open 
competition in business affairs. We therefore encour age Hong Kong, China to continue its efforts to 
enact appropriate legislation which would establis h effective rules applicable to all economic 
operators and would reflect the global trend towa rds the introduction and enforcement of generally 
applicable competition laws. 
153. 
The EU believes that the link between trade po licies and sustainable development is very 
important in order to achieve and maintain grow th. Striking the right balance between economic 
growth and social development, as well as environmenta l protection, is indeed a great challenge for all 
of us. Unfortunately, the two reports do not refl ect how Hong Kong, China is currently addressing WT/TPR/M/241 
Page 26  
 
  these important links in its policies, and therefor e, we would like to invite Hong Kong, China to 
elaborate further on this issue.  
154. At the same time, we note the developmen t of six new, innovation and knowledge-based 
industries due to the comparative advantages of Hong Kong, China. This initiative is an example of 
long-term development planning and at the same time shows Hong Kong, China's ability to react 
quickly to the changes happening in the economy – as the identification of these new industries as part 
of the economic foundation was initialled as a response to  the impact of the global financial crisis. We 
hope to hear about the implementation and the firs t results during Hong Kong, China's next TPR.   
155. To conclude, I would like to stress the important  role that Hong Kong, China plays under the 
multilateral framework. Together, we share a keen interest in upholding and strengthening the WTO 
system, including of course via the successful conclusion of the DDA negotiations. A good agreement 
can only be reached by aiming at  a balanced outcome, with ambitious results across the board.  
CHILE 
156. In 2006, I had the honour of serving as the discussant for the previous Trade Policy Review of 
Hong Kong, China.  At the time I emphasized, amo ng other things, that HKC should be regarded as 
an example of free trade.  Today, four years later,  we are pleased to note that it remains one of the 
world's most open economies and has not resorted to  protectionist measures to overcome the crisis. 
157. Precisely because of the openness of its economy, Hong Kong, China, like Chile, depends in 
large measure on the international climate.  As emphasized in the Secretariat Report, HKC's economic 
activity and GDP were obviously hard hit by the plunge in world trade resulting from the crisis. 
158. Although the figures point to swift recovery a nd the health of the economic and financial 
system remains sound, HKC's economic downturn has also  impacted on bilateral trade with Chile.  In 
the first half of 2010, trade with Chile fell by almost 29%. 
159. As regards the multilateral system and by reason of our economies' distinctive features, 
developments within the international system are of relevance to both Chile and Hong Kong, China, 
particularly in the WTO and APEC.  We therefore highly value a multilateral trading system based on 
clear rules that provide the certainty and st ability necessary to further economic development. 
160. As to the weaknesses of HKC's trade policy, in the course of the last Review we mentioned 
competition policy as an area in which improvement was not only feasible but also necessary.  We understand that some progress has been made a nd that a Competition Bill has been prepared.  
This instrument still needs to be put into effect, however, in order to ensure a free and competitive 
market.  HKC should also increase its level of tariff bindings. 
161. In the Doha Round, we not only share common view s on systemic issues but also similar - if 
not often identical - negotiating positions and consistently pursue the objective of cooperating to 
ensure a successful outcome to the Round. 
COLOMBIA 
162. As a Member of the Organization charged with promoting global trade in goods and services, 
Colombia finds it highly gratifying to participate in the Trade Policy Review of a Member which has 
ranked as the world's freest economy for 16 cons ecutive years, recording unquestionably positive 
economic performance.  It is gratifying because Hong  Kong, China provides a telling example that the 
work and goals pursued in the WTO yield visible a nd tangible evidence of the benefits delivered by 
proper use of the mechanisms deriving from the trad e negotiations.  And it is all the more gratifying  WT/TPR/M/241 
 Page 27 
 
 
  because in these times of global crisis, uncertainty and economic turmoil, HKC confirms us in our 
view that we are not mistaken in investing ev ery effort in and banking on a prompt and successful 
conclusion to the Doha Round. 
163. HKC's management performance is self-evident - suffice it to review the economic indicators 
of the World Economic Forum and other organizations  involved in such assessments.  If we look at 
the indices for 2009 and 2010, HKC ranks 11th in the Global Competitiveness Index and 2nd in the 
Trade Facilitation and Ease of Doing Business Indices.  It comes 8th in the Global Information 
Technology Report, ranking 29th in tourism competitiveness, and has moved up to third place in the 
Financial Development Report 2010.  HKC ranks 13th in Transparency International's Corruption 
Perceptions Index and, last but not least, 21st in the Human Development Index's very high 
development countries group. 
164. According to a report published by the Wall St reet Journal and the United States Heritage 
Foundation, HKC has maintained its status as Asia 's second largest destination for FDI, with a 
competitive tax regime, respect for property rights, and a flexible labour market.  The report also 
emphasizes that HKC is one of the world's lead ing financial and business centres, operating in a 
transparent regulatory and legal environment. 
165. As regards bilateral relations, a lthough there is still considerable  room for the development of 
trade between Colombia and Hong Ko ng, China, the trend has been m oving upwards in recent years.  
Colombia's exports to HKC include products of  the iron and steel industry, mining products, 
emeralds, some agricultural products, light indust ry products, textiles and machinery.  Colombian 
imports from HKC are also trending upwards and cons ist of machinery and equipment, light industry 
products, textiles, plastic products, products of the iron and steel industry, motorcycles, automobiles 
and other products such as toys, chocolates and sul phates.  There is considerable potential for the 
expansion of trade between HKC and Colombia , and this is in Colombia's interest. 
ARGENTINA 
166. The pivotal role of financial services in the economic structure of Hong Kong, China shows 
the high level of sophistication of its services sector , which has established HKC as one of the world's 
leading financial centres. 
167. Trade between Argentina and HKC is relatively modest, both in terms of the limited number 
of products and in terms of volume compared with Argentina's trade with other Members.  However, 
this should be regarded as an opportunity rather than a shortcoming.  We particularly value the 
importance that HKC attaches to bilateral and region al trade agreements as driving forces for greater 
trade liberalization, as well as its strong commitment to the trade negotiations under way in the WTO. 
PAKISTAN 
168. Pakistan wishes to echo the compliment by the Secretariat at the very outset of its Report 
wherein it states that Hong Kong, China remains one  of the most market-oriented and open economies 
in the world and that it also has one of the world’ s most liberal and transparent foreign investment 
regimes.  It is also heartening to note that H ong Kong, China is ranked high in terms of economic 
freedom, competitiveness, ease of doing business, of IP, among others. 
169. It is also of note that Hong Kong, China plays a leading role in international trade as in the 
area of goods, it is the 6th largest exporter and 5th largest importer while in services, it is the 5th largest 
exporter and 10th largest exporter.  It also plays an impor tant entrepôt a role for free trade between 
China and the rest of the world. WT/TPR/M/241 
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  170. Hong Kong, China has a modern, highly compe titive, dynamic and growing economy having 
sound economic fundamentals.  It has weathered the recession storm quite capably.  Its open trade regime is characterized by a low and simple tax regime  and all of its applies tariffs are at zero.  Hong 
Kong, China is also committed to free and stable MTS.  Not only that Hong Kong, China did not 
adopt any protectionist measures in response to the crisis, we are a witness that Mr. Martin Glass rose 
to the occasion and was at the forefront of calls for a standstill arrangement.  No wonder Hong Kong, 
China does not use trade remedy laws as its weapons of protectionism. 
171. Hong Kong, China and Pakistan have well estab lished trade relations.  Hong Kong, China 
mainly imports from Pakistan primary commodities like leather, yarn, fish and fish preparations while 
Pakistan imports an assortment of goods including  machinery and parts, metals, iron and steel and 
fabric. 
NEW ZEALAND 
172. Hong Kong, China is New Zealand’s ninth largest export market and an important source of 
foreign investment.  We take a close interest in  developments in Hong Kong, China’s trade policy, 
and we work closely with Hong Kong, China in both the WTO and in the APEC context.   
173. As the Secretariat’s Report notes, Hong Kong, Ch ina remains one of the most market-oriented 
and open economies in the world.  It has one of the world's most liberal and transparent foreign 
investment regimes.  Hong Kong, China is to be congratulated on maintaining its full commitment to 
these policy settings, even in the midst of the gl obal financial crisis.  New Zealand notes and 
welcomes Hong Kong, China’s opposition to protecti onism. As the global econom y slowly recovers it 
will be important for all Members to maintain this  commitment in both principle and in practice.   
174. New Zealand shares Hong Kong, China’s view th at the multilateral system is the most 
efficient and effective means to achieve increased trade and economic integration.  However, like 
Hong Kong, China, we recognise that regional a nd bilateral agreements can play a useful 
complementary role.  The New Zealand-Hong Kong,  China Closer Economic Partnership Agreement 
(CEP) is expected to come into effect on 1 Ja nuary 2011.  The CEP is a comprehensive and high 
quality agreement, which signals both economies’ co mmitment to open trade in goods and services.  
An Investment Protocol to the CEP is currently un der negotiation and both parties have agreed that 
negotiations will be completed within two years of the CEP’s entry into force. 
175. Hong Kong, China has responded proactively to  the global recession through its policies 
aimed at stabilising the financial system.  New Zealand has supported global efforts at increasing transparency in financial institutions and welc omed Hong Kong, China’s legislation, passed on 6 
January 2010, bringing it in to line with inte rnational standards on Exchange of Information.  New 
Zealand and Hong Kong, China have completed ne gotiations on a Double Taxation Agreement, which 
we expect to sign on 1 December in Auckland. 
176. New Zealand and Hong Kong, China have complement ary objectives in the global wine trade.  
As a wine exporter, New Zealand has supporte d Hong Kong, China’s development as a regional 
trading centre for wine, through the elimination of  its excise tax on beverages of less than 30% 
alcohol content. 
177. New Zealand is a strong supporter of transparency  mechanisms in the Organisation, including 
trade policy reviews and notification processes.  These provide an important opportunity for Members to review the policies and practices of other WTO Members.  In this context, we commend Hong 
Kong, China for its exemplary record in meeting its  notifications obligations. In New Zealand’s view, 
Hong Kong, China is a role model for the way in  which policies based on a commitment to free and 
open trade can generate positive econom ic outcomes and increased prosperity.  WT/TPR/M/241 
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  THAILAND 
178. Thailand and Hong Kong, China have enjoye d a long well established trade and economic 
relationship covering various aspects of commerce a nd investment. Our two ways trade, ranging from 
agricultural and non-agricultural products such as ri ce, electrical machinery, appliances, and parts, 
computer, and gems and jewellery, is thriving. Cu rrently, Hong Kong, China ranks seventh as our top 
trading partners and fourth as our export market.  We  are confident that our trade would continue to 
flourish and that our cooperation, as middle grounders, on NAMA is useful as we strive to conclude the Round by 2011.   
179. When reading the TPR Reports of Hong Kong, Ch ina, it is remarkable to notice that these 
reports are filled page after page of commendable records which indeed serve as an exemplar of the 
benefits from an open trade regime. For instance,  despite suffering a sharp contraction due to the 
global economic crisis, Hong Kong, China has, nevert heless, maintained the same level of economic 
openness and refrained from introducing any trade pr otectionist measure. This has consequently 
helped Hong Kong, China achieve a quick economi c recovery and reinstate its strong pre-crisis 
growth.  
180. We are also pleased to note the achievement  of Hong Kong, China in maintaining and 
improving their competitiveness and position as one of the world largest traders in services, particularly financial services where it is unques tionably deemed to be th e leading regional and 
international financial centre.  
181. In terms of trade policy framework and devel opment, Thailand strongly believe that apart 
from Hong Kong, China’s preservation of open economy and non-intervention policies, new 
incentives recently introduced to promote new innovation  and knowledge-based industries would 
certainly help broaden their economic structure and complement their traditional industries.   
182. More importantly, it is well accepted that Hong Kong, China is an important player in the 
multilateral trading system. Their active participations in all areas of the DDA negotiations are often characterized by their constant search for compro mises among members. We are confident that Hong 
Kong, China will continue to play this constructiv e role in the run up to the conclusion of the DDA 
negotiations.  
183. Furthermore, we also recognize that Hong Kong,  China is participating in various regional 
and bilateral trade arrangements. One notable arra ngement that deserves admiration is the Closer 
Economic Partnership Arrangement  (CEPA) between China and Hong Kong, China. This Framework 
Agreement has yielded benefits not only to the parties involved but also to the broader WTO 
membership in terms of improved transparency  and intellectual property rights protection.  
184. Given, as reported by the WTO Secretariat, the local population of Hong Kong, China still 
has a strong attachment to rice as their staple diet and Thailand is fortunate to be the main source of 
supplier for such commodity to Hong Kong, China, accounting for about 86% of total rice imports by 
value in 2008, we have submitted some specific questions for clarification on the Rice Control 
Scheme and Reserved Commodities Ordinance. 
MACAO, CHINA 
185. It is our pleasure to participate in the si xth Trade Policy Review of Hong Kong, China - a 
valuable partner to Macao, China on all fronts.  Owing to historical and geographical reasons, Macao 
and Hong Kong, both as Special Administrative Regions  of China, have enjoyed a close interlocking 
relationship for many years.  From a trade and ec onomic perspective, the foreign direct investment 
from Hong Kong, China has been playing an important role in our economy, for example, in 2009, WT/TPR/M/241 
Page 30  
 
  their stock of investment amounted to US$4 billion (MOP32.3 billion)  representing 31.78% of the 
total. Also,  Hong Kong, China was our third largest  trading partner, with merchandise trade between 
the two regions accounting to US$881 million (MOP7, 051 million).  Besides, Hong Kong, China was 
the second largest source of visitors to Macao, China last year.    
186. Hong Kong, China has been renowned for its open , transparent trade and investment regimes. 
Based on the principle of "market leads, government facilitates", and building on its existing strengths 
in financial and business services, transportation an d logistics, Hong Kong, China has demonstrated 
satisfactory performance for the period under review – more market liberalization; better structural 
reforms and deeper regional integration.  Indeed , the HKSAR Government is committed to creating a 
business friendly environment for all entrepreneurs. In this regard, we are pleased to note that the 
HKSAR Government has revised a nd improved laws and regulations to further promote a competitive 
market and enhance a level playing field for both domestic and foreign investors.   
187. We would like to commend Hong Kong, China’s pr udent regulation of the financial market 
and its flexible policies, which have shielded the economy from the adverse effects of the recent 
global financial crisis.  Although Hong Kong, China experienced a sharp contraction in early 2009, 
the HKSAR Government has quickly responded by implementing a series of stimulus and relief 
package, without resorting to any protectionist  measures. Based on sound economic and financial 
fundamentals, its economy demonstrated progr essive improvement during 2009 and gradually 
returned to positive growth on the back of a robust economy of Mainland China.   
188. However, in the fast process of development, Hong Kong, China, like many other economies, 
also faces new challenges.  Perhaps the greatest one, as highlighted by the Secretariat report, is that 
Hong Kong, China’s position as regional services cen tre might face increasing competition from 
neighboring economies.  At this juncture, we note with pleasure that the Hong Kong, China's 
authorities have recognized the need of, and have been taking positive steps to further improve the 
competitiveness of its economy, by enhancing the busi ness environment, by improving the quality of 
the labor force as well as, by supporting the development of six emerging industries.   
189. As pointed out in the Secretariat’s report, Hong Kong, China is a strong advocate of the 
primacy of multilateralism; nonetheless, it has also adopted an active approach in establishing close 
ties with other economies, at both bilateral and regi onal levels.  Specifically, Hong Kong, China is an 
active party in APEC, and has continued to negotiate  Free Trade Agreements (FTAs) that accelerate 
the momentum for trade liberalization.  In this rega rd, we take particular note that the implementation 
of The Closer Economic Partne rship Arrangement between the Mainland and Hong Kong (CEPA), 
and its supplements has fostered closer co-operation between the two parties in the areas of trade in 
goods, trade in services, as well as trade and invest ment facilitation.  During the period under review, 
Hong Kong, China has further benefited from CEPA  as an intermediary platform between the 
Mainland and other countries.  In this respect, th e holistic cooperative rela tionship has offered Hong 
Kong, China new opportunities to strengthen and solidify its status as an international financial centre.  
190. At multilateral level, we applaud Hong Kong, China’s long-established active and supportive 
role in the WTO and its contribution to the DDA negotiations.  Hong Kong, China has made detailed 
and constructive proposals in many negotiating ar eas, such as services, trade facilitation, and NAMA, 
with a view to finding a way towards a successful conclusion of the current round of negotiations. In this connection, we greatly appreciate the effo rts made by Mr. Martin Glass, the Permanent 
Representative of the HKSAR of China to the WTO, and his team in Geneva.   
191. In closing, we would like to commend once again Hong Kong, China’s commitment to 
enhancing trade liberalization and its quick and po sitive response to the economic challenges. As a 
close neighbor of Hong Kong, China, needless to say, Macao, China shares a strong common interest 
in Hong Kong, China’s continued growth and prosperity.   WT/TPR/M/241 
 Page 31 
 
 
  INDIA 
192. The economy of Hong Kong, China is strongly anchored in services.  Financial services 
remain the most important pillar of the economy, w ith a contribution to GDP of about 16% in 2008.  
The recent global financial and economic crisis ha d negative effect on the GDP growth as it came 
down from 2.2% in 2008 to -2.8%.  As the Secretariat Report has pointed out, it has recovered fairly 
quickly owing mainly to its closer economic relatio nship with China and the latter’s return to strong 
growth.  It is remarkable that despite global ec onomic slowdown, Hong Kong, China has succeeded in 
keeping inflation and unemployment low.  The re sidents of Hong Kong, China have one of the 
highest per capita income in the region of almost US$32,000. 
193. It has been reported that half of all workers earn less than US$15,000 per annum;  this points 
towards that trickledown effect has yet to take pl ace.  The Secretariat Report mentions that Hong 
Kong, Chihna has drawn up a minimum wage law,  whose effect on employment and the economy’s 
competitiveness will depend on the minimum wage level implemented.  It has been reported early this 
month that Hong Kong, China has introduced its first minimum wage.  It would be of interest if Hong 
Kong, China could share with us the impact this  measure would have on the economy and in bridging 
the income gap of its population. 
194. Another aspect of Hong Kong, China which could be of interest to Members, would be the 
response of Hong Kong, China to the volatility of re venues from the sale and lease of land, which is 
largely state-owned, and the lack of revenues from other sources. 
195. India and Hong Kong, China trade which has be en witnessing healthy growth registered a 
decline of around 4% due to global economic crisis.  Major items of India’s exports include precious 
and semi-precious stones, electrical machinery,  ores, sea food and imports from Hong Kong, China 
include precious and semi-precious stones, electrical  equipment and machinery, boilers, machinery, 
etc. 
196. The investment relations between Indian companies and Hong Kong, China are also 
increasing.  This has been helped  by the presence of 12 Indian banks operating in Hong Kong, China 
and some of the leading IT companies from India located there. 
197. Indian population in Hong Kong, China have  traditionally been drawn from the trading 
community.  They have acted as intermediaries for trade between China and the Middle East and 
African countries.  Increasingly, a large number of  professionals in banking, insurance and financial 
and other services sectors are coming in, giving rise to a new generation of Hong Kong, China 
Indians. 
EL SALVADOR 
198. As regards bilateral trade relati ons, El Salvador's exports to Hong Kong, China grew by about 
12% in 2009-2010, mainly reflecting increased exports  of goods such as plastic products and coffee.  
Imports from HKC chiefly consist of paper pr oducts, plastic products, textiles and clothing. 
199. We welcome the fact that HKC has continued to liberalize trade and investment since its 
previous Review in 2006, especially in the four pilla rs of the services sector, i.e. financial services, 
trading and logistics, tourism, and professional ser vices, which account for roughly 55% of GDP and 
almost half of employment. 
200. We note that for many years now Hong Kong, Ch ina has maintained its leadership role as a 
free economy.  According to the Report submitted, it is a prosperous market economy with few WT/TPR/M/241 
Page 32  
 
  barriers, adopting measures to restructure its economy  and trade in order to attract foreign investment 
and place greater emphasis on services. 
201. We also commend HKC's efforts in the admi nistrative sphere, w ith ongoing improvements 
such as the Food Safety Bill, which contains re gistration and record keeping requirements for 
operators, measures in support of small and medium  enterprises (in response to the global financial 
crisis) and the Competition Bill, which is  before the legislature for adoption. 
202. In accordance with its trade policy, Hong Kong,  China has opted to focus on new sectors such 
as medical services, innovation and technology, cu ltural and creative industries, environmental 
services, and education services, which reflect govern ment interest in and care for human beings as 
individuals with creative potential - a situa tion which we consider extremely positive. 
203. At multilateral level, as an open economy HKC  supports the multilateral trading system, 
participating in the WTO in order to sustain the mo mentum of trade liberalization, especially in areas 
of interest to it, and to strengthen and moderniz e the rules based multilateral trading system that 
promotes trade expansion and liberalization. 
204. This Review is an opportunity for us to undersco re HKC's active role in the current round of 
negotiations and to commend the work being done in the Council for TRIPS by HKC's Permanent 
Representative, under whose chairmanship workshops and open discussions have been held on topics 
of interest to the Membership as a whole, includi ng intellectual property and public health, technology 
transfer, and topics relating to experience shari ng and capacity building in areas such as cooperation 
and technical assistance. 
HONDURAS 
205. Hong Kong, China's economy has experienced ups and downs over the period under review, 
chiefly as a result of the economic and financial cris is.  In spite of these circumstances, we are pleased 
to note that one of the objectives of HKC trad e policy is to promote a free, open and stable 
multilateral trading system, as HKC is the most open economy in the world. 
206. According to the Secretariat Report, one of  the challenges facing Hong Kong, China as a 
services oriented economy dominated by financial services, trading and logistics, tourism, and 
professional services is to maintain these services sectors and its position as a financial centre.  Another challenge for HKC arises from cross strait trade relations between China and Chinese Taipei, 
which will reduce HKC's role as an intermediary in such services. 
207. We note with satisfaction in the Secretariat Report that these challenges have prompted HKC 
to rethink its role in promoti ng economic development and that it has identified new sectors in which 
it has competitive advantages, namely testing and certification;  medical services;  innovation and 
technology;  cultural and creative industries;  environmental services;  and education services. 
208. We are also pleased to note that HKC has a new Competition Bill, that its customs procedures 
are simple and that there are few import or export r estrictions, which are generally imposed for health, 
safety, security or environmental reasons.  It has al so modernized its intellectual property regime, is 
reviewing its legislative framework for copyrigh t protection, and has taken further steps in 
deregulating telecommunications. 
209. Concerning bilateral trade between Hong Kong, China and Honduras, an important point is 
that Honduras has a positive trade balance with  HKC, which exports products such as overcoats, 
fluorine, chromium, unwrought aluminium, yarn, rubber, optical fibre, tractors and pearls, and imports chiefly coffee and meat.  WT/TPR/M/241 
 Page 33 
 
 
  NIGERIA 
210. Nigeria is pleased to participate in this trad e policy review of Hong Kong, China; and has 
duly taken note of the description of Hong Kong, China as a mainly services -oriented economy that 
has traditionally been dominated by four pillar in dustries, namely, financial services, trading and 
logistics, tourism and professional services. We al so note that the sector accounts for 55% of the GDP 
and almost 50% of employment. Of these, the financial services pillar has been recognized as one of 
the most important pillars of the economy. Nigeria also wishes to commend  the government of Hong 
Kong, China on its efforts towards deepening a nd driving economic performance by adopting a 
strategy aimed at promoting medical services; innovation and technology; cultural and creative 
industries; environmental services; and education ser vices. Although this trend is consistent with the 
Secretariat report that Hong Kong, China is shif ting its reliance on manufacturing to services, it would 
be interesting to know the challenges that Hong Kong , China is facing in this transition; and how the 
HKSAR of China would maintain its pivotal role as a regional and global financial centre, in the face 
of increased competition from neighbouring cities like Shanghai and Shenzhen. 
211. Nigeria would like to commend Hong Kong, China for its trade policy regime, which to date, 
remains about the only excellent example of a free,  open and stable trading system. We appreciate 
how Hong Kong, China has used market openings  and foreign investment as instruments for 
economic growth and development. Nigeria, theref ore, has taken due note of the active commitment 
of the government of the HKSAR of China to cr eating a favourable environment for business; and the 
facilitation of economic development since the last TPR, particularly by not adopting any protectionist measures in response to the global ch allenges arising from the economic and financial. 
212. Nigeria would also like to acknowledge that H ong Kong, China is a very important Member 
of the WTO; and has been playing a significant role in the DDA negotiations. In that respect, we wish 
to commend the efforts of Mr. Glass and his team in  Geneva for the positive contributions that have 
been made in various areas of the negotiations. 
213. Nigeria did not submit any questions to Hong K ong, China ahead of this Review. However, 
we consider it necessary to raise two issues. Firs tly, we have noted from the Secretariat Report 
relating to the Framework for Protecting some Inte llectual Property Rights, 2010 that there are two 
types of patent protection called sta ndard patent and short- term patent. It would be interesting to know 
the criteria used in according protection to these tw o patent categories. Secondly, the Secretariat 
Report has stated that the Consumer Legislation Council provides wide ranging services to consumers; and that customs officers also conduct ch ecks and investigations to ensure that consumer 
goods are reasonably safe. Nigeria would therefor e like to know whether Hong Kong, China takes 
similar measures for products meant for exports d estined to other developing countries and LDCs, 
more so as they have capacity constraints in ascertaining the efficacy and safety of imported products .  
214. Nigeria and Hong Kong, China have enjoyed longstanding bilateral trade and economic 
relations. In particular, Nigeria has continued to benefit from significant investments from Hong 
Kong, China in textiles, infrastructure, banking an d finance, as well as power and energy. Nigeria 
continues to make efforts aimed at linking our pr ivate and public enterprises with their Hong Kong 
counterparts for increased substantive growth in  business and investment, taking into account the 
enormous investment opportunities available in the c ountry. At the social level, it is my pleasure to 
place on record that Ms. Mary Pandora Cheung, before winning Miss Hong Kong in 1975, had 
worked at the Nigerian Consulate in Hong Kong, China. 
215. In conclusion, Nigeria would urge Members to encourage Hong Kong, China to continue to 
maintain its reasonably open and free trade policy re gime, in order to sustain an enhanced competitive 
business environment for both domestic and foreign operators. WT/TPR/M/241 
Page 34  
 
  V. REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND 
ADDITIONAL COMMENTS 
216. Today I would like to address some of the issu es in which Members have shown particular 
interest. Firstly on Economic Environment and Tr ade Policy Objectives the Discussant and a number 
of Members noted that our economic and trade ties with China are important for Hong Kong, China’s 
sustained growth and the positive push factor that ha d helped us to recover quickly from the impact of 
the global financial crisis.  The concern is, whet her our close ties with the economy of China will 
develop into a kind of dependency in th e long term and become a weakness.   
217. Hong Kong, China is a small and open economy.  As such, we are very sensitive to the trade 
and economic environment surrounding us, and, if an ything, we are "dependent" on the overall health 
of global trade rather than on any single economy.  As the Discussant has also  pointed out, whilst our 
trade in goods is very much linked to products to and from the Mainland of China, our trading 
partnerships in services, which account for over 90% of our GDP, are more diversified.  Indeed, we 
are currently making every effort to explore ne w market opportunity with less traditional trading 
partners around the world. 
218. Some other Members asked how we viewed in creasing competition from the major cities of 
the Mainland of China and our neighbouring economies.  In fact, Hong Kong, China is only too familiar with keen competition over the years,  and we welcome this.  Competition improves 
efficiency and allows different cities to devel op and make full use of their own comparative 
advantages.  As an externally oriented market  economy, we constantly enhance our competitiveness 
and continue to evolve into a high value-adde d and knowledge-based economy in order to maintain 
our leading edge.  Our competitiveness is underp inned by strong fundamentals, which provide a 
favourable, predictable and transparent platform fo r doing business.  As the growth prospect of the 
region continues to flourish, there is much room  for cooperation and new opportunities will open up 
on which we can leverage our comparative a dvantages.  Hong Kong, China’s enterprises and 
investors, as always, know better than the Govern ment where the market opportunities lie.  They 
know where to turn and adapt to changing circumstances.   
219. Some Members queried whether our recent identification of six services industries as 
potential areas of growth for Hong Kong, China represen ts a shift in favour of a more interventionist 
policy.  This is not the case.  The Government has positioned itself as a facilitator to foster an 
environment more conducive to their growth, for ex ample, in terms of enabling the land and human 
capital supply that such industries would require.  The bottom line is that the ultimate success or 
otherwise of these industries is always a matter for market forces. 
220. While noting that Hong Kong, China has resisted resorting to any protectionist measures 
during the financial crisis, the Discussant asked whether business support measures, in particular 
those for SMEs, would be temporary.  A question w as also asked whether such support is compatible 
with the rules of the Agreement on Subsidies a nd Countervailing Measures on export subsidies.  The 
measures we introduced to assist SMEs during the cris is were mainly loan guarantees and cash rebates 
for research and development activities.  They are neit her specific to particular industries or firms, nor 
contingent upon export performance.  There is also  no discrimination against foreign ownership or 
capital.  We will closely monitor the need and us age of these measures.  One such measure, the 
Special Loan Guarantee Scheme, w ill cease by end of this month. 
221. Let me now turn to some major specific trade policies and measures on which Members have 
submitted questions.  Members will find more detaile d replies in our written responses distributed on 
Wednesday.  WT/TPR/M/241 
 Page 35 
 
 
  222. We thank Members for their encouraging words on our zero-tariff regime in goods and highly 
liberal regime in services.  We also took note, however, of various comments that not all our tariff lines are bound and the services commitments that we have made do not fully represent our de facto liberal regimes.  While our present scope of bindi ng is the outcome of previous negotiations plus 
additional autonomous binding that we have made since the conclusion of the Uruguay Round, like 
many of you, we look forward to substantial reduction and eliminati on of tariffs on goods and 
ambitious liberalisation in services following the su ccessful conclusion of the DDA negotiations.     
223. We note the suggestion to abolish or reduce the excise duty on drinks with a high alcoholic 
content.  This is certainly one area to which we will continue to pay attention.  There are still, 
however, social and health concerns in Hong Kong,  China as to whether that may encourage over-
consumption of alcohol.  This concern is in contra st to the abolition of duty on wine, whose main 
purpose was to foster the emergence of Hong Kong as a regional wine trading hub, with considerable 
success. 
224. Members welcomed the introduction of our Comp etition Bill and urged us to expedite its 
passage.  We took note of the point that the exemption provision of the Bill should be carefully 
crafted so as not to undermine its effectiveness.  The Competition Bill aims to provide exclusion or 
exemption only when this is fully justified by , amongst other considera tions, a greater economic 
benefit than the potential damage from anti-competitive  behaviour.  We will work with our legislature 
carefully to provide an effective piece of legislatio n that deters anti-competitive behaviour, but at the 
same time does not unnecessarily restrict business models and practices.  We hope to see the legislative process completed as expeditiously as possible. 
225. Some Members have expressed concern that a high  percentage of contracts in our government 
procurement are granted through selective tendering.  This practice deserves further explanation.  
Selective tendering mainly applies to works contract s.  For non-works contracts, the use of selective 
tendering is around only 3% of all cases, so selective te ndering, as with restricted tendering, is the rare 
exception.  For most works contracts, in order to ensure that only qualified contractors can undertake 
public works up to the required standards, we ma intain approved lists of contractors who may 
participate in such tenders.  These lists are open for application from all interested parties, and all 
contractors on the lists may participate in tenders, which we conduct on a transp arent basis.  Selective 
tendering in practice, therefore, is no more "selective" than the open tendering.   
226. As for the Close Economic Partnership Arra ngement between Hong Kong, China and the 
Mainland of China, it currently does not include p ublic procurement.  We are, however, closely 
following the progress of the accession of China to th e GPA, to which we are also a party.   
227. On the GPA, Hong Kong, China has made some  very high quality commitments and we are 
also in the process of internal consultati on on the possibility of tabling an offer. 
228. Many Members have commented on the SPS issues.  Some have conveyed their concerns to 
us and some appreciated our efforts to protect publ ic health and consumer interests in line with a 
science-based approach.  We have been very careful in developing our policy measures to ensure that 
these measures are consistent with the SPS Agreem ent and would not create unnecessary obstacles to 
trade.   
229. Regarding a Member’s concern over our import r estrictions on beef, we note its recent efforts 
to enforce a framework for anim al disease traceability.  We look forward to receiving more 
information from the relevant authorities for us  to assess the efficacy and effectiveness of the 
framework.   WT/TPR/M/241 
Page 36  
 
  230. In my opening statement I explained our nutr ition labelling scheme for pre-packaged food.  
Members may find further details in our written repli es.  Regarding one particular concern raised on 
Wednesday, I would like to point out that we have  undertaken to review the impact of the scheme on 
"new-to-market" products one year after commencement of the legislation.     
231. On protection of intellectual property, we a ttach great importance to and have allocated 
substantial resources for enforcement.  I would like to reiterate our long term commitment to IP 
protection against counterfeiting activities. We will c ontinue to tackle IP infringement activities from 
the legal, enforcement, and educational angles. 
232. Regarding the question on the trade declaration char ges, the rates are very low, and as such do 
not have a restrictive effect on trade.  The char ges are imposed on both imports and exports, and are 
not intended for the protection of the domestic industries against imports. 
233. Other than the replies that we provided on Wednesday, there are a few outstanding questions 
on which we are still working in order to give full written replies.  We hope to circulate them very 
soon.  In conclusion, we believe the Review mech anism is useful in furthering the understanding of 
trade policy regimes and measures of peer economies.  For our part, we find this process instrumental 
in mandating a comprehensive review of our own me asures.  Members’ questions and comments have 
also provided us with good food for reflection. 
DISCUSSANT 
234. I shall focus my comments on the most salient  points that emerged during Wednesday's 
session, highlighting positive points as well as ar eas in which action might be called for. 
235. The first positive point underscored by numerous Members was the HKC economy's strong 
capacity to rebound after the crisis, which was attri buted to the free and open trade and investment 
regime (high FDI flows, Asia's second largest re cipient of FDI), sound macroeconomic fundamentals, 
and close economic and trade ties with China.  The second positive point was the accelerated and 
sustained growth forecast for 2010-2011.  Such gr owth should continue to provide the Government 
with the necessary resources for the infrastructure an d investment development required to maintain 
the competitiveness of the economy.  However, one  Member raised the issue of HKC's narrow tax 
base, which relied heavily on revenues from the sale  and lease of land.  That same Member also 
mentioned income disparities within the population,  posing a major challenge to the authorities in 
terms of social policy.  The HKC delegation re ported that minimum wage provisions had been 
adopted as a means of protecting low income groups. 
236. The Government was reported as having a fac ilitating role, and the economy was market 
driven.  Various Members noted with satisfactio n that the Government had not resorted to 
protectionist measures but had adopted appropriate counter cyclical measures during the crisis, which 
had mitigated its adverse effects.  Several Memb ers were nevertheless concerned that the measures 
should not turn into export subsidies.  The HKC delegation said that most of the support measures 
were neither sector specific nor bound to export commitments and were of a temporary nature.  
At least one Member mentioned the Government's  leadership role in making the economy more 
competitive and adjusting it to meet new challenges arising in a changing and complex environment.  
In that connection, a number of Members welcom ed the initiative of developing six new economic 
sectors in which HKC had competitive advantages, thus broadening the production base.  Some Members voiced concern that support for t hose sectors might constitute subsidies.  The 
HKC delegation reiterated that the Govern ment would merely act as a facilitator. 
237. Several Members commented on the benefits fo r the economy of HKC's proximity to and 
close trade ties with China.  Speci al mention was made of HKC's role as an intermediary for China's  WT/TPR/M/241 
 Page 37 
 
 
  trade with the rest of the world in general and the region in particular (Chinese Taipei was mentioned 
several times in that context).  Albeit a strength fo r the time being, the situa tion posed a challenge in 
view of the Economic Cooperation Framewor k Agreement between Mainland China and 
Chinese Taipei, which would make much of HKC's  intermediation role redundant.  One Member 
mentioned the challenge of other countries of the region becoming more competitive in logistics and 
trade related services.  Another raised the questi on of possible competition from China in services.  
The HKC delegation responded with three points in favour of Hong Kong, China, namely its 
extensive experience in competing in a comple x environment;  the economy's move towards high 
value added, knowledge based activities;  and great er opportunities for cooperation at regional level. 
238. Turning to HKC's trade and investment regime , several Members commented on the fact that 
it was open and transparent and provided certainty  and predictability.  At least one Member 
highlighted HKC's outstanding record in submitting notifications to the WTO. 
239. Nonetheless, a large number of statements point ed out the inconsistency of HKC maintaining 
a high percentage of unbound tariffs when its applie d tariffs were zero.  The HKC delegation gave 
positive indications in that respect in th e context of the Doha Round negotiations. 
240. Other Members stressed the importance of promptly implementing the Competition Bill 
recently brought before the HKC legislature.  One Me mber requested that the Bill be maintained as it 
was without weakening its impact with the intro duction of exceptions or lesser penalties.  The 
HKC delegation replied that the G overnment would be working with the legislature to adopt an 
instrument that would strike a proper balance between economic competition and private initiative 
and business. 
241. Various Members referred to aspects of the gove rnment procurement regime that restricted 
foreign competition and should be clarified and improved.  The HKC delegation explained the 
selective tendering procedure. 
242. A number of Members took the floor to under score the positive effects of the Closer 
Economic Partnership Arrangement with China (CEPA).  However, several of them stressed the need 
for timely submission of notifications of the Arrangeme nt to the WTO, in particular those concerning 
the additional provisions under negotiation. 
243. Several Members expressed concern regarding specific measures, including a number of 
references to the new requirements for nutrition labell ing, which in their view entailed excessive costs 
for businesses.  The HKC delegation announced that th ere would be a review of the impact of the 
measure in relation to new products. 
244. Regarding HKC's participation in the WTO, ma ny Members noted that it had been active, 
positive and constructive.  Special mention was ma de of HKC's dynamic and proactive role in the 
Doha Round negotiations.  On the other hand, there was some  criticism of HKC's unambitious 
services offer and failure to submit an offer in the context of the re negotiation of the Agreement on 
Government Procurement.  The HKC delegation ga ve positive signals regarding the services offer in 
the framework of the Doha Round.  Its res ponse concerning the Agreement on Government 
Procurement was that internal consultations were under way. 
245. One Member emphasized the need to step up measu res to ensure the seizure of pirated goods.  
The HKC delegation reiterated Hong Kong, China's commitment to protect intellectual property 
rights. WT/TPR/M/241 
Page 38  
 
  246. Another Member questioned the relevance of import declaration charges for the purposes of 
compiling statistics and promoting trade.  The HKC delegation replied that the charges were 
sufficiently low not to affect trade flows. 
247. Reference was also made to the fact that the lowering of consumption taxes could generate 
more trade in products such as alcoholic bevera ges.  Several Members cited the example of the 
removal of taxes on wines, which had established Hong Kong, China as a prime hub for the wine 
trade and particularly for wine auctions.  The HK C delegation replied that the matter would be given 
further consideration but that there were health concerns to be taken into account. 
248. To conclude, I would like to congratulate the HKC delegation for its open and frank approach 
to this interactive exercise with th e rest of the Membership.  I hope that  the results of this Review will 
prove useful, and we are confident that Hong K ong, China will remain a vibrant, dynamic economy 
marked by unwavering commitment to international trade. 
EUROPEAN UNION 
249. We would like to welcome some of the positive developments highlighted for example in the 
area of consumer protection where a legislation e nhancing consumer protec tion is planned to be 
introduced in mid 2011 and also in the area of IP, notably the legislative amendments in Companies 
Ordinance which will come into operation very so on, in order to address concerns on "copy-name 
companies". 
250. We do have a few follow-up comments and ques tions which we would like to submit in 
writing. I would like to highlight the topics where we do have some follow-up questions. On the Nutritional Labelling Scheme could Hong Kong, China elaborate further on how it intends to react in 
the case the review shows that as a result of the legi slation, this particular category of products is 
adversely impacted and what could be like ly steps to remedy such a situation. 
251. The second set of comments and questions would be on the Competition Bill.  We have taken 
note of the information provided today but we woul d like to ask further elaboration on the proposed 
automatic exemption in that Bill. 
252. The third question would be on illegal unrepor ted and unregulated fishing, and on some 
specifications on monitoring mechanisms. Finally we  have taken note of Hong Kong, China’s reply 
on how it ensures that vessels listed on its shipping register respect the relevant environmental 
agreements.  We would like to ask for elaboration on  how it monitors in practice the compliance of its 
flagged vessels. 
253. That would be largely it, we will submit them in writing and we expect the replies in due 
course according to the TPRB practices.  WT/TPR/M/241 
 Page 39 
 
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
254. This is the sixth TPR of Hong Kong, China, which has given us a much better understanding 
of recent trade policy developments in Hong Kong, China.  Our discussions have benefited from the 
participation of Mr. Martin Glass and his delegati on.  I would also like to thank our discussant 
Ambassador Eduardo Muñoz Gómez for his insightful analysis and reflections.  
255. Members praised Hong Kong, China for rema ining one of the most open and liberal 
economies in the world, and for its strong commit ment to the multilateral trading system and its 
continuous readiness to explore new market oppor tunities around the world.  Some considered it 
exemplary how Hong Kong, China has developed the economy's potential through open trade.  Some Members commended Hong Kong, China for its speedy and efficient customs procedures. 
256. Members congratulated Hong Kong, China for its relatively quick economic recovery from 
the global economic crisis, based on sound economic f undamentals, as well as prudent regulation of 
its financial markets.  Hong Kong, China noted th at it has introduced a statutory minimum wage to 
protect low-income workers and is preparing legi slative proposals to introduce a corporate rescue 
regime.  While Members recognized the economic ch allenges arising from the global financial crisis 
and increasing regional competition, which have prom pted the Government of Hong Kong, China to 
promote the development of six new industries, it was reassuring to hear that the Government does 
not intend to pick winners. 
257. Members welcomed the steps that Hong Kong, China has taken towards establishing a legal 
framework of competition rules that apply across all sectors of the economy, to promote a level playing field among all economic operators.  Member sought further clarification regarding the scope 
of the pending competition bill and some concern was raised regarding potential exemptions of 
certain economic operators.   
258. All of Hong Kong, China's applied MFN tariffs  are zero and its constitutional document, the 
Basic Law, guarantees Hong Kong, China's status  as a free port.  Members noted, however, the 
relatively low share of tariff bindings in some s ectors and encouraged Hong Kong, China to increase 
the coverage of its bindings in the context of the DDA negotiations, to give greater certainty to 
exporting Members.  Members expressed the view that  there might be room for further liberalization 
of the government procurement re gime and improving the transparency of the tendering procedures.   
259. Members noted the economic success of the elimination of excise duties for wine, which has 
turned Hong Kong, China into a major regional wine trading and distribution hub.  They 
recommended extending such exemption to other sp irits.  Concern was raised about the costs and 
negative trade impact of the new requirements fo r nutritional labelling, and Hong Kong, China was 
encouraged to undertake a review of this measur e.  Hong Kong, China noted that it has introduced a 
Small Volume Exemption Scheme under which many niche food products imported in small volumes 
would be exempted from the labelling requireme nts.  Members recognized Hong Kong, China's 
efforts to further strengthen the protection and en forcement of intellectual property rights, and to 
address the problem of "copy-name" companies that abuse trademarks or trade names.   
260. Members sought clarification on several speci fic issues including the foreign investment 
regime;  regional trade agreements ;  labour issues;  customs procedures;  excise duties;  import 
licensing procedures;  government procurement;  SPS a nd TBT measures;  export controls on textiles;  
tax incentives;  industrial estates;  and intellectual property rights.  Members also raised a number of 
questions on specific sectors of the economy, incl uding agriculture, energy, financial services, 
telecommunications, transport, and tourism.  WT/TPR/M/241 
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  261. Members expressed their appreciation for the wr itten responses and explanations provided by 
the Hong Kong, China delegation.  We look forw ard to receiving written answers on outstanding 
questions within the next month. 
262. This brings us to the conclusion of our Review of Hong Kong, China.  The large number of 
questions and the numerous interventions reflect th e increasing importance that Members attach to 
Hong Kong, China as a trading partner.  I would like to join other Members by expressing my 
appreciation for the active role that Hong Kong, Ch ina, and Mr. Glass and his delegation have played 
in the WTO and in the DDA negotiations.   
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