Following are excerpts from each of the areas considered in the IAP Peer Review Report Study Report on Hong Kong, China (HKC).
Tariffs - HKC does not apply tariffs on any of its imports, and charges duties only on liquor, tobacco, hydrocarbon oil and methyl alcohol. There are no tariff quotas. As of 2006, 62% of all tariffs (in value terms) have already been bound at zero, covering 44% of tariff lines. This is up from 43% in 2002 and 35% in 1996.
Non-Tariff Measures (NTMs) - Although HKC does not apply quantitative restrictions to its trade, it does employ import licensing schemes for some commodities and products to protect public health, safety, security and the environment, and to fulfill international obligations. As a surveillance system to back up the textiles export control system and to preserve the legitimate textiles trade interests, import licensing measures are imposed on textiles and clothing products.
Services - As its prosperity depends on the success of its highly competitive services industry it is not surprising that HKC has in place a liberal regime for trade in services. Subject to the Mainland and Hong Kong Closer Economic Partnership Arrangement, MFN treatment is applied across all services and providers, and with the exception of residency requirements being maintained in a few services sectors, foreign service-providers generally are afforded national treatment.
Investment - HKC's investment regime is open and transparent, with information on major policy initiatives, government programmes and services of interest to investors readily available. Foreign and local investors are treated alike, and there are no performance or local content requirements in connection with investments. Property rights are protected under the Basic Law, and investments and returns thereon freely convertible. Standards and Conformance - HKC does not have its own central standards authority, but instead applies recognized international standards to address safety, health and environmental considerations. This approach has proved to be highly effective, and there have been no significant changes or issues since the last IAP Review.
Customs Procedures - As HKC is a free port with no customs tariff to be imposed at the border, the customs formalities are simple and the customs procedures seem to be compatible with the five Guiding Principles: facilitation, accountability, consistency, transparency and simplification, laid down by the APEC Sub-Committee on Customs Procedures (SCCP).
Intellectual Property Rights - After extensive public consultations, a new Copyright (Amendment) Bill 2006 was introduced to the Legislative Council in March 2006 with the objective of achieving an appropriate balance between protecting copyright owners and affirming fair and legitimate use of copyright works. The Bill will be subject to further debate in the Bills Committee of the Legislative Council, and will likely require another year before it is enacted into law.
Competition Policy - Competition policy is one area where traditional practices have resulted in both considerable scrutiny and some criticism by overseas commentators. Specifically, HKC's sectoral approach to regulating competition matters has been raised as an issue in the WTO Trade Policy Review, as well as by the International Monetary Fund (IMF), and the topic was also discussed in the 2003 IAP Study Report. The European Union has also encouraged the enactment of a comprehensive Competition Law. The Competition Policy Review Committee (CPRC) set up by the HKC Government recommended, among others, that a new cross-sector competition law be introduced. Following the issue of the CPRC's recommendations, the HKC government launched a three-month public consultation exercise on 6 November to facilitate consideration of necessary measures to ensure the effectiveness of competition policy in Hong Kong. Government Procurement - HKC maintains an open and non-discriminatory approach to government procurement. It is a signatory to the WTO's Agreement on Government Procurement. Its regime is fully consistent with the APEC Non-Binding Principles of transparency, value for money, open and effective competition, fair dealing, accountability and due process and non-discrimination.
Implementation of WTO Obligations (including Rules of Origin) - HKC has met all of its WTO obligations, relating to both trade in goods and trade in services, and thus no further commitments were required or made under the 2006 IAP. All imports enter HKC on a non-preferential, tariff-free basis and they do not need to be supported by certificates of origin.
Dispute Mediation - HKC has not been involved in any trade or investment disputes with other economies recently. As a matter of practice, it follows the WTO dispute settlement procedures to settle trade and investment disputes with other governments where applicable. If the other government is not a WTO member, HKC will seek to settle the dispute by consultations.
Mobility of Business People - HKC has taken a number of concrete steps to facilitate the mobility of business people from the region. There are several specific programmes in place to facilitate visitors and to minimize processing times. For example, the "Frequent Visitor Card" is issued by the Hong Kong Airport Authority to provide a fast track facility. HKC has been a member of the APEC Business Travel Card (ABTC) scheme since its pilot phase in 1998, and implemented the scheme on a permanent basis in 2001. Information gathering and Analysis - HKC collects and publishes a comprehensive set of trade and investment as well as general economic statistics through its Census and Statistics Department. Data are readily available both on-line and in print. HKC is also an active participant in regional cooperation to improve understanding of overall trends in trade and investment through APEC, the APEC Study Centre Consortium and other fora.
For further information or to arrange an interview contact:
Christopher Hawkins on +61 (0)433 810 844 or E-mail: ch@apec.org
Anita Douglas on +61 (0)420 945 613 or E-mail: ad@apec.org
