Hong Kong, China: Reviewed as "One of the Most Open Economies in the World"
Hong Kong, China has been described as "a model APEC citizen, and one from which some important lessons can be derived" in an independent peer review of Hong Kong, China's individual action plan to reach APEC's Bogor Goals on free trade and investment.
The comments were made by the expert who compiled the Individual Action Plan Study Report, Professor John McKay, at the review session taking place during the recent round of APEC Senior Official's Meetings in Phuket, Thailand.
"The government is to be congratulated for its continued support of economic reform, and for its longstanding advocacy of the multilateral system of trade and investment," Professor McKay said in the report.
Established at a meeting of APEC Economic Leaders in Bogor, Indonesia, in 1994, the Bogor Goals set the target of free and open trade and investment for industrialized economies no later than the year 2010 and for developing economies no later than the year 2020.
In his report, Professor Mckay, who is also the Director of the Australian APEC Study Centre, said that despite the current economic pressure on Hong Kong, China, the government has maintained its free trade agenda.
"My most important conclusion, and one which should be noted by all APEC members, is that the response of the government of Hong Kong, China to the range of very serious economic problems now facing it is not to retreat into some kind of defensive protectionism," Professor McKay said.
"Rather, these challenges have called forth a redoubling of efforts to speed up reform and search for new ways of seeking efficiencies.
"The government remains committed to free market approaches and to the encouragement of competition as the basic rationale for most of its policy settings.
"It also sees these philosophies as the only ones that can help it to maintain and strengthen its long-term strategic position as a leading regional and global financial and services centre."
The Moderator of the session at which the report was reviewed by other APEC member economies, Mr J Jayasiri, supported the comments by stating that the Peer Review has confirmed that "Hong Kong, China is one of the most open economies in the world."
Mr J Jayasiri, who is also the Senior Official of Malaysia, welcomed Hong Kong, China's progress towards the APEC Bogor Goals.
"Hong Kong, China maintains a very liberal tariff and non-tariff regime with only 4 dutiable items.
"It is anticipated that Hong Kong, China would continue upgrading market institutions, infrastructure, governance and transparency to preserve its existing advantages and look for ways to enhance its competitive edge.
Despite the recognition as the most open economy and a model APEC citizen, Hong Kong, China is facing some important economic challenges. A key challenge is how to maintain Hong Kong, China as a major global and regional financial centre. Despite the challenges, Hong Kong, China is determined to keep protectionism at bay with continuation of domestic reforms."
In his report, Professor McKay also discussed some of the challenges facing the Hong Kong, China economy in recent years.
"Particular attention is paid to those sectors that in the past have received some criticism from commentators, notably competition policy and customs procedures," Professor McKay said.
It is concluded that in both these areas, Hong Kong, China has made considerable progress, although debate continues on the best way to structure competition policy.
"Discussions will continue on some details of policy approaches in area like competition policy, but such debates about the best ways of achieving agreed outcomes are useful within the organization.
"As a last word I can only echo the opinion of the WTO Trade Policy Review discussants, Mr. Francisco Prieto of Chile, who concluded that "Hong Kong, China's free trade regime and competition policy is a classic textbook case which illustrates a market economy at work".
The 'Individual Action Plan Study Report' for Hong Kong, China is available on the e-IAP website.
and a Fact Sheet on the role and objectives of Individual Action Plan peer reviews are available at:
Fact Sheet - APEC Individual Action Plan Peer Reviews