Concluding remarks by the Chairperson

This seventh Trade Policy Review of Hong Kong, China has enabled us to improve our understanding of recent developments in its trade and trade-related policies as well as the challenges it now faces. The review has benefited from the constructive engagement of the delegation of Hong Kong, China led by Ms Carol YUEN, Deputy Secretary for Commerce and Economic Development, as well as from the insightful contribution of our discussant, Ambassador Ronald Saborío Soto of Costa Rica, and from some 30 interventions by Members. Timely responses from Hong Kong, China to the large number of questions as well as its choice for the alternative time-frame were highly appreciated. We look forward to any additional replies no later than one month after this meeting.

Hong Kong, China was highly commendedfor maintaining one of the most open trade and investment regimes, which has earned it some of the highest rankings in world indicators of economic freedom and competitiveness. Members noted that this liberal policy stance, together with sound macroeconomic fundamentals, a robust legal framework, and a business-enabling environment, have underpinned Hong Kong, China's continued economic growth, notwithstanding challenging external conditions. Members also recognized Hong Kong, China's success in consolidating itself as a major exporter and international centre for high-value added services, such as finance, transport, trade and logistics -an achievement that has been supported by its world-class physical infrastructure and connectivity to global markets.

Members praised Hong Kong, China's strong commitment to the multilateral trading system, including its active role in the DDA and its support for the implementation of the Bali package. In particular, Hong Kong, China was congratulated for being the first Member to notify the WTO that it will implement all provisions of the Trade Facilitation Agreement upon its entry into force without making use of any flexibility arrangements. Hong Kong, China's participation in plurilateral trade initiatives, including the revised GPA, the expansion of the Information Technology Agreement, and the Trade in Services Agreement, among others, was also acknowledged.

Likewise, Members noted with interest the active engagement of Hong Kong, China in bilateral and regional trade agreements such as those signed with New Zealand, the EFTA member states and Chile during the review period. They also acknowledged Hong Kong, China's increasingly deep economic and financial integration with Mainland China through the Closer Economic Partnership Arrangement (CEPA) and its supplements. Some Members welcomed efforts to reach full liberalization of services under CEPA by the end of 2015. The role of Hong Kong, China as an offshore renminbi trading hub and platform for doing business with China also drew Members' attention.

Hong Kong, China was commended for operating some of the world's most efficient and speediest customs clearance procedures and for its implementation of new trade facilitation measures, including its authorized economic operator scheme. In its written replies to questions regarding its textile trade control system, Hong Kong, China announced the cessation of textiles import and export licensing requirements from 21 November 2014, that is, today.

During the review period, Hong Kong, China continued strengthening its trade-related regulatory framework, mainly by adopting comprehensive competition legislation, a new Companies Ordinance, and by updating some of its intellectual property laws to keep pace with technological developments; these areas have elicited much interest from Members.

Notwithstanding these impressive achievements, Hong Kong, China still faces some important structural challenges such as preserving fiscal sustainability in the face of an ageing population, addressing social inequalities and providing affordable housing. Cognizant of these challenges, the authorities of Hong Kong, China are already implementing measures to address these needs.

In the trade sphere, Members have identified some areas in which further improvements could be made or where more information is sought. The delegation of Hong Kong, China has addressed most of these issues in its final remarks or written replies. I would now like to highlight some of them:

• Tariff bindings: while commending Hong Kong, China for applying all MFN tariffs at a zero rate, Members encouraged it to expand the coverage of its WTO tariff bindings.

• Competition: Members welcomed the recent adoption of comprehensive competition legislation in Hong Kong, China, which is a remarkable development from the previous Review. The exemption of statutory bodies and the fact that merger control rules only apply to the telecommunications sector has drawn Members' attention. Hong Kong, China was therefore encouraged to consider extending the scope of the Competition Ordinance.

• Intellectual property: Members appreciated Hong Kong, China's initiatives to update its legislation in several intellectual property areas, as well as its actions to continuously improve enforcement of IPRs and raise awareness of the importance of their protection. They were keen to learn more about the Copyright Amendment Bill; the proposed Original Grant Patent system; the protection for GIs; and Customs' actions to strengthen enforcement against IPRs violations in the digital environment.

• TBT and SPS measures: Hong Kong, China was commended for maintaining transparent and relatively simple TBT and SPS regimes, and was encouraged to continue doing so. However, some Members sought further clarification about SPS measures relating to imports of dairy products, meat and high-risk food items, and about a proposed ban on marketing of infant formula.

• Services: Members appreciated the overall liberal services regime applied by Hong Kong, China. Some encouraged it to bind such regime through more extensive GATS commitments, notably in sectors such as accounting, legal services and veterinary services; and regarding the temporary entry for business visitors, contractual services suppliers and independent professionals.

To sum up, Hong Kong, China was applauded for being one of the most liberal and market-friendly economies, characterized by a sound legal system and transparent regulatory settings. Indeed, Hong Kong, China's exemplary achievements illustrate how an open trade and investment regime is crucial in harnessing the benefits of global integration. Members encouraged Hong Kong, China to maintain the momentum along this path.

This successfully concludes our review of Hong Kong, China. The substantial number of advance questions and the many interventions are testimony to the important role Hong Kong, China plays in the WTO. I believe that the current Review will be helpful for Hong Kong, China in further improving its trade-related regulatory framework.

Finally, let me thank the delegation of Hong Kong, China for their efforts and dedication to this exercise, the discussant for his comments, and Members for contributing to what has been an informative Review.