Concluding remarks by the Chairperson

This eighth Trade Policy Review of Hong Kong, China has enabled us to take a closer look at its trade and economic policies and to deepen our understanding of developments in those policies since its previous Review in 2014. I would like to thank the delegation of Hong Kong, China, led by Ms Salina Yan, Director-General of Trade and Industry, the discussant, Ambassador Alfredo Suescum of Panama, for his insightful contribution, and the 37 Members who made interventions. Timely responses from Hong Kong, China to the large number of questions were highly appreciated. We look forward to any additional replies no later than one month after this meeting.

Hong Kong, China was highly praised for maintaining one of the most open and market-oriented economies in the world, and achieving robust economic growth, despite a challenging external environment. Members acknowledged that Hong Kong, China's good economic performance was underpinned by sound macroeconomic fundamentals, including a healthy fiscal balance and a strong external financial position, as well as a business-friendly environment, transparent regulatory settings and modern infrastructure. Members further noted that Honk Kong, China's liberal approach to trade and investment had enabled it to obtain some of the highest rankings in major world indicators of competitiveness, economic freedom and ease of doing business.

It was recognized that Hong Kong, China's highly outward-oriented economy was particularly sensitive to global trade tensions, rising protectionism and heightened volatility in financial markets. The importance of the services sector to the economy of Hong Kong, China and its orientation towards a knowledge-based society were highlighted, and Members acknowledged its achievements as a major global trade, finance and logistics centre. Some Members encouraged it to further liberalize its services market, particularly in professional services.

Members commended Hong Kong, China's strong commitment to, and support for, the multilateral trading system. In particular, Members commended it on its active role in the MC11 joint initiatives on investment facilitation for development, MSMEs, services domestic regulation, and electronic commerce. Hong Kong, China was congratulated for being the first Member to accept the Trade Facilitation Agreement. Its participation in plurilateral trade initiatives, including the revised GPA, and the expansion of the Information Technology Agreement, among others, was also acknowledged. Some Members noted that Hong Kong, China had not made any use of special and differential treatment in recent years.

Members noted with interest Hong Kong, China's active engagement in bilateral and regional trade agreements such as those signed with the ASEAN nations, Georgia, and Macao, China during the review period, and the recent conclusion of an FTA negotiation with Australia. They also noted its increasingly deep economic and financial integration with Mainland China through the conclusion of four subsidiary agreements to the Closer Economic Partnership Arrangement (CEPA). 

Overall, Members praised Hong Kong, China for its open, transparent and efficient trade regime; some Members encouraged it to make efforts to follow the best practices of administrative transparency.

Members commended Hong Kong, China for maintaining a tariff-free import regime with very few import restrictions, no legislation pertaining to anti-dumping, countervailing and safeguard measures, and relatively simple TBT and SPS systems. However, noting that half of its tariff schedule remained unbound, some Members encouraged Hong Kong, China to expand the coverage of its tariff bindings, so as to enhance the predictability of its trade regime.

During the review period, Hong Kong, China continued to implement measures to further streamline customs procedures and facilitate trade. In particular, Members welcomed the full implementation of the Authorized Economic Operator programme, the conclusion of several mutual recognition agreements concerning Authorized Economic Operators, and the forthcoming implementation of the Trade Single Window. In this regard, the Representative of Hong Kong, China announced that the first phase of the Trade Single Window was scheduled to be implemented by end-2018.

Members also welcomed the entry into force of Hong Kong, China's first Competition Ordinance in 2015. Noting that merger rules only apply to the telecommunications sector, some Members encouraged Hong Kong, China to consider extending the scope of these provisions. Changes recently introduced by Hong Kong, China to its government procurement regime were also acknowledged, with some Members expressing interest in further discussing its implementation of the GPA and opportunities for foreign supplier participation.

Members took note of the steps taken by Hong Kong, China to upgrade its intellectual property regime and enforcement capacity, and welcomed the adoption of legislation to establish an original grant patent system. Nevertheless, some Members expressed concerns regarding IPR enforcement in the digital environment and the transit of counterfeiting and other infringing goods through Hong Kong, China. They also encouraged Hong Kong, China to press ahead with the adoption of new copyright legislation.

I believe that Hong Kong, China's achievements demonstrate how important an open trade and investment regime is for a successful integration into the global economy. The substantial number of advance questions and the many interventions show the important role Hong Kong, China plays in the WTO. Hong Kong, China has also set an example through its staunch commitment to the free markets and the multilateral trading system, and I am sure Members would like to join me in encouraging it to continue along this path. It is my hope that this Review will be useful to Hong Kong, China for further improving its trade-related regulatory regime. I thank the delegation of Hong Kong, China for its efforts and dedication to this exercise, the discussant for his comments with a positive spirit, and Members for contributing to what has been an informative and successful Review.