RESTRICTED WT/TPR/W/158 - World Trade Organization RESTRICTED WT/TPR/W/158 11 January 2019 (19-0176)...

RESTRICTED

WT/TPR/W/158

11 January 2019

(19-0176) Page: 1/46

Trade Policy Review Body

* In Original language only/En langue originale seulement/En el idioma original solamente.

HONG KONG, CHINA

DRAFT MINUTES OF THE MEETING* HELD ON 26 AND 28 NOVEMBER 2018

Delegations are invited to submit factual corrections, if any, on their own statement to the

Secretariat (Mrs Barbara Blanquart: [email protected], or to [email protected]) no later than 25 January 2019.

Organe d'examen des politiques commerciales

HONG KONG, CHINE

PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 26 ET 28 NOVEMBRE 2018

Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs propres déclarations au Secrétariat (Mme Barbara Blanquart: [email protected], ou [email protected]) le 25 janvier 2019 au plus tard.

Órgano de Examen de las Políticas Comerciales

HONG KONG, CHINA

PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 26 Y 28 DE NOVIEMBRE DE 2018

Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart:

[email protected], o [email protected]) a más tardar el 25 de enero de 2019 las correcciones fácticas que deseen introducir en sus propias declaraciones.

_______________

mailto:[email protected]






WT/TPR/W/158 • Hong Kong, China

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TRADE POLICY REVIEW

HONG KONG, CHINA

DRAFT MINUTES OF THE MEETING

Chairperson: H.E. Mr Eloi Laourou (Benin)

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...................................................... 3

2 OPENING STATEMENT BY THE REPRESENTATIVE OF HONG KONG, CHINA .................. 5

3 STATEMENT BY THE DISCUSSANT ............................................................................... 8

4 STATEMENTS BY MEMBERS ........................................................................................ 10

5 REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND ADDITIONAL

COMMENTS ..................................................................................................................... 40

6 CONCLUDING REMARKS BY THE CHAIRPERSON ........................................................ 45

Note: Advance written questions and additional questions by WTO Members, and the replies provided

by Hong Kong, China are reproduced in document WT/TPR/M/380/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.


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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The eighth Trade Policy Review of Hong Kong, China was held on 26 and 28 November 2018. The Chairperson, H.E. Mr Eloi Laourou (Benin), welcomed the delegation of Hong Kong, China, headed by Ms. Salina YAN, Director-General of Trade and Industry; the rest of the delegation; and the discussant, H.E. Mr. Alfredo Suescum (Panama).

1.2. The Chairperson recalled the purpose of trade policy reviews and the main elements of

procedures for the meeting. The report by Hong Kong, China is contained in document WT/TPR/G/3280 and that of the WTO Secretariat in document WT/TPR/S/380.

1.3. Questions by the following delegations had been submitted in writing before the deadline: Canada; Singapore; Kingdom of Saudi Arabia; Australia; United States; China; European Union; Ukraine; and Guatemala. The following delegations submitted written questions after the deadline:

Japan; Thailand; New Zealand; Chinese Taipei; Chile; Russian Federation; Mexico; Philippines;

Republic of Korea; Malaysia; and Turkey.

1.4. At the time of the previous Review in 2014, Members had noted that Hong Kong, China had maintained one of the most open trade and investment regimes, which had underpinned its continued economic growth, notwithstanding challenging external conditions. Members had also recognized Hong Kong, China's success in consolidating itself as a major exporter and international centre for high-value added services. Likewise, Members had noted with interest the active engagement of Hong Kong, China in bilateral and regional trade agreements, and had acknowledged

its increasingly deep economic and financial integration with Mainland China through the Closer Economic Partnership Arrangement and its supplements.

1.5. At the time of the previous Review, Hong Kong, China was congratulated for being the first Member to notify that it would implement all provisions of the Trade Facilitation Agreement upon its entry into force without making use of any flexibility arrangements. It was also 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. Members noted that Hong Kong, China had continued strengthening its trade-related regulatory framework, mainly by adopting comprehensive competition legislation, and a new Companies Ordinance, and by updating some of its intellectual property laws to keep pace with technological developments.

1.6. Notwithstanding these impressive achievements, Members had identified some areas in which further improvements could be made or where more information was sought. These areas included:

tariff bindings; exemption of statutory bodies and coverage of merger control rules under the Competition Ordinance; SPS measures on specific products; legislation and enforcement of intellectual property rights; and binding the services regime through more extensive GATS commitments.

1.7. Turning to the current review period, as noted in the Secretariat's report, between 2014 and 2017, the economy of Hong Kong, China grew at an average annual rate of 2.8%. This growth rate was slightly lower than at the time of the previous Review. Services, particularly trade and finance,

continued to be the mainstay of the economy, contributing 92% to GDP and 88% to total employment, and reflecting Hong Kong, China's position as a global trade and financial centre. Hong Kong, China remains one of the most open economies in the world, with a trade/GDP ratio of 375%. Its investment regime remains open.

1.8. During the review period, Hong Kong, China adopted measures to further streamline customs procedures and strengthen its role as a transit hub. For example, in December 2015, the Competition Ordinance came into full effect, and some changes to the government procurement regime were

introduced in order to bring regulations in line with the revised GPA. Hong Kong, China also stepped up efforts to address IPR infringing activities in the digital environment. In the telecommunications sector, the authorities reassigned the frequency spectrum for existing mobile services, and reviewed licensing conditions in carrier licences. In financial services, a new Insurance Authority in charge of

supervision and licensing was established in 2017.


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1.9. The Chairperson drew Members' attention to some other issues of interest to them as raised in their advance written questions for this TPR. Regarding the trade regime, Members were keen to obtain more detail about Hong Kong, China's participation in the Closer Economic Partnership Agreement with China and in other RTAS, as well as its involvement in the Belt and Road Initiative.

1.10. With respect to trade measures, Members raised issues pertaining to the implementation of the WTO Trade Facilitation Agreement; the time-frame for the entry into operation of the new Trade

Single Window; the prevention of transhipment of illegal goods; support schemes for innovation and professional services; the development of the local testing and certification industry; measures to enhance transparency of SPS rules; plans to expand the scope of the merger review; and the participation of foreign companies in government procurement. A number of questions were raised regarding the intellectual property regime, relating, in particular, to the proposed amendments to the Copyright Ordinance, the new original grant patent system, actions to combat counterfeiting,

and several aspects of the enforcement of IPRs. Members also raised questions on some services

sectors, including legal services.

1.11. This meeting was a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. The Chairperson looked forward to a productive exchange of views.

1.12. Before the Chairperson opened the floor to discussion, he referred to a request received in connection with the TPR of the East African Community (EAC) scheduled for 20 and 22 March 2019.

He informed Members that the EAC Secretariat had requested ad hoc observer status for the TPR of EAC Members (Burundi, Kenya, Rwanda, Tanzania, and Uganda). The EAC Secretariat had helped in the preparation of the joint Review of its member States. Therefore, in the absence of any objection, he suggested Members accept this request.


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2 OPENING STATEMENT BY THE REPRESENTATIVE OF HONG KONG, CHINA (MS. SALINA YAN)

Introductory remarks

2.1. It is my great pleasure to be here today to represent Hong Kong, China (HKC) in this Trade Policy Review (TPR) meeting. HKC attaches great importance to the TPR Mechanism, which is one of the important functions of the World Trade Organization (WTO) to enhance transparency and

foster a better understanding of the trade policies and practices of WTO Members. It is also a sentimental moment for me personally coming back to the WTO ground some 10 years after my assignment as Deputy Permanent Representative of HKC to the WTO from 2006 to 2009.

2.2. I would like to begin by thanking Ambassador Laourou for chairing the meeting, Ambassador Suescum for serving as the Discussant, and all of you for coming today to the meeting. I would also

like to thank the WTO Secretariat for all its hard work in preparing for this review.

The macro picture

2.3. Let me begin with an update of our macroeconomic developments since the last Review in 2014.

2.4. HKC's economy grew by 2.4% in 2015 and 2.2% in 2016, followed by a pick-up in growth to 3.8% in 2017 and 3.7% in the first three quarters of 2018 alongside global economic expansion. Considering, however, the downside risks and rising headwinds in the external environment, the economy is forecast to grow by 3.2% in 2018 as a whole.

2.5. As an open and externally-oriented economy, HKC is highly dependent on international trade with total exports and imports of goods and services amounting to over 370% of our GDP in 2017. In the same year, our total merchandise imports and exports amounted to US$590 billion and

US$550 billion respectively. While total exports have increased by close to 10% so far in 2018, the prospect for trade next year is far from certain. Meanwhile, with high liquidity coverage and capital adequacy ratios and a sound regulatory regime, our banking system is robust and our financial market has been working smoothly, despite external uncertainties.

2.6. HKC continues to be a staunch supporter and practitioner of free trade and open investment. Under the "One Country, Two Systems" principle which is enshrined in our Basic Law, HKC is a free port and a separate customs territory. We continue to impose no tariff on the importation of goods, and no restrictions on capital flows. We uphold our fine tradition of offering a level playing field, and a business-friendly environment that is underpinned by the rule of law, compliance with international regulations, and a simple tax regime. And as pointed out in the Secretariat report, we have not

taken any anti-dumping, countervailing or safeguard measures. These principles and policies will remain the bedrock of HKC's further development.

Staunch supporter of the multilateral trading system

2.7. Similarly, the multilateral trading system embodied in the WTO remains the cornerstone of HKC's trade policy. We firmly believe that a strong and well-functioning multilateral trading system provides stability for international trade and drives economic growth.

2.8. As a founding Member of the WTO, HKC pitches strongly for upholding the rule-based

multilateral trading system and preserving the credibility and effectiveness of the WTO. In addition to being the first WTO Member to formally accept the Agreement on Trade Facilitation and implement all its relevant provisions upon its entry into force, HKC was also amongst the first participants of the Information Technology Agreement (ITA II) to complete the modification of the tariff schedule before 1 July 2016 to implement in a timely manner the tariff elimination of the 201 products agreed under ITA II. With services contributing to over 92% of our GDP, HKC has also been participating actively in the services area, notably discussions on Domestic Regulations.

2.9. HKC will continue to work with WTO Members to make further progress on subjects for which Ministerial Decisions have been made at previous Ministerial Conferences, as well as to work towards eventual multilateral outcomes on issues such as e-commerce, Investment Facilitation and MSMEs


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which we consider highly relevant to the WTO and the global economy. In light of the challenges facing the multilateral trading system, HKC stands ready to engage constructively in discussions to modernize the WTO while upholding its core values.

HKC's free trade agreements

2.10. In addition to participating in the WTO, HKC also seeks to push the free trade frontier forward through entering into free trade agreements (FTAs) with our trading partners. Strong legal backing

for us to do so can be found in the Basic Law which provides that the Hong Kong Special Administrative Region may on its own, using the name "Hong Kong, China", maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organizations in the appropriate fields, including economic, trade, financial and monetary, etc. And we take it seriously that FTAs should be consistent with WTO rules. Since the last TPR, we have signed FTAs with the Macao Special Administrative Region, the Association of

Southeast Asian Nations (ASEAN) and Georgia. Coupled with the ones with Mainland China, New Zealand, the European Free Trade Association (EFTA) and Chile, we have now signed seven FTAs. We have enriched the content of the "Mainland and Hong Kong Closer Economic Partnership Arrangement" (CEPA) by signing supplementary agreements on trade in services, investment, and economic and technical cooperation. On 15 November, HKC and Australia announced the conclusion of our FTA and Investment Agreement negotiations, and are working to bring these comprehensive and high-quality agreements into force as early as practicable. In addition to FTAs, we have signed

40 double taxation agreements and 20 Investment Protection and Promotion Agreements with trading partners around the globe.

Sectoral developments

2.11. Turning to sectoral developments, in addition to being a regulator, the HKSAR Government actively performs its role as a "facilitator" and "promoter" of business and development opportunities. Let me give a few examples.

Customs and trade facilitation

2.12. HKC's customs procedures are premised on operational efficiency as well as robust enforcement. Since the last Review in 2014, our Customs and Excise Department has entered into Mutual Recognition Arrangements (MRAs) on Authorized Economic Operators (AEOs) programmes with several customs administrations including Australia, Japan, Malaysia, New Zealand and Thailand. Accredited AEOs from economies with MRAs with us enjoy customs facilitation in Hong Kong, and likewise, those economies provide reciprocal facilitation for Hong Kong AEOs.

2.13. HKC is also pressing ahead with the phased implementation of the Trade Single Window for one-stop lodging of all the 50-plus trade documents and submissions with Government for trade declaration and customs clearance purposes, which will help save time and cost for the trading community. Phase 1 is scheduled to be launched in end 2018.

Intellectual property rights

2.14. As an international financial and business centre, HKC attaches great importance to the protection of intellectual property rights (IPR) and adopts a multi-pronged strategy for IP protection,

comprising a comprehensive legislative framework, rigorous enforcement action, sustained public education, collaboration with stakeholders as well as close international cooperation among law enforcement agencies.

2.15. Regarding IP law, it is one key milestone for HKC to have amended its patent law in June 2016 to provide the legal framework required for establishing an original grant patent ("OGP") system. We aim to launch the OGP system in 2019 the earliest, as part of our effort to promote IP commercialisation. On copyright, HKC will amend the law to enhance the copyright exceptions for

people with print disabilities along the standards required by the Marrakesh Treaty.

2.16. At the same time, HKC spares no efforts in protecting the legitimate interest of IPR owners and acting against counterfeit goods through dedicated enforcement actions, risk-based analysis, exchange of intelligence and strategic manpower deployment.


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Financial services

2.17. Turning to financial services which contribute close to one-fifth of our GDP, HKC's financial markets are characterized by a high degree of liquidity and operate under effective and transparent regulations, which meet international standards. Since April this year, we have launched a new listing regime to facilitate the listing of companies from emerging and innovative sectors, including innovative companies with weighted voting rights structure and pre-revenue/pre-profit biotech

companies. We have also put in place a legal framework for a new fund structure in the form of open-ended fund company ("OFC") in HKC. In pursuit of sustainable growth and in view of rising global demand for green financial products, the Government has launched the Green Bond Programme to promote HKC as the green finance hub in the region.

2.18. On the regulatory front, an Insurance Authority was set up in June 2017 for the independent regulation of insurance companies. A new licensing regime regulating insurance intermediaries is

expected to commence operation in June 2019. During the review period, we have also amended our regulation on anti-money laundering and counter-terrorist financing in order to extend the customer due diligence and record-keeping requirement to designated non-financial business and professions. Specifically, the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Ordinance 2018 introduces a licensing regime for trust and company service providers, while the Companies (Amendment) Ordinance 2018 requires companies to maintain beneficial ownership information. All these will help enhance transparency and thus

ensuring market integrity.

Innovation and technology

2.19. Finally, an update on the institutional arrangement for the development of innovation and technology in Hong Kong. The Innovation and Technology Bureau (ITB) was established in November 2015 with the mission of fostering a diversified and knowledge-based economy, thereby raising the competitiveness of HKC and improving the quality of life of our citizens. A series of

initiatives have been launched to promote research and development activities, upgrade our

technological infrastructure, build a vibrant ecosystem for start-ups, and pool and nurture more technology talent. Among others, a Steering Committee on Innovation and Technology chaired by the Chief Executive was set up in 2017 to steer, coordinate and take forward innovation and technology development and making HKC a forward looking smart city.

Concluding remarks

2.20. With your indulgence, I have briefly outlined the beliefs that underpin our trade and economic

policies, our major economic policy initiatives, and our efforts on the ground to facilitate trade and commerce while maintaining system integrity. We fully appreciate that apart from our efforts to build a robust institutional framework, enhance our competitiveness and maintain a business-friendly environment, a set of transparent and predictable multilateral rules for doing business is of utmost importance for our and the global economy to thrive. In this regard, the multilateral trading system has proven to be crucial to the continued growth and sustainable

development of Members' economies. Given the complexity of the global supply chain, trade barriers,

be they tariffs or non-tariffs, will result in higher cost for business and consumers alike. HKC will continue to play an active and constructive role in strengthening the multilateral trading system to promote free and open trade and will join efforts to address challenges facing the WTO.

2.21. Thank you again for participating in HKC's TPR and for the more than 300 questions that have been raised. We have replied to most of them in the time available and we look forward to further exchanges today. Thank you.


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3 STATEMENT BY THE DISCUSSANT

3.1. I wish, first to extend a very warm welcome to H.E Ms Salina YAN, Hong Kong's China's Director General for Trade and Industry, Ms. Irene Young, Permanent Representative, and I extend my sincerest welcome to the rest of your delegation.

3.2. I want to stress before going on how helpful, knowledgeable, skilled and diligent the Geneva-based delegation has been in helping prepare for today's exercise. The Mission is well-known

here for being vocal and constructively engaged. More than having made its presence well felt, the delegation is well respected, and HKC can be very proud of its representation, which reflects the level of its commitment to the multilateral trading system.

3.3. It is a privilege and honour for me to participate today as the discussant in HKC's eighth Trade Policy Review. At the previous Review, in 2014, Members felt that the exercise had been fruitful,

characterized by open and constructive engagement, and provided everyone with a better

understanding of HKC's trade and trade-related policies, the challenges it faced, as well as its vision for trade in the future.

3.4. I had thought that perhaps I would start my intervention with a brief review of the major points in the last TPR to help stage the discussion for a proper appreciation of the progress that has been made since. But since Ambassador Laourou and yourself have covered that, it means I can pretty much cross out half of my statement which I am sure everybody will be grateful for and just move on to basically the progress since then.

3.5. In my opinion there has been very palpable progress in many of the issues that Ambassador Laourou mentioned in his review of the last TPR. Keeping in mind the openness of Hong Kong, China's economy and trade regime, Members today presented questions on many of the same issues as during the last Review.

3.6. The GDP grew at a very slightly lower rate than during the period of the previous review. However, the economy continues to be based on strong fiscal and financial fundamentals. There has been a significant budget surplus which has allowed increased investment to address internal

challenges such as high housing and land prices, income gaps, health care, and persistent issues related to an aging population. WTO Members have posed questions regarding these challenges.

3.7. Despite these internal challenges, and external challenges such as increased volatility in international markets and rising trade protectionism, HKC remains one of the most open economies in the world. Services contributes only slightly less to the economy and the same to employment, 93% and 88% respectively, than at the time of the previous Review. HKC has since concluded new

trade agreements with Macao, China, ASEAN, Georgia; and four subsidiary agreements to the CEPA with mainland China.

3.8. In December 2014, HKC followed up on its promises concerning the Trade Facilitation

Agreement, to become the first Member to ratify the agreement. It also designated all the TFA provisions under Category A, to implement immediately. It has taken steps to further streamline exceptionally efficient customs procedures. As examples, HKC has implemented transhipment facilitation measures, improved IT in road cargo tracking systems, has begun implementation of a

trade single-window, and implemented its authorized economic operator programme. HKC has also implemented new measures to facilitate and promote FDI.

3.9. All applied tariff rates are zero; however, half the schedule is still unbound. Members have presented questions regarding possible expansion of commitments in goods, agriculture as well as services. Members have expressed interest once again on excise duty on spirits; as well as the first registration tax for electric vehicles (EVs) and the number of EVs sold under a one-for-one scheme. Export controls remain on four types of products, same as in the last TPR, and these also continue

to interest Members.

3.10. Another area of continued interest is the implementation of competition legislation, especially

on possible plans to expand coverage of merger provisions.


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3.11. HKC has prioritized creative industries and innovation, and would like to further develop as a regional IP trading hub. It has invested heavily in meta-data AI systems to detect violations, among other improvements. However, it's regime is largely unchanged in important ways. Additionally, a planned copyright bill which was foreseen at the last Review, failed unfortunately to pass. Members have many questions here again regarding this.

3.12. On the Multilateral front, besides the quick work on the Trade Facilitation Agreement, HKC

remains a committed supporter of the multilateral trading system. It has an excellent record for notifications. It participates pro-actively and advocates a prompt conclusion to ongoing negotiations in all areas. It is open-minded about the way forward on the post-Bali work programme, and participates in very important ways, for example, in joint statement initiatives.

3.13. Members have presented many questions for this Review. I think that we all realize that we are addressing an economy which is consistently recognized as one of the world's multilateral trading

system's most open and most business-friendly. It is good to pose questions but it is difficult to question the Master.

3.14. Overall, HKC trade regime, its openness and macroeconomic policies have been forces for stability and improvement. This is particularly commendable given the current global trade and financial environment.

3.15. Before I conclude, I would like to thank HKC and all Members for their constructive engagement in carrying out thus far this review, and the Secretariat for their usual hard work.

Ambassador Laourou for your leadership. These exercises are particularly useful by providing a sort of guide for action on trade and trade-related policies. I would be extremely remiss if I fail to acknowledge the role that Irene, Ms. Young, HKC's Permanent Representative, has played as past Chair in strengthening this Body, and increasing the usefulness of these reviews. Thank you all for your hard work.

3.16. I do not foresee presenting any questions of my own. Members have sufficiently covered issues where they may need additional clarifications. Hopefully I have been and may continue to be

of service throughout this Review in presenting helpful points for helpfulness and I wish everyone a productive and useful Review. Thank you.


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4 STATEMENTS BY MEMBERS

CANADA

4.1. Hong Kong China has continued to uphold strong macroeconomic principles which have enabled it to be one of the most open, trade-friendly and consequently, most prosperous economies in the world. Strong policies over the course of the review period have allowed Hong Kong China to maintain financial stability and sustain economic growth. In this regard, we commend Hong Kong

China for again maintaining a substantial surplus in public finances over the course of its review period, which has also allowed for increased spending on improving infrastructure and social welfare. We hope that Hong Kong China will continue with its sound trade and investment policies that have allowed it to be one of the leaders in the world for economic freedom, competitiveness, and ease of doing business.

4.2. We commend Hong Kong China's efforts to continue to enhance its trade and investment policy

regime over the review period. As the report by the WTO Secretariat notes, Hong Kong China was the first member to accept the Trade Facilitation Agreement and designate all provisions under Category A for immediate implementation, while also becoming a signatory to the Agreement on Government Procurement (GPA) and the expansion of the Information Technology Agreement. Canada is interested in learning more about the particulars of Hong Kong China's implementation of the GPA during this TPR review in order to better inform our understanding of Hong Kong China's government procurement policy framework.

4.3. We recognize Hong Kong China's strong efforts to ensure its goods transparency commitments to WTO Members are fulfilled. By doing so, Hong Kong China is supporting the WTO's monitoring function and the ability of other Members to understand the policy actions taken by Hong Kong China. Thank you for that work.

4.4. We also applaud the continuous and proactive participation of Hong Kong China in the WTO.

In this regard, we note positively that Hong Kong China is taking an active role in the MC11 joint initiatives on Investment Facilitation for Development, MSMEs and Electronic Commerce. Hong Kong

China also appears to be taking steps towards upgrading its intellectual property (IP) regime through a host of new legislation and statutory amendments. We would welcome information on the status of Hong Kong China's implementation of international IP treaties since the last Trade Policy Review in 2014, and are also interested in learning about Hong Kong China's plans to further enhance its IP regime in the future.

4.5. Finally, we note that Hong Kong China is actively seeking opportunities to sign free trade

agreements with its trading partners. Hong Kong China's ambitious agenda includes the recent entry into force of the Hong Kong–Macao Closer Economic Partnership Agreement, the signing of a Free Trade Agreement with Association of Southeast Asian Nations and the Republic of Georgia, and the recent conclusion of an FTA with Australia. We believe this further underscores Hong Kong China's strong commitment to supporting the free, rules-based trading system – a commitment that Canada shares.

4.6. Canada and Hong Kong China continue to share a strong bilateral relationship that reflects

longstanding political, commercial, and people-to-people ties. This relationship is founded upon our common values and interests, including our mutual respect for the rule of law, transparency, and openness. This is why many Canadian companies continue to conduct business in Asia through Hong Kong China, supported by its business-friendly trade and investment policies, transparent regulatory framework, sound legal system, and highly educated workforce.

4.7. We look forward to continuing to work with Hong Kong China here at the WTO and through other bilateral and multilateral forums, such as APEC, to advance our common interests in order to

help to preserve and ensure an effective rules-based trading system.

4.8. I wish my Hong Kong China colleagues success during this review.


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SINGAPORE ON BEHALF OF ASEAN

4.9. At the outset, ASEAN is pleased to note the significant progress achieved in dialogue relations between ASEAN and Hong Kong, China. We welcome the signing of the ASEAN-Hong Kong, China Free Trade Agreement and the ASEAN-Hong Kong, China Investment Agreement in 2017, which reaffirms our commitment to further strengthen our economic relations. With broader liberalization and deeper integration, these two Agreements will create more trade and investment opportunities

and stimulate economic development in the region.

4.10. Total merchandise trade between ASEAN and Hong Kong, China in 2017 reached USD106.9 billion, increasing by 14.6% from 2016 and positioning Hong Kong, China, as the sixth largest trading partner of ASEAN. Total foreign direct investment (FDI) flows from Hong Kong, China to ASEAN amounted to USD7.8 billion, or 5.7% of ASEAN's total FDI in the same year.

4.11. It is commendable that Hong Kong, China remains one of the world's most open economies

with a business and investment-friendly environment. Trade plays an essential role in Hong Kong, China's economy, representing 375% of GDP. Hong Kong, China has maintained transparent and free trade policies, and has taken steps to continually improve its regulatory framework and infrastructure. We believe that these efforts will contribute to sustainable and resilient economic growth.

4.12. ASEAN highly commends Hong Kong, China for its staunch support for the multilateral trading system. Hong Kong, China was the first WTO Member to accept the TFA and has upheld an excellent

record of providing notifications to the WTO. Moreover, Hong Kong, China's active participation in the Information Technology Agreement and its expansion agreement as well as the E-Commerce and MSMEs discussions also deserve recognition.

4.13. ASEAN expresses our appreciation to Hong Kong, China for its written responses to the questions submitted by some ASEAN Members. We wish Hong Kong, China a successful trade policy

review.

SINGAPORE

4.14. Singapore and Hong Kong, China share longstanding and close economic relations. Hong Kong, China has consistently been one of Singapore's top economic partners. In 2017, Hong Kong, China was Singapore's fifth largest trading partner, with bilateral trade amounting to 69.6 billion Singapore dollars, an 8.5% increase year-on-year. Our mutual investment figures are also a testament to our strong links. As of end-2016, Singapore's cumulative foreign direct investment (FDI) into Hong Kong, China was 52.8 billion Singapore dollars, making Hong Kong, China our third

largest investment destination. Hong Kong, China's cumulative FDI into Singapore also hit 52.8 billion Singapore dollars as of end-2016. Singapore's key business interests in Hong Kong, China span across sectors, including healthcare, financial services, lifestyle services, education and property. We look forward to further strengthening our economic cooperation.

4.15. Hong Kong, China remains one of the world's most open economies and maintains a business and investment-friendly regime. It has not rested on its laurels. For example, we note that during the period under review, several new initiatives have been implemented that will boost further

business links between Hong Kong, China and other WTO Members.

4.16. In the WTO, the Singapore delegation enjoys excellent working relations with the Hong Kong, China delegation, ably led by Permanent Representative Irene Young. Hong Kong, China's strong support for the rules-based multilateral trading system, is evidenced by its consistently active and constructive participation in all areas of the WTO's work, including through Permanent

4.17. Representative Irene Young's able chairmanship of various WTO Committees over the years, such as the Council for Trade-Related Aspects of Intellectual Property Rights, the Trade Policy Review

Body and the Committee on Trade and Environment. Hong Kong, China is exemplary in its excellent record of providing notifications to the WTO. Members' timely and complete notifications are crucial

to the WTO's monitoring function, and contribute to the predictability and transparency of the international trading system.


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4.18. Singapore and Hong Kong, China share very similar economic outlooks, being small and open economies sensitive to global developments. Like all small and open economies, Hong Kong, China is susceptible external challenges, such as heightened volatility in international markets and rising trade protectionism. We encourage Hong Kong, China to continue to stay the course by resisting protectionism and intensifying its efforts to diversify its economy and strengthen the competitiveness of its pillar industries.

4.19. We wish Hong Kong, China every success in its eighth Trade Policy Review.

KINGDOM OF SAUDI ARABIA

4.20. An important trading center since the Tang dynasty, with an economy growth of 3.8% in 2017, Hong Kong, China, remains a leading trade center in the world. Hong Kong remains one of the most open economies. According to The World Bank in its Doing Business 2018 report, Hong

Kong is ranked as the fifth easiest place to do business in the world.

4.21. Hong Kong, China is to be recognized for having developed and strengthened its economy by establishing an open and business-friendly environment, a strong financial system and modern infrastructure.

4.22. Hong Kong, China, undertook reforms to stimulate the economy and strengthen policies to maintain its financial stability. These reforms together with the rapid growth of services' trade, the continued in-flow of foreign direct investment and healthy budget surplus will undoubtedly allow Hong Kong, China, to continue to perform strongly.

4.23. Since the last Trade Policy Review, Hong Kong, China, has continued to leverage on the advantages under the "One Country, Two Systems" and "The Belt and Road Initiative" which both inject new impetus to the country's economy.

4.24. The strengthening global demand should be conducive to manufacturing and trading activities in Asia, to the benefit of Hong Kong's exports. Further improvement in inbound tourism should also render support to Hong Kong's exports of services.

4.25. The Kingdom of Saudi Arabia and Hong Kong, China are important trading partners. During

the period of review, initiatives were taken to develop trade and investment relations between the Kingdom of Saudi Arabia and Hong Kong, China. The volume of trade exchange between the Kingdom of Saudi Arabia and Hong Kong, China reached USD613 million. The Kingdom of Saudi Arabia primarily exports chemicals and petrochemicals to Hong Kong, China, and imports information technology equipment

4.26. In closing, I would like to congratulate Hong Kong, China, for its solid economic performance

over the review period and its commitment to the reinforcement of the multilateral trading system world trade through its active and positive engagement in the WTO.

4.27. I wish the delegation of Hong Kong, China a very successful Trade Policy Review.

AUSTRALIA

4.28. Australia values its close and productive relationship with Hong Kong, China: multilaterally, in the WTO and APEC; and bilaterally.

4.29. We commend Hong Kong, China for its longstanding support and contribution to the WTO and

the multilateral trading system as highlighted in the country report. We share Hong Kong, China's objective of an open and stable global economy supported by rules that promote economic growth and development, trade liberalization and free markets.

4.30. We appreciate Hong Kong, China's record of active participation across the WTO agenda and the high standard it sets, including, the important role it played in the expansion of the Information

Technology Agreement (ITA-2) and the implementation of the Trade Facilitation Agreement - as the first member to accede to the TFA.


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4.31. We also recognize Hong Kong, China's strong contribution to the important work undertaken in the WTO's regular committees and applaud Hong Kong China's excellent record on the provision of timely notifications - setting a good standard for other Members to emulate.

4.32. We appreciated Hong Kong China's support for Australia's recent accession to the WTO Agreement on Government Procurement, and appreciated Hong Kong, China's constructive approach and engagement in emerging issues, such as the Joint Statement initiatives on e-commerce, services

domestic regulation, investment facilitation and MSMEs.

4.33. Australia has extensive and enduring interests in Hong Kong, China, built on strong people-to-people links, common values and interests, and long-standing trade and investment ties. Hong Kong, China's ongoing success and prosperity is important to Australia, to our region and globally. Approximately 100,000 Australians reside in Hong Kong, China which is Australia's leading business base in north-east Asia and an important economic gateway to mainland China and the region.

4.34. In 2017, Hong Kong, China was Australia's twelfth largest trading partner, and our fifth largest source of foreign investment. Students, working holiday makers and tourists flow in both directions. Education cooperation, plays an important role in facilitating trade and investment, enhancing growth and prosperity, deepening mutual understanding and expanding people-to-people links between our economies.

4.35. Reflecting our growing bilateral economic links, as Director General Yan highlighted, on 15 November Australia and Hong Kong, China announced the conclusion of negotiations on the

Australia-Hong Kong Free Trade Agreement. This marks a significant milestone in our already substantial trade and investment relationship. The FTA is a comprehensive, ambitious agreement that will enhance the trade and investment relationship between Australia and Hong Kong, China. It will include reciprocal elimination of barriers to trade in goods, commitments on access for services suppliers, improved conditions for two-way investment, and rules to address contemporary commercial issues, including to enhance the digital economy.

4.36. In addition, earlier this year Australia and Hong Kong, China signed an agreement that

mutually recognises the Hong Kong Authorized Economic Operator Programme and the Australian Trusted Traders Programme. This Mutual Recognition Arrangement provides traders who are members of the respective programmes with valuable trade facilitation benefits in both jurisdictions.

4.37. During the period of this Review, Hong Kong, China achieved commendable results in strengthening its global economic links. In addition to the FTA with Australia, it concluded FTA negotiations with Georgia and with ASEAN's ten Member States. We support Hong Kong, China's

efforts to more deeply engage with bilateral and plurilateral partners where this complements its participation and commitment to the multilateral trading system.

4.38. Australia recognises Hong Kong, China's strong services-based economy and relatively open services market. But we consider there is more Hong Kong, China could do to liberalize its services

market, particularly in the professional services sector. Australia is following closely the Hong Kong Law Society's recent proposal to introduce new restrictions on lawyers who qualified outside the city.

4.39. Finally, we thank Hong Kong, China for its replies to our written questions and we will review

them carefully.

4.40. We look forward to continued work with Hong Kong, China to support and strengthen the multilateral trading system and our bilateral trade and investment relationship.

4.41. We wish Hong Kong, China a very successful Trade Policy Review.

UNITED STATES

4.42. The United States commends the Hong Kong Government for its commitment over the years to an open and free market economy. We also congratulate Hong Kong on its 24th consecutive first

place ranking in The Heritage Foundation's 2018 Index of Economic Freedom. Going forward, we remain encouraged by the Hong Kong Government's assertion that its strong rule of law, open and market-oriented trade policy, and level playing field for business remain the bedrock of Hong Kong's


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prosperity, and we hope that Hong Kong will continue to pursue these policies, including with respect to emerging sectors such as information technology, e-commerce and media. At the same time, we are concerned about developments that run counter to the "one country, two systems" principle and the implications of this trend for Hong Kong's historic role as a center for open and free trade.

4.43. The United States has a strong trade and investment relationship with Hong Kong that is of great mutual benefit. It is currently our nineteenth largest goods trading partner, with

USD47.3 billion in total two-way goods trade during 2017. Total U.S. goods and services trade with Hong Kong totalled USD69 billion in 2017. The stock of U.S. foreign direct investment (FDI) in Hong Kong was USD82.2 billion in 2017, a 17.8% increase from 2016, primarily concentrated in the finance/insurance, non-bank holding companies, and wholesale trade sectors. The stock of Hong Kong FDI in the United States was USD11 billion in 2016, down 1.7% from the previous year, mostly in the manufacturing, real estate, and wholesale trade sectors.

4.44. Nevertheless, there are improvements that Hong Kong could make to its trade and investment regime. We recognize that Hong Kong generally maintains an effective IP enforcement capacity, which is supported by a judicial system that supports IPR enforcement efforts through deterrent fines and criminal sentences, as well as youth education programs that discourage IPR-infringing activities. We have serious concerns, however, regarding digital piracy and IPR-infringing products transiting through Hong Kong.

4.45. First, Hong Kong's lack of progress in modernizing its copyright legislation allows it to become

vulnerable to digital piracy. In the absence of an updated copyright system. While we welcome increased enforcement efforts by Hong Kong in the absence of an updated copyright system, legislative changes in Hong Kong are necessary to counter the rapid growth of digital piracy and to provide copyright holders legal protections to stop the large-scale, Internet-based reproduction and dissemination of their works.

4.46. Second, while the Hong Kong Customs and Excise Department routinely seizes IPR-infringing

products arriving from mainland China and elsewhere, the United States is concerned by reports of

significant quantities of counterfeit pharmaceuticals, luxury goods, and other infringing products continuing to transit through Hong Kong to both the local market and markets outside of Hong Kong. To address this serious problem, we have recommended that Hong Kong implement "Know Your Customer" rules that require freight forwarders to obtain detailed information on the credentials of their customers, to focus on the end user and the end use of the product, and to inquire about the facts surrounding a transaction if certain red flags appear.

4.47. Separately, we encourage the Hong Kong government to continue to make efforts to follow the best practices of administrative transparency in the conduct of its economic policy decision-making. In one recent negative example, a sudden and non-transparent decision on tax rebate policies, made without significant consultation with industry, resulted in the decimation of Hong Kong's emerging market for electric vehicles, even amid worsening local air pollution conditions.

4.48. In closing, I would like to emphasize that we continue to highly value our close work with the

Hong Kong Government, both bilaterally and in the WTO. We congratulate Hong Kong on its recent trade policy advances with partners in ASEAN and Australia, and we encourage Hong Kong to be a proactive voice in APEC, sharing its wisdom based on the success of its free market approach. We thank the delegation of Hong Kong for its willingness to consider these points and offer good wishes to the Government of Hong Kong for a successful and productive Trade Policy Review.

CHINA

4.49. We are pleased to see that since the seventh Trade Policy Review in 2014, the economy of

Hong Kong, China grew at an average annual rate of 2.8% with a pick-up in growth to 3.8% in 2017. We concur with the Secretariat that Hong Kong, China is one of the world's most open economies, with exports and imports of goods and services representing 375% of GDP. In addition to its free trade, the business and investment-friendly environment of Hong Kong, China is also well recognized

by its transparent regulation regime, simple taxation and low tax rates, well-developed transport and telecommunications infrastructure, which has been evaluated by World Bank as the fifth easiest

place to do business in the world in the Doing Business 2018 Report. With those challenges noted in


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the last review, we are pleased to see that the inflation showed its multi-year downward trend, from 4.4% in 2014 to 1.5% in 2017. But challenges in several other areas still remain, such as income disparity and an ageing population. We encourage Hong Kong, China to continue efforts to address them.

4.50. Besides, we commend Hong Kong, China's strong support to the multilateral trading system and resistance to the unilateralism. We are impressed by its exemplary role in upholding the WTO

rules and active participation in all WTO activities, in particular by the fact that it is not only the first WTO Member to notify the Trade Facilitation Agreement without any flexibilities, but also the first one to accept it. We look forward to seeing Hong Kong, China's continued role and contribution to the WTO.

4.51. With regard to the bilateral front, Hong Kong, China and the mainland of China continue to maintain a close relationship in the trade and investment area. During the review period, four

subsidiary agreements concerning services liberalization in Guangdong, trade in services, investment, and economic and technical cooperation were signed under the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA) which provides a full-fledged institutionalized arrangement for the bilateral trade and investment. Hong Kong, China's active participation in the Belt and Road Initiative has already resulted in fruitful outcomes. Facilitated by the Ministry of Commerce of China, and Trade and Development Bureau of Hong Kong, China, a number of joint business activities were held by the two sides to explore the business opportunities in the Belt and

Road region. Up to date, more than 50 agreements of intention of investment cooperation have been reached with Belt and Road countries.

4.52. To better understand the latest development in Hong Kong, China's trade policy, we have raised some questions regarding polices on testing and certification, and intellectual property. We appreciate the replies provided by Hong Kong, China and have some further questions to be submitted later today.

4.53. To conclude, I wish this Review a complete success.

EUROPEAN UNION

4.54. As the Secretariat's report notes, Hong Kong, China remains one of the most open and liberal economies in the world, with some of the highest rankings in world indicators of economic freedom, competitiveness, and ease of doing business. Hong Kong, China is an impressive economic powerhouse – something I had recently the pleasure to observe personally on the spot.

4.55. With an average annual growth rate of 2.8% during the review period and of 3.8% in 2017,

Hong Kong, China's sound economic fundamentals have enabled its economy to take advantage from the recovery of the global economy.

4.56. Hong Kong, China is a highly outward-oriented economy, with a trade-to-GDP ratio of 375%

in 2017 and a ranking at the top places in terms of merchandise trade, financial external transactions, and stock market capitalization. Trade is vital for Hong Kong, China's economy and, as such, its economy is strongly influenced by global and regional economic conditions. Rising trade protectionism and growing global commercial tensions may thus particularly affect the good health

of Hong Kong, China's economy.

4.57. In this context, the conclusion of five Free Trade Agreements since the last review (with Macao, ASEAN, Georgia, Maldives and Australia, all concluded between 2017 and 2018) is a remarkable feat in these testing times of rising trade protectionism and a testimony to Hong Kong, China's belief in free trade.

4.58. The EU appreciates that, during the years under review, Hong Kong, China has played an active role in the WTO, in particular through Ms. Irene Young, our very dynamic fellow Permanent

Representative. We fully share Hong Kong, China's objectives to foster progressive global trade liberalization and to strengthen the rules of the multilateral trading system. In this respect, the EU

commends Hong Kong, China for having scheduled all provisions in Section I of the Trade Facilitation Agreement as Category A commitments, and for their timely implementation upon the entry into force of the agreement on 22 February 2017.


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4.59. The EU would also like to acknowledge the active and positive role that Hong Kong, China played in the preparations of the 11th WTO Ministerial Conference as well as Hong Kong, China's participation in the Joint Statement initiatives on e-commerce, domestic regulation in services, investment facilitation and MSMEs.

4.60. Following the failure of the Conference to achieve any meaningful outcome and given the threat on the WTO stemming from the escalation of unilateral measures, the WTO is today facing

the deepest crisis since its inception and it is in dire need of reform. In this regard, the EU knows that it can count on Hong Kong, China to play an engaged and constructive role, actively contributing to on-going efforts deployed to modernize the WTO.

4.61. We recall that the lack of nuance in the distinction between developed and developing countries is no longer reflecting the economic reality of some developing countries and that this has been an obstacle to progress of negotiations in the WTO. Given that in practice Hong Kong, China

has not made any use in recent years of special and differential treatment, we would naturally welcome to see Hong Kong, China reconsidering its status of developing Member, or agreeing to forsake special and differential treatment in future agreements.

4.62. A word on the EU's bilateral relationship with Hong Kong, China. The EU and Hong Kong, China are important trade and investment partners. The EU continues to be one of Hong Kong, China's main trading partners and trade relations have been growing steadily. In 2017, the EU maintained its position as Hong Kong, China's second largest trading partner after Mainland China.

Hong Kong, China is the EU's 17th largest trading partner for trade in goods. For trade in services, Hong Kong, China is EU's most important trading partner in Asia after China, Japan and Singapore.

4.63. Hong Kong, China plays a key role as a regional hub for EU companies given its unique position and ample experience as service providers and facilitating EU companies' access to the Mainland and other major markets in the region. The rule of law in Hong Kong, China, civic liberties and freedoms, and a light regulatory environment are key to all of this. This is an environment in which

European companies feel at home – or at least: comfortably at work. Preserving the unique

characteristics of Hong Kong, China's system will be key to preserve Hong Kong, China's competitiveness in the future.

4.64. Because of the close ties with Hong Kong, China, the EU is watching with interest the developments that could affect the business and economic environment in Hong Kong, China as well as trade policy between Hong Kong, China and Mainland China. We understand that the parties are working closely and cooperatively in order to reach a full liberalization of trade in services.

Hong Kong, China, in its responses, declared that the parties have been taking steps to achieve this goal progressively and we would welcome additional information in this respect.

4.65. Because of the strong engagement of EU companies in Hong Kong, China, the EU welcomes the adoption of Hong Kong, China first comprehensive competition law in 2012 and encourages Hong Kong, China to step up efforts on the enforcement of the law. The EU also encourages an extension of the scope of the Ordinance, to comprehensively cover all sectors of the economy, as

well as all undertakings carrying out economic activities.

4.66. While the EU understands that some changes in public procurement practices have been recently introduced and looks forward to discussing this in detail, the EU expects that all government procuring processes are run on an open and non-discriminatory basis in the future, which would allow more EU companies the opportunity of contributing to the economy of Hong Kong, China.

4.67. With respect to IPR protection, the EU calls on Hong Kong, China to continue the efforts deployed thus far to stem traffic of counterfeit goods, and reflect on additional measures to address the current concerning situation. Finally, the EU is looking forward to the adoption and

implementation of the new copyright bill, which finally would bring Hong Kong, China's copyright regime in line with the laws in force in developed Members.

4.68. In closing, I would like to emphasize that the EU continues to value the close work with Hong

Kong, China to strengthen and build on the WTO's rules-based foundation.

4.69. On behalf of the EU, I wish Hong Kong, China a very productive and successful review.


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UKRAINE

4.70. Ukraine highly appreciates the effective partnership cooperation with Hong Kong, China, across the WTO bodies on different trade issues of mutual interest. Also, we would like to underline very constructive approach of Hong Kong, China, to negotiations on wide range of negotiating elements within the WTO agenda, domestic regulation in services, e-commerce, fishery subsidies to name a few.

4.71. According to the Ukrainian statistics, the trade turnover between Ukraine and Hong Kong, China, in 2017 amounted to almost USD150 million (timber; sunflower seed oil; meat and meat products; flour; engines; pumps; technical equipment etc).

4.72. Within this TPR exercise Ukraine has submitted a list of specific questions and is seeking clarification on the following topics:

• Sanitary and phytosanitary measures;

• Fisheries; • Import controls and requirements to food products; • Financial services; • Intellectual Property Rights; • Investment Promotion and Protection Agreements; • Customs and Trade Facilitation; • the Innovation and Technology Bureau, the Hong Kong Science Park and Cyberport, etc.

4.73. We appreciate the replies provided by Hong Kong, China, to our questions which we are reviewing thoroughly.

4.74. In conclusion, I would like to express our appreciation to the delegation of Hong Kong, China, and especially to the team of the Mission of Hong Kong, China, to the WTO in Geneva for their

significant work in preparing for this TPR.

4.75. Ukraine wishes the delegation of Hong Kong, China, successful Trade Policy Review and looks forward to further strengthening of our cooperation.

GUATEMALA

4.76. De acuerdo al informe presentado por la Secretaría podemos observar que la economía de Hong Kong, China desde su último examen de política comercial ha logrado mantener un balance positivo en las diversas áreas macroeconómicas, lo cual ha logrado con la implementación de medidas positivas en pro de su crecimiento económico.

4.77. Cabe destacar que Hong Kong, China fue el primer Miembro en aceptar el Acuerdo sobre

Facilitación del Comercio, en diciembre de 2014, notificando simultáneamente sus disposiciones en

la Categoría A para poderlo aplicar de manera inmediata. Es signatario del Acuerdo Plurilateral sobre Contratación Pública (ACP) de la OMC revisado y del Acuerdo sobre Tecnología de la Información (ATI), incluido su acuerdo de ampliación (ampliación del ATI). Además, tiene una trayectoria excelente en materia de presentación de notificaciones a la OMC.

4.78. Reconocemos como asertiva y fundamental la estrategia de mantener un sistema de finanzas públicas sano, lo cual garantiza una política macroeconómica atractiva para las inversiones locales

y extranjeras. Su sistema fiscal con principios de inversión a futuro permite que el Gobierno pueda realizar planes visionarios con sus ingresos fiscales.

4.79. Durante el período objeto de examen, Hong Kong, China ha adoptado medidas para simplificar aún más los procedimientos aduaneros y facilitar el comercio, como la mejora de un sistema informático de seguimiento de la carga transportada por carretera; la introducción del Programa de Facilitación del Transbordo en el marco de Acuerdos de Libre Comercio (Programa ALC); la aplicación plena del Programa de Operadores Económicos Autorizados (OEA) y la celebración de varios

acuerdos de reconocimiento mutuo de operadores económicos autorizados.


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4.80. Con el fin de promover sus exportaciones a nuevos mercados el gobierno de Hong Kong, China organiza exposiciones y actividades de formación que permiten a las empresas nacionales expandir sus actividades comerciales, así como la promoción de su sector manufacturero.

4.81. En lo que respecta los sectores de la agricultura y la pesca de Hong Kong, China siguen siendo muy pequeños; representaron menos del 0,1% del PIB en 2016, y menos del 0,1% del empleo total en 2017. En 2017, Hong Kong, China contaba con aproximadamente 2.400 explotaciones agrícolas

que abarcaban cerca de 710 hectáreas de tierras agrícolas y daban empleo a unas 4.100 personas. Los principales productos agrícolas son las hortalizas de hoja y las flores cortadas de alto valor. Los objetivos fundamentales de la política agrícola de Hong Kong, China no han cambiado desde examen anterior, puesto que siguen siendo el poder proporcionar a los agricultores infraestructura básica, servicios de divulgación y asesoramiento en cultivos, así como la posibilidad de servicios de crédito.

4.82. En al área de propiedad intelectual Hong Kong, China mantiene una serie de programas de

incentivos para proyectos de innovación y desarrollo, los cuales son gestionados principalmente por la Comisión de Innovación y Tecnología, con los cuales busca darle un impulso a las industrias creativas como parte de los elementos de su crecimiento económico.

4.83. Una de sus principales preocupaciones es el mantenimiento de un régimen de protección a los derechos de propiedad intelectual actualizada, acorde a las necesidades y retos que establecen los cambios en esta materia. Asimismo, implementan medidas coordinadas con los diversos sectores pertinentes, para el fortalecimiento de la observancia de este tipo de derechos.

4.84. Para concluir, queremos agradecer las respuestas remitidas a las preguntas que planteamos, las cuales remitiremos a nuestra capital para su análisis y comentarios, asimismo deseamos a la delegación de Hong Kong, China que hoy los representa, una conclusión de este 8° Examen de su Política Comercial.

JAPAN

4.85. During the review period since 2014, Hong Kong, China has maintained its stable economic growth, which is mainly attributed to an increase in domestic demand and exports. It marked an

annual growth rate of 2.8% between 2014 and 2017. An increase in domestic demand should be complemented mostly by an increase in imports supported by zero tariff rates even though there are some excise duties applied. Consequently, both imports and exports have shown meaningful increases during this review period. As a result, Hong Kong, China's total amounts of imports and exports corresponded to 375% of GDP in 2017. This means that Hong Kong, China is one of the global champions of the open, transparent and free trade system. To this effect, we truly appreciate

Hong Kong, China's firm commitment to a free, open and stable multilateral trading system.

4.86. We also appreciate Hong Kong, China's dedicated efforts to liberalize its services sector. As a result of these efforts, its service sector continues to be the mainstay of the economy as it accounted for 92% of GDP and 88% of total employment in 2016. The financial services industry in particular

is crucially important. By developing competitive and innovative financial markets, Hong Kong, China has established its position as a global financial centre.

4.87. Additionally, we found that Hong Kong, China's telecommunications services industry has

achieved remarkable growth during this review period. As we are now in the digital age, electronic commerce has come to play an important role in the international trade regimes. In this regard, we would like to underscore the importance of development of the telecommunications services industry through effective competition and innovation, as it formulates a basic foundation and infrastructure for facilitating electronic commerce.

4.88. From these facts we can conclude that Hong Kong, China has managed to put in place strong fiscal and financial fundamentals. In addition, Hong Kong, China has put the fundamentals firmly in

place through pegging its exchange rate to the US dollar. We truly appreciate such policy efforts.

4.89. Looking into Hong Kong, China's trade policy, we would like to underscore its commitments

to the variety of activities in the WTO. Hong Kong, China was the first member to accept the TFA in December 2014 and it also designated all its provisions under Category A for immediate implementation. In this regard, we encourage Hong Kong, China's efforts to establish a full-fledged


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Trade Single Window system. Also, Hong Kong, China is a signatory to the GPA and the ITA. Additionally, we truly appreciate Hong Kong, China's excellent record of providing notification to the WTO. We believe that such efforts in the area of notification will definitely contribute to maintaining the predictability and transparency of Hong Kong, China's market. Furthermore, we welcome Hong Kong, China's active engagement in the Joint Statement Initiatives on domestic regulation, electronic commerce, investment facilitation and MSMEs following MC11 in Buenos Aires in December 2017.

4.90. Besides its efforts in the WTO, Hong Kong, China has been actively engaged in enhancing its FTA partners. Among those, we understand that Hong Kong, China highly evaluates TiSA and is ready to advance progress with TiSA participants once negotiation resumes. We truly appreciate such willingness on the part of Hong Kong, China to further liberalize its service sector, as it still has some room to open up certain market spaces such as in the area of legal services, for example.

4.91. In conclusion, we are sure that by observing its commitments to the WTO as well as the

multilateral trading system, Hong Kong, China will be able to maintain its position as a global champion of the open, transparent and free trade system. We wish Hong Kong, China a successful and productive TPR.

THAILAND

4.92. Thailand would like to associate ourselves with ASEAN's statement delivered by Singapore.

4.93. Thailand and Hong Kong, China have maintained the close and vibrant economic relations, underpinned by strong trade and investment flows. We are pleased to highlight that our bilateral

trade in 2017 stood at USD15.2 billion, expanding by 17% from 2016, ranking Hong Kong, China as the eighth largest trading partner of Thailand. With respect to investment, Hong Kong, China was the seventh largest external source of foreign direct investment of Thailand with FDI flows of USD270 million in 2017.

4.94. As a member of ASEAN, Thailand welcomes the signing of the ASEAN-Hong Kong, China Free Trade Agreement and the ASEAN-Hong Kong, China Investment Agreement in 2017. We are confident that ASEAN and Hong Kong, China will continue to strengthen our economic relations

towards shared prosperity and inclusive growth.

4.95. During the review period, Hong Kong, China continued to be one of the world's most open economies characterized by free trade, free flow of information, transparent regulatory regimes, robust legal system, simple taxation and low tax rates, modern customs procedures, and well-developed transport and telecommunications infrastructure.

4.96. Thailand would like to extend particular appreciation to Hong Kong, China for playing an active

role in the WTO and shares with Hong Kong, China the objectives to foster progressive global trade liberalization and to strengthen the rules of the multilateral trading system. Thailand appreciates that Hong Kong, China has constructively engaged in various WTO negotiations and discussions,

including the Trade Facilitation Agreement, the Information Technology Expansion Agreement, E-Commerce and MSMEs. Moreover, it is highly commendable that Hong Kong, China was the first WTO Member to accept the Trade Facilitation Agreement in 2014, and it has maintained an excellent record on transparency.

4.97. In this review, Thailand submitted a set of questions, covering the policies and measures of our interests such as financial services, a development blueprint for Hong Kong, China's tourism industry, and intellectual property dispute resolution. Thailand thanks Hong Kong, China in advance for written responses.

4.98. Let me conclude by expressing our appreciation to the delegation of Hong Kong, China for the cooperation in every level, and we wish Hong Kong, China a very successful Trade Policy Review.

NEW ZEALAND

4.99. The reports from Hong Kong, China and the Secretariat provide a comprehensive outline of Hong Kong, China's trade policy.


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4.100. Hong Kong, China is one of the world's most prominent international trade and financial hubs, and one of the most market-oriented and open economies in the world.

4.101. Bilaterally, the strong trade links between our two economies are underpinned by the New Zealand-Hong Kong, China Closer Economic Partnership (CEP), which came into force in January 2011. The CEP is a comprehensive and high-quality agreement that supports what was already an open and sophisticated trading relationship, by guaranteeing duty-free access for

New Zealand goods into Hong Kong, China and a high-quality services outcome. Importantly, the agreement complements New Zealand's Free Trade Agreement with China.

4.102. Under the CEP's Education Cooperation Agreement, exchanges have taken place between New Zealand and Hong Kong, China to develop greater understanding of, and confidence in, each other's quality assurance and qualifications recognition processes.

4.103. In addition, New Zealand and Hong Kong, China have developed our taxation and customs

cooperation in order to better enhance trade facilitation and encourage mutual economic growth. Our Double Taxation Agreement provides greater certainty in the taxation of cross-border investment income, reduces compliance costs for investors in each other's jurisdiction, and sets limits for withholding taxes on dividends, interest and royalties. Our Customs Mutual Recognition Arrangement streamlines our customs procedures and tightens assurances around risk management so legitimate trade can flow more smoothly. Members of New Zealand's Secure Export Scheme benefit through faster clearance of their goods through Hong Kong, China's customs processes.

4.104. In this review, we have sought clarification in our written questions about several areas and will study the responses carefully. New Zealand commends Hong Kong, China's support for climate change and environment issues and monitoring of mutual agreements with electricity companies. We have asked about Hong Kong, China's intentions to encourage the uptake of renewable energy and for an update on the progress of the green bond insurance programme. Noting that New Zealand welcomes Hong Kong, China's initiative to implement a Trade Single Window for trade declaration

and customs clearance purposes, we have also asked about the timeframe for expected completion

and recent developments.

4.105. New Zealand congratulates Hong Kong, China for its constructive engagement across the range of WTO initiatives, which we value.

4.106. We have worked closely together, including in initiatives such as the Environmental Goods negotiations and the Information Technology Agreements. We have also particularly appreciated Hong Kong's contribution to the services negotiating agenda, and welcome its leadership in areas

such as domestic regulation. We look forward to continuing our close collaboration with Hong Kong, China in Geneva as active and constructive partners across the WTO's work.

4.107. In conclusion, we wish Hong Kong, China a successful Trade Policy Review.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.108. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu commends that Hong Kong, China has continued its strong economic performance in recent years and has been one of the world's most market-friendly and open economies since last review in 2014.

4.109. As the Secretariat's report shows that Hong Kong, China is a highly externally-oriented economy, with an impressive trade-to-GDP ratio of 375% and ranking at the top places in terms of merchandise trade, financial external transactions, and stock market capitalization.

4.110. It is clear how trade is vital for Hong Kong, China's economy and how, as such, its economy is strongly influenced by the global and regional economic conditions. We commend that Hong Kong China continued to be steadfastly committed to the multilateral trading system.

4.111. We would also like to acknowledge the active and positive role that Hong Kong China plays

in services related negotiations, such as domestic regulation, e-commerce initiatives in the WTO and beyond, reflecting the importance of the services sector in Hong Kong, China's economy.


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4.112. We have posed a number of questions that we look forward to hearing Hong Kong China's responses to.

4.113. On the bilateral front, Hong Kong, China is an important economic partner for us. Our bilateral trade is significant, and growth trends are positive. I am pleased to say that our trade has actually expanded over the period under review.

4.114. The amount of two-way trade registered between Hong Kong China and the Separate

Customs Territory of Taiwan, Penghu, Kinmen and Matsu in 2017 was USD42 billion, making us the fourth largest trading partner of Hong Kong China. It is also one of our major investment destinations, evidenced by the intense amount of air traffic back and forth every day and some two million of our people visiting Hong Kong, China each year.

4.115. To conclude, we appreciate the opportunity to participate in this review of Hong Kong,

China's trade policy. We strongly encourage Hong Kong, China to hold firm to its commitment as

being one of the world's most market-friendly and open economies.

CHILE

4.116. En el marco de este examen, Chile ha formulado 5 preguntas por lo que quisiera anticipar nuestro agradecimiento a las respuestas que esperamos recibir. Ellas serán analizadas por nuestros equipos en Santiago, con miras a reforzar la buena relación económica existente entre nuestras naciones.

4.117. Queremos felicitar a Hong Kong, China por el excelente desempeño económico que ha

logrado durante el período de revisión. En efecto, el crecimiento sostenido de su economía, combinada con su estabilidad monetaria y financiera, han permitido controlar la inflación generando un mayor gasto público en infraestructura y beneficios sociales.

4.118. En este sentido, Hong Kong, China demuestra de manera real como la apertura comercial y el libre comercio pueden ir en beneficio de la sociedad en su conjunto generando un mayor nivel de bienestar.

4.119. Chile valora que Hong Kong, China sea una de las economías más abiertas y competitivas

del mundo. Admiramos que se haya transformado en una potencia en el comercio de servicios, especialmente financieros, aéreos y marítimos.

4.120. Por su parte, consideramos de gran relevancia el que Hong Kong, China haya centrado su economía en otorgar facilidades para el establecimiento de empresas y movilidad de capitales en su territorio, permitiendo con ello oportunidades para que las empresas la utilicen como plataforma de negocios e inversiones en la zona sur de China.

4.121. La relación entre Chile y Hong Kong. China se remonta al año 2010 con la suscripción de un

acuerdo de exención de doble tributación a empresas navieras y una iniciativa conjunta para la promoción de vinos. Posteriormente en el año 2012, se firmó el tratado de Libre Comercio, el cual entró en vigor en el año 2014. En dicho acuerdo se abordaron de manera comprensivas todas las áreas del comercio internacional, incluyendo acceso a mercados, procedimientos aduaneros, y medidas sanitarias y fitosanitarias, entre otras.

4.122. El último hito de nuestra comercial con Hong Kong, China fue la suscripción en el año 2016,

de un "Acuerdo Suplementario sobre Inversiones", el cual fue firmado en el marco de la Cumbre de Líderes APEC realizada en Lima.

4.123. Dicho acuerdo contiene, entre otras, normas sustantivas para evitar la discriminación a inversionistas extranjeros, asegura al inversionista un nivel mínimo de trato, conforme al derecho consuetudinario internacional, y garantías relativas a la expropiación, libre transferencia relacionada a la inversión y altos estándares de transparencia e incluye disposiciones sobre objetivos comunes en medio ambiente, salud y otros objetivos regulatorios, promoviendo asimismo la incorporación en

las empresas de estándares de responsabilidad social corporativa.


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4.124. Nuestro país mira con interés que cerca de 6.600 empresas extranjeras y de China tengan su sede en Hong Kong, esto implica que diversas empresas chilenas pueden beneficiarse de la experiencia y el conocimiento de Hong Kong como centro de negocios. Asimismo, reconocemos en Hong Kong, China un mercado de primer orden para nuestras exportaciones de frutas, vinos, carnes, productos del mar, así como otros productos con una mayor sofisticación y exigencia. Podemos señalar que, durante el año 2017, el intercambio comercial entre ambos países alcanzó más de

200 millones de dólares, aumentando en un 14% respecto al año 2016, representando un 0.15 0/0 del comercio exterior chileno. Asimismo, el saldo de la balanza comercial con Chile ha disminuido de 39 dólares EE.UU. a 18 millones de dólares EE.UU. en el mismo periodo en comparación al año anterior.

4.125. Finalmente, reiteramos nuestras felicitaciones a Hong Kong, China y los instamos a continuar con su política comercial abierta, diversificar sus destinos de exportación entre más socios

comerciales y evaluar la consolidación del resto de su arancel aduanero.

4.126. Nuestro país desea mucho éxito a Hong Kong, China en su octava revisión de su política comercial.

RUSSIAN FEDERATION

4.127. We fully support this important mechanism for exchanging views with regards to trade policy regimes of WTO Members.

4.128. The continuous growth of the Hong Kong's economy with an average annual rate of 2.8%

indicates the effectiveness of economic policies undertaken by the Hong Kong's authorities with its strong fiscal and financial fundamentals and liberal trade regime.

4.129. The Russian Federation and Hong Kong, China have broad growing cooperation in trade and investment. In 2017, the amount of our bilateral merchandise trade reached USD925,6 million, that

is 7% higher than in 2016. We believe that Russia and Hong Kong, China have a significant potential to further increase in bilateral trade and investment cooperation.

4.130. The Russian Federation appreciates Hong Kong's active involvement in a wide range of

activities at the WTO at all levels and, in particular, in the discussion on important topics such as domestic regulation on trade in services, e-commerce, investment facilitation and micro, small and medium-sized Enterprises (MSMEs). We commend the position of Hong Kong, China to strengthen the rules of the multilateral trading system with WTO at this center.

4.131. Prior to this review, the Russian Federation has submitted a number of advance written questions to Hong Kong, China. We thank our partners for the provided answers and are now

carefully studying them.

4.132. To conclude, the Russian Federation appreciates the opportunity to participate in this review.

We would like to thank the delegation of Hong Kong, the Secretariat and the Discussant, H.E. Ambassador Alfredo Suescum, for their hard work done so far and wish this member a successful Trade Policy Review.

MÉXICO

4.133. Quisiera iniciar esta intervención diciendo que éste es uno de los exámenes de política

comercial más difíciles de evaluar, en virtud del ejemplar desempeño y comportamiento económico y comercial de Hong Kong.

4.134. Como ya se ha mencionado, la economía de Hong Kong ha crecido a una tasa promedio de 2,8%, impulsado por la demanda interna y exportaciones destinadas principalmente a la República Popular de China. Hong Kong sigue siendo una de las economías abiertas del mundo, con tipos arancelarios aplicados nulos. También tiene un régimen de inversiones abierto y favorable a los inversionistas.

4.135. Hong Kong cuenta con un sistema fiscal y financiero eficiente, lo que se ha traducido en un superávit fiscal que le permite ampliar los gastos en infraestructura y bienestar social. El sector


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financiero es uno de los más eficientes del mundo y mantiene grandes reservas de capital y liquidez dentro de un marco de supervisión y reglamentación riguroso.

4.136. Como mencioné anteriormente Hong Kong, tiene un comportamiento ejemplar en esta organización. Fue el primer miembro en aceptar en el Acuerdo de Facilitación de Comercio, participa en los acuerdos plurilaterales de Compras Públicas y el de Tecnologías de la Información. Asimismo, participa de manera activa y muy constructiva en todas las Iniciativas Conjuntas de Comercio

Electrónico, Facilitación de la Inversión, Reglamentación Nacional, Pequeñas y Medianas Empresas.

4.137. Respecto a la transparencia, tal y como lo señala el informe de la Secretaría, Hong Kong es un miembro ejemplar en el cumplimiento de este tipo de obligaciones. Además, durante el periodo del examen, Hong Kong no participó en ningún caso de solución de diferencias, ni como reclamante ni demandado, tampoco en calidad de tercero.

4.138. Hong Kong, China ha realizado avances importantes para simplificar los procedimientos

aduaneros y para consolidarse como un centro de tránsito en la región, fortaleciendo del Programa de Operadores Económicos Autorizados y celebración de varios acuerdos de reconocimiento mutuo. Otro ejemplo de estos esfuerzos será el establecimiento de una Ventanilla Única que permitirá la presentación electrónica de 50 documentos exigidos en la exportación e importación de mercancías, cuya primera fase entró en vigor en este año y que será plenamente implementada en 2023.

4.139. Por otro lado, Hong Kong también realizó avances en materia de política de competencia. La Orden de Competencia que entró en vigor en 2015 regula las prácticas anticompetitivas, sin

embargo, la autorización de fusiones sólo se aplica al sector telecomunicaciones dejando fuera de esta regulación al resto de los sectores económicos. Respecto al régimen de propiedad intelectual, fue modificada la Orden sobre Patentes y también se han tomado acciones en el entorno digital para evitar actividades que violen los Derechos de Propiedad Intelectual.

4.140. El sector servicios es el más importante de la economía de Hong Kong, representa el 92%

del PIB y el 88% del empleo total. En este sector, destacan las reformas en materia de adjudicación de espectro para los servicios móviles y la revisión de las condiciones de las licencias de los

operadores de telecomunicaciones, así como la firma de acuerdos de libre comercio con compromisos en esta materia.

4.141. Como en muchos países en desarrollo, la disparidad de ingresos en Hong Kong también sigue siendo uno de los temas pendientes, el coeficiente de Gini fue de 0.539 para hombres y 0.473 para mujeres en 2016. No obstante, reconocemos que Hong Kong sigue siendo un país puntero respecto al bienestar social. En 2017, ocupó el 7 lugar en el Índice de Desarrollo Humano de

elaborado por PNUD.

4.142. Por último, la volatilidad de los mercados y sobre todo el aumento del proteccionismo son los desafíos más apremiantes para todos los Miembros de esta Organización. Sin embargo, considerando la situación geográfica de Hong Kong y la fuerte dependencia de sus exportaciones a

la República Popular de China, el reto podría ser aún mayor. No dudamos que ya se estén tomando las acciones de política necesarias para enfrentar un posible escenario adverso de la economía mundial.

4.143. Por último, agradecemos las respuestas a las preguntas enviadas por mi delegación y deseamos a Hong Kong una conclusión exitosa de su octavo examen de políticas comerciales.

PHILIPPINES

4.144. The Philippines associates itself with the ASEAN Statement delivered by Singapore, which recognizes the robust economic relations between the ASEAN member states and Hong Kong, China.

4.145. Hong Kong, China was the Philippines' 5th major trading partner and 11th largest source of in-vestments in 2017. Total bilateral trade between our two economies reached USD11.74 billion in

2017, with digital monolithic integrated circuits and materials for the manufacture of electrical and

electronic machinery as our top traded commodities. Philippine exports to Hong Kong, China grew by 36.38%, from USD6.62 billion in 2016 to USD9.02 billion in 2017. Our imports from Hong Kong, China also rose by 8.97% from USD2.49 billion in 2016 to USD2.72 billion in 2017.


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4.146. Hong Kong, China is one of the world's most open and competitive economies, with a trade to GDP ratio of 375%. It has consistently ranked first in the Heritage Foundation's Index of Economic Freedom and the Fraser Institute's Annual Report on Economic Freedom of the World, and placed 5th in the World Bank's 2018 Doing Business Report.

4.147. As a globally integrated and open economy, Hong Kong has an economic outlook that is closely tied to global economic conditions. With an average annual growth rate of 2.8% from

2014-2017, Hong Kong, China's strong fiscal and financial fundamentals helped it weather some external and domestic challenges, such as heightened volatility in international markets, rising trade protectionism, persistently high housing prices, income disparities, and the need to pre-serve fiscal sustainability in the face of an ageing population.

4.148. The foundations of Hong Kong, China's economic prosperity lie in its institutions and policies that include the rule of law, a free and open market, a simple tax regime, and a level playing field

for business. Further, under the "One Country, Two Systems" policy and through its participation in multilateral, regional, plurilateral and bilateral trade agreements, Hong Kong, China has secured, maintained, and improved the access of its goods and services to foreign markets.

4.149. As a founding Member of the WTO and a staunch supporter of the multilateral trading system, Hong Kong, China was the first Member to ratify the Trade Facilitation Agreement, and designated all its provisions under Category A for immediate implementation, demonstrating its commitment to open trade. Hong Kong, China is a signatory to the Government Procurement

Agreement, the Information Technology Agreement as well as its expansion, and engages actively in the discussions of the Joint Statement initiatives on domestic regulation on trade in services, electronic commerce, investment facilitation for development, and micro, small and medium enterprises (MSMEs).

4.150. As highlighted in its Government report, Hong Kong, China remains open to pursue plurilateral initiatives with other interested WTO Members, provided that these initiatives are

consistent with WTO rules and can contribute to multilateral trade liberalization. It has actively

negotiated bilateral and plurilateral free trade agreements (FTAs) with its key and potential trading partners, including the recently concluded ASEAN-Hong Kong China Free Trade Agreement (AHKC FTA), which was signed on 12 November 2017 in the Philippines. An Investment Agreement with Hong Kong, China was also forged alongside the FTA, which seeks to reduce restrictions in doing business, enhance trade and investment flows, foster closer trade and economic relations, and contribute to regional economic integration. The Philippines looks forward to the entry into force of

the FTA and the Investment Agreement on 1 January 2019 at the earliest, subject to completion of the required procedures by the relevant parties.

4.151. The Philippines and Hong Kong, China are also both members of the Asia-Pacific Economic Cooperation (APEC) forum. According to the WTO Secretariat report, APEC economies comprise 86.8% of Hong Kong, China's merchandise imports, while 78.9% of Hong Kong, China's domestic merchandise exports went to APEC economies. As APEC members, the Philippines and Hong Kong, China have consistently reaffirmed the support for the rules-based multilateral trading system, and

the commitment to resisting all forms of protectionism.

4.152. The Philippines has submitted a number of advance written questions on the Hong Kong, China trade policy review reports, and we are grateful for their timely written responses which we have sent to our capital for consideration.

4.153. In closing, the Philippines looks forward to further enhancing the mutually beneficial economic relations between our two economies through bilateral, regional, and multilateral fora.

REPUBLIC OF KOREA

4.154. Korea and Hong Kong, China have developed a strong and stable economic relationship. The volume of bilateral trade reached a record level of USD41 billion in 2017, which is 41.3% increase since Hong Kong, China's previous review in 2014. Hong Kong, China is Korea's fourth-largest export

market in the world.


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4.155. The cumulative amount of investment between Korea and Hong Kong, China has substantially increased as well. Korea's total stock of investment in Hong Kong, China reached USD3.51 billion in 2017. Hong Kong, China's cumulative amount of investment in Korea reached USD1.25 billion.

4.156. From a trade policy perspective, as the Secretariat's report noted, Hong Kong, China remains one of the most open economies in the world and maintains open trade regime. All applied tariff

rates are zero.

4.157. As the Secretariat also noted, we appreciate that Hong Kong, China has strongly supported the multilateral trading system. Hong Kong, China formally accepted the Trade Facilitation Agreement (TFA) in December 2014, and have participated in plurilateral agreements such as the expansion of the ITA and the revised GPA. In addition, Hong Kong, China has an excellent record of submitting notifications on a broad range of subjects, showing its commitment to implementing the

WTO Agreements as the Secretariat's report provided. We should take note as well that Hong Kong, China has introduced several changes to its government procurement regime in order to bring the related regulations in line with the revised GPA.

4.158. As the Secretariat's report points out, Hong Kong, China is one of the largest destinations and sources of direct investment in the world and the cumulative amount of investment between Korea and Hong Kong, China has steadily increased. Yet, the bilateral investment treaty between the two economies concluded two decades ago has not been properly updated. Korea has proposed

to Hong Kong, China to revise the treaty to modernize and improve the provisions of the BIT, including the addition of denial of benefit provision, which prevents sham companies from accessing the investment protection provided by the BIT including the ISD. Korea expects Hong Kong, China's positive response to the proposal to revise the BIT so the two economies could properly update the investment regime in order to not only provide proper safeguard to the governments but also restrict the scope of benefit under the protection to the parties to whom we aimed to give the protection and benefits at the time of the negotiations.

4.159. My delegation has submitted, albeit somewhat late, our written questions on several points regarding the trade policies of Hong Kong, China including concern in relations to the implementation of the voluntary FTA scheme to facilitate certain qualified cargo transhipped through Hong Kong, China to enjoy preferential tariff treatment under FTAs signed by Mainland China with other economies.

4.160. We look forward to receiving answers in due course.

4.161. Korea hopes to continuously develop our economic relationship with Hong Kong, China going forward. In addition, we expect Hong Kong, China to continue to contribute towards strengthening the multilateral trading system.

4.162. With this, we would like to express our deep appreciation to the delegation of Hong Kong,

China for their hard work and wish them every success in this TPR.

MALAYSIA

4.163. Malaysia associates herself with the ASEAN Statement delivered by Singapore.

4.164. Malaysia commends Hong Kong, China's strong macroeconomic fundamentals and good performance despite the external and domestic challenges as well as escalation of trade protectionism. We note from the Secretariat report, Hong Kong, China's remains one of the most open economies in the world, with a trade/GDP ratio of 375% while at the same time experiencing average annual GDP growth rate of 2.8%.

4.165. At the multilateral front, we also congratulate Hong Kong, China's for its continuous commitment at the multilateral front. Malaysia commends Hong Kong's timely notifications as well

as in its many progressive trade and investment policies under the WTO such as the Trade Facilitation

Agreement (TFA) which designated all its provisions under Category A for immediate implementation, signatory of the revised WTO plurilateral Agreement on Government Procurement (GPA), and the Information Technology Agreement (ITA), including its expansion agreement (ITA


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Expansion). We also welcome the active engagement by Hong King China in the various initiatives such as e-Commerce and MSMEs.

4.166. Hong Kong, China in 2017 was Malaysia's 9th largest trading partner globally. Malaysia's total trade with Hong Kong increased by 22.7% to USD14.42 billion. For the period January-August 2018, Malaysia's total trade with Hong Kong increased by 56.9% to reach USD14.64 billion compared with the corresponding period of 2017. Total exports increased by 73.0% to USD12.10 billion.

4.167. In terms of investments, Hong Kong was the 6th largest investor in terms of approved manufacturing projects during 2017. In recent years, bilateral trade and investment between Malaysia and Hong Kong, China's also grew closer under the auspices of ASEAN–Hong Kong, China's Free Trade and Investments Agreement.

4.168. While we welcome the various updates of trade policies by Hong Kong China, Malaysia seeks

further information in the some of her investment policies, as well as the services sector. We also

wish to seek further clarification on the import and export licensing regime of HKC.

4.169. We take this opportunity to thank the Hong Kong, China's in advance for her response to Malaysia's questions. We also wish to congratulate Ms. Irene Young and her team here in Geneva for their active and constructive engagement with Members.

4.170. We wish Hong Kong, China a productive and successful eighth Trade Policy Review.

TURKEY

4.171. Hong Kong, China, is an exceptional economy in many aspects. It is one of the most liberal

economies in the world, without imposing neither any tariff on trade in goods nor any restriction on investments in terms of market access. With its liberal and strong economic regulatory framework, Hong Kong, China also ranks in high levels in Doing Business, Competitiveness and Logistics

Performance Indexes.

4.172. Hong Kong, China, the seventh largest merchandize trading economy in the world, is also one of the main gates connecting the Mainland China to the world market.

4.173. As an international financial centre, with diversified financing channels, Hong Kong, China,

is a financial and logistics hub in its region. With this economic character, the services sector accounts for more than 90 per cent of the GDP and almost 90% of the employment. Agriculture and manufacturing have further contracted during the review period, while services and construction have continued their growth.

4.174. We observe there are some important policy developments in Hong Kong, China, during the review period. First of all, through the Closer Economic Partnership Agreements and Belt and Road

Initiative, the economy of Hong Kong, China has become more integrated with Mainland China and

Macao, China which can strengthen its role as a regional economic hub in coming years.

4.175. Secondly, Hong Kong, China, along with Turkey and others, has become a member of the Asian Infrastructure Investment Bank (AIIB), which also can be another venue to fuel Hong Kong, China to serve as investment and financing platform and capture the opportunities arising from the projects of the Bank.

4.176. Thirdly, recent FTAs, especially the FTA with ASEAN, have become major drivers of the

economy. This network is further expanded with new Investment Promotion Agreements. Those agreements also may create enormous opportunities in trade and investment and further enhance trade and investment flows.

4.177. In the review period, Hong Kong, China has further developed its logistical capabilities and crafted new tools for streamlining the flow of trade. As the first WTO Member to ratify the Trade Facilitation Agreement, Hong Kong China introduced creative solutions for logistics and further

simplified the procedures. For ensuring this, Single Window system, authorized economic operator

program and automation are among these effective tools.


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4.178. Turkey's bilateral trade with Hong Kong, China is based on MFN terms and has a relatively small share within the external trade of both parties. However, we are satisfied that our bilateral trade volume has increased 40% during the review period, developing in a balanced manner. In this respect, as for many other Members, Hong Kong, China is an important logistic and commercial hub for Turkey in its trade with the region, especially with Mainland China. We look forward for further developing the institutional framework of our bilateral economic relations and our bilateral

cooperation in all possible areas both in bilateral and multilateral fora.

4.179. We have already submitted certain written questions to Hong Kong China and we definitely will study the answers carefully.

4.180. In conclusion, it would be inadequate to end our statement without mentioning the active and positive contribution of Hong Kong, China, to the rules-based multilateral trading system and discussions in many areas within this framework. In this respect, we should commend the active

and constructive role of Ms. Irene Young, a good friend, and her team at the WTO.

4.181. We wish Hong Kong, China a successful review.

COLOMBIA

4.182. La economía de Hong Kong, China en este examen de política comercial aparece como una de las más abiertas del mundo al comercio, con una relación comercio/PIB del 375%, teniendo un alto ingreso per cápita que supera los 46.000 dólares EE.UU.

4.183. Es grato ver como los servicios, en particular el comercio y las finanzas, continuaron siendo

el pilar de la economía, contribuyendo con un 92% al PIB y un 88% al empleo total. El crecimiento del PIB real de 2,8% en promedio desde 2014 representa una cifra importante para el alto nivel de desarrollo que presenta.

4.184. Por otra parte, la economía de Hong Kong, China tiene fuertes fundamentos fiscales y financieros. Durante el período examinado, registró importantes excedentes fiscales, lo que permitió un aumento del gasto público, principalmente en infraestructura y bienestar social; mientras que, bajo supervisión y regulación fortalecidas, el sector bancario ha acumulado grandes reservas de

capital y liquidez.

4.185. En lo comercial se observa como China continental es el principal socio comercial, recibiendo el 55,3% de las reexportaciones y suministrando el 44,6% de sus importaciones en 2017, lo cual permanece prácticamente sin cambios desde la revisión anterior. Todos los tipos arancelarios aplicados son cero. Sin embargo, se destaca que más de la mitad de las listas permanece sin consolidar. En lo aduanero sobresale la plena implementación del Programa de Operador Económico

Autorizado (OEA) y la conclusión de varios acuerdos de reconocimiento mutuo en esta materia.

4.186. En la OMC, Colombia y Hong Kong, China son miembros del grupo Amigos del Sistema, y

del grupo Old School Friends, y comparten una importante agenda común en temas tan diversos como comercio electrónico, facilitación de inversiones, y regulación doméstica, entre otros. Colombia encuentra en Hong Kong, China un actor sistémico con el que se apoya mutuamente para avanzar iniciativas de interés para la Organización y sus Miembros.

4.187. Colombia observa con beneplácito el increíble desempeño de Hong Kong, China como una

de las economías más estables del mundo. Si bien Colombia no realizó preguntas para este examen, valoramos a través de este ejercicio poder profundizar nuestro conocimiento sobre algunos aspectos relevantes para el objetivo de este ejercicio de transparencia. Por ejemplo, en materia comercial, es de interés para Colombia conocer más acerca de la creciente integración económica y el marco de coordinación de políticas de Hong Kong, China con algunos de sus socios comerciales en la región Asia Pacífico, como Macao, Asean y China.

4.188. En materia de facilitación de comercio y a nivel de información fiscal sería de interés para

Colombia conocer más sobre las experiencias de intercambio de información con socios comerciales

y sus resultados.


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4.189. Asimismo, para Colombia reviste de gran importancia conocer los esfuerzos y experiencias de los diferentes Miembros de la OMC para combatir los fenómenos de comercio ilícito que son frecuentes alrededor del mundo. En el caso de Hong Kong, China sería interesante conocer más acerca de su experiencia sobre seguridad en las cadenas logísticas y comerciales, puntualmente en el contexto de la facilitación del comercio, así como en el contexto de la seguridad de los flujos financieros y los servicios, conocer más sobre las políticas de seguridad y prevención que aplica

Hong Kong, China al respecto.

4.190. Con estos comentarios termino, no sin antes desearle a Hong Kong, China el mejor de los éxitos en este examen de política comercial, así como por agradecerles por las excelentes relaciones de cooperación entre nuestras Misiones en Ginebra.

BURUNDI

4.191. À travers les rapports du pays examiné et du Secrétariat de l'OMC, ma délégation note avec

satisfaction que Hong Kong, Chine est l'une des économies les plus ouvertes au monde car son économie se caractérise par le libre-échange, la libre circulation de l'information, des régimes réglementaires sains et transparents, un système juridique solide, une fiscalité simple et de faibles taux d'imposition, ainsi que des infrastructures de transport et de télécommunication très développées.

4.192. Cette situation lui a permis de décrocher le premier rang pour la 24ème année consécutive considérant son degré de liberté économique ainsi que la 5ème place mondiale pour sa facilité de

faire des affaires.

4.193. Dans le même contexte et pour témoigner de son engagement à garantir la libéralisation du système commercial mondial et améliorer la facilitation des échanges, Hong Kong, Chine a été le premier Membre de l'OMC à accepter l'Accord sur la facilitation des échanges (AFE) et à ce titre, a mis en application l'ensemble des dispositions y relatives dès son entrée en vigueur en 2017.

4.194. En plus, Hong Kong, Chine présente toujours ses notifications à l'OMC, ce qui témoigne de sa volonté de garder son régime commercial ouvert.

4.195. Ma délégation salue toutes les initiatives prises par Hong Kong, Chine pour rester attachée au système de l'OMC, à ses cadres de règles et à ses objectifs, y compris ceux mettant en avant les relations économiques internationales en général, et le commerce international en particulier. En témoigne la prise en considération de la place du commerce mondial par le Hong Kong, Chine pour être profitable à tous.

4.196. Dans le même sens et avec le but de maintenir la compétitivité en tant que centre

commercial et logistique ainsi que suivre les tendances internationales, Hong Kong, Chine accélère actuellement la mise en place échelonnée du Guichet commercial unique qui prévoit la présentation à un seul guichet de tous les documents pour faciliter la déclaration commerciale et le

dédouanement. Cela permettra effectivement à la communauté commerciale de gagner du temps et de réduire les coûts. Ma délégation l'encourage à accélérer le lancement de la première phase de cette activité afin d'être opérationnelle dans les meilleurs délais pour améliorer la qualité des échanges commerciaux au niveau importation et exportation.

4.197. En plus, les services au Hong Kong, Chine constituent toujours le principal pilier de l'économie, comptant pour 92% du PIB et 88% de l'emploi total et surtout dans les services des télécommunications. Ma délégation encourage les autorités à accélérer le projet d'offrir des incitations financières à l'intention des entreprises de télécommunication pour encourager le développement du réseau fibre jusque dans les villages reculés.

4.198. Ma délégation croit aussi que l'annonce de nouvelles politiques dans le secteur agricole par le Gouvernement permettra de promouvoir la modernisation et le développement durable de

l'agriculture locale étant donné que ce secteur demeure très limité et représente moins de 0,1% du PIB et moins de 0,1% de l'emploi total. Il faut noter ici que le secteur agricole a une grande

importance dans le développement d'un pays et le relèvement du bien-être de la population.


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4.199. Pour terminer, le Burundi est d'avis comme Hong Kong, Chine que le système commercial multilatéral, fondé sur des règles et incarné par l'OMC et le mécanisme de règlement des différends, joue un rôle important dans la résolution des conflits commerciaux.

4.200. Le Burundi souhaite pleins succès à Hong Kong, Chine pour son huitième Examen des politiques commerciales.

NEPAL

4.201. Nepal and Hong Kong, China enjoy a close and cordial relations at the level of peoples. The relations between two countries have further strengthened after the establishment of the Consulate General of Nepal in Hong Kong in 1997.

4.202. It is appreciable that Hong Kong has been providing various opportunities to the ethnic

minorities in Hong Kong. The initiatives undertaken by Hong Kong China to integrate Nepali ethnic minority into Hong Kong society through awareness, education and other socio-cultural activities is

praiseworthy. At present, more than 20,000 Nepali live in Hong Kong.

4.203. The cooperation between two countries could be strengthened in the fields of investment, trade, tourism and human resource development. Nepal could be a destination country for tourism, trade and investment. Both Nepal and Hong Kong China could work together to strengthen the economic ties further.

4.204. HKC is regarded as one of the most preferred destinations for employment opportunities for Nepali workers. We could promote this sector for benefits to both sides.

4.205. Nepal has adopted liberal economic policies since the early 1990s. Those policies are being timely amended in line with the multilateral trading system. The business and investment climate is conducive in Nepal due to political stability, adjustment in legal regimes, improving infrastructure,

and good governance, among others.

4.206. Regarding trade, the major imports from Hong Kong, China includes electronics, watches, cosmetics and readymade garments while major exports from Nepal are woollen products, pashmina, carpets, handicrafts, mountain herbs (Yarchagumba), precious and semi-precious stones,

etc.

4.207. It is appreciable that despite the uncertainty posed by rapidly changing global economic environment, HKC is maintaining strong fiscal and financial fundamentals, and free market policy, among others. Services, in particular, trade and finance, continued to be the mainstay of the economy, contributing 92% to GDP and 88% to total employment, reflecting HKC's position as a global trade and financial Centre.

4.208. Notwithstanding its strong macroeconomic fundamentals and good economic performance,

HKC's sustained economic growth faces some external and domestic challenges, including heightened volatility in international markets, rising trade protectionism, persistently high housing prices, ageing population, and income disparities. HKC may devise appropriate and timely strategies to tackle the challenges at the global and national levels.

4.209. Finally, we wish Hong Kong, China a successful Trade Policy Review.

MYANMAR

4.210. Myanmar associates itself with the ASEAN statement delivered by Singapore. Myanmar and Hong Kong, China are important trading partners. Hong Kong, China has made investment in Myanmar since 1988.

4.211. According to our trade data, the bilateral trade between Myanmar and Hong Kong, China has increased, year on year. In the 2017-2018 Fiscal Year, the trade turnover reached over

USD385.6 million. We expect to see the continuation of this positive trend.


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4.212. In terms of the Foreign Direct Investment in Myanmar, Hong Kong, China has brought foreign capital over USD7 billion. Attaching great importance to co-operation between Myanmar and Hong Kong, China, we expect to see to explore more business opportunities and boosting economic developments in both places.

4.213. Based on the Secretariat's report, I wish to draw your attention to the progressive trade regime of Hong Kong, China which remains one of the most open economies in the world and its

economy has strong fiscal and financial fundamentals. During the review period, the average annual growth rate of Hong Kong, China was 2.8%.

4.214. We learned that Hong Kong, China recorded substantial fiscal surpluses while increasing public spending. Its monetary policy focused on currency stability and inflation has been on a declining trend during the review period.

4.215. The merchandise trade volume of Hong Kong, China was USD1,140 billion in 2017 ranking

as the world's 6th largest exporter and the 5th largest importer of goods, and the 8th largest exporter and the 12th largest importer of services in 2017. Hong Kong, China was the first member to accept the WTO Trade Facilitation Agreement. We noted that Hong Kong, China has continued to open trade regime. For instance, the applied tariff rates are zero for all products and Hong Kong, China does not apply any duty or tax on exports.

4.216. In terms of direct investment, Hong Kong, China is one of the largest destinations and sources of direct investment in the world and continues to be an important business hub for foreign

companies with the absence of foreign exchange controls and restrictions on overseas investment.

4.217. Hong Kong, China has been upholding a policy of a free and open economy over the years. We recognize its strong commitments to foster progressive global trade liberalization and to strengthen the WTO multilateral trading system as well as to continue to work closely with all WTO members.

4.218. Hong Kong, China participates actively in the work of the WTO on all levels. At this critical juncture of the WTO's system under many challenges, we are happy to see continuous and effective

support of Hong Kong, China to the WTO especially in strengthening multilateral trading system, enforcing global trade rules, and bringing the current WTO's trade negotiation forward.

4.219. Finally, the delegation of Myanmar is pleased to convey appreciation to Ms. Salina Yan and her delegation including the whole team in Geneva, for their constructive engagement throughout this TPR process.

4.220. My delegation wishes the delegation of Hong Kong, China every success in this eighth Trade

Policy Review.

REPUBLIC OF MOLDOVA

4.221. As the Secretariat's report rightly stated, Hong Kong, China has maintained its position as a global trade and financial center over the last years. We are impressed by Hong Kong, China's results in upholding a strong economic performance notwithstanding global and regional challenges and for remaining one of the most prominent international trade and investment hubs. This round of trade policy review brings into light many good practices, policies and lessons to be leamed by other

Members. In this context, we thank H.E. Alfredo Suescum from Panama for his very interesting and insightful assessment presented today in his capacity as discussant.

4.222. Since the last TPR, Hong Kong, China has maintained the growing tendency of its economy. Its consistent market-oriented policies and its open and friendly economic environment are based on strong fundamentals that ensure sustainable growth and development. In 2017, HKC ranked 5th in the Ease of Doing Business ranking of the World Bank the most opened economies and 6th in the World Economic Forum Competitiveness Index.

4.223. Hong Kong, China is one of the wealthiest economies in East Asia, with a GDP per capita reaching USD46,189 in 2017. Trade and finance amount for 92% of the GDP and 88% of the total


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employment. Also, the Hong Kong dollar real effective exchange rate appreciated during the year of 2015.

4.224. The tax regime implemented by Hong Kong, China is quite simple, with low rates. The fiscal policy overall is forward looking and based on strategic financial management principles. What is remarkable is the consistent use of fiscal surpluses to invest in the future — infrastructure building and services improvement.

4.225. The services sector remains the driving force of the Chinese economy. Hong Kong, China is one of the largest destinations and sources of direct investments in the world, ranking as the fourth largest recipient of direct investment flows worldwide.

4.226. The Republic of Moldova commends the efforts made by Hong Kong, China in order to sign Investment Promotion and Protection Agreements with 20 countries and the ongoing negotiation of

new ones, which provide for non-discriminatory treatment and protection of investments in all the

sectors.

4.227. We are impressed by the good network of regional trade agreements and FTAs and welcome the newly signed FTAs with Georgia and ASEAN countries, as well as the ongoing negotiation process with Australia and Maldives. The implementation of the previous FTA signed with many other countries before the reviewed period, especially with EFTA countries has shown transparency and predictability of the commitments undertaken by Hong Kong China and its economic partners. Protection of investments is guarantee by the sustainable and transparent regulation and policies,

which is the main element of the economic growth and trade development. Closer Economic Partnership Agreements with Mainland China, Hong-Kong Macao and New Zeeland strongly contribute to the regional integration of the Hong Kong China's economy.

4.228. Even though our bilateral trade exchanges are quite modest for the moment, we would be interested in eventual negotiations of an FTA with Hong Kong, China in the near future and to work

closer with Hong Kong, China in the framework of the plurilateral initiatives in the WTO, especially under electronic commerce programme and SMEs.

4.229. The Republic of Moldova appreciates that during the years under review, Hong Kong, China has played an active role in the WTO. More precisely, Hong Kong, China has shown a perfect notifications record, is signatory of all the recent agreements (especially TFA, ITA, revised GPA) and was never involved in any WTO dispute settlement case.

4.230. The Republic of Moldova didn't address questions to Hong Kong, China because it is difficult to question a Master as it has been mentioned by the discussant, Ambassador Suescum. We wish

Hong Kong, China to keep the status of an exemplary Member of the multilateral trade family and wish the distinguished delegation utmost success during this Trade Policy Review.

VIET NAM

4.231. We would like to associate ourselves with the ASEAN joint statement delivered by Singapore.

4.232. Since the last Trade Policy review in 2014, Hong Kong, China has remained one of the most open economies in the world, a strong proponent of free trade with very positive economic and human development results, mainly fuelled by strong domestic demand and increasing exports of

goods and services.

4.233. Viet Nam wishes to highlight the advancements Hong Kong, China has made during the review period. As the report by the WTO Secretariat noted, Hong Kong, China is one of the world's most prominent international trade and financial hubs and has been well served by its sound economic fundamentals such as a healthy fiscal balance, a strong external financial position, highly externally-oriented trade, flexible markets and a well-regulated financial system. We believe that Hong Kong, China will continue with the sound policies that have allowed it to obtain some of the

highest rankings in the world indicators of economic freedom, competitiveness and ease of doing

business.


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4.234. We also appreciate Hong Kong, China's constructive efforts to support the WTO as a multilateral trading system, including its commitment to implement the Trade Facilitation Agreement.

4.235. Regarding the bilateral trade and investment relations, we are pleased to note that Hong Kong, China is a long-standing economic partner of Viet Nam. Our economic cooperation is strong and has much potential to advance. Hong Kong was Viet Nam's ninth largest trading partner

in 2017 with trade volume reached USD9.24 billion. Of the total, Viet Nam's export to Hong Kong recorded USD7.58 billion, up by 24.55% as compared to that of 2016, while import from Hong Kong rose by 37.3% to USD1.66 billion.

4.236. In terms of investment, Hong Kong is consistently listed as one of the markets and territories with the highest foreign direct investment in Vietnam, ranks sixth out of 129 countries and territories. The investment from Hong Kong, China covers numerous sectors, ranging from

manufacturing, textile and apparel industry, fintech to real estate and services.

4.237. Viet Nam would also like to commend the constructive engagement of Hong Kong, China in the WTO and its support for the multilateral trading system and the always active contributions of Ms. Irene Young and her able team.

4.238. In conclusion, we wish Hong Kong, China every success as well as for its trade policy review in its process of economic and social development and the delegation of Hong Kong, China a successful Trade Policy Review.

SRI LANKA

4.239. During the Review period the economy of Hong Kong China has been able to maintain its economic growth at 2.8%. We observe that services sector has been the major contributor to both GDP and employment contributing 92% and 88% respectively. The trade to GDP ratio has been

375% which indicates as one of the most open economies in the world. The simple and open investment regime has also been a key factor for the economic success.

4.240. The success of their monetary policy is demonstrated at low inflationary level maintained

during the review period. Hong Kong, China is one of the most stable economies in the world with per capita GDP over USD61,000 and with foreign exchange reserves amounting to the equivalent of 36.7 months of imports. It is noteworthy that Hong Kong, China became the first Member to accept the TFA, designating all its provisions under category A for implementation. During the Review period, Hong Kong, China further streamlined customs procedures to strengthen the country's role as a transit hub. This involves introduction of transhipment facilitation scheme, IT based tracking

system of road cargo and implementation of authorized economic operator programme with several countries. The applied tariff on imports has been almost at zero level while licensing and notification requirement for textile imports is removed. Its TBT and SPS system is simple and transparent. All these measures have placed Hong Kong, China as a great transit hub in trade.

4.241. Hong Kong, China is a great compliant of WTO notification requirements.

4.242. Let me briefly mentioned about our bilateral trade with Hong Kong, China. The total trade between Hong Kong, China and Sri Lanka continue to remain around USD600 million while imports

are around USD450 million. Our major export items to Hong Kong, China are precious stones, apparels, tea, fish and fish products and activated carbon. Our major imports from Hong Kong, China are knitted and woven fabric, apparels, plastic products, paper products, cotton and electronic and communication products. Hong Kong China is also a significant investor in Sri Lanka. Our trade and economic relations are cordial and progressing.

4.243. In concluding, my delegation appreciates Hong Kong, China's contribution to the multilateral trading system. In this regard, the role played by Ms. Irene Young, the Permanent Representative

of Hong Kong, China and her team is commendable. She has been the Chair of many committees of WTO including Trade Policy Review Body and TRIPS Council. I take this opportunity to wish her all

successes in her future assignments. I also wish the delegation of Hong Kong, China a successful deliberation of its eighth Trade Policy Review.


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INDIA

4.244. The economy of Hong Kong, China grew at an average rate of 2.8% during the period under review from 2014-17. In 2017, the growth was faster at 3.8% due to robust growth in mainland China and strong domestic demands. Hong Kong, China is amongst the wealthiest economies in East Asia with the GDP per capita of USD46,189 in 2017. Hong Kong, China has an open trade policy with exports and imports of goods and services significantly representing 375% of GDP. Hong Kong,

China also attracts considerable foreign investment and ranks 5th in the ease of doing business report of the World Bank in 2017. The economy of Hong Kong, China also faces some challenges which include external risks, potential increase in interest rates, volatility in international financial markets, domestic housing pricing and issues relating to income dispute. We commend the authorities of Hong Kong, China for continued focus on strategies and measures to promote trade investments and to address these challenges.

4.245. India shares robust trade and economic relations with Hong Kong, China. Trade between India and Hong Kong, China has been growing and stood at USD34.11 billion in 2017. India continues to be Hong Kong, China's 7th largest trading partner with a diverse range of goods traded which include precious and semi-precious stones, leather, electrical machinery, textiles, chemicals, medical instruments, marine products, electronics, plastics and other products.

4.246. Hong Kong, China and India have a broad-based institutional framework for trade and investment. There are also regular exchange of business delegations and Indian trade delegations

participate in various investment and trade fairs in Hong Kong, China. Investments by Indian companies in Hong Kong, China and companies from Hong Kong, China in India have been growing steadily in areas including power, textiles, financial services, logistics, trading and banking. Our relations are also underpinned by the large presence of Indian professionals in these services sectors including banking, IT and financial services in Hong Kong, China.

4.247. To conclude, we look forward to further strengthening and harmonizing the potential of our

trade and investment relations with Hong Kong, China and wish the delegation of Hong Kong, China

a productive and successful TPR.

URUGUAY

4.248. Uruguay desea brindar la más cordial bienvenida a la delegación de la Región Administrativa Especial de Hong Kong de la República Popular China en oportunidad del octavo examen de sus políticas comerciales, una instancia importante y saludable para promover la transparencia y comprensión de las políticas y prácticas comerciales aplicadas por los Miembros de esta Casa.

4.249. Nuestro país desea, en primer lugar, felicitar a Hong Kong, China por continuar siendo una de las economías más abiertas del mundo, y por su crecimiento económico sostenido, a una tasa media anual del 2,8%, desde la realización del último examen. Hong Kong, China ha incrementado sus niveles de gasto público, basado en un superávit fiscal considerable. Asimismo, ha logrado

mantener su moneda estable, con una tendencia a la baja de los niveles de inflación, que alcanzaron un valor de 1,5% en el último año.

4.250. Es dable resaltar que Hong Kong, China aplica pocas restricciones o prohibiciones al comercio

y lo hace en forma consistente con la normativa multilateral existente. No tiene legislación en materia de medidas de defensa comercial y mantiene regímenes de Obstáculos Técnicos al Comercio y de Medidas Sanitarias y Fitosanitarias transparentes y relativamente sencillos, no habiéndose presentado Preocupaciones Comerciales Específicas al respecto en los Comités correspondientes durante el período de análisis.

4.251. Hong Kong, China se destaca por haber sido el primer Miembro de la OMC en aceptar el Acuerdo sobre Facilitación del Comercio, en diciembre de 2014, y por haber consignado todas sus

disposiciones en la Categoría A para su inmediata aplicación. Cuenta con un sistema aduanero eficiente, con procedimientos rápidos y económicos en términos relativos. En este sentido, ha adoptado medidas tales como la introducción del Programa de Facilitación del Transbordo en el

marco de Acuerdos de Libre Comercio; la mejora de un sistema informático de seguimiento de la carga transportada por carretera; la plena aplicación del Programa de Operadores Económicos Autorizados (OEA) y la celebración de varios acuerdos de reconocimiento mutuo de OEA; y la


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introducción de un límite en las tasas por declaración de importación o exportación. Asimismo, se encuentra estableciendo una ventanilla comercial única integral.

4.252. Adicionalmente, Hong Kong, China tiene una conducta ejemplar en materia de presentación de notificaciones a la OMC, y participa de manera constructiva en las discusiones sobre MIPYMEs, mediante el apoyo brindado en la XI Conferencia Ministerial a la Declaración Ministerial sobre MIPYMEs del Grupo de Amigos de las MIPYMEs, y en la actualidad, integra el Comité de Coordinación

en el ámbito del Grupo de Trabajo Informal sobre MIPYMEs, que es presidido por nuestro país.

4.253. Uruguay y Hong Kong, China mantienen relaciones amistosas y constructivas en distintas áreas. Reflejo de ello es la visita realizada por el señor Ministro de Relaciones Exteriores de Uruguay a Hong Kong, China a fines de octubre de este año.

4.254. En el año 2017, esta economía se ubicó como el segundo destino de las exportaciones

uruguayas de bienes en Asia-Pacífico (solo por detrás de China continental), con un total de 52

millones de dólares EE.UU.

4.255. A la inversa, Hong Kong, China es un importante proveedor para nuestro país de aparatos eléctricos de telefonía, máquinas automáticas para procesamiento de datos, aparatos receptores de televisión y máquinas y aparatos de oficina.

4.256. Adicionalmente, Uruguay ha recibido inversión extranjera directa procedente de Hong Kong, China en campos tales como la producción de energía solar, la logística y el agronegocio.

4.257. A efectos de coadyuvar a estos intercambios mutuamente beneficiosos es que se encuentra

en vigencia un acuerdo de exención de visados entre Uruguay y Hong Kong, China. En este sentido, se ha propuesto negociar acuerdos en materia de inversiones, cooperación aduanera y facilitación del comercio.

4.258. Como corolario de lo expuesto, Uruguay le desea a Hong Kong, China el mayor de los éxitos en el octavo examen de sus políticas comerciales.

PANAMÁ

4.259. Felicitamos a Hong Kong, China por su larga trayectoria y compromiso con el sistema

multilateral de comercio. Hong Kong, China es una prueba de como la liberalización económica y apertura comercial de la cual negociamos y conversamos a diario, rinde frutos en el desarrollo de los Miembros. Congratulamos a Hong Kong, China por aparecer recurrentemente en los Índices de Apertura Económica y Facilidad de Hacer Negocios en los primeros escaños.

4.260. Hong Kong, China y Panamá mantienen estrechos lazos que se han visto reflejados en el amplio comercio entre ambos, pese a la gran distancia. En 2017, el comercio entre Hong Kong,

China y Panamá superó 78 millones de dólares EE.UU., un aumento de 42% en 5 años y el segundo

más grande en el registro de las relaciones bilaterales, posicionándose como un importante socio comercial en Asia.

4.261. Entre las exportaciones de Panamá a Hong Kong, China destacamos carne bovina, café, así como deshechos de hierro y acero. Por su parte Panamá es un importante comprador de productos electrónicos como celulares, equipos de comunicación, televisiones y también de productos laminados de hierro y juguetes.

4.262. El intercambio comercial entre ambos territorios, también se benefician de sus importantes puertos y zonas libres. El intercambio comercial entre ambas zonas francas superó los 250 millones en 2017.

4.263. Igualmente, los puertos y el Canal de Panamá juegan un importante rol en las exportaciones de Hong Kong, China hacia países en el cono sur, y ambas costas del Atlántico.

4.264. Sin duda Hong Kong, China cuenta con muchas políticas que se podrían replicar, entre ellas destacamos la importancia que juegan los sectores de logística, zonas francas y centros financieros

internacionales en ambas economías.


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4.265. Indagamos, cómo lo hacen otros Miembros, respecto a planes que pueda tener Hong Kong, China para continuar el proceso de la consolidación de sus aranceles, en especial para los productos no agropecuarios cuya cobertura actual es inferior al 40%. Si bien el arancel aplicado es cero, la consolidación de estos juega un rol importante en la reducción de la incertidumbre para los comerciantes.

4.266. Felicitamos a Hong Kong, China por su participación en grupos como MSMEs, Comercio

Electrónico y Facilitación a las Inversiones para el Desarrollo, además, por ser el primer Miembro en firmar el Tratado de Facilitación del Comercio y notificar sus compromisos en la categoría A.

4.267. Esperamos una continua participación en los temas de transferencia de tecnología, comercio electrónico, servicios y facilitación. Sus contribuciones serán de gran beneficio para la OMC y el desarrollo de los diálogos.

4.268. Deseamos a Hong Kong, China mucho éxito en este examen y destacamos la admirable

gestión de su delegación en Ginebra.

EL SALVADOR

4.269. Entrando en materia a este ejercicio, quisiéramos compartir un resumen de la relación bilateral con Hong Kong, China. En el marco bilateral, el comercio bilateral durante el periodo 2015 a 2017 totalizaron en promedio 24 millones de dólares EE.UU., habiendo un saldo comercial a favor de Hong Kong por 15 millones de dólares EE.UU.

4.270. Dentro de los principales productos salvadoreños exportados hacia Hong Kong se destacan:

los reptiles vivos, pescados y prendas de vestir. A su vez, los principales productos importados por El Salvador desde Hong Kong son prendas de vestir, etiquetas impresas, cintas elásticas, manufacturas de plástico, teléfonos móviles, entre otros.

4.271. De los informes presentados, en el ámbito económico deseamos resaltar el repunte del crecimiento económico de Hong Kong en 2017 del 3,8%, en comparación al crecimiento moderado de los años anteriores con tasas de 2,4% en 2015 y 2,2% en 2016, según su informe. Asimismo, Hong Kong, China continúa siendo uno de los principales centros comerciales y financieros del

mundo, ocupando el séptimo puesto mundial por lo que se refiere al comercio de mercancías en 2017 y el sexto mayor centro bancario del mundo por su posición exterior y el sexto mayor mercado de valores en términos de capitalización bursátil.

4.272. De igual forma se subraya el desempeño en materia fiscal, en el que Hong Kong ha mantenido un superávit fiscal durante 14 años consecutivos, así como las estrategias formuladas para aprovechar dicho superávit y orientarlos a inversiones en Hong Kong y aliviar las cargas a su

población, tal como indican en su informe.

4.273. En cuanto a su apertura comercial, observamos que Hong Kong ha mantenido su liderazgo

en esta materia, con aranceles aplicados nulos. No obstante, más de la mitad del arancel aduanero sigue sin consolidar.

4.274. En el marco multilateral, felicitamos a Hong Kong, China por su compromiso y contribución al sistema multilateral de comercio. Prueba de ello es que fue el primer Miembro de la OMC en aceptar el Acuerdo sobre Facilitación del Comercio, aplicando todas las disposiciones de la sección I

de dicho Acuerdo al entrar este en vigor el 22 de febrero de 2017. Asimismo, destacamos la participación activa de la Misión de Hong Kong en todos los foros de la OMC, en particular la excelente labor de la Señora Young como Presidente de este Órgano en el periodo anterior.

4.275. Por lo anterior no nos queda más que desearles muchos éxitos en este ejercicio.

PAKISTAN

4.276. Pakistan and Hong Kong, China (HKC) enjoy very good bilateral relations. Trade between

the two countries stands at around USD223.04 million, with Pakistan's exports at about USD149.57

million, and imports from Hong Kong at USD73.47 million in 2015.


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4.277. HKC is an excellent example of a successful economy with a strong external trade component. HKC's trade-to-GDP ratio was 375% in 2017. It is encouraging to note that Hong Kong, China's economy grew by 3.8% in 2017 compared to 2.4% in 2015 and 2.2% in 2016.

4.278. Among the many achievements of Hong Kong China's economy, one of the most significant is the contribution to global financial services. The financial services industry accounted for 17.7% of HKC's GDP and employed close to 6.7% of the total labour force in 2016. HKC is now the world's

sixth largest banking centre in terms of external positions and had the sixth largest stock market in terms of market capitalization.

4.279. The long-term credit ratings of the HKC demonstrate an admirable stewardship of the economy. HKC has also been at the forefront of technological advances with the Hong Kong Monetary Authority (HKMA) establishing the Fintech Facilitation Office in 2016 to facilitate the healthy development of the fintech ecosystem.

4.280. Hong Kong China is a strong supporter of the MTS at the WTO. In the area of Trade Facilitation, HKC was the first Member to accept the Trade Facilitation Agreement in December 2014 and designated all its provisions under Category A for immediate implementation. It's implementation of the Trade Single Window (TSW) for one-stop lodging for trade declaration and customs clearance purposes, serve as a good example for other economies.

4.281. Before closing, we wish to highlight the active role played by Hong Kong, China at the WTO under the guidance of Ms. Irene Young. We appreciate her relentless efforts and contributions along

with her team in Geneva to advance the multilateral system under the WTO. Pakistan and Hong Kong, China have often collaborated on issues of mutual interest at the WTO and bilaterally and hope to continue the good relations of cooperation.

4.282. We wish Hong Kong, China a very successful Trade Policy Review.

CAMBODIA

4.283. Cambodia associates itself with the statement made by Singapore on behalf of ASEAN in the context of regional cooperation. We would like to stress that dialogues and relations between ASEAN

Members States and Hong Kong, China are of strategic importance. We welcome the signing ASEAN-Hong Kong Free Trade Agreement and Investment Agreement last year, as these agreements will help strengthen the regional cooperation by creating more opportunities for ASEAN Members States to expand trade and investment with the aims to boosting economic developments in the region.

4.284. At the WTO, we commend Hong Kong, China for being the first WTO Member to accept the

Trade Facilitation Agreement, in addition to its active participations in WTO discussions to preserve and strengthen a rule-based multilateral trading system and its participations to negotiate WTO issues including its contributions to building on new issues disciplines such as e-Commerce,

Investment Facilitation and Micro Small Medium Enterprises (MSMEs).

4.285. Taking this opportunity, on behalf of my delegation, I would like to commend the Hong Kong, China delegation based in Geneva led by Ms. Irene Young for such efforts and important role played in the WTO for this review as well as aforementioned WTO activities.

4.286. In the bilateral ties, companies and investments from Hong Kong, China establishing in Cambodia include a wide range of sectors, such as finance, construction, legal and accounting, as well as manufacturing. In 2016, Cambodian exports to Hong Kong, China accounted for almost USD300 million, and Cambodia's imports from Hong Kong, China were valued at more than USD500 million, making Hong Kong, China become the eighth largest trading partner, 13th largest export market and seventh largest source of imports for Cambodia. In 2017, it is reported that 13% of the total trade between Cambodia and the Mainland of China was routed through Hong Kong,

China. This affirms that Hong Kong, China is a significant trade and investment partner for Cambodia.

4.287. With this remarkable trend, we hope to explore more opportunities to expand more trade and investment activities between Cambodia and Hong Kong, China.


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4.288. In closing, my delegation wishes Hong Kong, China a successful Trade Policy Review.

COSTA RICA

4.289. Hong Kong, China is a close friend of Costa Rica. We share our common interest in strengthening the Multilateral Trading System through a middle ground approach, coincide as Friends of Anti-Dumping Negotiations, as members of the Information Technology Agreement and its expansion, and we have both seen the potential that negotiations in Services and Environmental

Goods could bring to our peoples. In this line, there are similar circumstances with which Costa Rica can relate to as well, for instance the vulnerability to natural disasters, these days infused by climate change, and the importance that education and skills have on making a small population more competitive.

4.290. With a very open and stable economy, and little to none trade restrictions to imports and

exports, Hong Kong, China stands out in this House with an impeccable record maintaining up to

date its notifications, and leading by example in matters of transparency. Their orientation towards a knowledge-based society mainly focused on Services, contributes 92% to its GDP and 88% to employment. This has positioned Hong Kong, China as a hub for global trade and financial center. Also, the contribution of Tourism cannot be overlooked, with a total spending of USD38.1 billion in 2017.

4.291. Nevertheless, such a progressive trade policy faces external challenges, such as being subject to the volatility of international markets, rising trade protectionism, high housing prices, an

ageing population and income disparities, despite its strong macroeconomic fundamentals and performance.

4.292. We congratulate Hong Kong, China for being the WTO member to approve the Trade Facilitation Agreement with all its provisions under Category A. In the World Bank's Ease of Doing Business ranking they are placed 5th, and 6th in the World Economic Forum's Global

Competitiveness Index. Moreover, Hong Kong, China ranks 4th destination of Foreign Direct Investment worldwide and 6th source of outbound investment.

4.293. In current times, when there is so much at stake and the Multilateral Trading System needs maximum support and engagement from its friends, there is plenty to learn from the freest, most open economy in the world.

4.294. This is my very last intervention in this House before terminating functions next Friday, and I can't leave without closing with a personal message for my very dear colleague Irene Young, a friend since the day I arrived in Geneva. It has been admirable to me all the effort Irene has put

into making this a better organization, contributing everything that Hong Kong, China has to offer as a very distinguished member of the WTO.

4.295. Two particular memories I am very fond of. One is our Popcorn Club, a very formal but unofficial coalition of friends that go together to the cinema every once in a while, all perfectly

coordinated and logistically executed by Irene. Last week that you were not here my performance as your deputy in charge of the group watching Bohemian Rhapsody was embarrassingly poor so I am very glad that you are back in town.

4.296. Second, the day when an EGA negotiation round had an unexpectedly long pause while a few parties entered into a caucus and the rest of us had to figure out creative ways to be entertained. That day you and I sang one of the few Chinese songs I know, which goes something like this:

Ni wen wo ai ni you duo shen Wo ai ni you ji fen Wo di qing ye Zhen, wo di ai ue Zhen Yue liang dai biao wo de Xin

Ni wen wo ai ni you duo shen Wo ai ni you ji fen

Wo di qing bu yi, Wo de ai bu bian Yue liang dai biao wo de Xin


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4.297. Thank you for your friendship, which will continue beyond Geneva, and congratulations on a very successful Trade Policy Review.

BRAZIL

4.298. Brazil is pleased to take part, once again, in the Trade Policy of Hong Kong, China. Between 2014 and 2017, the period covered by this review, Hong Kong, China continues to show impressive results and is an example of success based on an open and market oriented economy. During this

period, Hong Kong, China also showed strong fiscal and financial fundamentals, which should provide a degree of protection from any volatility in international markets. However, as pointed out by Hong Kong, China in their report, as a small open economy, economic outlook hinges on global economic conditions. It is no surprise — therefore — that one of Honk Kong, China's main trade policy objectives includes the support for strengthening the rules based multilateral trading system and the WTO. Brazil fully agrees with this perspective.

4.299. 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 transparent foreign investment regimes. All applied MFN tariffs are zero, and all agricultural tariffs are bound. Moreover, Hong Kong, China, with its well-developed infrastructure, is an example of efficiency in logistics and customs procedures. Therefore, Hong Kong, China is ranked highly by indicators of competitiveness and ease of doing business.

4.300. Nevertheless, with respect to non-agricultural goods, a great part of the tariff lines remains

unbound. Brazil believes that a higher level of bound tariffs would contribute to improve the predictability of the tariff regime of the territory. Thus, Brazil encourages Hong Kong, China's authorities to increase the number of bound tariffs.

4.301. In concluding, let me wish a successful Trade Policy Review to Hong Kong, China.

PERÚ

4.302. Tomamos la palabra muy brevemente para saludar los desarrollos positivos en la economía de Hong Kong, incluidos el crecimiento constante, la reducción de la inflación, el superávit fiscal,

etc., así como los éxitos en el plano comercial, especialmente el crecimiento de los intercambios en un ambiente de gran libertad comercial, así como la conclusión de varios Tratados de Libre Comercio, y el apoyo al sistema multilateral de comercio, incluida la constante participación constructiva de su delegación permanente en Ginebra.

4.303. Hong Kong y Perú somos socios en APEC, en donde apreciamos su participación, tan activa como en esta Organización.

4.304. Como lo dijo el Embajador Suescum es muy difícil cuestionar a un maestro en temas de apertura y de implementación de acuerdos internacionales, así que baste con animar el proceso de

revisión de las leyes de competencia que aplican a las fusiones de empresas, que está ya previsto, de acuerdo con el contenido del informe de la Secretaría.

4.305. Finalmente, le deseamos a la delegación de Hong Kong un exitoso examen de sus políticas comerciales.

NIGERIA

4.306. Since the last review in 2014, Hong Kong, China (HKC), has maintained one of the most open trade and investment regimes globally, which serves as the backbone of its successful integration into the global economy. We note from the Secretariat report, that between 2014 and 2017, the economy of HKC grew at an average of 2.8% annually. In this regard, HKC should be commended for sustaining these characteristics, strengthened by a sound legal system and supported by transparent regulatory settings. Therefore, Nigeria, like other WTO Members, can benefit from Hong Kong, China's remarkable achievements, which illustrates how an open trade and

investment regime is crucial in harnessing the benefits of global integration.


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4.307. We are encouraged to note that consistently, HKC takes its rights and obligations in the WTO seriously. For example, its notifications are up to date, and as the first WTO member accepting the Trade Facilitation Agreement (TFA), HKC is fully committed to the implementation of all the provisions in section 1 of the TFA, without flexibilities, upon the entry to force of the TFA on the 22nd of February 2017. It is on the basis of this exemplary leadership, and inspiration, that Nigeria, in demonstration of our commitment, was one of the first 10 WTO members, to notify its category

A commitments under the TFA in September 2014, taking a cue from HKC. Nigeria, is also strongly committed to the seamless implementation of the TFA, in the context of the ongoing reforms by the Government, including improvements in the business environment, especially, ease of doing business. In this regard, there are useful lessons to be learnt from the HKC's experience.

4.308. Nigeria is pleased to note the strong commitment of HKC in taking a balanced and progressive approach to strengthen the functions of the WTO and preserve its credibility and

relevance. We both share these core objectives. As partners, HKC should be commended for its

active engagements, with open. mind and pragmatic approach, in the joint initiatives; such as domestic regulation on Trade and-services, e commerce, investment facilitation for development, and MSMES. We have no doubt that the key and positive messages highlighted in the concluding remarks at the last TPR in 2014, will be reiterated, upon the conclusion of this review, which is not accidental.

4.309. Notwithstanding its achievements, as noted in the Secretariat report, HKC is faced with some

economic challenges, notably, some external and dynamic risks to its sustained growth, including potentially sharp increases in interest rates and heightened volatility in International Financial Markets, rising trade protectionism, persistently high housing prices and income disparities. We are mindful of these challenges, mentioned in the Secretariat report, and also highlighted in some of the pervious interventions. However, we are happy to note that the authorities of HKC are already implementing appropriate measures, as well as taking action necessary, to address some of these challenges, including specific concerns raised by some members.

4.310. In conclusion, my delegation would like to acknowledge the role and contributions by the HKC Permanent Representative Ms. Irene Young, in her capacity as the current Chair of the TRIPS Council and former Chairperson of the TPRB in 2016, to the work of the WTO, it would be remiss of me not to mention the constructive and proactive engagement of the delegation of HKC in Geneva, under her dynamic and purposeful leadership. Nigeria would continue to work closely with HKC and the rest of the membership, during this challenging period. We are confident that HKC, would

continue to play its role as an active player and make its contributions according to its capacity.

4.311. We wish Hong Kong, China a successful 8th TPR review exercise and congratulate the entire delegation for their engagement.


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5 REPLIES BY THE REPRESENTATIVE OF HONG KONG, CHINA AND ADDITIONAL COMMENTS

5.1. Good morning, Chairman, Ambassador Suescum (discussant) and colleagues. First, I would like to thank the Chairman for the smooth conduct of the meeting, and the discussant for his insightful remarks. I must also thank all Members who have spoken for your very encouraging comments and candid views.

5.2. I am pleased to report that as of this morning, we have replied to all advanced written questions. Now, I wish to respond to issues in which Members have shown particular interest.

Tariff binding

5.3. A few Members enquired about our tariff binding coverage in the WTO. Our present binding

coverage is the outcome of negotiations plus additional autonomous binding that we have made since the conclusion of the Uruguay Round. The 47.5% of our tariff lines which HKC bound at zero

already cover 72.7% of our imports last year. This is of substantial commercial value.

Services liberalization

5.4. Similarly, a few Members were interested in our services commitments under the GATS, particularly for professional services. HKC maintains a liberal and open regime for trade in services. Horizontal trade restrictive measures, such as foreign equity cap or screening requirements for investment process, usually constitute the most inhibiting trade barriers to service suppliers. HKC does not have any of these. Regulatory measures are kept to the minimum necessary for the pursuit

of legitimate policy objectives. HKC remains one of the world's easiest places to do business, according to the World Bank's Doing Business Report. The Government strives to cut red tape, eliminate outdated or unnecessary regulations on business, enhance regulatory efficiency and reduce business compliance cost, with a view to further improving the ease of doing business in

HKC, thereby sustaining our global competitiveness. Making commitments under the GATS is, however, dependent on a host of factors, including the requests and offers of the parties concerned and the balance of the negotiations.

5.5. There was an observation that our telecommunications services industry grew remarkably during the review period. Indeed, all sectors of HKC's telecommunications market have been liberalized with no foreign ownership restrictions. Our objectives are to provide a level playing field in the telecommunications market and ensure that consumers get the best service available in terms of capacity, quality and price.

Coverage of competition law

5.6. This brings me to the coverage of our competition law. While Members generally noted that mergers in the telecommunications services sector, which is an important sector for us, have been

brought under the regulation of our Competition Ordinance (the Ordinance), a few Members have asked whether HKC would extend the coverage of merger control under the Ordinance. During the legislative process for enacting the Ordinance, there was no clear consensus in the community to apply the merger control beyond the present coverage. We also note that quite a number of jurisdictions have adopted a step-by-step approach in expanding their competition regime, by adding

the merger control at a later stage. The Ordinance has come into full effect for almost three years. After building up more experience and expertise, we will assess whether and when a cross-sector merger control should be introduced.

Government procurement

5.7. A few Members mentioned our implementation of the Revised GPA. Since the Revised GPA came into force in April 2014, we have amended our Stores and Procurement Regulations accordingly. With that, HKC's government procurement regime is fully compliant with the Revised

GPA. In addition, we have also introduced several measures to simplify tender procedures and

documentation, foster the participation of SMEs and promote green procurement.


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Taxation policy on electric vehicles

5.8. One Member commented on the decision regarding the tax rebate policy for electric vehicles. We wish to point out that, taking into account public views, we have decided to maintain the first registration tax concessions for electric private cars until March 2021. In addition, a "One for-One Replacement" Scheme has been introduced to provide more financial incentive to encourage eligible existing private car owners to choose electric cars when replacing their private cars. The Government

will review the first registration tax concession arrangement before its expiry.

Intellectual property rights

5.9. A number of Members expressed interest in our intellectual property (IP) rights protection regime. I would like to assure Members that HKC fully recognizes the importance of robust IP protection as one of our key competitive advantages. In fact, the World Economic Forum has ranked

HKC the 9th worldwide in terms of IP protection among 140 economies. We are committed to

enhancing our IP regime from time to time, taking into account international developments and domestic circumstances.

5.10. On the copyright front, our Customs will continue to take rigorous enforcement actions against on-line piracy. In December last year, three offenders involved in a piracy syndicate circumventing paid TV channels were sentenced to imprisonment ranging from 21 to 27 months. The sentence is the heaviest penalty ever imposed on internet piracy in HKC. The successful prosecution of the aforesaid case, coupled with on-going enforcement efforts, has sent a strong deterrent to similar

piracy activities and put across a clear message to the community that copyright infringement is a serious criminal offence.

5.11. To guard against cross-border infringing shipments, our Customs has strengthened cooperation with the express courier industry to tackle the problem at source and signed memoranda of understanding on this with major courier operators. Our Customs has deployed extra manpower

to work in the hubs of these express couriers to intercept infringing shipments and shared useful tips in their daily operation. We will continue to enhance our cooperation with other Members' IP

enforcement authorities in combating IP rights infringement cases, including counterfeit pharmaceutical products.

Free trade agreements (FTAs) and investment agreements

5.12. We are delighted to hear that some Members have expressed interest in strengthening economic ties or negotiating an FTA with HKC. We will continue to explore the possibility to expand our FTA network in line with our mutual interests and consistent with the WTO rules. For example,

we are seeking to start FTA discussions with the Pacific Alliance, covering the markets of Chile, Colombia, Mexico and Peru.

5.13. For this, we totally agree with the comment that forging high quality FTAs will not only benefit

the parties concerned but will send a strong message to reaffirm trade liberalization amid the rising trend of protectionism.

5.14. As a matter of approach, HKC has all along considered it in the interest of the economies concerned to take a holistic approach, instead of a piecemeal approach, through the negotiation of

a comprehensive FTA and an investment agreement towards a balanced outcome that would, on the one hand, enhance the market access and treatment of the business community, and, on the other hand, advance the protection of the parties from abuse. We have conveyed this specifically to individual Members in tackling rights and obligations issues in existing bilateral investment agreements and we look forward to the favourable feedback from Members concerned.

Upholding free trade and the multilateral trading system

5.15. Chairman, we are encouraged by the fact that, among the 37 Members who spoke on Day

One, over 20 of them highlighted HKC as among their top 10 trading partners or an important source

of foreign investment.


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5.16. We value these close economic ties, notwithstanding the fact that overall speaking, we are importing more goods than we export. We are also happy to see the substantial presence of foreign business and professionals, as well as some of the largest foreign chambers of commerce in Hong Kong. All these bear testimony to our open and liberal trade regime, and the success of the "One Country, Two Systems" principle which empowers HKC to maintain and develop trade relations on our own. As a free trader, we practise what we preach.

5.17. At the end of the day, trade is a two-way street, not a zero-sum game. Free trade allows our consumers and business to get the most out of their economies' comparative advantages. With their different strengths and needs, trading partners can complement each other, making the pie bigger and better, and the world economy as a whole stronger and healthier.

5.18. Over the years, the rule-based multilateral trading system has proven to be crucial to the continued growth and sustainable development of Members' economies. As a founding Member of

the WTO, HKC pitches strongly for this system, and will continue to play an active and constructive role in strengthening it. At this critical juncture in particular, HKC will join efforts with other Members to address challenges facing the WTO and stands ready to engage constructively in discussions to modernize the Organization while upholding its core values in promoting free and open trade.

Concluding remarks

5.19. In closing, I would like to, once again, express our appreciation to the you, the discussant, all participating Members and the Secretariat for their valuable contributions to the fruitful

discussions during our TPR. HKC values the frank and positive exchanges with all Members, and finds this exercise most useful in enhancing the transparency and Members' understanding of our trade regime. We look forward to renewing this dialogue at our next TPR. Thank you.

DISCUSSANT

5.20. I wish firstly to extend my personal and warm thanks to Director General Yan and her team, to Hong Kong China's, Geneva-based delegates, to all the delegations that participated in this review, to you, Chair, and to the Secretariat, for their hard work throughout this exercise.

5.21. As in 2014, Members expressed continued interest in several areas. I won't go over all the areas we covered on the first day, but I am satisfied that Hong Kong, China, diligently provided much useful information in response to comments made, and to all the questions posed.

5.22. Members clearly recognized that there has been palpable progress on many issues since 2014. Perhaps just as importantly, Members also clearly recognized that HKC remains a role model of openness and business friendliness.

5.23. Through its long trading history, HKC has transitioned from being outward looking by need, to become even more so by careful design. Overall, we heard positive comments about HKC's trade

regime, how its openness and macroeconomic policies and structural reforms have resulted in continued positive economic performance, with strong real GDP growth, and budget surpluses that give HKC room to deal with real domestic challenges and with external one such as the uncertainties of increasing trade protectionism.

5.24. All the while, Members acknowledged that HKC has remained committed to the MTS. Members

recalled and congratulated HKC for being the first Member to ratify the TFA, and that it designated all its provisions for immediate implementations. In this vein, Members acknowledged and praised continued efforts to facilitate transhipment, improve IT in road cargo tracking systems, implementing a trade single window, and its authorized economic operator programme, among other steps.

5.25. The review made clear also that in addressing FDI, HKC has addressed both inward and outward investment – it ranks 4th and 6th worldwide, respectively, according to UNCTAD. HKC

continues to promote a business-friendly environment, streamlining various related processes. It

was able, for example, to point to advances to further liberalize customs procedures recognized as already very efficient. It also explained progress made in implementing its competition legislation, about which it received several questions.


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5.26. Members recognized that HKC's applied tariffs are zero, while pointing out that over half the schedule is remains unbound. This will be of importance in negotiations. It was clear also, that HKC has moved in very important ways from "made in Hong Kong" to "designed and planned in Hong Kong China". HKC has underscored that it is prioritizing creative industries and innovation. Perhaps in recognition of this, and the zero applied tariffs, when touching on access, Members were especially keen on services. Intellectual property policy, protection and enforcement was also very important

for Members. Many questions were asked on these aspects of trade policy.

5.27. HKC reaffirmed its commitment to its substantial and meaningful negotiating outcomes. It underscored that it's bilateral and regional agreements were always viewed as complementary and supportive of the MTS. Several Members pointed to innovative provisions in their bilateral agreements, e.g., related to health and environmental issues. There were expressions as well of interest in negotiating a new agreement, and to modernize existing ones, including BITs. One

Member asked about HKC's vision for participation in regional integration schemes, political

coordination with ASEAN, and the exchange of financial information.

5.28. Members praised the very active role played by HKC's Mission in Geneva, most recently under Ms Irene Young. The Mission is acknowledged as vocal, constructively engaged, and highly respected.

5.29. I believe the work over the last few months and days has resulted in a useful and fruitful exchange, characterized by open and constructive engagement. There is still some follow-up left to

do regarding a few questions received very recently, but not too much. I have high hopes that HKC will be able to refer to the results of this review when planning future negotiations, policy decisions, and mapping its future trade links, whether by land, air, sea, or cyberspace.

5.30. Thanks to everyone for another productive and useful review. I wish everyone from out of town a very happy return.

EUROPEAN UNION

5.31. Let me first thank the delegation of Hong Kong, China for the comprehensive replies to our

questions and for using the alternative timelines, which have allowed us to review the replies in advance of the meeting.

5.32. We just have one follow-up question, which we have submitted in writing and we look forward to the reply in due course.

5.33. In its statement on Monday and this morning, Hong Kong, China recalled its staunch support to the multilateral trading system and shared its readiness to "engage constructively in discussions

to modernize the WTO". The EU welcomes this statement and we look forward to working with Hong Kong, China to advance the WTO modernization debate.

5.34. In this context, the EU would like to recall the written question we raised regarding Hong Kong, China's designation and status in the WTO, and its response that it does not make use of any Special and Differential Treatment in existing agreements. The EU takes note of the reply would like to thank Hong Kong, China for this clarification and its readiness to engage in discussions on such systemic questions that face the WTO. The EU firmly believes in the importance of having

an open and frank discussion on these issues.

5.35. In conclusion, we are confident that Hong Kong, China will make full use of the remarks and recommendations of the WTO Members as well as the Discussant to continue further improving its already open trade and investment policy and to continue playing an active and constructive role in strengthening the multilateral trading system and in modernizing the WTO.

5.36. We look forward to taking further stock of the progress achieved at the next TPR in 5 years' time.


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UNITED STATES

5.37. The United States would like to express sincere appreciation for the presence and hard work of Director-General Yan, Ambassador Young, and the entire delegation of Hong Kong, China in this Trade Policy Review, as well as constant thoughtful and active engagement here at the WTO. We also thank Ambassador Suescum for his excellent performance as Discussant, and extend our admiration to all the extremely competent professionals in the Secretariat.

5.38. The United States would like to thank Hong Kong, China for detailed and informative answers to our previously submitted written questions. We have submitted a single follow-up question overnight: that question was "To further lend to the predictability of the multilateral trading system, is Hong Kong in a position to declare it will forego seeking special and differential treatment in future WTO agreements?"

5.39. We also wish to express thanks to Hong Kong for addressing some issues of importance raised

by the U.S. during Day 1, including intellectual property enforcement issues, copyright issues and digital piracy and electric vehicles.

5.40. The United States is very grateful for a good and close relationship with Hong Kong, China both bilaterally and here at the WTO. We note that Hong Kong as a historic center for open and free trade is home to close to 1400 subsidiaries of U.S. companies, many of which serve as regional headquarters, and appreciate Hong Kong as one of the largest U.S. export markets for goods and agricultural products. In addition, the U.S. is happy to engage in fruitful and ongoing educational,

cultural, and professional exchanges with the vibrant and energetic people of Hong Kong, China.

5.41. In closing, we would like to congratulate everyone on a successful TPR, and to express our best wishes going forward.

CHINA

5.42. We would like to thank the delegation of Hong Kong and also the Chair, yourself, and the Discussant and the WTO Secretariat for successfully holding this Trade Policy Review. We would also like to congratulate Hong Kong, China for another successful and productive review.

5.43. We are impressed by Members' positive comments and the commendation on Hong Kong, China's implementation of WTO obligations, its active participation in the WTO and also its constructive contribution to this Organization.

5.44. We look forward to Hong Kong, China's continued role in this Organization, especially at this critical juncture.

MS. SALINA YAN (HEAD OF DELEGATION)

5.45. Thank you Chair. I think it is only left for me to thank Members for all your comments and input and very much constructive advice on how we can continue to keep up our work in conducting a free and open economy for Hong Kong, and in participating very constructively in the work of this House in the years ahead, and especially in the time before us because we are facing a very important stage of development for us all. I would like to thank you once again for your very hard work and chairmanship, Chair, and the very much insightful remarks and reminders for us from Ambassador Suescum. Thank you, we will be taking the plane back home this evening and my team,

for sure, and I, will bring with us all the advice and views and your good wishes for us back home. And I look forward to continuing our friendship and very professional working relationship.


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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. 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.

6.2. 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.

6.3. 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.

6.4. 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.

6.5. 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).

6.6. 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.

6.7. 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.

6.8. 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.

6.9. 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


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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.

6.10. 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.

6.11. 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.

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