7
INDUSTRY AND TRADE
HONG KONG's trade policy seeks to promote a free, open and stable multilateral trading system; to safeguard Hong Kong's rights and fulfil its obligations as a contracting party to the General Agreement on Tariffs and Trade (GATT) and a party to the Multi-Fibre Arrangement (MFA); within the context of the GATT, to secure, maintain and improve access for Hong Kong's exports and to ensure and maintain the integrity of all measures adopted by Hong Kong to meet its obligations under multilateral and bilateral trade or trade-related agreements.
The role of the government in the economic development process is one of facilitation. The government normally intervenes in the economy only in response to the pressure of economic and social needs. It neither protects nor subsidises manufacturers. It nevertheless recognises a responsibility to provide an acceptable industrial infrastructure, particularly in terms of industrial land and manpower for industry, and to make available services which enable industry to become more competitive through productivity growth, quality improvement and product innovation. It also encourages technology transfer through an inward investment promotion programme. Industrial policies are kept under review by the Trade and Industry Branch of the Government Secretariat, which acts on the advice of the Industry Development Board (IDB). Members of the board include prominent industrialists, government officials, representatives from the tertiary education sector, and representatives of the most important trade and industry organisations. In October, the Governor announced that the IDB would be subsumed into a new Industry and Technology Development Council, which would have a wider remit to advise the government on how industry should respond to technological developments so as to maintain its competitive edge. The council would also help the government to administer a fund which supports applied research and development work in private companies. Productivity, product innovation and quality improvement services are mainly provided by the Hong Kong Productivity Council and the Industry Department. The Industry Department also promotes inward investment in Hong Kong's manufacturing industries. Responsibility for providing an efficient infrastructure within which industry can operate successfully rests with a number of government departments and other organisations, but the responsibility for monitoring the adequacy of provision rests with the Industry Department.
On the external relations front, Hong Kong was admitted into the Asia Pacific Economic Co-operation (APEC) forum in November 1991. APEC is an inter-governmental economic
79
Page 105Page 106
80