TRADE AND INDUSTRY
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The first review of the WTO Dispute Settlement Understanding (DSU), which set out the rules and procedures applying to consultations and settlement of disputes between member governments concerning their rights and obligations under the provisions of the WTO Agreements, was conducted in late 1998. The HKSAR played an active part in the review and made suggestions to refine the DSU. Separately, a Trade Policy Review on Hong Kong, China, was conducted on December 7–8, 1998. It aims to enhance the functioning of the multilateral trading system by promoting transparency in, and understanding of, the trade policies and practices of WTO members.
Regional Economic Co-operation
As an integral part of the Asia-Pacific economy and an important services, financial and trading centre, the HKSAR has a role to play and contribution to make in regional economic co-operation. Its economic links with the region continued to be strong. In 1998, some 81 per cent of the HKSAR's total external trade was conducted with the other 20 member economies of APEC. The HKSAR participates as a full and separate member in APEC and PECC as 'Hong Kong, China'.
APEC is a regional forum set up in 1989 for high-level government-to-government dialogue and co-operation on trade and economic issues. Hong Kong joined in 1991. The Chief Executive represented the HKSAR at the APEC Economic Leaders Meeting held in Kuala Lumpur, Malaysia in November 1998. The meeting was preceded by the Tenth APEC Ministerial Meeting, at which Hong Kong was represented by the Secretary for Trade and Industry.
APEC pursues its goal of free and open trade and investment by 2010 for industrialised economies and 2020 for developing economies through work in three areas, namely, trade and investment liberalisation, trade and investment facilitation, and economic and technical co-operation. The HKSAR participates in all three areas and has been a Vice-Chair of the Committee on Trade and Investment (CTI) since 1996, and the Chair of the Government Procurement Experts Group under the CTI since 1995.
PECC, founded in 1980, is a forum comprising government officials, business. leaders and academics who work in their personal capacity on practical policy issues to increase trade, investment and economic development in the Asia-Pacific region. The Hong Kong Committee for Pacific Economic Co-operation (HKCPEC), set up in March 1990 to advise on and co-ordinate Hong Kong's participation in and input to the PECC process, continued to participate actively in PECC's various task forces, forums and projects, including the Trade Policy Forum, the Pacific Economic Outlook and the Financial Markets Development Project. A senior directorate officer of the government was seconded to the PECC International Secretariat in Singapore as its Director General for three years from February 1996.
Organisation of Economic Co-operation and Development
The HKSAR is an observer on the Trade Committee and the Committee on Financial Markets of OECD, which are important forums for debates and discussions on trade and financial service policy matters. Ideas introduced in these committees are often followed up in other international organisations such as the WTO and translated into binding multilateral agreements or codes.