TRADE AND INDUSTRY
the expansion of international trade and ensures that world trade flows freely. It also serves as a forum for multilateral trade negotiations and for handling trade disputes amongst its members. The WTO's multilateral trading system is the cornerstone of the HKSAR's external trade policy.
The HKSAR is a founding member of the WTO. Its separate membership reflects the autonomy in the conduct of its external commercial relations which is guaranteed under the Basic Law of the HKSAR.
The HKSAR is a staunch supporter of free and open trade and supports the launching of a new round of broad-based and balanced multilateral trade negotiations. It believes that further trade liberalisation can help forestall backsliding into protectionism and provide the engine for sustained economic growth world-wide. Although WTO members were unable to reach agreement for launching a new round of trade negotiations at the third Ministerial Conference held on November 30-December 3, in Seattle, USA, they had moved forward in many important areas such as agriculture and services and were close to agreement in many others. Further negotiations on services and agriculture were to commence in 2000. Members continued work and discussion in Geneva, Switzerland, in order to keep up the momentum of liberalisation and with a view to launching a new round of multilateral trade negotiations. The HKSAR will continue to participate constructively in these activities.
The WTO Dispute Settlement Understanding (DSU) sets 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. It is the linchpin of the multilateral system as it is the ultimate safeguard of an equitable rule-based framework. In 1999, the HKSAR continued to play an active part in the extended review of the DSU which aimed to identify if any areas of the DSU should be improved or changed.
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 1999, 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 Pacific Economic Co-operation Council (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 Auckland, New Zealand in September. The meeting was preceded by the Eleventh APEC Ministerial Meeting, at which the HKSAR 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 actively in all three areas. The HKSAR has been a Vice-Chair of the Committee on Trade and
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