COMMERCE AND INDUSTRY
PECC, founded in 1980, is a non-governmental regional forum comprising government officials, business leaders and academics who work in their personal capacity on practical policy issues to enhance trade, investment and economic development in the Pacific region. Hong Kong joined this forum in May 1991. The Hong Kong Committee for Pacific Economic Cooperation, established in March 1990 to advise on and coordinate Hong Kong's participation in and input to the PECC process, continues to play an active role in PECC's various fora, task forces and project groups.
Observer Role in the OECD
The HKSAR is an observer on the Trade Committee and the Committee on Financial Markets of the Paris-based OECD, which are important fora for discussions on policy matters in respect of trade and financial services. Ideas introduced in these committees are often followed up in other international organisations such as the WTO and eventually translated into binding multilateral agreements or codes.
Liaison with the Mainland
China formally acceded to the WTO on December 11, 2001. It is generally expected that China's broad market-opening commitments for accession to the WTO, as well as the enhanced accessibility to overseas markets as provided for under the WTO agreements, will boost the Mainland's overall economic growth. The Mainland is Hong Kong's largest trading partner and there is a strong economic link between the two places. The Mainland's accelerated economic growth is expected to usher in enormous business opportunities for Hong Kong. The anticipated surge in trade flow and the improvement of the investment environment in the Mainland brought about by China's accession to the WTO should help boost Hong Kong's external trade and intermediary services. In addition, CEPA will open up many business opportunities in the Mainland for Hong Kong businessmen, and enhance the attractiveness of Hong Kong to overseas investors.
The Government is committed to facilitating businessmen's efforts in tapping the Mainland market, particularly the opportunities brought about by China's accession to the WTO and CEPA. It maintains close contact with the Mainland authorities at different levels through various government bureaux and departments, the Beijing Office of the HKSAR Government, the Hong Kong Economic and Trade Office in Guangdong as well as quasi-government bodies like the Hong Kong Trade Development Council (TDC). Regular high-level communication is also achieved. through mechanisms such as the Hong Kong/Guangdong Cooperation Joint Conference, the Hong Kong/Shanghai Economic and Trade Cooperation Conference and the CEPA Joint Steering Committee.
Trade in Textiles
Hong Kong's textiles exports to the European Union, Canada and the United States are subject to certain quantitative restrictions. In accordance with the WTO Agreement on Textiles and Clothing (ATC), these quantitative restrictions are being phased out over 10 years, in four stages from January of 1995, 1998, 2002 and 2005, respectively. All quantitative restrictions will have been eliminated from January 1, 2005. Hong Kong has been closely monitoring the implementation of the ATC and the operation of the Textiles Monitoring Body, the ATC's supervisory body. Through cooperation with the International Textiles and Clothing Bureau (of which Hong
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