118 Commerce and Industry
of the preferential market access offered to Hong Kong service suppliers in 27 services areas2 under the previous two phases, the Mainland agreed to further liberalisation measures spreading across 10 of the areas3 under CEPA III. The liberalisation allows Hong Kong service suppliers to enjoy earlier or preferential access to the Mainland market beyond China's WTO commitments.
The implementation of CEPA under the framework of the WTO will further promote trade and investment flows, as well as exchanges of talent, capital and technology, between Hong Kong and the Mainland.
Liaison with the Mainland
The surge in trade flow and the improvement of the investment environment in the Mainland brought about by China's accession to the WTO since 2001 has helped boost Hong Kong's external trade and intermediary services. In addition, CEPA opens up many business opportunities in the Mainland for Hong Kong businessmen, and enhances the attractiveness of Hong Kong to overseas investors.
The Government is committed to helping the business community tap into the Mainland market, with the emphasis on the opportunities brought about by China's accession to the WTO and by 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 and 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 and the CEPA Joint Steering Committee.
Bilateral Investment Promotion and Protection Agreements
Hong Kong has bilateral investment promotion and protection agreements with 15 economies: Australia, Austria, Belgium/Luxembourg, Denmark, France, Germany, Italy, Japan, Republic of Korea, the Netherlands, New Zealand, Sweden, Switzerland, Thailand and the United Kingdom. A primary objective of these agreements is to assure overseas investors of the stable investment environment in Hong Kong.
Trade in Textiles
All quantitative restrictions on textiles exports were eliminated from January 1, 2005, in accordance with the WTO Agreement on Textiles and Clothing. Since then, Hong Kong's textiles and clothing exports have enjoyed quota-free access to the world market. The elimination of quotas has helped Hong Kong's textiles import and export trade by creating an environment that encourages it to continue to leverage 2 These are: management consulting, convention and exhibition, advertising, accounting, real estate and construction, medical and dental, distribution, logistics, freight forwarding agency, storage and warehousing, transport, tourism, audiovisual, legal, banking, securities and futures, insurance, telecommunications, airport, information technology, patent agency, trade mark agency, job referral agency, cultural, job intermediary, professional qualification examinations and individually owned stores.
3
These are: legal, accounting, audiovisual, construction, distribution, banking, securities, tourism, transport, and individually owned stores.