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Trading countries should seek progress in services
Trading countries should seek to make the maximum progress possible in services, the Financial Secretary, Sir Hamish Macleod, said today (Thursday).
Addressing a luncheon of the American Chamber of Commerce, Sir Hamish said such progress should also be made in the General Agreement on Tariffs and Trade (GATT) and the World Trade Organisation (WTO), and in the Asia Pacific Economic Co-operation (APEC).
He noted that while the Uruguay Round had turned out quite well, achievements in the services area had only been modest.
"One problem with the Uruguay Round was that those who were keenest to push for liberalisation in services had not frankly thought their position through very carefully, meaning in particular the United States and the European Union.
"When they came to look in more detail at the various sectors, they found to their surprise that their own domestic service sectors were much less willing to open up than they had thought," Sir Hamish said.
"The other problem is that services is a new issue, compared to trade in goods.
"It needed - it still needs - much fundamental thought to work out what free trade means in this area. And it began to seem it might mean different things in different areas," he added.
Sir Hamish said it had been suggested by some that even Hong Kong was not entirely free trade in services.
"In some sense that is true. But it is only fair to add that in services we are nevertheless among the most liberal in the world."
He pointed out that most countries had enormous powers of self-delusion over their own performance in the spectrum of protectionism.
"In fact, in a polite way I am trying to encourage a useful habit when occasionally I am approached with some complaint about Hong Kong's performance in services.