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TRADE AND INDUSTRY

discriminatory procurement system, and improves access of HKSAR goods and services to the government procurement markets of other parties.

During the first half of the year, the HKSAR Government and the private sector continued to emphasise to the USA administration and members of Congress the adverse effects on Hong Kong's economy if the USA were to withdraw China's Most Favoured Nation (MFN) trading status, or to impose conditions on the renewal of the status. On May 30, President Clinton announced his decision to renew China's MFN trading status unconditionally for another year. A joint resolution disapproving the President's decision on MFN was introduced but was defeated by a floor vote in the House of Representatives on June 24.

The outcome removed for the time being uncertainty over Sino-USA trade relations, and allowed Hong Kong business people to plan and conduct their operations accordingly. The Mainland of China and the USA are Hong Kong's two largest trading partners and good relations between them are of vital importance to the HKSAR maintaining its status as a trading, financial and investment centre.

Trade Department

The Trade Department is responsible for Hong Kong's commercial relations with trading partners. It implements trade policies and agreements, and conducts import and export licensing and origin certification.

The department consists of five divisions. The Multilateral Division deals with the multilateral aspects of the HKSAR's external commercial relations, such as its participation in the WTO and the Organisation of Economic Co-operation and Development (OECD). The Regional Co-operation Division takes care of activities related to the Asia-Pacific Economic Co-operation forum (APEC) and the Pacific Economic Co-operation Council (PECC). In addition, the Regional Co-operation Division is responsible for multilateral matters relating to market access and government procurement.

The Asia and Americas Division and the Europe Division deal with bilateral commercial relations with the HKSAR's trading partners in their respective geographical areas. Such work includes the conduct of trade negotiations and the implementation of textiles agreements, as well as the collection and dissemination of information on developments which may affect the HKSAR's external trade, especially those relating to trade policies and measures adopted in its major markets. The Europe Division also has responsibility for multilateral matters relating to anti- dumping, rules of origin, competition and investment.

The Systems Division is responsible for the textiles export control system, the computerisation of the department's licensing systems, origin certification, the import and export licensing of commodities other than textiles, the rice control scheme and common services.

The department is assisted in its work on commercial relations by 10 overseas Hong Kong Economic and Trade Offices. All overseas offices are under the administration of the Trade and Industry Bureau.