ENG-1998 — Page 150

TRADE AND INDUSTRY

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In 1998, the HKPC continued its efforts in commercial research and development, product development and technology transfer to help the manufacturing industries move up market. During the year, HKPC established the Product Development and Innovation Institute and the Intellectual Property Services Centre to promote Hong Kong's capabilities in innovation and invention. It also actively promoted increased productivity in the services sector. Major initiatives included the establishment of the Service Quality Centre, the setting up of the Asian Benchmarking Clearinghouse, and the organisation of the 1998 Hong Kong Award for Services: Productivity. In the area of information technology, HKPC continued to promote the application of electronic commerce. It also established the Year 2000 Service Centre to help local companies combat the impending 'millennium bug'.

Hong Kong Industrial Technology Centre Corporation

The Hong Kong Industrial Technology Centre Corporation (Tech Centre) is a statutory body set up by the government in 1993. It aims to promote technological innovation and development, as well as the application of new technologies in Hong Kong industry. It has developed three major programmes: the Technology-Based Business Incubation Programme to nurture technology start-ups; the Technology Transfer Programme to foster technology culture and business-matchmaking; and R&D Support and Services Programme to support research and development activities.

Hong Kong Industrial Estates Corporation

The Hong Kong Industrial Estates Corporation develops and manages industrial estates at Tai Po, Yuen Long and Tseung Kwan O, providing 214 hectares of land in total. A fourth estate is being planned in Tuen Mun. Sites in the estates are offered at cost to industries which cannot operate in normal multi-storey buildings. Admission criteria were expanded in 1998 to include service industries.

External Commercial Relations

The HKSAR has full autonomy in the conduct of its external commercial relations. The Basic Law of the HKSAR provides that it shall be a separate customs territory and may, using the name 'Hong Kong, China', participate in relevant international organisations and international trade agreements, such as the General Agreement on Tariffs and Trade (now the World Trade Organisation WTO).

Within the context of the government's free trade policy, the HKSAR's commercial relations aim to ensure that its trading rights in overseas markets are protected and its international obligations are fulfilled. Hong Kong's success is reflected in the steady rise in the value and sophistication of its exports in recent years.

Textiles

The HKSAR textile exports to the European Union (EU), Norway, Canada and the USA were subject to certain quantitative restrictions maintained under the WTO Agreement on Textiles and Clothing (ATC) as at January 1, 1995, when it came into force. The ATC provides for phasing out of quantitative restrictions on these products in 10 years by three stages commencing on January 1, 1995, January 1, 1998, and January 1, 2002, respectively. Only Norway has implemented a phasing-out programme in a more expeditious manner. As a result, Norway removed all

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