ENG-2000 — Page 151

COMMERCE AND INDUSTRY

promoting the development of a local credit rating agency, and reviewing the training programmes and sub-degree courses for value-added employment in the information. technology and IT-related sector.

External Commercial Relations

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

Within the context of the Government's free trade policy, the HKSAR's commercial relations are aimed at ensuring that its trading rights in overseas markets are safeguarded and its international obligations fulfilled. Hong Kong's success is reflected in the volume of its total trade and sophistication of its exports in recent

years.

Textiles

The HKSAR textiles exports to the European Union, Canada and the USA continued to be subject to certain quantitative restrictions maintained under the WTO Agreement on Textiles and Clothing (ATC), which came into force on January 1, 1995. The ATC provides for phasing out of quantitative restrictions on these products in 10 years by three stages commencing in January of 1995, 1998 and 2002, respectively. The HKSAR continues to monitor closely the implementation of the ATC and the operation of the Textiles Monitoring Body, the ATC's supervisory body. Through the co-ordination of the International Textiles and Clothing Bureau (of which Hong Kong, China has been the Chairman since 1999), the HKSAR and a group of developing country exporters of textiles have been working together to ensure that the liberalisation process under the ATC is on course and to explore possibilities for further liberalisation.

The HKSAR continued to co-operate with relevant trading partners with a view to enhancing the effectiveness of efforts against illegal textiles transhipment. This co-operation included, among other things, conducting of joint factory observation visits by Hong Kong Customs officers in conjunction with US Customs representatives. The visits, while not in themselves acts of law enforcement, help to promote understanding of Hong Kong's anti-transhipment efforts. In 2000, two rounds of joint factory observation visits were conducted.

Non-Textiles Issues

With the coming into effect of the General Agreement on Trade in Services (GATS) when the WTO was established on January 1, 1995, international trade in services is now governed by a legally enforceable multilateral agreement. The HKSAR plays an active role in the WTO to ensure the proper functioning of the GATS and progressive liberalisation of trade in services. On the latter, Hong Kong has participated in the subsequent negotiations on telecommunications services and financial services. The agreements help open up global markets significantly and effectively.

The GATS mandates that there shall be successive rounds of services negotiations. to achieve a progressively higher level of liberalisation in trade in services. The first

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