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COMMERCE AND INDUSTRY

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the liberalisation of international trade and serves as a forum for multilateral trade negotiations and dispute settlement among its members. Active participation in the WTO's multilateral trading system is the cornerstone of the HKSAR's external trade policy.

As a small and totally open economy, the HKSAR's participation in the WTO is guided by two objectives: firstly, to sustain the momentum of trade liberalisation, especially in areas of interest to Hong Kong, such as tariffs and services; secondly, to strengthen and update the multilateral rule-based trading system so that it remains an effective framework to promote trade expansion and liberalisation, as well as to protect Hong Kong against any arbitrary and discriminatory actions taken by its trading partners.

The HKSAR participates actively in the new Round of multilateral trade negotiations launched at the WTO's Fourth Ministerial Conference in Doha, Qatar, in November 2001. Hong Kong's business will benefit from the positive outcome of further multilateral trade negotiations. Its priority in this round of negotiations is to seek greater market access for its services sectors and industrial goods. While such benefits may not immediately come to light or materialise as the new Round of negotiations is scheduled for completion by January 1, 2005, the launch of a new Round serves as timely boost of confidence for the world economy.

The WTO Trade Policy Review on Hong Kong was conducted in 2002. This is a regular exercise for all WTO members, with the objective of achieving greater transparency in, and understanding of, the trade policies and practices of members. Hong Kong is subject to the review once every four years.

Regional Economic Cooperation

As an integral part of the Asia-Pacific economy and an important services, financial and trading centre, the HKSAR continued to play an active role in enhancing regional economic cooperation. Its economic links with the region remained strong. In 2002, some 83 per cent of Hong Kong's total external trade was conducted with the other 20 member economies of APEC. Hong Kong participates as a full and separate member in APEC and PECC under the name Hong Kong, China.

APEC is a regional forum set up in 1989 for high-level government-to-government dialogue and cooperation on trade and economic issues. Hong Kong joined the forum. in 1991. In October, the Chief Executive represented the HKSAR at the 10th APEC Economic Leaders Meeting held in Los Cabos, Mexico. The meeting was preceded by the 14th APEC Ministerial Meeting, at which the Secretary for Commerce, Industry and Technology represented the HKSAR.

APEC pursues its goal of free and open trade and investment by 2010 for industrialised economies and 2020 for developing economies through work in three areas trade and investment liberalisation, trade and investment facilitation, and economic and technical cooperation. Hong Kong participates actively in all three. It has been a Vice-Chair of APEC's Committee on Trade and Investment (CTI) since 1996.

Pursuant to the Economic Leaders' instruction, APEC developed in 2002 a Trade Facilitation Action Plan as the blueprint to implement the commitment of reducing transaction costs across the region by 5 per cent by 2006. Under the Action Plan, a list of concrete trade facilitation actions and measures was drawn up. APEC members would identify in the coming year actions and measures they would implement, and