ENG-2007 — Page 154

110 Commerce and Industry

enhance trade, investment and economic development in the Pacific region. The Hong Kong Committee for Pacific Economic Cooperation, which advises on and coordinates HKSAR's participation in the PECC process, continues to play an active role in PECC's activities.

Organisation for Economic Cooperation and Development

Hong Kong is an observer on the Trade Committee and the Committee on Financial Markets of the Paris-based Organisation for Economic Cooperation and Development, which are important forums for discussions on policy matters in respect of trade and financial services. Ideas introduced in these committees are often followed up in other international organisations such as the WTO and eventually translated into binding multilateral agreements or codes.

Regional Trade Agreements

The Government is committed to the primacy of the multilateral trading system under the WTO. That notwithstanding, in response to new trends in world trade, the Government will seek to enter into more economic and trade arrangements with trading partners so long as they are in Hong Kong's interests, consistent with WTO provisions, contributive to multilateral trade liberalisation, and can allow more favourable access to overseas markets for Hong Kong goods and services.

Mainland and Hong Kong Closer Economic Partnership Arrangement

The Central People's Government (CPG) and the HKSAR Government signed Supplement IV to the CEPA on June 29, 2007.

On trade in goods, the Mainland has applied zero tariff to all imported goods of Hong Kong origin since January 1, 2006, upon application by local manufacturers and upon the CEPA rules of origin (ROOs) being agreed and met. By end-2007, a cumulative total of over 1 480 products had their CEPA ROOS agreed. For trade in services, Supplement IV to CEPA introduced a total of 40 new liberalisation measures in 28 service areas, bringing the total number of CEPA service areas to 382. These new liberalisation measures will take effect from January 1, 2008 The progressive liberalisation of trade and investment measures under CEPA continues to provide impetus to the development of the Hong Kong economy and the economic integration between the two places.

Liaison with the Mainland

The Mainland's rapid economic and trade growth has helped boost Hong Kong's external trade and intermediary services. Not only does CEPA provide a window of

2

These service areas are: accounting, advertising, air transport, audiovisual, banking, building- cleaning, computer and related services, convention and exhibition, cultural, distribution, environmental, freight forwarding agency, individually owned store, information technology, insurance, job intermediary, job referral agency, legal, logistics, management consulting, market research, medical and dental, patent agency, photographic, printing, professional qualification examinations, public utility, real estate and construction, securities and futures, services related to management consulting, social service for the elderly, sporting, storage and warehousing, telecommunications, tourism, trade mark agency, translation and interpretation, transport (including road freight/passenger transportation and maritime transport).