ENG-2014 — Page 125

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Commerce and Industry

Regional Economic Co-operation

Hong Kong continues to play an active role in enhancing regional economic co-operation. It participates as a full and separate member in Asia-Pacific Economic Co-operation (APEC), a regional forum for high-level dialogue and co-operation on trade and economic issues, under the name of 'Hong Kong, China. In November 2014, the Chief Executive and the Secretary for Commerce and Economic Development represented Hong Kong in Beijing, China, at the 22nd APEC Economic Leaders' Meeting and the 26th APEC Ministerial Meeting respectively. In 2014, some 83 per cent of Hong Kong's external trade was conducted with the other 20 member economies of APEC.

The Pacific Economic Co-operation Council (PECC) is a non-governmental regional forum comprising government officials, business leaders and academics. It works on policy issues to enhance trade, investment and economic development in the Pacific region. The Hong Kong Committee for Pacific Economic Co-operation advises on and co-ordinates Hong Kong's participation in the PECC and plays an active role in the PECC's activities.

Organisation for Economic Co-operation and Development

Hong Kong participates in the Trade Committee and the Committee on Financial Markets of the Organisation for Economic Co-operation and Development, which are important forums for discussing policies on international trade and financial services.

Regional and Bilateral Trade Agreements

To secure more favourable access to overseas markets for Hong Kong goods and services, the government continues to pursue free trade agreements (FTAs) that are in Hong Kong's interests, are consistent with WTO provisions and contribute to multilateral trade liberalisation. In October, the FTA between Hong Kong and Chile entered into force. In July, Hong Kong and the Association of Southeast Asian Nations launched bilateral FTA negotiations. In addition, Hong Kong continued to participate in negotiations among some WTO Members for a Trade in Services Agreement and an agreement on environmental goods in 2014. These agreements will enhance trade and investment flows between Hong Kong and relevant markets, generate new opportunities for Hong Kong businesses, and boost economic growth.

Liaison with the Mainland and CEPA

The Mainland's rapid economic and trade growth has helped boost Hong Kong's trade in goods and services. Since the Mainland and Hong Kong signed CEPA in 2003, the two sides have. signed 10 supplements to broaden CEPA's coverage and to deepen the liberalisation in many service areas. In December 2014, the two sides signed the 'Agreement between the Mainland and Hong Kong on Achieving Basic Liberalisation of Trade in Services in Guangdong' under the framework of CEPA. The agreement opens up 153 services sub-sectors in Guangdong to the Hong Kong services industry, accounting for 95.6 per cent of all services sub-sectors according to the WTO's classification.

Under CEPA, the Mainland will apply a zero tariff to all imported goods of Hong Kong origin that meet agreed CEPA rules of origin (ROOs). As at the end of 2014, CEPA ROOS for some 1,800 products had been agreed.

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