The Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) is firmly committed to an open market policy. This policy applies to all trade, as well as to all investments in the HKSAR.

Hong Kong has become a Special Administrative Region of the People's Republic of China since 1 July 1997. The "One Country, Two Systems" principle provides the HKSAR with a high degree of autonomy in economic, trade, financial and monetary matters. This is guaranteed by the Basic Law, the mini-constitution of the HKSAR, which ensures that the important elements making Hong Kong a regional business and financial centre will extend well beyond 1997, including continuation of capitalist economic and trade systems, free movement of goods and capital, and status as a free port and separate customs territory. Tariff preferences and other similar arrangements obtained by the HKSAR will be enjoyed exclusively by the HKSAR. The Basic Law also provides that the HKSAR may participate in relevant international organizations and international trade agreements under the name " Hong Kong, China".

In 1986, Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT). Hong Kong was one of the original members of the World Trade Organization (WTO) when it was established on 1 January 1995. Hong Kong also became a member of the Customs Cooperation Council (subsequently renamed as the World Customs Organization) in 1987 and the Asia Pacific Economic Cooperation (APEC) in 1991. The status of the HKSAR in these and other international organizations remains unchanged except that our participation is now under the name "Hong Kong, China".

Trade Relations with ASEAN

• The trade relationship between Hong Kong and ASEAN is flourishing. Trade between Hong Kong and ASEAN increased 12.8% from HK$428.1 billion in 2005 to HK$483.1 billion in 2006. At the same year, ASEAN was Hong Kong's 3^rd largest trading partner, 3^rd largest market for domestic exports 3^rd largest market for re-exports, and 2^nd largest source of imports.
  
  
• Hong Kong is also an important entrepot for trade between the Mainland of China and ASEAN. Re-export of goods of Mainland origin through Hong Kong to ASEAN increased by 11.1% from HK$89.7 billion in 2005 to HK$99.6 billion in 2006.
   
• Hong Kong's domestic export of goods to ASEAN has decreased from HK$10.0 billion in 2005 to about HK$9.9 billion in 2006. The top four domestic export categories to ASEAN in 2006 were:

• Office machines and automatic data processing machines
  
  
• Electrical machinery, apparatus and appliances, and electrical parts thereof
  
  
• Tobacco and tobacco manufactures
  
  
• Textile yarn, fabrics, made-up articles, and related products

• Hong Kong's re-export of goods to ASEAN totalled about HK$133.9 billion in 2006. The top four re-export categories to ASEAN in 2006 were:

• Electrical machinery, apparatus and appliances, and electrical parts thereof
  
  
• Telecommunications and sound recording and reproducing apparatus and equipment
  
  
• Office machines and automatic data processing machines
  
  
• Textile yarn, fabrics and made-up articles, and related products

• Hong Kong's import of goods from ASEAN totalled about HK$339.4 billion in 2006. The top four import categories from ASEAN in 2006 were:

• Electrical machinery, apparatus and appliances, electrical parts thereof
  
  
• Office machines and automatic data processing machines
  
  
• Petroleum, petroleum products and related materials
  
  
• Telecommunications and sound recording and reproducing apparatus and equipment

1.The Association of Southeast Asian Nations (ASEAN) comprises Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

RC Division
Trade and Industry Department
July 2007