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OVERVIEW
The Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China (PRC) is firmly committed to an open market policy which applies to all trade, as well as to all investments in the HKSAR.
Hong Kong has been a Special Administrative Region of the PRC 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 the continuation of Hong Kong's capitalist economic and trade systems, and the free movement of goods and capital. Hong Kong remains a free port and a separate customs territory with its own customs boundary. Tariff preferences and other similar arrangements obtained by the HKSAR continue to be enjoyed exclusively by the HKSAR. The Basic Law also provides that the HKSAR may participate in relevant international organisations and international trade agreements under the name of "Hong Kong, China". |
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In 1986, Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT). Accordingly, Hong Kong was one of the founding 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 the World Customs Organization) in 1987 and the Asia-Pacific Economic Cooperation (APEC) in 1991. After 1 July 1997, Hong Kong's status in these and other international organisations remains unchanged except that our participation is now under the name of "Hong Kong, China".
HONG KONG'S ECONOMY IN 2010
The economy of Hong Kong is externally oriented and highly dependent on trade with the rest of the world. Recovering from the global recession of 2009, Hong Kong's Gross Domestic Product (GDP) sprang back sharply by 7.0% in real terms in 2010. The value of total merchandise trade rose to C$848 billion (367% of GDP) with imports and exports at C$446 billion (193% of GDP) and C$402 billion (174% of GDP) respectively. Hong Kong was the world's 10th largest trading entity in goods -- the 11th largest exporter and the 9th largest importer.
The services sector continues to be very important to the Hong Kong economy. It accounted for 88% of the total employment in 2010 and contributed 93% to the GDP in 2009. Hong Kong's trade in services has been growing steadily in the past decade, reaching C$162 billion (70% of GDP) in 2010. In the same year, Hong Kong was the world's 14th largest commercial services trading entity -- the 11th largest services exporter and the 18th largest services importer.
Fact 1 :
HONG KONG IS AN IMPORTANT MARKET FOR CANADIAN GOODS
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In 2010, Hong Kong's merchandise trade with Canada rebounded sharply. Merchandise imports from Canada grew by 31.7% to C$1.6 billion in 2010. Canada ranked 24th among suppliers of goods to Hong Kong and reciprocally, Hong Kong was the 15th largest export market for Canada.
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Major Canadian exports to Hong Kong include non-ferrous metals; meat and meat preparations; raw hides, skins and furskins; as well as fish, crustaceans, molluscs and aquatic invertebrates, and preparations thereof.
Fact 2 :
HONG KONG IS AN IMPORTANT LOCATION FOR CANADIAN INTERESTS
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Hong Kong is ideally located in relation to the Pacific Rim and the Mainland of China (Mainland China).
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Hong Kong welcomes overseas investment and offers an environment in which there is a free flow of capital and return on investment without exchange controls.
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All companies, foreign or local, benefit from the government's policy of providing an efficient business environment and supporting infrastructure, including good communications; efficient port and airport facilities; a stable currency free from exchange controls; a simple tax structure and low tax rates; and an established legal and judicial system.
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There are currently two Canadian provincial government offices in Hong Kong: the Government of Alberta Office (mainly handles trade and investment matters) and the Service d'Immigration du Quˆmbec.
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As at 1 June 2010, there were 15 regional headquarters, 33 regional offices and 44 local offices in Hong Kong representing their parent companies in Canada.
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Hong Kong is one of the world's major financial centres in which banking and insurance play a vital role. There are six Canadian banking institutions in Hong Kong, including Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Royal Bank of Canada and Scotiabank (Hong Kong) Limited. There are also seven Canadian or Canadian-controlled insurance companies authorised to operate in Hong Kong, including Manulife (International) Limited and Sun Life Hong Kong Limited.
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Canadian-controlled companies also participate actively in securities and futures trading and in the field of investment advice. There are over 15 Canadian-controlled firms engaging in brokerage and/or investment advisory business in Hong Kong.
Fact 3 :
CANADA IS AN IMPORTANT MARKET FOR HONG KONG GOODS
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In 2010, Canada ranked 17th among Hong Kong's domestic export markets of goods. Domestic exports of merchandise to Canada valued at C$106 million. Reciprocally, Hong Kong was Canada's 56th ranking import source.
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Major Canadian purchases from Hong Kong include telecommunications and sound recording and reproducing apparatus and equipment; articles of apparel and clothing accessories; jewellry, goldsmiths' and silversmiths' wares, and other articles of precious or semi-precious materials; as well as miscellaneous edible products and preparations.
Fact 4 :
CLOSE LINKS BETWEEN CANADA AND HONG KONG
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Canada continues to be a popular destination for Hong Kong emigrants. In 2009, almost 1,000 persons emigrated from Hong Kong to Canada.
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More than 4,000 students from Hong Kong are pursuing their studies at Canadian schools.
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There are over 150,000 Canadian-educated alumni and over 20 active alumni associations in Hong Kong.
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In 2010, there were around 425,000 Canadian nationals visiting/residing in Hong Kong. Canadians represent one of the most significant foreign communities in Hong Kong.
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Hong Kong is an important source of investment for Canada. The latest figures show that Hong Kong's stock of foreign direct investment in Canada stands at C$6.2 billion. As at end 2009, Canadian direct investment in Hong Kong was C$6.4 billion.
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In January 2008, Hong Kong and Canada signed a Memorandum of Understanding (MOU) on investment promotion co-operation. The MOU reinforces the well-established trade and economic relations between Hong Kong and Canada.
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In December 2009, Canada and Hong Kong signed the Canada-Hong Kong Working Holiday Arrangement, providing further opportunities for Canadian and Hong Kong youth to gain professional and personal experience in each other's territory.
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There are 80 direct scheduled passenger flights each week in each direction between Hong Kong and Canada, operated by Air Canada and Cathay Pacific Airways. Besides, Cathay Pacific Airways also operates all-cargo services to Vancouver and Toronto.
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The Canada-based Hong Kong-Canada Business Association (HKCBA) has active Chapters in major Canadian cities including Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa, Montreal and Halifax. At present, HKCBA has about 1,300 corporate and individual members in Canada, with connections to 33 similar business associations in 24 countries - with approximately 10,000 individual associates - around the world through the Federation of Hong Kong Business Associations-worldwide. Being one of the largest bilateral trade associations in Canada, HKCBA works closely with its Hong Kong partner organisation - the Canadian Chamber of Commerce in Hong Kong. Founded in 1984, HKCBA's mission continues to be promoting and encouraging increased commercial and economic activities between Canada and Hong Kong, as well as assisting Canadian business people in doing business in Hong Kong, and, through Hong Kong, with Mainland China and South East Asia.
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The Canadian Chamber of Commerce in Hong Kong is the largest Canadian business organisation outside Canada providing an extensive networking platform for its members. It is also one of the largest and most active international chambers in Hong Kong and one of the most influential business groupings in Asia-Pacific. Currently, it represents more than 1,100 members with business interests in Canada, Hong Kong and Mainland China.
Fact 5 :
HONG KONG PRACTISES FREE TRADE
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Hong Kong is a staunch supporter of the multilateral trading system and adheres to the WTO/GATT principles of non-discrimination and most-favoured-nation treatment. Hong Kong takes seriously its rights and obligations as a member of the WTO. Our free trade policy applies to both merchandise trade as well as trade in services.
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Hong Kong was ranked, 17 years in a row, the world's freest economy by the Heritage Foundation in its 2011 Index of Economic Freedom. The Cato Institute's 2010 Annual Report on Economic Freedom of the World also awarded Hong Kong the same accolade.
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Hong Kong does not subsidise its exports or any particular sector of its economy.
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Hong Kong does not maintain any barriers to trade.
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Hong Kong does not levy any tariffs. As an internal tax to raise revenue, excise duties are levied on cigarettes and tobacco, spirituous liquor with alcoholic strength over 30%, methyl alcohol and some hydrocarbon oils, whether imported or domestically produced. In 2010, around 1.7% of our total imports were subject to excise duties.
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Hong Kong treats foreign and local companies on the same footing.
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Imports from Canada compete freely with locally-made products and imports from other trading partners. The value of imports from Canada had been rising steadily at an average annual rate of 5.2% from 2005 to 2010. Following the strong rebound in 2010, the value of imports from Canada stayed robust on entering 2011, with a year-on-year growth of 11.0% recorded in the first five months of the year.
Fact 6 :
HONG KONG RESPECTS INTELLECTUAL PROPERTY RIGHTS
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Hong Kong has an established legal framework for the protection of intellectual property rights in patents, trade marks, copyright and registered designs. Our intellectual property legal framework is fully compatible with our obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The Copyright Ordinance is being amended to further enhance protection of copyright works in the digital environment.
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Hong Kong is committed to maintaining a robust intellectual property regime and its status as a responsible trading partner. Hong Kong Customs has a strong and dedicated team comprising some 400 officers to enforce criminal sanctions against intellectual property right infringements. Another 3,400 officers are responsible for interception of contraband, including pirated and counterfeit goods, at boundary control points and for intelligence analysis. With the rigorous enforcement actions taken, the infringement situation in Hong Kong has been brought under firm control.
Fact 7 :
HONG KONG'S LABOUR FORCE IS PROTECTED BY LEGISLATION
ECONOMIC AND TRADE OFFICE
Hong Kong has an Economic and Trade Office (ETO) in Canada. The ETO represents Hong Kong on matters related to economy and trade in Canada, and helps foster trade and commercial ties between Hong Kong and Canada.
Website : http://www.hketo.ca
Trade and Industry Department
The Government of
the Hong Kong Special Administrative Region
July 2011
Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same. |
