HK-Mainland Trade Working Group meeting concluded successfully
Wednesday, March 29, 2000

The Trade Working Group set up under the Mainland and Hong Kong Special Administrative Region (HKSAR) Joint Commission on Commerce and Trade (the "Joint Commission") held its second meeting and exchanged views on a range of issues of concern to both sides, including the latest developments on the Mainland's control measures on the processing trade, and ways to enhance Hong Kong's entrepot role in further promoting trade and economic development of Hong Kong and the Mainland.

The above concluding remarks were made by co-convenors of the Trade Working Group, Mr Joshua Law, Director-General of Trade and Mr Wang Hui, Director-General of the Department of Taiwan, Hong Kong and Macao Affairs, Ministry of Foreign Trade and Economic Cooperation (MOFTEC) today (March 29).

The Mainland and HKSARG representatives of the Trade Working Group held a two-day meeting on March 28 - 29 at the Trade Department.

Mr Joshua Law said that during the meeting he was particularly pleased to note the confirmation of the implementation details of the alternative arrangements for payment of the deposit under the Shadow Margin Account Scheme applicable to the processing trade. The new arrangements will take effect on April 10. Following the provision by the Mainland representatives of a copy of the latest implementation details at the meeting, the Trade Department has immediately issued a Commercial Information Circular promulgating the details and placed a copy on the Department's website.

Mr Law said, "this should be good news to the large number of Hong Kong traders who are involved in the processing trade in the Mainland. We are deeply appreciative of the adjustments to the measures by the Mainland authorities in the past months in response to the views and suggestions of various parties in Hong Kong, including the Trade Department of the HKSARG."

Mainland's co-convenor of the Trade Working Group Wang Hui said, "since the first meeting of the Trade Working Group, communication between the trade officials of the two sides has evidently increased. The channel of communication has become more effective and conducive to promoting mutual co-operation in trade and economic issues. The importance of the Trade Working Group is widely acknowledged by the business sectors of both the Mainland and HKSAR. Furthermore, the two sides have made good progress in the exchange of information on trade and economic policies and development, study on areas of co-operation, services on information provision, and exchange visits between officials."

Mr Law said, "the meeting was conducted in a harmonious and pragmatic manner. We were forthcoming in responding to the suggestions made by the Mainland representatives at the last meeting on how to make better use of Hong Kong's free port status in further promoting trade and economic development in Hong Kong and the Mainland. We explained in detail our infrastructural facilities and the pro-active strategies to coordinate the development of land, sea and air transport with a view to strengthening Hong Kong's entrepot role as well as enhancing Hong Kong's competitiveness, operational efficiency and the business environment in general."

The two sides also had a detailed exchange of views on the techniques of compilation and analyses of trade statistics, and agreed to consider stepping up such technical exchanges to facilitate the development of Mainland-Hong Kong trade.

At the meeting the Mainland representative also briefed the HKSAR side on the Mainland's textiles quota management system. The two sides also exchanged views on the future development of each other's quota management systems.

Separately, the HKSAR representatives reflected to the Mainland side the impact on Hong Kong of the Mainland's new quarantine control measures vis-a-vis imports consisting of wood packing material from the US and Japan. Mr Law said that the Trade Department had consulted the trade to collect views and suggestions on the new measure, and reflected to the Mainland representative the difficulties faced by the trade. The Mainland representative listened seriously and undertook to convey the views to the relevant authorities with a view to resolving the problems as soon as possible.

The two sides agreed that the third meeting of the Trade Working Group would be held before the end of the year, according to need.

The Trade Department hosted a dinner last night (March 28) for the Mainland delegation to meet Hong Kong traders and discuss the development of Mainland-Hong Kong trade.

The Mainland delegation will visit the Hong Kong University of Science and Technology and the Hong Kong Industrial Technology Centre Corporation tomorrow (March 30) to better understand the development on innovation and technology in Hong Kong. The Mainland delegation will also visit the River Trade Terminal Co, Ltd. in Tuen Mun and the Modern Terminals Limited in Kwai Chung tomorrow afternoon.

The "Joint Commission" was set up last November with its first meeting held in Beijing. The "Joint Commission" provides a high level liaison and communication mechanism between the Mainland and the HKSAR on trade and commercial matters, so that the relevant Government departments can enhance communication, strengthen liaison, and foster cooperation and development in both places.

In accordance with the principle of "One Country, Two Systems" and the Basic Law provisions, the "Joint Commission" operates under the framework of relations between the state and its separate customs territory.

The "Joint Commission" has set up four ad hoc working groups, namely the Trade Working Group, the Contract Works and Labour Management Working Group, the Technology Trade and Treaty Law Working Group and the Investment Working Group. The Trade Working Group is responsible for the provision of advance information and feedback on upcoming trade and economic policies and measures on the Mainland which may have an impact on Hong Kong traders' economic activities. In addition, the Trade Working Group provides opportunities for to introduce to the Mainland government departments its trade policy and trade control systems and measures, and for both sides to exchange views on trade matters of mutual concern.