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Press Release

Hong Kong determines to hold a successful Ministerial Conference
Wednesday, May 25, 2005

Hong Kong will spare no efforts in staging a successful Hong Kong Ministerial and work closely with other WTO Members for a timely and successful conclusion of the Doha Round of multilateral trade negotiations, the Director-General of Trade and Industry, Mr Raymond Young said today (May 25).

Speaking at a roundtable luncheon organised by the Hong Kong General Chamber of Commerce, Mr Young said Hong Kong was honoured to host the sixth Ministerial Conference of the World Trade Organization.

"Our hosting of the Hong Kong Ministerial underlines Hong Kong's active and constructive participation in the WTO and raises Hong Kong's international profile as a bastion of free trade. It demonstrates the successful implementation of "One Country, Two Systems" and provides an excellent opportunity to showcase Hong Kong as "Asia's world city," Mr Young said.

"The progress of the multilateral trade negotiations under Doha Development Agenda will be discussed in the Ministerial Conference to be held in Hong Kong between December 13 to 18 this year. If successfully concluded, the Doha Round could increase Hong Kong market access through elimination or at least substantial reduction of tariffs and non-tariff barriers. Tariff of up to US $983 million can be saved if duty on Hong Kong's top 10 domestic export sectors is removed. The removal of non-tariff barriers will increase the competitiveness of Hong Kong goods in overseas markets and bring indirect benefit to Hong Kong services sectors like transportation, storage, insurance, banking and to Hong Kong investors in the Mainland," he said.

Mr Young said Hong Kong's priorities in the Doha Round were market-access related issues, notably market access for non-agricultural products and for services.

In the ongoing negotiations on services, Hong Kong will continue to seek comprehensive and commercially meaningful market access commitments in services industries where Hong Kong enjoys comparative advantage, such as telecommunications, audiovisual, maritime transport, logistics, and financial services. 

Hong Kong will also proactively participate in the discussions to remove discriminatory measures by other countries that are inconsistent with the most-favoured-nation treatment principle, and to ensure that their domestic regulations will not cause unnecessary barriers to Hong Kong services trade.

"We will also use the opportunity to clarify and improve WTO rules, including those related to anti-dumping, subsidies and regional trade agreements to ensure that the rules will remain relevant and conducive to trade and investment. The trade facilitation measures under negotiation will strengthen Hong Kong's entrepot status and Hong Kong's position as a logistics hub," Mr Young said.

Clarifying the misconception that trade liberalisation will lead to privatisation of public services and diminishing job opportunities, Mr Young stressed that the WTO Agreement did not require the privatisation of any public services. Services negotiations would not pave the way for privatising essential public services. 

All commitments and offers by WTO Members, including Hong Kong, do not cover essential public services that are supplied neither on a commercial basis nor in competition with one or more service suppliers as these are in fact outside the ambit of the WTO, he said.

Mr Young said trade liberalisation would help stimulate economic growth, recovery and development.

"The Doha Development Agenda, if concluded successfully, will steer greater trade liberalisation, which will serve as a key engine of global economic growth and improved welfare, and allow better integration of all countries, in particular the developing and least-developed countries into the world economy. The World Bank's Global Economic Prospects 2004 report has estimated that the Doha round of negotiations, if successful, can reduce global poverty by some 140 million people by 2015," he said.

Mr Young further gave statistics on how free trade could bring benefits to the world. 

  • According to WTO statistics, partly due to lowering of trade barriers, world economy and world trade grew at an annual average of 5 % and 8 % respective during the 25 years after World War II ;

  • As a result of the Uruguay Round trade deal, US$109-US$510 billion was added to the world income (WTO statistics) ;

  • Developing economies integrated into world economy in early 1980s-late 1990s achieved higher growth in income, longer life expectancy and better schooling (World Bank study); and 

  • Trade boosts economic growth which means more jobs and lower trade barriers will reduce cost of production and hence prices of finished goods and services. 

Mr Young said Hong Kong was working hard in preparing for the Hong Kong Ministerial. The World Trade Organization Sixth Ministerial Conference Co-ordination Office, set up to oversee the preparation work, has been in close liaison with the WTO Secretariat. A Hong Kong Ministerial special webpage (www.wtomc6.gov.hk) is now in place to provide latest information on the meeting. Dialogue has been maintained with non-government organisations both locally and from overseas to facilitate their expressions of views during the Conference.

"Every endeavour will be made to hold a successful Ministerial Conference in Hong Kong to pave way for an early completion of Doha Round negotiations," Mr Young added. 

Ends