I would first like to welcome the Delegation of Hong Kong, China, led by Ms Maggie Wong, Director-General of Trade and Industry Department, and thank the Discussant, Mr. Pedro Bravo (Peru) for his insightful comments.
Hong Kong, China is an externally oriented economy, and ranks high in terms of merchandise trade, financial transactions, and stock market capitalization. Trade is vital for Hong Kong, China’s economy.
As noted in the Secretariat’s report, the EU welcomes that Hong Kong, China continues to pursue a free and open trade policy and looks to the WTO for trade liberalization.
The EU appreciates that Hong Kong, China has joined various new WTO plurilateral initiatives and the Multi-Party Interim Appeal Arbitration Arrangement, and more recently, accepted the Agreement on Fisheries Subsidies in August 2023.
At the same time, I regret that Hong Kong, China was not able to facilitate progress on the taking up of the Chair position in the Committee on Government Procurement. The blockage of the candidate that was preferred by all other GPA Parties put enormous stress on the functioning of the WTO. This organization cannot operate if Members instrumentalise its procedural provisions for political ends.
We like to understand better how Hong Kong, China, ambitions regarding the ‘Greater Bay Area’ are impacting Hong Kong, China’s trade policies, and how much these are facilitated by its Closer Economic Partnership Arrangement with China.
We are also concerned by Hong Kong, China’s recent ban of seafood from Japan. While not of direct commercial concern to the EU, it sets a worrying precedent of Hong Kong, China deviating from its otherwise strong track record of using international rules and scientific approaches when it comes to food imports.
Together with other G7 economies, the EU recently affirmed the importance of import restrictions on food products being science-based and only applied in accordance with WTO and other international rules.
With respect to tariffs, Hong Kong, China’s applied tariffs are zero but over half the tariff schedule remains unbound. EU would be interested to hear if further progress will be made on binding these tariffs.
The EU would also like to understand better how Hong Kong, China, ambitions regarding the ‘Greater Bay Area’ are impacting Hong Kong, China’s trade policies, and how much these are facilitated by its Closer Economic Partnership Arrangement with China.
While the EU understands that some changes in public procurement practices have been recently introduced, the EU urges Hong Kong, China to ensure that all government-procuring processes are run on an open and non-discriminatory basis.
With respect to IPR protection, the EU welcomes the adoption of the copyright bill as well as efforts to implement the international trademark registration system under the Madrid Protocol. The EU calls on Hong Kong, China to continue its efforts to stem traffic of counterfeit goods, and to reflect on additional measures to address the current situation, which remains concerning.
A word on our bilateral relationship. The EU and Hong Kong, China have strong ties: the EU remains the largest foreign business community in Hong Kong, China with around 1 600 EU companies that have set up business in Hong Kong, China. Moreover, in 2022, the EU was Hong Kong, China’s third largest trading partner in trade in goods.
Yet, Hong Kong, China, has changed considerably since the last WTO TPR five years ago.
The EU is deeply concerned about the developments in Hong Kong, China in recent years. We observe a continuous erosion of the ‘One Country, Two Systems’ principle and Hong Kong, China’s previous degree of autonomy.
We are concerned about the deterioration of the rights and freedoms that the people of Hong Kong, China have enjoyed in the past and which they were guaranteed to enjoy at least until 2047. This contradicts China’s international commitments under the Sino-British Declaration and the Basic Law.
Hong Kong, China, has stated that these political developments do not undermine the principle of ‘One Country, Two Systems’, which is one of the fundamental tenets of Hong Kong, China’s open trade policy. Yet, our business community is concerned about the changes to Hong Kong, China’s otherwise very open business climate. Freedom of information and an independent judiciary are important benchmarks for EU businesses. I hope in this Trade Policy Review that Hong Kong, China will further clarify how its unique ‘One Country, Two Systems’ principle will continue to operate and support Hong Kong, China’s open trade policy.
In closing, the EU continues to value our work with Hong Kong, China, as well as with the other WTO partners, to strengthen and build on the WTO’s rules-based foundation, notably in the run-up to MC13.
I wish Hong Kong, China a very productive 9th Trade Policy Review.
Source: EU mission to the WTO in Geneva – Press and information team