Trade and Logistics

20.       The trade and logistics sectors account for a significant share of Hong Kong’s output value and employment. As China emerges as the “factory of the world”, with growing affluence and increasing consumption, many new opportunities arise for Hong Kong’s trade and logistics sectors. Since the implementation of CEPA, domestic exports have started to pick up again. From January to September 2006, the value of exports to the Mainland with Hong Kong Certificates of Origin rose by 37% year-on-year.

21.       Hong Kong is a founding member of the World Trade Organisation (WTO). At present, we rank 11th in the world trade hierarchy. Over the years we have built a prominent image in promoting international free trade. Last year we hosted the WTO’s Sixth Ministerial Conference and succeeded in putting the Doha Development Agenda negotiations back on track. Regrettably, subsequent negotiations were unable to sustain the momentum created at the Conference. Negotiations were suspended in July this year, as key members could not narrow their differences. We nonetheless persevere and seek key members’ support to reopen negotiations as soon as possible. Meanwhile, in response to new trends in world trade, we will seek to enter into more economic and trade arrangements with our trading partners, so our goods and services can gain access to overseas markets under more favourable conditions.

22.       As regards logistics, our cargo catchment has in recent years gradually extended from the eastern to the western side of Pearl River Delta (PRD). Large volumes of cargo are being transported via river. To enhance efficiency, the Government will amend the law to introduce multiple entry permits for river trade vessels, reduce permit fees, and streamline application and entry procedures.

23.       To enhance the air cargo handling capacity of Hong Kong International Airport, continuous efforts will be made to increase the number of cargo freighter parking stands and to expand its air cargo terminal facilities. The SAR Government has been taking progressive steps to expand the city’s air transport network, conclude more bilateral air services agreements, and take practical follow-up action to expand our air transport capacity. All these serve to reinforce our position as an international and regional aviation hub.

24.       To enhance the efficiency of cross-boundary cargo flows and inspection, we have reached a consensus with Dongguan authorities for an express clearance system to be introduced at the Liaobu inland control point when it comes into operation later this year. The SAR Government and the Mainland authorities will continue to communicate and jointly study the development of cross-boundary infrastructural projects.