Discussions Between HK And China Over Free Trade Area To Take Place Soon

by Mary Swire, Tax-News.com, Hong Kong

16 January 2002

The Hong Kong Financial Secretary, Antony Leung Kam-chung, is set to meet with mainland trade officials in Shanghai later this month, according to reports.

The Hong Kong General Chamber of Commerce has predicted that this meeting will help to establish a clearer picture of plans for a free trade area between the regions, although the Chamber Director admitted that it is too soon to try and establish the exact framework:

'But we will have a better idea of what the Beijing government is thinking about the FTA proposal after Financial Secretary Antony Leung Kam-chung's visit to the mainland,' Eden Woon Yi-teng told the South China Morning Post.

At the end of last year, following a visit from Chief Executive Tung Chee-hwa, the Chinese authorities expressed broad support for the idea of a free trade area- which could encompass a free-trade agreement, closer economic relations, and economic partnerships- and ordered the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) to examine the proposal.

The Hong Kong Chamber of Commerce supports the plan, which it believes is necessary as the SAR faces its second recession in four years. However, Mr Woon admitted that agreeing the details may not be easy, as it will necessitate the agreement and cooperation of many state departments.

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