Multilateralism has all along been the cornerstone of Hong Kong's economic and trade policy, and regional trade agreements will remain at best a supplement to the benefits that Hong Kong can gain from a truly open multilateral trading system.

This was the message from Director-General of Trade & Industry Raymond Young at the WTO & Greater China Economic Area Law Conference today.

"For a place like Hong Kong where trade accounts for almost three times our GDP, we certainly have a strong interest in liberalising global trade, and I do not see any other vehicle which can work as efficiently as the WTO in the promotion and protection of our trade interest," Mr Young said.

A level field

"In the WTO, we are an equal among the major economic powers in voicing our trade concerns and putting forward suggestions on how these concerns should be addressed. WTO also provides a level field for us to guard our trade interests against arbitrary and discriminatory trade actions by our trading partners," he said.

Hong Kong has tried its best to contribute to the work of the WTO by being the bridge between different camps and putting forward honest and practical recommendations that stand a chance of being accepted by all members.

The city also pledges it's full support to the WTO by offering to host the 6th Ministerial Conference in Hong Kong in December.

Ministerial conference

Commenting on the conference, Mr Young said WTO members have to attain substantial outcomes at the conference if they are to achieve the objective of a timely and successful conclusion to negotiations under the Doha Development Agenda by 2006.

"An early and successful conclusion of the Doha Round will help restore confidence in the multilateral trading system," Mr Young said.

On regional trade agreements, he said Hong Kong recognised that high standard and WTO-consistent regional trade agreements did contribute to global trade liberalisation by providing better market access and creating a more favourable business environment among the parties.

He said it was with these considerations in mind and in response to the requests of Hong Kong's business community that the Closer Economic Partnership Arrangement, the first ever regional trade agreements signed between the Mainland and Hong Kong, was concluded.

Fully consistent

Mr Young said Hong Kong and the Mainland have taken extra care to ensure CEPA will be fully consistent with WTO requirements on regional trade agreements.