Trade benefits: Director-general of Trade & Industry Raymond Young says Hong Kong will benefit from trade liberalisation.

Hong Kong, with free trade its lifeblood, should be proud of hosting the World Trade Organisation's 6th Ministerial Conference in December, Director-general of Trade & Industry Raymond Young says.

Mr Young said today market access for services is crucial to Hong Kong's service industries, which are related to trading activities and account for 90% of the city's Gross Domestic Product.

Trade liberalisation stimulates global economic growth, he said. With fewer barriers, trade volume will grow leading to more business opportunities for Hong Kong.

Mr Young said MC6 will boost the Doha Development Agenda talks, which work towards agreed formulas on tariff cuts and export subsidies.

As Hong Kong has always been advocating free trade, with more trading partners opening up their markets through the Doha Development Agenda talks, it will benefit the local economy and consumers.

5 areas

Of the five major areas of interest in the coming conference, Mr Young said critical mass in market access in services and market access for non-agricultural products are the most crucial issues for Hong Kong.

On concern over the opening of the labour market due to service sector talks, he said Hong Kong's job arena has always been open and there is little room to open more.

On the concerns of some non-government organisations that participation in the Government Procurement Agreement will impair local industries, Mr Young said it is a mutually beneficial deal. Hong Kong signed the pact in 1997, making it possible for suppliers in 20 member territories to bid for procurement tenders issued by their governments.

The Government's tendering procedure has always been open and fair, and cost effectiveness is a major consideration to protect taxpayers' interests.

Mr Young added service sector talks will not regulate member governments on privatisation, hence outsourcing of services has nothing to do with the WTO.

Agricultural trade

Mr Young said agricultural trade is the most controversial MC6 issue, as developing countries have been rejecting the developed world's export and domestic subsidies to their farmers. In countries like South Korea and Japan there is strong opposition from farmers against the further opening of their agricultural trade.

As thousands of these farmers may demonstrate during the conference, Mr Young reiterated the Government and Police have contingency plans in place. Secretary for Commerce, Industry & Technology John Tsang will meet with local and overseas NGOs in mid-October to discuss demonstration arrangements.