Deal sealed: US Commerce Secretary Gary Locke (second left) and Secretary for Commerce & Economic Development Rita Lau (second right) sign the HK-US wine pact.

Secretary for Commerce & Economic Development Rita Lau has signed a memorandum of understanding on wine-related business co-operation with visiting US Commerce Secretary Gary Locke.

Mr Locke is leading the first cabinet-level trade mission to Asia by US President Barack Obama's administration. Hong Kong is the first stop.

Addressing a luncheon in honour of Mr Locke today, Mrs Lau said Hong Kong and the US have been maintaining healthy bilateral business relations, adding his visit will be great encouragement for both communities to work towards stronger bilateral relations and explore new areas for collaboration.

"Today our relationship with the US takes another major step forward. Riding on this [memorandum] we will strengthen our joint efforts on promoting wine-related trading, tourism, investment and education," Mrs Lau said.

The memorandum also covers a number of special areas, including promoting wine alongside regional and local cuisine, facilitating the organisation of wine auctions in Hong Kong for US wines, and encouraging the provision of quality wine storage facilities in Hong Kong. It is the eighth one concluded by the city with wine producing countries and regions.

The US is Hong Kong's fourth largest wine source, with imports amounting to US$49 million in 2009-10, a five-fold increase since Hong Kong's wine duty exemption.