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The Rt. Hon. Baroness Symons of Vernham DeanHong Kong Trade Development Council Annual Dinner |
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Financial Secretary, Chairman of the Hong Kong Trade Development Council, my lords, ladies and gentlemen, I am delighted to be with you this evening and to have the opportunity to say a few words about the UK's relationship with Hong Kong. The Hong Kong Trade Development Council's Annual Dinner is not only a very enjoyable occasion and one of the major events in the UK's business calendar, it is also a celebration of the ongoing relationship between the UK and Hong Kong. As Minister for International Trade and Investment, I am especially pleased to be here tonight. When the Prime Minister appointed me as the Trade Minister it was a first for joined-up government – bringing together at Ministerial level the two Departments, the FCO and DTI which - through British Trade International - support exporters and investors, at home and overseas. The Prime Minister was very clear – he wanted exporters and international investors to have a single voice within government. I am determined to raise that voice whenever I can. It is this agenda – how to make globalisation work for all of us that is so challenging in the current round of negotiations in the World Trade Organisation. This audience in particular understands that, like all other economies, Hong Kong and the UK face a new and much accelerated global economic challenge. Fuelled by knowledge and innovation, the international market place is more rapid and comprehensive than ever before. I know that some find these developments worrying. Some fear the speed of these developments and hope that public policies can slow down globalisation. Of course there may be dangers in globalisation - if the special needs of vulnerable economies are not dealt with by the international community. Careful handling – for example in the WTO is vital. But globalisation may also have the potential for all economies to advance – and for individuals to reap the real benefits of wealth creation in terms of better public services, education, health or private interests. The UK and Hong Kong are beneficiaries of globalisation. And we will continue to work together to maximise the opportunity that exists for both our benefits. Let me begin with developing countries. They too must benefit from free and fair trade. That is why the UK government is working hard to take forward the Doha Development Agenda. Studies show that a 50% reduction in protectionist measures could boost developing country incomes by around $150bn a year, three times current aid flows. World Bank figures estimate that the continued opening of markets to trade could lift an additional 300 million people out of poverty by 2015. I know that Hong Kong has concerns about subsidies and barriers to trade in agriculture in the EU. Let me reassure you that the UK is at the forefront for pressing for much needed reform in this area – especially seeking reductions with a view to phasing them out. We all agreed to do this when we signed the Doha declaration – just one year ago. Now 144 countries including all in the EU have signed that declaration. The Prime Minister himself feels that this important area needs our continued commitment. We will certainly continue to press for deeds not words. Importance of UK-Hong Kong Ties On behalf of the British Government, I would like to extend a very warm welcome to Hong Kong's Financial Secretary,Antony Leung. The large audience here this evening is evidence of Britain's continuing interest in Hong Kong and Hong Kong's continuing interest in the UK. Let me assure you that we take very seriously our commitment towards the people of Hong Kong under the Sino-British Joint Declaration and we continue to take a committed interest in Hong Kong affairs. For example, we are following closely the debate in Hong Kong on the proposed national security legislation to meet the Special Administrative Region's Government's obligations under Article 23 of the Basic Law. My fellow Foreign Office Minister Bill Rammell and the British Consulate-General in Hong Kong recently issued statements on this, noting some of the main concerns about the proposals. These include the proposals to ban organisations affiliated with mainland organisations that have been proscribed in the mainland on national security grounds and provisions relating to the media, including those relating to seditious publications. This will be the most sensitive piece of legislation for Hong Kong since the handover, and we therefore welcome the wide consultation process currently being undertaken by the Hong Kong Government. It is important that public opinion in Hong Kong is taken fully into account by the Government when drawing up the legislation. As a co-signatory to the Sino-British Joint Declaration on Hong Kong we have a responsibility to ensure that the rights and freedoms enshrined in the Joint Declaration are maintained. Any new legislation must be compatible with these rights and freedoms and with maintaining Hong Kong's autonomy. Our commitment to Hong Kong reflects both our historic responsibilities and our wish to develop a forward-looking relationship with an important partner in the Asia Pacific region. In addition to our regular reports to Parliament, there are frequent high-level visits to Hong Kong. This year these have included visits by the Foreign Secretary, the Secretary of State for Scotland, the Lord Chancellor, the Attorney General, the Minister for E Commerce - and two British Parliamentary delegations. There will be more next year. If I may say so, I would very much like to visit Hong Kong again myself. And of course we welcome visitors in the other direction too. In addition to the Financial Secretary, the Chief Secretary and delegations from the Legislative Council have visited the UK this year. And these exchanges are not just on the government's side. There have also been important visits by business. Last month Sir John Egan and Digby Jones of the CBI met their counterparts in Hong Kong and looked at ways in which they can work more closely together. I am sure everyone present will agree that the Trade Development Council does a very impressive job in promoting Hong Kong's commercial interests and – along with the Hong Kong Economic and Trade Office, the Monetary Authority and the Tourism Board – in maintaining Hong Kong's profile in the UK. International Trade International trade is good for business. By making business more productive and competitive we raise living standards. There is good evidence that companies which export pay more, invest more in training and are more aware of health and safety issues than those companies who choose not to trade overseas. And this applies whatever the size of company. So although I know there are many who have misgivings about the effect of trade on those who work in a number of industries, the hard evidence is that trade is good for workers too. Our strong business links underpin our whole relationship with Hong Kong and I am confident that they will strengthen and grow over the coming years. Hong Kong continues to occupy a pivotal place for us both as a major trading partner in its own right and of course as a gateway into China. I think it worth spelling out just how extensive those links are. Two way trade flows are now running at nearly £9 billion per year. Hong Kong is our thirteenth largest export market for goods with a quarter of our exports to mainland China going through Hong Kong. Hong Kong is also a huge market for us for services, as many of the companies represented here tonight will testify. It is also worth remembering that Hong Kong is the UK's second largest market in the Asia Pacific and that our trade with Hong Kong outstrips that of any other European country. The UK is one of the largest external investors in Hong Kong and we account for 80 per cent of Hong Kong's investment in Europe. And what diverse investment it is. It ranges from the textiles and clothing sector to ICT to bottled water to ports. The British Government's Inward Investment promotion body, InvestUK, is working hard and successfully to attract Hong Kong investors and to give comprehensive after-care to those who have chosen to invest in the UK. British businesses are very actively engaged in Hong Kong. The 1000 or so British companies with offices in Hong Kong are evidence of that as are the guests at this dinner tonight. They all recognise Hong Kong's strategic location – on the southeast coast of the Chinese mainland and at the centre of the Asia Pacific Region. And we have no difficulty in encouraging British companies to take part in UK Government sponsored trade missions to Hong Kong. 14 Trade Partners UK supported trade missions are visiting Hong Kong this Financial Year and more SMEs are visiting than ever before. Earlier this month One North East took a mission of over 30 companies to the market. As to the future, Hong Kong's ambition to be Asia's World City offers major new business co-operation opportunities in such areas as ICT, the environment, education and the creative industries. We are working with the Hong Kong Special Administrative Region Government and other Hong Kong partners on collaborative projects to develop our relationship in these areas. Examples of trade relationship One of the most ambitious projects we have undertaken to date is the construction and fitting out of the INTEGER Hong Kong Pavilion on the Tamar site on Hong Kong Island. It is an excellent example of a Public Private Partnership involving our two governments, UK and Hong Kong businesses and other public bodies. The pavilion, which is open until the end of the year, is designed to demonstrate how green and intelligent building technologies can be adapted to meet conditions in Hong Kong and, indeed, Asia more widely. It reflects many of our interests – innovation, sustainability, environmental-friendliness, education – and it is also a very visible symbol or our continuing commiment to Hong Kong. The Pavilion has attracted widespread interest from all over the region. And of course, the environment is high on the government agenda in both Hong Kong and the UK. Both governments are addressing issues like air pollution, water pollution and sustainable development. Much work has already been done but there is still much to do. Protecting the environment is a moral and political imperative. Cleaning up the environment also presents opportunities for trade. Trade Partners UK, in conjunction with Hong Kong partners, will be organising a seminar on sustainable development in Hong Kong early next year. The seminar will particularly focus on innovation in urban regeneration and will involve a number of UK experts. The UK's links with Hong Kong on the education side are extensive and the British Council in Hong Kong do an enormous amount of impressive work there. Their English language operation in Hong Kong is the largest such operation in the world with over 40,000 students a year. The Foreign and Commonwealth Office's Chevening scholarships scheme offers Hong Kong candidates around 50 scholarships a year. Around 17,000 Hong Kong students are currently studying in the UK. In this period of global market volatility and in the aftermath of the terrible events in the US and Bali, it is vital that we work together with our partners in Hong Kong and elsewhere to weather the difficulties and maintain our trading relationships. This is important for global prosperity. WTO - Hong Kong's Role as Gateway to China China's accession to the World Trade Organisation has meant that the international business community is now focussing its attention on China and an increased number of companies are interested in accessing the market. This can only be good for Hong Kong. Although in the long run, it will be easier for western companies to enter the mainland market directly, the whole of China will not change overnight. In the meantime Hong Kong entrepreneurs with their understanding of Chinese culture and western business,can help SMEs navigate through the intricacies of doing business with China. The Future Pessimists say that China's WTO accession will make Hong Kong irrelevant, that Hong Kong's role as a middle man will be undermined and that Shanghai will take over from Hong Kong as a regional headquarters and international finance centre. I do not share this view. Hong Kong is by far the largest investor in China; its businesses own and manage much of the Chinese export machine. Hong Kong has the world's busiest port and world's busiest airport for cargo and despite its tiny size, Hong Kong is the world's tenth largest trader. And Hong Kong is one of the most competently run cities in Asia. On any number of counts – transport and crime are striking examples – it is the envy of any European capital. We take the view that increased Chinese share of world trade will also increase Hong Kong's prosperity and, in particular, that liberalisation of China's banking sector as part of its WTO commitments will benefit Hong Kong's own financial sector. International companies will continue to base themselves in Hong Kong because of its unique blend of economic competitiveness, rule of law, convertible currency, level playing field, use of English and observance of human right and fundamental freedoms – all within easy reach of the huge and growing domestic China market. Although the rapid growth of Shanghai will present challenges for Hong Kong, I believe that, with the strengths I have described Hong Kong is well placed to counter these challenges and develop its current clear competitive advantage further, so as to maintain its pre-eminent position in servicing Chinese business needs. And Hong Kong is well placed to take advantage of the Pearl River Delta. With a population of nearly 70 million, a GDP of over 130 billion US$ (larger than Malaysia) and achieving growth rates of over 9%, the Delta market is the key driver of Chinese economic and business development. Chinese accession is bringing challenges for all and Hong Kong businesses are having to adapt. They have to be innovative and add high-value to their services. Hong Kong has a population which has historically adapted well to change and I have every confidence that it will respond positively to this new and exciting challenge. And I am upbeat about Hong Kong and its future. As long as it can maintain the rule of law, respect for human rights and fundamental freedoms, a strict anti-corruption regime and free flow of information – the very things that persuade UK and other companies to base themselves there – I am sure that Hong Kong and its people will continue to do well. |
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Other speeches by The Rt. Hon. Baroness Symons of Vernham Dean
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