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Viewing cable 06HONGKONG3969, TRADE AGREEMENT COMPLIANCE AND MONITORING IN HONG

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Reference ID Created Released Classification Origin
06HONGKONG3969 2006-10-06 02:49 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Hong Kong
VZCZCXRO1612
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #3969 2790249
ZNR UUUUU ZZH
P 060249Z OCT 06
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 8911
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
UNCLAS HONG KONG 003969 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM AND EAP/EB/TPP/MTA EKOCH 
STATE PASS USTR 
USTR FOR HIRSH 
USDOC FOR 4110 
 
E.O. 12958: N/A 
TAGS: ECON ETRD HK CH
SUBJECT: TRADE AGREEMENT COMPLIANCE AND MONITORING IN HONG 
KONG & MACAU 
 
REF: STATE 152063 
 
(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED.  PLEASE 
PROTECT ACCORDINGLY.  NOT FOR RELEASE OUTSIDE U.S. GOVERNMENT 
CHANNELS.  NOT FOR INTERNET PUBLICATION. 
 
ΒΆ1. (SBU)  This is a response to reftel inquiries on Post's 
efforts to monitor Hong Kong's compliance with trade 
agreement compliance. 
 
A) Description of how Posts are currently organized for 
monitoring agreements and responding to foreign trade barrier 
complaints, including the establishment of teams at Post: 
 
Consulate General Hong Kong holds a weekly Economic Cluster 
meeting specifically focusing on current trade and economic 
issues.  The Consul General, the Deputy Principal Officer, 
and the heads of the Economic/Political (E/P) Section, the 
Foreign Commercial Service (FCS), the Foreign Agricultural 
Service (FAS), and the Public Affairs Section (PAS) all 
actively exchange information and formulate strategies on 
trade issues at this meeting.  The Consul General utilizes 
the Economic Cluster meeting to monitor and direct Consulate 
responses to trade barrier issues in a timely and thorough 
fashion. 
 
B) Name of a contact person at Post to coordinate Post's 
periodic compliance reorting, field general compliance 
inquiries, and ensure complaints are reported promptly to 
relevant Washington agencies: 
 
E/P Section Economic Unit Chief Craig Reilly is the main 
contact person on all trade issues for Consulate General Hong 
Kong. 
 
C) Description of complaint response activities at Post, 
including examples of recent compliance successes and ongoing 
compliance issues: 
 
The Hong Kong Government's (HKG) continuing market-oriented 
approach to commerce has created one of the freest trading 
economies in the world.  Hong Kong is an active member of the 
World Trade Organization (WTO) and the Asia Pacific Economic 
Cooperation (APEC) forum, where it is a strong proponent of 
reducing trade barriers.  Although Hong Kong does not have a 
free trade agreement with the U.S., Hong Kong is a duty-free 
port and has few barriers to trade in goods and services. 
 
The HKG's ban on imports of U.S. beef remains an area of 
contention.  In December 2003 following the announcement of a 
case of Bovine Spongiform Encephalopathy (BSE) in the U.S., 
HKG banned imports of U.S. beef.  In the ensuing two years, 
Post worked closely with U.S. industry representatives to 
identify and intensely lobby key HKG officials to re-open 
Hong Kong's market to U.S. beef.  These efforts bore fruit in 
December 2005 when the HKG agreed to allow U.S. boneless beef 
from cattle under 30 months of age.  However, the HKG still 
restricts U.S. bone-in beef.  Post, USDA, and beef industry 
representatives have all been heavily involved in lobbying 
for Hong Kong to allow bone-in beef products, as is 
consistent with OIE guidelines. 
 
D) Description of proactive monitoring efforts at Post: 
 
All trade-involved agencies at Post regularly participate in 
American Chamber of Commerce meetings and frequently meet 
with various industry contacts to discuss trade compliance 
issues ranging from beef imports to intellectual property 
rights (IPR) enforcement.  Post also maintains regular 
contacts with HKG officials to discuss trade issues and to 
monitor the regulatory environment involving trade issues. 
One example of this is Post's active monitoring of Hong 
Kong's proposed changes to its Copyright Ordinance, the 
development of which has the potential to strongly impact the 
IPR protective regime in Hong Kong. 
 
Sakaue