HK official optimistic about textile, clothes sector

Hong Kong will remain competitive in textiles and clothes manufacturing after the removal of import quotas by the World Trade Organization (WTO) next year, said a Hong Kong official on Tuesday.

John Tsang, secretary of commerce, industry & technology, said he does not think that local factories will move their facilities outside after the quota removal.

According to the WTO agreement on textile and clothing, quota restrictions imposed by all WTO members on their textile and clothing imports will be completely lifted on New Year's Day.

Tsang said the removal of the quota system marks an important milestone in the liberalization of international trade in textiles and clothing.

He said while trade liberalization can broaden the scope for trade and facilitate market expansion by Hong Kong business people, it will at the same time intensify market competition.

Tsang pledged the government will continue to offer the trade a business-friendly environment and improve services. For example, all existing quota-related regulatory measures will be lifted. A simple and reliable system will be kept to protect the rights and benefits of locally made products.

He urged the trade to lower production costs and boost product quality to sharpen Hong Kong's competitiveness.

Tsang said the proposed regulatory framework for textiles after the quota removal has been worked out and law revisions will be tabled at the Legislative Council in October.

"We will still continue to allow our manufacturers here to make use of the outward processing arrangement that helps them to deal with a lot of the more labor-intensive aspects of the manufacturing," he said.

On Hong Kong's competitiveness after the quota removal, Tsang stressed a number of factors that affect business and investment decisions, not just costs.

While production costs here are higher than neighboring cities, Hong Kong still has its advantages, like product quality and prompt response to market demand.

Hong Kong has become a key financial, logistics, information and services support and co-ordination hub in the region.

"I think Hong Kong will continue to remain a pretty attractive place for the manufacturing of textiles and clothing," said Tsang.

Source: Xinhua