Pacific rim deal could benefit even non-signatories, Hong Kong finance minister says
Financial secretary says that while the US-led free-trade deal would increase regional commerce it could create a bloc that excludes China
Hong Kong does not want to see the United States-led free-trade deal in the Pacific Rim signed last week put up "trade barriers" for non-participating countries, Financial Secretary John Tsang Chun-wah said.
Tsang wrote in his blog yesterday that the Trans-Pacific Partnership (TPP) would help its signatories develop their economic potential and would enlarge the pie of regional trade and fuel demand for imports, thus benefiting non-signatories.
But he took note of critics' suggestions that the TPP, involving 12 countries including China's top trade partners the US and Japan, could form a bloc against the mainland.
"As a free-trade agreement, if the TPP excludes certain countries or places, it goes against the agreement's purpose," he wrote. "It will also make it difficult for this multilateral agreement to be effective."
The TPP is seen as a high-level free-trade agreement as it sets rules on everything from international trade and the environment to state-owned enterprises.
Tsang's comments echoed those of the foreign ministry, which earlier stated its hope that the TPP and other agreements would foster free trade in Asia.
He said Hong Kong must continue to raise its competitiveness by exploring new markets and higher-value industries to avoid losing out to rising competition.
