Overview
Hong Kong is the world's 9th largest trading economy. Total merchandise trade in 2006 amounted to C$739 billion, equivalent to 3.4 times of Hong Kong's GDP for the year. Hong Kong has been a member of WTO since its inception and a member of APEC. Hong Kong also serves an important intermediary role for trade with China. It handles about 40 percent of all of China's foreign trade. It is a prime trading centre in Asia.

Trade Policy in Hong Kong
Hong Kong adopts a free trade policy. There is no customs tariff on goods.

Excise duty is imposed only on four commodities:

• Tobacco

• Hydrocarbon oil

• Alcoholic beverages

• Other alcoholic based products

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There is no red tape in importing and exporting. Licensing requirements are kept to a minimum for public health and safety reasons or to fulfill obligations under various international undertakings.

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Export & Import Opportunities

Exporting to Hong Kong
Hong Kong presents an attractive market for exporters worldwide. Major imports were raw material, consumer goods and capital goods. Hong Kong is Canada's 15th largest export market. Canada's total exports to Hong Kong in 2006 was C$1.68 billion. Major exports include electrical machinery, apparatus and appliances, telecommunications equipment and paper products.

Sourcing from Hong Kong
Hong Kong is also a good place for sourcing products. You may be able to source products manufactured locally and goods from the region. Electronics, electrical products, textile and clothing apparels are the most important exports of Hong Kong. In 2006, Hong Kong exported a total of C$234 million worth of goods to Canada, through direct and re-exports. Textile and wearing apparels were the major exports. Other items included electrical machinery, equipment and appliances, printed matter and office machines.

The China Market
Furthermore, Hong Kong is an excellent channel to tap into the China market. About 40 percent of China's foreign trade goes through Hong Kong. According to a recent survey conducted by the Trade Development Council, about 64 percent of overseas buyers source China made products through Hong Kong.

Market Outlooks
China's accession to the WTO means that there will be a reduction in trade barriers. Foreign enterprises will be given greater access to the mainland's market. Though many speculate this as a threat to Hong Kong's intermediary role, we anticipate further opening of the market will only bring in more business opportunities for Hong Kong companies to serve the expanded and more sophisticated market.

The Hong Kong Trade Development Council
The Hong Kong Trade Development Council (HKTDC) is a statutory organization with a mandate to promote Hong Kong's trade in goods and services.

The organization provides a wide range of services to traders in Hong Kong and overseas:

• A trade portal with information on import and export activities worldwide

• Organize trade fairs and exhibitions in Hong Kong

• Organize trade missions to promote Hong Kong products overseas

• Provide support and facilities to trading SMEs in Hong Kong

• TDC Trade Link - trade matching services with trade leads and an electronic marketplace for traders worldwide