Speech by CE at Ministerial Industry Dialogue of Hong Kong Global Maritime Trade Summit (with video)
Following is the video speech by the Chief Executive, Mr John Lee, at the Ministerial Industry Dialogue of the Hong Kong Global Maritime Trade Summit on November 17 (Lima time):
Mr Emanuele Grimaldi (Chairman of the International Chamber of Shipping), ministers and officials from around the world, distinguished guests, ladies and gentlemen,
Good afternoon. It gives me great pleasure to welcome you to Hong Kong, and to the Hong Kong Global Maritime Trade Summit.
I am currently in Lima, Peru, for this year's Asia-Pacific Economic Cooperation Economic Leaders' Meeting. Therefore, I am pleased to have the opportunity to speak to you by video.
Today's event opens this year's two-day Hong Kong Global Maritime Trade Summit. In doing so, I'm pleased to note that it also ushers in Hong Kong Maritime Week, the eighth edition, which continues right through Saturday.
This Ministerial Industry Dialogue is a welcome opportunity for policymakers and industry leaders around the world to discuss the critical issues facing global trade and shipping.
And I am delighted to know that so many high-profile officials from our international and local maritime and trade communities have come together today, united by a common purpose.
For that, I am grateful to the International Chamber of Shipping, the ICS, for choosing Hong Kong as host city for this year's Global Maritime Trade Summit.
The ICS, of course, is the principal international trade association for merchant shipowners and operators. It represents more than 80 per cent of the world's merchant fleet.
Previous ICS summits have contributed significantly to global policymaking. The Glasgow Summit, in 2021, led to the adoption, by global shipping, of a net-zero, greenhouse gas emission reduction target for 2050. That was subsequently adopted by governments at the United Nations' International Maritime Organization.
The London Summit, in 2022, led to the adoption of the Clean Energy Marine Hubs initiative by the Clean Energy Ministerial group of global energy ministries. It's now on the agenda of the G20.And the Hong Kong Summit is committed to building consensus on issues critical to maintaining an efficient global maritime transportation system.
The theme of this year's Summit, "Risk and Resilience in an Age of Disruption", certainly captures the moment. Geopolitical dynamics, trade disruptions and climate change are among the many challenges facing the world - and this industry, Hong Kong included.
Hong Kong is, however, well positioned to ride out the storms. Under the unique "one country, two systems" principle, Hong Kong converges both the China advantage and the global advantage. With our strategic location, state-of-the-art infrastructure and world-class port, we possess unparalleled advantages to excel despite the changing global landscape.
It starts with trade. Last year, our merchandise trade exceeded US$1.1 trillion, making us the world's 10th largest trading economy.
We are among the world's busiest ports, too, with over 300 container vessel sailings each week to nearly 500 destinations worldwide. Last year, the Hong Kong port handled some 14.4 million TEUs.
We are blessed with a dynamic maritime cluster, counting more than 1 100 shipping and maritime companies. It helps that we have long practised the rule of law under a bilingual common law system, that our tax regime is simple and competitive, and that information, capital, goods and people flow freely, in and out of Hong Kong.
Our maritime services, let me add, are internationally recognised. The latest International Shipping Centre Development Index Report ranked Hong Kong fourth among the world's leading shipping centres.
What truly sets Hong Kong apart is our extensive connections. We act as a "super connector" and "super value-adder", the multi-level bridge between China, our country, and the rest of the world. Last year, the value of goods re-exported through Hong Kong to and from the Mainland amounted to nearly US$440 billion, or over 83 per cent of Hong Kong's total re-export trade value.
Taking advantage of our singular East-meets-West connectivity, we have ambitious plans for Hong Kong's port and maritime industry.
In my annual Policy Address delivered last month, I unveiled our plans of bringing together Hong Kong's strengths as an international financial, shipping and trading centre. We will create a commodity trading ecosystem in Hong Kong, turning our city into an operation centre for international commodity trading, storage and delivery, shipping and logistics, risk management, and more.
The complexities in geopolitics underscore our city's edge in security and stability. We endeavour to become an investors' destination for gold storage, and build Hong Kong into an international gold trading centre.
We are exploring tax concessions for commodity traders, recognising their significant role in maritime services. We are also encouraging more maritime service companies to set up in Hong Kong through tax concessions. These developments are set to bring immense opportunities to our maritime sector.
There's more. In my Policy Address, I announced that we will set out an action plan on green fuel bunkering in Hong Kong. Our goal is to build a green maritime hub, right here in Hong Kong, taking advantage of related infrastructural development. I am glad to say that we have met our commitment, by promulgating the Action Plan on Green Maritime Fuel Bunkering last week.
We will also press ahead with smart port development, completing the installation of a digitalised port community system next year.
My Policy Address also introduced a reduction in the duty rate for purchasing liquor in Hong Kong. The rate on the purchase amount above HK$200 - about US$26 - is being reduced from 100 per cent to 10 per cent. The removal of all duties on wine, in 2008, helped Hong Kong become a regional wine trading and distribution hub, as well as one of the world's top three wine auction centres.
We hope the new liquor initiative will also create new opportunities, spurring the development of such high value-added sectors as logistics, storage, tourism and premium food and beverage consumption.
My thanks, once again, to the ICS for organising the Hong Kong Global Maritime Trade Summit, in collaboration with the Transport and Logistics Bureau of the Hong Kong Special Administrative Region Government and the Hong Kong Shipowners Association.
I know you will enjoy today's Ministerial Industry Dialogue. And I wish you the best of business tomorrow, day two of the Summit, and throughout Hong Kong Maritime Week and its broad range of events, "Navigating to a Greener Future" together, according to the Week's theme.
Make time, too, to discover all that Hong Kong, a world city, has to offer - on land as well as at sea.
Thank you.
Remarks by CE at media session in Peru (with photo/video)
Following are the remarks by the Chief Executive, Mr John Lee, at a media session in Lima, Peru on November 16 (Lima time):
Chief Executive: I would like to take this opportunity to summarise our visit here in Lima, Peru.
In the past few days, I attended the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting and related activities, which included the APEC Economic Leaders' Informal Dialogue with Guests, the APEC Economic Leaders' Dialogue with the APEC Business Advisory Council, and the Gala Dinner hosted for participating guests. I had bilateral meetings with the leaders of Malaysia, Vietnam and Singapore to exchange views on issues of mutual interest.
The President of Peru and I jointly witnessed the signing of the Free Trade Agreement (FTA) between Hong Kong and Peru. This agreement will create new business opportunities for Hong Kong and boost bilateral trade and investment flows.
Later tonight (November 16, Lima time), I shall also attend a dinner with the Peruvian business leaders in Lima, to highlight Hong Kong's attractiveness recognised by the international community as well as the significance of the FTA in fostering our economic development and partnership.
My visit to Peru and my participation in the APEC Meeting have achieved three results:
First, we demonstrate Hong Kong's commitment to promote regional economic and trade co-operation, and to explore diverse development opportunities. The Leaders' Declaration from this year's APEC Economic Leaders' Meeting outlines the common goal of fostering economic integration, inclusive development, and sustainable growth. These objectives align closely with this year's APEC theme: "Empower. Include. Grow". Hong Kong has all along been firmly committed to promoting international free trade and multilateral trade. Through active participation in APEC, Hong Kong will continue to support and promote regional economic integration and contribute to regional economic development.
Second, we explore new growth areas for Hong Kong and explore market opportunities in South America. The FTA signed between Hong Kong and Peru is the ninth of Hong Kong and the first under this administration. Currently, Hong Kong has already signed FTAs with 21 economies worldwide.
In terms of trade in goods, over 98 per cent of Hong Kong's originating goods will enjoy tariff-free access to the Peruvian market. For trade in services, Hong Kong service providers across more than 150 sectors will benefit. These sectors include professional services, research and development, financial services and transport services.
Peru ranks fifth among Hong Kong's merchandise trading partner in Latin America. With a burgeoning consumer market and ongoing infrastructure development, Peru presents significant opportunities. I look forward to Hong Kong's traders and investors grasping the opportunities brought by the FTA.
I am pleased to note that following the signing of the FTA, Hong Kong and Peru have also commenced negotiations on a separate Investment Promotion and Protection Agreement. I trust that Hong Kong and Peru will further enhance bilateral investment flows to bring about mutual economic growth.
Third, we enhance connections and relationship with the Association of Southeast Asian Nations (ASEAN) economies, as well as built connections with other economies.
Hong Kong values our close relations with the ASEAN region. ASEAN has been our second-largest merchandise trade partner for more than a decade, accounting for 80 per cent of Hong Kong's total foreign trade value.
In Lima, I met with the leaders of three ASEAN countries: the Prime Minister of Malaysia, the President of Vietnam, and the Prime Minister of Singapore. Our discussions focused on enhancing economic and trade relations as well as cultural exchanges.
Since my last visit to these three countries, we have strengthened co-operation at various levels and achieved tangible results. Hong Kong is actively promoting further collaboration, including the plan to establish an Economic and Trade Office in Malaysia. We have gradually increased direct flights between Hong Kong and several ASEAN countries to facilitate greater people-to-people exchanges. I have also made use of the opportunity to establish link with other attending leaders and build connections.
We will continue to strive for regional co-operation and expand our business networks. Thank you.
Reporter: What messages have you got from President Xi Jinping when you talked to him during the APEC Summit? Second, how confident do you think the Hong Kong business community will tap into the South American market, given that there are language and time difference barriers? What will the Government do to unleash the potential of the FTA? Thank you.
Chief Executive: President Xi has always been caring about Hong Kong. I have reported to him Hong Kong's situation regarding the economy and development. He is well verse of our development and has given me encouragement.
In our conversation, he talked about Peru's culture and its agricultural resources. He also talked about China's agricultural development. We also talked about the role and contribution of the construction and the operation of the Port of Chancay in Peru, because it is a new development that will facilitate trade in goods, logistics and also the shipping industry. It will also help supply chain.
I am very much impressed and inspired. I thank President Xi for his care and guidance.
In regard to the signing of the FTA and resultantly the benefits and potential that will be available to Hong Kong businessmen, it will be important for, first of all, Hong Kong businessmen to understand and appreciate the contents of the FTA: what are the areas covered, what is the facilitation and what is the accession facilitation they will get. There is probably a difference in language, because in Peru, usually the business language and official language is Spanish, but a lot of them also speak English. In my dealing with a lot of officials, they are multilingual. Hong Kong people are also versatile. Hong Kong people have been doing business with different parts of the world, including the Middle East, countries such as Korea and Japan, so obviously, language is an issue but not a barrier. I believe in businessmen's versatility and adaptability. What is important is, where there are business opportunities, then our entrepreneurs will be able to find good ways to ensure that they will be able to grasp the opportunities and realise the benefits.
The next step I have suggested to the Peruvian Government is that maybe we shall establish chambers, because through chambers' connection, business-to-business communication and assistance will be more easily established. I am sure that the business sectors will be examining how they will develop their network with the assistance and support of government-to-government contact. I am sure this FTA will open new doors for a lot of business activities to start. I have also explained that we are already embarking on the negotiation for an agreement on promotion and production of investment that will make the whole series of agreements in full coverage of both trading of goods and trading of services, as well as the protection of investment. With Hong Kong being a financial centre, hopefully with these two series of agreements, the opportunities that will be opened to our business community will be vast.
(Please also refer to the Chinese portion of the remarks.)
Remarks by CE at media session in Peru (with photo/video) Source: HKSAR Government Press Releases
