Free-trade pact must include Hong Kong
- Big guns from mainland China have joined calls for the city to be admitted into the Regional Comprehensive Economic Partnership, a process that has been delayed for far too long
Much has been made of whether Chief Executive John Lee Ka-chiu can attend the next Asia-Pacific Economic Cooperation summit in San Francisco, which depends on the United States relaxing sanctions against him.
In a spirit of cooperation in keeping with the summit’s name, and given Hong Kong’s role as a global financial hub, Washington should end the uncertainty.
Separately, there is an equally or even more important case to be made for the city to have formal recognition apart from mainland China in international trade and economic matters.
That is for its application to join 15 countries, including China as a full member of the world’s largest free-trade agreement, the RCEP (Regional Comprehensive Economic Partnership).
Premier Li Qiang has added strong support to the city’s case at a meeting in Jakarta with the 10 Asean (Association of Southeast Asian Nations) members plus Japan and South Korea. They are all members of the RCEP along with Australia and New Zealand, and all are major trading partners of Hong Kong.
“I hope all parties will support Hong Kong [to join the RCEP],” Li said, citing Beijing’s drive to expand Asia-Pacific trade and mobility.
Beijing has long backed Hong Kong’s application for membership – now more than a year old. Politburo Standing Committee leader Ding Xuexiang reinforced Li’s remarks in his keynote address to the Belt and Road summit in Hong Kong last week.
The chief executive lobbied Asean nations for their support during a promotional tour of the region in July, when he predicted that Asean and the wider region would become the biggest economic engine globally. “We have signed a free-trade agreement with Asean, so we already have very good foundations,” he said.
What sets the latest instance apart is Premier Li’s open lobbying in a meeting with leaders of Asean.
He called for unified support for Hong Kong to be admitted as a full member of the RCEP at the next opportunity. Membership would be more than recognition of the trade and economic status quo.
It would boost the city’s vision to be a global super-connector with China’s economy and a core part of a newly emerging supply chain amid geopolitical uncertainty.
