Granting preferential trading rights to countries

Atlantic Ocean The Atlantic Ocean provides some of the world's most heavily trafficked sea routes, between and within the Eastern and Western Hemispheres. Other economic activity includes the exploitation of natural resources, e. Australia Australia is an open market with minimal restrictions on imports of goods and services.

Granting preferential trading rights to countries

As at December, people were employed in the import and export sector, which hadestablishments. Inthe sector accounted for Hong Kong handles a good portion of the Chinese mainland's external trade.

Industry Data Range of Services Hong Kong's import and export trading firms are active in sourcing various types of goods, including raw materials, machinery and parts, and a wide range of consumer goods.

There are three main types of sourcing activities: The import business of Hong Kong trading firms is mainly generated by the distributing capabilities under the identity of agents or dealers. These trading firms usually specialise in one area of products and represent one or more foreign brands.

Their trading map usually encompasses Hong Kong, the Chinese mainland or certain parts of Granting preferential trading rights to countries or other Asian countries.

Due to the development of trade supporting services on the Chinese mainland, trading firms increasingly source goods offshore for sales in international markets. Some of these goods are either transhipped via Hong Kong or shipped directly without touching Hong Kong ground.

Such offshore trade is not reflected in Hong Kong's trade statistics. Service Providers Hong Kong's import and export trading firms are typically small, employing less than 10 persons on average.

Granting preferential trading rights to countries

There wereimport and export trading firms in Hong Kong as of Decemberwith the majority of them being SMEs. There are three broad categories of import and export trading firms: Left hand-right hand traders: These firms are characterised by the conduct of a straight-forward sourcing operation, usually identifying goods produced on the mainland or Hong Kong and shipping them to overseas markets.

These firms rely on their specialist knowledge of the sources of products in the region and the low costs of their supplies as their main competitive advantages. Traders with some value-added services: They often use letters of credit from their customers as a guarantee for raising finance for their purchase orders.

Other firms develop a sub-contractor relationship with a number of factories in which they exert significant control over the management of production, including quality control. Traders with sophisticated value-added services: For example, some firms have become designer and manufacturer of components for their supplier factories to produce finished goods, which the firms subsequently export.

These firms add value mostly from their design team and their competitive edge comes from their ability to design products which sell well in the target markets.

In response to trade disintermediation, Hong Kong traders adaptively provide more value-added services in addition to finding more competitive sources of supplies.

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For example, Hong Kong traders help their overseas clients inspect the goods produced by the manufacturers to ensure they meet the procurement standard, and monitor production schedules to meet delivery. Hong Kong traders can also help overseas buyers coordinate production when the buyers have a sudden surge in orders and quick turnaround is needed.

Inthe rate of gross margin [1] of merchanting improved to 6. In the same year, the commission rate of merchandising [2] for offshore transactions stood at 7. The operations of small and big trading firms are quite different.

Smaller firms are usually strong in introducing foreign products to the mainland market. In most cases, they specialise in one area, such as medical equipment, and represent some foreign brands as their agents or distributors.

Bigger trading firms are usually strong in sourcing products from the region. They usually have regional or even global sourcing networks and do not specialise on a particular type of product. Exports Hong Kong's import and export trading sector exports its services mainly in the form of offshore buying and selling of goods.

Given Hong Kong's proximity and the relocation of Hong Kong's manufacturing bases to the mainland, particularly the Pearl River Delta, the Chinese mainland is a major source of offshore trading activities.

As Hong Kong manufacturers are diversifying their production activities to other low-cost countries, the offshore trading pattern is expected to reflect the move. InHong Kong's major export markets were the Chinese mainland In recent years, Asia has become a more integrated market, thanks to the various free trade agreements FTAs signed in the region.

Over the past few years, there has been an increase in companies in developed economies treating Asia as a market instead of a pure production base. After ten Supplements between and to keep widening and broadening the liberalisation measures in favour of HKSS, Hong Kong and the mainland entered into a subsidiary agreement under CEPA in to achieve basic liberalisation of trade in services in Guangdong Guangdong Agreement.

This was then followed by the Agreement on Trade in Services ATIS to extend the coverage of the agreement from Guangdong to the rest of the mainland from June Should Human Rights Be Considered Before Giving Preferential Trading Rights to a Country?By Sneh 2. Preferential Trade AgreementA Preferential trade area (PTA) is a trading bloc which gives preferential access to certain products from the participating countries.

This is done by reducing tariffs but not by abolishing. As at December , , people were employed in the import and export sector, which had , establishments. In , the sector accounted for % of Hong Kong’s GDP. In the ’s and ’s, the EU, the US, and other developed countries began to incorporate loose and non-binding human rights language in their preferential trade agreements (PTAs).

However, Canada, Mexico, and the U.S. were the first countries to include explicit human rights . Openness to, and Restrictions Upon, Foreign Investment.

Positive Trends for Investment. With the end to Sri Lanka's long-running civil war, the country has an historic opportunity to take advantage of its peacetime stability, geography, educated workforce, and scenic beauty. The OECD’s Centre for Tax Policy and Administration and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) are collaborating to address some of the challenges developing countries face in raising revenue from their mining sectors.

Human Rights Obligations of Trading Nations States are obligated to act in certain ways in order to pro-tect, respect, and advance human rights. was the first preferential trade agreement to include specific human rights language. that policy makers take action to protect human rights in other countries.

Trade policy is not the only or.

Chapter 4: The Legal, PoliticalTrade Environment