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The Government is well aware of the concerns expressed by the watch industry in meeting the CEPA rules of origin but there is a need to find a proper balance between incentives to entice the setting up of manufacturing operations here in Hong Kong and safeguards to protect the interests of our workers, the Secretary for Commerce, Industry and Technology, Mr John Tsang, said this morning (September 1).
Speaking at the opening ceremony of the Hong Kong Watch & Clock Fair 2004, Mr Tsang said watches and clocks were among the products eligible for zero tariff status under CEPA since its implementation in January this year.
"We have taken into account the watch and clock industry's views in formulating the CEPA rules of origin, but industry representatives have indicated to us that it would be difficult for the industry to benefit from the current arrangements," he said.
Mr Tsang said the industry had proposed modifying the rules to enable more local manufacturers to benefit from CEPA and to support their efforts in promoting Hong Kong brand name products, particularly those belonging to the higher end.
"We are well aware of these concerns, but we need to find the proper balance between incentives to entice the setting up of manufacturing operations here in Hong Kong and safeguards to protect the interests of our workers," he said.
"We are actually discussing these issues with the relevant Mainland authorities with the hope that we would be able to arrive at some mutually acceptable arrangement before long."
Noting that Hong Kong was a leading exporter of watches and clocks, Mr Tsang said the territory had exported some US$5.4 billion worth of watches and clocks last year, representing a solid 9% year-on-year growth.
"The industry's contribution to our economy is not just restricted to its export earnings. It also helps to promote Hong Kong's image of quality and reliability, the very features of our watch and clock products," he added.
Ends/Wednesday, September 1, 2004
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