Speeches and Articles by U.S. Consul General James B. Cunningham

WELCOMING REMARKS
U.S. Consul General James B. Cunningham
U.S. States & Ports Association
"Investing and Doing Business in the U.S.A." Seminar
November 23, 2005

(As prepared for delivery)

President Li, thank you for your kind introduction. I am very grateful for the opportunity to join all of you today. The U.S. States & Ports Association's efforts to promote trade, investment, and business activities between the U.S. and China, Taiwan, Hong Kong, and Southeast Asia are deeply appreciated by my government. After all, approximately 20% of U.S. imports and exports are with these economies, and that share is rising.

The timing and location of this event on investing and doing business in the U.S.A. could not be more appropriate. As all of us here are well aware, Hong Kong will host the World Trade Organization's Sixth Ministerial Meeting, known as MC6, in just a few weeks. I would like to take a moment to review where we stand in terms of substantive preparations and to point out Hong Kong's positive role both in advancing liberalized trade and in making sure that such trade is secure. This city's unceasing effort over time to make itself a positive force in global commerce directly feeds in to the goals of your organization.

Let me start by noting that most of you are here because you wish to expand some sort of commercial activity involving the United States. I would like to underscore that broadening trade and investment with the rest of the world remains central to our national interests. Although trade issues can be politically sensitive in the U.S. -- as they are almost everywhere -- I would like to reaffirm that U.S. policy is as anchored as ever in the idea that liberalized terms for trade and investment create mutual benefit for the U.S. and its trading partners. That is why you see us presently making such exhaustive efforts to move the WTO negotiations forward: we want success in Hong Kong next month.

The idea of mutual gain from trade underpins what next month's meeting is all about. Recall that the trade ministers coming to Hong Kong seek to advance what is known as the Doha Development Agenda, or the DDA. The DDA is aimed in part at ensuring that the world's developing nations see clear benefit from their participation in the global trading system. The DDA has the potential to lift between 300 and 500 million people out of poverty and to enhance the economic well being of developing countries. Clearly, the stakes for developing countries are high and the lives and futures of the world's poorest citizens hang in the balance -- so we must not give up on the Round at this critical juncture.

We are all disappointed that recent WTO talks were not more productive. It is apparent now that the Hong Kong ministerial meeting will not reach the milestones we had hoped for, yet we maintain our ambition for the Doha round. We are firmly committed to completing the DDA negotiations before the end of 2006. To this end, we need to keep up maximum pressure on other WTO members to do as much as possible in Hong Kong. In addition to the need for the EU to improve its agricultural market access offer, the U.S. believes that to move ahead with talks, we will require greater engagement by the emerging economies such as Brazil and India on services and industrial goods.

Hong Kong, as MC6 host, is providing an invaluable service to the world. Hong Kong's track record in the WTO is also one of supporting more liberal terms of trade. And let me make special mention here that Hong Kong has done much to advance the idea that liberalized trade also needs to be secure trade.

Hong Kong signed onto the U.S. Container Security Initiative in September 2002. As the single largest source of U.S.-bound sea containers, Hong Kong's cooperation has been vital to the program. Our cooperation in this area underscores our common interest in protecting the smooth functioning of the global trading system in the face of terrorist threats. This clearly has significant bearing on the trade objectives of the U.S. States & Ports Association.

Similarly, as one of the top banking and finance centers in Asia, Hong Kong has worked closely with us to deny terrorists access to funds. Law enforcement cooperation has been excellent across the board and has been targeted at protecting the safety and well-being of the people of Hong Kong and America alike. This element is helpful to your organization's goal of promoting cross-Pacific investment and business activity.

Hong Kong's commitment to liberalized and secure trade is one reason that this city punches way above its weight in the global economy as the world's 11th largest trading entity and 15th largest banking center. Just look at our own bilateral economic ties. Some 55,000 Americans live and work here. This city hosts more than 1,100 American firms employing a quarter of a million people. In 2004, U.S. exports to Hong Kong totaled US$ 15.8 billion, making Hong Kong our 13th largest overseas export market. U.S. direct investment in Hong Kong through 2004 amounted to over US$ 43.7 billion. Over one million U.S. citizens visited Hong Kong in 2004.

Your seminar today is an opportunity to explore how to add to the positive story of growing U.S.-Asian trade and investment, a story whose most notable features are highlighted by our economic relationship with Hong Kong. I hope that your exchange of information leads you to more opportunities involving the U.S. And I hope that efforts to advance the WTO's Doha Development Agenda as well as global initiatives to maintain the security of trade continue to move forward, thus bringing people like you even more opportunity.

As I said, America remains open for business. Good luck in your endeavors.

Thank you.