Hong Kong International Trade Barriers
Hong Kong has international trade barriers that seem to be threatening the trade of other countries with Hong Kong. Hong Kong restrictions include the following. First is Hong Kong’s import policy which includes a 30 to 100 percent ad valorem on alcohol beverage and wine. In addition, Hong Kong has also banned United States imports of beef in December 2003 as there was detection of one positive case of Bovine Spongiform Encephalopathy in the state of Washington. Second is Hong Kong’s intellectual right protection wherein the country has strong laws, efficient and dedicated enforcement capacity and a judicial system which supports enforcement efforts by sentencing those convicted of intellectual property rights violations with jail time. Third restriction is service barriers of Hong Kong. Nevertheless, the country states that they have no general competition law which restricts incumbents from utilizing their market dominance to keep out new entrants as there have been several domestic service sectors where one or a few firms dominate market share. And finally, the last restrictions are barriers regarding electronic commerce and pharmaceuticals.
In the case of Hong Kong, they are merely protecting their country against foreign international traders. This seems to be a very big threat for companies that are operating internationally from other nations as their transactions are restricted by Hong Kong’s foreign trade barriers. In the long run, with globalization at its peak, Hong Kong will be forced to remove or lessen their international trade barriers as there will be an increasing interdependence among countries with regards to products and services.
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