SINGAPORE: Hong Kong and the Asia-Pacific Economic Cooperation (APEC) yesterday signed a memorandum of understanding (MOU) to boost trade by cutting business-transaction costs.

Under the MOU, Hong Kong will donate $200,000 dollars to the APEC Secretariat to develop a way to measure the outcome of its Trade Facilitation Action Plan.

The plan calls for a 5 percent reduction in business-transaction costs by all economies by 2010. That's in addition to the 5 percent reduction achieved from 2002 to 2006.

"In the face of the current challenges in the global economy, it is all the more important to continue streamlining processes and reducing trade-transaction costs," said Joseph Lai, APEC's senior official in Hong Kong, at the signing ceremony. "We hope that our contribution will support initiatives that lead us closer to the shared vision of free trade."

APEC Secretariat Executive Director Michael Tay said: "At a time when trade flows are a real concern for APEC and for the entire world, this contribution from Hong Kong is very significant to APEC".

Around 1,000 APEC senior officials and delegates gathered in Singapore Monday for the Senior Officials Meeting. Leaders of APEC's 21 member economies are expected to meet on Nov 14 and 15 this year.

Xinhua

(HK Edition 02/17/2009 page16)