Portuguese-speaking countries | MSAR, Hong Kong to step up role in trade facilitation

Following new policies announced by Beijing this month at a Portuguese-speaking countries culture forum held in the Chinese capital, investors and analysts in the two SARs say they see an opportunity for Macau and Hong Kong to step up their role in the exchange of goods and services between China and lusophone countries.

Among the areas for development outlined during the culture forum are aviation links with Macau International Airport and the maturity of the MSAR as a platform for food and wine products from countries such as Portugal and Brazil.

Popular products from Portuguese-
speaking countries include food products such as fish and olive oil, as well as alcoholic beverages like wine and port. Meanwhile, Angola is prized for its export of commodities such as oil, gas and diamonds.

According to Reuters estimates, acquisition deals involving Hong Kong, mainland China and Portugal and Brazil totaled over USD219 billion in 2016, almost double that recorded in the previous year.

However, the value of trade between China and Portuguese-speaking countries continued its decline in that same year, contracting 7.7 percent to around USD90.8 billion.

Of this total, nearly three-quarters was accounted for by trade solely between China and Brazil, while Angola and Portugal – the next two largest traders among Portuguese-
speaking countries – represented around 17 percent and 6 percent of the trade value respectively.

The president of the Hong Kong-
based group for Macanese people Club Lusitano, Daniel Rozario, told the South China Morning Post this week that the new policy “will help Macau develop as a trading platform to import food and wine and other products from Portugal and Brazil.

Rozario, whose family is from Macau, also said that Hong Kong has a crucial role to play in the development of China-Lusophone trade facilitation. While Macau has been designated the responsibility of developing the platform, the city’s lack of human resources means it is likely to require assistance from Hong Kong’s experience as an Asian center of finance and trade.

“Macau does not have many accounting or legal professionals and its banking network is not nearly as international as Hong Kong’s,” Rozario told the SCMP. “This is how Hong Kong firms can contribute to its [Macau’s] trade relationships.” DB