[WTO Talks] WTO protests puzzle free trade poster child Hong Kong

from Reuters Alert Net

By John Ruwitch

HONG KONG, Dec 15 (Reuters) - Want to learn a thing or two about free trade? Read the works of renowned 18th century economist Adam Smith, or simply visit Hong Kong.

That advice from the city's last British colonial governor is being drowned out this week by the chanting and yelling of thousands of anti-free trade protesters who have converged on the southern Chinese city for a meeting of world trade ministers.

The demonstrators have taken over a city park and are marching daily through the streets denouncing the World Trade Organisation (WTO) and globalisation.

Shouts of "People before profit", "No tariff cuts" and "Down with the WTO" echo through the city that prides itself on being one of the world's major financial centres and a poster child for laissez-faire capitalism.

"Most people in Hong Kong don't understand what they (the anti-free trade protesters) are doing. This is not in their culture. They like free trade," said K.K. Cheung, a 68-year-old retired construction engineer.

Though the territory was handed back by Britain to Communist China in 1997, it has been allowed to keep its freewheeling business ways.

Hong Kong got its start on the road to wealth as a hub for British traders and merchants in the 1800s, and took off from there. Then, as now, its position as a middleman and gateway to China ensured it prospered from the world's seemingly insatiable demand for exotic and cheap Chinese goods.

Many of the city's nearly seven million people or their ancestors arrived here with nothing, fleeing poverty or the communists in mainland China. Rags to riches tales are common, and the city is consistently rated as one of the most open economies on earth. It has one of the busiest container ports in the world, with nearly a half million vessels visiting last year, and is home to the second biggest stock market in Asia after Tokyo's. Taxes are among the lowest in the region.

Former U.S. President Bill Clinton called Hong Kong "Exhibit A in the case for global interdependence and its benefits".

Donald Tsang, Hong Kong's chief executive, said the city "is in a better position than any other economy to speak up for free trade and open markets".

The colourful processions denouncing freer trade may seem out of place in a city that owes its fortunes to the unfettered exchange of goods, but some say there's no contradiction and on the streets there is a good deal of sympathy.

"Hong Kong is one of the examples that can be used as a reference point," said Mabel Au, coordinator of the umbrella group that is organising protests this week, the Hong Kong People's Alliance on WTO.

"But we don't think this should be one size fits all."

During the protest marches shop owners have shut their doors along parade routes for fear of trouble from the protesters, who have been disrupting traffic, banging drums and even brawling with riot police near the convention centre where world trade leaders are working on a pact to lower trade barriers.

But many bystanders have also lined the streets to watch the marches and on Thursday some found themselves choked up as hundreds of South Korean farmers made their way slowly down city streets taking three steps, denouncing the WTO, then kneeling down and bowing.

"I want to cry. It's so sad," said Angel Ng, working at a shop selling fruit drinks. "There should be a better way, a more equitable way."

K.S. Ho, a civil servant, gave a thumbs up to the protesters from South Korea, who say opening their country's market to imported rice will put them out of business.

"I am very, very sympathetic to them. They have a just cause," said Ho. "Hong Kong has been on a free trade course, but Hong Kong should support them because they suffer from the WTO."

With virtually no natural resources of its own, except for its deepwater harbour and hardworking, entrepreneurial people, Hong Kong has become heavily dependent on international trade.

But not everybody here has benefitted. In a city better known for its shining office towers and tycoons with fleets of Rolls-Royces, one of every four children lives in poverty.

"I think Hong Kong is like any other city that's built by working people, and a few people are taking the benefits," said David Solnit, 42, an activist from Oakland, California, who was wearing a Robin Hood outfit.

Walker Fung, 25, a marshall for the marches, agreed.

"We have grassroots people and they are suffering, too."