Implications of the upstream approach of global supply chain security controls on trade operations - A case study of Hong Kong

Instead of looking into the disruption and cost implications of tightened security measures on trade, we deal with this issue from the perspective of trade control structural change. To compile a new GSC risk management model a case study of Hong Kong's trade regulative practices is performed. The measures taken by the Hong Kong authority in response to the upstream approach of global supply chain security controls of the major trade regimes are examined. By conducting a series of interviews with GSC stakeholders of Hong Kong, our study demonstrates that although Hong Kong has some leading edge in trade security controls there are significant challenges that must be addressed. A mature hub port such as Hong Kong might construct a relatively low-risk GSC environment according to the commonly recognised security standards. Nevertheless under the current GSC governing structure of Hong Kong the strong collaboration required for the transformation is difficult to achieve, unless radical changes such as establishment of an international trade facilitation centre (ITFC) is adopted.