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GENEVA, SWITZERLAND - HONG Kong and Singapore topped a new index that assesses how successfully economies encourage and assist trade, the World Economic Forum said on Wednesday.
The two East Asian economies were followed by two Nordic countries - Sweden and Norway - then by Canada, and then two more Nordic countries - Denmark and Finland, the business think-tank said in a report.
The survey looked not only at conventional barriers to trade such as tariffs, but at factors such as the time taken to cross borders and transport conditions.
'The index will be particularly useful for policy-makers interested in benefiting from trade,' Robert Lawrence, professor of trade and investment at Harvard University and co-editor of the report, said in a statement.
'By integrating and benchmarking the full range of factors that affect trade, both at and behind the border, it provides meaningful guidance on what their priorities should be.'
Hong Kong and Singapore live from trade, and the small open Nordic economies are also heavily reliant on commerce.
Prof Lawrence pointed to the relatively low ranking of 14 for the United States, which was dragged down by its tough security rules. On one measure - the business cost of terrorism - the United States ranked 111 out of 118.
Prof Lawrence said a survey of chief executives showed US security regulations were not only impeding the free flow of people but fuelling a perception that the United States was a difficult market to deal with.
Among strong performers, the former Soviet republic of Lithuania ranked top for customs services, the East African state of Uganda was first regarding non-tariff barriers, and the central American state of El Salvador came out on top for the openness of bilateral air service agreements.
The index measured factors, policies and services facilitating the free flow of goods over borders and to destinations. It assessed four categories - market access, border administration, transport and communications infrastructure, and the business environment.
'The results bear witness to Hong Kong and Singapore's openness to international trade and investment as part of their successful economic development strategy,' the forum said.
Both economies have put into place customs administrations that are highly efficient in getting goods over borders.
They are also endowed with well-developed transport and telecommunications infrastructures ensuring rapid transit to the final destination, and have business environments regarded as supportive to international trade. -- REUTERS
Top 10 rankings
1: Hong Kong
Score : 6.04
2: Singapore
Score : 5.71
3: Sweden
Score : 5.66
4: Norway
Score : 5.65
5: Canada
Score : 5.62
6: Denmark
Score : 5.62
7: Finland
Score : 5.61
8: Germany
Score : 5.58
9: Switzerland
Score : 5.58
10: New Zealand
Score : 5.52
Source: Global Enabling Trade Report 2008
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