The “First Protocol to Amend the Investment Agreement (IA) Between the Association of Southeast Asian Nations (ASEAN) and Hong Kong” was signed today in Manila, the Philippines, ensuring non-discriminatory treatment for Hong Kong firms across 10 ASEAN member states.
The Commerce & Economic Development Bureau said ASEAN is a key investment partner for Hong Kong and has been the city’s third-largest destination of outward direct investment for four consecutive years, with a cumulative investment of $671.2 billion.
It added that the investment agreement boosts flourishing investment relations between the two sides and strengthens Hong Kong’s position as an international investment hub.
The bureau said it is confident that the protocol’s signing and subsequent implementation will drive steady growth in Hong Kong’s economic, trade and investment relations with the ASEAN region. It will also work side by side with ASEAN partners to bring about further economic development and investment growth in the region.
The protocol was signed by Under Secretary for Commerce & Economic Development Bernard Chan, Secretary of the Department of Trade & Industry of the Philippines Ma. Cristina A. Roque, and Deputy Prime Minister and Minister of Commerce of Thailand Suphajee Suthumpun.
Following the signing, Hong Kong and the Philippines – the ASEAN Chair this year – co-chaired the “10th ASEAN Economic Ministers – Hong Kong, China Consultation”.
The protocol mainly incorporates schedules of reservations that give effect to the IA’s Article 3 (National Treatment) and Article 4 (Most-Favoured-Nation Treatment). These articles provide that a party shall accord the other parties’ enterprises and their investments non-discriminatory treatment, except for those outlined as being reserved.
The signing of the protocol is anticipated to bring about legal certainty, enhance the investment environment and create more investment flows.
Complementing the free trade agreement (FTA) between Hong Kong and the 10 ASEAN member states, the IA will accord enterprises and their investments in non-services sectors national treatment and most-favoured-nation treatment.
In addition to non-discriminatory treatment, the IA provides for fair and equitable treatment of investments, physical protection and security of investments, and assurance of the free transfer of investments and returns.
In case of expropriation or investment losses owing to war, armed conflict or similar, compensation will be provided according to the agreed standard as specified under the IA.
The text of the protocol will be uploaded to the Trade & Industry Department’s website after all parties have completed its signing.
Hong Kong and the 10 ASEAN member states will continue to work closely to bring about the protocol’s early implementation.
The 10 ASEAN signatories are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
An extension of the FTA and IA to Timor-Leste, the 11th member state of ASEAN, is in progress, pending ASEAN’s internal procedures.