The Trade & Industry Department announced today that the Free Trade Agreement (FPA) signed between Hong Kong and Peru will enter into force on September 1.
Speaking on the announcement, Secretary for Commerce & Economic Development Algernon Yau noted that the FTA will provide a favourable platform for Hong Kong’s traders and investors to expand their businesses in Peru, while exploring broader business opportunities across other Latin American markets.
“The FTA encompasses trade in goods, trade in services, investment, electronic commerce, and other related areas. The overall commitments in the FTA go beyond those undertaken by the two economies respectively under the World Trade Organization, which will enhance bilateral trade and investment,” Mr Yau added.
Under the agreement, Peru will eliminate tariffs on approximately 98.3% of its tariff lines for Hong Kong-origin exports. Tariff elimination concerning 91.3% of the tariff lines will take immediate effect upon the FTA entering into force, while tariffs on the remaining 7% will be phased out gradually.
Apart from preferential tariffs, trade participants will benefit from enhanced trade facilitation measures and a reduction of trade barriers.
Regarding trade in services, Hong Kong service providers will enjoy benefits across more than 150 services sectors in which Peru has made specific commitments. The designated sectors cover professional services, computer and related services, research and development services, financial services and transport services.
In terms of investment, Peru will accord Hong Kong investors national treatment as specified in the FTA. An Investment Promotion & Protection Agreement will be signed once the necessary internal procedures are finalised.
This is Hong Kong’s second free trade agreement forged with a Latin American economy. To date, Hong Kong has signed nine FTAs with 21 economies.