The Trade and Industry Department announced today that the Free Trade Agreement (FTA) signed between Hong Kong and Peru will take effect on 1 September.

Speaking on the announcement, Joe Yau, Director-General of the Commerce and Economic Development Bureau, said the FTA will provide a favourable platform for Hong Kong traders and investors to expand their businesses in Peru, while unlocking broader commercial opportunities across other Latin American markets.

“The FTA covers trade in goods, trade in services, investment, e-commerce and other related sectors,” Mr Yau added. The overall commitments under the FTA go beyond those separately undertaken by the two economies under the World Trade Organization, which will boost bilateral trade and investment flows.

Under the agreement, Peru will eliminate tariffs on around 98.3% of tariff lines for Hong Kong exports. Tariffs on 91.3% of the lines will be removed immediately upon the FTA’s entry into force, while the remaining 7% will be phased out progressively.

Beyond preferential tariffs, trade operators will also benefit from enhanced trade facilitation measures and reduced trade barriers.

In terms of trade in services, Hong Kong service suppliers will enjoy benefits in over 150 service sectors where Peru has made specific commitments. These designated sectors include professional services, computer and related services, research and development services, financial services and transport services.

On investment, Peru will accord national treatment to Hong Kong investors as stipulated under the FTA. An Agreement for the Promotion and Protection of Investments will be signed once all necessary internal procedures are completed.

This marks Hong Kong’s second free trade agreement with a Latin American economy. To date, Hong Kong has signed nine free trade agreements with 21 economies worldwide.

Source: News.gov.hk