HK explains its Free Trade Agreement Agenda

On November 4, Hong Kong’s Secretary for Commerce and Economic Development, Gregory So, discussed the territory’s free trade agreement strategy.

So stressed that the Government’s primary goal is entering into FTAs with its major services trading partners, as the services industry constitutes 93% of the city’s GDP (gross domestic product).

Hong Kong’s first trade treaty was signed with Mainland China, its largest services trading partner. Through the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), signed in 2003 and has been supplemented 10 times, Hong Kong service suppliers can now access most services sectors in the Mainland.

Also, Hong Kong is actively participating in the Trade in Services Agreement (TISA) negotiations between 23 participating economies, which commenced in 2013. Of these participants, 8 are among the city’s 10 largest markets for services. Hong Kong’s exports of financial services and business services to them account for 80% and 70% of total exports, respectively.

So also pointed to the commencement of FTA negotiations with the Association of South East Asian Nations (ASEAN) in July 2014. Collectively, the 10 ASEAN member states are Hong Kong’s 4th-largest trading partner for services. The Government’s target is to conclude these negotiations in 2016.

So confirmed that the 3 trade deals will benefit 95% of Hong Kong’s trade flows in services.

After the conclusion of the FTA negotiations with ASEAN, the Government will seek to join the Regional Comprehensive Economic Partnership (RCEP), currently being negotiated between ASEAN and its 6 FTA partners – the Mainland, Japan, India, South Korea, Australia, and New Zealand.

Filed under: Business and Economy, HK as a Financial Centre, Hong Kong and China, International Business Environment