Hong Kong and Peru sign Free Trade Agreement, boosting over 150 sectors in the SAR

Hong Kong and Peru have signed a Free Trade Agreement on the sidelines of the Asia-Pacific Economic Cooperation Economic Leaders' Meeting in Lima, Peru, with the agreement set to benefit the city’s service providers in over 150 sectors.

In the witness of the Chief Executive John Lee Ka-chiu, and the President of Peru Dina Boluarte, the Secretary for Commerce and Economic Development Algernon Yau, and the Minister of Foreign Trade and Tourism of Peru Úrsula Desilú León Chempén, signed the FTA.

Speaking at the meeting, Lee said Peru is Hong Kong's valued trading partner in Latin America, and also one of the participating countries of our country's Belt and Road Initiative. 

“The Agreement signed today is the first FTA signed by the current-term HKSAR Government, carrying strategic value to both Hong Kong and Peru. Apart from helping Hong Kong to gain entry into the great potential market of Peru, the FTA also provides manufacturers, service providers and investors of Hong Kong and Peru with legal certainty and better conditions, creating business opportunities and enhancing bilateral trade and investment between the two places," said Lee.

Lee also said at the meeting the commencement of negotiations of a separate Investment Promotion and Protection Agreement (IPPA) between Hong Kong and Peru is encouraging, and he trusted both places will further enhance bilateral investment flows to bring about economic growth of the two sides.

According to a government statement, the FTA encompasses trade in services, trade in goods, investment and other related areas. 

“The FTA's overall commitments go beyond those undertaken by the two economies under the World Trade Organization, and the trade in Hong Kong can be benefited from elimination or reduction of tariff, and reduction of trade barriers. Service providers and investors, likewise, can be benefited from legal certainty of better market access and national treatment when entering and operating in Peru,” the statement read.