Hong Kong Signs FTA with Peru at 2024 APEC

Hong-Kong special administrative region (SAR) signed a free trade agreement (FTA) with Peru on the sidelines of the 31st APEC Economic Leaders' Meeting on November 15, 2024. This is the second FTA signed between Hong Kong SAR and Latin American economies and is expected to create synergies with the Hong Kong SAR-Chile FTA signed in 2012.

Negotiations for the FTA between Hong Kong SAR and Peru commenced in January 2023 and is finalized in July 2024. Under the FTA, Hong Kong's suppliers can benefit from Peru's specific commitments in over 150 service sectors like professional, computer, research and development, financial and transportation services.

Upon the entry into force of the FTA, most of the goods of Hong Kong origin will be duty-free for export to Peru, bringing new opportunities for Hong Kong's export business. With the official opening of the Chancay Port, a key project of the Belt and Road Initiative between China and Peru, Hong Kong will lead bilateral trade to new heights. In addition, the agreement further expands Hong Kong's business and trade network in Latin America, enabling Hong Kong's goods and services to access more overseas markets on favorable terms, and enhance Hong Kong's position as a trade and investment hub.

In 2023, Peru was Hong Kong's fifth largest trading partner in Latin America, with total trade amounting to USD 670 million. Trade in goods and services between the two sides achieved an average annual growth of 4 percent (2019-2023) and 16.3 percent (2018-2022) respectively. The signing of the FTA is the beginning of a closer bilateral relationship between Hong Kong SAR and Peru, which is of strategic value to both sides and is expected to further promote two-way investment flows and mutual economic development.

Picture Source: Hong Kong Commercial Daily