Hong Kong, ASEAN sign FTA plus Investment Agreement

November 13, 2017

MANILA - Economic Ministers from ASEAN Member States and the Secretary for Commerce and Economic Development of Hong Kong, China (HKC) yesterday signed the ASEAN – HKC Free Trade Agreement (AHKFTA) and the ASEAN – HKC Investment Agreement (AHKIA) on the sidelines of the 31st ASEAN Summit in Pasay City, the Philippines. Negotiations had begun in July 2014.

The FTA is ASEAN’s sixth with external partners, after China, Korea, Japan, India, and Australia-New Zealand. It has 14 chapters covering broad areas of market access liberalisation, trade facilitation, rules to promote confidence in trade, and co-operation aimed at facilitating trade in goods and services in the region.

The AHKIA complements the AHKFTA by covering the protection, promotion and facilitation of investment.

ASEAN Ministers noted the growing economic relations between ASEAN and Hong Kong. Based on ASEAN statistics, ASEAN – HKC merchandise trade in 2016 was valued at US$ 93.3 billion, while total foreign direct investment flows from Hong kong to ASEAN amounted to US$ 9.9 billion, a 141% increase from US$ 4.1 billion in 2015.

The new Agreements will come into force from January 1, 2019. Hong Kong currently is negotiating an FTA with Australia. (ATI).