Hong Kong Expands Trade Reach with ASEAN FTA Amendment
Hong Kong has made significant strides in bolstering its trade relations with the Association of Southeast Asian Nations (ASEAN). The region and the regional bloc have signed a protocol to expand the coverage of their free trade agreement (FTA). The move will result in a substantial increase in the range of specified product categories under the FTA.
Protocol Update: Widening Product Coverage
The protocol update entails the revision of Product Specific Rules (PSR) of origin, effectively extending coverage from over 200 categories of products to nearly 600. Among the newly specified products incorporated into the FTA through this protocol are items spanning various categories, including jewellery, medicaments, foods, and textile products.
For Hong Kong businesses, this expansion signifies easier access to Hong Kong-originating status for a broader array of products. This facilitates preferential tariff treatment when venturing into the burgeoning ASEAN market. Thus, the move will provide a competitive edge while opening doors to new opportunities for growth and expansion.
Commerce Chief’s Perspective: Importance of ASEAN Relations
Secretary for Commerce and Economic Development Algernon Yau stressed the agreement’s significance. He reiterated on ASEAN being Hong Kong’s second-largest trading partner in merchandise trade. He also emphasised the role of the FTA in bolstering Hong Kong’s stature as an international trade hub, highlighting a remarkable growth of over 38 per cent in total trade volume since the FTA’s inception in 2017.
Yau expressed confidence in the protocol’s implementation, foreseeing its role in fostering continued growth in economic and trade relations between Hong Kong and ASEAN member states. He reiterated Hong Kong’s commitment to further trade liberalisation in the region, underscoring the importance of free trade in driving prosperity and development.
Enhancing Competitiveness: Stimulating Trade Flows
The protocol signing will enhance the competitiveness of the products, stimulate trade flows, and create abundant business opportunities for Hong Kong enterprises in the ASEAN market. The move aligns with the region’s proactive stance in expanding its trade agreements to create a conducive environment for businesses.
Looking ahead, the Trade & Industry Department of Hong Kong will make the text of the First Protocol to Amend the Free Trade Agreement between ASEAN and Hong Kong available on its website. This transparency enables stakeholders to access the details of the agreement and understand its implications for their businesses and the wider economic landscape.
Future Collaboration: Early Implementation Focus
Both Hong Kong and ASEAN are committed to working closely to ensure the early implementation of the protocol. This collaborative effort aims to expedite the realsation of benefits for Hong Kong exporters. It will enable them to capitalise on the expanded trade opportunities presented by the amended FTA.
With the ASEAN market holding significant potential for growth and expansion, Hong Kong’s proactive approach to widening its trade agreements underscores its commitment to fostering a dynamic and resilient economy. This move is being welcomed by investors who are looking to start a business in the region.
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