On 15 November 2024, Hong Kong signed a Free Trade Agreement (“FTA”) with Peru at the Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in Lima, Peru.
The FTA is broad and far reaching in its scope, spanning competition, dispute settlement, intellectual property, investment, trade in goods and services, including online commerce, and other strategic areas. In addition, the arrangement will offer Hong Kong enterprises access to over 150 industries in Peru, encompassing finance, professional services, transport, and research and development. Its provisions surpass the commitments pledged by the two economies within the framework of the World Trade Organization.
The FTA will establish a clear, stable, and reliable legal structure for commerce, offering a conducive setting for businesspeople and investors in Hong Kong to expand their operations into Peru and further afield in Latin America. The FTA is set to come into effect upon the conclusion of all requisite formalities. Its commencement date shall be announced in due course.
Peru ranks as one of Hong Kong’s top trading partners in Latin America. In 2023, Peru held the fifth position among Hong Kong’s trading partners in the region, with trade volume totalling HKD 5.2 billion. The trade relationship between Hong Kong has seen robust and steady growth over recent years. Bilateral merchandise trade expanded at an average annual rate of 4 per cent between 2019 and 2023, while bilateral trade in services increased at an average annual rate of 16.3 per cent between 2018 and 2022.