HK-Chile trade pact updated

The Government today announced that the updated commitments on trade in services under the Free Trade Agreement (FTA) between Hong Kong and Chile will enter into force on April 6.


The updated commitments will strengthen trade co-operation between the two economies as they create more opportunities for businesses and investors in both places, the Government added.


Signed in January 2022, the updated commitments improve existing commitments under the agreement and open up more service sectors of both sides.


Chile has made commitments in over 50 new service sectors, encompassing priority sectors in which Hong Kong has traditional strengths or has potential for priority development.


These service sectors include professional and business, technical testing and analysis, convention, computer and related areas, communication, distribution and education.


Relevant Hong Kong services and their providers, subject to specific exceptions or conditions, will enjoy access to the Chilean market and treatment no less favourable than that for Chile’s local service providers.


Secretary for Commerce & Economic Development Algernon Yau said the updated services commitments come at an opportune time when world trade is reviving after the pandemic, creating opportunities for Hong Kong businesses and investors to diversify their markets.


It also demonstrates the Government’s efforts in seeking more favourable access to international markets as well as promoting the strengths of Hong Kong’s services sectors overseas, he added.


“Hong Kong’s service providers can now enjoy deepened and broadened access to the Chilean market. I encourage our traders and service providers to seize this invaluable opportunity to unleash the untapped business opportunities in Chile, which is our first FTA partner in Latin America as well as a gateway to the Latin American markets.”


Since the FTA between Hong Kong and Chile came into force in 2014, merchandise trade between both places recorded an average annualised growth of over 10% from 2015 to 2022, notwithstanding the challenges posed by the pandemic and external environment in recent years.


To date, Hong Kong has signed eight FTAs with 20 economies including the Mainland, Macau, the 10 member states of the Association of Southeast Asian Nations, Australia, Chile, the four member states of the European Free Trade Association, Georgia and New Zealand.