The CMA Welcomes the Hong Kong-Peru Free Trade Agreement
Hong Kong and Peru have officially signed a Free Trade Agreement (FTA) today (16 November), a development warmly welcomed by the Chinese Manufacturers’ Association of Hong Kong (the CMA). The CMA believes the agreement will boost bilateral trade between the two economies and serve as a strategic springboard for Hong Kong businesses to tap into the vast market potential of Latin America. Furthermore, the CMA sees the FTA as a key step in strengthening Hong Kong’s role in Latin America and enhancing its standing as a multinational supply chain management centre.
The FTA, which will come into effect after Hong Kong and Peru have complete their respective internal procedures, covers a broad range of areas, including trade in goods and services, investment, intellectual property, and other related sectors. Under the agreement, most Hong Kong-origin goods will enjoy immediate duty-free access to the Peruvian market. Hong Kong service providers will also benefit from improved market access conditions when operating in Peru.
Dr Wingco Lo, President of the CMA, anticipates that the FTA will deepen commercial ties and foster greater cooperation between Hong Kong and Peru, which is already Hong Kong’s fifth-largest trading partner in Latin America. “Peru is a middle-to-high-income economy with significant demand for a wide range of consumer goods, offering substantial business opportunities for Hong Kong products and facilitating businesses’ expansion into new markets,” Dr Lo remarked. He also highlighted that Peru’s export-driven economy, with Mainland as a key market, presents a unique opportunity for Hong Kong. He believes that the FTA will encourage Peruvian businesses to invest in Hong Kong, leveraging the city as a gateway to the vast Chinese market.
Dr Lo further emphasised that the FTA will enable Hong Kong to capitalise on its strengths in international connectivity and high-value services, thereby solidifying its position in the global supply chain. “Hong Kong can act as a connector between Asia and Latin America, facilitating collaboration in procurement, investment, innovation, and supply chain management. This development not only supports Hong Kong’s goal of becoming a high-value supply chain management centre but also aligns with the country’s broader efforts in high-level opening up.”
The CMA also noted that Peru, as a strategic hub for land, sea, and air transportation in Latin America, is a member of the Pacific Alliance. The signing of the FTA not only enhances bilateral trade but also sets a positive precedent for future FTA negotiations between Hong Kong and other Pacific Alliance member countries.
The FTA, which will come into effect after Hong Kong and Peru have complete their respective internal procedures, covers a broad range of areas, including trade in goods and services, investment, intellectual property, and other related sectors. Under the agreement, most Hong Kong-origin goods will enjoy immediate duty-free access to the Peruvian market. Hong Kong service providers will also benefit from improved market access conditions when operating in Peru.
Dr Wingco Lo, President of the CMA, anticipates that the FTA will deepen commercial ties and foster greater cooperation between Hong Kong and Peru, which is already Hong Kong’s fifth-largest trading partner in Latin America. “Peru is a middle-to-high-income economy with significant demand for a wide range of consumer goods, offering substantial business opportunities for Hong Kong products and facilitating businesses’ expansion into new markets,” Dr Lo remarked. He also highlighted that Peru’s export-driven economy, with Mainland as a key market, presents a unique opportunity for Hong Kong. He believes that the FTA will encourage Peruvian businesses to invest in Hong Kong, leveraging the city as a gateway to the vast Chinese market.
Dr Lo further emphasised that the FTA will enable Hong Kong to capitalise on its strengths in international connectivity and high-value services, thereby solidifying its position in the global supply chain. “Hong Kong can act as a connector between Asia and Latin America, facilitating collaboration in procurement, investment, innovation, and supply chain management. This development not only supports Hong Kong’s goal of becoming a high-value supply chain management centre but also aligns with the country’s broader efforts in high-level opening up.”
The CMA also noted that Peru, as a strategic hub for land, sea, and air transportation in Latin America, is a member of the Pacific Alliance. The signing of the FTA not only enhances bilateral trade but also sets a positive precedent for future FTA negotiations between Hong Kong and other Pacific Alliance member countries.