On Friday, the government of President Dina Boluarte and the Hong Kong Special Administrative Region formalized a Free Trade Agreement (FTA), aiming to enhance trade connections with this Asian entity. The signing event was led by the Peruvian President and Hong Kong's Chief Executive, John Lee Ka-chiu, with the agreement being signed by Peru's Foreign Trade and Tourism Minister, Desilu Leon, and Hong Kong's Secretary for Commerce and Economic Development, Algernon Yau.
President Boluarte highlighted the agreement as a milestone in consolidating relations with Hong Kong, emphasizing its foundation on stable and predictable trade rules. She noted the FTA as a step towards reinforcing Peru's commitment to inclusive and sustainable growth and enhancing its position in the Asia-Pacific region by offering Peruvian exporters new opportunities.
In 2023, Peru's exports to Hong Kong were reported at US$ 266 million, marking a slight increase from the previous year, with key exports including blueberries, grapes, fishmeal, and metals. The agreement is expected to boost these figures by offering Hong Kong investors and entrepreneurs a stable and strategically positioned market in Latin America for operations and expansion.
Significant projects like the Chancay Port and the new Jorge Chavez International Airport, alongside a liberal regulatory framework for cabotage, position Peru as a pivotal connection for Hong Kong in Latin America. The FTA aligns with the Belt and Road Initiative, enhancing global connectivity and integration.
The trade agreement encompasses provisions for cross-border trade in services, allowing Peruvian companies to offer services in Hong Kong without a local presence, benefiting sectors such as design and business services. It also includes commitments on financial services and guarantees zero tariffs indefinitely for Peruvian exports, offering a competitive edge for Peru's non-traditional exports like agricultural products.
Source: andina