Australian and Hong Kong officials have signed the Australia-Hong Kong Free Trade Agreement (A‑HKFTA) and associated Investment Agreement, securing more certainty and opportunities for Australian businesses and investors.
Hong Kong is a Special Administrative Region of the People’s Republic of China and can enter into its own trade agreements.
Negotiations between Australia and Hong Kong commenced on 16 May 2017.
Hong Kong was Australia’s 12th largest trading partner overall in 2017, with total two-way trade in goods and services worth $18.8 billion.
Hong Kong is an attractive export destination for Australia. In 2017, it was Australia’s sixth most important destination for merchandise exports ($12 billion) and seventh-largest services market ($3.0 billion).
According to data by the Department of Foreign Affairs and Trade, gold is Australia’s top goods export to Hong Kong (at $8 billion).
Telecommunication equipment and parts ($303 million), pearls and gems ($130 million), and zinc ($110 million) are also amongst Australia’s top 10 goods exports to the region.
Prime Minister Scott Morrison said the agreements mark a new chapter in Australia’s close and mutually beneficial relationship with Hong Kong.
“Australian farmers, businesses, service suppliers and investors are the big winners from the certainty this agreement will bring,” the Prime Minister said.
Minister for Trade, Tourism and Investment, Simon Birmingham also said the agreements would cement several important outcomes for Australian businesses and investors.
“Under this agreement zero tariffs will be locked-in on goods, market access will be guaranteed for services suppliers, and conditions for two-way investment will be significantly improved,” Minister Birmingham explained.
The Federal Government also agreed to a series of trading rules on e-commerce including data flows and data storage, financial services, telecommunications, and intellectual property, in which Minister Birmingham believes will provide regulatory certainty for Australian businesses and the confidence to make long-term investment decisions.
Australia now has free trade agreements with seven of its top eight export markets for goods and services, covering close to 70 per cent of Australia’s total trade.
Australia must follow the domestic treaty-making processes to ratify the agreements. This includes tabling the text of the agreements in Parliament and an inquiry by the Joint Standing Committee on Treaties. Hopefully this will occur as soon as possible so businesses and investors from across the country can start to gain the benefits of this agreement.