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 high-quality updated commitments will further strengthen and deepen trade co-operation between the two economies as they create more opportunities for businesses and investors in Hong Kong and Chile.
Signed in January 2022, the updated commitments improve existing commitments under the FTA and open up more service sectors of both sides. Of note is that Chile has made commitments in over 50 new service sectors, encompassing priority service sectors in which Hong Kong has traditional strengths or has potential for priority development, such as professional and business services, technical testing and analysis services, convention services, computer and related services, communication services including audio-visual services, distribution services and education services. Relevant Hong Kong services as well as their providers, subject to specific exceptions or conditions, will be able to enjoy access to the Chilean market and treatment no less favourable than that for Chile’s local service providers. Details of the FTA and the updated commitments, including the full text, are available on the Trade and Industry Department website (www.tid.gov.hk/english/ita/fta/hkclfta/index.html).
“We welcome the entry into force of the updated services commitments that comes at an opportune time when world trade is reviving after the pandemic. The updated commitments will create better opportunities for our businesses and investors in diversifying their markets. It also demonstrates the Government’s dedicated efforts in seeking more favourable access to international markets as well as promoting the strengths of Hong Kong’s services sectors overseas,” the Secretary for Commerce and Economic Development, Mr Algernon Yau, said.
“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,” Mr Yau added.
Since the FTA came into force in 2014, bilateral merchandise trade between Hong Kong and Chile recorded an average annualised growth of over 10 per cent 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, namely the Mainland, the Macao Special Administrative Region, 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, all of which have entered into force.