Hong Kong-Peru Free Trade Agreement to Boost Trade and Investment Cooperation Starting from September 1

Free Trade Agreement between Hong Kong and Peru to enter into force on September 1

The Free Trade Agreement (FTA) between Hong Kong and Peru will enter into force on September 1, following the fulfilment of relevant internal requirements by both sides. The FTA provides manufacturers, service providers and investors of HongKong with legal certainty of more favourable treatment and market access to Peru, with a view to creating business opportunities and enhancing trade and investment flows between the two places.

The Secretary for Commerce and Economic Development, Mr AlgernonYau, said, "Peru is an important trading partner of Hong Kong in Latin America. The FTA encompasses trade in goods, trade in services, investment, electronic commerce, and other related areas. The overall commitments in the FTA go beyond those undertaken by the two economies respectively under the World Trade Organization, which will enhance bilateral trade and investment.

The Secretary for Commerce and Economic Development, Mr AlgernonYau, Photo source: reference image

"This is Hong Kong's second free trade agreement forged with a Latin American economy, fully demonstrating HongKong's commitment to forging closer economic partnerships with trading partners in the Latin American region. The FTA will provide a favourable platform for Hong Kong's traders and investors to expand their business in Peru and explore business opportunities in other Latin American markets through Peru," he added.

On trade in goods, Peru will eliminate tariffs on approximately 98.3percent of its tariff lines for Hong Kong-origin exports to Peru, among which tariff elimination concerning 91.3percent of the tariff lines will take immediate effect upon the entry into force of the FTA, while tariffs on the remaining 7percent of tariff lines will be phased out gradually. The competitiveness of Hong Kong products exported to Peru will be enhanced. Apart from preferential tariffs, the trade can also benefit from trade facilitation measures and reduction of trade barriers.

On trade in services, Hong Kong service providers will enjoy benefits in over 150services sectors in which Peru has made specific commitments under the FTA. These commitments cover sectors where Hong Kong has traditional strengths or has potential for development, including professional services, computer and related services, research and development services, financial services, and transport services.

As regards investment, Peru will accord Hong Kong investors national treatment as specified in the FTA. To further enhance investment flows between Hong Kong and Peru, negotiation of an Investment Promotion and Protection Agreement (IPPA) has been concluded between the two places. The IPPA will be signed after the completion of respective necessary internal procedures.

"We will continue to actively forge FTAs and IPPAs with more trading partners to expand economic and trade networks, with a view to consolidating and enhancing Hong Kong's status as an international trade centre and investment hub, and playing its role as a 'super connector' and 'super value-adder'," Mr Yau added.

Details of the FTA, including its full text, are available on the Trade and Industry Department (TID)'s website (www.tid.gov.hk/en/our_work/trade_and_investment_agreements/ftas/peru.html). TID has also issued trade circulars to inform the trade of the relevant preferential rules of origin and related requirements, which can be accessed atwww.tid.gov.hk/en/tradecircular/detail.html?categoryId=72.

Including the FTA with Peru, Hong Kong has so far signed nine FTAs with 21 economies, namely the Chinese Mainland, New Zealand, the member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, the 10 member states of the Association of Southeast Asian Nations (i.e. Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam), Georgia, Australia and Peru.

In November 2024, Hong Kong and Peru signed a free trade agreement. Photo source: HKSAR Government Press Releases

Hong Kong Customs detects two drug trafficking cases involving incoming passengers at airport

Hong Kong Customs yesterday (October 11) detected two drug trafficking cases involving incoming passengers at Hong Kong International Airport and seized about 9.8 kilograms of suspected cannabis buds, with an estimated market value of about $1.98 million.

In the first case, a 30-year-old Mainland male passenger arrived in Hong Kong from Bangkok, Thailand, yesterday. During customs clearance, Customs officers found about 4.3kg of suspected cannabis buds inside his carry-on baggage. He was subsequently arrested.

In the second case, a 36-year-old Mainland male passenger arrived in Hong Kong from Bangkok, Thailand, via Vietnam, yesterday. During customs clearance, Customs officers found a total of about 5.5kg of suspected cannabis buds from his two check-in baggage. He was subsequently arrested.

The arrested men in both cases have each been charged with one count of trafficking in a dangerous drug. The two cases will be brought up at the West Kowloon Magistrates' Courts tomorrow (October 13).

Customs will continue to step up enforcement against drug trafficking activities through intelligence analysis. The department also reminds members of the public to stay alert and not participate in drug trafficking activities for monetary return. They must not accept hiring or delegation from another party to carry controlled items into and out of Hong Kong. They are also reminded not to carry unknown items for other people.

Customs will continue to apply a risk assessment approach and focus on selecting passengers from high-risk regions for clearance to combat transnational drug trafficking activities.

Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.

Members of the public may report any suspected drug trafficking activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account(crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Hong Kong Customs detects two drug trafficking cases involving incoming passengers at airport Source: HKSAR Government Press Releases

Hong Kong Customs detects two drug trafficking cases involving incoming passengers at airport Source: HKSAR Government Press Releases