Hong Kong Signs First Protocol to Amend ASEAN - Hong Kong Investment Agreement

Hong Kong signs first protocol to amend ASEAN - Hong Kong investment agreement

The First Protocol to Amend the Investment Agreement (IA) between the Association of Southeast Asian Nations (ASEAN) and Hong Kong (the Protocol) was signed today (September 20) to activate the relevant provisions of the IA to enable Hong Kong enterprises to enjoy treatments no less favourable than those accorded to local or foreign enterprises in the 10 ASEAN member states.

The Protocol was signed between the Under Secretary for Commerce and Economic Development, Dr Bernard Chan; the Secretary of the Department of Trade and Industry of the Philippines, Ms Ma. Cristina A. Roque; and the Deputy Prime Minister and Minister of Commerce of Thailand, Mrs Suphajee Suthumpun, in Manila, the Philippines, before the 10th ASEAN Economic Ministers - Hong Kong, China Consultation cochaired by Hong Kong and the Philippines as the ASEAN Chair this year.

The Protocol mainly incorporates the schedules of reservations into the IA to give effect to Article 3 (National Treatment) and Article 4 (Most-Favoured-Nation Treatment) of the IA. These articles provide that a party shall accord other parties' enterprises and their investments non-discriminatory treatment, except for those measures reserved in the schedules. The signing of the Protocol is set to bring about legal certainty, enhancing the investment environment and creating more investment flows.

A spokesman for the Commerce and Economic Development Bureau said, "ASEAN is Hong Kong's key investment partner and has been our third-largest destination of outward direct investment for four consecutive years, with a stock of $671.2 billion. Our flourishing investment relations have been boosted by the IA which has strengthened Hong Kong's position as an international investment hub.

"We are confident that the signing of the Protocol and its subsequent implementation will drive steady growth in Hong Kong's economic, trade and investment relations with the ASEAN region. We will work side by side with our ASEAN partners to strive for further economic development and investment growth in the region," the spokesman added.

Under the trade in services chapter of the free trade agreement (FTA) between Hong Kong and the 10 ASEAN member states, national treatment is committed for services and services suppliers for specified sectors, including through a commercial presence. Complementing the FTA, the IA will accord enterprises and their investments in non-services sectors national treatment and most-favoured-nation treatment, after reservations incorporated by the Protocol into the IA enter into force.

Apart from non-discriminatory treatment, the IA provides for fair and equitable treatment of investments, physical protection and security of investments, and the assurance of the free transfer of investments and returns. In case of expropriation or investment loss owing to war, armed conflict or a similar event, compensation will be provided according to the agreed standard as specified under the IA.

The text of the Protocol will be uploaded onto the Trade and Industry Department's website after all parties have completed signing the Protocol. Hong Kong and the 10 ASEAN member states will continue to work closely to bring about the early implementation of the Protocol, so that Hong Kong enterprises may reap the benefits as soon as possible.

The 10 ASEAN member states concerned are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. An extension of the FTA and IA to Timor-Leste, the 11th member state of ASEAN, is pending the internal procedures of ASEAN.

The Under Secretary for Commerce and Economic Development, Dr Bernard Chan (left); the Secretary of the Department of Trade and Industry of the Philippines, Ms Ma. Cristina A. Roque (centre); and the Deputy Prime Minister and Minister of Commerce of Thailand, Mrs Suphajee Suthumpun (right), sign the First Protocol to Amend the Investment Agreement between the Association of Southeast Asian Nations (ASEAN) and Hong Kong today (September 20) before the 10th ASEAN Economic Ministers - Hong Kong, China Consultation in Manila, the Philippines. Source: HKSAR Government Press Releases

Hong Kong Customs detects drug trafficking case involving incoming passenger at airport

Hong Kong Customs detected a drug trafficking case involving an incoming air passenger at Hong Kong International Airport today (September 20), and seized a total of about 13 kilograms of suspected ketamine with an estimated market value of about $4.7 million. A man was arrested.

A 22-year-old Japanese male passenger arrived in Hong Kong from Frankfurt, Germany today. During customs clearance, Customs officers found about 13kg of suspected ketamine inside his check-in suitcase. The man was subsequently arrested.

An investigation is ongoing.

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 to 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 detected a drug trafficking case involving an incoming air passenger at Hong Kong International Airport today (September 20), and seized a total of about 13 kilograms of suspected ketamine with an estimated market value of about $4.7 million. A man was arrested. Photo shows the suspected ketamine seized in the case. Source: HKSAR Government Press Releases