Peru and Hong Kong announce substantial conclusion of negotiations for trade agreement

Photo: Ministry of Foreign Trade and Tourism of Peru

Photo: Ministry of Foreign Trade and Tourism of Peru

09:45 | Arequipa (Arequipa region), May. 17.

The Ministry of Foreign Trade and Tourism (Mincetur) announced that Peru and Hong Kong have reached the substantial conclusion of negotiations for a trade deal, which brings both countries closer to signing this free trade agreement (FTA).

“We are pleased to be able to announce this progress within the framework of the APEC Trade Ministers' Meetings. After 15 months of hard work by our teams, we can say that we have reached an agreement on the substantial elements of what will become a modern and ambitious FTA; it will boost trade in goods, services, and investments between Peru and Hong Kong," Minister Galdo highlighted on Thursday.

In turn, the Hong Kong Secretary indicated that the FTA will be very beneficial for both parties. Similarly, the official appreciated the work by both delegations to reach this substantial conclusion. He noted that Hong Kong offers many opportunities for Peruvian companies, adding that it is a gateway to Asia.

A substantial conclusion of the negotiation implies that both parties have reached consensus on the most complex issues of the negotiation and only minor technical issues remain pending.

This trade agreement includes 14 chapters, with topics related to market access, rules of origin, sanitary and phytosanitary measures, trade in services, electronic commerce, investment, cooperation, trade facilitation, temporary entry of business people, among others.

Bilateral trade

Mincetur indicated that in 2023 Hong Kong became the third-largest destination for Peru's non-traditional exports to Asia.

During the past five years, bilateral trade between Peru and Hong Kong has resulted in a positive trade balance for Peruvian exports.

Last year, Peruvian shipments to Hong Kong reached US$266 million —an increase of almost 1.5% compared to 2022.

Among the main Peruvian products exported to Hong Kong are blueberries, grapes, avocados, fish meal, sea urchins, zinc, copper, and garments.

It should be noted that 92% of the goods exported to Hong Kong that year were non-traditional products.

Regarding imports, US$26 million was reached due to an increase in capital goods.


Published: 5/17/2024