President Dina Boluarte's Government and the Hong Kong Special Administrative Region on Friday signed a Free Trade Agreement (FTA), which will significantly strengthen trade relations with this important Asian partner.
"After a great work by the negotiating teams from both sides, this agreement consolidates our relationship with Hong Kong; it clearly and strongly reflects our commitment to free trade, based on stable and predictable rules, and always aimed at development," Mrs. Boluarte emphasized.
The top official affirmed that the FTA with Hong Kong reinforces Peru's role as a reliable partner committed to inclusive and sustainable economic growth.
"The agreement will contribute to consolidating Peru's presence in the Asia-Pacific region, and will provide multiple opportunities for Peruvian exporters of goods and services," she underlined.
Mrs. Boluarte reported that in 2023, Peruvian exports to Hong Kong reached US$ 266 million, a rise of almost 1.5% from 2022, mainly due to the export of blueberries, grapes, fishmeal, zinc, copper, and garments.
"The agreement will further boost these numbers; in reciprocity, Peru will become a platform of opportunities for Hong Kong investors and entrepreneurs, offering them a market with a stable economy and institutional solidity, guaranteeing a strategic base for their operations and expansion in Latin America," she remarked.
The Head of State
noted that projects, such as the Chancay Port, the new Jorge Chavez International Airport, and a regulatory framework without restrictions for cabotage, establish Peru as the natural connection point for Hong Kong with Latin America.
"This agreement also complements the important Belt and Road Initiative, which aims to strengthen global connectivity, and to which our country adhered in 2019. From Peru, we have great interest in continuing to participate in this initiative, which will allow us to better leverage the integration we are achieving with the FTA we are signing today," she pointed out.
Trade Agreement Benefits
The chapters negotiated in the trade agreement include commitments on cross-border trade in services, which will allow Peruvian companies to export services to Hong Kong without being required to have a presence in that economy.
This benefits sectors such as design, business services, applications, among others.
Likewise, the provisions on financial services guarantee a stable and unrestricted framework, encouraging Hong Kong capital companies, such as banks or insurance firms, to invest in Peru.
Regarding the export of goods, Hong Kong commits to indefinitely applying zero tariffs for exports of Peruvian origin. This provides economic operators with certainty, predictability, and an advantage when exporting to that destination.
It is worth noting that 92% of total exports to Hong Kong are non-traditional ones, especially in the agricultural sector, with products such as grapes, blueberries, and avocados.
Therefore, this agreement represents an excellent opportunity to diversify and expand Peru's exportable supply to this Asian market.
(END) NDP/MBC/MVB