The negotiated chapters include commitments on cross-border trade in services, under which Peruvian companies will be able to export services to Hong Kong without being required to have a presence in that economy.
The Government of Peru and the Hong Kong Special Administrative Region signed a Free Trade Agreement in Lima, which will strengthen trade relations with this important Asian partner by establishing free trade based on stable and predictable rules.
The ceremony was chaired by the President of Peru, Dina Boluarte, and the Chief Executive of Hong Kong, John Lee Ka-chiu. This agreement was signed by the Minister of Foreign Trade and Tourism, Desilú León, and the Secretary of Commerce and Economic Development of Hong Kong, Algernon Yau.
The agreement will contribute to the consolidation of Peru's presence in the Asia Pacific region and will provide multiple opportunities for Peruvian exporters of goods and services.
“In terms of services, this agreement creates opportunities for Peruvian small and medium-sized businesses, which will be able to enter the Hong Kong market by providing services via the Internet, in areas such as software development, mobile applications, audiovisual productions, consulting, among others,” said Minister Desilú León.
He added that this agreement will create a series of opportunities for the Peruvian business sector to establish itself in Hong Kong or to partner with Hong Kong companies and do business with the Greater Bay Area in China, which includes Hong Kong, Macau and Guangdong.
BENEFITS OF THE TRADE AGREEMENT
Among the negotiated chapters in the trade agreement are commitments on cross-border trade in services, through which Peruvian companies will be able to export services to Hong Kong without being required to have a presence in that economy. This benefits areas such as design, business services, applications, among others.
The provisions on financial services also ensure a stable and unrestricted framework, encouraging Hong Kong-owned companies, such as banks and insurance companies, to invest in Peru.
As regards the export of goods, Hong Kong is committed to applying indefinitely zero tariffs for exports of Peruvian origin. In this way, economic operators will have certainty, predictability and an advantage when exporting to that destination.
The head of the sector highlighted that 92% of total exports to Hong Kong are non-traditional exports, especially from the agricultural sector, with products such as grapes, blueberries and avocados. For this reason, this agreement represents an excellent opportunity to diversify and expand our export offering to this Asian market.
Finally, the minister emphasized that the signing of this FTA, together with the modernization of the FTA with China and the inauguration of the Port of Chancay, position Peru as a natural connection point with all of China for conducting business.
