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The Secretary for Commerce and Economic Development, Mrs Rita Lau, representing the Government of the Hong Kong Special Administrative Region, today (May 13) signed two agreements, namely, the Investment Promotion and Protection Agreement (IPPA) and the Economic and Technical Co-operation Agreement (ETCA), with the Kuwaiti Minister of Finance, Mr Mustafa Al Shamali, in Hong Kong.
The agreements will bring mutual benefits to Hong Kong and Kuwait, and further strengthen their trade and economic ties.
Under the IPPA, the two governments undertake to provide fair and equitable treatment of investors, compensation if investments are expropriated, and free transfer abroad of investments and returns. The agreement also provides for the settlement of investment disputes in accordance with internationally accepted rules.
The IPPA provides additional assurance to Kuwaiti investors that their investments in Hong Kong will be adequately protected. It also gives Hong Kong investors similar protection for their investments in Kuwait.
The ETCA promotes further co-operation between Hong Kong and Kuwait through launching projects and exchanges in various fields including economic, financial, commercial, banking, industrial, transportation and communications.
The two agreements will enter into force after the completion of the necessary internal procedures. The IPPA will be effective for an initial period of 20 years, and will remain in force thereafter unless terminated by either party, while the ETCA will remain in force for five years and be renewed every five years thereafter unless terminated by either party.
The IPPA with Kuwait is the 17th IPPA that Hong Kong has signed. Other countries with which Hong Kong has signed a similar agreement are, in chronological order, the Netherlands, Australia, Denmark, Sweden, Switzerland, New Zealand, Italy, France, Germany, Belgo-Luxembourg Economic Union, Austria, Japan, Korea, the United Kingdom, Thailand and Finland.
Ends/Thursday, May 13, 2010
Issued at HKT 17:54
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