Free Trade Agreement between Hong Kong and Peru to enter into force on September 1
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The Secretary for Commerce and Economic Development, Mr Algernon Yau, said, "Peru is an important trading partner of Hong Kong in Latin America. The FTA encompasses trade in goods, trade in services, investment, electronic commerce, and other related areas. The overall commitments in the FTA go beyond those undertaken by the two economies respectively under the World Trade Organization, which will enhance bilateral trade and investment.
"This is Hong Kong's second free trade agreement forged with a Latin American economy, fully demonstrating Hong Kong's commitment to forging closer economic partnerships with trading partners in the Latin American region. The FTA will provide a favourable platform for Hong Kong's traders and investors to expand their business in Peru and explore business opportunities in other Latin American markets through Peru," he added.
On trade in goods, Peru will eliminate tariffs on approximately 98.3 per cent of its tariff lines for Hong Kong-origin exports to Peru, among which tariff elimination concerning 91.3 per cent of the tariff lines will take immediate effect upon the entry into force of the FTA, while tariffs on the remaining 7 per cent of tariff lines will be phased out gradually. The competitiveness of Hong Kong products exported to Peru will be enhanced. Apart from preferential tariffs, the trade can also benefit from trade facilitation measures and reduction of trade barriers.
On trade in services, Hong Kong service providers will enjoy benefits in over 150 services sectors in which Peru has made specific commitments under the FTA. These commitments cover sectors where Hong Kong has traditional strengths or has potential for development, including professional services, computer and related services, research and development services, financial services, and transport services.
As regards investment, Peru will accord Hong Kong investors national treatment as specified in the FTA. To further enhance investment flows between Hong Kong and Peru, negotiation of an Investment Promotion and Protection Agreement (IPPA) has been concluded between the two places. The IPPA will be signed after the completion of respective necessary internal procedures.
"We will continue to actively forge FTAs and IPPAs with more trading partners to expand economic and trade networks, with a view to consolidating and enhancing Hong Kong's status as an international trade centre and investment hub, and playing its role as a 'super connector' and 'super value-adder'," Mr Yau added.
Details of the FTA, including its full text, are available on the Trade and Industry Department (TID)'s website (www.tid.gov.hk/en/our_work/trade_and_investment_agreements/ftas/peru.html). TID has also issued trade circulars to inform the trade of the relevant preferential rules of origin and related requirements, which can be accessed at www.tid.gov.hk/en/tradecircular/detail.html?categoryId=72.
Including the FTA with Peru, Hong Kong has so far signed nine FTAs with 21 economies, namely the Chinese Mainland, New Zealand, the member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, the 10 member states of the Association of Southeast Asian Nations (i.e. Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam), Georgia, Australia and Peru.
Ends/Tuesday, August 25, 2026
Issued at HKT 15:52
Issued at HKT 15:52
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