Hong Kong and Peru sign free trade agreement

It will take effect once both parties complete their internal procedures.

Hong Kong and Peru signed a Free Trade Agreement (FTA) at the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Lima on 15 November.

The agreement was signed by Hong Kong's Chief Executive John Lee and Peruvian President Dina Boluarte, with the respective trade ministers, Algernon Yau of Hong Kong and Úrsula Desilú León Chempén of Peru, in attendance.

The FTA covers trade in goods and services, investment, and related areas. It goes beyond World Trade Organisation commitments, providing Hong Kong with reduced tariffs and trade barriers, and offering service providers and investors better market access and legal certainty in Peru.

The agreement will take effect once both parties complete their internal procedures.

Lee called Peru a key trading partner in Latin America and noted that the FTA is strategically important, marking the first signed by the current Hong Kong government. He highlighted that the agreement would open Peru’s market to Hong Kong and enhance bilateral trade and investment.

Yau added that the FTA, Hong Kong’s second with a Latin American country, would build on the agreement with Chile.

The FTA provides Hong Kong service providers access to over 150 sectors in Peru, including professional, financial, and transport services. It also includes provisions for eliminating tariffs on 98.3% of tariff lines for Hong Kong goods, with most reductions effective immediately.

Additionally, Hong Kong's Dedicated Fund on Branding, Upgrading & Domestic Sales will now support Hong Kong businesses in Peru, further strengthening economic cooperation.