Hong Kong-Peru trade deal scrapping tariffs on 98% of goods to enter into force

Import duties on 91.3% of tariff lines will be removed from 1 September. 

Hong Kong’s free trade agreement (FTA) with Peru will take effect on 1 September, eliminating tariffs on about 98.3% of tariff lines covering the city’s exports.

Import duties on 91.3% of tariff lines will be removed immediately when the FTA enters into force, whilst duties on the remaining 7% will be phased out, according to the Trade and Industry Department.

The agreement also covers trade in services, investment, electronic commerce, and trade facilitation measures.

Service providers will gain access to more than 150 sectors in which Peru has made specific commitments, including professional services, computer and related services, research and development, financial services, and transport.

Peru will also accord Hong Kong investors national treatment in areas specified under the FTA.

Separately, the two parties are expected to sign an Investment Promotion and Protection Agreement once their respective internal procedures are completed.

Secretary for Commerce and Economic Development Algernon Yau said the agreement would provide traders and investors with a platform to expand in Peru and explore opportunities in other Latin American markets.

The agreement is the city’s second FTA with a Latin American economy. Hong Kong has signed nine FTAs covering 21 economies to date.