Hong Kong signs ASEAN protocol on equal treatment for investments

The amendment adds reservation schedules for national and most-favoured-nation treatment. 

Hong Kong and the Association of Southeast Asian Nations (ASEAN) have signed a protocol that will give the city’s enterprises non-discriminatory treatment for investments across 10 member states.

The First Protocol to Amend the ASEAN-Hong Kong Investment Agreement was signed in Manila by Commerce and Economic Development Under Secretary Bernard Chan and representatives of the Philippines and Thailand.

The protocol incorporates schedules of reservations into the investment agreement, giving effect to provisions on national treatment and most-favoured-nation treatment.

Under these provisions, Hong Kong enterprises will generally receive the same treatment as local and other foreign investors, except in areas specifically excluded by individual parties.

The investment agreement covers non-services sectors. It complements the existing ASEAN-Hong Kong free trade agreement, which includes national-treatment commitments for specified services sectors.

It also provides for fair and equitable treatment of investments, physical protection and security, and the free transfer of investments and returns. 

Compensation provisions apply in cases including expropriation or investment losses arising from war or armed conflict.

The 10 ASEAN parties covered are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

An extension of the free trade and investment agreements to Timor-Leste, the 11th member, is also being processed pending ASEAN’s internal procedures.