Hong Kong-Mexico investment pact to take effect on 16 June

The agreement ensures fair, equitable and non-discriminatory treatment of investments.

The investment agreement between Hong Kong and Mexico, intended to boost confidence and expand investment flow, will take effect on 16 June.

The Investment Promotion and Protection Agreement (IPPA) also further strengthens bilateral economic and trade ties between the two territories.

“The 14th Five-Year Plan supports Hong Kong to foster co-operation and exchanges with countries and regions around the world,” Secretary for Commerce and Economic Development Edward Yau said.

Yau added the Hong Kong government has been banking on its advantage under the Basic Law and “one country, two systems,” in entering bilateral agreements with other economies.

Under the agreement, Hong Kong and Mexico are expected to provide investors with fair, equitable and non-discriminatory treatment of investments, and compensation in cases of expropriation.

Each side will also have the right to free transfers abroad of investments and returns. The agreement also provided mechanisms for the settlement of disputes, including arbitration.

The IPPA with Mexico is the fourth time the Hong Kong government entered into such an agreement during this term.

The first three were signed in coordination with the member states of the Association of Southeast Asian Nations (ASEAN), Australia and the United Arab Emirates (UAE).

This raised the number of Hong Kong’s IPPA to 22, covering 31 foreign economies.

This includes Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Korea, Kuwait, Luxembourg, Mexico, the Netherlands, New Zealand, Sweden, Switzerland, and the UK.