Hong Kong-Peru deal tests lasting trade gains

Tariff cuts could lift exports and re-exports, but lasting gains will depend on market access, customs compliance, and repeatable supply chains.

Hong Kong businesses could gain from lower tariffs under the Peru free trade agreement, but companies will still need distribution networks, customs readiness, and viable supply chains to translate the deal into sustained trade.

Yilun Tian, Lead Consultant for Greater China at Maersk Global Trade and Customs Consulting, said early beneficiaries could include plastics and materials, jewellery, and luxury goods, and food products where Hong Kong already has an established trade base.

Additional opportunities could emerge in selected textiles and apparel, machinery, home appliances, and electrical equipment where tariff reductions create more meaningful savings.

Lower duties alone, however, will not determine trade volumes. Tian said companies must understand local demand, secure customers and distribution channels, and comply with rules of origin and customs requirements.

The agreement also covers customs and trade facilitation, technical barriers, services, financial services, and temporary entry for businesspeople.

“Whilst lower tariffs can make trade more commercially attractive, broader market access and trade facilitation provisions of the FTA can make that trade easier to execute,” Tian said.

Hong Kong could also strengthen its role as a gateway between Greater China and Latin America. Tian noted that Hong Kong exports to Peru doubled from 2024 to 2025, whilst re-exports are substantially larger than direct exports.

He expects stronger trade and re-export activity after implementation, though the scale and timing will depend on how quickly businesses adjust sourcing, sales, and logistics strategies.

Tian cautioned against judging the agreement after only one year. Companies may need two to five years or longer to understand tariff eligibility, origin rules, customs procedures, and transportation economics.

The longer-term test will therefore be whether businesses repeatedly use the agreement and convert tariff and trade-facilitation benefits into durable supply-chain advantages rather than a short-lived rise in activity.