Hong Kong, Australia Sign Free Trade Agreement

Hong Kong companies will soon be able to enjoy free market access and preferential treatment covering some 140 services sectors in Australia after the SAR signed a free trade agreement with Canberra on Tuesday.

Under the trade deal which will come into effect at a later date, Hong Kong-originating goods will be able to enter Australia totally tariff-free and via simplified procedures, saving HK$16 million in tariffs every year.

Australia has also committed to liberalising a full range of its arbitration, conciliation and mediation services and certain rail transport services, something the country has never previously offered its trading partners, except New Zealand.

Hong Kong investors will be able enjoy more favourable access to the Australian market as the monetary thresholds for investment screening have been raised.

Speaking shortly after a signing ceremony in Sydney, Hong Kong's Secretary for Commerce and Economic Development, Edward Yau, said the deal was "modern" and of a high-standard.

Australia was Hong Kong's seventh largest services trading partner in 2017, with the total services trade between the two sides amounting to HK$44 billion.

It was Hong Kong's 20th largest merchandise trading partner in 2018, and the total merchandise trade was about HK$54 billion.

As at the end of 2017, Australia ranked eighth among Hong Kong's destinations of outward direct investment, with a stock of HK$134 billion, and it ranked 17th among Hong Kong's sources of inward direct investment, with a stock of HK$33 billion.