9-1-2024 (HONG KONG) In a move aimed at fortifying economic ties, Mr Algernon Yau, the Secretary for Commerce and Economic Development, inked the First Protocol to Amend the Free Trade Agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and Hong Kong on January 9. This significant protocol seeks to update the Product Specific Rules (PSR) of origin under the FTA, broadening the coverage from over 200 to nearly 600 product categories.
The amended agreement facilitates Hong Kong businesses in acquiring Hong Kong-originating status for an expanded range of specified products, thus enabling them to benefit from preferential tariff treatment when entering the thriving ASEAN market.
Various product categories, including jewellery, medicaments, food products, and textile products, have been incorporated into the FTA through this protocol. By signing the Protocol, Hong Kong aims to boost the competitiveness of these products, stimulate trade flows, and create additional business opportunities in the dynamic ASEAN market.
Speaking about the initiative, Mr Yau highlighted the pivotal role of ASEAN as Hong Kong’s second-largest trading partner in merchandise trade. The total trade volume reached approximately $1,294 billion in 2022, showcasing an impressive growth of over 38% since the FTA’s signing in 2017. Emphasizing Hong Kong’s commitment to free trade, Mr Yau expressed confidence that the Protocol’s implementation would further enhance economic and trade relations with ASEAN member states. He underlined Hong Kong’s dedication to collaborative efforts for the continued liberalization of trade in the region.
