DFAT announces Australia-Hong Kong FTA now in force
(14 January 2020 - Australia) The Australian Government Department of Foreign Affairs and Trade (DFAT) has announced the Australia-Hong Kong Free Trade Agreement (A-HKFTA) has now entered into force as of 17 January 2020.
The free trade agreement draws economic relations closer between Australia and Hong Kong by providing Australian importers and exporters greater certainty to trade and investment activities in Hong Kong. It also reaffirms the importance Australia places on the high degree of autonomy enjoyed by Hong Kong through the "One Country, Two Systems" framework, noting the ongoing unrest and protesting taking place in the city, disrupting local businesses and tourism in addition to the devastating impact ongoing bushfires have had on the Australian economy since October 2019.
Hong Kong is Australia's tenth most important destination for merchandise exports (A$8 billion) and seventh-largest services export market (A$3 billion). The A-HKFTA strengthens Australia's relations with one of its most significant trade and investment partners. The A-HKFTA will provide increased certainty for Australian service providers and investors. The move solidifies continued access to the Hong Kong Market for Australian exporters across key industry verticals including education, financial and professional services. The agreement also ensures Hong Kong will not apply tariffs to Australian exports in future.
"From today Australian farmers and businesses will have guaranteed duty-free access for their exports to Hong Kong. Service suppliers will also receive guaranteed market access and conditions for two-way investment will be better than ever, providing certainty and confidence for Australian investors. Hong Kong is our fifth largest source of investment, and a platform market to showcase our premium goods and services to the broader Asian market” stated Australian Minister for Trade, Tourism and Investment, Simon Birmingham.
“Expanding trade opportunities for Australian exporters is a priority for our Government and key to giving Australia a competitive edge. Securing comprehensive agreements that deliver wide-ranging benefits is a key pillar to our economic plan and builds upon successes that have already delivered record levels of exports and a record trade surplus for Australia. Our Government’s record speaks for itself by delivering agreements that open new markets for Australian exporters, reinforce certainty for Australian businesses and create more jobs” he added.
Click here to access the DFAT guide to using the A-HKFTA to export or import
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