Hong Kong says new free-trade pact with Peru will spur business opportunities

Peruvian leader calls deal ‘new impetus for our companies to access one of the most competitive and dynamic markets in the world’

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Peruvian Minister of Foreign Trade and Tourism Ursula Leon Chempen (second from the left) and Hong Kong commerce chief Algernon Yau (second from right). Photo: Handout

Published: 7:10am, 16 Nov 2024Updated: 12:45am, 17 Nov 2024

Hong Kong has signed a free-trade agreement with Peru, striking a deal the two sides have predicted will spur new business opportunities at a time when the emerging South American market is forging deeper links with the Chinese economy.

Hong Kong Chief Executive John Lee Ka-chiu, who witnessed the signing with Peruvian President Dina Boluarte, said on Friday (local time) the pact offered “significant strategic value” for both economies as it covered an “extensive array of liberalisation and facilitation commitments”.

“Today, we are ready to spur new business opportunities with a free-trade agreement,” Lee said, describing Peru as “an emerging market of enormous potential”.

He is also attending the Asia-Pacific Economic Cooperation (Apec) summit in Lima, and joined Chinese President Xi Jinping at a gala dinner on Friday night. Earlier, Lee held talks with the leaders of Singapore, Malaysia and Vietnam, in which he sought to strengthen ties with Southeast Asian countries.

The pact, signed by Hong Kong commerce chief Algernon Yau Ying-wah and his Peruvian counterpart Ursula Leon Chempen, will initially remove 91.3 per cent of tariff lines for goods originating in the city that are exported to the country. Peru will gradually eliminate another 7 per cent of its tariff lines for such products.

The deal will grant Hong Kong businesses benefits spanning more than 150 sectors in Peru, including the professional services, financial, transport, and research and development industries.