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Edith Lin

Hong Kong will explore striking a free-trade agreement with more countries in Latin America, the city’s leader has said, revealing a deal newly signed with Peru will take effect in about six months.
Chief Executive John Lee Ka-chiu made the remarks as he began wrapping up his first official visit to South America as the Asia-Pacific Economic Cooperation (Apec) summit drew to a close on Saturday (local time).
A day earlier, Hong Kong signed a free-trade agreement with Peru on the sidelines of the summit.
“The agreement has to go through some legal procedures. I believe it will take half a year, but it will be followed by a variety of opportunities,” Lee said.
“We will consider talks on signing a free-trade agreement with the Pacific Alliance to further explore new growth areas in Latin America.”
The alliance is a regional trade bloc of states that border the Pacific Ocean and comprises Peru, Chile, Colombia and Mexico. Lee noted that alongside the newly signed deal with Peru, the city had a free-trade agreement with Chile.
While Hong Kong had already built up economic and trade ties with South American markets, there was still much more room for growth, he added.
The city’s deal with Peru will remove most tariff lines for Hong Kong-originating goods exported to the South American country. It will also grant Hong Kong businesses benefits that span more than 150 industries, including the professional services and finance sectors.
Peru was Hong Kong’s fifth-largest trading partner in Latin America last year, with bilateral merchandise trade reaching HK$5.2 billion (US$668 million).
The two economies’ bilateral merchandise and services trade grew at an average annual rate of 4 per cent between 2019 and 2023.
Lee said the agreement with Peru would “open new doors”, allowing businesses to launch or expand their bilateral merchandise and service trade operations.
He also anticipated Hong Kong’s business sector would capitalise on opportunities offered under the new deal, noting they could help Peruvian companies look for goods suppliers and offer professional services related to sourcing, quality control and marketing.

Lee said that while Hongkongers and Peruvians spoke different languages, it was “an issue, but not a barrier”.
He said the South American country’s business community was fluent in English and Hong Kong companies had experience working with other overseas economies, such as Japan and countries in the Middle East.
“What is important is, where there are business opportunities, then our entrepreneurs will be able to find good ways to ensure that they will be able to grasp the opportunities and realise the benefits,” he said.
Lee also encouraged the Peruvian government to set up business chambers in Hong Kong to help with communication and to support interested companies.
Hong Kong’s leader also met Peruvian business representatives on Saturday evening (local time), highlighting the freshly signed trade deal and urging them to establish a foothold and invest in the city.
Speaking to the media, Lee stressed that Hong Kong was exploring new markets, such as countries in Central Europe and Africa, while still valuing traditional markets in the United States and Europe.
At an Apec meeting, the chief executive said he hoped to work with other member economies to promote regional economic integration and development.
He also told leaders Hong Kong was applying innovation and technology-based solutions to develop new quality productive forces, such as upgrading methods of industrialisation.
Lee, who is expected to return to the city on Tuesday (Hong Kong time), added that the city would also put forward measures to deepen reform and address public needs.
Some business leaders have predicted the new deal will help local firms and investors tap into Latin America in areas such as innovation and technology, finance, transport, and research and development, in addition to promoting the city’s global footprint.
But Professor Terence Chong Tai-leung, executive director of the Chinese University of Hong Kong’s Lau Chor Tak Institute of Global Economics and Finance, said that while the deal with Peru was unlikely to provide much benefit, it was “better for both sides to have more trading partners”.
“Hong Kong businesses are small and unlikely to move to Latin America, as travel times are too long,” he said.
Noting United States president-elect Donald Trump’s upcoming return to office and the likelihood he would impose harsher tariffs on Chinese goods, Chong said Chinese companies, especially those in the auto industry, could move their productions to Mexico as it was close to the American border, while Latin American countries were too far away.
“But Hong Kong and Latin American trade ties are small, so the real impact of both sides will be small,” he said.
Additional reporting by Wynna Wong


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Hong Kong to explore striking free-trade deal with more Latin American countries: John Lee

Peruvian President Dina Boluarte (left) and Hong Kong leader John Lee shake hands after their administrations signed a free-trade deal. Photo: Handout

This year’s annual Apec summit took place in Lima, Peru. Photo: Xinhua

Hong Kong-Peru free-trade deal will help firms enter Latin America in I&T and more: industry

Peru’s capital, Lima. The new free-trade agreement covers goods and services, as well as investment and other related areas. Photo: Shutterstock

Lawmaker Jeffrey Lam says the government should organise more visits to Peru for business groups. Photo: Edmond So

Can Hongkongers make it big in Peru? The country’s Chinese community, experts weigh in

Lima is currently home to more than 4,000 Chinese restaurants, according to a local business leader. Photo: Edith Lin

Peru is hosting this year’s Asia-Pacific Economic Cooperation summit. Photo: AP

Peru is also one of more than 100 economies involved in Beijing’s Belt and Road Initiative to develop a China-centric trade network. Photo: Reuters

Hong Kong business leaders have said they may organise trips to Peru to learn more about the local business climate. Photo: Shutterstock

News

Hong Kong

City leader also says freshly signed deal with Peru likely to take effect in about six months once legal procedures are sorted


City leader also says freshly signed deal with Peru likely to take effect in about six months once legal procedures are sorted.


Asia-Pacific Economic Cooperation (APEC)

Peru

John Lee

Diplomacy