We welcome the entry into force of the Hong Kong-Australia Free Trade Agreement (A-HKFTA)
We welcome the entry into force of the Free Trade Agreement between Hong Kong and Australia (the A-HKFTA).
(Melbourne, Australia – 17 January, 2020): Asialink Business, Australia’s National Centre for Asia Capability, welcomes the entry into force today of the Australia-Hong Kong Free Trade Agreement (A-HKFTA).
The entry of the historic trade deal marks a new chapter in Australia’s close ties with Hong Kong and our already substantial trade and investment relationship. This follows the formal conculsion of negotiations on the A-HKFTA in November 2018.
Hong Kong is already a top destination for Australian businesses, due to its strategic location as the gateway to China and North Asian markets. The new agreement will provide further opportunities to strengthen Australia and Hong Kong’s already significant trade and investment ties. Australian farmers, seafood producers and winemakers are expected to benefit from the new agreement.
The agreement guarantees certainty of access for Australian suppliers of education, professional, financial, transport, construction, tourism and recreational services – representing the best commitments Hong Kong has ever offered to an FTA partner. Modern trading rules on e-commerce, financial services, telecommunications, and intellectual property will also provide regulatory certainty for Australian businesses and the confidence to make long-term investment decisions.
Asialink Business CEO, Mukund Narayanamurti, says the Australia-Hong Kong FTA has potential to deliver strong benefits to businesses keen to take advantage of growing markets within the wider region, as well as reach Hong Kong’s affluent population.
“The Australia-Hong Kong FTA will support Australia’s relationship with one of our strongest trade partners and complement our existing FTA with China. Hong Kong is an established international gateway, and this trade agreement will help Australian businesses go global and launch into other markets in Asia and beyond,” he says.
In 2018-19, Hong Kong was Australia's tenth most important destination for merchandise exports ($8 billion) and seventh-largest services export market ($3 billion). Hong Kong was our fifth largest source of total foreign investment, with a stock of $118.8 billion at the end of 2018. Hong Kong was our eleventh largest destination for total Australian investment, with a stock of $52 billion at the end of 2018.
To realise the benefits of the new agreement, many Australian organisations will need to develop a deeper understanding of Hong Kong’s diverse market and business culture, along with the skills and capabilities needed to develop effective partnerships.
Asialink Business has developed a practical and comprehensive guide, the Hong Kong Country Starter Pack to help businesses in all sectors enter and grow in the Hong Kong market. This complements a range of business case studies highlighting the opportunities, challenges and solutions for doing business in the region.