ASEAN and Hong Kong sign FTA

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The 10 member states of the Association of Southeast Asian Nations (ASEAN) and China's Hong Kong Special Administrative Region (HKSAR) signed a free trade agreement and an investment agreement on Saturday on the sidelines of the 31st ASEAN summit in the Philippines.

The ASEAN-Hong Kong Free Trade Agreement (AHKFTA), which is the first FTA to be signed by the ASEAN over the past eight years, together with ASEAN-Hong Kong Investment Agreement (AHKIA) will offer better market access for trade and investment and encourage the already close ties between ASEAN and Hong Kong.

All ASEAN member states are also economies along the Belt and Road and the agreements will extend Hong Kong's trade and investment network to cover all major economies in Southeast Asia, said Edward Yau, secretary for commerce and economic development of the HKSAR government.

"The closer ties forged will enhance Hong Kong's role as a trading and investment hub and cater for our strategy to tap the business opportunities offered by the Belt and Road Initiative," Yau said.

Ramon Lopez, secretary of trade and industry of the Philippines, said the signing of the agreements will expand external economic relations to foster greater trade opportunities for the ASEAN Economic Community.

Lopez also said that the agreements would provide job opportunities for people and enhance collaboration among businesses, particularly small and medium-sized enterprises.

ASEAN has been the second largest merchandise trade partner of Hong Kong in 2016 with 833 billion Hong Kong dollars (106.8 billion US dollars), according to official data.

ASEAN also ranked fourth in service trade partnership with Hong Kong in 2015 with a total trade volume of 15.5 US dollars, official data showed.

As for investment, by the end of 2015, ASEAN ranked sixth among Hong Kong's destinations of outward direct investment with a stock of 27.9 billion US dollars, and sixth among Hong Kong's sources of inward direct investment, with a stock of 71.1 billion US dollars.

The agreements are expected to come into force on January 1, 2019, at the earliest, subject to completion of necessary procedures by Hong Kong and ASEAN members.

(With inputs from Xinhua)