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Hong Kong’s Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN)

A gist of the blog:

Not long ago Hong Kong signed a Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN). It is also the sixth FTA that Hong Kong entered into. While not all of us know the ASEAN nations very well, Hong Kong and ASEAN have a close trade and economic relationship and ASEAN was Hong Kong's second largest trading partner in merchandise trade in 2016, with total merchandise trade amounting to over $830 billion. The tariffs involved in Hong Kong’s exports to ASEAN amounted to about $570 million last year.

According to the FTA, ASEAN member states will progressively reduce their customs duties on goods originating from Hong Kong, making our exports more competitive. Given the positive outlook of economies in the region, I believe that Hong Kong’s export to the ASEAN markets will grow substantially. Apart from seeking to reduce the exporting cost for Hong Kong business, we are also pursuing, through Comprehensive Double Taxation Agreements signed with other jurisdictions, to alleviate the tax burden of local companies investing overseas, as well as that of the Mainland or foreign enterprises using Hong Kong as a platform in investing in other places.

November 19, 2017