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Peru and Hong Kong begin the first round of trade negotiations for the signing of an FTA

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Fresh Plaza | 6 February

Peru and Hong Kong begin the first round of trade negotiations for the signing of an FTA

The Minister of Foreign Trade and Tourism, Luis Fernando Helguero, announced that Peru and Hong Kong began the first round of negotiations for a Free Trade Agreement (FTA).

The first round was held online for some groups, from January 30 to Friday, February 3, while other groups will meet in person during the week of February 6 to 10, in Hong Kong.

This round includes thirteen negotiating tables that will focus on issues related to market access, rules of origin, sanitary and phytosanitary measures, trade in services, electronic commerce, investment, cooperation, trade facilitation, and temporary entry of business people, among others.

“The negotiation of an FTA with Hong Kong and its future signing will allow us to export our products to that destination with no tariffs, which would give Peruvian exporters more certainty, predictability, and advantages. Hong Kong is the third-biggest destination for our non-traditional exports in Asia, so this FTA will provide a further boost to our shipments,” the minister stated.

Reaching an FTA with Hong Kong is one more step in Peru’s strategy to consolidate its position in the Asia Pacific region, achieving a greater opening of markets, expanding tariff benefits for Peruvian companies, especially MSMEs, and strengthening the image of the country to better attract investments, he added.

Bilateral trade between Peru and Hong Kong
Over the past 5 years, bilateral trade between Peru and Hong Kong has resulted in a positive trade balance for Peruvian exports. In 2022, Peruvian exports to that market amounted to 262 million dollars.

Meanwhile, imports amounted to 25 million dollars. Capital goods imports increased by 93% over the previous year, and products such as cash registers, machinery parts, and sowing machines, among others, stood out.

It’s worth noting that, in 2022, Hong Kong was the third-biggest destination for Peru’s non-traditional exports in Asia.

That year, shipments of non-traditional products accounted for 90% of all Peruvian exports to Hong Kong, amounting to $235 million. The agro-industrial sector stood out with shipments of grapes, blueberries, avocados, tangerines, pecans, pomegranates, figs, and tangelos.

 source: Fresh Plaza