The Australia and Hong Kong Free Trade Agreement (FTA) was signed on March 26, 2019, and came into effect on January 17, 2020. It is a comprehensive agreement aimed at fostering trade and investment between the two nations.
Historically, Australia and Hong Kong have had a strong trading relationship. Hong Kong is Australia`s ninth-largest trading partner, with exports to Hong Kong valued at over $12 billion in 2018. The FTA builds on this relationship by eliminating tariffs on a wide range of goods and services and simplifying customs procedures, making it easier for businesses to trade between the two nations.
The FTA covers a range of sectors, including agriculture, manufacturing, and services. Under the agreement, 99% of Australian goods exports to Hong Kong will be duty-free. This is a significant advantage for Australian businesses and will make their products more competitive in the Hong Kong market. The agreement also includes provisions for the protection of intellectual property, which is crucial for businesses in sectors like pharmaceuticals and technology.
In addition to the elimination of tariffs, the FTA also includes provisions for the liberalization of services trade. This means that Australian businesses will have increased access to the Hong Kong market, particularly in areas such as financial services, education, and telecommunications. The agreement also includes measures to protect the cross-border flow of data, which is increasingly important in the digital economy.
Overall, the Australia and Hong Kong Free Trade Agreement is a significant milestone in the relationship between these two nations. It provides a framework for increased trade and investment between Australia and Hong Kong, creating new opportunities for Australian businesses in one of Asia`s most dynamic economies. The agreement also strengthens the ties between the two nations, demonstrating a commitment to open and free trade in the region.
