MercoPress. South Atlantic News Agency

Peru signs key FTA with Hong Kong

Peru will become a platform of opportunities for Hong Kong businessmen and investors, Boluarte said

Just one day after the opening of the China-financed megaport in Chancay just a few miles north of Lima, Peru signed a Free Trade Agreement (FTA) with Hong Kong to further deepen its commitment to Pacific Ocean trade. The understanding was achieved in the framework of the Asia-Pacific Economic Cooperation (APEC) Leaders' Summit in the South American country's capital.

Peru's Foreign Trade and Tourism Minister Desilú León her team's efforts given Hong Kong's importance as one of the “four Asian tigers” together with South Korea, Singapore, and Taiwan. Hong Kong is currently the third most important destination for Peru's non-traditional exports to Asia, with products such as blueberries, grapes, avocados, and fishmeal, among others. In 2023, Peru exported US$ 266 million worth of goods to Hong Kong, representing a 1.5% growth from the previous year.

According to Peru's Tourism Ministry, this agreement reinforces the country's commitment to further expanding onto Asian markets, at a time when the continent is experiencing sustained economic growth. It also highlights Asia's significance for Peru's economic future as the country becomes increasingly integrated into global value chains.

The result of negotiations dating back to 2023, the FTA was announced during a ceremony attended by Peruvian President Dina Boluarte and Hong Kong Chief Executive John Lee Ka-Chiu.

Boluarte pointed out that this is “a transcendental milestone” for her country, as it “constitutes a firm and decisive step towards a much deeper and dynamic economic integration with Hong Kong.” The agreement “clearly and forcefully reflects” Peru's commitment “to free trade based on stable and predictable rules,” she added.

This FTA “will facilitate agile trade and benefits” for their markets and that, “in reciprocity, Peru will become a platform of opportunities for Hong Kong businessmen and investors,” Boluarte also said.

In turn, John Lee Ka-Chiu welcomed the signing of the treaty and said that both economies are ready to expand their link “towards new commercial opportunities.” It was the ninth FTA signed by Hong Kong and includes a “commitment to liberalization and facilitation that goes far beyond those assumed in the Free Trade Organization,” According to the Asian dignitary, it also offers “a valuable and strategic approach for both economies.” After this signing, both countries will now be able to start negotiations for an investment protection agreement, the official also explained.

Peru, the world's third-largest copper producer, has trade agreements in force with 14 economies of the Asia-Pacific Economic Cooperation Forum, including China, the United States, Canada, Singapore, Japan, and Korea.