Hong Kong and Chile today signed a bilateral Free Trade Agreement, marking a new milestone in furthering trade and investment co-operation between the two economies.
Financial Secretary John Tsang and Chilean President Sebastian Pinera witnessed the signing by Secretary for Commerce & Economic Development Gregory So and Chilean Minister of Foreign Affairs Alfredo Moreno in Vladivostok, Russia.
Speaking at the ceremony, Mr Tsang said Chile is a close and valued trading partner of Hong Kong. The agreement will further strengthen their partnership and serve as a platform to take bilateral economic relations to a new level.
Chile will abolish import tariffs on 88% of its tariff lines for goods originating from Hong Kong, and will phase out tariffs on another 10% over three years.
Hong Kong service providers will enjoy legal certainty in market access and national treatment for a comprehensive range of services in the Chilean market.
Hong Kong investors will also have legal certainty on national treatment in respect of their investments in specified non-service sectors in Chile. To enhance investment flows between the two economies, Hong Kong and Chile agreed to further negotiate a more comprehensive agreement on investment promotion and protection.
The pact also contains provisions to promote competition, facilitate access to each other's government-procurement market, and enhance co-operation in customs procedures and environmental protection. It will provide Hong Kong with better access to the Chilean market, which may potentially serve as a gateway to the Central and South American markets.
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