Hong Kong and Australia announced today the successful conclusion of negotiations on a free trade agreement and an investment agreement after reaching a consensus on both.

Secretary for Commerce & Economic Development Edward Yau today met Australian Minister for Trade, Tourism & Investment Simon Birmingham, who is also attending the 30th APEC Ministerial Meeting in Port Moresby, Papua New Guinea to discuss the two agreements between Hong Kong and Australia.

After the meeting, they signed the Declaration of Intent to signify the successful conclusion of the negotiations.

Mr Yau said Hong Kong and Australia are two like-minded economies in pursuit of free trade, adding Australia is also a very important Hong Kong trading partner.

He said Hong Kong has set clear objectives in launching the free trade agreement negotiations to achieve zero tariffs for Hong Kong products to the Australian market, and to secure Australia's best free trade agreement commitments for Hong Kong services.

“Our objectives are largely met with the successful conclusion of the negotiation of the very comprehensive free trade agreement and investment agreement today, thereby bringing our bilateral trade and investment relationship with Australia to a new height," Mr Yau said.

He added, the two agreements encompass trade in goods, trade in services, investment and other related areas, providing Hong Kong with legal certainty and better access to the Australian market.

The agreements also create business opportunities and further enhance trade and investment flows between the two places, Mr Yau said, adding Hong Kong's economy stands to benefit from the two agreements.

Hong Kong and Australia expect to sign both agreements in the first half of 2019, after completion of the respective internal procedures.

Mr Yau said: "To help Hong Kong enterprises and investors expand their markets, further reinforce Hong Kong's status as an international trade and investment hub and establish our worldwide network of economic and trade connections, we have been actively seeking to negotiate and forge free trade agreements and investment agreements with economies that have strong economic and trade connections with Hong Kong, markets with development potential or at strategic locations, as well as like-minded trading partners."

In the past 12 months, the current term Government has signed three free trade agreements with 12 economies. It has also concluded negotiations for a free trade agreement with the Maldives.

The free trade deals with Australia and the Maldives will bring the total number of such agreements Hong Kong has signed to nine, more than double the number signed prior to the current term.