Australia is a valuable trading partner of Hong Kong. It was our 7th largest services trading partner in 2018, with total services trade between the two sides of HK$47 billion and our 20th largest goods trading partner in 2019, with total goods trade of HK$50 billion. This free trade agreement opens a new chapter in the economic relationship between Australia and Hong Kong. The trade deal gives Australian companies more security for trade and investment activities in Hong Kong. It also reaffirms the value Australia attaches to the high level of autonomy enjoyed by Hong Kong through the „one country, two systems“ framework. The agreement ensures secure access to Australian providers of educational, vocational, financial, transport, construction, tourism and leisure services – these are the best commitments Hong Kong has ever offered to an FTA partner. Modern trade rules for e-commerce, financial services, telecommunications and intellectual property will also provide regulatory certainty for Australian businesses and the confidence to make long-term investment decisions. The agreements are broad in scope and the obligations they contain are of high quality and include trade in goods, trade in services, investment, government procurement, intellectual property, competition, the dispute settlement mechanism and other related areas. They will provide traders and investors in Hong Kong with legal certainty and cheaper access to the Australian market, create more business opportunities and improve trade and investment flows between Hong Kong and Australia. Mukund Narayanamurti, CEO of Asialink Business, says the Australia-Hong Kong Free Trade Agreement has the potential to offer strong benefits to companies looking to capitalize on the region`s growing markets and reach Hong Kong`s affluent population. „The Australia-Hong Kong Free Trade Agreement will support Australia`s relationship with one of our strongest trading partners and complement our existing free trade agreement with China.
Hong Kong is an established international gateway, and this trade deal will help Australian companies go global and enter other markets in Asia and beyond,“ he said. In 2018-2019, Hong Kong was Australia`s tenth largest destination for goods exports ($8 billion) and seventh largest services export market ($3 billion). Hong Kong was our fifth largest source of total foreign investment, with a stock of $118.8 billion at the end of 2018. Hong Kong was our eleventh largest target for total Australian investment, with a portfolio of $52 billion at the end of 2018. Hong Kong is already a destination of choice for Australian businesses due to its strategic location as a gateway to China and North Asian markets. The new agreement will provide new opportunities to strengthen Australia`s already important trade and investment ties between Australia and Hong Kong. Australian farmers, fish producers and winegrowers should benefit from the new agreement. To reap the benefits of the new agreement, many Australian organisations need to develop a deeper understanding of Hong Kong`s diverse market and corporate culture, as well as the skills and capabilities needed to develop effective partnerships. Free trade agreements provide a mechanism to facilitate trade in goods. Each agreement contains information and links to relevant legislation, policies and opinions on rules of origin and access to preferential tariffs.
2 Technical barriers to trade include technical regulations, standards and conformity assessment procedures that may have a direct or indirect impact on trade in goods. Australia has trade initiatives or trade agreements with the countries or groups of countries listed in the table below. 1 Australia announced on 29 March 2020 temporary changes to its foreign investment screening framework by lowering the screening threshold for all foreign investment to A$0 with immediate effect. This is a temporary measure to protect its national interests and will remain in place for the duration of the COVID-19 pandemic. Please click here for more information. .
