ASEAN, HK sign free trade, investment deals

THE Association of Southeast Asian Nations (ASEAN) and Hong Kong on Sunday signed a free trade agreement (FTA), enhancing the Special Administrative Region’s position as a source of investment to the region and vice versa.

Trade Secretary Ramon M. Lopez in his speech at the Manila Marriott Hotel on Sunday said that the FTA was based on discussions initiated in 2014.

ASEAN also signed an investment agreement with Hong Kong.

“Through these two agreements I am confident that ASEAN and Hong Kong-China (HKC) can unlock together the tremendous potential of regional economic integration and foster a more open-opportunities environment for our people and the generations to come,” he added.

The ASEAN-Hong Kong FTA is the region’s sixth free trade agreement, with Hong Kong being ASEAN’s sixth-largest trading partner. ASEAN has active FTAs with China, South Korea, Japan, India, Australia, and New Zealand.

“As such, a strategic partnership between ASEAN and HKC will surely usher in greater synergies and more job opportunities for people and businesses in the region, particularly in the MSMEs in the region,” Mr. Lopez said, referring to micro-, smalland medium-sized enterprises.

Mr. Lopez’s counterpart, Hong Kong Secretary for Commerce and Economic Development Edward Yau Tang-wah said that the FTA also covers collaboration in education, information technology, and other professional services and businesses.

“The trade agreement also has a chapter in economic and technical cooperation which aims to enhance the benefit of the agreement with capacity building and technical assistance. With these agreements in place I encourage and expect to see more ASEAN enterprises to trade and invest with Hong Kong,” he added.

According to the Department of Trade and Industry, Hong Kong in the first eight months of 2017 accounted for $5.55 billion worth of Philippine exports, or 13.18% of the total.

Hong Kong was the Philippines’ 12th largest source of approved investments in the first half with $10.74 million. ASEAN-wide, Hong Kong provided $9.6 billion in foreign direct investment in 2016.

“In the face of protectionist sentiments across the world, these two agreements are in fact a loud and clear vote that all of us here prefer free and open trade,” Mr. Yau said.

In an earlier speech during the opening of the ASEAN Economic Minister’s meeting, Mr. Lopez said that the bloc has sought to expand its dealings with nonASEAN partners.

“These include upgrading and enhancing our existing FTAs, intensifying our efforts to complete ongoing FTA negotiations, considering new FTA partnerships and strengthening our economic cooperation mechanisms,” Mr. Lopez added.

Mr. Lopez said economic ministers will be discussing outstanding issues in other FTA negotiations such as amendments to the ASEAN-Japan comprehensive economic partnership agreements and the Regional Cooperation for Economic Partnership. —