HK-Peru Free Trade Agreement Takes Effect September 1

Hong Kong and Peru's Free Trade Agreement officially enters into force on September 1, following an announcement by the Trade and Industry Department. Commerce Secretary Algernon Yau highlighted that the agreement covers trade in goods, services, investment, electronic commerce, and related areas, with commitments that exceed those made under the World Trade Organization. Peru will eliminate tariffs on approximately 98.3% of its tariff lines for Hong Kong-origin exports, with the vast majority taking immediate effect. Hong Kong service providers will gain access to over 150 service sectors in Peru, spanning professional services, computer and related services, research and development, financial services, and transport services. This marks Hong Kong's second free trade agreement with a Latin American economy, bringing its total to nine FTAs with 21 economies worldwide.

The FTA with Peru opens significant market access for Hong Kong businesses, providing preferential tariffs and reduced trade barriers that go beyond WTO commitments. With over 150 service sectors opened and national treatment for investors, Hong Kong companies gain a strategic foothold in Peru and can leverage the agreement to explore opportunities across the broader Latin American market. The agreement also strengthens Hong Kong's position as a hub for international trade and investment in the region.