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| Hong Kong, Chile To Begin FTA Negotiations |
by Mary Swire, Tax-News.com, Hong Kong
Wednesday, December 21, 2011
It has been confirmed that Hong Kong and Chile have agreed to start negotiations
on a comprehensive bilateral free trade agreement (FTA) early in 2012.
A Hong Kong government spokesman said: "An FTA between Hong Kong and Chile
will be instrumental in fostering a closer economic relationship between the
two sides. It is in Hong Kong's interest to negotiate an FTA with Chile to tap
business opportunities and potential in this emerging market, and also the opportunities
it provides as a gateway to the South American region."
Hong Kong and Chile's FTA negotiations will cover the removal or reduction
of tariffs; the liberalization of non-tariff barriers, including technical barriers
to trade, sanitary and phytosanitary measures, anti-dumping, safeguards and
countervailing measures; rules of origin; customs facilitation procedures; the
liberalization of trade in services; and the promotion and protection of investment.
While bilateral trade
between Hong Kong and Chile is said to have been growing steadily, there is
scope for further substantial enhancement.
Trade in goods between the two economies totalled over HKD6bn (USD778m)
in 2010, representing an average annual growth rate of 7.5% when compared with
2004. Bilateral trade in services between Chile and Hong Kong amounted to only
HKD573m in 2009, but this still represented an average annual growth rate of
7.6% when compared with 2003.
To assist in formulating Hong Kong's overall position in the FTA negotiations,
the government has prepared a consultation document. Views and suggestions on
areas to be covered in the FTA are invited from interested parties by January
20, 2012.
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