Peru and Hong Kong Engage in a Strategic Free Trade Agreement at APEC

Strategic Trade Partnership Strengthened

At the APEC summit, Hong Kong and Peru have taken significant steps by signing a free trade agreement aimed at enhancing their economic cooperation.

Details of the Agreement

• This trade pact covers key sectors including goods, services, and investment.
• Negotiations commenced in January and concluded in July.

Growth Prospects in Bilateral Trade

The agreement is seen as a timely initiative as Peru is the second South American economy to establish a free trade deal with Hong Kong, which follows a similar agreement with Chile.

Expanding Market Opportunities

• Peru ranks as Hong Kong’s fifth-largest trading partner in Latin America, with bilateral merchandise trade reaching HK$5.2 billion (US$668 million).
• Major Peruvian exports include fruit and nuts, while Hong Kong re-exports telecom equipment back to Peru.

Implications of the Chancay Port

Marjorie Yang Mun-tak highlighted the potential of Chancay port in Peru as a strategic entry point into the South American market, thereby enhancing trade flows.

Call for Business Expansion

Yang emphasized the need for businesses to explore underserved markets, especially amid current U.S.-China trade tensions, encouraging a shift in focus.
Edgar Vasquez pointed out Hong Kong’s potential to connect Peru with Asian economies.

Future Outlook

Carolina Hurtado anticipates increased Peruvian exports through this agreement, strengthening ties and leveraging Hong Kong's banking services for investment opportunities.