Hong Kong and Australia commenced negotiations of a Free Trade Agreement (FTA) and an Investment Agreement in 2017, concluding them both in late 2018, and the two Agreements were signed on 26 March 2019. The Agreements are comprehensive and the commitments made are of high quality, encompassing trade in goods, trade in services, investment, government procurement, intellectual property, competition, dispute settlement mechanism and other related areas.
They will provide Hong Kong traders and investors with legal certainty and more favourable access to the Australian market, while creating more business opportunities and enhancing trade and investment flows between Hong Kong and Australia.
Hong Kong was Australia’s 7th largest services trading partner in 2017, with total services trade between the two sides amounting to HK$44 billion and our 20th largest merchandise trading partner in 2018, with total merchandise trade amounting to HK$54 billion.
Tariffs and Trade Remedies
As set out in Chapter 2 (Trade in Goods) of the FTA, Hong Kong and Australia are committed to eliminating all tariffs on goods originating from each other upon the entry into force of the FTA. Trade remedy measures refer to anti-dumping, countervailing and safeguard measures. Imposition of these measures by the importing economy could result in additional duties on certain imports.
Rules of Origin
To enjoy tariff-free entry to the Australian market, Hong Kong exporters will need to comply with the relevant preferential origin rules and fulfil the relevant requirements set out in Chapter 3 (Rules of Origin and Origin Procedures) of the FTA.
To claim zero import tariffs for exports to Australia, Hong Kong producers, Hong Kong exporters, Australian importers or their representatives may complete a declaration of origin.
Imports from Australia are not required to be accompanied by a declaration of origin or certificate of origin in order for the goods to enjoy tariff-free treatment.
Chapter 5 (Technical Barriers to Trade) also includes Annex 5-A (Wine) and Annex 5-B (Food Products) in order to facilitate trade in wine and food products.
The Agreements will enter into force after Hong Kong and Australia have completed their respective internal procedures.
| Â |
Â
