Australian Trade minister Birmingham signed an Australian-Hong Kong Free Trade Agreement with Secretary for Commerce and economic Development Edward Yau. (newspaper journalist / photo)
Australia-Hong Kong Free Trade Agreement and related investment agreements were signed today. The Australian trade, tourism and investment minister, Birmingham (Simon Birmingham), and the Secretary for Commerce and economic Development, Mr Edward Yau, exchanged agreements with the Secretary for Commerce, Tourism and Investment, Mr Edward Yau, at 07:30 today (March 26).
It is understood that the negotiation of the Australia-Hong Kong Free Trade Agreement began in May 2017 and took nearly two years to be formally signed, but it is still pending parliamentary approval and entry into force. Once in force, the agreement will provide more certainty and opportunities for Australian farmers, businesses and investors to benefit Hong Kong`s exports and investments in Australia.
In a statement on the day of the signing, Australian Prime Minister Credit Mosuisse welcomed the trade deal, which he said marked a new chapter in Australia`s close and mutually beneficial relationship with Hong Kong, China.
"our complementary economic and agreement on the basic principles of trade and investment access will provide new opportunities for Australian companies. Australia`s farmers, businesses, service providers and investors are the big winners of the deal. " Mr Morrison said.
The signing site. (newspaper journalist / photo)
At the signing site, Australian trade minister Birmingham said the deal would bring about a series of important results for Australian companies and investors. "under the agreement, zero tariffs on goods will be determined, market access for service providers will be guaranteed and conditions for two-way investment will be significantly improved," he said.
Previously, Hong Kong did not impose any tariffs on Australia, but could choose to impose tariffs on certain goods at any time.
The signing site. (newspaper journalist / photo)
"We have also agreed that a series of cutting-edge rules, including modern electronic commerce trade rules, including data flow and data storage, financial services, telecommunications and intellectual property rights, will provide the necessary certainty for Australian companies. Enhance confidence in long-term investment decisions. " Said Birmingham.
It is understood that Hong Kong is the world`s largest concentration of Australian businesses overseas, trade volume between the two countries reached 18.8 billion Australian dollars in 2017 and 2018. Hundreds of Australian companies compete in finance, construction, communications, hotels, education, retail, logistics and professional services and will be able to better enter Hong Kong, Birmingham said.
Secretary for Commerce and economic Development, Edward Yau, said in a speech that it was a high-quality trade agreement that was a step closer to the commitments made by the two sides at the World Trade Organisation.
According to information provided by the Hong Kong Trade and Industry Department at the scene, some 140 service industries in Hong Kong will benefit from the approval of the agreement. Compared with the commitments made by Australia in the WTO, the total number of industries benefiting has increased by 40%. In Australia, 60% of the industries already covered by WTO commitments will be further open. In addition, all Hong Kong originating goods are duty-free access to the Australian market, and the application process is simple.
The market entry threshold for investors has been lowered accordingly, and the amount of investment that needs to be reviewed has been raised. In terms of investment protection, the new agreement will replace the 1993 agreement and establish a clear and transparent dispute settlement mechanism.
In addition, the Australia-Hong Kong Free Trade Agreement complements the China-Australia Free Trade Agreement and other Asian trade agreements. By the end of 2017, Hong Kong was Australia`s fifth largest source of foreign investment, with an investment of A $116.6 billion. At the same time, Australia is Hong Kong`s eighth largest outbound investment destination and 17th largest source of direct investment.
Hong Kong economic Trade Office luncheon guests.
The FTA and related investment agreements will enter into force after Australia and Hong Kong have completed their internal procedures. The agreement is pending parliamentary approval, and it is unclear whether Labour will support the current form, the Ausa news agency reported. Labour opposes the inclusion in the agreement of a dispute settlement clause between investors and the State, which allows the company prosecute government.
Gu Xiaojie, Consul General of China in Sydney (right) and Edward Yau, Secretary for Commerce and economic Development, Hong Kong (left).
"it would be reckless and irresponsible for Sheldon (Bill Shorten) to abandon these agreements or try to renegotiate them at the expense of Australian exporters," Birmingham said.
At present, Australia has signed free trade agreements with seven of the eight largest export markets for goods and services, covering nearly 70 percent of Australia`s total trade.
