Advertisement
Advertisement
Asean
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Gregory So, secretary for commerce and economic development, expects to finalise the trade agreements by 2016. Photo: David Wong

Hong Kong expects to finalise Asean free trade agreement by 2016

Hong Kong expects to have a free trade agreement with Asean economies in place by 2016, government officials said yesterday as they sketched out a timeline for progress on trade talks that began in July.

Asean
Chim Sau Wai

Hong Kong expects to have a free trade agreement with Asean economies in place by 2016, government officials said yesterday as they sketched out a timeline for progress on trade talks that began in July.

Gregory So Kam-leung, secretary for commerce and economic development, said that he expects all of the six rounds of negotiations for the free trade agreements between Hong Kong and Asean countries to be completed by 2016. The first round of talks was held in July, So added.

Fearing diversion of trade from Hong Kong since the mainland joined the trade pact as "10 plus one" in 2010, Hong Kong manufacturers have been urging the city government to join the Asean-China free trade network to maintain the city's position as a transit hub for mainland external trade.

"China exports can go directly to the Asean countries with tariffs reduced or eliminated, without going through Hong Kong. Hong Kong's position is being weakened. We need the '10 plus two'," said Stanley Lau, chairman of the Federation of Hong Kong Industries.

Jonathan Choi, honorary president of the Chinese General Chamber of Commerce, said negotiations with the Asean countries have not been easy as Hong Kong is already a free port and does not impose tariffs on imports. That means there isn't much Hong Kong can offer as preferential treatment for Asean countries, which reduces the city's bargaining power.

"We have already given [the preferential offer]," said Choi, referring to Hong Kong's zero-tariff arrangement. "We are now just asking to join [the trade pact]."

Asean member states apply tariff rates ranging from zero to 10.3 per cent, according to a consultation document published by Hong Kong's trade and industry department in May.

The trade negotiations also cover liberalisation, promotion and protection of investment, and intellectual property cooperation.

However, David Carbon, chief economist at DBS, said Hong Kong should be able to enjoy the spillover effect from growing China trade, with or without free trade agreements.

"Everybody wants to get rid of barriers, get rid of distortions, and so on. But minor changes on tariffs really don't impact trade nearly as much as year-to-year growth [in China's GDP]," he said.

This article appeared in the South China Morning Post print edition as: HK to finalise Asean free trade agreement by 2016
Post