Peru Enters a New Era of Opportunity with Hong Kong
Just on the heels of unveiling the China-funded megaport in Chancay close to Lima, Peru made a significant move by signing a Free Trade Agreement (FTA) with Hong Kong. This strategic agreement reaffirms Peru’s dedication to enhancing trade relations across the Pacific Ocean. The deal was solidified during the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit held in the capital of the South American nation.
- Strengthening Ties with Hong Kong:
Peru’s Foreign Trade and Tourism Minister, Desilú León, emphasized the importance of this agreement, citing Hong Kong’s status as one of the renowned “four Asian tigers” alongside South Korea, Singapore, and Taiwan. Hong Kong stands as the third-largest destination for Peru’s non-traditional exports to Asia, including goods like blueberries, grapes, avocados, and fishmeal. In 2023, Peru’s exports to Hong Kong amounted to US$ 266 million, showcasing a 1.5% growth from the previous year.
- Opening Doors to Asian Markets:
The accord signifies Peru’s ongoing commitment to expanding its presence in Asian markets, particularly during a period of sustained economic advancement across the continent. It underscores the pivotal role of Asia in shaping Peru’s economic trajectory as the nation integrates further into global value chains.
- Milestone in Economic Integration:
The FTA, a culmination of negotiations that began in 2023, was officially announced in a ceremony graced by Peruvian President Dina Boluarte and Hong Kong Chief Executive John Lee Ka-Chiu. Boluarte hailed this agreement as a “transcendental milestone,” marking a decisive stride towards deeper economic integration with Hong Kong. She emphasized Peru’s unwavering dedication to free trade governed by stable and predictable regulations.
- Pathway to Prosperity:
The signed FTA is poised to streamline trade activities and bring mutual benefits to both markets. Boluarte expressed that Peru is set to provide a launchpad of opportunities for Hong Kong’s businessmen and investors, fostering a reciprocal relationship between the two economies.
- Embracing New Opportunities:
Acknowledging the significance of this treaty, John Lee Ka-Chiu highlighted the readiness of both economies to explore fresh business prospects. This FTA, the ninth of its kind signed by Hong Kong, embodies a commitment to liberalization and facilitation that transcends previous trade agreements. It paves the way for strategic collaborations that promise mutual growth and development.
In the wake of this historic agreement, the focus now shifts to initiating negotiations for an investment protection agreement between Peru and Hong Kong. Peru, a key player in the global copper market, boasts existing trade agreements with 14 economies within the Asia-Pacific Economic Cooperation Forum, including major players like China, the United States, and Japan.
Peru’s partnership with Hong Kong represents a pivotal moment in the nation’s economic narrative, promising enhanced trade opportunities and strengthened ties with one of Asia’s economic powerhouses. This collaboration sets the stage for a dynamic future of growth, innovation, and prosperity for both nations.
