CHILE AND THE HONG KONG SPECIAL ADMINISTRATIVE REGION
SOME IMPORTANT FACTS
The Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China (PRC) is firmly committed to an open market policy which applies to all trade, as well as to all investments in the HKSAR.
Hong Kong has been a Special Administrative Region of the PRC since 1 July 1997. The "One Country, Two Systems" principle provides the HKSAR with a high degree of autonomy in economic, trade, financial and monetary matters. This is guaranteed by the Basic Law which ensures the continuation of Hong Kong's capitalist economic and trade systems, and the free movement of goods and capital. Hong Kong remains a free port and a separate customs territory with its own customs boundary. Tariff preferences and other similar arrangements obtained by the HKSAR continue to be enjoyed exclusively by the HKSAR. The Basic Law also provides that the HKSAR may participate in relevant international organisations and international trade agreements under the name of "Hong Kong, China".
In 1986, Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade. Accordingly, Hong Kong was one of the founding members of the World Trade Organization when it was established on 1 January 1995. Hong Kong also became a member of the Customs Cooperation Council (subsequently renamed the World Customs Organization) in 1987 and the Asia-Pacific Economic Cooperation in 1991. After 1 July 1997, Hong Kong's status in these and other international organisations remains unchanged except that our participation is now under the name of "Hong Kong, China".
HONG KONG'S ECONOMY IN 2016
The economy of Hong Kong is externally oriented and highly dependent on trade with the rest of the world. In 2016, Hong Kong's economy grew only modestly by 2.0% from 2015. The value of total merchandise trade amounted to HK$7,596.6 billion (305% of Gross Domestic Product (GDP)) in 2016 with imports and exports at HK$4,008.4 billion (161% of GDP) and HK$3,588.2 billion (144% of GDP) respectively. In 2016, Hong Kong was the world's 7th largest trading economy in goods – the 6th largest exporter and the 7th largest importer.
The services sector continues to be very important to the Hong Kong economy. It contributed 93% to the GDP in 2015 and accounted for 88% of the total employment in 2016. Hong Kong's trade in services amounted to HK$1,344.6 billion (54% of GDP) in 2016. In 2016, Hong Kong was the world's 17th largest commercial services trading economy – the 15th largest services exporter and the 16th largest services importer respectively.
TRADE RELATIONS WITH CHILE
- In 2016, Chile ranked 3rd among Hong Kong's trading partners in Latin America and 34th worldwide. Reciprocally, Hong Kong was Chile's 48th ranking trading partner in 2015.
- Bilateral trade in goods between Hong Kong and Chile amounted to HK$11.5 billion in 2016, increased by 31% from 2015. The average annual growth rate from 2012 to 2016 was 9%.
- To strengthen trade and investment ties between the two economies, Hong Kong and Chile signed a bilateral Free Trade Agreement in September 2012. The Agreement, encompassing trade in goods and services, investment, and other trade-related areas, entered into force on 9 October 2014.
- As an addition to the Free Trade Agreement between the two places, Hong Kong and Chile signed an Investment Agreement in November 2016. The Investment Agreement will enhance the confidence of investors, expand investment flows, and further strengthen the economic and trade ties between the two places. The Investment Agreement will enter into force after the completion of the necessary internal procedures of both sides.
- In 2016, Hong Kong's domestic exports of goods to Chile amounted to HK$7.2 million. Major domestic exports to Chile included plastics in non-primary forms; non-ferrous metals; and miscellaneous edible products and preparations.
- Reflecting Hong Kong's role as an important entrepôt for merchandise trade between Chile and the Mainland of China, re-export trade between the two economies through Hong Kong has grown at an average of 8.9% annually since 2012 to HK$9.8 billion in 2016.
- Hong Kong's re-exports of goods to Chile totalled HK$5.1 billion in 2016. Major re-exports were telecommunications equipment; office machines and automatic data processing machines; and apparel and clothing accessories.
- In 2016, Hong Kong imported HK$6.4 billion worth of goods from Chile. Major imports included vegetables and fruit; fish (not marine mammals), crustaceans, molluscs and aquatic invertebrates, and preparations thereof; and beverages.
|Summary of Hong Kong's Trade with Chile (in HK$ million)|
Note: Exchange rate is HK$7.8 = US$1
While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.
Trade and Industry Department
The Government of the Hong Kong
Special Administrative Region
Trade and Industry Tower,
3 Concorde Road, Kowloon City,
Telephone: (852) 2398 5405