Press Release
Negotiations set to begin on Free Trade Agreement
Tuesday, December 22, 2009
Hong Kong and the European Free Trade Association (EFTA) had agreed to start negotiations on a Free Trade Agreement (FTA) between the two sides in early 2010, a government spokesperson announced today (December 22).
"An FTA between Hong Kong and EFTA should provide the Hong Kong business sector with better market opportunities in the EFTA States, bringing multiple benefits to Hong Kong in trade, income and employment," the spokesperson said.
The EFTA comprises Iceland, Liechtenstein, Norway and Switzerland. It is an important trading partner of Hong Kong in Europe.
Hong Kong and the EFTA States are service-oriented economies. Among the four EFTA States, Switzerland was Hong Kong's 12th largest trading partner in the world in 2007 in terms of trade in services, with such trade totalling HK$10.7 billion, while Norway ranked 28th with trade amounting to HK$921 million.
Bilateral merchandise trade between Hong Kong and the EFTA has enjoyed remarkable growth for years, with average annual growth of 15.6% from 2004 to 2008. Total merchandise trade between Hong Kong and the EFTA amounted to about HK$72 billion in 2008, making EFTA the 11th largest trading partner of Hong Kong in that year.
The FTA negotiations will encompass a wide-ranging scope, with emphasis on trade and investment liberalisation and facilitation. The key elements of the FTA negotiations will include:
- elimination of tariffs on all industrial goods and removal or reduction of tariffs on agricultural products;
- liberalisation of non-tariff barriers, including technical barriers to trade, sanitary and phytosanitary measures, anti-dumping, safeguards and subsidies measures;
- simple and transparent rules of origin and customs procedures which would facilitate bilateral trade;
- liberalisation of trade in services; and
- liberalisation and promotion of investment.
To facilitate the Government in formulating Hong Kong's overall position in the FTA negotiations, a consultation document has been prepared and can be accessed through the Trade and Industry Department's website: www.tid.gov.hk. Interested parties are invited to put forward their views and suggestions on areas to be covered in the FTA by February 12, 2010. Feedback can be sent to the Trade and Industry Department by mail (Europe Division, 19/F, Trade and Industry Department Tower, 700 Nathan Road, Kowloon), fax (2789 9761 / 2789 2491) or email (fta@tid.gov.hk).
Ends