Hong Kong aims to build strong trade connections with South America by providing sourcing expertise, technological support, and professional services. This initiative aligns with Hong Kong Chief Executive John Lee’s attendance at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru. During this trip, Hong Kong is anticipated to finalize a free-trade agreement (FTA) with Peru, following earlier announcements by Financial Secretary Paul Chan Mo-po regarding successful FTA negotiations.
Before departing, Lee highlighted the potential for expanded trade and economic partnerships between Hong Kong and South America. The government began discussions with Peru in 2022, targeting tariff reductions, streamlined customs, increased market access, and intellectual property and e-commerce opportunities.
Hong Kong Trade Development Council economist Alice Tsang emphasized that Hong Kong could assist Peruvian companies by connecting them with partners and arranging comprehensive sourcing services through its well-established supply chain and financial network. She noted that Peruvian retailers are particularly interested in sourcing Asian consumer goods, such as apparel, footwear, and homewares.
Tsang also suggested that Hong Kong’s tech sector could support Peru’s digital transformation goals, as the country looks to develop its economy through advances in artificial intelligence, e-commerce, and fintech.
Peru is Hong Kong’s fifth-largest Latin American trading partner, with merchandise trade exceeding HK$5 billion (US$640 million) in 2023. Additionally, Hong Kong serves as a key trading hub, helping route HK$4.5 billion in goods between China and Peru.
With the upcoming inauguration of the China-funded Chancay Port in Peru, Hong Kong could offer logistical and management expertise as trade between Asia and South America grows. While Chancay Port is expected to reduce shipping times by over 10 days, senior economist Gary Ng notes that its main focus will likely be on the trade of raw materials, limiting Hong Kong’s direct involvement to electronics exports and agricultural imports.
Professor Surinder Brrar of Polytechnic University noted that Hong Kong could use its shipping and legal advantages to attract Peruvian companies looking to enter the Chinese market, leveraging Hong Kong as a strategic gateway.
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