AhKFTA comprises 14 chapters on market access liberalization, trade facilitation, rules to promote confidence in trade and cooperation to facilitate trade in goods and services in the region. This is ASEAN`s sixth free trade agreement with external partners after China, Korea, Japan, India and Australia-New Zealand. You can find the chords here. Given the improved access to Hong Kong`s trading network, its proximity to mainland China and the China Belt and Road Initiative, foreign and domestic companies should be prepared to take full advantage of the free trade agreement. As part of the free trade agreement, Hong Kong will grant duty-free access to all products from ASEAN countries, while each Member State has made the following commitments to reduce tariffs on goods from Hong Kong: with regard to trade in services , Hong Kong service providers will benefit from better business and legal security opportunities under the free trade agreement for different service sectors in Indonesia. The implementation of AHKFTA will allow Vietnam to further improve its competitive commercial network. It will continue to help the economy grow the value chain, from exporting low-tech production to exporting high-tech products such as electronics, machinery, vehicles and medical devices. Vietnam is Hong Kong`s third largest trading partner and ASEAN`s largest export market. In the first five months of 2019, Hong Kong accounted for 30.4% of Vietnam`s total FDI investment, or $5.08 billion. On 12 November 2017, the Association of Southeast Asian Nations (ASEAN) and the Hong Kong Special Administrative Region (SAR) signed a free trade and investment pact to strengthen economic cooperation between the two regions and boost economic development.
The two agreements, ASEAN-Hong Kong, the Free Trade Agreement with China (AHKFTA) and the ASEAN-Hong Kong Agreement (AHKIA), were signed at the 31st ASEAN Summit in Manila and will enter into force on 1 January 2019. The free trade agreement will reduce ASEAN tariffs and improve Hong Kong`s competitiveness in the international market as a whole. AHKFTA, with the China-ASEAN Free Trade Agreement and CEPA on the China-Hong Kong continent, will expand Hong Kong`s position as a hub for international trade and services. As part of the CEW, Indonesia will offer Hong Kong companies investing in its territory fair and equitable treatment of their investments, physical protection and security of their investments, as well as ensuring free investment and returns, the spokesman said. Hong Kong`s importance as a business in trade between mainland China and Vietnam will continue to grow with the entry into force of the free trade agreement. Re-exports of ASEAN products to China via Hong Kong have increased by 6.4% on an annual average since 2012. With regard to trade in goods under the free trade agreement, the Philippines will phase out and gradually reduce tariffs on goods from Hong Kong. The Philippines` tariff commitments cover different types of goods in Hong Kong, including jewelry, clothing and clothing accessories, watches and toys, a HKSAR government spokesman said. With regard to trade restrictions, Hong Kong and ASEAN countries will remove barriers to foreign capital participation and the number of foreign workers employed. Foreign companies can benefit significantly from AHKFTA, as the agreement will extend Hong Kong`s network to all major Southeast Asian economies.