MANILA: Hong Kong on Sunday signed free trade and investment pacts with the ten-nation Association of Southeast Asian Nations, in what one of the Chinese territory鈥檚 senior officials called a 鈥渓oud and clear鈥� vote against rising regional trade protectionism.
The pacts conclude nearly three years of talks, are expected to take effect on January 1 at the earliest, and aim to bring 鈥渄eeper and bolder鈥� integration of market access with the bloc, said Edward Yau, Hong Kong鈥檚 commerce and development secretary.
鈥淚n the face of protectionist sentiments in other parts of the world, these two agreements are in fact a loud and clear vote from all of us here for freer and more open trade,鈥� Yau said.
鈥淗ong Kong, being a free trade promoter and advocate of a strong, rule-based multilateral trading system, will continue to take this pathway, continue to do our utmost.鈥�
Total merchandise trade between Hong Kong and ASEAN was HK$833 billion (SR400.36 billion) last year, official figures show. Total services trade was HK$121 billion in 2015.
The ASEAN Hong Kong China Free Trade Agreement (AHKCFTA) was signed on the sidelines of a summit of the regional grouping in the Philippine capital of Manila.
It came after leaders attending an Asia-Pacific Economic Cooperation (APEC) summit in Vietnam agreed to tackle 鈥渦nfair trade practices鈥� and 鈥渕arket distorting subsidies鈥� in a statement on Saturday that bore the imprint of US President Donald Trump鈥檚 efforts to reshape the global trade landscape.
That summit offered a contrast between the vision of US President Donald Trump鈥檚 鈥淎merica First鈥� policy and a traditional consensus favoring multinational deals that China now seeks to champion.
While Hong Kong already has one of the world鈥檚 freest and most open economies, the pacts will see many ASEAN countries gradually eliminate or slash customs duties on goods from the former British colony that returned to Chinese rule in 1997.
Professional services are also expected to benefit, with increased investment flows, Yau added.
The ASEAN grouping includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.