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ASEAN-Hong Kong, China Free Trade Agreement

The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) is a trade agreement signed between the member countries of the Association of Southeast Asian Nations (ASEAN) and the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China. The FTA was signed on November 12, 2017, came into force on June 11, 2019, and on August 20, 2023 was finalized the First Protocol to Amend the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA).

This agreement aims to promote trade and economic cooperation between ASEAN and Hong Kong, fostering economic growth and facilitating the flow of goods, services, and investments between the two regions.

Key features of the AHKFTA include:

  1. Trade Liberalization: The agreement includes provisions for the reduction or elimination of tariffs on a wide range of goods traded between ASEAN member states and Hong Kong. This helps to facilitate the flow of goods between the two regions and makes their products more competitive in each other's markets.

  2. Services and Investment: The AHKFTA also covers trade in services and investment. It includes commitments to reduce restrictions on cross-border services and promote greater investment flows between ASEAN and Hong Kong. This is intended to create a more favorable environment for businesses in these sectors.

  3. Economic Cooperation: The agreement goes beyond traditional trade liberalization and includes provisions for broader economic cooperation, such as intellectual property rights protection, competition policy, and dispute resolution mechanisms. These measures help create a more comprehensive and stable economic relationship.

  4. Transparency and Rules: The AHKFTA includes provisions to improve transparency and set clear rules for trade and investment between the parties. This helps businesses and governments understand the obligations and benefits of the agreement.

  5. Trade Facilitation: The agreement also focuses on trade facilitation measures, aiming to reduce trade costs and streamline customs procedures. This can lead to more efficient and cost-effective trade.

  6. Dispute Settlement: In the event of disputes or conflicts arising from the agreement, there are mechanisms in place for resolving them. These mechanisms provide a structured and rules-based approach to dispute resolution.


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