ASEAN Hong Kong FTA and Investment Agreement

The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) and ASEAN- Hong Kong, China Investment Agreement (AHKIA) are the key platforms to foster economic partnership, support technical capacity building and policy dialogue between ASEAN and HKC in various areas, including trade in Goods and its related issues (Rules of Origin; Customs Procedure , Sanitary and Phytosanitary Measures; Standards, Technical Regulations and Conformity Assessment Procedures; Trade Remedies); Trade in Services; Economic and Technical Co-operation; Intellectual Property and Investment.

Economic Cooperation under ASEAN-Hong Kong FTA

The Chapter on Economic and Technical Cooperation (ECOTECH) under the AHKFTA is implemented through an ECOTECH Work Programme, which was finalised in September 2017. The HKC’s total contribution for the implementation of the ECOTECH Work Programme is HKD 25 million (approximately USD 3.2 million) for a period of five years starting from 1 January 2020.

The 8th AEM-HKC Consultation seen the extension of the AHKFTA ECOTECH Work Programme for 2025-2029 supported by HKC’s commitment of HKD 30 million, to continue promoting closer collaboration among AHKFTA Parties in advancing and deepening economic integration in the region through practical ECOTECH activities in broader scope of cooperation to also cover emerging issues and areas covered in other ASEAN FTAs. The expansion of the Work Programme covers 14 areas of co-operation namely (i) Customs Co-operation, (ii) Professional Services, (iii) Small Medium Enterprises (SMEs) Co-operation, (iv) Trade Facilitation/Logistics, (v) E-Commerce Co-operation, (vi) Sanitary and Phytosanitary (SPS) Co-operation, vii) Standards, Technical Regulations, and Conformity Assessment Procedures (STRACAP) Co-operation, viii) Intellectual Property (IP) Co-operation, ix) Digital Technology to Facilitate Trade, x) Promotion and Facilitation of Investment xi) Competition, xii) Government Procurement (GP), xiii) Digital Transformation, and xiv) Sustainable Economic Development.

To date, the AHKFTA Joint Committee (AHKFTA JC) has endorsed 28 project proposals submitted by AHKFTA Parties, out of which 13 projects have been completed as of 31 December 2023. Summaries of the completed projects are as follows:

• Customs Co-operation
  • Authorized Economic Operator (AEO) Expert Mission and Symposium for ASEAN and Hong Kong, China
  • Simplification of Procedures and Best Practices for E-Commerce

• Small Medium Enterprises (SMEs) Co-operation
  • Capacity Development on Textile & Garment Industry and Its Sustainability for SMEs of CLMV Countries
  • ASEAN-Hong Kong, China SMEs Going ESG Policy Dialogue and Workshop 2024
  • Integrating SMEs in Eco-friendly Packaging to the Global Value Chain

• Trade Facilitation/Logistics
  • Capacity Building and Export Promotion for ASEAN Start-ups at HKTDC Electronics Fair (Autumn Edition) 2023
  • Networking Promotion for ASEAN ICT stakeholders in InnoEX 2024
  • Transposition of the AHKFTA PSR from HS 2012 to HS 2017 and subsequently to HS 2022
  • Workshop on Promoting IP Commercialisation in a Knowledge-based Economy
  • Development of the AHKFTA Guidebook for Business
  • Capacity Building for the Front-Line Officers and MSMEs of Cambodia, Lao PDR, and Myanmar to implement ASEAN-Hong Kong FTA Tariff and Rules of Origin

• Professional Services
  • ASEAN Capacity Building on Retro-commissioning (RCx)
  • Online Workshop on Understanding Trade in Professional Services and Developing Mutual Recognition Arrangements (MRAs) between ASEAN and Hong Kong
  • Workshop on Strengthening Regulatory Framework and Implementation for Accountancy Services
  • Workshop on Online Dispute Resolution (ODR): efficient and cost effective dispute resolution mechanism for cross-border disputes for ASEAN traders
  • ASEAN Capacity Building Workshop on Digital Solar Resource Maps and Management Technologies

• E-Commerce Co-operation
  • Facilitate Cross-Border Paperless Trade in ASEAN
  • Strengthening E-commerce cooperation to promote business to business and business to consumers under AHKFTA: a case study of ASEAN countries and Hong Kong Special Administrative Region of the People’s Republic of China

• Digital Technology to Facilitate Trade
  • Upskilling Micro, Small and Medium Enterprises (MSMEs) on Digital Technology and Trade in the ASEAN Region and Hong Kong, China

• Promotion and Facilitation of Investment
  • Hong Kong, China – Cambodia-Lao PDR-Myanmar-Viet Nam Online Investment Forum