The UK and Hong Kong governments recently announced the signing of a free trade agreement, which is expected to take effect in January 2021. The agreement will provide new opportunities for businesses in both countries, as well as strengthen the economic relationship between the UK and Hong Kong.
As part of the agreement, certain goods originating from Hong Kong will be eligible for zero tariffs upon entering the UK market. This includes products such as jewelry, telecommunications equipment, and seafood. In addition, the agreement aims to reduce barriers to trade and streamline customs procedures, making it easier for businesses to export and import goods between the two countries.
The UK and Hong Kong have a long-standing history of trade and investment, with the UK being one of Hong Kong`s largest trading partners. The free trade agreement is expected to further boost trade and investment flows, particularly in areas such as financial services and technology.
The agreement has been welcomed by businesses and industry groups in both the UK and Hong Kong. Simon Wong, CEO of the Hong Kong Chamber of Commerce in the UK, said that the agreement “will facilitate trade and investment between the two economies and enhance the close ties between Hong Kong and the UK.”
The UK government has also signaled its commitment to strengthening trade relationships beyond Europe, following its departure from the European Union earlier this year. Trade Secretary, Liz Truss, said that the agreement with Hong Kong “opens new doors for UK businesses in the dynamic and fast-growing markets of Asia.”
However, the agreement has also faced criticism from some UK lawmakers, who are concerned about Hong Kong`s human rights record and the ongoing political unrest in the region. In response, the UK government has emphasized that the agreement focuses solely on trade and does not diminish the UK`s commitment to upholding human rights and the rule of law.
Overall, the UK-Hong Kong free trade agreement has the potential to provide significant benefits for businesses in both countries. By reducing barriers to trade and increasing market access, the agreement is expected to boost economic growth and create new opportunities for businesses in a range of sectors.