The first Free Trade Agreement between Europe and Hong Kong entered into force

04.10.2012

On 1^st October 2012 the first Free Trade Agreement between Hong Kong and members of EFTA (European Free Trade Association) – Iceland, Liechtenstein, Switzerland and Norway. In addition, the part of the Agreement which regulates relations between Hong Kong and Norway will enter into force on 1^st November 2012.

This Agreement covers wide spheres of cooperation including trade of goods and services, investment, intellectual rights protection. Under the Agreement countries of EFTA (European Free Trade Association) will abolish tariffs on industrial and agricultural products, on sea products exported by Hong Kong. Hong Kong in its turn will provide the free tariff regime to the contracting countries.

Furthermore, Hong Kong will be granted profitable possibilities due to access to the market of the European countries on non-discriminational basis: sphere of telecommunications, financial services, logistics, including maritime transport services, audiovisual services, etc. In particular, there will be no restrictions on foreign capital participation, number of services providers, cost of services and incorporation of certain types of legal entities or joint ventures in the sphere of services on EFTA (European Free Trade Association) markets.

On the basis: http://efta.int/~/media/Documents/legal-texts/free-trade-relations/hong-kong-china/EFTA-Hong%20Kong%20China%20Free%20Trade%20Agreement.pdf

Expert’s opinion

China is searching new markets for expansion. Europe is searching markets for capital export that outflows because of the populist decisions of bleary-eyed politicians. Hong Kong is the place that united these flows and made them complementary.

I suppose that in the near future demand on the Hong Kong companies from the side of the Russian and Ukranian businessmen will increase sufficiently.

Now this instrument has become more convenient in use in the old Europe.

Yaroslav Lomakin ( Managing partner Company Honest & Bright)