The free trade agreement (FTA) between Hong Kong and Chile, which was originally signed on September 7, 2012, enters into force on October 9, 2014.
The agreement will expand Hong’s FTA network to South America, after signing agreements only with territories in the Asia-Pacific region and Europe.
Under the FTA, both sides will enjoy preferential market access. For goods originating from Hong Kong, Chile will abolish import tariffs on about 88 percent of tariff lines and will phase out tariffs on an additional 10 percent of tariff lines over three years. The remaining 2 percent, comprising, for example, cereals, sugars, and articles of iron or steel, will continue to be subject to import tariffs. Hong Kong traders will need to comply with the preferential rules of origin and fulfill the specified requirements to secure preferential access.
Hong Kong, on the other hand, has committed to offer tariff-free access for all products originating from Chile upon the entry into force of the agreement.
Hong Kong service providers will enjoy legal certainty in market access and treatment equal to that of domestic companies for a comprehensive range of services in the Chilean market, including financial services, telecommunications, business and professional services, tourism, environmental services, and services related to innovation and technology.
In addition, Hong Kong investors will have legal certainty on treatment akin to domestic companies’ in respect of their investments in specified non-services sectors in Chile. The two sides have also agreed to negotiate a separate and comprehensive agreement on investment promotion and protection upon entry into force of the FTA.
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