HONG KONG: Hong Kong recently finalized a series of agreements that, taken together, shift Asia’s trade and investment landscape.
On November 12, Hong Kong and ASEAN signed the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA), and the ASEAN-Hong Kong Investment Agreement (AHKIA). Prior to this, on November 10, Hong Kong and India agreed to a double taxation avoidance agreement (DTAA) with India.
The agreements come amid distress in Hong Kong that the city is losing its traditional advantage as the premier location in Asia for trade and financial services.
Businesses that use Hong Kong as a management, trade, and sourcing hub for operations in China, Southeast Asia, and India will benefit greatly from the new agreements, while Hong Kong as a whole stands to gain from freer and more open trade throughout the region.
