MEXICO CITY: Mexico and the special Chinese administrative region of Hong Kong have announced plans to begin negotiating a Reciprocal Investment Promotion and Protection Agreement, or RIPPA, in 2016, Mexico’s Economy Secretariat said.
Mexican Economy Secretary Ildefonso Guajardo and Hong Kong Commerce and Economic Development Secretary Gregory So made the announcement after a meeting in this capital.
Hong Kong ranked second globally in 2014 with foreign direct investment outflows totaling $143 billion, the Economy Secretariat noted in its statement.
It added that an opportunity exists for Hong Kong to boost FDI outflows to Mexico, the world’s 15th-biggest economy, from the current level of $49.8 million.
Hong Kong is Mexico’s 10th-largest trade partner in Asia and the fifth-biggest destination for Mexican exports to that continent, while Mexico is Hong Kong’s third-biggest trade partner in Latin America.
Mexico has already signed 33 RIPPAs with other economies, while Hong Kong has inked 17.
“The RIPPA will contribute to the development of high value-added sectors in which Hong Kong is a world leader, including auto parts, medical devices and electronics, within a climate of legal certainty,” the secretariat said.
