Hong Kong: Hong Kong concludes free trade agreement negotiations with Australia

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hong Kong: Hong Kong concludes free trade agreement negotiations with Australia

Sponsored by

sponsored-firms-kpmg.png
intl-updates-small.jpg

Hong Kong and Australia have successfully concluded negotiations on a free trade agreement (FTA) and a new investment agreement (IA) on November 15 2018. The FTA and the IA negotiations between Hong Kong and Australia commenced in May 2017, bringing the 18-month negotiation to a close.

Given recent global trade tensions, the Hong Kong-Australia FTA and IA mark a milestone in the development of the substantial bilateral trade and investment relationship between the two jurisdictions.

The FTA and IA, when signed, will cover trade in goods and services, investment and other related areas, and will boost the flow of trade and services between Hong Kong and Australia. This will enhance the competitiveness of Hong Kong exports in the Australian market and promote Hong Kong's competitiveness as an investment jurisdiction.

The main objectives for Hong Kong launching the FTA negotiations were to:

  • Ensure zero tariffs for Hong Kong products sold into the Australian market; and

  • Secure for Hong Kong service providers the best FTA commitments that Australia has to offer.

Currently, Hong Kong has FTA arrangements with mainland China, New Zealand, Iceland, Liechtenstein, Norway, Switzerland, Chile, Macao, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam and Georgia. Hong Kong has also concluded negotiations with the Maldives. This brings the total number of FTA arrangements with Hong Kong to 21.

Hong Kong also has 20 existing IA arrangements with Australia, Austria, Belgium, Luxembourg, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Republic of Korea, Kuwait, the Netherlands, New Zealand, Sweden, Switzerland, Thailand and the UK.

In addition, Hong Kong has 17 treaty arrangements with investment provisions with Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, China, Chile, Iceland, Liechtenstein, Norway, Switzerland and New Zealand.

The Hong Kong FTA and IA with Australia will foster and strengthen bilateral ties between both countries. It will provide certainty for Hong Kong corporations doing business in Australia as well as providing better access to the Australian market for Hong Kong exporters of education, as well as financial and professional services.

The details of Hong Kong and Australia's FTA and IA will be released when both countries sign the agreements in the first half of 2019.

FTAs are typically accompanied by a comprehensive double taxation agreement and we hope this will be the case with Australia.

more across site & shared bottom lb ros

More from across our site

In the first of a two-part series on capital v revenue in R&D, Jayne Stokes explores these key concepts and where UK companies need to tread carefully
Magnus Pantzar is set to join as managing director after spending nearly a decade as EQT’s global head of tax
The OECD’s project was up for debate as Matt Williams spoke to ITR following BDO’s tax strategist survey, which uncovered increased complexity and costs among multinationals
Sponsored by Deloitte
Sameer Nurmohamed, partner, Deloitte Legal Canada
Sponsored by Deloitte
George Ankomah, partner, Tax & Regulatory Services, Deloitte Africa (Ghana)
The recent spree of firm mergers and acquisitions proves that geographic scale is the name of the game
The big four spin-off firm becomes Taxand’s second UK member; in other news, Haynes Boone launched a UK tax practice
Sponsored by Deloitte Luxembourg
Jean-Michel Henry and Mona El-Begawi of Deloitte Luxembourg examine the complexities created by timing differences in Luxembourg, EU, and OECD tax regimes
Stephanie Pantelidaki’s economic expertise will give Norton Rose Fulbright’s other teams ‘extra firepower,’ she says
Sponsored by MFA Legal & Tech
Samuel Fernandes de Almeida of MFA Legal & Tech assesses whether Portugal’s 7.5% surcharge on non-residents aligns with the EU’s free movement of capital principle and passes the proportionality test
Gift this article