HK, Georgia sign free trade deal

June 28, 2018

Market boost:

Secretary for Commerce & Economic Development Edward Yau and Georgia’s Deputy Minister of Economy & Sustainable Development Genadi Arveladze sign a free trade agreement.

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Voiceover:
Hong Kong and Georgia signed a free trade agreement at a ceremony during the Belt & Road Summit. It is the first free trade agreement between Hong Kong and a country in the Caucasus. Secretary for Commerce & Economic Development Edward Yau said it will provide a platform for both parties to take their bilateral economic and trade relations to a new level. It also offers opportunities for Hong Kong businessmen to tap the Georgian market and the Caucasus covered under the Belt & Road Initiative.

Secretary for Commerce & Economic Development Edward Yau: 
Particularly at the time when we see an overcast of trade protection and the looming storm of trade disputes among some members of the international community, the smooth negotiation and swift conclusion of this Hong Kong-Georgia FTA is a clear and loud message to the world that through collaboration, we can build trade alliance, and through removing trade barriers, we secure mutual benefits and that the sum of which is surely bigger than the lone interest of respective players.

Voiceover: 
The trade agreement is comprehensive. On trade in goods, Georgia will eliminate import tariffs on 96.6% of its tariff lines for Hong Kong products. Financial, telecommunications, wholesale and retail, arbitration and other services stand to benefit. On investment in non-services sectors, Hong Kong investors will enjoy safeguards and be treated no less favourably than Georgian ones. This will enhance investor confidence and facilitate two-way investment flows between the two places.

Georgia is a close trading partner of Hong Kong in the Caucasus and an emerging market with great potential for further growth. The total merchandise trade between Hong Kong and Georgia was $320 million in 2017. The free trade agreement will come into effect after necessary procedures are completed.

Hong Kong and Georgia have signed a free trade agreement which will provide legal certainty and boost market access and investment flows between the two places.

Secretary for Commerce & Economic Development Edward Yau signed the agreement with Georgia's Deputy Minister of Economy & Sustainable Development Genadi Arveladze at the Belt & Road Summit in Hong Kong today.

The deal encompasses trade in goods and services, investment, dispute settlement mechanisms and other related areas.

Georgia will eliminate import tariffs on 96.6% of its tariff lines for Hong Kong products and will give Hong Kong investors treatment and other safeguards that are the same as those enjoyed by its local investors.

The pact also contains provisions to protect intellectual property rights, promote competition and enhance environmental protection.

Mr Yau said: "This is the first free trade agreement between Hong Kong and a country in the Caucasus. Georgia is a close trading partner of Hong Kong in the Caucasus and an emerging market with great potential for further growth.

“It will provide a platform for both parties to take their bilateral economic and trade relations to a new level, while offering ample opportunities for Hong Kong businessmen to tap the Georgian market and the Caucasus covered under the Belt & Road Initiative.

"The expansion of our free trade agreement network into the Eurasia region will further strengthen Hong Kong's role as an international trade, commerce and financial hub, and a gateway between the Mainland and our overseas trading partners.”

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