The encouraging uptrend in total bilateral merchandise trade and trade in services coupled with the confirmation of the Hong Kong - EFTA Free Trade Agreement represent “double happiness” which will in turn raise Hong Kong’s economic ante.
Hong Kong (S.A.R.) (PRWEB) July 01, 2011
Hong Kong and the member states of the European Free Trade Association (EFTA) - Iceland, Liechtenstein, Norway and Switzerland - have signed a landmark free-trade agreement (FTA) last week. Hong Kong company registration portal, http://www.GuideMeHongKong.com, anticipates the deal to bolster Hong Kong’s economy by creating more business opportunities catalysed by increased trade as well as investment flows.
The FTA that is in line with the provisions of the World Trade Organisation encompasses a spectrum of areas. It includes trade in goods such as fish and other marine products, processed agricultural goods as well as industrial goods and trade in services in sectors such as financial services, logistics, maritime, medical services and telecommunications. Other areas include investment, protection of intellectual property rights, government procurement, competition and environment.
Commenting on the move, Ms. Jacqueline Low, the Director of Janus Corporate Solutions - the parent of the GuideMeHongKong.com site said, “The free trade agreement will only give Hong Kong’s economy a considerable leverage as it will offer EFTA traders and investors preferential access to Hong Kong’s markets. Similarly, businessmen and entrepreneurs considering Hong Kong company formation can explore and expand their business in the EFTA countries with the certainty that the absence of legal or discriminatory barriers make for greater ease in doing business. It is a clear win-win situation for both parties.”
The agreement that is expected to come into force in mid-2012 comes on the back of healthy trade growth between Hong Kong and the EFTA countries in recent years. Analysis from GuideMeHongKong.com shows that total bilateral merchandise trade between the two parties have amounted to approximately HK$76 billion in 2010 and has seen an average annual growth rate of 13.8% between 2006 and 2010. Major items imported from the EFTA countries included jewellery, watches, clocks, silver and platinum, owing to Hong Kong’s high ratio of high net worth individuals (HNWIs). Total bilateral trade in services between Hong Kong and the EFTA countries saw an annual growth rate of 8.2% between 2005 and 2009, and totalled to nearly HK$10 billion in 2009, due to sectors such as financial services, transportation and merchandising.
“The encouraging uptrend in total bilateral merchandise trade and trade in services coupled with the confirmation of the Hong Kong - EFTA Free Trade Agreement represent “double happiness” which will in turn raise Hong Kong’s economic ante. This will act as an incentive and give more reason for investors and entrepreneurs to incorporate a Hong Kong company. As such, we anticipate a robust demand for our Hong Kong company formation services in the coming months,” added Ms. Low.