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A new report published by The Economist Intelligence Unit finds that the vast majority of exporters in Hong Kong who use free-trade agreements (FTAs) signed by the Special Administrative Region benefit from doing so. Almost 90% of companies polled said the trade pacts they were using had increased exports to corresponding markets, while 61% said they had resulted in new business opportunities.
These are among the key findings of Free trade frontier? Hong Kong businesses and the future of FTAs, the fourth in a series of reports sponsored by HSBC that examines Asian businesses’ attitudes towards FTAs and usage of their provisions. The report is based in part on the findings of a survey conducted in 2014 of 100 senior executives from Hong Kong-based exporters. Download the full report here.
The survey finds that the usage rate of FTAs signed by Hong Kong varies widely. Some 63% of exporters use the Closer Economic Partnership Arrangement (CEPA) with the mainland, for example, while just 12% use the deal with New Zealand. For those that are less well used, some companies may be put off by their perceived complexity or a lack of internal resources.But the results may also suggest that trade pacts do not cover the markets most important to Hong Kong’s exporters.
In addition, while Hong Kong’s government is generally seen as a trusted source of information on trade-related developments, 75% of firms are eager to receive more advice and guidance from the authorities on FTA matters. A majority of companies (52%) also feel officials don’t accurately represent their interests in trade negotiations.