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 2025

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

The climbdowns pave the way for a side-by-side deal to be concluded this week, as per the US Treasury secretary’s expectation; in other news, Taft added a 10-partner tax team
A vote to be held in 2026 could create Hogan Lovells Cadwalader, a $3.6bn giant with 3,100 lawyers across the Americas, EMEA and Asia Pacific
Foreign companies operating in Libya face source-based taxation even without a local presence. Multinationals must understand compliance obligations, withholding risks, and treaty relief to avoid costly surprises
Hotel La Tour had argued that VAT should be recoverable as a result of proceeds being used for a taxable business activity
Tax professionals are still going to be needed, but AI will make it easier than starting from zero, EY’s global tax disputes leader Luis Coronado tells ITR
AI and assisting clients with navigating global tax reform contributed to the uptick in turnover, the firm said
In a post on X, Scott Bessent urged dissenting countries to the US/OECD side-by-side arrangement to ‘join the consensus’ to get a deal over the line
A new transatlantic firm under the name of Winston Taylor is expected to go live in May 2026 with more than 1,400 lawyers and 20 offices
As ITR’s exclusive data uncovers in-house dissatisfaction with case management, advisers cite Italy’s arcane tax rules
The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
Gift this article