It is fully in line with the provisions of the World Trade Organisation. On the other hand, since 2012, exports of products originating from mainland China to ASEAN via Hong Kong have grown at an average annual rate of 3.7%. In 2018, Vietnam was Hong Kong`s sixth-largest export destination, with 60% of re-exports to mainland China. With the reduction or elimination of TARIFFS from ASEAN countries, Hong Kong`s domestic products in the region are becoming more competitive. When the trade restrictions were removed, both sides agreed to lift restrictions on foreign participation and the number of employees. Thailand, Vietnam and the Philippines will also allow Hong Kong companies to take 50 percent or full ownership of businesses. In addition to increasing the number of goods traded, the Free Trade Agreement and the Investment Agreement (AA) will encourage the services sector in ASEAN countries to use Hong Kong`s professional, financial, commercial and legal services. Chapter 4 on investment aims to improve the legal framework for investors from EFTA countries and Hong Kong, China, who invest in activities not covered by Chapter 3 (Trade in Services) in the territories of the other country. In Annex XI, Contracting Parties shall establish reservations concerning national treatment in national schedules on the basis of restrictions imposed by their national legislation.
Hong Kong and the Member States of the European Free Trade Association (EFTA), namely Iceland, Liechtenstein, Norway and Switzerland, adopted on 21.