WT/REG448/M/1  
 
10 July 2023 
(23-4649) Page: 1/3 
Committee on Regional Trade Agreements  
Hundred and S eventh  Session  Original: English  
 
  
FREE TRADE AGREEMENT BETWEEN THE MEMBER STATES OF THE ASSOCIATION OF 
SOUTHEAST ASIAN NATIONS (ASEAN) AND HONG KONG, CHINA  
(GOODS AND SERVICES)  
NOTE ON THE MEETING OF 5 JULY  2023 
Chair: Ambassador H.E. Ms. Clare KELLY (New Zealand)  
1.1.  The 10 7th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the 
"Committee") was convened in Airgram WTO/AIR/RTA/3 2/Rev.1 dated 23 June 2023.  
1.2.  Under Agenda Item H.I, the CRTA considered the Agreement establishing a  Free Trade 
Agreement b etween the Member States of the Association of Southeast Asian Nations (ASEAN) and 
Hong Kong, China, goods and services , (hereinafter "the Agreement"). The Chair stated that the 
factual presentation had been prepared by the Secretariat on its own responsib ility in full 
consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for 
Regional Trade Agreements (document WT/L/671).  
1.3.  The Agreement had entered into force on 1 1 June 2019 for Hong Kong, China ; Lao People's 
Democrat ic Republic (PDR);  Myanmar ; Singapore ; Thailand ; Viet Nam; on 13 October 2019 for 
Malaysia; on 12 May 2020 for the Philippines; on 4 July 2020 for Indonesia; on 20 October 2020 for 
Brunei Darussalam; and on 12 February 2021 for Cambodia.  It had been notified to the WTO by the 
Parties on 10 February  2021 under Articles  XXIV:7(a) of the GATT  1994 and Article  V:7(a) of the 
GATS, in documents WT/REG448/N/1 and S/C/N/1043,  respectively. The Parties had indicated the 
Agreement create d a free tra de area in goods within the meaning of Article XXIV of the GATT 1994 
and for trade in services within the meaning of Article V of the GATS.  The text of the Agreement and 
its Annexes was available on the Parties' official websites and in the WTO RTAs databa se. The Factual 
Presentation (document  WT/REG44 8/1) and the questions and replies on this Agreement (document 
WT/REG44 8/2) had been distributed.  
1.4.  The representative of Indonesia , deliver ing a statement on behalf of the ASEAN Member States, 
thanked Hong Kon g, China for its close cooperation in the Agreement 's notification process , as well 
as the Secretariat for preparing a comprehensive factual presentation and its engagement with both 
Parties throughout the process.  
1.5.  Over the years, ASEAN and Hong  Kong, China had continu ed to intensify common efforts aimed 
at increasing their trade and investment cooperation. A good example of this initiative had been the 
concrete implementation of the Agreement and an Investment Agreement between ASEAN and Hong  
Kong, China , which had been signed on 12 November 2017 and had entered into force in June 2019 
for Hong Kong, China ; Lao PDR ; Myanmar ; Singapore ; Thailand and Vietnam; in October 2019 for 
Malays ia; in May 2020 for the Philippines; in July 2020 for Indonesia; in October 2020 for Brunei 
Darussalam; and in February 2021 for Cambodia.  
1.6.  The Agreement ha d since become an important foundation for both Parties to facilitate regional 
economic integration, as well as support sustainable economic development. Th rough it, both Parties 
had agree d to liberalize trade in goods, services and investment, as well as to establish a free trade 
area in accordance with Article XXIV of the GATT and Article V of the GATS . WT/REG448/M/1  
 
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  1.7.  The Agreement also include d provisions on rules of origin and related operational procedures; 
customs procedures and trade facilitation; sanitary and phytosanitary measures; standards, 
technical regulations, and conformity assessment procedures; and trade  remedy provisions.  
1.8.  He indicated as an example, that in the area of goods, Hong Kong , China  and Singapore  had 
provide d full implementation of zero customs duties upon entry into force  of the Agreement , while 
Brunei Darussalam, Malaysia, the Philippines, an d Thailand would eliminate customs duties on 85% 
of products traded with Hong Kong , China  within 10 years and reduce duties on another 10% of 
tariff lines within 14 years. Indonesia and Vietnam would eliminate duties on 75% of their products 
within 10 years and reduce duties for another 10% of tariff lines within 14 years. Meanwhile, 
Cambodia, Lao  PDR and Myanmar would eliminate i mport duties on 65% of their products within 
15 years and reduce duties on 20% of tariff lines within 20 years.  
1.9.  He noted that d espite the fact that trade flows ha d been severely affected by the COVID-19 
pandemic, the Agreement ha d had a positive impact on bilateral trade since its entry into force. 
Total trade between the Parties had been approximately USD 73.3 billion in 2019 and was expected 
to have increase d to USD 90.46 billion by 2022.  
1.10.  He hoped that the Agreement would further assist in reducing techni cal barriers to trade, 
improve market access in services trade, particularly in architecture, engineering, education, and 
environmental services, and create a more transparent, facilitative, and secure business 
environment for investors.  
1.11.  In conclusion, he reiterated that the ASEAN Member States remain ed committed to the 
successful implementation and effective utilization of the ASEAN -Hong Kong , China  Free Trade 
Agreement. He was confiden t that th e Agreement would contribute to strengthening economic ties, 
promoting sustainable development, and fostering a prosperous and inclusive regional trading 
environment.  
1.12.  The representative of Hong Kong, China  welcome d the consideration of the Agreement by th e 
Committee.  She also  thank ed the Secretariat for preparing the factual presentation, which contained 
all the key elements of the Agreement and  express ed appreciation to the ASEAN Member States as 
well as the ASEAN Secretariat for working hand -in-hand with Hong Kong, China in preparat ion for 
the CRTA meeting.  
1.13.  The Agreement had brought about legal certainty and better market access for trade in goods 
and services between Hong Kong, China and ASEAN.  It had helped reduce restrictions in doing 
business and had offered more business opportu nities for enterprises and service providers, thus 
boosting trade and economic activities and creating a more conducive environment for the 
development of the Parties' economies.  
1.14.  The Agreement was fully consistent with the WTO Agreements.  It was comprehens ive in 
scope, encompassing trade in goods and trade in services, economic and technical co -operation 
(ECOTECH), dispute settlement mechanism and other related areas.  
1.15.  On trade in goods, Hong Kong, China had commit ted to granting tariff free access to all 
products originating in ASEAN Member States, while ASEAN Member States had agree d to 
progressively eliminate or reduce their customs duties on goods originating in Hong Kong, China.  
On trade remedies, the Parties affirm ed their rights and obligations under the relevant WTO 
Agreements. The Agreement strengthen ed co-operation and transparency in the areas of sanitary 
and phytosanitary measures as well as technical barriers to trade.  It also simplifie d and harmonise d 
customs procedu res to ensure rules and practices applying to goods traded between Hong Kong, 
China and ASEAN were predictable, consistent, transparent and trade -facilitating.  
1.16.  On trade in services, the Parties' commitments were comprehensive and balanced, building 
on thos e under the GATS . Service providers could enjoy legal certainty in market access and national 
treatment for a wide range of services sectors. There were also a number of liberalisation 
commitments in respect of local investment regimes. Besides, the Partie s had agree d other general 
obligations to facilitate trade in services, including formulation of rules to ensure that domestic 
regulations were transparent and fair. The Parties  also commi tted to facilitating the movement of 
persons in terms of temporary s tay and entry for business purposes.  WT/REG448/M/1  
 
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  1.17.  On investment, Hong Kong, China and ASEAN had signed a related Investment Agreement 
which complement ed the Agreement by providing investors with non -discriminatory treatment of 
investments in non -services sectors and pr otection of investments in all sectors.  Such measures had 
provide d legal certainty for investments and help ed facilitate investment flow between the Parties . 
1.18.  In addition, the Agreement contain ed provisions to promote and strengthen co -operation in 
the area  of intellectual property rights. The Parties  had also agree d to establish a transparent 
mechanism for consultations and settlement of possible disputes.  
1.19.  To enhance the benefits of the Agreement through capacity building and technical assistance, 
the Parti es had agree d an ECOTECH Chapter under which both sides collaborate d in ECOTECH 
projects covering different priority areas.  Since the entry into force of the Agreement , the Joint 
Committee ha d approved more than 20 projects which ha d reinforced close and amicable trade and 
economic co -operation  between the Parties . 
1.20.  The Agreement had  gradually entered into force since June 2019 and had become effective 
for all Parties in February 2021.  She noted , that w ith concerted efforts, the implementation of the 
Agreement had been very smooth.  The Parties  maintain ed close dialogue at different levels to ensure 
the continued smooth implementation of the Agreement . 
1.21.  The Agreement had undoubtedly created synergy  and injected impetus to trade and economic 
ties between the Parties . ASEAN, as a bloc, was Hong Kong, China's second largest trading partner. 
Since the signing of the Agreement in 2017, Hong Kong, China’s trade in goods and services with 
ASEAN had recorde d a healthy growth in value, with trade in goods increasing  by more than 38% in 
value. Hong Kong, China would continue to work with ASEAN to capitalise on the Agreement with a 
view to taking trade and economic relations to the next level, particularly agai nst the backdrop of 
the post-pandemic recovery.  
1.22.  In closing, she thank ed Members for their interest in th e Agreement and their written 
questions, to which joint written replies from Hong Kong, China and ASEAN Member States ha d been 
circulated before th e CRT A meeting. She welcome d any further comments from Members and look ed 
forward to a fruitful meeting.  
1.23.  The representative of the United States  thanked the Parties for their participation in the 
notification and transparency process and for providing joint wri tten replies to written questions.  
1.24.  The representative of European Union  welcomed the Agreement and thanked the Parties for 
their presentations. She also wished them success in the implementation of the Agreement.  
1.25.  The Chair noted the consideration of the Free Trade Agreement between the Member States 
of the Association of Sout heast Asian Nations (ASEAN) and Hong Kong, China, goods and services 
had allowed the Committee to clarify a number of questions and conclude oral discussion of the RTA 
in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing t o ask 
follow -up questions were invited to forward submissions in writing to the Secretariat by 12 July  2023 
and the Parties were asked to submit replies in writing by no later than 26 July 2023. In accordance 
with paragraph 13 of the Transparency Mechanism  all written submissions, as well as the minutes 
of the meeting would be circulated promptly, in all WTO official languages, and made available on 
the WTO website.  
1.26.  The Committee took note  of the comments made.  
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