Editorial | Latin America speaks language of business Hong Kong wants to hear

Hong Kong has been buffeted by geopolitical tensions between China and the United States for the past four years. The pressure has been on Chief Executive John Lee Ka-chiu to help build inroads into new markets to diversify the city’s financial, trade and commercial connections.

His trip to Peru to attend the Asia-Pacific Economic Cooperation conference this week therefore marks a timely and welcome foray into Latin America.

Success on the trade front was pretty well guaranteed: the negotiation of a new bilateral free-trade agreement with Lima had been wrapped up four months ago – all that remained was the signatures. The agreement covers trade in goods and services, intellectual property, investment and other related areas.

Peru was the city’s fifth largest trading partner in Latin America in 2023.

Hong Kong has been negotiating with a number of economies to reduce or eliminate tariffs and cut down customs and other procedural barriers to draw business, with some degree of success. When the ink is dry, the Peru pact will be the ninth in place, covering 21 economies.