Outcomes: Goods
Hong Kong is a sophisticated and wealthy market, and a gateway to consumers in China and other North Asian economies. It has long been a showcase market for Australian producers to establish brand recognition. In 2021, Australia sent around $6.2billion of goods to Hong Kong, our 13th largest goods export market. Top Australian goods exports to Hong Kong are gold, telecommunications equipment and parts, and edible products and preparations.
Hong Kong does not impose tariffs on Australian products, but has the legal right under the World Trade Organization (WTO) to introduce tariffs on a range of products (including gold, which is by far the largest export, valued at $3 billion in 2021). The Australia-Hong Kong Free Trade Agreement (A-HKFTA) ensures that Australia's existing duty-free access is "locked in". A-HKFTA provides certainty for Australian exporters that Hong Kong will continue to provide tariff-free entry into the future.
Australia’s trade in goods with Hong Kong, 2021
| Australia's goods exports to Hong Kong | Australia's goods imports from Hong Kong | |
|---|---|---|
| $10.4 billion | $1.0 billion | |
| % share of total | 3.0% | 0.3% |
| Rank | 7th | 33rd |
Australia's top 10 goods exports to Hong Kong
- Gold = $7 billion
- Telecommunication equipment and parts = $386 million
- Edible products and preparations = $332 million
- Fruits and nuts = $160 million
- Meat (excl beef) = $149 million
- Alcoholic beverages = $143 million
- Pearls and gems = $128 million
- Pharmaceutical products = $114 million
- Zinc = $108 million
- Crustaceans = $104 million
Australia's top 10 goods exports to Hong Kong
- Gold: $3 billion
- Crustaceans: $260 million
- Telecom equipment and parts: $231 million
- Alcoholic beverages: $203 million
- Fruit and nuts: $159 million
- Meat (excl beef): $155 million
- Beef: $120 million
- Jewellery: $119 million
- Medicaments (incl veterinary): $101 million
- Gold coin & legal tender coin: $94 million
Australia's top 10 goods imports from Hong Kong
- Telecom equipment & parts: $ 118 million
- Silver & platinum: $117 million
- Gold: $104 million
- Pearls & gems: $42 million
- Jewellery: $39 million
- Electrical machinery and parts: $34 million
- Computers: $32 million
- Edible products & preparations: $29 million
- Electronic integrated circuits $20 million
- Refined petroleum: $20 million
Based on ABS trade data on DFAT STARS database (ABS catalogue 5368.0, Mar-2022)All currencies AUD.
Traded goods are often subject to mandatory technical regulations in the country of import, and may need to be tested and/or certified for compliance with those requirements. A-HKFTA facilitates trade by reaffirming the commitments Australia and Hong Kong made under the WTO Agreement on Technical Barriers to Trade, and by ensuring greater harmonisation of technical requirements for food products and wine.
The Wine Annex provides new commitments to improve transparency of regulations and labelling requirements for wine. Traders will be able to satisfy wine labelling requirements by including information such as product name, country of origin, net contents and alcohol content in a single field of vision. Traders will be able to meet any additional wine labelling requirements by affixing a supplementary label to the bottle. The Annex does not limit the government's ability to impose other labelling requirements, and standard exceptions for health and safety measures are included. Standardising labelling requirements reduces uncertainty for producers and exporters, lowering the costs of doing business.
The Food Products Annex aims to facilitate trade in all food products, including by promoting the use of international standards, and providing a mechanism to enhance collaboration between regulators. It will also facilitate speedy resolution if consignments of perishables are delayed at the border. The Annex requires regulation of food products and food safety assurances to be based on risk assessment procedures in line with applicable international standards, and for respective regulatory bodies to share information on their requirements. Australia's ability to set requirements and standards, including for biosecurity, quarantine, and certification for food products will not be affected.
Hong Kong: a regional food and wine trading and distribution hub
With a wealthy population and large tourist visitor numbers, Hong Kong is a substantial market for food and beverage products. It is also an ideal market for showcasing products and regarded as a regional re-export hub.
Hong Kong relies heavily on imports, with 95% of food and beverage products being imported from around the world. Australia is already one of the top supplying countries for high quality meat, fruit and vegetables to Hong Kong, for its high-end retail and foodservice sectors. Of Hong Kong's total chilled beef imports in 2021, Australia was the third largest supplier (10% volume share), preceded by the US (40%) and Brazil (29%). The region's increasing focus on identifying quality, safe and reliable foods presents major opportunities for Australian food sectors.
Australian wines have also built a strong presence in Hong Kong with industry recognition for their quality and regional identity. Australia exported 8million litres of wine, valued at $186million, to Hong Kong in 2021-22. This was a decline of nine percent, after exports nearly doubled in 2020-21. 11% of Hong Kong's imported wines come from Australia, making Australia the third largest wine exporter in Hong Kong after France (43%) and the United Kingdom (14%), a growth rate of 131.3% on the previous year.
Since the elimination of wine duties in 2008, Hong Kong has become a regional wine trading hub for Asia. About 26% of the imported wines into Hong Kong were re-exported in 2021.