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.
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). The A-HKFTA ensures that Australia's existing duty-free access is "locked in" and provides certainty for Australian exporters that Hong Kong will continue to provide tariff-free entry into the future.
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 also facilitates speedy resolution if consignments of perishables 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 is not 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 a top supplier of high quality meat, fruit and vegetables for its high-end retail and foodservice sectors. Australian wines have also built a strong presence in Hong Kong with industry recognition for their quality and regional identity. The region's increasing focus on identifying quality, safe and reliable food suppliers provide major opportunities for Australia’s food and beverage sectors.