Economic Development

Free trade frontier?

January 15, 2015

Asia

January 15, 2015

Asia
David Line

Partner

David was a managing editor for The Economist Group's thought leadership division in Asia. He has been writing about Asian economics, politics and finance for over 14 years. He has led numerous major research projects in the region, focusing on financial services, including most recently a series of papers on free-trade agreements in the region, several studies on the internationalisation of the renminbi, and the landmark Bank of America Merrill Lynch CFO Outlook Asia series. Among other things he is the author of a major study of middle-market companies in Japan and a chapter on the long-term future of the financial services industry in a 2015 Nikkei book charting global megatrends to 2050.

David was formerly Associate Director in Tokyo of The Economist Corporate Network, a membership-based advisory service for senior executives, and a reporter for the EIU's breaking news service, ViewsWire. He holds Masters degrees in Global Finance from NYU Stern School of Business/Hong Kong University of Science and Technology, in Japanese Studies from the School of Oriental and African Studies (University of London), and in Modern History from Oxford University.

A new report published by The Economist Intelligence Unit finds that the vast majority of exporters in Hong Kong who use free-trade agreements (FTAs) signed by the Special Administrative Region benefit from doing so.

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A new report published by The Economist Intelligence Unit finds that the vast majority of exporters in Hong Kong who use free-trade agreements (FTAs) signed by the Special Administrative Region benefit from doing so. Almost 90% of companies polled said the trade pacts they were using had increased exports to corresponding markets, while 61% said they had resulted in new business opportunities. 

These are among the key findings of , the fourth in a series of reports sponsored by HSBC that examines Asian businesses’ attitudes towards FTAs and usage of their provisions. The report is based in part on the findings of a survey conducted in 2014 of 100 senior executives from Hong Kong-based exporters. 

The survey finds that the usage rate of FTAs signed by Hong Kong varies widely. Some 63% of exporters use the Closer Economic Partnership Arrangement (CEPA) with the mainland, for example, while just 12% use the deal with New Zealand. For those that are less well used, some companies may be put off by their perceived complexity or a lack of internal resources.But the results may also suggest that trade pacts do not cover the markets most important to Hong Kong’s exporters.

In addition, while Hong Kong’s government is generally seen as a trusted source of information on trade-related developments, 75% of firms are eager to receive more advice and guidance from the authorities on FTA matters. A majority of companies (52%) also feel officials don’t accurately represent their interests in trade negotiations.

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