Hong Kong is poised to be a bigger force for regional prosperity

Indeed, all RCEP members, including the economies of the Association of Southeast Asian Nations, are already important trading partners of Hong Kong’s. The city has signed free trade agreements with 13 of the 15 RCEP members. RCEP members accounted for 71 per cent of the city’s total merchandise trade in 2022 and 46 per cent of its total trade in services in 2021.

When Hong Kong comes on board officially as a RCEP member, it will be in an even better position to contribute to the bloc in three critical ways.

Firstly, trade harmonisation can go a long way towards bolstering market access, stimulating export growth and supporting nascent industries across emerging economies.

While Hong Kong has yet to sign free trade agreements with Japan or South Korea, it is already one of the largest overseas markets for Japanese agricultural produce and products. In 2023, South Korea was Hong Kong’s sixth largest trading partner, with trade between them having grown annually by 1.8 per cent from 2019.

By further lowering tariffs, aligning trade regulations and compliance requirements with the bloc, and streamlining documentation and vetting processes, Hong Kong’s membership of the RCEP would facilitate more seamless trade creation and diversification among all the members.

Secondly, Hong Kong could draw upon its strength in financial services and the full range of professional services to complement existing developmental initiatives and meet the financing needs of new ones. Our city has long served as a critical conduit for foreign direct investment from mainland China into Southeast Asia.

Hong Kong is also considered by many Greater Bay Area companies as the first stop outside the mainland, thanks to the city’s strengths in financial,