Hong Kong, China

The Agreement consists of 11 Chapters and 12 Annexes. The Agreement covers the following main subjects:

• Trade in Goods 
• Rules of Origin
• Trade Facilitation
• Sanitary and Phytosanitary Measures (SPS)
• Technical Barriers to Trade (TBT)
• Trade Remedies
• Trade in Services
• Investment/Establishment
• Protection of Intellectual Property (IPR)
• Government Procurement
• Competition
• Trade and Sustainable Development
• Institutional Provisions
• Dispute settlement

Trade in Goods

Industrial Goods and Fish and marine products

Upon entry into force of the Agreement, the Parties abolish all customs duties on imports and exports of industrial goods, including fish and other marine products, originating in an EFTA State or in Hong Kong, China (Chapter 2). 

Agricultural products

The Agreement provides for tariff concessions on processed agricultural products (Annex II). Tariff concessions on basic agricultural products are covered by bilateral agreements concluded between the individual EFTA States and Hong Kong, China.

Rules of Origin

The rules of origin and the methods of administrative cooperation are set out in Annex IV.

Trade Facilitation

The Agreement contains provisions on trade facilitation (Annex V).

Sanitary and Phytosanitary Measures (SPS)

The Agreement foresees that rights and obligations of the Parties in respect of sanitary and phytosanitary measures shall be governed by the WTO Agreement on the Application of Sanitary and Phytosanitary Measures and provides for cooperation and a consultation mechanism in this regard (Art. 2.6).

Technical Barriers to Trade (TBT)

The Agreement foresees that rights and obligations of the Parties in respect of technical regulations, standards and conformity assessment procedures shall be governed by the WTO Agreement on Technical Barriers to Trade and provides for cooperation and a consultation mechanism in this regard (Art. 2.7).

Trade Remedies

The rules regarding state trading enterprises, subsidies and countervailing measures, anti-dumping, global safeguard measures and bilateral safeguard measures are set out in Articles 2.10-2.14.

Trade in Services

Chapter 3 on trade in services covers all four modes of supply of a service, as defined under the GATS, and addresses all services sectors. Separate Annexes dealing with financial services (Annex VIII) and telecommunications services (Annex IX) complement the Chapter. Annex VII requires Iceland, Liechtenstein, Switzerland and Hong Kong, China, to negotiate disciplines on domestic regulation. The Parties’ undertakings in the different sectors are scheduled according to a negative approach whereby Parties individually list their reservations from market access, national treatment or the MFN obligations (Annex X).

Investment/Establishment

Chapter 4 on investment aims at improving the legal framework conditions for investors from the EFTA States and Hong Kong, China investing in each other’s territories in activities not covered by Chapter 3 (trade in services). In Annex XI, Parties specify the reservations from national treatment in country-specific lists on the basis of restrictions in their national legislations.

Protection of Intellectual Property (IPR)

The Agreement sets out in Chapter 5 and Annex XII comprehensive rules for the protection of intellectual property rights. These rules are based on the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and include certain clarifications and improvements over TRIPS.

Government Procurement

The Agreement incorporates the Parties’ right and obligations under the plurilateral Agreement on Government Procurement (Chapter 6).

Competition

In Chapter 7 the EFTA States and Hong Kong, China, acknowledge that certain business practices may restrict competition and thus undermine the benefits accruing from the Agreement. For this purpose, the Parties undertake to cooperate and consult in their dealings with anti-competitive practices.

Trade and Sustainable Development

The Parties recognise that economic development, social development and environmental protection are interdependent and underline that their closer economic partnership can play an important role in promoting sustainable development. In Chapter 8 the EFTA States and Hong Kong, China reaffirm their commitment to multilateral environmental agreements and principles and undertake to uphold levels of protection while recognising the right of each Party to establish its own level of environmental protection.

Institutional Provisions

The Agreement establishes a Joint Committee tasked with supervising and administering the Agreement, as well as with the review of possible further liberalization (Chapter 9).

Dispute Settlement

Chapter 10 contains the rules applicable to the settlement of disputes among the Parties, including through consultations.