HK, Mexico Sign Investment Pact

Secretary for Commerce & Economic Development Edward Yau has signed an investment promotion agreement to enhance investor confidence, expand investment flows and further strengthen Hong Kong-Mexico economic and trade ties.

Mr Yau signed the Investment Promotion & Protection Agreement (IPPA) with Undersecretary of Foreign Trade at Mexico's Ministry of Economy Luz María de la Mora Sánchez on the margins of the World Economic Forum (WEF) Annual Meeting in Davos.

Under the agreement, the two governments will provide each other's investors with fair, equitable and non-discriminatory treatment of their investments, compensation in the event of expropriation of investments and the right to free transfers abroad of investments and returns.

It also provides for settlement of investment disputes under internationally accepted rules.

​ "An IPPA enables investors of the two parties to enjoy corresponding protection of their investments in the host economies, and thus enhance investors' confidence in making investments abroad.

“Hong Kong has been making dedicated efforts to expand its network of IPPAs in order to enhance two-way investment flows and boost our economy," he said.

The commerce chief also attended Hong Kong Night to highlight the city's edge as a trade capital.

Addressing about 200 international political, business and media leaders at a Hong Kong Night panel session, Mr Yau said the city is a highly connected, free and open economy with a level playing field, a world-class workforce and a place with huge potential.

Hong Kong is the best place for business as evidenced by the presence of more than 9,000 overseas and Mainland companies in the city in 2019, of which over 1,500 serve as regional headquarters, he added.

Mr Yau said the city with its unique status under "one country, two systems" and the international connectivity brought about by its Free Trade Agreement network can continue to attract foreign investment and serve as a platform to connect businesses within the region and overseas.

He had earlier met Minister for Industry, Business & Financial Affairs of Denmark Simon Kollerup and Minister of Foreign Affairs of Saudi Arabia Prince Faisal bin Farhan Al Saud.

At the WEF's Informal Gathering of World Economic Leaders: Finding Resilience in a Global Economy with New Rules, Mr Yau and participating ministers and policy makers exchanged views on global economic prospects, in particular the co-ordination of fiscal and monetary policies and possible financial stability risks during the economic slowdown.

He also attended a lunch hosted by the Washington Post and Foreign Policy before the informal gathering.