Hong Kong is solidifying its role as a crucial trade bridge between South America and mainland China in 2025. Leveraging its global connectivity and duty-free port status, the city is experiencing significant growth in trade with Latin America.
The city's trade with Latin America has seen substantial growth. This includes a 17% increase in merchandise trade, reaching approximately HK$124.3 billion in 2024. Service trade also rose by 24% year-on-year, totaling HK$7.8 billion in 2023.
To strengthen these ties, Hong Kong has signed free trade agreements with Chile, Mexico, and Peru. Additional agreements with other Latin American countries are under negotiation. For example, the agreement with Peru, signed in November 2024, provides Hong Kong service providers in 150 sectors, such as legal and financial services, with better market access and national treatment.
Invest Hong Kong has planned visits to Colombia, Peru, and Argentina in 2025. These visits will involve investment promotion activities with local chambers of commerce. This is aimed at strengthening Hong Kong's presence in Latin America.
In terms of logistics infrastructure, Hong Kong has implemented the Intelligent Port System. This system, known as the Port Community System Project, offers real-time cargo tracking and improves efficiency. This provides a strong foundation for the development of cross-border e-commerce.
Hong Kong has also maintained its leading position in air cargo transport. The city has held the top spot globally for over a decade. This position is further reinforced by the approval of new London Metal Exchange (LME) warehouses in Hong Kong. These warehouses are expected to begin operations on July 15, 2025, facilitating the delivery of metals to mainland China.
These initiatives highlight Hong Kong's commitment to strengthening its role as a key logistics and trade hub between South America and China. It leverages its advanced infrastructure and strategic trade agreements to facilitate trade and investment in the region.