Hong Kong and Mexico signed a bilateral Investment Promotion and Protection Agreement (IPPA) to strengthen mutual economic ties, the Hong Kong Special Administrative Region (HKSAR) government announced on Friday, Jan. 24.
The agreement, signed in Davos, Switzerland, one day earlier by representatives of the two sides on the sidelines of the World Economic Forum Annual Meeting, is intended to enhance the confidence of investors, expand capital flows and further strengthen the economic and trade ties between the two places, the HKSAR government’s Trade and Industry Department said in a press release.
HKSAR Secretary for Commerce and Economic Development Edward Yau said the agreement enables investors of both regions to enjoy corresponding protection of their investments in the host economies, thus enhancing investors’ confidence.
“Hong Kong has been making dedicated efforts to expand its network of IPPAs in order to increase two-way investment flows and boost our economy,” Yau said.
Under the new agreement, the two governments commit to provide investors of the other side with fair, equitable and nondiscriminatory treatment of their investments, compensation in the event of expropriation of investments, and the right to free transfers abroad of investments and returns.
The agreement also provides for the settlement of investment disputes under internationally accepted rules.
It will enter into force after the fulfillment of relevant internal requirements by both sides.
The IPPA with Mexico is the fourth such agreement that this term of the HKSAR government has signed since taking office in July 2017.
The other three were with the Association of Southeast Asian Nations (ASEAN), Australia and the United Arab Emirates.
It is also the 22nd investment agreement that Hong Kong has signed with a foreign economy.
The other foreign economies with which Hong Kong has signed an IPPA are Austria, the Belgo-Luxembourg Economic Union, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, South Korea, Kuwait, the Netherlands, New Zealand, Sweden, Switzerland, Thailand and Great Britain.