Hong Kong and Mexico promote mutual investment
March 5, 2021
On February 24, 2021, the Asia-Pacific-Africa Foreign Relations, Foreign Relations, and Economic Commissions of Mexico’s Senate approved the Investment Promotion and Protection Agreement (IPPA) between the Government of the Hong Kong Special Administrative Region (HKSAR) and Mexico.
IPPAs are negotiated to promote mutual investment between the signatories. Hong Kong has ratified a total of 22 IPPAs, while Mexico has signed 29 of them.
The Investment Promotion and Protection Agreement between Hong Kong and Mexico is set to diversify international relations and protect investors’ interests in the host economies.
During her presentation to the Senate members, the Undersecretary of Foreign Trade of the Ministry of Economy, Luz Maria de la Mora Sanchez, described Hong Kong as the gateway for investment in the People's Republic of China and countries in the Asia Pacific region. The Undersecretary also mentioned Hong Kong’s importance as a vital startup and incubation hub, attractive to Mexican investors.
IPPAs are internationally recognized as tools for promoting cross-border investment and indicate that economies acknowledge the value in attracting investors and enhancing their confidence in ventures.
For Mexican and Hong Kong investors, the IPPA will provide a safety net for their current and future investments, ensuring certainty and fair, equitable, and non-discriminatory treatment. This Agreement provides for the settlement of investment disputes under internationally accepted rules.
Hong Kong investments in Mexico are mainly concentrated in the states of Veracruz, Guanajuato, and Yucatan in the logistics, tourism, and manufacturing industries.
The Mexican Chamber of Commerce in Hong Kong is excited about this Agreement’s development and supports its approval process. We are confident that this mechanism will be a crucial tool for the promotion of bilateral investment. For further information, please visit this link.
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Sources
Avalan en Comisiones Acuerdo Para promover inversiones entre MÉXICO Y Hong Kong. (2021, February 24). Retrieved March 03, 2021, from http://comunicacion.senado.gob.mx/index.php/informacion/boletines/50365-avalan-en-comisiones-acuerdo-para-promover-inversiones-entre-mexico-y-hong-kong.html
México, S. (2021, February 24). Reunión de LAS COMISIONES UNIDAS de RELACIONES Exteriores ASIA-PACÍFICO-ÁFRICA; de Relaciones EXTERIORES; y de economía, del 24 DE febrero De 2021. Retrieved March 03, 2021, from https://twitter.com/senadomexicano/status/1364654939004301312?s=20
