HONG KONG (XINHUA) – Hong Kong and Mexico have signed an Investment Promotion and Protection Agreement (IPPA) to strengthen mutual economic ties, the Hong Kong Special Administrative Region (HKSAR) government announced yesterday.
The agreement, signed in Davos, Switzerland, on Thursday by representatives of the two sides on the sidelines of the World Economic Forum Annual Meeting, is set to enhance the confidence of investors, expand investment 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.
The HKSAR government’s representative, Secretary for Commerce and Economic Development Edward Yau, said the agreement 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,” Yau said. Under the agreement, the two governments undertake to provide investors of the other side 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.
The agreement also provides for settlement of investment disputes under internationally accepted rules and will enter into force after the fulfilment of relevant internal requirements by both sides.