Jakarta. Hong Kong is optimistic about its application to the world’s largest trading bloc, the Regional Comprehensive Economic Partnership (RCEP).

Hong Kong has submitted a formal request to be part of the RCEP. Although work is pretty much in progress, the special administrative region looks forward to the major tariff elimination that the trade pact will bring if accepted.

“We [Hong Kong] are very optimistic because we have all of the good foundations. We also meet the criteria to join the RCEP,” Mandy Ng, the associate director for business development at Hong Kong Trade Development Council (HKTDC), told the Jakarta Globe in Jakarta on Wednesday.

The RCEP encompasses the 10 ASEAN member states, China, Japan, South Korea, Australia, and New Zealand. The RCEP will ultimately eliminate up to 90 percent of the tariffs on the goods traded within the bloc over 20 years of coming into force. This trade deal is now in effect for all of its signatories and is open to other countries looking to be an RCEP member.

Mandy said Hong Kong had been maintaining close economic ties with ASEAN members. The robust trade with ASEAN is expected to boost the chances of Hong Kong being accepted into the RCEP. She added: “ASEAN is our [Hong Kong’s] second-largest trading partner after China.” 

“The RCEP will lift many barriers. ... By joining the RCEP, Hong Kong can show its advantages of being an international financial center and an international legal dispute [resolution] center,” Mandy told the Globe.

Satvinder Singh, the deputy secretary-general for the ASEAN Economic Community, not long ago said that the RCEP accession rules were in the works, and would be set for completion by next year. 

"We are at this stage of preparing the groundwork for the accession rules. We are very quick in finalizing them. Once that is done and finalized, it will lead to the start of the negotiations of potential accession by the respective countries,” Singh told reporters in Jakarta on Oct. 11.

Aside from Hong Kong, Sri Lanka is also aiming for an RCEP membership. 

ASEAN reported that its merchandise trade with Hong Kong totaled $133.4 billion in 2022. This puts Hong Kong as ASEAN’s seventh-largest trading partner.

The Trade Ministry data showed that Indonesia-Hong Kong trade totaled $5.9 billion in 2022. However, Indonesia posted a trade deficit worth $16.6 million with Hong Kong that year. Indonesia mostly exported coal, briquettes, and jewelry, among others, to Hong Kong. Jakarta’s top imports from the special administrative region included telecommunication equipment as well as iron scrap, to name a few.