Hong Kong has signed a free trade agreement with Peru, concluding two years of negotiations with the South American nation.

While Chief Executive John Lee and Peruvian President Dina Boluarte looked on, Secretary for Commerce and Economic Development Algernon Yau and his Peruvian counterpart, Ursula Desliu Leon, inked the much-anticipated deal.

The FTA will take effect after both sides have completed their respective internal procedures.

This represents Hong Kong’s ninth free-trade agreement, and the 21st economy that the SAR has struck a pact with.

According to the SAR government, over 150 services sectors will benefit from commitments made by Peru.

Some examples include professional, transport, financial, recreational and cultural services.

Lee had earlier pledged to provide a transparent and favourable platform for Hong Kong investors wishing to set up shop in Peru.

Peru is Hong Kong’s fifth largest trading partner in Latin America with bilateral trade reaching HK$5.2 billion last year.

Peruvian exports to Hong Kong accounted for only one third of that total, and producers here are keen to bump up shipments of popular products such as fruits and vegetables, as well as fish meal.