The agreement covers trade in services and goods, as well as investment and other trade-related issues, such as the protection of intellectual property. It is fully in line with the provisions of the World Trade Organisation. The Association of Southeast Asian Nations (ASEAN)1 was Hong Kong`s second largest trading partner in merchandise trade in 2019 and fourth in services trade in 2018. Total merchandise trade between Hong Kong and ASEAN amounted to HK$1.018 billion in 2019 and total services trade between the two sides amounted to HK$137 billion in 2018. At the end of 2018, ASEAN ranked fourth among Hong Kong`s overseas direct investment destinations, with a stock of $480 billion. With a stock of HK$533 billion, it ranked sixth among Hong Kong`s sources of foreign direct investment. Hong Kong and the Member States of the European Free Trade Association (EFTA), namely Iceland, Liechtenstein, Norway and Switzerland, signed a Comprehensive Free Trade Agreement (`agreement`) in Liechtenstein on 21 June 2011. This agreement is Hong Kong`s first free trade agreement (FTA) with European economies. This is an important step in our trade relations with the four EFTA States.
It will serve as a catalyst to improve bilateral trade and investment relations between the two sides. Hong Kong signed a comprehensive free trade agreement with the four members of the European Free Trade Association (EFTA) in 2011, which covers issues such as trade facilitation and the application of protective covers. The European Free Trade Association (EFTA) was Hong Kong`s 13th largest trading partner. Merchandise trade between EFTA and Hong Kong amounted to HK$106.1 billion in 2019. In terms of trade in services, EFTA was our 17th largest trading partner, with bilateral trade in services amounting to $13.8 billion in 2018. Investment Agreement Annex Agreement with Brunei Darussalam, Malaysia and Singapore Ancillary Agreements with Singapore The agreements are comprehensive and include trade in goods, trade in services, investment, economic and technical cooperation, dispute settlement mechanisms and other related areas. The agreements will provide legal certainty, better market access and fair and equitable treatment of trade and investment, creating new trade opportunities and further improving trade and investment flows between Hong Kong and ASEAN.