Developed Markets - Highlight
18 Aug 2017
The EU is Hong Kong’s third largest trading partner after China and ASEAN. A rosier economic environment and the development of a more liberal trading regime in the EU are crucial for the future of HK-EU trade. But, thanks partly to the widespread of multi-cause populism and the reforms aimed at tackling it, the growth of HK-EU trade is more likely to hinge more on how able the two economies are to provide each other with a level playing field.
While populist calls for protectionist policies, largely inspired by perceived income inequality and a misunderstanding of the potential benefits of globalisation, have become an issue across the world, the EU has suffered more than most. The Union, however, may now be on the brink of embracing a more forward-looking approach to trade reform.