Hong Kong should grab its chance to build ties with South American businesses by offering sourcing, technological and professional service support, analysts have said as the city leader is set to attend the Asia-Pacific Economic Cooperation summit in Peru’s capital.

The city is expected to sign a free-trade agreement (FTA) with the South American country during Chief Executive John Lee Ka-chiu’s trip to Lima, four months after Financial Secretary Paul Chan Mo-po announced negotiations with Peru had wrapped up.

The city leader told reporters before he departed for Peru on Wednesday that there was “significant room” for Hong Kong and South America to develop trade and economic relations, adding he would use his first official visit to the continent to build ties and promote the city’s strengths.

In 2022, the Hong Kong government began negotiating with Peru on the prospect of eliminating or reducing tariffs, easing customs procedures, boosting market access for trade and investment and pursuing opportunities in intellectual property and e-commerce.

Alice Tsang Sze-wan, principal economist of the Hong Kong Trade Development Council’s global research team, said the city could help Peruvian companies identify business partners and arrange one-stop sourcing and trade-related services given its strong supply chain network and financial services.