Australian companies will find it easier to compete and food and wine producers will get market access locked in to Hong Kong in a free trade deal signed on Tuesday.
It will be the third free trade deal waiting for the new parliament to sign after the May federal election, with the Indonesia and Peru agreements also ready to be ratified.
Trade Minister Simon Birmingham signed the deal with Hong Kong in Sydney.
"Under this agreement zero tariffs will be locked-in on goods, market access will be guaranteed for services suppliers, and conditions for two-way investment will be significantly improved," Senator Birmingham said.
While exporters will benefit, the deal opens up better market access for services companies.
Hong Kong is home to the largest concentration of Australian businesses operating overseas anywhere in the world, and there was $18.8 billion worth of trade between the two economies in 2017/18.
Senator Birmingham said hundreds of Australian firms competing across the finance, construction, communications, hospitality, education, retail, logistics and professional services sectors will get better access to Hong Kong.
"Australia now regularly records trade surpluses thanks in part to the trade deals we've done with our major partners," he said.
"In fact, last calendar year was the first time in 46 years that every single month was a trade surplus."
Hong Kong was Australia's fifth largest source of foreign investment at the end of 2017 with $116.6 billion invested. In the same year, it was the 10th largest destination for Australian foreign investment abroad at $47.4 billion.
Parliament will have to ratify the deal, but it is unclear whether Labor will support it in its current form.
Labor opposes the inclusion of investor-state dispute settlement clauses in free trade deals, which allow companies to sue governments.
"It would be reckless and irresponsible of Bill Shorten if he were to walk away from these agreements or try to renegotiate them, putting in jeopardy the benefits for Australian exporters," Senator Birmingham said.