The conclusion of the Mainland/Hong Kong Closer Economic
Partnership Arrangement (CEPA) would greatly enhance economic
cooperation and integration between the Mainland and Hong Kong,
said Financial Secretary of Hong Kong Special Administrative Region
Antony Leung Sunday.
Speaking at a press conference held after the CEPA signing
ceremony, Leung said the arrangement would also open preferential
and World Trade Organization plus access opportunities for Hong
Kong products and services in the Mainland.
"Trade and investment between the two places would also be
facilitated as a result of the cooperative measures agreed under
CEPA," the financial secretary said.
Leung, representing the Hong Kong Special Administrative Region
(HKSAR) government, and the Vice Minister of the Ministry of
Commerce An Min, representing the Central People's government,
signed the CEPA at a ceremony held at Government House Sunday.
Chinese Premier Wen Jiabao and the Chief Executive of the Hong Kong
Special Administrative Region (HKSAR) Tung Chee Hwa presided over
the signing.
The CEPA covers three broad areas, namely trade in goods, trade in
services and trade and investment facilitation.
On
trade in goods, the Mainland has agreed to apply zero import tariff
from January 1, 2004 for exports from Hong Kong meeting the CEPA
rules of origin requirement.
The Mainland has also agreed to apply zero import tariff latest by
January 1, 2006 upon applications by local manufacturers for other
codes maintained on China's tariff system and meeting the CEPA
rules of origin.
On
trade in services, a number of sectors will benefit in terms of
additional market access or removal of specific restrictions in the
Mainland market.
They include management consultant services, exhibitions and
conventions, advertising, legal services, accounting services,
medical and dental services, real estate and construction services,
transport services, distribution, logistics, forwarding services,
storage services, tourism, audiovisual, banking, securities and
insurance.
On
the part of Hong Kong, it will undertake to continue to apply zero
tariff for Mainland products and not to introduce new or additional
discriminatory measures against services and service suppliers of
the Mainland.
With regard to trade and investment facilitation, both sides agree
on promoting cooperation in seven areas, namely, customs clearance;
quarantine and inspection of commodities, quality assurance and
food safety; small and medium-sized enterprises; Chinese medicine
and medical products; electronic commerce; trade and investment
promotion; and transparency in law and regulations.
(Xinhua News Agency June 29, 2003)