CEPA II Expands Trade Liberalisation

An agreement reached on August 27 by the Hong Kong Special Administrative Region (HKSAR) Government and the Central People’s Government (CPG) will launch a second phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement, known as CEPA II, effective January 1, 2005.

Under CEPA II, the Mainland will apply zero tariffs to products under an additional 713 Mainland 2004 tariff codes. These cover both existing product and planned production. 

The Mainland has also agreed to grant preferential new treatment in eight new service areas: airport services, information technology services, patent agency services, trademark agency services, job referral agencies, cultural and entertainment services, job intermediaries, and professional and technical qualification examinations.

As well, the Mainland will broaden the liberalisation for 11 of the 18 service sectors to which preferential treatment is already provided under CEPA. These sectors are: legal services, construction services, distribution services, transport services, freight forwarding agency services, medical services, audio-visual services, accounting services, banking services, securities and futures services, and individually owned stores.

The Hong Kong Financial Secretary, Mr Henry Tang, said the HKSAR will encourage the local business sector to take advantage of CEPA. “We will also underline the many business opportunities offered by CEPA in our promotion work to attract more foreign investment to Hong Kong,” he added.

The HKSAR Chief Executive, Mr Tung Chee Hwa, said that his Government’s job is to continue to deepen CEPA. “We are now already thinking about CEPA III and we are not going to let the grass grow under our feet. We’re going to move forward to make sure that Hong Kong’s economy will continue to benefit,” he said.


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