Press Release - June 21, 2004

Canadian businesses interested in partnering with Hong Kong companies under the framework of the Hong Kong-China free trade agreement, �Closer Economic Partnership Arrangement� (CEPA), would be able to enjoy excellent business opportunities and immense benefits for their ventures in the Mainland China market, the Director of the Hong Kong Economic and Trade Office (Canada) (HKETO), Mr Bassanio So, said today (June 21) when he launched a large-scale CEPA exhibition in Toronto.

Entitled , the exhibition highlights the numerous avenues that overseas companies, including those from Canada, could take under the CEPA framework that China exclusively provides market liberalization commitments towards Hong Kong companies, by eliminating tariffs on 90% of Hong Kong goods exported to China, providing preferential treatment to Hong Kong service providers in a total of 18 major service sectors and simplifying cross-border trade between Hong Kong and China

Speaking at the launch of the CEPA exhibition at the Metro Toronto Convention Centre, Director So said CEPA would enable Canadian companies partnering with Hong Kong earlier access to the Mainland China market, ahead and beyond China�s World Trade Organization (WTO) commitments and the benefits would be immediate.

�The unique economic benefit of CEPA is that it has good potential to open up many new business opportunities in the Mainland China for overseas companies partnering with Hong Kong,� Mr So said.

�The zero import tariff preferential treatment would, in particular, be attractive to Hong Kong manufacturers of high-end, brand name products, or manufacturing processes with high value-added content or substantial intellectual property inputs. This would mean gaining higher profit margin when they compete with those non-Hong Kong companies.�

Explaining other CEPA benefits, the HKETO Director added that the WTO-plus
market liberalization measures for trade in services would give Hong Kong enterprises and their overseas partners a �first-mover� advantage, which means that they would enjoy the �early bird� privilege in entering the China market as compared to those non-Hong Kong companies.

Apart from Director So, also officiating at the launch of the were the Minister of Veterans Affairs, the Hon. John McCallum, Chinese Consul General in Toronto, Ms Chen Xiaoling; Member of Provincial Parliament and Parliamentary Assistant to Ontario Minister of Economic Development and Trade, Mr Tony Wong; and the presidents of various major Chinese business associations in the Greater Toronto Areas.

The exhibition is an integral part of Hong Kong�s contribution to the in which the HKETO and Invest HK have actively participated as Diamond Sponsors and assisted in arranging special guest speakers from Hong Kong and special sessions and displays hosted by Invest HK to share with Canadian businesses their experiences and practical advice in doing business in Hong Kong and China.

The two special guests speakers from Hong Kong are the President of the Canadian Chamber of Commerce in Hong Kong and Chief Executive Officer of Sun Life Financial (Hong Kong) Limited, Ms Janet DeSilva, and the President of ICS Trust (Asia) Limited, Ms Elizabeth Thomson.

At the opening luncheon, Ms DeSilva shared with participants the success story of Canadian businesses in Hong Kong and how they had taken advantages of Hong Kong to enter China and succeeded. Ms Thomson, who would present three sessions on June 22, 24 and 25, would cover such topics as managing partner relationships, providing practical advice when considering production in China, and analyzing the various China risks facing companies as they develop their business in China.

At their sessions, the Principal Consultant of Invest HK, Ms Shirley Wong, and the Assistant Business Matching Manager of the Hong Kong Trade Development Council in Canada, Ms Lily Kam, also offered trade and investment advice to Canadian companies interested in entering the Hong Kong/China market.

The CEPA exhibition would be put on display tomorrow at the Conference venue at the National Trade Centre, at Markham Civic Centre on June 23 and the Living Arts Centre in Mississauga on June 24. It would be taken on a tour later in the year and early next year to various major cities in Canada including Vancouver, Montreal, Quebec City, Calgary, Edmonton, Ottawa and Winnipeg.

Organized by the Confederation of Greater Toronto Chinese Business Association, the (www.traderoadtochina.com) , would continue until June 25 in Toronto, Markham, Mississauga and Richmond Hill.

For more information on the benefits of CEPA, please visit HKETO website: www.hketo.ca


For further information, please contact John Tam, Chief Information Officer at (416)924-5544, email [email protected] or Elison Chu, Senior Information Officer, [email protected]