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People's Republic of China, Hong Kong Closer Economic Partnership

ChinaChina
Hong KongHong Kong

Area of Cooperation

Goods, Services and Trade Facilitation

Sign Date

January 1, 2003

In Force Date

December 31, 1969

Summary

i. The Closer Economic Partnership (CEPA) between the People's Republic of China and Hong Kong is a Free Trade Agreement that allows residents and companies of Hong Kong preferential access to the mainland market. The objectives of the agreement, as stated in the legal document, are to strengthen trade and investment between the two sides and promote development. Both parties meet regularly and add supplements to the agreement. The three main areas CEPA covers involve measures for promotion of trade and investment, opening the mainland market to Hong Kong service providers, and the elimination of tariffs on locally manufactured goods. CEPA also encourages foreign investors to establish businesses in Hong Kong to reap the benefits of both the Hong Kong opportunities as well as those in the mainland.

Scope
The People's Republic of China, Hong Kong Closer Economic Partnership is a bilateral agreement.
 
Official Document

                                                               i.      http://www.tid.gov.hk/english/cepa/index.html

 
Rules of Origin

                                                               i.      Change in tariff heading (four digit level)

                                                             ii.      Minimum value content 30% FOB

                                                            iii.      Some manufacturing processes accepted

 
Contingency

                                                               i.      Anti - Dumping : parties commit to not applying them on each other's goods

                                                             ii.      Countervailing Duties : parties commit to not applying them on each other's goods

 
News/Studies

                                                               i.      “Official: CEPA running smoothly”     http://news.xinhuanet.com/english/2007-06/21/content_6274855.htm

                                                             ii.      “Roundup: Hong Kong benefits from enhanced economic cooperation with Chinese mainland”                        http://english.people.com.cn/200706/28/eng20070628_388188.html

                                                            iii.      “CEPA I & II:  Opportunities for Hong Kong Services and Industries”              http://www.tdctrade.com/econforum/tdc/tdc041205.htm

 
Additional Links

                                                               i.      http://www.worldtradelaw.net/fta/agreements/chinhkfta.pdf

                                                             ii.      “Economy of the People’s Republic of China”       http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China

                                                            iii.      “Trade and Industry Department”           http://www.tid.gov.hk/english/cepa/trade_services_requirement.html

                                                           iv.      “Ministry of Commerce of the People’s Republic of China”    http://www.tid.gov.hk/english/cepa/trade_services_requirement.html

                                                             v.      “WTO | China Member Information”      http://www.wto.org/english/thewto_e/countries_e/china_e.htm

                              vi.“Asia Pacific Business: Country Background”  http://www.asiapacificbusiness.ca/backgrounders/pages_section4.cfm?ID_Briefing=1