Macao, Hong Kong sign CEPA draft to promote trade, investment

Macao and Hong Kong signed a draft of Closer Economic Partnership Arrangement (CEPA) and the final agreement will be clinched hopefully by the end of this year, Macao's financial chief said on Friday.

The draft was signed during the 9th meeting of high-level cooperation between Hong Kong and Macao by representatives from the two sides.

The content includes trade of goods and services, promotion and facilitation of investment, intellectual property rights, with a purpose to promote economic integration and trade development between Macao and Hong Kong, and strengthen their comprehensive competitiveness.

Macao's Secretary for Economy and Finance Leong Vai Tac said the signing of the draft CEPA will make the best use of Macao and Hong Kong's advantage as free ports and promote the opening-up of investment environment in China's two special administrative regions (SARs).

This agreement and the existing CEPAs between Macao, Hong Kong and the Chinese mainland will produce positive and superimposed effects with each other, he added.

In terms of trade of goods, the draft says both SARs will guarantee a zero-tariff policy for each other, with less non-tariff barriers, no anti-dumping nor countervailing measures. The two sides will also facilitate the customs clearance and further promote the mutual trade of goods.

In terms of trade of services, the detailed measure for opening-up of service industry is under further discussion.

But the two sides will seek high-level opening-up in this area and make substantial commitment beyond the one made in World Trade Organization. The CEPA does not cover the arrangement of job and migration policies.

During the meeting, the two sides also agree to establish a working group for the promotion of economic cooperation between Macao and Hong Kong, whose mission is to deepen the partnership in areas such as trade, tourism, logistics services, foreign direct investment, etc. Endit