Closer Economic Partnership Arrangement between HK & Macau can further enhance economic co-operation and development between both places and Mainland China.
The Hong Kong government announced on 9 October 2015 that Hong Kong will negotiate the establishment of Free Trade Agreement (FTA) with the Macao government, namely a Hong Kong and Macao Closer Economic Partnership Arrangement (HK-Macao CEPA). The agreement aims to further enhance the two places’ economic co-operation and development.
The arrangement will cover mutual commitments including: binding zero-tariff, minimising non-tariff barriers, avoiding trade remedies, customs facilitation, liberalisation of trade in services, and dispute settlement mechanism.
Both HK and Macao have entered into a separate CEPA framework with the Mainland China. When the HK-Macau CEPA is established, three places will be brought on a common platform to further facilitate trade and investment in the Greater China region.
Hong Kong Government announced that Hong Kong and Macao will soon commence negotiations on a free trade agreement (FTA), namely the Hong Kong and Macao Closer Economic Partnership Arrangement (HK-Macao CEPA).
“Establishing the HK-Macao CEPA would further enhance economic co-operation and development of the two places. At present, Hong Kong and Macao have each entered into a separate CEPA with the Mainland. After the establishment of the HK-Macao CEPA, the three places may build upon those CEPAs to establish a new, common platform to advance further liberalization and facilitation of trade and investment in the ‘Greater China’ region,” the Government spokesperson said.
The HK-Macao CEPA will cover the following key elements:
a. commitment to bind tariff at zero;
b. minimizing non-tariff barriers and avoiding imposing trade remedies including anti-dumping, safeguards, and countervailing measures;
c. customs facilitation procedures;
d. liberalization and facilitation of trade in services;
e. liberalization, protection, promotion and facilitation of investment;
f. co-operation in the area of intellectual property; and
g. legal and institutional arrangements and dispute settlement mechanism.