Identify Major Features of the Latest Two Cepas and Comment on Their Possible Impacts
Assignment7 - Identify major features of the latest two CEPAs and comment on their possible impacts.
The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement ever concluded by the Mainland of China and Hong Kong since 2003. CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong. It is also a win-win agreement, bringing new business opportunities to the Mainland and Hong Kong. For Hong Kong, It provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market. It also benefits the Mainland as Hong Kong serves as a perfect "springboard" for Mainland enterprises to reach out to the global market and accelerating the Mainland's full integration with the world economy. As the supplements’ titles imply, we can generally conclude that the major features of 11’s and 12’s will be deepening the liberalization of trade in services and boosting access to Mainland market for Hong Kong service industries respectively.
Supplement VIII to CEPA (deepens liberalization of trade in services)
Supplement VIII to CEPA provides for a total of 32 services liberalization and trade and investment facilitation measures, including 23 liberalization measures in 16 service sectors, and strengthens co-operation in areas such as finance, tourism, innovation and technology. Both sides also agreed to enhance origin criteria under trade in goods, and relax the definition and related requirements of Hong Kong service suppliers.
Of interest to note is that a lot of liberalizations incorporated within Supplement VIII to CEPA were actually touched upon by Vice Premier Li Keqiang. Aside from unfolding a package of 36 measures, the vice premier indicated that the trade in services between the Chinese mainland and Hong Kong should be basically free by the end of the 12th Five-year plan in 2015.
The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement ever concluded by the Mainland of China and Hong Kong since 2003. CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong. It is also a win-win agreement, bringing new business opportunities to the Mainland and Hong Kong. For Hong Kong, It provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market. It also benefits the Mainland as Hong Kong serves as a perfect "springboard" for Mainland enterprises to reach out to the global market and accelerating the Mainland's full integration with the world economy. As the supplements’ titles imply, we can generally conclude that the major features of 11’s and 12’s will be deepening the liberalization of trade in services and boosting access to Mainland market for Hong Kong service industries respectively.
Supplement VIII to CEPA (deepens liberalization of trade in services)
Supplement VIII to CEPA provides for a total of 32 services liberalization and trade and investment facilitation measures, including 23 liberalization measures in 16 service sectors, and strengthens co-operation in areas such as finance, tourism, innovation and technology. Both sides also agreed to enhance origin criteria under trade in goods, and relax the definition and related requirements of Hong Kong service suppliers.
Of interest to note is that a lot of liberalizations incorporated within Supplement VIII to CEPA were actually touched upon by Vice Premier Li Keqiang. Aside from unfolding a package of 36 measures, the vice premier indicated that the trade in services between the Chinese mainland and Hong Kong should be basically free by the end of the 12th Five-year plan in 2015.