HK Officials Explain CEPA 5 Measures

by Mary Swire, Tax-News.com, Hong Kong

22 September 2008

More than 70 Mainland officials in Hong Kong attended a forum this week to brief 300 of the country's traders and professionals on the new liberalisation measures under Supplement V to the Closer Economic Partnership Arrangement and the Guangdong pilot measures.

The forum aimed to enhance the trade and relevant service providers' understanding of the business opportunities arising from the new round of liberalisation measures.

Speaking at the forum this morning, Chief Executive Donald Tsang said CEPA had brought encouraging economic benefits to both the Mainland and Hong Kong.

During the first three years since its implementation in 2003, CEPA created 36,000 new jobs for Hong Kong and brought additional capital investment of HKD5.1bn. It also attracted investment from the Mainland and overseas.

At the end of 2007, more than 900 Mainland enterprises had been granted approval to invest in Hong Kong, with investment amounting to more than USD5.5bn, and at the end of August 2008, more than HKD14.5bn worth of goods had entered the Mainland market making use of the zero-tariff preferential treatment under CEPA, of which 65% was exported to Guangdong.

As for trade in services, more than 2,000 Certificates of Hong Kong Service Suppliers have been issued. Hong Kong traders have enjoyed the benefits brought by CEPA when investing in relevant service industries on the Mainland.

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