Mainland and Hong Kong Closer Economic Partnership Arrangement
Encyclopedia
The Mainland and Hong Kong Closer Economic Partnership Arrangement, or Closer Economic Partnership Arrangement (CEPA) for short, is an economic agreement between the Government of the Hong Kong Special Administrative Region
and the Central People's Government
of the People's Republic of China
, signed on 29 June 2003. A similar agreement, known as the Mainland and Macau Closer Economic Partnership Arrangement, was signed between the Government of the Macau Special Administrative Region
and the Central People's Government on 18 October 2003.
Annual supplements have been signed between the Mainland and Hong Kong governments. The most recent, Supplement IV (often referred to as CEPA V), was signed 29 June 2007.
The two agreements and additional supplements were signed in the Chinese language
; the Chinese text is therefore the authoritative text. The Hong Kong government generally provides a courtesy English
translation, as English is one of the official language
s of Hong Kong.
In the full name of "CEPA", the "Mainland
" refers to the customs territory of China.
" To strengthen trade
and investment
cooperation between Mainland China and Hong Kong and promote joint development of the two sides, through the implementation of the following measures :
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and the Central People's Government
Central People's Government
The Central People's Government is the central government of the People's Republic of China in Beijing. According to the 1982 Constitution, "Central People's Government" is synonymous with the State Council.-History:...
of the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, signed on 29 June 2003. A similar agreement, known as the Mainland and Macau Closer Economic Partnership Arrangement, was signed between the Government of the Macau Special Administrative Region
Macau
Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...
and the Central People's Government on 18 October 2003.
Annual supplements have been signed between the Mainland and Hong Kong governments. The most recent, Supplement IV (often referred to as CEPA V), was signed 29 June 2007.
The two agreements and additional supplements were signed in the Chinese language
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...
; the Chinese text is therefore the authoritative text. The Hong Kong government generally provides a courtesy English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
translation, as English is one of the official language
Official language
An official language is a language that is given a special legal status in a particular country, state, or other jurisdiction. Typically a nation's official language will be the one used in that nation's courts, parliament and administration. However, official status can also be used to give a...
s of Hong Kong.
In the full name of "CEPA", the "Mainland
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
" refers to the customs territory of China.
Objectives
Taken from the agreement between Hong Kong and mainland China:" To strengthen trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
and investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
cooperation between Mainland China and Hong Kong and promote joint development of the two sides, through the implementation of the following measures :
- progressively reduce or eliminate tariffTariffA tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s and non-tariff barrier on substantially all the trade in goods between the two sides; - progressively achieve liberalization of trade in services through reduction or elimination of substantially all discriminatory measures;
- promote trade and investment facilitation. "
See also
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- Economy of Hong KongEconomy of Hong KongAs one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong has remained as the world's freest economy,...
- Economy of MacauEconomy of MacauThe economy of Macau has remained one of the most open in the world since its reversion to China in 1999. Apparel exports and gambling-related tourism are mainstays of the economy. Since Macau has little arable land and few natural resources, it depends on mainland China for most of its food, fresh...
- Mainland and Macau Closer Economic Partnership Arrangement
- Special administrative region
- Economic Cooperation Framework AgreementEconomic Cooperation Framework AgreementThe Economic Cooperation Framework Agreement is a preferential trade agreement between the governments of the People's Republic of China and the Republic of China that aims to reduce tariffs and commercial barriers between the two sides...
- Trade blocTrade blocA trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, are reduced or eliminated among the participating states.-Description:...
External links
- Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
- Origins: http://www.chamber.org.hk/info/the_bulletin/april2002/cepa.asp
- Analysis of original document: http://www.chamber.org.hk/info/the_bulletin/aug2003/cepaservices.asp