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WHAT'S NEW
HONG KONG-MAINLAND CEPA II
Since the signing of the first Closer Economic Partnership Agreement (CEPA) and its implementation on January 1, 2004 Hong Kong has seen positive results. Hong Kong’s economic development in 2004 was noted by Hong Kong officials to be largely attributed to the implementation of the CEPA. Also, Hong Kong has benefited from the growth of tourism from the Mainland, and an increase in external trade. Currently, about five million Chinese workers are now working for Hong Kong companies in Guangdong province in Mainland China. And, around 95% of Hong Kong's re-exports originate from, or are destined for, Mainland China. Hong Kong-based investors are benefiting from CEPA’s special arrangements with the mainland that allow them to avoid costly double taxation on a wide variety of major areas including shipping, aviation, land transport and personal taxation.
Now, Hong Kong stands to reap greater economic benefits with the signing of another agreement on August 27, 2004, which will take effect January 1, 2005. This expansion of the previous agreement is referred to as CEPA II and will further liberalize trade in goods and services. CEPA II will apply zero tariffs to an additional 713 goods, adding to the previous 374 goods from CEPA I. Completion of the agreement is expected before October 1, 2004. (More)
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Friday, October 28, 2005 |
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