Xinhua News Agency, Hong Kong, August 19 (Reporter Liu Ning) — The Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region (HKSAR) Government, Gregory So, stated on the 19th that Hong Kong is exploring the establishment of a Closer Economic Partnership Arrangement (CEPA) with Macau, which holds significant strategic importance for the development of both regions.
At the welcome dinner for the "Cross-Strait and Hong Kong-Macau Economic and Trade Forum" held that day, Mr. So noted that if bilateral free trade agreements exist among the Mainland, Hong Kong, and Macau, the three parties can build a new platform for free trade on this foundation. This would further open and facilitate mutual trade and investment, ultimately contributing to the integration of the Greater China economic region in the long term.
The Mainland has already signed CEPA agreements with both Hong Kong and Macau. While Hong Kong and Macau are both Special Administrative Regions of the country, there is currently no bilateral trade agreement between them.
Mr. So stated that Macau has been an important trading partner for Hong Kong for many years. From 2010 to 2014, bilateral trade in goods between Hong Kong and Macau grew at an average annual rate of 22%, while trade in services grew at an average annual rate of 18% from 2009 to 2013.
Hong Kong and the Mainland signed the CEPA (Closer Economic Partnership Arrangement) in 2003, followed by several supplementary agreements. Last year, under the CEPA framework, the Agreement on Achieving Basic Liberalization of Trade in Services in Guangdong with Hong Kong was signed.
Mr. So mentioned that these liberalization measures have been implemented since March 1 of this year, allowing the Mainland to take the lead in realizing basic liberalization of trade in services with Hong Kong in Guangdong. He added that they will continue to actively advocate for further market access in the Mainland to achieve the objective of basic liberalization of trade in services between the entire Mainland and Hong Kong by the end of this year.
Regarding economic and trade relations with Taiwan, Mr. So noted that Hong Kong and Taiwan established the "Hong Kong-Taiwan Economic and Cultural Co-operation and Promotion Council" and the "Taiwan-Hong Kong Economic and Cultural Co-operation Council" in 2010, respectively, providing a communication platform for the two regions. The two councils have held five joint meetings to date, promoting economic and trade cooperation in various fields, including trade, investment, and tourism.
From 2010 to 2014, the volume of re-export trade between the Mainland and Taiwan via Hong Kong grew at an average annual rate of 8%. In 2014, the total value of re-export trade between the two sides through Hong Kong reached USD 37.7 billion, an increase of nearly 9% year-on-year.
The "2015 Cross-Strait and Hong Kong-Macau Economic and Trade Forum," themed "Innovation: Technology and Cultural Creativity," will be held on August 20 at the Hong Kong Convention and Exhibition Centre. This is the fourth consecutive year the forum has been hosted.