The negotiation between the Chinese mainland and Macao on comprehensively upgrading Closer Economic Partnership Arrangements (CEPA) has entered its final stage, with an upgraded version expected to be signed at the end of this year, a statement by Macao’s Office of Economy and Finance said Wednesday [27 September 2017]…Full Article: ECNS.cn Sept 2017

Key Point

  • The upgraded CEPA with Macau will focus on liberalizing investment regulations and promoting Macau’s participation in the Belt and Road Initiative.

ChinaAg Comments

  • In 1 June 2016, updated CEPA trade agreements with Hong Kong and Macau came into effect.
  • In November 2015, mainland China and Macau signed a new CEPA trade agreement.
  • In October 2015, it was announced that Hong Kong and Macau would negotiate their own separate CEPA agreements with mainland China.
  • In October 2003, mainland China and Macau signed their own Closer Economic Partnership Arrangement (CEPA). It went into effect in January 2004.
  • In 2001 there was concern that China’s accession to the World Trade Organization (WTO) would undercut Hong Kong’s lucrative trade relations with the mainland. The worry was that WTO member states would be able to out-compete Hong Kong for the Chinese import market once China agreed to lower its import tariff regime in line with WTO membership requirements. In order to shore up Hong Kong’s status as a trade hub, China and Hong Kong signed the Closer Economic Partnership Arrangement (CEPA) in 2003, an agreement that laid the groundwork for a zero-percent import tariff rate between the two systems. CEPA guaranteed that commercial trade between Hong Kong and the mainland took precedence over any foreign agreements that could potentially disrupt the one country, two systems principle.

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