Hong Kong Special Administrative Region and Macao Special Administrative Region Closer Economic Partnership Arrangement (HK-Macao CEPA)

 

Introduction

The HK-Macao CEPA is the first Free Trade Agreement signed between Hong Kong and Macao, and is formulated in accordance with the principles and regulations of the World Trade Organization. Content of the Agreement includes various areas such as Trade in Goods, Trade in Services and a Work Programme on Economic and Technical Cooperation, etc. with a view to further promoting economic exchanges between the two sides and creating favorable environment for future regional economic integration, especially in respect of the integration among cities in the Guangdong-Hong Kong-Macao Bay Area. The Agreement is signed on 27 October 2017 between the Financial Secretary of Hong Kong and the Secretary for Economy and Finance of Macao during the “Tenth Hong Kong Macao Cooperation High Level Meeting”, and the liberalisation measures of the Agreement will be implemented from 1 January 2018.

 

Agreement Text

 

 Q&A

  1. Why is there the need for Hong Kong and Macao to sign the HK-Macao CEPA, given that they are both highly open and free economies?
    Although Hong Kong and Macao are both highly open and free economies and personnel exchanges between the two places have always been close, each of the two places has nowadays established its own development mode characterised by its own strengths after over 10 years from its handover to and signing of CEPA with the Mainland. Under the “one country” framework and the general trend of regional economy integration development, it is a very appropriate time to sign an agreement on economic partnership arrangement like CEPA in order to create an investment environment with greater certainty for current and future investors in the two places.

  2. What is included in the HK-Macao CEPA with respect to Trade in Goods?
    With respect to Trade in Goods, apart from the continuation of zero tariffs, the two sides agree not to apply non-tariff measures inconsistent with the WTO rules to goods from the other side.

  3. Any changes in the procedures and operation of Trade in Goods after the signing of the HK-Macao CEPA?
    No changes. Zero tariffs are still available.
     
  4. Are Macao enterprises required to apply for certificates of service suppliers from the Macao Economic Bureau to set up companies in Hong Kong after the signing of the HK-Macao CEPA?
    As the two sides maintain the liberalisation policies for foreign investors, certificates of service suppliers are not required for Macao enterprises investing in Hong Kong.
     
  5. Does the HK-Macao CEPA cover cooperation items of trade and investment facilitation?
    Under the HK-Macao CEPA, there are chapters of economic and technical cooperation regulating the modes and content of cooperation between the two sides on items of common interest such as customs procedures and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, intellectual property, transparency in laws and regulations, etc., and formulating work programmes for the cooperation items.