ABSTRACT

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Free-trade Agreements between China and Hong Kong: what are the Prospects for Third-country Companies ?

Author: Stéphanie THOMAS & Nicolas HYACINTHE & Maryline SADOWSKY

Type: Free Article : News

ref: 1200577-85

N0:1 of 2005

Pages: 77-85

Description:

Effective as of January 1st, 2004, the free-exchange Agreement called the Closer Economic Partnership Arrangement (“CEPA”), concluded between China and Hong Kong, provides for the elimination of customs duties on 273 products exported to continental China and a preferential opening of the Chinese market to 18 Hong Kong service providers. The CEPA II Agreement, concluded on August 27, 2004, extends from January 1st, 2005, the advantages offered by the CEPA Agreement to 713 new tariff categories of products and provides that 8 new categories of service providers may benefit from favourable treatment.

The CEPA and CEPA II embody China’s decision to open its markets to companies established in Hong Kong, regardless of whether, and this is the main attraction of this Agreement, they are under local or foreign control.

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