Chinese mainland to extend CEPA trade pact with HKSAR

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Source: CCTV.com | 06-14-2007 09:03

The Chinese mainland is set to sign a deal to extend its existing trade pact with Hong Kong by the end of this month. This comes with an added agreement to boost more trade in services.

The Ministry of Commerce announced on Wednesday that the Chinese mainland will extend the Closer Economic partnership Arrangement, or CEPA, trade pact with the Hong Kong SAR. This is the fourth supplementary agreement since CEPA took effect 3 years ago. Both sides will ink the deal later this month, before the 10 year anniversary of Hong Kong's return to China.

Yao Shenhong, spokesman Chinese ministry of commerce, said, "I'm very glad to announce, that the Chinese mainland will sign the 4th supplementary agreement with Hong Kong SAR by the end of June. The new deal will further boost economic cooperation"

Yao also said the new deal will provide further support to the cross-region services trade and involve the financial sector.

CEPA first came into effect in January 2004. Since then, it has helped Hong Kong companies boost business in the mainland's expanding economy,

A recent Hong Kong-based study has shown that the three-year-old deal has pumped impetus into Hong Kong's economy boosting trade, creating jobs, inducing investment and pushing up tourism.

Analysts believe the new agreement will further promote economic development in Hong Kong, adding to the gradual integration of the SAR's economy with the Chinese mainland.

Editor:Du Xiaodan