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| More business opportunities for overseas firms under Cepa II ( 01/09/2004 ) | |||||||||
The agreement signed between An Min, Vice Minister of Commerce, the Central People's Government and Henry Tang, the HKSAR Financial Secretary on 27 August, provided for further liberalisation measures on trade in goods and services and will take effect on 1 January 2005. The first phase of the Cepa free trade pact came into effect on 1 January 2004. Under Cepa II, the mainland will apply zero tariffs to 713 products, which are on top of the 374 products that have been enjoying zero import tariff status since January 1. For trade in services, the mainland has agreed to grant preferential treatment in eight new areas taking the total to 26 services, and to broaden the liberalisation to 11 of the 18 service sectors to which preferential treatment has already been provided. Among some of the 11 sectors are legal, construction, distribution, transport, accounting and banking services. Mr Tang said that Cepa "adopted a building block approach and provided a mechanism for further liberalisation measures." A recent report by Legal Week news services said that Hong Kong law firm Woo Kwan Lee & Lo had taken advantage of opportunities under Cepa and had created an alliance with Beijing-based Grandall Legal Group, becoming the first SAR-based organisation to form such a partnership. The report added that "the move is closely watched by the various international law firms who see the alliance permitted under Cepa as a potential gateway into the Chinese market which has traditionally been off-limits to them due to restrictive practice rules." Hong Kong companies can engage fully in the mainland market, help overseas firms enter mainland and also help mainland companies enter world markets. The full potential of Cepa, it would seem, comes from the value Hong Kong companies create in linking the mainland and world markets. Foreign companies can also be regarded as a Hong Kong company one year after acquiring majority shares in a Hong Kong company through merger or acquisition. Details in Cepa II provides further trade liberalisation. Related links | |||||||||
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