A presentation session was held in Macau yesterday about an upgraded version of the Mainland and Macau Closer Economic Partnership Arrangement (CEPA), which will take effect next month.
The Second Agreement Concerning Amendment to the Mainland and Macau Closer Economic Partnership Arrangement (CEPA) Agreement on Trade in Services, aka Amendment Agreement II, was signed in October last year in Macau by the Ministry of Commerce (MOC) and the Macau Special Administrative Region (MSAR) Government.
The Amendment Agreement II will take effect on March 1.
The presentation session was held yesterday at the Macau Tower Convention & Entertainment Centre, with officials from the Ministry of Commerce and several other mainland ministries and commissions attending the event to explain the new CEPA amendments with the aim of enabling Macau’s various sectors to gain a better understanding of the updated version of CEPA. About 380 participants, including officials from the local government’s various public entities as well as those from trade associations, chambers of commerce and other representatives from the business community attended the session.
CEPA, a free-trade-agreement-like arrangement established between two separate customs territories of a single sovereign state, i.e., the mainland and Macau, was officially signed on October 17, 2003, and implemented in January 2004, to further enhance the level of economic and trade cooperation between the two regions.
A previous statement by the Macau government pointed out that between 2004 and 2013, the two sides signed 10 supplements to CEPA, as well as the CEPA Agreement between the Mainland and Macau on Achieving Basic Liberalisation of Trade in Services in Guangdong, the CEPA Agreement on Trade in Services, the CEPA Investment Agreement, the CEPA Agreement on Trade in Goods, as well as the First Agreement Concerning Amendment to the CEPA Agreement on Trade in Services.
Expanding opportunities for Macau enterprises
Fan Shijie, who heads the Ministry of Commerce’s Department of Taiwan, Hong Kong and Macau Affairs, said during yesterday’s session that the new CEPA amendments are expected to achieve positive results in terms of further expanding the scopes of the opening-up of sectors, lowering market access thresholds in areas such as telecommunications, finance, construction and tourism, and also proposing new opening-up measures for cross-border services.
Fan pointed out that the new amendments will support Macau-funded enterprises registered in pilot cities of the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) in choosing Macau law as the one applicable when signing contracts, and also will provide more comprehensive legal protection and more diversified options for Macau enterprises investing in the mainland.
Moreover, Fan highlighted the central government’s support for more Macau enterprises to participate in major exhibitions such as the China International Import Expo (CIIE), the Canton Fair, the China International Fair for Trade in Services (CIFTIS), and the China International Consumer Products Expo (CICPE).
Under the new arrangement, all Macau-made products that comply with CEPA’s specific rules of origin can enjoy zero-tariff policies when being exported to the mainland. Economic and Technological Development Bureau (DSEDT) Director Yau Yun Wah told reporters on the sidelines of yesterday’s event that as of last year, Macau enterprises had exported zero-tariff goods to the mainland worth up to 1.5 billion patacas, saving tariffs of 100 million patacas. As of last year, the bureau had issued 8,833 certificates of service providers to help Macau companies expand business in the mainland.
Macau’s role in national development
Secretary for Economy and Finance Anton Tai Kin Ip said during yesterday’s presentation session that the signing of the amended agreement reflects the continuous expansion of the mainland’s openness to Macau. He described it as a concrete practice of the country’s high-level opening-up in the new era and an important measure to facilitate Macau’s integration into the country’s overall development.
Tai pointed out that the local government will strengthen publicity and promote CEPA policies through multiple channels, contributing to the modernisation of the country while enhancing economic and trade cooperation between Macau and the mainland.
Tai also emphasised the government’s commitment to maintaining close communication and collaboration with the central government’s relevant ministries and commissions, rallying efforts from all sectors in Macau to fully utilise the central government’s policies benefiting Macau, including CEPA.
During the session, officials from various central government ministries and commissions held in-depth discussions on topics such as financial services, legal services, high-tech services, and other professional services. They addressed questions from the industry, helping Macau’s business community gain a deeper understanding of CEPA’s preferential measures and stay updated on the latest developments in mainland policies and regulations.
Secretary for Economy and Finance Anton Tai Kin Ip addresses yesterday’s presentation session about the latest CEPA upgrade at the Macau Tower Convention and Entertainment Centre. – Photo: DSEDT
