Analysis
The Mainland and Macau Closer Economic Partnership Arrangement (CEPA) has brought about unprecedented opportunities to the Macau Special Administrative Region (SAR) and promoted joint development over the past two decades.
CEPA, a free-trade-agreement-like arrangement established between two separate customs territories of a single sovereign state, 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 places.
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 Liberalization of Trade in Services in Guangdong, the CEPA Agreement on Trade in Services, the CEPA Investment Agreement, and so on.
Lao Keng Chong, director-general of the Macau Innovation Development Research Association, has told Xinhua recently that the implementation of CEPA has further deepened a cooperation mechanism between the mainland and Macau, which serves as a specific example of the advantages of “One Country, Two Systems” in the economic sector.
“The central government’s integrated institutional arrangement has provided a fundamental guarantee for Macau’s long-term prosperity and stability,” Lao said.
Over the years, CEPA has continuously expanded and deepened opening-up in trade in goods, trade in services, investment, and economic and technological cooperation, increasing the flow of goods, personnel, capital and technology between the mainland and Macau.
Chan Tze Wai, acting director of the Economic and Technological Development Bureau (DSEDT), said the arrangement has created unprecedented opportunities for various sectors in Macau.
In terms of trade in goods, all Macau-made products that comply with CEPA’s specific rules of origin can enjoy zero-tariff policies when being exported to the mainland. DSEDT statistics from show that as of last month, Macau enterprises had exported zero-tariff goods to the mainland worth up to 1.4 billion patacas, saving tariffs of over 90 million patacas.
As of date, the bureau has issued 876 certificates of service providers to help Macau companies expand business in the mainland.
Thanks to CEPA’s opening-up policy, enterprises and professionals from Macau in the areas of finance, medical, legal, tourism and social services have been able to operate in the mainland.
Ip Kuai Peng, vice rector of the City University of Macau, pointed out that Macau has enjoyed conveniences in the opening-up of the goods and service trade as well as investment, deepened cooperation with the mainland in economic and technological areas, facilitated two-way trade and investment, and forcefully promoted social integration between the mainland and Macau and their quality economic development.
“This also fully demonstrates the central authorities’ strong support for Macau’s appropriate economic diversification and its integration into overall national development,” Ip added.
Under the CEPA framework, Macau has been able to further open up its market, attracting many mainland and foreign enterprises to set up their branches in the city.
Yu Wai Hang, secretary-general of the Macau Innovation Development Research Association, said these enterprises have not only enriched Macau’s industrial structure and brought a large amount of job opportunities, but also helped with the development of Macau’s service and tourism industries and hence its appropriate economic diversification.
Vong Kok Seng, vice president of the board of directors of the Macau Chamber of Commerce, said CEPA has not only generated economic benefits for the mainland and Macau, but also provided a broader platform for people-to-people exchanges and social cooperation between the two sides.
Chan said the MSAR government has joined the mainland in actively seeking ways to enrich the contents of CEPA, to help Macau better integrate into the overall national development and promote long-term economic cooperation between the two sides.
Ip said that Macau should continue making good use of preferential policies from the central authorities, speed up building Macau into a world tourism and leisure center, a service platform for business and trade cooperation between China and Portuguese-speaking countries, and a base for exchanges and cooperation with Chinese culture as the mainstream where multiple cultures co-exist.
“Macau should continue deepening opening-up and cooperation, attracting foreign enterprises to set up their Asia-Pacific headquarters here, serving as a window for China’s development pattern of dual circulation of domestic and international markets, and making greater contributions to national development,” Yu added. – Xinhua
