ENG-2004 — Page 162

128 Commerce and Industry

HKSAR Government have held a series of high level and senior official meetings since May 2004. The two sides signed the record of consultations on August 27, 2004 and the Supplement to CEPA (known as CEPA II) on October 27, 2004. Under CEPA II, the Mainland agreed to apply zero tariff to new products under 713 Mainland 2004 tariff codes, including goods currently being produced in Hong Kong (529 tariff codes) and planned to be produced (184 tariff codes). Products under existing productions will enjoy zero tariff from January 1, 2005, whereas those planned to be manufactured will enjoy zero tariff upon confirmation by both sides that they have come into production. The Mainland also agreed to broaden liberalisation in 11 service sectors5 already covered under CEPA and introduce liberalisation measures in eight new areas6.

The establishment and implementation of CEPA under the framework of the WTO will further promote trade and investment flows, as well as exchanges of talent, capital and technology, between Hong Kong and the Mainland, which would be mutually beneficial and conducive to sustained economic growth. Since the announcement of CEPA, the Government has launched a strong awareness and publicity campaign to promote the business opportunities brought about by CEPA to local, foreign and Mainland investors.

Liaison with the Mainland

China formally acceded to the WTO on December 11, 2001. It is generally expected that China's broad market-opening commitments for accession to the WTO, as well as the enhanced accessibility to overseas markets as provided for under the WTO agreements, will boost the Mainland's overall economic growth. The Mainland is Hong Kong's largest trading partner and there is a strong economic link between the two places. The Mainland's accelerated economic growth is expected to usher in enormous business opportunities for Hong Kong. The anticipated surge in trade flow and the improvement of the investment environment in the Mainland brought about by China's accession to the WTO should help boost Hong Kong's external trade and intermediary services. In addition, CEPA will open up many business opportunities in the Mainland for Hong Kong businessmen, and enhance the attractiveness of Hong Kong to overseas investors.

The Government is committed to facilitating businessmen's efforts in tapping the Mainland market, particularly the opportunities brought about by China's accession to the WTO and by CEPA. It maintains close contact with the Mainland authorities at different levels through various government bureaux and departments, the Beijing Office of the HKSAR Government, the Hong Kong Economic and Trade Office in Guangdong and quasi-government bodies like the Hong Kong Trade Development Council (TDC). Regular high-level communication is also achieved through

5

These include legal, construction, distribution, transport (including road passenger and maritime), freight forwarding, medical and dental, audiovisual, accounting, banking, securities and futures, and individually owned stores.

These include airport, information technology, patent agency, trade mark agency, job referral agency, job intermediary, cultural, and qualification examinations for professionals and technicians.