CEPA Amendment Signed

Chief Executive Carrie Lam today witnessed the signing of the Agreement Concerning Amendment to the Mainland & Hong Kong Closer Economic Partnership Arrangement (CEPA) Agreement on Trade in Services.

The amendment agreement, which will enhance the level of liberalisation on trade in services of the Mainland for Hong Kong under the CEPA framework, was signed by Financial Secretary Paul Chan and Vice Minister of Commerce Wang Bingnan.

It updates the commitments on liberalisation and facilitation of trade in services under the Agreement on Trade in Services implemented in June 2016.

In response to the Hong Kong business community's proposals for more participation in the development of the Mainland market, the amendment agreement lowers the market access thresholds in the Mainland for Hong Kong enterprises and professionals.

It introduces new liberalisation measures in several important services sectors such as financial services, legal services, construction, testing and certification, television, motion pictures and tourism services.

The measures will make it easier for Hong Kong service suppliers to set up enterprises and develop business in the Mainland, allowing more Hong Kong professionals to obtain qualifications to practise in the Mainland, and allowing more of Hong Kong's quality services to be provided to the Mainland market.

Liberalisation measures include removing or relaxing restrictions on equity shareholding, capital requirements and business scope in the establishment of enterprises; relaxing qualification requirements for provision of services by Hong Kong professionals; and relaxing the quantitative and other restrictions for Hong Kong's exports of services to the Mainland market.

Additionally, the amendment agreement introduces some liberalisation measures for pilot implementation in the nine Pearl River Delta municipalities of the Guangdong-Hong Kong-Macao Greater Bay Area.

For example, in the tourism services sector, the 144-hour visa-exemption transit policy would be enhanced for foreign group tours entering the Pearl River Delta Area and Shantou from Hong Kong by increasing the number of inbound control points and expanding the area they are allowed to stay in.

The measure can facilitate Hong Kong's tourism trade to develop more multi-destination products targeting foreign visitors and attract more overseas travellers to visit Hong Kong and the Mainland via Hong Kong.

The amendment agreement will be implemented on June 1, 2020.

Click here for details on CEPA.