CEPA IV: Headlines and Fine Print

September 02, 2006 | BY

clpstaff &clp articles

The fourth phase of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the PRC made headline news that trade between the two sides would be further liberalized. But is Hong Kong really given that much of a head-start?

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By Susan Lavender, DLA Piper*, Hong Kong

Marking the third anniversary of the Closer Economic Partnership Arrangement (CEPA) between the People's Republic of China (PRC) and Hong Kong, the third supplement to CEPA (CEPA IV)1 was announced on June 29 2006, following signature on June 27 2006 by the PRC and Hong Kong governments (the Sides). CEPA is a bilateral arrangement for the facilitation of trade and investment between the Sides but it largely consists of the PRC's concessions to Hong Kong since Hong Kong generally does not impose barriers to foreign trade and investment.