The Closer Economic Partnership Arrangement (CEPA) between the
Chinese mainland and Macao is expected to boost foreign investment
inflow to Macao, said Tam Pak Yuen, secretary for economy and
finance of the Macao Special Administrative Region.
"Many foreign investors have visited Macao and studied how to
benefit from the CEPA," Tam said.
He expected these proposed investments to flow in after the CEPA
takes effect on January 1.
"Manufacturing industries, especially apparel, cosmetics and
silver jewelry, will be hot destinations," Tam said.
Tam made the remarks at a press conference for the first meeting
of a joint steering committee for Mainland-Macao CEPA
implementation.
This high-powered body will be a permanent mechanism for Beijing
and Macao to discuss and review regular cooperation issues.
An Min, vice-minister of commerce, said all preparations are
going well and CEPA will start on January 1 as scheduled.
Three topics, including the trade of goods, trade of services
and investment facilitation, were discussed in the first
meeting.
CEPA is actually the same as free trade zones in granting zero
tariffs but is regional economic cooperation between a national
entity and independent tariff areas instead of two countries.
The central government has spent efforts in amending laws and
regulations in conflict with CEPA agreements, An said.
The technical department at customs has completed its tentative
work to upgrade the computers for the identification of products
originating in Macao, An said.
Mainland customs is also working to connect its computer with
Macao departments to share information about Macao products.
Some 311 Macao-made products will be exempt from tariffs when
exported to the Chinese mainland.
This is different from the original 273 because of a modified
system for identifying taxable items. The zero-tariff privilege
will be extended to all goods made in Macao by January 2006.
The mainland imported US$150 million from Macao and exported
US$1 billion to the region in the first 10 months of this year,
according to mainland customs statistics.
The mainland imported US$142 million and exported US$876 million
last year.
The mainland-Macao CEPA was signed on October 17 this year after
the mainland-Hong Kong one on June 29.
The mainland-Macao CEPA shares the same principles as the Hong
Kong agreement and fully reflects the features of Macao's economy
with some minor differences in content.
(China Daily December 30, 2003)
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