The Secretary for Economy and Finance, Mr Leong Vai Tac, and Vice Minister of Commerce, Mr Fu Ziying, co-chair the first meeting of the Commission on Economic and Trade Cooperation between Mainland and Macao.
The Ministry of Commerce of the People’s Republic of China and the Macao Special Administrative Region (SAR) Government agreed today to introduce 19 measures to foster economic and trade ties between the mainland and Macao.
The new measures were announced after the first meeting of the “Commission on Economic and Trade Cooperation between Mainland and Macao”. The meeting, held at the Government Headquarters of Macao, was co-chaired by Vice Minister of Commerce, Mr Fu Ziying, and the Secretary for Economy and Finance of the Macao SAR, Mr Leong Vai Tac.
Following the meeting, the two officials signed a new document – under the framework of the “Mainland and Macao Closer Economic Partnership Arrangement” (CEPA) – titled “Agreement on Trade in Goods”. Its terms will become effective from 1 January 2019.
During today’s meeting, Mr Fu – who is also designated China International Trade Representative – said the Ministry would make fuller use of the Commission mechanism in order to enhance conditions beneficial to liberalisation of trade in services and investment. This would enable Macao businesses to enjoy further preferential market access to the mainland.
Mr Fu also mentioned a series of measures to enhance economic cooperation in both directions, including further measures to promote liberalisation of trade in services within the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area); and support for Macao to continue taking part in the China International Import Expo.
In his remarks, Secretary Leong said he believed the Commission would facilitate progress in terms of further integrating Macao’s development with the country’s overall development. The new body would also help propel the city’s economic diversification effort; and help advance Macao’s position as a commercial and trade cooperationservice platform between China and Portuguese-speaking countries (known as the “Platform” policy).
The Commission on Economic and Trade Cooperation between Mainland and Macao had been established to advance cooperation channels between the two sides. The body is to incorporate task groups to coordinate effort between the two sides on major economic and trade initiatives such as the “Belt and Road” initiative; the Greater Bay Area; and the enhancement of Macao’s “Platform” policy.
The signing of the “Agreement on Trade in Goods” under the CEPA framework marked completion of a goal of achieving enhancement to Mainland-Macao CEPA matters as outlined in the country’s13th Five-Year Plan.
The CEPA update aims to create a more comprehensive regulatory framework to encourage movement of goods between the two places. Highlights of the new agreement include a chapter dedicated to measures for facilitating trade in goods within the Greater Bay Area, and to enhance movement of goods under joint inspection protocols between different customs authorities.
CEPA was initiated in 2004, with the aims of promoting the mutual economic prosperity and development of the mainland and the Macao SAR, and of enhancing the level of economic and trade cooperation between the two places. It covers three economic and trade areas, namely Trade in Goods, Trade in Services, and Trade and Investment Facilitation.
As of 30 November 2018, the Macao Economic Services had issued 5,418 CEPA certificates of origin, of which 4,793 had been exercised, involving products with a total export value of approximately 940 million patacas, generating an estimated saving – in what would otherwise have been cross-boundary tariffs – amounting to some 66.5 million patacas.
Goods covered by the certificates included cement, textiles and clothing, yarn, plastic bags, recordable compact discs, printing ink, food and beverage products (confectionery, biscuits, nuts, coffee beans, coffee powder and distilled water for human consumption), refined copper foil, electrical conductors, chemicals (thinners, glue, salt of tetracyclines, etc), postage materials, ribbons for typewriters, footwear, crude glycerol, recycled plastics, cosmetic products, other industrial materials, monocarboxylic fatty acids and fibreglass cloth, etc.
