Two new agreements – under the framework of the Mainland and Macao Closer Economic Partnership Arrangement (CEPA) – were signed today with the aim of advancing integration of Macao’s development with that of the country as a whole.
The “Investment Agreement” and the “Agreement on Economic and Technical Cooperation” were respectively signed this morning at Government Headquarters by Vice Minister of Commerce, Ms Gao Yan, and Macao’s Secretary for Economy and Finance, Mr Leong Vai Tac.
The two agreements, which come into force from today, are part of a special economic and trade cooperation framework under the “One country, two systems” principle, and were designed in accordance with regulations set out by the World Trade Organization (WTO).
The signing ceremony was held after a meeting of the 2017 CEPA Joint Steering Committee. During the meeting, Ms Gao said the two new agreements highlighted the Central Government’s support for Macao in the development of its economy, adding that such agreements would help to support the city’s long-term sustainability.
Under the Mainland-Macao CEPA framework, trade in goods has realised full liberalisation while trade in services has basically achieved liberalisation, she noted.
Mr Leong stated the new agreements expanded cooperation opportunities in trade between the mainland and Macao. The SAR Government would step up efforts to promote the two new agreements, in order to enable Macao businesses to have a better understanding of the latest agreements, and to make better use of CEPA’s preferential measures.
The “Investment Agreement” brings new content to the CEPA framework, and covers four chapters, 29 articles and three annexes. It deals with topics such as investment access, investment protection and investment facilitation.
In addition, the “Investment Agreement” provides: a mechanism to settle any investment disputes via mutual and non-confrontational consultation; complaint handling procedures; coordination; mediation; and a framework for legal proceedings.
The “Agreement on Economic and Technical Cooperation” has a total of eight chapters with 30 articles. Its covers in aggregate 14 main cooperation areas: tourism; MICE (meetings, incentives, conferences and exhibitions); traditional Chinese medicine; financial services; electronic commerce; environmental protection; legal and dispute resolution services; accounting services; cultural affairs; innovative technology development; education; small- and medium-sized enterprises; intellectual property; and trademark and branding cooperation.
The “Agreement on Economic and Technical Cooperation” has a chapter dedicated to deepening cooperation in economic and trade areas covered by the “Belt and Road” initiative. The agreement establishes a liaison mechanism, communication and exchange channels, and other measures aimed to encourage Macao to take a greater role in the “Belt and Road” initiative.
The Mainland and Macao Closer Economic Partnership Arrangement (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.