Hong Kong has issued more than 10,800 certificates of origin covering exports valued at 3.7 billion HK dollars (477.4 million U.S. dollars) within the first two years of implementation of the Chinese mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA).

Hong Kong Financial Secretary Henry Tang made the remarks on Wednesday while presenting the government's 2006-2007 budget to the Legislative Council.

He said within the first two years of implementation of CEPA, Hong Kong's businesses have saved a total of 240 million HK dollars (30.87 million U.S. dollars) in tariffs.

Tang stressed that the signing and implementation of the CEPA with the Chinese mainland has been the most significant development in furthering Hong Kong's economic cooperation with the mainland.

He explained with the inception of its three phases, "we have fully liberalized trade in goods between Hong Kong and the Chinese mainland. As of the second week in February, 2005, Hong Kong and the Chinese mainland had reached agreement on rules of origin for a total of 1,370 products."

In respect of trade in services, the Chinese mainland's markets have also been considerably liberalized under CEPA. Currently, 27 service sectors benefit, and more than 920 Hong Kong Service Supplier Certificates have been issued.

He estimates that the implementation of CEPA in its first two years has brought about the creation of 29,000 new jobs.

The financial secretary believes that the implementation of CEPA III from the beginning of this year will provide further business opportunities for Hong Kong's enterprises and professionals. The government's focus for the year is to ensure the effective implementation of CEPA, he said.

He said that Hong Kong needs a vast hinterland market to promote its economic development. The implementation of the Pan- Pearl River Delta (Pan-PRD) Regional Co-operation Framework Agreement has greatly broadened the scope of HK's cooperation with the Chinese mainland provinces and regions concerned, and will facilitate the use of Hong Kong as a gateway to the international market by the Chinese mainland enterprises in the Pan-PRD region.

Source: Xinhua