Wednesday, July 2, 2003
Hong Kong and China signed a landmark free trade agreement, which aimed to boost the Asian financial center as it recovers from the SARS crisis.
Chinese Premier Wen Jiabao arrived in Hong Kong few days earlier and to celebrate sixth anniversary of Hong Kong's 1997 return from British to Chinese sovereignty. The severe acute respiratory syndrome (SARS) outbreak was Hong Kong's biggest crisis since the handover, by many estimates, and Hong Kong residents suffering a downturn that has pushed unemployment to a record 8.3 percent would welcome any boost to the economy. "The high unemployment rate and the rising fiscal deficit, for example, are all symptoms of an unhealthy economic structure," Wen said.
The Closer Economic Partnership Arrangement (CEPA), which many see as a precursor to more aid from Beijing, will eliminate import tariffs on many goods made in the territory and is expected to save its exporters billions of Hong Kong dollars. 273 kinds of Hong-Kong origin goods would enjoy zero tariffs in the China market and thousands more products will enjoy zero tariffs in 2006.
CEPA is China's first free trade deal and covers a range of items and industries. Last year, Hong Kong's domestic exports to China amounted to HK$41.4 billion (US$5.3 billion), just below HK$41.9 billion to the US, Hong Kong's largest domestic export market.
By: DocMemory
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