The Closer Economic Partnership Arrangement (CEPA) between Mainland China and Hong Kong: Legal and Economic Analyses

Publication Type

Book Chapter

Version

submittedVersion

Publication Date

2004

Abstract

On 29 June 2003, the Central Government of the People's Republic of China (the Mainland) and the Hong Kong Special Administrative Region (HKSAR) signed the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). As the first Regional Trade Agreement (RTA) for both sides, the CEPA provides a model for China to use the arrangements allowed under the rules of the World Trade Organization (WTO) to further trade liberalisation and promote economic development. This article discusses the legal issues raised under the WTO rules as well as the possible economic implications of CEPA. Legally speaking, the CEPA probably satisfies the requirements for a Free-trade Area (FTA) under Article XXIV of the GATT 1994 and an Economic Integration Agreement (EIA) under Article V of the GATS. Several provisions of the CEPA, however, might lead to potential legal disputes in the WTO. Economically speaking, the CEPA is unlikely to solve the economic problems in Hong Kong.

Keywords

CEPA, WTO, China, Hong Kong, FTA, RTA, EIA, GATT, GATS, Dispute Settlement, Closer Economic Partnership Arrangement

Discipline

Asian Studies | International Trade Law | Law and Economics

Publication

Trading Arrangements in the Pacific Rim: ASEAN and APEC

Volume

3

Editor

Davidson, Paul

First Page

1

Last Page

16

ISBN

9780379008555

Publisher

Oceana Publications

City or Country

New York

Additional URL

http://www.oceanalaw.com/main_product_details.asp?ID=149

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