Signed and sealed: Financial Secretary Antony Leung and Vice Minister An Min sign the CEPA which opens up a host of opportunities for Hong Kong businesses.

The Closer Economic Partnership Arrangement between Hong Kong and the Mainland offers new opportunities for Hong Kong's manufacturing and services sectors, Financial Secretary Antony Leung said at a press conference held after the signing ceremony.

"The conclusion of the Arrangement will greatly enhance economic cooperation and integration between the Mainland and Hong Kong. It would also open preferential and World Trade Organisation plus access opportunities for Hong Kong products and services in the Mainland," he said.

"Trade and investment between the two places would also be facilitated as a result of the cooperative measures agreed under CEPA," he added.

The CEPA covers three broad areas: trade in goods, trade in services and trade and investment facilitation.

On trade in goods, the Mainland has agreed to apply zero import tariff from January 1, 2004 for exports from Hong Kong meeting the CEPA rules of origin requirement in some 270 Mainland product codes.

The Mainland has also agreed to apply zero import tariff no later than January 1, 2006 upon applications by local manufacturers for other codes maintained on China's tariff system and meeting the CEPA rules of origin.

On trade in services, a number of sectors will benefit in terms of additional market access or removal of specific restrictions in the Mainland market.

They include management consultant services, exhibitions and conventions, advertising, legal services, accounting services, medical and dental services, real estate and construction services, transport services, distribution, logistics, forwarding services, storage services, tourism, audiovisual, banking, securities and insurance.

Hong Kong will undertake to continue to apply zero tariff for Mainland products and not to introduce new or additional discriminatory measures against Mainland services and service suppliers.

With regard to trade and investment facilitation, both sides agree to promote co-operation in seven areas:

* customs clearance;

* quarantine and inspection of commodities, quality assurance and food safety;

* small and medium-sized enterprises;

* Chinese medicine and medical products;

* electronic commerce;

* trade and investment promotion; and

* transparency in law and regulations.

The signing ceremony was held after a meeting between the Financial Secretary and Vice Minister An Min this morning for the fourth High Level Consultations on CEPA.

During the meeting, the two sides reached agreement on the main parts of the CEPA and finalised the CEPA text.

The Financial Secretary and Vice Minister An Min were both satisfied with the outcome of CEPA which was comprehensive and mutually beneficial, and had fulfilled what they had set out to achieve when the consultations started last year.

Both sides noted that the CEPA would be a continuous process and that further liberalisation proposals would be discussed at the standing consultation mechanism to be established under CEPA.

The Financial Secretary appreciated the strong support of the leaders of the Central People's Government for CEPA and was thankful to Vice Minister An Min for his leadership and guidance in steering the process to a fruitful outcome.

Mr Leung and Mr An also thanked officials from both sides for their dedicated efforts in bringing the consultations to a successful conclusion.

Since the formal commencement of high level consultations in Beijing at the end of January 2002, four High Level Consultations and 15 Senior Officials meetings have been held in Beijing, Hong Kong and by way of video conference.

Click here to see the signing ceremony and Premier Wen Jiabao's presentation.