THE HONG KONG General Chamber of Commerce has recommended implementing a hybrid system of "positive and negative lists" in Hong Kong and Guangdong on a trial basis
Hong Kong Chamber recommends hybrid tariff-free system under CEPA
THE HONG KONG General Chamber of Commerce has recommended implementing a hybrid system of "positive and negative lists" in Hong Kong and Guangdong on a trial basis through the Closer Economic Partnership Arrangements (CEPA).
The trial comes as CEPA celebrates its 10th anniversary since its inception in 2003 when it started tariff-free treatment between Hong Kong and the mainland to further deregulate markets.
The hybrid system of "positive and negative lists" for market entry will be adopted under a pilot scheme in Guangdong through CEPA to allow for easier access, said chamber CEO Shirley Yuen.
The "negative list" approach can be applied to non-sensitive sectors such as logistics, transport, convention and exhibition, trade and tourism in the cities of Guangzhou and Shenzhen on a trial basis. These sectors can enjoy direct access to the mainland market without being subject to approval by the government.
In the last decade, the sectors which enjoyed tariff free treatment include trade, retail, legal, accounting, construction, medical, film, banking and securities. For the film and television industry, for example, a total of 294 motion pictures have been jointly produced by Hong Kong and the mainland at the end of last year.
Among them was the blockbuster "Journey to the West: Conquering the Demons", with a box office revenue of CNY1.24 billion (US$200 million), which is the seconded highest grossing domestic film in China's box office history.
The chamber of commerce also recommends the inclusion of two additional service sectors, namely asset valuation, and corporate governance, compliance and secretarial advisory (CGCSA) services, to further facilitate economic cooperation between the two places.
Currently, many Hong Kong companies hold substantial assets in the mainland. Consequently, they hire the services of local valuers and accountants. The chamber recommends enhancing the mutual recognition of professional qualifications and cooperation between asset valuers and accountants in the two places.
Since it has been proposed that CGCSA services be included in the World Trade Organisation (WTO) classifications, the chamber hopes that it will be included in CEPA.
