U.s. Hong Kong Trade Agreement

By : | 0 Comments | On : April 14, 2021 | Category : Uncategorized

1A June 29, 2003, the Hong Kong and Mainland China Special Administrative Region signed a bilateral trade agreement, known by the acronym CEPA (Closed Economic Partnership Arrangement)1. This agreement has three sections: tariff reductions for 273 product categories that Hong Kong exports to the People`s Republic of China (PRC); a privileged opening of the Chinese market to Hong Kong service providers in 17 sectors (increased to 18 in September 2003); and a series of measures to facilitate bilateral trade in goods, capital and people. On September 29, 2003, Hong Kong and the PRC signed six annexes to the main agreement. The purpose of these annexes was to clarify and supplement the original provisions of the EPA. Appendixes 1 to 3 deal with the movement of goods and, in particular, set the rules for them, the origin of the products and the procedures for registering and verifying certificates of origin. Appendix 4 and 5 deal with the second part of the agreement, the addition of the telecommunications sector and the definition of the “Hong Kong service provider.” Appendix 6 identifies six specific areas of cooperation between Hong Kong and China. These agreements have helped make Hong Kong a global trading centre. But today, the United States is threatening to treat Hong Kong in the same way as mainland China. This would mean that its products would be subject to additional tariffs, including additional tariffs introduced as part of the U.S.-China trade war, although some of them have recently been withdrawn. The United States-Hong Kong Policy Act (p. 1731 Pub.L.

102-383) or Hong Kong Relations Act is a 1992 Law of congress. It allows the United States to examine Hong Kong separately from mainland China in terms of export and economic control, even after Hong Kong`s surrender in 1997. [1] In September 2019, a “Section 301” list submitted many Chinese consumer products, including diamonds and jewelry, at a US tariff rate of 15%, which was lowered to 7.5% in February as a result of the Phase 1 trade agreement with China. While Trump did not provide details on the broader impact of his order, the removal of Hong Kong`s special trade status could suspend Hong Kong`s exports to higher U.S. tariffs, as is the case with mainland China.

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