Comparison Between Cepa and Ecfa

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Introduction According to the HKSAR, Closer Economic Partnership Arrangement (CEPA) is a free trade agreement signed by the Mainland and Hong Kong. The CEPA was first signed on 29 June 2003, based on the principle of “one country, two system”.[1] It greatly helped the economic recovery process after SARS in Hong Kong. For Hong Kong, there are more chances for Hong Kong enterprise to reach out to the potential Mainland market. For Mainland, Hong Kong works as a middleman between the Mainland and the world market. CEPA gives Hong Kong goods and services a vast economic opportunity, and thus increases trading activities, fosters economic cooperation and integration between the Mainland and Hong Kong. The Economic Cooperation Framework Agreement (ECFA) is a free trade agreement, signed by the Mainland China and Taiwan. It was signed on 29 June 2010, modeled on “China-ASEAN” Framework Agreement.[2] It is a beneficial trade agreement, which intends to reduce trading barriers, such as lessening and removing trade tariffs. For Taiwan, there are skilled labors with high technology knowledge. For China, there are abundant low skilled labors, which provides low cost production environment. ECFA will facilitate some Taiwan manufacturers to move part of the production lines in the Mainland. Also, Taiwan’s products can enter the Mainland market more conveniently. Thus, it can boost up Taiwan products’ competitiveness and market share in the Mainland. ECFA enhances trading activities between the Mainland and Taiwan, which has positive effect on both sides’ economy. When comparing the CEPA and the ECFA, both of them are free trade agreements, which reduce commercial impediments. They open up the huge market in the Mainland for Hong Kong and Taiwan. Also, both of them support the economic cooperation and integration between two sides. By reducing the trade barriers, CEPA and
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