On 29 June 2003, Mainland China and Hong Kong sign the Closer Economic Partnership Arrangement (CEPA) — the deal that gradually liberalises trade in goods and services and facilitates investment between the two markets.

CEPA provides tariff elimination for most Hong Kong-origin goods and market-opening commitments in services, within a “one country, two systems” framework.

Signed in Hong Kong shortly after the SARS outbreak, it was designed as an economic stimulus and as an integration tool with the Pearl River Delta.

Annual supplements later expanded Mainland market access for Hong Kong firms and professionals.

For Chinese trade policy, 29 June 2003 marks the first major closer economic partnership arrangement with a special administrative region.

The official text is published by Hong Kong TID / trade authorities.

CEPA of 29 June 2003 remains the basis of Mainland–Hong Kong trade liberalisation.

Image: Hong Kong; Wikimedia Commons. Cropped to 16:9.

Source consulted: Mainland and Hong Kong Closer Economic Partnership Arrangement. Treaty text: Closer Economic Partnership Arrangement (Hong Kong TID).