The Second Amendment to the CEPA Agreement on Trade in Services was signed on October 9, 2024. CEPA, or Closer Economic Partnership Arrangement, is a free trade agreement concluded by the Mainland and Hong Kong. CEPA covers four areas, trade in goods, investment, economic and technical cooperation, and trade in services.
The new measures are designed to facilitate the establishment of enterprises and business development for Hong Kong service suppliers and professionals in the Mainland.
Three take-aways from the new amendment:
- Addition of “allowing Hong Kong-invested enterprises to adopt Hong Kong law” and “allowing Hong Kong-invested enterprises to choose for arbitration to be seated in Hong Kong” as facilitation measures for Hong Kong investors.
- Addition of commitments in domestic regulation, thereby cutting red tapes and aiming to lower trade costs when enterprises supply their services.
- Removal of the period requirement on Hong Kong service suppliers to operate in Hong Kong for three years in most services sectors.
Find the full amendment below:
2024 Info Note en