Under The Framework Of Cepa, The Mainland And Hong Kong's Trade In Services Integration Issues Discussed

The closer economic partnership arrangement between the Mainland and HongKong (simplified as CEPA) is subscribed under the background of economicglobalization and regional economic integration, and is based on WTO rules. CEPA isa regional free trade agreement, with purpose of establishing free trade relationshipand promoting economic integration between the mainland and Hong Kong. The tradein services integration between the mainland and Hong Kong is the focus of CEPA,and has significant meaning. Being a regional free trade agreement, CEPA forms theexception of the most favored nation treatment of WTO, and the provisions aboutregional trade agreement of WTO provide legal foundation for CEPA. Article 24 ofGATT is the primary legal foundation for CEPA, and article 5 of GATS affords legalfoundation for trade in services integration under CEPA, while the trade in servicesintegration agreement also meets the requirement of GATS. Comparing with thepromises the mainland gives to other WTO members under GATS, the promises themainland gives to Hong Kong under CEPA are more favorable. In fact the favorabletreatment the mainland gives to Hong Kong under CEPA may be obtained by othercountries and regions, and causes the "overflow effect". So it's necessary to define the"Hong Kong service provider" precisely, and it's the primary issue during theenforcement of trade in services integration under CEPA. As for this issue, advice isgiven on the basis of comparison of other scholars' different opinions.