Intellecutal property added into Supplement V to CEPA

Chief Executive Donald Tsang (back row, center) applauds the signing of the Supplement V to the Mainland and Hong Kong Closer Economic Partnership Arrangement by Financial Secretary John Tsang (left) and Vice-Minister of Commerce Jiang Zengwei at the government headquarters yesterday.

The SAR government and Ministry of Commerce signed in Hong Kong yesterday a supplement to the Hong Kong-Mainland Closer Economic Partnership Arrangement (CEPA) to give local service industries more access to the mainland market.

A total of 29 measures are included in the supplement.

Hong Kong and Guangdong will also implement 25 other measures on a pilot basis to enhance mutual economic co-operation.

The new measures follow shortly Vice President Xi Jinping's revelation during his visit to Hong Kong early this month that there would be new initiatives to support the SAR.

The 29 measures included in the supplement, signed by HKSAR Financial Secretary John Tsang and Vice-Minister of Commerce Jiang Zengwei yesterday, covers 17 service sectors.

Two of these sectors are new to the CEPA. They are mining services and science & technology services.

The CEPA was first signed in June 2003 to help deepen economic co-operation between Hong Kong and the mainland.

Under the new supplement, Hong Kong residents can take examinations to become tourist guides on the mainland.

Hong Kong enterprises may also set up travel agencies in Guangdong pending approval from the provincial government.

Meanwhile, Hong Kong residents may obtain accreditation in order to practise medicine on the mainland.

Hong Kong medical companies will also be allowed to set up wholly-owned outpatient clinics in Guangdong.

For the banking sector, eligible mainland-incorporated banking institutions set up by a Hong Kong bank will be allowed to set up data centers in Hong Kong.

All the liberalization measures will be effective as of January 1, 2009.

Meantime, under the 25 pilot measures, authorized Hong Kong travel agents can organize tours to Hong Kong Disneyland for non-Guangdong residents who have worked in Shenzhen for over a year.

And for the education sector, Hong Kong institutions may set up schools in Guangdong for Hong Kong residents' children pending approval.

Hong Kong and Guangdong also agreed to increase co-operation in branding, trademark and e-commerce.

The two sides will continue work on mutual recognition of professional qualifications in accounting and construction.

Chief Executive Donald Tsang said at the signing ceremony that the new measures will offer new business opportunities for Hong Kong businesses and foster closer economic integration between Hong Kong and Guangdong.

He said according to a government study last year, between 2004 and 2006, the CEPA created 36,000 jobs and an additional capital investment of HK$5.1 billion. At the same time, the Individual Visitors Scheme under the CEPA had generated an extra tourist spending of HK$22.7 billion.

A spokesman for the SAR government said if the pilot measures in Guangdong were proven to be effective, they might be extended to other provinces.

Hong Kong service industries welcomed the new liberalization and pilot measures.

Daniel Chan, deputy general manager of Hong Tai Travel Services, said local travel agents will benefit from the measures.

Vice president of the Hong Kong Medical Association Alvin Chan also welcomed the supplement.

But he pointed out that medical professionals would still have to familiarize themselves with laws related to medical liability on the mainland before starting their practices there.

Chairman of the Federation of Hong Kong Industries Clement Chen said the agreement on trademark co-operation could encourage more Hong Kong companies to develop new products and build their own brands.

But at the same time, Chen called for mainland authorities to streamline application procedures for Hong Kong enterprises to set up service companies on the mainland.

Hong Kong and the mainland should also set up a communication platform to make the CEPA measures more effective, he added.