The Advantages And Disadvantages Of CEPA Brought To The Mainland With Zero Tariffs In Hong Kong
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For the opportunities and advantages that CEPA brings to Hong Kong, we think there are three main advantages of CEPA and they are producing benefits to the economy of Hong Kong. 1. Hong Kong origin goods can import to the mainland with zero tariffs. 2. The service supplier in Hong Kong is able to enjoy some preferential treatment when they going to enter the market of the mainland. 3. Some professional qualifications become mutual recognition under CEPA, which created convenience for the professionals to work on the mainland.
2.1 Zero tariffs policy
First, CEPA exempted the tariffs of Hong Kong origin goods when they importing to the mainland. “Hong Kong origin goods” is having three explanations, the goods that in line with any one of these…show more content… As a source of income, 2. To protect domestic industries since Imported goods will price higher if tariffs exist. For the exporters, these tariffs will as a barrier on their export since the cost of exporting will increase. In other words, the tariffs were repealed under CEPA will bring advantages to Hong Kong. Under the economic theory and economic model, if a country (China) repealed their tariffs, the price of its imported good will decrease and imported quantity will increase, which bring (economic) advantages on the exporter (Hong Kong) since its export will…show more content… Use accounting field as an example, the Hong Kong citizens who become the official member of Hong Kong Institute of Certified Public Accountants can receive an exemption on part of professional exam in the mainland. Also, Hong Kong citizens are able to participate the professional exams in mainland under CEPA while it is not allowed before CEPA, such as the professional exam in law, medical treatment, and