Ministry of Commerce (MOC) of the People's Republic of China informed that Macao was cashing in on its Closer Economic Partnership Arrangement (CEPA) with the mainland to boost its economic, trade and cultural development.
Firms sending goods from Macao to the mainland do not have to pay tariffs because of the free trade pact. According to statistics from customs, the volume of such goods stood at over US$1 million in the first 10 months of this year. The pact meant Macao companies did not have to pay 926,000 yuan (US$115,750) in tariffs.
So far, 509 categories of products from Macao are covered by the non-tariff treatment of the CEPA. Among Macao's exports to the mainland are cement and clothes.
In 2006 the mainland will lift tariffs on all products imported from Hong Kong and Macao in line with CEPA agreements with the two regions.
Ng Pak Meng, director with the Macao delegation to Beijing, said a steady communication network had been established between Macao and mainland provinces and municipalities. "It helps us to make progress in exchanges and co-operation with the mainland in the economic, trade, tourism, culture and training sectors," Ng said.
The mainland's trade volume with Macao was US$1.48 billion in the first 10 months of this year.
Exports to Macao decreased by 5 per cent year-on-year to US$1.27 billion in the same period and imports from Macao rose 15.5 per cent year-on year to US$0.21 billion.
Experts suggested mainland enterprises could take advantage of the free trade market under the framework of the CEPA.
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