Hong Kong> Hong Kong is a founding member of the World Trade Organization (WTO) and a member of the Asia-Pacific Economic Cooperation (APEC). Despite China`s WTO membership, Hong Kong is well positioned to play a key role for U.S. companies wishing to export to China, one of the fastest growing markets in the world. Hong Kong is a commercial hub for mainland China and the region; its commercial enterprises are experts in promoting products and services imported into mainland China. Similarities in language and cultural traditions have allowed Hong Kong merchants to maximize opportunities for U.S. businesses, particularly small and medium-sized enterprises and early exporters. Hong Kong has a free trade agreement with mainland China, the Closer Economic Partnership Agreement (CEPA), which provides duty-free exports of goods originating in Hong Kong and preferential access for certain service sectors. The EPA was signed in 2003 and was then gradually expanded each year. Under the EPA, Hong Kong enjoys free movement of services with a “negative list” covering 134 service sectors for Hong Kong and providing domestic treatment to Hong Kong`s 62 service sectors. Hong Kong also enjoys the most privileged national treatment, with liberalization measures in free trade agreements signed by mainland China and other countries, which are automatically extended to Hong Kong. In June 2017, Hong Kong and mainland China signed an investment agreement and an economic and technical cooperation agreement. The investment agreement, which will come into force in January 2018, includes the provision of national treatment and non-service investments in a negative list approach. To qualify as a business in Hong Kong under the CEPA, the company (including a subsidiary of a foreign company) must be integrated into Hong Kong, operating in Hong Kong for more than three years and employing at least half of its employees in Hong Kong.

In addition, foreign companies that took over or merged with a company in Hong Kong on June 29, 2003 or after June 29, 2003 qualify after one year of operation as companies in Hong Kong. For more information on the EPA, see: www.tid.gov.hk/english/cepa. With the abolition on 1 January 2005 of all remaining quotas for imports of textiles and clothing from WTO member countries, exports of textiles and clothing to Hong Kong are no longer subject to quantitative restrictions. Hong Kong has signed a free trade agreement with New Zealand, the Member States of the European Free Trade Association, Chile, Macau, ASEAN and Georgia. These free trade agreements are fully in line with the provisions of the World Trade Organization. Hong Kong negotiates free trade agreements with the Maldives and Australia. Finally, Hong Kong is an Asia-Pacific Economic Cooperation (APEC) member and participant in the APEC Business Travel Card (ABTC) Scheme, which offers qualified business travellers an optimized entry permit. Macau> The parties recognize that economic development, social development and environmental protection are interdependent and stress that their closer economic partnership can play an important role in promoting sustainable development.