José Chui calls for better privileges for CEPA reexported goods from Macau to mainland

A mainland-Macau trade agreement should be updated to facilitate better reexport of goods in Macau, National Congress member José Chui sugested.

The Closer Economic Partnership Arrangement, commonly referred to as CEPA, was made between mainland China and Macau to facilitate more convenient trade and service exports between the two jurisdictions.

Chui, while speaking to local media Macao Daily News, suggested that CEPA be updated, so that goods from mainland China, lusophone countries, and even other places can enjoy better privileges when reexported in Macau.

He suggested vetting procedures be simplified, such as requirements for manufacturing and processing procedures, tax code changes, ad valorem percentages, and other hurdles. Relaxing these procedures would facilitate mutual recognition of business between Macau and Hengqin, China, he argued.

He also suggested that by appropriately lowering the age requirements for CEPA “service providers” in commercial and trade fields the threshold for Macau service providers to enter the mainland market would be lowered. The consequence of this would be that enterprises from Portuguese-speaking countries that meet the necessary conditions can enjoy economic and trade benefits when entering the Chinese market.

In terms of cross-boundary investments and the trading of securities, the congressman said that references from existing, similar schemes should be taken, so as to formulate a tailormade scheme for investments related to Macau and Hengqin, China. His suggestion included establishing a joint venture company held by the governments of the two places to undertake the service functions related to supporting Hengqin-Macao Bond Connect transactions.

Relevant taxation incentives should also be formulated to attract capital from Hengqin, China to invest in securities products in Macau.