PAGGIE LEUNG

Updated at 4.39pm:
Hong Kong was preparing for the next phase of the Closer Economic Partnership Arrangement (Cepa), which will grant over 700 products tariff free access to China, Secretary for Commerce, Industry and Technology John Tsang Chun-wah said on Monday.

Mr Tsang said that under Cepa II - which will be implemented in January 2005 - another 713 Hong Kong products such as foods, beverages, textiles clothing and electrical and electronic goods will enjoy zero tariffs. This will be additional to 374 products which already enjoy no tariff restrictions..

"This is not a one-off deal and it is not static," he stressed. "From Hong Kong's perspective, the zero-tariff preference for goods has the potential to attract to Hong Kong manufacturing of brand-name products with high added value."

"In addition, the World Trade Organisation-plus liberalisation measures in the services market should give companies in Hong Kong a 'first mover' advantage," the Commerce, Industry and Technology Secretary added.

Mr Tsang also said both places could achieve greater co-operation in infrastructure planning, financial services, commerce, corporate governance and tourism.