Shrinking CEPA

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The value of local exports of zero tariff goods to Mainland China under the Closer Economic Partnership Arrangement (CEPA) dropped 8.2 per cent month-on-month to almost MOP7 million (US$869,657) in July, with a 34.6 per cent year-on-year drop, according to the latest data released by the Macao Economic Services (DSE).
For the first seven months of this year, the total value of exported local goods to Mainland China reached MOP49.54 million, a 6.3 per cent decrease from the same period of last year.
Between the time of the policy’s implementation in 2004 and end-July this year, the total value of goods exported hit MOP816.01 million.
As at the end of last month, some 624 local firms were holding Macau Service Supplier certificates, two more than the 622 recorded in June of this year.
The certificate allows local companies and enterprises to operate on the Mainland and enjoy zero tariff treatment.
Official data shows that the majority of certificate holders – 308 or nearly 52 per cent of the total – were engaged in the transport industry, such as those operating freight forwarding agencies, and businesses related to logistics, storage and warehousing as well as transportation.
Following these firms, were those engaged in medical and dental services, accounting for 147 companies, or around 25 per cent of the total certificate holders.
In July, there were also 41 certified firms from the convention and exhibition services sector and 33 certified firms from the real estate sector under the CEPA agreement.