A Study Of The Impact On Hong Kong Garments Export Under CEPA

Since the "Mainland and Hong Kong Closer Economic Partnership Arrangement" signed by Mainland China and Hong Kong,the implementation by 2004 to 31 December of 2008,the latest round of measures opened up under CEPA,Hong Kong enterprises or products are encouraged to enter the Mainland market.However,the contribution of this measure is unknown,especially in specific sectors.Garments industry is a traditional industry in Hong Kong and it has a very good reputation in the world.Studying the impact on garments export can result far-reaching benefits.From the data obtain,CEPA has positive impact on Hong Kong economics.After the implementation of CEPA,total exports have been increased.People are more confident in the future because they believe they have strong support from the Mainland.More foreign companies have set up branch office or regional head office in Hong Kong.Garments re-export has been increasing.On the other hand,CEPA cannot improve the domestic garments export.This is because garments manufacturers in Hong Kong are facing high wages,high rent, and inflation.This situation is getting worse after financial crisis occurred in 2008.During the implementation of CEPA,many problems and obstacles have occurred.The Mainland government,the Hong Kong Government and the industry should communicate with each other to solve the problems.During this process,the Mainland can equip itself after joining World Trade Organization to liberalize the market.Besides,Hong Kong can follow the path of the Mainland's development and get the greatest benefit.Furthermore,Hong Kong enterprises can take appropriate preparation and improve the operation that can meet the market needs and make the enterprises to face new challenges in the future.