In addition, the trade agreement requires that subsidies be transparent. If the EU or South Korea use subsidies, they must indicate each year the total amount, nature and supply of the subsidies. China`s free trade agreements include Hong Kong and Macao, with the Hong Kong version known as the Closer Economic Partnership Agreement (CEPA), whose regular updates on its benefits, which we have long talked about on China Briefing. The CEPA agreement between China and Hong Kong offers many advantages to foreign investors who create local businesses in Hong Kong, which reduce (after a qualification phase) the source taxes and dividends on funds that are re-injected from the mainland to the territory. Macau offers similar benefits and especially in the services sector and the financial sector – extremely useful given Macau`s evolution towards an important tourist and casino destination. In some cases, it is necessary to move goods through a third country. Such a transport scenario can always fall within the rules of the free trade agreement by meeting certain conditions. In these cases, if the importer wishes to receive reduced or duty-free benefits, must he have proof that the goods have been relocated in bonds? by another foreign country and have never been entered into that country`s trade. The U.S.-Mexico-Canada agreement was signed on November 30, 2018 and came into effect on July 1, 2020. The USMCA updated the previous trade agreement between the United States, Canada and Mexico – the North American Free Trade Agreement (NAFTA), which came into force on January 1, 1994. The agreement ensures that competition rules also apply to state-controlled enterprises or enterprises and prohibits certain types of subsidies considered particularly dangerous to competition that the EU and South Korea cooperate in recognising disease-free areas to increase predictability for you as an exporter.
China has 11 free trade agreements in force, three of which are under negotiation and three others are under consideration. Many of them are relatively small, although they are useful for companies in the countries that have them, Chile, Costa Rice, Iceland and Peru. The Pakistani agreement is often used in bilateral Sino-pak relations, which are obviously strong, with Pakistan being the main beneficiary of Chinese foreign investment in Southeast Asia, while China also has an interesting free trade agreement with Switzerland, signed in the middle of last year and expected to come into force later in 2014.