Hong Kong, June 10: China and its territory Hong Kong are hoping to wrap up a free trade agreement later this month that will lower business costs and promote trade and investment between the former British colony and the mainland, officials said today. Hong Kong reverted to Chinese rule in 1997, but under a deal granting wide-ranging autonomy. China and Hong Kong are treated as separate customs territories, making it difficult for the territory to take full advantage of its close trade and commercial ties with the mainland.

Similar to agreements between separate countries, the pact is known as the Mainland/Hong Kong Closer Economic Partnership Arrangement. It would cover trade in goods and services as well as trade facilitation including customs cooperation and e-commerce businesses, said Albert Hui, a spokesman for the commerce, industry and technology bureau.

In Beijing, a spokeswoman for China's trade ministry said today that an agreement was expected by June 20. The official refused to provide details or give her name.
Talks on an agreement began in January 2002. So far, there have been discussions on reducing and eliminating tariff and non-tariff measures, but Hui declined to give further details. It is unclear when the agreement would take effect. Bureau Report