The global free trade agreements have been greatly developing since the 1990s for the third time. And in support of Hong Kong’s rapid economic development, Mainland and Hong Kong signed CEPA (Closer Economic Partnership Arrangement between Hong Kong and the Chinese Mainland) which is a new type of FTA in 2003.The rules of origin are the bases of the regional trade agreements to survive, so, CEPA also has its own rules of origin. For China, who is participating actively in free trade agreement, the rules of original producing areas are becoming increasingly important in both theory and practice. This paper focuses on analyzing the effect of ROOs in FTA on the cost of enterprises, trade, investment and welfare, and on the basis of this puts forward some policy suggestions on establishing and exerting effectively the rules of origin.
【Key Words】CEPA;The rules of origin; Economic effects
