The 200 or so businessmen, scholars and government officials from Beijing, Guangdong and Hong Kong gathering in Guangzhou on July 31 for a HKGCC seminar had only one thing on their lips, "CEPA."

Co-organised by the Chamber and the China Council for the Promotion of International Trade (CCPIT) Guangdong sub-Council, the seminar addressed how Hong Kong and Guangdong might be able to co-operate under the new free-trade agreement. Entitled "New Opportunities, New Actions: CEPA and the Economic Co-operation Between Hong Kong and Guangdong," ranks as one of the largest CEPA seminars held so far.

Chamber China Committee Vice Chairman Wang Lu-yen, together with HKGCC General Committee Member Andrew Yuen, and Chamber CEO Dr Eden Woon, led a 43-member delegation to participate in the seminar.

In his opening remarks, Dr Woon said that SARS clearly showed the close connection that exists between Hong Kong and Guangdong and that its ties will be even stronger under CEPA. In May, the Chamber led a business delegation to Guangdong before the World Health Organisation had lifted its travel advisory against Hong Kong and Guangdong, because the Chamber values its connections between Hong Kong and Guangdong, he said.

"The delegation was received by Guangdong Governor Huang Huahua and Guangzhou Mayor Zhang Guangning, and the trip further strengthened the relationship between the Chamber and Guangdong," Dr Woon said.

Even before most people had even heard of CEPA, the Chamber had been pushing for a conclusion to the free trade agreement and submitted various papers to the Hong Kong Government on what might be included in the agreement.

Dr Woon said he believes that Guangdong will benefit the most from CEPA, citing how California, under the NAFTA (North American Free Trade Agreement), has benefited most from the agreement by being next to Mexico.

Tang Hao, Deputy Secretary of the Guangdong People's Government, and Ye Yao, Chairman, CCPIT-Guangdong sub-Council, in their opening remarks, welcomed the prospect of closer co-operation between Hong Kong and Guangdong.

An impressive line up of speakers shared their views with the audience, including Prof Zhang Hanlin, President of the China Institute for WTO Studies. He suggested that "high-tech free trade zones" be set up near the Shenzhen-Hong Kong border to boost co-operation and to attract talent from around the Mainland China to work in the region.

Samson Tam, Chairman, Global Sense (International) Limited, said he doubts if Hong Kong manufacturers will relocate their Mainland investments to Hong Kong to take advantage of zero tariff. He expects 99 percent of Hong Kong manufacturers would continue to use the Mainland as their manufacturing base, with the exception of branded products.

Service sectors, however, are expected to gain the most from CEPA. Guangdong, as the workshop of the world, has an insatiable appetite for logistics and other professional services. Teddy Fung, General Manager-South China, OOCL (China) Co., Ltd., said Hong Kong service providers need to explore new routes to access the Mainland services markets now that restrictions on the service sector are being lowered under CEPA. He believes that Hong Kong logistics companies will be able to boost Mainland firms' expertise as companies in both areas form joint-ventures to grow their business.

Zhao Xiaohong, Solicitor, Pretts Gates Ellis, also sees possible cross-border co-operation in the legal sector as a way for benefiting both Hong Kong and Mainland firms.