"Mainland and Macau Closer Economic Partnership Arrangement"(CEPA), signed in 2003 and with a new supplement signed every year, has become the Mainland's free-trade agreement with the highest degree of openness, contributing greatly to the economic integration. The signing of CEPA has brought considerable progress to the economy of both Macau and the Mainland and at the same time has provided more opportunities and challenges. This paper reviews the background and the development of the signing of CEPA, from trade in goods, trade in services, investment business, and adjustment to the industrial structure. It will also examine the effectiveness of economic and trade cooperation under the framework of CEPA when responding to international economic fluctuations. Suggestions will be given to the CEPA and to the development of cooperation between Macau and the Mainland. <<