The purpose of this research is to identify the legal aspects of the context, the legal basis, the independence, and the subject of discipline of the China-Hong Kong Closer Economic Partnership Arrangement (CEPA) and to anticipate its future prospect. CEPA, a special form of FTA agreed by a country and its local separate customs territory, is composed of a main article that constitutes the expediency of trade investment, freeing of service trade, removal of non-tariff barriers, and the tariff on trading goods as well as 6 subsidiary articles. The legal basis of the CEPA are the international law and the domestic law, namely the exceptions of the regional economic integration under the agreement of WTO and the article that guarantees Hong Kong a capital lease under the constitution of China and the fundamental law of Hong Kong. The independence of the CEPA carries a duplicate status of being a continental customs territory and a separate customs territory of Hong Kong while standing as an official member of WTO and the CEPA\'s subject of discipline similarly fulfills a duplicate status of being associated in both an economic trade relationship among domestic customs territory and among WTO members. Although diverse opinions on municipal law, international law, and eclecticism are being suggested due to the duplicity of such legal basis, independence, and subject of discipline, the CEPA considers the legal attributes of the international treaty that concurs the views of both China and Hong Kong, both in legally equal positions, as the priority more than the characteristics of the municipal law. Furthermore, the CEPA is expected to develop into a regional economic integrated systematic mechanism, which is a form of FTA that has never occurred under the jurisdiction of the WTO, that forms a Great China Economic Community among China, Hong Kong, Macao, and Taiwan as well as the notion of \"one country, two systems,\" which is the theoretical base of the unification of China. KEY WORD: CEPA, FTA, WTO, Separate Customs Territory, One Country, Two systems, Duplicity, Great China Economic Community, Systematic Mechanism