WORLD TRADE  
ORGANIZATION  WT/REG163/1 
4 February 2004  
 
(04-0395) 
Committee on Regional Trade Agreements Original:   English 
   
CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT 
BETWEEN CHINA AND MACAO, CHINA
* 
 
 
 The following communication, dated 30 January 2 004, is being circulated at the request of the 
Delegations of the People's Republic of China and of Macao, China.  
 
_______________ 
 
MAINLAND AND MACAO CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT  
 
PREAMBLE  
  To promote the joint economic prosperity and development of the Mainland
1  and the Macao 
Special Administrative Region (hereinafter referred to  as the "two sides"), to facilitate the further 
development of economic links between the two si des and other countries and regions, the two sides 
decided to sign the Mainland and Macao Closer Ec onomic Partnership Arrangement  (hereinafter 
referred as to the "CEPA"). 
  
CHAPTER 1 : GENERAL PRINCIPLES 
 
Article 1 
 
Objectives
 
  To strengthen trade and investment cooperati on between the Mainland and the Macao Special 
Administrative Region (hereinafter referred to as "Macao") and promote joint development of the two 
sides, through the implementation of the following measures: 
  1. progressively reducing or eliminating tariff and non-tari ff barriers on substantially all 
the trade in goods between the two sides; 
 
 2. progressively achieving liberalization of trade in services through reduction or 
elimination of substantially all discriminatory measures between the two sides; 
  3. promoting trade and investment facilitation.  
  
                                                     
 
* The Annexes of the Arrangement have been submitted to the Secretariat for consultation by interested 
Members (office 1174). 
1 In the "CEPA", the "Mainland" refers to the entire customs territory of China. WT/REG163/1 
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Article 2 
 
Principles
 
  The conclusion, implementation and amendment of the "CEPA" shall adhere to the following 
principles: 
  1. to abide by the "one country, two systems" principle;   2. to be consistent with the rules of th e World Trade Organisation (hereinafter referred 
to as the "WTO"); 
  3. to accord with the needs of both sid es to adjust and upgrade their industries and 
enterprises and to promote steady and sustained development; 
 
 4. to achieve reciprocity and mutual benefits, complementarity with each other’s 
advantages and joint prosperity; 
  5. to take progressive action,  dealing with the easier subjects before the more difficult 
ones.  
 
Article 3 
 
Inception And Development
 
 1. From 1 January 2004, the two sides will start to implement the specific commitments in 
liberalization of trade in goods and services under the "CEPA". 
  2. The two sides will broaden and enrich the content of the "CEPA" through continuous and 
further reciprocal liberalization between them.  
Article 4 
 
Non-Application Of Specific Provisions In  China's WTO Accession Legal Documents
 
  The two sides recognise that through over 20 years of reform and opening up, the market economy system of the Mainland has been continuously improving, and the mode of production and 
operation of Mainland enterprises is in line with the requirements of a market economy.  The two 
sides agree that Articles 15 and 16 of the "Proto col on the Accession of the People's Republic of 
China to the WTO" and paragraph 242 of the "R eport of the Working Party on the Accession of 
China" will not be applicable to trade between the Mainland and Macao. 
  
CHAPTER 2 : TRADE IN GOODS 
 
Article 5 
 
Tariffs
 
 
1. Macao will continue to apply zero tari ff to all imported goods of Mainland origin. 
 2. From 1 January 2004, the Mainland will appl y zero tariff to the import of those goods of 
Macao origin listed in Table 1 of Annex 1. 
  WT/REG163/1 
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3. No later than 1 January 2006, the Mainland w ill apply zero tariff to the import of goods of 
Macao origin that are outside Ta ble 1 of Annex 1. Detailed implem entation procedures are set out in 
Annex 1.  4. Any new goods that are subjected to elim ination of import tariffs in accordance with 
paragraph 3 of this Article shall be added to Annex 1. 
 
Article 6 
 
Tariff Rate Quota And Non-Tariff Measures
 
 
1. Neither side shall apply non-tariff measures inconsistent with WTO rules to goods imported 
and originated from the other side.  2. The Mainland will not apply tariff ra te quota to goods of Macao origin. 
 
Article 7 
 
Anti-Dumping Measures
 
  The two sides undertake that neither si de will apply anti-dumping measures to goods 
imported and originated from the other side. 
 
Article 8 
 
Subsidies And Countervailing Measures
 
 
 The two sides reiterate their observance of the WTO "Agreement on Subsidies and Countervailing Measures" and Article XVI of the "General Agreement on Tariffs and Trade 1994", 
and undertake not to apply countervailing measures to  goods imported and originated from each other. 
 
Article 9 
 
Safeguards
 
  If the implementation of the "CEPA" causes sharp increase in the import of a product included in Annex 1 originating from the other side which has caused or threatened to cause serious 
injury to the affected side’s domestic industry that produces like or directly competitive products, the 
affected side may, after giving written notice, te mporarily suspend concessions on the import of the 
concerned product from the other side, and shall, at the request of the other side, promptly commence 
consultations under Article 19 of the "CEPA " in order to reach an agreement. 
  
CHAPTER 3 : ORIGIN 
 
Article 10 
 
Rules Of Origin
 
 
1. The rules of origin applicable to preferen tial measures related to trade in goods under the 
"CEPA" are set out in Annex 2.  2. To ensure the implementation of the prefer ential measures in respect of trade in goods, the 
two sides decide to establish and strengthen mutual administrative assistance including the WT/REG163/1 
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establishment and strict implementation of the procedures for issuing certificates of origin, the establishment of auditing and regulatory, mechanisms, the development of a computer link and electronic data interchange between the issuing and regulatory authorities of both sides.  Details are 
set out in Annex 3.  
 
CHAPTER 4 : TRADE IN SERVICES 
 
Article 11 
 
Market Access
 
 1. Either side will progressively reduce or e liminate existing restrictive measures against 
services and service suppliers of the other side in ac cordance with the content and timetable set out in 
Annex 4. 
 
2. At the request of either side, the two sides may, through consultation, pursue further liberalisation of trade in services between them.  3. Any new measure on liberalization of trade in  services implemented pursuant to paragraph 2 
of this Article shall be added to Annex 4. 
 
Article 12 
 
Service Suppliers
 
 
1. The definition of and related provisions on "service suppliers" under the "CEPA" are set out 
in Annex 5.  2. Service suppliers of other WTO Members that  are juridical persons established under the laws 
of one side will be entitled to preferential treat ments granted by the other side under the "CEPA", 
provided that they are engaged in substantive busin ess operations as stipulated in Annex 5 in the area 
of the former side. 
 
Article 13 
 
Financial Services Cooperation
 
 
 The two sides shall adopt the following measu res to further strengthen cooperation in the 
areas of banking, securities and insurance:   1. Support Mainland financ ial institutions in establishing business in Macao;  
 
 2. Support Mainland banks in developing  network and business activities in Macao 
through acquisition; 
  3 Encourage, assist and support business exchange between Macao and Mainland 
banks, securities and insurance institutions; 
 
 4. Strengthen cooperation and information sh aring between their financial regulators. 
  WT/REG163/1 
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Article 14 
 
Cooperation In Tourism  
 1. In order to further promot e the development of the tourism industry of Macao, the Mainland 
will allow residents in Beijing, Shanghai and Gu angzhou, Shenzhen, Zhuhai,  Dongguan, Zhongshan, 
Jiangmen, Foshan, Huizhou of Guangdong Province to visit Macao individually.  This measure will 
be extended to the entire Guangdong Province no later than 1 July 2004.  2. The two sides shall strengthen cooperation in tourism promotion, including promotion of 
tourism between each other and development of external promotion programs centered around the 
Pearl River Delta.  3. The two sides shall cooperate to raise the ser vice standards of thei r tourism industries and 
protect the legitimate rights and interests of tourists. 
 
Article 15 
 
Mutual Recognition Of Professional Qualifications
 
 1. The two sides shall encourage mutual rec ognition of professional qualif ications and promote 
the exchange of professional talents between each other. 
 2. Competent authorities and professional bodies of both sides will, in consultation with each 
other, consider and design specific methodologies for mutual recognition of professional qualifications. 
 
 
CHAPTER 5 : TRADE AND INVESTMENT FACILITATION 
 
Article 16 
 
Measures
 
  The two sides shall promote trade and investment facilitation through greater transparency, standards conformity and enha nced information exchange. 
 
Article 17 
 
Areas Of Cooperation
 
 1. The two sides will promote cooperation in the following areas:  
 1. Trade and investment promotion; 
  2. Customs clearance facilitation;   3. Commodities Inspection, inspection and quarantine of animals and plants, food 
safety, sanitary quarantine, certification, accreditation and standardization 
management;  
  4. Electronic business;  
 5. Transparency in laws and regulations; WT/REG163/1 
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 6. Cooperation of Small and medium sized enterprises;  
  7. Industries cooperation.   2. Details on the areas of cooperati on listed in paragraph 1 of this Article are set out in Annex 6. 
 
3. At the request of either side, the two sid es may expand the scope and content of trade and 
investment facilitation through consultation. 
 4. Any new scope or content concluded under pa ragraph 3 of this Artic le shall be added to 
Annex 6. 
  
CHAPTER 6 : OTHER PROVISIONS 
 
Article 18 
 
Exceptions
 
  The "CEPA" and provisions in its Annexes sha ll not affect the ability of the Mainland or 
Macao to maintain or adopt exception measure s consistent with the rules of the WTO. 
 
Article 19 
 
Institutional Arrangements
 
 
1. The two sides shall set up a Joint Steering Co mmittee (hereinafter referred to as "Steering 
Committee"), which will comprise senior representati ves or officials designated by the two sides. 
 2. Liaison Offices shall be set up under the Steer ing Committee.  Working groups may be set up 
as the need arises.  The liaison offices shall be set up respectively in the Ministry of Commerce of the 
Central People's Government and the Office of the Secretary for Economy and Finance of Macao 
Special Administrative Region Government. 
 3. The functions of the Steering Committee include:   1. Supervising the implementation of the "CEPA"; 
 
 2. Interpreting the provisions of the "CEPA";   3. Resolving disputes that may arise during the implementation of the "CEPA";   4. Drafting additions and amendments to the content of the "CEPA"; 
 
 5. Steering the working groups;   6. Dealing with any other affair rela ting to the implementation of the "CEPA". 
 
4. The Steering Committee shall meet at least once a year, and may convene special meetings within 30 days upon request by either side.   WT/REG163/1 
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5. The two sides shall resolve any problems aris ing from the interpretation or implementation of 
the "CEPA" through consultation in the spirit of friendship and cooperation.  The Steering Committee 
shall make its decisions by consensus.  
Article 20 
 
Miscellaneous
 
 1. Except as otherwise provided in the "CEPA",  any action taken under it shall not affect or 
nullify the rights and obligations of either side under other existing agreements to which it is a 
contracting party. 
 2. The two sides shall endeavour to refrain fro m increasing restrictive measures affecting the 
implementation of the "CEPA".  
Article 21 
 
Annexes
 
  The Annexes to the "CEPA" form an integral part of the "CEPA".  
Article 22 
 
Amendments
 
  The provisions of the "CEPA" or its Annexes may be amended in writing when the need 
arises.  Any amendment shall come into effect after it has been signed by the duly authorised 
representatives of the two sides.  
Article 23 
 
Coming Into Effect
 
 
 The "CEPA" shall come into effect on the day of signature by the representatives of the two sides.   Signed in duplicate in Macao, this 17th da y of October, 2003  in the Chinese language. 
 
  Vice Minister of Commerce S ecretary for Economy and Finance 
 People's Republic of China Macao Special Administrative Region of    the People's Republic of China  
 
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