WT/TPR/M/281  
2 August 2013  
(00-0000)  Page: 1/25  
Trade Policy Review Body  
13 and 15 May 2013   
 
TRADE POLICY REVIEW 
MACAO, CHINA 
DRAFT  RECORD OF MEETING 
Chairperson:  H.E. Mr. Joakim Reiter (Sweden) 
 
 
Page 
1   INTRODUCTORY REMARK S BY THE CHAI RPERSON ...................................................... 2  
2   OPENING STATEMENT BY THE REPR ESENTATIVE OF MACAO, CHINA .......................... 4  
3   STATEMENT BY THE DISCU SSANT ............................................................................... 6  
4   STATEMENTS BY MEMBERS.......................................................................................... 8  
5   REPLIES BY THE REPRESENTATIVE OF MACAO, CHINA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 19  
6   CONCLUDING REMARKS BY THE CHAIRPERSON ........................................................ 24  
 
 
Note: Advance written questions by WTO Members and the replies provided by Macao, China are 
reproduced in document WT/TPR/M/281/Add.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/281 • Macao, China 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The fourth Trade Policy Review of Macao, China was held on 13 and 15 May 2013. The 
Chairperson H.E. Mr. Joakim Reiter (Sweden) welcomed the delegation of Macao, China headed by Mr. SOU Tim Peng, Director of Macao Economic Services; to Mr. Raimundo do Rosário, Permanent 
Representative of Macao, China to the WTO; the rest of the delegation from Macao, China; 
colleagues from the mission in Geneva; and the discussant, H.E. Mr. Weerachai Nopsuwanwong (Thailand). 
1.2.  The Chairperson recalled the purpose of th e Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Macao, China was contained in document WT/TPR/G/281 and that of the WT O Secretariat in WT/TPR/S/281. 
1.3.  Macao, China adopted the alternative timeframe for its TPRB meeting. Questions by the 
following delegations had been submitted in writing at least four weeks in advance and had been 
transmitted to the delegation of Macao, China: United States; China; Singapore; Hong Kong, China; Chinese Taipei; EU; India; Canada; and Japan. The following delegations submitted written 
questions after the four week deadline: Austra lia; Malaysia; Turkey; Brazil; and Thailand. 
1.4.  Since its last review in 2007, Macao, China remains an open economy, with few trade and 
investment restrictions. Its economy has been growing fast, at an average rate of 13% per year 
between 2007 and 2012, leading to almost doubling of GDP during the period of review. 
1.5.  The fast economic growth was led by services exports, in particular tourism including gaming. 
The effect of opening competition in the gaming sector, as reported in 2007, has become more evident: the share of the gaming sector increased from less than one third of GDP before 2007, to 
almost half of GDP in 2011. It now plays a predom inant role in the overall economic activity of 
Macao and also for government revenue. This brings more attention of the Government to economic diversification. 
1.6.  At the last TPR, Members welcomed that all applied tariffs in Macao, China are zero – making 
Macao one of the most open trading partners in the world. However, it was also noted that the share of tariff bindings was also very low, with over 70% tariff lines unbound: a situations that has 
not changed over the last few years. In 2007, Members urged Macao, China to expand its tariff 
binding coverage and the authorities indicated a willingness to do so through the DDA negotiations.  
1.7.  In the previous review, Members also no ted that a number of services sectors had been 
liberalized and that Macao, China's revised GATS offer in 2005 could be considered to be relatively 
comprehensive. Since then, it has not made any other revisions or tabled any new offers of its GATS commitments. 
1.8.  Another element of continuity between this an d the previous review is the effect of the Closer 
Economic Partnership Arrangement (CEPA) with China on Macao's economy. In 2007, Members noted the current and potential benefits from the CEPA in terms of both the opportunities for at 
least partial diversification of economic activities and for ensuring a steady and expanding flow of 
visitors and tourists to Macao, China, mainly as a result of the Individual Traveller Scheme. Many of those benefits have indeed materialized, an d the Individual Traveller Scheme has enabled 
strong growth in the number of tourists to Macao, China. But the prospect for greater trade and 
economic diversification, created by CEPA , has yet to fully come to fruition.  
1.9.  In 2007, Members noted the lack of a comprehensive competition policy law to address, for 
example, the activities of private companies with  exclusive rights under government concessions 
and consumer protection. While recognizing that Macao’s openness ensures low entry cost for 
business and therefore promotes competition, there is still no overarching competition legislation in Macao, China. Competition provisions are scattered in various sectorial regulations.  
1.10.  In the 2007 review, some Members encouraged  Macao, China to consider joining the GPA. 
The public procurement regime in Macao, China is  fairly open and during the period of review 
foreign participation has further increased. In 2011, foreign supplies accounted for 27% of procurement contracts centrally signed by the Financial Services Bureau, up from 9% in 2007. The WT/TPR/M/281 • Macao, China 
 
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  position of Macao Government in joining the GPA could therefore be of renewed interest for our 
discussion today. 
1.11.  Finally, Macao, China does not have any outstanding notification in the WTO Central 
Registry of Notifications. Members would apprecia te the efforts of Macao, China in keeping its 
notifications up to date. WT/TPR/M/281 • Macao, China 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF MACAO, CHINA (MR. SOU TIM 
PENG) 
2.1.  Macao, China welcomes its fourth Trade Policy Review. This Review provides Macao, China 
with the opportunity to bring Members’ attention to progress in improving its trade policy regime, 
in accordance with the Basic Law of the Maca o Special Administrative Region (MSAR) of the 
People’s Republic of China and the WTO’s underl ying principles, notably, transparency. At the 
same time, it highlights the rapid economic and so cial development of Macao, China, and the role 
of key trade and trade-related policies in this process, as well as future challenges. 
2.2.  Under the principle of “one-country, two sy stems” in the Basic Law, the Macao SAR continues 
to enjoy a high degree of autonomy in its economic and trade relations. Macao, China remains one of the WTO’s most open and free economies. Not only is the Macao SAR a free port, with no tariffs 
or other charges or restrictions on its imports or exports, there are no barriers to foreign direct 
investment. Despite the global financial crisis, no protectionist measures have been implemented since the previous TPR.   
2.3.  Over the past six years, Macao, China ha s enjoyed robust economic growth, with real GDP 
growing at an average annual rate of 13.1%. The une mployment rate fell to a record low of 1.9% 
in the first quarter of 2013. Prudent fiscal policy  (namely consistent fiscal surplus and debt-free 
Government) together with the peg of the Macao pataca (MOP) to the Hong Kong dollar (and thus 
indirectly to the U.S. dollar) have contributed to macroeconomic stability and strengthened the confidence of local and foreign investors in Macao, China. In addition, its open and free markets provide flexibility in responding to external shocks, including the global financial crisis. 
2.4.  Macao, China supports the multilateral  trading system (MTS). In formulating and 
implementing its trade policies, the Macao SAR adheres to the basic WTO principles of non-discrimination, predictability and transparency. Macao, China continues to fulfil its obligation 
to notify Members fully of changes in those tr ade policies subject to WTO agreements. Moreover, 
the Macao SAR has considerably improved its offer of commitments on services and remains open to binding more of its tariff lines in the area of non-agricultural market access. 
2.5.  On the regional front, the Macao SAR has been deepening its economic and trade ties with 
the Mainland, especially the Pearl River Delta (PRD) region, as a consequence of supplements to the Closer Economic Partnership Arrangement (CEPA) with Mainland China.  The CEPA liberalizes trade in goods and services and facilitates trade between Macao, China and Mainland China. At the 
same time, the Macao SAR has established itself as a platform between China and the 
Portuguese-speaking countries to promote trade and economic cooperation, following the establishment, in 2003, of the Forum for Econ omic and Trade Cooperat ion between China and 
Portuguese-speaking countries. 
2.6.  Turning to sectoral developments, the tr ansformation of the economy into a primarily 
service-based one has continued, with the serv ices sector accounting for 94% of GDP. In 
particular, the Government attaches high priority to developing the Macao SAR into a “World 
Centre of Tourism and Leisure” destination, in which business tourism, involving meetings, incentives, conventions and exhibitions (MICE), also takes root. The Macao SAR’s international reputation regarding cultural tourism has been enhanced by the designation of its Historic Centre, 
by UNESCO, as a World Heritage Site. The Government’s goal is to broaden the Macao SAR’s 
attractiveness by facilitating the development of family-oriented leisure resorts and other business 
tourism attractions. 
2.7.  Meanwhile, a blueprint for the development of  the cultural and creative industries has been 
set up in 2010 to promote and nurture young talent in the Macao SAR.  
2.8.  Also, following the completion of major venues,  the MICE activities have been taking shape in 
recent years. To facilitate its growth, the Macao SAR Government has established the Committee 
on MICE development, which aims to advise the Government in formulating strategies and measures to support the development of the sector.   WT/TPR/M/281 • Macao, China 
 
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  2.9.  The Government has continued to liberalize its predominantly service-oriented economy. For 
instance, since the last Review, public bus services have increased the number of operators, and telecommunications have been liberalized. 
2.10.  In parallel with the progressive liberalization of the services sectors, another notable reform 
during the period under review is the establishment of the Financial Intelligence Unit as 
anti-money-laundering measures, and the extension of the jurisdiction of the Commission Against 
Corruption to the private sector in March 2010, as fulfilment of Macao SAR’s international 
obligations under the United Nations Convention Against Corruption. This reform also enhances 
and improves the business environment of Macao, China. 
2.11.  Attracting FDI and the associated know -how on technology and management are very 
important objectives of Government policy. Macao, China has long been open to foreign direct 
i n v e s t m e n t ,  w i t h  n o  r e s t r i c t i o n s  o r  c o n t r o l s  w h a t s o e v e r  o n  F D I  o r  r e p a t r i a t i o n  o f  p r o f i t s .  I t s  
long-standing openness to FDI is exemplified by the strong representation of foreign-owned companies in the main sectors of the economy, including aviation, banking and insurance, 
construction, electricity, gaming, hotels, retail, restaurant, telecommunications and water supply.  
2.12.  Fully aware of the important role of intellect ual property rights protection in attracting more 
FDI, the Government continues to strengthen transparency, the legal framework and enforcement 
of IPR laws, especially concerning copyright and related rights and optical disc piracy. Accordingly, 
an amendment to the legislation on Copyright an d Related Rights was enacted in 2012, with the 
aim of strengthening copyright protection of digi tal environment. More specifically, the amendment 
provides protection for technological measures and electronic information for copyright 
management, as well as criminal penalties in respect of copyright violations as a result of 
dissemination via the Internet. 
2.13.  Another major policy priority involves the development of infrastructure, namely the 
on-going construction of the Hong Kong-Zhuhai- Macao Bridge and an integrated urban public 
transport system, the Light Rapid Transit (LRT). Th ese projects will provide better connectivity and 
integration into the Pearl River Delta region.   
2.14.  In order to ensure inclusive growth and bett er quality of life, the Government has also been 
implementing various social policies in the areas of education, healthcare, social security, and public housing.   
2.15.  Looking ahead, the Government will continue to strengthen the existing economic 
developments and the competitiveness of Macao SAR enterprises. Improved competitiveness will 
enable these enterprises to take advantage of ne w trading opportunities opened up by regional 
and multilateral trade liberalisation and diversification of the Macao SAR’s highly open and market-
oriented economy.   WT/TPR/M/281 • Macao, China 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  My comments will focus on the genera l picture of Macao, China’s macroeconomic 
development; the nature of its economy; its role in regional and multilateral trade, and concerns and questions raised by Members. 
3.2.  Macao, China continues to be a very open economy, with zero-rated applied tariffs, and few 
restrictions on trade and investment. Trade in goods and services account for approximately 160% of GDP, which indicates how much Macao, China relies on trade and at the same time, how much 
this small-sized land of 30 square-kilometres has contributed to the world economy. Macao, 
China’s economic growth has been strong and steady  since its last review in 2007. This is shown in 
the record of mostly double-digit GDP annual grow th rates, with only a brief interruption during 
the global economic crisis in 2008 and 2009. Macao maintains a simple tax structure and low tax 
rates.   
3.3.  Macao, China’s strong economic performanc e also shows in the continuous fiscal surpluses 
since 2001, mainly thanks to the increase in total government revenue. In 2011, its fiscal surplus 
accounted for 26% of GDP, up from 21% in 2007. 
3.4.  In terms of its monetary situation, Macao’s currency, the pataca, is pegged to the Hong Kong 
dollar and in turn indirectly to the U.S. dollar. This caused the pataca to depreciate against the 
currencies of Macao’s major trading partners, includ ing China during the review period. As a result, 
Macao needed to pay more for imports. 
3.5.  Macao, China’s fast growing economy due to the services sector, especially gaming, also 
brought about an increase in price levels with an inflation of around 6% in the first half of 2012. In 
the meantime, the unemployment rate decreased to a record low of 2% in the third quarter of 
2012, due to the growth of the services indust ry. The Government has adopted a number of 
measures to nurture an attractive business environment, for example, measures to open the 
telecommunication market and to introduce competition in the public utility sector. 
3.6.  I now turn to my second point, that is, th e main characteristic of Macao, China’s economy. 
3.7.  There is a saying, that one should “never  underestimate small people with big dreams,” 
which I find quite fitting for Macao, China’s econom y. With a territory of only 30 square-kilometres 
and a population of less than 600,000, Macao has continued to maintain a very open economy, 
increasing its strength as a services exporter, and making efforts to consistently diversify its economy. 
3.8.  Over the years, Macao’s economy became more and more services-oriented with services 
accounting for about 90% of GDP. The recorded grow th rates during the review period were led by 
services exports, in particular tourism including gaming. The gaming sector alone accounted for 
45% of GDP and 20% of employment , from which direct taxation accounted for about 80% of total 
government revenue. This mainly contributed to the strong fiscal surpluses and low level of unemployment over time. It has also been observed that half of the foreign direct investment into 
Macao was in the gaming sector, and the competition between gaming operators has in turn 
stimulated a prospering tourism sector. 
3.9.  Having said that, the fast growth of th e economy and the dominance of the gaming sector 
have placed upward pressure on prices, in particul ar on land and labour. Higher local factor prices 
in turn harm the competitiveness of non-gaming sectors, including manufacturing, a sector that 
continued to drop from 2.9% of the GDP share in 2007 to 0.7% in 2011. Merchandise exports also dropped 65% during the review period. 
3.10.  The Government’s efforts in its economic policy have been appreciated. Recently, the 
Government took sound decisions to regulate the scope and pace of the gaming sector's expansion, and at the same time to diversify th e economy, including facilitating the development 
of non-gaming services. All of these were implemented without losing the focus of maintaining the 
sustainable development of the gaming industry. Th is direction will likely contribute to a more 
sustainable economic development and less vulnerability to external conditions. WT/TPR/M/281 • Macao, China 
 
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  3.11.  In my third point, I will examine Macao, China’s role in the regional and multilateral trade.  
Macao has promoted economic diversification and increasing regional cooperation as its top priorities. According to the statistics shown in the Secretariat’s Report, the Closer Economic Partnership Arrangement or CEPA with China will li kely contribute to additional opportunities for 
Macao’s future economic development. CEPA is expected to offer not only new market 
opportunities for Macao’s business but also chances for foreign investors to invest and operate business in Macao. It is well noted that total goods exports under CEPA arose to 85.19 million 
patacas in 2011, from 39 million in 2009 and 28 million in 2007. The Individual Traveller Scheme 
under CEPA, where visa restrictions on travel by Mainland Chinese have been relaxed, has rendered strong growth in the number of tourists to Macao. Whether CEPA will help foster the continuing revival of Macao, China’s textile and clothing sector and the newly-developed 
processing industries is to be followed up in the coming years. I hope that Macao authorities’ 
attempt to utilize the resources and opportunities offered by the CEPA will bear fruit and produce increasing economic diversification and sustainability. 
3.12.  With regards to the matters under the WTO,  Macao, China’s notification record has been 
flawless as there is no outstanding notification in the WTO. Nevertheless, even though Macao remains a very open economy and continues to retain its status as free port, its tariff binding 
remains quite restricted, with around 70% of its tariff lines still unbound. 
3.13.  The Report by the Secretariat also pointed out that foreign presence in government 
procurement has remarkably increased during the period under review, but Macao, China has not yet become a signatory to or even an obse rver of the WTO Agreement on Government 
Procurement (GPA). I believe that Members would be interested in hearing Macao’s position on this 
issue. 
3.14.  My fourth and last point concerns ques tions and issues raised by Members. Several 
Members expressed interest in the issues that I have mentioned, for instance, Macao’s further 
policies or measures to help diversify the economy, including some in-force measures in the tourism sectors, such as eligibility for benefit from the Government's tourism promotion 
programme, and the issuance of new licences for hotels; its position in participating in the WTO 
Agreement on Government Procurement; and th e implementations of CEPA between China and 
Macao, China. 
3.15.  Several Members also seek details on specific measures and particular sectors. In 
intellectual property rights for instance, questions arise on clarifications on certain provisions of 
the Copyright and Related Rights, and the extensio n of invention patent rights from China to 
Macao, China. Questions regarding sanitary and phytosanitary requirements have also been 
raised, including the functionalities of the proposed  Food Safety Centre, the proposed Food Safety 
Law and the practice of SPS measures, for example,  the criteria for SPS fees suspension, and the 
in-force BSE measures. Members enquire about conditions of market access in the transport 
services and the enforcement of competition policies across sectors. 
3.16.  Reading through the Reports by the Secr etariat and the Macao Government, and questions 
raised by Members, I hardly see any serious concer ns on any particular trade issues. I would like 
to express my appreciation to Macao, China for using the alternative timeframe for this review, 
which I find to be very beneficial and shows true commitment in answering Members’ advance 
written questions four days before the meeting. This has allowed us ample time to study Macao’s responses and hopefully to have active particip ation during the two days of the meeting. My 
thanks also go to Members for showing strong  interest in this small open economy.  
3.17.  As we all know, “good things come in smal l packages”. I have gone over a number of good 
“things” that are worth being mentioned while also pointing out some concerns. I now turn to 
Members in this room to share comments and questions. And with this, allow me to wish Macao, 
China a successful Trade Policy Review. WT/TPR/M/281 • Macao, China 
 
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  4  STATEMENTS BY MEMBERS 
UNITED  STATES 
4.1.  The United States recognizes Macao, China’s rich history as a focal point for international 
trade and values its unique character as a home to different ethnic and cultural backgrounds. 
Since the 16th century, Macao, China has been a hub for traders and missionaries, serving as a 
location of cultural and economic exchange between China and the West.   
4.2.  Macao, China has long maintained an open trade and investment regime, and continues to 
demonstrate a commitment to free-market principles. Macao, China’s economy has maintained 
strong growth since its last review, averaging an  annual GDP growth rate of 13.3% in the review 
period. GDP per capita nearly doubled from 2007 to 2011, driven by fast growth since 2010. 
4.3.  The United States has long been an important trading partner of Macao, China. Bilateral 
goods trade between the United States and Macao, China totalled US$440 million in 2012, a 9% 
increase over 2011. U.S. foreign direct investment in Macao, China was US$910 million in 2010. Trade relations between the United States and Ma cao, China remain strong, despite the recent 
global financial crisis, and we look forward to continuing this productive and dynamic relationship. 
4.4.  We appreciate Macao, China’s constructive efforts to support the WTO as an institution, as 
well as its continued efforts to liberalize its economy during the period under review. As the 
Secretariat noted, such efforts have been demo nstrated through the adoption of measures to 
introduce competition to the public utility sector and the telecommunication sector. Macao, China has also adopted measures to promote a more attractive business environment such as a simple taxation structure and lower level of administrative fees. The United States also notes Macao, 
China’s economic policy goal to ensure a busine ss environment that is secure, with minimal trade 
distorting intervention. We hope Macao, China will continue to incorporate market-based mechanisms in its trade policy initiatives.  
4.5.  The United States commends Macao, China on its reported sharp increase in 2011 in the 
confiscation of articles that infringe intellectual property rights (IPR), including compact discs, pharmaceuticals, and other products. The United States welcomes indications that Macao, China 
intends to devote greater focus to combating piracy over the Internet. The newly amended 
Copyright and Related Rights Code aims to strengthen copyright protection in a digital environment, including the blocking of retran smission of pirated signals. If implemented 
effectively, new enforcement efforts and legi slative changes could support Macao, China’s 
continued efforts to strengthen the legal framewor k and enforcement of IPR laws. As we indicated 
in our advance written questions, the Secretariat’ s report notes that the WIPO Copyright Treaty 
and WIPO Performances and Phonograms Treaty ha ve not been extended to Macao, China. We 
were therefore pleased to receive Macao, China’s response that arrangements for this extension 
have been initiated. 
4.6.  The United States appreciates Macao, Chin a’s assurance that all sanitary and phytosanitary 
(SPS) measures are in line with international standards, agreements or recommendations from 
relevant international organizations as approved by the WTO Agreement on Sanitary and Phytosanitary Measures. However, we note that Macao, China’s SPS measure relating to bovine 
spongiform encephalopathy (BSE) appears inconsistent with OIE guidelines. It is our 
understanding that this BSE measure limits beef product market access to Macao, China to 
deboned beef from animals less than 30 months of age, and, as a result, the product scope appears to be inconsistent with OIE guidelines for countries such as the United States. The United 
States urges Macao, China to take action in a timely manner to bring the measure into full 
compliance with international standards.  
4.7.  Regarding Macao, China’s efforts to addr ess food safety concerns, we understand Macao, 
China’s new Food Safety Law, once implemented, will establish a Food Safety Center. We look 
forward to hearing more regarding the role that this Center will have with regard to SPS issues affecting food and other agricultural products.  
4.8.  We would also note that Macao, China indicated in its report that it has launched various 
programs to provide assistance to exporting industries, including through assistance related to WT/TPR/M/281 • Macao, China 
 
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  technical production, product design, and vocational training for the textiles and clothing industry. 
The United States would appreciate further information from Macao, China regarding the type of programs and assistance, financial or otherwise, that are provided to these industries.  
4.9.  The United States submitted advance written questions on these and other issues, including 
import licensing and safeguards notification. We appreciate Macao, China’s responses to all of our 
questions.  
4.10.  The United States shares Macao, China’s st rong support for the multilateral trading system. 
The United States recognizes that Macao, China is an open economy and a strong proponent of 
free trade, and shares a strong common interest in its continued growth and prosperity. We therefore hope that this Trade Policy Review will help Macao, China build further upon its strong record of contributions to the world trading sy stem. We look forward to continued work with 
Macao, China, and other WTO Members, to stre ngthen and promote the multilateral trading 
system.   
CHINA 
4.11.  We are glad to see that Macao, China has weathered the global financial crisis pretty well 
with a growth rate of above 13%, its per capita GDP almost doubled and the unemployment rate declined to a record low of 2% during the review  period. As the Government report rightly pointed 
out, this astonishing achievement should be attrib uted to the resilience of the economy of Macao, 
China and Closer Economic Partnership Arrangemen t (CEPA) signed with China. We believe that 
this resilience should also be attributed to Macao, China’s constantly liberal and facilitative trade and investment regime and its continued efforts to economic integration with the multilateral and 
regional economies. In order to achieve a sust ainable and inclusive growth, the Macao, China’s 
government has adopted a number of measures to nurture an attractive business environment and 
hence to diversify its economy.  
4.12.  In 2004, CEPA between China and Macao, China came into force. Ever since, nine 
Supplemental agreements under the CEPA came into force successively, which have greatly deepened our economic integration. From July 2003 to 2012, there are 54.9 million Chinese tourist 
arrivals facilitated by the CEPA’s “Individual Traveller Scheme (ITS)”. During the review period, we 
are glad to witness the sound performance of trade between Macao, China and Mainland China; China remained the Macao, China’s largest trade partner. Trade between the straits has reached US$3 billion in 2012, an increase of 18% year on  year. China’s import from Macao, China also 
grew by 72% over the same period. On investment, with further diminished barriers on investment 
by CEPA and the Supplemental Agreements, by  the end of 2012, the aggregate total of 
non-financial FDI of Macao, China in China amounted to US$10.9 billion. 
4.13.  Macao, China is one of the WTO’s most op en and free economies with a firm and constant 
commitment to trade liberalization. China highly commends Macao, China for being fully committed to the Doha Development Agenda and being willing to bind more of its tariff lines and 
has improved its offer of services commitments to further trade liberalization. We enjoy fruitful 
cooperation with Permanent Representative Mr. Raimundo do Rosário and his team in Geneva and look forward to the same cooperation in the future. 
HONG
 KONG,  CHINA 
4.14.  Just 60 kilometres apart, Hong Kong and Macao, the two special administrative regions of 
China, maintain a close relationship in many areas: trade, tourism, culture, law and order, sports – just to name a few. We are close not only because we are the only two Cantonese-speaking 
Members here – when I say we speak the same language, I mean it – both Hong Kong and Macao 
started as a modest "entrepôt", we both are externally-oriented and heavily dependent on trade, and we both firmly believe in free trade and liberalisation.     
4.15.  We do not just talk it, we do it. Just to  give you two examples. In Hong Kong, we abolished 
the duties on wines in 2008 and we sprang to be come the world's number one wine auction centre 
in three years' time. In Macao, they liberalised the gaming sector in 2002. They overtook Vegas in 
terms of turnover just a few years later. WT/TPR/M/281 • Macao, China 
 
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  4.16.  And looking at our bilateral trade statistics, our main exports to Macao in 2012 were 
photographic apparatus equipment and supplies, watches and clocks, jewellery and telecommunications and related equipment. In return, Macao's main exports to Hong Kong were photographic apparatus equipment and supplies, watches and clocks, jewellery and 
telecommunications and related equipment. This must  prove something – if only that trade is good 
for you. 
4.17.  Hong Kong, China is pleased to see Macao, China maintain its open economy with 
zero-rated applied tariffs. We also commend it for maintaining few restrictions on trade and 
investment.  We look forward to developing ev en closer ties in all areas between the two 
economies. 
4.18.  Turning to the specific aspects of Macao, China's trade policies, we are pleased to note that 
Macao, China maintains no restrictions or controls over foreign direct investment or the use of 
foreign capital in existing or newly established companies. A number of tax and non-tax incentives for foreign and local investors, e.g. complete or partial exemptions from corporate profits tax and 
business registration tax, have been implemented – no doubt to help broaden the economic base.  
However, foreign direct investment inflow into Macao, China has concentrated in the gaming industry and investment outflow has been low. We note that, in recent years, Macao, China has 
introduced a series of policies and measures to foster the development of regional economic 
cooperation, and a number of investment projects have been initiated by its enterprises in neighbouring regions. We believe that these efforts will increase both foreign investment inflows into and outflows from Macao, China, and contribute to the diversification of its economy. 
4.19.  We commend Macao, China’s efforts in providing trade facilitation measures. We note in 
particular the paperless clearance system that has been implemented since May 2011. We welcome Macao, China's plan to extend the syst em to import licensing and transit documents. 
4.20.  On services, we note that the economic growth of Macao, China in recent years has been 
led by an expansion in services exports. The grow th, however, may be overly concentrated in the 
tourism sector, particularly gaming services. We applaud the efforts of Macao, China to diversify 
its services industry and hope to see this bear fruit. We also commend Macao, China for its 
strategic move fully to liberalise the telecommunications services during the period of Review. We thank Macao, China for responding to our written question on the progress of the review on the 
competition-related provisions for the telecommunications sector. We take note that the review is 
still underway. We believe that a strong services infrastructure that provides a level playing field to 
all suppliers is one of the keys to sustainable grow th. We hope to see a positive review result in 
this light.   
4.21.  We note that the regulatory framework fo r competition has remained unchanged in Macao, 
China since the last Review. Currently, there is no overarching competition legislation in force.  During the period under Review, competition has been introduced into such sectors as bus 
services, electricity and telecommunications. We en courage Macao, China to continue keeping this 
in view and, as appropriate, consider the need for a comprehensive competition law. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.22.  Given our close geographical and economic relationship, we are particularly pleased to learn 
that Macao, China has been enjoying strong GDP growth during the period under review, at an 
average annual rate of over 13%, mainly due to the successful opening up of the gaming sector 
since 2002. Indeed, the gaming sector, including tourism, accounts alone for almost 45% of GDP, 
and 21% of total employment. In terms of revenues, it has become the largest gaming market in 
the world. However, this heavy dependence on one unique sector, which relies mainly on the external economic environment, does make it more vulnerable to sudden external economic 
changes or financial crises. Therefore, efforts to diversify its economy should be one of the 
Government’s top priorities, and we are pleased to see that some progress has been made in this respect, especially through a CEPA with China and other relevant cooperative initiatives in the region.   
4.23.  According to the Secretariat Report, Maca o, China endeavours to implement a transparent 
and open government procurement regime. It clai ms that its public procurement procedures and WT/TPR/M/281 • Macao, China 
 
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  disciplines are in compliance with international standards with respect to tender offers, collection, 
the opening and evaluation of the tender document , the awarding of the contract and monitoring.  
In fact, with its extensive experience and such a well-established system, we believe that Macao, China is an ideal candidate to become a signatory to the WTO Government Procurement 
Agreement (GPA), and we would strongly encourage it to join.  
4.24.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has already 
addressed several written questions to Macao, China in advance, on subjects such as measures, 
benefits and challenges relating to the CEPA, economic diversification, the conventions and 
exhibitions industry, the GPA and anti-corruption, an d we are thankful for its responses. My capital 
is reviewing them carefully and we may return to them at a later stage.  
4.25.  If Macao, China aims, as it says, to develop itself into a world centre of tourism and leisure, 
we can only encourage it to liberalize its Services sector even further. Although its applied tariff 
rates for all goods are zero, more than 70% of tari ffs are still unbound, therefore, the expansion of 
tariff binding by Macao, China would also be very  welcome. With more than 1.2 million tourists 
from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu travelling to Macao, 
China each year, there is plenty of potential for strengthening our bilateral relationship in areas of common interest. We look forward to further economic cooperation in the future. 
EUROPEAN
 UNION 
4.26.  We welcome the opportunity to discuss th e important economic and trade developments 
that took place since 2007. The EU also welcomes Macao China’s efforts towards the necessary diversification of its economy. The economy, which is based on market-led principles guided by the 
rule of law, has sustained outstanding economic growth rates with GDP leaping more than 40% in 
the three consecutive years from 2009 in 2011 whilst decreasing unemployment. The EU stands ready to actively engage with Macao on the diversification of its economy. An open, transparent 
and non-discriminatory trade and investment environment is a key factor for the attainment of 
that goal.  
4.27.  Let me start by recalling the deep historical  and economic ties that relate the EU to the SAR 
of Macao, China. The EU’s relations with the Macao SAR are based on common values, a European 
heritage and shared interests in the economy, the environment, education and culture. The EU welcomes the special administrative region’s authorities' sustained efforts to promote good governance and transparency, to enhance its people’s access to a fair share of the growth fruits 
and its on-going strategy to diversify its economy with the view to becoming a world tourism and 
leisure centre. The WTO Secretariat report has noted that the shortage of labour may be an obstacle to the diversification of the economy and the EU would like to share its concerns in this 
regard. Given the very low unemployment rate – effectively full employment – and continued 
economic growth, the EU would encourage Macao, China also taking into account its other policy priorities, to ensure the sufficient availability foreign labour.  
4.28.  The EU welcomes the efforts to develop a more sustainable and diversified growth based in 
particular on tourism and to enhance transportation means. Regarding the Hengqin island project, the EU is very interested in learning more about the future developments and initiatives related. 
4.29.  The European Union is among Macao SAR's  most important trade partners accounting for 
23.6% of its overall trade flows. EU exports have grown by 58% from 2010 to 2011 following the 
robust import demand led by the high growth of the GDP. Macao SAR is a growing market for 
European goods and services and the EU notes with satisfaction a number of reforms that improve 
the business climate in particular the entry into  force since June 2012 of the amended Copyright 
Code which fully addresses EU concerns of piracy  transmission of broadcasts, including but not 
only sport broadcasts. 
4.30.  The EU has submitted some advanced questions on a few areas where the EU envisages 
potential for further trade and investment. Today, I would merely emphasize the following aspects that are of significant interest to us. 
4.31.  The first issue we would like to raise is public procurement. The EU is pleased to note that 
the legal framework in place in Macao, China is generally in line with international standards. Also, WT/TPR/M/281 • Macao, China 
 
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  the steady improvement of transparency reflects positively on the government procurement. We 
strongly encourage Macao, China to continue the efforts to increase fair treatment for foreign bidders and enhance legal compliance and predictabi lity of the procurement process. The EU would 
highly value a swift move towards accession of Macao, China to the WTO Government Procurement 
Agreement. While a legal framework reflecting international standards sends an important signal 
to bidders, ensuring that the application and observance of the rules also reflects international standards is equally important. 
4.32.  The second issue we would like to addre ss refers to the rationale for the lack of a 
comprehensive competition policy. The EU would be interested to know if there is any intention to adopt such as law in order to ensuring a level playing field for all businesses and increasing the level of consumer welfare. 
4.33.  Regarding IPR, as stated earlier, there are a number of positive developments that the EU 
welcomes. The WTO Secretariat report notes that a review has been made of the industrial property code and the EU would be pleased to know  in particular whether pharmaceutical products 
may be covered in a future revision of the code. 
4.34.  Finally, regarding the objective of the go vernment to promote sustainable growth and the 
role of public transport in this domain, the EU is interested in any information the authorities could 
provide regarding future plans for the light rapid sy stem. An issue of interest is whether there will 
be a public concession and if so, will there be a public tender for the rail services or should the 
service be attributed to a publicly owned entity? 
4.35.  In conclusion, the EU looks forward to this TPR and to the added value it may have in 
facilitating Macao, China to reach its long term objective of sustainable and diversified growth. 
INDIA 4.36.  India compliments Macao, China for its rema rkable growth during the period under review, 
recording an average annual GDP growth rate of 13.3%. After a brief slowdown due to the global 
financial crisis, Macao China’s GDP growth rate bounced back to over 20% in 2010 and 2011. GDP per capita doubled to US$67,000 in 2011 and unemployment fell to a record low of 2%. This 
extraordinary growth has been primarily led by exports of services, dominated by tourism and 
gaming. The rebound in growth was also made possible by large scale public investment in infrastructure and construction as well as Macao China’s deepening economic and trade ties with Mainland China.   
4.37.  The services sector plays an important ro le in Macao China’s economy, accounting for 94% 
of its GDP and 97% of its total exports which are made up almost entirely of tourism, including gaming. Over half the FDI inflows in to Macao, China go into the gaming sector.  
4.38.  An open economy with a liberal trade and investment regime, Macao, China is heavily 
dependent on trade, which is equivalent to 160% of its GDP. Because of this its growth is closely linked to external demand and growth of its tr ading partners. While its strong services exports 
have helped Macao, China maintain a current account surplus, they have also made Macao, China 
vulnerable to external shocks. Moreover, although Macao China is a free port where goods enter with zero tariffs and few border measures, the manufacturing sector has continued to shrink because of high production costs. 
4.39.  We, therefore, welcome Macao, China’s efforts to diversify its economy by developing non-
gaming services like conventions and exhibitions, cultural and creative industries, traditional medicine and commercial and trade services. We also welcome Macao, China’s efforts to nurture 
manufacturing with a view to creating new engines for growth and its support for small and 
medium enterprises to improve their competitiveness.  
4.40.  Ensuring inclusive growth, improving public infrastructure, human resource development, 
economic diversification and enhancing competition remain the primary challenges confronting 
Macao, China. Improving competitiveness will help Macao, China to take advantage of new trading opportunities opened by regional and multilateral trade liberalization. We wish Macao, China success in addressing these challenges and carrying out the necessary reforms.  WT/TPR/M/281 • Macao, China 
 
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  4.41.  On the bilateral front, India and Macao, China enjoy warm and cordial relations. Bilateral 
trade in 2011-12 amounted to US$2.34 million reflecti ng a growth of over 40% from the previous 
year. In January 2012, both sides concluded a Ta x Information Exchange Agreement enabling the 
two countries to provide mutual assistance for enforcement of domestic tax laws through effective 
exchange of information including banking information. Macao, China has been promoting tourism 
from India and during 2012, tourist arrivals fr om India crossed 150,000. We look forward to 
enhanced bilateral cooperation with Macao, China in areas of common interest. 
CANADA 
4.42.  Macao, China’s strong growth during the 2008-2011 review period is impressive and 
instructive, given the Government has continued to encourage this growth through policies that support openness and competitiveness. These include the elimination of certain import licenses, 
the introduction of competition in the public utilities sector, and amendments to enhance copyright 
protection in Macao SAR.   
4.43.  Of particular note is the growth exhibited in its tourism and gaming industries. Since the 
Macao SAR opened its gaming sector in 2002, it has attracted significant foreign investment and 
been transformed into the world’s leading gaming destination. Notwithstanding the central role of the gaming sector as an important driver of economic growth, the Government of the MSAR also 
recognizes that increased diversification of its economy would be enormously beneficial. 
4.44.  Canada commends the Government of the MSAR for its efforts in this regard. The 
development of Macao, China into a full-fledged tourism and meeting, incentive, convention and exhibition (MICE) destination is an ambitious go al, and one which Canada supports. On this note, 
we wish to highlight several important initiatives,  as well as suggest three things the government 
could do to further support these efforts.   
4.45.  First, the start of construction of th e Hong Kong-Zhuhai-Macao Bridge is an integral 
component for future growth. This infrastructure improvement will certainly enhance Macao, 
China’s competitive position as a meeting and convention centre serving the Pearl River Delta Region. Publicly and privately-funded construction of  infrastructure and tourism-related facilities is 
expected to be one of the driving forces of Maca o, China’s economic growth in the years to come. 
In light of this, Canada encourages the Govern ment of the MSAR to put in place open and 
competitive government procurement procedures and to consider observer status for the Committee on Government Procurement, from which it may consider the eventual goal of acceding 
to the Agreement on Government Procurement. 
4.46.  Second, Macao, China’s labour policies and limited labour supply continue to pose 
challenges to the region’s competitiveness. The lack of qualified labour available to foreign 
companies is a direct result of complicated policies that do not address the realities of Macao, 
China’s labour shortage. Such policies include case-by-case basis determination of import labour quotas and local hiring quotas for casinos. We ur ge the Government of the Macao SAR to consider 
more predictable, transparent and flexible policies in this regard, which will give a further boost to 
the conditions for incentivising private sector interests to invest in the MSAR’s economy.   
4.47.  Finally, we look forward to learning more about Macao, China’s recently passed Food Safety 
Law, which establishes a food surveillance and management regime, as well as the types of food 
s a f e t y  s t a n d a r d s  t h a t  w i l l  b e  d e v e l o p e d  u n d e r  t h e  L a w .  W e  h o p e  t h a t  t h i s  r e g i m e  i s  b a s e d  o n  
applicable international standards and guidelines so as to protect the safety of consumers while also maintaining the current business-friendly environment for traders in the agriculture and food 
industry. 
JAPAN 4.48.  To start off, let me commend Macao for adopting the alternative timelines for distribution 
and receipt of documents, and for providing us with their written answers in advance. 
4.49.  I would like to begin with Macao’s macro-economic environment and policies. According to 
the report by the Secretariat, the economy of Ma cao SAR grew strongly during the review period, 
from 2007 to 2012. GDP growth rates were double-digit, except in 2008 and 2009, reflecting the WT/TPR/M/281 • Macao, China 
 
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  impact of the global financial crisis. In addition, GDP per capita almost doubled from US$34,662 in 
2007 to US$67,093 in 2011. 
4.50.  Growth has been led by services exports, in particular tourism, including gaming. However, 
given the gaming sector’s vulnerability to extern al shocks, the development of industries other 
than gaming is essential for maintaining strong economic growth. The Macao SAR Government has 
made efforts to diversify the economy, and Japan hopes the Government will continue its efforts. 
4.51.  Next, let me move to policies on foreign direct investment. The report by the Secretariat 
mentions the openness of the Macao SAR economy. The report said that there are no restrictions 
or controls on foreign direct investment or the use of foreign capital in existing or newly established companies. It also refers to the simplicity of tax regime and assistance to investors to establish a business in Macao SAR. Japan commends those policies for an open market and to 
nurture an attractive business environment and hopes the government will continue to contribute 
to multilateral trading system, including ITA expansion. 
4.52.  Finally, I would like to turn to intellectual property rights. Macao mentioned in its report an 
amendment to the Copyright and Related Rights Code which entered into force in 2012. The 
amendment provides protection for technological measures and electronic information for copyright management, as well as criminal penalties in respect of copyright violations as a result 
of dissemination by means of the Internet. Japan is keen on those developments and looking 
forward to the results of those efforts. 
AUSTRALIA 4.53.  Australia has strong business interests in Macao, China principally in the design, 
construction, project management and fit-out of casinos, marinas and entertainment projects. 
Australia and Macao, China also cooperate on a broad range of issues, including trade and investment, law enforcement and promotion of education and tourism services. 
4.54.  Australia notes the enormous market opening that has been achieved in services in Macao, 
China since the Uruguay Round. In its revised of fer in 2005, Macao, China went some way to 
closing the considerable gap between its bound commitments and actual levels of market 
openness. This is an example of the benefits that would be secured if WTO Members were able to 
conclude the Doha Round. Similarly, an outcome to the Round would lead to a higher level of binding of tariffs by Macao, China: as the Secretariat report notes, although imports enter Macao, China free of tariffs, more than 70% of its tariff lines remain unbound. 
4.55.  Australia congratulates Macao, China on the strong economic growth it has achieved over 
the review period. Australia notes that, rather than turning to protectionist measures during the global crisis, Macao, China continued to liberalise its market, particularly its services market. 
4.56.  As the reports note, growth in Macao, China has in recent years been underpinned by 
development of an extensive local gaming industry, as well as high levels of investment in property and tourism infrastructure. A number of Australian companies supply products and 
services to the gaming industry in Macao, China, and there are a significant number of Australians 
in management positions in the gaming and hospitality sector. 
4.57.  While gaming is expected to continue to dominate the economy of Macao, China in the 
foreseeable future, Australia notes the steps the Government is taking to diversify the economy by 
stimulating other services sectors, including provis ion of conferences, exhibitions, sport, leisure 
and entertainment services. Australia also appreciates recent reforms introduced by the government aimed at enhancing the transparency of  public administration in Macao, China, for 
instance in the provision of information for tax purposes. Australia signed a Tax Information 
Exchange Agreement with Macao, China in 2011. 
4.58.  Australian companies may be interested in pursuing further commercial opportunities as the 
services sector is progressively liberalised, for example in legal services, accounting, construction, 
real estate, advertising, management consulti ng, telecommunications, insurance, banking, 
transport, freight forwarding, warehousing and logistics. WT/TPR/M/281 • Macao, China 
 
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  TURKEY 
4.59.  As was mentioned by Members and underlined by the Secretariat and Government Reports, 
we are happy to observe that Macao, China has been able to sustain 13.3% average annual growth during the period under review largely than ks to the contribution of the services sector. 
4.60.  The Government report emphasized the high degree of openness to trade in services, 
especially to the inward FDI, helping to ensure competition in various services, including aviation, banking, construction, hotels, telecommunication and gaming. It is interesting to note that in 
2011, services accounted about a 90% of GDP in which gaming has a 45% share. 
4.61.  The Secretariat report underlines a kind of Dutch disease effect of gaming on other sectors 
mainly manufacturing. Due to the dominance of gaming sectors and the resulting inflow of money and financial flow to the market, there seems to be an upward pressure on factor prices such as 
land and labour creating this negative effect. 
4.62.  Although the robust growth in tourism services including gaming have created a 
tremendous amount income in these sectors, prices seem to be drastically harming the 
competition and crowding the manufacturing and other sectors out of GDP composition. 
4.63.  As we read from the Secretariat and Government reports, there are serious efforts taken by 
Macao, China to neutralize these effects and diversify the economy. To this end, the Government 
is trying to diversify the economy by facilitating the development of gaming services, such as 
convention and exhibition, cultural and creative  industries, traditional Chinese medicine and 
commercial trade and services.  
4.64.  The Government seems to have also adopted a number of measures in the business 
environment. We think those measures can contribute significantly to the diversification of the 
economy. It is also interesting to note that the Government of Macao, China has also spent important social policy efforts in the review period, including the measures on education, 
healthcare, social policy and housing. 
4.65.  At this point, I would like to ask the distinguished delegation of Macao, China to make a 
comment on what kind of measures the Government has been taken to contain the possible 
negative effects of the gaming sectors on the society. 
4.66.  On the bilateral front, in line with the decline of the trade of manufacturing and trading 
goods in Macao, China's trade, our bilateral trade with the country has also declined from US$12 million in 2008 to less than US$1 million in 2012. 
4.67.  However, our recent exports to Macao, Ch ina have started to take an important increase 
and upward trend recording more than US$1 million in the first two months of this year, implying 
US$12 to US$15 million exports. Although the figure in absolute terms seems to be low, I think 
that the trend is promising for the future bilateral trade relations with Macao, China. 
BRAZIL 4.68.  Brazil notes with satisfaction that Macao,  China’s economy is on a steady course, boasting 
impressive figures and exhibiting some degree of resilience through the present economic crisis. 
Such a performance is underpinned by sound macroeconomic governance, a low level of unemployment and a current account surplus.  
4.69.  One could state with confidence that trade,  notably services trade, has been the growth and 
development engine of Macao’s economy, a free port marked by openness and increasing 
competition, both of which are anchored by a re sponsible regulatory framework. And all of that 
has been achieved against the backdrop of a compliance record with WTO rules and principles that 
makes Macao, China a reputable Member of this Organization, one that could very well serves as a 
role model for countries and territories under similar circumstances and with like characteristics.  
4.70.  For all Macao, China has lately accomplished for the prosperity of its society, significant 
challenges remain to be met. Rising inflation, a contracting manufacturing sector and overreliance WT/TPR/M/281 • Macao, China 
 
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  on few economic sectors and trade partners are, ironically, by-products of Macao, China’s own 
success story in treading towards development by means of specialization.  
4.71.  And yet Macao, China’s government has not stood idly by those difficulties, although 
constrained by such factors as limited availability of land, high labour costs and little leeway for 
monetary policy. Efforts by the special administrati ve region have rightly focused on economic and 
trade diversification, including through regional cooperation, to ease external vulnerability, and 
cost abatement, to curb inflationary pressures. The domestic market, especially construction in 
tourism-related sectors, is also set to play a more prominent role in output growth, in the face of 
sluggish recovery in foreign markets. 
4.72.  Interestingly enough, even though trade value between Macao, China and Brazil amounted 
to a modest US$12,195,516 in 2012, imports by Brazil, far exceeding exports to Macao, are 
heavily centred on manufactured goods such as machinery and sound and image recording 
equipment, thus helping boost the very share of the production structure that Macao has seen shrink and has been striving to reinvigorate.  
4.73.  One should be mindful, on the other hand, that our bilateral relations transcend the trade 
realm. Historical, cultural and linguistic ties add a special sense of purpose and bring greater 
understanding to our bilateral cooperation. Far from being a rhetorical evocation of a remote 
common past, such ties have taken on a distinctive form by evolving into an institutional 
arrangement, one which allows for regular and structured cooperation between Brazil and Macao, China. Within the framework of the Forum for Trade and Economic Co-operation between China and Portuguese-Speaking Countries, Macao, home of its headquarters, plays a unique and 
irreplaceable part acting as a bridge between China and its Portuguese-speaking counterparts, 
including Brazil, which turns Macao into an invaluable services platform for the economic and trade interchange between both sides. 
THAILAND 
4.74.  Thailand has a good relationship with Macao, China. Among different bilateral agreements 
between us are the Air Service Agreement sign ed in 1995 and the Agreement on Exemption of 
Visa Requirements signed in 2002. From 2010 to  2012, the two-way trade between Thailand and 
Macao, China averaged at some US$26.3 million pe r year, with trade value decreasing about 9% 
at the end of 2012 from 2011. In 2010, the Thai Chamber of Commerce in Macao was established, and it is our hope that this trade relationship will continue to be further strengthened through the 
strong connection amongst Thai and Macao, China businesses. 
4.75.  Macao, China and Thailand share similar in terests in nurturing the tourism industry. At the 
end of 2012, Thai visitors to Macao, China increased by 18% since 2011 from 196,000 visitors to 
231,000 visitors. 
4.76.  On the matter of the multilateral trading system, Thailand would like to commend Macao, 
China for maintaining an open economy, with simple tax structure and low tax rates, and only a 
few restrictions on trade and investment. Without any outstanding notifications in the WTO and 
zero-rated applied tariffs, Macao, China, despite its compact economy, is recognized by Members as a strong supporter of the multilateral trading system. 
4.77.  We also support the efforts of Macao, China in diversifying its economy, including facilitating 
the development of non-gaming sectors to reduce vulnerability to external factors. 
4.78.  Thailand submitted questions in advanc e of this meeting regarding the SPS measures 
Macao, China has in place related to the prohibition of imports for poultry products due to the 
threat of avian flu. Recognizing the importan ce of such measures, Thailand seeks further 
information from Macao, China when it plans to lift its ban. We thank Macao, China for the response this morning. We also received more questions from Bangkok today, which we will 
forward to Macao, China this afternoon. Thailand is looking forward to receiving from Macao, China 
a response to these questions in due course. WT/TPR/M/281 • Macao, China 
 
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  ARGENTINA 
4.79.  Nos complace saber que, durante la mayor parte en período bajo revisión (2007-2012), la 
economía de Macao, China, ha experimentado un fuerte crecimiento del PBI con tasas de dos dígitos, con la excepción de los años 2008 y 2009 coincidiendo con el inicio de la crisis económica 
internacional, reasumiendo su ritmo de crecimiento a partir del 2010.  
4.80.  Asimismo, nos complace conocer la casi duplicación del PBI per cápita durante el período de 
revisión, pasando de los 34.662 dólares EE.UU. en 2007 a los 67.093 dólares EE.UU. en 2011. 
4.81.  Estos números tan favorables de crecimiento económico se explican por la importante 
participación del sector servicios en la estructura económica de Macao, China. En especial, la especialización en los sectores del turismo y juego, permitiendo que en 2011 el sector servicios explicara el 90% de su PBI.  
4.82.  Por lo tanto, resaltamos el alto grado de sofisticación del mismo, que le ha permitido 
consagrarse como uno de los destinos de turismo y juego más importantes. 
4.83.  Asimismo, vemos con satisfacción que Macao, China, a los fines de apoyar el crecimiento de 
su industria del turismo, ha abolido en 2008 cier tos impuestos al consumo, que si bien eran 
aplicados por igual tanto a los productos nacionales como a los importados, impactaban mayoritariamente sobre estos últimos en razón de la escasa o nula producción nacional. En 
particular, el impuesto al consumo a las bebidas alcohólicas con una concentración menor al 30%, 
por ejemplo, el vino tinto. 
4.84.  El intercambio comercial entre la Argentina y Macao, China es hoy día bastante modesto y 
no se acerca al volumen que tiene como con otros Miembros de esta Organización. Sin embargo, 
entendemos que ello, más que ser un inconveniente, representa una oportunidad de negocios por 
explorar. 
4.85.  En adición, valoramos el compromiso de Macao, China con alcanzar la conclusión de las 
negociaciones comerciales de la Ronda de Doha que se desarrollan bajo los auspicios la OMC. 
4.86.  Finalizando, y al tiempo de reiterar nuestro reconocimiento por esta nueva oportunidad de 
intercambiar elementos de juicio y consideraciones sobre la Política Comercial de Macao, China, 
permítanos señalar una vez más la relevancia de este ejercicio de transparencia en todos sus 
aspectos y desear éxito a las autoridades de Maca o, China en este cuarto examen de su política 
comercial. 
NIGERIA 
4.87.  Nigeria is happy to note that Macao China is using market openings and foreign investment 
as instruments for economic growth and development despite its small size. The trade policy regime is an excellent example of free, open and stable trading system, which has created a 
favourable environment for business that led to economic development. The economy of MSAR 
resumed its fast growth from 2010 after the financial crisis. The GDP per capita almost doubled, from US$34,662 in 2007 to US$67,093 in 2011. The real  growth of the economy is attributed to 
services exports and large-scale public investments. 
4.88.  Macao, China can be described as mainly services-oriented economy that has accounted for 
about 90% of the country’s GDP and employment; the gaming sector accounted for 45% of GDP 
and 20% of employment. Direct tax from gaming  accounted for about 80% of total government 
revenue, which allowed the MSAR Government to ma intain a fiscal surplus, and thus continue to 
improve its infrastructure. The Secretariat report indicates that Macao SAR is trying to maintain the sustainable development of the gaming industry and recently it took the decision to regulate 
the scope and pace of the industry’s expansion. My  delegation would be interested to hearing any 
additional comments from the delegation of Macao SAR on the decision taken to sustain the gaming industry.  
4.89.  As an original Member of the WTO, Macao, China has continued to create an enabling 
investment environment, by increasing transparency of its trade policies with regard to the WT/TPR/M/281 • Macao, China 
 
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  principles of the Multilateral Trading System. Macao, China has also contributed to the Multilateral 
Trading System and is active in advancing the WTO and strengthening its role in sustaining trade liberalization as key to driving international trade and economic development, in particular, for the developing and least developed countries. Nigeria agrees with Macao SAR that the successful 
conclusion of the DDA lies with political will  and positive engagement from all Members in 
demonstrating more flexibility to bridge the differences  
4.90.  Macao, China accepted the Protocol amen ding the TRIPS Agreement on the implementation 
of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health; the 
amendment gives more flexibility to countries that do not have the capacity to manufacture pharmaceutical products to import medicines under  c o m p u l s o r y  l i c e n c e .  T o  t h a t  e n d ,  w e  u r g e  
other Members of the WTO, in particular, develo ping countries that have not yet accepted the 
Protocol to do so in order to ensure that the amendment enter into force. 
4.91.  In conclusion, Nigeria considers Macao, Chin a as an important Member of the WTO. We look 
forward to collaborating with Macao, China in the on-going Doha Development Agenda (DDA) 
negotiations. In this context, we wish to ackn owledge the constructive and proactive engagement 
of the delegation of Macao, China under the able leadership of Mr. Raimundo do Rosário, 
Permanent Representative of Macao SAR of China to the WTO. WT/TPR/M/281 • Macao, China 
 
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  5  REPLIES BY THE REPRESENTATIVE OF MACAO, CHINA AND ADDITIONAL COMMENTS 
5.1.  In advance of this meeting, my delegation received almost 70 written questions, all of which 
we have answered, including those submitted after the deadline. As these answers have already been posted on the Members’ website, I shall confine my attention this morning to a brief overview 
of these answers, paraphrasing some of those that  seem to be the most important. At the same 
time, I shall respond to the main additional points made by Members and the Discussant in the first session of this TPR Body Meeting on Monday morning. My delegation’s reply is organized 
along the lines of the broad themes proposed th e Chairman, namely: (1) economic environment, 
trade and investment regimes; (2) trade policies and practices by measure; and (3) sectoral policies. 
ECONOMIC ENVIRONMENT, TRADE AND INVESTMENT REGIMES 
5.2.  As a result of the principle of “one-count ry, two systems” embodied in the Basic Law, the 
Macao SAR continues to enjoy a high degree of autonomy in its economic and trade relations. It remains one of the WTO’s most open and market-o riented economies. Not only is the Macao SAR a 
free port, with no tariffs or other charges or restrictions on its imports or exports, there are no 
barriers to inward foreign direct investment. Moreover, the allocation of resources is left largely to markets, except in a few rare instances where markets fail to take fully into account externalities 
and spill-over effects, or for social reasons.   
5.3.  The Discussant and Members emphasized th e importance of diversifying the Macao SAR’s 
economy so as to reduce its vulnerability to possible external shocks. Notwithstanding its relative openness and strong market-orientation, moderate diversification of the economy remains one of 
the main goals of Government policy, especially in the wake of the expiry of the Agreement on 
Textiles and Clothing (ATC) and the consequent decline in textiles and clothing, which had previously been our main manufacturing industry  and merchandise exporter. Accordingly, several 
Members inquired about policies of the Macao Government to diversify its largely services-based 
economy, particularly various measures to curtail excessive expansion of the gaming sector, partly for social reasons. As the gaming sector has grown rapidly since its liberalization in 2002, the 
Government has been fostering non-gaming tour ism, conventions and exhibitions, and other 
services sectors as well as manufacturing. Macao, China welcomes Members’ willingness expressed during the first session of this meeting to actively engage in helping to diversify the economy. 
5.4.  One of the principal strategies to facili tate economic diversification remains deepening 
regional cooperation, and thus integration, involving the economies of the Macao SAR, the Hong 
Kong SAR and Mainland China, especially as far as the Pearl River Delta region is concerned. In particular, the Closer Economic Partnership Arrangement (CEPA), together with other forms of 
regional cooperation, provides enterprises located in the Macao SAR, including those that are 
foreign-owned, with duty-free access to the vast  Mainland market, and therefore the opportunity 
to export to this market. Deepening regional cooperation in the Pearl River Delta also entails 
improvements in essential public infrastructure, especially transportation. Construction of Hong 
Kong-Zhuhai-Macao Bridge, for example, allows Macao, China to integrate better into the Pearl River Delta and provides our manufacturers with more flexibility in arranging their production in the region so as to take advantage of their expanding business opportunities. Thus, the bridge will 
add new impetus to economic diversification in Macao, China. Regional cooperation will not only 
provide our manufacturers with better market access to the Mainland, but also stimulate the development of new emerging sectors. These incl ude: traditional Chinese medicine; cultural and 
creative industries; tourism and related services; meetings, incentives, conventions and 
exhibitions (MICE); and financial services.  
5.5.  Regional cooperation between the Macao SAR and Guangdong Province also involves the joint 
development of the industrial park on Hengqin Island, where two major cooperation projects are 
currently under way, namely the “Traditional Chin ese Medicine Park” and the University of Macau 
New Campus. The latter involves a legal arrangement between the Macao SAR and Mainland China that falls under the jurisdiction of the Macao SAR. 
5.6.  With virtually full employment, several Members inquired whether the Government has any 
specific measures or policies to deal with the resulting shortage of labour, which has put upward pressure on wages. The Macao SAR Government has alleviated the labour shortage mainly through WT/TPR/M/281 • Macao, China 
 
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  more flexible labour laws, thereby allowing more non-resident workers into the SAR.  Thus, the 
share of non-resident workers in the labour force has grown from less than one-quarter in January 2007 to almost one-third in January 2013. Moreover, mindful of the need to improve the quality of 
the labour force, and therefore its productivity, the Government has, among other things, been 
implementing its “15-year Free Education Scheme” since 2007. As a consequence of this and other 
programs, the Macao SAR Government has increased spending on education from MOP 1.8 billion in 1999 to MOP 8.5 billion in 2011. 
5.7.  In recognition of the crucial role of tran sparency in ensuring the efficiency of markets, 
enhancing public accountability, combating corruption and facilitating evidence-based policy-making as well as in contributing to better understanding by WTO Members of the trade policies of Macao, China, the Government of the Macao SAR attaches great importance to the 
institutionalization of transparency. As Member s acknowledged, Macao, China has no outstanding 
notifications to the WTO. Several Members expre ssed interest in the recent steps taken by the 
Government to improve transparency. Of particular interest were:   
 the Government Spokesperson System and Standard Guidelines for Public Policy 
 Consultations in 2010 and 2011, respectively;   
 the entry into force of the Prevention and Suppression of Bribery in the Private Sector Law in 
 2010 (in fulfillment of the Macao SAR’s obligations under the United Nations Convention 
 Against Corruption); 
 a draft revision of the Land Law, which will enhance the transparency of land allocation, 
 including in the case of exemption from public tendering, by making known the main content 
 of lease applications (especially the name of the applicant, the land area involved, location, 
 use, and the amount of the premium), and al so will require lease applicants to submit 
 environmental impact assessments in order to achieve a balance between economic 
 development and environmental protection; 
 the Exchange of Information for Tax Purposes Act in 2009 and subsequent conclusion of Tax 
 Information Exchange Agreements with ten countries as well as two double taxation treaties 
 with Mainland China.   
5.8.  As you can see from our Government’s Report, however, these are not the only steps we 
have taken to institutionalize transpar ency during the period under review. 
TRADE POLICIES AND PRACTICES BY MEASURE 
5.9.  Not only are no tariffs levied on imports, there are few non-tariff border measures, with 
import licencing being maintained solely for reasons of health, safety, environment, and, in the case of some alcoholic beverages and tobacco products, for administration of consumption tax.  
While Macao, China does not allow import licences to be extended, this requirement is more a 
matter of form than substance because the importer can re-apply for a new licence in lieu of the expired one for the same batch of goods. Therefore, re-application is essentially the same as 
renewal. The non-extension of expired licences is just a procedural requirement to ensure that all 
effective licences in circulation are, in every respect, original from the issuing authority.     
5.10.  Macao, China imports virtually all of its food. Consequently, the Government has no 
intention of impeding these imports without science-based justification. The new food safety 
measures, including SPS measures regarding BSE an d avian influenza, the Food Safety Law, Food 
Safety Centre and Food Safety Coordination Grou p, are all intended to address growing public 
concern in Macao, China, as well as elsewhere, about food safety and to ensure that imports as 
well as any domestically-produced food meet the appropriate health and safety standards. These 
new measures have been in line not only with related international standards, but also with the national standards applied by other countries. 
5.11.  As in the case of its other trade and trade-related policies, the Government maintains a 
transparent, open and non-discriminatory procurement regime, which is aimed primarily at ensuring value for money. Hence, procurement proc edures and disciplines are broadly in line with 
international standards. In the light of this, some Members asked whether Macao, China is WT/TPR/M/281 • Macao, China 
 
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  considering accession to the Government Procurem ent Agreement (GPA). Accession to the GPA is 
not a priority of our Government because we do not feel that the Macao SAR has a comparative advantage regarding the export of goods and servic es related to government procurement by most 
other WTO Members. Also, accession would require considerable changes in the existing regime.  
In any event, in pursuit of continuous improvements in our public procurement regime, 
Macao,China continues to conduct regular reviews in order to improve related laws and regulations, as well as to keep abreast of public procurement developments at the international 
level, including at the WTO. 
5.12.  With regard to protection of intellec tual property rights, several Members sought 
clarification of the extension of these rights from  the State Intellectual Property Office (SIPO) of 
China to the Macao SAR as well as proposed amendments to the Industrial Property Code, 
particularly concerning compulsory licences.  As explained in our written answers, whereas the 
SIPO conducts substantive examination of invention patents, it conducts only preliminary examination of utility model patents. Consequently, invention patents, but not utility model 
patents, can be extended from the Mainland to the Macao SAR. The Macao SAR Government has 
also taken steps to ensure that the WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty apply to the SAR. Amendments to the “Copyrights and Related Rights Code” 
entered into force on 1st June 2012 and the amendments are intended to adapt the code to 
international standards of protection. Compulsory licencing generally covers a wide range of subject matter and is not confined to pharmaceuticals. The relevant articles of compulsory licencing specific to pharmaceutical products in the amendment are intended to implement 
Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health. 
5.13.  The high degree of openness of the Maca o SAR’s economy to international trade and FDI 
ensures a high degree of competition as far as goods and services are concerned. Several 
Members enquired whether, in the absence of an over-arching competition law, the authorities are 
equipped to fight cartels, bid-rigging or unfair cross-subsidization across sectors, and how the government intends to combat these and other fo rms of anti-competitive conduct. By way of 
response, the Macao SAR does not attach high priority to an over-arching competition law. Laws 
and regulations governing competition are inst ead embedded in the Commercial Code of Macao 
and relevant sector-specific regulations, particularly in sectors, such as gaming and telecommunications, which are characterized by oligopolies. The Government believes that this 
pragmatic approach is appropriate, given the complete openness of the local economy, which 
ensures a very high degree of competition, and th e considerable resources that would be required 
to draft, implement and fully enforce an over-arching competition law. Sector-specific regulators 
have established sanctions against anti-competitive conduct, such as price fixing, bid-rigging, or 
unfair cross-subsidization in their own sectors and are responsible for the enforcement of their regulations on competition. These regulations include principles and sanctions, whether laid down 
in the form of fines, or other administrative action s, such as revocation of specific rights granted. 
Also, in accordance with the Commercial Code, complainants can file civil lawsuits against the alleged perpetrators of anti-competitive acts in order to obtain compensation. In tandem with the 
above, the Macao SAR Government continuously pays attention to the evolution of the economy, 
the dynamics of development of individual sectors,  as well as society’s views in this respect. 
SECTORAL POLICIES 5.14.  Manufacturing in the Macao SAR is still under going a very difficult adjustment in the wake of 
the ATC’s expiry and consequent change in global trade patterns as far as textiles and clothing are 
concerned. Accordingly, the Government provides  adjustment assistance in order to facilitate 
manufacturing’s restructuring towards the high value-added products. These products include not 
just textiles and clothing, but refined copper  foil, machines and apparatus as well as 
pharmaceutical products. This assistance includes supporting the development of designs, especially those with local characteristics, enabling Macao products to become better known in markets abroad, and promoting local designs and br and s  in ove rs e as  e xhib itions .  How e ve r, the  
Government does not provide any financial assistance to specific industries. 
5.15.  In order to address excessive expansion of  the gaming sector, for economic diversification 
and social reasons, the Macao SAR Government has adopted the following measures: holding back 
the number of gaming concessions with no increment in the foreseeable future; restricting the 
growth in the number of gaming tables, with the number being granted on the basis of the WT/TPR/M/281 • Macao, China 
 
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  non-gaming facilities in the concessionaire’s investment projects; and raising the minimum age to 
work in the gaming sector and to enter casinos.  
5.16.  With a view to positioning the Macao SAR as a high-quality “World Tourism and Leisure 
Centre” offering a broad range of goods and services, including tourism in the Pearl River Delta, 
the Government is in the process of preparing a comprehensive tourism development plan.  
5.17.  As a result of the adverse impact of the financial crisis on tourism, in order to assist the 
sector, licence holders were granted a one-off waiver of the renewal fees in 2009.   
5.18.  Furthermore, in order to ensure that business tourism takes root, the Government 
welcomes conventions and exhibitions to Macao,  China. In this connection, the Government 
provides promotional assistance to events convened in Macao, China. This assistance involves publication of event information on relevant websites of the Macao SAR Government, the 
distribution of event information by overseas representatives of the Macao Government Tourist 
Office, and provision of tourist information kits at the event venue.  
5.19.  Regarding the Light Rapid Transit (LRT) System, open tenders have been carried out, 
including for rolling stock and related construction projects for Phase I of the LRT, which is 
expected to be in service by 2015. For LRT operations, studies are being undertaken and public announcements will be made once the studies are completed. 
5.20.  With the complete liberalization of the telecommunications market, the tendering process 
for the issuance of a fixed public telecommunications network licence is now in progress. This process is expected to be completed in the current year. In order to cope with the fully liberalised market, the Bureau of Telecommunications Regulations may, if necessary, re-draft or enhance the 
relevant competition-related provisions in order to ensure effective competition. 
5.21.  Finally, let me reply to Members’ questions concerning the Doha Development Agenda 
(DDA). Notwithstanding the difficulties, Macao, China urges Members to consider the long-term 
benefits from the single undertaking. A successful conclusion of the Round would help strengthen 
the multilateral trading system. As stated in the Government Report for this review as well as in the previous TPR, Macao, China remains open to binding more tariff lines in order to contribute to 
a successful conclusion of the current DDA negotiations, provided mutually satisfactory results can 
be achieved in these negotiations. Moreover, with respect to services negotiations, Macao, China supports the notion of progressive liberalisation an d believes that more open services markets will 
contribute to economic development, especially for developing countries. As Members 
acknowledged, Macao, China has considerably impr oved its offer of commitments on services.  
Naturally, before doing so, the Government had carefully reviewed the overall market situation in each service sector. As for the recent initiatives by some Members to negotiate services 
liberalisation outside the DDA, Macao, China believes that these initiatives reflect those Members’ 
concern over the impasse in the on-going GATS negotiations. Macao, China will continue to monitor developments in this regard. 
DISCUSSANT 
5.22.  I would like to congratulate Macao, China on the successful Fourth Trade Policy Review. This 
Review has offered Members the opportunity to comment on Macao, China on various aspects related to its trade policy and provided a furthe r opportunity to explore policy and different 
measures of Macao, China. 
5.23.  In their statements, Members praised Ma cao, China for its economic performance in 
maintaining its open economy, sustaining impressive growth rates, and a low level of 
unemployment. The efforts of Macao, China to diversify its economy in order to safeguard the 
future of its economy have been greatly appreciated by Members. Those measures, including the improvement of connections and integration into the Pearl River Delta region, reviving the 
manufacturing sector, and aiming to become a high-quality “World Tourism and Leisure Centre” 
destination, were discussed by Members and expl ained in Director Sou’s statements and in the 
written answers to Members’ questions.  his has been most fruitful. WT/TPR/M/281 • Macao, China 
 
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  5.24.  Members have also expressed their interests in various issues such as intellectual property 
rights, the new Food Safety Law, competition law and policy, and procurement procedures, including whether Macao, China considers joinin g the WTO Government Procurement Agreement. 
5.25.  Concerns have been raised with regard to some sanitary and phytosanitary measures and 
the fact that 70% of tariffs remain unbound. Other concerns were raised about selected labour 
policies related to the limitation of labour supply in Macao. 
5.26.  Members have commended Macao, China for the use of the alternative timeframe, and I 
wish to say that the quality of detailed written response and Director Sou’s statement today, prove 
very much how this compact and efficient economy has and continues to be committed to this Organization’s underlying principle of transparency. 
5.27.  It has been my pleasure to participate as a discussant in this trade policy review of Macao, 
China. I applaud Macao, China and its economy, which has achieved a great deal and has shown 
even more promising prospects in its economic and social policies. Once again, congratulations to Macao, China on another successful Trade Policy Re view. I wish Macao, China every success in its 
endeavours and wish the delegation visiting Geneva a safe journey home. 
UNITED
 STATES 
5.28.  The United States wishes to thank the delegation of Macao, China for its complete responses 
to our initial questions. The United States does have two additional questions that have to deal 
with Macao, China's Copyright Law and we have submitted those questions to the Secretariat in writing. 
JAPAN 
5.29.  Japan appreciates Macao, China's delegation for providing us with helpful explanations, and 
their considerable efforts after the meeting on the first day. Japan would like to express its appreciation for the insightful comments from the Discussant. 
5.30.  Regarding the answers to Japan's questions provided in writing, Japan has submitted 
another follow-up question on Intellectual Proper ty Rights, in particular patent. We are looking 
forward to receiving an answer to the question in due course. 
5.31.  Finally, Japan hopes that this TPR will help Macao, China to enhance its trade policies. 
CANADA 5.32.  Canada would like to thank Macao, China, in particular for the very insightful comments 
made this morning which are very useful. We su bmitted two additional questions on Monday and 
Macao, China has been very efficient and has already provided responses this morning to them. 
Those questions were on the Food Sa fety Centre and the Land Law.  WT/TPR/M/281 • Macao, China 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The fourth Trade Policy Review of Macao, China has enabled us to improve our understanding 
of its trade policies and practices and how they have evolved since its previous review in 2007. 
The Government and Secretariat reports, together with Macao, China's responses to the questions 
from Members, have contributed to the transpar ency of trade policies and practices in Macao, 
China. Our discussion has clearly benefited from the active participation of the Delegation, led by the Director of Macao Economic Services Mr. SOU Tim Peng, as well as from the insightful 
contribution of the discussant, Ambassador Weer achai Nopsuwanwong, and the interventions by 
Members. I thank Macao, China for its constructi ve engagement and commitment to this exercise, 
including for using the alternative time-frame, ther eby allowing Members to review the answers to 
their questions before the TPRB meeting. 
6.2.  Members commended Macao, China as an  open economy that maintains few trade and 
investment restrictions. As a result, trade, in particular services exports, has contributed to the fast growth of the economy, to its remarkable increase in per capita GDP, to its low levels of 
unemployment and to its sound fiscal situation.   
6.3.  While recognizing that Macao, China already is pursuing an open trade policy with a 
continued firm commitment to trade liberalization, Members appreciated the further improvements 
made to Macao, China’s trade policy and business environment, noting since its last review in 
2007, among other things: the improvements to inte llectual property regime as a means to further 
attract FDI; the enhanced foreign participation in and increased transparency of public procurement; the additional services sectors that  has been liberalized, notably telecommunication 
services; and the further measures in the area of trade facilitation (such as paperless clearance 
system and the elimination of certain import lic enses). Members praised Macao, China for having 
no outstanding notification in the WTO, and for its reforms aiming at enhancing the transparency 
of public administration. 
6.4.  At the same time, Members observed that there is still possible room for further 
improvement in certain trade related areas. Fr om close examination of the remarks made by 
delegations, it appears to me that the authorities of Macao, China might in particular give 
consideration to the following issues and questions raised by Members, and in this regard I also note Mr. Sou's remarks on behalf of Macao, China here today: 
 Intellectual property rights : Members noted that Macao, China amended its 
Copyright and Related Rights Code and applauded its active IPR enforcement. Members 
also noted that some international IPR treaties have not been extended to Macao, China, and were pleased to learn that arrangements for such an extension have been 
initiated.  
 
 SPS measures:  Members appreciated Macao, China's assurance that all SPS measures 
are in line with international standards, agreements or recommendations from relevant 
international organizations. Some Members co nsidered that a few SPS measures appear 
not to be consistent with OIE guidelines, and urged Macao, China to bring its measures into full compliance with international standards. 
 
 TBT: Some Members noted that a new Food Safety Law was passed in Macao recently, 
to protect local public health and food safety. According to the new Law, a Food Safety 
Centre is to be established. Some Members asked Macao, China to clarify the specific 
types of food safety standards to be deve loped, any internal/foreign consultation 
processes it intends to follow before introducing new food safety standards, and the role 
of the new Food Safety Centre on SPS issu es affecting food and other agricultural 
products.   
 Competition policy:  some Members noted that the regulatory framework for 
competition has remained unchanged since the previous Review – there is still no 
overarching competition legislation in force. Members encouraged Macao, China to consider the need for a comprehensive competition law.   
 
 Government procurement:  Some Members commended the openness of Macao, 
China's public procurement regime, and urged Macao to consider participating in the WT/TPR/M/281 • Macao, China 
 
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  WTO's plurilateral Government Procurement Agreement. Some noted that the 
Government is envisaging a review of its government procurement legislation, and expressed their interest in knowing more details about the timing of the review and the type of changes envisaged. 
 
 Regional cooperation:  Members noted the profound effect of the Closer Economic 
Partnership Arrangement (CEPA) on Macao, China's economy, in particular the 
development of its tourism sector. However, efforts to utilize the resources and 
opportunities offered by the CEPA to encourage other sectors to bring new industries into the territory had resulted in only limited success so far. Members expressed their interest in learning how regional cooperation may assist Macao, China in achieving its 
diversification objectives. 
 
6.5.  Finally, Members encouraged Macao, China to continue its support of the multilateral trading 
system, including ITA expansion and increasing its tariff binding coverage. Members welcomed 
Macao, China's commitments to the successful conclusion of the DDA. 
6.6.  This successfully concludes our Review of Ma cao, China. It has been informative, yielding 
many useful insights into trade policies and practices in Macao, China and the challenges it faces. 
From a broader perspective, Macao, China re presents an example of successful economic 
transformation in the face of difficult structural adjustment. But there is also a risk that Macao, China becomes a victim of its success. Diversification will be critical in the years to come, as 
clearly recognized by Macao, China and Members alike during this review.   
6.7.  Let me once again thank the delegation, th e discussant and Members for contributing to what 
has been both a detailed and enlightening discussion . We look forward to receiving responses from 
Macao, China to outstanding follow-up questions submitted over the last two days. 
__________