WT/TPR/M/281  
13 September  2013 
(13-4755) Page: 1/24 
Trade Policy Review Body   
13 and 15 May 2013   
 
TRADE POLICY REVIEW  
MACAO, CHINA 
RECORD  OF MEETING  
Chairperson:  H.E. Mr. Joakim Reiter (Sweden)  
 
 
Page 
1   INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ ......................  2 
2   OPENING STATEMENT BY  THE REPRESENTATIVE O F MACAO, CHINA  ..........................  4 
3   STATEMENT BY THE DIS CUSSANT  ................................ ................................ ...............  6 
4   STATEMENTS B Y MEMBERS  ................................ ................................ ..........................  8 
5   REPLIES BY THE REPRESE NTATIVE OF MACAO, CH INA AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  18 
6   CONCLUDING REMARKS B Y THE CHAIRPERS ON ................................ ........................  23 
 
 
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/tra top_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 Nopsuwan wong 
(Thailand).  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Macao, China  was co ntained in document 
WT/TPR/G/281  and that of  the WTO Secretariat in WT/TPR/S/2 81. 
1.3.  Macao, China adopted the alternative t imeframe 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; Singapo re; Hong Kong, 
China; Chinese Taipei; E uropean Union; India; Canada; and Japan . The following delegations 
submitted written questions after the four week deadline: Australia; Malaysia; Turkey;  Brazil;  and 
Thailand . 
1.4.  Since its last review in 2007, Macao, Chi na remains an open economy, with few trad e 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 predominant 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 app lied 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 o ver 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 noted that a number of services secto rs had been 
liberalized and that Macao, China's revised GATS offer in 2005 could be considered t o 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 b etween this and 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 p artial 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 Travel ler Scheme.  Many 
of those benefits have indeed materialized, and the Individual Travel ler 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 c ompetition 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 promote s 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 p rocurement 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 WT/TPR/M/281 • Macao, China  
 
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  procurement contracts centrally signed by the Financial Services Bureau, up from 9%  in 2007. The 
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 appr eciate 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 O F MACAO, CHINA ( MR. SOU TIM 
PENG ) 
2.1.  Macao, China welcomes i ts fourth Trade Policy Review. This Review provides Macao, China 
with the opportu nity to bring Members’ attention to progress in improving its trade policy regime, 
in accordance with the Basic Law of the Macao Special Administrative Region (MSAR) of the 
People’s Republic of China and the WTO’s underlying pri nciples, notably, transparen cy. At the 
same time, it highlights the rapid economic and social 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 systems” in the Basi c 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 restrictio ns 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 has enjoyed robust econom ic growth, with real GDP 
growing at a n average annual rate of 13.1%.  The unemployment 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 fore ign 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 mul tilateral trading system (MTS).  In formulating and 
implementing its trade policies, the Macao SAR adheres to the basic WTO principles of 
non-discrimination, pr edictability and transparency. Macao, China continues to fulfil its obligation 
to notify Members fully of changes in those trade poli cies subject to WTO agreements.  Moreover, 
the Macao SAR has considerably improved its offer of commitm ents 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 (PR D) region, as a consequence of supplements to 
the Closer Economic Partnership Arrangeme nt (CEPA) with Mainland China. The CEPA liberalizes 
trade in goods and services and facilitates trade between M acao, China and Mainland China.  At the 
same time, the Maca o SAR has established itself as a platform b etween China and the 
Portuguese -speaking countries to promote trade and economic cooperation, following the 
establishment, in 2003, of the Forum for Economic and Trade Cooperation between China and 
Portuguese -speaking countries.  
2.6.  Turning to sectoral developments, the transformation of the economy into a primarily 
service -based one has continued, with the services sec tor accounting for 94% of GDP. In 
particular, the Government attaches high priority to developing th e Macao SAR into a “World 
Centre of Tourism and Leisure” destination, in which business tourism, involving meetings, 
incentives, conventions and exhibi tions (MICE), also takes root. The Macao SAR’s international 
reputation regarding cultural tourism has be en enhanced by the designation of its Historic Centre, 
by UNE SCO, 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 b usiness 
tourism att ractions.  
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 Governm ent has continued to liberalize its predomina ntly service -oriented economy. For 
instance, since the last Review, public bus services have increased the number of operators, and 
telecommunic ations have been liberalized.  
2.10.   In parallel with the progressive libe ralization of the services sectors, another notable reform 
during the period under review is the establishment of the Fina ncial 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 asso ciated know -how on technology and management are very 
important ob jectives of Government policy. Macao, China has long been open to foreign direct 
investment, with no restrictions or controls whatsoever on FDI or repatriation of profits. Its 
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 wate r supply.  
2.12.   Fully aware of the important role of intellectual 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 relate d rights and optical disc piracy. Accordingly, 
an amendment to the legislation on Copyright and Related Rights was enacted in 2012, with the 
aim of strengthening copyright protection of digital environment. More specifically, the amendment 
provides protect ion 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 in frastructure, namely the 
on-going construction of the Hong Kong -Zhuhai -Macao Bridge and an integrated urban public 
transport system, the Light Rapid Transit (LRT). These projects will provide better connectivity and 
integration into the Pearl River Delta r egion.   
2.14.   In order to ensure inclusive growth and better 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 cont inue to strengthen the existing economic 
developments and the competitive ness of Macao SAR enterprises. Improved competitiveness will 
enable these enterprises to take advantage of new trading opportunities opened up by regional 
and multilateral trade liber alisation 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 DIS CUSSANT  (H.E. MR. WEERACHAI N OPSUWANWONG 
(THAILAND) ) 
3.1.  My comments will focus on the general 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 
restric tions 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 con tributed to the world economy. Macao, 
China’s economic grow th has been strong and steady since  its last review in 2007. This is shown in 
the record of mostly double -digit GDP annual growth rates, with only a brief interruption during 
the global eco nomic crisis in 2008 and 2009. Macao maintains a simple tax structu re and low tax 
rates.   
3.3.  Macao, China’s strong economic performance also shows in the continuous fiscal surpluses 
since 2001, mainly thanks to the increas e in total government revenue. In 2011, its fiscal surplus 
accounted for 26 % of GDP, up from 21 % in 200 7. 
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, including 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 gr owth of the services industry. The Government has adopted a number of 
measures to nurture an attractive business environment, for ex ample, 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, the main characteristic of Macao, China’s economy.  
3.7.  There is a saying, that one should “never underestima te small people with big dreams,” 
which I find quite fitti ng for Macao, China’s economy. 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 growth rates during the review period were led b y 
services exports, in partic ular 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 le vel 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 the economy and the dominance of the gaming sector 
have placed upward pressure on prices, in particular on land and labour. Higher local factor prices 
in turn harm the competitiveness of non -gaming sectors, including man ufacturing, 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 t ook sound decisions to regulate the scope and pace of the gaming sector's 
expansion, and at the same time to diversify the economy, including facilitating the devel opment 
of non -gaming services. All of these were implemented without losing the focus of mai ntaining the 
sustainable devel opment of the gaming industry. This 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 region al 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 likely 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 
busines s in Macao. It is well noted that total goods exports under CEPA arose to 85.19 million 
patacas in 2011, from 39 million i n 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 th e 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 com ing 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 recor d has been 
flawless as there is no outst anding 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 observer of the WTO A greement o n 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 question s 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 the implementations of CEPA between China and 
Macao, China.  
3.15.   Several Members also seek details on specific measures and parti cular sectors. In 
intellectual property r ights for instance, questions arise on clarifications on certain provisions of 
the Copyright and Related Rights, and the extension of invention patent righ ts from China to 
Macao, China. Questions regarding sanitary and phytosanitary req uirements 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 enqu ire 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 Secretariat and the Macao Government, and questions 
raised by Members, I hardly see any serious c oncerns 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 question s four days before the meeting. This has allowed us ample time to study Macao’s 
responses and hopefully to have active participation duri ng 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 small packages”.  I have gone over a number of good 
“things” that are worth being mentioned while al so pointing out some concerns. I now turn to 
Members in this room to share comments and quest ions. And with this, allow m e to wish Macao, 
China a successful Trade Policy Review.  WT/TPR/M/ 281 • Macao, China  
 
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  4  STATEMENTS BY MEMBER S 
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 et hnic an d 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 re gime, and continues to 
demonstrate a commitm ent 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 tr ading partner of Macao, China. Bilateral 
goods trade between the United States and Macao, China total led US$440 million in 2012, a 9% 
increase over 2011. U.S. foreig n direct investment in Macao, China was US$910 million in 2010. 
Trade relations between the United States and Macao, 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 demonstrated through the a doption 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 admi nistrative fees. The United States also notes Macao, 
China’s economic policy goal to ensure a business 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, 
pharma ceuticals, and other products. The Un ited States welcomes indications that Macao, China 
intends to devote greater focus to comba ting piracy over the Internet. The newly amended 
Copyright and Related Rights Code aims to strengthen copyright protection in a digital 
environment, including the bl ocking of ret ransmission of pirated signals.  If implemented 
effectively, new enforcement efforts and legislative changes could support Macao, China’s 
continued efforts to strengthen the legal framework and enforcement of IPR laws.  As we indicated 
in our ad vance written questions, the Secretariat’s report notes that the WIPO Copyright Treaty 
and WIPO Performances and Phonograms Treaty have not been extended to Macao, China. We 
were therefore pleased to receive Macao, China’s response that arrangements for th is extension 
have been initiated.  
4.6.  The United States appreciates Macao, China’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 Sanita ry 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 measu re 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 countr ies such as the United States. The United 
States urge s 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 address food safety concerns, we understand Macao, 
China’s new Food Safety Law, once implemented, will e stablish a Food Safety Centre . We look 
forward to hearing more regarding the role that this Centre  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 R eport 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 tex tiles 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 licensi ng and safeguards notification.  We appreciate Macao, China’s responses to all of our 
questions.  
4.10.   The United States shares Macao, China’s strong support for th e multilateral trading system. 
The United States recognizes that Macao, China is an open economy an d a strong proponent of 
free trade, and shares a strong common interest in its c ontinued growth and prosperity.  We 
therefore hope that this Trade Policy Review will help Macao, China build further upon its strong 
record of contribution s to the world tradin g system. We look forward to continued work with 
Macao, China, and other WTO Members, to strengthen 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 growt h rate of above 13%, its per capita GDP almost doubled and the unemployment rate 
declined to a record low of 2% du ring the review period. As the G overnment report rightly pointed 
out, this astonishing achievement should be attributed to the resilience of t he economy of Macao, 
China and Closer Economic Partnership Arrangement (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 e fforts to economic integration with the multilateral and 
regional economies. In order to achieve a sustainable and inclusive growth, the Macao, China’s 
government has adopted a number of measures to nurture an attractive business environment and 
hence to d iversify 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 a re 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 be tween 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 2 012, 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 open and free economies with a firm and constant 
commitment to tr ade 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 kilom etres 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 i t – 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 become the world's number one wine auctio n centre 
in three years' time. In Macao, they liberali zed the gaming sector in 2002. They overtook Vegas in 
terms of turnover just a few years l ater. 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 K ong were 
photographic apparatus equipment and supplies, watches and clocks, jewellery and 
telecommuni cations 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 main tain its  open economy with 
zero-rated applied tariffs. We also commend it for maintaining few restric tions on trade and 
investment. We look forward to developing even closer ties in all areas between the two 
economies.  
4.18.   Turning to the specific aspects of Macao, Chi na'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 concentr ated in the gaming 
industry and in vestment 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 ha ve been initiated by its enterp rises 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 e fforts in providi ng 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 system to import licensing and transit documents.  
4.20.   On services, we n ote that the economic growth of Macao, China in recent years has been 
led by an expansion in services exports. The growth, however, may be overly concentrated in the 
tourism sector,  particularly gaming services. We applaud the efforts of Macao, China to di versify 
its services industry a nd hope to see this bear fruit.  We also commend Macao, China for its 
strategic move fully to liberaliz e the telecommunications servic es 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 t he keys to sustainable growth. We hope to see a positive review result in 
this light.   
4.21.   We note that the regulatory framework for competition has remained unchanged in Maca o, 
China since the last Review.  Currently, there is no overarching competit ion legislation in force.  
During the period under Review, competition has been introduced into such sectors as bus 
services, elec tricity and telecommunications.  We encourage Macao, China to continue keeping this 
in view and, as appropriate, consider the n eed 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 d uring the period under review, at an 
average annual rate of over  13%, mainly due to the successful opening up of the ga ming 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 large st 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 economi c 
changes or f inancial crises. Therefore, efforts to diversify it s 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 i nitiatives in the 
region.   
4.23.   According to the Secretariat Report, Macao, China endeavours to implement a transparent 
and open  government procurement regime.  It claims that its public procurement procedures and WT/TPR/M/281 • Macao, China  
 
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  disciplines are in compliance with internationa l 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 t o 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, and we are thankful for its responses. My capital 
is rev iewing 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 tariffs are still unbound, therefore, the expansion of 
tariff binding by Macao, Chi na would also be very welcome. With more than 1.2 million tourists 
from the Separate Customs Territory of Taiwan, Peng hu, 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 o pportunity to discuss the 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 R eport has noted that the sh ortage 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 transp ortation 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 tra de partners accounting for 
23.6% of its overal l 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 im prove 
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 ar e of significant interest to us.  
4.31.   The first issue we would like to raise is public procurement. The EU i s 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 con tinue the efforts to increase fair treatment for foreign 
bidders and enhance legal compliance and predictability of the procurement process. The EU would 
highly value a swift move towards accession of Macao, China to the WTO Government Procurement 
Agreemen t. 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 addr ess 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 cons umer welfare.  
4.33.   Regarding IPR, as stated earlier, there are a number of positive developments that the EU  
welcomes. The WTO Secretariat R eport 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 i n a future revision of the code.  
4.34.   Finally, regardin g the objective of the g overnment 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 system. 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 remarkable gr owth 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 
infrastructur e and construction as well as Macao China’s deepening economic and trade ties with 
Mainland China.   
4.37.   The services sector plays an important role in Macao China’s economy, accounting for 94% 
of its GDP and 97% of its total exports which are made up almost e ntirely 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. B ecause of this its growth is closely 
linked to external demand and growth of its trading 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 pr imary 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 reflecting a growth of over 40% from the previous 
year. In January 2012, both sides concluded a Tax 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 touri sm 
from India and during 2012, tourist arrivals from 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 impressiv e 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 sec tor, 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 worl d’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 effort s in this regard. The 
development of Macao, China into a full -fledged tourism and meeting, incentive, convention and 
exhibition (MICE) destination is an ambitious goal,  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 the Hong Kong -Zhuhai -Macao Bridge is a n integra l 
component for future growth. This infrastructure improvement will certainly enhance Macao, 
China’s competitive position as a meeting and convention centre servin g the Pearl River Delta 
Region.  Publicly and privately -funded construction of infras tructure and tourism -related facilities is 
expected to be one of the driving forces of Macao, China’s economi c growth in the years to come. 
In light of this, Canada encourages the Government of the MSAR to put in place open and 
competitive government procu rement 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 su pply 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 M acao, 
China’s labour shortage. Such policies incl ude case -by-case basis determination of import labour 
quotas and local hi ring quotas for casinos. We urge 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 a s the types of food 
safety standards that will be developed under the La w. We hope that this regime is based on 
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 li ke to begin with Macao’s macro economic environment and policies. According to 
the R eport by the Secretariat, the economy of Macao SAR grew strongly during the review period, 
from 2007 to 2012. GDP growth rates were double -digit, except in 2008 and 2009, ref lecting 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 external shocks, the development of industries other 
than gaming is essential for maintaining strong economic growth. The Macao SAR G overnment has 
made efforts to diversify th e economy, and Japan hopes the G overnment will continue its effo rts. 
4.51.   Let me move to policies on foreign direct investment. The R eport 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 i n 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 envir onment a nd hopes the G overnment 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 R eport 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 th e 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, marin as 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 offer 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 th at would be secured if WTO Members were ab le 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 tar iffs, more than 70 % of its tariff lines remain unbound.  
4.55.   Australia congratulates Macao, China on the strong economic growth it has ac hieved 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 provision of conferences, exh ibitions, 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 p urposes. 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 consulting, 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 Governme nt 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 thanks to the contribution of the services sector.  
4.60.   The Government R eport emphasized the high degree of opennes s 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 R eport 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 ma rket, there seems to be an upward pressure on factor prices such as 
land and labo ur 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 d rastically harming the 
competition and crowding the manufacturing and other sectors out of GDP composition.  
4.63.   As we read from the Secretariat and Government R eports, there are serious efforts taken by 
Macao, China to neutralize these effects and diversify th e 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 service s.  
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 h as 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 o f 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, China have started to take an important increase 
and upward trend recor ding 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 responsi ble 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 count ries 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 a nd 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 difficult ies, although 
constrained by such factors as limited availability of land, high labo ur costs and little leeway for 
monetary policy. Efforts by the special administrative region have rightly focused on economic and 
trade diversification, including through r egional 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 a s 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 tra nscend 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 distincti ve 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 Count ries, 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 r elationship with Macao, China. Among different bilateral agreements 
between us are the Air Service Agreement signed in 1995 and the Agreement on Exemption of 
Visa Requirements signed in 2002. From 2 010 to 2012, the two -way trade between Thailand and 
Macao, China averaged at some US$26.3 million per 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 hop e 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 interests in n urturing the tourism industry. At the 
end of 2012, Thai vi sitors 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 t ax rates, and only a 
few restric tions 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 tr ading 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 advance of this meeting regardi ng the SPS measures 
Macao, China has in place related to the prohibition of imports for poultry products d ue to the 
threat of avian flu. Recognizing the importance of such measures, Thailand seeks further 
information from Macao, China w hen 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 t o Macao, China this afternoon. Thailand is looking forward to receiving from Macao, China 
a response to these question s in due course.  WT/TPR/M/281 • Macao, China  
 
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  ARGENTINA  
4.79.   We are pleased to note that during most of the period under review (2007 -2012), the 
economy of Macao, China experienced strong GDP growth at double digit levels, except in 2008 
and 2009, when the international economic crisis br oke out. However, the growth rate picked up 
again in 2010.  
4.80.   We are also pleased to learn that per capita GDP almost doubled during the review period, 
from US$34,662 in 2007 to US$67,093 in 2011.  
4.81.   These highly positive figures in terms of economic growth are due to the significant share of 
the services sector in the structure of Macao's economy. In particular, the fact that services 
accounted for 90% of GDP in 2011 is due to specialization in the tourism and gaming industries.  
4.82.   We emphasize the high level of so phistication in the services sector, which has established 
Macao as one of the world's leading tourism and gaming destinations.  
4.83.   We note with satisfaction that in 2008 Macao abolished a number of consumption taxes in 
order to promote the expansion of its to urism industry, and although these taxes were levied on 
domestically produced goods and imports alike, they mostly fell on the latter because there was 
little or no domestic production of these goods. One example is the elimination of the consumption 
tax on beverages with an alcohol content of less than 30% (e.g. red wines).  
4.84.   Today, trade between Argentina and Macao, China is relatively modest and does not come 
close to the volume traded with other Members of this Organization. We believe, however, that 
rather than a drawback this is a business opportunity to be explored.  
4.85.   In addition, we value Macao's commitment to completing the Doha Round trade 
negotiations currently proceeding under the auspices of the WTO.  
4.86.   To conclude, we not only reiterate our appreciati on of this opportunity to exchange 
information and ideas concerning the trade policy of Macao, China but would also like to stress 
once more the importance of this exercise in transparency from every point of view and wish the 
authorities of Macao, China e very success in this fourth review of their trade policy.  WT/TPR/M/ 281 • Macao, China  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF MACAO, CHINA  AND ADDITIONAL COMME NTS 
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 B ody Meeting on Monday morning. My delegation’s reply is organized 
along the lines of the broad themes proposed the Chairman, namely: (1) ec onomic 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 -country, two systems” embodied in the Basic La w, the 
Macao SAR continues to enjoy a high degree of autonomy in it s economic and trade relations.  It 
remains one of the WTO’s most open and market -oriented 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 in ward 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 the importance of diversifying the Macao SAR’s 
economy so as to reduce its vulnerabilit y to possible external shocks. Notwithstanding its relative 
openness and strong market -orientat ion, 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 indu stry 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 secto r, partly 
for social reasons. As the gaming sector has g rown rapidly since its liberaliz ation in 2002, the 
Government has been fostering non -gaming tourism, conventions and exhibitions, and other 
services sectors as well as manuf acturing. 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 facilitate 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 Ri ver Delta region is concerned. In 
particular, the Closer Economic Partnership Arrangement (CEPA), together with other fo rms 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 opportu nity 
to export to this market. Deepening regional cooperation in  the Pearl River Delta also entails 
improvements in essential public infrastructu re, 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 exp anding business opportunities. Thus, the bridge will 
add new impetus to economic di versification in Macao, China. Regional cooperation will not only 
provide our manufacturers with better market access to the Mainland, but also stimulate the 
develo pment of new emerging sectors. These include: 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 c ooperation projects a re 
currently under way, namely the “Traditional Chinese Medicine Park” and the U niversity 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 virtual ly 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 mai nly 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 l ess 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 Maca o 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 transparency in ensuring the efficiency of markets, 
enhancing public accountability, combating corruption an d fac ilitating 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 
institutionalizat ion of transparency. As Members acknowledged, Macao, China has no outstan ding 
notifications to the WTO. Several Members expressed interest in the recent steps taken by the 
Gover nment to improve transparency. Of particular interest were:   
 the Government Spokesperson System and Sta ndard 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 fulfi lment 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 na me of the applicant, the land area involved, location, 
 use, and the amount of the premium), and also will require lease applicants to submit 
 environmental impact assessments in order to achieve a balance between economic 
 development and environmental pr otection;  
 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 Rep ort, however, these are not the only steps we 
have taken to institutionalize transparency 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, th is 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 li cences 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 impo rts virtually all of its food. Consequently, the Government has no 
intention of im peding these imports withou t science -based justification. The new food safety 
measures, including SPS measures regarding BSE and avian influenza, the Food Safety Law, Food 
Safety Centre and Food Safety Coordination Group, are all intended to address growin g 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 appropriat e health and safety standards. These 
new measures have been in line not only with related inte rnational 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 prima rily at 
ensuring value for money. Hence, procurement procedures 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 Procurement 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 services related to government procurement by most 
other WTO Mem bers. Also, accession w ould require considerable c hanges in the existing regime. In 
any event, in pursuit of continuous improvements in our pu blic 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 intellectual 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 c oncerning compulsory licences. As explained in our written answers, whereas the 
SIPO conducts substantive examination of inventi on patents, it conducts only preliminary 
examin ation 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 
Phono grams 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 
Paragra ph 6 of the Doha Declaration on the TRIPS Agreement and Public Health.  
5.13.   The high degree of openness of the Macao SAR’s economy to international trade and FDI 
ensures a high degree of competition as far as goods and services are concerned. Several 
Members en quired 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 form s of anti -competitive c onduct. By way of 
response, the Macao SAR does not attach high priority to a n over -arching competition law.  Laws 
and regulations governing competition are instead embedded in the Commercial Code of Macao 
and relevant sector -specific regulations, particular ly in sectors, such as gaming and 
telecommunications, which ar e 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 competi tion, and the 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 actions, 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 undergoing a very difficult adj ustment in the wake of 
the ATC’s expiry and consequent change in global trade patterns as far as textil es 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 we ll as 
pharmaceutical products. This assistance includes supporting the development of designs, 
especially those with lo cal characteristics, enabling Macao products to become better known in 
markets abroad, and promoting local designs and b rands in overseas exhibitions. However, the 
Government does not provide any financial assistance to specific industries.  
5.15.   In order to add ress 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; restrict ing 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 pl an.  
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 Gov ernment 
welcomes conventions and exhibitions to Macao, China. In this connection, the Government 
provides promotional assistance to ev ents 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 comp leted.  
5.20.   With the complete liberaliz ation of the telecommunications market, the tendering process 
for the issuance of a fixed public telecommunications netwo rk 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’ question s concerning the Doha Development Agenda 
(DDA). Notwithstanding the difficulties, Macao, China urges Members to consider the long -term 
benefit s 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 satisfac tory results can 
be achieved in these negotiations. Moreover, with respect to services negotiations, Macao, China 
supports the  notion of progressive liberaliz ation and believes that more open services markets will 
contribute to economic development, especi ally for developing countries. As Members 
acknowledged, Macao, China has considerably improved its offer of commitments on services.  
Naturally, before doing so, the Government had carefully reviewed the overall market sit uation 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 further opportunity to explore policy and different 
measures of Macao, China.  
5.23.   In their statements, Members praised Macao, China for its economic performance in 
maintaining its open economy, sustaining impressive growth rates, a nd a low leve l of 
unemployment.  The efforts of Macao, China to diversify its economy in order to safeguard the 
future of its economy have been g reatly 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 explained in Director Sou’s  statements and in the 
written a nswers to Members’ questions. T 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 joining t he 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 econ omy 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 achieve d 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 Review. I wish Macao, China every success in its 
endeavo urs and wish the delegati on 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, C hina's Copyright L aw 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 Property R ights, in particular patent. W e 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 comme nts 
made this morning which are very useful. We submitted two additional questions on Monday and 
Macao, China has been very efficient and has already provided responses this morning to them. 
Those question s were on the Food Safety C entre and the Land L aw.  WT/TPR/M/281 • Macao, China  
 
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  6  CONCLUDING REMARKS B Y 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 sinc e its previous review in 2007. 
The Government and Secretari at reports, together with Macao, China's responses to the questions 
from Members, have contributed to the transparency of trade policies and practices in Macao, 
China. Our discussion has clearly benefited from the active participation of the Delegation, le d by 
the Director of Macao Economic Services Mr. SOU Tim Peng, as well as from the insightful 
contribution of the discussant, Ambassador Weerachai Nopsuwanwong, and  the interventions by 
Members. I thank Macao, China for its constructive engagement and comm itment to this exercise, 
including for using the alternative time -frame, thereby 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 trad e and 
investment re strictions. 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 M acao, 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 intellectual 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, notab ly telecommunication 
services; and the further measures in the area of trade facilitation (such as paperless clearance 
system and the eliminatio n of certain import licenses). Members praised Macao, China for having 
no outstanding notification in the WTO, a nd 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.  From 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:  
 Intellect ual 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 relevan t 
international organ izations. Some Members considered 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 w as passed in Macao recently, to 
protect local public health and food safety. According to the new Law, a Food Safety Centre 
is to be es tablished. Some Members asked Macao, China to clarify the specific types of food 
safety standards to be developed, any in ternal/foreign consultation processes it intends to 
follow before introducing new food safety standards, and the role of the new Food Safety 
Centre on SPS issues 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.   
 
 Governm ent procurement : Some Members commended the openness of Macao, China's 
public procurement regime, and urged Macao to consider participating in the WTO's 
plurilateral Gov ernment Procurement Agreement. Some noted that the Government is WT/TPR/M/ 281 • Macao, China  
 
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  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 Arra ngement (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 resulte d 
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 multilater al trading 
system, including ITA expansion and increasi ng 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 Macao, China. It has been informative, yie lding 
many useful insights into trade policies and practices in Macao, China and the challenges it faces. 
From a broader perspective, Macao, China represents an example of successful economic 
transformation in the face of difficult structural adjustment. B ut 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, the disc ussant and Members for contributing to what 
has been both a detail ed and enlightening discussion.  We look forward to receiving responses from 
Macao, China to outstanding follow -up questions submitted over the last two days.  
__________