COMMISSION OF THE EUROPEAN COMMUNITIES 
» 
COM(92)239 final 
Brussels, 5 June 1992 
Proposal for a 
COUNCIL DECISION 
concerning the conclusion of a trade and cooperation agreement 
between the European Economic Community and Macao 
(presented by the Commission) 
NOT FOR PUBLICATION 
EXPLANATORY MEMORANDUM 
1. On 28 April 1992 the Council authorized the Commission to open 
negotiations with Macao with a view to concluding a trade and 
cooperation agreement between the EEC and Macao, and adopted detailed 
directives to that end. 
2. The Commission and Macao negotiated and initialled the text of the 
Agreement on 12 May 1992. 
3. The Commission considers the text initialled to be fully in line with 
the negotiating directives drawn up by the Council. 
4. Because the legal basis for the Agreement includes Article 235 of the 
Treaty in addition to Article 113, Parliament must be consulted. 
5. With a view to the signature and conclusion of the trade and cooperation 
agreement between the Community and Macao, the Commission proposes that 
the Council adopt the attached Decision. 
4a, 
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Proposal for a 
COUNCIL DECISION 
concerning the conclusion of a trade and cooperation agreement 
between the European Economic Community and Macao 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community 
and in particular Articles 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament,1 
Whereas the Agreement for trade and cooperation between the European 
Economic Community and Macao should be approved, 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreement for trade and cooperation between the European Economic 
Community and Macao is hereby approved on behalf of the Community. 
The text of the Agreement is annexed to this Decision. 
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Art icle 2 
The President of the Council shall give the notification provided for in 
Article 19 of the Agreement.2 
Art icle 3 
The Commission, assisted by representatives of the Member States, shall 
represent the Community in the Joint Committee set up by Article 16 of the 
Agreement. 
Article 4 
This Decision shall enter into force on the third day following that of its 
publication in the Official Journal of the European Communities. 
Done at 
For the CounciI 
The President 
2 The date of entry into force of the Agreement will be published in the 
Official Journal of the European Communities by the General Secretariat 
of the Counc iI. 
/C 
AGREEMENT 
for trade and cooperation 
between the European Economic Community 
and Macao 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
and 
THE GOVERNMENT OF MACAO, 
CONSIDERING that the European Economic Community, hereinafter referred to 
as the "Community" and Macao wish to develop, extend and deepen economic 
and trade relations between them, 
CONSIDERING that it would be timely to reinforce existing links between the 
parties by means of cooperation between Macao and the Community in matters 
of mutuaI interest, 
REAFFIRMING the importance they attach to democratic values and to 
respecting human rights, 
DECLARING that the basic aim of this Agreement shall be to consolidate, 
intensify and diversify relations between the Parties, to the benefit of 
both, 
DESIROUS of stepping up and diversifying trade and actively developing 
cooperation in an evolutionary and pragmatic manner, 
CONVINCED of the importance of the rules and principles of the General 
Agreement on Tariffs and Trade (GATT) for the purposes of open and 
continually expanding international trade, and reaffirming their 
commitments under that Agreement, 
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HAVE AGREED AS FOLLOWS: 
Article 1 
BASIS FOR COOPERATION 
The two parties undertake to strengthen their relations and resolve to 
promote cooperation between them, taking account of Macao's special 
situation and of its level of development. 
Cooperation between the Community and Macao and the implementation of this 
Agreement are based on respect for the democratic principles and human 
rights which inspire the policies of both the Community and Macao. 
CHAPTER I 
TRADE COOPERATION 
Art icle 2 
1. The Contracting Parties reaffirm their reciprocal commitments under the 
terms of the General Agreement on Tariffs and Trade, and shall accord 
each other most-favoured-nation treatment in all trade matters 
regarding: 
(a) customs duties and charges of any kind imposed on or in connection 
with imports , exports, re-exports or transit of goods, including 
the method of levying such duties and charges; 
(b) methods of payment and the transfer of such payments; 
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(c) rules and regulations, procedures and formalities connected with 
imports and exports, including provisions relating to customs 
clearance, transit, warehousing and transshipment of imports or 
exports; 
(d) administrative formalities relating to import and export licences-, 
(e) taxes and other internal charges levied directly or indirectly on 
imported or exported goods and services; 
(f) laws, rules and regulations and requirements relating to the sale, 
offering for sale, purchase, transportation, distribution and use 
of goods on the domestic market. 
2. In accordance with the General Agreement on Tariffs and Trade, this 
treatment shall not apply to: 
(a) advantages accorded by one of the two Contracting Parties with the 
aim of creating a customs union or a free-trade area or pursuant to 
the creation of such a union or area; 
(b) other advantages accorded under the GATT. 
Art icle 3 
The Contracting Parties undertake to promote trade between them to the 
greatest possible degree, taking into account their respective economic 
situations and granting each other the widest possible opportunities. 
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CHAPTER I I 
OTHER FIELDS OF COOPERATION 
Article 4 
With the particular aims of bringing about the development of their 
economies and standards of living, diversifying their links with each 
other, encouraging scientific and technological progress, opening up new 
sources of supply and new markets, promoting investment, protecting the 
environment and improving living conditions, the Contracting Parties agree 
to develop cooperation, within the bounds of their respective powers and on 
the basis of mutual interest, in all areas in which they have 
responsibility for policy, notably the following: 
industry; 
- trade; 
- science and technology; 
- energy; 
- transport; 
- telecommunications; 
- data processing; 
intellectual and industrial property, standards and specifications; 
- protection of the environment; 
- soc i a I deve I opment -, 
- tourism; 
- financial services; 
- fisheries; 
- customs matters; 
- statistics. 
Article 5 
INDUSTRY 
The Contracting Parties shall encourage the use of the various forms of 
industrial and technical cooperation to benefit their firms and entities, 
within the bounds of the needs and capabilities of the Parties. 
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With the aims of the Agreement in mind, the Contracting Parties shall 
endeavour to facilitate and promote the following. Inter alia: 
- the establishment of Joint ventures; 
- the transfer of technology; 
- cooperation between financial institutions; 
- steps such as visits, contacts and activities to promote cooperation 
between persons and delegations representing firms or economic 
organizat ions; 
- the organization of seminars and symposia. 
Article 6 
The Contracting Parties shall promote the development and diversification 
of Macao's production base in industry and services, in particular by 
targeting cooperation activities at small and medium-sized enterprises and 
by encouraging steps to facilitate access on the part of such enterprises 
to sources of capital, markets and appropriate technology. Such measures 
could include the joint establishment of suitable mechanisms and 
inst itut ions. 
Article 7 
INVESTMENT 
The Contracting Parties agree: 
(a) to promote an increase in mutually beneficial investment, within 
the limits of their responsibilities, rules and policies, 
(b) to improve the climate for investment on both sides, notably by 
means of agreements between the Community Member States and Macao 
for the protection and promotion of investment, on a basis of 
non-discrimination and reciprocity. 
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Article 8 
SCIENCE AND TECHNOLOGY 
Taking into account their mutual interest and the objectives of their 
development strategies, the Contracting Parties shall undertake to promote 
cooperation in science and technology in such a manner as to improve 
Macao's potential for development. 
Article 9 
INFORMATION, COMMUNICATION AND CULTURE 
The Contracting Parties shall establish cooperation in information and 
communication, taking account of the cultural dimension of relations 
between them. Such cooperation could include conservation of objects of 
historic and cultural interest. 
Article 10 
TRAINING 
1. Cooperation under this Agreement shall include appropriate provision for 
training. The Contracting Parties shall furthermore implement 
individual training programmes in areas of mutual interest. 
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2. The measures concerned shall be targeted first and foremost at teachers, 
trainers and executive personnel in positions of responsibility in 
firms, government, public services and other educational, economic and 
social entities. They could include promotion of cooperation agreements 
between institutions of higher education and training in Europe and in 
Macao, notably with regard to science, technology and vocational 
training. 
Article 11 
THE ENVIRONMENT 
The Contracting Parties shall undertake to cooperate on environmental 
protection, particularly with regard to legislation and standards, 
research, training, technical assistance, the implementation of 
environmental improvement projects and the organization of seminars and 
meetings in this field. 
Article 12 
SOCIAL DEVELOPMENT 
1. The Contracting Parties shall establish cooperation in the field of 
social development in Macao in order to improve the standard of living 
and quality of life of the most disadvantaged sections of the 
populat ion. 
2. Measures to attain this aim could include technical assistance 
concentrating on vocational training, the administration and improvement 
of social services, job creation, improvement of housing and preventive 
med i c i ne. 
Article 13 
DRUGS 
Within the bounds of their respective powers, the Contracting Parties 
undertake to coordinate and intensify their efforts to inhibit and reduce 
the production, trafficking and consumption of drugs. They shall exchange 
relevant information in this regard. 
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Article 14 
TOUR ISM 
Within the bounds of their legislation, the Contracting Parties shall 
encourage cooperation in Macao's tourist industry through targeted action, 
notably the development of promotion, an interchange of information and 
statistics, exchanges of experts and training focused on a transfer of 
technology and improved administration in the industry. 
Article 15 
RESOURCES FOR UNDERTAKING COOPERATION 
In order to facilitate the achievement of the aims set out in this 
Agreement, the Contracting Parties shall make available, within the limits 
of their abilities and through their own channels, the appropriate 
resources, including financial resources. 
CHAPTER I I I 
JOINT COMMITTEE 
Article 16 
1. The Contracting Parties shall establish under this Agreement a Joint 
Committee consisting of representatives of the Community, on the one 
hand, and representatives of Macao, on the other. 
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The role of the Joint Committee shall be to promote cooperation as 
proposed by the Contracting Parties, and In particular: 
- to oversee and verify the functioning of the Agreement, 
- to study the development of trade and cooperation; 
- to seek appropriate methods of forestalling problems which might arise 
in areas covered by the Agreement, 
- to propose measures suitable for the development and diversification of 
trade and cooperation; 
- to exchange opinions and make suggestions on any issue of common 
interest within the fields covered by this Agreement. 
2. The Joint Committee shall meet at least once a year, in Brussels and 
Macao alternately. Special meetings may be convened by mutual 
agreement, at the request of either Contracting Party. 
3. The Joint Committee shall adopt its own rules of procedure and programme 
of work. The agenda for meetings of the Joint Committee shall be 
determined by agreement between the Parties. 
CHAPTER IV 
FINAL PROVISIONS 
Article 17 
Without prejudice to the provisions of the Treaties establishing the 
European Communities, neither this Agreement nor any action taken under it 
shall in any way affect the powers of the Member States of the Communities 
to undertake bilateral activities with Macao in the field of economic 
cooperation or where appropriate to conclude new economic cooperation 
agreements with Macao. 
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Article 18 
TERRITORIAL APPLICATION 
This Agreement shall apply, on the one hand, to the territories in which 
the Treaty establishing the Community is applied and under the conditions 
laid down in that Treaty and, on the other, to the territory of Macao. 
Article 19 
ENTRY INTO FORCE AND TACIT* RENEWAL 
1. This Agreement shall enter into force on the first day of the month 
following the date on which the Contracting Parties have notified each 
other of the completion of the procedures necessary for this purpose. 
2. This Agreement is concluded for a period of five years. It shall be 
renewed tacitly on a yearly basis unless one of the Contracting Parties 
denounces it to the other Party in writing six months before the date of 
expiry. 
Art icle 20 
AUTHENTIC TEXTS 
This Agreement is drawn up in duplicate in the Danish, Dutch, English, 
French, German, Greek, Italian, Portuguese, Spanish and Chinese languages, 
each text being equally authentic. 
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Article 21 
FUTURE DEVELOPMENTS 
1. The Contracting Parties may by mutual consent expand this Agreement with 
a view to enhancing the levels of cooperation and supplementing them, 
within the bounds of their respective laws, by means of agreements on 
specific sectors or activities. 
2. With regard to the implementation of this Agreement, either of the 
Contracting Parties may put forward suggestions for widening and 
strengthening cooperation, taking into account the experience gained in 
its applicat ion. 
Financial Statement 
1• Title of ooerat ion 
Agreement for trade and cooperation between the European Economic Community 
and Macao. 
2. Budget headings involved 
(a) budget headings whose application is conditional on the existence 
of a cooperation agreement: 
B7-5020 -
B7-3005 -
B6-8200 -Operations under commercial and economic 
cooperation agreements with third countries 
B8-7520 - expenditure on support operations 
Operations to promote Community investment in Asian 
developing countries in the context of economic and 
trade agreements 
International cooperation - research and 
development operations under cooperation agreements 
with third countries 
(b) other budget headings 
B7-3000 -
B7-3001 -Financial and technical cooperation with Asian 
developing countries 
B8-7300 - expenditure on support operations 
Promotion of trade relations with Asian developing 
countr ies 
B7-3003 -
B7-3004 -
B7-5030 -B8-7301 - expenditure on support operations 
Cooperation with Asian developing countries on 
energy 
Training operations for nationals of Asian 
developing countries 
B8-7304 - expenditure on support operations 
Expenditure on the organization of seminars on the 
Community's generalized system of preferences 
B7-5040 -
3. Legal basis 
Current legal basis Ecology in the developing countries 
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4. Description of operation 
4.1 Aim: 
To establish cooperation in the interests of both parties. 
4.2 Duration: 
The period for which the Agreement is valid (five years, 
renewable annually). 
4.3 Parties involved: 
The economic agents and authorities of both parties. 
5. Classification of expenditure or revenue 
Non-compulsory 
6. Type of expenditure 
i 
6.1 Type: 
Grants to various projects in the different fields of 
cooperation covered by the Agreement. 
6.2 Community financial contribution as a proportion (%) of the 
total cost of the operation: 
To be decided on an individual basis, 100% in certain 
instances. 
7. Financial impact on appropriations for operations 
7.1 Method of financing the action during the current year: 
From current appropriations. 
7.2 Schedule of commitment and payment appropriations: 
On request, following approval of the project by the 
Commission departments and up to an amount not exceeding 
the appropriations to be entered under the relevant budget 
headings. 
8. What anti-fraud measures are planned in the proposal for the 
ooerat ion? 
The authorities of Macao and the Commission will apply the usual 
forms of verification. 
9. Observat ions 
For future budgets expenditure arising in connection with the 
cooperation agreement will be determined in accordance with the 
usual procedure. 
« 

ISSN 0254-1475 
COM(92) 239 final 
DOCUMENTS 
EN 11 02 
Catalogue number: CB-CO-92-246-EN-C 
ISBN 92-77-44782-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg