Proposal for a COUNCIL DECISION concerning the conclusion of a trade and cooperation agreement between the European Economic Community and Macao
Date: 1992-06-05
Institutions: European Commission
Subjects: Macao, cooperation agreement (EU), democratisation, economic cooperation, trade cooperation

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NOT FOR PUBLICATION 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, 

-  3 -

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. 

/

/• 

-  A 

-

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. 

This Decision  shall  enter  into  force on  the  third  day  following  that  of  its 
publication  in the Official  Journal  of  the European  Communities. 

Article  4 

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, 

./jk 

HAVE  AGREED  AS  FOLLOWS: 

-  2 -

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; 

-  3 -

(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. 

-  4 -

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. 

- 5 -

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) 

(b) 

to promote an  increase  in mutually beneficial  investment, within 
the  limits of  their  responsibilities, rules and policies, 

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. 

- 6 -

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. 

- 7 -

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. 

-  8 -

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. 

- 9 -

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. 

-  10 -

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. 

-  11 -

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. 

1• Title of ooerat ion 

Financial  Statement 

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 -

Operations under  commercial  and  economic 
cooperation agreements with  third  countries 

B8-7520 - expenditure on support  operations 

B7-3005 -

B6-8200 -

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 -

Financial  and  technical  cooperation with  Asian 
developing  countries 

B8-7300 - expenditure on support  operations 

B7-3001  -

Promotion of  trade relations with  Asian  developing 
countr ies 

B7-3003 -

B7-3004 -

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 

B7-5030 -

Expenditure on  the organization  of  seminars on  the 
Community's  generalized  system of  preferences 

B7-5040 -

Ecology  in the developing  countries 

3. Legal  basis 

Current  legal  basis 

/?V 

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 
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