Source: EURLEX
Language: en
Format: md

### **`COMMISSION OF THE EUROPEAN COMMUNITIES`**

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             »

                         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)

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NOT FOR PUBLICATION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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                     - 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.

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/ / 

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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

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                     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:

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     - 2 
    Article 1

BASIS FOR COOPERATION

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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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                      - 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.

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                     - 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.

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                     - 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) 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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                     - 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.

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                     - 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.

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                     - 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.

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                     - 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.

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                     - 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.

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                    - 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.

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                 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:

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B7-5020 
B7-3005 
B6-8200 
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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

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(b) other budget headings

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     B7-3000 
     B7-3001 
     B7-3003 
     B7-3004 
     B7-5030 
     B7-5040 
3. Legal basis

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Financial and technical cooperation with Asian
developing countries

B8-7300 - expenditure on support operations

Promotion of trade relations with Asian developing

countr ies

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

Ecology in the developing countries

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Current legal basis

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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.

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**«**

##### **ISSN 0254-1475**

## **COM(92) 239 final**

# **DOCUMENTS**

## **E N 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**