CELEX: 51992PC0239
Language: en
Date: 1992-06-05
Title: Proposal for a COUNCIL DECISION concerning the conclusion of a trade and cooperation agreement between the European Economic Community and Macao

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)
 ---pagebreak--- NOT FOR PUBLICATION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,
 ---pagebreak---                                      - 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.
                                                                         / / •
 ---pagebreak---                                     -  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.
                                  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
 ---pagebreak---                                   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
 ---pagebreak---                                     - 2 -
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;
 ---pagebreak---                                    - 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.
 ---pagebreak---                                         - 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.
 ---pagebreak---                                       - 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.
 ---pagebreak---                                      - 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.
 ---pagebreak---                                      - 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.
 ---pagebreak---                                      - 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.
 ---pagebreak---                                      - 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.
 ---pagebreak---                                     - 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.
 ---pagebreak---                                    - 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.
 ---pagebreak---                               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 -        Operations under commercial and economic
                          cooperation agreements with third countries
                          B8-7520 - expenditure on support operations
         B7-3005 -        Operations to promote Community investment in Asian
                          developing countries in the context of economic and
                          trade agreements
         B6-8200 -        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
                          B8-7301 - expenditure on support operations
         B7-3003 -        Cooperation with Asian developing countries on
                          energy
         B7-3004 -        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
 ---pagebreak--- 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.
                                                                           «
 ---pagebreak---  ---pagebreak---                                                                     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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