Mainland and Macao Closer Economic Partnership Arrangement

Mainland and Macao Closer Economic Partnership Arrangement

October 17, 2003

Preamble

The Mainland and the Macao Special Administrative Region (hereafter referred to as the "two parties") decided to sign the Mainland and Macao Closer Economic Partnership Arrangement (hereafter referred to as the Arrangement) for the purpose of bringing about economic prosperity and development in both of the two parties and strengthening trade and economic relations of the two parties with other countries and regions.

Chapter I General Provisions

Article 1 Objectives
Through the implementation of the following measures, trade and investment cooperation between the Mainland and the Macao Special Administrative Region (hereafter referred to as "Macao") shall be strengthened and joint development of the two parties brought about:
1.progressive reduction or elimination of tariff and non-tariff barriers on all the trade of goods between the two parties;
2.progressive realization of liberalization in service trade through reduction or elimination of all discriminatory measures;
3.promotion of trade and investment facilitation.

Article 2 Principles
The conclusion, implementation and amendment of the Arrangement shall adhere to the following principles:
1.abiding by the principle of "one country, two systems";
2.complying with the rules of the World Trade Organization;
3.in accordance with the needs of both parties to adjust and upgrade their industries and promoting steady and sustained development;
4.achieving reciprocity and mutual benefit, mutual complementary advantages and joint prosperity;
5.taking progressive actions, dealing with the easier subjects before the difficult ones.

Article 3 Establishment and Development
1.The two parties shall implement the specific commitments for liberalization of trade in goods and services under the Arrangement as from January 1, 2004.
2.The two parties shall broaden and enrich the content of the Arrangement through continuous and further reciprocal liberalization between each other.

Article 4 Non-application of specific provisions in China's WTO Accession Legal Documents
The two parties recognize that through the reform of over two decades' and the opening up, the market economy system of the Mainland has been continuously improving, and the mode of production and operation of Mainland enterprises is in line with the requirements of a market economy. The two parties agree that Articles 15 and 16 of the Protocol on the Accession of the People's Republic of China to the World Trade Organization and Paragraph 242 of the Report of the Working Group on the Accession of the People's Republic of China to the World Trade Organization will not be applicable to trade between the two parties.

Chapter II Trade in Goods

Article 5 Tariffs
1.Macao will continue to apply zero tax to all imported goods of Mainland origin.
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