Foreign Relations of Macau - The EU and Macau

The EU and Macau

EU-Macau relations are based on a Trade and Co-operation Agreement concluded on 14 December 1992, which came into effect on 1 January 1993. This agreement covers trade and industrial, scientific and technical co-operation. A Joint Committee meets annually to oversee the operation of the Agreement and devises ways of developing trade and co-operation. The agreement remained in force as usual after 20 December 1999.

The Commission's 1998 Communication "Building a Comprehensive Partnership with China" stated that EU policy was to support Macau's high degree of autonomy. This policy stems naturally from the EU's strong economic links and historical ties with Macau.

On 12 November 1999 the Commission adopted a Communication to the Council and the European Parliament, entitled "The EU and Macau: Beyond 2000" . In this communication the EU considers that the respect for the principles set out in the basic law of Macau and the full implementation of the concept "one country, two systems" guarantee the specific social, economic and cultural identity of Macau. The Commission committed itself to monitor the situation in the territory by issuing annual reports.

The Macau SAR has an Economic and Trade Office (METO) accredited to the European Union, which ensures a regular dialogue between the EU and Macau on areas under the new SAR's responsibility, such as trade, economic relations and co-operation.

On 15 March 2001 the Council of the European Union adopted a new visa regulation and the EU granted visa-free access to Macau SAR passport-holders as from 10 April 2001.

An EC-Macau re-admission agreement was finalized and initialled on the occasion of the 9th EC-Macau Joint Committee in Brussels, Belgium on 18 October 2002. It was signed on 13 October 2003 in Luxembourg by Commissioner Chris Patten and the Italian Minister of Foreign Affairs Franco Frattini on behalf of the EC, and by Florinda Chan, Secretary for Administration and Justice, on behalf of Macau. The EU-Macau Cooperation in the Legal Field Project was inaugurated on 3 December 2002, featuring a series of seminars and training programmes to be executed for a period of 48 months for judges, procurators, government lawyers and other legal practitioners of the Macau SAR.

Given its status as a separate customs territory as stated in the basic law, Macau continues to be treated by the EU as a separate entity for trade policy purposes. The EU was Macau's third largest trading partner and absorbed about 23% of its total exports, while 12% of Macau's imports came from the EU in 2003 (Macau trade statistics). Total bilateral trade between the EU and Macau reached €1 billion in 2002. Macau's trade surplus with the EU was €382 million (Eurostat). The EU was the third biggest investor in Macau after Hong Kong and the People's Republic of China with 25 firms investing in the SAR in 2001. Total investment stock amounted to over €400 million. Macau's membership in the World Trade Organization and liberal economic system offer favourable conditions for EU investments.