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TRADE POLICY REVIEW:

Concluding remarks by the Chairperson

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The third Trade Policy Review of Macao, China has been thorough and informative and has given us a better understanding of the trade policies and practices of the Macao Special Administrative Region (MSAR) together with the challenges that it faces. I thank Mr Tam Pak Yuen and his delegation as well as the Discussant, Mr Paulo Estivallet de Mesquita of Brazil, and Members of the TPRB for contributing to our fruitful exchange of views. The reports by the Macao, China authorities and the Secretariat, as well as the detailed responses of the delegation of Macao, China to the many questions posed, have provided a valuable resource for domestic reflection and for transparency within the WTO.

Members noted that Macao, China continues to be open towards trade and investment. Since the last Trade Policy Review, its economy has grown rapidly as a result of sound economic policies, liberalization of the gaming sector and a favourable external environment. The MSAR is essentially a free port that imposes no tariffs and few non-tariff border measures and has no contingency measures in place. While Members appreciated the absence of trade restrictive measures, they noted that the scope of MSAR's tariff bindings remains low. They urged Macao, China to expand bindings coverage notably in the context of the DDA negotiations and the authorities have indicated a willingness to do so. Members also noted that a number of services sectors have been liberalized, notably gaming and mobile telephony, and in the context of the DDA, Macao, China's revised GATS offer can be considered relatively comprehensive. Regarding the investment regime, given the low rates of tax on company profits and the non-discriminatory treatment of foreign investors, Macao, China is widely regarded as an attractive investment destination.

Members welcomed Macao, China's active and constructive role in the WTO and its contribution to the DDA negotiations and its commitment to the primacy of the rules-based multilateral trading system. They also noted the current and potential benefits from the Closer Economic Partnership Arrangement (CEPA) with the Mainland in terms of both the opportunities for at least partial diversification of economic activities and for ensuring a steady and expanding flow of visitors and tourists to Macao, China, mainly as a result of the Individual Traveller Scheme.

Members noted the MSAR's steady and consistent improvements in the protection of intellectual property rights, but welcomed further efforts to strengthen transparency, the legal framework as well as enforcement in matters relating in particular to signal, software and optical disc piracy. Members also appreciated the recent legislation that was passed targeting money laundering activities and a Member enquired about any plans to improve anti-corruption legislation in the private sector.

Some Members noted the lack of a comprehensive competition policy law to address, for example, the activities of private companies with exclusive rights under government concessions and consumer protection. Some Members encouraged Macao, China to further open its government procurement system and encouraged the authorities to consider joining the GPA. Attention was also drawn to an apparent lack of transparency in certain areas such as land allocation and to difficult challenges in terms of infrastructure development. The question was raised as to whether MSAR legislation gives the Chief Executive the authority to provide export subsidies. Concerning sustainable development, a Member emphasised the need for Macao, China to strike a careful balance between economic growth and social development.

Members noted that the MSAR has become increasingly a services-oriented economy focused on tourism and commended the initiatives of the authorities to transform Macao, China from a gaming destination into a regional hub for meetings, incentives, conventions and exhibitions.

This Review has been very useful in giving us all an overview of Macao, China's trade policies and practices and the challenges it faces. I would once again like to thank the Macao, China delegation for their efforts, the Discussant for his insightful comments, and Members for contributing to what has been an enlightening two days of discussions. We look forward to receiving the remaining outstanding responses as soon as possible. 

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