Brussels, 31/08/2007 (Agence Europe) - In 2006, Macao has one of the highest growth rates in the world but in a report by the European Commission on Macau a former Portuguese enclave since its return to China in 1999) published in August, it explains that the 'signs are that the coming years will see the Macao economy and government facing increasing challenges to achieve sustainable development'. The Commission welcomes the high quality relations between the EU and the Macao Special Administrative Region (SAR) over both cooperation and trade issues but expresses concern about infringements of intellectual property rights and respect for competition conditions for European investors.
The European Commission comments that the huge economic growth experienced by Macao (whose GDP rose by 16.6% in real terms in 2006) results from gambling tax revenues, a building and investment boom, huge consumption levels and exports of goods and services. Economic expansion has speeded up with the building and opening of new casinos, new gambling arenas, hotel and residential budding projects, resulting in a high growth in tax revenues. The authors note in the political section of the report that Macao 'is characterised by a steep and widening inequality of incomes,' (see EUROPE 9490) and is experiencing social problems caused by bad management of immigrant labour. The Commission adds that sustainable development will be a challenge for the government and economy in years to come 'to expand its capacity in terms of infrastructure and manpower to meet demand and to widen the narrow base of the economy to a more diversified one.'
When it comes to trade, the report recognises the efforts deployed by Macao to improve legislation and structures for implementing the protection of intellectual property rights but the Commission expresses concern about infringements in some areas. The 'most notable case is the one of antenna companies that have been providing for years pirated TV signals of European and American programmes and infringing the rights of the licensed broadcasting company, Macau Cable TV. Following prolonged litigation, government intervention and repeated diplomatic efforts by the EU and host countries of right holders, the IPR dispute has probably come to a possible solution with the acquisition of Macao Cable TV by a Macao antenna company. The Commission hopes that the new ownership structure will lead to a remedy of the previous IPR abuses of broadcasting content, and will continue to monitor the situation.'
The Commission congratulates Macao for improvements in its legal system in terms of combatting money-laundering and anti-terrorism. In the report, it notes that 'in 2006, the Macao government continued its 'administrative' management of Banco Delta Asia, which had been accused of money laundering on behalf of DPRK/North Korea by the US Treasury Department in 2005.. The Macao government has reportedly continued to be in close and cooperative relations with its key international partners in this regard - especially the USA and mainland China - on this matter of international importance.' 'The Closer Economic Partnership Arrangement (CEPA) between mainland China and Macao entered its fourth phase in 2006… and 13 new liberalisation measures in trade in services were introduced, opening up altogether 26 services sectors for Macao businesses in mainland China. For trade and investment facilitation, new cooperation areas were introduced, including IPR, exhibition services and Chinese medicine.'
In its wish list, the Commission says it hopes to work with Macao to introduce equivalent measures to those in force in the EU on savings taxation. On environmental issues, it wants to cooperate with Macao and explore the possibility of trilateral cooperation (EU-Macao-mainland China) 'as appropriate'.
Mentioning the meeting in June 2006 between Jose Manuel Barroso, President of the European Commission, and Edmund Ho, Macao Chief Executive, the Commission explains that the 'the two leaders agreed that Macao and the European Union should continue to develop, broaden and deepen cooperation in areas of common interest,' like customs and immigration. (ol)