Speeches and Articles by Former Consul General Richard A. Boucher

U.S. - Macau Relations: A 1997 Update

Remarks by U.S. Consul General Richard A. Boucher
at the World Trade Center, Macau
March 13, 1997

(As Prepared for Delivery)

I am very happy to have the opportunity to speak to the members of the World Trade Center Macau and to see the World Trade Center's impressive new facility. I am sure this beautiful building provides the right ambiance to inspire more business deals in Macau.

I have come here today to discuss our already good bilateral relations and what we may do to further those relations, both government to government and, perhaps more importantly, on the private side, particularly commercial relations. I also want to express U.S. support for the transition process underway in Macau. We were impressed by the successful Legislative Assembly elections held last September which will clearly contribute to the stability of the transition. The spirit of cooperation exhibited by the people of Macau and the governments of Portugal and China augur well for Macau's future and for the continuation of Macau's unique cultural heritage and substantial economic achievements.

We care about the transition because we have important economic and commercial links to Macau, ties that we hope to build upon:

The U.S. currently absorbs approximately forty percent of Macau's exports and more than one half of Macau's textile and garment exports. We hope to continue to serve as an important market for Macau exporters, but are also eager to expand U.S. sales here.

Macau's efforts to develop its infrastructure have created, and we hope will continue to create, opportunities for U.S. trade and investment. We are pleased to have U.S. firms such as Ogden playing a role in the operation of Macau's new international airport. Other U.S. firms such as Bel Fuse, enjoy the benefits of manufacturing here. We are available to work with you to help more American companies consider operating here.

With the opening of the cargo facility at Macau's airport, U.S. transportation companies such as freight forwarders, are moving to set up offices here and expect to begin moving more air freight through Macau. Although the volume is very low so far, the freight forwarders we have talked to have found Macau's operations efficient and reasonable.

The lack of water transport links from Hong Kong directly to the airport here, somewhat inhibits cargo shipment through Macau's airport. Once the planned ferry link as well as proposed rail and highway links between Macau and China are built, I am confident that our direct trade with Macau and through Macau to other points in the Pearl River Delta will increase.

We are continually working to strengthen the United States' ties with Macau. Last fall we focused our Macau Day reception on fostering economic and commercial ties between the U.S. and Macau. We were joined by representatives of the American Chamber of Commerce in Hong Kong and several U.S. companies from Hong Kong doing business in Macau. Since then we've been talking with many of you and other important Macanese business leaders, and cooperating with Macau's Trade and Investment Promotion Institute to develop more U.S. business interests in Macau. Our Commercial Section has been working with the American Chamber of Commerce and some American consulting companies to promote awareness of Macau and to try to draw more American companies to establish operations here.

Frankly, I believe the Macau business and government leaders can do more to promote Macau. The steps the Investment Institute has taken, including the seminar on February 28 for the various diplomatic missions in Hong Kong and the March 4 meeting with the Trade and Investment Committee of the American Chamber of Commerce in Hong Kong are great beginnings but more Americans have to be made aware of Macau's competitive strengths. I encourage Macau business people to play an active role in encouraging businesses to come to Macau. In addition to the local market, Macau can take steps to make itself a more attractive place for companies to invest and operate. Macau's competitive advantages already include rents that are seventeen percent of Hong Kong's rates; a convenient new airport where landing slots are still available; reasonable warehouse facilities for logistics centers; and easy access to the booming Pearl River Delta.

As Macau heads toward its transition, I hope it will continue to reduce the bureaucracy which companies face and will become more transparent. Greater use of English is also vital to attracting more multinational companies. I understand there is now an ad hoc group of Macau businesspeople who have offered to help any foreign companies considering doing business here who are concerned about the language or other barriers.

On the Government level, the United States is interested in strengthening ties between the U.S. and Macau across a range of issues:

On trade, we were very pleased to learn last month that Macau has committed to join the World Trade Organization's Information Technology Agreement. We applaud the move and appreciate Macau's free trade regime which serves as an example for many economies in Asia.

On civil aviation, the United States' Federal Aviation Administration is exploring ways of cooperating with Macau's civil aviation authorities, particularly in implementing new technology for navigation and other areas where there may be mutual interests in promoting aviation safety and security.

We are also interested in working with Macau on environmental issues. Within the Consulate General, we have an office for the U.S.- Asian Environmental Partnership, a program to work with Asian countries on addressing environmental problems, providing training and exchanges and introducing U.S. technologies. I know that our people are in close contact with Macau's Health Department officials responsible for the environment and that they hope to work together on areas such as electric vehicles.

We have appreciated the cooperation that our counterparts in the Macau Government have provided in areas ranging from countering the spread of narcotics in the region to combating currency counterfeiting. Some of these enforcement issues have a direct bearing on trade and business.

Last summer, we worked closely with Macau authorities to address the issue of textiles transshipments. As a result of the excellent cooperation between U.S. and Macau officials, there are now procedures in place that we hope will significantly reduce the amount of transshipment. This is a necessary development for the continuation of Macau's textile exports to the U.S. We continue to hold discussions on textiles and appreciate all of Macau's efforts to date.

We have also encouraged our counterparts here to strengthen their efforts to protect intellectual property rights by aggressively pursuing those involved in the piracy of software, films, and music in violation of U.S. company trademarks. A strong intellectual property rights regime is essential to Macau's efforts to attract foreign investment and to develop high technology industry and services.

Many of these are difficult issues to tackle, but by continuing to work together, I am confident that we will be successful. This list of items identifies the many areas where we have a unique and special relationship with Macau, which itself is a unique and special place. Both before and after the transfer of administration in 1999, we will cooperate and expand our official relationships with Macau and its new administration in every area of Macau's autonomy. We look forward to working with Macau after transition as a responsible partner in all areas of commerce, law enforcement, shipping, aviation and trade, just as we do now. We expect of Macau that it will continue to uphold its side of bilateral agreements and work flexibly with us in pursuing our joint goals. As Macau acts autonomously, so do we expect to maintain a distinct and autonomous relationship with Macau. That is our policy and our intention for the future.

I look forward to many more reasons to come to Macau as we further develop the links between our two economies. Perhaps I can cut the ribbon at future U.S.- Macau joint ventures! In the meantime, the U.S. Consulate General stands ready to work with you toward that goal.

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