The European Union (EU) is looking forward to enhancing its cooperation with the Hong Kong and Macao Special Administrative Regions in the years ahead from 2007 to 2013, said Thomas Roe, Head of the Office of European Commission in Hong Kong and Macao.

The EU will continue to build on the strong base on mutual interest. There is substantial and growing cooperation, both direct and indirect, as Hong Kong and Macao continue to provide a platform for deepening cooperation with the Chinese mainland. Following a new agenda for cooperation between the two sides, seven key areas have been set out. They are: trade and customs, finance, people-to-people links (including education), transport, the environment, health and food safety.

The EU has also strong interest in the continued autonomy and freedom enjoyed by the two SARs, and supports early and substantial progress towards universal suffrage.

Speaking at a lunch meeting with media representatives in Hong Kong yesterday, Roe said trade and customs cooperation to tackle smuggling and infringement of intellectual property rights remained the cornerstone for a strong bilateral relationship. After Hong Kong and Macao have signed the Closer Economic Partnership Arrangement with the mainland, companies in Hong Kong and Macao have benefited from the agreement but the EU will continue to monitor if the agreements are WTO-competitive and if they will generate any negative impact on the foreign investors.

He was also very pleased to find that Hong Kong is on its way to legislate a fair competition law. "Hong Kong is a model for us to open multilateral free trade in the region," he said.

At the meeting, he also disclosed the idea of holding regular briefing or discussion sessions for local media representatives and government officials on policy issues of great interest to the local society or policy areas affecting Hong Kong and the mainland.

Take heritage conservation as an example, there is much Hong Kong can learn and share with European countries in striking a balance between urban development and preservation of historic monuments although he considered it primarily a domestic issue for Hong Kong.

On whether Hong Kong should have a goods and service tax, Roe said that Hong Kong has an enviable financial position, but he would welcome Hong Kong to find a way to keep its revenue smooth and predictable. He also did not comment on whether Hong Kong should set a minimum wage in two years' time. But he added: "In the EU, this is an issue for the member states. But if this leads to distortion of markets, then the EU will have the legal right to mention these issues."

(HK Edition 01/20/2007 page6)