Secretary for Justice Rimsky Yuen signed an arrangement today to provide mutual recognition and enforcement of arbitral awards in Hong Kong and Macau.

Under the deal, Hong Kong courts will recognise and enforce arbitral awards made in Macau, pursuant to the laws there, and Macau courts will recognise and enforce arbitral awards made in Hong Kong, pursuant to the Arbitration Ordinance.

Where a party fails to comply with an arbitral award, whether made in either city, the other party can apply to the court where the party against whom the application is filed is domiciled or the place in which the property of the said party is situated, for recognition and enforcement of the award.

The arrangement will add certainty to the enforceability of Macau arbitral awards in Hong Kong and vice-versa, and provide a simple and effective mechanism in both jurisdictions on reciprocal enforcement of arbitral awards.

It will also foster legal and judicial co-operation between Hong Kong and Macau in civil and commercial matters, and enhance Hong Kong's position as a regional arbitration centre for commercial disputes in the Asia-Pacific.

During his stay in Macau, Mr Yuen also visited other legal and judicial organisations to enhance mutual exchanges and relations in legal and judicial matters.

Mr Yuen returned to Hong Kong this evening.