This law is a Partnership and Cooperation Agreement between the European Communities and their Member States, and the Republic of Azerbaijan

21999A0917(01) 21999A0917(01) Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part - Protocol on mutual assistance between authorities in customs matters - Final Act - Joint Declarations - Exchange of Letters in relation to the establishment of companies - Declaration of the French Government Official Journal L 246 , 17/09/1999 p. 0003 - 0051 Dates:

OF DOCUMENT: 22/04/1999 OF EFFECT: 01/07/1999; ENTRY INTO FORCE SEE ART 104 AND OJ L 261/99 P. 41 OF SIGNATURE: 22/04/1996; LUXEMBOURG OF END OF VALIDITY: 99/99/9999 Authentic language: THE OFFICIAL LANGUAGES ; DANISH ; GERMAN ; GREEK ; SPANISH ; FRENCH ; ITALIAN ; DUTCH ; PORTUGUESE ; FINNISH ;

SWEDISH ; ENGLISH ; OTHER THAN COMMUNITY LANGUAGE ; AZERBAIJANI Author:

EUROPEAN COAL AND STEEL COMMUNITY ; EUROPEAN ATOMIC ENERGY COMMUNITY ; THE 15 MEMBER STATES ; BELGIUM ; DENMARK ; FEDERAL REPUBLIC OF GERMANY ; GREECE ; SPAIN ; FRANCE ; IRELAND ; FRANCE ; LUXEMBOURG ;

NETHERLANDS ; AUSTRIA ; PORTUGAL ; FINLAND ; SWEDEN ; UNITED KINGDOM ; AZERBAIJAN Subject matter: EXTERNAL RELATIONS ; PROVISIONS IMPLEMENTING ARTICLE 95 - ECSC ; COOPERATION Directory code: 11406000 EUROVOC descriptor: cooperation agreement ; Azerbaijan ; EC agreement ; EC countries Legal basis:

197E044-P2................ ADOPTION 197E047-P2F3.............. ADOPTION 197E055................... ADOPTION 197E071................... ADOPTION 197E080-P2................ ADOPTION 197E093................... ADOPTION 197E094................... ADOPTION 197E133................... ADOPTION 197E308................... ADOPTION 197E300-P2F2.............. ADOPTION 197E300-P3L2.............. ADOPTION 151K095................... ADOPTION 157A101-L2................ ADOPTION Instruments cited:

294A1231(52)..............

294A1231(53)..............

294A1223(01)..............

294A1223(09)..............

279A0412(06)..............

294A1223(16)..............

396R1279..................

298A1022(02)..............

Amendment to:

290A0315(01)...... AMENDMENT..... PARTIAL REPLACEMENT Amended by:

ADOPTED-BY.... 399D0614..........

PARTNERSHIP AND COOPERATION AGREEMENT between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part THE KINGDOM OF BELGIUM, THE KINGDOM OF DENMARK, THE FEDERAL REPUBLIC OF GERMANY, THE HELLENIC REPUBLIC, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC, IRELAND, THE ITALIAN REPUBLIC, THE GRAND DUCHY OF LUXEMBOURG, THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA, THE PORTUGUESE REPUBLIC, THE REPUBLIC OF FINLAND, THE KINGDOM OF SWEDEN, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, Contracting Parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community, hereinafter referred to as "Member States", and THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as "the Community", of the one part, and THE REPUBLIC OF AZERBAIJAN, of the other part, CONSIDERING the links between the Community, its Member States and the Republic of Azerbaijan and the common values that they share, RECOGNISING that the Community and the Republic of Azerbaijan wish to strengthen these links and to establish partnership and cooperation which would strengthen and widen the relations established in the past in particular by the Agreement between the European Economic Community and the European Atomic Energy Community and the Union of Soviet Socialist Republics on trade and commercial and economic cooperation, signed on 18 December 1989, which, since the dissolution of the USSR, applies mutatis mutandisto bilateral relations between the European Communities and each of the Independent States, CONSIDERING the commitment of the Community and its Member States and of the Republic of Azerbaijan to strengthening the political and economic freedoms which constitute the very basis of the partnership, RECOGNISING in that context that support of the independence, sovereignty and territorial integrity of the Republic of Azerbaijan will contribute to the safeguarding of peace and stability in Europe, CONSIDERING the commitment of the Parties to promote international peace and security, as well as the peaceful settlement of disputes and to cooperate to this end in the framework of the United Nations and the Organisation for Security and Cooperation in Europe (OSCE), DESIROUS of encouraging the process of regional cooperation in the areas covered by this Agreement with neighbouring countries in order

to promote the prosperity and stability of the region and in particular initiatives aimed at fostering cooperation and mutual confidence among Independent States of the Transcaucasus region and other neighbouring States, CONSIDERING the firm commitment of the Community and its Member States and of the Republic of Azerbaijan to the full implementation of all principles and provisions contained in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the Concluding Documents of the Madrid and Vienna Follow-up Meetings, the Document of the CSCE Bonn Conference on Economic Cooperation, the Charter of Paris for a New Europe and the CSCE Helsinki Document 1992 "The challenges of change", and other fundamental documents of the OSCE, CONVINCED of the paramount importance of the rule of law and respect for human rights, particularly those of persons belonging to minorities, the establishment of a multiparty system with free and democratic elections and economic liberalisation aimed at setting up a market economy, BELIEVING that full implementation of this Partnership and Cooperation Agreement will both depend on and contribute to continuation and accomplishment of the political, economic and legal reforms in the Republic of Azerbaijan, as well as the introduction of the factors necessary for cooperation, notably in the light of the conclusions of the CSCE Bonn Conference, DESIROUS of establishing and developing regular political dialogue on bilateral, regional and international issues of mutual interest, RECOGNISING AND SUPPORTING the wish of the Republic of Azerbaijan to establish close cooperation with European Institutions, CONSIDERING the necessity of promoting investment in the Republic of Azerbaijan, including in the energy sector, and in this context the importance attached by the Community and its Member States to equitable conditions for access to and transit for export of energy products; confirming the attachment of the Community and its Member States and of the Republic of Azerbaijan to the European Energy Charter, and to the full implementation of the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects, TAKING ACCOUNT of the Community's willingness to provide for economic cooperation and technical assistance as appropriate, BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between the Republic of Azerbaijan and a wider area of cooperation in Europe and neighbouring regions and its progressive

integration into the open international system, CONSIDERING the commitment of the Parties to liberalise trade, in conformity with World Trade Organisation (WTO) rules, CONSCIOUS of the need to improve conditions affecting business and investment, and conditions in areas such as establishment of companies, labour, provision of services and capital movements, CONVINCED that this Agreement will create a new climate for economic relations between the Parties and in particular for the development of trade and investment, which are essential to economic restructuring and technological modernisation, DESIROUS of establishing close cooperation in the area of environment protection taking into account the interdependence existing between the Parties in this field, RECOGNISING that cooperation for the prevention and control of illegal immigration constitutes one of the primary objectives of this Agreement, DESIROUS of establishing cultural cooperation and improving the flow of information, HAVE AGREED AS FOLLOWS:

Article 1A partnership is hereby established between the Community and its

Member States of the one part, and the Republic of Azerbaijan, of the other part. The objectives of this partnership are:

TITLE I

GENERAL PRINCIPLES

Article 2Respect for democracy, principles of international law and human

rights as defined in particular in the United Nations Charter, the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of market economy, including those enunciated in the documents of the CSCE Bonn Conference, underpin the internal and external policies of the Parties and constitute essential elements of partnership and of this Agreement.

Article 3The Parties consider that it is essential for their future

prosperity and stability that the newly independent States which have emerged from the dissolution of the Union of Soviet Socialist Republics, hereinafter called "Independent States", should maintain and develop cooperation among themselves in compliance with the principles of the Helsinki Final Act and with international law and in the spirit of good neighbourly relations and will make every effort to encourage this process.

Article 4The Parties shall as appropriate review changing circumstances in

the Republic of Azerbaijan, in particular regarding economic conditions there and implementation of market-oriented economic reforms. The Cooperation Council may make recommendations to the Parties concerning development of any part of this Agreement in the light of these circumstances.

TITLE II

POLITICAL DIALOGUE

Article 5A regular political dialogue shall be established between the

Parties which they intend to develop and intensify. It shall accompany and consolidate the rapprochement between the Community and the Republic of Azerbaijan, support the political and economic changes underway in that country and contribute to the establishment of new forms of cooperation. The political dialogue:

Such dialogue may take place on a regional basis, with a view to contributing towards the resolution of regional conflicts and tensions.

Article 6At ministerial level, political dialogue shall take place within the

Cooperation Council established in Article 81 and on other occasions by mutual agreement.

Article 7Other procedures and mechanisms for political dialogue shall be set

up by the Parties, and in particular in the following forms:

Article 8Political dialogue at parliamentary level shall take place within

the framework of the Parliamentary Cooperation Committee established in Article 86.

TITLE III

TRADE IN GOODS

Article 91. The Parties shall accord to one another most-favoured-nation

treatment in all areas in respect of:

Article 101. The Parties agree that the principle of free transit is an

essential condition of attaining the objectives of this Agreement.

In this connection each Party shall secure unrestricted transit via or through its territory of goods originating in the customs territory or destined for the customs territory of the other Party.

Article 11Without prejudice to the rights and obligations stemming from

international conventions on the temporary admission of goods which bind both Parties, each Party shall furthermore grant the other Party exemption from import charges and duties on goods admitted temporarily, in the instances and according to the procedures stipulated by any other international convention on this matter binding upon it, in conformity with its legislation. Account shall be taken of the conditions under which the obligations stemming from such a convention have been accepted by the Party in question.

Article 121. Goods originating in the Republic of Azerbaijan shall be imported

into the Community free of quantitative restrictions without prejudice to the provisions of Articles 14, 17 and 18 of this Agreement.

Article 13

Goods shall be traded between the Parties at market-related prices.

Article 141. Where any product is being imported into the territory of one of

the Parties in such increased quantities or under such conditions as to cause or threaten to cause injury to domestic producers of like or directly competitive products, the Community or the Republic of Azerbaijan, whichever is concerned, may take appropriate measures in accordance with the following procedures and conditions.

Title XI.

Article 15The Parties undertake to consider development of the provisions in

this Agreement on trade in goods between them, as circumstances allow, including the situation arising from the accession of the Republic of Azerbaijan to the WTO. The Cooperation Council may make recommendations on such developments to the Parties which could be put into effect, where accepted, by virtue of agreement between the Parties in accordance with their respective procedures.

Article 16This Agreement shall not preclude prohibitions or restrictions on

imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 17This Title shall not apply to trade in textile products falling

under Chapters 50 to 63 of the Combined Nomenclature. Trade in these products shall be governed by a separate agreement, initialled on 18 December 1995 and applied provisionally as from 1 January 1996.

Article 181. Trade in products covered by the Treaty establishing the European

Coal and Steel Community shall be governed by the provisions of this Title, with the exception of Article 12.

The contact group shall exchange, on a regular basis, information on all coal and steel matters of interest to the Parties.

Article 19Trade in nuclear materials will be conducted in accordance with the

provisions of the Treaty establishing the European Atomic Energy Community. If necessary, trade in nuclear materials shall be subject to the provisions of a specific Agreement to be concluded between the European Atomic Energy Community and the Republic of Azerbaijan.

TITLE IV

PROVISIONS AFFECTING BUSINESS AND INVESTMENT

CHAPTER I

LABOUR CONDITIONS

Article 201. Subject to the laws, conditions and procedures applicable in each

Member State, the Community and the Member States shall endeavour to ensure that the treatment accorded to Azerbaijani nationals legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals.

Article 21The Cooperation Council shall examine which improvements can be made

in working conditions for business people consistent with the international commitments of the Parties, including those set out in the document of the CSCE Bonn Conference.

Article 22The Cooperation Council shall make recommendations for the

implementation of Articles 20 and 21.

CHAPTER II

CONDITIONS AFFECTING THE ESTABLISHMENT AND OPERATION OF COMPANIES

Article 231. The Community and its Member States shall grant treatment no less

favourable than that accorded to any third country for the establishment of Azerbaijani companies as defined in Article 25(d).

Article 241. Without prejudice to the provisions of Article 100, the

provisions of Article 23 shall not apply to air transport, inland waterways transport and maritime transport.

Article 25For the purpose of this Agreement:

(a) a "Community Company" or an "Azerbaijani company" respectively shall mean a company set up in accordance with the laws of a Member State or of the Republic of Azerbaijan respectively and having its registered office or central administration, or principal place of business in the territory of the Community or the Republic of Azerbaijan respectively. However, should the company, set up in accordance with the laws of a Member State or the Republic of Azerbaijan respectively, have only its registered office in the territory of the Community or the Republic of Azerbaijan respectively, the company shall be considered a Community or Azerbaijani company respectively if its operations possess a real and continuous link with the economy of one of the Member States or the Republic of Azerbaijan respectively; (b) "subsidiary" of a company shall mean a company which is effectively controlled by the first company; (c) "branch" of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension; (d) "establishment" shall mean the right of Community or Azerbaijani companies, as referred to in point (a), to take up economic activities by means of the setting up of subsidiaries and branches in the Republic of Azerbaijan or in the Community respectively; (e) "operation" shall mean the pursuit of economic activities; (f) "economic activities" shall mean activities of an industrial, commercial and professional character.

With regard to international maritime transport, including intermodal operations involving a sea-leg, nationals of the Member States or of the Republic of Azerbaijan established outside the Community or the Republic of Azerbaijan respectively, and shipping companies established outside the Community or the Republic of Azerbaijan and controlled by nationals of a Member State or Azerbaijani nationals respectively, shall also be beneficiaries of the provisions of this chapter and Chapter III if their vessels are registered in that Member State or in the Republic of Azerbaijan respectively in accordance with their respective legislation.

Article 261. Notwithstanding any other provisions of this Agreement, a Party

shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of this Agreement, they shall not be used as a means of avoiding the obligations of a Party under this Agreement.

Article 27The provisions of this Agreement shall not prejudice the application

by each Party of any measure necessary to prevent the circumvention of its measures concerning third-country access to its market, through the provisions of this Agreement.

Article 281. Notwithstanding the provisions of Chapter I of this Title, a

Community company or an Azerbaijani company established in the territory of the Republic of Azerbaijan or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of the Republic of Azerbaijan and the Community respectively, employees who are nationals of Community Member States and the Republic of Azerbaijan respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by companies, or branches. The residence and work permits of such employees shall only cover the period of such employment.

Article 291. The Parties shall use their best endeavours to avoid taking any

measures or actions which render the conditions for the establishment and operation of each other's companies more restrictive than the situation existing on the day preceding the date of signature of this Agreement.

Article 37the situations covered by such Article 37 shall be

solely governed by its provisions to the exclusion of any other.

CHAPTER III

CROSS-BORDER SUPPLY OF SERVICES BETWEEN THE COMMUNITY AND THE REPUBLIC OF AZERBAIJAN

Article 301. The Parties undertake in accordance with the provisions of this

chapter to take the necessary steps to allow progressively the supply of services by Community or Azerbaijani companies which are established in a Party other than that of the person for whom the services are intended taking into account the development of the service sectors in the Parties.

Article 31The Parties shall cooperate with the aim of developing a

market-oriented service sector in the Republic of Azerbaijan.

Article 321. The Parties undertake to apply effectively the principle of

unrestricted access to the international maritime market and traffic on a commercial basis: (a) the above provision does not prejudice the rights and obligations arising from the United Nations Convention on a Code of Conduct for Liner Conferences, as applicable to one or other Contracting Party to this Agreement. Non-conference lines will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis; (b) the Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.

Article 33With a view to assuring a coordinated development of transport

between the Parties, adapted to their commercial needs, the conditions of mutual market access and provision of services in transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with by specific agreements where appropriate negotiated between the Parties after entry into force of this Agreement.

CHAPTER IV

GENERAL PROVISIONS

Article 341. The provisions of this Title shall be applied subject to

limitations justified on grounds of public policy, public security or public health.

Article 35For the purpose of this Title, nothing in this Agreement shall

prevent the Parties from applying their laws and regulations regarding entry and stay, work, labour conditions and establishment of natural persons and supply of services, provided that, in so doing, they do not apply them in a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement. The above provision does not prejudice the application of Article 34.

Article 36Companies which are controlled and exclusively owned by Azerbaijani

companies and Community companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV.

Article 37Treatment granted by either Party to the other thereunder shall, as

from the day one month prior to the date of entry into force of the relevant obligations of the General Agreement on Trade in Services (GATS), in respect of sectors or measures covered by the GATS, in no case be more favourable than that accorded by such first Party under the provisions of GATS and this in respect of each service sector, subsector and mode of supply.

Article 38For the purposes of Chapters II, III and IV, no account shall be

taken of treatment accorded by the Community, its Member States or the Republic of Azerbaijan pursuant to commitments entered into in economic integration agreements in accordance with the principles of Article V of the GATS.

Article 391. The most-favoured-nation treatment granted in accordance with the

provisions of this Title shall not apply to the tax advantages which the Parties are providing or will provide in the future on the basis of agreements to avoid double taxation, or other tax arrangements.

Article 40Without prejudice to Article 28, no provision of Chapters II, III

and IV shall be interpreted as giving the right to:

CHAPTER V

CURRENT PAYMENTS AND CAPITAL

Article 411. The Parties undertake to authorise in freely convertible

currency, any current payments between residents of the Community and of the Republic of Azerbaijan connected with the movement of goods, services or persons made in accordance with the provisions of this Agreement.

CHAPTER VI

INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY PROTECTION

Article 421. Pursuant to the provisions of this Article and of Annex II, the

Republic of Azerbaijan shall continue to improve the protection of intellectual, industrial and commercial property rights in order to provide, by the end of the fifth year after the entry into force of this Agreement, for a level of protection similar to that existing in the Community, including effective means of enforcing such rights.

TITLE V

LEGISLATIVE COOPERATION

Article 431. The Parties recognise that an important condition for

strengthening the economic links between the Republic of Azerbaijan and the Community is the approximation of the Republic of Azerbaijan's existing and future legislation to that of the Community. The Republic of Azerbaijan shall endeavour to ensure that its legislation will be gradually made compatible with that of the Community.

TITLE VI

ECONOMIC COOPERATION

Article 441. The Community and the Republic of Azerbaijan shall establish

economic cooperation aimed at contributing to the process of economic reform and recovery and sustainable development of the Republic of Azerbaijan. Such cooperation shall strengthen existing economic links, to the benefit of both parties.

Article 45Cooperation in the field of trade in goods and services

The Parties will cooperate with a view to ensuring that the Republic of Azerbaijan's international trade is conducted in conformity with the rules of the WTO.

Such cooperation shall include specific issues directly relevant to trade facilitation, including:

Article 46Industrial Cooperation

Article 47Construction

The Parties shall cooperate in the field of construction industry.

This cooperation shall, inter alia, aim at modernising and restructuring the construction sector in the Republic of Azerbaijan in line with the principles of a market economy and duly taking into account related health, safety and environmental aspects.

Article 48Investment promotion and protection

Article 49Public procurement

The Parties shall cooperate to develop conditions for open and competitive award of contracts for goods and services in particular through calls for tenders.

Article 50Cooperation in the field of standards and conformity assessment

Article 51Mining and raw materials

Article 52Cooperation in science and technology

Where such cooperation takes the form of activities involving education and/or training, it should be carried out in accordance with the provisions of Article 53.

The Parties, on the basis of mutual agreement, can engage in other forms of cooperation in science and technology.

Article 53Education and training

Article 54Agriculture and the agro-industrial sector

The purpose of cooperation in this area shall be the pursuance of agrarian reform, the modernisation, privatisation and restructuring of agriculture, the agro-industrial and service sectors in the Republic of Azerbaijan, development of domestic and foreign markets for Azerbaijani products, in conditions that ensure the protection of the environment, taking into account the necessity to improve security of food supply as well as the development of agribusiness, the processing and distribution of agricultural products. The Parties shall also aim at the gradual approximation of Azerbaijani standards to Community technical regulations concerning industrial and agricultural food products including sanitary and phytosanitary standards.

Article 55Energy

Title IV and of Article 48, in respect of investments in the energy

sector.

Article 56Environment

Article 57Transport

The Parties shall develop and strengthen their cooperation in the field of transport.

This cooperation shall, inter alia, aim at restructuring and modernising transport systems and networks in the Republic of Azerbaijan, and developing and ensuring, where appropriate, compatibility of transportation systems in the context of achieving a more global transport system. In particular, consideration shall be given to traditional communications links among Independent States in the Transcaucasus region and with other neighbouring states.

The cooperation shall include, inter alia:

Article 58Postal services and telecommunications

Within their respective powers and competences the Parties shall expand and strengthen cooperation in the following areas:

Article 59Financial services

Cooperation shall in particular aim at facilitating the involvement of the Republic of Azerbaijan in universally accepted systems of mutual settlements. Technical assistance shall focus on:

This cooperation shall in particular contribute to foster the development of relations between the Republic of Azerbaijan and the Member States in the financial services sector.

Article 60Enterprise restructuring and privatisation

Recognising that privatisation is of fundamental importance to a sustainable economic recovery, the Parties agree to cooperate in the development of the necessary institutional, legal and methodological framework. To this end, technical assistance shall be given to implement the privatisation programme adopted by the Parliament of Azerbaijan. Particular Attention will be paid to the orderly and transparent nature of the privatisation process.

Technical assistance shall focus on, inter alia:

The objective of this cooperation is to contribute to the revitalisation of the economy of Azerbaijan, the promotion of foreign investment and the development of relations between Azerbaijan and the Member States.

Article 61Regional development

They shall also encourage direct contacts between the abovementioned authorities and between regional and public organisations responsible for regional development planning with the aim, inter alia, to exchange methods and ways of fostering regional development.

Article 62Social cooperation

The cooperation shall include notably:

These reforms shall aim to develop in the Republic of Azerbaijan methods of protection intrinsic to market economies and shall comprise all forms of social protection.

Article 63Tourism

The Parties shall increase and develop cooperation between them, which shall include:

Article 64Small and medium-sized enterprises

Article 65Information and communication

The Parties shall support the development of modern methods of information handling, including the media, and stimulate the effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and the Republic of Azerbaijan, including, where possible, access to databases, in full respect of intellectual property rights.

Article 66Consumer protection

The Parties will enter into close cooperation aimed at achieving compatibility between their systems of consumer protection. This cooperation may include the exchange of information on legislative work and institutional reform, establishment of permanent systems of mutual information on dangerous products, the improvement of information provided to consumers especially on prices, characteristics of products and services offered, the development of exchanges between the consumer interest representatives, and increasing the compatibility of consumer protection policies, and the organisation of seminars and training periods.

Article 67Customs

Technical assistance shall be provided where necessary.

Article 68Statistical cooperation

Cooperation in this area shall have as its aim the development of an efficient statistical system to provide the reliable statistics needed to support and monitor the process of economic reform and contribute to the development of private enterprise in the Republic of Azerbaijan. It shall also address the protection of confidentiality.

The Parties, in particular, shall cooperate in the following fields:

The Community shall contribute to this end by rendering technical assistance to the Republic of Azerbaijan.

Article 69Economics

The Parties shall facilitate the process of economic reform and the coordination of economic policies by cooperating to improve understanding of the fundamentals of their respective economies and the design and implementation of economic policy in market economies. To this end, the Parties shall exchange information on macroeconomic performance and prospects.

The Community shall provide technical assistance so as to:

Article 70Monetary policy

At the request of the Azerbaijani authorities, the Community shall provide technical assistance designed to support the efforts of the Republic of Azerbaijan towards the strengthening of its monetary system and the introduction of full convertibility of the currency.

This will include technical assistance for the design and application of the Republic of Azerbaijan's monetary and credit policy, in full coordination with the international financial institutions, for the training of personnel, and for the development of financial markets, including the stock exchange. It shall also include informal exchanges of views concerning the principles and the functioning of the European Monetary System and Community regulations on financial markets and capital movements.

TITLE VII

COOPERATION ON MATTERS RELATING TO DEMOCRACY AND HUMAN RIGHTS

Article 71The Parties shall cooperate on all questions relevant to the

establishment or reinforcement of democratic institutions, including those required in order to strengthen the rule of law, and the protection of human rights and fundamental freedoms according to international law and OSCE principles.

This cooperation shall take the form of technical assistance programmes intended to assist, inter alia, in the drafting of relevant legislation and regulations; the implementation of such legislation; the functioning of the judiciary; the role of the State in questions of justice; and the operation of the electoral system.

They may include training where appropriate. The Parties shall encourage contacts and exchanges between their national, regional and judicial authorities, parliamentarians, and non-governmental organisations.

TITLE VIII

COOPERATION ON PREVENTION OF ILLEGAL ACTIVITIES AND THE PREVENTION AND CONTROL OF ILLEGAL IMMIGRATION

Article 72The Parties shall establish cooperation aimed at preventing illegal

activities such as:

Cooperation in the abovementioned areas will be based on mutual consultation and close interaction. Technical and administrative assistance may be provided, including in the following areas:

Article 73Money laundering

Article 74Drugs

Within the framework of their respective powers and competencies the Parties shall cooperate in increasing the effectiveness and efficiency of policies and measures to counter the illicit production, supply and traffic of narcotic drugs and psychotropic substances, including the prevention of diversion of precursor chemicals, as well as in promoting drug demand prevention and reduction. The cooperation in this area shall be based on mutual consultation and close coordination between the Parties over the objectives and measures on the various drug-related fields.

Article 75Illegal immigration

The Member States and the Republic of Azerbaijan will also provide their nationals with appropriate identity documents for such purposes.

TITLE IX

CULTURAL COOPERATION

Article 73The Parties undertake to promote, encourage and facilitate cultural

cooperation. Where appropriate, the Community's cultural cooperation programmes or those of one or more Member States may be the subject of cooperation and further activities of mutual interest may be developed.

The cooperation may include:

TITLE X

FINANCIAL COOPERATION IN THE FIELD OF TECHNICAL ASSISTANCE

Article 77In order to achieve the objectives of this Agreement and in

accordance with Articles 78, 79 and 80, the Republic of Azerbaijan shall benefit from temporary financial assistance from the Community by way of technical assistance in the form of grants. The purpose of this assistance shall be to accelerate the economic transformation of the Republic of Azerbaijan.

Article 78This financial assistance shall be covered within the framework of

Tacis as foreseen in the Community's relevant Council regulation.

Article 79The objectives and the areas of the Community's financial assistance

shall be laid down in an indicative programme reflecting established priorities to be agreed between the two Parties taking into account the Republic of Azerbaijan's needs, sectoral absorption capacities and progress with reform. The Parties shall inform the Cooperation Council thereof.

Article 80In order to permit optimum use of the resources available, the

Parties shall ensure that Community technical assistance contributions are made in close coordination with those from other sources such as the Member States, other countries, and international organisations such as the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development.

TITLE XI

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 81A Cooperation Council is hereby established which shall supervise

the implementation of this Agreement. It shall meet at ministerial level once a year. It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest for the purpose of attaining the objectives of this Agreement. The Cooperation Committee may also make appropriate recommendations, by agreement between the two Parties.

Article 821. The Cooperation Council shall consist of the members of the

Council of the European Union and members of the Commission of the European Communities, on the one hand, and of members of the Government of the Republic of Azerbaijan, on the other.

Article 831. The Cooperation Council shall be assisted in the performance of

its duties by a Cooperation Committee composed of representatives of the members of the Council of the European Union and of members of the Commission of the European Communities on the one hand and of representatives of the Government of the Republic of Azerbaijan on the other, normally at senior civil servant level. The office of President of the Cooperation Committee shall be held alternately by the Community and by the Republic of Azerbaijan.

In its rules of procedure the Cooperation Council shall determine the duties of the Cooperation Committee, which shall include the preparation of meetings of the Cooperation Council, and how the Committee shall function.

Article 84The Cooperation Council may decide to set up any other special

committee or body that can assist it in carrying out its duties and shall determine the composition and duties of such committees or bodies and how they shall function.

Article 85When examining any issue arising within the framework of this

Agreement in relation to a provision referring to an article of the GATT/WTO, the Cooperation Council shall take into account to the greatest extent possible the interpretation that is generally given to the article of the GATT/WTO in question by the Members of the WTO.

Article 86A Parliamentary Cooperation Committee is hereby established. It

shall be a forum for Members of the Azerbaijani Parliament and the European Parliament to meet and exchange views. It shall meet at intervals which it shall itself determine.

Article 871. The Parliamentary Cooperation Committee shall consist of members

of the European Parliament, on the one hand, and of members of the Azerbaijani Parliament, on the other.

Article 88The Parliamentary Cooperation Committee may request relevant

information regarding the implementation of this Agreement from the Cooperation Council, which shall then supply the Committee with the requested information.

The Parliamentary Cooperation Committee shall be informed of the recommendations of the Cooperation Council.

The Parliamentary Cooperation Council may make recommendations to the Cooperation Council.

Article 891. Within the scope of this Agreement, each Party undertakes to

ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights and their property rights, including those concerning intellectual, industrial and commercial property.

Article 90Nothing in this Agreement shall prevent a Party from taking any

measures: (a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests; (b) which relate to the production of, or trade in arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes; (c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security; (d) which it considers necessary to respect its international obligations and commitments in the control of dual use industrial goods and technology.

Article 911. In the fields covered by this Agreement and without prejudice to

any special provisions contained therein:

Article 921. Each of the two Parties may refer to the Cooperation Council any

dispute relating to the application or interpretation of this Agreement.

The Cooperation Council shall appoint a third conciliator.

The conciliators' recommendations shall be taken by majority vote.

Such recommendations shall not be binding upon the Parties.

Article 93The Parties agree to consult promptly through appropriate channels

at the request of either Party to discuss any matter concerning the interpretation or implementation of this Agreement and other relevant aspects of the relations between the Parties.

The provisions of this Article shall in no way affect and are without prejudice to Articles 14, 92 and 98.

Article 94Treatment granted to the Republic of Azerbaijan thereunder shall in

no case be more favourable than that granted by the Member States to each other.

Article 95For the purposes of this Agreement, the term "Parties" shall mean

the Republic of Azerbaijan on the one part, and the Community, or the Member States, or the Community and the Member States, in accordance with their respective powers, on the other part.

Article 96In so far as matters covered by this Agreement are covered by the

Energy Charter Treaty and Protocols thereto, such Treaty and Protocols shall upon entry into force apply to such matters but only to the extent that such application is provided for therein.

Article 97This Agreement is concluded for an initial period of 10 years. This

Agreement shall be automatically renewed year by year provided that neither Party gives the other Party written notice of denunciation of this Agreement six months before it expires.

Article 981. The Parties shall take any general or specific measures required

to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.

In the selection of these measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Cooperation Council if the other Party so requests.

Article 99Annexes I, II, III, IV and V together with the Protocol shall form

an integral part of this Agreement.

Article 100This Agreement shall not, until equivalent rights for individuals

and economic operators have been achieved thereunder, affect rights assured to them through existing Agreements binding one or more Member States, on the one hand, and the Republic of Azerbaijan, on the other, except in areas falling within Community competence and without prejudice to the obligations of Member States resulting from this Agreement in areas falling within their competence.

Article 101This Agreement shall apply, on the one hand, to the territories in

which the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of the Republic of Azerbaijan.

Article 102The Secretary-General of the Council of the European Union shall be

the depository of this Agreement.

Article 103

The original of this Agreement of which the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Azerbaijani languages, are equally authentic, shall be deposited with the Secretary-General of the Council of the European Union.

Article 104This Agreement will be approved by the Parties in accordance with

their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify the Secretary-General of the Council of the European Union that the procedures referred to in the first paragraph have been completed.

Upon its entry into force, and as far as relations between the Republic of Azerbaijan and the Community are concerned, this Agreement shall replace the Agreement between the European Economic Community, the European Atomic Energy Community and the Union of Soviet Socialist Republics on trade and economic and commercial cooperation signed in Brussels on 18 December 1989.

Article 105In the event that, pending the completion of the procedures

necessary for the entry into force of this Agreement, the provisions of certain parts of this Agreement are put into effect by means of an Interim Agreement between the Community and the Republic of Azerbaijan, the Parties agree that, in such circumstances, the term "date of entry into force of this Agreement"shall mean the date of entry into force of the Interim Agreement.

Hecho en Luxemburgo, el veintidės de abril de mil novecientos noventa y seis.

Udfördiget i Luxembourg, den toogtyvende april nitten hundrede og seksoghalvfems.

Geschehen zu Luxemburg am zweiundzwanzigsten April neunzehnhundertsechsundneunzig. >ISO_7>øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ õčś˙ėł ōž˙ ĮĘęłūč˙į ščūłń õżżłńśŽėłń õżõżČżĮń ąžł. >ISO_1>Done at Luxembourg on the twenty-second day of April in the year one thousand nine hundred and ninety-six.

Fait š Luxembourg, le vingt-deux avril mil neuf cent quatre-vingt-seize.

Fatto a Lussemburgo, addü ventidue aprile millenovecentonovantasei.

Gedaan te Luxemburg, de tweeūntwintigste april negentienhonderd zesennegentig.

Feito no Luxemburgo, em vinte e dois de Abril de mil novecentos e noventa e seis.

Tehty Luxemburgissa kahdentenakymmenentenōtoisena pōivōnō huhtikuuta vuonna tuhatyhdeksōnsataayhdeksōnkymmentōkuusi.

Som skedde i Luxemburg den tjugoandra april nittonhundranittiosex. >PIC FILE= "L_1999246EN.002701.TIF"> Pour le Royaume de Belgique/Voor het Koninkrijk Belgiū/FŽr das KŠnigreich Belgien >PIC FILE= "L_1999246EN.002801.TIF"> Cette signature engage łgalement la Communautł fran÷aise, la Communautł flamande, la Communautł germanophone, la Rłgion wallonne, la Rłgion flamande et la Rłgion de Bruxelles-Capitale./Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest./Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flōmische Gemeinschaft, die FranzŠsische Gemeinschaft, die Wallonische Region, die Flōmische Region und die Region BrŽssel-Hauptstadt.

For Kongeriget Danmark >PIC FILE= "L_1999246EN.002802.TIF"> FŽr die Bundesrepublik Deutschland >PIC FILE= "L_1999246EN.002803.TIF"> >ISO_7>Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń >ISO_1>> PIC FILE= "L_1999246EN.002804.TIF"> Por el Reino de Espaęa >PIC FILE= "L_1999246EN.002901.TIF"> Pour la Rłpublique fran÷aise >PIC FILE= "L_1999246EN.002902.TIF"> Thar ceann na hÉireann/For Ireland >PIC FILE= "L_1999246EN.002903.TIF"> Per la Repubblica italiana >PIC FILE= "L_1999246EN.002904.TIF"> Pour le Grand-Duchł de Luxembourg >PIC FILE= "L_1999246EN.002905.TIF"> Voor het Koninkrijk der Nederlanden >PIC FILE= "L_1999246EN.003001.TIF"> FŽr die Republik Österreich >PIC FILE= "L_1999246EN.003002.TIF"> Pela RepŪblica Portuguesa >PIC FILE= "L_1999246EN.003003.TIF"> Suomen tasavallan puolesta/FŠr Republiken Finland >PIC FILE= "L_1999246EN.003004.TIF"> FŠr Konungariket Sverige >PIC FILE= "L_1999246EN.003005.TIF"> For the United Kingdom of Great Britain and Northern Ireland >PIC FILE= "L_1999246EN.003006.TIF"> Por las Comunidades Europeas/For De Europöiske Föllesskaber/FŽr die Europōischen Gemeinschaften/>ISO_7>Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ/>ISO_1>For the European Communities/Pour les Communautłs europłennes/Per le Comunitš europee/Voor de Europese Gemeenschappen/Pelas Comunidades Europeias/Euroopan yhteisŠjen puolesta/FŠr Europeiska gemenskaperna >PIC FILE= "L_1999246EN.003101.TIF"> >PIC FILE= "L_1999246EN.003102.TIF"> >PIC FILE= "L_1999246EN.003103.TIF"> LIST OF DOCUMENTS ATTACHED >TABLE POSITION> Protocol on mutual assistance between administrative authorities in customs matters ANNEX I INDICATIVE LIST OF ADVANTAGES GRANTED BY THE REPUBLIC OF AZERBAIJAN TO THE INDEPENDENT STATES IN ACCORDANCE WITH ARTICLE 9(3) 1. No import duties are applied.

ANNEX II INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY CONVENTIONS REFERRED TO IN ARTICLE 42 1. Paragraph 2 of Article 42 concerns the following multilateral conventions:

ANNEX III FINANCIAL SERVICES REFERRED TO IN ARTICLE 26(3) A financial service is any service of a financial nature offered by a financial service provider of a Party. Financial services include the following activities:

A. All insurance and insurance-related services 1. Direct insurance (including co-insurance): (i) life; (ii) non-life.

B. Banking and other financial services (excluding insurance) 1. Acceptance of deposits and other repayable funds from the public.

The following activities are excluded from the definition of financial services: (a) activities carried out by central banks or by any other public institutions in pursuit of monetary and exchange rate policies; (b) activities conducted by central banks, government agencies or departments, or public institutions, for the account or with the guarantee of the government, except when those activities may be carried out by financial service providers in competition with such public entities; (c) activities forming part of a statutory system of social security or public retirement plans, except when those activities may be carried out by financial service providers in competition with public entities or private institutions.

ANNEX IV COMMUNITY RESERVATIONS IN ACCORDANCE WITH ARTICLE 23(2) Mining In some Member States, a concession may be required for mining and mineral rights for non-Community controlled companies.

Fishing Access to and use of the biological resources and fishing grounds situated in the maritime waters coming under the sovereignty or within the jurisdiction of Member States of the Community is restricted to fishing vessels flying the flag of a Community Member State and registered in Community territory unless otherwise provided for.

Real estate purchase In some Member States, the purchase of real estate by non-Community companies is subject to restrictions.

Audiovisual services including radio National treatment concerning production and distribution, including broadcasting and other forms of transmission to the public, may be reserved to audiovisual works meeting certain origin criteria.

Telecommunications services including mobile and satellite services Reserved services In some Member States market access concerning complementary services and infrastructure is restricted.

Professional services Services reserved to natural persons who are nationals of Member States. Under certain conditions those persons may create companies.

Agriculture In some Member States national treatment is not applicable to non-Community controlled companies which wish to undertake an agricultural enterprise. The acquisition of vineyards by non-EC controlled companies is subject to notification, or, as necessary, authorisation.

News agency services In some Member States limitations of foreign participation in publishing companies and broadcasting companies.

ANNEX V RESERVATIONS OF THE REPUBLIC OF AZERBAIJAN IN ACCORDANCE WITH ARTICLE 23(4) Utilization of subsoil and natural resources, including exploration and production, and mining A concession may be required for foreign companies for exploration and production of hydrocarbon resources as well as for mining some ores and metals.

Fishing Authorisation from the competent governmental body is necessary for fishing.

Hunting Authorisation from the competent governmental body is necessary for hunting.

Real estate (immovable property) purchase Foreign companies are not allowed to acquire plots of land. Those companies can, however, lease plots of land on a long-term basis.

Banking services Total capital of foreign-owned banks may not exceed a given percentage of the total capital in the domestic banking system.

Azerbaijan undertakes not to reduce for Azerbaijani subsidiaries and branches of Community companies, the ceiling limiting the overall share of foreign capital in the Azerbaijani banking system which applies on the date of initialling of this Agreement unless so required under the framework of IMF programmes in Azerbaijan.

At the latest within five years from the date of signature of the Agreement, Azerbaijan will consider the possibility of increasing the ceiling, taking into consideration all relevant monetary, fiscal, financial and balance-of-payments considerations and the state of the banking system of Azerbaijan.

Telecommunications and mass media services Some limitations may be applied to foreign participation.

Professional activities Some activities are closed, limited, or subject to special requirements for natural persons who are not Azerbaijani nationals.

Historical buildings and monuments Activities in this area are subject to restrictions.

The application of the reservations in this Annex can in no case result in treatment less favourable than that accorded to companies of any third country.

PROTOCOL on mutual assistance between administrative authorities in customs matters

Article 1Definitions

For the purposes of this Protocol: (a) "customs legislation" shall mean any legal or regulatory provisions applicable in the territory of the Parties governing the import, export, transit of goods and their placing under any customs procedure, including measures of prohibition, restriction and control; (b) "applicant authority", shall mean a competent administrative authority which has been appointed by a Party for this purpose and which makes a request for assistance in customs matters; (c) "requested authority", shall mean a competent administrative authority which has been appointed by a Party for this purpose and which receives a request for assistance in customs matters; (d) "personal data", shall mean all information relating to an identified or identifiable individual.

Article 2Scope

Nor shall it cover information obtained under powers exercised at the request of the judicial authority, unless those authorities so agree.

Article 3Assistance on request

Article 4Spontaneous assistance

The Parties shall provide each other, in accordance with their laws, rules and other legal instruments, with assistance without prior request if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information pertaining to:

Article 5Delivery/notification

At the request of the applicant authority, the requested authority shall in accordance with its legislation, take all necessary measures in order:

Article 6Form and substance of requests for assistance

Article 7Execution of requests

Article 8Form in which information is to be communicated

Article 9Exceptions to the obligation to provide assistance

Article 10Information exchange and confidentiality

Article 11Experts and witnesses

Article 12Assistance expenses

The Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses and to interpreters and translators who are not public service employees.

Article 13Application

They may recommend to the competent bodies amendments which they consider be made to this Protocol.

Article 14Complementary

Without prejudice to Article 10, any agreements on mutual assistance which have been concluded between one or more Member States and the Republic of Azerbaijan shall not prejudice Community provisions governing the communication between the competent services of the Commission of the European Communities and the customs authorities of the Member States of any information obtained in customs matters which could be of Community interest.

FINAL ACT The plenipotentiaries of:

THE KINGDOM OF BELGIUM, THE KINGDOM OF DENMARK, THE FEDERAL REPUBLIC OF GERMANY, THE HELLENIC REPUBLIC, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC, IRELAND, THE ITALIAN REPUBLIC, THE GRAND DUCHY OF LUXEMBOURG, THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA, THE PORTUGUESE REPUBLIC, THE REPUBLIC OF FINLAND, THE KINGDOM OF SWEDEN, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, Contracting Parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community, hereinafter referred to as "the Member States", and of