Este acuerdo establece una asociación entre las Comunidades Europeas y sus Estados miembros, y Ucrania, con el objetivo…

21998A0219(02) 21998A0219(02) Partnership and Cooperation Agreement between the European Communities and their Member States, and Ukraine - Protocol on mutual assistance between authorities in customs matters - Final Act

OF DOCUMENT: 14/06/1994 OF EFFECT: 01/03/1998; ENTRY INTO FORCE SEE ART 108.2 AND 398D0149 OF SIGNATURE: 14/06/1994; LUXEMBOURG OF END OF VALIDITY: 99/99/9999 Authentic language: THE OFFICIAL LANGUAGES ; GERMAN ; ENGLISH ;

DANISH ; SPANISH ; FRENCH ; GREEK ; ITALIAN ; DUTCH ; PORTUGUESE ;

OTHER THAN COMMUNITY LANGUAGE ; UKRAINIAN ; FINNISH ; SWEDISH Author:

EUROPEAN COMMUNITY ; EUROPEAN COAL AND STEEL COMMUNITY ; EUROPEAN ATOMIC ENERGY COMMUNITY ; THE 12 MEMBER STATES ; BELGIUM ; DENMARK ;

FEDERAL REPUBLIC OF GERMANY ; GREECE ; SPAIN ; FRANCE ; IRELAND ;

ITALY ; LUXEMBOURG ; NETHERLANDS ; PORTUGAL ; UNITED KINGDOM ;

UKRAINE Subject matter: EXTERNAL RELATIONS ; COOPERATION ; PROVISIONS UNDER

ARTICLE 235EEC ; PROVISIONS IMPLEMENTING ARTICLE 95 - ECSC

Directory code: 11401030 EUROVOC descriptor: cooperation agreement ; European Community ; EC countries ; Ukraine Legal basis:

192E054-P2................ ADOPTION 192E057-P2F3.............. ADOPTION 192E066................... ADOPTION 192E073C-P2............... ADOPTION 192E075................... ADOPTION 192E084-P2................ ADOPTION 192E099................... ADOPTION 192E100................... ADOPTION 192E113................... ADOPTION 192E235................... ADOPTION 192E228-P2F2.............. ADOPTION 192E228-P3L2.............. ADOPTION 151K095................... ADOPTION 157A101-L2................ ADOPTION Instruments cited:

185I077...................

185I081...................

185I244...................

185I249...................

185I280...................

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

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

296A0330(16)..............

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390D0233..................

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

279A0412(07)..............

294A0517(20)..............

294A1231(51)..............

393R2053..................

Amendment to:

290A0315(01)...... AMENDMENT..... PARTIAL REPLACEMENT FR 01/03/1998 Amended by:

ADOPTED-BY.... 398D0149..........

LINKED-TO..... 200A1109(02)......

PARTNERSHIP AND COOPERATION AGREEMENT between the European Communities and their Member States, and Ukraine PARTNERSHIP AND COOPERATION AGREEMENT establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, 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 PORTUGUESE REPUBLIC, 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 UKRAINE, of the other part, TAKING ACCOUNT of the wish of the Parties to establish close relations building upon the existing historical links between them, CONSIDERING the importance of developing cooperative links between the Community, its Member States and Ukraine and the common values that they share, RECOGNIZING that the Community and Ukraine 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, CONSIDERING the commitment of the Community and its Member States and of Ukraine to strengthening the political and economic freedoms which constitute the very basis of the partnership, 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 Conference on Security and Cooperation in Europe, CONSIDERING the firm commitment of the Community and its Member States and of Ukraine 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`, RECOGNIZING in that context that support of independence, sovereignty and territorial integrity of Ukraine will contribute to the safeguarding of peace and stability in the region of Central and Eastern Europe and on the European continent as a whole, CONFIRMING the attachment of the Community and its Member States and of Ukraine to the European Energy Charter and to the Declaration of the Lucerne Conference, April 1993, CONVINCED of the paramount importance of the rule of law and respect for human rights, particularly those of minorities, the establishment of a multiparty system with free and democratic elections and economic liberalization aimed at setting up a market economy, BELIEVING that there is a necessary connection between full implementation of partnership on the one hand, and continuation of the actual accomplishment of Ukraine's political, economic and legal reforms on the other hand, 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 encouraging the process of regional cooperation in the areas covered by this Agreement with the neighbouring countries in order to promote the prosperity and stability of the region, DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest, RECOGNIZING AND SUPPORTING the wish of Ukraine to establish close cooperation with European institutions, TAKING ACCOUNT of the Community's willingness to develop economic cooperation and provide technical assistance, as appropriate, for the implementation of economic reform in Ukraine, BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between Ukraine and a wider area of cooperation in Europe and neighbouring regions and Ukraine's progressive integration into the open international trading system, CONSIDERING the commitment of the Parties to liberalize trade, based on the principles contained in the General Agreement on Tariffs and Trade (GATT), as amended by the Uruguay Round, 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, WELCOMING AND RECOGNIZING the importance of Ukraine's efforts, aimed at transition of its economy away from a State trading country with a centrally planned economy into a market economy,

CONVINCED that continued progress towards a market economy will be fostered by cooperation between the Parties in the forms set out in this Agreement, 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 modernization, DESIROUS of establishing close cooperation in the area of environmental protection taking into account the interdependence existing between the Parties in this field, BEARING in mind the intention of the Parties to develop their cooperation in the field of civil science and technologies, including space research, in view of the complementarity of their activities in this area;

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 Ukraine, of the other part. The objectives of this partnership are:

TITLE I

GENERAL PRINCIPLES

Article 2Respect for the democratic principles and human rights as defined in

particular in 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 an essential element of partnership and of this Agreement.

Article 3The Parties consider that it is essential for the future prosperity

and stability of the region of the former Soviet Union 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.

In view of the above, the Parties consider that the development of their relations should take due account of Ukraine's wish to maintain cooperative relations with other Independent States.

Article 4The Parties undertake to consider, in particular when Ukraine has

further advanced in the process of economic reform, developments of the relevant Titles of this Agreement, in particular Title III and Article 49, with a view to the establishment of a free-trade area between them. The Cooperation Council may make recommendations on such developments to the Parties. Such developments shall only be put into effect by virtue of an agreement between the Parties in accordance with their respective procedures. The Parties shall consult each other in the year 1998 whether circumstances, and in particular Ukraine's advances in market-oriented economic reforms and the economic conditions prevailing there at that time, allow the beginning of negotiations on the establishment of a free-trade area.

Article 5

The Parties undertake to examine together, by mutual consent, amendments which it may be appropriate to make to any part of the Agreement in view of changes in circumstances, and in particular of the situation arising from Ukraine's accession to GATT. The first examination shall take place three years after the entry into force of the Agreement or when Ukraine becomes a Contracting Party of GATT, whichever is earlier.

TITLE II

POLITICAL DIALOGUE

Article 6A 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 Ukraine, support the political and economic changes under way in that country and contribute to the establishment of new forms of cooperation. The political dialogue:

Article 7Consultations, as appropriate, shall be held between the Parties at

the highest political level.

At ministerial level, political dialogue shall take place within the Cooperation Council established in Article 85 and on other occasions including with the Union Troika by mutual agreement.

Article 8Other procedures and mechanisms for political dialogue shall be set

up by the Parties by establishing appropriate contacts, exchanges and consultations, in particular in the following forms:

Article 9Political dialogue at parliamentary level shall take place within

the framework of the Parliamentary Cooperation Committee which shall be established under Article 90.

TITLE III

TRADE IN GOODS

Article 101. The Parties shall accord to one another most-favoured-nation

treatment according to Article I, paragraph 1 of the GATT.

Article 111. The Parties agree that the principle of freedom of transit of

goods is an essential condition of attaining the objectives of this Agreement.

In this connection each Party shall provide for 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 12

The provisions of Article 10 (1) and Article 11 (2) shall not apply, during a transitional period expiring on 31 December 1998 or the accession of Ukraine to the GATT, whichever is earlier, to advantages defined in Annex I granted by Ukraine to other Independent States as from the day preceding the date of entry into force of the Agreement.

Article 13Without 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 14Goods originating in Ukraine and the Community, respectively, shall

be imported into the Community and Ukraine respectively, free of quantitative restrictions, without prejudice to the provisions of Articles 18, 21, 22 and Annex II to this Agreement and to the provisions of Articles 77, 81, 244, 249 and 280 of the Act of Accession of Spain and Portugal to the Community.

Article 151. The products of the territory of one Party imported into the

territory of the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products.

Article 16The following Articles of the GATT shall be applicable mutatis

mutandis between the two Parties.

Article 17

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

Article 181. Where any product is being imported into the territory of one of

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

Article 19Nothing in this Title, and in Article 18 in particular shall

prejudice or affect in any way the taking, by either Party, of anti-dumping or countervailing measures in accordance with Article VI of the GATT, the Agreement on implementation of Article VI of the GATT, the Agreement on interpretation and application of Articles VI, XVI and XXIII of the GATT or related internal legislation.

In respect of anti-dumping or subsidies investigations, each Party agrees to examine submissions by the other Party and to inform the interested parties concerned of the essential facts and considerations on the basis of which a final decision is to be made.

Before definitive anti-dumping and countervailing duties are imposed, the Party shall do the utmost to bring about a constructive solution to the problem.

Article 20The 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 21This 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 5 May 1993 and applied provisionally since 1 January 1993.

Article 221. 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 14 and upon entry into force, by the provisions of an agreement on quantitative arrangements concerning exchanges of ECSC steel products.

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

Article 23Trade in nuclear materials shall be subject to the provisions of a

specific Agreement to be concluded between the European Atomic Energy Community and Ukraine.

TITLE IV

PROVISIONS AFFECTING BUSINESS AND INVESTMENT

CHAPTER I

LABOUR CONDITIONS

Article 241. 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 Ukrainian 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 25Coordination of social security

The Parties shall conclude agreements in order:

Article 26The measures to be taken in accordance with Article 25 shall not

affect any rights or obligations arising from bilateral agreements linking Ukraine and the Member States where those agreements provide for more favourable treatment of nationals of Ukraine or of the Member States.

Article 27The Cooperation Council shall examine which joint efforts can be

made to control illegal immigration taking into account the principle and practice of readmission.

Article 28The 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 29The Cooperation Council shall make recommendations for the

implementation of Articles 24, 27 and 28.

CHAPTER II

CONDITIONS AFFECTING THE ESTABLISHMENT AND OPERATION OF COMPANIES

Article 301. (a) The Community and its Member States shall grant for the

establishment of Ukrainian companies in their territories treatment no less favourable than that accorded to companies of any third country, and this in conformity with their legislation and regulations. (b) Without prejudice to the reservations listed in Annex IV, the Community and its Member States shall grant to subsidiaries of Ukrainian companies established in their territories a treatment no less favourable than that granted to any Community company, in respect of their operation, and this in conformity with their legislation and regulations. (c) The Community and its Member States shall grant to branches of Ukrainian companies established in their territories a treatment no less favourable than that accorded to branches of companies of any third country, in respect of their operation, and this in conformity with their legislation and regulations.

The treatment referred to in paragraph 1 and 2 shall benefit companies established in the Community and Ukraine respectively at the date of entry into force of this Agreement and companies established after that date once they are established.

Article 31

Such activities include, but are not limited to: (a) marketing and sales of maritime transport and related services through direct contact with customers, from quotation to invoicing, whether these services are operated or offered by the service supplier itself or by service suppliers with which the service seller has established standing business arrangements; (b) purchase and use, on their own account or on behalf of their customers (and the resale to their customers) of any transport and related services, including inward transport services by any mode, particulary inland waterways, road and rail, necessary for the supply of an integrated service; (c) preparation of documentation concerning transport documents, customs documents, or other documents related to the origin and character of the goods transported; (d) provision of business information of any means, including computerized information systems and electronic data interchange (subject to any non-discriminatory restrictions concerning telecommunications); (e) setting-up of any business arrangement, including participation in the company's stock and the appointment of personnel recruited locally (or, in the case of foreign personnel, subject to the relevant provisions of this Agreement), with any locally established shipping agency; (f) acting on behalf of the companies, organizing the call of the ship or taking over cargoes when required.

Article 32For the purposes of this Agreement:

(a) A 'Community company` or a 'Ukrainian company` respectively, shall mean a company set up in accordance with the laws of a Member State or of Ukraine respectively and having its registered office or central administration or principal place of business in the territory of the Community or Ukraine respectively. However, should the company, set up in accordance with the laws of a Member State or Ukraine respectively, have only its registered office in the territory of the Community or Ukraine respectively, the company shall be considered a Community or Ukrainian company respectively if its operations possess a real and continuous link with the economy of one of the Member States or Ukraine 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 Ukrainian companies as referred to in (a) to take up economic activities by means of the setting-up of subsidiaries and branches in Ukraine 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. (g) With regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of Ukraine, established outside the Community or Ukraine respectively, and shipping companies established outside the Community or Ukraine and controlled by nationals of a Member State or Ukrainian 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 Ukraine respectively in accordance with their respective legislations.

Article 331. 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, policyholders 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 34The 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 351. Notwithstanding the provisions of Chapter I, a Community company

or a Ukrainian company established in the territory of Ukraine 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 Ukraine and the Community respectively, employees who are nationals of Community Member States and Ukraine respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by companies, subsidiaries or branches. The residence and work permits of such employees shall only cover the period of such employment.

Article 361. 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 the Agreement.

Article 44the situations covered by such Article 44 shall be

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

CHAPTER III

CROSS-BORDER SUPPLY OF SERVICES BETWEEN THE COMMUNITY AND UKRAINE

Article 371. 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 Ukrainian companies who 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 38The Parties shall cooperate with the aim of developing a

market-oriented service sector in Ukraine.

Article 391. 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 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.

Each Party shall grant, inter alia, no less favourable treatment, than that accorded to a Party's own ships for the ships flying the flag of the other Party with regard to access to ports open to international trade, the use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

The same treatment shall also be accorded by each Party in respect of ships operated by the other Party's nationals and companies, which fly the flag of a third country, after a transitional period, but not later than 1 July 1997.

Article 40With 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 as defined in Article 99 after entry into force of this Agreement.

CHAPTER IV

GENERAL PROVISIONS

Article 411. The provisions of this Title shall be applied subject to

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

Article 42For the purpose of this Title, nothing in the 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 so as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of the Agreement. This provision does not prejudice the application of Article 41.

Article 43Companies which are controlled and exclusively owned by Ukrainian

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

Article 44Treatment granted by either Party to the other hereunder 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 45For the purposes of Chapters II, III and IV, no account shall be

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

Article 461. 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 47Without prejudice to Article 35, no provisions of Chapters II, III

and IV hereof shall be interpreted as giving the right to:

TITLE V

CURRENT PAYMENTS AND CAPITAL

Article 481. The Parties undertake to authorize in freely convertible

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

Ukraine shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. Ukraine shall inform the Cooperation Council promptly of the introduction of such measures and of any changes therein.

TITLE VI

COMPETITION, INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY PROTECTION AND LEGISLATIVE COOPERATION

Article 491. The Parties agree to work to remedy or remove through the

application of their competition laws or otherwise, restrictions on competition by enterprises or caused by State intervention in so far as they may affect trade between the Community and the Ukraine.

2.1. The Parties shall ensure that they have and enforce laws addressing restrictions on competition by enterprises within their jurisdiction.

2.2. The Parties shall refrain from granting State aid favouring certain undertakings or the production of goods other than primary products as defined in the GATT, or the provision of services, which distort or threaten to distort competition in so far as they affect trade between the Community and Ukraine.

2.3. Upon request by one Party, the other Party shall provide information on its aid schemes or on particular individual cases of State aid. No information needs to be provided which is covered by legislative requirements of the Parties on professional or commercial secrets.

2.4. In the case of State monopolies of a commercial character, the Parties declare their readiness, as from the fourth year from the date of entry into force of this Agreement, to ensure that there is no discrimination between nationals of the Parties regarding the conditions under which goods are procured or marketed.

2.5. In the case of public undertakings or undertakings to which Member States or Ukraine grant exclusive rights, the Parties declare their readiness, as from the fourth year from the date of entry into force of this Agreement, to ensure that there is neither enacted nor maintained any measure distorting trade between the Community and Ukraine to an extent contrary to the Parties' respective interests.

This provision shall not obstruct the performance, in law or fact, of the particular tasks assigned to such undertakings.

2.6. The period defined in paragraphs 2.4 and 2.5 may be extended by agreement of the Parties.

Article 50

Article 511. The Parties recognize that an important condition for

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

TITLE VII

ECONOMIC COOPERATION

Article 521. The Community and Ukraine shall establish economic cooperation

aimed at contributing to the process of economic reform and recovery and sustainable development of Ukraine. Such cooperation shall strengthen and develop economic links, to the benefit of both Parties.

Article 53Industrial cooperation

Article 54Investment promotion and protection

Article 55Public 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 56Cooperation in the field of standards and conformity

assessment 1. Cooperation between the Parties shall promote alignment with internationally agreed criteria, principles and guidelines followed in the field of quality. The required action will facilitate progress towards mutual recognition in the field of conformity assessment, as well as the improvement of Ukrainian product quality.

Article 57Mining and raw materials

Article 58Cooperation 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 59.

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

In carrying out such cooperation activities, special attention shall be devoted to the redeployment of scientists, engineers, researchers and technicians who are or have been engaged in research on and production of weapons of mass destruction.

Article 59Education and training

Article 60Agriculture and the agro-industrial sector

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

Article 61Energy

Article 62Cooperation in the civil nuclear sector

Article 63Environment

Article 64Transport

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

This cooperation shall, inter alia, aim at restructuring and modernizing transport systems and networks in Ukraine and developing and ensuring, where appropriate, compatibility of transportation systems in the context of achieving a more global transport system.

The cooperation shall include, inter alia:

Article 65Space

Bearing in mind the respective competences of the Community, its Member States and the European Space Agency the Parties shall promote, where appropriate, long-term cooperation in the areas of civil space research, development and commercial applications. The Parties will pay particular attention to initiatives making full use of the complementarity of their respective space activities.

Article 66Postal services and telecommunications

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

Article 67Financial services

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

Article 68Money laundering

Article 69Monetary policy

At the request of the Ukrainian authorities, the Community shall provide technical assistance designed to support the efforts of Ukraine towards the creation and strengthening of its own monetary system and the introduction of a new monetary unit which is to become a convertible currency and the gradual adjustment of its policies to those of the European Monetary System. This will include informal exchange of views concerning the principles and the functioning of the European Monetary System.

Article 70Regional development

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

Article 71Social cooperation

The cooperation shall include notably:

These reforms shall aim to develop in Ukraine methods of protection intrinsic to market economies and shall comprise all directions of social protection.

Article 72Tourism

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

Article 73Small and medium-sized enterprises

Article 74Information 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 Ukraine, including, where possible, mutual access to databases in full respect of intellectual property rights.

Article 75Consumer protection

The Parties will enter into close cooperation aimed at achieving compatibility between their systems of consumer protection. This cooperation shall comprise, in particular, the provision of expertise on legislative and institutional reform, the 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, training activities for administration officials and other consumer interest representatives, the development of exchanges between the consumer interest representatives, and increasing the compatibility of consumer protection policies.

Article 76Customs

Article 77Statistical 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 Ukraine.

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

The Community shall contribute to this end by rendering technical assistance to Ukraine.

Article 78Economics

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 79Drugs

Within the framework of their respective powers and competences 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.

TITLE VIII

CULTURAL COOPERATION

Article 80The 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.

TITLE IX

FINANCIAL COOPERATION

Article 81In order to achieve the objectives of this Agreement and in

accordance with Articles 82, 83 and 84 Ukraine shall benefit from temporary financial assistance from the Community by way of technical assistance in the form of grants to accelerate the economic transformation of Ukraine.

Article 82This financial assistance shall be covered within the framework of

Tacis foreseen in the Community's relevant Council Regulation.

Article 83The 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 Ukraine's needs, sectoral absorption capacities and progress with reform. The Parties shall inform the Cooperation Council thereof.

Article 84In order to permit optimum use of the resources available, the

Parties shall ensure that Community technical assistance contributions are made in close cooperation with those from other sources such as the Member States, other countries, and international organizations such as the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development as well as the United Nations Development Programme (UNDP) and the IMF.

TITLE X

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 85A Cooperation Council is hereby established which shall supervise

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

Article 861. 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 Ukraine, on the other.

Article 871. 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 Ukraine 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 Ukraine.

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 88The 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 89When examining any issue arising within the framework of this

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

Article 90A Parliamentary Cooperation Committee is hereby established. It

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

Article 911. The Parliamentary Cooperation Committee shall consist of members

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

Article 92The 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 Committee may make recommendations to the Cooperation Council.

Article 931. 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 94Nothing in the 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 on the control of dual-use industrial goods and technologies.

Article 951. In the fields covered by this Agreement and without prejudice to

any special provisions contained therein:

Article 961. 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 conciliator's recommendations shall be taken by majority vote. Such recommendations shall not be binding upon the Parties.

Article 97The 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 18, 19, 96 and 102.

Article 98Treatment granted to Ukraine hereunder shall in no case be more

favourable than that granted by the Member States to each other.

Article 99For the purposes of this Agreement, the term 'Parties` shall mean

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

Article 100In so far as matters covered by this Agreement are covered by the

European 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 101This Agreement is concluded for an initial period of 10 years. The

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

Article 1021. The Parties shall take any general or specific measures required

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

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

Article 103Annexes I, II, III, IV, V, and the Appendix thereto and the Protocol

shall form an integral part of this Agreement.

Article 104This Agreement shall not, until equivalent rights for individuals

and economic operators have been achieved hereunder, affect rights assured to them through existing Agreements binding one or more Member States, on the one hand, and Ukraine, 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 105This Agreement shall apply, on the one hand, to the territories in

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

Article 106The Secretary-General of the Council of the European Union shall be

the depositary of this Agreement.

Article 107

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

Article 108This 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 Ukraine and the Community are concerned, this Agreement shall replace the Agreement between the European Economic Community and 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 109In 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 in 1994 by means of an Interim Agreement between the Community and Ukraine, the Contracting Parties agree that, in such circumstances, the term 'date of entry into force of the Agreement` shall mean the date of entry into force of the Interim Agreement.

Hecho en Luxemburgo, el catorce de junio de mil novecientos noventa y cuatro.

Udfördiget i Luxembourg den fjortende juni nitten hundrede og fire og halvfems.

Geschehen zu Luxemburg am vierzehnten Juni neunzehnhundertvierundneunzig. øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ ōõśńĮąėėõęłĖ É˙įżč˙į ščūłń õżżłńśŽėłń õżõżČżĮń Įąėėõęń.

Done at Luxembourg on the fourteenth day of June in the year one thousand nine hundred and ninety-four.

Fait š Luxembourg, le quatorze juin mil neuf cent quatre-vingt-quatorze.

Fatto a Lussemburgo, addü quattordici giugno millenovecentonovantaquattro.

Gedaan te Luxemburg, de veertiende juni negentienhonderd vierennegentig.

Feito em Luxemburgo, em catorze de Junho de mil novecentos e noventa e quatro. >REFERENCE TO A GRAPHIC> Pour le Royaume de Belgique Voor het Koninkrijk Belgiū FŽr das KŠnigreich Belgien >REFERENCE TO A GRAPHIC> Põ Kongeriget Danmarks vegne >REFERENCE TO A GRAPHIC> FŽr die Bundesrepublik Deutschland >REFERENCE TO A GRAPHIC> Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń >REFERENCE TO A GRAPHIC> Por el Reino de Espaęa >REFERENCE TO A GRAPHIC> Pour la Rłpublique fran÷aise >REFERENCE TO A GRAPHIC> Thar cheann Na hÉireann For Ireland >REFERENCE TO A GRAPHIC> Per la Repubblica italiana >REFERENCE TO A GRAPHIC> Pour le Grand-duchł de Luxembourg >REFERENCE TO A GRAPHIC> Voor het Koninkrijk der Nederlanden >REFERENCE TO A GRAPHIC> Pela RepŪblica Portuguesa >REFERENCE TO A GRAPHIC> For the United Kingdom of Great Britain and Northern Ireland >REFERENCE TO A GRAPHIC> Por las Comunidades Europeas For de Europöiske Föllesskaber FŽr die Europōischen Gemeinschaften Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ For the European Communities Pour les Communautłs europłennes Per le Comunitš europee Voor de Europese Gemeenschappen Pelas Comunidades Europeias >REFERENCE TO A GRAPHIC> >REFERENCE TO A GRAPHIC> ANNEX I INDICATIVE LIST OF ADVANTAGES GRANTED BY UKRAINE TO THE INDEPENDENT STATES IN ACCORDANCE WITH ARTICLE 12 1. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Moldova, Turkmenistan, Russia:

No import duties are implemented.

No export duties are implemented as regards goods delivered under clearing and interstate agreements within the volumes stipulated in these agreements.

No VAT is applied on export and import.

No excise is applied on export.

All Independent States: Export quotas for deliveries of products under annual interstate trade and cooperation agreements are opened in the same way as for deliveries for State needs.

Payments could be made in roubles.

Russia: Payments could be made in roubles or karbovanets.

All Independent States: Special system of non-commercial operations, including payments resulting from these operations.

ANNEX II EXCEPTIONAL MEASURES WHICH DEROGATE FROM THE PROVISIONS OF ARTICLE 14 1. Exceptional measures which derogate from the provisions of Article 14 may be taken by Ukraine in the form of quantitative restrictions on a non-discriminatory basis.

ANNEX III INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY CONVENTIONS REFERRED TO IN ARTICLE 50 (2) 1. Paragraph 2 of Article 50 concerns the following multilateral conventions:

ANNEX IV COMMUNITY RESERVATIONS IN ACCORDANCE WITH ARTICLE 39 (1) (b) Mining In some Member States, a concession may be required for mining and mineral rights for non-EC 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 is restricted to fishing vessels flying the flag of a 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-EC 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 infrastructures is restricted.

Professional services Services reserved to natural persons nationals of Member States.

Under certain conditions those persons may create companies.

Agriculture In some Member States national treatment is not applicable to non-EC 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, authorization.

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

ANNEX V UKRAINIAN RESERVATIONS IN ACCORDANCE WITH ARTICLE 30 (2) (a) The application of the reservations in this Annex shall in no case result in treatment less favourable than that accorded to companies of any third country.

During the transitional period referred to above, no new regulations or measures shall be introduced which increase the level of discrimination applying to subsidiaries or branches of Community companies as compared to Ukrainian companies.

1.2. Insurance (as defined in the Appendix hereto) No later than five years following the date of signature of this Agreement, Ukraine shall create the necessary conditions for the establishment of Community insurance companies as well as joint insurance companies in accordance with Article 30 (2) (a).

During the transitional period referred to above, no new regulations or measures shall be introduced which increase the level of discrimination applying to subsidiaries or branches of Community companies as compared to Ukrainian companies.

Insurance activities in some sectors for foreigners are closed, limited or are subject to special requirements during the transitional period.

Fishing Access to and use of the biological resources and fishing grounds situated in Ukrainian territorial waters and in Ukraine's exclusive economic zone is subject to restrictions.

Hunting is restricted in accordance with the legislation of Ukraine.

Agriculture Acquisition and sale of agricultural land and forests.

Lease of State property The lease of State property may be required to be paid in freely convertible currency.

Telecommunications Authorization may be required for companies controlled by foreigners in respect of establishment.

Mass media companies Some limitation of foreign participation in mass-media activities.

Some professional activities Professional activities in some sectors are reserved to Ukrainian nationals or are subject to special requirements (medicine, education, legal services not including business consultancy involving relevant legal aspects).

Historial buildings and monuments Appendix to Annex V Financial services: definitions A financial service is any service of a financial nature offered by a financial service-supplier of a Party. Financial services include the following activities:

A. All insurance and insurance-related services.

B. Banking and other financial services (excluding insurance).

The following activities are excluded from the definition of financial services: (a) Activities carried out by central banks or by any other public institution 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-suppliers 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-suppliers in competition with public entities or private institutions.

PROTOCOL on mutual assistance between administrative authorities in customs matters

Article 1Definitions

For the purposes of this Protocol: (a) 'customs legislation` shall mean provisions applicable in the territories of the Parties and governing the import, export, transit of goods and their placing under any customs procedure, including measures of prohibition, restriction and control and adopted by the said Parties; (b) 'customs duties` shall mean all duties, taxes, fees or any other charges which are levied and collected in the territories of the Parties, in application of customs legislation, but not including fees and charges which are limited in amount to the approximate costs of services rendered; (c) '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; (d) '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; (e) 'contravention`, shall mean any violation of the customs legislation as well as any attempted violation of such legislation.

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 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

Article 6Form and substance of requests for assistance

Documents necessary for the execution of such requests shall accompany the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

Article 7Execution of requests

Article 8Form in which information is to be communicated

Article 9Exceptions to the obligation to provide assistance

Article 10Obligation to observe confidentiality

Article 11Use of information

Article 12Experts and witnesses

An official of a requested authority may be authorized to appear, within the limitations of the authorization granted, as expert or witness in judicial or administrative proceedings regarding the matters covered by this Protocol in the jurisdiction of another Party, and produce such objects, documents or authenticated copies thereof, as may be needed for the proceedings. The request for an appearance must indicate specifically on what matters and by virtue of what title or qualification the official will be questioned.

Article 13Assistance 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 dependent upon public services.

Article 14Implementation

Article 15Complementarity