Title
EUROPE AGREEMENT establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part
Preamble
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 ECONOMIC 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 ECONOMIC COMMUNITY, the EUROPEAN ATOMIC ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community',
of the one part,
and THE REPUBLIC OF BULGARIA, hereinafter referred to as 'Bulgaria',
of the other part,
CONSIDERING the importance of the traditional links existing between the Community, its Member States and Bulgaria and the common values that they share,
RECOGNIZING that the Community and Bulgaria wish to strengthen these links and to establish close and long lasting relations, based on mutual interest and reciprocity, which would allow Bulgaria to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Agreement on Trade and Commercial and Economic Cooperation, signed on 8 May 1990,
CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in Bulgaria,
CONSIDERING the commitment of the Community and its Member States and of Bulgaria to strengthening the political and economic freedoms which constitute the very basis of the association,
RECOGNIZING the fundamental character of the democratic changes in Bulgaria, taking place in a peaceful manner and aimed at building a new political and economic system, based on the rule of law and human rights, political pluralism, and a pluralist multi-party system involving free and democratic elections and the creation of the legislative and economic conditions, necessary for the development of a market economy, as well as the need to continue and complete that process with the assistance of the Community,
CONSIDERING the firm commitment of the Community and its Member States and of Bulgaria to the rule of law and human rights, including those of persons belonging to minorities, and to the full implementation of all other principles and provisons contained in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the concluding documents of Vienna and Madrid, the Charter of Paris for a new Europe, as well as to the principles and provisions of the European Energy Charter,
WILLING to promote improved contacts among their citizens as well as the free flow of information and ideas, as agreed by the Parties in the framework of the CSCE,
CONSCIOUS of the importance of this Agreement to establishing and enhancing in Europe a system of stability based on cooperation, with the Community as one of the cornerstones,
BELIEVING that a link should be made between full implementation of association, on the one hand, and continuation of the actual accomplishment of Bulgaria's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the actual rapprochement between the Parties' systems, notably in the light of the conclusions of the CSCE Bonn Conference,
DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest to enhance and complete the association,
TAKING ACCOUNT of the Community's willingness to provide decisive support for the completion of the transition towards a market economy in Bulgaria and to help Bulgaria cope with the economic and social consequences of structural readjustment,
TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a global and multiannual basis,
CONSIDERING the commitment of the Community and Bulgaria to free trade, and in particular in respect of the General Agreement on Tariffs and Trade principles,
BEARING in mind the economic and social disparities between the Community and Bulgaria and thus recognizing that the objectives of this association should be reached through appropriate provisions of this Agreement,
CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernization of the Bulgarian economy,
DESIROUS of establishing cultural cooperation and developing exchanges of information,
RECOGNIZING the fact that Bulgaria's ultimate objective is to become a member of the Community, and that this association, in the view of the Parties, will help Bulgaria to achieve this objective,
HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries,
THE KINGDOM OF BELGIUM:
Robert URBAIN,
Minister for Foreign Trade and European Affairs;
THE KINGDOM OF DENMARK:
Jørgen ØSTRØM MØLLER,
State Secretary for Foreign Affairs;
THE FEDERAL REPUBLIC OF GERMANY:
Klaus KINKEL,
Federal Minister for Foreign Affairs;
THE HELLENIC REPUBLIC:
Michel PAPACONSTANTINOU,
Minister for Foreign Affairs;
THE KINGDOM OF SPAIN:
Javier SOLANA,
Minister for Foreign Affairs;
THE FRENCH REPUBLIC:
Elisabeth GUIGOU,
Minister responsible for European Affairs;
IRELAND:
Dick SPRING,
Minister for Foreign Affairs;
THE ITALIAN REPUBLIC:
Valdo SPINI,
State Secretary for Foreign Affairs;
THE GRAND DUCHY OF LUXEMBOURG:
Jacques POOS,
Minister for Foreign Affairs;
THE KINGDOM OF THE NETHERLANDS:
P. KOOIJMANS,
Minister for Foreign Affairs;
THE PORTUGUESE REPUBLIC:
J. M. DURAO BARROSO,
Minister for Foreign Affairs;
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
Douglas HURD,
Secretary of State for Foreign and Commonwealth Affairs;
THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY:
Niels HELVEG PETERSEN,
Minister for Foreign Affairs of the Kingdom of Denmark, President-in-Office of the Council of the European Communities;
Sir Leon BRITTAN,
Member of the Commission of the European Communities;
Hans VAN DEN BROEK,
Member of the Commission of the European Communities;
THE REPUBLIC OF BULGARIA:
Luben BEROV,
Prime Minister and Minister for Foreign Affairs;
Who, having exchanged their full powers, formed in good and due form,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An association is hereby established between the Community and its Member States on the one part, and Bulgaria on the other part.
2. The objectives of this association are:
- to provide an appropriate framework for the political dialogue between the Parties allowing the development of close political relations,
- to establish gradually a free trade area between the Community and Bulgaria covering substantially all trade between them,
- to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster the dynamic economic development and prosperity in Bulgaria,
- to provide a basis for economic, financial, cultural and social cooperation, as well as for the Community's assistance to Bulgaria,
- to support Bulgaria's efforts to develop its economy and to complete the transition into a market economy,
- to provide an appropriate framework for the gradual integration of Bulgaria into the Community. To this end new rules, policies and practices will be established in compliance with market mechanisms, and Bulgaria shall work towards fulfilling the necessary requirements in this respect,
- to set up institutions suitable to make the association effective.
Title I. POLITICAL DIALOGUE
Article 2.
A 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 Bulgaria, support the political and economic changes underway in that country and contribute to the establishment of new links of solidarity and new forms of cooperation. The political dialogue and cooperation, based on shared values and aspirations:
- will facilitate Bulgaria's full integration into the community of democratic nations and progressive rapprochement with the Community. The economic rapprochement provided for in this Agreement will lead to greater political convergence,
- will bring about better mutual understanding and an increasing convergence of positions on international issues, and in particular on those matters likely to have substantial effects on one or the other Party,
- will enable each Party to consider the position and interests of the other in their respective decision-making process,
- will contribute to the rapprochement of the Parties' psotions on security issues and will enhance security and stability in the whole of Europe.
Article 3.
1. Meetings as appropriate shall take place between the President of the European Council and the President of the Commission of the European Communities on one side and the President of the Republic of Bulgaria on the other.
2. At ministerial level, political dialogue shall take place within the Association Council. This shall have general responsibility for all matters which the Parties might wish to put to it.
Article 4.
Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms:
- meetings at senior official level (political directors) between officials of Bulgaria on the one hand, and the Presidency of the Council of the European Communities and the Commission of the European Communities, on the other,
- taking full advantage of all diplomatic channels between the Parties, including appropriate contacts in the bilateral as well as multilateral field, such as the UN, CSCE meetings and other multilateral fora,
- including Bulgaria in the group of countries receiving regular information on the issues dealt with by the European Political Cooperation as well as exchanging information with a view to achieving the objectives set out in Article 2,
- any other means which would contribute to consolidating, developing and stepping up this dialogue.
Article 5.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Association Committee.
Title II. GENERAL PRINCIPLES
Article 6.
Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a New Europe inspires the domestic and external policies of the Parties and constitutes an essential element of the present association.
Article 7.
1. The association includes a transitional period of a maximum duration of 10 years divided into two successive stages, each in principle lasting five years. The first stage shall begin when the Agreement enters into force.
2. The Association Council, bearing in mind that the principles of the market economy are essential to the present association, shall proceed regularly to examine the application of the Agreement and Bulgaria's accomplishment in the process leading to a market economy system on the basis of the principles established in the preamble.
3. During the course of the 12 months preceding the expiration of the first stage, the Association Council shall meet to decide the transition to the second stage as well as on any possible changes to be brought about as regards measures concerning the implementation of the dispositions governing the second stage. In doing this, it will take into account the results of the examination mentioned in paragraph 2.
4. The two states envisaged under 1, 2 and 3 do not apply to Title III.
Title III. FREE MOVEMENT OF GOODS
Article 8.
1. The Community and Bulgaria shall gradually establish a free trade area in a transitional period lasting a maximum of 10 years starting from the entry into force of this Agreement, in accordance with the provisons of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (GATT).
2. The combined nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Bulgarian Customs Tariff shall be applied to the classification of goods for imports into Bulgaria.
3. For each product, the basic duty to which the successive reductions set out in this Agreement are to be applied shall be that actually applied erga omnes on the day preceding the entry into force of the Agreement.
4. If, after the entry into force of the Agreement, any tariff reduction is applied on an erga omnes basis, in particular, reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied.
5. The Community and Bulgaria shall communicate to each other their respective basic duties.
Chapter I. Industrial Products
Article 9.
1. The provisions of this chapter shall apply to products originating in the Community and in Bulgaria listed in Chapters 25 to 97 of the combined nomenclature and of the Bulgarian Customs Tariff with the exception of the products listed in Annex I.
2. The provisions of Articles 10 to 14 included do not apply to products mentioned in Articles 16 and 17.
Article 10.
1. Customs duties on imports applicable in the Community to products originating in Bulgaria other than those listed in Annexes IIa, IIb and III shall be abolished on the entry into force of the Agreement.
2. Customs duties on imports applicable in the Community to products originating in Bulgaria which are listed in Annex IIa shall be progressively abolished in accordance with the following timetable:
- on the date of entry into force of the Agreement, each duty shall be reduced to 50 % of the basic duty,
- one year after the date of entry into force of the Agreement, the remaining duties shall be eliminated.
Customs duties on imports applicable in the Community to products originating in Bulgaria listed in Annex IIb shall be progressively reduced, from the date of entry into force of the Agreement, by annual reductions of 20 % of the basic duty so as to arrive at total abolition by the end of the fourth year after the date of entry into force of the Agreement.
3. The products of Bulgarian origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditons defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned at the end of the fifth year at the latest.
At the same time, the customs duties on imports to be applied to import quantities when the quotas have been exhausted or when the levying of customs duties has been reintroduced with respect to products covered by a tariff ceiling, shall be progressively dismantled from the entry into force of the Agreement by annual reductions of 15 % of the basic duty. By the end of the fifth year, remaining duties shall be abolished.
4. Quantitative restrictions on imports to the Community and measures having an equivalent effect shall be abolished on the date of entry into force of the Agreement with regard to the products originating in Bulgaria.
Article 11.
1. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of the Agreement.
2. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable:
- one year after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty,
- three years after the entry into force of the Agreement, each duty shall be reduced to 40 % of the basic duty,
- five years after the entry into force of the Agreement, the remaining duties shall be eliminated.
3. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex VI shall be progressively reduced in accordance with the following timetable: