Chapter 2. Competition, Intellectual Property and Public Procurement
Article 30.
1. The following are incompatible with the proper functioning of the Agreement, insofar as they may affect trade between the Community and the Palestinian Authority:
(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or the West Bank and the Gaza Strip as a whole or in a substantial part thereof;
(iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.
2. The Parties shall, as appropriate, assess any practice contrary to this Article on the basis of the criteria resulting from the application of Community competition rules.
3. The Joint Committee shall, before 31 December 2001, adopt by decision the necessary rules for the implementation of paragraphs 1 and 2. Until these rules are adopted, the provisions of the Agreement on Subsidies and Countervailing Measures shall be applied as the rules for the implementation of paragraph 1 (iii) and the relevant parts of paragraph 2.
4. As regards the implementation of paragraph 1 (iii), the Parties recognize that the Palestinian Authority may wish to use, during the period until 31 December 2001, public aid to undertakings as an instrument to tackle its specific development problems.
5. Each Party shall ensure transparency in the area of public aid, inter alia by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.
6. With regard to products referred to in Title I, Chapter 2:
- paragraph 1 (iii) does not apply,
- any practices contrary to paragraph 1 (i) shall be assessed according to the criteria established by the Community on the basis of Articles 42 and 43 of the Treaty establishing the European Community and in particular those established in Council Regulation No 26/62.
7. If the Community or the Palestinian Authority considers that a particular practice is incompatible with the terms of paragraph 1 of this Article, and:
- is not adequately dealt with under the implementing rules referred to in paragraph 3, or
- in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,
it may take appropriate measures after consultation within the Joint Committee or after 30 working days following referral for such consultation.
With reference to practices incompatible with paragraph 1 (iii) of this Article, such appropriate measures, when the GATT is applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by GATT or by any other relevant instrument negotiated under its auspices and applicable between the Parties.
8. Notwithstanding any provisions to the contrary adopted in accordance with paragraph 3, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.
Article 31.
The Member States and the Palestinian Authority shall progressively adjust, without prejudice to their commitments to the GATT where appropriate, any State monopolies of a commercial character, so as to ensure that, by 31 December 2001, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and the Palestinian people of the West Bank and Gaza Strip. The Joint Committee will be informed about the measures adopted to implement this objective.
Article 32.
With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Joint Committee shall ensure that by 31 December 2001 there is neither enacted nor maintained any measure distorting trade between the Community and the Palestinian Authority contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to those undertakings.
Article 33.
1. The Parties shall grant and ensure adequate and effective protection of intellectual, industrial and commercial property rights in accordance with the highest international standards, including effective means of enforcing such rights.
2. The implementation of this Article shall be regularly reviewed by the Parties. If problems in the area of intellectual, industrial and commercial property affecting trading conditions occur, urgent consultations shall be undertaken within the framework of the Joint Committee, at the request of either Party, with a view to reaching mutually satisfactory solutions.
Article 34.
1. The Parties agree on the objective of reciprocal and gradual liberalization of public procurement contracts.
2. The Joint Committee shall take the necessary measures to implement paragraph 1.
Title III. ECONOMIC COOPERATION AND SOCIAL DEVELOPMENT
Article 35. Objectives
1. The Parties undertake to intensify economic cooperation in their mutual interest and in accordance with the overall objectives of this Agreement.
2. The aim of cooperation shall be to support the Palestinian Authority's own efforts to achieve sustainable economic and social development.
Article 36. Scope
1. Cooperation shall focus primarily on sectors suffering from internal difficulties or affected by the overall process of liberalization of the economy of the West Bank and the Gaza Strip, and in particular by the liberalization of trade between the West Bank and the Gaza Strip and the Community.
2. Similarly, cooperation shall focus on areas likely to bring the economies of the Community and the West Bank and Gaza Strip closer together, particularly those which will generate sustainable growth and employment.
3. Cooperation shall encourage the implementation of measures designed to develop intra-regional cooperation.
4. Conservation of the environment and ecological balance shall be taken into account in the implementation of the various sectors of economic cooperation to which it is relevant.
5. The Parties may agree to extend economic cooperation to other sectors not covered by the provisions of this Title.
Article 37. Methods and Modalities
Economic cooperation shall be implemented in particular by:
(a) a regular economic dialogue between the Parties, which covers all areas of macro-economic policy and in particular budgetary policy, the balance of payments and monetary policy;
(b) regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts;
(c) transfer of advice, expertise and training;
(d) implementation of joint actions such as seminars and workshops;
(e) technical, administrative and regulatory assistance;
(f) encouragement of joint ventures;
(g) dissemination of information on cooperation.
Article 38. Industrial Cooperation
The main aim will be to:
- support the Palestinian Authority, in its efforts to modernize and diversify industry and, in particular, to create an environment favourable to private sector and industrial development,
- foster cooperation between the two Parties' economic operators,
- foster cooperation regarding industrial policy, competitiveness in an open economy and the modernization and development of industry,
- support policies to diversify production and exports and external outlets,
- promote research and development, innovation and technology transfer as far as they benefit industry,
- develop and enhance the human resources required by industry,
- facilitate access to venture and risk financing facilities for the benefit of Palestinian industry.
Article 39. Investment Promotion and Investment
The objective of cooperation will be the creation of a favourable and stable environment for investment in the West Bank and Gaza Strip. Cooperation will take the form of promotion of investment. This will entail the development of:
- harmonized and simplified administrative procedures,
- co-investment machinery, especially for small and medium-sized enterprises (SMEs) of both Parties,
- information channels and means of identifying investment opportunities,
- an environment conducive to investment in the West Bank and the Gaza Strip. Cooperation may also extend to the conception and implementation of projects demonstrating the effective acquisition and use of basic technologies, the use of standards, the development of human resources (e.g. in technologies and management) and the creation of jobs.
Article 40. Standardization and Conformity Assessment
The objective of cooperation will be to narrow the gap in standards and certification. In practical terms cooperation will take the form of:
- the promotion of the use of Community technical regulations and European standards and conformity assessment procedures,
- raising the level of conformity assessment by Palestinian certification and accreditation bodies,
- discussing mutual recognition arrangements, where appropriate,
- cooperating in the field of quality management,
- developing structures for the protection of intellectual, individual and commercial property, for standardization and for setting quality standards.
Article 41. Approximation of Laws
The objective of cooperation will be to approximate Palestinian Council legislation to that of the Community, in the areas covered by the Agreement.
Article 42. Small and Medium-sized Enterprises
The objective of cooperation will be the creation of an environment propitious to the development of SMEs on local and export markets through, inter alia:
- promotion of contacts between enterprises, in particular through recourse to the Community's networks and instruments for the promotion of industrial cooperation and partnership,
- easier access to investment finance,
- information and support services,
- enhancement of human resources with the aim of stimulating innovation and the setting-up of projects and business ventures.
Article 43. Financial Services
The objective of cooperation will be the improvement and development of financial services. It will take the form of:
- encouraging the strengthening and restructuring of the Palestinian financial sector,
- improving Palestinian accounting, supervisory and regulatory systems of banking, insurance and other parts of the financial sector.
Article 44. Agriculture and Fisheries
The objective of cooperation under this heading will mainly be the modernization and restructuring, where necessary, of agriculture and fisheries. This includes modernization of infrastructures and of equipment; the development of packaging, storage and marketing techniques; and the improvement of distribution channels. It will be geared more especially to:
- the development of stable markets,
- support for policies to diversify production and exports and external outlets,
- reduction of food dependency,
- promotion of environment-friendly agriculture and fisheries, taking particular account of the need for conservation and rational management of fisheries,
- closer relations on a voluntary basis between business groups and organizations representing trades and professions,
- technical assistance and training,
- harmonization of phytosanitary and veterinary standards,
- integrated rural development including improvement of basic services and the development of associated economic activities, and
- cooperation among rural regions and exchange of experience and know-how concerning rural development.
Article 45. Social Development
The Parties acknowledge the importance of social development which should go hand-in-hand with any economic development. They give particular priority to respect for basic social rights. The Parties will give priority to measures aimed at:
- the promotion of the equality of women and a balanced participation in the decision-making process in the economic and social sphere, notably through education and the media,
- the development of family planning and the protection of mothers and children,
- improving the social protection system,
- improving the response to health requirements,
- improving the living conditions in densely populated areas in less-favoured regions,
- promoting respect for human rights and democracy, inter alia through socio-professional dialogue.
Article 46. Transport
The objectives of cooperation will be:
- aid for restructuring and modernizing roads, ports and airports,
- improved passenger and freight services both at bilateral and regional level, and
- the establishment and enforcement of operating standards comparable to those prevailing in the Community. The priority areas of cooperation will be:
- road transport including a gradual easing of transit requirements,
- management of railways, ports and airports including navigation systems and cooperation between the relevant national bodies,
- modernization of road, rail, port and airport infrastructure on major routes of common interest,
- trans-European links and routes of regional interest, and
- upgrading of technical equipment to bring it up to Community standards for road/rail transport, container traffic and transhipment.
Article 47. Information Infrastructure and Telecommunications
Cooperation shall aim at stimulating economic and social development as well as developing an information society. The priority areas of cooperation will be:
- to facilitate collaboration in the field of telecommunications policy, network development and infrastructures for an information society,
- to develop a dialogue on issues related to the information society and to promote the exchange of information and the organization of seminars and conferences in this area,
- to promote and implement joint projects aimed at the introduction of new telecommunications services and applications related to the information society,
- to allow for information exchange on standardization, conformance testing, and certification in information and communications technologies, - interconnection and interoperability of networks and telematics services.
Article 48. Energy
The objective of cooperation on energy will be to help the West Bank and Gaza Strip acquire the technologies and infrastructures essential to its development, particularly with a view to facilitating links between its economy and that of the Community. The priority areas of cooperation will be:
- the promotion of renewable energies,
- the promotion of energy-saving and energy efficiency,
- support to operations designed to facilitate the transit of gas, oil and electricity, and applied research into data bank networks in the economic and social sectors linking Community and Palestinian operators in particular, and
- support for the modernization and development of energy networks and for their link-up to Community networks.
Article 49. Scientific and Technological Cooperation
The Parties will endeavour to promote cooperation on scientific and technological development. The aim of cooperation shall be to:
(a) encourage the establishment of permanent links between the Parties' scientific communities, notably by means of:
- providing Palestinian institutions with access to Community research and technological development programmes in accordance with Community rules governing non-Community countries' involvement in such programmes,
- Palestinian participation in networks of decentralized cooperation,
- promoting synergy in training and research;
(b) improve Palestinian research capabilities;
(c) stimulate technological innovation and the transfer of new technology and know-how;
(d) encourage all activities aimed at establishing synergy at regional level.
Article 50. Environment
The objectives of cooperation will be to prevent deterioration of the environment, to control pollution, to protect human health and to ensure the rational use of natural resources with a view to promoting sustainable development.
It will place priority on matters relating to: desertification, water resource management, salinization, the impact of agriculture on soil and water quality, the appropriate use of energy, the impact of industrial development in general and the safety of industrial plant in particular, waste management, the integrated management of sensitive areas, the quality of sea water and the control and prevention of marine pollution, and environmental education and awareness. Cooperation shall be fostered by the use of advanced tools of environmental management, environmental monitoring methods, and surveillance, including the use of environmental information systems (EIS) and environmental impact assessment (EIA).
Article 51. Tourism
Priorities for cooperation shall be:
- promoting investments in tourism,
- improving the knowledge of the tourist industry and ensuring greater consistency of policies affecting tourism,
- promoting a good seasonal spread of tourism,
- promoting cooperation between regions and cities of neighbouring countries,
- highlighting the importance of the cultural heritage for tourism,
- making tourism more competitive through support for increased professionalism ensuring the balanced and sustainable development of tourism.
Article 52. Customs Cooperation
Customs cooperation is intended to ensure that the provisions on trade are observed and to guarantee fair trading. It could give rise to the following types of cooperation:
- various forms of exchange of information and training schemes,
- simplification of controls and procedures concerning the customs clearance of goods,
- introduction of the single administrative document and a system to link up the Community's and the Palestinian Authority's transit arrangements, and
- technical assistance provided by experts from the Community.