Title
COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA
Preamble
HIS MAJESTY THE KING OF THE BELGIANS,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
and
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
of the one part, and
THE PRESIDENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA,
of the other part,
PREAMBLE
RESOLVED to strengthen economic cooperation between the Community and its Member States, on the one hand, and the Socialist Federal Republic of Yugoslavia, a non-aligned, European, Mediterranean State and a member of the group of 77 developing countries, on the other hand,
HAVING REGARD to the Final Act of the Conference on security and cooperation in Europe,
MOVED by a common will to contribute to the economic development of the Socialist Federal Republic of Yugoslavia in various sectors of mutual interest, having regard to the respective levels of development of their economics,
RESOLVED to undertake, in accordance with the Joint Declaration signed in Belgrade on 2 December 1976, the necessary efforts to strengthen, consolidate and diversify relations between the Community and the Socialist Federal Republic of Yugoslavia and the interdependence and complementarity of their economies, with a view to more harmonious development of their economic links,
RESOLVED to promote the development and diversification of economic, financial and trade cooperation in order to foster a better balance and an improvement in the structure of their trade and expand its volume and to improve the welfare of their populations,
RESOLVED to provide a sounder basis for cooperation in conformity with their international obligations,
DESIRING to contribute to the development of economic cooperation between countries having different levels of economic development, in the framework of the efforts of the international community to attain a more just and more balanced economic order,
ANXIOUS to contribute to the attainment of the objectives of the Agreements signed at Osimo on 10 November 1975 by the Italian Republic and the Socialist Federal Republic of Yugoslavia, and in particular the objectives contained in the Protocol on the free zone and in the Agreement on the promotion of economic cooperation between the two countries,
CONSCIOUS of the need to take into account the significance of the new situation created by the enlargement of the Community for the organization of more harmonious economic and trade relations between the Community and the Socialist Federal Republic of Yugoslavia, and to strengthen existing links between neighbours,
HAVE DECIDED to conclude this Agreement and to chis end have designated as their plenipotentiaciest
HIS MAJESTY THE KING OF THE BELGIANS:
Joseph TROUVEROY, Ambassador Extraordinary and Plenipotentiary to Belgrade;
HER MAJESTY THE QUEEN OF DENMARK:
Terer MEYER MICHAELSEN, Ambassador Extraordinary and Plenipotentiary to Belgrade;
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
Horst GRABERT, Ambassador Extraordinary and Plenipotentiary to Belgrade;
THE PRESIDENT OF THE FRENCH REPUBLIC:
Yves PAGNIEZ, Ambassador Extraordinary and Plenipotentiary to Belgrade;
THE PRESIDENT OF IRELAND:
Brendan DILLON, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the European Communities;
THE PRESIDENT OF THE ITALIAN REPUBLIC:
Attilio RUFFINI, Minister for Foreign Affairs;
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:
Paul HELMINGER, State Secretary for Foreign Affairs;
HER MAJESTY THE QUEEN OF THE NETHERLANDS:
D. F. van der MEI, State Secretary for Foreign Affairs;
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NOTHERN IRELAND:
R. A. FARQUHARSON, CMG, Her Britannic Majesty's Ambassador Extcaordinary and Plenipotentiary to Belgrade;
THE COUNCIL OF THE EUROPEAN COMMUNITIES;
Attilio RUFFINI,
President-in-office of the Council of the European Communities, Minister for Foreign Affairs of the Italian Republics
Wilhelm HAFERKAMP,
Vice-President of the Commission of the Europcan Communities;
THE PRESIDENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA:
Josip VRHOVEC, Federal Secretary for Foreign Affairs;
Body
Article I.
The object of this Agreement between the European Economic Community and the Socialist Federal Republic of Yugoslavia is to promote overall cooperation between the Contracting Parties with a view to contributing to the economic and social development of the Socialist Federal Republic of Yugoslavia and helping to strengthen relations between the Parties. To this end provisions and measures will be adopted and implemented in the field of economic, technical and financial cooperation, and in the trade and social fields.
Title I. ECONOMIC, TECHNICAL AND FINANCIAL COOPERATION
Article 2.
The Community and Yugoslavia shall institute cooperation with the aim of contributing to the development of Yugoslavia by efforts complementary to those made by Yugoslavia itself, and of strengthening economic links existing between Yugoslavia and the Community on as broad a basis as possible for the mutual benefit of the Parties.
Article 3.
In order to achieve the cooperation referred to in Article 2, account shall be taken, in particular, of the objectives and priorities of Yugoslavia's development plans and programmes.
Article 4.
The Contracting Parties shall encourage the proper performance of cooperation and investment contracts which are of interest to both Parties and come within the framework of the Agreement.
Article 5.
1. The purpose of cooperation in the industrial field between the Community and Yugoslavia shall be to promote in particular:
- participation by the Community in the efforts made by Yugoslavia to develop its production and economic infrastructure in order to diversify the structure of its economy, taking into account the mutual interest of the Parties,
- marker surveys and crade promotion by both Parties on their respective markets and on the markets of third countries,
- encouragement of the transfer and development of technology in Yugoslavia and the protection of patents and other industrial property by means of appropriate arrangements between economic agents and institutions within the Community and those of Yugoslavia,
- the encouragement and fostering of cooperation in long-term production between economic agents of the two Pasties in order to establish more stable and balanced links between the respective economies,
- efforts to find appropriate ways and means of removing non-tariff and non-quota barriers on both sides likely to impede access to either market,
- the organization of contacts and meetings between industrial policy makers, promoters and economic agents from Yugoslavia and the Community in order to encourage the establishment of new relations in the industrial sector in conformity with the objectives of the Agreement,
- the exchange of available information on short- and medium-term | prospects and forecasts for production, consumption and trade.
2. The Business Cooperation Centre shall be open to Yugoslav economic agents.
3. The Contracting Parties shall take steps to promote and protect each other's investments in their respective territories and in this regard shall endeavour to conclude reciprocal investment pramotion and protection agreements to their mutual advantage.
4. The aim of cooperation in the energy field between the Community and Yugoslavia shall be to encourage in particular the participation of the Contracting Parties' economic agents in research, production and processing programmes in connection with Yugoslavia's energy resources and any other projects of mutual interest.
Article 6.
1. The Community and Yugoslavia shall endeavour to continue to develop and strengthen scientific and technological cooperation under the programme of European cooperation in the field of scientific and technical research (COST).
2. In addition, the Contracting Parties are prepared to consider cooperation in certain areas of research where the Community is carrying out scientific and technical programmes.
Article 7.
1. The main aims of cooperation between the Community and Yugoslavia on agriculture shall be:
- to encourage scientific and technical cooperation on projects of mutual interest, including projects in third countries,
- in particular, to promote mutually advantageous investment projects and in that connection encourage efforts to find points of complementarity.
2. To this end the Community and Yugoslavia shall:
- step up the exchange of information on the guidelines of the respective agricultural policies, including short- and medium-term production, consumption and trade forecasts,
- facilitate and encourage the study of practical schemes for cooperation in the mutual interest of the Parties,
- encourage the improvement and broadening of contacts between economic agents,
Article 8.
1. In the transport field, the Community and Yugoslavia shall examnine the scope:
- for improving and developing internal transport services, including combined transport, notably in order to achieve complementarity, and
- for implementing specific schemes in this field in the mutual interest.
- Cooperation shall also aim to encourage the improvement and development of infrastructure, to the mutual benefit of the Parties.
To this end the Community and Yugoslavia shall exchange information on projects to build trunk roads of mutual interest and encourage cooperation in their execution.
3. In addition, the Community and Yugoslavia shall
- hold exchanges of views and information on the development of their respective transport policies,
- encourage cooperation between Adriatic ports on the basis of mutal interest,
Article 9.
The Community and Yugoslavia shall encourage exchanges of information on tourism and participation in joint studies on possible ways of developing this sector, and shall promote contacts between their relevant bodies and between tourist trade associations with a view to increasing tourist traffic.
Article 10.
With the aim of improving the quality and circumstances of life, the environment and living conditions in the Community and Yugoslavia, pooling technical know-how on environmental matters and encouraging cooperation on ecological problems, the Community and Yugoslavia shall exchange information on developments in their respective policies and shall encourage the joint implementation of specific priority schemes.
Article 11.
The Community and Yugoslavia shall encourage exchanges of information on developments in their respective fisheries policies and the implementation of projects of mutual interest with the aim of promoting the strengthening cooperation in this sector.
Article 12.
1. In the context of financial cooperation, the Community and Yugoslavia shall exchange information on and undertake joint analyses of their medium-term economic policies, balance-of-payments trends and the policies which determine them, and capital market trends in European centres, with the aim of promoting the activities of economic agents.
They shall exchange information in the Cooperation Council on general conditions capable of having an influence on capital flows earmarked for financing investment projects in various sectors of mutual interest.
2, The Community shall participate in the financing of capital projects of mutual interest which take account of tne objectives of this Agreement, under the conditions laid down in Protocol 2 on financial cooperation.
Article 13.
1. The Cooperation Council shall periodically define the general guidelines of cooperation for the purpose of attaining the aims set out in this Agreement.
2 The Cooperation Council shall be responsible for seeking ways and means of establishing cooperation in the areas defined by the Agreement.
Title II. TRADE
Article 14.
In the field of trade, the object of this Agreement is to promote trade between the Contracting Parties, taking account of their respective levels of development and of the need to ensure a better balance in their trade, with a view to improving the conditions of access for Yugoslav products to the Community market.
A.. Industrial products
Article 15.
Subject to the special provisions laid down in respect of certain products in this Tide and in Protocol 1, products originating in Yugoslavia which are not listed in Annex It to the Treaty establishing the European Economic Community nor in Annex A to this Agreement shall be imported into the Community free of quantitative restrictions and measures having equivalent effect, and of customs duties and charges having equivalent effect.
Article 16.
The arrangements provided for in Article 1 of Protocol 7 to the Act concerning the conditions of accession and the adjustments to the Treaties of 22 January 1972, on imports of motor vehicles and the motor vehicle assembly industry in Ireland, shall apply to Yugoslavia for the period specified in the said Article,
Article 17.
1. This Agreement shall not affect the provisions of the Agreement concerning wade in textiles between Yugoslavia and the Community concluded in the framework of the Arrangement regarding international trade in textiles.
2. No later than six months before the expiry of the abovementioned Agreement, the Contracting Parties shall determine the arrangements to be applied to textile products subsequently.
Article 18.
1. Customs duties on imports into the Community of the products listed below shall be abolished in stages in accordance with the timetable set out in paragraph 2:
| CCT heading No. | Description |
| No 28.04 | Hydrogen; rare gases; other non-metals: A. Hydrogen B. Rare gases C. Other non-metals: I. Oxygen III. Tellurium and arsenic IV. Phosphorus V. Other |
| 28.20 | Aluminium oxide and hydroxide; artificial corundum: A. Aluminium oxide and aluminium hydroxide |
| 73.02 | Ferro-alloys: B. Ferro-aluminium, ferro-silico-aluminium and ferro-silico-mangano-aluminium E. Ferro-chromium and ferro-silico-chromium; II. Ferro-silico-chromium G. Other |
| 81.04 | Other base metals, unwrought, and articles thereof; cermets, unwrought, and articles thereof: B. Cadmium: I. Unwrought; waste and scrap |
2.
| Timetable | Rate of reduction (%) |
| On the date of entry into force of the Agreement | 40 |
| From 1 January 1982 | 80 |
| From 1 January 1984 | 100 |
3. The basic duty to be used for calculating the reductions provided for in paragraph 2 shall be that actually applied at any given ime in respect of third countries.
4. This Article shall also apply to the products listed in Annex [V to Protocol 1 under the conditions laid down in that Protocol.
Article 19.
Customs duties on imports into the Community af the products listed in Annex B shall be those indicated for each of them in char Annex.
Article 20.
1. For certain products which it considers to be sensitive, the Community reserves the right to call upon the Cooperation Council to determine such special conditions for access to its market as may prove necessary.
The Cooperation Council shall determine the conditions in question within a period not exceeding three months from the date of notification. Failing a decision by the Cooperation Council within that period, the Community may take the necessary measures. However, such measures may not be wider in scope than those applicable, in respect of the products in question, pursuant to the provisions of Protocol 1 under the conditions laid down in that Protocol,
2. For the purposes of applying paragraph 1, the Contracting Parties shall hold periodic exchanges of information in the Cooperation Council before determining, if appropriate, special conditions for access by the products concerned to the respective markers of the Parties, The Contracting Parties shall exchange information in particular on trade flows and medium- and Iong-term production and export forecasts.
3. The Cooperation Council shalt examine periodically the measures taken under paragraph 1 to ascertain whether they are compatible with the objectives of the Agreement.
B.. Agricultural products
Article 21.
Customs duties on imports into the Community of the products originating in Yugoslavia which are listed below shall be reduced to the level indicated for each of them:
| CCT heading No. | Description | Duty applicable |
| 01.01 | Live horses, asses, mules and hinnies: A. Horses: II. For slaughter (a) | 14% |
| 08.07 | Stone fruit, fresh: C. Cherries: ex 1 From 1 May to 15 July: - Morello cherries. | 10% with a minimum amount of 3 EUA per 100 kg net weight (b) |
| ex. II From 16 July to 30 April: - Morello cherries | 12 % (b) | |
| 8.10 | Fruit (whether or not cooked), preserved by freezing, not containing added sugar: ex D. Other: - Morello cherries | 13% |
| 08.11 | Fruit provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption: ex E. Other: - Morello cherries | 6% |
| 08.12 | Fruit, dried, other than that falling within heading No 08.01, 08.02, 08.03, 08.04 or 08.05: ex G. Other: - Morello cherries | 4% |
| 12.03 | Seeds, fruit and spores, af a kind used for sowing: E. Other | 4% |
| 20.03 | Fruit preserved by freezing, containing added sugar: ex A. With a sugar content exceeding 13 % by weight: - Morello cherries | 18% + (L) |
| ex B. Other: - Morello cherries | 18% | |
| 22.09 | Spirits (other than those of heading No 22.08); liqueurs and other spirituous beverages; compound alcoholic preparations (known as "concentrated extracts") for the manufacture of beverages: C. Spirituous beverages: IV. Vodka with an alcoholic strength of 45-4 % vol or less and plum, pear or cherry spirit (excluding liqueurs), in containers holding: ex a) Two litres or less: - Plum spirit under the name "Sljivoviea" accompanied by a certificate of authenticity to be drawn up by the competent authorities | 0-3 BUA per hl per % degree of alcohol + 3 EUA per hl (c) |
Article 22.
1. The treatment set out in the following paragraphs shall be applied co wine of fresh grapes falling within subheadings 22.05 ex C 1 a) and ex C II a) of the Common Customs Tariff originating in Yugoslavia and imported into the Community provided that, subject to the special provisions provided for in this Article, the import prices of such products plus the customs duties actually levied are not less at any given time than the Community reference prices for such wine.
2. For the wine referred to in paragraph 1 the customs duty on imports into the Community shall be reduced by 30% within the limits of an annual Community tariff quota of 12 000 hectolitres.
3. The wines to which the tariff reduction provided for in paragraph 2 applies shall be specified by exchange of letters between the respective competent authorities of the Contracting Parties after it has been ascertained that Yugoslav legislation on wine covered by a designation of origin is equivalent to the relevant Community legislation.
Article 23.
1. For tobacco of the "Prilep" type falling within subheading 24.01 ex B of the Common Customs Tariff, originating in and coming from Yugoslavia, customs duties shall be suspended at the rate of 7 % ad valorem with a minimum amount of 13 ECU per 100 kilograms and a maximum of 45 ECU per 100 kilograms.
2. The import treatment specified in paragraph 1 shat be applied to tobacco of the "Prilep" type accompanied by a certificate of origin and of authenticity, within the limits of an annual Community tariff quota of 1 500 tonnes.
3. The respective competent authorities of the Contracting Parties shall adopt by exchange of fetters the provisions and procedures relating to the certificate of origin and authenticity referred to in paragraph 2.
Article 24.
1. The amount of the levy on imports into the Community of the products defined in the list appearing in Annex C may not exceed:
- 5% of the basic levy if it is ascertained that the Community marker price is more than 104 % of the guide price but not more than 106 % of that price,
-15 % of the basic levy if it is ascertained that the Community market price is more than 102 % of the guide price but not more than 104 % of that price,