6. The Parties shall pay attention to protection of the environment and the ecological balance in all their cooperation activities.
7. A regard for social development, particularly the promotion of fundamental social rights, shall motivate the steps taken by the Parties in this field.
Article 11. Cooperation In Business
1. The Parties shall promote cooperation in business with the aim of establishing a climate which favours economic development in their mutual interest.
2. Such cooperation shall focus in particular on:
(a) increasing the flow of trade, investment, industrial cooperation projects and the transfer of technology;
(b) encouraging modernization and diversification in industry;
(c) identifying barriers to industrial cooperation between the Parties and eliminating such barriers using measures which promote compliance with competition rules and foster the tailoring of those rules to the needs of the market, giving due attention to the involvement and consultation of operators;
(d) stimulating cooperation between the Parties' economic operators, especially small and medium-sized enterprises;
(e) promoting industrial innovation by developing an integrated and decentralized view of cooperation between operators in the two regions;
(f) ensuring that action seeking to produce a positive influence on cooperation between businesses in the two regions remains a coherent whole.
3. Cooperation shall essentially take the following forms:
(a) more organized contact between the Parties' operators and networks, through conferences, technical seminars, fact-finding missions, attendance at general and specialist fairs and business meetings;
(b) suitable initiatives to back cooperation between small and medium-sized enterprises, such as the promotion of joint ventures, the establishment of information networks, encouraging the opening of trade offices, the transfer of specialist knowhow, subcontracting, applied research, licensing and franchising;
(c) promoting initiatives to increase cooperation between Mercosur economic operators and European associations, with the aim of establishing dialogue between networks;
(d) training schemes, encouraging the establishment of networks and backing for research.
Article 12. Promotion of Investment
1. Within the bounds of their spheres of competence, the Parties shall promote an attractive and stable climate for greater mutually beneficial investment.
2. Such cooperation shall encompass measures including the following:
(a) promoting regular exchanges of information, the identification and dissemination of information on legislation and investment opportunities;
(b) promoting the development of a legal environment which is conducive to investment between the Parties, particularly, where applicable, through the conclusion between interested Community Member States and Mercosur Party States of bilateral agreements for the promotion and protection of investment and bilateral agreements to prevent double taxation;
(c) promoting joint ventures, particularly between small and medium-sized enterprises.
Article 13. Cooperation Regarding Energy
1. Cooperation between the Parties shall be directed towards encouraging closer relations between their economies in energy-related industries, taking into consideration the need to use energy rationally and in a manner which respects the environment.
2. Cooperation regarding energy shall essentially take the following forms:
(a) exchanges of information in all appropriate forms, particularly through joint meetings;
(b) transfers of technology;
(c) encouraging the involvement of the Parties' economic operators in joint technological development or infrastructure projects;
(d) technical training programmes;
(e) to the extent that their spheres of competence allow, dialogue regarding energy policy.
3. Where appropriate, the Parties may conclude specific agreements of common interest.
Article 14. Cooperation Regarding Transport
1. Cooperation between the Parties regarding transport shall seek to back the restructuring and modernization of transport systems and find mutually acceptable solutions for moving people and goods using all modes of transport.
2. Cooperation shall be conducted as a matter of priority by:
(a) exchanges of information on both Parties' transport policies and on matters of mutual interest;
(b) training programmes for transport system operators.
3. Within the framework of the dialogue on trade and economic matters referred to in Article 5, and considering the prospect of interregional association, both Parties shall devote attention to all aspects of international transport to ensure that they do not act as a barrier to the reciprocal expansion of trade.
Article 15. Cooperation In Science and Technology
1. The Parties shall agree to cooperate in the field of science and technology with the aim of promoting a lasting working relationship between their scientific communities and exchanging information and know-how regarding science and technology between the regions.
2. Cooperation in science and technology between the Parties shall be conducted as a matter of priority by means of:
(a) joint research projects in fields of common interest;
(b) exchanges of scientists in order to encourage joint research, prepare projects and provide high-calibre training;
(c) joint scientific conferences to exchange information, promote interaction and facilitate the selection of subjects for joint research;
(d) the publicizing of results and development of links between the public and private sectors.
3. Such cooperation shall involve the Parties' centres of higher education and research and their industries, particularly small and medium-sized enterprises.
4. The Parties shall agree between them the scope, nature and priorities of cooperation through a multiannual programme which can be adapted to suit the circumstances.
Article 16. Cooperation In Telecommunications and Information Technology
1. The Parties shall agree to establish cooperation regarding telecommunications and information technology, with the aim of fostering economic and social development, driving the information society forward and making modernization of society easier.
2. Cooperation in this field shall seek especially to:
(a) facilitate the establishment of dialogue on the various features of the information society and promote the exchange of information on standards, inspection and certification in the field of information technology and telecommunications;
(b) disseminate new telecommunications and information technology, particularly in the fields of integrated services digital networks, data transmission and the establishment of new communications and information-technology services;
(c) stimulate the launching of joint research, industrial and technological development projects in the field of new communications technologies, telematics and the information society.
Article 17. Cooperation Regarding Environmental Protection
1. With the aim of achieving sustainable development, the Parties shall encourage awareness of the issues of environmental protection and the rational use of natural resources in all fields of interregional cooperation.
2. The Parties shall agree to devote special attention to measures connected with the international dimension of environmental problems.
3. Cooperation could cover the following in particular:
(a) exchanges of information and know-how regarding matters including regulations and standards;
(b) training and education regarding the environment;
(c) technical assistance, the implementation of joint research projects and, where appropriate, institutional assistance.
Part IV. Encouraging Integration
Article 18. Objectives and Scope
1. Cooperation between the Parties shall seek to further the objectives of Mercosur's integration process and shall encompass all the areas of this Agreement.
2. To those ends, cooperation activities shall be considered in the context of the specific requests of Mercosur.
3. Cooperation should take any form which is considered appropriate, and particularly:
(a) arrangements for the exchange of information in any suitable manner, including the establishment of computer networks;
(b) training and institutional backing;
(c) studies and joint projects;
(d) technical assistance.
4. The Parties shall cooperate to ensure maximum efficiency in the use of their resources for the compilation, analysis, publication and dissemination of information, without prejudice to any steps which might be necessary to protect the confidential nature of some of that information. They shall also undertake to protect personal data in all instances in which there is provision for exchanging information via computer networks.
Part V. Interinstitutional Cooperation
Article 19. Objectives and Scope
1. The Parties shall promote closer cooperation between their respective institutions and shall particularly encourage regular contact between them.
2. Such cooperation shall have as wide a basis as possible and shall focus on:
(a) any means of fostering regular exchanges of information, including the joint development of computer networks for communication;
(b) the transfer of know-how;
(c) advice and information.
Part VI. Other Areas of Cooperation
Article 20. Cooperation Regarding Training and Education
1. Within the bounds of their spheres of competence, the Parties shall endeavour to find ways to improve education and training relating to regional integration, whether in the form of training for young people and vocational training or in the form of cooperation between universities or businesses.
2. The Parties shall pay particular attention to action which would promote the establishment of links between their specialist entities and encourage the use of technical resources and exchanges of know-how.
3. The Parties shall encourage the conclusion of agreements between training centres and the holding of meetings between bodies responsible for education and training in the field of regional integration.
Article 21. Cooperation Regarding Information, Communication and Culture
1. Within the bounds of their spheres of competence, and with the aim of broadening knowledge of their political, economic and social realities, the Parties shall agree to strengthen the cultural links between them and encourage the dissemination of information on the nature, objectives and scope of their processes of integration to promote understanding of them within their societies.
The Parties shall also agree to expand exchanges of information between them on matters of mutual interest.
2. Such cooperation should seek to promote contact between the Parties' information and communications media in forms including technical assistance.
It could include the organization of cultural activities if their regional significance justifies such action.
Article 22. Cooperation In Combating Drug-trafficking
1. In accordance with their spheres of competence, the Parties shall promote the coordination and intensification of their efforts to combat drug-trafficking and its many ramifications, including financial ramifications.
2. Such cooperation shall include the promotion of consultation and greater coordination between the Parties at regional level and, where appropriate, between the relevant regional institutions.
Article 23. Future Developments
1. The Parties may by mutual consent expand this Agreement with a view to enhancing the levels of cooperation and supplementing them, within the bounds of their respective laws, by means of agreements on specific sectors or activities.
2. With regard to the implementation of this Agreement, either of the Parties may put forward suggestions for widening the scope of cooperation, taking into account the experience gained in applying this Agreement.
Part VII. Resources for Cooperation
Article 24.
1. In order to facilitate the achievement of the aims set out in this Agreement, the Parties shall make available, within the limits of their abilities and through their own channels, the appropriate resources, including financial resources.
2. Depending on the results obtained, the Parties shall call on the European Investment Bank to step up its activities within Mercosur in accordance with its own procedures and financing criteria.
3. The provisions of this Agreement shall not affect bilateral cooperation resulting from existing cooperation agreements.
Part VIII. Institutional Framework
Article 25.
1. A Cooperation Council is hereby established, with responsibility for the implementation of this Agreement; the Cooperation Council shall meet at ministerial level periodically and whenever circumstances require.
2. The Cooperation Council shall discuss important matters arising in connection with the Agreement and any other bilateral or international issues of common interest, with the aim of fulfilling the Agreement's objectives.
3. The Cooperation Council may also make appropriate proposals, with the agreement of the Parties. In carrying out its duties, the Cooperation Council shall undertake in particular to make recommendations which contribute to the ultimate objective of interregional association.
Article 26.
1. The Cooperation Council shall be composed, on the one hand, of members of the Council of the European Union and members of the European Commission and, on the other hand, of members of the Mercosur Common Market Council and members of the Mercosur Common Market Group.
2. The Cooperation Council shall adopt its own rules of procedure.
3. The Cooperation Council shall be chaired in turn by a representative of the Community and a representative of Mercosur.
Article 27.
1. The Cooperation Council shall be assisted in the performance of its duties by a Joint Cooperation Committee which shall be composed of members of the Council of the European Union and of members of the European Commission, on the one hand, and representatives of Mercosur, on the other.
2. The Joint Committee shall generally meet once a year, on a date and with an agenda agreed in advance, alternately in Brussels and in one of the Mercosur Party States. Extraordinary meetings may be convened by mutual agreement, at the request of either Party. The office of chairman of the Joint Committee shall be held alternately by a representative of each of the Parties.
3. The Cooperation Council shall set out the operating procedures of the Joint Committee in its own rules of procedures.
4. The Cooperation Council may delegate all or part of its powers to the Joint Committee; the latter shall provide continuity between meetings of the Cooperation Council.
5. The Joint Committee shall assist the Cooperation Council in the performance of its duties. In fulfilling its functions, the Joint Committee shall in particular:
(a) stimulate trade relations in accordance with the objectives of this Agreement and in compliance with provisions of Title II;
(b) exchange views on any matter of common interest which relates to trade liberalization and cooperation, including future programmes of cooperation and the resources available for their implementation;
(c) make proposals to the Cooperation Council, with the aim of stimulating preparations for the liberalization of trade and of intensifying cooperation, while taking due account of the need for coordination between the activities proposed; and
(d) in more general terms, make proposals to the Cooperation Council which contribute to achieving the ultimate aim of EU-Mercosur interregional association.
Article 28.
The Cooperation Council may decide to set up any other body to assist it in the performance of its duties; it shall determine that body's composition, objectives and operating procedures.
Article 29.
1. In accordance with the procedures laid down in Article 5 of this Agreement, the Parties shall establish a Joint Subcommittee on Trade, which shall ensure that the trade-related objectives of this Agreement are fulfilled and shall conduct preparatory work for the subsequent liberalization of trade.
2. The Joint Subcommittee on Trade shall be composed of members of the Council of the European Union and of members of the European Commission, on the one hand, and representatives of Mercosur, on the other.
It may commission any studies or technical analyses which it deems necessary.
3. The Joint Subcommittee on Trade shall report once a year to the Joint Cooperation Committee established under Article 27 of the Agreement on the progress of its work, and shall make proposals regarding the subsequent liberalization of trade.
4. The Joint Subcommittee on Trade shall submit its rules of procedure to the Joint Committee for approval.
Article 30. Consultation
Within the bounds of their spheres of competence, the Parties shall undertake to hold consultations on any issue referred to in this Agreement.
The procedure for the consultations referred to in the preceding subparagraph shall be laid down in the rules of procedure of the Joint Committee.
Part IX. Final Provisions
Article 31. Other Agreements
Without prejudice to the provisions of the Treaties establishing the European Community and Mercosur, neither this Agreement nor any action taken under it shall in any way affect the powers of the Member States of the European Community or the Mercosur Party States to undertake bilateral activities within their spheres of competence or where appropriate to conclude new agreements.
Article 32. Definition of the Parties
For the purposes of this Agreement, the term 'the Parties' shall mean, on the one hand, the Community or its Member States or the Community and its Member States, in accordance with their respective spheres of competence, as deriving from the Treaty establishing the European Community and, on the other hand, Mercosur or its Party States, in accordance with the Treaty establishing the Southern Common Market.
Article 33. Territorial Application
This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territories in which the Treaty establishing the Southern Common Market is applied and under the conditions laid down in that Treaty and its additional protocols.
Article 34. Duration and Entry Into Force
1. This Agreement shall be valid indefinitely.
2. The Parties shall determine the suitability, timing and conditions of the start of negotiations for Interregional Association in accordance with their own procedures and in the light of the work carried out and the proposals made within the institutional framework of this Agreement.
3. This Agreement shall enter into force on the first day of the month following that in which the Parties notify each other of the completion of the procedures necessary for this purpose.
4. Notification shall be sent to the Council of the European Union and the Mercosur Common Market Group.
5. The Secretary-General of the Council shall be the depositary of this Agreement for the Community and the Government of the Republic of Paraguay shall be the depositary for Mercosur.
Article 35. Fulfilment of Obligations
1. The Parties shall adopt any general or specific measure required for them to fulfil their obligations under this Agreement and shall ensure that they attain the objectives laid down in that Agreement.
If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before doing so, except in cases of special urgency, it shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Joint Committee and shall be the subject of consultations within that Committee if the other Party so requests.
2. The Parties agree that the term 'cases of special urgency' in paragraph 1 of this Article shall mean a case of material breach of the Agreement by one of the Parties. A material breach of the Agreement shall consist in:
(a) repudiation of the Agreement not sanctioned by the general rules of international law, or
(b) violation of the essential elements of the Agreement, as referred to in Article 1.
3. The Parties agree that the 'appropriate measures' referred to in this Article are measures taken in accordance with international law. If a Party takes a measure in a case of special urgency as provided for under this Article, the other Party may ask that an urgent meeting be called to bring both Parties together within days.
Article 36. Authentic Texts
This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of these texts being equally authentic.