Title
Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People's Democratic Republic of Algeria, 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 AUSTRIAN REPUBLIC,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the European Community,
Hereinafter referred to as the ‘Member States', and
THE EUROPEAN COMMUNITY, hereinafter referred to as the Community, of the one part, and
THE PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA hereinafter referred to as ‘Algeria',
Of the other part,
CONSIDERING the proximity and interdependence which historic links and common values have established between the Community, its Member States and Algeria,
CONSIDERING that the Community, its Member States and Algeria wish to strengthen those links and to establish lasting relations, based on reciprocity, solidarity, partnership and co-development,
CONSIDERING the importance which the Parties attach to the principles of the United Nations Charter, particularly the observance of human rights and political and economic freedom, which form the very basis of the Association,
CONSCIOUS, on the one hand, of the importance of relations in an overall Euro-Mediterranean context and, on the other, of the objective of integration between the countries of the Maghreb,
DESIROUS of fully achieving the objectives of the association between them by implementing the relevant provisions of this Agreement to bring the levels of economic and social development of the Community and Algeria closer to each other,
CONSCIOUS of the importance of this Agreement, which is based on reciprocity of interests, mutual concessions, cooperation and dialogue,
DESIROUS of establishing and developing political consultation on bilateral and international issues of mutual interest;
CONSCIOUS that terrorism and international organised crime represent a threat to the fulfilment of the objectives of the partnership and to stability in the region,
TAKING ACCOUNT of the Community's willingness to provide Algeria with decisive support in its endeavours to bring about economic reform and adjustment and social development,
CONSIDERING the commitment of both the Community and Algeria to free trade, in compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade (GATT) in its post-Uruguay Round form,
DESIROUS of establishing cooperation sustained by regular dialogue on economic, scientific, technological, social, cultural, audio-visual and environmental issues in order to achieve better mutual understanding,
CONFIRMING that the provisions of this Agreement that fall within the scope of Part III, Title IV of the Treaty establishing the European Community bind the United Kingdom and Ireland as separate Contracting Parties, and not as Member States of the Community, until the United Kingdom or Ireland (as the case may be) notifies Algeria that it has become bound as part of the Community in accordance with the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community. The same applies to Denmark, in accordance with the Protocol on the position of Denmark,
CONVINCED that this Agreement provides a suitable framework for the development of a partnership based on private initiative, and that it will create a climate conducive to economic, trade and investment relations between the Parties, a consideration which offers vital backing for economic restructuring and technological modernisation,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An Association is hereby established between the Community and its Member States of the one part and Algeria of the other part.
2. The aims of this Agreement are to:
- Provide an appropriate framework for political dialogue between the Parties, allowing the development of close relations and cooperation in all areas they consider relevant to such dialogue,
- Promote trade and the expansion of harmonious economic and social relations between the Parties and establish the conditions for the gradual liberalisation of trade in goods, services and capital,
- Facilitate human exchanges, particularly in the context of administrative procedures,
- Encourage integration of the Maghreb countries by promoting trade and cooperation within the Maghreb group and between it and the Community and its Member States,
- Promote economic, social, cultural and financial cooperation.
Article 2.
Respect for the democratic principles and fundamental human rights established by the Universal Declaration of Human Rights shall inspire the domestic and international policies of the Parties and shall constitute an essential element of this Agreement.
Article TITLE I. Political Dialogue
Article 3.
1. A regular political and security dialogue shall be established between the Parties. It shall help build lasting links of solidarity between the partners which will contribute to the prosperity, stability and security of the Mediterranean region and bring about a climate of understanding and tolerance between cultures.
2. Political dialogue and cooperation are intended in particular to:
(a) Facilitate rapprochement between the Parties through the development of better mutual understanding and regular coordination on international issues of common interest;
(b) Enable each party to consider the position and interests of the other;
(c) Contribute to consolidating security and stability in the Euro-Mediterranean region;
(d) Help develop joint initiatives.
Article 4.
Political dialogue shall cover all issues of common interest to the Parties, in particular the conditions required to ensure peace, security and regional development through support for cooperation.
Article 5.
Political dialogue shall be established at regular intervals and whenever necessary, notably:
(a) At ministerial level, mainly in the framework of the Association Council;
(b) At the level of senior officials representing Algeria, on the one hand, and the Council Presidency and the Commission on the other;
(c) Taking full advantage of all diplomatic channels including regular briefings, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;
(d) Where appropriate, by any other means which would contribute to consolidating dialogue and increasing its effectiveness.
Article TITLE II . FREE MOVEMENT OF GOODS
Article 6.
The Community and Algeria shall gradually establish a free-trade area over a transitional period lasting a maximum of twelve years starting from the date of the entry into force of this Agreement in accordance with the following provisions and in conformity with those of the 1994 General Agreement on Tariffs and Trade and the other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as "GATT".
Chapter 1. Industrial Products
Article 7 .
The provisions of this Chapter shall apply to products originating in the Community and Algeria falling within Chapters 25 to 97 of the Combined Nomenclature and of the Algerian Customs tariff with the exception of the products listed in Annex 1.
Article 8 .
Products originating in Algeria shall be imported into the Community free of customs duties and charges having equivalent effect.
Article 9.
1. Customs duties and charges having equivalent effect applicable on import into Algeria of products originating in the Community listed in Annex 2 shall be abolished upon the entry into force of this Agreement.
2. Customs duties and charges having equivalent effect applicable on import into Algeria of the products originating in the Community listed in Annex 3 shall be progressively abolished in accordance with the following timetable:
– two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80% of the basic duty;
– three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70% of the basic duty;
– four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60% of the basic duty;
– five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40% of the basic duty;
– six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20% of the basic duty;
– seven years after the date of entry into force of this Agreement the remaining duties shall be abolished.
3. Customs duties and charges having equivalent effect applicable on import into Algeria of the products originating in the Community other than those listed in Annexes 2 and 3 shall be progressively abolished in accordance with the following timetable:
– two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90% of the basic duty;
– three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80% of the basic duty;
– four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70% of the basic duty;
– five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60% of the basic duty;
– six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50% of the basic duty;
– seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40% of the basic duty;
– eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30% of the basic duty;
– nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20% of the basic duty;
– ten years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10% of the basic duty;
– eleven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 5% of the basic duty;
– twelve years after the date of entry into force of this Agreement the remaining duties shall be abolished.
4. In the event of serious difficulties for a given product, the timetables established in accordance with paragraphs 2 and 3 may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period referred to in Article 6. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Algeria may suspend the timetable provisionally for a period which may not exceed one year.
5. For each product concerned, the basic duty to be gradually reduced as provided in paragraphs 2 and 3 shall be the rates referred to in Article 18.
Article 10 .
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 11.
1. Exceptional measures of limited duration which derogate from the provisions of Article 9 may be taken by Algeria in the form of an increase or reintroduction of customs duties.
These measures may concern only infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce major social problems.
Customs duties on imports applicable in Algeria to products originating in the Community introduced by these measures may not exceed 25% ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 15% of total imports of industrial products from the Community during the last year for which statistics are available.
These measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period referred to in Article 6. No such measures may be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having equivalent effect concerning that product.
Algeria shall inform the Association Committee of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held on such measures and the sectors to which they apply before they are implemented. When adopting such measures, Algeria shall provide the Association Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing-out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule.
2. By way of derogation from the fourth subparagraph of paragraph 1, the Association Committee may exceptionally, in order to take account of the difficulties involved in setting up a new industry, authorise Algeria to maintain the measures already taken pursuant to paragraph 1 for a maximum period of three years beyond the transitional period referred to in Article 6.
Chapter 2 . AGRICULTURAL, FISHERY AND PROCESSED AGRICULTURAL PRODUCTS
Article 12.
The provisions of this Chapter shall apply to products originating in the Community and Algeria falling within Chapters 1 to 24 of the Combined Nomenclature and of the Algerian Customs tariff and to the products listed in Annex 1.
Article 13.
The Community and Algeria shall progressively establish a greater liberalisation of their reciprocal trade in agricultural, fisheries and processed agricultural products of interest to both Parties.
Article 14.
1. Agricultural products originating in Algeria listed in Protocol No 1 on importation into the Community shall be subject to the arrangements set out in that Protocol.
2. Agricultural products originating in the Community listed in Protocol No 2 on importation into Algeria shall be subject to the arrangements set out in that Protocol.
3. Fishery products originating in Algeria listed in Protocol No 3 on importation into the Community shall be subject to the arrangements set out in that Protocol.
4. Fishery products originating in the Community listed in Protocol No 4 on importation into Algeria shall be subject to the arrangements set out in that Protocol.
5. Trade in processed agricultural products falling under this Chapter shall be subject to the arrangements set out in Protocol No 5.
Article 15.
1. Five years after the entry into force of this Agreement, the Community and Algeria shall assess the situation in order to determine the liberalisation measures to be applied by the Community and Algeria six years after the entry into force of the Agreement, in accordance with the objective set out in Article 13.
2. Without prejudice to the provisions of paragraph 1 and taking account of the patterns of trade in agricultural products, fishery products and processed agricultural products between the Parties and the particular sensitivity of such products, the Community and Algeria shall examine in the Association Council, product by product and on a reciprocal basis, the possibilities of granting each other further concessions.
Article 16.
1. Should specific rules be introduced as a result of implementation of their agricultural policies or modification of their existing rules, or should the provisions on the implementation of their agricultural policies be modified or developed, the Community and Algeria may modify the arrangements laid down in this Agreement in respect of the products concerned.
2. The Party carrying out such modification shall inform the Association Committee thereof. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party.
3. If the Community or Algeria, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement.
4. Any modification of the arrangements made by this Agreement shall be the subject, at the request of the other Contracting Party, of consultations within the Association Council.
Chapter 3. Common Provisions
Article 17.
1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced in trade between the Community and Algeria, nor shall those already applied upon entry into force of this Agreement be increased.
2. No new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced in trade between the Community and Algeria.
3. Quantitative restrictions on imports or exports and measures having equivalent effect in trade between Algeria and the Community shall be abolished upon the entry into force of this Agreement.
4. Algeria shall abolish by 1 January 2006 at the latest the provisional additional duty applied to the products listed in Annex 4. That duty shall be reduced on a linear basis by 12 points per year starting on 1 January 2002.
If Algeria's commitments in respect of its accession to the WTO provide for a shorter period for the abolition of the provisional additional duty, that shorter period shall be applicable.
Article 18.
1. For each product concerned, the basic duty to be reduced as provided in Article 9(2) and (3) and in Article 14 shall be the rate actually applied vis-à-vis the Community on 1 January 2002.
2. In the event of Algerian accession to the WTO, the applicable rates for imports between the Parties shall be the WTO bound rate or lower applied rate enforced as of accession. If, after accession to the WTO, a tariff reduction is applied on an erga omnes basis, the reduced rate shall apply.
3. The provisions of paragraph 2 shall apply to any tariff reduction applied erga omnes introduced after the date on which the negotiations are concluded.
4. The Parties shall communicate to each other their respective basic rates applied on 1 January 2002.
Article 19.
Products originating in Algeria shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves.
The provisions of this Agreement shall apply without prejudice to the provisions of Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands (OJ L 171, 29.6.1991, p. 1), as last amended by Regulation (EC) No 1105/2001 (OJ L 151, 7.6.2001, p. 1).
Article 20.
1. Both Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them directly or indirectly.
Article 21.
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade insofar as they do not have the effect of altering the trade arrangements provided for in this Agreement.
2. Consultation between the Parties shall take place within the Association Committee concerning agreements establishing customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies with third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account is taken of the mutual interests of the Community and Algeria stated in this Agreement.
Article 22.
If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on the Implementation of Article VI of GATT 1994, related internal legislation and the procedures laid down in Article 26.
Article 23.
The WTO Agreement on Subsidies and Countervailing Measures shall be applicable between the Parties.
If one of the Parties finds that subsidies are being used in trade with the other Party within the meaning of Articles VI and XVI GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on Subsidies and Countervailing Measures and its own legislation on the matter.