1. The Member States agree that for the attainment of the objectives of the Common Market, full commitment of each Member State to the fulfillment of the obligations contained in this Treaty shall be required. To this end, the Member States agree that specific sanctions may be imposed by the Authority to secure fulfillment by the Member States of their obligations under this Treaty.
2. For the purposes of paragraph 1 of this Article, the Authority may impose sanctions on a Member State:
(a) which defaults in performing an obligation under this Treaty; or
(b) whose conduct, in the opinion of the Authority, is prejudicial to the existence or the attainment of the objectives of the Common Market.
3. The Authority may in any of the events stipulated in paragraph 2 of this Article, impose any one or more of the sanctions set out below:
(a) suspend the exercise by such a Member State of any of the rights and privileges of membership to the Common Market;
(b) impose a financial penalty on such Member State;
(c) suspend from the Common Market a Member State on such conditions and for such period as the Authority may consider appropriate; or
(d) expel a Member State.
4. The Authority may expel a Member State:
(a) whose rights and privileges have been suspended under sub-paragraph (a) of paragraph 3 of this Article who fails to remedy the default leading to such suspension within the period specified therefor; or
(b) which fails to pay the financial penalty imposed under sub-paragraph (b) of paragraph 3 of this Article.
5. A Member State suspended under sub-paragraph (c) of paragraph 3 of this Article and which fails to meet the conditions imposed within the period specified shall automatically cease to be a Member State of the Common Market.
6. Where a Member State is in arrears for more than two years in the payment of its contributions for reasons other than those caused by public or natural calamity or exceptional circumstance that gravely affects its economy, such Member State may, by a resolution of the Authority, be suspended from taking part in the activities of the Common Market and shall cease to enjoy the benefits provided for under this Treaty.
Article 172. Continuation of Obligations and Re-admission
1. A Member State suspended under Articles 171 (3)(a) and 171 (3)(c) of this Treaty shall continue to perform its outstanding obligations under this Treaty during the period of suspension.
2. A Member State expelled under Article 171 (3)(d) of this Treaty may apply for re-admission to the Common Market. The Authority may impose such conditions as it may consider necessary for readmission.
Chapter Thirty-Two. Implementation and Monitoring Arrangements
Article 173. Scope of Co-operation
1. The Member States agree that the implementation of the provisions of this Treaty shall be prioritized on the basis of comprehensive and measurable programmes with clear implementation targets and effective evaluation mechanisms.
2. Subject to the provisions of this Treaty, the Secretariat shall be responsible for following up and monitoring the implementation by the Member States of the provisions of this Treaty and the regulations made, directives issued, recommendations made and decisions taken and opinions delivered by the Council.
3. The Secretary-General shall, within twelve months from the entry into force of this Treaty, submit to the Council a comprehensive and measurable implementation programme with clear targets.
4. The time-table of implementation shall be divided into stages of two years each starting from the date of the entry into force of this Treaty and shall show a set of actions to be initiated and carried through concurrently.
5. The transition from one stage of implementation to the next shall be conditional upon a finding that the objectives specifically laid down in the time-table for that stage have been substantially attained and that the obligations have been fulfilled.
6. The findings shall be made at the end of the year of the time indicated in the time-table for that stage by the Council acting on reports prepared by the Secretariat and on the recommendations of the Intergovernmental Committee.
7. In the event that there is a deadlock in the decision to move on to the next stage, the current stage shall be automatically extended for a period of one year.
8. At the end of the year the Council shall make its finding acting on the reports of the Secretariat and the recommendations of the Intergovernmental Committee.
9. In the event that the Council fails to reach a decision, it shall refer the matter to the Authority for its decision which shall be final and binding on all the Member States and on the organs of the Common Market.
10. A Member State may not rely on the non-fulfillment of its own obligations to prevent a decision from being taken or to reserve its position.
Chapter Thirty-Three. Existing Institutions and Agreements
Article 174. Continuance In Force of Certain Institutions and Agreements
1. The Member States shall recognise the institutions established under the Preferential Trade Area for Eastern and Southern African States which shall continue to be regulated by the respective Charters establishing them.
2. For the purposes of paragraph 1 of this Article, the Institutions are the:
(a) Eastern and Southern African Trade and Development Bank;
(b) Clearing House;
(c) Leather and Leather Products Institute;
(d) Re-insurance Company;
(e) Metallurgical Technology Center;
(f) Council of Bureaux;
(g) Association of Commercial Banks;
(h) Centre for Commercial Arbitration;
(i) Federation of National Associations of Women in Business; and
(j) Federation of Chambers of Commerce and Industry.
3. Upon the entry into force of this Treaty, the institutions specified in paragraph 2 of this Article shall be deemed to be institutions of the Common Market and shall be designated as such.
4. The rights and obligations arising from certain agreements concluded under the provisions of the PTA Treaty shall not be affected by the provisions of this Treaty.
5. For the purposes of paragraph 4 of this Article, the agreements referred to in that paragraph are:
(a) the Agreement on Privileges and Immunities adopted by the PTA Member States in December 1984;
(b) the Customs Bond Guarantee Agreement adopted by the PTA Member States in November 1990;
(c) the Charter on Multinational Industrial Enterprises adopted by the PTA Member States in November 1990;
(d) the Protocol on Third Party Motor Vehicle Insurance Scheme; and
6. Any references in the agreements referred to in paragraph 5 of this Article to the Preferential Trade Area or any officer or authority thereof shall have the effect as if references therein were substituted by the Common Market and the corresponding officer or authority thereof.
Article 175. Relationship between the Institutions of the Common Market and the Common Market
1. Each institution of the Common Market shall, in the implementation of the provisions of its Charter take into account the objectives, policies, programmes and activities of the Common Market.
2. The Secretary-General shall maintain such continuous working relations with the institutions of the Common Market as would further the implementation of the provisions of this Treaty and shall for this purpose, make co-operation arrangements with each Institution of the Common Market.
3. Each institution of the Common Market shall, in accordance with its Charter, submit annual progress Reports to the Council on its activities and in response to which the Council may give its opinion.
Article 176. Dissolution of Certain Existing Institutions
Upon the entry into force of this Treaty the following institutions shall cease to exist:
(a) the PTA Tribunal established by Article 10 of the Treaty for the Establishment of the Preferential Trade Area for Eastern and Southern African States; and
(b) the PTA Administrative Appeals Board established by Article 2 of its Statute.
Chapter Thirty-Four. Economic Community for Eastern and Southern Africa
Article 177. Gradual Establishment of an Economic Community for Eastern and Southern Africa
1. At a date to be determined by the Authority after the entry into force of this Treaty, the Council shall propose to the Authority for its approval, measures which in addition to the provisions of this Treaty would be required to be implemented in order to assist in the eventual development and establishment of an Economic Community for Eastern and Southern Africa.
2. The functioning and development of the Common Market shall be reviewed in accordance with the provisions of this Treaty in order to establish an Economic Community for Eastern and Southern Africa.
3. The transition from the Common Market into an Economic Community for Eastern and Southern Africa shall be conditional upon a finding that the objectives of the Common Market have been substantially attained and that the obligations upon the Member States have been fulfilled.
Chapter Thirty-Five. Relations with other Organisations and Co-operating Partners
Article 178. Relations with the African Economic Community
1. The Member States agree that the final objective of the Common Market is to contribute to the implementation of the provisions of the Treaty Establishing the African Economic Community. To this end the Member States shall:
(a) negotiate, together with other regional economic communities, the Protocol on Relations between the African Economic Community and the Regional Economic Communities;
(b) implement the provisions of this Treaty with due consideration to the provisions of the Treaty Establishing the African Economic Community; and
(c) convert the Common Market or its successor, at a time to be agreed upon between the Common Market or its successor and the African Economic Community, into an organic entity of the African Economic Community.
2. The Secretary-General shall coordinate the activities of the Common Market with those of the African Economic Community and shall, from time to time, submit reports to the Council.
Article 179. Relations with other Regional Economic Communities
1. In the context of realising its regional integration objectives, the Common Market may enter into co-operation agreements with other regional communities.
2. The co-operation referred to in paragraph 1 of this Article shall be subject to prior approval by the Council.
Article 180. Relations with other Intergovernmental Organisations
1. Subject to the provisions of this Treaty, the Member States may be members of other regional or sub-regional organisations with other Member States or third countries for the purpose of strengthening co-operation among themselves.
2. The Secretary-General shall endeavour to co-ordinate the activities of the Common Market with those of the organisations referred to in paragraph 1 of this Article.
3. The Common Market shall maintain such continuous working relations with the Organisation of African Unity, the United Nations and such intergovernmental or governmental organisations as would assist the Common Market in the implementation of the provisions of this Treaty.
Article 181. Relations with Co-operating Partners
1. The Common Market shall establish such continuous and close working relations with relevant African organisations such as the United Nations Economic Commission for Africa, the African Development Bank and other intergovernmental and non-governmental organisations in Eastern and Southern Africa with a view to strengthening the institutional capacity of the Common Market and assisting it in the implementation of the provisions of this Treaty.
2. The Common Market shall accord special importance to co-operation with United Nations systems, other international organisations and bilateral and multi-lateral donor agencies whose policies and programmes are compatible with the policies, programmes and activities of the Common Market.
3. The Secretary-General shall initiate and maintain dialogue with the organisations and agencies referred to in paragraph 2 of this Article and with any other organisation whose policies and programmes are compatible with those of the Common Market in order to facilitate closer cooperation with such organisations, agencies and multi-lateral and bilateral donor agencies.
4. Meetings may be held between the Member States and governmental and non-governmental organisations and bilateral donor agencies on the Common Market policies and strategies including the implementation thereof, with a view to enhancing the participation of these organisations and agencies in the implementation and development of the Common Market.
5. Recommendations from the meetings referred to in paragraph 4 of this Article shall be put before the organs of the Common Market for consideration.
Article 182. Specialised Agencies
1. The Secretariat may, with the approval of the Council, enter into arrangements with any organisation specialised in any of the fields of activity of the Common Market under which such organisation shall implement a specific field of activity for the Common Market.
2. Arrangements made under paragraph 1 of this Article shall provide for the scope and content of the activity, administration and financing of the services concerned.
Article 183. Association with other Countries
The Member States may together negotiate with any third country with a view to the association of that country with the Common Market.
Chapter Thirty-Six. General, Transitional and Final Provisions
Article 184. Headquarters of the Common Market
The Headquarters of the Common Market shall be in Lusaka in the Republic of Zambia or in such other place as may be determined by the Authority.
Article 185. Official Languages
The official languages of the Common Market shall be English, French and Portuguese.
Article 186. Status, Privileges and Immunities
1. The Common Market shall enjoy international legal personality.
2. It shall have in the territory of each Member State:
(a) the legal capacity required for the performance of its functions under this Treaty; and
(b) power to acquire or dispose of movable and immovable property in accordance with the laws and regulations in force in each Member State.
3. The Common Market shall, in the exercise of its legal personality, be represented by the Secretary-General.
4. Subject to the provisions of the Charters establishing the institutions of the Common Market which provide that the institution, as the case may be, shall be capable of being sued, the Agreement shall be extended to the institutions of the Common Market: Provided that the Secretary-General shall make arrangements by which the administrative costs related to implementation of the provisions of the Agreement are equitably shared with the institutions of the Common Market.
5. The Secretary-General acting on behalf of the Common Market, shall conclude with the governments of the Member States in whose territory the headquarters or regional or country offices of the Common Market shall be situated, agreements relating to the legal capacity and the privileges and immunities to be recognized and granted in connection with the Common Market.
6. The Chief Executives of the institutions of the Common Market shall, acting on behalf of their institutions, conclude with the governments in whose territory the Headquarters or other offices of such institutions are situated, agreements relating to the legal capacity and privileges and immunities to be recognised and granted in connection with their respective institutions of the Common Market.
Article 187. Transitional Arrangements
1. Until Rules of Procedure and Terms of Reference of the Authority, the Council and all subordinate Organs other than the Court of the Common Market are made under the provisions of this Treaty, the Rules of Procedure and Terms of Reference of the Authority, the Council of Ministers and subordinate Organs of the Preferential Trade Area other than the PTA Tribunal shall continue to apply.
2. Until Staff Rules and Regulations and the Financial Rules of the Common Market are adopted the Staff Rules and Regulations and Financial Rules of the Preferential Trade Area shall continue to apply.
Article 188. Dissolution of the Preferential Trade Area
1. Upon the entry into force of this Treaty, hereinafter referred to as "the appointed day" the Preferential Trade Area established on the Thirtieth day of September 1982 by the Treaty for the Establishment of the Preferential Trade Area for Eastern and Southern African States, shall cease to exist.
2. The Secretary-General shall submit to the first meeting of the Council, a programme for the restructuring and re-organisation of the Secretariat including revision of job descriptions of the posts in the Secretariat to ensure that the Secretariat is more suitably structured to efficiently and adequately discharge the responsibilities entrusted upon it by or under this Treaty.
Article 189. Transfer of Assets and Liabilities
1. On the appointed day there shall be transferred to and vested in the Common Market by virtue of this Article and without further assurance, all the assets and liabilities of the Preferential Trade Area and from that day, the Common Market shall, in respect of the assets and liabilities so transferred and vested, have all the rights, and be subject to all the liabilities, which the Preferential Trade Area had, or is subject to, immediately before that day.
2. Every contract made by or on behalf of the Preferential Trade Area in writing and whether or not of such a nature that rights and liabilities thereunder can be assigned by the Preferential Trade Area, shall have effect as if made by or, on behalf of the Common Market and as if for references therein to the Preferential Trade Area or any officer or authority thereof, were substituted, in relation to anything falling to be done on or after the appointed day, references to the Common Market and to the corresponding employee or authority thereof.
3. Any proceedings by or against the Preferential Trade Area pending on the appointed day, shall be continued by or against the Common Market.
4. Reference to the Preferential Trade Area in any law or document shall on and after the appointed day be continued as references to the Common Market.
Article 190. Amendment
1. Any Member State or the Council may submit proposals for the amendment of this Treaty.
2. Any proposals for the amendment of this Treaty shall be submitted to the Secretary-General in writing who shall, within thirty days of its receipt, communicate it to the Member States.
3. The Member States which wish to comment on the proposals shall do so within ninety days from the date of the dispatch of the proposal by the Secretary-General.
4. After the expiration of the period prescribed under paragraph 3 of this Article, the Secretary-General shall submit the proposals and any comments thereon received from the Member States to the Authority through the Committee on Legal Affairs.
5. Any amendment to this Treaty shall be adopted by the Authority and shall enter into force when ratified by two-thirds of the Member States.
Article 191. Withdrawal
1. Any Member State wishing to withdraw from the Common Market shall give to the Secretary-General one year's written notice of its intention to withdraw and at the end of such year shall, if such notice is not withdrawn, cease to be a Member State of the Common Market.
2. During the period of one year referred to in paragraph 1 of this Article, a Member State wishing to withdraw from the Common Market shall nevertheless observe the provisions of this Treaty and shall remain liable for the discharge of its obligations under this Treaty.
3. The obligations assumed by the Member States under this Treaty shall, to the extent necessary survive the termination of membership of any Member State.
4. A withdrawing Member State shall be entitled to claim any property, assets or rights over any of the property and assets of the Common Market only upon the termination of the Common Market.
5. Any property and assets of the Common Market situated in the territory of a Member State whose membership has been withdrawn shall continue to be the property of the Common Market and be available to the Common Market.
Article 192. Termination of Operations
1. The Authority may, on the recommendation of the Council, terminate the operations of the Common Market.
2. The activities of the Common Market shall cease on the date appointed by the Authority to be the termination date except those activities incidental to the orderly relations, the conservation and preservation of its assets and settlement of its obligations.
3. The liability of all Member States for their share of the contributions due shall continue until all claims of creditors, including all contingent claims shall have been discharged.
4. The Council shall, before making any payments to creditors holding direct claims, make such arrangements as are necessary to ensure a pro rata distribution among holders of direct and contingent claims.
5. All creditors holding direct claims shall first be paid out of the assets of the Common Market and then out of the contributions owing.
6. No distribution of assets shall be made to the Member States on account of their contributions to the budget until all liabilities to creditors shall have been discharged or provided for and any such distribution shall be approved by the Council.
7. Any distribution of assets of the Common Market to the Member States shall be in proportion to their contributions to the budget and shall be effected at such time and under such conditions as the Council considers fair and equitable.
8. No Member State shall be entitled to receive its share in such distribution of assets until it has settled all its obligations to the Common Market.
9. Any Member State receiving assets distributed pursuant to this Article shall enjoy the same rights with respect to such assets as the Common Market enjoyed prior to their distribution.
10. A withdrawing Member State under the provisions of Article 191 of this Treaty shall, for the purposes of distribution of assets, be treated as a Member State.
Article 193. Annexes to the Treaty
The Annexes to this Treaty shall form an integral part of this Treaty.
Article 194. Entry Into Force, Ratification and Accession
1. This Treaty shall enter into force when signed by or on behalf of the High Contracting Parties and ratified by at least eleven signatory States. 2. Any State referred to in paragraph 2 of Article 1 of this Treaty may accede to this Treaty.
3. Any State referred to in paragraph 3 of Article 1 of this Treaty may accede to this Treaty on such terms and conditions as the Authority may determine.
4. This Treaty shall enter into force in relation to an acceding State on the date its instrument of accession shall be deposited.
Article 195. Depository
1. This Treaty and all Instruments of Ratification or Accession shall be deposited with the Secretary-General who shall transmit certified true copies of this Treaty to all the Member States.
2. The Secretary-General shall notify the Member States of the dates of deposit of Instruments of Ratification and Accession and shall register this Treaty with the United Nations, the Organisation of African Unity and such other organisations as the Council may determine.
Conclusion
Done at .............................in the Republic of .................................. on the....................day......................................... of ............................., in the year one thousand nine hundred and..............., in the English, French and Portuguese languages, the three texts being equally authentic.
IN FAITH WHEREOF the undersigned have placed their signatures at the end of this Treaty
The President of the Republic of Angola