Article 33.
With a view to assuring a coordinated development of transport between the Parties, adapted to their commercial needs, the conditions of mutual market access and provision of services in transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with by specific agreements where appropriate negotiated between the Parties after entry into force of this Agreement.
Chapter IV. General Provisions
Article 34.
1. The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.
2. They shall not apply to activities which in the territory of either Party are connected, even occasionally, with the exercise of official authority.
Article 35.
For the purpose of this Title, nothing in this Agreement shall prevent the Parties from applying their laws and regulations regarding entry and stay, work, labour conditions and establishment of natural persons and supply of services, provided that, in so doing, they do not apply them in a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement. The above provision does not prejudice the application of Article 34.
Article 36.
Companies which are controlled and exclusively owned by Armenian companies and Community companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV.
Article 37.
Treatment granted by either Party to the other thereunder shall, as from the day one month prior to the date of entry into force of the relevant obligations of the General Agreement on Trade in Services (GATS), in respect of sectors or measures covered by the GATS, in no case be more favourable than that accorded by such first Party under the provisions of GATS and this in respect of each service sector, sub-sector and mode of supply.
Article 38.
For the purposes of Chapters II, III and IV, no account shall be taken of treatment accorded by the Community, its Member States or the Republic of Armenia pursuant to commitments entered into in economic integration agreements in accordance with the principles of Article V of GATS.
Article 39.
1. The most-favoured-nation treatment granted in accordance with the provisions of this Title shall not apply to the tax advantages which the Parties are providing or will provide in the future on the basis of agreements to avoid double taxation, or other tax arrangements.
2. Nothing in this Title shall be construed to prevent the adoption or enforcement by the Parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation and other tax arrangements, or domestic fiscal legislation.
3. Nothing in this Title shall be construed to prevent Member States or the Republic of Armenia from distinguishing, in the application of the relevant provisions of their fiscal legislation, between tax payers who are not in identical situations, in particular as regards their place of residence.
Article 40.
Without prejudice to Article 28, no provision of Chapters II, III and IV shall be interpreted as giving the right to:
Nationals of the Member States or of the Republic of Armenia respectively to enter, or stay in, the territory of the Republic of Armenia or the Community respectively in any capacity whatsoever, and in particular as a shareholder or partner in a company or manager or employee thereof or supplier or recipient of services,
Community subsidiaries or branches of Armenian companies to employ or have employed in the territory of the Community nationals of the Republic of Armenia,
Armenian subsidiaries or branches of Community companies to employ or have employed in the territory of the Republic of Armenia nationals of the Member States,
Armenian companies or Community subsidiaries or branches of Armenian companies to supply Armenian persons to act for and under the control of other persons by temporary employment contracts,
Community companies or Armenian subsidiaries or branches of Community companies to supply workers who are nationals of the Member States by temporary employment contracts.
Chapter V. Current Payments and Capital
Article 41.
1. The Parties undertake to authorise, in freely convertible currency, any current payments between residents of the Community and of the Republic of Armenia connected with the movement of goods, services or persons made in accordance with the provisions of this Agreement.
2. With regard to transactions on the capital account of balance of payments, from entry into force of this Agreement, the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the host country and investments made in accordance with the provisions of Chapter II, and the liquidation or repatriation of these investments and of any profit stemming therefrom shall be ensured.
3. Without prejudice to paragraph 2 or to paragraph 5, as from the entry into force of this Agreement, no new foreign exchange restrictions on the movement of capital and current payments connected therewith between residents of the Community and the Republic of Armenia shall be introduced
And the existing arrangements shall not become more restrictive.
4. The Parties shall consult each other with a view to facilitating the movement of forms of capital other than those referred to in paragraph 2 above between the Community and the Republic of Armenia in order to promote the objectives of this Agreement.
5. With reference to the provisions of this Article, until a full convertibility of the Armenian currency within the meaning of Article VIII of the Articles of Agreement of the International Monetary Fund (IMF) is introduced, the Republic of Armenia may in exceptional circumstances apply exchange restrictions connected with the granting or taking up of short and medium-term financial credits to the extent that such restrictions are imposed on the Republic of Armenia for the granting of such credits and are permitted according to the Republic of Armenia's status under the IMF. The Republic of Armenia shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. The Republic of Armenia shall inform the Cooperation Council promptly of the introduction of such measures and of any changes therein.
6. Without prejudice to paragraphs 1 and 2, where, in exceptional circumstances, movements of capital between the Community and the Republic of Armenia cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or the Republic of Armenia, the Community and the Republic of Armenia, respectively, may take safeguard measures with regard to movements of capital between the Community and the Republic of Armenia for a period not exceeding six months if such measures are strictly necessary.
Chapter VI. Intellectual, Industrial and Commercial Property Protection
Article 42.
1. Pursuant to the provisions of this Article and of Annex II, the Republic of Armenia shall continue to improve the protection of intellectual, industrial and commercial property rights in order to provide, by the end of the fifth year after the entry into force of this Agreement, for a level of protection similar to that existing in the Community, including effective means of enforcing such rights.
2. By the end of the fifth year after entry into force of this Agreement, the Republic of Armenia shall accede to the multilateral conventions on intellectual, industrial and commercial property rights referred to in paragraph 1 of Annex II to which Member States are parties or which are de facto applied by Member States, according to the relevant provisions contained in these conventions.
Article Title V. Legislative Cooperation
Article 43.
1. The Parties recognise that an important condition for strengthening the economic links between the Republic of Armenia and the Community is the approximation of the Republic of Armenia's existing and future legislation to that of the Community. The Republic of Armenia shall endeavour to ensure that its legislation will be gradually made compatible with that of the Community.
2. The approximation of laws shall extend to the following areas in particular: customs law, company law, banking law, company accounts and taxes, intellectual property, protection of workers at the workplace, financial services, rules on competition, public procurement, protection of health and life of humans, animals and plants, the environment, consumer protection, indirect taxation, technical rules and standards, nuclear laws and regulations and transport.
3. The Community shall provide the Republic of Armenia with technical assistance for the implementation of these measures, which may include inter alia:
The exchange of experts,
The provision of early information especially on relevant legislation,
Organisation of seminars,
Training activities,
Aid for translation of Community legislation in the relevant sectors.
4. The Parties agree to examine ways to apply their respective competition laws on a concerted basis in such cases where trade between them is affected.
Article Title VI. Economic Cooperation
Article 44.
1. The Community and the Republic of Armenia shall establish economic cooperation aimed at contributing to the process of economic reform and recovery and sustainable development of the Republic of Armenia. Such cooperation shall strengthen existing economic links, to the benefit of both parties.
2. Policies and other measures will be designed to bring about economic and social reforms and restructuring of the economic and trading systems in the Republic of Armenia and will be guided by the requirements of sustainability and harmonious social development: they will also fully
Incorporate environmental considerations.
3. To this end, cooperation will concentrate, in particular, on economic and social development, human resources development, support for enterprises (including privatisation, investment promotion and protection, small and medium-sized enterprises), mining and raw materials, science and technology, agriculture and food, energy, transport, tourism, telecommunications, financial services, combating of money laundering, trade, customs, statistical cooperation, information and communication, environmental protection and regional cooperation.
4. Special attention shall be devoted to measures capable of fostering cooperation among the Independent States of the Transcaucasus region, and with other neighbouring states, with a view to stimulating a harmonious development of the region.
5. Where appropriate, economic cooperation and other forms of cooperation provided for in this Agreement may be supported by technical assistance from the Community, taking into account the Community's relevant Council regulation applicable to technical assistance in the Independent States, the priorities agreed upon in the indicative programme related to Community technical assistance to the Republic of Armenia and its established coordination and implementation procedures.
Article 45.
Cooperation in the field of trade in goods and services
The Parties will cooperate with a view to ensuring that the Republic of Armenia's international trade is conducted in conformity with the rules of the WTO.
Such cooperation shall include specific issues directly relevant to trade facilitation, including:
Formulation of policy on trade and trade-related questions, including payments, and clearing mechanisms,
Drafting of relevant legislation,
Continuing assistance to prepare for the Republic of Armenia's eventual accession to the WTO.
Article 46. Industrial Cooperation
1. Cooperation shall aim at promoting the following in particular:
The development of business links between economic operators of both sides,
Community participation in the Republic of Armenia's efforts to restructure, and attract follow-up investment to, its industry,
The improvement of management,
The development of appropriate commercial rules and practices,
Environmental protection.
2. The provisions of this Article shall not affect the enforcement of Community competition rules applicable to undertakings.
Article 47. Investment Promotion and Protection
1. Bearing in mind the respective powers and competences of the Community and the Member States, cooperation shall aim to establish a favourable climate for private investment, both domestic and foreign, especially through better conditions for investment protection, the transfer of capital and the exchange of information on investment opportunities.
2. The aims of cooperation shall be in particular:
The conclusion, where appropriate, between the Member States and the Republic of Armenia of agreements for the promotion and protection of investment,
The conclusion, where appropriate, between the Member States and the Republic of Armenia of agreements to avoid double taxation,
The creation of favourable conditions for attracting foreign investments into the Armenian economy,
To establish stable and adequate business law and conditions, and to exchange information on laws, regulations and administrative practices in the field of investment,
To exchange information on investment opportunities in the form of, inter alia, trade fairs, exhibitions, trade weeks and other events.
Article 48. Public Procurement
The Parties shall cooperate to develop conditions for open and competitive award of contracts for goods and services in particular through calls for tenders.
Article 49. Cooperation In the Field of Standards and Conformity Assessment
1. Cooperation between the Parties shall promote alignment with internationally agreed criteria, principles and guidelines followed in the field of quality. The required actions will facilitate progress towards mutual recognition in the field of conformity assessment, as well as the improvement of the quality of Armenian products.
2. To this end the Parties shall seek to cooperate in technical assistance projects which will:
Promote appropriate cooperation with organisations and institutions specialised in these fields,
Promote the use of Community technical regulations and the application of European standards and conformity assessment procedures,
Permit the sharing of experience and technical information in the field of quality management.
Article 50. Mining and Raw Materials
1. The Parties shall aim at increasing investment and trade in mining and raw materials.
2. The cooperation shall focus in particular on the following areas:
Exchange of information on the prospects of the mining and non-ferrous metals sectors,
The establishment of a legal framework for cooperation,
Trade matters,
The adoption and implementation of environmental legislation,
Training,
Safety in the mining industry.
Article 51. Cooperation In Science and Technology
1. The Parties shall promote cooperation in civil scientific research and technological development (RTD) on the basis of mutual benefit and, taking into account the availability of resources, adequate access to their respective programmes and subject to appropriate levels of effective protection of intellectual, industrial and commercial property rights (IPR).
2. Science and technology cooperation shall cover:
The exchange of scientific and technical information,
Joint RTD activities,
Training activities and mobility programmes for scientists, researchers and technicians engaged in RTD on both sides.
Where such cooperation takes the form of activities involving education and/or training, it should be carried out in accordance with the provisions of Article 52.
The Parties, on the basis of mutual agreement, can engage in other forms of cooperation in science and technology.
In carrying out such cooperation activities, special attention shall be devoted to the redeployment of scientists, engineers, researchers and technicians which are or have been engaged in research and/or production of weapons of mass destruction.
3. The cooperation covered by this Article shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the procedures
Adopted by each Party, and which shall set out, inter alia, appropriate IPR provisions.
Article 52. Education and Training
1. The Parties shall cooperate with the aim of raising the level of general education and professional qualifications in the Republic of Armenia, both in the public and private sectors.
2. The cooperation shall focus in particular on the following areas:
Updating higher education and training systems in the Republic of Armenia including the system of certification of higher educational establishments and diplomas of higher education,
The training of public and private sector executives and civil servants in priority areas to be determined,
Cooperation between educational establishments and between educational establishments and firms,
Mobility for teachers, graduates, administrators, young scientists and researchers, and young people,
Promoting teaching in the field of European studies within the appropriate institutions,
Teaching Community languages,
Post-graduate training of conference interpreters,
Training of journalists,
Training of trainers.
3. The possible participation of one Party in the respective programmes in the field of education and training of the other Party could be considered in accordance with their respective procedures and, where appropriate, institutional frameworks and plans of cooperation will then be established building on participation of the Republic of Armenia in the Community's Tempus programme.
Article 53. Agriculture and the Agro-industrial Sector
The purpose of cooperation in this area shall be the pursuance of agrarian reform, the modernisation, privatisation and restructuring of agriculture, the agro-industrial and service sectors in the Republic of Armenia, development of domestic and foreign markets for Armenian products, in conditions that ensure the protection of the environment, taking into account the necessity to improve security of food supply as well as the development of agri-business, the processing and distribution of agricultural products. The Parties shall also aim at the gradual approximation of Armenian standards to Community technical regulations concerning industrial and agricultural food products including sanitary and phytosanitary standards.
Article 54. Energy
1. Cooperation shall take place within the principles of the market economy and the European Energy Charter and bearing in mind the Energy Charter Treaty and the Protocol on Energy Efficiency and Related Environmental Aspects, against a background of the progressive integration of the energy markets in Europe.
2. The cooperation shall include among others the following areas:
Formulation and development of energy policy,
Improvement in management and regulation of the energy sector in line with a market economy,
Improvement of energy supply, including security of supply, in an economic and environmentally sound manner,
Promotion of energy saving and energy efficiency and implementation of the Energy Charter Protocol on Energy Efficiency and related environmental aspects,
Modernisation of energy infrastructures,
Improvement of energy technologies in supply and end use across the range of energy types,
Management and technical training in the energy sector,
Transportation and transit of energy materials and products,
The introduction of the range of institutional, legal, fiscal and other conditions necessary to encourage increased energy trade and investment,
Development of hydro-electric and other renewable energy resources.
3. The Parties shall exchange relevant information relating to investment projects in the energy sector, in particular
Concerning the construction and refurbishing of oil and gas pipelines or other means of transporting energy products. They shall cooperate with a view to implementing as efficaciously as possible the provisions of Title IV and of Article 47, in respect of investments in the energy sector.
Article 55. Environment
1. Bearing in mind the European Energy Charter and the Declaration of the Lucerne Conference of 1993, and taking into account the Energy Charter Treaty, and especially its Article 19, and the Energy Charter Protocol on Energy Efficiency and related environmental aspects, the Parties shall develop and strengthen their cooperation on environment and human health.
2. Cooperation shall aim at combating the deterioration of the environment and in particular:
Effective monitoring of pollution levels and assessment of the environment; system of information on the state of the environment,
Combating local, regional and transboundary air and water pollution,
Ecological restoration,
Sustainable, efficient and environmentally effective production and use of energy,
Safety of industrial plants,
Classification and safe handling of chemicals,
Water quality,
Waste reduction, recycling and safe disposal, implementation of the Basle Convention,
The environmental impact of agriculture, soil erosion, and chemical pollution,