Title
EUROPE AGREEMENT establishing an association between the European Economic Communities and their Member States, of the one part, and Romania, 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 PORTUGUESE REPUBLIC,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the EUROPEAN ECONOMIC COMMUNITY, the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'Member States`, and
The EUROPEAN ECONOMIC COMMUNITY, the EUROPEAN ATOMIC ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community`,
of the one part,
and ROMANIA
of the other part,
CONSIDERING the importance of the traditional links existing between the Community, its Member States and Romania and the common values that they share,
RECOGNIZING that the Community and Romania wish to strengthen these links and to establish close and lasting relations, based on reciprocity, which would allow Romania to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Agreement on Trade and Commercial and Economic Cooperation, signed on 22 October 1990,
CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in Romania,
CONSIDERING the commitment of the Community and its Member States and of Romania to strengthening the political and economic freedoms which constitute the very basis of the association,
RECOGNIZING the need to continue and complete, with the assistance of the Community, Romania's transition towards a new political and economic system which respects the rule of law and human rights, including the rights of persons belonging to minorities, operates a multi-party system with free and democratic elections, and provides for economic liberalization in order to establish a market economy,
CONSIDERING the firm commitment of the Community and its Member States and of Romania to the full implementation of all principles and provisions contained in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the concluding documents of Vienna and Madrid, the Charter of Paris for a New Europe, the CSCE Helsinki document 'The Challenges of Change`, and the European Energy Charter,
CONSCIOUS of the importance of this Agreement to establishing and enhancing in Europe a system of stability based on cooperation, with the Community as one of the cornerstones,
BELIEVING that a link should be made between full implementation of association on the one hand, and continuation of the actual accomplishment of Romania's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the actual rapprochement between the Parties' systems, notably in the light of the conclusions of the CSCE Bonn Conference,
DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,
TAKING ACCOUNT of the Community's willingness to provide decisive support for the implementation of reform and to help Romania cope with the economic and social consequences of structural readjustment,
TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a global and multiannual basis,
CONSIDERING the commitment of the Community and Romania to free trade, and in particular to comply with the rights and obligations arising out of the General Agreement on Tariffs and Trade,
CONSCIOUS of the need to establish the necessary conditions for the freedom of establishment, the freedom to provide services and the free movement of capital,
BEARING in mind the economic and social disparities between the Community and Romania and thus recognizing that the objectives of this association should be reached through appropriate provisions of this Agreement,
CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernization,
DESIROUS of establishing cultural cooperation and developing exchanges of information,
RECOGNIZING the fact that Romania's ultimate objective is to become a member of the Community, and that this association, in the view of the Parties, will help Romania to achieve this objective,
HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries,
THE KINGDOM OF BELGIUM:
Willy CLAES,
Minister for Foreign Affairs;
THE KINGDOM OF DENMARK:
Niels Helveg PETERSEN,
Minister for Foreign Affairs;
THE FEDERAL REPUBLIC OF GERMANY:
Klaus KINKEL,
Federal Minister for Foreign Affairs;
THE HELLENIC REPUBLIC:
Michel PAPACONSTANTINOU,
Minister for Foreign Affairs;
THE KINGDOM OF SPAIN:
Javier SOLANA,
Minister for Foreign Affairs;
THE FRENCH REPUBLIC:
Roland DUMAS,
Ministre d'État,
Minister for Foreign Affairs;
IRELAND:
Dick SPRING,
Minister for Foreign Affairs;
THE ITALIAN REPUBLIC:
Eimilio COLOMBO,
Minister for Foreign Affairs;
THE GRAND DUCHY OF LUXEMBOURG:
Jacques POOS,
Minister for Foreign Affairs;
THE KINGDOM OF THE NETHERLANDS:
P. KOOIJMANS,
Minister for Foreign Affairs;
THE PORTUGUESE REPUBLIC:
J. M. DURÃO BARROSO,
Minister for Foreign Affairs;
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
Douglas HURD,
Minister for Foreign Affairs;
THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY:
Niels Helveg PETERSEN,
Minister for Foreign Affairs of the Kingdom of Denmark,
President-in-Office of the Council of the European Communities;
Leon BRITTAN,
Member of the Commission;
H. van den BROEK,
Member of the Commission;
ROMANIA:
Nicolae VACAROIU,
Prime Minister;
Teodor Viorel MELESCANU,
Ministre d'État,
Minister for Foreign Affairs;
WHO, having exchanged their full powers, formed in good and due form,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
An association is hereby established between the Community and its Member States on the one part, and Romania on the other part. The objectives of this association are:
- to provide an appropriate framework for the political dialogue between the Parties allowing the development of close political relations,
- to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster the economic development in Romania,
- to provide a basis for economic, social, financial and cultural cooperation,
- to support Romania's efforts to develop its economy and to complete the conversion into a market economy, and consolidate its democracy,
- to set up institutions suitable to make the association effective,
- to provide a framework for Romania's gradual integration into the Community. To this end, Romania shall work towards fulfilling the necessary conditions.
Title I. POLITICAL DIALOGUE
Article 2.
A regular political dialogue shall be established between the Parties which they intend to develop and intensify. It shall accompany and consolidate the rapprochement between the Community and Romania, support the political and economic changes underway in that country and contribute to the establishment of new links of solidarity and new forms of cooperation. The political dialogue:
- will facilitate Romania's full integration into the community of democratic nations and progressive rapprochement with the Community. The economic rapprochement provided for in this Agreement will lead to greater political convergence,
- will bring about an increasing convergence of positions on international issues, and in particular on those matters likely to have substantial effects on one or the other Party,
- will contribute to the rapprochement of the Parties' positions on security issues and will enhance security and stability in the whole of Europe.
Article 3.
1. Consultations as appropriate shall be held between the Parties at the highest political level.
2. At ministerial level, political dialogue shall take place within the Association Council. This shall have general responsibility for all matters which the Parties might wish to put to it.
Article 4.
Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms:
- meetings at senior official level (political directors) between officials of Romania on the one hand, and the Presidency of the Council of the European Communities and the Commission of the European Communities, on the other,
- taking full advantage of diplomatic channels,
- including Romania in the group of countries receiving regular information on the issues dealt with by the European Political Cooperation as well as exchanging information with a view to achieving the objectives set out in Article 2,
- any other means which would contribute to consolidating, developing and stepping up this dialogue.
Article 5.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Association Committee.
Title II. GENERAL PRINCIPLES
Article 6.
Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of market economy, inspire the domestic and external policies of the Parties and constitute essential elements of the present association.
Article 7.
1. The association includes a transitional period of a maximum duration of 10 years divided into two successive stages, each in principle lasting five years. The first stage shall begin when the Agreement enters into force.
2. The Association Council, bearing in mind that the principles of the market economy and the support by the Community through this Agreement are essential to the present association, shall proceed regularly to examine the application of the Agreement and the accomplishment of Romania's economic reforms on the basis of the principles established in the preamble.
3. During the course of the 12 months preceding the expiration of the first stage, the Association Council shall meet to decide the transition to the second stage as well as on any possible changes to be brought about as concerns the dispositions governing the second stage. In doing this, it will take into account the results of the examination mentioned in paragraph 2.
4. The two stages envisaged under 1 and 3 do not apply to Title III.
Title III. FREE MOVEMENT OF GOODS
Article 8.
1. During the transitional period referred to in Article 7, the Community and Romania shall gradually establish a free trade area based on reciprocal and balanced obligations, in accordance with the provisions of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (GATT).
2. The combined nomenclature of goods shall be applied to the classification of goods in trade between the two Parties.
3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be that actually applied erga omnes on the day preceding the entry into force of the Agreement.
4. If, after the entry into force of the Agreement, any tariff reduction is applied on an erga omnes basis, such reduced duties shall replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied.
5. The Community and Romania shall communicate to each other their respective basic duties.
Chapter I. Industrial Products
Article 9.
1. The provisions of this Chapter shall apply to products originating in the Community and in Romania listed in Chapters 25 to 97 of the combined nomenclature with the exception of the products listed in Annex I.
2. The provisions of Articles 10 to 14 included do not apply to products mentioned in Articles 16 and 17.
Article 10.
1. Customs duties on imports applicable in the Community to products originating in Romania other than those listed in Annexes IIa, IIb and III shall be abolished on the entry into force of the Agreement.
2. Customs duties on imports applicable in the Community to products originating in Romania which are listed in Annex IIa shall be progressively abolished in accordance with the following timetable:
- on the date of entry into force of the Agreement, each duty shall be reduced to 50 % of the basic duty,
- one year after the date of entry into force of the Agreement the remaining duties shall be eliminated.
Customs duties on imports applicable in the Community to products originating in Romania listed in Annex IIb shall be progressively reduced, from the date of entry into force of the Agreement, by annual reductions of 20 % of the basic duty so as to arrive at total abolition by the end of the fourth year after the date of entry into force of the Agreement.
3. The products of Romanian origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditions defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned at the end of the fifth year at the latest.
At the same time, the customs duties on imports to be applied when the quotas have been exhausted or when the levying of customs duties has been reintroduced with respect to products covered by a tariff ceiling, shall be progressively dismantled, from the entry into force of the Agreement by annual reductions of 15 % of the basic duty. By the end of the fifth year, remaining duties shall be abolished.
4. Quantitative restrictions and measures having an effect equivalent to quantitative restrictions on imports to the Community shall be abolished on the date of entry into force of the Agreement with regard to the products originating in Romania.
Article 11.
1. Customs duties on imports applicable in Romania to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of the Agreement.
2. Customs duties on imports applicable in Romania to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable:
- on the date of entry into force of the Agreement, to 80 % of the basic duty,
- three years after the entry into force of the Agreement, to 40 % of the basic duty,