- five years after the entry into force of the Agreement, to 0 % of the basic duty.
3. Customs duties on imports applicable in Romania to products originating in the Community which are listed in Annex VI shall be abolished in accordance with the timetable mentioned in that Annex.
4. Customs duties on imports applicable in Romania to products originating in the Community other than those listed in Annexes IV, V and VI shall be progressively reduced according to the following timetable:
- three years after the entry into force of the Agreement, to 80 % of the basic duty,
- five years after the entry into force of the Agreement, to 60 % of the basic duty,
- six years after the entry into force of the Agreement, to 50 % of the basic duty,
- seven years after the entry into force of the Agreement, to 35 % of the basic duty,
- eight years after the entry into force of the Agreement, to 20 % of the basic duty,
- nine years after the entry into force of the Agreement, to 0 % of the basic duty.
5. The products originating in the Community listed in Annex VII shall benefit from a suspension of customs duties on imports in Romania within the limits of annual quotas which will be increased progressively as foreseen in that Annex. Customs duties on imports applicable to quantities in excess of the abovementioned quotas shall be progressively dismantled according to the timetable mentioned in paragraph 4.
6. Quantitative restrictions on imports into Romania of products originating in the Community shall be abolished upon entry into force of the Agreement.
7. Measures having an effect equivalent to quantitative restrictions on imports into Romania of products originating in the Community shall be abolished upon entry into force of the Agreement, except for those listed in Annex VIII which shall be abolished according to the timetable in that Annex.
Article 12.
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 13.
1. The Community shall abolish in its imports from Romania any charges having an equivalent effect to customs duties on imports upon entry into force of the Agreement.
2. Romania shall abolish in its imports from the Community any charges having an equivalent effect to customs duties on imports upon entry into force of the Agreement, except for the charges of 0,5 % ad valorem for the customs formalities which will be abolished according to the following timetable:
- reduction to 0,25 % ad valorem at the end of the third year,
- elimination at the latest by the end of the fifth year upon entry into force of the Agreement.
Article 14.
1. The Community and Romania shall progressively abolish between them at the latest by the end of the fifth year after entry into force of the Agreement any customs duties on exports and charges having equivalent effect.
2. Quantitative restrictions on exports to Romania and any measures having equivalent effect shall be abolished by the Community upon entry into force of the Agreement.
3. Quantitative restrictions on exports to the Community and any measures having equivalent effect shall be abolished by Romania upon entry intro force of the Agreement except for those listed in Annex IX which shall be progressively reduced and shall be eliminated at the latest by the end of the fifth year after the entry into force of the Agreement.
Article 15.
Each Party declares its readiness to reduce its customs duties in trade with the other Party more rapidly than is provided for in Articles 10 and 11 if its general economic situation and the situation of the economic sector concerned so permit.
The Association Council may make recommendations to this effect.
Article 16.
Protocol 1 lays down the arrangements applicable to the textile products referred to therein.
Article 17.
Protocol 2 lays down the arrangements applicable to products covered by the Treaty establishing the European Coal and Steel Community.
Article 18.
1. The provisions of this Chapter do not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex X in respect of products originating in Romania.
2. The provisions of this Chapter do not preclude the introduction of an agricultural component by Romania in the duties applicable to the products listed in Annex X in respect of products originating in the Community.
Chapter II. Agriculture
Article 19.
1. The provisions of this Chapter shall apply to agricultural products originating in the Community and in Romania.
2. The term 'agricultural products` means the products listed in Chapters 1 to 24 of the combined nomenclature and the products listed in Annex I, but excluding fishery products as defined by Regulation (EEC) No 3687/91.
Article 20.
Protocol 3 lays down the trade arrangements for processed agricultural products which are listed in such protocol.
Article 21.
1. The Community shall abolish at the date of entry into force of the Agreement the quantitative restrictions on imports of agricultural products originating in Romania maintained by virtue of Council Regulation (EEC) No 3420/83 in the form existing on the date of signature hereof.
2. The agricultural products originating in Romania listed in Annexes XIa and XIb shall benefit, upon the date of entry into force of this Agreement, from the reduction of levies within the limit of Community quotas or from the reduction of customs duties and upon the conditions provided in the same Annexes.
3. Romania shall abolish quantitative restrictions on imports of agricultural products originating in the Community upon entry into force of the Agreement.
4. The Community and Romania shall grant each other the concessions referred to in Annexes XIIa, XIIb and XIII, on a harmonious and reciprocal basis, in accordance with the conditions laid down therein.
5. Taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of the common agricultural policy of the Community, of the role of agriculture in Romania's economy, and of the consequences of the multilateral trade negotiations under the General Agreement on Tariffs and Trade, the Community and Romania shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibilities of granting each other further concessions.
6. Taking account of the need for an increased harmony between the agricultural policies in the Community and Romania, as well as Romania's objective of becoming a member of the Community, both Parties will have regular consultations in the Association Council on the strategy and practical modalities of their respective policies.
Article 22.
Notwithstanding other provisions of this Agreement, and in particular Article 31, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party, which are the subject of concessions granted in Article 21, cause serious disturbance to the markets in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the measures it deems necessary.
Chapter III. Fisheries
Article 23.
The provisions of this Chapter shall apply to fishery products originating in the Community and in Romania, which are covered by Regulation (EEC) No 3687/91 on the common organization of the market in fishery products.
Article 24.
1. The Community and Romania shall grant each other the concessions referred to in Annexes XIV and XV on a harmonious and reciprocal basis, in accordance with the conditions laid down therein. The provisions of Article 21 (5) shall apply mutatis mutandis to fishery products.
2. The Association Council will examine the possibility of concluding an Agreement on fishery products between the Parties when the necessary conditions so permit.
Chapter IV. Common Provisions
Article 25.
The provisions of this Chapter shall apply to trade in all products, except where otherwise provided herein or in Protocols 1, 2 or 3.
Article 26.
1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in the trade between the Community and Romania from the date of entry into force of the Agreement.
2. No new quantitative restrictions on imports or exports or measures having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in the trade between the Community and Romania from the date of entry into force of the Agreement.
3. Any new customs duties on imports or exports or charges having equivalent effect or increases thereof or any new quantitative restrictions or charges having equivalent effect or increases thereof introduced by Romania after the beginning of the negotiations shall be abolished at the latest at the entry into force of the Agreement.
4. Without prejudice to the concessions granted under Article 21, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuance of the respective agricultural policies of Romania and the Community or the taking of any measures under such policies.
Article 27.
1. The two 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 two Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them.
Article 28.
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement.
2. Consultations between the Parties shall take place within the Association Council concerning Agreements establishing such 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 can be taken of the mutual interests of the Community and Romania stated in this Agreement.
Article 29.
Exceptional measures of limited duration which derogate from the provisions of Articles 11 and 26 (1) may be taken by Romania in the form of increased customs duties.
These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems.
Customs duties on imports applicable in Romania 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 which are subject to these measures may not exceed 15 % of total imports from the Community of industrial products as defined in Chapter I, 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 authorized by the Association Council. They shall cease to apply at the latest at the expiration of the transitional period.
No such measures can 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 an equivalent effect concerning that product.
Romania shall inform the Association Council of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held in the Association Council on such measures and the sectors to which they apply before they are applied. When taking such measures, Romania shall provide the Association Council with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction at equal annual rates. The Association Council may decide on a different schedule.
Article 30.
If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI of the General Agreement on Tariffs and Trade, it may take appropriate measures against this practice in accordance with the Agreement relating to the application of Article VI of the General Agreement on Tariffs and Trade, with related internal legislation and with the conditions and procedures laid down in Article 34.
Article 31.
Where any product is being imported in such increased quantities and under such conditions as to cause, or threaten to cause:
- serious injury to domestic producers of like or directly competitive products in the territory of one of the Parties, or
- serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region,
the Community or Romania, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34.
Article 32.
Where compliance with the provisions of Articles 14 and 26 leads to:
(i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures having equivalent effect;
or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party,
and where the situations above referred to give rise, or are likely to give rise to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.
Article 33.
The Member States and Romania shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Romania. The Association Council will be informed about the measures adopted to implement this objective.
Article 34.
1. In the event of the Community or Romania subjecting imports of products liable to give rise to the difficulties referred to in Article 31 to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.
2. In the cases specified in Articles 30, 31 and 32, before taking the measures provided for therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Community or Romania as the case may be shall supply the Association Council with all relevant information, with a view to seeking a solution acceptable to the two Parties.
In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.
The safeguard measures shall be notified immediately to the Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) as regards Article 31, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Council, which may take any decision needed to put an end to such difficulties.
If the Association Council or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen;
(b) as regards Article 30, the Association Council shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping or no other satisfactory solution has been reached within 30 days of the matter being referred to the Association Council, the importing Party may adopt the appropriate measures;
(c) as regards Article 32, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Council.
The Association Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned;
(d) where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Romania whichever is concerned may, in the situations specified in Articles 30, 31 and 32, apply forthwith the precautionary and provisional measures strictly necessary to deal with the situation, and the Association Council will be informed immediately.
Article 35.
Protocol 4 lays down rules of origin for the application of tariff preferences foreseen in this Agreement.
Article 36.
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 37.
Protocol 5 lays down the specific provisions to apply to trade between Romania of the one part and Spain and Portugal of the other part.
Title IV. MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES CHAPTER I Movement of Workers
Article 38.
1. Subject to the conditions and modalities applicable in each Member State:
- the treatment accorded to workers of Romanian nationality, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals,
- the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral agreements in the sense of Article 42, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorized stay of employment.
2. Romania shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said territory.
Article 39.
1. With a view to coordinating social security systems for workers of Romanian nationality, legally employed in the territory of a Member State and for the members of their family, legally resident there, and subject to the conditions and modalities applicable in each Member State:
- all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members,
- any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law the debtor Member State or States,
- the workers in question shall receive family allowance for the members of their family as defined above.
2. Romania shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1.
Article 40.
1. The Association Council shall by decision adopt the appropriate provisions to implement the objective set out in Article 39.
2. The Association Council shall by decision adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1.
Article 41.
The provisions adopted by the Association Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral agreements linking Romania and the Member States where those agreements provide for more favourable treatment of nationals of Romania or of the Member States.
Article 42.
1. Taking into account the labour market situation in the Member State, subject to its legislation and to the respect of rules in force in that Member State in the area of mobility of workers:
- the existing facilities for access to employment for Romanian workers accorded by Member States under bilateral agreements ought to be preserved and if possible improved,
- the other Member States shall consider favourably the possibility of concluding similar agreements.
2. The Association Council shall examine granting other improvements including facilities of access for professional training, in conformity with rules and procedures in force in the Member States, and taking account of the labour market situation on the Member States and in the Community.
Article 43.
During the second stage referred to in Article 7, or earlier if so decided, the Association Council shall examine further ways of improving the movement of workers, taking into account inter alia the social and economic situation and requirements in Romania and the employment situation in the Community. The Association Council shall make recommendations to such end.
Article 44.
In the interest of facilitating the restructuring of labour resources resulting from the economic restructuring in Romania the Community shall provide technical assistance for the establishment of a suitable social security system in Romania as set ourt in Article 89.
Chapter II. Establishment
Article 45.
1. Each Member State shall grant, from entry into force of the Agreement, for the establishment of Romanian companies and nationals and for the operation of Romanian companies and nationals established in its territory, a treatment no less favourable than that accorded to its own companies and nationals, save for the areas described in Annex XVI.
2. Without prejudice to paragraph 3, Romania shall grant, from entry into force of the Agreement, for the establishment of Community companies and nationals and for the operation of Community companies and nationals established in its territory, a treatment no less favourable than that accorded to its own companies and nationals save for the areas described in Annex XVII. Should the existing laws and regulations not grant such treatment of Community companies and nationals for certain economic activities in Romania upon entry into force of this Agreement, Romania shall amend such laws and regulations as to ensure such treatment at the latest at the end of the fifth year following the date of entry into force of this Agreement.
3. For the areas and matters described in Annex XVIII, except for banking activities as referred to in Law No 33 of 1991, Romania shall grant gradually and at the latest by the end of the transitional period referred to in Article 7, a treatment no less favourable than that accorded to its own nationals and companies for the establishment of Community companies and nationals. As regards the abovementioned banking activities, national treatment shall be granted at the latest by the end of the fifth year following the entry into force of this Agreement.
4. Romania shall, during the transitional periods referred to in paragraphs 2 and 3 not adopt any new regulations or measures which introduce discrimination as regards to establisment and operations of Community companies and nationals in its territory in comparison to its own companies and nationals.
5. For the purposes of this Agreement:
(a) establishment shall mean
(i) as regards nationals, the right to take up and pursue economic activities as self-employed persons and to set up and manage undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of another Party. The provisions of this Chapter do not apply to those who are not exclusively self-employed;
(ii) as regards companies, the right to take up and pursue economic activities by means of the setting up and management of subsidiaries, branches and agencies;
(b) subsidiary of a company shall mean a company which is effectively controlled by the first company;
(c) economic activities shall in particular include activities of an industrial character, activities of a commercial character, activities of craftsmen and activities of the professions.
6. The Association Council shall examine regularly the possibility of accelerating the granting of national treatment in the sectors referred to in Annex XVIII and the inclusion of areas and matters listed in Annexes XVI and XVII within the scope of application of the provisions of paragraphs 1, 2, 3 and 4 of this Article. Amendments may be made to these Annexes by decision of the Association Council.
Following the expiration of the transitional periods referred to in paragraphs 2 and 3, the Association Council may exceptionally, upon request by Romania, and if the necessity arises, decide to prolong the duration of those transitional periods for certain areas or matters for a limited period of time.
7. Notwithstanding the provisons of this Article, Community companies established in the territory of Romania shall have, from entry into force of the Agreement, the right to acquire, use, rent and sell real property, and as regards public property, land and forestry, the right to lease, where these are directly necessary for the conduct of the economic activities for which they are established. This right does not include establishment for the purpose of dealing and agency in the area of raeal estate and natural resources.
Romania shall grant these rights to branches and agencies established in Romania of Community companies at the latest by the end of the first five years following the date of entry into force of the Agreement.