Title
PARTNERSHIP AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF IRAQ, OF THE OTHER PART
Preamble
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
THE REPUBLIC OF HUNGARY,
MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC, ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty on European Union and the Treaty on the Functioning of the European Union, hereinafter referred to as the "Member States" and
THE EUROPEAN UNION, hereinafter referred to as "the Union"
Of the one part, and
THE REPUBLIC OF IRAQ, hereinafter referred to as "Iraq"
Of the other part,
Hereinafter jointly referred to as "the Parties",
CONSIDERING the links between the Union, its Member States and Iraq and the common values that they share,
RECOGNISING that the Union, its Member States and Iraq wish to strengthen those links and to establish trade and cooperation, supported by a political dialogue,
CONSIDERING the importance which the Parties attach to the purposes and principles of the Charter of the United Nations, the observance of human rights, democratic principles and political and economic freedoms, which form the very basis of the Partnership,
REAFFIRMING their attachment to the democratic principles and human rights and fundamental freedoms as laid down in the United Nations Universal Declaration on Human Rights and other relevant international human rights instruments,
ACKNOWLEDGING the great importance of sustainable and social development which should go hand in hand with economic development,
RECOGNISING the importance of enhancing cooperation between them, and their common will to consolidate, deepen and diversify their relations in areas of mutual interest on the basis of respect for sovereignty, equality, non-discrimination, the rule of law and good governance, respect for the natural environment and mutual benefit,
RECOGNISING the need to support Iraq's efforts to continue political reforms and economic rehabilitation and reforms, as well as in improving the living conditions of the poor and disadvantaged sections of the population,
RECOGNISING the need to strengthen women's role in political, civil, social, economic and cultural spheres, as well as to fight discrimination,
DESIROUS of creating favourable conditions for a substantial development and diversification of trade between the Union and Iraq and enhancing cooperation in economic, commercial, investment, science and technology and cultural fields,
AIMING to promote trade and investment and harmonious economic relations between the Parties based on the principles of market economy,
HAVING REGARD to the need to create favourable conditions for improving business and investment,
CONSCIOUS of the need to improve conditions affecting business and investment, and conditions in areas such as establishment of companies, labour, provision of services and capital movements,
TAKING into account the Parties' right to regulate the provision of services within their territories and to guarantee the achievement of legitimate public policy objectives,
TAKING into account their commitment to conduct trade in accordance with the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994 (hereinafter referred to as the "WTO Agreement"), and in that respect their mutual interest in Iraq's accession to that Agreement,
RECOGNISING the specific needs of developing countries under the WTO,
RECOGNISING the fact that terrorism, organised crime, money laundering and drug trafficking represent serious threats to international stability and security as well as to the fulfilment of the objectives of their cooperation,
NOTING the importance of fostering and strengthening regional cooperation,
CONFIRMING that the provisions of this Agreement which fall within the scope of Title V of Part Three of the Treaty on the Functioning of the European Union, bind the United Kingdom and Ireland, as separate contracting parties, and not as part of the European Union, unless the European Union notifies Iraq that either State has become bound on these matters as part of the European Union in accordance with Protocol (No 21) on the position of the United Kingdom and Ireland in Respect of the Area of Freedom, Security and Justice annexed to the Treaty on European Union and the Treaty on the Functioning of the European Union. The same applies to Denmark, in accordance with Protocol (No 22) on the position of Denmark annexed to the Treaty on European Union and the Treaty on the Functioning of the European Union,
HAVE AGREED AS FOLLOWS:
Body
Article 1. Establishment of Partnership
1. A partnership is hereby established between the Union and its Member States of the one part, and Iraq, of the other part.
2. The objectives of this Partnership are:
(a) to provide an appropriate framework for the political dialogue between the Parties allowing the development of political relations;
(b) to promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable economic development; and
(c) to provide a basis for legislative, economic, social, financial and cultural cooperation.
Article 2. Basis
Respect for democratic principles and human rights, as laid down in the Universal Declaration of Human Rights and other relevant international human rights instruments, as well as for the principle of the rule of law, underpins the internal and international policies of both Parties and constitutes an essential element of this Agreement.
Title I. Political Dialogue and Cooperation In the Field of Foreign and Security Policy
Article 3. Political Dialogue
1. A regular political dialogue shall be established between the Parties. It shall strengthen their relations, contribute to the development of a partnership and increase mutual understanding and solidarity.
2. The political dialogue shall cover all subjects of common interest, and in particular peace, foreign and security policy, national dialogue and reconciliation, democracy, the rule of law, human rights, good governance and regional stability and integration.
3. The political dialogue shall take place on an annual basis at ministerial and at senior official level.
Article 4. Combating Terrorism
The Parties reaffirm the importance of the fight against terrorism and, in accordance with international conventions, international human rights, humanitarian and refugee law and with their respective legislation and regulations, agree to cooperate in the prevention and suppression of terrorist acts. They shall do so in particular:
(a) in the framework of the full implementation of the UN Security Council Resolution 1373 (2001) and other relevant UN resolutions, the UN Counter-Terrorism Strategy, international conventions and instruments;
(b) by exchange of information on terrorist groups and their support networks in accordance with international and national law; and
(c) by exchanges of view on means and methods used to counter terrorism, including in technical fields and training, and by exchange of experiences in respect of terrorism prevention.
The Parties continue to be committed to reaching an agreement on the UN Comprehensive Convention on International Terrorism as soon as possible.
The Parties are deeply concerned about incitement of terrorist acts and emphasise their commitment to take all necessary and appropriate measures in accordance with international and national law, to reduce the threat posed by such incitement.
Article 5. Countering Proliferation of Weapons of Mass Destruction
The Parties consider that the proliferation of weapons of mass destruction (WMD) and their means of delivery, both to state and non-state actors, represents one of the most serious threats to international stability and security. The Parties therefore agree to cooperate and to contribute to countering the proliferation of WMD and their means of delivery through full compliance with and national implementation of their existing obligations under international disarmament and non-proliferation treaties and agreements and other relevant international obligations. The Parties agree that this provision constitutes an essential element of this agreement.
The Parties furthermore agree to cooperate and to contribute to countering the proliferation of WMD and their means of delivery by:
(a) taking steps to sign, ratify, or accede to, as appropriate, and fully implement all other relevant international instruments;
(b) the establishment of an effective system of national export controls, controlling the export as well as transit of WMD related goods, including a WMD end-use control on dual-use technologies and containing effective sanctions for breaches of export controls.
The Parties agree to establish a regular political dialogue that will accompany and consolidate these elements.
Article 6. Small Arms and Light Weapons
1. The Parties recognise that the illicit manufacture, transfer and circulation of small arms and light weapons (SALW), including their ammunition, and their excessive accumulation, poor management, inadequately secured stockpiles and uncontrolled spread continue to pose a serious threat to peace and international security.
2. The Parties agree to observe and fully implement their respective obligations to deal with the illicit trade in SALW, including their ammunition, under existing international agreements and UN Security Council resolutions, as well as their commitments within the framework of other international instruments applicable in this area, such as the UN Programme of Action to prevent, combat and eradicate the illicit trade in SALW in all its aspects.
3. The Parties undertake to cooperate and to ensure coordination, complementarity and synergy in their efforts to deal with the illicit trade in SALW, including their ammunition, at global, regional, sub-regional and national levels and agree to establish regular political dialogue that will accompany and consolidate this undertaking.
Article 7. International Criminal Court
1. The Parties reaffirm that the most serious crimes of concern to the international community as a whole should not go unpunished and that their prosecution should be ensured by measures at either the domestic or international level.
2. The Parties recognise that Iraq is not yet a State Party to the Rome Statute of the International Criminal Court, but that Iraq is considering the possibility of acceding to it in the future. In so doing, Iraq will take steps to accede to, ratify and implement the Rome Statute and
Related instruments.
3. The Parties reaffirm their determination to cooperate on this issue, including by sharing experience in the adoption of legal adjustments required by the relevant international law.
Title II. Trade and Investments
Section I. Trade In Goods
Chapter I. General Provisions
Article 8. Scope and Coverage
This Chapter shall apply to trade in goods between the Parties.
Article 9. Customs Duties
For the purpose of this Chapter, a "customs duty" includes any duty or charge of any kind imposed on or in connection with the importation or exportation of a good, including any form of surtax or surcharge imposed on or in connection with such importation or exportation. A "customs duty" does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article 11;
(b) duty imposed consistently with Chapter II of Section 1 of Title II of this Agreement;
(c) duty applied consistently with Articles VI, XVI and XIX of the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as the "GATT 1994"), the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, the WTO Agreement on Subsidies and Countervailing Measures, the WTO Agreement on Safeguards, Article 5 of the WTO Agreement on Agriculture or the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (hereinafter referred to as the "DSU");
(d) fee or other charge imposed pursuant to a Party's domestic law and consistently with Article VIII of the GATT 1994 and its Notes and Supplementary Provisions.
Article 10. MFN Treatment
1. The Parties shall accord to one another most-favoured-nation treatment in accordance with Article I.1 of the GATT 1994 and its Notes and Supplementary Provisions.
2. The provisions of paragraph 1 shall not apply to:
(a) advantages granted with the object of establishing a customs union or a free-trade area according to the GATT 1994 or pursuant to the establishment of such customs union or free-trade area;
(b) advantages granted to particular countries in accordance with the GATT 1994 and with other international arrangements in favour of developing countries.
Article 11. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its Notes and Supplementary Provisions. To this end, Article III of the GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
Article 12. Tariff Policy
1. Products originating in Iraq and imported into the Union shall be subject to the Union MFN tariff. No customs duties exceeding those applied to imports from WTO Members in accordance with Article I of the GATT 1994 shall be applied to products originating in Iraq and imported into the Union.
2. Products originating in the Union shall, on their importation into Iraq, not be subject to customs duties exceeding the current 5 % Reconstruction Levy on imported goods.
3. The Parties agree that until Iraq accedes to the WTO, the Parties may amend the level of customs duties on imports after mutual consultation between the Parties.
4. If, after the signature of this Agreement, any tariff reduction is applied by Iraq to imports on an erga omnes basis, in particular reductions resulting from the tariff negotiations in the WTO, such reduced customs duties shall be applied to imports originating in the Union and replace the basic duty or Reconstruction Levy as from the date when such reductions are applied.
Article 13. Application of Relevant Provisions of the GATT 1994
The following Articles of the GATT 1994 shall be incorporated into and made part of this Agreement and shall apply between the Parties, mutatis mutandis:
(a) Article V including its Notes and Supplementary Provisions;
(b) Article VII, paragraphs 1, 2, 3, 4(a), 4(b), 4(d) and 5 including its Notes and Supplementary provisions and the WTO Agreement on Implementation of Article VII of the GATT 1994;
(c) Article VIII including its Notes and Supplementary Provisions;
(d) Article IX;
(e) Article X.
Article 14. Harmonised Commodity Description
The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature interpreted in conformity with the Harmonised System of the International Convention on the Harmonised Commodity Description and Coding System, done at Brussels on 14 June 1983 (hereinafter referred to as the "HS").
Article 15. Temporary Admission of Goods
Without prejudice to the rights and obligations stemming from international conventions on the temporary admission of goods which bind both Parties, each Party shall grant the other Party exemption from import charges and duties on goods admitted temporarily. The temporary admission procedure shall be applied taking account of the conditions under which the obligations stemming from such conventions have been accepted by the Parties in question.
Article 16. Prohibition of Quantitative Restrictions
The Union and Iraq shall, upon the entry into force of this Agreement, abolish and shall not adopt or maintain in trade between themselves any restrictions on imports or exports or any measures having equivalent effect in accordance with Article XI of the GATT 1994 and its Notes and Supplementary Provisions. To this end Article XI of the GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
Article 17. Export Duties
Neither party may maintain or institute any customs duties, taxes or other fees and charges imposed on or in connection with the exportation of goods to the other Party. Neither Party may maintain or institute any internal taxes, fees, and charges on goods exported to the other party that are in excess of those imposed on like products destined for internal sale.
Chapter II. Trade Remedies Instruments
Article 18. Anti-dumping
1. Nothing in this Agreement shall prevent the Parties from adopting anti-dumping or countervailing measures in accordance with Article VI of the GATT 1994, including its Notes and Supplementary Provisions, and the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 and with the WTO Agreement on Subsidies and Countervailing Measures.
2. This article shall not be subject to the provisions of Section VI of Title II of this Agreement.
Article 19. Safeguard Measures
1. Nothing in this Agreement shall prevent the Parties from adopting measures in accordance with Article XIX of the GATT 1994 and the WTO Agreement on Safeguards.
2. This article shall not be subject to the provisions of Section VI of Title II of this Agreement.
Chapter III. Exceptions
Article 20. General Exceptions
The provisions of Article XX of the GATT 1994, including its Notes and Supplementary Provisions, and of Article XXI of the GATT 1994, which are incorporated into and made part of this Agreement, shall apply between the Parties, mutatis mutandis.
Chapter IV. Non-tariff Issues
Article 21. Industrial Standards and Conformity Assessment, Technical Regulations
1. Relationship with the WTO Agreement on Technical Barriers to Trade
The provisions of the WTO Agreement on Technical Barriers to Trade (hereinafter referred to as the "TBT Agreement"), which is incorporated into and made part of this Agreement, shall apply between the Parties, mutatis mutandis.
2. Scope and coverage
The provisions of this Chapter shall apply to the preparation, adoption and application of technical regulations, standards and conformity assessment procedures, as defined in the TBT Agreement.
3. Objectives
The objectives of cooperation in the areas of technical regulations, standards and conformity assessment procedures between the Parties shall be:
(a) to avoid or reduce technical barriers to trade, in order to facilitate trade between the Parties;
(b) to enhance access for products to each other's markets through improvements in safety, quality and competitiveness of products;
(c) to promote a greater use of international technical regulations, standards and conformity assessment procedures, including sector specific measures, and the use of international best practices for drawing them up;
4. Technical regulations, standards and conformity assessment procedures