Title
Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, 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 REPUBLIC OF AUSTRIA,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the European Community and the Treaty establishing the European Coal and Steel Community,
hereinafter referred to as the ‘Member States’, and
THE EUROPEAN COMMUNITY,
THE EUROPEAN COAL AND STEEL COMMUNITY,
hereinafter referred to as ‘the Community’,
of the one part, and
THE HASHEMITE KINGDOM OF JORDAN,
hereinafter referred to as ‘Jordan’,
of the other part,
CONSIDERING the importance of the existing traditional links between the Community, its Member States and Jordan, and the common values that they share,
CONSIDERING that the Community, its Member States and Jordan wish to strengthen those links and to establish lasting relations based on reciprocity and partnership and to further integrate Jordan’s economy into the European economy,
CONSIDERING the importance which the Parties attach to the principles of the United Nations Charter, particularly the observance of human rights, democratic principles and political and economic freedoms which form the very basis of the Association,
CONSIDERING the political and economic developments which have taken place in Europe and in the Middle East in the past years,
CONSCIOUS of the need to associate their efforts to strengthen political stability and economic development in the region through the encouragement of regional cooperation,
DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,
CONVINCED of the need to strengthen the process of social and economic modernisation that Jordan has undertaken with the objective of the full integration of its economy in the world economies and of its participation in the community of democratic countries,
CONSIDERING the difference in economic and social development existing between Jordan and the Community,
DESIROUS of establishing cooperation, supported by a regular dialogue, in economic, scientific, technological, cultural, audiovisual and social matters with a view to improving mutual knowledge and understanding,
CONSIDERING the commitment of the Community and Jordan to free trade, and in particular to compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade (1994) (GATT),
CONVINCED that the Association Agreement will create a new climate for their economic relations and in particular for the development of trade, investment and economic and technological cooperation,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An Association is hereby established between the Community and its Member States, of the one part, and Jordan, of principles and fundamental human rights as set out in the
2. The aims of this Agreement are:
— to provide an appropriate framework for the political dialogue, allowing the development of close political
— to establish the conditions for the progressive liberalisation of trade in goods, services and capital,
— to foster the development of balanced economic and social relations between the Parties through dialogue and cooperation,
— to improve living and employment conditions, and enhance productivity and financial stability,
— to encourage regional cooperation with a view to the consolidation of peaceful coexistence and economic and political stability,
— to promote cooperation in other areas which are of particular on those issues likely to have substantial effects reciprocal interest.
Article 2.
Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect of democratic principles and fundamental human rights as set out in the universal declaration on human rights, which guides their internal and international policy and constitutes an essential element of this Agreement.
Title I. POLITICAL DIALOGUE
Article 3.
1. A regular political dialogue shall be established between the Parties. It shall strengthen their relations, contribute to the development of a lasting partnership and increase mutual understanding and solidarity.
2. The political dialogue and cooperation will in particular:
— develop better mutual understanding and an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other Party,
— enable each Party to consider the position and interests of the other,
— enhance regional security and stability,
— promote common initiatives.
Article 4.
The political dialogue shall cover all subjects of common interest, and shall aim to open the way to new forms of cooperation with a view to common goals, in particular peace, security, human rights, democracy and regional development.
Article 5.
1. The political dialogue shall facilitate the pursuit of joint initiatives and shall take place at regular intervals and whenever necessary, in particular:
(a) at ministerial level, mainly in the framework of the Association Council;
(b) at senior official level between representatives of Jordan, of the one part, and of the Presidency of the Council and of the Commission, of the other;
(c) by taking full advantage of all diplomatic channels including regular briefings by officials, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;
(d) by any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
2. There shall be a political dialogue between the European Parliament and the Jordanian Parliament.
Title II. FREE MOVEMENT OF GOODS BASIC PRINCIPLES
Article 6.
The Community and Jordan shall gradually establish a free trade area over a transitional period lasting a maximum of 12 years starting from the date of the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (1994), hereinafter referred to as the ‘GATT'.
Chapter 1. Industrial Products
Article 7.
The provisions of this chapter shall apply to products originating in the Community and Jordan other than those listed in Annex II to the Treaty establishing the European Community.
Article 8.
No new customs duties on imports, or any other charge having equivalent effect, shall be introduced on trade between the Community and Jordan.
Article 9.
Imports into the Community of products originating in Jordan shall be allowed free of customs duties and of any other charge having equivalent effect and free of quantitative restrictions and of any other measure having equivalent effect.
Article 10.
1. (a) The provisions of this chapter shall not preclude the retention by the Community of an agricultural component in respect of goods originating in Jordan and listed in Annex I.
(b) The agricultural component may take the form of a flat-rate amount or an ad valorem duty.
(c) The provisions of Chapter 2 applicable to agricul tural products shall apply mutatis mutandis to the agricultural component.
2. (a) The provisions of this chapter shall not preclude the retention by Jordan of an agricultural component in respect of goods originating in the Community and listed in Annex II.
(b) The agricultural components which, pursuant to subparagraph (a), Jordan may charge on imports from the Community shall not exceed 50 % of the basic duty rate charged on imports from countries not benefiting from preferential trading arrange ments but benefiting from most-favoured-nation treatment.
(c) If Jordan proves that the equivalence of the duties applicable to the agricultural products incorporated in the goods listed in Annex II exceed the maximum rate set out in subparagraph (b) the Association Council may agree on a higher rate.
(d) Jordan may enlarge the list of goods to which this agricultural component applies, provided the goods are included in Annex I. Before its adoption, this agricultural component shall be notified for examination to the Association Committee which may take any decision needed.
(e) For the products listed in Annex II originating in the Community, Jordan shall apply from the entry into force of the Agreement customs duties on import and charges having equivalent effect not higher than those in force on 1 January 1996.
3. As regards the industrial element of the products listed in Annex II originating in the Community, Jordan shall progressively abolish the customs duties on imports or charges having equivalent effect according to the provisions of Article 11.
4. Where, in trade between the Community and Jordan, the charge applicable to a basic agricultural product is reduced, or where such reductions are the result of mutual concessions for processed agricultural products, the agricultural components applied in conformity with paragraphs 1 and 2 may be reduced.
5. The reduction provided for in paragraph 4, the list of goods concerned and, where applicable, the tariff quotas to which the reduction refers, shall be established by the Association Council.
Article 11.
1. Customs duties and charges having equivalent effect applicable on import into Jordan of products originating in the Community, other than those listed in Annexes II, III and IV, shall be abolished upon the entry into force of this Agreement.
2. Pursuant to Article 10(2)(b) and (3), the total customs duties and charges having equivalent effect applicable on import into Jordan of processed agricultural products originating in the Community listed in Annex II shall be progressively abolished in accordance with the following schedule:
— four years after the date of entry into force of this Agreement each duty and charge shall be reduced by 10 % of the basic duty,
— five years after the date of entry into force of this Agreement each duty and charge shall be reduced by 20 % of the basic duty,
— six years after the date of entry into force of this Agreement each duty and charge shall be reduced by 30 % of the basic duty,
— seven years after the date of entry into force of this Agreement each duty and charge shall be reduced by 40 % of the basic duty,
— eight years after the date of entry into force of this Agreement each duty and charge shall be reduced by 50 % of the basic duty.
3. Customs duties and charges having equivalent effect applicable on import into Jordan of products originating in the Community listed in list A of Annex III shall be progressively abolished in accordance with the following schedule:
— on the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,
— one year after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
— two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,
— three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty,
— four years after the date of entry into force of this Agreement the remaining duty and charge shall be abolished.
4. Customs duties and charges having equivalent effect applicable on import into Jordan of products originating in the Community listed in list B of Annex III shall be progressively abolished in accordance with the following schedule:
— four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,
— five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,
— six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty,
— seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
— eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,
— nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,
— 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,
— 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty,
— 12 years after the date of entry into force of this Agreement the remaining duty and charge shall be abolished.
5. As regards the products listed in Annex IV, the arrangements to be applied shall be re-examined by the Association Council four years after the date of entry into force of the Agreement. At the time of that re-examination, the Association Council shall establish a tariff dismantling schedule for the products appearing in Annex IV.
6. In the event of serious difficulties for a given product, the relevant timetables in accordance with paragraphs 2, 3 and 4 may be reviewed by the Association Committee by common accord on the understanding that the timetable for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period of 12 years. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Jordan may suspend the timetable provisionally for a period which may not exceed one year.
7. For each product the basic duty to which the successive reductions laid down in paragraphs 2, 3 and 4 are to be applied vis-à-vis the Community on 1 January 1996.
8. If, after 1 January 1996, any tariff reduction is applied on an erga omnes basis, the reduced duties shall replace the basic duties referred to in paragraph 7 as from the date when such reductions are applied.
9. Jordan shall notify the Community of its basic duties. transitional period.
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. Exceptional measures of limited duration which derogate from the provisions of Article 11 may be taken by Jordan in the form of an increase or reintroduction of customs duties.
These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce major social problems.
Customs duties applicable on import into Jordan of 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 yearly average value of imports of the products which are subject to these measures may not exceed 20 % of the total yearly average value of imports of industrial products originating in the Community during the last three years for which statistics are available.
These measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on the expiry of the maximum transitional period of 12 years.
No such measures may be introduced in respect of a product if more than four years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having equivalent effect concerning that product.
Jordan shall inform the Association Committee of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held on such measures and the sectors to which they apply before they are implemented. When taking such measures Jordan shall provide the Committee with a timetable for the elimination of the customs duties introduced under this Article. This timetable shall provide for a phasing-out of these duties in equal annual instalments starting at the latest two years after their introduction. The Association Committee may decide on a different timetable.
2. By way of derogation from the fourth subparagraph of paragraph 1, the Association Committee may exceptionally, in order to take account of the difficulties involved in setting up a new industry and when certain sectors are undergoing restructuring or facing serious difficulties, authorise Jordan to maintain the measures already taken pursuant to paragraph 1 for a maximum period of three years beyond the 12-year transitional period.
Chapter 2. Agricultural Products
Article 14.
The provisions of this Chapter shall apply to products originating in the Community and Jordan and listed in Annex II to the Treaty establishing the European Community.
Article 15.
The Community and Jordan shall gradually implement greater liberalisation of their reciprocal trade in agricultural products.
Article 16.
1. Agricultural products originating in Jordan shall benefit on import into the Community from the provisions set out in Protocol 1.
2. Agricultural products originating in the Community shall benefit on import into Jordan from the provisions set out in Protocol 2.
Article 17.
1. From 1 January 2002, the Community and Jordan shall assess the situation with a view to determining the liberalisation measures to be applied by the Community and Jordan with effect from 1 January 2003 in accordance with the objective set out in Article 15.
2. Without prejudice to the provisions of the preceding paragraph and taking account of the patterns of trade in agricultural products between the Parties and the particular sensitivity of such products, the Community and Jordan may examine on a regular basis in the Association Council, product by product and on a reciprocal basis, the possibilities of granting each other further concessions.
Chapter 3. Common Provisions
Article 18.
1. No new quantitative restriction on imports and measures having equivalent effect shall be introduced in trade between the Community and Jordan.
2. Quantitative restrictions on imports and measures having equivalent effect on trade between the Community and Jordan shall be abolished upon the entry into force of this Agreement.
3. The Community and Jordan shall not apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures having equivalent effect.
Article 19.
1. In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned.
2. In such cases the Party concerned shall inform the Association Committee. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party.
3. If the Community or Jordan, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement.
4. The application of this Article may be the subject of consultations in the Association Council.