The Parties shall conclude agreements in order:
(i) to adopt, subject to the conditions and modalities applicable in each Member State, the provisions necessary for the coordination of Social Security systems for workers of Moldovan nationality, legally employed in the territory of a Member State. These provisions will in particular ensure that:
- 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 in respect of old age, invalidity and death and for the purpose of medical care for such workers;
- Any pensions in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of the special non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;
(ii) to adopt, subject to the conditions and modalities applicable in the Republic of Moldova, the provisions necessary to accord to workers who are nationals of a Member State and legally employed in the Republic of Moldova, treatment similar to that specified in the second indent of paragraph (i).
Article 25.
The measures to be taken in accordance with Article 24 shall not affect any rights or obligations arising from bilateral agreements linking the Republic of Moldova and the Member States where those agreements provide for more favourable treatment of nationals of the Republic of Moldova or of the Member States.
Article 26.
The Cooperation Council shall examine which joint efforts can be made to control illegal immigration, taking into account the principle and practice of readmission.
Article 27.
The Cooperation Council shall examine which improvements can be made in working conditions for business people consistent with the international commitments of the Parties, including those set out in the document of the CSCE Bonn Conference.
Article 28.
The Cooperation Council shall make recommendations for the implementation of Articles 23, 26 and 27.
Article 29.
1. (a) The Community and its Member States shall grant for the establishment of Republic of Moldovan companies in their territories treatment no less favourable than that accorded to companies of any third country, and this in conformity with their legislation and regulations.
(b) Without prejudice to the reservations listed in Annex IV, the Community and its Member States shall grant to subsidiaries of Moldovan companies established in their territories a treatment no less favourable than that granted to any Community companies, in respect of their operation, and this in conformity with their legislation and regulations.
(c) The Community and its Member States shall grant to branches of Moldovan companies established in their territories treatment no less favourable than that accorded to branches of companies of any third country, in respect of their operation, and this in conformity with their legislation and regulations.
2. (a) Without prejudice to the reservations listed in Annex V, the Republic of Moldova shall
Grant for the establishment of Community companies in its territory, treatment no less favourable than that accorded to its own companies or to companies of any third country whichever is the better, and this in conformity with its legislation and regulations.
(b) The Republic of Moldova shall grant to subsidiaries and branches of Community companies, established in its territory, treatment no less favourable than that accorded to its own companies or branches respectively or to companies or branches of any third country respectively, whichever is the better, in respect of their operations, and this in conformity with its legislation and regulations.
3. The provisions of paragraphs 1 and 2 cannot be used so as to circumvent a Party's legislation and regulations applicable to access to specific sectors or activities by subsidiaries of companies of the other Party established in the territory of such first Party.
The treatment referred to in paragraph 1 and 2 shall benefit companies established in the Community and the Republic of Moldova respectively at the date of entry into force of this Agreement and companies established after that date once they are established.
Article 30.
1. The provisions of Article 29 shall not apply to air transport, inland waterways transport and maritime transport, without prejudice to the provisions of Article 101.
2. However, in respect of activities undertaken by shipping agencies for the provision of international maritime transport services, including intermodal activities involving a sea leg, each Party shall permit to the companies of the other Party their commercial presence in its territory in the form of subsidiaries or branches, under conditions of establishment and operation no less favourable than those accorded to its own companies or to subsidiaries or branches of companies of any third country, whichever are the better. Such activities include, but are not limited to:
(a) marketing and sales of maritime transport and related services through direct contact with customers, from quotation to invoicing, whether these services are operated or offered by the service supplier itself or by service suppliers with which the service seller has established standing business arrangements;
(b) purchase and use, on their own account or on behalf of their customers (and the resale to their customers) of any transport and related services, including inward transport services by any mode, particularly inland waterways, road and rail, necessary for the supply of an integrated service;
(c) preparation of documentation concerning transport documents, customs documents, or other documents related to the origin and character of the goods transported;
(d) provision of business information by any means, including computerised information systems and electronic data interchange (subject to any non-discriminatory restrictions concerning telecommunications);
(e) setting up of any business arrangement, including participation in the company's stock and the appointment of personnel recruited locally (or, in the case of foreign personnel, subject to the relevant provisions of this Agreement), with any locally established shipping agency;
(f) acting on behalf of the companies, organising the call of the ship or taking over cargoes when required.
Article 31.
For the purposes of this Agreement:
(a) A "Community company" or a "Moldovan company" respectively shall mean a company set up in accordance with the laws of a Member State or of the Republic of Moldova respectively and having its registered office or central administration or principal place of business in the territory of the Community or the Republic of Moldova respectively. However, should the company, set up in accordance with the laws of a Member State or the Republic of Moldova respectively, have only its registered office in the territory of the Community or the Republic of Moldova respectively, the company shall be considered a Community or Moldovan company respectively if its operations possess a real and continuous link with the economy of one of the Member States or the Republic of Moldova respectively.
(b) "Subsidiary" of a company shall mean a company which is effectively controlled by the first company.
(c) "Branch" of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension.
(d) "Establishment" shall mean the right of Community or Moldovan companies as referred to in point (a) to take up economic activities by means of the setting up of subsidiaries and branches in the Republic of Moldova or in the Community respectively.
(e) "Operation" shall mean the pursuit of economic activities.
(f) "Economic activities" shall mean activities of an industrial, commercial and professional character.
With regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of the Republic of Moldova established outside the Community or the Republic of Moldova respectively, and shipping companies established outside the Community or the Republic of Moldova and controlled by nationals of a Member State or Moldovan nationals respectively shall also be beneficiaries of the provisions of this Chapter and Chapter III, if their vessels are registered in that Member State or in the Republic of Moldova respectively in accordance with their respective legislations.
Article 32.
1. Notwithstanding any other provisions of the Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the obligations of a Party under the Agreement.
2. Nothing in the Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.
Article 33.
The provisions of this Agreement shall not prejudice the application by each Party of any measure necessary to prevent the circumvention of its measures concerning third country access to its market, through the provisions of this Agreement.
Article 34.
1. Notwithstanding the provisions of Chapter I, a Community company or a Moldovan company established in the territory of the Republic of Moldova or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of the Republic of Moldova and the Community respectively, employees who are nationals of Community Member States and the Republic of Moldova respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by companies, subsidiaries or branches. The residence and work permits of such employees shall only cover the period of such employment.
2. Key personnel of the abovementioned companies herein referred to as "organizations" are "intra-corporate transferees" as defined in (c) in the following categories, provided that the organization is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:
(a) Persons working in a senior position with an organization, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent, including:
- Directing the establishment or a department or sub-division of the establishment;
- Supervising and controlling the work of other supervisory, professional or managerial employees;
- Having the authority personally to engage and dismiss or recommend engaging, dismissing or other personnel actions.
(b) Persons working within an organization who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession.
(c) An "intra-corporate transferee" is defined as a natural person working within an organization in the territory of a Party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other Party; the organization concerned must have its principal place of business in the territory of a Party and the transfer be to an establishment (branch, subsidiary) of that organization, effectively pursuing like economic activities in the territory of the other Party.
Article 35.
1. The Parties shall use their best endeavours to avoid taking any measures or actions which render the conditions for the establishment and operation of each other's companies more restrictive than the situation existing on the day preceding the date of signature of the Agreement.
2. The provisions of this Article are without prejudice to those of Article 43: the situations covered by such Article 43 shall be solely governed by its provisions to the exclusion of any other.
3. Acting in the spirit of partnership and cooperation and in light of provisions contained in Article 50, the Government of the Republic of Moldova shall inform the Community of its intentions to submit new legislation or adopt new regulations which may render the conditions for the establishment or operation in the Republic of Moldova of subsidiaries and branches of Community companies more restrictive than the situation existing on the day preceding the date of signature of the Agreement. The Community may request the Republic of Moldova to communicate the drafts of such legislation or regulations and to enter into consultations about those drafts.
4. Where new legislation or regulations introduced in the Republic of Moldova would result in rendering the conditions for establishment of Community companies into its territory and for the operation of subsidiaries and branches of Community companies established in the Republic of Moldova more restrictive than the situation existing on the day of signature of the Agreement, such respective legislation or regulations shall not apply during three years following the entry into force of the relevant act to those subsidiaries and branches already established in the Republic of Moldova at the time of entry into force of the relevant act.
Article 36.
1. The Parties undertake in accordance with the provisions of this Chapter to take the necessary steps to allow progressively the cross-border supply of services by Community or Moldovan companies which are established in a Party other than that of the person for whom the services are intended, taking into account the development of the services sectors in the Parties.
2. The Cooperation Council shall make recommendations for the implementation of paragraph 1.
Article 37.
The Parties shall cooperate with the aim of developing a market-oriented service sector in the Republic of Moldova.
Article 38.
1. The Parties undertake to apply effectively the principle of unrestricted access to the international maritime market and traffic on a commercial basis.
(a) The above provision does not prejudice the rights and obligations arising from the United Nations Convention on a Code of Conduct for Liner Conferences, as applicable to one or other Contracting Party to this Agreement. Non-conference lines will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis.
(b) The Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.
2. In applying the principles of paragraph 1, the Parties shall:
(a) not apply, as from entry into force of this agreement, any cargo sharing provisions of bilateral agreements between any Member State of the Community and the former Soviet Union;
(b) not introduce cargo sharing clauses in future bilateral agreements with third countries, other than in those exceptional circumstances where liner shipping companies from one or other Party to the present agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;
(c) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and liquid bulk trade;
(d) abolish, upon entry into force of this Agreement, all unilateral measures, administrative, technical and other obstacles which could have restrictive or discriminatory effects on the free supply of services in international maritime transport.
Each Party shall grant, inter alia, no less favourable treatment for the ships operated by nationals or companies of the other Party, than that accorded to a Party's own ships with regard to access to ports open to international trade, the use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.
3. Nationals and companies of the Community providing international maritime transport services shall be free to provide international sea-river services in the inland waterways of the Republic of Moldova and vice versa.
Article 39.
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 as defined in Article 96 after entry into force of this Agreement.
Article 40.
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 41.
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 the Agreement. The above provision does not prejudice the application of Article 40.
Article 42.
Companies which are controlled and exclusively owned by Moldovan companies and Community companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV.
Article 43.
Treatment granted by either Party to the other hereunder 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 44.
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 Moldova pursuant to commitments entered into in economic integration agreements in accordance with the principles of Article V of the GATS.
Article 45.
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 Moldova from distinguishing, in the application of the relevant provisions of their fiscal legislation, between taxpayers who are not in identical situations, in particular as regards their place of residence.
Article 46.
Without prejudice to Article 34, no provision of Chapters II, III and IV hereof shall be interpreted as giving the right to:
- Nationals of the Member States or of the Republic of Moldova respectively to enter, or stay in, the territory of the Republic of Moldova or the Community respectively in any capacity whatsoever, and in particular as a shareholder or partner in a company or manager or employed thereof or supplier or recipient of services;
- Community subsidiaries or branches of Moldovan companies to employ or have employed in the territory of the Community nationals of the Republic of Moldova;
- Moldovan subsidiaries or branches of Community companies to employ or have employed in the territory of Moldova nationals of the Member States;
- Moldovan companies or Community subsidiaries or branches of Moldovan companies to supply Moldovan persons to act for and under the control of other persons by temporary employment contracts;
- Community companies or Moldovan subsidiaries or branches of Community companies to supply workers who are nationals of the Member States by temporary employment contracts.
Article 47.
1. The Parties undertake to authorize in freely convertible currency, any payments on the current account of balance of payments between residents of the Community and of the Republic of Moldova 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 the 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 of Title IV, 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 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 Moldova 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 between the Community and the Republic of Moldova, in order to promote the objectives of this Agreement.
5. With reference to the provisions of this Article, until a full convertibility of the Moldovan currency within the meaning of Article VIII of the Articles of Agreement of the International Monetary Fund (IMF) is introduced, the Republic of Moldova 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 Moldova for the granting of such credits and are permitted according to the Republic of Moldovas' status under the IMF. The Republic of Moldova 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 Moldova 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 Moldova cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or the Republic of Moldova, the Community and the Republic of Moldova, respectively, may take safeguard measures with regard to movements of capital between the Community and the Republic of Moldova for a period not exceeding six months if such measures are strictly necessary.
Article 48.
1. The Parties agree to work to remedy or remove through the application of their competition laws or otherwise, restrictions on competition by enterprises or caused by State intervention insofar as they may affect trade between the Community and the Republic of Moldova.
2. In order to attain the objectives mentioned in paragraph 1:
2. 1. The Parties shall ensure that they have and enforce laws addressing restrictions on competition by enterprises within their jurisdiction.
2. 2. The Parties shall refrain from granting State aids favouring certain undertakings or the production of goods other than primary products as defined in the GATT, or the provision of services, which distort or threaten to distort competition insofar as they affect trade between the Community and the Republic of Moldova.
2. 3. Upon request by one Party, the other Party shall provide information on its aid schemes or on particular individual cases of State aid. No information needs to be provided which is covered by legislative requirements of the Parties on professional or commercial secrets.
2. 4. In the case of State monopolies of a commercial character, the Parties declare their readiness, as from the fourth year from the date of entry into force of their Agreement, to ensure that there is no discrimination between nationals of the Parties regarding the conditions under which goods are procured or marketed.
2. 5. In the case of public undertakings or undertakings to which Member States or the Republic of Moldova grant exclusive rights, the Parties declare their readiness, as from the fourth year from the date of entry into force of this Agreement, to ensure that there is neither enacted nor maintained any measure distorting trade between the Community and the Republic of Moldova to an extent contrary to the Parties' respective interests. This provision shall not obstruct the performance, in law or fact, of the particular tasks assigned to such undertakings.
2. 6. The period defined in paragraphs 2.4 and 2.5 may be extended by agreement of the Parties.
3. Consultations may take place within the Cooperation Committee at the request of the Community or the Republic of Moldova on the restrictions or distortions of competition referred to in paragraphs 1 and 2 and on the enforcement of their competition rules, subject to limitations imposed by laws regarding disclosure of information, confidentiality and business secrecy. Consultations may also comprise questions on the interpretation of paragraphs 1 and 2.
4. The Parties with experience in applying competition rules shall give full consideration to providing other Parties, upon request and within available resources, technical assistance for the development and implementation of competition rules.
5. The above provisions in no way affect the Parties' rights to apply adequate measures, notably those referred to in Article 18, in order to address distortions of trade in goods or services.
Article 49.
1. Pursuant to the provisions of this Article and of Annex III, the Republic of Moldova 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 the Agreement for a level of protection similar to that existing in the Community, including effective means of enforcing such rights.
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 Moldova and its established co-ordination and implementation procedures.
6. The Cooperation Council shall make recommendations as to the development of cooperation in fields identified in paragraph 3.
Article 52. Industrial Cooperation
1. Cooperation shall aim at promoting the following in particular:
- The development of business links between economic operators of both sides, e.g. in view of the transfer of technologies and know-how;
- Community participation in the Republic of Moldova's efforts to restructure and technically upgrade its industry;
- The improvement of management;
- The development of appropriate commercial rules and practices, including product marketing;
- Environmental protection.
- Adaptation of the structure of industrial production to the standards of an advanced market economy;
- The conversion of the military-industrial complex.
2. The provisions of this article shall not affect the enforcement of Community competition rules applicable to undertakings.
Article 53. 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 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 particular aims of cooperation shall be:
- The conclusion, where appropriate, between the Member States and the Republic of Moldova, of agreements for the promotion and protection of investment;
- The conclusion, where appropriate, between the Member States and the Republic of Moldova, of agreements to avoid double taxation;
- The creation of favourable conditions for attracting foreign investments into the Moldovan 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 54. 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 55. Cooperation In the Field of Standards and Conformity Assessment
1. Cooperation between the Parties shall promote alignment with internationally agreed
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Criteria, principles and guidelines followed in the field of standards and conformity assessment.
The required actions will facilitate progress towards mutual recognition in the field of
Conformity assessment, as well as the improvement of Moldovan product quality.
The Parties shall cooperate to develop conditions for open and competitive award of contracts for goods and services in particular through calls for tenders.