Article 108.
Estonia shall participate in framework programmes, specific programmes, projects or other actions of the Community in the fields laid down in Annex X. Without prejudice to the existing participation of Estonia in the activities referred to in Annex X, the Association Council shall decide the terms and conditions for the participation of Estonia in these activities. The financial contribution of Estonia to the activities referred to in Annex X shall be based on the principle that Estonia shall meet the costs resulting from its participation itself. If necessary, the Community may decide, on a case-by-case basis, and pursuant to the rules applicable to the general budget of the European Communities, to pay a supplement to Estonia's contribution.
Title X. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 109.
An Association Council is hereby established which shall supervise the implementation of this Agreement. It shall meet at ministerial level once a year and when circumstances require. It shall examine any major issues arising within the framework of the Agreement and any other bilateral or international issues of mutual interest.
Article 110.
1. The Association Council shall consist of the members of the Council of the European Union and members of the Commission of the European Communities, on the one hand, and of members appointed by the Government of Estonia, on the other.
2. Members of the Association Council may arrange to be represented, in accordance with the conditions to be laid down in its rules of procedure.
3. The Association Council shall establish its rules of procedures at its first meeting.
4. The Association Council shall be presided in turn by a member of the Council of the European Union and a member of the Government of Estonia, in accordance with the provisions to be laid down in its rules of procedure.
5. Where appropriate, the EIB will take part, as an observer, in the work of the Association Council.
Article 111.
The Association Council shall, for the purpose of attaining the objectives of the Agreement, have the power to take decisions in the cases provided for therein. The decisions taken shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Association Council may also make appropriate recommendations.
It shall draw up its decisions and recommendations by agreement between the two Parties.
Article 112.
1. Each of the two Parties may refer to the Association Council any dispute relating to the application or interpretation of this Agreement.
2. The Association Council may settle the dispute by means of a decision.
3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2 of this Article, either Party may notify the other of the appointment of an arbitrator; the other Party must the appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.
The Association Council shall appoint a third arbitrator.
The arbitrators' decisions shall be taken by majority vote.
Each Party to the dispute must take the steps required to implement the decision of the arbitrators.
Article 113.
1. The Association Council shall be assisted in the performance of its duties by an Association Committee composed of representatives of the members of the Council of the European Union and of members of the Commission of the European Communities on the one hand of representatives of the Government of Estonia on the other, normally at senior civil servant level.
In its rules procedure the Association Council shall determine the duties of the Association Committee, which shall include the preparation of meetings of the Association Council and how the Committee shall function.
2. The Association Council may delegate to the Association Committee any of its powers. In this event the Association Committee shall take its decisions in accordance with the conditions laid down in Article 111.
Article 114.
The Association Council may decide to set up any other special committee or body that can assist it in carrying out its duties.
In its rules of procedure, the Association Council shall determine the composition and duties of such committees or bodies and how they shall function.
Article 115.
A Parliamentary Committee is hereby established. It shall be a forum for members of the Parliament of Estonia and the European Parliament to meet and exchange views. It shall meet at intervals which it shall itself determine.
Article 116.
1. The Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Parliament of Estonia, on the other.
2. The Parliamentary Committee shall establish its rules of procedure.
3. The Parliamentary Committee shall be presided in turn by the European Parliament and the Parliament of Estonia, in accordance with the provisions to be laid down in its rules of procedure.
Article 117.
The Parliamentary Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall then supply the Committee with the requested information.
The Parliamentary Committee shall be informed of the decisions of the Association Council.
The Parliamentary Committee may make recommendations to the Association Council.
Article 118.
Within the scope of this Agreement, each Party undertakes to ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights and their property rights, including those concerning intellectual, industrial and commercial property.
Article 119.
Nothing in this Agreement shall prevent a Party from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;
(b) which relate to the production of, or trade in, arms, ammunition or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security;
(d) which it considers necessary to respect its international obligations and commitments on the control of dual-use industrial goods and technologies.
Article 120.
1. In the fields covered by this Agreement and without prejudice to any special provisions contained therein:
- the arrangements applied by Estonia in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or branches,
- the arrangements applied by the Community in respect of Estonia shall not give rise to any discrimination between Estonian nationals or its companies or branches.
2. The provisions of paragraph 1 are without prejudice to the right of the Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence.
Article 121.
Products originating in Estonia shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves.
The treatment granted to Estonia under Title IV and Chapter I of Title V shall not be more favourable than that accorded by Member States among themselves.
Article 122.
1. The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Association Council with all relevant information required for a through examination of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other Party so requests.
Article 123.
The present Agreement shall not, until equivalent rights for individuals and economic operators have been achieved under the present Agreement, affect rights assured to them through agreements binding one or more Member States, on the one hand, and Estonia, on the other, except for sectors of Community competence and without prejudice to Member States' obligations resulting from this Agreement in sectors of their competence.
Article 124.
For the purposes of this Agreement, the term 'Parties` shall mean the Community, or its Member States, or the Community and its Member States, in accordance with their respective powers, of the one part, and Estonia, of the other part.
Article 125.
Protocols 1 to 5 and Annexes I to X shall form an integral part of this Agreement.
Article 126.
This Agreement is concluded for an unlimited period.
Either Party may denounce this Agreement by notifying the other Party. This Agreement will cease to apply six months after the date of such notification.
Article 127.
The General Secretariat of the Council of the European Union shall be the depository of the Agreement.
Article 128.
This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Community, the European Atomic Energy Community and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of the Republic of Estonia.
Article 129.
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Estonian languages, each of these texts being equally authentic.
Article 130.
This Agreement will be approved by the Parties in accordance with their own procedures.
This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.
Upon its entry into force, this Agreement shall replace the Agreement between the European Economic Community and the Republic of Estonia on trade and economic and commercial cooperation signed in Brussels on 11 May 1992.
The present Agreement is partly based on, further develops and incorporates the essential provisions of the Agreement between the European Community, the European Atomic Energy Community and the European Coal and Steel Community and the Republic of Estonia on Free Trade and Trade-Related Matters signed on 18 July 1994. Upon its entry into force, this Agreement shall replace the Agreement on Free Trade and Trade-Related Matters.
The decisions of the Joint Committee established by the Agreement on trade and economic and commercial cooperation and which performs also the duties assigned by the Agreement on Free Trade and Trade-Related Matters shall continue to apply until repealed by decisions of the Association Council.
The Association Council shall adopt at its first meeting all the modifications to this Agreement - in particular to the Protocols and Annexes - necessary to align it with changes to the Agreement on Free Trade and Trade-Related Matters decided by the Joint Committee between the signature and the entry into force of this Agreement.
Conclusion
Done at Luxembourg on the twelfth day of June in the year one thousand nine hundred and ninety-five.
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