Title
EUROPE AGREEMENT establishing an association between the European Communities and their Member States, acting within the framework of the European Union, of the one part, and the Republic of Slovenia, 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, the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Atomic Energy Community, and the Treaty on European Union, hereinafter referred to as 'Member States`, and
THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as the 'Community`,
acting within the framework of the European Union,
of the one part, and
THE REPUBLIC OF SLOVENIA, hereinafter referred to as 'Slovenia`,
of the other part,
CONSIDERING the importance of the established links existing between the parties and the common values that they share;
RECOGNISING that the Community and Slovenia wish to strengthen those links and to establish close and lasting relations, based on reciprocity and shared interests, which would allow Slovenia to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Cooperation Agreement and the Protocol on financial cooperation between the European Economic Community and the Republic of Slovenia signed on 5 April 1993, which entered into force on 1 September 1993 and the Agreement between the Member States of the European Coal and Steel Community and the European Coal and Steel Community, of the one part, and the Republic of Slovenia, of the other part, signed on 5 April 1993;
CONSIDERING that the relationship between the parties in the field of inland transport should continue to be governed by the Agreement between the European Economic Community and the Republic of Slovenia in the field of transport, signed on 5 April 1993, which entered into force on 29 July 1993;
CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in Slovenia;
CONSIDERING the commitment of the parties to strengthening the political and economic freedoms which constitute the very basis of the Association;
RECOGNISING the establishment in Slovenia of a new political order which respects the rule of law and human rights, including the rights of persons belonging to minorities, and operates a multi-party system with free and democratic elections;
ACKNOWLEDGING the readiness of the Community to contribute to the strengthening of this new democratic order as well as to support the creation in Slovenia of a new economic order founded upon the principles of a free market economy;
CONSIDERING the firm commitment of the parties to the full implementation of all principles and provisions of CSCE process contained in particular in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the Helsinki document 1992 and the Budapest Summit 1994 and the Charter of Paris for a New Europe;
CONSCIOUS of the importance of this Europe Agreement, hereinafter referred to as the 'Agreement`, for establishing in Europe a system of stability based on cooperation, with the European Union as one of the cornerstones;
BELIEVING that a link should be made between full implementation of association on the one hand and the actual accomplishment of Slovenia's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the rapprochement between the parties' systems, notably in the light of the conclusions of the CSCE Bonn Conference;
DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest;
RECOGNISING the contribution which the Pact on Stability in Europe can make to promoting stability and good neighbourly relations in the region and conforming their determination to work together for the success of this initiative;
TAKING ACCOUNT of the Community's willingness to provide decisive support for the implementation of reform and to help Slovenia cope with the economic and social consequences of structural readjustment;
TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a comprehensive and multiannual basis;
CONSIDERING the commitment of the parties to free trade, based on the principles set out in General Agreement on Tariffs and Trade 1994, hereinafter referred to as the 'GATT 1994`, as amended by the Uruguay Round trade negotiations, and taking account of the establishment of the World Trade Organization, hereinafter referred to as the 'WTO`;
CONSIDERING the commitment of the Community and Slovenia to the principles set out in the European Energy Charter of 17 December 1991 and in the Final Statement of the Lucerne Conference of April 1993;
BEARING IN MIND the economic and social disparities between the Community and Slovenia and thus recognising that the objectives of this Association should be reached through appropriate provisions of this Agreement;
RECALLING the objectives of the Agreements signed at Osimo in November 1975 by the Italian Republic and the Socialist Federal Republic of Yugoslavia and succeeded to by the Republic of Slovenia, and in particular of the Agreement on the promotion of the economic cooperation between the two countries;
CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernisation in Slovenia;
DESIROUS of establishing cultural cooperation and developing exchanges of information;
RECOGNISING the fact that Slovenia's ultimate objective is to accede to the European Union, and that this Association, in the view of the parties, will help Slovenia to achieve this objective;
TAKING INTO ACCOUNT the accession preparations strategy adopted by the Essen European Council of December 1994, which is being politically implemented by the creation, between the associated States and the Institutions of the European Union, of structured relations which encourage mutual trust and will provide a framework for addressing topics of common interest,
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 Slovenia of the other part.
2. The aims of this Association are:
- to provide an appropriate framework for political dialogue, allowing the development of close political relations between the parties;
- to promote the expansion of trade and harmonious economic relations between the parties and so foster dynamic economic development and prosperity in Slovenia;
- gradually to develop a free trade area covering virtually all trade between the Community and Slovenia;
- to support Slovenia's efforts to develop its economy and to complete the transition into a market economy;
- to provide an appropriate framework for Slovenia's gradual integration into the European Union. To this end, Slovenia shall work towards fulfilling the necessary conditions.
Title I. GENERAL PRINCIPLES
Article 2.
Respect for the democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Cooperation, shall form the basis of the domestic and external policies of the parties and constitute essential elements of this Agreement.
Article 3.
1. The Association shall include a transitional period of a maximum duration of six years divided into two successive stages, the first in principle lasting four years, the second two. The first stage shall begin upon the entry into force of this Agreement.
2. The Association Council established under Article 110 shall regularly examine the application of this Agreement and the accomplishment of Slovenia's economic reforms on the basis of the principles established in the preamble.
3. During the course of the twelve months preceding the expiry of the first stage, the Association Council shall meet to decide on the transition to the second stage as well as on any possible changes to be brought about as regards the content of the provisions governing the second stage. In so doing, it will take into account the results of the examination referred to in paragraph 2.
4. The two stages envisaged in paragraphs 1, 2 and 3 shall not apply to Title III.
Title II. POLITICAL DIALOGUE
Article 4.
The political dialogue between the European Union and Slovenia shall be further developed and intensified. It shall accompany and consolidate the rapprochement between the European Union and Slovenia, support the political and economic changes underway in that country or already realised, and contribute to the establishment of close links of solidarity and new forms of cooperation between the parties. The political dialogue is intended to promote in particular:
- Slovenia's full integration into the Community of democratic nations and its progressive rapprochement with the European Union;
- an increasing convergence of positions of the parties on international issues and, in particular, on those issues likely to have substantial effects on the parties;
- better cooperation in areas covered by the Common Foreign and Security Policy of the European Union;
- common views on security and stability in Europe.
Article 5.
Political dialogue shall take place within the multilateral framework and in accordance with the forms and practices established with the associated countries of central Europe.
Article 6.
1. At ministerial level, political dialogue shall take place within the Association Council, which shall have the general responsibility for any matter which the parties might wish to put to it.
2. With the agreement of the parties, other procedures for political dialogue shall be established in particular:
- meetings, where necessary, of senior officials (at the level of political directors) representing Slovenia, on the one hand, and the Presidency of the Council of the European Union and the Commission, on the other;
- taking full advantage of all diplomatic channels between the parties, including appropriate contacts in third countries and within the United Nations, the OSCE and other international fora;
- including Slovenia in the group of countries receiving regular information on the activities managed within the framework of the Common Foreign and Security Policy as well as exchanging information with a view to achieving the objectives defined in Article 4;
- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
Article 7.
Political dialogue at parliamentary level may take place within the framework of the Association Parliamentary Committee established under Article 116.
Title III. FREE MOVEMENT OF GOODS
Article 8.
1. The Community and Slovenia shall gradually establish a free trade area in a transitional period lasting a maximum of six years starting from the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and the WTO.
2. The Combined Nomenclature of goods shall be applied to the classification of goods in trade between the two parties.
3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be the duty actually applied erga omnes on the day preceding the signing of this Agreement.
4. If, after entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round, such reduced duties shall replaced the basic duty referred to in paragraph 3 as from the date when such reductions are applied.
5. The Community and Slovenia shall communicate to each other their respective basic duties.
Chapter I. INDUSTRIAL PRODUCTS
Article 9.
1. The provisions of this Chapter shall apply to products originating in the Community or Slovenia listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I.
2. The provisions of Articles 10 to 14 shall not apply to textile products nor to products covered by the Treaty establishing the European Coal and Steel Community, as specified in Articles 16 and 17.
3. Trade between the parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.
Article 10.
1. Customs duties on imports into the Community of products originating in Slovenia other than those listed in Annex II shall be abolished upon the entry into force of this Agreement.
2. Customs duties on imports into the Community of products of Slovenian origin listed in Annex II shall be suspended within the limits of annual Community tariff ceilings increasing progressively in accordance with the conditions specified in that Annex with a view to complete abolition of customs duties on imports of the products concerned on 1 January 2000.
3. Quantitative restrictions on imports into the Community and measures having equivalent effect shall be abolished on the date of entry into force of this Agreement with regard to products originating in Slovenia.
Article 11.
1. Customs duties on imports into Slovenia of goods originating in the Community other than those listed in Annexes III and IV shall be abolished upon the entry into force of this Agreement.
2. Customs duties on imports into Slovenia of products originating in the Community which are listed in Annex III shall be progressively reduced in accordance with the following timetable:
- on 1 January 1996 each duty shall be reduced to 80 % of the basic duty;
- on 1 January 1997 each duty shall be reduced to 55 % of the basic duty;
- on 1 January 1998 each duty shall be reduced to 30 % of the basic duty;
- on 1 January 1999 each duty shall be reduced to 15 % of the basic duty;
- on 1 January 2000 the remaining duties shall be abolished.
3. Customs duties on imports into Slovenia of products originating in the Community which are listed in Annex IV shall be progressively reduced in accordance with the following timetable:
- on 1 January 1996 each duty shall be reduced to 90 % of the basic duty;
- on 1 January 1997 each duty shall be reduced to 70 % of the basic duty;
- on 1 January 1998 each duty shall be reduced to 45 % of the basic duty;
- on 1 January 1999 each duty shall be reduced to 35 % of the basic duty;
- on 1 January 2000 each duty shall be reduced to 20 % of the basic duty;
- on 1 January 2001 the remaining duties shall be abolished.
4. Quantitative restrictions on imports into Slovenia of goods originating in the Community and measures having equivalent effect shall be abolished upon the entry into force of this Agreement.
Article 12.
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 13.
The Community and Slovenia shall abolish upon the entry into force of this Agreement in trade between themselves any charges having an effect equivalent to customs duties on imports.
Article 14.
1. The Community shall abolish any customs duties on exports and charges having equivalent effect upon the entry into force of this Agreement.
Slovenia shall abolish customs duties on exports and charges having equivalent effect upon entry into force of this Agreement except for the products listed in Annex XII where the abolition will take place in accordance with the timetable set out in that Annex.
2. The Community and Slovenia shall abolish between themselves any quantitative restrictions on exports and measures having equivalent effect upon the entry into force of this Agreement.
Article 15.
Slovenia declares its readiness to reduce its customs duties in trade with the Community more rapidly than is provided for in Article 11 if its general economic situation and the situation of the economic sector concerned so permit.
The Community declares its readiness in similar circumstances to increase further or to abolish more speedly the tariff ceilings referred to in Article 10(2).
The Association Council shall 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 shall not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex V in respect of products originating in Slovenia.
2. The provisions of this Chapter shall not preclude the introduction of an agricultural component by Slovenia in the duties applicable to the products listed in Annex V 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 or Slovenia.
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 3759/92.
Article 20.
Protocol 3 lays down the trade arrangements for processed agricultural products which are listed therein.
Article 21.
1. The Community shall abolish on the date of entry into force of this Agreement the quantitative restrictions, and measures having equivalent effect, on imports of agricultural products originating in Slovenia.
2. From the date of entry into force of this Agreement, the Community shall apply to imports into its market of agricultural products originating in Slovenia the concessions listed in Annex VI.
3. Slovenia shall abolish quantitative restrictions, and measures having equivalent effect, on imports of agricultural products originating in the Community on the date of entry into force of this Agreement.
4. From the date of entry into force of this Agreement Slovenia shall apply to imports into Slovenia of products originating in the Community the concessions listed in Annex VII.
5. Taking account of the volume of trade in agricultural products between them, of its particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of the agricultural policy of Slovenia, and of the consequences of the multilateral trade negotiations under the GATT 1994 and WTO, the Community and Slovenia shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the opportunities for granting each other further concessions.
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 of the two parties, which are the subject of concessions granted pursuant to 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 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 or Slovenia which are covered by Regulation (EEC) No 3759/92 on the common organisation of the market in fishery and aquaculture products.