Title
Agreement on partnership and cooperation establishing a partnership between the European Communities and their Member States, of one part, and the Russian Federation, 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 PORTUGUESE REPUBLIC,
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, and the Treaty establishing the European Atomic Energy Community, hereinafter referred to as 'Member States', and
The EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and
The EUROPEAN ATOMIC ENERGY COMMUNITY,
Hereinafter referred to as 'the Community',
Of the one part, and
The RUSSIAN FEDERATION,
Hereinafter referred to as 'Russia',
Of the other part,
CONSIDERING the importance of the historical links existing between the Community, its Member States and Russia and the common values that they share,
RECOGNIZING that the Community and Russia wish to strengthen these links and to establish partnership and cooperation which would deepen and widen the relations established between them in the past in particular by the Agreement between the European Economic Community and the European Atomic Energy Community and the Union of Soviet Socialist Republics on Trade and Commercial and Economic Cooperation, signed on 18 December 1989, hereinafter referred to as the '1989 Agreement',
CONSIDERING the commitment of the Community and its Member States acting in the framework of the European Union by the Treaty on European Union of 7 February 1992 and of Russia to strengthening the political and economic freedoms which constitute the very basis of the partnership,
CONSIDERING the commitment of the Parties to promote international peace and security as well as the peaceful settlement of disputes and to cooperate to this end in the framework of the United Nations and the Conference on Security and Cooperation in Europe and other fora,
CONSIDERING the firm commitment of the Community and its Member States and of Russia to the full implementation of all principles and provisions contained in the Final Act of
The Conference on Security and Cooperation in Europe (CSCE), the concluding documents of the Madrid and Vienna follow-up meetings, the document of the CSCE Bonn Conference on Economic Cooperation, the Charter of Paris for a New Europe and the CSCE Helsinki document 1992, 'the challenges of change',
CONFIRMING the attachment of the Community and its Member States and of Russia to the aims and principles set out in the European Energy Charter of 17 December 1991 and in the declaration of the Lucerne Conference of April 1993,
CONVINCED of the paramount importance of the rule of law and respect for human rights, particularly those of minorities, the establishment of a multi-party system with free and democratic elections and economic liberalization aimed at setting up a market economy,
BELIEVING that the full implementation of partnership presupposes the continuation and accomplishment of Russia's political and economic reforms,
DESIROUS of encouraging the process of regional cooperation in the areas covered by this Agreement between the countries of the former USSR in order to promote the prosperity and stability of the region,
DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,
TAKING ACCOUNT of the Community's willingness to provide technical assistance, as appropriate, for the implementation of economic reform in Russia and for the development of economic cooperation,
BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between Russia and a wider area of cooperation in Europe and neighbouring regions and Russia's progressive integration into the open international trading system,
CONSIDERING the commitment of the Parties to liberalize trade, based on the principles contained in the General Agreement on Tariffs and Trade hereinafter referred to as 'GATT', as amended by the Uruguay Round trade negotiations, and taking into account the establishment of the World Trade Organization, hereinafter referred to as 'WTO',
RECOGNIZING that Russia is no longer a state trading country, that it is now a country with an economy in transition and that continued progress towards a market economy will be fostered by cooperation between the Parties in the forms set out in this Agreement,
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,
CONVINCED that this Agreement will create a new climate for economic relations between the Parties and in particular for the development of trade and investment, which are essential to economic restructuring and technological modernization,
DESIROUS of establishing close cooperation in the area of environmental protection taking into account the interdependence existing between the Parties in this field,
BEARING in mind the intention of the Parties to develop their cooperation in the space field in view of the complementary of their activities in this area,
DESIROUS of promoting cultural cooperation and improving the flow of information, HAVE AGREED AS FOLLOWS:
Body
Article 1.
A Partnership is hereby established between the Community and its Member States, of the one part, and Russia, of the other part. The objectives of this Partnership are:
- To provide an appropriate framework for the political dialogue between the Parties allowing the development of close relations between them in this field,
- To promote trade and investment and harmonious economic relations between the Parties based on the principles of market economy and so to foster sustainable development in the Parties,
- To strengthen political and economic freedoms,
- To support Russian efforts to consolidate its democracy and to develop its economy and to complete the transition into a market economy,
- To provide a basis for economic, social, financial and cultural cooperation founded on the principles of mutual advantage, mutual responsibility and mutual support,
- To promote activities of joint interest,
- To provide an appropriate framework for the gradual integration between Russia and a wider area of cooperation in Europe,
- To create the necessary conditions for the future establishment of a free trade area between the Community and Russia covering substantially all trade in goods between them, as well as conditions for bringing about freedom of establishment of companies, of cross-border trade in services and of capital movements.
Article 2.
Respect for democratic principles and human rights as defined in particular in the Helsinki Final Act and the Charter of Paris for a new Europe, underpins the internal and external policies of the Parties and constitutes an essential element of partnership and of this Agreement.
Article 3.
The Parties undertake to consider development of the relevant titles of this Agreement, in particular Title III and Article 53, as circumstances allow, with a view to the establishment of a free trade area between them. The Cooperation Council may make recommendations on such development to the Parties. Such development shall only be put into effect by virtue of an agreement between the Parties in accordance with their respective procedures. The Parties shall examine together in the year 1998 whether circumstances allow the beginning of negotiations on the establishment of a free trade area.
Article 4.
The Parties undertake to examine together, by mutual consent, amendments which it may be appropriate to make to any part of the Agreement in view of changes in circumstances, and in particular of the situation arising from Russia's accession to the GATT/WTO. The first examination shall take place three years after the entry into force of the Agreement or when Russia accedes to the GATT/WTO, whichever is earlier.
Article 5.
1. The most-favoured-nation treatment granted by Russia under this Agreement shall not apply during a transitional period expiring five years after the entry into force of this Agreement in relation to advantages defined in Annex 1 granted by Russia to other countries of the former USSR. This period may be extended where appropriate for specific sectors by mutual consent between the Parties.
2. In the case of the most-favoured-nation treatment granted under Title III the transitional period referred to in paragraph 1 shall expire three years after the entry into force of the Agreement or when Russia accedes to the GATT/WTO, whichever is earlier.
Article 6.
A regular political dialogue shall be established between the Parties which they intend to develop and intensify. It shall accompany and consolidate the rapprochement between the European Union and Russia, support the political and economic changes underway in Russia and contribute to the establishment of new forms of cooperation. The political dialogue:
- Shall strengthen the links between Russia and the European Union. The economic convergence achieved through this Agreement will lead to more intense political relations,
- Shall bring about an increasing convergence of positions on international issues of mutual concern thus increasing security and stability,
- Shall foresee that the Parties endeavour to cooperate on matters pertaining to the observance of the principles of democracy and human rights, and hold consultations, if necessary, on matters related to their due implementation.
Article 7.
1. Meetings shall take place in principle twice a year between the President of the Council of the European Union and the President of the Commission of the European Communities on one side and the President of Russia on the other.
2. At ministerial level, political dialogue shall take place within the Cooperation Council established in Article 90 and on other occasions, including with the European Union troika, by mutual agreement.
Article 8.
Other procedures and mechanisms for political dialogue shall be set up by the Parties and in particular in the following forms:
- Biannual meetings at senior official level between the European Union troika on the one hand, and officials of Russia on the other
- Taking full advantage of diplomatic channels,
- Any other means, including the possibility of expert meetings, which would contribute to consolidating and developing this dialogue.
Article 9.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Cooperation Committee established in Article 95.
Article 10.
1. The Parties shall accord to one another the general most-favoured-nation treatment described in Article I, paragraph 1 of the GATT.
2. The provisions of paragraph 1 shall not apply to:
(a) advantages accorded to adjacent countries in order to facilitate frontier traffic;
(b) advantages granted with the aim of creating a customs union or a free-trade area or pursuant to the creation of such a union or area; the terms 'customs union' and 'free trade area' shall have the same meaning as those described in paragraph 8 of Article XXIV of the GATT or created through the procedure indicated in paragraph 10 of the same GATT article;
(c) advantages granted to particular countries in accordance with the GATT and with other international arrangements in favour of developing countries.
Article 11.
1. The products of the territory of one Party imported into the territory of the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products.
2. Moreover, these products shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provision of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product.
3. Article III, paragraphs 8, 9 and 10 of the GATT shall be applicable mutatis mutandis between the Parties.
Article 12.
1. The Parties agree that the principle of freedom of transit is an essential condition of attaining the objectives of this Agreement.
In this connection each Party shall provide for freedom of transit through its territory of goods originating in the customs territory or destined for the customs territory of the other Party.
2. The rules described in Article V, paragraphs 2, 3, 4 and 5 of the GATT shall be applicable between the Parties.
Article 13.
The following Articles of the GATT shall be applicable mutatis mutandis between the Parties:
1. Article VII, paragraphs 1, 2, 3, 4 (a), (b) and (d), 5;
2. Article VIII;
3. Article IX;
4. Article X.
Article 14.
Without Prejudice to the Rights and Obligations Stemming from International Conventions on the Temporary Admission of Goods Which Bind Both Parties, Each Party Shall Furthermore Grant the other Party Exemption from Import Charges and Duties on Goods Admitted Temporarily, In the instances and according to the procedures stipulated by any other international convention on this matter binding upon it, in conformity with its legislation. Such legislation shall be applied on a most-favoured-nation basis and thus subject to the exceptions listed in Article 10 (2) of this Agreement. Account shall be taken of the conditions under which the obligations stemming from such a convention have been accepted by the Party in question.
Article 15.
1. Goods originating in Russia shall be imported into the Community free of quantitative restrictions without prejudice to the provisions of Articles 17, 20 and 21 of this Agreement and to the provisions of Articles 77, 81, 244, 249 and 280 of the Act of Accession of Spain and Portugal to the Community.
2. Goods originating in the Community shall be imported into Russia free of quantitative restrictions without prejudice to the provisions of Articles 17, 20 and 21 and Annex 2 to this Agreement.
Article 16.
Until Russia accedes to the GATT/WTO, the Parties shall hold consultations in the Cooperation Committee on their import tariff policies, including changes in tariff protection. In particular, such consultations shall be offered prior to the increase of tariff protection.
Article 17.
1. Where any product is being imported into the territory of one of the Parties in such increased quantities and under such conditions as to cause or threaten to cause substantial injury to domestic producers of like or direct competitive products, the Community or Russia, whichever is concerned, may take appropriate measures in accordance with the following procedures and conditions.
2. Before taking any measures, or in cases to which paragraph 4 applies as soon as possible thereafter, the Community or Russia, as the case may be, shall supply the Cooperation Committee with all relevant information with a view to seeking a solution acceptable to both Parties. The Parties shall commence consultations promptly within the Cooperation Committee.
3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of referral to the Cooperation Committee on actions to avoid the situation, the Party which requested consultations shall be free to restrict imports of the products concerned or to adapt other appropriate measures to the extent and for such time as is necessary to prevent or remedy the injury.
4. In critical circumstances where delay would cause damage difficult to repair, the Parties may take the measures before the consultations, on the condition that consultations shall be offered immediately after taking such action.
5. In the selection of measures pursuant to this Article, the Parties shall give priority to those which cause least disturbance to the achievement of the aims of this Agreement.
6. Where a safeguard measure is taken by one Party in accordance with the provisions of this Article, the other Party shall be free to deviate from its obligations under this Title towards the first Party in respect of substantially equivalent trade.
Such action shall not be taken before consultations have been offered by such other Party nor if agreement has been reached within 45 days following the date these consultations were offered.
7. The right of deviation from the obligations referred to in paragraph 6 shall not be exercised for the first three years that a safeguard measure is in effect, provided that the safeguard measure has been taken as a result of an absolute increase in imports, for the maximum period
Of four years, and in conformity with the provisions of this Agreement.
Article 18.
Nothing in this Title, and in Article 17 in particular, shall prejudice or affect in any way the taking, by either Party, of anti-dumping or countervailing measures in accordance with Article VI of the GATT, the Agreement on implementation of Article VI of the GATT, the Agreement on interpretation and application of Articles VI, XVI and XXIII of the GATT or related internal legislation.
In respect of anti-dumping or subsidy investigations, each Party agrees to examine submissions by the other Party and to inform the interested parties concerned of the essential facts and considerations on the basis of which a final decision is to be made. Before definitive anti-dumping and countervailing duties are imposed, the Parties shall do their utmost to bring about a constructive solution to the problem.
Article 19.
The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection on health and life of humans, animals or plants; the protection of natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 20.
This Title shall not affect the provisions of the Agreement between the European Economic Community and the Russian Federation on trade in textile products initialled on 12 June 1993 and applied with retroactive effect as from 1 January 1993. Furthermore, Article 15 of this Agreement shall not apply to trade in textile products falling within Chapters 50 to 63 of the combined nomenclature.
Article 21.
1. Trade in products covered by the Treaty establishing the European Coal and Steel Community shall be governed by:
- The provisions of this Title, with the exception of Article 15, and
- Upon its entry into force, by the provisions of the agreement on quantitative arrangements concerning exchanges of ECSC steel products.
2. The establishment of a contact group on coal and steel matters is governed by Protocol 1 annexed to this Agreement.
Article 22. Trade In Nuclear Materials
1. Trade in nuclear materials shall be covered by:
- The provisions of this Agreement with the exception of Articles 15 and 17 (1) to (5) and (7),
- The provisions of Articles 6, 7, 14 and 15 (1), (2), and (3), first sentence, and (4) and (5) of the 1989 Agreement,
- The attached exchange of letters.
2. Notwithstanding the provisions of paragraph 1 of this Article, the Parties agree to take all necessary steps to arrive at an arrangement covering trade in nuclear materials by 1 January 1997.
3. Until such an arrangement is reached, the provisions of this Article will continue to apply.
4. Steps will be taken to conclude an agreement regarding nuclear safeguards, physical protection and administrative cooperation in transfers of nuclear materials. Until such an agreement is in force, the respective legislation and international non-proliferation obligations of the Parties will be applicable as regards the transfer of nuclear materials.
5. For the purpose of the application of the regime provided for in paragraph 1:
- The reference in Articles 6 and 15 (5) of the 1989 Agreement to 'this Agreement' shall be read as meaning the regime established by paragraph 1 of this Article,
- The reference in Article 17 (6) of this Agreement to 'this Article' shall be read as meaning Article 15 of the 1989 Agreement,
- The reference in Articles 6, 7, 14 and 15 of the 1989 Agreement to the 'Contracting Parties' shall be read as meaning the Parties to this Agreement,
- The reference to the 'Joint Committee' in Article 15 of the 1989 Agreement shall mean the Cooperation Committee provided for pursuant to Article 92 of this Agreement.
Part IV. Provisions on Business and Investment
Article 23.
1. Subject to the laws, conditions and procedures applicable in each Member State, the Community and its Member States shall ensure that the treatment accorded to Russian nationals, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals.
2. Russia shall, subject to the conditions and modalities applicable in Russia, accord the treatment referred to in paragraph 1 to nationals of a Member State who are legally employed in its territory.
Article 24. Coordination of Social Security
The Parties shall conclude agreements in order:
1. 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 Russian nationality, legally employed in the territory of a Member State and where applicable for the members of their family, legally resident there. 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 and where applicable for such family members,
- 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,
- The workers in question shall where applicable receive family allowances for the abovementioned members of their family.
2. to adopt, subject to the conditions and modalities applicable in Russia, the provisions necessary to accord to workers who are nationals of a Member State and legally employed in Russia, and to members of their families legally resident there, treatment similar to that
Specified in the second and third indents of paragraph 1.