Chapter 5. General Provisions
Article 14.
Without prejudice to the special provisions laid down in this Convention, and particularly those of Article 3 above, each Contracting Party shall refrain from any measure or practice of an internal fiscal nature that directly or indirectly sets up any discrimination between its own products and similar products originating in the territories of the other Contracting Parties.
Title II. Financial and Technical Co-operation
Article 15.
Under the conditions determined below the Community shall participate in measures calculated to promote the economic and social development of the Associated States, by supplementing the efforts achieved by those States.
Article 16.
For the purposes set out in Article 15, and fur the duration of this Convention, an aggregate amount of 730 million units of account shall be provided as follows :
a) 669 million units of account by the Member States; this amount. to be paid into the European Development Fund, hereinafter referred to as « the Fund », shall be employed up to 629 million units of account in the form of grants and the balarx¢ in the form of loans on special terms;
b) up to 64 million units of account by the European Investment Bank. hereinafter referred to as « the Bank », in the form of Joar: granted by it under the terms set out in Protocol No. 5 concerning the administration of the financial aids, annexed to this Convention.
Article 17.
Under the terms laid down by this Convention and by Protocol No. 5, the amount fixed in Article 16 above shall be employed as fellows :
1. in the field of economic and social investments,
- for basic economic and social schemes,
- for production schemes of general interest,
- for production schemes providing normal financial returns,
- for relevant technical assistance before, during and alter such investments;
2. in the field of general technical co-operation,
- for surveying the development prospects of the economics of the Associated States,
- for staff training and vocational training programmes;
3. in the field of aids for diversification and production,
- for measures essentially intended to make marketing possible at competitive prices on the Community's markets as a whole, by encouraging, in particular, rationalization of cropping and sales methods, and by aiding producers to make the necessary adaptations;
4. in the field of price stabilization,
- for advances for the purpose of helping to alleviate the effects of temporary fluctuations in world prices.
Article 18.
Grants and loans schall be assigned as follows :
a) up to 500 million units of account for financing the measures referred to in Article 17, paragraphs 1 and 2,
b) up to 230 million units of account for financing the measures referred to in Article 17, paragraph 3.
Article 19.
The Bank loans referred to in Article 16 b) may carry a rebate on the interest. The rate of such rebates may be up to 3% on loans of a maximum duration of 25 years.
The amounts required to pay such rebates shall, so long as the Fund exists, be charged to the amount of the grants provided for in Article 16 a).
Article 20.
1. The Community may grant advances from the liquid assets of the Fund up to a ceiling of 50 million units of account for the operations provided for in Article 17, paragraph 4.
Such advances shall be granted according to the terms set out in Protocol No. 5.
Article 21.
In order to finance the measures referred to in Article 17, the Associated State or group of Associated States concerned shall, as prescribed in Protocol No. 5, open a file for each scheme or programme for which it is requesting financial assistance. It shall send this file to the Community, addressed to the Commission.
The Community shall examine the requests for financing that are brought before it by virtue of the provisions of the foregoing Article. It shall maintain such contacts with the Associated Staics concerned as it may require in order that its decisions on the schemes or programmes submitted to it may be formulated in full knowledge of the facts. The Associated State or group of Associated States concerned shall be informed of the decision taken regarding its request.
Article 23.
Aid contributed by the Community for the purpose of carrying out certain schemes or programmes may take the form of participation in financing in which, in particular, third countries, international finance organizations, or credit and development institutions and authorities, whether of the Associated States or the Member States, may take part.
Article 24.
1. The following shall be entitled to benefit from aids from the Fund :
a) as regards grants :
- for economic and social investment schemes: cither the Associated States, or legal persons who are non-profit- making in their main capacity, who have a status of general or social interest, and who are subject in those States to government inspection;
- for staff training and vocational training programmes and for economic surveys: the Governments of the Associated States specialized bodies and institutions; or on exceptional grounds, scholars and trainees;
- for aid towards production: producers;
- for aid towards diversification: the Associated States, producer groups or similar bodies approved by the Community; or, failing these, producers themselves;
b) as regards loans on special terms and rebates on interest :
- for economic and social investment schemes: either the Associated States, or legal persons who are non-profit-making in their main capacity, who have a status of general or social interest, and who are subject in those States to government inspection, or, possibly, private enterprises by special decision of the Community;
- for aid towards diversification: the Associated States, producer groups or similar bodies approved by the Community, or, failing these, producers themselves and, possibly, private enterprises by special decision of the Community.
2. Financial aids may not be used to cover current administrative, maintenance and operating expenses.
Article 25.
As regards operations financed by the Fund or by the Bank, participation in the letting out of contracts, invitations for tenders, purchasing and other contracts shall be open, on equal terms, to all naturai and legal persons who are nationals of the Member States or the Associated States.
Article 26.
The amounts allocated for financing schemes or programmes, under the provisions of this Title, shall be utilized in accordance with the purposes decided upon and shall be expended to the best economic advantage.
Article 27.
The Association Council shall lay down the general pattern for financial and technical co-operation within the framework of association, more particularly in the light of an annual report to be submitted to it by the organ responsible for administering the Community's financial and technical aid.
Article 28.
If any Associated State should fail to ratify the Convention, under the terms set out in Article 57, or denounce the Convention in accordance with Article 60, it shall then be obligatory upon the Contracting Parties to adjust the amount of financial aid fixed in Article 16 and (8.
Title III. Right of Establishment, Services, Payments and Capital
Article 29.
Without prejudice to measures adopted in implementation of the Treaty, in each Associated State nationals and companies of every Member State shall be placed on an equal footing as regards the right of establishment and provision of services, progressively and not later than three years after the entry into force of this Convention.
The Association Council may authorize an Associated State, at its request, to suspend implementation of the provisions of the foregoing sub-paragraph over a given period and for a given activity.
Nevertheless, in an Associated State nationals and companies of a Member State may benefit from the provisions of the first sub-paragraph, in respect of a given activity, only in so far as the State to which they belong grants similar advantages for the same activity to the nationals and companies of the Associated State in question.
Article 30.
Should an Associated State grant nationals or companies of a State which is neither a Member State of the Community nor an Associated State within the meaning of this Convention, more favourable treatment than that which implementation of the provisions of this Title afford to nationals, such treatment shall be extended to nationals or companies of the Member States, excepting where it arises out of regional agreements.
Article 31.
Subject to the provisions relating to movements of capital, the right of establishment within the meaning of this Convention shall include the right to engage In and carry on non-wage-earning activities, to set up and manage undertakings and in particular companies, and to set up agencies, branches or subsidiaries.
Article 32.
Services within the meaning of this Convention shall be deemed to be services normally provided against remuneration, in so far as they are not governed by the provisions relating to trade, the right of establishment and movements of capital. Services shall include in particular activities of an industrial character, activities of a commercial character, artisan activities and activities of the liberal professions, excluding wage-earning activities.
Article 33.
Companies within the meaning of this Convention shall be deemed to be companies under civil or commercial law, including co-operative societies and other legal persons under public or private law, but not including non-profitmaking companies.
Companies of a Member State or an Associated State shall be companies constituted in accordance with the law of a Member State or an Associated State, and having their registered office, central administration, or main establishment in a Member State or an Associated State; nevertheless, should they have only their registered office in a Member State or an Associated State, their business must be actively and continuously linked with the economy of that Member State or Associated State.
Article 34.
The Association Council shall take any decisions required to further the implementation of Articles 29 to 33 above.
Article 35.
Each Signatory State untertakes, to the full extent of its powers, to authorize payments relating to trade in goods, services and capital and to wages, as also the transfer of such payments to the Member State or Associated State in which the creditor or the beneficiary is resident, in so far as the movement of such goods, services, capital or persons has been liberalized in imple- mentation of this Convention.
Article 36.
Throughout the whole duration of the loans and advances referred to in Chapters III, IV and V of Protocol No. 5, the Associated States undertake to make available to debtors the foreign currency necessary for the repayment of capital and interest on loans granted for schemes to be carried out in their territory and for repayment of advances granted to the stabilization funds.
Article 37.
1. Associated States shall make every endeavour not to introduce any new exchange restriction that would affect the treatment applied to investments and to current payments connected with the movements of capital resulting therefrom, where these are effected by persons residing in the Member States, and not to make the existing controls more restrictive.
2. To the extent necessary for achieving the objectives of this Convention, the Associated States undertake to treat nationals and companies of Member States on an equal footing, not later than 1 January 1965, in respect of investments made by them as from the date of the entry into force of the Convention, as also of movements of capital resulting therefrom.
Article 38.
The Association Council shall formulate any appropriate recommendations to the Contracting Parties concerning the implementation of Article 35, 36 and 37 above.
Title IV. Institutions of the Association
Article 39.
The Institutions of the Association shall be :
- the Association Council assisted by the Association Committee,
- the Parliamentary Conference of the Association,
- the Court of Arbitration of the Association.
Article 40.
The Association Council shall be composed, on the one hand, of the members of the Council of the European Economic Community and members of the Commission of the European Economic Community and, on the other hand, of one member of the Government of each Associated State.
Any member of the Association Council prevented from attending may be represented. The representative shall exercise alt the rights of the accredited member.
Proceedings of the Association Council shall only be valid if half the members of the Council of the Community, one member of the Commission and half the accredited members representing the Governments of the Associated States are present.
Article 41.
The office of the President of the Association Council shall be exercised alternately by a member of the Council of the European Economic Community and a member of the Government of an Associated State.
Article 42.
Mectings of the Association Council shall be called once a year by the President.
Furthermore it shall meet whenever necessary, in accordance with the conditions laid down in its rules of procedure.
Article 43.
The Association Council shall express itself by mutual agreement between the Community on the one hand and the Associated States on the other.
The Community on the one hand and the Associated States on the other shall each by means of an internal Protocol determine their procedure for arriving at their respective positions.
Article 44.
In cases covered by this Convention, the Association Council shall dispose of the power of decision; such decisions shall be binding upon the Contracting Parties, who shall be under the obligation to take all necessary measures to carry them out.
The Association Council may likewise formulate such resolutions, recommendations or opinions as it may deem necessary to achieve the common objectives and to ensure that the Association system works efficiently.
The Association Council shall periodically study the results of the Association system in the light of-that system's objectives.
The Association Council shall lay down its rules of procedure.
Article 45.
The Association Council shall be assisted in the performance of its task by an Association Committee composed on the one hand of one representative of each Member State and one representative of the Commission and, on the other, of one representative of each Associated State.
Article 46.
The Office of the Chairman of the Association Committee shall be filled by the State which is presiding over the Association Council.
The Association Committee shall lay down its rules of procedure, which shall be submitted to the Association Council for approval.
Article 47.
1, In its rules of procedure the Association Council shall define the duties and powers of the Association Committee, with the object, in particular, of ensuring the continuity of co-operation essential to the satisfactory operation of the Association.
2. The Association Council may when necessary delegate to the Association Committee the exercise of the powers entrusted to it by this Convention, under the terms and within the limits laid down by the Council.
In that event, the Cornmittee shall give its decisions in accordance with the terms of Article 43.
Article 48.
The Association Committee shall account for its actions to the Association Council, particularly in matters which have been the subject of a delegation of powers.
It shall also submit any useful proposal to the Association Council.
Article 49.
The duties of the Secretariat of the Association Council and the Association Committee shall be carried out on a basis of parity and in accordance with the rules of procedure of the Association Council.
Article 50.
The Parliamentary Conference of the Association shall meet once a year. It shall be composed, on a basis of parity, of members of the Assembly and members of the Parliaments of the Associated States.
Each year the Association Council shall submit a report on its activities to the Parliamentary Conference.
The Parliamentary Conference may vote resolutions on matters concerning the Association. It shall appoint its President and its officers and shall adopt its own rules of procedure.
The Parliamentary Conference shall be prepared by a Joint Committee set up on a basis of parity.
Article 51.
1. Disputes concerning the interpretation or the application of the present Convention which might arise between one Member State, several Member States or the Community on the one hand, and one or more Associated States on the other, shall be submitted by one of the parties to the dispute to the Association Council which shall seek an amicable settlement at its next meeting. If this cannot be achieved and if the parties to the dispute fail to agree upon an appropriate solution, the dispute shall, at the request of the earliest petitioner, be submitted to the Court of Arbitration of the Association.
2. The Court of Arbitration shall be composed of five members: a President who shall be appointed by the Association Council and four judges from among persons whose independence and competence can be fully guaranteed. The judges shall be appointed by the Association Council within three months after the entry into force of the Convention and for duration thereof. Two of the judges shall be appointed by the Council of the
European Economic Community and the other two by the Associated States. For each judge, following the same procedure, the Association Council shall appoint a deputy who shall sit in the event of the accredited judge being unable to do so.
3. The Court of Arbitration shall act by majority vote.
4. The decisions of the Court of Arbitration shall be binding on the parties to the dispute who shall be under the obligation to take all necessary measures to carry them out.
5. Within three months after the judges are appointed, the Association Council shall lay down the Statute of the Court of Arbitration, on a proposal of that Court.
6. The Court of Arbitration shall adopt its rules of procedure within the same period.
Article 52.
The Association Council may make any useful recommendation for the purpose of facilitating contacts between the Community and the representatives of the various trades and professions of the Associated States.
Article 53.
The administrative expenses of the institutions of the Association shall be defrayed in accordance with the terms set out in Protocol No. 6 annexed to this Convention.
Title V. General and Final Provisions
Article 54.
No treaties, conventions, agreements or arrangements of whatever form or nature between one or more Member States and one or more Associated States shall preclude the implementation of the provisions of this Convention.
Article 55.
This Convention shall apply to the European territory of the Member States of the Community on the one hand, and to the territory of the Associated States on the other.
The First Title of this Convention shall also apply to the relations between the French Overseas Territories and the Associated States.
Article 56.
As far as the Community is concerned, this Convention shall be validity concluded by a decision of the Council of the Community taken in conformity with the provisions of the Treaty and notified to the Parties. It shall be ratified by the Signatory States in conformity with their respective constitutional requirements,
The instruments of ratification and the act of notification of the conclusion of the Convention shall be deposited with the Secretariat of the Councils of the European Communities, who shall give notice thereof to the Signatory States.
Article 57.
1. This Convention shall enter into force on the first day of the month following the date on which the instruments of ratification of the Member States and of at least fifteen of the Associated States and the instrument notifying the conclusion of the Convention by the Community have been deposited.
2. Any Associated State which has not ratified the Convention by the date of its entry into force as provided for in the previous paragraph, shall be able to proceed with this ratification only during the twelve months following such entry into force, unless before the expiry of this period it gives notice to the Association Council of its intention to ratify the Convention not later than six months alter this period, and on condition that it deposits its instruments of ratification within the same time limit.
3. As regards those States which have not ratified the Convention by the date of its entry into force as laid down in paragraph 1, the provisions of the Convention shall become applicable on the first day of the month following the deposit of their respective instruments of ratification.