Title
EUROPE AGREEMENT establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, 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 Economic 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 ECONOMIC COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'the Community`,
of the one part, and
THE CZECH REPUBLIC
of the other part,
CONSIDERING the importance of the links existing between the Community, its Member States and the Czech Republic and the common values that they share;
RECOGNIZING that the Community and the Czech Republic wish to strengthen these links and to establish close and lasting relations, based on reciprocity, which would allow the Czech Republic to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Agreement on Trade and Commercial and Economic Cooperation, signed between the Community and the Czech and Slovak Federal Republic on 7 May 1990, and by the Interim Agreement between the Community and the Czech and Slovak Federal Republic which entered into force on 1 March 1992;
RECOGNIZING that the dissolution of the Czech and Slovak Federal Republic as of 1 January 1993 prior to the entry into force of the Europe Agreement signed between the Community and the Czech and Slovak Federal Republic on 16 December 1991 has made it necessary to conclude separate Europe Agreements with each of the Slovak Republic and the Czech Republic;
CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in the Czech Republic;
CONSIDERING the commitment of the Community and its Member States and of the Czech Republic to strengthening the political and economic freedoms which constitute the very basis of the association;
RECOGNIZING the establishment in the Czech Republic 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 the Czech Republic of a new economic order founded upon the principles of a free market economy;
CONSIDERING the firm commitment of the Community and its Member States and of the Czech Republic to the full implementation of all principles and provisions contained in particular in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the concluding documents of Vienna and Madrid and the Charter of Paris for a new Europe;
CONSCIOUS of the importance of this Europe Agreement, hereinafter referred to as the 'Agreement`, to establishing in Europe a system of stability based on cooperation, with the Community 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 the Czech Republic'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 on the CSCE Bonn Conference;
DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest;
TAKING ACCOUNT of the Community's willingness to provide decisive support for the implementation of reform and to help the Czech Republic 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 global and multiannual basis;
CONSIDERING the commitment of the Community and the Czech Republic to free trade, and in particular to compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade;
BEARING IN MIND the economic and social disparities between the Community and the Czech Republic and thus recognizing that the objectives of this association should be reached through appropriate provisions of this Agreement;
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 modernization;
DESIROUS of establishing cultural cooperation and developing exchanges of information;
RECOGNIZING the fact that the Czech Republic's ultimate objective is to accede to the Community, and that this association, in the view of the Parties, will help the Czech Republic to achieve this objective,
HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries,
THE KINGDOM OF BELGIUM:
Robert URBAIN,
Secretary of State for Foreign Trade and European Affairs
THE KINGDOM OF DENMARK:
Niels HELVEG PETERSEN,
Minister for Foreign Affairs
THE FEDERAL REPUBLIC OF GERMANY:
Klaus KINKEL,
Minister for Foreign Affairs
THE HELLENIC REPUBLIC:
Michel PAPAKONSTANTINOU,
Minister for Foreign Affairs
THE KINGDOM OF SPAIN:
Javier SOLANA,
Minister for Foreign Affairs
THE FRENCH REPUBLIC:
Alain JUPPÉ,
Minister for Foreign Affairs
IRELAND:
Dick SPRING,
Minister for Foreign Affairs
THE ITALIAN REPUBLIC:
Paolo BARATTA,
Secretary of State for Foreign Trade
THE GRAND DUCHY OF LUXEMBOURG:
Jacques POOS,
Minister for Foreign Affairs
THE KINGDOM OF THE NETHERLANDS:
Peter KOOIJMANS,
Minister for Foreign Affairs
THE PORTUGUESE REPUBLIC:
José Manuel DURÃO BARROSO,
Minister for Foreign Affairs
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
David HEATHCOAT-AMORY,
Minister of State for Foreign Affairs
THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY:
Willy CLAES,
Minister for Foreign Affairs of the Kingdom of Belgium,
President-in-Office of the Council of the European Communities
Sir Leon BRITTAN,
Vice-President of the Commission of the European Communities
Hans van den BROEK,
Member of the Commission of the European Communities
THE CZECH REPUBLIC:
Josef ZIELENIEC,
Minister for Foreign Affairs
WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An Association is hereby established between the Community and its Member States, on the one part, and the Czech Republic, on the other part.
2. The aim of this Agreement is:
- to provide an appropriate framework for the political dialogue, allowing the development of close political relations between the Parties,
- to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster the dynamic economic development and prosperity in the Czech Republic,
- to provide a basis for the Community's financial and technical assistance to the Czech Republic,
- to provide an appropriate framework for the Czech Republic's gradual integration into the Community. To this end, the Czech Republic shall work towards fulfilling the necessary conditions,
- to promote cooperation in cultural matters.
Title I. POLITICAL DIALOGUE
Article 2.
A regular political dialogue is established between the Parties which they intend to develop and intensify as an effective means to accompany and consolidate the rapprochement between the Community and the Czech Republic, support the political and economic changes under way in that country and contribute to the establishment of lasting links of solidarity and new forms of cooperation. The political dialogue and cooperation, based on shared values and aspirations:
- will facilitate the Czech Republic's full integration into the community of democratic nations and progressive rapprochement with the Community. The economic rapprochement provided for in this Agreement will lead to greater political convergence,
- will lead to an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other Party,
- will contribute to the rapprochement of the Parties' positions on security issues.
Article 3.
At ministerial level, political dialogue shall take place within the Association Council. This shall have general responsibility for all matters which the Parties might wish to put to it.
Article 4.
Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms:
- meetings as appropriate of the President of the Czech Republic on the one hand, and the President of the European Council and the President of the Commission of the European Communities, on the other,
- meetings at senior official level (political directors) between officials of the Slovak Republic, on the one hand, and the Presidency of the Council of the European Communities and the Commission, on the other,
- taking full advantage of diplomatic channels,
- including the Czech Republic in the group of countries receiving regular information on the issues dealt with by the European Political Cooperation as well as exchanging information with the view to achieving the objectives defined in Article 2,
- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
Article 5.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Association Committee.
Title II. GENERAL PRINCIPLES
Article 6.
Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a new Europe, as well as the principles of market economy, inspire the domestic and external policies of the Parties and constitute essential elements of the present association.
Article 7.
1. The Association includes a transition period of a maximum duration of 10 years divided into two successive stages, each in principle lasting five years. The first stage shall begin when this Agreement enters into force.
2. The Association Council shall proceed regularly to examine the application of this Agreement and the accomplishment of the Czech Republic's economic reforms on the basis of the principles established in the preamble.
3. During the course of the 12 months preceding the expiration of the first stage, the Association Council shall meet to decide the transition to the second stage as well as any possible changes to be brought about as regards measures concerning the content of the provisions governing the second stage. In doing this, it will take into account the results of the examination mentioned in paragraph 2.
4. The two stages envisaged in paragraphs 1, 2 and 3 do not apply to Title III.
Title III. FREE MOVEMENT OF GOODS
Article 8.
1. The Community and the Czech Republic shall gradually establish a free trade area in a transitional period lasting a maximum of 10 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 General Agreement on Tariffs and Trade (GATT).
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 by the Czech and Slovak Federal Republic erga omnes on 29 February 1992.
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 replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied.
5. The Community and the Czech Republic 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 and in the Czech Republic 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 included do not apply to products mentioned in Articles 16 and 17.
Article 10.
1. Customs duties on imports applicable in the Community to products originating in the Czech Republic other than those listed in Annexes II and III shall be abolished on the entry into force of this Agreement.
2. Customs duties on imports applicable in the Community to products originating in the Czech Republic listed in Annex II shall be reduced, on the date of entry into force of this Agreement, by 20 % of the basic duty and one year thereafter by a further 20 % of the basic duty. Duties shall be totally abolished by the end of the second year after the entry into force of the Agreement.
3. The products of Czech Republic origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditions defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned at the end of the third year after the entry into force of the Agreement.
At the same time, customs duties on imports applicable to import quantities in excess of the quotas or ceilings provided for above shall be progressively dismantled from the entry into force of this Agreement by annual reductions of 15 %. By the end of the third year, remaining duties shall be abolished.
4. Quantitative restrictions and measures having an effect equivalent to quantitative restrictions on imports to the Community shall be abolished on the date of entry into force of this Agreement with regard to the products originating in the Slovak Republic.
Article 11.
1. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of this Agreement.
2. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable:
- on the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,
- three years after the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,
- five years after the date of entry into force of this Agreement the remaining duties shall be eliminated.
3. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex VI shall be progressively reduced according to the following timetable:
- three years after the date of entry into force of this Agreement each duty shall be reduced to 80 % of the basic duty,
- five years after the date of entry into force of this Agreement each duty shall be reduced to 60 % of the basic duty,
- seven years after the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,