- the study of coordinated approaches for the development of border areas between the Community and the Czech Republic and other Czech Republic areas with severe regional disparities;
- exchange visits to explore the opportunities for cooperation and assistance,
- the exchange of civil servants or experts,
- the provision of technical assistance,
- the establishment of programmes for the exchange of information and experience, by methods including seminars.
Article 88. Social Cooperation
1. With regard to health and safety, the Parties shall develop cooperation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community. Cooperation shall comprise the following in particular:
- the provision of technical assistance,
- the exchange of experts,
- cooperation between firms,
- the exchange of information and administrative and other relevant assistance to firms, training operations.
2. With regard to employment, cooperation between the Parties shall focus notably on upgrading job-finding and careers-advice services, providing back-up measures and promoting local development to assist industrial restructuring.
It shall also include measures such as the performance of studies, provision of the services of experts and information and training.
3. With regard to social security, cooperation between the Parties shall seek to adapt the social security systems to the new economic and social situation, primarily by providing the services of experts and information and training.
Article 89. Tourism
The Parties shall increase and develop cooperation between them, which shall include:
- facilitating the tourist trade,
- increasing the flow of information through international networks, data banks, etc.,
- transferring know-how through training, exchanges, seminars,
- executing regional tourist projects such as cross-frontier projects, town-twinning, etc.,
- exchanging views and providing for appropriate exchanges of information on major issues of mutual interest affecting the tourism sector,
- encouraging the development of infrastructure conducive to investment in the tourism sector.
Article 90. Small and Medium-sized Enterprises
1. The Parties shall aim to develop and strengthen private sector small and medium-sized enterprises and cooperation between SMEs in the Community and the Czech Republic.
2. They shall encourage the exchange of information and know-how in the following areas:
- bringing about the legal, administrative, technical, tax and financial conditions necessary for the establishment and expansion of SMEs and for cross-border cooperation,
- the provision of the specialized services required by SMEs (management training, accounting, marketing, quality control, etc.) and the strengthening of agencies providing such services,
- the establishment of appropriate links with Community operators with the aim of improving the flow of information to SMEs and promoting cross-border cooperation (e.g. the Business Cooperation Network (BC-NET), Euro-Info Centres, conferences, etc.).
3. The cooperation will include the provision of technical assistance in particular for the establishment of appropriate institutional support for SMEs, at national and regional level, in respect of financial, training, advisory, technological and commercial services.
Article 91. Information and Communication
With regard to information and communication, the Community and the Czech Republic shall take appropriate steps to stimulate effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and specific circles in the Czech Republic with more specialized information, including, where possible, access to Community databases.
Article 92. Consumer Protection
1. The Parties shall cooperate with the aim of achieving full compatibility of the Czech Republic with the Community consumer protection system.
2. To this end, the cooperation shall comprise, within existing possibilities:
- exchange of information and experts,
- access to Community databases,
- training operations and technical assistance.
Article 93. Customs
1. The aim of cooperation shall be to guarantee compliance with all the provisions scheduled for adoption in connection with trade and to achieve the approximation of the Czech Republic's customs system to that of the Community, thus helping to ease the steps towards liberalization planned under this Agreement.
2. Cooperation shall include the following in particular:
- the exchange of information,
- the development of cross-frontier infrastructure between the Parties,
- the interconnection between the transit systems of the Community and the Czech Republic,
- the simplification of inspections and formalities in respect of the carriage of goods,
- the organization of seminars and placements.
Technical assistance shall be provided where appropriate.
3. Without prejudice to further cooperation provided for in this Agreement, and in particular Article 96, the mutual assistance between administrative authorities in customs matters of the Contracting Parties shall take place in accordance with the provisions of Protocol 6.
Article 94. Statistical Cooperation
1. Cooperation in this area shall have as its aim the development of an efficient statistical system to provide, in a rapid and timely fashion, the reliable statistics needed to plan and monitor the process of reform and to contribute to the development of private enterprise in the Czech Republic.
2. The Parties shall cooperate in particular:
- to strengthen the service of statistics of the Czech Republic,
- to bring about harmonization with international (and particularly Community) methods, standards and classifications,
- to provide the data needed to maintain and monitor economic reform,
- to provide private-sector economic operators with the appropriate macro-economic and micro-economic data,
- to guarantee the confidentiality of data,
- to exchange statistical information.
3. Technical assistance shall be provided by the Community as appropriate.
Article 95. Economics
1. The Community and the Czech Republic will facilitate the process of economic reforms and integration by cooperating to improve understanding of the fundamentals of their respective economies and of implementing economic policy in market economies.
2. To these ends the Community and the Czech Republic will:
- exchange information on macro-economic performance and prospects and on strategies for development where appropriate,
- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it,
- through the programme of Action for Cooperation in Economics in particular, encourage extensive cooperation among economists and managers in the Community and the Czech Republic, in order to speed the transfer of know-how for the drafting of economic policies, and provide for wide dissemination of the results of policy-relevant research.
Article 96. Drugs
1. The cooperation is in particular aimed at increasing the efficiency of policies and measures to counter the supply and illicit traffic of narcotics and psychotropic substances and the reduction of abuse of these products.
2. The Contracting Parties shall agree on the necessary methods of cooperation to attain these objectives, including the modalities of the implementation of common actions. Their actions will be based on consultation on a close coordination of the objectives and the policy measures in the fields targeted in paragraph 1.
3. The cooperation between the Contracting Parties will comprise technical and administrative assistance which could deal in particular with the following areas: the drafting and implementation of national legislation; the creation of institutions and information centres and of social and health centres; the training of personnel and research; the prevention of diversion of precursors used for the purpose of illicit manufacture of narcotic drugs or psychotropic substances.
The Parties may agree to include other areas.
Title VII. CULTURAL COOPERATION
Article 97.
1. The Parties undertake to promote cultural cooperation. Where appropriate, Community's cultural cooperation programmes, or those of one or more Member States may be extended to the Czech Republic and further activities of interest to both sides developed.
This cooperation may notably cover:
- literary translation,
- conservation and restoration of monuments and sites (architectural and cultural heritage),
- training for those dealing with cultural affairs,
- the organization of European-oriented cultural events.
2. The Parties shall cooperate in the promotion of the audiovisual industry in Europe. The audiovisual sector in the Czech Republic could in particular participate in activities set up by the Community in the MEDIA programme for 1991 to 1995 in accordance with the procedures laid down by the bodies responsible for managing each activity and in accordance with the provisions of the Decision of the Council of the European Communities of 21 December 1990, which established the programme.
The Parties shall coordinate, and where appropriate, harmonize, their policies regarding the regulation of cross-border broadcasts, technical standards and the promotion of European audiovisual technology.
Title VIII. FINANCIAL COOPERATION
Article 98.
In order to achieve the objectives of this Agreement and in accordance with Articles 99, 100, 102 and 103, without prejudice to Article 101, the Czech Republic shall benefit from temporary financial assistance from the Community in the form of grants and loans, including loans from the European Investment Bank according to the provisions of Article 18 of the Statute of the Bank.
Article 99.
This financial assistance shall be covered by:
- the operation Phare measures provided for in Council Regulation (EEC) No 3906/89, as amended, for as long as they are applicable; thereafter grants will be made available by the Community, either within the framework of the operation Phare on a multiannual basis, or within a new financial multiannual framework established by the Community following consultations with the Czech Republic and taking into account the considerations set out in Articles 102 and 103,
- the loan(s) provided by the European Investment Bank until the expiry date of the availability thereof; following consultations with the Czech Republic the Community shall fix the maximum amount and period of availability of loans from the European Investment Bank for the Czech Republic for subsequent years.
Article 100.
The objectives and the areas of the Community's financial assistance shall be laid down in an indicative programme to be agreed between the two Parties. The Parties shall inform the Association Council.
Article 101.
1. The Community shall, in case of special need, taking into account the availability of all financial resources, on request of the Czech Republic and in coordination with international financial institutions, in the context of the G-24, examine the possibility of granting temporary financial assistance:
- to support measures with the aim to introduce and maintain the convertibility of the Czech Republic currency,
- to support medium-term stabilization and structural adjustment efforts, including balance of payments assistance.
2. This financial assistance is subject to the Czech Republic's presentation of IMF supported programmes in the context of G-24, as appropriate, for convertibility and/or for restructuring its economy, to the Community's acceptance thereof, to the Czech Republic's continued adherence to these programmes and, as an ultimate objective, to rapid transition to reliance on finance from private sources.
3. The Association Council will be informed of the conditions under which this assistance will be provided and of the respect of the obligations undertaken by the Czech Republic concerning such assistance.
Article 102.
The Community financial assistance shall be evaluated in the light of the needs which arise and of the Czech Republic's development level, and taking into account established priorities and the absorption capacity of the Czech Republic economy, the ability to repay loans and accomplishment of a market economy system and restructuring in the Czech Republic.
Article 103.
In order to permit optimum use of the resources available, the Contracting Parties shall ensure that Community contributions are made in close coordination with those from other sources such as the Member States, other countries, including the G-24, and international financial institutions, such as the International Monetary Fund, the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development.
Title IX. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 104.
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 this Agreement and any other bilateral or international issues of mutual interest.
Article 105.
1. The Association Council shall consist of the members of the Council of the European Communities and members of the Commission of the European Communities, on the one hand, and of members appointed by the Government of the Czech Republic, 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 procedure.
4. The Association Council shall be presided in turn by a member of the Council of the European Communities and a member of the Government of the Czech Republic, in accordance with the provisions to be laid down in its rules of procedure.
5. Where appropriate, the European Investment Bank will take part, as an observer, in the work of the Association Council.
Article 106.
The Association Council shall, for the purpose of attaining the objectives of this 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 107.
1. Each of the two Parties may refer to the Association Council any dispute relating to the application or interpretation of the 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, either Party may notify the other of the appointment of an arbitrator; the other Party must then 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 108.
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 Communities and of members of the Commission of the European Communities on the one hand and of representatives of the Government of the Czech Republic on the other, normally at senior civil servant level.
In its rules of 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 106.
Article 109.
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 110.
An Association Parliamentary Committee is hereby established. It shall be a forum for members of the Czech Republic Parliament and the European Parliament to meet and exchange views. It shall meet at intervals which it shall itself determine.
Article 111.
1. The Association Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Czech Republic Parliament, on the other.
2. The Association Parliamentary Committee shall establish its rules of procedure.
3. The Association Parliamentary Committee shall be presided each in turn by the European Parliament and the Czech Republic Parliament, in accordance with the provisions to be laid down in its rules of procedure.
Article 112.
The Association 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 Association Parliamentary Committee shall be informed of the decisions of the Association Council.
The Association Parliamentary Committee may make recommendations to the Association Council.
Article 113.
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 114.
Nothing in this Agreement shall prevent a Contracting 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, munitions 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.
Article 115.
1. In the fields covered by this Agreement and without prejudice to any special provisions contained therein:
- the arrangements applied by the Czech Republic in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or firms,
- the arrangements applied by the Community in respect of the Czech Republic shall not give rise to any discrimination between Czech Republic nationals or its companies or firms.
2. The provisions of paragraph 1 are without prejudice to the right of the Contracting 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 116.
Products originating in the Czech Republic shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves.
The treatment granted to the Czech Republic under Title IV and Chapter I of Title V shall not be more favourable than that accorded by Member States among themselves.