Title
PARTNERSHIP AND COOPERATION AGREEMENT
Establishing a partnership between the European Communities and their Member States, of the one part, and the Kyrgyz Republic, of the other part
Preamble
THE REPUBLIC OF AUSTRIA,
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 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, 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 KYRGYZ REPUBLIC,
Of the other part,
CONSIDERING the links between the Community, its Member States and the Kyrgyz Republic and the common values that they share,
RECOGNICING that the Community and the Kyrgyz Republic wish to strengthen these links and to establish partnership and cooperation which would strengthen and widen the relations established 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,
CONSIDERING the commitment of the Community and its Member States and of the Kyrgyz Republic 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,
CONSIDERING the firm commitment of the Community and its Member States and of the Kyrgyz Republic 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 the Kyrgyz Republic to the European Energy Charter,
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 liberalisation aimed at setting up a market economy,
BELIEVING that full implementation of this Partnership and Cooperation Agreement will both depend on and contribute to continuation and accomplishment of the political, economic and legal reforms in the Kyrgyz Republic, as well as the introduction of the factors necessary for cooperation, notably in the light of the conclusions of the CSCE Bonn Conference,
DESIROUS of encouraging the process of regional cooperation in the areas covered by this agreement with the neighbouring countries 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 for economic cooperation and technical assistance as appropriate,
BEARING IN MIND the economic and social disparities between the Community and the Kyrgyz Republic and in particular the fact that the Kyrgyz Republic is a developing and landlocked country,
RECOGNISING that one of the major aims of the Agreement should be to facilitate the elimination of these disparities through Community assistance to the development and restructuring of the Kyrgyz economy,
BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between the Kyrgyz Republic and a wider area of cooperation in Europe and neighbouring regions and its progressive integration into the open international system,
CONSIDERING the commitment of the Parties to liberalise trade, based on the principles contained in the General Agreement on Tariffs and Trade (GATT),
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 modernisation,
DESIROUS of establishing close cooperation in the area of environment 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 field of space research in view of the complementarity of their activities in this area,
DESIROUS of establishing 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 the Kyrgyz Republic 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 political relations,
To support Kyrgyz efforts to consolidate its democracy and to develop its economy and to complete the transition into a market economy,
To promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable economic development,
To provide a basis for legislative, economic, social, financial, civil scientific, technological and cultural cooperation.
Article 2.
Respect for democracy, principles of international law and human rights as defined in particular in the United Nations Charter, the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of market economy, including those enunciated in the documents of the CSCE Bonn Conference, underpin the internal and external policies of the Parties and constitute an essential element of partnership and of this Agreement.
Article 3.
The Parties consider that it is essential for the future prosperity and stability of the region of the former Soviet Union that the newly independent states which have emerged from the dissolution of the Union of Soviet Socialist Republics, hereinafter called Independent States, should maintain and develop cooperation among themselves in compliance with the principles of the Helsinki Final Act and with international law and spirit of good neighbourly relations and will make every effort to encourage this process.
Article 4.
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 Community and the Kyrgyz Republic, support the political and economic changes underway in that country and contribute to the establishment of new forms of cooperation. The political dialogue:
Will strengthen the links of the Kyrgyz Republic with the Community and its Member States, and thus with the community of democratic nations as a whole. The economic convergence achieved through this Agreement will lead to more intense political relations,
Will bring about an increasing convergence of positions on international issues of mutual concern thus increasing security and stability.
Such dialogue may take place on a regional basis.
Article 5.
At ministerial level, political dialogue shall take place within the Cooperation Council established in Article 75 and on other occasions by mutual agreement.
Article 6.
Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms:
Regular meetings at senior official level between representatives of the Community and its Member States on the one hand, and representatives of the Kyrgyz Republic on the other hand,
Taking full advantage of diplomatic channels between the Parties including appropriate contacts in the bilateral as well as the multilateral field, such as the United Nations, CSCE meetings and elsewhere,
Any other means, including the possibility of expert meetings which would contribute to consolidating and developing this dialogue.
Article 7.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Cooperation Committee established in Article 80.
Article 8.
1. The Parties shall accord to one another most-favourednation treatment in all areas in respect of:
Customs duties and charges applied to imports and exports, including the method of collecting such duties and charges,
Provisions relating to customs clearance, transit, warehouses and transhipment,
Taxes and other internal charges of any kind applied directly or indirectly to imported goods,
Methods of payment and the transfer of such payments,
The rules relating to the sale, purchase, transport, distribution and use of goods on the domestic market.
2. The provisions of paragraph 1 shall not apply to:
(a) 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;
(b) advantages granted to particular countries in accordance with the GATT and with other international arrangements in favour of developing countries;
(c) advantages accorded to adjacent countries in order to facilitate frontier traffic.
3. The provisions of paragraph 1 shall not apply, during a transitional period expiring on the date of the Kyrgyz Republic
Acceding to the GATT or on 31 December 1998, whichever is earlier, to advantages defined in Annex I granted by the Kyrgyz Republic to other states which have emerged from the dissolution of the USSR.
Article 9.
1. The Parties agree that the principle of free transit is an essential condition of attaining the objectives of this Agreement.
In this connection each Party shall secure unrestricted transit via or 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 the Article V, paragraphs 2, 3, 4 and 5, of the GATT are applicable between the two Parties.
3. The rules contained in this Article are without prejudice to any special rules relating to specific sectors, in particular such as transport, or products agreed between the Parties.
Article 10.
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. 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 11.
1. Goods originating in the Kyrgyz Republic shall be imported into the Community free of quantitative restrictions without prejudice to the provisions of Articles 13, 16 and 17 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 European Community.
2. Goods originating in the Community shall be imported into the Kyrgyz Republic free of all quantitative restrictions and measures of equivalent effect.
Article 12.
Goods shall be traded between the Parties at market-related prices.
Article 13.
1. Where any product is being imported into the territory of one of the Parties in such increased quantities or under such conditions as to cause or threaten to cause injury to domestic producers of like or direct competitive products, the Community or the Kyrgyz Republic, 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 the Kyrgyz Republic as the case may be shall supply the Cooperation Council with all relevant information with a view to seeking a solution acceptable to both Parties as provided for in Title IX.
3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of referral to the Cooperation Council on actions to avoid the situation, the Party which requested consultations shall be free to restrict imports of the products concerned to the extent and for such time as is necessary to prevent or remedy the injury, or to adopt other appropriate measures.
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 under this Article, the Contracting Parties shall give priority to those which cause least disturbance to the achievement of the aims of this Agreement.
6. Nothing in this Article 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.
Article 14.
The Parties undertake to consider development of the provisions in this Agreement on trade in goods between them, as circumstances allow, including the situation arising from the accession of the Kyrgyz Republic to the GATT. The Cooperation Council may make recommendations on such developments to the Parties which could be put into effect, where accepted, by virtue of agreement between the Parties in accordance with their respective procedures.
Article 15.
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 of 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 16.
This Title shall not apply to trade in textile products falling under Chapters 50 to 63 of the Combined Nomenclature. Trade in these products shall be governed by a separate agreement, initialled on 15 October 1993 and applied provisionally since 1 January 1994.
Article 17.
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 11.
2. A contact group on coal and steel matters shall be set up, comprising representatives of the Community on the one hand, and representatives of the Kyrgyz Republic on the othe.
The contact group shall exchange, on a regular basis, information on all coal and steel matters of interest to the Parties.
Article 18.
Trade in nuclear materials shall be subject to the provisions of a specific Agreement to be concluded between the European Atomic Energy Community and the Kyrgyz Republic.
Part IV. Provisions Affecting Business and Investment
Article 19.
1. Subject to the laws, conditions and procedures applicable
In each Member State, the Community and the Member States shall endeavour to ensure that the treatment accorded to Kyrgyz 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. Subject to the laws, conditions and procedures applicable
In the Kyrgyz Republic, the Kyrgyz Republic shall ensure that the treatment accorded to nationals of a Member State, legally employed in the territory of the Kyrgyz Republic shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals.
Article 20.
The Cooperation Council shall examine which joint efforts can be made to control illegal immigration, taking into account the principle and practice of readmission.
Article 21.
The Cooperation Council shall examine which improvements can be made in working conditions for business people consistent with the international commitments of the Parties, including those set out in the document of the CSCE Bonn Conference.
Article 22.
The Cooperation Council shall make recommendations for the implementation of Articles 19, 20 and 21.
Article 23.
1. The Community and its Member States shall grant treatment no less favourable than that accorded to any third country for the establishment of Kyrgyz companies as defined in Article 25 by means of the setting up of subsidiaries and branches and shall grant to subsidiaries and branches of Kyrgyz companies established in their territory treatment no less favourable than that accorded to any third country company or branch respectively, in respect of their operations, and this in conformity with their legislation and regulations.
2. Without prejudice to the provisions of Articles 35 and 84, the Kyrgyz Republic shall grant to Community companies and their branches treatment no less favourable than that accorded to Kyrgyz companies and their branches or to any third country companies and their branches whichever is the better, in respect of their establishment and operations, as defined in Article 25, on its territory, and this in conformity with its legislation and regulations.
Article 24.
The provisions of Article 23 shall not apply to air transport, inland waterways and maritime transport.
Article 25.
For the purpose of this Agreement:
(a) a Community company or a Kyrgyz company 1 respectively shall mean a company set up in accordance with the laws of a Member State or of the Kyrgyz Republic respectively and having its registered office or central administration, or principal place of business in the territory of the Community or the Kyrgyz Republic respectively. However, should the company, set up in accordance with the laws of a Member State or the Kyrgyz Republic respectively, the company shall be considered a Community or Kyrgyz company respectively if its operations possess a real and continuous link with the economy of one of the Member States or the Kyrgyz Republic respectively;
(b) subsidiary of a company shall mean a company which is effectively controlled by the first company;
(c) branch of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
(d) establishment shall mean the right of Community or Kyrgyz companies as referred to in point (a), to take up economic activities by means of the setting up and management of subsidiaries and branches in the Kyrgyz Republic or in the Community respectively;
(e) operation shall mean the pursuit of economic activities;
(f) economic activities shall mean activities of an industrial, commercial and professional character.
With regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of the Kyrgyz Republic established outside the Community or the Kyrgyz Republic respectively, and shipping companies established outside the Community or the Kyrgyz Republic and controlled by nationals of a Member State or Kyrgyz nationals respectively, shall also be beneficiaries of the provisions of this Chapter and Chapter III if their vessels are registered in that Member State or in the Kyrgyz Republic respectively in accordance with their respective legislation.
Article 26.
1. Notwithstanding any other provisions of the Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the obligations of a Party under the Agreement.
2. Nothing in the Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.
Article 27.
The provisions of this Agreement shall not prejudice the application by each Party of any measure necessary to prevent the circumvention of its measures concerning third-country access to its market, through the provisions of this Agreement.
Article 28.
1. Notwithstanding the provisions of Chapter I of this Title, a Community company or a Kyrgyz company established in the territory of the Kyrgyz Republic or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of the Kyrgyz Republic and the Community respectively, employees who are nationals of Community Member States and the Kyrgyz Republic respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by companies, or branches. The residence and work permits of such employees shall only cover the period of such employment.
2. Key personnel of the abovementioned companies herein referred to as organisations are intra-corporate transferees as defined in (c) in the following categories, provided that the organisation is a legal person and that the persons concerned have been employed by it or have been partners in it (other than majority shareholders), for at least the year immediately preceding such movement: