(a) persons working in a senior position with an organisation, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent, including:
- Directing the establishment or a department or subdivision of the establishment,
- Supervising and controlling the work of other supervisory, professional or managerial employees,
- Having the authority personally to hire and fire or recommend hiring, firing or other personnel actions;
(b) persons working within an organisation who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;
(c) an intra-corporate transferee is defined as a natural person working within an organisation in the territory of a Party,
And being temporarily transferred in the context of pursuit of economic activities in the territory of the other Party; the organisation concerned must have its principal place of business in the territory of a Party and the transfer be to an establishment (branch, subsidiary) of that organisation, effectively pursuing like economic activities in the territory of the other Party.
Article 29.
The Parties recognise the importance of granting each other national treatment with regard to the establishment and operation of each other's companies in their territories and agree to consider the possibility of movement towards this end on a mutually satisfactory basis, and in the light of any recommendations by the Cooperation Council.
Article 30.
1. The Parties shall use their best endeavours to avoid taking any measures or actions which render the conditions for the establishment and operation of each other's companies more restrictive than the situation existing on the day preceding the date of signature of the Agreement.
2. The provisions of this Article are without prejudice to those of Article 38: the situations covered by such Article 38 shall be solely governed by its provisions to the exclusion of any other.
3. Acting in the spirit of partnership and cooperation and in the light of the provisions of Article 44 the Government of the Kyrgyz Republic shall inform the Community of its intentions to submit new legislation or adopt new regulations which may render the conditions for the establishment or operation in the Kyrgyz Republic of subsidiaries and branches of Community companies more restrictive than the situation existing on the day preceding the date of signature of the Agreement. The Community may request the Kyrgyz Republic to communicate the drafts of such legislation or regulations and to enter into consultations about those drafts.
4. Where new legislation or regulations introduced in the Kyrgyz Republic would result in rendering the conditions for operation of subsidiaries and branches of Community companies established in the Kyrgyz Republic more restrictive than the situation existing on the day of signature of the Agreement, such respective legislation or regulations shall not apply during three years following the entry into force of the relevant act to those subsidiaries and branches already established in the Kyrgyz Republic at the time of entry into force of the relevant act.
Article 31.
1. The Parties undertake in accordance with the provisions of this Chapter to take the necessary steps to allow progressively the supply of services by Community or Kyrgyz companies which are established in a Party other than that of the person for whom the services are intended taking into account the development of the service sectors in the Parties.
2. The Cooperation Council shall make recommendations for the implementation of paragraph 1.
Article 32.
The Parties shall cooperate with the aim of developing a market-oriented service sector in the Kyrgyz Republic.
Article 33.
1. The Parties undertake to apply effectively the principle of unrestricted access to the international maritime market and traffic on a commercial basis:
(a) the above provision does not prejudice the rights and obligations arising from the United Nations Convention on a Code of Conduct for Liner Conferences, as applicable to one or other Contracting Party to this Agreement. Nonconference lines will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis;
(b) the Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.
2. In applying the principles of paragraph 1, the Parties shall:
(a) not apply, as from entry into force of this agreement, any cargo-sharing provisions of bilateral agreements between any Member States of the Community and the former Soviet Union;
(b) not introduce cargo-sharing clauses into future bilateral agreements with third countries, other than in those exceptional circumstances where liner shipping companies from one or other Party to this Agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;
(c) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and liquid bulk trade;
(d) abolish upon entry into force of this Agreement, all unilateral measures, administrative, technical and other obstacles which could have restrictive or discriminatory effects on the free supply of services in international maritime transport.
Article 34.
With a view to assuring a coordinated development of transport between the Parties, adapted to their commercial needs, the conditions of mutual market access and provision of services in transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with by specific agreements where appropriate negotiated between the Parties after entry into force of this Agreement.
Article 35.
1. The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.
2. They shall not apply to activities which in the territory of either Party are connected, even occasionally, with the exercise of official authority.
Article 36.
For the purpose of this title, nothing in the agreement shall prevent the parties from applying their laws and regulations regarding entry and stay, work, labour conditions and establishment of natural persons and supply of services, provided that, in so doing, they do not apply them in a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of the agreement
The above provision does not prejudice the application of Article 35.
Article 37.
Companies which are controlled and exclusively owned by Kyrgyz companies and Community companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV.
Article 38.
Treatment granted by either Party to the other thereunder shall, as from the day one month prior to the date of entry into force of the relevant obligations of the General Agreement on Trade in Services (GATS), in respect of sectors or measures covered by the GATS, in no case be more favourable than that accorded by such first Party under the provisions of GATS and this in respect of each service sector, sub-sector and mode of supply.
Article 39.
For the purposes of Chapters II, III and IV, no account shall be taken of treatment accorded by the Community, its Member States or the Kyrgyz Republic pursuant to commitments entered into in economic integration agreements in accordance with the principles of Article V of the GATS.
Article 40.
1. The most-favoured-nation treatment granted in accordance with the provisions of this Title shall not apply to the tax advantages which the Parties are providing or will provide in the future on the basis of agreements to avoid double taxation, or other tax arrangements.
2. Nothing in this Title shall be construed to prevent the adoption or enforcement by the Parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation and other tax arrangements, or domestic fiscal legislation.
3. Nothing in this Title shall be construed to prevent Member States or the Kyrgyz Republic from distinguishing, in the application of the relevant provisions of their fiscal legislation, between tax payers who are not in identical situtations, in particular as regards their place of residence.
Article 41.
Without prejudice to Article 28, no provision of Chapters II, III and IV shall be interpreted as giving the right to:
- Nationals of the Member States or of the Kyrgyz Republic respectively to enter, or stay in, the territory of the Kyrgyz Republic or the Community respectively in any capacity whatsoever, and in particular as a shareholder or partner in a company or manager or employee thereof or supplier or recipient of services, community subsidiaries or branches of Kyrgyz companies to employ or have employed in the territory of the Community nationals of the Kyrgyz Republic,
- Kyrgyz subsidiaries or branches of Community companies to employ or have employed in the territory of the Kyrgyz Republic nationals of the Member States,
- Kyrgyz companies or Community subsidiaries or branches of Kyrgyz companies to supply Kyrgyz persons to act for and under the control of other persons by temporary employment contracts,
- Community companies or Kyrgyz subsidiaries or branches of Community companies to supply workers who are nationals of the Member States by temporary employment contracts.
Article 42.
1. The Parties undertake to authorise in freely convertible currency, any payments on the current account of balance of payments between residents of the Community and of the Kyrgyz Republic connected with the movement of goods, services or persons made in accordance with the provisions of this Agreement.
2. With regard to transactions on the capital account of balance of payments, from entry into force of the Agreement, the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the Host country and investments made in accordance with the provisions of Chapter II, and the liquidation or repatriation of these investments and of any profit stemming therefrom shall be ensured.
3. Without prejudice to paragraph 2 or to paragraph 5, as from entry into force of this Agreement, no new foreign exchange restrictions on the movement of capital and current payments connected therewith between residents of the Community and the Kyrgyz Republic shall be introduced and the existing arrangements shall not become more restrictive.
4. The Parties shall consult each other with a view to facilitating the movement of forms of capital other than those referred to in paragraph 2 above between the Community and the Kyrgyz Republic in order to promote the objectives of this Agreement.
5. With reference to the provisions of this Article, until a full convertibility of the Kyrgyz currency within the meaning of Article VIII of the Articles of Agreement of the International Monetary Fund (IMF) is introduced, the Kyrgyz Republic may in exceptional circumstances apply exchange restrictions connected with the granting or taking up of short and medium-term financial credits to the extent that such restrictions are imposed on the Kyrgyz Republic for the granting of such credits and are permitted according to the Kyrgyz Republic's status under the IMF. The Kyrgyz Republic shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. The Kyrgyz Republic shall inform the Cooperation Council promptly of the introduction of such measures and of any changes therein.
6. Without prejudice to paragraphs 1 and 2, where, in exceptional circumstances, movement of capital between the Community and the Kyrgyz Republic causes, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or the Kyrgyz Republic, the Community and the Kyrgyz Republic, respectively, may take safeguard measures with regard to movements of capital between the Community and the Kyrgyz Republic for a period not exceeding six months if such measures are strictly necessary.
Article 43.
1. Pursuant to the provisions of this Article and of Annex II, the Kyrgyz Republic shall continue to improve the protection of intellectual, industrial and commercial property rights in order to provide, by the end of the fifth year after the entry into force of the Agreement, for a level of protection similar to that existing in the Community, including effective means of enforcing such rights. The Cooperation Council may decide to extend the above period, in the light of particular circumstances prevailing in the Kyrgyz Republic.
2. By the end of the fifth year after entry into force of the Agreement, the Kyrgyz Republic shall accede to the multilateral conventions on intellectual, industrial and commercial property rights referred to in paragraph 1 of Annex II to which Member States are parties or which are de facto applied by Member States, according to the relevant provisions contained in these conventions.
Article 44.
1. The Parties recognise that an important condition for strengthening the economic links between the Kyrgyz Republic and the Community is the approximation of Kyrgyz Republic's existing and future legislation to that of the Community. The Kyrgyz Republic shall endeavour to ensure that its legislation will be gradually made compatible with that of the Community.
2. The approximation of laws shall extend to the following areas in particular: customs law, company law, banking law, company accounts and taxes, intellectual property, protection of workers at the workplace, financial services, rules on competition, public procurement, protection of health and life of humans, animals and plants, the environment, consumer protection, indirect taxation, technical rules and standards, nuclear laws and regulations and transport.
3. The Community shall provide the Kyrgyz Republic with technical assistance for the implementation of these measures, which may include, inter alia:
- The exchange of experts,
- The provision of early information especially on relevant legislation,
- Organisation of seminars,
- Training activities,
- Aid for translation of Community legislation in the relevant sectors.
4. The Parties agree to examine ways to apply their respective competition laws on a concerted basis in such cases where trade between them is affected.
Article 45.
1. The Community and the Kyrgyz Republic shall establish economic cooperation aimed at contributing to the process of economic reform and recovery and sustainable development of the Kyrgyz Republic. Such cooperation shall strengthen existing economic links, to the benefit of both parties.
2. Policies and other measures will be designed to bring about economic and social reforms and restructuring of the economic system in the Kyrgyz Republic and will be guided by the requirements of sustainability and harmonious social development; they will also fully incorporate environmental considerations.
3. To this end the cooperation will concentrate, in particular, on economic and social development, human resources development, support for enterprises (including privatisation, investment and development of financial services), agriculture and food, energy and civil nuclear safety, transport, tourism, environmental protection and regional cooperation.
4. Special attention shall be devoted to measures capable of fostering cooperation between the Independent States with a view to stimulating a harmonious development of the region.
5. Where appropriate, economic cooperation and other forms of cooperation provided for in this Agreement may be supported by technical assistance from the Community, taking into account the Community's relevant Council regulation
Applicable to technical assistance in the Independent States, the priorities agreed upon in the indicative programme related to Community technical assistance to the Kyrgyz Republic and its established coordination and implementation procedures.
Article 46. Industrial Cooperation
1. Cooperation shall aim at promoting the following in particular:
- The development of business links between economic operators of both sides,
- Community participation in Kyrgyzstan's efforts to restructure its industry,
- The improvement of management,
- The development of appropriate commercial rules and practices,
- Environmental protection.
2. The provisions of this Article shall not affect the enforcement of Community competition rules applicable to undertakings.
Article 47. Investment Promotion and Protection
1. Bearing in mind the respective powers and competences of the Community and the Member States, cooperation shall aim to establish a favourable climate for private investment, both domestic and foreign, especially through better conditions for investment protection, the transfer of capital and the exchange of information on investment opportunities.
2. The aims of cooperation shall be in particular:
- The conclusion, where appropriate, between the Member States and the Kyrgyz Republic of agreements for the promotion and protection of investment,
- The conclusion, where appropriate, between the Member States and the Kyrgyz Republic of agreements to avoid double taxation,
- The creation of favourable conditions for attracting foreign investments into the Kyrgyz economy,
- To establish stable and adequate business law and conditions, and to exchange information on laws, regulations and administrative practices in the field of investment,
- To exchange information on investment opportunities in the form of, inter alia, trade fairs, exhibitions, trade weeks and other events.
Article 48. Public Procurement
The Parties shall cooperate to develop conditions for open and competitive award of contracts for goods and services in particular through calls for tenders.
Article 49. Cooperation In the Field of Standards and Conformity Assessment
1. Cooperation between the Parties shall promote alignment with internationally agreed criteria, principles and guidelines followed in the field of quality. The required actions will facilitate progress towards mutual recognition in the field of conformity assessment, as well as the improvement of Kyrgyz product quality.
2. To this end they shall seek to cooperate in technical assistance projects which will:
- Promote appropriate cooperation with organisations and institutions specialised in these fields,
- Promote the use of Community technical regulations and the application of European standards and conformity assessment procedures,
- Permit the sharing of experience and technical information in the field of quality management.
Article 50. Mining and Raw Materials
1. The Parties shall aim at increasing investment and trade in mining and raw materials.
2. The cooperation shall focus in particular on the following areas:
- Exchange of information on the prospects of the mining and non-ferrous metals sectors,
- The establishment of a legal framework for cooperation,
- Trade matters,
- The adoption and implementation of environmental legislation,
- Training,
- Safety in the mining industry.
Article 51. Cooperation In Science and Technology
1. The Parties shall promote cooperation in civil scientific research and technological development (RTD) on the basis of mutual benefit and, taking into account the availability of resources, adequate access to their respective programmes and subject to appropriate levels of effective protection of intellectual, industrial and commercial property rights (IPR).
2. Science and technology cooperation shall cover:
- The exchange of scientific and technical information,
- Joint RTD activities,
- Training activities and mobility programmes for scientists, researchers and technicians engaged in RTD on both sides.
Where such cooperation takes the form of activities involving education and/or training, it should be carried out in accordance with the provisions of Article 52.
The Parties, on the basis of mutual agreement, can engage in other forms of cooperation in science and technology.
In carrying out such cooperation activities, special attention shall be devoted to the redeployment of scientists, engineers, researchers and technicians which are or have been engaged in research and/or production of weapons of mass destruction.
3. The Cooperation covered by this Article shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the procedures adopted by each Party, and which shall set out, inter alia, appropriate IPR provisions.
Article 52. Education and Training
1. The Parties shall cooperate with the aim of raising the level of general education and professional qualifications in the Kyrgyz Republic, both in the public and private sectors.
2. The cooperation shall focus in particular on the following areas:
Updating higher education and training systems in the Kyrgyz Republic including the system of certification of higher educational establishments and diplomas of higher education,
The training of public and private sector executives and civil servants in priority areas to be determined,
Cooperation between educational establishments and between educational establishments and firms,
Mobility for teachers, graduates, administrators, young scientists and researchers, and young people,
Promoting teaching in the field of European studies within the appropriate institutions,
Teaching Community languages,
Post-graduate training of conference interpreters,
Training of journalists,
Training of trainers.
3. The possible participation of one Party in the respective programmes in the field of education and training of the other Party could be considered in accordance with their respective procedures and, where appropriate, institutional frameworks and plans of cooperation will then be established building on participation of the Kyrgyz Republic in the Community's Tempus programme.
Article 53. Agriculture and the Agro-industrial Sector
The purpose of cooperation in this area shall be the pursuance of agrarian reform, the modernisation, privatisation and restructuring of agriculture, the agro-industrial and service sectors in the Kyrgyz Republic, development of domestic and foreign markets for the Kyrgyz products, in conditions that ensure the protection of the environment, taking into account the necessity to improve security of food supply as well as the development of agri-business, the processing and distribution of agricultural products. The Parties shall also aim at the gradual approximation of Kyrgyz standards to Community technical regulations concerning industrial and agricultural food products including sanitary and phytosanitary standards.
Article 54. Energy
1. Cooperation shall take place within the principles of the market economy and the European Energy Charter, against a background of the progressive integration of the energy markets in Europe.
2. The cooperation shall include among others the following areas:
The environmental impact of energy production supply and consumption, in order to prevent or minimise the environmental damage resulting from these activities,
Improvement of the quality and security of energy supply, including diversification of supply, in an economic and environmentally sound manner,
Formulation of energy policy,
Improvement in management and regulation of the energy sector in line with a market economy,
The introduction of the range of institutional, legal, fiscal and other conditions necessary to encourage increased energy trade and investment,
Promotion of energy saving and energy effectiveness,
Modernisation of energy infrastructure,
Improvement of energy technologies in supply and end use across the range of energy types,
Management and technical training in the energy sector,
Security in energy supply, transportation and transit of energy and energy materials.