Title
EUROPE AGREEMENT establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Latvia, 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 REPUBLIC OF AUSTRIA,
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 on European Union, 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 'the Member States`, and
the EUROPEAN COMMUNITY, the EUROPEAN ATOMIC ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY,
hereinafter referred to as 'the Community`,
acting within the framework of the European Union,
of the one part, and
the REPUBLIC OF LATVIA,
hereinafter referred to as 'Latvia`,
of the other part,
RECALLING the historical links between the parties and the common values they share;
RECOGNIZING that the Community and Latvia wish to reinforce these links, to establish close and lasting relations on a basis of reciprocity allowing Latvia to participate in the process of European integration, in reinforcing and further developing the relations previously established, in particular via the Agreement on Trade and Commercial and Economic Cooperation and the Agreement on Free Trade and Trade-Related Matters;
CONSIDERING the commitment to the intensification of political and economic liberties which constitute the basis of this Agreement and to further development of Latvia's new economic and political system which respects - in accordance inter alia with the undertakings made within the context of the Conference on Security and Cooperation in Europe (CSCE) and the Organization for Security and Cooperation in Europe (OSCE) - the rule of law and human rights, including the rights of persons belonging to minorities, a multiparty system with free and democratic elections and liberalization aimed at completion of sustainable transition to market economy;
SHARING the understanding that Latvia has made considerable and successful reform efforts in the political and economic fields and that these efforts will be pursued;
CONSIDERING the commitment to the implementation of commitments made in the framework of the CSCE, in particular those set out in the Helsinki Final Act, the concluding documents of the Madrid, Vienna and Copenhagen meetings, those of the Charter of Paris for a New Europe, the conclusions of the CSCE's Bonn Conference, the CSCE Helsinki document 1992, the European Convention on Human Rights, the European Energy Charter Treaty as well as the Ministerial Declaration of the Lucerne Conference of 30 April 1993;
WILLING to promote improved contacts among their citizens as well as the free flow of information and ideas, as agreed by the parties in the framework of the CSCE and the OSCE;
CONSCIOUS of the importance of this Agreement in establishing and enhancing in Europe a system of stability based on cooperation, with the European Union as one of the cornerstones;
RECOGNIZING that there is a need to continue, with the Community's help, Latvia's political and economic reform;
TAKING ACCOUNT of the Community's wishes to contribute to the implementation of the reforms and to assist Latvia in facing the economic and social consequences of structural adjustment;
RECOGNIZING that full implementation of the Agreement is linked to the implementation of a coherent programme of economic and political reform by Latvia;
RECOGNIZING the need for continuing regional cooperation among the Baltic States, taking into account that closer integration between the European Union and the Baltic States, the Baltic States among themselves and also in a wider regional context, should proceed in parallel;
CONSIDERING the commitment to liberalize trade based on the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) principles;
EXPECTING that this Agreement will create a new climate for economic relations between them and above all for the development of trade and trade-related matters and investment, which are essential to economic restructuring and the renewal of technology;
BEARING in mind that political dialogue on matters of mutual interest has been established by the Joint Declaration of May 1992;
DESIROUS of developing and intensifying regular political dialogue within the multilateral framework established by the Copenhagen European Council of June 1993 and enhanced by the decision of the Council of the European Union of 7 March 1994 and the conclusions of the Essen European Council of December 1994;
RECALLING that Latvia has been an associated partner of the Western European Union (WEU) since May 1994 and that it participates in the North Atlantic Treaty Organization (NATO) Partnership for Peace Programme;
RECOGNIZING the contribution which the Pact on Stability in Europe can make to promoting stability and good-neighbourly relations in the Baltic region, and confirming their determination to work together for the success of this initiative;
TAKING ACCOUNT of the Community's willingness to employ instruments of cooperation and economic, technical and financial assistance on a global and multiannual basis;
BEARING in mind the economic and social disparities between the Community and Latvia and thus recognizing that the objectives of this association should be reached through appropriate provisions of the Agreement;
DESIROUS of establishing cultural cooperation and developing exchanges of information;
WILLING to set up a framework for cooperation aimed at preventing illegal activities;
RECOGNIZING the fact that Latvia's ultimate objective is to become a member of the European Union and that association through this Agreement will, in the view of the Parties, help Latvia to achieve this objective;
TAKING INTO ACCOUNT the accession preparation strategy adopted by the Essen European Council of December 1994, which is being politically implemented by the creation, between the associated States and the Institutions of the European Union, of structured relations which encourage mutual trust and will provide a framework for addressing topics of common interest,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An association is hereby established between the Community and its Member States, of the one part, and Latvia, of the other part.
2. The objectives of this association are:
- to provide an appropriate framework for the political dialogue between the Parties allowing the development of close political relations,
- to establish gradually a free trade area between the Community and Latvia covering substantially all trade between them,
- to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster dynamic economic development and prosperity in Latvia,
- to provide a basis for economic, financial, cultural and social cooperation and cooperation in the prevention of illegal activities, as well as for the Community's assistance to Latvia,
- to support Latvia's efforts to develop its economy and to complete the sustainable transition into a market economy,
- to provide an appropriate framework for the gradual integration of Latvia into the European Union. Latvia shall work towards fulfilling the necessary requirements in this respect,
- to set up institutions suitable to make the association effective.
Title I. GENERAL PRINCIPLES
Article 2.
1. Respect for democratic principles and human rights, established by the Helsinki Final Act and in 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 this Agreement.
2. The Parties consider that it is essential for the future prosperity and stability of the region that the Baltic States should maintain and develop cooperation among themselves and will make every effort to enhance this process.
Article 3.
1. The association includes a transitional period which is referred to in specific Articles hereinafter and which ends at the latest on 31 December 1999.
2. The Association Council referred to in Article 110, bearing in mind that the principles of the market economy are essential to the present association, shall proceed regularly to examine the application of the Agreement and the implementation by Latvia of economic reforms on the basis of the principles referred to in the preamble.
3. The transitional period envisaged under paragraph 1 shall apply neither to Title II nor to Title III.
Title II. POLITICAL DIALOGUE
Article 4.
The political dialogue between the European Union and Latvia shall be developed and intensified. It shall accompany and consolidate the rapprochement between the European Union and Latvia, support the political and economic changes underway in that country or already realized, and contribute to the establishment of close links of solidarity and new forms of cooperation between the Parties. The political dialogue is intended to promote in particular:
- Latvia's progressive rapprochement with the European Union,
- an increasing convergence of positions of the Parties on international issues and, in particular, on those issues likely to have substantial effects on one or the other Party,
- better cooperation in areas covered by the Common Foreign and Security Policy of the European Union,
- security and stability in Europe.
Article 5.
Political dialogue shall take place within the multilateral framework and according to the forms and practices established with the associated countries of central Europe.
Article 6.
1. At Ministerial level, bilateral political dialogue shall take place within the Association Council, which shall have the general responsibility for any matter which the Parties might wish to put to it.
2. With the agreement of the Parties, other procedures for political dialogue shall be established, in particular:
- meetings, where necessary, of senior officials (at the level of political directors) representing Latvia, on the one hand, and the Presidency of the Council of the European Union and the Commission, on the other,
- taking full advantage of all diplomatic channels between the Parties, including appropriate contacts in third countries and within the United Nations, the OSCE and other international fora,
- including Latvia in the group of countries receiving regular information on the activities managed within the framework of the Common Foreign and Security Policy as well as exchanging information with a view to achieving the objectives defined in Article 4,
- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
Article 7.
At parliamentary level, political dialogue shall take place within the framework of the Parliamentary Committee of the association between the European Communities and their Member States and the Republic of Latvia (hereinafter referred to as the 'Parliamentary Committee`).
Title III. FREE MOVEMENT OF GOODS
Article 8.
1. The Community and Latvia shall gradually establish a free trade area in a transitional period lasting a maximum of four years starting from the entry into force of the Agreement on Free Trade and Trade-Related Matters on 1 January 1995, in accordance with the provisions of this Agreement and in conformity with those of the GATT and the WTO.
2. The combined nomenclature of goods based on the Harmonized System 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 that set out in Annexes II to IV and X, or that actually applied erga omnes on 1 January 1995, whichever is the lower.
4. If, after 1 January 1995, 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 the date when such reductions are applied.
5. The Community and Latvia 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 Latvia 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 inclusive do not apply to products mentioned in Article 16.
3. Trade between the Parties in items covered by the Treaty establishing the European Atomic Energy Community will be conducted in accordance with the provisions of that Treaty.
Article 10.
1. Customs duties on imports applicable in the Community to products originating in Latvia are abolished on 1 January 1995.
2. Quantitative restrictions on imports into the Community and measures having an equivalent effect are abolished on 1 January 1995 with regard to products originating in Latvia.
Article 11.
1. Customs duties on imports applicable in Latvia to products originating in the Community other than those listed in Annexes II and III are abolished on 1 January 1995.
2. Customs duties on imports applicable in Latvia to products originating in the Community which are listed in Annex II shall be progressively reduced in accordance with the following timetable:
- on 1 January 1996, each duty shall be reduced to 50 % of the basic duty,
- on 1 January 1997, the remaining duties shall be eliminated.
3. Customs duties on imports applicable in Latvia to products originating in the Community which are listed in Annex III shall be progressively reduced in accordance with the following timetable:
- on 1 January 1997, each duty shall be reduced to 50 % of the basic duty,
- on 1 January 1999, the remaining duties shall be eliminated.
4. Quantitative restrictions on imports into Latvia of products originating in the Community and measures having an equivalent effect are abolished on 1 January 1995.
Article 12.
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 13.
Any charges having an effect equivalent to customs duties on imports are abolished on 1 January 1995 in trade between the Community and Latvia.
Article 14.
1. Customs duties on exports and charges having equivalent effect are abolished by 1 January 1995 between the Community and Latvia, with the exception of those listed in Annex IV, which shall be abolished by Latvia at the latest at the end of 1998.
2. Quantitative restrictions on exports to Latvia and any measures having equivalent effect are abolished by the Community on 1 January 1995.
3. Quantitative restrictions on exports to the Community and any measures having equivalent effect are abolished by Latvia on 1 January 1995.
Article 15.
Each Party declares its readiness to reduce its customs duties in trade with the other Party more rapidly than is provided for in Articles 10 and 11 if its general economic situation and the situation of the economic sector concerned so permit.
The Association Council may make recommendations to this effect.
Article 16.
1. The textile products of Latvian origin listed in Annex V to this Agreement shall benefit from a suspension of customs duties on imports into the Community, under the conditions set out in that Annex. The Annex may be revised by decision of the Association Council, in accordance with the procedures set out in Article 112.
2. Protocol 1 lays down the other arrangements applicable to the textiles products referred to therein.
Article 17.
1. The provisions of this Chapter do not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex VI in respect of products originating in Latvia.
2. The provisions of this Chapter do not preclude the introduction of an agricultural component by Latvia in the duties applicable to the products listed in Annex VI in respect of products originating in the Community.
Chapter II. AGRICULTURE
Article 18.
1. The provisions of this Chapter shall apply to agricultural products originating in the Community and in Latvia.
2. The term 'agricultural products` means the products listed in Chapters 1 to 24 of the combined nomenclature and the products listed in Annex I, but excluding fishery products as defined by Article 22 (2).
Article 19.
Protocol 2 lays down the trade arrangements for processed agricultural products which are listed therein.
Article 20.
1. As from 1 January 1995 no quantitative restrictions apply to imports into the Community of agricultural products originating in Latvia nor to imports into Latvia of agricultural products originating in the Community.
2. The Community and Latvia shall grant each other the concessions referred to in Annexes VII to XI in accordance with the conditions laid down therein.
3. The concessions referred to in paragraph 2 may be subject to revision by agreement between the Parties within a period lasting until 31 December 1997 and on the basis of the principles and procedures set out in paragraph 4.
4. Taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of the agricultural policy in Latvia, of the role of agriculture in Latvia's economy, of the production and export potential of its traditional branches and markets, the Community and Latvia shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibilities of granting each other further concessions.
Article 21.
Notwithstanding other provisions of this Agreement, and in particular Article 30, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party, which are the subject of concessions granted pursuant to Article 20, cause serious disturbance to the markets in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the measures it deems necessary.
Chapter III. FISHERIES
Article 22.
1. The provisions of this Chapter shall apply to fishery products originating in the Community and in Latvia.
2. The term 'fishery products` means the products listed in Chapter 3 of the combined nomenclature and product groups covered by the combined nomenclature codes 0511 91 10, 0511 91 90, 1604, 1605, 1902 20 10 and 2301 20 00.
Article 23.
1. The Community and Latvia shall grant each other the concessions referred to in Annexes XII and XIII in accordance with the conditions laid down therein.
2. The provisions of Articles 20 (4) and 21 shall apply mutatis mutandis to fishery products.