Title
PARTNERSHIP AND CO-OPERATION AGREEMENT
Establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, 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 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 UKRAINE,
Of the other part,
TAKING ACCOUNT of the wish of the Parties to establish close relations building upon the existing historical links between them;
CONSIDERING the importance of developing co-operative links between the Community, its Member States and Ukraine and the common values that they share;
RECOGNIZING that the Community and Ukraine wish to strengthen these links and to establish partnership and co-operation 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 Co-operation, signed on 18 December 1989;
CONSIDERING the commitment of the Community and its Member States and of Ukraine 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 co-operate to this end in the framework of the United Nations and the Conference on Security and Co-operation in Europe;
CONSIDERING the firm commitment of the Community and its Member States and of Ukraine to the full implementation of all principles and provisions contained in the Final Act of the Conference on Security and Co-operation in Europe (CSCE), the concluding documents of the Madrid and Vienna follow up meetings, the document of the CSCE Bonn Conference on Economic Co-operation, the Charter of Paris for a New Europe and the CSCE Helsinki Document 1992, "the Challenges of Change";
RECOGNIZING in that context that support of independence, sovereignty and territorial integrity of Ukraine will contribute to safeguarding of peace and stability in the region of Central and Eastern Europe and on the European Continent as a whole;
CONFIRMING the attachment of the Community and its Member States and of Ukraine to the European Energy Charter and to the Declaration of the Lucerne Conference, April 1993;
CONVINCED of the paramount importance of the rule of law and respect for human rights, particularly those of minorities, the establishment of a multiparty system with free and democratic elections and economic liberalization aimed at setting up a market economy;
BELIEVING that there is a necessary connection between full implementation of partnership on the one hand, and continuation of the actual accomplishment of Ukraine's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for co-operation, notably in the light of the conclusions of the CSCE Bonn Conference;
DESIROUS of encouraging the process of regional co-operation 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;
RECOGNIZING AND SUPPORTING the wish of Ukraine to establish close co-operation with European institutions;
TAKING ACCOUNT of the Community's willingness to develop economic co-operation and provide technical assistance, as appropriate, for the implementation of economic reform in Ukraine;
BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between Ukraine and a wider area of co-operation in Europe and neighbouring regions and Ukraine's progressive integration into the open international trading system;
CONSIDERING the commitment of the Parties to liberalize trade, based on the principles contained in the General Agreement on Tariffs and Trade (GATT), as amended by the Uruguay Round;
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;
WELCOMING AND RECOGNIZING the importance of Ukraine's efforts, aimed at transition of its economy away from a state trading country with a centrally planned economy into a market economy;
CONVINCED that continued progress towards a market economy will be fostered by co-operation between the Parties in the forms set out in this Agreement;
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 modernization;
DESIROUS of establishing close co-operation in the area of environmental protection taking into account the interdependence existing between the Parties in this field;
BEARING in mind the intention of the Parties to develop their co-operation in the field of civil science and technologies, including space research, in view of the complementarity of their activities in this area;
DESIROUS of establishing cultural co-operation 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 Ukraine, 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 close political relations;
- To promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable development;
- To provide a basis for mutually advantageous economic, social, financial, civil scientific technological and cultural co-operation;
- To support Ukrainian efforts to consolidate its democracy and to develop its economy and to complete the transition into a market economy.
Article 2.
Respect for the democratic principles and human rights as defined in particular in 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 co-operation among themselves in compliance with the principles of the Helsinki Final Act and with international law and in the spirit of good neighbourly relations and will make every effort to encourage this process.
In view of the above the Parties consider that the development of their relations should take due account of Ukraine's wish to maintain co-operative relations with other Independent States.
Article 4.
The Parties undertake to consider, in particular when Ukraine has further advanced in the process of economic reform, developments of the relevant Titles of this Agreement, in particular Title III and Article 49, with a view to the establishment of a free trade area between them. The Co-operation Council may make recommendations on such developments to the Parties. Such developments shall only be put into effect by virtue of an agreement between the Parties in accordance with their respective procedures. The Parties shall consult each other in the year 1998 whether circumstances, and in particular Ukraine's advances in market oriented economic reforms and the economic conditions prevailing there at that time, allow the beginning of negotiations on the establishment of a free trade area.
Article 5.
The Parties undertake to examine together, by mutual consent, amendments which it may be appropriate to make to any part of the Agreement in view of changes in circumstances, and in particular of the situation arising from Ukraine's accession to GATT. The first examination shall take place three years after the entry into force of the Agreement or when Ukraine becomes a Contracting Party of GATT, whichever is earlier.
Article 6.
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 Ukraine, support the political and economic changes underway in that country and contribute to the establishment of new forms of co-operation. The political dialogue:
- Shall strengthen the links of Ukraine with the Community, and thus with the community of democratic nations. The economic convergence achieved through this Agreement will lead to more intense political relations;
- Shall bring about an increasing convergence of positions on international issues of mutual concern thus increasing security and stability;
- Shall foresee that the Parties endeavour to co-operate on matters pertaining to the strengthening of stability and security in Europe, the observance of the principles of democracy, the respect and promotion of human rights, particularly those of minorities and shall hold consultations, if necessary, on the relevant matters.
Article 7.
Consultations as appropriate shall be held between the Parties at the highest political level.
At ministerial level, political dialogue shall take place within the Co-operation Council established in Article 85 and on other occasions including with the Union Troika by mutual agreement.
Article 8.
Other procedures and mechanisms for political dialogue shall be set up by the Parties by establishing appropriate contacts, exchanges and consultations, in particular in the following forms:
- Regular meetings at the level of the senior officials between representatives of Ukraine and representatives of the Community;
- Taking full advantage of all diplomatic channels between the parties, including appropriate contacts in the bilateral as well as the multilateral field, such as United Nations, CSCE meetings and elsewhere;
- Exchanging regular information on matters of mutual interest concerning political co-operation in Europe;
- Any other means which would contribute to consolidating and developing political dialogue.
Article 9.
Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Co-operation Committee which shall be established under Article 90.
Article 10.
1. The Parties shall accord to one another most-favoured-nation treatment according to Article I, paragraph 1 of the GATT.
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.
Article 11.
1. The Parties agree that the principle of freedom of transit of goods is an essential condition of attaining the objectives of this Agreement.
In this connection each Party shall provide for 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 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 12.
The provisions of Article 10(1) and Article 11(2) shall not apply, during a transitional period expiring on 31 December 1998 or the accession of Ukraine to the GATT, whichever is earlier, to advantages defined in Annex I granted by Ukraine to other Independent States as from the day preceding the date of entry into force of the Agreement.
Article 13.
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 14.
Goods originating in Ukraine and the Community respectively shall be imported into the Community and Ukraine respectively free of quantitative restrictions without prejudice to the provisions of Articles 18, 21, 22 and Annex II to 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 Community.
Article 15.
1. The products of the territory of one Party imported into the territory of the other Party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products.
2. Moreover, these products shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provision of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the nationality of the product.
Article 16.
The following Articles of the GATT shall be applicable mutatis mutandis between the two Parties.
1) Article VII, paragraphs 1, 2, 3, 4a, 4b, 4d, 5;
2) Article VIII;
3) Article IX;
4) Article X.
Article 17.
Goods shall be traded between the Parties at market-related prices.
Article 18.
1. Where any product is being imported into the territory of one of the Parties in such increased quantities and under such conditions as to cause or threaten to cause substantial injury to domestic producers of like or direct competitive products, the Community or Ukraine, 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 Ukraine, as the case may be, shall supply the Co-operation Committee with all relevant information with a view to seeking a solution acceptable to both Parties.
3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of referral to the Co-operation Committee 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 Parties shall give priority to those which cause least disturbance to the achievement of the aims of this Agreement.
Article 19.
Nothing in this Title, and in Article 18 in particular 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.
In respect of anti-dumping or subsidies investigations, each Party agrees to examine submissions by the other Party and to inform the interested parties concerned of the essential facts and considerations on the basis of which a final decision is to be made. Before definitive anti-dumping and countervailing duties are imposed, the Party shall do the utmost to bring about a constructive solution to the problem.
Article 20.
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 21.
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 5 May 1993 and applied provisionally since 1 January 1993.
Article 22.
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 14 and upon entry into force, by the provisions of an agreement on quantitative arrangements concerning exchanges of ECSC steel products.
2. A contact group on coal and steel matters has been set up, comprizing representatives of the Community on the one hand, and representatives of Ukraine on the other.
The contact group shall exchange, on a regular basis, information on all coal and steel matters of interest to the Parties.
Article 23.
Trade in nuclear materials shall be subject to the provisions of a specific Agreement to be concluded between the European Atomic Energy Community and Ukraine.
Part IV. Provisions Affecting Business and Investment
Article 24.
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 Ukrainian 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 Ukraine, Ukraine shall endeavour to ensure that the treatment accorded to nationals of a Member State, legally employed in the territory of Ukraine shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals.
Article 25.
Co-ordination of Social Security The Parties shall conclude agreements in order:
1) to adopt, subject to the conditions and modalities applicable in each Member State, the provisions necessary for the co-ordination of social security systems for workers of Ukrainian nationality, legally employed in the territory of a Member State. These provisions will in particular ensure that:
- All periods of insurance, employment or resident completed by such workers in the various Member States shall be added together for the purpose of pensions in respect of old age, invalidity and death and for the purpose of medical care for such workers;
- Any pensions in respect of old age, death, invalidity, industrial accidents or occupational disease, with the exception of the special non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;
2) to adopt, subject to the conditions and modalities applicable in Ukraine, the provisions necessary to accord to workers who are nationals of a Member State and legally employed in Ukraine, treatment similar to that specified in the second indent of paragraph (i) .
Article 26.
The measures to be taken in accordance with Article 25 shall not affect any rights or obligations arising from bilateral agreements linking Ukraine and the Member States where those agreements provide for more favourable treatment of nationals of Ukraine or of the Member States.
Article 27.
The Co-operation Council shall examine which joint efforts can be made to control illegal immigration taking into account the principle and practice of readmission.
Article 28.
The Co-operation 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 29.
The Co-operation Council shall make recommendations for the implementation of Articles 24, 27 and 28.
Article 30.
1. (a) The Community and its Member States shall grant for the establishment of Ukrainian companies in their territories treatment no less favourable than that accorded to companies of any third country, and this in conformity with their legislation and regulations.
(b) Without prejudice to the reservations listed in Annex IV, the Community and its member States shall grant to subsidiaries of Ukrainian companies established in their territories a treatment no less favourable than that granted to any Community companies, in respect of their operation, and this in conformity with their legislation and regulations.
(c) The Community and its Member States shall grant to branches of Ukrainian companies established in their territories a treatment no less favourable than that accorded to branches of companies of any third country, in respect of their operation, and this in conformity with their legislation and regulations.
2. (a) Without prejudice to the reservations listed in Annex V, Ukraine shall grant for the establishment of Community companies in its territory, a treatment no less favourable than that accorded to its own companies or to companies of any third country whichever is the better, and this in conformity with its legislation and regulations.