21998A0219(02)
Partnership and Cooperation Agreement between the European
Communities and their Member States, and Ukraine - Protocol on
mutual assistance between authorities in customs matters - Final Act
- Joint Declarations - Exchange of Letters in relation to the
establishment of companies - Declaration of the French Government
Dates:
OF DOCUMENT: 14/06/1994
OF EFFECT: 01/03/1998; ENTRY INTO FORCE SEE ART 108.2 AND
398D0149
OF SIGNATURE: 14/06/1994; LUXEMBOURG
OF END OF VALIDITY: 99/99/9999
Authentic language: THE OFFICIAL LANGUAGES ; GERMAN ; ENGLISH ;
DANISH ; SPANISH ; FRENCH ; GREEK ; ITALIAN ; DUTCH ; PORTUGUESE ;
OTHER THAN COMMUNITY LANGUAGE ; UKRAINIAN ; FINNISH ; SWEDISH
Author:
EUROPEAN COMMUNITY ; EUROPEAN COAL AND STEEL COMMUNITY ; EUROPEAN
ATOMIC ENERGY COMMUNITY ; THE 12 MEMBER STATES ; BELGIUM ; DENMARK ;
FEDERAL REPUBLIC OF GERMANY ; GREECE ; SPAIN ; FRANCE ; IRELAND ;
ITALY ; LUXEMBOURG ; NETHERLANDS ; PORTUGAL ; UNITED KINGDOM ;
UKRAINE
Subject matter: EXTERNAL RELATIONS ; COOPERATION ; PROVISIONS UNDER
ARTICLE 235 EEC ; PROVISIONS IMPLEMENTING ARTICLE 95 - ECSC
Directory code: 11401030
EUROVOC descriptor: cooperation agreement ; European Community ; EC
countries ; Ukraine
Legal basis:
192E054-P2................ ADOPTION
192E057-P2F3.............. ADOPTION
192E066................... ADOPTION
192E073C-P2............... ADOPTION
192E075................... ADOPTION
192E084-P2................ ADOPTION
192E099................... ADOPTION
192E100................... ADOPTION
192E113................... ADOPTION
192E235................... ADOPTION
192E228-P2F2.............. ADOPTION
192E228-P3L2.............. ADOPTION
151K095................... ADOPTION
157A101-L2................ ADOPTION
Instruments cited:
185I077...................
185I081...................
185I244...................
185I249...................
185I280...................
294A1223(09)..............
279A0412(06)..............
296A0330(16)..............
294A1223(16)..............
390D0233..................
294A1223(01)..............
279A0412(07)..............
294A0517(20)..............
294A1231(51)..............
393R2053..................
Amendment to:
290A0315(01)...... AMENDMENT..... PARTIAL REPLACEMENT FR 01/03/1998
Amended by:
ADOPTED-BY.... 398D0149..........
LINKED-TO..... 200A1109(02)......
PARTNERSHIP AND COOPERATION AGREEMENT between the European
Communities and their Member States, and Ukraine
PARTNERSHIP AND COOPERATION AGREEMENT establishing a partnership
between the European Communities and their Member States, of the one
part, and Ukraine, of the other part
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 cooperative 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 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 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 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 Ukraine 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`,
RECOGNIZING in that context that support of independence,
sovereignty and territorial integrity of Ukraine will contribute to
the 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 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,
RECOGNIZING AND SUPPORTING the wish of Ukraine to establish close
cooperation with European institutions,
TAKING ACCOUNT of the Community's willingness to develop economic
cooperation 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 cooperation 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 cooperation 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 cooperation 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
cooperation 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 cooperation and improving the flow
of information,
HAVE AGREED AS FOLLOWS:
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 cooperation,
- to support Ukrainian efforts to consolidate its democracy and to
develop its economy and to complete the transition into a market
economy.
TITLE I
GENERAL PRINCIPLES
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 cooperation 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 cooperative 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 Cooperation 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.
TITLE II
POLITICAL DIALOGUE
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 under way in
that country and contribute to the establishment of new forms of
cooperation. 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 cooperate 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
Cooperation 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 cooperation 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 Cooperation Committee which shall
be established under Article 90.
TITLE III
TRADE IN GOODS
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.
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 Cooperation 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 Cooperation 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,
comprising 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.
TITLE IV
PROVISIONS AFFECTING BUSINESS AND INVESTMENT
CHAPTER I
LABOUR CONDITIONS
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 Coordination 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 coordination 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 residence 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 1.
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 Cooperation 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 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 29
The Cooperation Council shall make recommendations for the
implementation of Articles 24, 27 and 28.
CHAPTER II
CONDITIONS AFFECTING THE ESTABLISHMENT AND OPERATION OF COMPANIES
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 company, 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.
(b) Ukraine shall grant to subsidiaries and branches of Community
companies, established in its territory, treatment no less
favourable than that accorded to its own companies or branches
respectively or to companies or branches of any third country
respectively, whichever is the better, in respect of their
operations, and this in conformity with its legislation and
regulations.
3. The provisions of paragraphs 1 and 2 cannot be used so as to
circumvent a Party's legislation and regulations applicable to
access to specific sectors or activities by subsidiaries of
companies of the other Party established in the territory of such
first Party.
The treatment referred to in paragraph 1 and 2 shall benefit
companies established in the Community and Ukraine respectively at
the date of entry into force of this Agreement and companies
established after that date once they are established.
Article 31
1. The provisions of Article 30 shall not apply to air transport,
inland waterways transport and maritime transport, without prejudice
to the provisions of Article 104.
2. However, in respect of activities undertaken by shipping agencies
for the provision of international maritime transport services,
including intermodal activities involving a sea leg, each Party
shall permit to the companies of the other Party their commercial
presence in its territory in the form of subsidiaries or branches,
under conditions of establishment and operation no less favourable
than those accorded to its own companies or to subsidiaries or
branches of companies of any third country, whichever are the
better.
Such activities include, but are not limited to:
(a) marketing and sales of maritime transport and related services
through direct contact with customers, from quotation to invoicing,
whether these services are operated or offered by the service
supplier itself or by service suppliers with which the service
seller has established standing business arrangements;
(b) purchase and use, on their own account or on behalf of their
customers (and the resale to their customers) of any transport and
related services, including inward transport services by any mode,
particulary inland waterways, road and rail, necessary for the
supply of an integrated service;
(c) preparation of documentation concerning transport documents,
customs documents, or other documents related to the origin and
character of the goods transported;
(d) provision of business information of any means, including
computerized information systems and electronic data interchange
(subject to any non-discriminatory restrictions concerning
telecommunications);
(e) setting-up of any business arrangement, including participation
in the company's stock and the appointment of personnel recruited
locally (or, in the case of foreign personnel, subject to the relevant provisions of this Agreement), with any locally established
shipping agency;
(f) acting on behalf of the companies, organizing the call of the
ship or taking over cargoes when required.
Article 32
For the purposes of this Agreement:
(a) A 'Community company` or a 'Ukrainian company` respectively,
shall mean a company set up in accordance with the laws of a Member
State or of Ukraine respectively and having its registered office or
central administration or principal place of business in the
territory of the Community or Ukraine respectively. However, should
the company, set up in accordance with the laws of a Member State or
Ukraine respectively, have only its registered office in the
territory of the Community or Ukraine respectively, the company
shall be considered a Community or Ukrainian company respectively if
its operations possess a real and continuous link with the economy
of one of the Member States or Ukraine 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 Ukrainian
companies as referred to in (a) to take up economic activities by
means of the setting-up of subsidiaries and branches in Ukraine 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.
(g) With regard to international maritime transport, including
intermodal operations involving a sea leg, nationals of the Member
States or of Ukraine, established outside the Community or Ukraine
respectively, and shipping companies established outside the
Community or Ukraine and controlled by nationals of a Member State
or Ukrainian 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 Ukraine respectively in
accordance with their respective legislations.
Article 33
1. Notwithstanding any other provisions of this Agreement, a Party
shall not be prevented from taking measures for prudential reasons,
including for the protection of investors, depositors, policyholders
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
this Agreement, they shall not be used as a means of avoiding the
obligations of a Party under this Agreement.
2. Nothing in this 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 34
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 35
1. Notwithstanding the provisions of Chapter I, a Community company
or a Ukrainian company established in the territory of Ukraine 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 Ukraine and the Community respectively, employees
who are nationals of Community Member States and Ukraine
respectively, provided that such employees are key personnel as
defined in paragraph 2, and that they are employed exclusively by
companies, subsidiaries 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 'organizations` are 'intracorporate transferees` as defined in
(c) in the following categories, provided that the organization is a
legal person and that the persons concerned have been employed by it
or have been partners in it (other than as majority shareholders),
for at least the year immediately preceding such movement:
(a) Persons working in a senior position with an organization, 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 engage and dismiss or recommend
engaging, dismissing or other personnel actions.
(b) Persons working within an organization 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 'intracorporate transferee` is defined as a natural person
working within an organization 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 organization
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 organization, effectively pursuing like economic
activities in the territory of the other Party.
Article 36
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 44: the situations covered by such Article 44 shall be
solely governed by its provisions to the exclusion of any other.
3. Acting in the spirit of partnership and cooperation and in light
of provisions contained in Article 51, the Government of Ukraine
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 Ukraine 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 Ukraine 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 Ukraine would
result in rendering the conditions for establishment of Community
companies into its territory and for the operation of subsidiaries
and branches of Community companies established in Ukraine 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 Ukraine at the time of entry into force of the relevant act.
CHAPTER III
CROSS-BORDER SUPPLY OF SERVICES BETWEEN THE COMMUNITY AND UKRAINE
Article 37
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 Ukrainian companies who 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 38
The Parties shall cooperate with the aim of developing a
market-oriented service sector in Ukraine.
Article 39
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 Code of Conduct for
Liner Conferences, as applicable to one or other Contracting Party
to this Agreement. Non-conference 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 State
of the Community and the former Soviet Union;
(b) not introduce cargo-sharing clauses in 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, on 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.
Each Party shall grant, inter alia, no less favourable treatment,
than that accorded to a Party's own ships for the ships flying the
flag of the other Party with regard to access to ports open to
international trade, the use of infrastructure and auxiliary
maritime services of the ports, as well as related fees and charges,
customs facilities and the assignment of berths and facilities for
loading and unloading.
The same treatment shall also be accorded by each Party in respect
of ships operated by the other Party's nationals and companies,
which fly the flag of a third country, after a transitional period,
but not later than 1 July 1997.
3. Nationals and companies of the Community providing international
maritime transport services shall be free to provide international
sea-river services in the inland waterways of Ukraine and vice
versa.
Article 40
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 as defined in Article 99
after entry into force of this Agreement.
CHAPTER IV
GENERAL PROVISIONS
Article 41
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 42
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 so as to nullify or
impair the benefits accruing to any Party under the terms of a
specific provision of the Agreement. This provision does not
prejudice the application of Article 41.
Article 43
Companies which are controlled and exclusively owned by Ukrainian
companies and Community companies jointly shall also be
beneficiaries of the provisions of Chapters II, III and IV.
Article 44
Treatment granted by either Party to the other hereunder 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,
subsector and mode of supply.
Article 45
For the purposes of Chapters II, III and IV, no account shall be
taken of treatment accorded by the Community, its Member States or
Ukraine pursuant to commitments entered into in economic integration
agreements in accordance with the principles of Article V of the
GATS.
Article 46
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 Ukraine from distinguishing, in the application of the relevant
provisions of their fiscal legislation, between taxpayers who are
not in identical situations, in particular as regards their place of
residence.
Article 47
Without prejudice to Article 35, no provisions of Chapters II, III
and IV hereof shall be interpreted as giving the right to:
- nationals of the Member States or of Ukraine respectively to
enter, or stay in, the territory of Ukraine or the Community
respectively in any capacity whatsoever, and in particular as a
shareholder or partner in a company or manager or employed thereof
or supplier or recipient of services,
- Community subsidiaries or branches of Ukrainian companies to
employ or have employed in the territory of the Community nationals
of Ukraine,
- Ukrainian subsidiaries or branches of Community companies to
employ or have employed in the territory of Ukraine nationals of the
Member States,
- Ukrainian companies or Community subsidiaries or branches of
Ukrainian companies to supply Ukrainian persons to act for and under
the control of other persons by temporary employment contracts,
- Community companies or Ukrainian subsidiaries or branches of
Community companies to supply workers who are nationals of the
Member States by temporary employment contracts.
TITLE V
CURRENT PAYMENTS AND CAPITAL
Article 48
1. The Parties undertake to authorize in freely convertible
currency, any payments on the current account of balance of payments
between residents of the Community and of Ukraine 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 this 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 of Title IV, 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 Ukraine 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 between the Community and Ukraine in order to promote
the objectives of this Agreement.
5. With reference to the provisions of this Article, until a full
convertibility of Ukrainian currency within the meaning of Article
VIII of the Articles of Agreement of the International Monetary Fund
(IMF) is introduced, Ukraine 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 Ukraine for the granting of such credits
and are permitted according to Ukraine's status under the IMF.
Ukraine 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. Ukraine 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, movements of capital between the Community and
Ukraine cause, or threaten to cause, serious difficulties for the
operation of exchange rate policy or monetary policy in the
Community or Ukraine, the Community and Ukraine, respectively, may
take safeguard measures with regard to movements of capital between
the Community and Ukraine for a period not exceeding six months if
such measures are strictly necessary.
TITLE VI
COMPETITION, INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY
PROTECTION AND LEGISLATIVE COOPERATION
Article 49
1. The Parties agree to work to remedy or remove through the
application of their competition laws or otherwise, restrictions on
competition by enterprises or caused by State intervention in so far
as they may affect trade between the Community and the Ukraine.
2. In order to attain the objectives mentioned in paragraph 1:
2.1. The Parties shall ensure that they have and enforce laws
addressing restrictions on competition by enterprises within their
jurisdiction.
2.2. The Parties shall refrain from granting State aid favouring
certain undertakings or the production of goods other than primary
products as defined in the GATT, or the provision of services, which
distort or threaten to distort competition in so far as they affect
trade between the Community and Ukraine.
2.3. Upon request by one Party, the other Party shall provide
information on its aid schemes or on particular individual cases of
State aid. No information needs to be provided which is covered by
legislative requirements of the Parties on professional or
commercial secrets.
2.4. In the case of State monopolies of a commercial character, the
Parties declare their readiness, as from the fourth year from the
date of entry into force of this Agreement, to ensure that there is
no discrimination between nationals of the Parties regarding the
conditions under which goods are procured or marketed.
2.5. In the case of public undertakings or undertakings to which
Member States or Ukraine grant exclusive rights, the Parties declare
their readiness, as from the fourth year from the date of entry into
force of this Agreement, to ensure that there is neither enacted nor
maintained any measure distorting trade between the Community and
Ukraine to an extent contrary to the Parties' respective interests.
This provision shall not obstruct the performance, in law or fact,
of the particular tasks assigned to such undertakings.
3. Consultations may take place within the Cooperation Committee at
the request of the Community or Ukraine on the restrictions or
distortions of competition referred to in paragraphs 1 and 2 and on
the enforcement of their competition rules, subject to limitations
imposed by laws regarding disclosure of information, confidentiality
and business secrecy. Consultations may also comprise questions on
the interpretation of paragraphs 1 and 2.
4. The Parties with experience in applying competition rules shall
give full consideration to providing other Parties, upon request and
within available resources, technical assistance for the development
and implementation of competition rules.
5. The above provisions in no way affect the Parties' rights to
apply adequate measures, notably those referred to in Article 19, in
order to address distortions of trade in goods or services.
Article 50
1. Pursuant to the provisions of this Article and of Annex III,
Ukraine 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.
2. By the end of the fifth year after entry into force of the
Agreement, Ukraine shall accede to the multilateral conventions on
intellectual, industrial and commercial property rights referred to
in paragraph 1 of Annex III 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 51
1. The Parties recognize that an important condition for
strengthening the economic links between Ukraine and the Community
is the approximation of Ukraine's existing and future legislation to
that of the Community. Ukraine 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,
transport.
3. The Community shall provide Ukraine with technical assistance as
appropriate for the implementation of these measures which may
include in particular:
- the exchange of experts,
- the provision of early information especially on relevant
legislation,
- organization of seminars,
- training activities,
- aid for translation of Community legislation in the relevant
sectors.
TITLE VII
ECONOMIC COOPERATION
Article 52
1. The Community and Ukraine shall establish economic cooperation
aimed at contributing to the process of economic reform and recovery
and sustainable development of Ukraine. Such cooperation shall
strengthen and develop 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 Ukraine 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 on industrial
cooperation, investment promotion and protection, public
procurement, standards and conformity assessments, mining and raw
materials, science and technology, education and training,
agriculture and agro-industrial sector, energy, civil nuclear
sector, environment, transport, space, telecommunications, financial
services, money laundering, monetary policy, regional development,
social cooperation, tourism, small and medium-sized enterprises,
information and communication, consumer protection, customs,
statistical cooperation, economics and drugs.
4. Special attention shall be devoted to measures capable of
fostering cooperation between the independent States and other
neighbouring countries 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 Ukraine and its established coordination and implementation
procedures.
6. The Cooperation Council shall make recommendations as to the
development of cooperation in fields identified in paragraph 3.
Article 53 Industrial cooperation
1. Cooperation shall aim at promoting, in particular, the following:
- the development of business links between economic operators of
both sides, for example in view of the transfer of technologies and
know-how,
- Community participation in Ukraine's efforts to restructure and
technically upgrade its industry,
- the improvement of management,
- the development of appropriate commercial rules and practices,
including product marketing,
- environmental protection,
- adaptation of the structure of industrial production to the
standards of an advanced market economy,
- the conversion of the military-industrial complex.
2. The provisions of this Article shall not affect the enforcement
of Community competition rules applicable to undertakings.
Article 54 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 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 this cooperation shall be in particular:
- the conclusion, where appropriate, between the Member States and
Ukraine, of agreements for the promotion and protection of
investment,
- the conclusion, where appropriate, between the Member States and
Ukraine, of agreements to avoid double taxation,
- the creation of favourable conditions for attracting foreign
investment into the Ukrainian 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 55 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 56 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 action will facilitate
progress towards mutual recognition in the field of conformity
assessment, as well as the improvement of Ukrainian product quality.
2. To this end they shall seek:
- to promote appropriate cooperation with organizations and
institutions specialized in these fields,
- to promote the use of Community technical regulations and the
application of European standards and conformity assessment
procedures,
- to permit the sharing of experience and technical information in
the field of quality management.
Article 57 Mining and raw materials
2. The cooperation shall focus in particular on the following areas:
- exchange of information on the developments in the mining and
non-ferrous metals sectors,
- the establishment of a legal framework for cooperation,
- trade matters,
- the development of legislative and other measures in the field of
environmental protection,
- training,
- safety in the mining industry.
Article 58 Cooperation in science and technology
1. The Parties shall promote cooperation in civil scientific
research and technological development (R+TD) 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 R+TD activities,
- training activities and mobility programmes for scientists,
researchers and technicians engaged in R+TD in 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 59.
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 who are or have been engaged in research on and
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 59 Education and training
1. The Parties shall cooperate with the aim of raising the level of
general education and professional qualifications in Ukraine, 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 Ukraine
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, cooperation
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,
- postgraduate training of conference interpreters,
- training 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
Ukraine in the Community's Tempus programme.
Article 60 Agriculture and the agro-industrial sector
The purpose of cooperation in this area shall be the pursuance of
agrarian reform, the modernization, privatization and restructuring
of agriculture, the agro-industrial and service sectors in Ukraine,
development of domestic and foreign markets for Ukrainian products,
in conditions that ensure the protection of the environment, taking
into account the necessity to improve security of food supply. The
Parties shall also aim at the gradual approximation of Ukrainian
standards to Community technical regulations concerning industrial
and agricultural food products including sanitary and phytosanitary
standards.
Article 61 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 minimize the environmental
damage resulting from these activities,
- improvement of the quality and security of energy supply,
including diversification of suppliers, 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,
- modernization, development and diversification 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.
Article 62 Cooperation in the civil nuclear sector
1. Bearing in mind the respective powers and competences of the
Community and its Member States, cooperation in the civil nuclear
sector shall take place through the implementation of specific
agreements on trade in nuclear materials, nuclear safety and
thermonuclear fusion and in accordance with the legal procedures of
each Party.
2. The Parties shall cooperate, including in international forums,
in addressing the problems which have arisen as a consequence of the
Chernobyl disaster; cooperation could involve in particular:
- a joint study of the scientific problems related to the accident
at Chernobyl,
- combating the radioactive contamination of air, soil and water,
- monitoring and supervision of the radioactive condition of the
environment,
- dealing with emergency nuclear/radioactivity situations,
- decontamination of radioactively polluted land and handing of
nuclear waste,
- medical problems related to the impact of nuclear accidents on the
population health,
- solution of the safety problem of the destroyed fourth power unit
at Chernobyl,
- economic and administrative aspects of efforts to overcome the
disaster,
- training in the area of preventing and mitigating nuclear
accidents,
- scientific and technical aspects of the remedial activities
relating to the eradication of the consequences of the Chernobyl
disaster,
- other areas subject to the agreement of the Parties.
Article 63 Environment
1. Bearing in mind the European Energy Charter and the Declaration
of the Lucerne Conference 1993, the Parties shall develop and
strengthen their cooperation on environment and human health.
2. Cooperation shall aim at combating the deterioration of the
environment and in particular:
- effective monitoring of pollution levels and assessment of
environment; system of information on the state of the environment,
- combating local, regional and transboundary air and water
pollution,
- ecological restoration,
- sustainable, efficient and environmentally effective production
and use of energy; safety of industrial plants,
- classification and safe handling of chemicals,
- water quality,
- waste reduction, recycling and safe disposal, implementation of
the Basle Convention,
- the environmental impact of agriculture, soil erosion, and
chemical pollution,
- the protection of forests,
- the conservation of biodiversity, protected areas and sustainable
use and management of biological resources,
- land-use planning, including construction and urban planning,
- use of economic and fiscal instruments,
- global climate change,
- environmental education and awareness,
- implementation of the Espoo Convention on Environmental Impact
Assessment in a transboundary context.
3. Cooperation shall take place particularly through:
- planning for the handling of disasters and other emergency
situations,
- exchange of information and experts, including information and
experts dealing with the transfer of clean technologies and the safe
and environmentally sound use of biotechnologies,
- joint research activities,
- improvement of laws towards Community standards,
- cooperation at regional level, including cooperation within the
framework of the European Environment Agency, and at international
level,
- development of strategies, particularly with regard to global and
climatic issues and also in view of achieving sustainable
development,
- environmental impact studies.
Article 64 Transport
The Parties shall develop and strengthen their cooperation in the
field of transport.
This cooperation shall, inter alia, aim at restructuring and
modernizing transport systems and networks in Ukraine and developing
and ensuring, where appropriate, compatibility of transportation
systems in the context of achieving a more global transport system.
The cooperation shall include, inter alia:
- the modernizing of management and operations of road transport,
railways, ports and airports,
- modernization and development of railways, waterways, road, port,
airport and air navigation infrastructure including the
modernization of major routes of common interest and the
trans-European links for the above modes,
- promotion and development of multimodal transport,
- the promotion of joint research and development programmes,
- preparation of the legislative and institutional framework for
policy development and implementation including privatization of the
transport sector.
Article 65 Space
Bearing in mind the respective competences of the Community, its
Member States and the European Space Agency the Parties shall
promote, where appropriate, long-term cooperation in the areas of
civil space research, development and commercial applications. The
Parties will pay particular attention to initiatives making full use
of the complementarity of their respective space activities.
Article 66 Postal services and telecommunications
Within their respective powers and competences the Parties shall
expand and strengthen cooperation in the following areas:
- the establishment of policies and guidelines for the development
of the telecommunications sector and postal services,
- development of principles of a tariff policy and marketing in
telecommunications and postal services,
- encouraging the development of projects for telecommunications and
postal services and attracting investment,
- enhancing efficiency and quality of the provision of
telecommunications and postal services, amongst others through
liberalization of activities of subsectors,
- advanced application of telecommunications, notably in the area of
electronic funds transfer,
- management of telecommunications networks and their
'optimization`,
- an appropriate regulatory basis for the provision of
telecommunications and postal services and for the use of a radio
frequency spectrum,
- training in the field of telecommunications and postal services
for operations in market conditions.
Article 67 Financial services
Cooperation shall, in particular, aim at facilitating the
involvement of Ukraine in universally accepted systems of mutual
settlements. Technical assistance shall focus on:
- the development of banking and financial services, the development
of a common market of credit resources, the involvement of Ukraine
in a universally accepted system of mutual settlements,
- the development of a fiscal system and its institutions in
Ukraine, exchange of experience and personnel training,
- the development of insurance services, which would, inter alia,
create a favourable framework for Community company participation in
the establishment of joint ventures in the insurance sector in
Ukraine, as well as the development of export credit insurance,
- this cooperation shall, in particular, contribute to fostering the
development of relations between Ukraine and the Member States in
the financial-services sector.
Article 68 Money laundering
1. The Parties agree on the necessity of making efforts and
cooperating in order to prevent the use of their financial systems
for laundering of proceeds from criminal activities in general and
drug offences in particular.
2. Cooperation in this area shall include administrative and
technical assistance with the purpose of establishing suitable
standards against money laundering equivalent to those adopted by
the Community and international forums in this field, including the
Financial Action Task Force (FATF).
Article 69 Monetary policy
At the request of the Ukrainian authorities, the Community shall
provide technical assistance designed to support the efforts of
Ukraine towards the creation and strengthening of its own monetary
system and the introduction of a new monetary unit which is to
become a convertible currency and the gradual adjustment of its
policies to those of the European Monetary System. This will include
informal exchange of views concerning the principles and the
functioning of the European Monetary System.
Article 70 Regional development
2. To this end, they shall encourage exchange of information by
national, regional and local authorities on regional and land-use
planning policy and on methods of formulation of regional policies
with special emphasis on the development of disadvantaged areas.
They shall also encourage direct contacts between the respective
regions and public organizations responsible for regional
development planning with the aim, inter alia, to exchange methods
and ways of fostering regional development.
Article 71 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.
The cooperation shall include notably:
- education and training on health and safety issues with specific
attention to high risk sectors of activity,
- development and promotion of preventive measures to combat
work-related diseases and other work-related ailments,
- prevention of major accident hazards and the management of toxic
chemicals,
- research to develop the knowledge base in relation to working
environment and the health and safety of workers.
2. With regard to employment, the cooperation shall include,
notably, technical assistance to:
- optimization of the labour market,
- modernization of the job-finding and consulting services,
- planning and management of the restructuring programmes,
- encouragement of local employment development,
- exchange of information on the programmes of flexible employment,
including those stimulating self-employment and promoting
entrepreneurship.
3. The Parties shall pay special attention to cooperation in the
sphere of social protection which, inter alia, shall include
cooperation in planning and implementing social protection reforms
in Ukraine.
These reforms shall aim to develop in Ukraine methods of protection
intrinsic to market economies and shall comprise all directions of
social protection.
Article 72 Tourism
The Parties shall increase and develop cooperation between them,
which shall include:
- facilitating the tourist trade,
- cooperation between official tourism bodies,
- increasing the flow of information,
- transferring know-how,
- studying the opportunities for joint operations,
- training for tourism development.
Article 73 Small and medium-sized enterprises
1. The Parties shall aim to develop and strengthen small and
medium-sized enterprises and their associations and cooperation
between SMEs in the Community and Ukraine.
2. Cooperation shall include technical assistance, in particular in
the following areas:
- the development of a legislative framework for SMEs,
- the development of an appropriate infrastructure (an agency to
support SMEs, communications, assistance to the creation of a fund
of SMEs),
9(02).1
- the development of technology parks.
Article 74 Information and communication
The Parties shall support the development of modern methods of
information-handling, including the media, and stimulate the
effective mutual exchange of information. Priority shall be given to
programmes aimed at providing the general public with basic
information about the Community and Ukraine, including, where
possible, mutual access to databases in full respect of intellectual
property rights.
Article 75 Consumer protection
The Parties will enter into close cooperation aimed at achieving
compatibility between their systems of consumer protection. This
cooperation shall comprise, in particular, the provision of
expertise on legislative and institutional reform, the establishment
of permanent systems of mutual information on dangerous products,
the improvement of information provided to consumers especially on
prices, characteristics of products and services offered, training
activities for administration officials and other consumer interest
representatives, the development of exchanges between the consumer
interest representatives, and increasing the compatibility of
consumer protection policies.
Article 76 Customs
1. The aim of cooperation shall be to guarantee compliance with all
the provisions scheduled for adoption in connection with trade and
fair trade and to achieve the approximation of Ukraine's customs
system to that of the Community.
2. Cooperation shall include the following in particular:
- the exchange of information,
- the improvement of working methods,
- the introduction of the combined nomenclature and the single
administrative document,
- the interconnection between the transit systems of the Community
and Ukraine,
- the simplification of inspections and formalities in respect of
the carriage of goods,
- the support in the introduction of modern customs information
systems,
- the organization of seminars and training periods.
3. Without prejudice to further cooperation foreseen in this
Agreement and in particular Article 79, the mutual assistance
between administrative authorities in customs matters of the Parties
shall take place in accordance with the provisions of the Protocol
attached to this Agreement.
Article 77 Statistical cooperation
Cooperation in this area shall have as its aim the development of an
efficient statistical system to provide the reliable statistics
needed to support and monitor the process of economic reform and
contribute to the development of private enterprise in Ukraine.
The Parties, in particular, shall cooperate in the following fields:
- adaptation of the Ukrainian statistical system to international
methods, standards and classification,
- exchange of statistical information,
- provision of necessary statistical macro- and microeconomic
information to implement and manage economic reforms.
The Community shall contribute to this end by rendering technical
assistance to Ukraine.
Article 78 Economics
The Parties shall facilitate the process of economic reform and the
coordination of economic policies by cooperating to improve
understanding of the fundamentals of their respective economies and
the design and implementation of economic policy in market
economies. To this end the Parties shall exchange information on
macroeconomic performance and prospects.
The Community shall provide technical assistance so as to:
- assist Ukraine in the process of economic reform by providing
expert advisory and technical assistance,
- encourage cooperation among economists in order to expedite the
transfer of know-how for the drafting of economic policies, and
provide for wide dissemination of policy-relevant research.
Article 79 Drugs
Within the framework of their respective powers and competences the
Parties shall cooperate in increasing the effectiveness and
efficiency of policies and measures to counter the illicit
production, supply and traffic of narcotic drugs and psychotropic
substances, including the prevention of diversion of precursor
chemicals, as well as in promoting drug-demand prevention and
reduction. The cooperation in this area shall be based on mutual
consultation and close coordination between the Parties over the
objectives and measures on the various drug-related fields.
TITLE VIII
CULTURAL COOPERATION
Article 80
The Parties undertake to promote, encourage and facilitate cultural
cooperation. Where appropriate, the Community's cultural cooperation
programmes or those of one or more Member States may be the subject
of cooperation and further activities of mutual interest may be
developed.
TITLE IX
FINANCIAL COOPERATION
Article 81
In order to achieve the objectives of this Agreement and in
accordance with Articles 82, 83 and 84 Ukraine shall benefit from
temporary financial assistance from the Community by way of
technical assistance in the form of grants to accelerate the
economic transformation of Ukraine.
Article 82
This financial assistance shall be covered within the framework of
Tacis foreseen in the Community's relevant Council Regulation.
Article 83
The objectives and the areas of the Community's financial assistance
shall be laid down in an indicative programme reflecting established
priorities to be agreed between the two Parties taking into account
Ukraine's needs, sectoral absorption capacities and progress with
reform. The Parties shall inform the Cooperation Council thereof.
Article 84
In order to permit optimum use of the resources available, the
Parties shall ensure that Community technical assistance
contributions are made in close cooperation with those from other
sources such as the Member States, other countries, and
international organizations such as the International Bank for
Reconstruction and Development and the European Bank for
Reconstruction and Development as well as the United Nations
Development Programme (UNDP) and the IMF.
TITLE X
INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 85
A Cooperation 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 the Agreement and
any other bilateral or international issues of mutual interest for
the purpose of attaining the objectives of this Agreement. The
Cooperation Council may also make appropriate recommendations, by
agreement between the two Parties.
Article 86
1. The Cooperation Council shall consist of the members of the
Council of the European Union and members of the Commission of the
European Communities, on the one hand, and of members of the
Government of Ukraine, on the other.
3. The office of President of the Cooperation Council shall be held
alternately by a representative of the Community and by a member of
the Government of Ukraine.
Article 87
1. The Cooperation Council shall be assisted in the performance of
its duties by a Cooperation Committee composed of representatives of
the members of the Council of the European Union and of members of
the Commission of the European Communities on the one hand and of
representatives of the Government of Ukraine on the other, normally
at senior civil servant level. The office of President of the
Cooperation Committee shall be held alternately by the Community and
by Ukraine.
In its rules of procedure the Cooperation Council shall determine
the duties of the Cooperation Committee, which shall include the
preparation of meetings of the Cooperation Council, and how the
Committee shall function.
2. The Cooperation Council may delegate any of its powers to the
Cooperation Committee, which will ensure continuity between meetings
of the Cooperation Council.
Article 88
The Cooperation Council may decide to set up any other special
committee or body that can assist it in carrying out its duties and
shall determine the composition and duties of such committees or
bodies and how they shall function.
Article 89
When examining any issue arising within the framework of this
Agreement in relation to a provision referring to an article of the
GATT, the Cooperation Council shall take into account, to the
greatest extent possible, the interpretation that is generally given
to the Article of the GATT in question by the Contracting Parties to
the GATT.
Article 90
A Parliamentary Cooperation Committee is hereby established. It
shall be a forum for Members of the Ukrainian Parliament and the
European Parliament to meet and exchange views. It shall meet at
intervals which it shall itself determine.
Article 91
1. The Parliamentary Cooperation Committee shall consist of members
of the European Parliament, on the one hand, and of members of the
Ukrainian Parliament, on the other.
3. The Parliamentary Cooperation Committee shall be presided in turn
by the European Parliament and the Ukrainian Parliament
respectively, in accordance with the provisions to be laid down in
its rules of procedure.
Article 92
The Parliamentary Cooperation Committee may request relevant
information regarding the implementation of this Agreement from the
Cooperation Council, which shall then supply the Committee with the
requested information.
The Parliamentary Cooperation Committee shall be informed of the
recommendations of the Cooperation Council.
The Parliamentary Cooperation Committee may make recommendations to
the Cooperation Council.
Article 93
1. 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.
2. Within the limits of their respective powers, the Parties:
- shall encourage the adoption of arbitration for the settlement of
disputes arising out of commercial and cooperation transactions
concluded by economic operators of the Community and those of
Ukraine,
- agree that where a dispute is submitted to arbitration, each Party
to the dispute may, except where the rules of the arbitration centre
chosen by the Parties provide otherwise, choose its own arbitrator,
irrespective of his nationality, and that the presiding third
arbitrator or the sole arbitrator may be a citizen of a third State,
- will recommend their economic operators to choose by mutual
consent the law applicable to their contracts,
- shall encourage recourse to the arbitration rules elaborated by
the United Nations Commission on International Trade Law (Uncitral)
and to arbitration by any centre of a State signatory to the
Convention on Recognition and Enforcement of Foreign Arbitral awards
done at New York on 10 June 1958.
Article 94
Nothing in the Agreement shall prevent a 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;
(d) which it considers necessary to respect its international
obligations and commitments on the control of dual-use industrial
goods and technologies.
Article 95
1. In the fields covered by this Agreement and without prejudice to
any special provisions contained therein:
- the arrangements applied by Ukraine 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 Ukraine
shall not give rise to any discrimination between Ukrainian
nationals, or its companies or firms.
2. The provisions of paragraph 1 are without prejudice to the right
of the 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 96
1. Each of the two Parties may refer to the Cooperation Council any
dispute relating to the application or interpretation of this
Agreement.
3. 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 a conciliator; the other Party must then appoint
a second conciliator 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 Cooperation Council shall appoint a third conciliator.
The conciliator's recommendations shall be taken by majority vote. Such recommendations shall not be binding upon the Parties.
Article 97
The Parties agree to consult promptly, through appropriate channels
at the request of either Party, to discuss any matter concerning the
interpretation or implementation of this Agreement and other
relevant aspects of the relations between the Parties.
The provisions of this Article shall in no way affect and are
without prejudice to Articles 18, 19, 96 and 102.
Article 98
Treatment granted to Ukraine hereunder shall in no case be more
favourable than that granted by the Member States to each other.
Article 99
For the purposes of this Agreement, the term 'Parties` shall mean
Ukraine of the one part, and the Community, or the Member States, or
the Community and the Member States, in accordance with their
respective powers, of the other part.
Article 100
In so far as matters covered by this Agreement are covered by the
European Energy Charter Treaty and Protocols thereto, such Treaty
and Protocols shall, upon entry into force, apply to such matters
but only to the extent that such application is provided for
therein.
Article 101
This Agreement is concluded for an initial period of 10 years. The
Agreement shall be automatically renewed year-by-year provided that
neither Party gives the other Party written notice of denunciation
of the Agreement six months before it expires.
Article 102
1. The Parties shall take any general or specific measures required
to fulfil their obligations under the Agreement. They shall see to
it that the objectives set out in the Agreement are attained.
2. If either Party considers that the other Party has failed to
fulfil an obligation under the Agreement, it may take the
appropriate measures. Before so doing, except in cases of special
urgency, it shall supply the Cooperation Council with all relevant
information required for a thorough examination of the situation
with a view to seeking a solution acceptable to the Parties.
In the selection of these measures, priority must be given to those
which least disturb the functioning of the Agreement. These measures
shall be notified immediately to the Cooperation Council if the
other Party so requests.
Article 103
Annexes I, II, III, IV, V, and the Appendix thereto and the Protocol
shall form an integral part of this Agreement.
Article 104
This Agreement shall not, until equivalent rights for individuals
and economic operators have been achieved hereunder, affect rights
assured to them through existing Agreements binding one or more
Member States, on the one hand, and Ukraine, on the other, except in
areas falling within Community competence and without prejudice to
the obligations of Member States resulting from this Agreement in
areas falling within their competence.
Article 105
This Agreement shall apply, on the one hand, to the territories in
which the Treaties establishing the European Community, the European
Atomic Energy Community and the European Coal and Steel Community
are applied and under the conditions laid down in those Treaties
and, on the other hand, to the territory of Ukraine.
Article 106
The Secretary-General of the Council of the European Union shall be
the depositary of this Agreement.
Article 107
The original of this Agreement, of which the Danish, Dutch, English,
French, German, Italian, Spanish, Greek, Portuguese and Ukrainian
languages are equally authentic, shall be deposited with the
Secretary-General of the Council of the European Union.
Article 108
This Agreement will be approved by the Parties in accordance with
their own procedures.
This Agreement shall enter into force on the first day of the second
month following the date on which the Parties notify the
Secretary-General of the Council of the European Union that the
procedures referred to in the first paragraph have been completed.
Upon its entry into force, and as far as relations between Ukraine
and the Community are concerned, this Agreement shall replace the
Agreement between the European Economic Community and the European
Atomic Energy Community and the Union of Soviet Socialist Republics
on trade and economic and commercial cooperation signed in Brussels
on 18 December 1989.
Article 109
In the event that, pending the completion of the procedures
necessary for the entry into force of this Agreement, the provisions
of certain parts of this Agreement are put into effect in 1994 by
means of an Interim Agreement between the Community and Ukraine, the
Contracting Parties agree that, in such circumstances, the term
'date of entry into force of the Agreement` shall mean the date of
entry into force of the Interim Agreement.
Hecho en Luxemburgo, el catorce de junio de mil novecientos noventa
y cuatro.
Udfördiget i Luxembourg den fjortende juni nitten hundrede og fire
og halvfems.
Geschehen zu Luxemburg am vierzehnten Juni
neunzehnhundertvierundneunzig.
øółżõ ėĮ˙ Ė˙įžõüņ˙žęó˙, ėĮłĖ ōõśńĮąėėõęłĖ É˙įżč˙į ščūłń õżżłńśŽėłń
õżõżČżĮń Įąėėõęń.
Done at Luxembourg on the fourteenth day of June in the year one
thousand nine hundred and ninety-four.
Fait š Luxembourg, le quatorze juin mil neuf cent
quatre-vingt-quatorze.
Fatto a Lussemburgo, addü quattordici giugno
millenovecentonovantaquattro.
Gedaan te Luxemburg, de veertiende juni negentienhonderd
vierennegentig.
Feito em Luxemburgo, em catorze de Junho de mil novecentos e noventa
e quatro.
>REFERENCE TO A GRAPHIC>
Pour le Royaume de Belgique
Voor het Koninkrijk Belgiū
FŽr das KŠnigreich Belgien
>REFERENCE TO A GRAPHIC>
Põ Kongeriget Danmarks vegne
>REFERENCE TO A GRAPHIC>
FŽr die Bundesrepublik Deutschland
>REFERENCE TO A GRAPHIC>
Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń
>REFERENCE TO A GRAPHIC>
Por el Reino de Espaęa
>REFERENCE TO A GRAPHIC>
Pour la Rłpublique fran÷aise
>REFERENCE TO A GRAPHIC>
Thar cheann Na hÉireann
For Ireland
>REFERENCE TO A GRAPHIC>
Per la Repubblica italiana
>REFERENCE TO A GRAPHIC>
Pour le Grand-duchł de Luxembourg
>REFERENCE TO A GRAPHIC>
Voor het Koninkrijk der Nederlanden
>REFERENCE TO A GRAPHIC>
Pela RepŪblica Portuguesa
>REFERENCE TO A GRAPHIC>
For the United Kingdom of Great Britain and Northern Ireland
>REFERENCE TO A GRAPHIC>
Por las Comunidades Europeas
For de Europöiske Föllesskaber
FŽr die Europōischen Gemeinschaften
Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ
For the European Communities
Pour les Communautłs europłennes
Per le Comunitš europee
Voor de Europese Gemeenschappen
Pelas Comunidades Europeias
>REFERENCE TO A GRAPHIC>
>REFERENCE TO A GRAPHIC>
ANNEX I
INDICATIVE LIST OF ADVANTAGES GRANTED BY UKRAINE TO THE INDEPENDENT
STATES IN ACCORDANCE WITH ARTICLE 12
1. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania,
Moldova, Turkmenistan, Russia:
No import duties are implemented.
No export duties are implemented as regards goods delivered under
clearing and interstate agreements within the volumes stipulated in
these agreements.
No VAT is applied on export and import.
No excise is applied on export.
All Independent States: Export quotas for deliveries of products
under annual interstate trade and cooperation agreements are opened
in the same way as for deliveries for State needs.
2. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania,
Moldova, Turkmenistan:
Payments could be made in roubles.
Russia: Payments could be made in roubles or karbovanets.
All Independent States: Special system of non-commercial operations,
including payments resulting from these operations.
4. All Independent States: Special price system in trade with some
raw materials and semi-finished products.
6. All Independent States: Special conditions of customs procedures.
ANNEX II
EXCEPTIONAL MEASURES WHICH DEROGATE FROM THE PROVISIONS OF ARTICLE
14
1. Exceptional measures which derogate from the provisions of
Article 14 may be taken by Ukraine in the form of quantitative
restrictions on a non-discriminatory basis.
2. These measures may only concern infant industries, or certain
sectors undergoing restructuring or facing serious difficulties,
particularly where these difficulties produce important social
problems.
3. The total value of imports of the products which are subject to
these measures may not exceed 15 % of total imports from the
Community during the last year, prior to the introduction of any
quantitative restrictions for which statistics are available.
4. These measures may only be applied during a transitional period
ending 31 December 1998 unless Parties agree otherwise, or when
Ukraine becomes a Contracting Party to the GATT, whichever is
earlier.
5. Ukraine shall inform the Cooperation Council of any measures it
intends to take under the terms of this Annex, and, at the request
of the Community, consultations shall be held in the Cooperation
Council on such measures and the sectors to which they apply before
they enter into force.
ANNEX III
INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY CONVENTIONS
REFERRED TO IN ARTICLE 50 (2)
1. Paragraph 2 of Article 50 concerns the following multilateral
conventions:
- Berne Convention for the Protection of Literary and Artistic Works
(Paris Act, 1971),
- International Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting Organizations (Rome, 1961),
- Protocol relating to the Madrid Agreement concerning the
International Registration of Marks (Madrid, 1989),
- Nice Agreement concerning the International Classification of
Goods and Services for the purposes of the Registration of Marks
(Geneva 1977, amended 1979),
- Budapest Treaty on the International Recognition of the Deposit of
Microorganisms for the purposes of Patent Procedures (1977, modified
in 1980),
- International Convention for the Protection of New Varieties of
Plants (UPOV) (Geneva Act, 1978).
2. Ukraine shall make its best endeavours to accede, without undue
delay, to the 1991 Act of the International Convention for the
Protection of New Varieties of Plants (UPOV).
3. The Cooperation Council may recommend that Article 50 (2) shall
apply to other multilateral conventions. If problems in the area of
intellectual, industrial and commercial property affecting trading
conditions were to occur, urgent consultations will be undertaken,
at the request of either Party, with a view to reaching mutually
satisfactory solutions.
4. The Parties confirm the importance they attach to the obligations
arising from the following multilateral conventions:
- Paris Convention for the Protection of Industrial Property
(Stockholm Act, 1967 and amended in 1979),
- Madrid Agreement concerning the International Registration of
Marks (Stockholm Act, 1967, and amended in 1979),
- Patent Cooperation Treaty (Washington 1970, amended and modified
in 1979 and 1984).
5. From the entry into force of this Agreement, Ukraine shall grant
to Community companies and nationals, in respect of the recognition
and protection of intellectual, industrial and commercial property,
treatment no less favourable than that granted by it to any third
country under bilateral Agreements.
6. The provisions of paragraph 5 shall not apply to advantages
granted by Ukraine to any third country on an effective reciprocal
basis or to advantages granted by Ukraine to another country of the
former USSR.
ANNEX IV
COMMUNITY RESERVATIONS IN ACCORDANCE WITH ARTICLE 39 (1) (b)
Mining
In some Member States, a concession may be required for mining and
mineral rights for non-EC controlled companies.
Fishing
Access to and use of the biological resources and fishing grounds
situated in the maritime waters coming under the sovereignty or
within the jurisdiction of Member States is restricted to fishing
vessels flying the flag of a Member State and registered in
Community territory unless otherwise provided for.
Real estate purchase
In some Member States, the purchase of real estate by non-EC
companies is subject to restrictions.
Audiovisual services including radio
National treatment concerning production and distribution, including
broadcasting and other forms of transmission to the public, may be
reserved to audiovisual works meeting certain origin criteria.
Telecommunications services including mobile and satellite services
Reserved services
In some Member States market access concerning complementary
services and infrastructures is restricted.
Professional services
Services reserved to natural persons nationals of Member States.
Under certain conditions those persons may create companies.
Agriculture
In some Member States national treatment is not applicable to non-EC
controlled companies which wish to undertake an agricultural
enterprise. The acquisition of vineyards by non-EC controlled
companies is subject to notification, or, as necessary,
authorization.
News agency services
In some Member States limitations of foreign participation in
publishing companies and broadcasting companies exist.
ANNEX V
UKRAINIAN RESERVATIONS IN ACCORDANCE WITH ARTICLE 30 (2) (a)
The application of the reservations in this Annex shall in no case
result in treatment less favourable than that accorded to companies
of any third country.
1. Financial services (as defined in the Appendix hereto)
1.1. Banking and related financial services
During a transitional period not exceeding five years from the date
of signature of this Agreement, Ukraine may, in respect of the
establishment of subsidiaries and branches of Community companies in
Ukraine, continue to apply the provisions of the Ukrainian laws:
- 'on the system or currency regulation and currency control`,
- 'on banks and banking activities`,
- 'on collateral`,
- 'on stocks and stock exchange`,
- 'on privatization papers` (related to the distribution and trading
of privatization vouchers).
During the transitional period referred to above, no new regulations
or measures shall be introduced which increase the level of
discrimination applying to subsidiaries or branches of Community
companies as compared to Ukrainian companies.
1.2. Insurance (as defined in the Appendix hereto)
No later than five years following the date of signature of this
Agreement, Ukraine shall create the necessary conditions for the
establishment of Community insurance companies as well as joint
insurance companies in accordance with Article 30 (2) (a).
During the transitional period referred to above, no new regulations
or measures shall be introduced which increase the level of
discrimination applying to subsidiaries or branches of Community
companies as compared to Ukrainian companies.
Insurance activities in some sectors for foreigners are closed,
limited or are subject to special requirements during the
transitional period.
2. Other areas
Brokerage of immovable property including land
Ownership and use of natural resources
Use of subsoil and natural resources including mining; acquisition
and sale of natural resources.
Fishing
Access to and use of the biological resources and fishing grounds
situated in Ukrainian territorial waters and in Ukraine's exclusive
economic zone is subject to restrictions.
Hunting is restricted in accordance with the legislation of Ukraine.
Agriculture
Acquisition and sale of agricultural land and forests.
Lease of State property
The lease of State property may be required to be paid in freely
convertible currency.
Telecommunications
Authorization may be required for companies controlled by foreigners
in respect of establishment.
Mass media companies
Some limitation of foreign participation in mass-media activities.
Some professional activities
Professional activities in some sectors are reserved to Ukrainian
nationals or are subject to special requirements (medicine,
education, legal services not including business consultancy
involving relevant legal aspects).
Historial buildings and monuments
Appendix to Annex V
Financial services: definitions
A financial service is any service of a financial nature offered by
a financial service-supplier of a Party. Financial services include
the following activities:
A. All insurance and insurance-related services.
4. Services auxiliary to insurance, such as consultancy, actuarial,
risk assessment and claim settlement services.
B. Banking and other financial services (excluding insurance).
2. Lending of all types, including consumer credit, mortgage credit,
factoring and financing of commercial transaction.
4. All payment and money transmission services, including credit
charge and debit cards, travellers cheques and bankers' drafts.
6. Trading for own account or for the account of customers, whether
on an exchange, in an over-the-counter market or otherwise, the
following:
(a) money market instruments (including cheques, bills, certificates
of deposits, etc.);
(b) foreign exchange;
(c) derivative products including, but not limited to, futures and
options;
(d) exchange rates and interest rate instruments, including products
such as swaps, forward rate agreements, etc.;
(e) transferable securities;
(f) other negotiable instruments and financial assets, including
bullion.
7. Participation in issues of all kinds of securities, including
underwriting and placement as agent (whether publicly or privately)
and provision of services related to such issues.
9. Asset management, such as cash or portfolio management, all forms
of collective investment management, pension fund management,
custodial depository and trust services.
10. Settlement and clearing services for financial assets, including
securities, derivative products, and other negotiable instruments.
11. Provision and transfer of financial information, and financial
data processing and related software by suppliers of other financial
services.
12. Advisory intermediation and other auxiliary financial services
on all the activities listed in points 1 to 11 above, including
credit reference and analysis, investment and portfolio research and
advice, advice on acquisitions and on corporate restructuring and
strategy.
The following activities are excluded from the definition of
financial services:
(a) Activities carried out by central banks or by any other public
institution in pursuit of monetary and exchange rate policies.
(b) Activities conducted by central banks, government agencies or
departments, or public institutions, for the account, or with the
guarantee of the government, except when those activities may be
carried out by financial service-suppliers in competition with such
public entities.
(c) Activities forming part of a statutory system of social security
or public retirement plans, except when those activities may be
carried out by financial service-suppliers in competition with
public entities or private institutions.
PROTOCOL on mutual assistance between administrative authorities in
customs matters
Article 1 Definitions
For the purposes of this Protocol:
(a) 'customs legislation` shall mean provisions applicable in the
territories of the Parties and governing the import, export, transit
of goods and their placing under any customs procedure, including
measures of prohibition, restriction and control and adopted by the
said Parties;
(b) 'customs duties` shall mean all duties, taxes, fees or any other
charges which are levied and collected in the territories of the
Parties, in application of customs legislation, but not including
fees and charges which are limited in amount to the approximate
costs of services rendered;
(c) 'applicant authority`, shall mean a competent administrative
authority which has been appointed by a Party for this purpose and
which makes a request for assistance in customs matters;
(d) 'requested authority`, shall mean a competent administrative
authority which has been appointed by a Party for this purpose and
which receives a request for assistance in customs matters;
(e) 'contravention`, shall mean any violation of the customs
legislation as well as any attempted violation of such legislation.
Article 2 Scope
1. The Parties shall assist each other, within their competences, in
the manner and under the conditions laid down in this Protocol, in
ensuring that customs legislation is correctly applied, in
particular by the prevention, detection and investigation of
contraventions of this legislation.
2. Assistance, in customs matters, as provided for in this Protocol,
applies to any administrative authority of the Parties which is
competent for the application of this Protocol. It shall not
prejudice the rules governing mutual assistance in criminal matters.
Nor shall it cover information obtained under powers exercised at
the request of the judicial authority, unless those authorities so
agree.
Article 3 Assistance on request
1. At the request of the applicant authority, the requested
authority shall furnish it with all relevant information to enable
it to ensure that customs legislation is correctly applied,
including information regarding operations noted or planned which
contravene or would contravene such legislation.
2. At the request of the applicant authority, the requested
authority shall inform it whether goods exported from the territory
of one of the Parties have been properly imported into the territory
of the other Party, specifying, where appropriate, the customs
procedure applied to the goods.
3. At the request of the applicant authority, the requested
authority shall take the necessary steps to ensure that a
surveillance is kept on:
(a) natural or legal persons of whom there are reasonable grounds
for believing that they are contravening or have contravened customs
legislation;
(b) movements of goods notified as possibly giving rise to
substantial contraventions of customs legislation;
(c) means of transport for which there are reasonable grounds for
believing that they have been, are or may be used in the
contravening of customs legislation.
Article 4 Spontaneous assistance
The Parties shall provide each other, in accordance with their laws,
rules and other legal instruments, with assistance if they consider
that to be necessary for the correct application of customs
legislation, particularly when they obtain information pertaining
to:
- operations which have contravened, contravene or would contravene
such legislation and which may be of interest to other Parties,
- new means or methods employed in realizing such operations,
- goods known to be subject to substantial contravention of customs
legislation.
Article 5 Delivery/notification
At the request of the applicant authority, the requested authority
shall in accordance with its legislation take all necessary measures
- in order to deliver all documents, and
- to notify all decisions,
falling within the scope of this Protocol to an addressee, residing
or established in its territory. In such case Article 6, point 3 is
applicable.
Article 6 Form and substance of requests for assistance
1. Requests pursuant to this Protocol shall be made in writing.
Documents necessary for the execution of such requests shall
accompany the request. When required because of the urgency of the
situation, oral requests may be accepted, but must be confirmed in
writing immediately.
2. Requests pursuant to paragraph 1 of this Article shall include
the following information:
(a) the applicant authority making the request;
(b) the measure requested;
(c) the object of and the reason for the request;
(d) the laws, rules and other legal elements involved;
(e) indications as exact and comprehensive as possible on the
natural or legal persons being the target of the investigations;
(f) a summary of the relevant facts and of the enquiries already
carried out, except in cases provided for in Article 5.
3. Requests shall be submitted in an official language of the
requested authority or in a language acceptable to such authority.
4. If a request does not meet the formal requirements, its
correction or completion may be demanded; the ordering of
precautionary measures may, however, take place.
Article 7 Execution of requests
1. In order to comply with a request for assistance, the requested
authority or, when the latter cannot act on its own, the
administrative department to which the request has been addressed by
this authority, shall proceed, within its competence and available
resources, as though it were acting on its own account or at the
request of other authorities of that same Party, by supplying
information already possessed, by carrying out appropriate enquiries
or by arranging for them to be carried out.
2. Requests for assistance will be executed in accordance with the
laws, rules and other legal instruments of the requested Party.
3. Duly authorized officials of a Party may, with the agreement of
the other Party involved and within the conditions laid down by the
latter, obtain from the offices of the requested authority or other
authority for which the requested authority is responsible,
information relating to the contravention of customs legislation
which the applicant authority needs for the purposes of this
Protocol.
4. Officials of a Party may, with the agreement of the other Party
involved and within the conditions laid down by the latter, be
present at enquiries carried out in the latter's territory.
Article 8 Form in which information is to be communicated
1. The requested authority shall communicate results of enquiries to
the applicant authority in the form of documents, certified copies
of documents, reports and the like.
2. The documents provided for in paragraph 1 may be replaced by
computerized information produced in any form for the same purpose.
Article 9 Exceptions to the obligation to provide assistance
1. The Parties may refuse to give assistance as provided for in this
Protocol, where to do so would:
(a) be likely to prejudice sovereignty, public policy, security or
other essential interests; or
(b) involve currency or tax regulations other than regulations
concerning customs duties; or
(c) violate an industrial, commercial or professional secret.
2. Where the applicant authority asks for assistance which it would
itself be unable to provide if so asked, it shall draw attention to
that fact in its request. It shall then be left to the requested
authority to decide how to respond to such a request.
3. If assistance is withheld or denied, the decision and the reasons
therefor must be notified to the applicant authority without delay.
Article 10 Obligation to observe confidentiality
1. Any information communicated in whatsoever form pursuant to this
Protocol shall be of a confidential nature. It shall be covered by
the obligation of official secrecy and shall enjoy the protection
extended to like information under the relevant laws of the Party
which received it and the corresponding provisions applying to the
Community authorities.
2. Nominative data shall not be transmitted whenever there are
reasonable grounds to believe that the transfer or the use made of
the date transmitted would be contrary to the basic legal principles
of one of the Parties, and, in particular, if the person concerned
would suffer undue disadvantages. Upon request, the receiving Party
shall inform the furnishing Party of the use made of the information
supplied and of the results achieved.
3. Nominative data may only be transmitted to customs authorities
and, in the case of need for prosecution purposes, to public
prosecution and judicial authorities. Other persons or authorities
may obtain such information only upon previous authorization by the
furnishing authority.
4. The furnishing Party shall verify the accuracy of the information
to be transferred. Whenever it appears that the information supplied
was inaccurate or to be deleted, the receiving Party shall not be
notified without delay. The latter shall be obliged to carry out the
correction or deletion.
5. Without prejudice to cases of prevailing public interest, the
person concerned may obtain, upon request, information on the data
stores and the purpose of this storage.
Article 11 Use of information
1. Information obtained shall be used solely for the purposes of
this Protocol and may be used within each Party for other purposes
only with the prior written consent of the administrative authority
which furnished the information and shall be subject to any
restrictions laid down by that authority.
2. Paragraph 1 shall not impede the use of information in any
judicial or administrative proceedings subsequently instituted for
failure to comply with customs legislation.
3. The Parties may, in their records of evidence, reports and
testimonies and in proceedings and charges brought before the
courts, use as evidence information obtained and documents consulted
in accordance with the provisions of this Protocol.
Article 12 Experts and witnesses
An official of a requested authority may be authorized to appear,
within the limitations of the authorization granted, as expert or
witness in judicial or administrative proceedings regarding the
matters covered by this Protocol in the jurisdiction of another
Party, and produce such objects, documents or authenticated copies
thereof, as may be needed for the proceedings. The request for an
appearance must indicate specifically on what matters and by virtue
of what title or qualification the official will be questioned.
Article 13 Assistance expenses
The Parties shall waive all claims on each other for the
reimbursement of expenses incurred pursuant to this Protocol,
except, as appropriate, for expenses to experts and witnesses and to
interpreters and translators who are not dependent upon public
services.
Article 14 Implementation
1. The management of this Protocol shall be entrusted to the central
customs authorities of Ukraine on the one hand and the competent
services of the Commission of the European Communities and, where
appropriate, the customs authorities of the Member States of the
European Union on the other. They shall decide on all practical
measures and arrangements necessary for its application, taking into
consideration rules in the field of data protection. They may
recommend to the competent bodies amendments which they consider be
made to this Protocol.
2. The Parties shall consult each other and subsequently keep each
other informed of the detailed rules of implementation which are
adopted in accordance with the provisions of this Protocol.
Article 15 Complementarity
1. This Protocol shall complement and not impede the application of
any agreements on mutual assistance which have been concluded or may
be concluded between individual or several Member States of the
European Union and Ukraine. Nor shall it preclude more extensive
customs cooperation granted under such agreements.
2. Without prejudice to Article 11, these agreements do not
prejudice Community provisions governing the communication between
the competent services of the Commission and the customs authorities
of the Member States of any information obtained in customs matters
which could be of Community interest.
FINAL ACT
The plenipotentiaries of:
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 the 'Member States`, and
of 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 plenipotentiaries of UKRAINE,
of the other part,
meeting at Luxembourg on the fourteenth day of June in the year one
thousand nine hundred and ninety-four for the signature of the
Partnership and Cooperation Agreement establishing a partnership
between the European Communities and their Member States, of the one
part, and Ukraine, of the other part, hereinafter referred to as the
'Partnership and Cooperation Agreement`,
HAVE ADOPTED THE FOLLOWING TEXTS:
the Partnership and Cooperation Agreement including its Annexes and
the Protocol on mutual assistance between administrative authorities
in customs matters.
The plenipotentiaries of the Member States and of the Community and
the plenipotentiaries of Ukraine have adopted the texts of the Joint
Declarations listed below and annexed to this Final Act:
Joint Declaration concerning Article 18
Joint Declaration concerning Article 19
Joint Declaration concerning Article 30
Joint Declaration concerning Article 31
Joint Declaration concerning the notion of 'control` in Article 32
(b) and Article 43
Joint Declaration concerning Article 50
Joint Declaration concerning Article 102.
The plenipotentiaries of the Member States and of the Community and
the plenipotentiaries of Ukraine have taken note of the following
Unilateral Declaration annexed to this Final Act:
Declaration of the French Government on the application of the
Agreement to overseas countries and territories associated with the
European Community.
The plenipotentiaries of the Member States and of the Community and
the plenipotentiaries of Ukraine have taken note of the following
Exchange of Letters annexed to this Final Act:
Exchange of Letters between the Community and Ukraine in relation to
the establishment of companies.
Joint Declaration concerning Article 18
The Community and Ukraine declare that the text of the safeguard
clause does not grant GATT safeguard treatment.
Joint Declaration concerning Article 19
It is understood that the provisions of Article 19 are neither
intended to, nor shall slow down, hinder or impede the procedures
provided for in the respective legislations of the Parties regarding
anti-dumping and subsidies investigations.
Joint Declaration concerning Article 30
Without prejudice to the reservations listed in Annexes IV and V and
to the provisions of Articles 44 and 47, the Parties agree that the
words 'in conformity with their legislation and regulations`
mentioned in paragraphs 1 and 2 of Article 30 mean that each Party
may regulate the establishment and operation of companies on its
territory, provided that these regulations do not create for the
establishment and operations of companies of the other Party any new
reservations resulting in a less favourable treatment than that
accorded to their own companies or to companies or branches or
subsidiaries of companies of any third country.
Joint Declaration concerning Article 31
Commercial presence of a Party's internal waterways transport
companies in the other Party's territory shall be governed in
accordance with legislation applicable within the Member States or
Ukraine, until specific, more favourable provisions governing such
commercial presence can be agreed upon, and if such presence is not
governed by other legislative instruments binding on the Parties.
It is understood that a commercial presence shall take the form of
subsidiaries or branches as defined in Article 32.
'Legislation applicable` shall be translated into Ukrainian by the
phrase '>REFERENCE TO A GRAPHIC>
`.
Joint Declaration concerning the notion of 'control` in Article 32
(b) and Article 43
1. The Parties confirm their mutual understanding that the question
of control shall depend on the factual circumstances of the
particular case.
2. A company shall, for example, be considered as being 'controlled`
by another company, and thus a subsidiary of such other company if:
- the other company holds directly or indirectly a majority of the
voting rights, or
- the other company has the right to appoint or dismiss a majority
of the administrative organ, of the management organ or of the
supervisory organ and is at the same time a shareholder or member of
the subsidiary.
3. Both Parties consider the criteria in paragraph 2 to be
non-exhaustive.
Joint Declaration concerning Article 50
The Parties agree that for the purpose of the Agreement,
intellectual, industrial and commercial property includes in
particular copyright, including the copyright in computer programs,
and neighbouring rights, the rights relating to patents, industrial
designs, geographical indications, including appellations of origin,
trade marks and service marks, topographies of integrated circuits
as well as protection against unfair competition as referred to in
Article 10 bis of the Paris Convention for the protection of
Industrial Property and protection of undisclosed information on
know-how.
The Parties declare that the term 'intellectual, industrial and
commercial property` shall be translated into Ukrainian as
'>REFERENCE TO A GRAPHIC>
`.
Joint Declaration concerning Article 102
The Parties agree, for the purpose of its correct interpretation and
its practical application, that the term 'cases of special urgency`
included in Article 102 of the Agreement mean cases of material
breach of the Agreement by one of the Parties. A material breach of
the Agreement consists in
(a) repudiation of the Agreement not sanctioned by the general rules
of international law
or
(b) violation of the essential elements of the Agreement set out in
Article 2.
Declaration of the French Government
The French Republic notes that the Partnership and Cooperation
Agreement with Ukraine does not apply to the overseas countries and
territories associated with the European Community pursuant to the
Treaty establishing the European Community.