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Euro-Mediterranean Interim Association Agreement
On trade and cooperation between the European Community,of the one part,and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip,of the other part
- Protocol 1 on the arrangements applying to imports into the Community of agricultural products originating in the West Bank and the Gaza Strip
- Protocol 2 on the arrangements applying to imports into the West Bank and the Gaza Strip of agricultural products originating in the Community
- Protocol 3 concerning the definition of the concept of 'originating products' and methods of administrative cooperation
- Final Act
- Joint Declarations
- Declaration by the European Community
Official Journal L 187 , 16/07/1997 p. 0003 - 0135
CELEX code: 297A0716(01)
EURO-MEDITERRANEAN INTERIM ASSOCIATION AGREEMENT on trade and
cooperation between the European Community, of the one part, and the Palestine Liberation
Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the
Gaza Strip, of the other part the EUROPEAN COMMUNITY,hereinafter referred to as 'the
Community`,of the one part,and the PALESTINE LIBERATION ORGANIZATION (PLO) FOR THE BENEFIT
OF THE PALESTINIAN AUTHORITY OF THE WEST BANK AND THE GAZA STRIP, hereinafter referred to
as 'the Palestinian Authority`,of the other part,CONSIDERING the importance of the
existing links between the Community and the Palestinian people of the West Bank and the
Gaza Strip, and the common values that they share,CONSIDERING that the Community and the
PLO wish to strengthen those links and to establish lasting relations based on partnership
and reciprocity,
CONSIDERING the importance which the Parties attach to the principles of the United
Nations Charter, particularly the observance of human rights, democratic principles and
political and economic freedoms which form the very basis of their relations,DESIROUS of
strengthening the framework of relations between the European Community and the Middle
East, and of regional economic integration of the Middle Eastern countries as an objective
to be achieved as soon as conditions permit,
CONSIDERING the difference in economic and social development existing between the Parties
and the need to intensify existing efforts to promote economic and social development in
the West Bank and the Gaza Strip,
DESIROUS of establishing a cooperation, supported by a regular dialogue, on economic,
cultural, scientific and educational matters with a view to improving mutual knowledge and
understanding,CONSIDERING the commitment of the Parties to free trade, and in particular
to compliance with the provisions of the General Agreement on Tariffs and Trade of 1994,
DESIROUS of building on the existing autonomous trade arrangements between the Parties and
placing them on a contractual and reciprocal basis,CONVINCED of the need to promote the
creation of a new climate for their economic relations in order to improve the environment
for investment flows,CONSIDERING the rights and obligations of the parties under the
international agreements which they have signed,CONVINCED that the full participation of
the Palestinian Authority in the Euro-Mediterranean Partnership launched at the Barcelona
Conference is an important step in the normalization of relations between the Parties,
which should be reflected in an Agreement on an interim basis at the present stage,
AWARE of the major political significance of the holding of Palestinian elections on 20
January 1996 for the process leading to a permanent settlement based on United Nations
Security Council Resolutions 242 and 338,
RECOGNIZING that this Agreement should be replaced by a Euro-Mediterranean Association
Agreement as soon as conditions permit,HAVE AGREED AS FOLLOWS:
Article 1
1. An Interim Association on Trade and Cooperation is hereby established between the
Community and the Palestinian Authority.
2. The objectives of this Agreement are:
- to provide an appropriate framework for a comprehensive dialogue, allowing the
development of close relations between the Parties,
- to establish the conditions for the progressive liberalization of trade,
- to foster the development of balanced economic and social relations between the Parties
through dialogue and cooperation,
- to contribute to the social and economic development of the West Bank and Gaza Strip,
- to encourage regional cooperation with a view to the consolidation of peaceful
coexistence and economic and political stability,
- to promote cooperation in other areas which are of reciprocal interest.
Article 2
Relations between the Parties, as well as all the provisions of the Agreement itself,
shall be based on respect of democratic principles and fundamental human rights as set out
in the universal declaration on human rights, which guides their internal and
international policy and constitutes an essential element of this Agreement.
TITLE I FREE MOVEMENT OF GOODS BASIC PRINCIPLES
Article 3
The Community and the Palestinian Authority shall establish progressively a free trade
area over a transitional period, not extending beyond 31 December 2001, according to the
modalities set out in this Title and in conformity with the provisions of the General
Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade
in goods annexed to the agreement establishing the World Trade Organization (WTO),
hereinafter referred to as the GATT.
CHAPTER 1 INDUSTRIAL PRODUCTS
Article 4
The provisions of this Chapter shall apply to products originating in the Community and in
the West Bank and the Gaza Strip other than those listed in Annex II to the Treaty
establishing the European Community.
Article 5
No new customs duty on imports, or any other charge having equivalent effect, shall be
introduced on trade between the Community and the West Bank and Gaza Strip.
Article 6
Imports into the Community of products originating in the West Bank and the Gaza Strip
shall be allowed free of customs duties and of any other charge having equivalent effect
and free of quantitative restrictions and of any other measure having equivalent effect.
Article 7
1. The provisions of this Chapter do not preclude the retention by the Community of an
agricultural component in respect of goods originating in the West Bank and the Gaza Strip
and listed in Annex 1.
The provisions of Chapter 2 applicable to agricultural products shall apply mutatis
mutandis to the agricultural component.
2. For the products listed in Annex 2 originating in the Community, the Palestinian
Authority may retain for the duration of the Agreement customs duties on import and
charges having equivalent effect not higher than those in force on 1 July 1996.
3. The Joint Committee established under Article 63 may decide on further concessions
which the parties grant each other on a mutual basis.
Article 8
1. Customs duties and charges having equivalent effect applicable on import into the West
Bank and the Gaza Strip of products originating in the Community, other than those listed
in Annexes 2 and 3, shall be abolished when the Agreement enters into force.
2. From the entry into force of the Agreement, for the products originating in the
Community listed in Annex 3 imported into the West Bank and the Gaza Strip, the
Palestinian Authority may levy fiscal charges not exceeding 25 % by value. These charges
shall be gradually abolished in accordance with the following schedule:
one year after the date of entry into force of this Agreement, each charge shall be
reduced to 90 % of the basic charge;
two years after the date of entry into force of this Agreement, each charge shall be
reduced to 80 % of the basic charge;
three years after the date of entry into force of this Agreement, each charge shall be
reduced to 70 % of the basic charge;
four years after the date of entry into force of this Agreement, each charge shall be
reduced to 60 % of the basic charge;
five years after the date of entry into force of this Agreement, each remaining charge
shall be abolished.
3. In the event of serious difficulties for a given product, the schedule referred to in
paragraph 2 may be reviewed by the Joint Committee by common accord, on the understanding
that it may not be suspended beyond the maximum transitional period of five years. If the
Joint Committee has not taken a decision within 30 days of its application to review the
schedule, the Palestinian Authority may suspend the schedule provisionally for a period
which may not exceed one year.
4. If the charge is reduced erga omnes, the reduced charge shall replace the basic charge
described in paragraph 2 from the date on which the reduction is applied.
5. The Palestinian Authority shall notify the Community of its basic duties and charges.
Article 9
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 10
1. By way of derogation from Articles 5 and 8, the Palestinian Authority may take
exceptional measures of limited duration to introduce, increase or re-introduce customs
duties.
2. Such measures may only apply to infant industries and to sectors undergoing
restructuring or experiencing serious difficulties, particularly where those difficulties
entail severe social problems.
3. Customs duties on imports into the West Bank and the Gaza Strip of products originating
in the Community that are introduced by such exceptional measures may not exceed 25 % by
value, and must retain a preferential margin for products originating in the Community.
The total value of imports of the products subjected to such measures may not exceed 15 %
of total imports of industrial products originating in the Community during the last year
for which statistics are available.
4. Such measures shall be applied for no longer than five years, except where a longer
duration is authorized by the Joint Committee.
5. The Palestinian Authority shall inform the Joint Committee of any exceptional measures
it intends to adopt and, at the Community's request, consultations shall be held on the
measures and sectors concerned before they are implemented. When adopting such measures,
the Palestinian Authority shall provide the Committee with a schedule for the abolition of
the customs duties introduced pursuant to this Article. Such schedules shall provide for
the phasing out of the duties concerned by equal annual instalments, starting no later
than the end of the second year following their introduction. The Joint Committee may
decide on a different schedule.
CHAPTER 2 AGRICULTURAL AND FISHERY PRODUCTS
Article 11
The provisions of this Chapter shall apply to products originating in the Community and
the West Bank and the Gaza Strip and listed in Annex II to the Treaty establishing the
European Community.
Article 12
The Community and the Palestinian Authority shall progressively establish a greater
liberalization of their trade in agricultural and fishery products of interest to both
Parties.
Article 13
1. Agricultural products originating in the West Bank and the Gaza Strip listed in
Protocol 1 on importation into the Community shall be subject to the arrangements set out
in that Protocol.
2. Agricultural products originating in the Community listed in Protocol 2 on importation
into the West Bank and the Gaza Strip shall be subject to the arrangements set out in that
Protocol.
Article 14
1. From 1 January 1999, the Community and the Palestinian Authority shall examine the
situation in order to determine the measures to be applied by the Community and the
Palestinian Authority from 1 January 2000, in accordance with the objective set out in
Article 12.
2. Without prejudice to paragraph 1 and taking account of the volume of trade in
agricultural products between the Parties and of the particular sensitivity of such
products, the Community and the Palestinian Authority shall examine in the Joint
Committee, product by product and on an orderly and reciprocal basis, the possibility of
granting each other further concessions.
CHAPTER 3 COMMON PROVISIONS
Article 15
1. No new quantitative restriction on imports or measures having equivalent effect shall
be introduced in trade between the Community and the West Bank and Gaza Strip.
2. Quantitative restrictions on imports and measures having equivalent effect in trade
between the Community and the West Bank and Gaza Strip shall be abolished from the entry
into force of this Agreement.
3. The Community and the Palestinian Authority shall not apply to exports between
themselves either customs duties or charges having equivalent effect, or quantitative
restrictions or measures having equivalent effect.
Article 16
1. Products originating in the West Bank and the Gaza Strip shall not, on importation into
the Community, be accorded a treatment more favourable than that which the Member States
apply among themselves.
2. Application of the provisions of this Agreement shall be without prejudice to Council
Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provision of
Community law to the Canary Islands.
Article 17
1. In the event of specific rules being introduced as a result of the implementation of
its agricultural policy or of any alteration of the current rules or in the event of any
alteration or extension of the provisions relating to the implementation of its
agricultural policy, the Party concerned may amend the arrangements resulting from the
Agreement in respect of the products concerned.
2. In such cases the Party concerned shall inform the Joint Committee. At the request of
the other Party, the Joint Committee shall meet to take due account of the interests of
the other Party.
3. If the Community or the Palestinian Authority, in applying paragraph 1, modifies the
arrangements made by this Agreement for agricultural products, they shall accord imports
originating in the other Party an advantage comparable to that provided for in this
Agreement.
4. The application of this Article may be the subject of consultations in the Joint
Committee.
Article 18
1. The Parties shall refrain from any measure or practice of an internal fiscal nature
establishing, whether directly or indirectly, discrimination between the products of one
Party and like products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment
of indirect internal taxation in excess of the amount of indirect taxation imposed on them
either directly or indirectly.
Article 19
1. The Agreement shall not preclude the maintenance or establishment of customs unions,
free trade areas or arrangements for frontier trade, except insofar as they alter the
trade arrangements provided for in this Agreement.
2. Consultation between the Parties shall take place within the Joint Committee concerning
agreements establishing customs unions or free trade areas and, where requested, on other
major issues related to their respective trade policy with third countries. In particular,
in the event of a third country acceding to the European Union, such consultation shall
take place so as to ensure that account can be taken of the mutual interests of this
Parties.
Article 20
If one of the Parties finds that dumping is taking place in trade with the other Party
within the meaning of Article VI of GATT, it may take appropriate measures against this
practice in accordance with the Agreement on implementation of Article VI of the GATT and
with its relevant internal legislation, under the conditions and in accordance with the
procedures laid down in Article 23 of this Agreement.
Article 21
Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:
- serious injury to domestic producers of like or directly competitive products in the
territory of one of the Parties, or
- serious disturbances in any sector of the economy, or
- difficulties which could bring about serious deterioration in the economic situation of
a region,
the Party concerned may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 23.
Article 22
Where compliance with the provisions of Article 15 (3) leads to:
(i) re-export towards a third country against which the exporting Party maintains, for the
product concerned, quantitative export restrictions, export duties, or measures having
equivalent effect, or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise, or are likely to give rise to major
difficulties for the exporting Party, that Party may take appropriate measures under the
conditions and in accordance with the procedures laid down in Article 23. The measures
shall be non-discriminatory and be eliminated when conditions no longer justify their
maintenance.
Article 23
1. In the event of the Community or the Palestinian Authority subjecting imports of
products liable to give rise to the difficulties referred to in Article 21 to an
administrative procedure, the purpose of which is to provide rapid information on the
trend of trade flows, it shall inform the other Party.
2. In the cases specified in Articles 20, 21 and 22, before taking the measures provided
for therein, or, as soon as possible in cases to which paragraph 3 (d) of this Article
applies, the Party in question shall supply the Joint Committee 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 appropriate measures, priority must be given to those which least
disturb the functioning of the Agreement.
The safeguard measures shall be notified immediately to the Joint Committee and shall be
the subject of periodic consultations within that Committee, particularly with a view to
their abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) As regards Article 20, the exporting Party shall be informed of the dumping case as
soon as the authorities of the importing Party have initiated an investigation. When no
end has been put to the dumping within the meaning of Article VI of GATT or no other
satisfactory solution has been reached within 30 days of the notification being made, the
importing Party may adopt the appropriate measures.
(b) As regards Article 21, the difficulties arising from the situation referred to in that
Article shall be referred for examination to the Joint Committee, which may take any
decision needed to put an end to such difficulties.
If the Joint Committee or the exporting Party has not taken a decision putting an end to
the difficulties or no other satisfactory solution has been reached within 30 days of the
matter being referred, the importing Party may adopt the appropriate measures to remedy
the problem. These measures shall not exceed the scope of what is necessary to remedy the
difficulties which have arisen.
(c) As regards Article 22, the difficulties arising from the situations referred to in
that Article shall be referred for examination to the Joint Committee.
The Committee may take any decision needed to put an end to the difficulties. If it has
not taken such a decision within 30 days of the matter being referred to it, the exporting
Party may apply appropriate measures on the exportation of the product concerned.
(d) Where exceptional circumstances requiring immediate action make prior information or
examination, as the case may be, impossible, the Party concerned may, in the situations
specified in Articles 20, 21 and 22 apply forthwith such precautionary measures as are
strictly necessary to remedy the situation, and shall inform the other Party immediately.
Article 24
Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports
or goods in transit justified on grounds of public morality, public policy or public
security, of the protection of health and life of humans, animals or plants, of the
protection of national treasures possessing artistic, historic or archaeological value, of
the protection of intellectual, industrial and commercial property or of regulations
concerning 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 25
The concept of 'originating products` for the application of the provisions of the present
Title and the methods of administrative cooperation relating to them are set out in
Protocol 3. The Joint Committee may decide to make the necessary adaptations to this
Protocol with a view to the implementation of cumulation of origin as agreed in the
Declaration adopted at the Barcelona Conference.
Article 26
The combined nomenclature shall be used for the classification of goods in the trade
between the Parties.
TITLE II PAYMENTS, CAPITAL, COMPETITION, INTELLECTUAL PROPERTY AND PUBLIC PROCUREMENT
CHAPTER 1 CURRENT PAYMENTS AND MOVEMENT OF CAPITAL
Article 27
Subject to the provisions of Article 29, the Parties undertake to impose no restrictions
on any current payments for current transactions.
Article 28
1. With regard to transactions on the capital account of balance of payments, the Parties
undertake to impose no restrictions on the movement of capital relating to direct
investments in the West Bank and Gaza Strip in companies formed in accordance with current
laws, nor on the liquidation and repatriation of the yield from such investments, or any
profit stemming therefrom.
2. The Parties shall consult each other with a view to facilitating the movement of
capital between the Community and the West Bank and Gaza Strip.
Article 29
Where one or more Member States of the Community, or the Palestinian Authority, is in
serious balance of payments difficulties, or under threat thereof, the Community or the
Palestinian Authority, as the case may be, may, in accordance with the conditions
established under the GATT and Articles VIII and XIV of the Articles of Agreement of the
International Monetary Fund, adopt restrictions on current transactions which shall be of
limited duration and may not go beyond what is necessary to remedy the balance of payments
situation. The Community or the Palestinian Authority, as the case may be, shall inform
the other Party forthwith and shall submit to it as soon as possible a timetable for the
elimination of the measures concerned.
CHAPTER 2 COMPETITION, INTELLECTUAL PROPERTY AND PUBLIC PROCUREMENT
Article 30
1. The following are incompatible with the proper functioning of the Agreement, insofar as
they may affect trade between the Community and the Palestinian Authority:
(i) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of the
Community or the West Bank and the Gaza Strip as a whole or in a substantial part thereof;
(iii) any public aid which distorts or threatens to distort competition by favouring
certain undertakings or the production of certain goods.
2. The Parties shall, as appropriate, assess any practice contrary to this Article on the
basis of the criteria resulting from the application of Community competition rules.
3. The Joint Committee shall, before 31 December 2001, adopt by decision the necessary
rules for the implementation of paragraphs 1 and 2.
Until these rules are adopted, the provisions of the Agreement on Subsidies and
Countervailing Measures shall be applied as the rules for the implementation of paragraph
1 (iii) and the relevant parts of paragraph 2.
4. As regards the implementation of paragraph 1 (iii), the Parties recognize that the
Palestinian Authority may wish to use, during the period until 31 December 2001, public
aid to undertakings as an instrument to tackle its specific development problems.
5. Each Party shall ensure transparency in the area of public aid, inter alia by reporting
annually to the other Party on the total amount and the distribution of the aid given and
by providing, upon request, information on aid schemes. Upon request by one Party, the
other Party shall provide information on particular individual cases of public aid.
6. With regard to products referred to in Title I, Chapter 2:
- paragraph 1 (iii) does not apply,
- any practices contrary to paragraph 1 (i) shall be assessed according to the criteria
established by the Community on the basis of Articles 42 and 43 of the Treaty establishing
the European Community and in particular those established in Council Regulation No 26/62.
7. If the Community or the Palestinian Authority considers that a particular practice is
incompatible with the terms of paragraph 1 of this Article, and:
- is not adequately dealt with under the implementing rules referred to in paragraph 3, or
- in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of the other Party or material injury to its domestic industry,
including its services industry,
it may take appropriate measures after consultation within the Joint Committee or after 30
working days following referral for such consultation.
With reference to practices incompatible with paragraph 1 (iii) of this Article, such
appropriate measures, when the GATT is applicable to them, may only be adopted in
accordance with the procedures and under the conditions laid down by GATT or by any other
relevant instrument negotiated under its auspices and applicable between the Parties.
8. Notwithstanding any provisions to the contrary adopted in accordance with paragraph 3,
the Parties shall exchange information taking into account the limitations imposed by the
requirements of professional and business secrecy.
Article 31
The Member States and the Palestinian Authority shall progressively adjust, without
prejudice to their commitments to the GATT where appropriate, any State monopolies of a
commercial character, so as to ensure that, by 31 December 2001, no discrimination
regarding the conditions under which goods are procured and marketed exists between
nationals of the Member States and the Palestinian people of the West Bank and Gaza Strip.
The Joint Committee will be informed about the measures adopted to implement this
objective.
Article 32
With regard to public enterprises and enterprises to which special or exclusive rights
have been granted, the Joint Committee shall ensure that by 31 December 2001 there is
neither enacted nor maintained any measure distorting trade between the Community and the
Palestinian Authority contrary to the Parties' interests. This provision should not
obstruct the performance in law or in fact of the particular tasks assigned to those
undertakings.
Article 33
1. The Parties shall grant and ensure adequate and effective protection of intellectual,
industrial and commercial property rights in accordance with the highest international
standards, including effective means of enforcing such rights.
2. The implementation of this Article shall be regularly reviewed by the Parties. If
problems in the area of intellectual, industrial and commercial property affecting trading
conditions occur, urgent consultations shall be undertaken within the framework of the
Joint Committee, at the request of either Party, with a view to reaching mutually
satisfactory solutions.
Article 34
1. The Parties agree on the objective of reciprocal and gradual liberalization of public
procurement contracts.
2. The Joint Committee shall take the necessary measures to implement paragraph 1.
TITLE III ECONOMIC COOPERATION AND SOCIAL DEVELOPMENT
Article 35 Objectives
1. The Parties undertake to intensify economic cooperation in their mutual interest and in
accordance with the overall objectives of this Agreement.
2. The aim of cooperation shall be to support the Palestinian Authority's own efforts to
achieve sustainable economic and social development.
Article 36 Scope
1. Cooperation shall focus primarily on sectors suffering from internal difficulties or
affected by the overall process of liberalization of the economy of the West Bank and the
Gaza Strip, and in particular by the liberalization of trade between the West Bank and the
Gaza Strip and the Community.
2. Similarly, cooperation shall focus on areas likely to bring the economies of the
Community and the West Bank and Gaza Strip closer together, particularly those which will
generate sustainable growth and employment.
3. Cooperation shall encourage the implementation of measures designed to develop
intra-regional cooperation.
4. Conservation of the environment and ecological balance shall be taken into account in
the implementation of the various sectors of economic cooperation to which it is relevant.
5. The Parties may agree to extend economic cooperation to other sectors not covered by
the provisions of this Title.
Article 37 Methods and modalities
Economic cooperation shall be implemented in particular by:
(a) a regular economic dialogue between the Parties, which covers all areas of
macro-economic policy and in particular budgetary policy, the balance of payments and
monetary policy;
(b) regular exchange of information and ideas in every sector of cooperation including
meetings of officials and experts;
(c) transfer of advice, expertise and training;
(d) implementation of joint actions such as seminars and workshops;
(e) technical, administrative and regulatory assistance;
(f) encouragement of joint ventures;
(g) dissemination of information on cooperation.
Article 38 Industrial cooperation
The main aim will be to:
- support the Palestinian Authority, in its efforts to modernize and diversify industry
and, in particular, to create an environment favourable to private sector and industrial
development,
- foster cooperation between the two Parties' economic operators,
- foster cooperation regarding industrial policy, competitiveness in an open economy and
the modernization and development of industry,
- support policies to diversify production and exports and external outlets,
- promote research and development, innovation and technology transfer as far as they
benefit industry,
- develop and enhance the human resources required by industry,
- facilitate access to venture and risk financing facilities for the benefit of
Palestinian industry.
Article 39 Investment promotion and investment
The objective of cooperation will be the creation of a favourable and stable environment
for investment in the West Bank and Gaza Strip.
Cooperation will take the form of promotion of investment. This will entail the
development of:
- harmonized and simplified administrative procedures,
- co-investment machinery, especially for small and medium-sized enterprises (SMEs) of
both Parties,
- information channels and means of identifying investment opportunities,
- an environment conducive to investment in the West Bank and the Gaza Strip.
Cooperation may also extend to the conception and implementation of projects demonstrating
the effective acquisition and use of basic technologies, the use of standards, the
development of human resources (e.g. in technologies and management) and the creation of
jobs.
Article 40 Standardization and conformity assessment
The objective of cooperation will be to narrow the gap in standards and certification.
In practical terms cooperation will take the form of:
- the promotion of the use of Community technical regulations and European standards and
conformity assessment procedures,
- raising the level of conformity assessment by Palestinian certification and
accreditation bodies,
- discussing mutual recognition arrangements, where appropriate,
- cooperating in the field of quality management,
- developing structures for the protection of intellectual, individual and commercial
property, for standardization and for setting quality standards.
Article 41 Approximation of laws
The objective of cooperation will be to approximate Palestinian Council legislation to
that of the Community, in the areas covered by the Agreement.
Article 42 Small and medium-sized enterprises
The objective of cooperation will be the creation of an environment propitious to the
development of SMEs on local and export markets through, inter alia:
- promotion of contacts between enterprises, in particular through recourse to the
Community's networks and instruments for the promotion of industrial cooperation and
partnership,
- easier access to investment finance,
- information and support services,
- enhancement of human resources with the aim of stimulating innovation and the setting-up
of projects and business ventures.
Article 43 Financial services
The objective of cooperation will be the improvement and development of financial
services.
It will take the form of:
- encouraging the strengthening and restructuring of the Palestinian financial sector,
- improving Palestinian accounting, supervisory and regulatory systems of banking,
insurance and other parts of the financial sector.
Article 44 Agriculture and fisheries
The objective of cooperation under this heading will mainly be the modernization and
restructuring, where necessary, of agriculture and fisheries.
This includes modernization of infrastructures and of equipment; the development of
packaging, storage and marketing techniques; and the improvement of distribution channels.
It will be geared more especially to:
- the development of stable markets,
- support for policies to diversify production and exports and external outlets,
- reduction of food dependency,
- promotion of environment-friendly agriculture and fisheries, taking particular account
of the need for conservation and rational management of fisheries,
- closer relations on a voluntary basis between business groups and organizations
representing trades and professions,
- technical assistance and training,
- harmonization of phytosanitary and veterinary standards,
- integrated rural development including improvement of basic services and the development
of associated economic activities, and
- cooperation among rural regions and exchange of experience and know-how concerning rural
development.
Article 45 Social development
The Parties acknowledge the importance of social development which should go hand-in-hand
with any economic development. They give particular priority to respect for basic social
rights.
The Parties will give priority to measures aimed at:
- the promotion of the equality of women and a balanced participation in the
decision-making process in the economic and social sphere, notably through education and
the media,
- the development of family planning and the protection of mothers and children,
- improving the social protection system,
- improving the response to health requirements,
- improving the living conditions in densely populated areas in less-favoured regions,
- promoting respect for human rights and democracy, inter alia through socio-professional
dialogue.
Article 46 Transport
The objectives of cooperation will be:
- aid for restructuring and modernizing roads, ports and airports,
- improved passenger and freight services both at bilateral and regional level, and
- the establishment and enforcement of operating standards comparable to those prevailing
in the Community.
The priority areas of cooperation will be:
- road transport including a gradual easing of transit requirements,
- management of railways, ports and airports including navigation systems and cooperation
between the relevant national bodies,
- modernization of road, rail, port and airport infrastructure on major routes of common
interest,
- trans-European links and routes of regional interest, and
- upgrading of technical equipment to bring it up to Community standards for road/rail
transport, container traffic and transhipment.
Article 47 Information infrastructure and telecommunications
Cooperation shall aim at stimulating economic and social development as well as developing
an information society.
The priority areas of cooperation will be:
- to facilitate collaboration in the field of telecommunications policy, network
development and infrastructures for an information society,
- to develop a dialogue on issues related to the information society and to promote the
exchange of information and the organization of seminars and conferences in this area,
- to promote and implement joint projects aimed at the introduction of new
telecommunications services and applications related to the information society,
- to allow for information exchange on standardization, conformance testing, and
certification in information and communications technologies,
- interconnection and interoperability of networks and telematics services.
Article 48 Energy
The objective of cooperation on energy will be to help the West Bank and Gaza Strip
acquire the technologies and infrastructures essential to its development, particularly
with a view to facilitating links between its economy and that of the Community.
The priority areas of cooperation will be:
- the promotion of renewable energies,
- the promotion of energy-saving and energy efficiency,
- support to operations designed to facilitate the transit of gas, oil and electricity,
and applied research into data bank networks in the economic and social sectors linking
Community and Palestinian operators in particular, and
- support for the modernization and development of energy networks and for their link-up
to Community networks.
Article 49 Scientific and technological cooperation
The Parties will endeavour to promote cooperation on scientific and technological
development.
The aim of cooperation shall be to:
(a) encourage the establishment of permanent links between the Parties' scientific
communities, notably by means of:
- providing Palestinian institutions with access to Community research and technological
development programmes in accordance with Community rules governing non-Community
countries' involvement in such programmes,
- Palestinian participation in networks of decentralized cooperation,
- promoting synergy in training and research;
(b) improve Palestinian research capabilities;
(c) stimulate technological innovation and the transfer of new technology and know-how;
(d) encourage all activities aimed at establishing synergy at regional level.
Article 50 Environment
The objectives of cooperation will be to prevent deterioration of the environment, to
control pollution, to protect human health and to ensure the rational use of natural
resources with a view to promoting sustainable development.
It will place priority on matters relating to: desertification, water resource management,
salinization, the impact of agriculture on soil and water quality, the appropriate use of
energy, the impact of industrial development in general and the safety of industrial plant
in particular, waste management, the integrated management of sensitive areas, the quality
of sea water and the control and prevention of marine pollution, and environmental
education and awareness.
Cooperation shall be fostered by the use of advanced tools of environmental management,
environmental monitoring methods, and surveillance, including the use of environmental
information systems (EIS) and environmental impact assessment (EIA).
Article 51 Tourism
Priorities for cooperation shall be:
- promoting investments in tourism,
- improving the knowledge of the tourist industry and ensuring greater consistency of
policies affecting tourism,
- promoting a good seasonal spread of tourism,
- promoting cooperation between regions and cities of neighbouring countries,
- highlighting the importance of the cultural heritage for tourism,
- making tourism more competitive through support for increased professionalism ensuring
the balanced and sustainable development of tourism.
Article 52 Customs cooperation
Customs cooperation is intended to ensure that the provisions on trade are observed and to
guarantee fair trading.
It could give rise to the following types of cooperation:
- various forms of exchange of information and training schemes,
- simplification of controls and procedures concerning the customs clearance of goods,
- introduction of the single administrative document and a system to link up the
Community's and the Palestinian Authority's transit arrangements, and
- technical assistance provided by experts from the Community.
Without prejudice to other forms of cooperation provided for in this Agreement, the
administrative authorities of the Parties will provide each other with mutual assistance
on customs matters.
Article 53 Cooperation on statistics
The main objective of cooperation in this domain should aim to ensure the comparability
and usefulness of statistics on foreign trade, finance and balance of payments,
population, migration, transport and communications, and generally all the fields which
are covered by this Agreement and lend themselves to the establishment of statistics.
Article 54 Cooperation on economic policy
Cooperation is aimed at:
- the exchange of information on the macro-economic situation and prospects and
development strategies,
- joint analysis of economic issues of mutual interest, and
- the encouragement of cooperation between economists and policy makers in the West Bank
and the Gaza Strip and in the Community.
Article 55 Regional cooperation
As part of the implementation of economic cooperation in the various spheres, the Parties
will encourage operations designed to develop cooperation between the Palestinian
Authority and other Mediterranean partners, through technical support.
This cooperation will be an important element of the Community's support for the
development of the region as a whole.
Priority will be given to operations aimed at:
- promoting intra-regional trade,
- developing regional cooperation on the environment,
- encouraging the development of the communications infrastructure required for the
economic development of the region,
- strengthening the development of youth cooperation with neighbouring countries.
In addition the Parties will strengthen cooperation between them on regional development
and land-use planning.
To this end the following measures may be taken:
- joint action by regional and local authorities in the area of economic development, and
- the establishment of mechanisms for the exchange of information and experience.
TITLE IV COOPERATION ON AUDIO-VISUAL AND CULTURAL MATTERS, INFORMATION AND COMMUNICATION
Article 56
The Parties shall promote cooperation in the audio-visual sector to their mutual benefit.
The Parties shall seek ways of associating the Palestinian Authority with Community
initiatives in this sector, thus enabling cooperation in areas such as co-production,
training, development and distribution.
Article 57
The Parties shall promote cultural cooperation. The area of cooperation may include
Community activities concerning, in particular, translation, exchange of works of art and
artists, conservation and restoration of historic and cultural monuments and sites,
training of persons working in the cultural field, the organization of European-oriented
cultural events, raising mutual awareness and contributing to the dissemination of
information on outstanding cultural events.
Article 58
The Parties will undertake to determine how to improve significantly the education and
vocational training situation. To this end, the access of women to education, including
technical courses, higher education and vocational training, will receive special
attention.In order to develop the level of expertise of senior staff in the public and
private sectors, the Parties will step up their cooperation on education and vocational
training and cooperation between universities and firms.
Preparing young people to become active citizens in democratic civil society should be
actively promoted. Youth cooperation, including training of youth workers and youth
leaders, youth exchanges and voluntary service activities, could therefore be supported
and developed.Special attention will be paid to operations and programmes which will
enable permanent links (MED-CAMPUS, for instance) to be established between specialized
bodies in the Community and in the West Bank and Gaza Strip, such as will encourage the
pooling and exchange of experience and technical resources.
Article 59
The Parties shall promote activities of mutual interest in the field of information and
communication.
Article 60
Cooperation shall be implemented in particular through:
(a) a regular dialogue between the Parties;
(b) regular exchange of information and ideas in every sector of cooperation including
meetings of officials and experts;
(c) transfer of advice and experience and training of young Palestinian graduates;
(d) implementation of joint actions such as seminars and workshops;
(e) technical, administrative and regulatory assistance;
(f) the dissemination of information on cooperation activities.
TITLE V FINANCIAL COOPERATION
Article 61
In order to achieve the objectives of this Agreement, a financial cooperation package
shall be made available to the Palestinian Authority in accordance with the appropriate
procedures and the financial resources required.
These procedures shall be agreed by both Parties using the most appropriate instruments
after this Agreement has entered into force.
Financial cooperation shall focus on:
- responding to the economic repercussions for the West Bank and the Gaza Strip of the
gradual introduction of a free trade area, notably by upgrading and restructuring
industry,
- trade institutions which promote trading links with foreign markets,
- accompanying measures for policies implemented in the social sector,
- upgrading economic and social infrastructure,
- promoting private investment and job-creating activities in the productive sectors,
- promoting reforms designed to modernize the economy,
- services,
- urban and rural development,
- the environment,
- the setting-up and improvement of institutions necessary for the proper working of the
Palestinian public administration and the advancement of democracy and human rights.
Article 62
In order to ensure that a coordinated approach is adopted to any exceptional
macro-economic and financial problems that might arise as a result of the implementation
of this Agreement, the Parties shall use the regular economic dialogue provided for in
Title III to give particular attention to monitoring trade and financial flows in
relations between them.
TITLE VI INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 63
1. A Joint Committee for European Community-Palestinian Authority trade and cooperation,
referred to in this Agreement as 'the Joint Committee`, is hereby established. It shall
have the power to take decisions in the cases provided for in the Agreement as well as in
other cases necessary for the purpose of attaining the objectives set out in the
Agreement.
The decisions taken shall be binding on the Parties, which shall take such measures as are
required to implement them.
2. The Joint Committee may also formulate any resolutions, recommendations or opinions
which it considers desirable for the attainment of the common objectives and the smooth
functioning of the Agreement.
3. The Joint Committee shall adopt its own rules of procedure.
Article 64
1. The Joint Committee shall be composed of representatives of the Community and of the
Palestinian Authority.
2. The Joint Committee shall act by mutual agreement between the Community and the
Palestinian Authority.
Article 65
1. The office of Chairman of the Joint Committee shall be held alternately by the
Community and the Palestinian Authority in accordance with the conditions laid down in the
rules of procedure.
2. The Joint Committee shall meet once a year and when circumstances require, on the
initiative of its Chairman.
Article 66
1. The Joint Committee may decide to set up any other committee that can assist it in
carrying out its duties.
2. The Joint Committee shall determine the composition and duties of such committees and
how they shall function.
Article 67
1. Either Party may refer to the Joint Committee any dispute relating to the application
or interpretation of this Agreement.
2. The Joint Committee may settle the dispute by means of a decision.
3. Each Party shall be bound to take measures involved in carrying out the decision
referred to in paragraph 2.
4. 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 an arbitrator; the
other Party must then appoint a second arbitrator within two months.
The Joint Committee shall appoint a third arbitrator.
The arbitrators' decisions shall be taken by majority vote.
Each Party to the dispute must take the steps required to implement the decision of the
arbitrator.
Article 68
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.
Article 69
In the fields covered by this Agreement and without prejudice to any special provisions
contained therein:
- the arrangements applied by the Palestinian Authority 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 the Palestinian Authority shall
not give rise to discrimination between members of the Palestinian population, companies
or firms of the West Bank and Gaza Strip.
Article 70
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 appropriate measures. Before so doing, except in cases of
special urgency, it shall supply the Joint Committee 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 measures, priority must be given to those which least disturb the
functioning of the Agreement. These measures shall be notified immediately to the Joint
Committee and shall be the subject of consultations within the Joint Committee if the
other Party so requests.
Article 71
Annexes 1 to 3 and Protocols 1 to 3 shall form an integral part of this Agreement.
Declarations shall appear in the Final Act, which shall form an integral part of this
Agreement.
Article 72
For the purpose of this Agreement the term 'Parties` shall mean the PLO for the benefit of
the Palestinian Authority and the Community, which shall each act in accordance with their
respective powers.
Article 73
This Agreement shall apply, on the one hand, to the territories in which the Treaty
establishing the European Community is applied and under the conditions laid down in that
Treaty and, on the other hand, to the territory of the West Bank and the Gaza Strip.
Article 74
This Agreement, drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish, and Arabic languages, each of these
texts being equally authentic, shall be deposited with the General Secretariat of the
Council of the European Union.
Article 75
1. 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 month following the date on
which the Parties notify each other that the procedures referred to in the first paragraph
have been completed.
2. No later than 4 May 1999 negotiations shall commence with a view to concluding a
Euro-Mediterranean Association Agreement. Until such an Agreement is concluded, this
Agreement shall remain in force, subject to any amendments agreed between the Parties.
3. Each of the Parties may denounce this Agreement by notifying the other Party. The
Agreement shall cease to apply six months after the date of such notification.
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