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Document 02000A1215(01)-20100622

Consolidated text: Acordo de parceria entre os estados de África, das Caraíbas e do Pacífico e a comunidade europeia e os seus Estados-Membros assinado em Cotonu, em 23 de junho de 2000

ELI: http://data.europa.eu/eli/agree_internation/2003/159/2010-06-22

Consolidated TEXT: 22000A1215(01) — EN — 22.06.2010

2000A1215 — EN — 22.06.2010 — 001.001


This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

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PARTNERSHIP AGREEMENT

between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000

(OJ L 317, 15.12.2000, p.3)

Amended by:

 

 

Official Journal

  No

page

date

►M1

Decision No 1/2003 of the ACP-EC Council of Ministers of 16 May 2003

  L 141

25

7.6.2003

 M2

Decision No 2/2004 of the ACP-EC Council of Ministers of 30 June 2004

  L 297

18

22.9.2004

 M3

Agreement in the form of an exchange of letters between the European Community and Barbados, Belize, the Republic of Congo, Fiji, the Cooperative Republic of Guyana, the Republic of Côte d'Ivoire, Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of Mauritius, the Republic of Suriname, Saint Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, the Republic of Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia and the Republic of Zimbabwe on the accession of the Republic of Mozambique to Protocol No 3 on ACP sugar of Annex V to the ACP-EC Partnership Agreement

  L 356

2

1.12.2004

►M4

Agreement amending the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000

  L 209

27

11.8.2005

►M5

Decision No 1/2006 of the ACP-EC Council of Ministers of 2 June 2006

  L 247

22

9.9.2006

 M6

Decision No 4/2007 of the ACP-EC Council of Ministers of 20 December 2007

  L 25

11

30.1.2008

►M7

Decision No 1/2008 of the ACP-EC Council of Ministers of 13 June 2008

  L 171

63

1.7.2008

 M8

Decision No 3/2008 of the ACP-EC Council of Ministers of 15 December 2008

  L 352

59

31.12.2008

 M9

Decision No 1/2009 of the ACP-EC Council of Ministers of 29 May 2009

  L 168

48

30.6.2009

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Agreement amending for the second time the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000, as first amended in Luxembourg on 25 June 2005

  L 287

3

4.11.2010


Corrected by:

►C1

Corrigendum, OJ L 385, 29.12.2004, p. 88  (2000/1215)




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PARTNERSHIP AGREEMENT

between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000

TABLE OF CONTENTS

PREAMBLE

PART 1:

GENERAL PROVISIONS

Title I —

Objectives, principles and actors

Chapter 1:

Objectives and principles

Chapter 2:

The actors of the partnership

Title II —

The political dimension

PART 2:

INSTITUTIONAL PROVISIONS

PART 3:

COOPERATION STRATEGIES

Title I —

Development strategies

Chapter 1:

General framework

Chapter 2:

Areas of support

Section 1:

Economic development

Section 2:

Social and human development

Section 3:

Regional Cooperation and Integration

Section 4:

Thematic and cross-cutting issues

Title II —

Economic and trade Cooperation

Chapter 1:

Objectives and principles

Chapter 2:

New trading arrangements

Chapter 3:

Cooperation in the international fora

Chapter 4:

Trade in services

Chapter 5:

Trade-related areas

Chapter 6:

Cooperation in other areas

PART 4:

DEVELOPMENT FINANCE COOPERATION

Title I —

General provisions

Chapter 1:

Objectives, principles, guidelines and eligibility

Chapter 2:

Scope and nature of financing

Title II —

Financial cooperation

Chapter 1:

Financial resources

Chapter 2:

Debt and structural adjustment support

Chapter 3:

Support in case of exogenous shocks

Chapter 4:

Support for sectoral policies

Chapter 5:

Microprojects and decentralised cooperation

Chapter 6:

Humanitarian, emergency and post-emergency assistance

Chapter 7:

Investment and private sector development support

Title III —

Technical cooperation

Title IV —

Procedures and management systems

PART 5:

GENERAL PROVISIONS FOR THE LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP STATES (LDLICS)

Chapter 1:

General provisions

Chapter 2:

Least-developed ACP States

Chapter 3:

Landlocked ACP States

Chapter 4:

Island ACP States

PART 6:

FINAL PROVISIONS



PREAMBLE

HAVING REGARD TO the Treaty establishing the European Community, on the one hand, and the Georgetown Agreement establishing the Group of African, Caribbean and Pacific States (ACP), on the other;

AFFIRMING their commitment to work together towards the achievement of the objectives of poverty eradication, sustainable development and the gradual integration of the ACP countries into the world economy;

ASSERTING their resolve to make, through their cooperation, a significant contribution to the economic, social and cultural development of the ACP States and to the greater well-being of their population, helping them facing the challenges of globalisation and strengthening the ACP-EU Partnership in the effort to give the process of globalisation a stronger social dimension;

REAFFIRMING their willingness to revitalise their special relationship and to implement a comprehensive and integrated approach for a strengthened partnership based on political dialogue, development cooperation and economic and trade relations;

ACKNOWLEDGING that a political environment guaranteeing peace, security and stability, respect for human rights, democratic principles and the rule of law, and good governance is part and parcel of long term development; acknowledging that responsibility for establishing such an environment rests primarily with the countries concerned;

ACKNOWLEDGING that sound and sustainable economic policies are prerequisites for development;

REFERRING to the principles of the Charter of the United Nations, and recalling the Universal Declaration of Human Rights, the conclusions of the 1993 Vienna Conference on Human Rights, the Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights, the Convention on the Rights of the Child, the Convention on the Elimination of all forms of Discrimination against Women, the International Convention on the Elimination of all forms of Racial Discrimination, the 1949 Geneva Conventions and the other instruments of international humanitarian law, the 1954 Convention relating to the status of stateless persons, the 1951 Geneva Convention relating to the Status of Refugees and the 1967 New York Protocol relating to the Status of Refugees;

CONSIDERING the Convention for the Protection of Human Rights and Fundamental Freedoms of the Council of Europe, the African Charter on Human and Peoples' Rights and the American Convention on Human Rights as positive regional contributions to the respect of human rights in the European Union and in the ACP States;

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REAFFIRMING that the most serious crimes of concern to the international community must not go unpunished and that their effective prosecution must be ensured by taking measures at national level and by enhancing global collaboration;

CONSIDERING that the establishment and effective functioning of the International Criminal Court constitutes an important development for peace and international justice;

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RECALLING the declarations of the successive Summits of the Heads of State and Government of ACP States;

CONSIDERING that the Millennium Development Goals emanating from the Millennium Declaration adopted by the United Nations General Assembly in 2000, in particular the eradication of extreme poverty and hunger, as well as the development targets and principles agreed in the United Nations Conferences, provide for a clear vision and must underpin ACP-EU cooperation within this Agreement; acknowledging that the EU and the ACP States need to make a concerted effort to accelerate progress towards attaining the Millennium Development Goals;

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SUBSCRIBING to the aid effectiveness agenda started in Rome, pursued in Paris and further developed in the Accra Agenda for Action;

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PAYING particular attention to the pledges made and objectives agreed at major UN and other international conferences and acknowledging the need for further action to be taken in order to achieve the goals and implement the action programmes which have been drawn up in those fora;

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AWARE of the serious global environmental challenge posed by climate change, and deeply concerned that the most vulnerable populations live in developing countries, in particular in Least Developed Countries and Small Island ACP States, where climate-related phenomena such as sea level rise, coastal erosion, flooding, droughts and desertification are threatening their livelihoods and sustainable development;

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ANXIOUS to respect basic labour rights, taking account of the principles laid down in the relevant conventions of the International Labour Organisation;

RECALLING the commitments within the framework of the World Trade Organisation,

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:



PART 1

GENERAL PROVISIONS



TITLE I

OBJECTIVES, PRINCIPLES AND ACTORS



CHAPTER 1

Objectives and principles

Article 1

Objectives of the partnership

The Community and its Member States, of the one part, and the ACP States, of the other part, hereinafter referred to as the ‘Parties’ hereby conclude this Agreement in order to promote and expedite the economic, cultural and social development of the ACP States, with a view to contributing to peace and security and to promoting a stable and democratic political environment.

The partnership shall be centred on the objective of reducing and eventually eradicating poverty consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy.

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These objectives and the Parties' international commitments, including the Millennium Development Goals, shall inform all development strategies and shall be tackled through an integrated approach taking account at the same time of the political, economic, social, cultural and environmental aspects of development. The partnership shall provide a coherent support framework for the development strategies adopted by each ACP State.

Sustained economic growth, developing the private sector, increasing employment and improving access to productive resources shall all be part of this framework. Support shall be given to the respect of the rights of the individual and meeting basic needs, the promotion of social development and the conditions for an equitable distribution of the fruits of growth. Regional and sub-regional integration processes which foster the integration of the ACP countries into the world economy in terms of trade and private investment shall be encouraged and supported. Building the capacity of the actors in development and improving the institutional framework necessary for social cohesion, for the functioning of a democratic society and market economy, and for the emergence of an active and organised civil society shall be integral to the approach. Systematic account shall be taken of the situation of women and gender issues in all areas - political, economic and social. The principles of sustainable management of natural resources and the environment, including climate change, shall be applied and integrated at every level of the partnership.

Article 2

Fundamental principles

ACP-EC cooperation, underpinned by a legally binding system and the existence of joint institutions, shall be guided by the internationally agreed aid effectiveness agenda regarding ownership, alignment, harmonisation, results-oriented aid management and mutual accountability, exercised on the basis of the following fundamental principles:

 equality of the partners and ownership of the development strategies: for the purposes of implementing the objectives of the partnership, the ACP States shall determine the development strategies for their economies and societies in all sovereignty and with due regard for the essential and fundamental elements described in Article 9; the partnership shall encourage ownership of the development strategies by the countries and populations concerned; EU development partners shall align their programmes with these strategies;

 participation: apart from central government as the main partner, the partnership shall be open to ACP parliaments, and local authorities in ACP States and different kinds of other actors in order to encourage the integration of all sections of society, including the private sector and civil society organisations, into the mainstream of political, economic and social life;

 the pivotal role of dialogue and the fulfilment of mutual obligations and accountability: the obligations assumed by the Parties in the framework of their dialogue shall be central to their partnership and cooperation relations; the Parties shall work closely together in determining and implementing the necessary processes of donor alignment and harmonisation, with a view to securing a key role for ACP States in these processes;

 differentiation and regionalisation: cooperation arrangements and priorities shall vary according to a partner's level of development, its needs, its performance and its long-term development strategy. Special treatment shall be given to the least-developed countries. The vulnerability of landlocked and island countries shall be taken into account. Particular emphasis shall be put on regional integration, including at continental level.

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Article 3

Achievement of this Agreement's objectives

The Parties shall, each as far as it is concerned in the framework of this Agreement, take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement and to facilitate the attainment of the objectives thereof. They shall refrain from any measures liable to jeopardise these objectives.



CHAPTER 2

The actors of the partnership

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Article 4

General approach

The ACP States shall determine the development principles, strategies and models of their economies and societies in all sovereignty. They shall establish, with the Community, the cooperation programmes provided for under this Agreement. However, the parties recognise the complementary role of and potential for contributions by non-State actors, ACP national parliaments and local decentralised authorities to the development process, particularly at the national and regional levels. To this end, under the conditions laid down in this Agreement, non-State actors, ACP national parliaments and local decentralised authorities, shall, where appropriate:

 be informed and involved in consultation on cooperation policies and strategies, on priorities for cooperation especially in areas that concern or directly affect them, and on the political dialogue,

 be provided with capacity-building support in critical areas in order to reinforce the capabilities of these actors, particularly as regards organisation and representation, and the establishment of consultation mechanisms including channels of communication and dialogue, and to promote strategic alliances.

Non-State actors and local decentralised authorities shall, where appropriate:

 be provided with financial resources, under the conditions laid down in this Agreement in order to support local development processes,

 be involved in the implementation of cooperation projects and programmes in areas that concern them or where these actors have a comparative advantage.

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Article 5

Information

Cooperation will support operation to provide more information and create greater awareness of the basic features of ACP-EU Partnership. Cooperation will also:

 encourage partnership and build links between ACP and EU actors;

 strengthen networking and exchange of expertise and experience among the actors.

Article 6

Definitions

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1.  The actors of cooperation will include:

(a) State (local, regional and national), including ACP national parliaments;

(b) ACP regional organisations and the African Union. For the purpose of this Agreement the notion of regional organisations or levels shall also include sub-regional organisations or levels;

(c) non-State:

 private sector,

 economic and social partners, including trade union organisations,

 civil society in all its forms according to national characteristics.

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2.  Recognition by the parties of ►M10  non-State actors ◄ shall depend on the extent to which they address the needs of the population, on their specific competencies and whether they are organised and managed democratically and transparently.

Article 7

Capacity building

The contribution of civil society to development can be enhanced by strengthening community organisations and non-profit non-governmental organisations in all spheres of cooperation. This will require:

 encouraging and supporting the creation and development of such organisations;

 establishing arrangements for involving such organisations in the design, implementation and evaluation of development strategies and programmes.



TITLE II

THE POLITICAL DIMENSION

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Article 8

Political dialogue

1.  The Parties shall regularly engage in a comprehensive, balanced and deep political dialogue leading to commitments on both sides.

2.  The objective of this dialogue shall be to exchange information, to foster mutual understanding and to facilitate the establishment of agreed priorities and shared agendas, in particular by recognising existing links between the different aspects of the relations between the Parties and the various areas of cooperation as laid down in this Agreement. The dialogue shall facilitate consultations and strengthen cooperation between the Parties within international fora as well as promote and sustain a system of effective multilateralism. The objectives of the dialogue shall also include preventing situations arising in which one Party might deem it necessary to have recourse to the consultation procedures envisaged in Articles 96 and 97.

3.  The dialogue shall cover all the aims and objectives laid down in this Agreement as well as all questions of common, general or regional interest, including issues pertaining to regional and continental integration. Through dialogue, the Parties shall contribute to peace, security and stability and promote a stable and democratic political environment. It shall encompass cooperation strategies, including the aid effectiveness agenda, as well as global and sectoral policies, including environment, climate change, gender, migration and questions related to the cultural heritage. It shall also address global and sectoral policies of both Parties that might affect the achievement of the objectives of development cooperation.

4.  The dialogue shall focus, inter alia, on specific political issues of mutual concern or of general significance for the attainment of the objectives of this Agreement, such as the arms trade, excessive military expenditure, drugs, organised crime or child labour, or discrimination of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. The dialogue shall also encompass a regular assessment of the developments concerning the respect for human rights, democratic principles, the rule of law and good governance.

5.  Broadly based policies to promote peace and to prevent, manage and resolve violent conflicts shall play a prominent role in this dialogue, as shall the need to take full account of the objective of peace and democratic stability in the definition of priority areas of cooperation. The dialogue in this context shall fully involve the relevant ACP regional organisations and the African Union, where appropriate.

6.  The dialogue shall be conducted in a flexible manner. The dialogue shall be formal or informal according to the need, and conducted within and outside the institutional framework, including the ACP Group, the Joint Parliamentary Assembly, in the appropriate format and at the appropriate level, including national, regional, continental or all-ACP level.

7.  Regional organisations and representatives of civil society organisations shall be associated with this dialogue, as well as ACP national parliaments, where appropriate.

8.  Where appropriate, and in order to prevent situations arising in which one Party might deem it necessary to have recourse to the consultation procedure foreseen in Article 96, dialogue covering the essential elements shall be systematic and formalised in accordance with the modalities set out in Annex VII.

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Article 9

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Essential elements regarding human rights, democratic principles and the rule of law, and fundamental element regarding good governance

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1.  Cooperation shall be directed towards sustainable development centred on the human person, who is the main protagonist and beneficiary of development; this entails respect for and promotion of all human rights.

Respect for all human rights and fundamental freedoms, including respect for fundamental social rights, democracy based on the rule of law and transparent and accountable governance are an integral part of sustainable development.

2.  The Parties refer to their international obligations and commitments concerning respect for human rights. They reiterate their deep attachment to human dignity and human rights, which are legitimate aspirations of individuals and peoples. Human rights are universal, indivisible and inter-related. The Parties undertake to promote and protect all fundamental freedoms and human rights, be they civil and political, or economic, social and cultural. In this context, the Parties reaffirm the equality of men and women.

The Parties reaffirm that democratisation, development and the protection of fundamental freedoms and human rights are interrelated and mutually reinforcing. Democratic principles are universally recognised principles underpinning the organisation of the State to ensure the legitimacy of its authority, the legality of its actions reflected in its constitutional, legislative and regulatory system, and the existence of participatory mechanisms. On the basis of universally recognised principles, each country develops its democratic culture.

The structure of government and the prerogatives of the different powers shall be founded on rule of law, which shall entail in particular effective and accessible means of legal redress, an independent legal system guaranteeing equality before the law and an executive that is fully subject to the law.

Respect for human rights, democratic principles and the rule of law, which underpin the ACP-EU Partnership, shall underpin the domestic and international policies of the Parties and constitute the essential elements of this Agreement.

3.  In the context of a political and institutional environment that upholds human rights, democratic principles and the rule of law, good governance is the transparent and accountable management of human, natural, economic and financial resources for the purposes of equitable and sustainable development. It entails clear decision-making procedures at the level of public authorities, transparent and accountable institutions, the primacy of law in the management and distribution of resources and capacity building for elaborating and implementing measures aiming in particular at preventing and combating corruption.

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Good governance, which underpins the ACP-EU Partnership, shall underpin the domestic and international policies of the Parties, and constitute a fundamental element of this Agreement. The parties agree that serious cases of corruption, including acts of bribery leading to such corruption, as referred to in Article 97 constitute a violation of that element.

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4.  The Partnership shall actively support the promotion of human rights, processes of democratisation, consolidation of the rule of law, and good governance.

These areas will be an important subject for the political dialogue. In the context of this dialogue, the Parties shall attach particular importance to the changes underway and to the continuity of the progress achieved. This regular assessment shall take into account each country's economic, social, cultural and historical context.

These areas will also be a focus of support for development strategies. The Community shall provide support for political, institutional and legal reforms and for building the capacity of public and private actors and civil society in the framework of strategies agreed jointly between the State concerned and the Community.

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The principles underlying the essential and fundamental elements as defined in this Article shall apply equally to the ACP States on the one hand, and to the European Union and its Member States, on the other hand.

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Article 10

Other elements of the political environment

1.  The Parties consider the following elements as contributing to the maintenance and consolidation of a stable and democratic political environment:

 sustainable and equitable development involving, inter alia, access to productive resources, essential services and justice;

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 greater involvement of ACP national parliaments, local decentralised authorities, where appropriate, and of an active and organised civil society and the private sector.

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2.  The Parties recognise that the principles of the ►M10  social market economy ◄ , supported by transparent competition rules and sound economic and social policies, contribute to achieving the objectives of the partnership.

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Article 11

Peace-building policies, conflict prevention and resolution, response to situations of fragility

1.  The Parties acknowledge that without development and poverty reduction there will be no sustainable peace and security, and that without peace and security there can be no sustainable development. The Parties shall pursue an active, comprehensive and integrated policy of peace building and conflict prevention and resolution, and human security, and shall address situations of fragility within the framework of the Partnership. This policy shall be based on the principle of ownership and shall in particular focus on building national, regional and continental capacities, and on preventing violent conflicts at an early stage by addressing their root-causes, including poverty, in a targeted manner, and with an adequate combination of all available instruments.

1.  The Parties acknowledge that new or expanding security threats need to be addressed, such as organised crime, piracy and trafficking of, notably, people, drugs and weapons. The impacts of global challenges like international financial market shocks, climate change and pandemics also need to be taken into account.

1.  The Parties emphasize the important role of regional organisations in peace building and conflict prevention and resolution and in tackling new or expanding security threats with, in Africa, a key responsibility for the African Union.

2.  The interdependence between security and development shall inform the activities in the field of peace building, conflict prevention and resolution which shall combine short and long-term approaches, which encompass and go beyond crisis management. Activities to tackle new or expanding security threats shall, inter alia, support law enforcement, including cooperating on border controls, enhancing the security of the international supply chain, and improving air, maritime and road transport safeguards.

2.  Activities in the field of peace building, conflict prevention and resolution shall in particular include support for balancing political, economic, social and cultural opportunities among all segments of society, for strengthening the democratic legitimacy and effectiveness of governance, for establishing effective mechanisms for the peaceful conciliation of group interests, for active involvement of women, for bridging dividing lines among different segments of society as well as support for an active and organised civil society. In this respect, particular attention shall be paid to developing early warning systems and peace-building mechanisms that would contribute to the prevention of conflicts.

3.  Relevant activities shall also include, inter alia, support for mediation, negotiation and reconciliation efforts, for effective regional management of shared, scarce natural resources, for demobilisation and reintegration of former combatants into the society, for addressing the problems of child soldiers and of violence against women and children. Suitable action shall be taken to set responsible limits to military expenditure and arms trade, including through support for the promotion and application of agreed standards and codes of conduct, as well as to combat activities that fuel conflict.

3a.  Particular emphasis shall be given to the fight against anti-personnel landmines and explosive remnants of war as well as to addressing the illicit manufacture, transfer, circulation and accumulation of small arms and light weapons and their ammunition, including inadequately secured and poorly managed stocks and stockpiles and their uncontrolled spread.

3a.  The Parties agree to coordinate, observe and fully implement their respective obligations under all relevant international conventions and instruments, and, to this end, they undertake to cooperate at the national, regional and continental levels.

3b.  The Parties also undertake to cooperate in the prevention of mercenary activities in accordance with their obligations under all relevant international conventions and instruments, and their respective legislation and regulations.

4.  In order to address situations of fragility in a strategic and effective manner, the Parties shall share information and facilitate preventive responses combining diplomatic, security and development cooperation tools in a coherent way. They shall agree on the best way to strengthen capabilities of States to fulfil their core functions and to stimulate political will for reform while respecting the principle of ownership. In situations of fragility, political dialogue is especially important and shall be further developed and reinforced.

5.  In situations of violent conflict the Parties shall take all suitable action to prevent an intensification of violence, to limit its territorial spread, and to facilitate a peaceful settlement of the existing disputes. Particular attention shall be paid to ensuring that financial resources for cooperation are used in accordance with the principles and objectives of the Partnership, and to preventing a diversion of funds for belligerent purposes.

6.  In post-conflict situations, the Parties shall take all suitable action to stabilise the situation during the transition in order to facilitate the return to a non-violent, stable and democratic situation. The Parties shall ensure the creation of the necessary links between emergency measures, rehabilitation and development cooperation.

7.  In promoting the strengthening of peace and international justice, the Parties reaffirm their determination to:

 share experience in the adoption of legal adjustments required to allow for the ratification and implementation of the Rome Statute of the International Criminal Court; and

 fight against international crime in accordance with international law, giving due regard to the Rome Statute.

7.  The Parties shall seek to take steps towards ratifying and implementing the Rome Statute and related instruments.

Article 12

Coherence of Community policies and their impact on the implementation of this Agreement

The Parties are committed to addressing policy coherence for development in a targeted, strategic and partnership-oriented way, including strengthening dialogue on issues of policy coherence for development. The Union acknowledges that Union policies, other than development policy, can support the development priorities of ACP States in line with the objectives of this Agreement. On this basis the Union will enhance the coherence of those policies with a view to attaining the objectives of this Agreement.

Without prejudice to Article 96, where the Community intends, in the exercise of its powers, to take a measure which might affect the interests of the ACP States, as far as this Agreement's objectives are concerned, it shall inform in good time the ACP Group of its intentions. To this end, the Commission shall regularly inform the Secretariat of the ACP Group of planned proposals and communicate simultaneously its proposal for such measures. Where necessary, a request for information may also take place on the initiative of the ACP States.

At their request, consultations shall be held promptly so that account may be taken of their concerns as to the impact of those measures before any final decision is made.

After such consultations have taken place, the ACP States and the ACP Group may, in addition, transmit their concerns in writing to the Community as soon as possible and submit suggestions for amendments indicating the way their concerns should be met.

If the Community does not accede to the ACP States’ submissions, it shall advise them as soon as possible giving its reasons.

The ACP Group shall also be provided with adequate information on the entry into force of such decisions, in advance whenever possible.

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Article 13

Migration

1.  The issue of migration shall be the subject of in-depth dialogue in the framework of the ACP-EU Partnership.

The Parties reaffirm their existing obligations and commitments in international law to ensure respect for human rights and to eliminate all forms of discrimination based particularly on origin, sex, race, language and religion.

2.  The Parties agree to consider that a partnership implies, with relation to migration, fair treatment of third country nationals who reside legally on their territories, integration policy aiming at granting them rights and obligations comparable to those of their citizens, enhancing non-discrimination in economic, social and cultural life and developing measures against racism and xenophobia.

3.  The treatment accorded by each Member State to workers of ACP countries legally employed in its territory, shall be free from any discrimination based on nationality, as regards working conditions, remuneration and dismissal, relative to its own nationals. Further in this regard, each ACP State shall accord comparable non-discriminatory treatment to workers who are nationals of a Member State.

4.  The Parties consider that strategies aiming at reducing poverty, improving living and working conditions, creating employment and developing training contribute in the long term to normalising migratory flows.

The Parties will take account, in the framework of development strategies and national and regional programming, of structural constraints associated with migratory flows with the purpose of supporting the economic and social development of the regions from which migrants originate and of reducing poverty.

The Community shall support, through national and regional Cooperation programmes, the training of ACP nationals in their country of origin, in another ACP country or in a Member State of the European Union. As regards training in a Member State, the Parties shall ensure that such action is geared towards the vocational integration of ACP nationals in their countries of origin.

The Parties shall develop cooperation programmes to facilitate the access of students from ACP States to education, in particular through the use of new communication technologies.

5.  

(a) In the framework of the political dialogue the Council of Ministers shall examine issues arising from illegal immigration with a view to establishing, where appropriate, the means for a prevention policy.

(b) In this context the Parties agree in particular to ensure that the rights and dignity of individuals are respected in any procedure initiated to return illegal immigrants to their countries of origin. In this connection the authorities concerned shall extend to them the administrative facilities necessary for their return.

(c) The Parties further agree that:

i) 

each Member State of the European Union shall accept the return of and readmission of any of its nationals who are illegally present on the territory of an ACP State, at that State's request and without further formalities;

each of the ACP States shall accept the return of and readmission of any of its nationals who are illegally present on the territory of a Member State of the European Union, at that Member State's request and without further formalities.

The Member States and the ACP States will provide their nationals with appropriate identity documents for such purposes.

In respect of the Member States of the European Union, the obligations in this paragraph apply only in respect of those persons who are to be considered their nationals for the Community purposes in accordance with Declaration No 2 to the Treaty establishing the European Community. In respect of ACP States, the obligations in this paragraph apply only in respect of those persons who are considered as their nationals in accordance with their respective legal system.

(ii) at the request of a Party, negotiations shall be initiated with ACP States aiming at concluding in good faith and with due regard for the relevant rules of international law, bilateral agreements governing specific obligations for the readmission and return of their nationals. These agreements shall also cover, if deemed necessary by any of the Parties, arrangements for the readmission of third country nationals and stateless persons. Such agreements will lay down the details about the categories of persons covered by these arrangements as well as the modalities of their readmission and return.

Adequate assistance to implement these agreements will be provided to the ACP States.

(iii) for the purposes of this point (c), the term ‘Parties’ shall refer to the Community, any of its Member States and any ACP State.



PART 2

INSTITUTIONAL PROVISIONS

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Article 14

The joint institutions

1.  The joint institutions of this Agreement are the Council of Ministers, the Committee of Ambassadors and the Joint Parliamentary Assembly.

2.  The joint institutions and the institutions set up under the Economic Partnership Agreements, without prejudice to the relevant provisions of existing or future Economic Partnership Agreements, shall endeavour to ensure coordination, coherence and complementarity, as well as an effective and reciprocal flow of information.

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Article 14a

Meetings of Heads of State or Government

The Parties shall meet at the level of Heads of State or Government, upon joint agreement, in an appropriate format.

▼B

Article 15

The Council of Ministers

1.  The Council of Ministers shall comprise, on the one hand, the members of the Council of the European Union and members of the Commission of the European Communities and, on the other, a member of the government of each ACP State.

The office of the President of the Council of Ministers shall be held alternately by a member of the Council of the European Union and a member of the government of an ACP State.

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The Council of Ministers shall meet as a rule once a year on the initiative of the President and whenever it seems necessary, in a form and a geographical composition appropriate to the issues to be addressed. Such meetings will provide for high-level consultations on matters which are of specific concern to the Parties, complementing the work that is being done in the Joint Ministerial Trade Committee, as set out in Article 38, and in the ACP-EC Development Finance Cooperation Committee, as set out in Article 83, which feed into the annual regular Council of Ministers meetings.

▼B

2.  The functions of the Council of Ministers shall be to:

(a) conduct the political dialogue;

(b) adopt the policy guidelines and take the decisions necessary for the implementation of the provisions of this Agreement, in particular as regards development strategies in the specific areas provided for by this Agreement or any other area that should prove relevant, and as regards procedures;

(c) examine and resolve any issue liable to impede the effective and efficient implementation of this Agreement or present an obstacle to achieving its objectives;

(d) ensure the smooth functioning of the consultation mechanisms.

3.  The Council of Ministers shall take its decisions by common agreement of the Parties. The proceedings of the Council of Ministers shall be valid only if half the members of the Council of the European Union, one member of the Commission and two-thirds of the members representing the governments of the ACP States are present. Any member of the Council of Ministers unable to attend may be represented. The representative shall exercise all the rights of that member.

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It may take decisions that are binding on the Parties and frame resolutions, recommendations and opinions, during the annual regular meeting, or by written procedure. It shall report annually to the Joint Parliamentary Assembly on the implementation of this Agreement. It shall examine and take into consideration resolutions and recommendations adopted by the Joint Parliamentary Assembly.

▼B

The Council of Ministers shall conduct an ongoing dialogue with the representatives of the social and economic partners and other actors of civil society in the ACP and the EU. To that end, consultations may be held alongside its meetings.

4.  The Council of Ministers may delegate powers to the Committee of Ambassadors.

5.  The Council of Ministers shall adopt its rules of procedure within six months of the entry into force of this Agreement.

Article 16

The Committee of Ambassadors

1.  The Committee of Ambassadors shall comprise, on the one hand, the permanent representative of each Member State to the European Union and a representative of the Commission and, on the other, the head of mission of each ACP State to the European Union.

The office of Chairman of the Committee of Ambassadors shall be held alternately by a Permanent Representative of a Member State designated by the Community, and a head of mission representing an ACP State, designated by the ACP States.

2.  The Committee shall assist the Council of Ministers in the fulfilment of its tasks and carry out any mandate entrusted to it by the Council. In this context, it shall monitor implementation of this Agreement and progress towards achieving the objectives set therein.

The Committee of Ambassadors shall meet regularly, in particular to prepare the Council sessions and whenever it proves necessary.

3.  The Committee shall adopt its rules of procedure within six months of the entry into force of this Agreement.

Article 17

The Joint Parliamentary Assembly

1.  The Joint Parliamentary Assembly shall be composed of equal numbers of EU and ACP representatives. The members of the Joint Parliamentary Assembly shall be, on the one hand, members of the European Parliament and, on the other, members of parliament or, failing this, representatives designated by the parliament of each ACP State. In the absence of a parliament, the attendance of a representative from the ACP State concerned shall be subject to the prior approval of the Joint Parliamentary Assembly.

2.  The role of the Joint Parliamentary Assembly, as a consultative body, shall be to:

 promote democratic processes through dialogue and consultation;

 facilitate greater understanding between the peoples of the European Union and those of the ACP States and raise public awareness of development issues;

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 discuss issues pertaining to development and the ACP-EU Partnership, including the Economic Partnership Agreements, other trading arrangements, the European Development Fund and Country and Regional Strategy Papers. To this end, the Commission shall transmit such Strategy Papers for information to the Joint Parliamentary Assembly;

 discuss the annual report of the Council of Ministers on the implementation of this Agreement, and adopt resolutions and make recommendations to the Council of Ministers with a view to achieving the objectives of this Agreement;

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 advocate for institutional development and capacity building of national parliaments in accordance with Article 33(1) of this Agreement.

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3.  The Joint Parliamentary Assembly shall meet twice a year in plenary session, alternately in the European Union and in an ACP State. With a view to strengthening regional integration and fostering cooperation between national parliaments meetings between EU and ACP members of parliament shall be arranged at regional level.

3.  Such meetings at regional level will be organised in pursuance of the objectives laid down in Article 14(2) of this Agreement.

▼B

4.  The Joint Parliamentary Assembly shall adopt its rules of procedure within six months of the entry into force of this Agreement.



PART 3

COOPERATION STRATEGIES

Article 18

The cooperation strategies shall be based on development strategies and economic and trade cooperation which are interlinked and complementary. The Parties shall ensure that the efforts undertaken in both aforementioned areas are mutually reinforcing.



TITLE I

DEVELOPMENT STRATEGIES



CHAPTER 1

General framework

Article 19

Principles and objectives

1.  The central objective of ACP-EC cooperation is poverty reduction and ultimately its eradication; sustainable development; and progressive integration of the ACP countries into the world economy. In this context, cooperation framework and orientations shall be tailored to the individual circumstances of each ACP country, shall promote local ownership of economic and social reforms and the integration of the private sector and civil society actors into the development process.

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2.  Cooperation shall refer to the conclusions of United Nations Conferences and to the objectives, targets and action programmes agreed at international level and to their follow-up as a basis for development principles. Cooperation shall also refer to the international development cooperation targets and shall pay particular attention to putting in place qualitative and quantitative indicators of progress. The Parties will make concerted efforts to accelerate progress towards the attainment of the Millennium Development Goals.

▼B

3.  Governments and non-State actors in each ACP country shall initiate consultations on country development strategies and community support thereto.

Article 20

The Approach

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1.  The objectives of ACP-EC development cooperation shall be pursued through integrated strategies that incorporate economic, social, cultural, environmental and institutional elements that must be locally owned. Cooperation shall thus provide a coherent enabling framework of support to the ACP's own development strategies, ensuring complementarity and interaction between the various elements, in particular at, and between, the national and regional levels. In this context and within the framework of development policies and reforms pursued by the ACP States, ACP-EC cooperation strategies at national and, where appropriate, at regional levels shall aim at:

(a) achieving rapid and sustained job-creating economic growth, developing the private sector, increasing employment, and improving access to productive economic activities and resources;

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(aa) fostering regional cooperation and integration;

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(b) promoting human and social development helping to ensure that the fruits of growth are widely and equitably shared and promoting gender equality;

(c) promoting cultural values of communities and specific interactions with economic, political and social elements;

(d) promoting institutional reforms and development, strengthening the institutions necessary for the consolidation of democracy, good governance and for efficient and competitive market economies; and building capacity for development and partnership; and

(e) promoting environmental sustainability, regeneration and best practices, and the preservation of natural resource base.

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2.  Systematic account shall be taken in mainstreaming into all areas of cooperation the following thematic or cross-cutting themes: human rights, gender issues, democracy, good governance, environmental sustainability, climate change, communicable and non-communicable diseases and institutional development and capacity building. These areas shall also be eligible for Community support.

▼B

3.  The detailed texts as regards development cooperation objectives and strategies, in particular sectoral policies and strategies shall be incorporated in a compendium providing operational guidelines in specific areas or sectors of cooperation. These texts may be revised, reviewed and/or amended by the Council of Ministers on the basis of a recommendation from the ACP-EC Development Finance Cooperation Committee.



CHAPTER 2

Areas of support



SECTION 1

Economic development

Article 21

Investment and private sector development

1.  Cooperation shall support the necessary economic and institutional reforms and policies at national and/or regional level, aiming at creating a favourable environment for ►M10  investment ◄ , and the development of a dynamic, viable and competitive private sector. Cooperation shall further support:

(a) the promotion of public-private sector dialogue and cooperation;

(b) the development of entrepreneurial skills and business culture;

(c) privatisation and enterprise reform; and

(d) development and modernisation of mediation and arbitration systems.

2.  Cooperation shall also support improving the quality, availability and accessibility of financial and non-financial services to private enterprises, both formal and informal; by:

(a) catalysing and leveraging flows of private savings, both domestic and foreign, into the financing of private enterprises by supporting policies for developing a modern financial sector including a capital market, financial institutions and sustainable microfinance operations;

(b) the development and strengthening of business institutions and intermediary organisations, associations, chambers of commerce and local providers from the private sector supporting and providing non-financial services to enterprises such as professional, technical, management, training and commercial support services; and

(c) supporting institutions, programmes, activities and initiatives that contribute to the development and transfer of technologies and know-how and best practices on all aspects of business management.

3.  Cooperation shall promote business development through the provision of finance, guarantee facilities and technical support aimed at encouraging and supporting the creation, establishment, expansion, diversification, rehabilitation, restructuring, modernisation or privatisation of dynamic, viable and competitive enterprises in all economic sectors as well as financial intermediaries such as development finance and venture capital institutions, and leasing companies by:

(a) creating and/or strengthening financial instruments in the form of investment capital;

(b) improving access to essential inputs such as business information and advisory, consultancy or technical assistance services;

(c)  ►M10  enhancing ◄ export activities, in particular through capacity building in all trade-related areas; and

(d) encouraging inter-firm linkages, networks and cooperation including those involving the transfer of technology and know-how at national, regional and ACP-EU levels, and partnerships with private foreign investors which are consistent with the objectives and guidelines of ACP-EC Development cooperation.

4.  Cooperation shall support microenterprise development through better access to financial and non-financial services; an appropriate policy and regulatory framework for their development; and provide training and information services on best practices in microfinance.

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5.  Support for investment and private sector development shall integrate actions and initiatives at macro, meso and micro economic levels and promote the search for innovative financing mechanisms, including the blending and leveraging of private and public sources for development funding.

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6.  Cooperation shall support investments in basic infrastructure by the public sector aimed at private sector development, economic growth and poverty eradication.

▼B

Article 22

Macroeconomic and structural reforms and policies

1.  Cooperation shall support ACP efforts to implement:

(a) macroeconomic growth and stabilisation through disciplined fiscal and monetary policies that result in the reduction of inflation, and improve external and fiscal balances, by strengthening fiscal discipline, enhancing budgetary transparency and efficiency, improving the quality, the equity and composition of fiscal policy; and

(b) structural policies designed to reinforce the role of the different actors, especially the private sector, and improve the environment for enhanced domestic resource mobilisation and increases in business, investment and employment, as well as:

(i) liberalise trade and foreign exchange regimes and current account convertibility, having regard to the particular circumstances of each country;

(ii) strengthen labour and product-market reforms;

(iii) encourage financial systems reforms which help to develop viable banking and non-banking systems, capital markets and financial services, including micro-finance;

(iv) improve the quality of private and public services; and

(v) encourage regional cooperation and progressive integration of macroeconomic and monetary policies.

2.  The design of macroeconomic policies and structural adjustment programmes shall reflect the socio-political background and institutional capacity of the countries concerned, ensure a positive impact on poverty reduction and social services access and shall be based on the following principles:

(a) the ACP States shall bear primary responsibility for the analysis of the problems to be solved, the design and the implementation of the reforms;

(b) support programmes shall be adapted to the different situation in each ACP State and be sensitive to the social conditions, culture and environment of these States;

(c) the right of the ACP States to determine the direction and the sequencing of their development strategies and priorities shall be recognised and respected;

(d) the pace of reforms shall be realistic and compatible with each ACP State's capacities and resources; and

(e) strengthening the communication and the information of populations on economic and social reforms and policies.

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Article 23

Economic sector development

Cooperation shall support sustainable policy and institutional reforms and the investments necessary for equitable access to economic activities and productive resources, particularly:

(a) the development of training systems that help increase productivity in both the formal and the informal sectors;

(b) capital, credit, land, especially as regards property rights and use;

(c) development of rural strategies aimed at establishing a framework for participatory decentralised planning, resource allocation and management;

(d) the development of strategies with a view to enhancing agricultural production and productivity in ACP States by providing, in particular, the necessary financing for agricultural research, agricultural inputs and services, supportive rural infrastructure, and risk reduction and management. Support shall include public and private investments in agriculture, encouragement to develop agricultural policies and strategies, strengthening of farmer and private sector organisations, management of natural resources, and development and functioning of agricultural markets. The agricultural production strategies shall reinforce national and regional food-security policies and regional integration. In this context, cooperation shall support ACP efforts to enhance the competitiveness of their commodity exports and to adapt their commodity export strategies in the light of evolving trade conditions;

(e) sustainable development of water resources, based on integrated water resources management principles, ensuring equitable and sustainable distribution of shared water resources between their different uses;

(f) sustainable development of aquaculture and fisheries which include both inland fisheries and marine resources within the economic exclusive zones of the ACP States;

(g) economic and technological infrastructure and services, including transport, telecommunication systems, communication services and the development of information society;

(h) development of competitive industrial, mining and energy sectors, while encouraging private sector involvement and development;

(i) trade development, including the promotion of fair trade;

(j) development of business, finance and banking; and other service sectors;

(k) tourism development;

(l) development of scientific, technological and research infrastructure and services; including the enhancement, transfer and absorption of new technologies;

(m) the strengthening of capacities in productive areas, especially in public and private sectors;

(n) the promotion of traditional knowledge; and

(o) development and implementation of specific adaptation strategies addressing the impact of preference erosion, possibly including activities mentioned in points (a) to (n) above.

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Article 23a

Fisheries

Recognising the key role that fisheries and aquaculture play in ACP countries through their positive contribution to employment creation, revenue generation, food security, and livelihoods of rural and coastal communities, and hence to poverty reduction, cooperation shall aim at further developing the aquaculture and fisheries sectors of ACP countries in order to increase the associated social and economic benefits in a sustainable manner.

Cooperation programmes and activities shall support, inter alia, the development and implementation of sustainable aquaculture and fisheries development strategies and management plans in ACP countries and regions; the mainstreaming of aquaculture and fisheries into national and regional development strategies; the development of the infrastructure and technical know-how necessary to enable ACP countries to yield maximum sustainable value from their fisheries and aquaculture; capacity building of ACP countries to overcome external challenges that hinder them from taking full advantage of their fisheries resources; and the promotion and development of joint ventures for investment in the fisheries and aquaculture sectors of ACP countries. Any fishery agreement that may be negotiated between the Community and the ACP States shall give due consideration to consistency with the development strategies in this area.

High-level consultations, including at ministerial level, may be held upon joint agreement with a view to developing, improving and/or strengthening ACP-EU development cooperation in sustainable aquaculture and fisheries.

▼B

Article 24

Tourism

Cooperation will aim at the sustainable development of the tourism industry in ACP countries and sub-regions, recognising its increasing importance to the growth of the services sector in ACP countries and to the expansion of their global trade, its ability to stimulate other sectors of economic activity, and the role it can play in poverty eradication.

Cooperation programmes and projects will support the efforts of ACP countries to establish and improve the countries legal and institutional framework and resources for the development and implementation of sustainable tourism policies and programmes, as well as inter alia, improving the competitive position of the sector, especially small and medium-sized enterprises (SMEs), investment support and promotion, product development including the development of indigenous cultures in ACP countries, and strengthening linkages between tourism and other sectors of economic activity.



SECTION 2

Social and human development

Article 25

Social sector development

1.  Cooperation shall support ACP States' efforts at developing general and sectoral policies and reforms which improve the coverage, quality of and access to basic social infrastructure and services and take account of local needs and specific demands of the most vulnerable and disadvantaged, thus reducing the inequalities of access to these services. Special attention shall be paid to ensuring adequate levels of public spending in the social sectors. In this context, cooperation shall aim at:

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(a) improving education and training at all levels, working towards recognition of tertiary education qualifications, establishment of quality assurance systems for education, including education and training delivered on-line or through other non-conventional means, and building technical capacity and skills;

(b) improving health systems, in particular equitable access to comprehensive and quality health care services, and nutrition, eliminating hunger and malnutrition and ensuring adequate food supply and security, including through supporting safety nets;

▼B

(c) integrating population issues into development strategies in order to improve reproductive health, primary health care, family planning; and prevention of female genital mutilation;

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(d) promoting the fight against:

 HIV/AIDS, ensuring the protection of sexual and reproductive health and rights of women;

 other poverty-related diseases, particularly malaria and tuberculosis;

▼B

(e) increasing the security of household water and improving access to safe water and adequate sanitation;

(f) improving the availability of affordable and adequate shelter for all through supporting low-cost and low-income housing programs and improving urban development; and

(g) encouraging the promotion of participatory methods of social dialogue as well as respect for basic social rights.

2.  Cooperation shall also support capacity-building in social areas such as programmes for training in the design of social policies and modern methods for managing social projects and programmes; policies conducive to technological innovation and research; building local expertise and promoting partnerships; and round-table discussions at national and/or regional level.

3.  Cooperation shall promote and support the development and implementation of policies and of systems of social protection and security in order to enhance social cohesion and to promote self-help and community solidarity. The focus of the support shall, inter-alia, be on developing initiatives based on economic solidarity, particularly by setting-up social development funds adapted to local needs and actors.

Article 26

Youth issues

Cooperation shall also support the establishment of a coherent and comprehensive policy for realising the potential of youth so that they are better integrated into society to achieve their full potential. In this context, cooperation shall support policies, measures and operations aimed at:

(a) protecting the rights of children and youth, especially those of girl children;

(b) promoting the skills, energy, innovation and potential of youth in order to enhance their economic, social and cultural opportunities and enlarge their employment opportunities in the productive sector;

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(c) helping community-based institutions to give children the opportunity to develop their physical, psychological, social and economic potential;

(d) reintegrating into society children in post-conflict situations through rehabilitation programmes; and

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(e) promoting the active participation of young citizens in public life and fostering student exchanges and interaction of ACP and EU youth organisations.

▼B

Article 27

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Culture and development

▼B

Cooperation in the area of culture shall aim at:

(a) integrating the cultural dimension at all levels of development cooperation;

(b) recognising, preserving and promoting cultural values and identities to enable inter-cultural dialogue;

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(c) recognising, preserving and promoting the value of cultural heritage; supporting the development of capacity in this sector;

▼B

(d) developing cultural industries and enhancing market access opportunities for cultural goods and services;

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(e) recognising and supporting the role of cultural actors and cultural networks, and their contribution to sustainable development; and

(f) promoting the cultural dimension in education and the participation of youth in cultural activities.

▼B



SECTION 3

Regional cooperation and integration

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Article 28

General approach

1.  ACP-EU cooperation shall provide effective assistance to achieve the objectives and priorities which the ACP States have set themselves in the context of regional cooperation and integration.

2.  In conformity with the general objectives set out in Articles 1 and 20, ACP-EU cooperation shall aim to:

(a) promote peace and stability, as well as conflict prevention and resolution;

(b) enhance economic development and economic cooperation through the build-up of larger markets, the free movement of persons, goods, services, capital, labour and technology among ACP countries, the accelerated diversification of the economies of the ACP States, the promotion and expansion of trade among ACP countries and with third countries and the gradual integration of the ACP States into the world economy;

(c) promote the management of sustainable development challenges with a transnational dimension through, inter alia, coordination and harmonisation of regional cooperation policies.

3.  Under the conditions set out in Article 58, cooperation shall also support inter-regional and intra-ACP cooperation such as that involving:

(a) one or several ACP regional organisations, including at continental level;

(b) European Overseas Countries and Territories (OCTs) and outermost regions;

(c) non-ACP developing countries.

Article 29

ACP-EU cooperation in support of regional cooperation and integration

1.  In the area of stability, peace and conflict prevention, cooperation shall support:

(a) the promotion and development of a regional political dialogue in areas of conflict prevention and resolution; human rights and democratisation; exchange, networking, and promotion of mobility between the different actors of development, in particular in civil society;

(b) the promotion of regional initiatives and policies on security-related issues, including arms control, action against drugs, organised crimes, money laundering, bribery and corruption.

2.  In the area of regional economic integration, cooperation shall support:

(a) the participation of Least Developed Countries (LDC) ACP States in the establishment of regional markets and sharing the benefits therefrom;

(b) the implementation of sectoral economic reform policies at regional level;

(c) the liberalisation of trade and payments;

(d) the promotion of cross-border investments both foreign and domestic, and other regional economic integration initiatives;

(e) the mitigation of the effects of net transitional costs of regional integration on budget revenue and balance of payments; and

(f) infrastructure, particularly transport and communications and safety thereof, and services, including the development of regional opportunities in the area of Information and Communication Technologies (ICT).

3.  In the area of regional policies for sustainable development, cooperation shall support the priorities of ACP regions and, in particular:

(a) the environment and the sustainable management of natural resources, including water and energy, and addressing climate change;

(b) food security and agriculture;

(c) health, education and training;

(d) research and technological development; and

(e) regional initiatives for disaster preparedness and mitigation as well as post-disaster reconstruction.

Article 30

Capacity building in support of ACP regional cooperation and integration

With a view to realising the effectiveness and efficiency of regional policies, cooperation shall develop and strengthen the capacities of:

(a) regional integration institutions and organisations set up by the ACP States and those with ACP State participation that promote regional cooperation and integration;

(b) national governments and parliaments in matters of regional integration; and

(c) non-State actors, including the private sector.

▼B



SECTION 4

Thematic and cross-cutting issues

Article 31

Gender issues

Cooperation shall help strengthen policies and programmes that improve, ensure and broaden the equal participation of men and women in all spheres of political, economic, social and cultural life. Cooperation shall help improve the access of women to all resources required for the full exercise of their fundamental rights. More specifically, cooperation shall create the appropriate framework to:

(a) integrate a gender-sensitive approach and concerns at every level of development cooperation including macroeconomic policies, strategies and operations; and

(b) encourage the adoption of specific positive measures in favour of women such as:

(i) participation in national and local politics;

(ii) support for women's organisations;

(iii) access to basic social services, especially to education and training, health care and family planning;

(iv) access to productive resources, especially to land and credit and to labour market; and

(v) taking specific account of women in emergency aid and rehabilitation operations.

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Article 31a

HIV/AIDS

Cooperation shall support the efforts of ACP States to develop and strengthen across all sectors policies and programmes aimed at addressing the HIV/AIDS pandemic and preventing it from hampering development. It shall support ACP States in scaling up towards and sustaining universal access to HIV/AIDS prevention, treatment, care and support and shall in particular aim at:

(a) supporting the development and implementation of comprehensive multi-sectoral strategies and plans for HIV/AIDS as a priority in national and regional development plans;

(b) involving, in national responses to HIV/AIDS, all appropriate development sectors and ensuring a broad mobilisation of stakeholders at all levels;

(c) strengthening national health systems and addressing shortages in human resources for health as the basis for ensuring universal access to, and the effective integration of, HIV/AIDS prevention, treatment and care and other health services;

(d) addressing gender inequality, gender-based violence and abuse, as drivers of the HIV/AIDS pandemic and intensifying efforts to safeguard women's and girls’ rights, develop effective gender sensitive HIV/AIDS programmes and services for women and girls, including those related to sexual and reproductive health and rights, and to support the full involvement of women in planning and decision making related to HIV/AIDS strategies and programmes;

(e) developing supportive legal and policy frameworks and removing punitive laws, policies, practices, stigma and discrimination that undermine human rights, increase vulnerability to HIV/AIDS and inhibit access to effective HIV/AIDS prevention, treatment, care and support, including medicines, commodities and services for people living with HIV/AIDS and for the populations most at risk;

(f) scaling up access to evidence-based, comprehensive HIV/AIDS prevention, which address the local drivers of the epidemic and the specific needs of women, young people and the populations most at risk; and

(g) ensuring universal and reliable access to safe, high-quality and affordable medicines, and to health commodities, including sexual and reproductive health commodities.

▼B

Article 32

Environment and natural resources

1.  Cooperation on environmental protection and sustainable utilisation and management of natural resources shall aim at:

(a) mainstreaming environmental sustainability into all aspects of development cooperation and support programmes and projects implemented by the various actors;

(b) building and/or strengthening the scientific and technical human and institutional capacity for environmental management for all environmental stakeholders;

(c) supporting specific measures and schemes aimed at addressing critical sustainable management issues and also relating to current and future regional and international commitments concerning mineral and natural resources such as:

(i) tropical forests, water resources, coastal, marine and fisheries resources, wildlife, soils, biodiversity;

(ii) protection of fragile ecosystems (e.g. coral reef);

(iii) renewable energy sources notably solar energy and energy efficiency;

(iv) sustainable rural and urban development;

(v) desertification, drought and deforestation;

(vi) developing innovative solutions to urban environmental problems; and

(vii) promotion of sustainable tourism.

(d) Taking into account issues relating to the transport and disposal of hazardous waste.

2.  Cooperation shall also take account of:

(a) the vulnerability of small island ACP countries, especially to the threat posed by climate change;

(b) the worsening drought and desertification problems especially of least developed and land-locked countries; and

(c) institutional development and capacity building.

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Article 32a

Climate change

The Parties acknowledge that climate change is a serious global environmental challenge and a threat to the achievement of the Millennium Development Goals requiring adequate, predictable and timely financial support. For these reasons, and in accordance with the provisions of Article 32, and particularly of point (a) of paragraph 2 thereof, cooperation shall:

(a) recognise the vulnerability of ACP States and in particular of small islands and low-lying ACP States to climate-related phenomena such as coastal erosion, cyclones, flooding and environmentally induced displacements, and in particular of least developed and landlocked ACP States to increasing floods, drought, deforestation and desertification;

(b) strengthen and support policies and programmes to mitigate and adapt to the consequences of, and threat posed by, climate change including through institutional development and capacity building;

(c) enhance the capacity of ACP States in the development of, and the participation in, the global carbon market; and

(d) focus on the following activities:

(i) integrating climate change into development strategies and poverty reduction efforts;

(ii) raising the political profile of climate change in development cooperation, including through appropriate policy dialogue;

(iii) assisting ACP states to adapt to climate change in relevant sectors such as agriculture, water management and infrastructure, including through transfer and adoption of relevant and environmentally sound technologies;

(iv) promoting disaster risk reduction, reflecting that an increasing proportion of disasters are related to climate change;

(v) providing financial and technical support for mitigation action of ACP states in line with their poverty reduction and sustainable development objectives, including reducing emissions from deforestation and forest degradation and reducing emissions in the agricultural sector;

(vi) improving weather and climate information and forecasting and early warning systems; and

(vii) promoting renewable energy sources, and low-carbon technologies that enhance sustainable development.

▼B

Article 33

Institutional development and capacity building

1.  Cooperation shall pay systematic attention to institutional aspects and in this context, shall support the efforts of the ACP States to develop and strengthen structures, institutions and procedures that help to:

(a) promote and sustain democracy, human dignity, social justice and pluralism, with full respect for diversity within and among societies;

(b) promote and sustain universal and full respect for and observance and protection of all human rights and fundamental freedoms;

(c) develop and strengthen the rule of law; and improve access to justice, while guaranteeing the professionalism and independence of the judicial systems; and

(d) ensure transparent and accountable governance and administration in all public institutions.

2.  The Parties shall work together in the fight against bribery and corruption in all their societies.

3.  Cooperation shall support ACP States' efforts to develop their public institutions into a positive force for growth and development and to achieve major improvements in the efficiency of government services as they affect the lives of ordinary people. In this context, cooperation shall assist the reform, rationalisation and the modernisation of the public sector. Specifically, cooperation support shall focus on:

(a) the reform and modernisation of the civil service;

(b) legal and judicial reforms and modernisation of justice systems;

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(c) improvement and strengthening of public finance and fiscal management with a view to developing economic activities in ACP countries and increasing their tax revenues, whilst fully respecting the sovereignty of the ACP States in this area.

Measures may include:

(i) enhancing capacities for domestic revenue management, including the building of effective, efficient and sustainable tax systems;

(ii) promoting the participation in international tax cooperation structures and processes with a view to facilitating the further development of and effective compliance with international standards;

(iii) supporting implementation of international best practices in tax matters, including the principle of transparency and exchange of information, in those ACP countries that have committed to them;

▼B

(d) accelerating reforms of the banking and financial sector;

(e) improvement of the management of public assets and reform of public procurement procedures; and

(f) political, administrative, economic and financial decentralisation.

4.  Cooperation shall also assist to restore and/or enhance critical public sector capacity and to support institutions needed to underpin a market economy, especially support for:

(a) developing legal and regulatory capabilities needed to cope with the operation of a market economy, including competition policy and consumer policy;

(b) improving capacity to analyse, plan, formulate and implement policies, in particular in the economic, social, environmental, research, science and technology and innovation fields;

(c) modernising, strengthening and reforming financial and monetary institutions and improving procedures;

(d) building the capacity at the local and municipal levels which is required to implement decentralisation policy and to increase the participation of the population in the development process; and

(e) developing capacity in other critical areas such as:

(i) international negotiations; and

(ii) management and coordination of external aid.

5.  Cooperation shall span all areas and sectors of cooperation to foster the emergence of non-State actors and the development of their capacities; and to strengthen structures for information, dialogue and consultation between them and the national authorities, including at regional level.



TITLE II

ECONOMIC AND TRADE COOPERATION



CHAPTER 1

Objectives and principles

Article 34

Objectives

1.  Economic and trade cooperation shall aim at fostering the smooth and gradual integration of the ACP States into the world economy, with due regard for their political choices and development priorities, thereby promoting their sustainable development and contributing to poverty eradication in the ACP countries.

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2.  The ultimate objective of economic and trade cooperation is to enable the ACP States to play a full part in international trade. In this context, particular regard shall be had to the need for the ACP States to participate actively in multilateral trade negotiations. Given the current level of development of the ACP countries, economic and trade cooperation shall be directed at enabling the ACP States to manage the challenges of globalisation and to adapt progressively to new conditions of international trade thereby facilitating their transition to the liberalised global economy. In this context, close attention should be paid to many ACP countries' vulnerability resulting from their dependency on commodities or a few key products, including value-added agro-industry products, and the risk of preference erosion.

3.  To this end, economic and trade cooperation shall aim, through national and regional development strategies as defined in Title I, at enhancing the production, supply and trading capacity of the ACP countries as well as their capacity to attract investment. It shall further aim at creating a new trading dynamic between the Parties, at strengthening the ACP countries’ trade and investment policies, at reducing their dependency on commodities, at promoting more diversified economies and at improving the ACP countries’ capacity to handle all issues related to trade.

4.  Economic and trade cooperation shall be implemented in full conformity with the provisions of the World Trade Organisation (WTO), including special and differential treatment, taking account of the Parties’ mutual interests and their respective levels of development. It shall also address the effects of preference erosion in full conformity with multilateral commitments.

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Article 35

Principles

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1.  Economic and trade cooperation shall be based on a true, strengthened and strategic partnership. It shall further be based on a comprehensive approach which builds on the strengths and achievements of the previous ACP-EC Conventions.

2.  Economic and trade cooperation shall build on regional integration initiatives of ACP States. Cooperation in support of regional cooperation and integration as defined in Title I and economic and trade cooperation shall be mutually reinforcing. Economic and trade cooperation shall address, in particular, supply and demand side constraints, notably interconnectivity of infrastructure, economic diversification and trade development measures as a means of enhancing ACP States' competitiveness. Appropriate weight shall therefore be given to the corresponding measures in the ACP States’ and regions’ development strategies, which the Community shall support, in particular through the provision of aid for trade.

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3.  Economic and trade cooperation shall take account of the different needs and levels of development of the ACP countries and regions. In this context, the Parties reaffirm their attachment to ensuring special and differential treatment for all ACP countries and to maintaining special treatment for ACP LDCs and to taking due account of the vulnerability of small, landlocked and island countries.



CHAPTER 2

New trading arrangements

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Article 36

Modalities

1.  In view of the objectives and principles set out above, the Parties agree to take all the necessary measures to ensure the conclusion of new WTO-compatible Economic Partnership Agreements, removing progressively barriers to trade between them and enhancing cooperation in all areas relevant to trade.

2.  The Economic Partnership Agreements, as development instruments, aim to foster smooth and gradual integration of the ACP States into the world economy, especially by making full use of the potential of regional integration and South-South trade.

3.  The Parties agree that these new trading arrangements shall be introduced gradually.

Article 37

Procedures

1.  During the negotiations of the Economic Partnership Agreements, capacity building shall be provided in accordance with the provisions of Title I and Article 35 to the public and private sectors of ACP countries, including measures to enhance competitiveness, for strengthening of regional organisations and for support to regional trade integration initiatives, where appropriate with assistance to budgetary adjustment and fiscal reform, as well as for infrastructure upgrading and development, and for investment promotion.

2.  The Parties will regularly review the progress of negotiations as foreseen in Article 38

3.  Negotiations of the Economic Partnership Agreements will be pursued with ACP countries which consider themselves in a position to do so, at the level they consider appropriate and in accordance with the procedures agreed by the ACP Group and with a view to supporting regional integration processes within the ACP.

4.  Negotiations of the Economic Partnership Agreements shall aim notably at establishing the timetable for the progressive removal of barriers to trade between the Parties, in accordance with the relevant WTO rules. On the Community side trade liberalisation shall build on the acquis and shall aim at improving current market access for the ACP countries through, inter alia, a review of the rules of origin. Negotiations shall take account of the level of development and the socio-economic impact of trade measures on ACP countries, and their capacity to adapt and adjust their economies to the liberalisation process. Negotiations will therefore be as flexible as possible in establishing the duration of a sufficient transitional period, the final product coverage, taking into account sensitive sectors, and the degree of asymmetry in terms of timetable for tariff dismantlement, while remaining in conformity with WTO rules then prevailing.

5.  The Parties shall closely cooperate and collaborate in the WTO with a view to explaining and justifying the arrangements reached, in particular with regard to the degree of flexibility available.

6.  The Parties shall discuss further how to simplify and review the rules of origin, including cumulation provisions, that apply to their exports.

7.  Once ACP States have concluded an Economic Partnership Agreement, those ACP States which are not Parties to such Agreement can seek accession at any time.

8.  In the context of ACP-EU cooperation in support of ACP regional cooperation and integration as outlined in Title I, and in accordance with Article 35, the Parties shall pay particular attention to the needs arising from the implementation of the Economic Partnership Agreements. The principles outlined in Article 1 of Annex IV to this Agreement shall apply. To that effect, the Parties agree on the use of existing or new regional financing mechanisms through which resources from the multi-annual financial framework of cooperation and other additional resources could be channelled.

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Article 37a

Other trading arrangements

1.  In the context of the current trade policy trends aiming at greater liberalisation of trade the EU and the ACP States may take part in negotiations and implementation of agreements leading to further multilateral and bilateral trade liberalisation. Such liberalisation may lead to the erosion of the preferences granted to the ACP States and affect their competitive position in the EU market, as well as their development efforts, which the EU is concerned to support.

2.  In accordance with the objectives of economic and trade cooperation, the EU shall endeavour to pursue measures to overcome possible negative impacts of liberalisation, with a view to maintaining significant preferential access within the multilateral trading system for ACP States for as long as is feasible and to ensure that any unavoidable reduction in preference is phased in over as long a period as possible.

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Article 38

Joint Ministerial Trade Committee

1.  A Joint ACP-EC Ministerial Trade Committee shall be established.

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2.  The Ministerial Trade Committee shall discuss any trade-related issue of concern to all ACP States and, in particular, regularly monitor the negotiations and implementation of Economic Partnership Agreements. It shall pay special attention to current multilateral trade negotiations and shall examine the impact of the wider liberalisation initiatives on ACP-EC trade and the development of ACP economies. It shall report and make appropriate recommendations to the Council of Ministers, including on any supportive measures, with a view to enhancing the benefits of the ACP-EC trading arrangements.

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3.  The Ministerial Trade Committee shall meet at least once a year. Its rules of procedure shall be laid down by the Council of Ministers. It shall be composed of representatives of the ACP States and of the Community.

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Article 38a

Consultations

1.  Where new measures or measures stipulated in programmes adopted by the Community for the approximation of laws and regulations in order to facilitate trade are likely to affect the interests of one or more ACP States, the Community shall, prior to adopting such measures, inform the Secretariat of the ACP Group and the ACP States concerned.

2.  In order to enable the Community to take into consideration the interests of the ACP Group, consultations shall be held at the request of the latter in accordance with the provisions of Article 12 of this Agreement, with a view to reaching a satisfactory solution.

3.  Where existing Community rules or regulations adopted in order to facilitate trade affect the interests of one or more ACP States or where these interests are affected by the interpretation, application or administration of such rules or regulations, consultations shall be held at the request of the ACP States concerned in accordance with the provisions of Article 12 with a view to reaching a satisfactory solution.

4.  With a view to finding a satisfactory solution, the Parties may also bring up within the Joint Ministerial Trade Committee any other problems relating to trade which might result from measures taken or envisaged by the Member States.

5.  The Parties shall inform each other of such measures in order to ensure effective consultations.

6.  The Parties agree that holding consultations within, and providing information through, the institutions of an Economic Partnership Agreement on matters within the scope of such agreements shall be deemed to also satisfy the provisions of this Article and of Article 12 of this Agreement, provided that the ACP States likely to be affected are all signatories to the Economic Partnership Agreement within which the consultations were held or information was provided.

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CHAPTER 3

Cooperation in the international fora

Article 39

General Provisions

1.  The Parties underline the importance of their active participation in the WTO as well as in other relevant international organisations by becoming members of these organisations and closely following their agenda and activities.

2.  They agree to cooperate closely in identifying and furthering their common interests in international economic and trade cooperation in particular in the WTO, including participation in setting and conducting the agenda in future multilateral trade negotiations. In this context, particular attention shall be paid to improve access to the Community and other markets for products and services originating in the ACP countries.

3.  They also agree on the importance of flexibility in WTO rules to take account of the ACP's level of development as well of the difficulties faced in meeting their obligations. They further agree on the need for technical assistance to enable the ACP countries to implement their commitments.

4.  The Community agrees to assist the ACP States in their efforts, in accordance with the provisions set out in this Agreement, to become active members of these organisations, by developing the necessary capacity to negotiate, participate effectively, monitor and implement these agreements.

Article 40

Commodities

1.  The Parties recognise the need to ensure a better operation of international commodity markets and to increase market transparency.

2.  They confirm their willingness to step up consultations between them in the international fora and organisations dealing with commodities.

3.  To this end, exchange of views shall take place at the request of either Party:

 regarding the operation of existing international agreements or specialised intergovernmental working parties with the aim of improving them and making them more effective, consistent with market trends;

 when it is proposed to conclude or renew an international agreement or set up a specialised intergovernmental working party.

The aim of such exchanges of views shall be to take account of the respective interest of each party. They may take place, where necessary, in the framework of the Ministerial Trade Committee.



CHAPTER 4

Trade in services

Article 41

General Provisions

1.  The Parties underline the growing importance of services in international trade and their major contribution to economic and social development.

2.  They reaffirm their respective commitments under the General Agreement on Trade in Services (GATS), and underline the need for special and differential treatment to ACP suppliers of services;

3.  In the framework of the negotiations for progressive liberalisation in trade and services, as provided for in Article XIX of GATS, the Community undertakes to give sympathetic consideration to the ACP States' priorities for improvement in the EC schedule, with a view to meeting their specific interests.

4.  The Parties further agree on the objective of extending under the economic partnership agreements, and after they have acquired some experience in applying the Most Favoured Nation (MFN) treatment under GATS, their partnership to encompass the liberalisation of services in accordance with the provisions of GATS and particularly those relating to the participation of developing countries in liberalisation agreements.

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5.  The Community shall support, through national and regional development strategies as defined in Title I and in conformity with Article 35, the ACP States' efforts to strengthen their capacity in the supply of services. Particular attention shall be paid to services related to labour, business, distribution, finance, tourism, culture and construction and related engineering services with a view to enhancing their competitiveness and thereby increasing the value and the volume of their trade in goods and services.

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Article 42

Maritime Transport

1.  The Parties acknowledge the importance of cost-effective and efficient maritime transport services in a safe and clean marine environment as the main mode of transportation facilitating international trade and thereby constituting one of the forces behind economic development and the development of trade.

2.  They undertake to promote the liberalisation of maritime transport and to this end apply effectively the principle of unrestricted access to the international maritime transport market on a non-discriminatory and commercial basis.

3.  Each Party shall grant, inter alia, a treatment no less favourable than that accorded to its own ships, for ships operated by nationals or companies of the other Party, and for ships registered in the territory of either party, with respect to access to ports, the use of infrastructure and auxiliary maritime services of those ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

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4.  The Community shall support, through national and regional development strategies as defined in Title I and in conformity with Article 35, the ACP States' efforts to develop and promote cost-effective and efficient maritime transport services in the ACP States with a view to increasing the participation of ACP operators in international shipping services.

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Article 43

Information and Communication Technologies, and Information Society

1.  The Parties recognise the important role of information and communication technologies, as well as the active participation in the Information Society, as a pre-requisite for the successful integration of the ACP countries into the world economy.

2.  They therefore reconfirm their respective commitments under existing multilateral agreements, in particular the protocol on Basic Telecommunications attached to the GATS, and invite those ACP countries, which are not yet members of these agreements, to accede to them.

3.  They furthermore agree to participate fully and actively in any future international negotiation, which might be conducted in this area.

4.  The Parties will therefore take measures that will enable inhabitants of ACP countries easy access to information and communication technologies, through, amongst other, the following measures:

 the development and encouragement of the use of affordable renewable energy resources;

 the development and deployment of more extensive low-cost wireless networks.

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5.  The Parties also agree to step up cooperation between them in the area of information and communication technologies, and the Information Society. This cooperation shall, through national and regional development strategies as defined in Title I and in conformity with Article 35, in particular be directed towards greater complementarity and harmonisation of communication systems, at national, regional and international level and their adaptation to new technologies.

▼B



CHAPTER 5

Trade-related areas

Article 44

General Provisions

1.  The Parties acknowledge the growing importance of new areas related to trade in facilitating progressive integration of the ACP States into the world economy. They therefore agree to strengthen their cooperation in these areas by establishing full and coordinated participation in the relevant international fora and agreements.

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2.  The Community shall support the ACP States' efforts, through national and regional development strategies as defined in Title I and in conformity with Article 35, to strengthen their capacity to handle all areas related to trade, including, where necessary, improving and supporting the institutional framework.

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Article 45

Competition Policy

1.  The Parties agree that the introduction and implementation of effective and sound competition policies and rules are of crucial importance in order to improve and secure an investment friendly climate, a sustainable industrialisation process and transparency in the access to markets.

2.  To ensure the elimination of distortions to sound competition and with due consideration to the different levels of development and economic needs of each ACP country, they undertake to implement national or regional rules and policies including the control and under certain conditions the prohibition of 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. The Parties further agree to prohibit the abuse by one or more undertakings of a dominant position in the common market of the Community or in the territory of ACP States.

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3.  The Parties also agree to reinforce cooperation in this area with a view to formulating and supporting effective competition policies with the appropriate national competition agencies that progressively ensure the efficient enforcement of the competition rules by both private and state enterprises. Cooperation in this area shall, in particular, through national and regional development strategies as defined in Title I and in conformity with Article 35, include assistance in the drafting of an appropriate legal framework and its administrative enforcement with particular reference to the special situation of the Least Developed Countries.

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Article 46

Protection of Intellectual Property Rights

1.  Without prejudice to the positions of the Parties in multilateral negotiations, the Parties recognise the need to ensure an adequate and effective level of protection of intellectual, industrial and commercial property rights, and other rights covered by TRIPS including protection of geographical indications, in line with the international standards with a view to reducing distortions and impediments to bilateral trade.

2.  They underline the importance, in this context, of adherence to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to the WTO Agreement and the Convention on Biological Diversity (CBD).

3.  They also agree on the need to accede to all relevant international conventions on intellectual, industrial and commercial property as referred to in Part I of the TRIPS Agreement, in line with their level of development.

4.  The Community, its Member States and the ACP States may consider the conclusion of agreements aimed at protecting trademarks and geographical indications for products of particular interest of either Party.

5.  For the purpose of this Agreement, intellectual property includes in particular copyright, including the copyright on computer programmes, and neighbouring rights, including artistic designs, and industrial property which includes utility models, patents including patents for bio-technological inventions and plant varieties or other effective sui generis systems, industrial designs, geographical indications including appellations of origin, trademarks for goods or services, topographies of integrated circuits as well as the legal protection of data bases and the protection against unfair competition as referred to in Article 10a of the Paris Convention for the Protection of Industrial Property and protection of undisclosed confidential information on know how.

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6.  The Parties further agree to strengthen their cooperation in this field. Upon request, on mutually agreed terms and conditions, and through national and regional development strategies as defined in Title I and in conformity with Article 35, cooperation shall, inter alia, extend to the following areas: the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by rightholders and the infringement of such rights by competitors, the establishment and reinforcement of domestic and regional offices and other agencies including support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

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Article 47

Standardisation and Certification

1.  The Parties agree to cooperate more closely in the field of standardisation, certification and quality assurance to remove unnecessary technical barriers and to reduce differences between them in those areas, so as to facilitate trade.

In this context, they reaffirm their commitment under the Agreement on Technical Barriers to trade, annexed to the WTO Agreement (TBT Agreement).

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2.  Cooperation in standardisation and certification, through national and regional development strategies as defined in Title I and in conformity with Article 35, shall aim at promoting compatible systems between the Parties and in particular include:

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 measures, in accordance with the TBT Agreement, to promote greater use of international technical regulations, standards and conformity assessment procedures, including sector specific measures, in accordance with the level of economic development of ACP countries,

 cooperation in the area of quality management and assurance in selected sectors of importance to the ACP States,

 support for capacity building initiatives in the ACP countries in the fields of conformity assessment, metrology and standardisation,

 developing functioning links between ACP and European standardisation, conformity assessment and certification institutions.

3.  The Parties undertake to consider, in due course, negotiating mutual recognition agreements in sectors of mutual economic interest.

Article 48

Sanitary and Phytosanitary Measures

1.  The Parties recognise the right of each Party to adopt or to enforce sanitary and phytosanitary measures necessary to protect human, animal or plant life or health, subject to the requirement that these measures do not constitute a means of arbitrary discrimination or a disguised restriction to trade, generally. To this end, they reaffirm their commitments under the Agreement on the Application of Sanitary and Phytosanitary Measures, annexed to the WTO Agreement (SPS-Agreement), taking account of their respective level of development.

2.  They further undertake to reinforce coordination, consultation and information as regards notification and application of proposed sanitary and phytosanitary measures, in accordance with the SPS-Agreement whenever these measures might affect the interests of either Party. They also agree on prior consultation and coordination within the Codex Alimentarius, the International Office of Epizootics and the International Plant Protection Convention, with a view to furthering their common interests.

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3.  The Parties agree to strengthen their cooperation, through national and regional development strategies as defined in Title I and in conformity with Article 35, with a view to reinforcing the capacity of the public and the private sector of the ACP countries in this field.

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Article 49

Trade and Environment

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1.  The Parties reaffirm their commitment to promoting the development of international trade in such a way as to ensure sustainable and sound management of the environment, in accordance with the international conventions and undertakings in this area and with due regard to their respective level of development. They agree that the special needs and requirements of ACP States should be taken into account in the design and implementation of environmental measures, including in relation to the provisions of Article 32a.

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2.  Bearing in mind the Rio Principles and with a view to reinforcing the mutual supportiveness of trade and environment, the Parties agree to enhance their cooperation in this field. Cooperation shall in particular aim at the establishment of coherent national, regional and international policies, reinforcement of quality controls of goods and services related to the environment, the improvement of environment-friendly production methods in relevant sectors.

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3.  The Parties agree that environmental measures should not be used for protectionist purposes.

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Article 50

Trade and Labour Standards

1.  The Parties reaffirm their commitment to the internationally recognised core labour standards, as defined by the relevant International Labour Organisation (ILO) Conventions, and in particular the freedom of association and the right to collective bargaining, the abolition of forced labour, the elimination of worst forms of child labour and non-discrimination in respect to employment.

2.  They agree to enhance cooperation in this area, in particular in the following fields:

 exchange of information on the respective legislation and work regulation;

 the formulation of national labour legislation and strengthening of existing legislation;

 educational and awareness-raising programmes;

 enforcement of adherence to national legislation and work regulation.

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3.  The Parties agree that labour standards should not be used for protectionist purposes.

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Article 51

Consumer Policy and Protection of Consumer Health

1.  The Parties agree to step up their cooperation in the area of consumer policy and consumer health protection, having due regard to domestic legislation to avoid barriers to trade.

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2.  Cooperation shall, in particular, aim, through national and regional development strategies as defined in Title I and in conformity with Article 35, at improving the institutional and technical capacity in this area, establishing rapid-alert systems of mutual information on dangerous products, exchanging information and experiences on the establishment and operation of post market surveillance of products and product safety, improving information provided to consumers on prices, characteristics of products and services offered, encouraging the development of independent consumer associations and contacts between consumer interest representatives, improving compatibility of consumer policies and systems, notifying enforcement of the legislation and promoting cooperation in investigating harmful or unfair business practices and implementing exports prohibitions in the trade between the Parties of goods and services the marketing of which has been prohibited in their country of production.

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Article 52

Tax Carve-out Clause

1.  Without prejudice to the provisions of Article 31 of Annex IV, the Most Favoured Nation treatment granted in accordance with the provisions of this Agreement, or any arrangement adopted under this Agreement, does not apply to tax advantages which the Parties are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

2.  Nothing in this Agreement, or in any arrangements adopted under this Agreement, may be construed to prevent the adoption or enforcement of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

3.  Nothing in this Agreement, or in any arrangements adopted under this Agreement, shall be construed to prevent the Parties from distinguishing, in the application of the relevant provisions of their fiscal legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested.



CHAPTER 6

Cooperation in other areas

Article 53

Fishery Agreements

1.  The Parties declare their willingness to negotiate fishery agreements aimed at guaranteeing sustainable and mutually satisfactory conditions for fishing activities in ACP States.

2.  In the conclusion or implementation of such agreements, the ACP States shall not discriminate against the Community or among the Member States, without prejudice to special arrangements between developing States within the same geographical area, including reciprocal fishing arrangements, nor shall the Community discriminate against ACP States.

Article 54

Food security

1.  With regard to available agricultural products, the Community undertakes to ensure that export refunds can be fixed further in advance for all ACP States in respect of a range of products drawn up in the light of the food requirements expressed by those States.

2.  Advance fixing shall be for one year and shall be applied each year throughout the life of this Agreement, it being understood that the level of the refund will be determined in accordance with the methods normally followed by the Commission.

3.  Specific agreements may be concluded with those ACP States which so request in the context of their food security policies.

4.  The specific agreements referred to in paragraph 3 shall not place in jeopardy production and trade flows in ACP regions.



PART 4

DEVELOPMENT FINANCE COOPERATION



TITLE I

GENERAL PROVISIONS



CHAPTER 1

Objectives, principles, guidelines and eligibility

Article 55

Objectives

The objectives of development finance cooperation shall be, through the provision of adequate financial resources and appropriate technical assistance, to support and promote the efforts of ACP States to achieve the objectives set out in this Agreement on the basis of mutual interest and in a spirit of interdependence.

Article 56

Principles

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1.  Development finance cooperation shall be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the ACP States, at national, regional and intra-ACP levels. Their respective geographical, social and cultural characteristics, as well as their specific potential, shall be taken into account. Guided by the internationally agreed aid effectiveness agenda, cooperation shall be based on ownership, alignment, donor coordination and harmonisation, managing for development results and mutual accountability. In particular, cooperation shall:

(a) promote local ownership at all levels of the development process;

(b) reflect a partnership based on mutual rights and obligations;

(c) emphasise the importance of predictability and security in resource flows, granted on highly concessional terms and on a continuous basis;

(d) be flexible and appropriate to the situation in each ACP State as well as adapted to the specific nature of the project or programme concerned; and

(e) ensure efficiency, coordination and consistency.

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2.  Cooperation shall ensure special treatment for LDC ACP countries and duly take into account the vulnerability of landlocked and island ACP countries. In addition, the specific needs of post-conflict countries shall also be addressed.

Article 57

Guidelines

1.  Operations financed within the framework of this Agreement shall be implemented by the ACP States and the Community in close cooperation, the concept of equality between the partners being recognised.

2.  The ACP States shall be responsible for:

(a) defining the objectives and priorities on which the indicative programmes are based;

(b) choosing projects and programmes;

(c) preparing and presenting the dossiers of projects and programmes;

(d) preparing, negotiating and concluding contracts;

(e) implementing and managing projects and programmes; and

(f) maintaining projects and programmes.

3.  Without prejudice to the provisions above, eligible non-State actors may also be responsible for proposing and implementing programmes and projects in areas concerning them.

4.  The ACP States and the Community shall be jointly responsible for:

(a) establishing, within the joint institutions, the guidelines for development finance cooperation;

(b) adopting the indicative programmes;

(c) appraising projects and programmes;

(d) ensuring equality of conditions for participation in invitations to tender and contracts;

(e) monitoring and evaluating the effects and results of projects and programmes; and

(f) ensuring the proper, prompt and efficient execution of projects and programmes.

5.  The Community shall be responsible for taking financing decisions on projects and programmes.

6.  Unless otherwise provided for in this Agreement, all decisions requiring the approval of either Party shall be approved, or be deemed approved, within 60 days of notification by the other Party.

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Article 58

Eligibility for financing

1.  The following entities or bodies shall be eligible for financial support provided under this Agreement:

(a) ACP States;

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(b) regional or inter-State bodies to which one or more ACP States belong, including the African Union or other bodies with non-ACP State members, which are authorised by those ACP States; and

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(c) joint bodies set up by the ACP States and the Community to pursue certain specific objectives.

2.  Subject to the agreement of the ACP State or States concerned, the following shall also be eligible for financial support:

(a) national and/or regional public or semi-public agencies and departments of ACP States, including Parliaments, and, in particular, their financial institutions and development banks;

(b) companies, firms and other private organisations and private operators of ACP States;

(c) enterprises of a Community Member State to enable them, in addition to their own contribution, to undertake productive projects in the territory of an ACP State;

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(d) ACP or Community financial intermediaries providing, promoting and financing private or public investments in ACP States;

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(e) local decentralised authorities from ACP States and the Community; and

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(f) developing countries that are not part of the ACP Group where they participate in a joint initiative or regional organisation with ACP States in conformity with Article 6 of Annex IV to this Agreement.

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3.  Non-State actors from ACP States and the Community which have a local character shall be eligible for financial support provided under this Agreement, according to the modalities agreed in the national and regional indicative programmes.

▼B



CHAPTER 2

Scope and nature of financing

Article 59

Within the framework of the priorities established by the ACP State or States concerned at both national and regional levels, support may be given to projects, programmes and other forms of operations contributing to the objectives set out in this Agreement.

Article 60

Scope of financing

The scope of financing may include, inter alia, depending on the needs and the types of operation considered most appropriate, support to:

(a) measures which contribute to attenuate the debt burden and balance of payments problems of the ACP countries;

(b) macroeconomic and structural reforms and policies;

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(c) mitigation of adverse short-term effects of exogenous shocks, including instability in export earnings on socio-economic reforms and policies;

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(d) sectoral policies and reforms;

(e) institutional development and capacity building;

(f) technical cooperation programmes; and

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(g) humanitarian and emergency assistance including assistance to refugees and displaced persons, interventions linking short-term relief and rehabilitation with long-term development in crisis or post-crisis situations, and disaster preparedness.

▼B

Article 61

Nature of financing

1.  The nature of financing shall, inter alia, include:

(a) projects and programmes;

(b) credit lines, guarantee schemes and equity participation;

(c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments;

(d) the human and material resources necessary for effective administration and supervision of projects and programmes;

(e) sectoral and general import support programmes which may take the form of:

(i) sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services;

(ii) sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and

(iii) general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products.

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2.  Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where:

(a) well-defined poverty-focused national or sector development strategies are in place or under implementation;

(b) well-defined stability-oriented macroeconomic policy established by the country itself and positively assessed by its main donors, including where relevant the international financial institutions, is in place or under implementation; and

(c) public financial management is sufficiently transparent, accountable and effective.

2.  The Community shall align on the systems and procedures specific to each ACP country, monitor its budget support with the partner country and support efforts of partner countries to strengthen domestic accountability, parliamentary oversight, audit capacities and public access to information.

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3.  Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects.

4.  The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs.

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5.  In the framework of the Agreement, the funds earmarked under the multi-annual financial framework of cooperation under this Agreement, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate other resources drawn from the European Community's budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement.

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6.  The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing.



TITLE II

FINANCIAL COOPERATION



CHAPTER 1

Financial resources

Article 62

Overall amount

1.  For the purposes set out in this Agreement, the overall amount of the Community's financial assistance and the detailed terms and conditions of financing are provided for in the Annexes to this Agreement.

2.  Should an ACP State fail to ratify this Agreement or denounce it, the Parties shall adjust the amounts of the resources provided for in the Financial Protocol set out in Annex I. Adjustment of the financial resources shall also apply upon:

(a) the accession to the Agreement of new ACP States which did not take part in its negotiation; and

(b) the enlargement of the Community.

Article 63

Methods of financing

The methods of financing for each project or programme shall be determined jointly by the ACP State or States concerned and the Community by reference to:

(a) the level of development, the geographical situation and economic and financial circumstances of these States;

(b) the nature of the project or programme, its economic and financial return as well as its social and cultural impact; and

(c) in the case of loans, factors guaranteeing their servicing.

Article 64

On-lending operations

1.  Financial assistance may be made available to or through the ACP States concerned or, subject to the provisions of this Agreement through eligible financial institutions or directly to any other eligible beneficiary. Where financial assistance is granted to the final recipient through an intermediary or directly to the final beneficiary in the private sector:

(a) the terms and conditions on which the assistance may be made available by the intermediary to the final recipient or directly to the final beneficiary in the private sector shall be laid down in the financing agreement or loan contract; and

(b) any financial benefit accruing to the intermediary from the on-lending transaction or resulting from direct lending operations to the final beneficiary in the private sector, shall be used for development purposes on the conditions laid down in the financing agreement or the loan contract, after taking into account administrative costs, exchange and financial risks and the cost of technical assistance given to the final recipient.

2.  Where the financing is undertaken through an on-lending body based and/or operating in the ACP States, it shall be the responsibility of that body to select and appraise individual projects and to administer the funds placed at its disposal under the conditions provided for in this Agreement and by mutual agreement between the Parties.

Article 65

Co-financing

1.  The financial resources provided for in this Agreement may be applied, at the request of the ACP States, to co-financing undertaken in particular with development agencies and institutions, Community Member States, ACP States, third countries or international or private financial institutions, firms or export credit agencies.

2.  Special consideration shall be given to the possibility of co-financing in cases where Community participation will encourage the participation of other sources of finance and where such financing may lead to an advantageous financial package for the ACP State concerned.

3.  Co-financing may be in the form of joint or parallel financing. Preference shall be given in each case to the solution, which is more suitable from the point of view of cost-effectiveness. In addition, measures shall be taken to coordinate and harmonise operations of the Community and those of other co-financing bodies in order to minimise the number of procedures to be undertaken by the ACP States and to render those procedures more flexible.

4.  The process of consultation and coordination with other donors and co-financiers should be strengthened and developed, where possible, through the establishment of co-financing framework agreements and co-financing policies and procedures should be reviewed to ensure effectiveness and the best terms and conditions possible.



CHAPTER 2

Debt and structural adjustment support

Article 66

Support for debt relief

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1.  In order to attenuate the debt burden of the ACP States and their balance-of-payment problems, the Parties agree to use the resources provided for under the multi-annual financial framework of cooperation under this Agreement to contribute to debt relief initiatives approved at international level for the benefit of ACP countries. The Community furthermore commits itself to examine how in the longer term other Community resources can be mobilised in support of internationally agreed debt relief initiatives.

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2.  At the request of an ACP State, the Community may grant:

(a) assistance in studying and finding practical solutions to indebtedness including domestic debt, debt-servicing difficulties and balance of payments problems;

(b) training in debt management and international financial negotiations as well as support for training workshops, courses and seminars in these fields; and

(c) assistance to develop flexible techniques and instruments of debt management.

3.  In order to contribute to the servicing of the debt resulting from loans from the Bank's own resources, special loans and risk capital, the ACP States may, in accordance with arrangements to be made on a case-by-case basis with the Commission, use the available foreign currency referred to in this Agreement for such servicing, as and when debt repayment falls due and up to the amount required for payments in national currency.

4.  Given the seriousness of the international debt problem and its impact on economic growth, the Parties declare their readiness to continue to exchange views, within the context of international discussions, on the general problem of debt, and without prejudice to specific discussions taking place in the relevant fora.

Article 67

Structural adjustment support

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1.  The multi-annual financial framework of cooperation under this Agreement shall provide support for macroeconomic and sectoral reforms implemented by the ACP States. In this framework, the Parties shall ensure that adjustment is economically viable and socially and politically bearable. Support shall be given in the context of a joint assessment between the Community and the ACP State concerned on the reform measures being undertaken or contemplated either at macroeconomic or sectoral level, and permit an overall evaluation of the reform efforts. To the extent possible the joint assessment shall be aligned on country specific arrangements and the support monitored on the basis of results achieved. Quick disbursement shall be an important feature of support programmes.

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2.  The ACP States and the Community recognise the necessity to encourage reform programmes at regional level ensuring that, in the preparation and execution of national programmes, due consideration is given to regional activities which have an influence on national development. To this end, support for structural adjustment shall also seek to:

(a) incorporate, from the beginning of the diagnosis, measures to encourage regional integration and take account of the consequences of trans-border adjustment;

(b) support the harmonisation and coordination of macroeconomic and sectoral policies, including fiscal and customs areas, so as to fulfil the dual aim of regional integration and of structural reform at national level; and

(c) take account of the effects of net transitional costs of regional integration on budget revenue and balance of payments, either through general import programmes or budgetary support.

3.  ACP States undertaking or contemplating reform at the macroeconomic or sectoral level shall be eligible for structural adjustment assistance, giving consideration to the regional context, their effectiveness and the likely impact on the economic, social and political dimension of development and on economic and social hardships being experienced.

4.  The ACP States undertaking reform programmes that are acknowledged and supported at least by the principal multilateral donors, or that are agreed with such donors but not necessarily financially supported by them, shall be treated as having automatically satisfied the requirements for adjustment assistance.

5.  Structural adjustment support shall be mobilised in a flexible manner and in the form of sectoral and general import programmes or budgetary support.

6.  The preparation, appraisal and financing decision for structural adjustment programmes shall be carried out according to the provisions on implementation procedures of this Agreement with due regard to the quick disbursing feature of structural adjustment programmes. On a case-by-case basis, retroactive financing of a limited part of imports of ACP-EC origin may be permissible.

7.  The implementation of each support programme shall ensure that the eligibility of ACP economic operators for access to the resources of the programme is as wide and transparent as possible and that the procurement procedures accord with the administrative and commercial practices in the State concerned, while ensuring the best possible price/quality ratio on imported goods and the necessary consistency with the progress achieved internationally for harmonising the procedures for supporting structural adjustment.



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CHAPTER 3

Support in case of exogenous shocks

Article 68

1.  The Parties recognise that macroeconomic instability resulting from exogenous shocks may adversely affect the development of the ACP States and jeopardise the attainment of their development requirements. A system of additional support in order to mitigate the short-term adverse effects resulting from exogenous shocks, including the effects on export earnings, is therefore set up within the multi-annual financial framework of cooperation under this Agreement.

2.  The purpose of this support is to safeguard socio-economic reforms and policies that could be affected negatively as a result of a drop in revenue and to remedy the short-term adverse effects of such shocks.

3.  The extreme dependence of the ACP States' economies on exports, in particular from the agricultural and mining sectors, shall be taken into account in the allocation of resources. In this context, the least developed, landlocked and island, post-conflict and post-natural disaster ACP States shall receive more favourable treatment.

4.  The additional resources shall be provided in accordance with the specific modalities of the support mechanism as set out in Annex II on Terms and Conditions of Financing.

5.  The Community shall also provide support for market-based insurance schemes designed for ACP States seeking to protect themselves against short-term effects of exogenous shocks.

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CHAPTER 4

Support for sectoral policies

Article 69

1.  Cooperation shall support, through the various instruments and modalities provided for in the Agreement:

(a) social and economic sectoral policies and reforms;

(b) measures to enhance productive sector activity and export competitiveness;

(c) measures to expand social sector services; and

(d) thematic and cross cutting issues.

2.  This support shall be provided as appropriate through:

(a) sectoral programmes;

(b) budgetary support;

(c) investments;

(d) rehabilitation;

(e) training;

(f) technical assistance; and

(g) institutional support.



CHAPTER 5

Microprojects and decentralised cooperation

Article 70

In order to respond to the needs of local communities with regard to development, and to encourage all agents of decentralised cooperation which are in a position to contribute to the autonomous development of the ACP States to put forward and implement initiatives, cooperation shall support, within the framework laid down in the rules and national legislation of the ACP States concerned and the provisions of the indicative programme, such development operations. In this context, cooperation shall support:

(a) micro-projects at local level which have an economic and social impact on the life of the people, meet a demonstrated and observed priority need, and shall be undertaken at the initiative and with the active participation of the local community which shall benefit therefrom; and

(b) decentralised cooperation, in particular where such operations combine efforts and resources of decentralised agents from the ACP States and their counterparts from the Community. This form of cooperation shall enable the mobilisation of capabilities, innovative operating methods and resources of decentralised agents for the development of the ACP State.

Article 71

1.  Microprojects and decentralised cooperation operations may be supported from the financial resources of the Agreement. Projects or programmes under this form of cooperation may or may not be linked to programmes in the sectors of concentration of the indicative programmes, but may be a way of achieving the specific objectives of the indicative programme or the results of initiatives by local communities or decentralised agents.

2.  Contributions for the financing of micro-projects and decentralised cooperation shall be made by the Fund, in which case the contribution shall not normally exceed three-quarters of the total cost of each project and may not exceed the limit set in the indicative programme. The remaining balance shall be provided:

(a) by the local community concerned in case of micro-projects (either in kind or in the form of services or cash and adapted to its capacity to contribute);

(b) by the agents of decentralised cooperation, provided that the financial, technical, material and other resources brought in by such agents shall not normally be less than 25 % of the estimated cost of the project/programme; and

(c) exceptionally by the ACP State concerned, either in the form of a financial contribution or through the use of public equipment or the supply of services.

3.  The procedures applicable to projects and programmes financed within the framework of microprojects or decentralised cooperation shall be those laid down in the Agreement, in particular those referred to in multi-annual programmes.



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CHAPTER 6

Humanitarian, emergency and post-emergency assistance

Article 72

General principle

1.  Humanitarian, emergency and post-emergency assistance shall be provided in situations of crisis. Humanitarian and emergency assistance shall aim to save and preserve life and to prevent and relieve human suffering wherever the needs arise. Post-emergency assistance shall aim at rehabilitation and linking the short-term relief with longer term development programmes.

2.  Situations of crisis, including long-term structural instability or fragility are situations posing a threat to law and order or to the security and safety of individuals, threatening to escalate into armed conflict or to destabilise the country. Situations of crisis may also result from natural disasters, man-made crises such as wars and other conflicts or extraordinary circumstances having comparable effects related, inter alia, to climate change, environmental degradation, access to energy and natural resources, or extreme poverty.

3.  The humanitarian, emergency and post-emergency assistance shall be maintained for as long as necessary to deal with the needs resulting from these situations for the victims, thereby linking relief, rehabilitation and development.

4.  The humanitarian assistance shall be granted exclusively according to the needs and interests of the victims of the crisis situation and in line with the principles of international humanitarian law and with respect to humanity, neutrality, impartiality and independence. In particular, there shall be no discrimination between victims on grounds of race, ethnic origin, religion, gender, age, nationality or political affiliation and free access to and protection of victims shall be guaranteed as well as the security of humanitarian personnel and equipment.

5.  The humanitarian, emergency and post-emergency assistance shall be financed under the multi-annual financial framework of cooperation under this Agreement, where such assistance cannot be financed from the Union's Budget. Humanitarian, emergency and post-emergency assistance shall be implemented in complementarity and coordination with the Member States’ efforts and in accordance with best practice in aid effectiveness.

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Article 72a

Objective

1.  Humanitarian and emergency assistance shall aim to:

(a) safeguard human lives in crises and immediate post-crisis situations;

(b) contribute to the financing and delivery of humanitarian aid and to the direct access to it of its intended beneficiaries by all logistical means available;

(c) carry out short-term rehabilitation and reconstruction to enable the victims to benefit from a minimum of socio-economic integration and, as soon as possible, create the conditions for a resumption of development on the basis of long-term objectives set by the ACP countries and regions concerned;

(d) address the needs arising from the displacement of people (refugees, displaced persons and returnees) following natural or man-made disasters so as to meet, for as long as necessary, all the needs of refugees and displaced persons (wherever they may be) and facilitate action for their voluntary repatriation and re-integration in their country of origin; and

(e) assist the ACP State or region in setting up short term disaster prevention and preparedness mechanisms, including for prediction and early warning, with a view to reducing the consequences of disasters.

2.  Assistance may be granted to ACP States or regions taking in refugees or returnees to meet acute needs not covered by emergency assistance.

3.  Post-emergency action shall aim at physical and social rehabilitation consequent to the results of the crisis concerned and may be undertaken to link the short-term relief and rehabilitation with the relevant longer term development programmes funded from the national, regional indicative programmes or the intra-ACP programme. Such actions must be necessary for the transition from the emergency phase to the development phase, promoting the socio-economic reintegration of the parts of the population affected, removing as far as possible the causes of the crisis and strengthening institutions and the ownership by local and national actors of their role in formulating a sustainable development policy for the ACP country concerned.

4.  Where appropriate, short-term disaster prevention and preparedness mechanisms as referred to in paragraph 1(e) will be coordinated with other disaster prevention and preparedness mechanisms in place.

4.  The development and strengthening of national, regional and all-ACP disaster risk reduction and management mechanisms shall assist ACP States to build their resilience to the impact of disasters. All related activities may be pursued in cooperation with regional and international organisations and programmes that have a proven track record in disaster risk reduction.

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Article 73

Implementation

1.  Assistance operations shall be undertaken either at the request of the ACP country or region affected by the crisis situation, or at the initiative of the Commission, or on the advice of international organisations or local or international non-State organisations.

2.  The Community shall take adequate steps to facilitate speedy action, which is required to meet the immediate needs for which the assistance is needed. The assistance shall be administered and implemented under procedures permitting operations that are rapid, flexible and effective.

3.  Underlining the developmental nature of the assistance granted in accordance with this Chapter, assistance may be used exceptionally together with the indicative programme at the request of the State or region concerned.

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CHAPTER 7

Investment and private sector development support

Article 74

Cooperation shall, through financial and technical assistance, support the policies and strategies for investment and private sector development as set out in this Agreement.

Article 75

Investment promotion

The ACP States, the Community and its Member States, within the scope of their respective competencies, recognising the importance of private investment in the promotion of their development cooperation and acknowledging the need to take steps to promote such investment, shall:

(a) implement measures to encourage participation in their development efforts by private investors who comply with the objectives and priorities of ACP-EC development cooperation and with the appropriate laws and regulations of their respective States;

(b) take measures and actions which help to create and maintain a predictable and secure investment climate as well as enter into negotiations on agreements which will improve such climate;

(c) encourage the EU private sector to invest and to provide specific assistance to its counterparts in the ACP countries under mutual business cooperation and partnerships;

(d) facilitate partnerships and joint ventures by encouraging co-financing;

(e) sponsor sectoral investment fora to promote partnerships and external investment;

(f) support efforts of the ACP States to attract financing, with particular emphasis on private financing, for infrastructure investments and revenue generating infrastructure critical for the private sector;

(g) support capacity building for domestic investment promotion agencies and institutions involved in promoting and facilitating foreign investment;

(h) disseminate information on investment opportunities and business operating conditions in the ACP States; and

(i) promote national, regional and ACP-EU private sector business dialogue, cooperation and partnerships, in particular through an ACP-EU private sector business forum. Support for operations of an ACP-EU private sector business forum shall be provided in pursuit of the following objectives:

(i) to facilitate dialogue within the ACP/EU private sector and between the ACP/EU private sector and the bodies established under the Agreement;

(ii) to analyse and periodically provide the relevant bodies with information on the whole range of issues concerning relations between the ACP and EU private sectors in the context of the Agreement or, more generally, of economic relations between the Community and the ACP countries; and

(iii) to analyse and provide the relevant bodies with information on specific problems of a sectoral nature relating to, inter alia, branches of production or types of products at regional or sub-regional level.

Article 76

Investment finance and support

1.  Cooperation shall provide long-term financial resources, including risk capital, to assist in promoting growth in the private sector and help to mobilise domestic and foreign capital for this purpose. To this end, cooperation shall provide, in particular:

(a) grants for financial and technical assistance to support policy reforms, human resource development, institutional capacity-building or other forms of institutional support related to a specific investment, measures to increase the competitiveness of enterprises and to strengthen the capacities of the private financial and non-financial intermediaries, investment facilitation and promotion and competitiveness enhancement activities;

(b) advisory and consultative services to assist in creating a responsive investment climate and information base to guide and encourage the flow of capital;

(c) risk-capital for equity or quasi-equity investments, guarantees in support of domestic and foreign private investment and loans or lines of credit on the conditions laid down in Annex II ‘Terms and Conditions of Financing’ to this Agreement; and

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(d) loans from the Bank's own resources and the Investment Facility, the terms and conditions of which are set out in Annex II to this Agreement. Such loans may also be used to finance public investment in basic infrastructure.

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2.  Loans from the Bank's own resources shall be granted in accordance with its statute and with the terms and conditions laid down in Annex II to this Agreement.

Article 77

Investment guarantees

1.  Investment guarantees are an increasingly important tool for development finance as they contribute to reducing project risks and inducing private capital flows. Cooperation shall therefore ensure the increasing availability and use of risk insurance as a risk-mitigating mechanism in order to boost investor confidence in the ACP States.

2.  Cooperation shall offer guarantees and assist with guarantees funds covering risks for qualified investment. Specifically, cooperation shall provide support to:

(a) reinsurance schemes to cover foreign direct investment by eligible investors; against legal uncertainties and the major risks of expropriation, currency transfer restriction, war and civil disturbance, and breach of contract. Investors may insure projects for any combination of the four types of coverage;

(b) guarantee programmes to cover risk in the form of partial guarantees for debt financing. Both partial risk and partial credit guarantee shall be available; and

(c) national and regional guarantee funds, involving, in particular, domestic financial institutions or investors for encouraging the development of the financial sector.

3.  Cooperation shall also provide support to capacity-building, institutional support and participation in the core funding of national and/or regional initiatives to reduce the commercial risks for investors (inter alia guarantee funds, regulatory bodies, arbitration mechanisms and judiciary systems to enhance the protection of investments improving the export credit systems).

4.  Cooperation shall provide such support on the basis of complementary and added value with respect to private and/or public initiatives and, whenever feasible, in partnership with private and other public organisations. The ACP and the EC will within the framework of the ACP-EC Development Finance Cooperation Committee undertake a joint study on the proposal to set up an ACP-EC Guarantee Agency to provide and manage investment guarantee programmes.

Article 78

Investment protection

1.  The ACP States and the Community and its Member States, within the scope of their respective competencies, affirm the need to promote and protect either Party's investments on their respective territories, and in this context affirm the importance of concluding, in their mutual interest, investment promotion and protection agreements which could also provide the basis for insurance and guarantee schemes.

2.  In order to encourage European investment in development projects of special importance to, and promoted by the ACP States, the Community and the Member States, on the one hand and the ACP States on the other, may also conclude agreements relating to specific projects of mutual interest where the Community and European enterprises contribute towards their financing.

3.  The Parties also agree to introduce, within the economic partnership agreements, and while respecting the respective competencies of the Community and its Member States, general principles on protection and promotion of investments, which will endorse the best results agreed in the competent international fora or bilaterally.



TITLE III

TECHNICAL COOPERATION

Article 79

1.  Technical cooperation shall assist the ACP States in the development of national and regional manpower resources, the sustained development of the institutions critical for development success, including inter alia strengthening ACP consulting firms and organisations, as well as exchange arrangements involving consultants from both ACP and EU firms.

2.  Furthermore, technical cooperation, shall be cost-effective and relevant to the need for which it is intended, and shall also favour the transfer of know-how and increase national and regional capabilities. Technical cooperation shall contribute to the achievement of project and programme goals, including efforts to strengthen management capacity of the National and Regional Authorising Officers. Technical assistance shall:

(a) be demand-driven and thus made available only at the request of the ACP State or States concerned, and adapted to recipient needs;

(b) complement and support ACP efforts to identify their own requirements;

(c) be monitored and followed up to guarantee effectiveness;

(d) encourage the participation of ACP experts, consultancy firms and educational and research institutions in contracts financed from the Fund and identify ways of employing qualified national and regional personnel on Fund projects;

(e) encourage the secondment of ACP national cadres as consultants to an institution in their own country, or a neighbouring country, or to a regional organisation;

(f) aim at developing knowledge of national and regional manpower constraints and potential and establish a register of ACP experts, consultants and consultancy firms suitable for employment on projects and programmes financed from the Fund;

(g) support intra-ACP technical assistance in order to promote the exchange between the ACP States of technical assistance, management and professional expertise;

(h) develop action programmes for long-term institution building and staff development as an integral part of project and programme planning, account being taken of the necessary financial requirements;

(i) support arrangements to enhance the capacity of the ACP States to build up their own expertise; and

(j) give special attention to the development of the ACP States' capacities in project planning, implementation and evaluation, as well budget management.

3.  Technical assistance may be provided in all areas of cooperation and within the limits of the mandate of this Agreement. The activities covered would be diverse in scope and nature, and would be tailored to meet the needs of the ACP States.

4.  Technical cooperation may be either of a specific or a general nature. The ACP-EC Development Finance Cooperation Committee shall establish the guidelines for the implementation of technical cooperation.

Article 80

With a view to reversing the brain drain from the ACP States, the Community shall assist ACP States which so request to facilitate the return of qualified ACP nationals resident in developed countries through appropriate re-installation incentives.



TITLE IV

PROCEDURES AND MANAGEMENT SYSTEMS

Article 81

Procedures

Management procedures shall be transparent, easy to apply and shall enable the decentralisation of tasks and responsibilities to the field. The implementation of ACP-EU development cooperation shall be open to non-State actors in areas that concern them. The detailed procedural provisions for programming, preparation, implementation and the management of financial and technical cooperation are laid down in Annex IV on Implementation and Management Procedures. The Council of Ministers may review, revise and amend these provisions on the basis of a recommendation from the ACP-EC Development Finance Cooperation Committee.

Article 82

Executing agents

For the implementation of financial and technical cooperation under this Agreement, executing agents are designated. Detailed provisions for the responsibilities of the executing agents are laid down in Annex IV on Implementation and Management Procedures.

Article 83

ACP-EC Development Finance Cooperation Committee

1.  The Council of Ministers shall at least once a year examine whether the objectives of development finance cooperation are being attained and shall examine the general and specific problems resulting from the implementation of that cooperation. To this end, an ACP-EC Development Finance Cooperation Committee, hereinafter referred to as ‘the ACP-EC Committee’, shall be set up within the Council of Ministers.

2.  The ACP-EC Committee shall, inter alia:

(a) ensure the overall achievement of the objectives and principles of development finance cooperation and establish general guidelines for their effective and timely implementation;

(b) examine the problems arising from the implementation of development cooperation activities and propose appropriate measures;

(c) review the annexes to the Agreement to ensure their continued relevance and recommend any appropriate amendments to the Council of Ministers for approval; and

(d) examine the operations deployed within the framework of the Agreement to attain the objectives of promoting private sector development and investment and the operations of the Investment Facility.

3.  The ACP-EC Committee, which shall meet every quarter, shall be composed, on a basis of parity, of representatives of the ACP States and of the Community, or their authorised representatives. It shall meet at ministerial level whenever one of the parties so requests and at least once a year.

4.  The Council of Ministers shall lay down the ACP-EC Committee's rules of procedure, in particular the conditions for representation and the number of members of the Committee, the detailed arrangements for their deliberations and the conditions for holding the chair.

5.  The ACP-EC Committee may convene meetings of experts to study the cause of any difficulties and bottlenecks, which may impede the efficient implementation of development cooperation. These experts shall make recommendations to the Committee on possible ways of removing such difficulties and bottlenecks.



PART 5

GENERAL PROVISIONS FOR THE LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP STATES (LDLICS)



CHAPTER 1

General provisions

Article 84

1.  To enable LDLICs to take full advantage of the opportunities offered by the Agreement so as to step up their respective rates of development, cooperation shall ensure special treatment for the least developed ACP countries and take due account of the vulnerability of landlocked and island ACP countries. It shall also take into consideration the needs of countries in post-conflict situations.

2.  Independently of the specific measures and provisions for the least-developed, landlocked and island countries in the different chapters of the Agreement, special attention shall be paid in respect of these groups as well as countries in post-conflict situations to:

(a) the strengthening of regional cooperation;

(b) transport and communications' infrastructure;

(c) the efficient exploitation of marine resources and the marketing of products so produced and, in the case of landlocked countries, inland fisheries;

(d) structural adjustment where account shall be taken of the level of development of these countries and equally, at the implementation stage, of the social dimension of adjustment; and

(e) the implementation of food strategies and integrated development programmes.



CHAPTER 2

Least-developed ACP States

Article 85

1.  The least-developed ACP States shall be accorded a special treatment in order to enable them to overcome the serious economic and social difficulties hindering their development so as to step up their respective rates of development.

2.  The list of least-developed countries is given in Annex VI. It may be amended by a decision of the Council of Ministers where:

(a) a third State in a comparable situation accedes to this Agreement; and

(b) the economic situation of an ACP State changes considerably and durably to the extent that it needs to be included in the least-developed category or its inclusion in that category is no longer justified.

Article 86

The provisions adopted in respect of the least-developed ACP States are contained in the following Articles: 2, 29, 32, 35, 37, 56, 68, 84, 85.



CHAPTER 3

Landlocked ACP States

Article 87

1.  Specific provisions and measures shall be established to support landlocked ACP States in their efforts to overcome the geographical difficulties and other obstacles hampering their development so as to enable them to step up their respective rates of development.

2.  The list of landlocked ACP States is given in Annex VI. It may be amended by decision of the Council of Ministers when a third State in a comparable situation accedes to the Agreement.

Article 88

The provisions adopted in respect of the landlocked ACP States are contained in the following Articles: 2, 32, 35, 56, 68, 84, 87.



CHAPTER 4

Island ACP States

Article 89

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1.  Specific actions shall be pursued to support island ACP States in their efforts to halt and reverse their increasing vulnerability caused by new and severe economic, social and ecological challenges. These actions shall seek to advance the implementation of the small island developing States' priorities for sustainable development, while promoting a harmonised approach to their economic growth and human development.

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2.  The list of island ACP States is given in Annex VI. It may be amended by decision of the Council of Ministers when a third State in a comparable situation accedes to the Agreement.

Article 90

The provisions adopted in respect of the island ACP States are contained in the following Articles: 2, 32, 35, 56, 68, 84, 89.



PART 6

FINAL PROVISIONS

Article 91

Conflict between this Agreement and other treaties

No treaty, convention, agreement or arrangement of any kind between one or more Member States of the Community and one or more ACP States may impede the implementation of this Agreement.

Article 92

Scope of territorial application

Subject to the special provisions regarding the relations between the ACP States and the French overseas departments provided for therein, 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 territories of the ACP States.

Article 93

Ratification and entry into force

1.  This Agreement shall be ratified or approved by the signatory Parties in accordance with their respective constitutional rules and procedures.

2.  The instruments of ratification or approval of this Agreement shall be deposited in the case of the ACP States, with the General Secretariat of the Council of the European Union and in the case of the Community and the Member States, with the General Secretariat of the ACP States. The Secretariats shall promptly notify the signatory States and the Community.

3.  This Agreement shall enter into force on the first day of the second month following the date of deposit of the instruments of ratification of the Member States and of at least two-thirds of the ACP States, and of the instrument of approval of this Agreement by the Community.

4.  An ACP signatory State that has not completed the procedures set out in paragraphs 1 and 2 by the date on which this Agreement enters into force as provided for in paragraph 3 may do so only within the 12 months following that date, without prejudice to the provisions of paragraph 6.

For such States this Agreement shall become applicable on the first day of the second month following the completion of these procedures. These States shall recognise the validity of any measure taken to implement the Agreement after the date of its entry into force.

5.  The rules of procedure of the joint institutions set up under this Agreement shall lay down the conditions under which the representatives of signatory States referred to in paragraph 4 may attend those institutions as observers.

6.  The Council of Ministers may decide to accord special support to ACP States party to previous ACP-EC Conventions which, in the absence of normally established government institutions, have not been able to sign or ratify this Agreement. This support may concern institution building and economic and social development activities, taking particular account of the needs of the most vulnerable sections of the population. In this context, such countries will be able to draw on the funds provided for in Part 4 of this Agreement for financial and technical cooperation.

By way of derogation from paragraph 4, the countries concerned which are signatories to the Agreement may complete the ratification procedures within twelve months of the restoration of government institutions.

The countries concerned which have neither signed nor ratified the Agreement may accede to it by means of the accession procedure provided for in Article 94.

Article 94

Accession

1.  Any request for accession to this Agreement made by an independent State whose structural characteristics and economic and social situation are comparable to those of the ACP States shall be presented to the Council of Ministers.

If the request is approved by the Council of Ministers, the State concerned shall accede to this Agreement by depositing an act of accession with the General Secretariat of the Council of the European Union, which shall send a certified copy to the ACP Secretariat and notify the Member States. The Council of Ministers may lay down any amending measures that might be necessary.

The State concerned shall enjoy the same rights and be subject to the same obligations as the ACP States. Its accession may not infringe on the benefits enjoyed by the ACP States signatory to this Agreement under the provisions on development cooperation financing. The Council of Ministers may lay down the conditions and specific arrangements for the accession of an individual State in a special protocol that shall form an integral part of the Agreement.

2.  The Council of Ministers shall be advised of any request made by a third State to become a member of an economic grouping of ACP States.

3.  The Council of Ministers shall be advised of any request made by a third State to become a member of the European Union. During the negotiations between the Union and the applicant State, the Community shall provide the ACP States with any relevant information and they in turn shall convey their concerns to the Community so that it can take them fully into account. The ACP Secretariat shall be notified by the Community of any accession to the European Union.

Any new Member State of the European Union shall become a Party to this Agreement from the date of its accession by means of a clause to that effect in the act of accession. If the act of accession to the Union does not provide for such automatic accession of the Member State to this Agreement, the Member State concerned shall accede by depositing an act of accession with the General Secretariat of the Council of the European Union, which shall send a certified copy to the ACP Secretariat and notify the Member States.

The Parties shall review the effects of the accession of new Member States on this Agreement. The Council of Ministers may decide on any transitional or amending measures that might be necessary.

Article 95

Duration of the agreement and revision clause

1.  This Agreement is hereby concluded for a period of twenty years, commencing on 1 March 2000.

2.  Financial protocols are defined for each five-year period.

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3.  The Community and the Member States, on the one hand, and the ACP States, on the other, shall notify the other Party not later than 12 months before the expiry of each five-year period of any review of the provisions they desire to make with a view to a possible amendment of the Agreement. Notwithstanding this time limit, if one Party requests the review of any provisions of the Agreement, the other Party shall have a period of two months in which to request the extension of the review to other provisions related to those which were the subject of the initial request.

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Ten months before the expiry of this five-year period, the Parties shall enter into negotiations with a view to examining any possible amendments to the provisions that were the subject of the notification.

Article 93 shall also apply to the amendments made.

The Council of Ministers shall adopt any transitional measures that may be required in respect of the amended provisions until they come into force.

4.  Eighteen months before the end of the total period of the Agreement, the Parties shall enter into negotiations in order to examine what provisions shall subsequently govern their relations.

The Council of Ministers shall adopt any transitional measures that may be required until the new Agreement comes into force.

Article 96

Essential elements: consultation procedure and appropriate measures as regards human rights, democratic principles and the rule of law

1.  Within the meaning of this Article, the term ‘Party’ refers to the Community and the Member States of the European Union, of the one part, and each ACP State, of the other part.

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1a.  Both Parties agree to exhaust all possible options for dialogue under Article 8, except in cases of special urgency, prior to commencement of the consultations referred to in paragraph 2(a) of this Article.

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2.   ►M4  

(a) If, despite the political dialogue on the essential elements as provided for under Article 8 and paragraph 1a of this Article, a Party considers that the other Party fails to fulfil an obligation stemming from respect for human rights, democratic principles and the rule of law referred to in Article 9(2), it shall, except in cases of special urgency, supply the other Party and the Council of Ministers with the relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. To this end, it shall invite the other Party to hold consultations that focus on the measures taken or to be taken by the Party concerned to remedy the situation in accordance with Annex VII.

The consultations shall be conducted at the level and in the form considered most appropriate for finding a solution.

The consultations shall begin no later than 30 days after the invitation and shall continue for a period established by mutual agreement, depending on the nature and gravity of the violation. In no case shall the dialogue under the consultations procedure last longer than 120 days.

If the consultations do not lead to a solution acceptable to both Parties, if consultation is refused or in cases of special urgency, appropriate measures may be taken. These measures shall be revoked as soon as the reasons for taking them no longer prevail.

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(b) The term ‘cases of special urgency’ shall refer to exceptional cases of particularly serious and flagrant violation of one of the essential elements referred to in paragraph 2 of Article 9, that require an immediate reaction.

The Party resorting to the special urgency procedure shall inform the other Party and the Council of Ministers separately of the fact unless it does not have time to do so.

(c) The ‘appropriate measures’ referred to in this Article are measures taken in accordance with international law, and proportional to the violation. In the selection of these measures, priority must be given to those which least disrupt the application of this agreement. It is understood that suspension would be a measure of last resort.

If measures are taken in cases of special urgency, they shall be immediately notified to the other Party and the Council of Ministers. At the request of the Party concerned, consultations may then be called in order to examine the situation thoroughly and, if possible, find solutions. These consultations shall be conducted according to the arrangements set out in the second and third subparagraphs of paragraph (a).

Article 97

Consultation procedure and appropriate measures as regards corruption

1.  The Parties consider that when the Community is a significant partner in terms of financial support to economic and sectoral policies and programmes, serious cases of corruption should give rise to consultations between the Parties.

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2.  In such cases either Party may invite the other to enter into consultations. Such consultations shall begin no later than 30 days after the invitation and dialogue under the consultations procedure shall last no longer than 120 days.

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3.  If the consultations do not lead to a solution acceptable to both Parties or if consultation is refused, the Parties shall take the appropriate measures. In all cases, it is above all incumbent on the Party where the serious cases of corruption have occurred to take the measures necessary to remedy the situation immediately. The measures taken by either Party must be proportional to the seriousness of the situation. In the selection of these measures, priority must be given to those which least disrupt the application of this agreement. It is understood that suspension would be a measure of last resort.

4.  Within the meaning of this Article, the term ‘Party’ refers to the Community and the Member States of the European Union, of the one part, and each ACP State, of the other part.

Article 98

Dispute settlement

1.  Any dispute arising from the interpretation or application of this Agreement between one or more Member States or the Community, on the one hand, and one or more ACP States on the other, shall be submitted to the Council of Ministers.

Between meetings of the Council of Ministers, such disputes shall be submitted to the Committee of Ambassadors.

2.  

(a) If the Council of Ministers does not succeed in settling the dispute, either Party may request settlement of the dispute by arbitration. To this end, each Party shall appoint an arbitrator within thirty days of the request for arbitration. In the event of failure to do so, either Party may ask the Secretary-General of the Permanent Court of Arbitration to appoint the second arbitrator.

(b) The two arbitrators shall in turn appoint a third arbitrator within thirty days. In the event of failure to do so, either Party may ask the Secretary-General of the Permanent Court of Arbitration to appoint the third arbitrator.

(c) Unless the arbitrators decide otherwise, the procedure applied shall be that laid down in the optional arbitration regulation of the Permanent Court of Arbitration for International Organisations and States. The arbitrators' decisions shall be taken by majority vote within three months.

(d) Each Party to the dispute shall be bound to take the measures necessary to carry out the decision of the arbitrators.

(e) For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.

Article 99

Denunciation clause

This Agreement may be denounced by the Community and its Member States in respect of each ACP State and by each ACP State in respect of the Community and its Member States, upon six months' notice.

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Article 100

Status of the texts

The Protocols and Annexes attached to this Agreement shall form an integral part thereof. Annexes Ia, II, III, IV and VI may be revised, reviewed and/or amended by the Council of Ministers on the basis of a recommendation from the ACP-EC Development Finance Cooperation Committee.

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This Agreement, drawn up in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, all texts being equally authentic, shall be deposited in the archives of the General Secretariat of the Council of the European Union and the Secretariat of the ACP States, which shall both transmit a certified copy to the government of each of the Signatory States.

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Hecho en Cotonú, el veintitrés de junio del año dos mil.

Udfærdiget i Cotonou den treogtyvende juni to tusind.

Geschehen zu Cotonou am dreiundzwanzigsten Juni zweitausend.

Έγινε στην Κοτονού, στις είκοσι τρεις Ιουνίου δύο χιλιάδες.

Done at Cotonou on the twenty-third day of June in the year two thousand.

Fait à Cotonou, le vingt-trois juin deux mille.

Fatto a Cotonou, addì ventitré giugno duemila.

Gedaan te Cotonou, de drieëntwintigste juni tweeduizend.

Feito em Cotonu, em vinte e três de Junho de dois mil.

Tehty Cotonoussa kahdentenakymmenentenäkolmantena päivänä kesäkuuta vuonna kaksituhatta.

Som skedde i Cotonou den tjugotredje juni tjugohundra.

Pour Sa Majesté le Roi des Belges

Voor Zijne Majesteit de Koning der Belgen

Für Seine Majestät den König der Belgier

Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

For Hendes Majestæt Danmarks Dronning

Für den Präsidenten der Bundesrepublik Deutschland

Για τον Πρόεδρο της Ελληνικής Δημοκρατίας

Por Su Majestad el Rey de España

Pour le Président de la République française

Thar ceann Uachtarán na hÉireann

For the President of Ireland

Per il Presidente della Repubblica italiana

Pour Son Altesse Royale le Grand-Duc de Luxembourg

Voor Hare Majesteit de Koningin der Nederlanden

Für den Bundespräsidenten der Republik Österreich

Pelo Presidente da República Portuguesa

Suomen Tasavallan Presidentin puolesta

För Republiken Finlands President

På svenska regeringens vägnar

For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

Pour le Président de la République d'Angola

For Her Majesty the Queen of Antigua and Barbuda

For the Head of State of the Commonwealth of the Bahamas

For the Head of State of Barbados

For the Government of Belize

Pour le Président de la République du Bénin

For the President of the Republic of Botswana

Pour le Président du Burkina Faso

Pour le Président de la République du Burundi

Pour le Président de la République du Cameroun

Pour le Président de la République du Cap-Vert

Pour le Président de la République Centrafricaine

Pour le Président de la République Fédérale Islamique des Comores

Pour le Président de la République démocratique du Congo

Pour le Président de la République du Congo

For the Government of the Cook Islands

Pour le Président de la République de Côte d'Ivoire

Pour le Président de la République de Djibouti

For the Government of the Commonwealth of Dominica

For the President of the Dominican Republic

For the President of the State of Eritrea

For the President of the Federal Republic of Ethiopia

For the President of the Sovereign Democratic Republic of Fiji

Pour le Président de la République gabonaise

For the President and Head of State of the Republic of The Gambia

For the President of the Republic of Ghana

For Her Majesty the Queen of Grenada

Pour le Président de la République de Guinée

Pour le Président de la République de Guinée-Bissau

Pour le Président de la République de Guinée équatoriale

For the President of the Republic of Guyana

Pour le Président de la République d'Haïti

For the Head of State of Jamaica

For the President of the Republic of Kenya

For the President of the Republic of Kiribati

For His Majesty the King of the Kingdom of Lesotho

For the President of the Republic of Liberia

Pour le Président de la République de Madagascar

For the President of the Republic of Malawi

Pour le Président de la République du Mali

For the Government of the Republic of the Marshall Islands

Pour le Président de la République Islamique de Mauritanie

For the President of the Republic of Mauritius

For the Government of the Federated States of Micronesia

Pour le Président de la République du Mozambique

For the President of the Republic of Namibia

For the Government of the Republic of Nauru

Pour le Président de la République du Niger

For the President of the Federal Republic of Nigeria

For the Government of Niue

For the Government of the Republic of Palau

For Her Majesty the Queen of the Independent State of Papua New Guinea

Pour le Président de la République Rwandaise

For Her Majesty the Queen of Saint Kitts and Nevis

For Her Majesty the Queen of Saint Lucia

For Her Majesty the Queen of Saint Vincent and the Grenadines

For the Head of State of the Independent State of Samoa

Pour le Président de la République démocratique de São Tomé et Príncipe

Pour le Président de la République du Sénégal

Pour le Président de la République des Seychelles

For the President of the Republic of Sierra Leone

For Her Majesty the Queen of the Solomon Islands

For the President of the Republic of South Africa

For the President of the Republic of the Sudan

For the President of the Republic of Suriname

For His Majesty the King of the Kingdom of Swaziland

For the President of the United Republic of Tanzania

Pour le Président de la République du Tchad

Pour le Président de la République togolaise

For His Majesty King Taufa'ahau Tupou IV of Tonga

For the President of the Republic of Trinidad and Tobago

For Her Majesty the Queen of Tuvalu

For the President of the Republic of Uganda

For the Government of the Republic of Vanuatu

For the President of the Republic of Zambia

For the Government of the Republic of Zimbabwe

ANNEXES TO THE AGREEMENT

TABLE OF CONTENTS

ANNEX I: FINANCIAL PROTOCOL

ANNEX IA: MULTIANNUAL FINANCIAL FRAMEWORK OF COOPERATION UNDER THIS AGREEMENT

ANNEX IB: MULTIANNUAL FINANCIAL FRAMEWORK FOR THE PERIOD 2008 TO 2013

ANNEX II: TERMS AND CONDITIONS OF FINANCING

Chapter 1: Investment financing

Chapter 2: Special operations

Chapter 3: Financing for short-term fluctuations in export earnings

Chapter 4: Other provisions

Chapter 5: Investment protection agreements

ANNEX III: INSTITUTIONAL SUPPORT — CDE AND CTA

ANNEX IV: IMPLEMENTATION AND MANAGEMENT PROCEDURES

Chapter 1: Programming (national)

Chapter 2: Programming and preparation (regional)

Chapter 3:Appraisal and financing

Chapter 4: Implementation

Chapter 5: Monitoring and evaluation

Chapter 6: Fund-resource management and executing agents

ANNEX VI: LIST OF LDLICS

ANNEX VII: POLITICAL DIALOGUE AS REGARDS HUMAN RIGHTS, DEMOCRATIC PRINCIPLES AND THE RULE OF LAW

PROTOCOLS

PROTOCOL 1 ON THE OPERATING EXPENDITURE OF THE JOINT INSTITUTIONS

PROTOCOL 2 ON PRIVILEGES AND IMMUNITIES

Chapter 1: Persons taking part in the work of the Agreement

Chapter 2: Property, funds and assets of the Council of ACP Ministers

Chapter 3: Official communications

Chapter 4: Staff of the Secretariat of the ACP States

Chapter 5: Commission Delegations in the ACP States

Chapter 6: General provisions

PROTOCOL 3 ON SOUTH AFRICA

ANNEX I

FINANCIAL PROTOCOL

1. For the purposes set out in this Agreement and for a period of five years commencing 1 March 2000, the overall amount of the Community's financial assistance to the ACP States shall be EUR 15 200 million.

2. The Community's financial assistance shall comprise an amount up to EUR 13 500 million from the 9th European Development Fund (EDF).

3. The 9th EDF shall be allocated between the instruments of cooperation as follows:

(a) EUR 10 000 million in the form of grants shall be reserved for an envelope for support for long-term development. This envelope shall be used to finance national indicative programmes in accordance with Articles 1 to 5 of Annex IV ‘Implementation and management procedures’ to this Agreement. From the envelope for support for long-term development:

(i) EUR 90 million shall be reserved for the financing of the budget of the Centre for the Development of Enterprise (CDE);

(ii) EUR 70 million shall be reserved for the financing of the budget of the Centre for the Development of Agriculture (CTA); and

(iii) an amount not exceeding EUR 4 million shall be reserved for the purposes referred to in Article 17 of this Agreement (Joint Parliamentary Assembly).

(b) EUR 1 300 million in the form of grants shall be reserved for the financing of support for regional cooperation and integration of the ACP States in accordance with Articles 6 to 14 of Annex IV ‘Implementation and management procedures’ to this Agreement.

(c) EUR 2 200 million shall be allocated to finance the Investment Facility according to the terms and conditions set out in Annex II ‘Terms and conditions of financing’ to this Agreement without prejudice to the financing of the interest rate subsidies provided for in Articles 2 and 4 of Annex II to this Agreement funded from the resources mentioned in paragraph 3(a) of this Annex.

4. An amount of up to EUR 1 700 million shall be provided from the European Investment Bank in the form of loans made from its own resources. These resources shall be granted for the purposes set out in Annex II ‘Terms and conditions of financing’ to this Agreement in accordance with the conditions provided for by its statutes and the relevant provisions of the terms and conditions for investment financing as laid down in the aforementioned Annex. The Bank may, from the resources it manages, contribute to the financing of regional projects and programmes.

5. Any balances remaining from previous EDFs on the date of entry into force of this Financial Protocol, as well as any amounts that shall be decommitted at a later date from ongoing projects under these Funds, shall be transferred to the 9th EDF and shall be used in accordance with the conditions laid down in this Agreement. Any resources thus transferred to the 9th EDF that previously had been allocated to the indicative programme of an ACP State or region shall remain allocated to that State or region. The overall amount of this Financial Protocol, supplemented by the transferred balances from previous EDFs, will cover the period of 2000-2007.

6. The Bank shall administer the loans made from its own resources, as well as the operations financed under the Investment Facility. All other financial resources of this Agreement shall be administered by the Commission.

7. Before the expiry of this Financial Protocol, the Parties shall assess the degree of realisation of commitments and disbursements. This assessment shall constitute the basis for re-evaluating the overall amount of resources as well for evaluating the need for new resources to support financial cooperation under this Agreement.

8. In the event of the funds provided for in any of the instruments of the Agreement being exhausted before the expiry of this Financial Protocol, the joint ACP-EC Council of Ministers shall take the appropriate measures.

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9. By derogation from Article 58 of this Agreement, an amount of EUR 90 million shall be transferred to the intra ACP envelope under the 9th EDF. This amount may be allocated to finance devolution for the period 2006 to 2007, and shall be managed directly by the Commission.

ANNEX Ia

Multiannual financial framework of cooperation under this Agreement

1. For the purposes set out in this Agreement and for a period beginning on 1 March 2005, a multiannual financial framework of cooperation shall cover commitments beginning on 1 January 2008 for a period of five or six years.

2. For this new period, the European Union shall maintain its aid effort to ACP States at least at the same level as that of the 9th EDF, not including balances; to this shall be added, based on Community estimates, the effects of inflation, growth within the European Union and enlargement to 10 new Member States in 2004.

3. Any required amendments to the multiannual financial framework or relative parts of the Agreement shall be decided by the Council of Ministers by derogation from Article 95 of this Agreement.

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ANNEX Ib

Multiannual financial framework for the period 2008 to 2013

1. For the purposes set out in this Agreement and for a period starting on 1 January 2008, the overall amount of the financial assistance for the ACP Group of States within this multiannual financial framework shall be EUR 23 966 million, as specified in points 2 and 3.

2. The sum of EUR 21 966 million under the 10th European Development Fund (EDF), shall be made available on entry into force of the multiannual financial framework. It shall be allocated between the instruments of cooperation as follows:

(a) EUR 17 766 million to finance national and regional indicative programmes. This allocation will be used to finance:

(i) the national indicative programmes of the ACP Group of States in accordance with Articles 1 to 5 of Annex IV to this Agreement concerning implementation and management procedures;

(ii) the regional indicative programmes of support for regional and inter-regional cooperation and integration of ACP Group of States in accordance with Articles 6 to 11, 13(1) and 14 of Annex IV to this Agreement concerning implementation and management procedures;

(b) EUR 2 700 million to finance intra-ACP and inter-regional cooperation with many or all of the ACP Group of States, in accordance with Articles 12, 13(2) and 14 of Annex IV to this Agreement concerning implementation and management procedures. This envelope shall include structural support to the joint institutions: the CDE and the CTA referred to and supervised in accordance with the rules and procedures set out in Annex III to this Agreement, and the Joint Parliamentary Assembly referred to in Article 17 of this Agreement. This envelope shall also cover assistance for the operating expenditures of the ACP Secretariat referred to in points 1 and 2 of Protocol 1 attached to this Agreement;

(c) EUR 1 500 million to finance the Investment Facility in accordance with the terms and conditions set out in Annex II (Terms and conditions of financing) to this Agreement, comprising an additional contribution of EUR 1 100 million to the resources of the Investment Facility, managed as a revolving fund, and EUR 400 million under the form of grants for the financing of the interestrate subsidies provided for in Articles 2 and 4 of that Annex over the period of the 10th EDF.

3. The operations financed under the Investment Facility, including the corresponding interestrate subsidies, shall be managed by the European Investment Bank (EIB). An amount of up to EUR 2 000 million in addition to the 10th EDF shall be made available by the EIB in the form of loans from own resources. These resources shall be granted for the purposes set out in Annex II to this Agreement, in accordance with the conditions laid down in the statutes of the EIB and the relevant provisions of the terms and conditions for investment financing in that Annex. All other financial resources under this multiannual financial framework shall be administered by the Commission.

4. After 31 December 2007 or after the date of entry into force of this multiannual financial framework, whichever is the later, balances from the Ninth EDF or from previous EDFs and funds decommitted from projects under these EDFs shall no longer be committed, unless the Council of the European Union decides otherwise by unanimity, with the exception of the balances and funds decommitted after the date of entry into force resulting from the system guaranteeing the stabilisation of export earnings from primary agricultural products (STABEX) under the EDFs prior to the Ninth EDF, and the remaining balances and reimbursements of the amounts allocated for the financing of the Investment Facility, excluding the related interestrate subsidies. The funds possibly committed after 31 December 2007 until the entry into force of this Agreement, as referred to above, will be used exclusively to ensure the working ability of the EU administration and to cover the ongoing costs to sustain running projects until the 10th EDF comes into force.

5. The overall amount of this multiannual financial framework shall cover the period from 1 January 2008 to 31 December 2013. The funds of the 10th EDF, apart from amounts allocated to the Investment Facility, excluding the related interestrate subsidies, shall no longer be committed beyond 31 December 2013, unless the Council of the European Union decides otherwise by unanimity, on a proposal from the Commission.

6. The Committee of Ambassadors, acting on behalf of the ACP-EC Council of Ministers, may, within the overall amount of the multiannual financial framework, take appropriate measures in order to meet programming requirements under one of the allocations provided for in point 2, including the reassignment of funds between these allocations.

7. The Parties will conduct a performance review, assessing the degree of realisation of commitments and disbursements, as well as the results and impact of the aid provided. This review will be undertaken on the basis of a proposal prepared by the Commission in 2010. It shall contribute to a decision on the amount of the financial cooperation after 2013.

8. Any Member State may provide the Commission or the EIB with voluntary contributions to support the objectives of the ACP-EC Partnership Agreement. Member States may also co-finance projects or programmes, for example in the framework of specific initiatives to be managed by the Commission or the EIB. ACP ownership at the national level of such initiatives must be guaranteed.

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ANNEX II

TERMS AND CONDITIONS OF FINANCING

CHAPTER 1

INVESTMENT FINANCING

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Article 1

1.  The terms and conditions of financing in relation to the operations of the Investment Facility (Facility), the loans from own resources of the European Investment Bank (Bank) and special operations shall be as laid down in this Chapter. These resources may be channelled to eligible enterprises, either directly or indirectly, through eligible investment funds and/or financial intermediaries.

2.  Funds for interest rate subsidies, as provided for under this Annex, will be made available from the interest subsidy allocation specified in Annex Ib, paragraph 2(c), to this Agreement.

3.  Interest subsidies may be capitalised or may be used in the form of grants. The amount of the interest rate subsidy, calculated in terms of its value at the times of disbursement of the loan, shall be charged against the interest subsidy allocation specified in Annex Ib, paragraph 2(c), and paid directly to the Bank. Up to 10 % of this allocation for interest rate subsidies may also be used to support project related technical assistance in ACP countries.

4.  These terms and conditions are without prejudice to terms and conditions that may be imposed upon ACP countries subject to restrictive borrowing conditions under the Heavily Indebted Poor Countries (‘HIPC’) or other internationally agreed debt sustainability frameworks. Accordingly, where such frameworks require a reduction in the interest rate of a loan by more than 3 %, as permitted under Articles 2 and 4 of this Chapter, the Bank shall seek to reduce the average cost of funds through appropriate co-financing with other donors. Should this not be deemed possible, the interest rate of the Bank loan may be reduced by such amount as required to comply with the level arising from the HIPC initiative or any internationally agreed debt sustainability framework.

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Article 2

Resources of the investment facility

1.  The resources of the Facility may be used, inter alia, to:

(a) provide risk capital in the form of:

(i) equity participation in ACP enterprises, including financial institutions;

(ii) quasi-capital assistance to ACP enterprises, including financial institutions; and

(iii) guarantees and other credit enhancements which may be used to cover political and other investment-related risks, both for foreign and local investors or lenders.

(b) provide ordinary loans.

2.  Equity participation shall normally be for non-controlling minority holdings and shall be remunerated on the basis of the performance of the project concerned.

3.  Quasi-capital assistance may consist of shareholders' advances, convertible bonds, conditional, subordinated and participating loans or any other similar form of assistance. Such assistance may consist in particular of:

(a) conditional loans, the servicing and/or the duration of which shall be linked to the fulfilment of certain conditions with regard to the performance of the project; in the specific case of conditional loans for pre-investment studies or other project-related technical assistance, servicing may be waived if the investment is not carried out;

(b) participating loans, the servicing and/or the duration of which shall be linked to the financial return of the project; and

(c) subordinated loans, which shall be repaid only after other claims have been settled.

4.  The remuneration of each operation shall be specified when the loan is made. However:

(a) in the case of conditional or participating loans, the remuneration shall normally comprise a fixed interest rate of not more than 3 % and a variable component related to the performance of the project; and

(b) in the case of subordinated loans, the interest rate shall be market related.

5.  Guarantees shall be priced so as to reflect the risks insured and the particular characteristics of the operation.

6.  The interest rate of ordinary loans shall comprise a reference rate applied by the Bank for comparable loans with the same terms and conditions as to grace and repayment periods and a mark up determined by the Bank.

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7.  Ordinary loans in countries not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks may be extended on concessional terms and conditions in the following cases:

(a) for infrastructure projects, that are a prerequisite for private sector development in the Least Developed Countries, in post-conflict countries and in post-natural disaster countries. In such cases, the interest rate of the loan will be reduced by up to 3 %;

(b) for projects which involve restructuring operations in the framework of privatisation or for projects with substantial and clearly demonstrable social or environmental benefits. In such cases, loans may be extended with an interest rate subsidy, the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest rate subsidy shall not be higher than 3 %.

7.  The final rate of loans falling under point (a) or (b) shall, in any case, never be less than 50 % of the reference rate.

8.  The funds to be provided for these concessional purposes will be made available from the interest subsidy allocation referred to in Annex Ib, paragraph 2(c), to this Agreement.

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9.  Interest subsidies may be capitalised or may be used in the form of grants. Up to 10 % of the budget for interest rate subsidies may be used to support project related technical assistance in ACP countries.

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Article 3

Operations of the investment facility

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1.  The Investment Facility shall operate in all economic sectors and support investments of private and commercially run public sector entities, including revenue generating economic and technological infrastructure critical for the private sector. The Facility shall:

(a) be managed as a revolving fund and aim at being financially sustainable. Its operations shall be on market-related terms and conditions and shall avoid creating distortions on local markets and displacing private sources of finances;

(b) support the ACP financial sector and have a catalytic effect by encouraging the mobilisation of long-term local resources and attracting foreign private investors and lenders to projects in the ACP States;

(c) bear part of the risk of the projects it funds, its financial sustainability being ensured through the portfolio as a whole and not from individual interventions; and

(d) seek to channel funds through ACP national and regional institutions and programmes that promote the development of small-and medium-sized enterprises (SMEs).

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1a.  The Bank shall be remunerated for the cost incurrred in managing the Investment Facility. For the first two years after the entry into force of the second financial protocol, this remuneration shall be up to an amount of 2 % p. a. of the total initial endowment of the Investment Facility. Thereafter, the remuneration of the Bank shall include a fixed component of 0,5 % p. a. of the initial endowment and a variable component of an amount of up to 1,5 % p. a. of the portfolio of the Investment Facility that is invested in projects in ACP countries. The remuneration shall be financed out of the Investment Facility.

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2.  On expiry of the Financial Protocol, and in the absence of a specific decision by the Council of Ministers, the cumulative net reflows to the Investment Facility shall be carried over to the next Protocol.

Article 4

Bank own resource loans

1.  The Bank shall:

(a) contribute, through the resources it manages, to the economic and industrial development of the ACP States on a national and regional basis; and to this end, finance as a priority productive projects and programmes or other investments aimed at promoting the private sector in all economic sectors;

(b) establish close cooperation links with national and regional development banks and with banking and financial institutions of the ACP States and of the EU; and

(c) in consultation with the ACP State concerned, adapt the arrangements and procedures for implementing development finance cooperation, as set out in this Agreement, if necessary, to take account of the nature of the projects and programmes and to act in accordance with the objectives of this Agreement, within the framework of the procedures laid down by its statute.

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2.  Loans from the Bank's own resources shall be granted under the following terms and conditions:

(a) the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency and the repayment period on the day of signature of the contract or on the date of disbursement;

(b) however, for countries which are not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks:

(i) in principle, public sector projects shall be eligible for an interest rate subsidy of up to 3 %;

(ii) private sector projects falling into the categories specified in Article 2(7)(b) shall be eligible for interest rate subsidies on the terms specified in that provision.

The final interest rate shall, in any such case, never be less than 50 % of the reference rate;

(c) the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project. These loans shall normally comprise a grace period fixed by reference to the construction period of the project.

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3.  For investments financed by the Bank from its own resources in public sector companies, specific project-related guarantees or undertakings may be required from the ACP State concerned.

Article 5

Conditions for foreign exchange rate risk

In order to minimise the effects of exchange rate fluctuations, the problems of exchange rate risk shall be dealt with in the following way:

(a) in the case of equity participation designed to strengthen an enterprise's own funds, the exchange rate risk shall, as a general rule, be borne by the Investment Facility;

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(b) in the case of ordinary loans and risk capital financing for small-and medium-sized enterprises (SMEs), the exchange rate risk shall, as a general rule, be shared by the Community, on the one hand, and by the other Parties involved, on the other. On average, the foreign exchange rate risk should be shared equally; and

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(c) where feasible and appropriate, particularly in countries characterised by macroeconomic and financial stability, the Facility will endeavour to extend loans in local ACP currencies, thus de facto taking the foreign exchange risk.

Article 6

Conditions for foreign exchange transfer

The ACP States concerned shall, in respect of operations under the Agreement, and in respect of which they have given their written approval within the framework of this Agreement:

(a) grant exemption from all national or local duties, fiscal charges on interest, commission and amortisation of loans due in accordance with the law or laws of the ACP State or States concerned;

(b) place at the disposal of the beneficiaries the currency necessary for the payment of interest, commission and the amortisation of loans due in terms of financing contracts granted for the implementation of projects and programmes on their territories; and

(c) make available to the Bank the foreign currency necessary for the transfer of all sums received by it in national currency at the exchange rate applicable between the Euro or other currencies of transfer and the national currency at the date of the transfer. These include all forms of remuneration, such as, inter alia, interest, dividends, commissions and fees, as well as the amortisation of loans and the proceeds from the sale of shares due in terms of financing contracts granted for the implementation of projects and programmes on their territories.

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Article 6a

Annual reporting on the Investment Facility

Representatives of the EU Member States responsible for the Investment Facility, Representatives of the ACP States, as well as the European Investment Bank, the European Commission, the EU Council Secretariat and the ACP Secretariat shall meet annually to discuss the operations, performance and policy questions concerning the Investment Facility.

Article 6b

Review of performance of the Investment Facility

The overall performance of the Investment Facility shall be subject to a joint review at the mid-term and end-term of a financial protocol. Such an exercise may include a recommendation on how to improve the implementation of the Facility.

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CHAPTER 2

SPECIAL OPERATIONS

Article 7

1.  Cooperation shall support from the grant allocation:

(a) low-income housing to promote long-term development of the housing sector, including secondary mortgage facilities;

(b) micro-finance to promote SMEs and micro-enterprises; and

(c) capacity building to strengthen and facilitate the effective participation of the private sector in social and economic development.

2.  The ACP-EC Council of Ministers shall, after the signature of this Agreement and on a proposal by the ACP-EC Development Finance Cooperation Committee, decide on the modalities and the amount of resources allocated from the long-term development envelope to attain these objectives.



CHAPTER 3

FINANCING FOR SHORT-TERM FLUCTUATIONS IN EXPORT EARNINGS

Article 8

1.  The Parties recognise that losses of export earnings as a result of short-term fluctuations may jeopardise the development financing requirements and the implementation of macroeconomic and sectoral policies. The degree of dependence of an ACP State's economy on the export of goods, and in particular from agricultural and mining products shall, therefore, be a criterion for determining the allocation of long-term development.

2.  In order to mitigate the adverse effects of instability of export earnings and safeguard the development programme jeopardised by the drop in revenue, additional financial support may be mobilised from the programmable resources for the country's long-term development on the basis of Articles 9 and 10.

Article 9

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Eligibility criteria

1.  Eligibility for additional resources shall be established by:

 a 10 % (2 % in the case of least-developed, landlocked, island, post-conflict and post-natural disaster States) loss of export earnings from goods compared with the arithmetic mean of the earnings in the four years preceding the application year, excluding the most extreme value, or

 a 10 % (2 % in the case of least-developed, landlocked, island, post-conflict and post-natural disaster States) loss of export earnings from the total of agricultural or mineral products compared with the arithmetic mean of the earnings in the four years preceding the application year, excluding the most extreme value for countries where the agricultural or mineral export earnings represent more than 40 % of total export earnings from goods, or

 a 10 % (2 % in the case of least-developed, landlocked, island, post-conflict and post-natural disaster States) loss of export earnings from the total of agricultural or mineral products compared with the arithmetic mean of the earnings in the four years preceding the application year, excluding the most extreme value for countries where the agricultural or mineral export earnings represent between 20 % and 40 % of total export earnings from goods, provided that total earnings do not increase more than proportionally with respect to the impact of the loss of export earnings from agricultural or mineral products as a proportion of total exports.

2.  The loss of export earnings defined in paragraph 1 must be 0,5 % of GDP or more for there to be entitlement to additional support. Entitlement to additional support shall be limited to three successive years.

3.  The additional resources shall be reflected in the public accounts of the country concerned. They shall be utilised in accordance with programming rules and methods, including the specific provisions of Annex IV ‘Implementation and management procedures’, on the basis of agreements drawn up in advance between the Community and the ACP State concerned in the year following the application year. By agreement of both Parties the resources may be used to finance programmes included in the national budget. However, a part of the additional resources may be set aside for specific sectors, in particular to develop market-based insurance schemes offering protection against the risk of fluctuations in export earnings.

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Article 9a

1.  The amount of additional financial support shall be equal to the loss of export earnings multiplied by the arithmetic mean of the ‘government revenue/gross domestic product’ ratio of the four years preceding the application year, excluding the most extreme value and capping that ratio at 25 %.

2.  The Commission shall analyse the data provided by the ACP States for the purpose of establishing eligibility and additional financial support as defined in Article 9 in the local currency corrected for inflation. The Commission will then convert the potential amount of additional financial support into euro in accordance with its procedures.

3.  Each year, within the total financial allocation for national indicative programmes, the Commission shall establish an envelope covering all ACP countries to provide support in the event of short-term fluctuations in export earnings. If the amount of financial support calculated on the basis of the criteria defined in Article 9 exceeds the amount of that envelope, each ACP State’s share will be established in proportion to the potential amount of its additional financial support expressed in euro.

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Article 10

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The system for allocating additional resources shall provide for advances to cover any delays in obtaining consolidated trade statistics and to ensure that the resources in question can be included in the budget of the second year following the application year at the latest. Advances shall be reserved for States where Flex financial support can be implemented by means of general budgetary support. They shall be mobilised on the basis of provisional export statistics drawn up by the government and submitted to the Commission. The maximum advance shall be 100 % of the amount of additional financial support for the application year. The amounts thus mobilised shall be adjusted in the light of the final consolidated export statistics. Those statistics shall be submitted no later than 31 December of the second year following the application year.

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Article 11

The provisions in this Chapter shall be subject to review at the latest after two years of operation and subsequently at the request of either Party..



CHAPTER 4

OTHER PROVISIONS

Article 12

Current payments and capital movements

1.  Without prejudice to paragraph 3 hereafter, the Parties undertake to impose no restrictions on any payments, in freely convertible currency, on the current account of balance of payments between residents of the Community and of the ACP States.

2.  With regard to transactions on the capital account of balance of payments, the Parties undertake to impose no restrictions on the free movement of capital relating to direct investments made in companies formed in accordance with the law of the host country and investments made in accordance with this Agreement, and the liquidation or repatriation of these investments and of any profit stemming therefrom.

3.  Where one or more ACP State or one or more Member State of the Community is in serious balance of payments difficulties, or under threat thereof, the ACP State, the Member State or the Community may, in accordance with the conditions established under the GATT, GATS and Article 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 Party taking the measures shall inform the other Parties forthwith and shall submit to them as soon as possible a timetable for the elimination of the measures concerned.

Article 13

Qualification and treatment of business entities

As regards arrangements that may be applied in matters of establishment and provision of services, the ACP States, on the one hand, and the Member States, on the other, shall treat nationals and companies or firms of the ACP States and nationals and companies or firms of the Member States respectively on a non-discriminatory basis. However, if, for a given activity, an ACP State or a Member State is unable to provide such treatment, the ACP State or the Member State, as the case may be, shall not be bound to accord such treatment for that activity to the nationals and companies or firms of the State concerned.

Article 14

Definition of ‘companies and firms’

1.  For the purpose of this Agreement, ‘companies or firms of a Member State or an ACP State’ mean companies or firms constituted under civil or commercial law, including corporations, whether public or otherwise, cooperative societies and other legal persons and partnerships governed by public or private law, save for those which are non-profit-making, formed in accordance with the law of a Member State or an ACP State and whose statutory office, central administration or principal place of business is a Member State or an ACP State.

2.  However, a company or firm having only its statutory office in a Member State or an ACP State must be engaged in an activity which has an effective and continuous link with the economy of that Member State or ACP State.



CHAPTER 5

INVESTMENT PROTECTION AGREEMENTS

Article 15

1.  When implementing the provisions of Article 78 of this Agreement, the Parties shall take into account the following principles:

(a) a Contracting State may request where appropriate, the negotiation of an investment promotion and protection agreement with another Contracting State;

(b) the States party to such agreements shall practise no discrimination between Contracting States party to this Agreement or against each other in relation to third countries when opening negotiations for concluding, applying and interpreting bilateral or multilateral investment promotion and protection agreements;

(c) the Contracting States shall have the right to request a modification or adaptation of the non-discriminatory treatment referred to above when international obligations or changed circumstances so necessitate;

(d) the application of the principles referred to above does not purport to and cannot in practice infringe the sovereignty of any Contracting Party to the Agreement; and

(e) the relation between the date of entry into force of any agreement negotiated, provisions for the settlement of disputes and the date of the investments concerned will be set out in the said agreement, account being taken of the provisions set out above. The Contracting Parties confirm that retroactivity shall not apply as a general principle unless Contracting States stipulate otherwise.

2.  With a view to facilitating the negotiation of bilateral agreements on investment promotion and protection, the Contracting Parties agree to study the main clauses of a model protection agreement. The study, drawing on the provisions of the existing bilateral agreements between the States Parties, will give particular attention to the following issues:

(a) legal guarantees to ensure fair and equitable treatment and protection of foreign investors;

(b) the most-favoured-investor clause;

(c) protection in the event of expropiation and nationalisation;

(d) the transfer of capital and profits, and

(e) international arbitration in the event of disputes between investor and host State.

3.  The Parties agree to study the capacity of the guarantee systems to give a positive answer to the specific needs of small and medium-sized enterprises of insuring their investments in ACP States. The studies referred to above shall be started as soon as possible after the signing of the Agreement. The result of these studies shall be submitted, upon completion to the ACP-EC Development Finance Cooperation Committee for consideration and appropriate action.

ANNEX III

INSTITUTIONAL SUPPORT — CDE AND CTA

Article 1

Cooperation shall support the institutional mechanisms that provide assistance for businesses and enterprises and promote agriculture and rural development. In this context, cooperation shall help to:

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(a) strengthen and enhance the role of the Centre for the Development of Enterprise (CDE) so as to provide the private sector with the necessary support in the promotion of private sector development activities in ACP countries and regions; and

(b) strengthen and reinforce the role of the Technical Centre for Agricultural and Rural Cooperation (CTA) in ACP institutional capacity development, particularly information management, in order to improve access to technologies for increasing agricultural productivity, commercialisation, food security and rural development.

Article 2

CDE

1.  The CDE shall promote a business environment which is conducive to private sector development and support the implementation of private sector development strategies in the ACP countries by providing non-financial services, including consultancy services, to ACP companies and businesses and support to joint initiatives set up by economic operators of the Community and of the ACP States. In this regard, due account shall be taken of the needs arising from the implementation of the Economic Partnership Agreements.

2.  The CDE shall aim to assist private ACP enterprises to become more competitive in all sectors of the economy. It shall in particular:

(a) facilitate and promote business cooperation and partnerships between ACP and EU enterprises;

(b) assist with the development of business support services through support for capacity building in private sector owned organisations or support for providers of technical, professional, management, commercial and training support services;

(c) provide assistance for investment promotion activities, such as investment promotion organisations, organisation of investment conferences, training programmes, strategy workshops and follow-up investment promotion missions;

(d) support initiatives that contribute to fostering innovation and the transfer of technologies, know-how and best practices on all aspects of business management;

(e) inform the ACP private sector about the provisions of this Agreement; and

(f) provide information to European companies and private sector organisations on business opportunities and modalities in ACP countries.

3.  The CDE shall also contribute to the improvement of business environment at national and regional levels so as to support enterprises to take advantage of the progress in regional integration processes and trade opening. This shall include:

(a) assisting enterprises in meeting existing and new quality and other standards introduced by progress in regional integration and the implementation of the Economic Partnership Agreements;

(b) diffusing information within the local ACP private sector about the product quality and standards required in external markets;

(c) promoting regional and national business environment reforms, including by facilitating the dialogue between private sector and public institutions; and

(d) enhancing the role and function of national and/or regional service-providing intermediaries.

4.  The activities of the CDE shall be based on the concept of coordination, complementarity and added value in respect of any private sector development initiatives taken by public or private entities. In particular, its activities shall be consistent with the national and regional development strategies as defined in Part 3 of this Agreement. The CDE shall exercise selectivity and ensure financial sustainability in undertaking its tasks. It shall ensure an appropriate division of tasks between its Headquarters and regional offices.

5.  Periodic evaluations of the activities undertaken by the CDE shall be carried out.

6.  The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall, after the signature of this Agreement:

(a) lay down the statutes of the Centre;

(b) appoint the members of the Executive Board;

(c) appoint the management of the Centre on a proposal from the Executive Board; and

(d) monitor the overall strategy of the Centre and supervise the work of the Executive Board.

7.  The Executive Board shall, according to the statutes of the Centre:

(a) lay down the financial and staff regulations and the rules of operation;

(b) supervise its work;

(c) adopt the programme and the budget of the Centre;

(d) submit periodic reporting and evaluations to the Supervisory Authority; and

(e) perform any other tasks allocated to it by the statutes of the Centre.

8.  The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance cooperation.

Article 3

CTA

1.  The mission of the CTA shall be to strengthen policy and institutional capacity development and information and communication management capacities of ACP agricultural and rural development organisations. It shall assist such organisations in formulating and implementing policies and programmes to reduce poverty, promote sustainable food security, preserve the natural resource base, and thus contribute to building self-reliance in ACP rural and agricultural development.

2.  The CTA shall:

(a) develop and provide information services and ensure better access to research, training and innovations in the spheres of agricultural and rural development and extension, in order to promote agriculture and rural development; and

(b) develop and reinforce ACP capacities in order to:

(i) improve the formulation and management of agricultural and rural development policies and strategies at national and regional levels including improved capacity for data collection, policy research, analysis and formulation;

(ii) improve the information and communication management, in particular within the National Agricultural Strategy;

(iii) promote effective intra-institutional Information and Communication Management (ICM) for performance monitoring, as well as consortia with regional and international partners;

(iv) promote decentralised ICM at local and national levels;

(v) strengthen initiatives via regional cooperation; and

(vi) develop approaches for assessing the impact of policy on agricultural and rural development.

3.  The Centre shall support regional initiatives and networks and shall progressively share capacity development programmes with appropriate ACP organisations. To this end, the Centre shall support decentralised regional information networks. Such networks shall be built up gradually and efficiently.

4.  Periodic evaluations of the activities undertaken by the CTA shall be carried out.

5.  The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall, after the signature of this Agreement:

(a) lay down the statutes of the Centre;

(b) appoint the members of the Executive Board;

(c) appoint the management of the Centre on a proposal from the Executive Board; and

(d) monitor the overall strategy of the Centre and supervise the work of the Executive Board.

6.  The Executive Board shall, according to the statutes of the Centre:

(a) lay down the financial and staff regulations and the rules of operation;

(b) supervise its work;

(c) adopt the programme and the budget of the Centre;

(d) submit periodic reporting and evaluations to the Supervisory Authority; and

(e) perform any other tasks allocated to it by the statutes of the Centre.

7.  The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance cooperation.

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ANNEX IV

IMPLEMENTATION AND MANAGEMENT PROCEDURES

CHAPTER 1

PROGRAMMING (NATIONAL)

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Article 1

Operations financed by grants within the framework of this Agreement shall be programmed at the beginning of the period covered by the multi-annual financial framework of cooperation.

Programming will be based on the principles of ownership, alignment, donor coordination and harmonisation, managing for development results and mutual accountability.

Programming for this purpose shall mean:

(a) the preparation and development of country, regional or intra-ACP strategy papers (SP) based on their own medium-term development objectives and strategies, and taking into account the principles of joint programming and division of labour among donors, which shall, to the extent possible, be a partner country or region led process;

(b) a clear indication from the Community of the indicative programmable financial allocation from which the country, region or intra-ACP cooperation may benefit during the period covered by the multi-annual financial framework of cooperation under this Agreement as well as any other relevant information, including a possible reserve for unforeseen needs;

(c) the preparation and adoption of an indicative programme for implementing the SP, taking into account commitments of other donors, and in particular of the EU Member States; and

(d) a review process covering the SP, the indicative programme and the volume of resources allocated to it.

Article 2

Country strategy paper

The country strategy paper (CSP) shall be prepared by the ACP State concerned and the EU. It shall draw from prior consultation with a wide range of actors including non-State actors, local authorities and, where relevant, ACP Parliaments, and shall draw on lessons learned and best practices. Each CSP shall be adapted to the needs and respond to the specific circumstances of each ACP State. The CSP shall be an instrument to prioritise activities and to build local ownership of cooperation programmes. Any divergences between the country's own analysis and that of the Community shall be noted. The CSP shall include the following standard elements:

(a) an analysis of the political, economic, social, and environmental country context, constraints, capacities and prospects including an assessment of basic needs, such as income per capita, population size and social indicators, and vulnerability;

(b) a detailed outline of the country’s medium-term development strategy, clearly defined priorities and expected financing requirements;

(c) an outline of relevant plans and actions of other donors present in the country, in particular including those of the EU Member States in their capacity as bilateral donors;

(d) response strategies, detailing the specific contribution the EU can provide. These shall, to the extent possible, enable complementarity with operations financed by the ACP State itself and by other donors present in the country; and

(e) an indication of the most appropriate support and implementation mechanisms to be applied in implementing the above strategies.

Article 3

Resource allocation

1.  The indicative resource allocation among ACP countries shall be based on standard, objective and transparent needs and performance criteria. In this context:

(a) needs shall be assessed on the basis of criteria pertaining to per capita income, population size, social indicators and level of indebtedness and vulnerability to exogenous shocks. Special treatment shall be accorded to the least developed ACP States, and the vulnerability of island and landlocked States shall duly be taken into account. In addition, account shall be taken of the particular difficulties of countries dealing with the aftermath of conflict or natural disaster; and

(b) performance shall be assessed on the basis of criteria pertaining to governance, progress in implementing institutional reforms, country performance in the use of resources, effective implementation of current operations, poverty alleviation or reduction, progress towards achieving the Millennium Development Goals, sustainable development measures and macroeconomic and sectoral policy performance.

2.  The allocated resources shall comprise:

(a) a programmable allocation to cover macroeconomic support, sectoral policies, programmes and projects in support of the focal or non-focal areas of Community assistance. The programmable allocation shall facilitate the long-term programming of Community aid for the country concerned. Together with other possible Community resources, these allocations shall be the basis for the preparation of the indicative programme for the country concerned; and

(b) an allocation to cover unforeseen needs such as those defined in Articles 66 and 68 and Articles 72, 72a and 73 of this Agreement, accessible under the conditions set out in those Articles, where such support cannot be financed from the Union’s budget.

3.  Provision will be made on the basis of the reserve for unforeseen needs for those countries, which, due to exceptional circumstances, cannot access normal programmable resources.

4.  Without prejudice to Article 5(7) of this Annex concerning reviews, the Community may, in order to take account of new needs or exceptional performance, increase a country’s programmable allocation or its allocation for unforeseen needs:

(a) new needs may result from exceptional circumstances such as crisis and post-crisis situations or from unforeseen needs as referred to in paragraph 2(b);

(b) exceptional performance is a situation in which, outside the mid-term and end-of-term reviews, a country’s programmable allocation is totally committed and additional funding from the national indicative programme can be absorbed against a background of effective poverty-reduction policies and sound financial management.

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Article 4

Preparation and adoption of the indicative programme

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1.  Upon receipt of the information referred to above, each ACP State shall draw up and submit to the Community a draft indicative programme on the basis of and consistent with its development objectives and priorities as expressed in the CSP. The draft indicative programme shall contain:

(a) general budget support and/or a limited number of focal sectors or areas on which support should be concentrated;

(b) the most appropriate measures and operations for attaining the objectives and targets in the focal sector(s) or area(s);

(c) the resources possibly reserved for a limited number of programmes and projects outside the focal sector(s) or area(s) and/or the broad outlines of such activities, as well as an indication of the resources to be deployed for each of these elements;

(d) the types of non-State actors eligible for funding, in accordance with the criteria laid down by the Council of Ministers, the resources allocated for non-State actors and the type of activities to be supported, which must be not-for-profit;

(e) proposals for a possible participation in regional programmes and projects; and

(f) a possible reserve for insurance against possible claims and to cover cost increases and contingencies.

2.  The draft indicative programme shall, as appropriate, contain the resources reserved to reinforce human, material and institutional ACP capacity for preparing and implementing national indicative programmes and possible participations in programmes and projects funded from the regional indicative programmes and for improving the management of the ACP States' public investment projects cycle.

3.  The draft indicative programme shall be the subject of an exchange of views between the ACP State concerned and the Community. The indicative programme shall be adopted by common agreement between the Commission on behalf of the Community and the ACP State concerned. It shall, when adopted, be binding on both the Community and that State. This indicative programme shall be annexed to the CSP and shall in addition contain:

(a) an indication of specific and clearly identified operations, especially those that can be committed before the next review;

(b) an indicative timetable for implementation and review of the indicative programme, including commitments and disbursements of resources; and

(c) results-oriented criteria for the reviews.

4.  The Community and the ACP State concerned shall take all necessary measures to ensure that the programming process is completed within the shortest possible time and, save in exceptional circumstances, within twelve months of the adoption of the multi-annual financial framework of cooperation. In this context, the preparation of the CSP and the indicative programme must be part of a continuous process leading to the adoption of a single document.

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5.  When an ACP State faces a crisis situation as the result of a war or other conflict, or exceptional circumstances with a comparable effect, preventing the National Authorising Officer from carrying out his duty, the Commission may itself manage the resources allocated to the State in question in accordance with Article 3 and use it for special support. Special support may concern peace-building policies, conflict management and resolution, post-conflict support, including institution-building, economic and social-development activities, taking particular account of the needs of the most vulnerable sections of the population. The Commission and the ACP State concerned shall revert to normal implementation and normal management procedures as soon as the authorities responsible for managing cooperation are able to do so once more.

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Article 5

Review process

1.  Financial cooperation between the ACP State and the Community shall be sufficiently flexible to ensure that operations are kept constantly in line with the objectives of this Agreement and to take account of any changes occurring in the economic situation, priorities and objectives of the ACP State concerned. In this context, the National Authorising Officer and the ►M4  Commission ◄ shall:

(a) annually undertake an operational review of the indicative programme; and

(b) undertake a mid-term and end-of-term review of the CSS and the indicative programme in the light of current needs and performance.

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2.  In exceptional circumstances as referred to in Article 3(4), in order to take into account new needs or exceptional performance, an ad hoc review can be carried out on the demand of either Party.

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3.  The National Authorising Officer and the ►M4  Commission ◄ shall:

(a) take all necessary measures to ensure adherence to the provisions of the indicative programme, including ensuring that the timetable of commitments and disbursements agreed at the time of programming is adhered to; and

(b) determine any causes of delay in implementation and propose suitable measures to remedy the situation.

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4.  The annual operational, mid-term and end-of-term reviews of the indicative programme shall consist of a joint assessment of the implementation of the programme and take into account the results of relevant activities of monitoring and evaluation. These reviews shall be conducted locally and shall be finalised between the National Authorising Officer and the Commission, in consultation with the appropriate stakeholders, including non-State actors, local authorities and, where relevant, ACP parliaments. They shall in particular cover an assessment of:

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(a) the results achieved in the focal sector(s) measured against the identified targets and impact indicators and sectoral policy commitments;

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(b) programmes and projects outside the focal sector(s);

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(c) the use of resources set aside for non-State actors;

(d) the effectiveness in implementation of current operations and the extent to which the timetable for commitments and payments have been respected; and

(e) an extension of the programming perspective for the following years.

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5.  The Commission shall submit once a year a synthesis report on the conclusion of the annual operational review to the Development Finance Cooperation Committee. The Committee shall examine the report in accordance with its responsibilities and powers under this Agreement.

6.  In the light of the annual operational reviews, the National Authorising Officer and the Commission may at the mid-term and end-of-term reviews, review and adapt the CSP:

(a) where operational reviews indicate specific problems; and/or

(b) in the light of changed circumstances of an ACP State.

6.  A change in the CSP may also be decided as a result of the ad hoc review process foreseen under paragraph 2.

6.  The end-of-term review may also include adaptation for the new multi-annual financial framework of cooperation in terms of both resource allocation and preparation for the next programme.

7.  Following the completion of the mid-term and end-of-term reviews, the Commission may, on behalf of the Community, increase or decrease the resource allocation of a country in the light of current needs and the performance of the ACP State concerned.

7.  Following an ad hoc review as foreseen under paragraph 2, the Commission may, on behalf of the Community, also increase the resource allocation in the light of new needs or exceptional performance of the ACP State concerned, as defined in Article 3(4).

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CHAPTER 2

PROGRAMMING AND PREPARATION (REGIONAL)

Article 6

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Scope

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1.  Regional cooperation shall cover operations benefiting and involving:

(a) two or more or all ACP States as well as any non-ACP developing countries participating in these operations, and/or

(b) a regional body of which at least two ACP States are members, including those with members which are non-ACP countries.

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2.  Regional cooperation can also involve Overseas Countries and Territories and outermost regions. The funding to enable participation of these territories shall be additional to funds allocated to the ACP States under the Agreement.

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3.  Requests for financing of regional programmes shall be submitted by:

(a) a duly mandated regional body or organisation; or

(b) a duly mandated sub-regional body, organisation or an ACP State in the region concerned at the programming stage, provided that the operation has been identified in the regional indicative programme (RIP).

4.  The participation of non-ACP developing countries to regional programmes shall be envisaged only to the extent that:

(a) the centre of gravity of the projects and programmes funded under the multi-annual financial framework of cooperation remains in an ACP country;

(b) equivalent provisions exist in the framework of the Community's financial instruments; and

(c) the principle of proportionality is respected.

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Article 7

Regional programmes

The ACP States concerned shall decide on the definition of geographical regions. To the maximum extent possible, regional integration programmes should correspond to programmes of existing regional organisations. In principle, in case the membership of several relevant regional organisations overlaps, the regional integration programme should correspond to the combined membership of these organisations.

Article 8

Regional programming

1.  Programming shall take place at the level of each region. The programming shall be a result of an exchange of views between the Commission and the duly mandated regional organisation(s) concerned, and in the absence of such a mandate, the National Authorising Officers of the countries in that region. Where appropriate, programming may include a consultation with non-State actors represented at regional level and, where relevant, regional parliaments.

2.  The regional strategy paper (RSP) shall be prepared by the Commission and the duly mandated regional organisation(s) in collaboration with the ACP States in the region concerned, on the basis of the principle of subsidiarity and complementarity, taking into account the programming of the CSP.

3.  The RSP will be an instrument to prioritise activities and to build local ownership of supported programmes. The RSP shall include the following standard elements:

(a) an analysis of the political, economic, social and environmental context of the region;

(b) an assessment of the process and prospects of regional economic integration and integration into the world economy;

(c) an outline of the regional strategies and priorities pursued and the expected financing requirements;

(d) an outline of relevant activities of other external partners in regional cooperation;

(e) an outline of the specific EU contribution towards achievement of the goals for regional integration, complementary insofar as possible to operations financed by the ACP States themselves and by other external partners, particularly the EU Member States; and

(f) an indication of the most appropriate support and implementation mechanisms to be applied in implementing the above strategies.

Article 9

Resource allocation

1.  The indicative resource allocation among ACP regions shall be based on standard, objective and transparent estimates of needs and the progress and prospects in the process of regional cooperation and integration.

2.  The allocated resources shall comprise:

(a) a programmable allocation to cover support to regional integration, sector policies, programmes and projects in support of the focal or non-focal areas of Community assistance; and

(b) an allocation for each ACP region to cover unforeseen needs such as those defined in Articles 72, 72a and 73 of this Agreement where, given the cross-border nature and/or scope of the unforeseen need, such support can more effectively be provided at regional level. These funds shall be accessible under the conditions set out in Articles 72, 72a and 73 of this Agreement, where such support cannot be financed from the Union's budget. Complementarity between interventions provided for under this allocation and possible interventions at country level shall be ensured.

3.  The programmable allocation shall facilitate the long-term programming of Community aid for the region concerned. In order to achieve an adequate scale and to increase efficiency, regional and national funds may be mixed for financing regional operations with a distinct national component.

3.  A regional allocation for unforeseen needs may be mobilised to the benefit of the region concerned and of ACP countries outside the region where the nature of the unforeseen need requires their involvement and the centre of gravity of the projects and programmes envisaged remains on the region.

4.  Without prejudice to Article 11 concerning reviews, the Community may, in order to take account of new needs or exceptional performance, increase a region’s programmable allocation or its allocation for unforeseen needs:

(a) new needs are needs resulting from exceptional circumstances such as crisis and post-crisis situations or from unforeseen needs as referred to in paragraph 2(b);

(b) exceptional performance is a situation in which, outside the mid-term and end-of-term reviews, a region’s allocation is totally committed and additional funding from the regional indicative programme can be absorbed against a background of effective regional integration and sound financial management.

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Article 10

Regional indicative programme

1.  On the basis of the resource allocation indicated above, the duly mandated regional organisation(s), and in the absence of such a mandate, the National Authorising Officers of the countries in the region, shall draw up a draft Regional Indicative Programme. In particular, the draft programme shall specify:

(a) the focal sectors and themes of Community aid;

(b) the most appropriate measures and operations to achieve the objectives set for those sectors and themes; and

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(c) the programmes and projects enabling those objectives to be attained, insofar as they have been clearly identified, as well as an indication of the resources to be deployed for each of these elements and a timetable for their implementation.

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2.  The Regional Indicative Programmes shall be adopted by common agreement between the Community and the duly mandated regional organisation(s) or, in the absence of such a mandate, the ACP States concerned.

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Article 11

Review process

►M10  1. ◄   Financial cooperation between each ACP region and the Community shall be sufficiently flexible to ensure that operations are kept constantly in line with the objectives of this Agreement and to take account of any changes occurring in the economic situation, priorities and objectives of the region concerned. A mid-term and end-of-term review of the regional indicative programmes shall be undertaken to adapt the indicative programme to evolving circumstances and to ensure that they are correctly implemented. Following the completion of mid-term and end-of-term reviews, the Community may revise the resource allocation in the light of current needs and performance.

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2.  In exceptional circumstances as referred to in Article 9(4), in order to take into account new needs or exceptional performance, the review can be carried out on the demand of either Party. As a result of an ad hoc review, a change in the RSP may be decided by both Parties and/or the resource allocation increased by the Commission on behalf of the Community.

2.  The end-of-term review may also include adaptation for the new multi-annual financial framework of cooperation in terms of both resource allocation and preparation for the next regional indicative programme.

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Article 12

Intra-ACP cooperation

1.  Intra-ACP cooperation shall, as an instrument of development, contribute to the objective of the ACP-EC Partnership. The Intra-ACP cooperation is a supra-regional cooperation. It aims to address the shared challenges facing ACP States through operations that transcend the concept of geographic location and benefit many or all ACP States.

2.  In keeping with the principles of subsidiarity and complementarity, an intra-ACP intervention is envisaged when national and/or regional action proves impossible or less effective, so as to provide added value in comparison to the operations carried out with other cooperation instruments.

3.  When the ACP Group decides to contribute to international or inter-regional initiatives from the intra-ACP fund, appropriate visibility shall be ensured.

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Article 12a

Intra-ACP strategy paper

1.  The programming of the Intra-ACP cooperation shall be the result of an exchange of views between the Commission and the ACP Committee of Ambassadors, and shall be jointly prepared by the Commission services and the ACP Secretariat, following consultations with relevant actors and stakeholders.

2.  The Intra-ACP strategy paper defines the priority actions of the Intra-ACP cooperation and actions necessary to build ownership of supported programmes. It shall include the following standard elements:

(a) an analysis of the political, economic, social and environmental context of the ACP Group of States;

(b) an assessment of Intra-ACP cooperation as to its contribution to achieving the objectives of this Agreement and lessons learnt;

(c) an outline of the Intra-ACP strategy and objectives pursued and the expected financing requirements;

(d) an outline of relevant activities of other external partners in the cooperation; and

(e) an indication of the EU contribution towards achievement of the objectives of the Intra-ACP cooperation and its complementarity to operations financed at the national and regional levels and by other external partners, particularly the EU Member States.

Article 12b

Requests for financing

Requests for financing of intra-ACP programmes shall be submitted:

(a) directly by the ACP Council of Ministers or the ACP Committee of Ambassadors; or

(b) indirectly by:

(i) at least three duly mandated regional bodies or organisations belonging to different geographic regions, or at least two ACP States from each of the three regions;

(ii) international organisations, such as the African Union, carrying out operations that contribute to the objectives of regional cooperation and integration, subject to prior approval by the ACP Committee of Ambassadors; or

(iii) the Caribbean or Pacific regions, in view of their particular geographic situation, subject to prior approval by the ACP Council of Ministers or the ACP Committee of Ambassadors.

Article 12c

Resource allocation

The indicative resource allocation shall be based on the estimates of needs and the progress and prospects in the process of Intra-ACP cooperation. It shall comprise a reserve of non-programmed funds.

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Article 13

Intra-ACP indicative programme

1.  The Intra-ACP indicative programme comprises the following main standard elements:

(a) focal sectors and themes of Community aid;

(b) the most appropriate measures and actions for achieving the objectives set for the focal sectors and themes; and

(c) the programmes and projects necessary to achieve the objectives identified, insofar as they have been clearly identified, as well as an indication of the resources to be allocated to each of them and an implementation timetable.

2.  The Commission and the ACP Secretariat shall identify and appraise the corresponding actions. On this basis, the intra-ACP indicative programme shall be jointly prepared by the services of the Commission and the ACP Secretariat and presented to the ACP-EC Committee of Ambassadors. It shall be adopted by the Commission, on behalf of the Community and by the ACP Committee of Ambassadors.

3.  Without prejudice to point (iii) of Article 12b(b), the ACP Committee of Ambassadors shall present each year a consolidated list of requests for financing of the priority actions foreseen in the Intra-ACP indicative programme. The Commission shall identify and prepare the corresponding actions with the ACP Secretariat as well as an annual action programme. To the extent possible and in consideration of the allocated resources, requests for financing of actions not foreseen in the Intra-ACP indicative programme shall be included in the annual action programme. In exceptional cases, these requests are adopted through a special financing decision of the Commission.

Article 14

Review process

1.  Intra-ACP cooperation should be sufficiently flexible and reactive to ensure that its actions remain consistent with the objectives of this Agreement and to take account of any changes in the priorities and objectives of the ACP Group of States.

2.  The ACP Committee of Ambassadors and the Commission shall undertake a mid-term and end-of-term review of the intra-ACP cooperation strategy and indicative programme to adapt it to current circumstances and ensure its correct implementation. If circumstances so require, ad hoc reviews may also be conducted to take account of new needs which may arise from exceptional or unforeseen circumstances, such as those arising from new challenges which are common to ACP countries.

3.  The ACP Committee of Ambassadors and the Commission may, at the mid-term and end-of-term reviews, or after an ad hoc review, review and adapt the Intra-ACP cooperation strategy paper.

4.  Following the mid-term and end-of-term review exercises, or ad hoc reviews, the ACP Committee of Ambassadors and the Commission may adjust the allocations within the intra-ACP indicative programme and mobilise the non-programmed Intra-ACP reserve.

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CHAPTER 3

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APPRAISAL AND FINANCING

Article 15

Identification, preparation and appraisal of programmes and projects

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1.  Programmes and projects that have been presented by the ACP State concerned or the relevant organisation or body at regional or intra-ACP level shall be subject to joint appraisal. The ACP-EC Development Finance Cooperation Committee shall develop the general guidelines and criteria for appraisal of programmes and projects. These programmes and projects are generally multi-annual and may incorporate a whole range of actions of a limited size in a particular area.

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2.  Programme and project dossiers prepared and submitted for financing must contain all information necessary for the appraisal of the programmes and projects or, where programmes and projects have not been completely defined, provide the broad outlines necessary for their appraisal.

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3.  Programme and project appraisal shall take due account of national human resource constraints and ensure a strategy favourable to the promotion of such resources. It shall also take into account the specific characteristics and constraints of each ACP State or region.

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4.  Programmes and projects to be implemented by non-State actors which are eligible in accordance with this Agreement may be appraised by the Commission alone and give rise to the establishment, between the Commission and non-State actors, of grant contracts as defined in Article 19a. This appraisal shall comply with Article 4(1)(d) regarding the types of actors, their eligibility and the type of activity to be supported. The Commission, through the Head of Delegation, shall inform the ►M10  relevant Authorising Officer ◄ of such allocated grants.

Article 16

Financing proposal and decision

1.  The conclusions of the appraisal shall be summarised in a financing proposal, the final version of which shall be drawn up by the Commission in close collaboration with the ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ .

2.  (deleted)

3.  (deleted)

4.  The Commission, acting on behalf of the Community, shall communicate its financing decision to ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ within 90 days from the date on which the final version of the financial proposal is drawn up.

5.  Where the financing proposal is not adopted by the Commission on behalf of the Community, ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ shall be informed immediately of the reasons for that decision. In such a case, the representatives of ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ may, within 60 days thereafter, request either:

(a) that the matter be referred to the ACP-EC Development Finance Cooperation Committee set up under this Agreement; or

(b) that they be given a hearing by the Community's representatives.

6.  Following such a hearing, a definitive decision to adopt or reject the financing proposal shall be taken by the Commission on behalf of the Community. Before any decision is taken, ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ may forward to the Commission any facts which may appear necessary to supplement the information available to it.

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Article 17

Financing Agreement

1.  As a rule, programmes and projects financed by the multi-annual financial framework of cooperation are subject to a financing agreement drawn up by the Commission and the ACP State or the relevant organisation or body at regional or intra-ACP level.

2.  The financing agreement shall be drawn up within 60 days following the communication of the financing decision taken by the Commission. The financing agreement shall:

(a) specify, in particular, the details of the Community's financial contribution, the financing arrangements and terms and the general and specific provisions relating to the programme or project concerned, including expected outcomes and results; and

(b) make adequate provision for appropriations to cover cost increases, contingencies, audits and evaluations.

3.  Any unexpended balance left upon closure of the accounts of programmes and projects within the timeframe for commitments of the multi-annual financial framework of cooperation from which the programmes and projects have been funded shall accrue to the ACP State or the relevant organisation or body at regional or intra-ACP level.

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Article 18

Overrun

1.  Once it appears that there is a risk of cost over-runs over and above the financing available under the financing agreement, the ►M10  relevant Authorising Officer ◄ shall notify the Commission and request its prior approval on the measures which the ►M10  relevant Authorising Officer ◄ intends to take in order to cover such cost over-runs, either by reducing the scale of the programme or project or by calling on national or other non-Community resources.

2.  If it is not possible to reduce the scale of the programme or project or to cover the over-runs with other resources, the Commission, acting on behalf of the Community, may, on the basis of a reasoned request from the ►M10  relevant Authorising Officer ◄ , take an additional financing decision on resources from the indicative programme.

Article 19

Retroactive financing

1.  In order to ensure early project start-up, avoid gaps between sequential projects and prevent delays, ►M10  the ACP States or the relevant organisation or body at regional or intra-ACP level ◄ may, on completion of project appraisal and before the financing decision is taken, pre-finance activities linked to the start-up of programmes, preliminary and seasonal work, orders for equipment with long delivery lead times as well as some on-going operations. Such expenditure shall satisfy the procedures provided for in this Agreement.

2.  Any expenditure referred to in paragraph 1 shall be mentioned in the financing proposal and shall be without prejudice to the financing decision taken by the Commission on behalf of the Community.

3.  Expenditure made by ►M10  the ACP State or the relevant organisation or body at regional or intra-ACP level ◄ under this Article shall be retroactively financed under the programme or project, once the financing agreement is signed.

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CHAPTER 4

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IMPLEMENTATION

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Article 19a

Implementation measures

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1.  Implementation of programmes and projects financed from the multi-annual financial framework of cooperation under this Agreement shall consist chiefly of the following:

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(a) awarding of procurement contracts;

(b) awarding of grants;

(c) performance by direct labour;

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(d) direct payments as budgetary support, support for sectoral programmes, debt relief and support to mitigate the adverse effects resulting from short-term exogenous shocks including fluctuations of exports earnings.

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2.  In the context of this Annex, procurement contracts are contracts for pecuniary interest concluded in writing in order to obtain, against payment of a price, the supply of movable assets, the execution of works or the provision of services.

3.  In the context of this Annex, grants are direct financial contributions awarded by way of a donation in order to finance:

(a) either an action designed to help achieve an objective of this Agreement or of a programme or project adopted in accordance with this Agreement, or

(b) the functioning of a body which pursues such an objective.

3.  Grants shall be covered by a written contract.

Article 19b

Tender procedure with suspension clause

In order to ensure early project start-up, ►M10  the ACP States or the relevant organisation or body at regional or intra-ACP level ◄ may, in all duly substantiated cases and in agreement with the Commission, issue invitations to tender for all types of contracts with a suspension clause, once project appraisal is completed but before the financing decision is taken. Such a provision must be mentioned in the financing proposal.

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Article 19c

Awarding contracts, awarding grants and performing contracts

1.  Except as provided for in Article 26, contracts and grants shall be attributed and implemented according to Community rules and, except in the specific cases provided for by these rules, according to the standard procedures and documentation set and published by the Commission for the purposes of implementing cooperation actions with third countries and in force at the time the procedure in question is launched.

2.  In decentralised management, where a joint assessment shows that the procedures for awarding contracts and grants in the ACP State or the recipient region or the procedures approved by the fund providers are in accordance with the principles of transparency, proportionality, equal treatment and non-discrimination and preclude any kind of conflict of interest, the Commission shall use these procedures, in accordance with the Paris Declaration and without prejudice to Article 26, in full respect of the rules governing the exercise of its powers in this field.

3.  The ACP State or the relevant organisation or body at regional or intra-ACP level shall undertake to check regularly that the operations financed from the multi-annual financial framework of cooperation under this Agreement have been properly implemented, to take appropriate measures to prevent irregularities and fraud, and, if necessary, to take legal action to recover unduly paid funds.

4.  In decentralised management, contracts are negotiated, established, signed and performed by the ACP States or the relevant organisation or body at regional or intra-ACP level. These States or the relevant organisation or body at regional or intra-ACP level may, however, call upon the Commission to negotiate, establish, sign and perform contracts on their behalf.

5.  Pursuant to the commitment referred to in Article 50 of this Agreement, contracts and grants financed from resources from the multi-annual financial framework of cooperation with the ACP shall be performed in accordance with internationally recognised basic standards in the field of labour law.

6.  An expert group of representatives of the Secretariat of the ACP Group of States and the Commission shall be set up to identify, at the request of one or other of the parties, any appropriate alterations and to suggest amendments and improvements to the rules and procedures referred to in paragraphs 1 and 2.

6.  This expert group shall also submit a periodic report to the ACP-EC Development Finance Cooperation Committee to assist it in its task of examining the problems surrounding the implementation of development cooperation activities and proposing appropriate measures.

Article 20

Eligibility

Save where a derogation is granted in accordance with Article 22, and without prejudice to Article 26:

1. Participation in procedures for the awarding of procurement contracts or grants financed from the multi-annual financial framework of cooperation under this Agreement shall be open to:

(a) all natural persons who are nationals of, or legal persons who are established in, an ACP State, a Member State of the European Community, an official candidate country of the European Community or a Member State of the European Economic Area;

(b) all natural persons who are nationals of, or legal persons who are established in, a Least Developed Country as defined by the United Nations.

1a. Participation in procedures for the awarding of procurement contracts or grants financed from the multi-annual financial framework of cooperation under this Agreement shall be open to all natural persons who are nationals of, or legal persons established in, any country other than those referred to in paragraph 1, where reciprocal access to external assistance has been established. Reciprocal access in the Least Developed Countries as defined by the United Nations shall be automatically granted to the OECD/DAC members.

Reciprocal access shall be established by means of a specific Commission decision concerning a given country or a given regional group of countries. The decision shall be adopted by the Commission in agreement with the ACP States and shall be in force for a minimum period of one year.

2. Services under a contract financed from the multi-annual financial framework of cooperation under this Agreement may be provided by experts of any nationality, without prejudice to the qualitative and financial requirements set out in the Community's procurement rules.

3. Supplies and materials purchased under a contract financed from the multi-annual financial framework of cooperation under this Agreement must originate in a State that is eligible under paragraphs 1 or 1a. In this context, the definition of the concept of ‘originating products’ shall be assessed by reference to the relevant international agreements, and supplies originating in the Community shall include supplies originating in the Overseas Countries and Territories.

4. Participation in procedures for the awarding of procurement contracts or grants financed from the multi-annual financial framework of cooperation under this Agreement shall be open to international organisations.

5. Whenever the multi-annual financial framework of cooperation under this Agreement finances an operation implemented through an international organisation, participation in procedures for the awarding of procurement contracts or grants shall be open to all natural and legal persons who are eligible under paragraphs 1 or 1a, and to all natural and legal persons who are eligible according to the rules of the organisation, care being taken to ensure equal treatment of all donors. The same rules apply for supplies and materials.

6. Whenever the multi-annual financial framework of cooperation under this Agreement finances an operation implemented as part of a regional initiative, participation in procedures for the awarding of procurement contracts or grants shall be open to all natural and legal persons who are eligible under paragraphs 1 or 1a, and to all natural and legal persons from a country participating in the relevant initiative. The same rules apply for supplies and materials.

7. Whenever the multi-annual financial framework of cooperation under this Agreement finances an operation co-financed with a third State, participation in procedures for the awarding of procurement contracts or grants shall be open to all natural and legal persons eligible under paragraphs 1 or 1a, and to all persons eligible under the rules of the above mentioned third State. The same rules apply for supplies and materials.

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Article 22

Derogations

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1.  In exceptional duly substantiated circumstances, natural or legal persons from third countries not eligible under Article 20 may be authorised to participate in procedures for the awarding of procurement contracts or grants financed by the Community from the multi-annual financial framework of cooperation under this Agreement at the justified request of the ACP State or the relevant organisation or body at regional or intra-ACP level. The ACP State or the relevant organisation or body at regional or intra-ACP level shall, on each occasion, provide the Commission with the information needed to decide on such derogation, with particular attention being given to:

(a) the geographical location of the ACP State or region concerned;

(b) the competitiveness of contractors, suppliers and consultants from the Member States and the ACP States;

(c) the need to avoid excessive increases in the cost of performance of the contract;

(d) transport difficulties or delays due to delivery times or other similar problems;

(e) technology that is the most appropriate and best suited to local conditions;

(f) cases of extreme urgency;

(g) the availability of products and services in the relevant markets.

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2.  In the case of projects financed from the Investment Facility, the procurement rules of the Bank shall apply.

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Article 24

Implementation by direct labour

1.  In the case of direct labour operations, programmes and projects shall be implemented through public or semi-public agencies or departments of the ACP State or States concerned or by the legal person responsible for executing the operation.

2.  The Community shall contribute to the costs of the department involved by providing the equipment and/or materials that it lacks and/or resources to allow it to acquire additional staff required in the form of experts from within the ACP States concerned or other ACP States. The Community's participation shall cover only costs incurred by supplementary measures and temporary expenditure relating to execution that are strictly confined to the requirements of the programmes and projects in question.

3.  Programme estimates implementing direct-labour operations must comply with the Community rules, procedures and standard documents laid down by the Commission, as applicable at the time of approval of the programme estimates.

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Article 26

Preferences

▼M10

1.  Measures shall be taken to encourage the widest participation of the natural and legal persons of ACP States in the performance of contracts financed by the multi-annual financial framework of cooperation under this Agreement in order to permit the optimisation of the physical and human resources of those States. To this end:

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(a) for works contracts of a value of less than EUR 5 000 000, tenderers from the ACP States, provided that at least one quarter of the capital stock and management staff originates from one or more ACP States, shall be accorded a 10 % price preference where tenders of an equivalent economic, technical and administrative quality are compared;

(b) for supply contracts, irrespective of the value of the supplies, tenderers from the ACP States who offer supplies of at least 50 % in contract value of ACP origin, shall be accorded a 15 % price preference where tenders of equivalent economic, technical and administrative quality are compared;

(c) in respect of service contracts, where tenders of equivalent economic and technical quality are compared, preference shall be given to:

(i) experts, institutions or consultancy companies or firms from ACP States with the required competence;

(ii) offers submitted by ACP firms, either individually or in a consortium with European partners; and

(iii) offers presented by European tenderers with ACP sub-contractors or experts;

(d) where subcontracting is envisaged, preference shall be given by the successful tenderer to natural persons, companies and firms of ACP States capable of performing the contract required on similar terms; and

(e) the ACP State may, in the invitation to tender, offer prospective tenderers assistance from other ACP States' companies or firms or national experts or consultants selected by mutual agreement. This cooperation may take the form either of a joint venture, or of a subcontract or of on-the-job training of trainees.

2.  Where two tenders are acknowledged to be equivalent on the basis of the criteria stated above, preference shall be given:

(a) to the tenderer of an ACP State; or

(b) if no such tender is forthcoming, to the tenderer who:

(i) allows for the best possible use of the physical and human resources of the ACP States;

(ii) offers the greatest subcontracting possibilities for ACP companies, firms or natural persons; or

(iii) is a consortium of natural persons, companies and firms from ACP States and the Community.

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Article 30

Settlement of disputes

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Any dispute arising between the authorities of an ACP State or the relevant organisation or body at regional or intra-ACP level and a contractor, supplier or provider of services during the performance of a contract financed by the multi-annual financial framework of cooperation under this Agreement shall:

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(a) in the case of a national contract, be settled in accordance with the national legislation of the ACP State concerned; and

(b) in the case of a transnational contract be settled either:

(i) if the Parties to the contract so agree, in accordance with the national legislation of the ACP State concerned or its established international practices; or

(ii) by arbitration in accordance with the procedural rules which will be adopted by decision of the Council of Ministers at the first meeting following the signing of this Agreement, upon the recommendation of the ACP-EC Development Finance Cooperation Committee.

Article 31

Tax and customs arrangements

1.  The ACP States shall apply to contracts financed by the Community tax and customs arrangements no less favourable than those applied by them to the most favoured States or international development organisations with which they have relations. For the purpose of determining the most-favoured-nation (MFN) treatment, account shall not be taken of arrangements applied by the ACP State concerned to other ACP States, or to other developing countries.

2.  Subject to the above provisions the following shall apply to contracts financed by the Community:

(a) the contract shall not be subject in the beneficiary ACP State to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the laws in force in the ACP State and a fee corresponding to the service rendered may be charged for it;

(b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the ACP State concerned, provided that the natural or legal persons who realise such profit and/or income have a permanent place of business in that State, or that the performance of the contract takes longer than six months;

(c) enterprises which must import professional equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the national legislation of the beneficiary ACP State in respect of the said equipment;

(d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary ACP State or States in accordance with its national legislation free of fiscal, import and customs duties and of other charges having equivalent effect where these duties and charges do not constitute remuneration for services rendered;

(e) imports under supply contracts shall be admitted into the beneficiary ACP State without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the ACP State concerned shall be concluded on the basis of the ex-works price of the supplies to which may be added such internal fiscal charges as may be applicable to those supplies in the ACP State;

(f) fuels, lubricants and hydrocarbon binders and, in general, all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the national legislation in force in the beneficiary ACP State; and

(g) personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limit of the national legislation in force in the beneficiary ACP State.

3.  Any matter not covered by the above provisions on tax and customs arrangements shall remain subject to the national legislation of the ACP State concerned.



CHAPTER 5

MONITORING AND EVALUATION

Article 32

Objectives

The objective of monitoring and evaluation shall consist in the regular assessment of development operations (preparation, implementation and subsequent operation) with a view to improving the development effectiveness of on-going and future operations.

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Article 33

Modalities

1.  Without prejudice to evaluations carried out by the ACP States or the relevant organisation or body at regional or intra-ACP level or the Commission, this work will be done jointly by the ACP State(s) or the relevant organisation or body at regional or intra-ACP level and the Community. The ACP-EC Development Finance Cooperation Committee shall ensure the joint character of the joint monitoring and evaluation operations. In order to assist the ACP-EC Development Finance Cooperation Committee, the Commission and the ACP General Secretariat shall prepare and implement the joint monitoring and evaluations and report to the Committee. The Committee shall, at its first meeting after the signature of the Agreement, fix the operational modalities aimed at ensuring the joint character of the operations and shall, on a yearly basis, approve the work programme.

2.  Monitoring and evaluation activities shall notably:

(a) provide regular and independent assessments of the operations and activities funded from the multi-annual financial framework of cooperation under this agreement by comparing results with objectives; and thereby

(b) enable the ACP States or the relevant organisation or body at regional or intra-ACP level and the Commission and the joint institutions, to feed the lessons of experience back into the design and execution of future policies and operations.

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CHAPTER 6

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FUND-RESOURCE MANAGEMENT AND EXECUTING AGENTS

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Article 34

The Commission

1.  The Commission shall undertake the financial execution of operations carried out with resources from the multi-annual financial framework of cooperation under this Agreement, with the exception of the Investment Facility and interest rate subsidies, using the following main methods of management:

(a) centralised management;

(b) decentralised management.

2.  As a general rule, the financial execution of the resources from the multi-annual financial framework of cooperation under this agreement by the Commission shall be decentralised.

2.  In this instance, the execution duties shall be carried out by the ACP States in accordance with Article 35.

3.  In order to carry out the financial execution of the resources from the multi-annual financial framework of cooperation under this Agreement, the Commission shall delegate its executive powers within its own departments. The Commission shall inform the ACP States and the ACP-EC Development Finance Cooperation Committee of this delegation of tasks.

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Article 35

National Authorising Officer

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1.  The Government of each ACP State shall appoint a National Authorising Officer to represent it in all operations financed from the resources from the multi-annual financial framework of cooperation under this Agreement managed by the Commission and the Bank. The National Authorising Officer shall appoint one or more deputy National Authorising Officers to replace him when he is unable to carry out his duties and shall inform the Commission of this appointment. Wherever the conditions regarding institutional capacity and sound financial management are met, the National Authorising Officer may delegate his functions for implementation of the programmes and projects concerned to the body responsible within the national administration. The National Authorising Officer shall inform the Commission of any such delegation.

1.  In the case of regional programmes and projects, the relevant organisation or body shall designate a Regional Authorising Officer whose duties correspond, mutatis mutandis, to those of the National Authorising Officer.

1.  In the case of Intra-ACP programmes and projects, the ACP Committee of Ambassadors shall designate an Intra-ACP Authorising Officer, whose duties correspond, mutatis mutandis, to those of the National Authorising Officer. In the event that the ACP Secretariat is not the Authorising Officer, the Committee of Ambassadors shall be informed in conformity with the financing agreement of the implementation of programmes and projects.

1.  When the Commission becomes aware of problems in carrying out procedures relating to management of resources from the multi-annual financial framework of cooperation under this Agreement, it shall, in conjunction with the relevant Authorising Officer, make all contacts necessary to remedy the situation and take any appropriate steps.

1.  The relevant Authorising Officer shall assume financial responsibility only for the executive tasks entrusted to him.

1.  Where resources from the multi-annual financial framework of cooperation under this agreement are managed in a decentralised way and subject to any additional powers that might be granted by the Commission, the relevant Authorising Officer shall:

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(a) be responsible for the coordination, programming, regular monitoring and annual, mid-term and end-of-term reviews of implementation of cooperation, and for coordination with donors;

(b) in close cooperation with the Commission, be responsible for the preparation, submission and appraisal of programmes and projects;

(c) prepare tender dossiers and, where appropriate, the documents for calls for proposals;

(d) submit tender dossiers and, where appropriate, documents for calls for proposals, to the Commission for approval before launching invitations to tender and, where appropriate, calls for proposals;

(e) in close cooperation with the Commission, launch invitations to tender and, where appropriate, calls for proposals;

(f) receive tenders and, if applicable, proposals, and transmit copies of tenders to the Commission; preside over the opening of tenders and decide on the results of their examination within the period of validity of the tenders, taking account of the time required for approval of contracts;

(g) invite the Commission to the opening of tenders and, if applicable, proposals and notify the Commission of the results of the examination of tenders and proposals for approval of the proposals for the award of contracts and grants;

(h) submit contracts and programme estimates and any addenda thereto to the Commission for approval;

(i) sign the contracts and addenda thereto approved by the Commission;

(j) clear and authorise expenditure within the limits of the funds assigned to him; and

(k) during the execution operations, make any adaptation arrangements necessary to ensure the proper execution of approved programmes or projects from the economic and technical viewpoint.

2.  The ►M10  relevant Authorising Officer ◄ shall, during the execution of operations and subject to the requirement to inform the Commission, decide on:

(a) technical adjustments and alterations to programmes and projects in matters of detail so long as they do not affect the technical solution adopted and remain within the limits of the reserve for adjustments provided for in the financing agreement;

(b) changes of site for multiple-unit programmes or projects where justified on technical, economic or social grounds;

(c) imposition or remission of penalties for delay;

(d) acts discharging guarantors;

(e) purchase of goods, irrespective of their origin, on the local market;

(f) use of construction equipment and machinery not originating in the Member States or ACP States provided there is no production of comparable equipment and machinery in the Member States or ACP States;

(g) subcontracting;

(h) final acceptance, provided that the Commission is present at provisional acceptance, endorses the corresponding minutes and, where appropriate, is present at the final acceptance, in particular where the extent of the reservations recorded at the provisional acceptance necessitates major additional work; and

(i) hiring of consultants and other technical assistance experts.

Article 36

Head of Delegation

1.  The Commission shall be represented in each ACP State or in each regional grouping which expressly so requests, by a delegation under the authority of a Head of Delegation, with the approval of the ACP State or States concerned. Appropriate measures shall be taken in any case in which a Head of Delegation is appointed to a group of ACP States. The Head of Delegation shall represent the Commission in all spheres of its competence and in all its activities.

2.  The Head of Delegation shall be the main contact for ACP States and bodies or organisations eligible for financial support under the Agreement. He shall cooperate and work in close cooperation with the National Authorising Officer.

3.  The Head of Delegation shall have the necessary instructions and delegated powers to facilitate and expedite all operations under the Agreement.

4.  On a regular basis, the Head of Delegation shall inform the national authorities of Community activities which may directly concern cooperation between the Community and the ACP States.

Article 37

Payments

1.  For the purpose of effecting payments in the national currencies of the ACP States, accounts denominated in the currencies of the Members States or in euro may be opened in the ACP States by and in the name of the Commission with a national public or semi-public financial institution chosen by agreement between the ACP State and the Commission. This institution shall exercise the functions of National Paying Agent.

2.  The National Paying Agent shall receive no remuneration for its services and no interest shall be payable by it on deposited funds. The local accounts shall be replenished by the Commission in the currency of one of the Member States or in euro, based on estimates of future cash requirements, which shall be made sufficiently in advance to avoid the need for pre-financing by ►M10  ACP States or the relevant organisation or body at regional or intra-ACP level ◄ and to prevent delayed disbursements.

3.  (deleted)

4.  Payments shall be made by the Commission in accordance with the rules laid down by the Community and the Commission, where appropriate after the expenditure has been cleared and authorised by the ►M10  relevant Authorising Officer ◄ .

5.  (deleted)

6.  The procedures for clearance, authorisation and payment of expenditure must be completed within a period of 90 days from the date on which the payment becomes due. The ►M10  relevant Authorising Officer ◄ shall process and deliver the payment authorisation to the Head of Delegation not later than 45 days before the due date.

7.  Claims for delayed payments shall be borne by ►M10  the ACP State concerned or the relevant organisation or body at regional or intra-ACP level ◄ , and by the Commission from its own resources, for that part of the delay for which each Party is responsible in accordance with the above procedures.

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ANNEX VI

LIST OF LDLICS

The following lists comprise ACP least-developed, landlocked and Island States:



LEAST-DEVELOPED ACP STATES

Article 1

Under this Agreement, the following countries shall be considered least-developed ACP States:

Angola

Benin

Burkina Faso

Burundi

Republic of Cape Verde

Central African Republic

Chad

Comoro Islands

Democratic Republic of Congo

Djibouti

Ethiopia

Eritrea

Gambia

Guinea

Guinea (Bissau)

Guinea (Equatorial)

Haïti

Kiribati

Lesotho

Liberia

Malawi

Mali

Mauritania

Madagascar

Mozambique

Niger

Rwanda

Samoa

SâoTome and Principe

Sierra Leone

Solomon Islands

Somalia

Sudan

Tanzania

Tuvalu

Togo

Uganda

Vanuatu

Zambia

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Timor Leste

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LANDLOCKED ACP STATES

Article 2

Specific measures and provisions have been made to support landlocked ACP States in their efforts to overcome the geographical difficulties and the other obstacles hampering their development so as to enable them to speed up their respective rates of growth.

Article 3

The landlocked ACP States are:

Botswana

Burkina Faso

Burundi

Central African Republic

Chad

Ethiopia

Lesotho

Malawi

Mali

Niger

Rwanda

Swaziland

Uganda

Zambia

Zimbabwe



ISLAND ACP STATES

Article 4

Specific measures and provisions have been made to support island ACP States in their efforts to overcome the natural and geographical difficulties and the other obstacles hampering their development so as to enable them to speed up their respective rates of growth.

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Article 5

List of island ACP States:

Antigua and Barbuda

Bahamas

Barbados

Cape Verde

Comoros

Cook Islands

Dominica

Dominican Republic

Fiji

Grenada

Haiti

Jamaica

Kiribati

Madagascar

Marshall Islands

Mauritius

Micronesia

Nauru

Niue

Palau

Papua New Guinea

Saint Kitts and Nevis

Saint Lucia

Saint Vincent and the Grenadines

Samoa

São Tomé and Principe

Seychelles

Solomon Islands

Tonga

Trinidad and Tobago

Tuvalu

Vanuatu.

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Timor Leste.

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ANNEX VII

Political dialogue as regards human rights, democratic principles and the rule of law



Article 1

Objectives

1.  The consultations envisaged in Article 96(2)(a) will take place, except in cases of special urgency, after exhaustive political dialogue as envisaged in Article 8 and Article 9(4) of the Agreement.

2.  Both Parties should conduct such political dialogue in the spirit of the Agreement and bearing in mind the Guidelines for ACP-EU Political Dialogue established by the Council of Ministers.

3.  Political Dialogue is a process which should foster the strengthening of ACP-EU relations and contribute towards achieving the objectives of the Partnership.

Article 2

Intensified Political Dialogue preceding consultations under Article 96 of the Agreement

1.  Political dialogue concerning respect for human rights, democratic principles and the rule of law shall be conducted pursuant to Article 8 and Article 9(4) of the Agreement and within the parameters of internationally recognised standards and norms. In the framework of this dialogue the Parties may agree on joint agendas and priorities.

2.  The Parties may jointly develop and agree specific benchmarks or targets with regard to human rights, democratic principles and the rule of law within the parameters of internationally agreed standards and norms, taking into account special circumstances of the ACP State concerned. Benchmarks are mechanisms for reaching targets through the setting of intermediate objectives and timeframes for compliance.

3.  The political dialogue set out in paragraphs 1 and 2 shall be systematic and formal and shall exhaust all possible options prior to consultations under Article 96 of the Agreement.

4.  Except for cases of special urgency as defined in Article 96(2)(b) of the Agreement, consultations under Article 96 may also go ahead without preceding intensified political dialogue, when there is persistent lack of compliance with commitments taken by one of the Parties during an earlier dialogue, or by a failure to engage in dialogue in good faith.

5.  Political dialogue under Article 8 of the Agreement shall also be utilised between the Parties to assist countries subject to appropriate measures under Article 96 of the Agreement, to normalise the relationship.

Article 3

Additional rules on consultation under Article 96 of the Agreement

1.  The Parties shall strive to promote equality in the level of representation during consultations under Article 96 of the Agreement.

2.  The Parties are committed to transparent interaction before, during and after the formal consultations, bearing in mind the specific benchmarks and targets referred to in Article 2(2) of this Annex.

3.  The Parties shall use the 30-day notification period as provided for in Article 96(2) of the Agreement for effective preparation by the Parties, as well as for deeper consultations within the ACP Group and among the Community and its Member States. During the consultation process, the Parties should agree flexible timeframes, whilst acknowledging that cases of special urgency, as defined in Article 96(2)(b) of the Agreement and Article 2(4) of this Annex, may require an immediate reaction.

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4.  The parties acknowledge the role of the ACP Group in political dialogue based on modalities to be determined by the ACP Group and communicated to the European Community and its Member States. The ACP Secretariat and the European Commission shall exchange all required information on the process of political dialogue carried out before, during and after consultations undertaken under Articles 96 and 97 of this Agreement.

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5.  The Parties acknowledge the need for structured and continuous consultations under Article 96 of the Agreement. The Council of Ministers may develop further modalities to this end.

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PROTOCOLS

PROTOCOL 1

On the operating expenditure of the Joint Institutions

1.

The Member States and the Community, on the one hand, and the ACP States, on the other, shall be responsible for such expenditure as they shall incur by reason of their participation in the meetings of the Council of Ministers and its dependent bodies, both with regard to staff, travel and subsistence expenditure and to postal and telecommunications expenses.

Expenditure in connection with interpreting at meetings, translation and reproduction of documents, and the practical arrangements for meetings (such as premises, equipment and messengers) of the joint institutions of the present Agreement shall be borne by the Community or by one of the ACP States, according to whether the meetings take place in the territory of a Member State or in that of an ACP State.

2.

The arbitrators appointed in accordance with Article 98 of the Agreement shall be entitled to a refund of their travel and subsistence expenditure. The latter shall be determined by the Council of Ministers.

One half of travel and subsistence expenditure incurred by the arbitrators shall be borne by the Community and the other half by the ACP States. Expenditure relating to any registry set up by the arbitrators, to preparatory inquiries into disputes, and to the organisation of hearings (such as premises, personnel and interpreting) shall be borne by the Community. Expenditure relating to special inquiries shall be settled together with the other costs and the Parties shall deposit advances as determined by an order of the arbitrators.

3.

The ACP States shall set up a Fund, which will be managed by their General Secretariat, for the purpose of contributing to the financing of the expenses incurred by ACP participants at meetings of the Joint Parliamentary Assembly and the Council of Ministers.

The ACP States shall contribute to this Fund. With the aim of encouraging the active participation of all ACP States in the dialogue conducted within the ACP-EC institutions, the Community shall make a contribution to this Fund as provided for in the Financial Protocol (EUR 4 million according to the First Financial Protocol).

To be eligible for the Fund expenses must comply with the following conditions as well as those laid down in paragraph 1:

 They must be incurred by parliamentarians or, in their absence, other such ACP representatives travelling from the country they represent in order to take part in sessions of the Joint Parliamentary Assembly, meetings of working parties or missions under their aegis, or as a result of the participation of these same representatives and representatives of ACP civil society and economic and social operators in consultation meetings held under Articles 15 and 17 of the Agreement.

 Decisions on the nature, organisation, frequency and location of meetings, missions and working groups must be taken in accordance with the rules of procedure of the Council of Ministers and the Joint Parliamentary Assembly.

4.

Consultation meetings and meetings of ACP-EU economic and social operators shall be0 organised by the Economic and Social Committee of the European Union. In this specific instance, the Community's contribution to cover the participation of ACP economic and social operators shall be paid directly to the Economic and Social Committee.

The ACP Secretariat, the Council of Ministers and the Joint Parliamentary Assembly may, in agreement with the Commission, delegate the organisation of consultation meetings of ACP civil society to representative organisations approved by the Parties.

PROTOCOL 2

On privileges and immunities



THE PARTIES

DESIRING, by the conclusion of a Protocol on privileges and immunities, to facilitate the smooth functioning of the Agreement, the preparation of its work and implementation of the measures adopted for its application;

WHEREAS it is therefore necessary to specify the privileges and immunities which may be claimed by persons participating in work relating to the application of the Agreement and to the arrangements applicable to official communications connected with such work, without prejudice to the provisions of the Protocol on the privileges and immunities of the European Communities, signed in Brussels on 8 April 1965;

WHEREAS it is also necessary to lay down the treatment to be accorded to the property, funds and assets of the Council of ACP Ministers, and its staff;

WHEREAS the Georgetown Agreement of 6 June 1975 constituted the ACP Group of States and instituted a Council of ACP Ministers, and a Committee of Ambassadors; whereas the organs of the ACP Group of States are to be serviced by the Secretariat of the ACP States;

HAVE AGREED upon the following provisions, which shall be annexed to the Agreement:



CHAPTER 1

PERSONS TAKING PART IN THE WORK OF THE AGREEMENT

Article 1

The representatives of the Governments of the Member States and of the ACP States and the Representatives of the Institutions of the European Communities, and also their advisers and experts and the members of the staff of the Secretariat of the ACP States taking part, in the territory of the Member States or of the ACP States, in the work either of the institutions of the Agreement or of the coordinating bodies, or in work connected with the application of the Agreement, shall enjoy the customary privileges, immunities and facilities while carrying out their duties and while travelling to or from the place at which they are required to carry out such duties.

The preceding paragraph shall also apply to members of the Joint Parliamentary Assembly of the Agreement, to the arbitrators who may be appointed under the Agreement, to members of the consultative bodies of the economic and social sectors which may be set up, to the officials and employees of these institutions, and also to the members of the agencies of the European Investment Bank and its staff, and to the staff of the Centre for the Development of Enterprise and the Centre for the Development of Agriculture.



CHAPTER 2

PROPERTY, FUNDS AND ASSETS OF THE COUNCIL OF ACP MINISTERS

Article 2

The premises and buildings occupied by the Council of ACP Ministers for official purposes shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation.

Except when required for the purposes of investigating an accident caused by a motor vehicle belonging to the said Council or being used on its account, or in the event of an infringement of road traffic regulations or of an accident caused by such a vehicle, the property and assets of the Council of ACP Ministers shall not be the subject of any administrative or legal measures of constraints without the authorisation of the Council of Ministers set up under the Agreement.

Article 3

The archives of the Council of ACP Ministers shall be inviolable.

Article 4

The Council of ACP Ministers, its assets, income and other property shall be exempt from all direct taxes.

The host State shall, wherever possible, take the appropriate measures to remit or refund the amount of indirect taxes or sales taxes included in the price of movable or immovable property, where the Council of ACP Ministers makes, strictly for its official use, substantial purchases, the price of which includes taxes of this kind.

No exemption shall be granted in respect of taxes, charges, duties or fees which represent charges for services rendered.

Article 5

The Council of ACP Ministers shall be exempt from all customs duties, prohibitions and restrictions on imports in respect of articles intended for its official use; articles so imported may not be sold or otherwise disposed of, whether or not in return for payment, in the territory of the country into which they have been imported, except under conditions approved by the Government or that country.



CHAPTER 3

OFFICIAL COMMUNICATIONS

Article 6

For their official communications and the transmission of all their documents, the European Community, the institutions of the Agreement and the coordinating bodies shall enjoy in the territory of the States party to the Agreement the treatment accorded to international organisations.

Official correspondence and other official communications of the European Community, the joint institutions of the Agreement and the coordinating bodies shall not be subject to censorship.



CHAPTER 4

STAFF OF THE SECRETARIAT OF THE ACP STATES

Article 7

1.  The Secretary or Secretaries and Deputy Secretary or Deputy Secretaries of the Council of ACP Ministers and the other permanent members of the staff of senior rank as designated by the ACP States, of the Council of ACP Ministers shall enjoy, in the State in which the Council of ACP Ministers is established, under the responsibility of the Chairman-in-Office of the Committee of ACP Ambassadors, the advantages accorded to the diplomatic staff of diplomatic missions. Their spouses and their children under age living in their household shall be entitled, under the same conditions, to the advantages accorded to the spouses and children under age of such diplomatic staff.

2.  Permanent ACP staff members not referred to in paragraph 1 shall be exempted by their host country from any taxes on salaries, emoluments or allowances paid to them by the ACP States from the day on which such income becomes subject to tax levied for the benefit of the ACP States.

The above provision shall not apply either to pensions paid the ACP Secretariat to its former staff members or their dependants, or to salaries, emoluments or allowances paid to its local staff.

Article 8

The State in which the Council of ACP Ministers is established shall grant immunity from legal proceedings to permanent members of the staff of the Secretariat of the ACP States, apart from those referred to in paragraph 1 of Article 7, only in respect of acts done by them in the performance of their official duties. Such immunity shall not, however, apply to infringements of road traffic regulations by a permanent member of the staff of the Secretariat of the ACP States or to damage caused by a motor vehicle belonging to, or driven by, him or her.

Article 9

The names, positions and addresses of the Chairman-in-Office of the Committee of ACP Ambassadors, the Secretary or Secretaries and Deputy Secretary or Deputy Secretaries of the Council of ACP Ministers and of the permanent members of the staff of the Secretariat of the ACP States shall be communicated periodically by the President of the Council of ACP Ministers to the Government of the State in whose territory the Council of ACP Ministers is established.



CHAPTER 5

COMMISSION DELEGATIONS IN THE ACP STATES

Article 10

1.  The Commission Head of Delegation and staff appointed to the Delegation, the Delegations, to the exception of locally recruited staff, shall be exempted from any direct taxes in the ACP State where they are in post.

2.  Article 31(2)(g) of Annex IV, chapter 4 shall also apply to the staff referred to in paragraph 1.



CHAPTER 6

GENERAL PROVISIONS

Article 11

The privileges, immunities and facilities provided for in this Protocol shall be accorded to those concerned solely in the interests of the proper execution of their official duties.

Each institution or body referred to in this Protocol shall be required to waive immunity wherever its consider that the waiver of such immunity is not contrary to its own interests.

Article 12

Article 98 of the Agreement shall apply to disputes relating to this Protocol.

The Council of ACP Ministers and the European Investment Bank may be party to proceedings during an arbitration procedure.

PROTOCOL 3

On South Africa



Article 1

Qualified Status

1.  The participation of South Africa in this Agreement is subject to the qualifications set out in this Protocol.

2.  The provisions of the bilateral Agreement on Trade, Development and Cooperation between the European Community, its Member States and South Africa ►M10  as amended by the Agreement signed on 11 September 2009 ◄ , hereinafter referred as the ‘TDCA’, shall take precedence over the provisions of this Agreement.

Article 2

General Provisions, Political Dialogue and Joint Institutions

1.  The general, institutional and final provisions of this Agreement shall apply to South Africa.

2.  South Africa shall be fully associated in the overall political dialogue and participate in the joint institutions and bodies set out under this Agreement. However, in respect of decisions to be taken in relation to provisions that do not apply to South Africa under this Protocol, South Africa shall not take part in the decision-making process.

Article 3

Cooperation Strategies

The provisions on cooperation strategies of this Agreement shall apply to cooperation between the Community and South Africa.

Article 4

Financial Resources

1.  The provisions of this Agreement on development finance cooperation shall not apply to South Africa.

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2.  However, in derogation from this principle, South Africa shall have the right to participate in the ACP-EC development finance cooperation listed in Article 8 of this Protocol, on the basis of the principles of reciprocity and proportionality, understanding that South Africa's participation will be financed from the resources provided for under Title VII of the TDCA. Where resources from the TDCA are deployed for participation in operations in the framework of ACP-EC financial cooperation, South Africa will enjoy the right to participate fully in the decision-making procedures governing implementation of such aid.

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3.  South African natural or legal persons shall be eligible for award of contracts financed from the financial resources provided for under this Agreement. In this respect, South African natural or legal persons shall, however, not enjoy the preferences accorded to natural and legal persons from ACP States.

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4.  For the purpose of the investment financing provided for in Annex II, Chapter 1, to this Agreement, investment funds and financial and non-financial intermediaries established in South Africa can be eligible.

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Article 5

Trade Cooperation

1.  The provisions of this Agreement on economic and trade cooperation shall not apply to South Africa.

2.  Nonetheless, South Africa shall be associated as an observer in the dialogue between the Parties pursuant to Articles 34 to 40 of this Agreement.

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3.  This Protocol shall not prevent South Africa from negotiating and signing one of the Economic Partnership Agreements (EPA) provided for in Part 3, Title II of this Agreement if the other parties to that EPA so agree.

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Article 6

Applicability of Protocols and Declarations

The protocols and declarations annexed to this Agreement that relate to parts of the Agreement that are not applicable to South Africa, shall not apply to South Africa. All other declarations and protocols shall apply.

Article 7

Revision Clause

This Protocol may be revised by decision of the Council of Ministers.

Article 8

Applicability

Without prejudice to the previous Articles, the table hereunder sets out those Articles of the Agreement and its Annexes which shall apply to South Africa and those which shall not apply.



Applicable

Remarks

Not applicable

Preamble

 

 

Part I, Title I, Chapter 1: ‘Objectives, principles and actors’ (Articles 1 to 7)

 

 

Part I, Title II, ‘The political dimension’; Articles 8 to 13

 

 

Part 2, ‘Institutional provisions’; Articles 14 to 17

In accordance with Article 1 of this protocol, South Africa shall not have voting rights in any of the joint institutions or bodies in areas of the Agreement which are not applicable to South Africa.

 

Part 3, Title I, ‘Development strategies’.

 

 

 

In accordance with Article 5 above, South Africa shall be associated as an observer in the dialogue between the Parties pursuant to Articles 34 to 40.

Part 3, Title II, Economic and Trade Cooperation.

Article 75(i) (Investment promotion, support for the ACP-EU private sector dialogue on regional level), Article 78 (Investment protection)

In accordance with Article 4 above, South Africa shall have the right to participate in certain areas of development finance cooperation on the understanding that such participation will be fully financed from the resources provided for under Title VII of the TDCA. In accordance with Article 2 above, South Africa may participate in the ACP-EC Development Finance Cooperation Committee provided for in Article 83, without enjoying voting rights in relation to provisions that do not apply to South Africa.

Part 4, Development Finance Cooperation

Part 5, General Provisions for the Least Developed, Landlocked and Island ACP States, Articles 84 to 90

 

 

Part 6, Final Provisions, Articles 91 to 100

 

 

 

 

Annex I (Financial Protocol)

Annex II, Terms and conditions of Financing, Chapter 5 (link to Article 78 / investment protection)

In accordance with Article 4 above, South Africa shall have the right to participate in certain areas of development finance cooperation on the understanding that South Africa's participation will be fully financed from the resources provided for under Title VII of the TDCA.

Annex II, Terms and conditions of Financing, Chapters 1, 2, 3 and 4

Annex III, Institutional Support (CDE and CTA)

In accordance with Article 4 above, South Africa shall have the right to participate in certain areas of development finance cooperation on the understanding that South Africa's participation will be fully financed from the resources provided for under Title VII of the TDCA.

 

Annex IV, Implementation and Management Procedures: Articles 6 to 14 (Regional cooperation) Articles 20 to 32 (Competition and preference)

In accordance with Article 4 above, where resources from the TDCA are deployed for participation activities in the framework of ACP-EC financial cooperation, South Africa will enjoy the right to fully participate in the decision-making procedures governing implementation of such aid. South African natural and legal persons will moreover be eligible for participation in tenders for contracts financed from the financial resources of the Agreement. In this context, South African tenderers will not enjoy the preferences provided for tenderers from the ACP States.

Annex IV, Articles 1 to 5 (national programming); 15 to 19 (provisions relating to the project cycle), 27 (preference to ACP contractors) and 34 to 38 (Executing agents)

 

 

Annex V / trade regime during the preparatory period.

Annex VI; List of Least Developed, island and landlocked ACP States.

 

 

FINAL ACT



The plenipotentiaries of:

His Majesty the King of the Belgians,

Her Majesty the Queen of Denmark,

The President of the Federal Republic of Germany,

The President of the Hellenic Republic,

His Majesty the King of Spain,

The President of the French Republic,

The President of Ireland,

The President of the Italian Republic,

His Royal Highness the Grand Duke of Luxembourg,

Her Majesty the Queen of the Netherlands,

The Federal President of the Republic of Austria,

The President of the Portuguese Republic

The President of the Republic of Finland,

The Government of the Kingdom of Sweden,

Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland,

Contracting Parties to theTreaty establishing the European Community, hereinafter referred to as ‘the Community’, the States of the Community being hereinafter referred to as ‘Member States’,

and of the Council of the European Union and the Commission of the European Communities,

on the one part, and

The plenipotentiaries of:

The President of the Republic of Angola,

Her Majesty the Queen of Antigua and Barbuda,

The Head of State of the Commonwealth of the Bahamas,

The Head of State of Barbados,

Her Majesty the Queen of Belize,

The President of the Republic of Benin,

The President of the Republic of Botswana,

The President of Burkina Faso,

The President of the Republic of Burundi,

The President of the Republic of Cameroon,

The President of the Republic of Cape Verde,

The President of the Central African Republic,

The President of the Republic of Chad,

The President of the Islamic Federal Republic of the Comoros,

The President of the Democratic Republic of Congo,

The President of the Republic of Congo,

The Government of the Cook Islands

The President of the Republic of Côte d'Ivoire,

The President of the Republic of Djibouti,

The Government of the Commonwealth of Dominica,

The President of the Dominican Republic,

The President of the State of Eritrea,

The President of the Republic of Equatorial Guinea,

The President of the Federal Democratic Republic of Ethiopia,

The President of the Sovereign Democratic Republic of Fiji,

The President of the Gabonese Republic,

The President and Head of State of the Republic of The Gambia,

The President of the Republic of Ghana,

Her Majesty the Queen of Grenada,

The President of the Republic of Guinea,

The President of the Republic of Guinea-Bissau,

The President of the Republic of Guyana,

The President of the Republic of Haiti,

The Head of State of Jamaica,

The President of the Republic of Kenya,

The President of the Republic of Kiribati,

His Majesty the King of the Kingdom of Lesotho,

The President of the Republic of Liberia,

The President of the Republic of Madagascar,

The President of the Republic of Malawi,

The President of the Republic of Mali,

The Government of the Republic of the Marshall Islands,

The President of the Islamic Republic of Mauritania,

The President of the Republic of Mauritius,

The Government of the Federated States of Micronesia,

The President of the Republic of Mozambique,

The President of the Republic of Namibia,

The Government of the Republic of Nauru,

The President of the Republic of Niger,

The President of the Federal Republic of Nigeria,

The Government of Niue,

The Government of the Republic of Palau,

Her Majesty the Queen of the Independent State of Papua New Guinea,

The President of the Rwandese Republic,

Her Majesty the Queen of Saint Kitts and Nevis,

Her Majesty the Queen of Saint Lucia,

Her Majesty the Queen of Saint Vincent and the Grenadines,

The Head of State of the Independent State of Samoa,

The President of the Democratic Republic of São Tomé and Príncipe,

The President of the Republic of Senegal,

The President of the Republic of Seychelles,

The President of the Republic of Sierra Leone,

Her Majesty the Queen of the Solomon Islands,

The President of the Republic of South Africa,

The President of the Republic of Sudan,

The President of the Republic of Suriname,

His Majesty the King of the Kingdom of Swaziland,

The President of the United Republic of Tanzania,

The President of the Togolese Republic,

His Majesty King Taufa'ahau Tupou IV of Tonga,

The President of the Republic of Trinidad and Tobago,

Her Majesty the Queen of Tuvalu,

The President of the Republic of Uganda,

The Government of the Republic of Vanuatu,

The President of the Republic of Zambia,

The Government of the Republic of Zimbabwe,

whose States are hereinafter referred to as ‘ACP States’,

of the other part,

meeting at Cotonou on June 23 in the year two thousand for the signature of the ACP-EC Partnership Agreement have adopted the following texts:





Annex I

Financial Protocol

Annex II

Terms and Conditions of Financing

Annex III

Institutional Support — CDE and CTA

Annex IV

Implementation and management procedures

Annex V

Trade regime applicable during the preparatory period referred to in Article 37(1)

Annex VI

List of LDLICs

Protocol 1

on operating expenditure of the joint institutions

Protocol 2

on privileges and immunities

Protocol 3

on South Africa



Declaration I

Joint Declaration on the actors of the Partnership (Article 6)

Declaration II

Declaration of the Commission and the Council of the European Union on the clause concerning the return and readmission of illegal immigrants [Article 13(5)]

Declaration III

Joint Declaration on participation in the Joint Parliamentary Assembly [Article 17(1)]

Declaration IV

Community Declaration on the financing of the ACP Secretariat

Declaration V

Community Declaration on the financing of the joint institutions

Declaration VI

Community Declaration relating to the Protocol on privileges and immunities

Declaration VII

Declaration by the Member States relating to the Protocol on privileges and immunities

Declaration VIII

Joint Declaration relating to the Protocol on privileges and immunities

Declaration IX

Joint Declaration on Article 49(2) on trade and environment

Declaration X

ACP Declaration on trade and environment

Declaration XI

Joint Declaration on the ACP cultural heritage

Declaration XII

Declaration by the ACP States on return or restitution of cultural property

Declaration XIII

Joint Declaration on copyright

Declaration XIV

Joint Declaration on regional cooperation and the outermost regions (Article 28)

Declaration XV

Joint Declaration on accession

Declaration XVI

Joint Declaration on accession of the overseas countries and territories referred to in Part Four of the EC Treaty

Declaration XVII

Joint Declaration on Article 66 (debt relief) of the Agreement

Declaration XVIII

EU Declaration on the Financial Protocol

Declaration XIX

Declaration by the Council and the Commission on the Programming Process

Declaration XX

Joint Declaration on the impact of Export Revenue Fluctuations on Vulnerable Small, Island and Landlocked ACP States

Declaration XXI

Community Declaration on Article 3 of Annex IV

Declaration XXII

Joint Declaration concerning agricultural products referred to in Article 1(2)(a) of Annex V

Declaration XXIII

Joint Declaration on market access in the EC-ACP Partnership

Declaration XXIV

Joint Declaration on rice

Declaration XXV

Joint Declaration on rum

Declaration XXVI

Joint Declaration on beef and veal

Declaration XXVII

Joint Declaration on the arrangements governing access to the markets of the French overseas departments for products originating in the ACP States referred to in Article 1(2) of Annex V

Declaration XXVIII

Joint Declaration on cooperation between ACP States and the neighbouring overseas countries and territories and French overseas departments

Declaration XXIX

Joint Declaration on products covered by the common agricultural policy

Declaration XXX

ACP Declaration on Article 1 of Annex V

Declaration XXXI

Community Declaration on Article 5(2)(a) of Annex V

Declaration XXXII

Joint Declaration on non-discrimination

Declaration XXXIII

Community Declaration on Article 8(3) of Annex V

Declaration XXXIV

Joint Declaration on Article 12 of Annex V

Declaration XXXV

Joint Declaration relating to Protocol 1 on Article 7 of Annex V

Declaration XXXVI

Joint Declaration relating to Protocol 1 of Annex V

Declaration XXXVII

Joint Declaration relating to Protocol 1 of Annex V on the origin of fishery products

Declaration XXXVIII

Community Declaration relating to Protocol 1 of Annex V on the extent of territorial waters

Declaration XXXIX

ACP Declaration relating to Protocol 1 of Annex V on the origin of fishery products

Declaration XL

Joint Declaration on the application of the value tolerance rule in the tuna sector

Declaration XLI

Joint Declaration on Article 6(11) of Protocol 1 of Annex V

Declaration XLII

Joint Declaration on rules of origin: cumulation with South Africa

Declaration XLIII

Joint Declaration on Annex 2 to Protocol 1 of Annex V

Hecho en Cotonú, el veintitrés de junio del año dos mil.

Udfærdiget i Cotonou den treogtyvende juni to tusind.

Geschehen zu Cotonou am dreiundzwanzigsten Juni zweitausend.

Έγινε στην Κοτονού, στις είκοσι τρεις Ιουνίου δύο χιλιάδες.

Done at Cotonou on the twenty-third day of June in the year two thousand.

Fait à Cotonou, le vingt-trois juin deux mille.

Fatto a Cotonou, addì ventitré giugno duemila.

Gedaan te Cotonou, de drieëntwintigste juni tweeduizend.

Feito em Cotonu, em vinte e três de Junho de dois mil.

Tehty Cotonoussa kahdentenakymmenentenäkolmantena päivänä kesäkuuta vuonna kaksituhatta.

Som skedde i Cotonou den tjugotredje juni tjugohundra.

Pour Sa Majesté le Roi des Belges

Voor Zijne Majesteit de Koning der Belgen

Für Seine Majestät den König der Belgier

Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

For Hendes Majestæt Danmarks Dronning

Für den Präsidenten der Bundesrepublik Deutschland

Για τον Πρόεδρο της Ελληνικής Δημοκρατίας

Por Su Majestad el Rey de España

Pour le Président de la République française

Thar ceann Uachtarán na hÉireann

For the President of Ireland

Per il Presidente della Repubblica italiana

Pour Son Altesse Royale le Grand-Duc de Luxembourg

Voor Hare Majesteit de Koningin der Nederlanden

Für den Bundespräsidenten der Republik Österreich

Pelo Presidente da República Portuguesa

Suomen Tasavallan Presidentin puolesta

För Republiken Finlands President

På svenska regeringens vägnar

For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

Pour le Président de la République d'Angola

For Her Majesty the Queen of Antigua and Barbuda

For the Head of State of the Commonwealth of the Bahamas

For the Head of State of Barbados

For the Government of Belize

Pour le Président de la République du Bénin

For the President of the Republic of Botswana

Pour le Président du Burkina Faso

Pour le Président de la République du Burundi

Pour le Président de la République du Cameroun

Pour le Président de la République du Cap-Vert

Pour le Président de la République Centrafricaine

Pour le Président de la République Fédérale Islamique des Comores

Pour le Président de la République démocratique du Congo

Pour le Président de la République du Congo

For the Government of the Cook Islands

Pour le Président de la République de Côte d'Ivoire

Pour le Président de la République de Djibouti

For the Government of the Commonwealth of Dominica

For the President of the Dominican Republic

For the President of the State of Eritrea

For the President of the Federal Republic of Ethiopia

For the President of the Sovereign Democratic Republic of Fiji

Pour le Président de la République gabonaise

For the President and Head of State of the Republic of The Gambia

For the President of the Republic of Ghana

For Her Majesty the Queen of Grenada

Pour le Président de la République de Guinée

Pour le Président de la République de Guinée-Bissau

Pour le Président de la République de Guinée équatoriale

For the President of the Republic of Guyana

Pour le Président de la République d'Haïti

For the Head of State of Jamaica

For the President of the Republic of Kenya

For the President of the Republic of Kiribati

For His Majesty the King of the Kingdom of Lesotho

For the President of the Republic of Liberia

Pour le Président de la République de Madagascar

For the President of the Republic of Malawi

Pour le Président de la République du Mali

For the Government of the Republic of the Marshall Islands

Pour le Président de la République Islamique de Mauritanie

For the President of the Republic of Mauritius

For the Government of the Federated States of Micronesia

Pour le Président de la République du Mozambique

For the President of the Republic of Namibia

For the Government of the Republic of Nauru

Pour le Président de la République du Niger

For the President of the Federal Republic of Nigeria

For the Government of Niue

For the Government of the Republic of Palau

For Her Majesty the Queen of the Independent State of Papua New Guinea

Pour le Président de la République Rwandaise

For Her Majesty the Queen of Saint Kitts and Nevis

For Her Majesty the Queen of Saint Lucia

For Her Majesty the Queen of Saint Vincent and the Grenadines

For the Head of State of the Independent State of Samoa

Pour le Président de la République démocratique de São Tomé et Príncipe

Pour le Président de la République du Sénégal

Pour le Président de la République des Seychelles

For the President of the Republic of Sierra Leone

For Her Majesty the Queen of the Solomon Islands

For the President of the Republic of South Africa

For the President of the Republic of the Sudan

For the President of the Republic of Suriname

For His Majesty the King of the Kingdom of Swaziland

For the President of the United Republic of Tanzania

Pour le Président de la République du Tchad

Pour le Président de la République togolaise

For His Majesty King Taufa'ahau Tupou IV of Tonga

For the President of the Republic of Trinidad and Tobago

For Her Majesty the Queen of Tuvalu

For the President of the Republic of Uganda

For the Government of the Republic of Vanuatu

For the President of the Republic of Zambia

For the Government of the Republic of Zimbabwe

DECLARATION I

Joint Declaration on the actors of the partnership (Article 6)

The Parties agree that the definition of civil society may differ significantly according to the socio-economic and cultural conditions of each ACP country. However, they believe that this definition may include inter alia the following organisations: human rights groups and agencies, grassroots organisations, women's associations, youth organisations, child-protection organisations, environmental movements, farmers' organisations, consumers' associations, religious organisations, development support structures (NGOs, teaching and research establishments), cultural associations and the media.

DECLARATION II

Declaration of the Commission and the Council of the European Union on the clause concerning the return and readmission of illegal immigrants [Article 13(5)]

Article 13(5) shall be without prejudice to the internal division of powers between the Community and its Member States for the conclusion of readmission agreements.

DECLARATION III

Joint Declaration on participation in the Joint Parliamentary Assembly [Article 17(1)]

The Parties reaffirm the role of the Joint Parliamentary Assembly in promoting and defending democratic processes through dialogue between members of parliament, and agree that the participation of representatives who are not members of a parliament, as set out in Article 17, shall be allowed only in exceptional circumstances. Such participation shall be subject to the approval of the Joint Parliamentary Assembly before each session.

DECLARATION IV

Community Declaration on the financing of the ACP Secretariat

The Community shall contribute to the cost of running the ACP Secretariat from intra-ACP cooperation resources.

DECLARATION V

Community Declaration on the financing of the joint institutions

The Community, being aware that expenditure in connection with interpreting at meetings and the translation of documents is expenditure incurred essentially for its own requirements, is prepared to continue past practice and meet this expenditure both for meetings of the institutions of the Agreement which take place in the territory of a Member State and those which take place in the territory of an ACP State.

DECLARATION VI

Community Declaration relating to the Protocol on privileges and immunities

The Protocol on privileges and immunities is a multilateral act from the point of view of international law. However, any specific problems that may arise in the host State regarding the application of this Protocol should be settled by bilateral agreement with that State.

The Community has noted the ACP States' requests that certain provisions of Protocol 2 be modified, notably as regards the status of the staff of the ACP Secretariat, the Centre for the Development of Enterprise (CDE) and the Centre for the Development of Agriculture (CTA).

The Community is willing to seek jointly appropriate solutions in respect of the ACP States' requests with a view to establishing a separate legal instrument as referred to above.

In this context, the host country will, without derogating from the present benefits enjoyed by the ACP Secretariat, the CDE, the CTA and their staff:

(1) Show understanding as regards the interpretation of the expression ‘staff of senior rank’, such an interpretation to be arrived at by mutual agreement;

(2) Recognise the powers delegated by the President of the Council of ACP Ministers to the Chairman of the ACP-EC Committee of Ambassadors, in order to simplify implementation of Article 9 of the Protocol;

(3) Agree to grant certain facilities to the staff of the ACP Secretariat, the CDE and the CTA to facilitate initial installation in the host country;

(4) Examine in an appropriate way tax-related questions concerning the ACP Secretariat, the CDE and the CTA and their staff.

DECLARATION VII

Declaration by the Member States relating to the Protocol on privileges and immunities

The Member States shall strive, in the context of their respective regulations, to facilitate throughout their respective territories, the movement in pursuit of their official duties of ACP diplomats accredited to the Community, members of the ACP Secretariat referred to in Article 7 of Protocol 2, whose names and positions shall be communicated in accordance with Article 9 of that Protocol, and the ACP executives of the CDE and the CTA.

DECLARATION VIII

Joint Declaration relating to the Protocol on privileges and immunities

Within the context of their respective regulations, the ACP States shall grant Commission delegations privileges and immunities similar to those granted to diplomatic missions so that they are able to carry out the functions incumbent on them under the Agreement in a satisfactory and effective manner.

DECLARATION IX

Joint Declaration on Article 49(2) on trade and environment

Keenly aware of the specific risks attaching to radioactive waste, the Parties will refrain from any practice of discharging such waste which would encroach upon the sovereignty of States or threaten the environment or public health in other countries. They attach the greatest importance to developing international cooperation to protect the environment and public health against such risks. They accordingly affirm their determination to play an active part in the work being done in the IAEA to produce an internationally approved code of good practice.

Council Directive 92/3/Euratom of 3 February 1992 on the supervision and control of shipments of radioactive waste between Member States and into and out of the Community defines the term ‘radioactive waste’ as any material, which contains or is contaminated by radio-nuclides and for which no use is foreseen. The Directive is applicable to shipments of radioactive waste between Member States and into and out of the Community whenever the quantities and concentration exceed the levels laid down in Article 3(2)(a) and (b) of the Council Directive 96/29/Euratom of 13 May 1996. The defined levels ensure basic safety standards for the protection of health of workers and the general public against the dangers arising from ionising radiation.

Shipments of radioactive waste are subject to a system of prior authorisation as defined in Directive 92/3/Euratom of 3 February 1992 on the supervision and control of shipments of radioactive waste between Member States and into and out of the Community. Article 11(1)b of the Directive stipulates that the competent authorities of Member States shall not authorise shipments of radioactive waste to a State party to the Fourth ACP-EEC Convention which is not a member of the Community, taking account, however, of Article 14. The Community ensures that Article 11 of Directive 92/3/Euratom will be revised to cover all Parties of this Agreement which are not members of the Community. Until then, the Community will act, as if the abovementioned parties would already be covered.

The Parties shall make every effort to sign and ratify as quickly as possible the Basle Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, as well as the 1995 amendment to the Convention, as laid down in Decision III/1.

DECLARATION X

ACP Declaration on trade and environment

The ACP States are seriously concerned about environmental problems in general and the transboundary movement of hazardous, nuclear and other radioactive wastes in particular.

In interpreting and implementing the provisions of Article 32(1)(d) of the Agreement, the ACP States have expressed their determination to be guided by the principles and the provisions of the OAU Resolution on the Control of Transboundary Movements of Hazardous Wastes and their Disposal in Africa as contained in AHG 182 (XXV).

DECLARATION XI

Joint Declaration on the ACP cultural heritage

1. The Parties express their common will to promote the preservation and enhancement of the cultural heritage of each ACP country, at the international, bilateral and private level and in the context of this Agreement.

2. The Parties acknowledge the need to facilitate the access of ACP historians and researchers to archives with a view to promoting the development of exchange of information on the cultural heritage of ACP States.

3. They acknowledge the usefulness of providing assistance for the appropriate activities conducted especially in the area of training, for the preservation, protection and exhibition of cultural properties, monuments and objects, including the promulgation and implementation of appropriate legislation.

4. They underpin the importance of undertaking common cultural activities, facilitating the mobility of ACP and European artists, as well as the exchanges of cultural objects which are symbolic of their cultures and civilisations with a view to enhancing mutual understanding and solidarity between their respective populations.

DECLARATION XII

Declaration by the ACP States on return or restitution of cultural property

The ACP States urge the Community and its Member States, insofar as they acknowledge the legitimate right of the ACP States to cultural identity, to promote the return or restitution of cultural property taken from ACP States and now to be found in Member States.

DECLARATION XIII

Joint Declaration on copyright

The Parties acknowledge that promotion of copyright protection is an integral part of cultural cooperation, the aim of which is to enhance all forms of human expression. Furthermore, such protection is a prerequisite for nurturing and developing production, dissemination and publishing activities.

Consequently, the two Parties shall, in the context of ACP-EC cultural cooperation, seek to promote and foster respect for copyright and related rights.

In this context, and in accordance with the rules and procedures laid down by the Agreement, the Community may offer financial and technical support for disseminating copyright information, training economic operators in the protection of such rights and drafting national legislation for their better protection.

DECLARATION XIV

Joint Declaration on regional cooperation and the outermost regions (Article 28)

The reference to the outermost regions concerns the Spanish autonomous community of the Canary Islands, the four French overseas departments, namely Guadeloupe, Guyana, Martinique and Réunion, and the Portuguese autonomous regions of the Azores and Madeira.

DECLARATION XV

Joint Declaration on accession

Any accession of a third State to this Agreement shall be made in compliance with the provisions of Article 1 and the objectives of Article 2 laid down by the ACP Group in the Georgetown Agreement as amended in November 1992.

DECLARATION XVI

Joint Declaration on accession of the overseas countries and territories referred to in Part Four of the EC Treaty

The Community and the ACP States are prepared to allow the overseas countries and territories referred to in Part Four of the Treaty which have become independent to accede to this Agreement, if they wish to continue their relations with the Community in this form.

DECLARATION XVII

Joint Declaration on Article 66 (debt relief) of the Agreement

The Parties agree on the following principles:

(a) In the longer-term, the Parties will seek an improvement of the Heavily Indebted Poor Countries initiative and promote a deepening, broadening and speeding up debt relief to ACP Countries;

(b) The Parties will also seek the mobilisation and establishment of support mechanisms for debt reduction in favour of ACP countries who are not yet eligible for the HIPC initiative.

DECLARATION XVIII

EU Declaration on the Financial Protocol

Within the overall amount of EUR 13 500 million of the 9th EDF, EUR 12 500 million shall be made available immediately upon the entry into force of the Financial Protocol. The remaining EUR 1 000 million shall be released on the basis of the performance review referred to in paragraph 7 of the Financial Protocol that shall be undertaken in 2004.

In evaluating the need for new resources, full account shall be taken of this performance review as well as of a date beyond which the funds of the 9th EDF will not be committed.

DECLARATION XIX

Declaration by the Council and the Commission on the Programming Process

The Community and its Member States reaffirm their attachment to the agreement on a reform of the programming process for implementation of assistance financed from the 9th EDF.

In this context, the Community and its Member States regard a properly implemented review mechanism as the most important tool for successful programming. The review process that has been agreed for governing the implementation of the 9th EDF will ensure continuity in the programming process while allowing for regular adjustments of the Country Support Strategy to reflect developments in needs and performance of the ACP State concerned.

In order to reap the full benefits of the reform and ensure the efficiency of the programming process, the Community and its Member States reaffirm the political commitment to the following principles:

The reviews must as far as possible be carried out in the ACP State concerned. Localising the reviews shall not imply that the Member States or the Commission Headquarters shall be prevented from following and being involved in the programming process as appropriate.

The time frames that have been set for completion of the reviews shall be respected.

The reviews must not be an isolated event in the programming process. The reviews shall be regarded as management tools, which synthesise the results of the regular (monthly) dialogue between the National Authorising Officer and the Commission's Head of Delegation.

The reviews must not increase the administrative burden of either of the Parties concerned. The procedures and reporting requirements surrounding the programming process must therefore be managed in a disciplined manner. To this end, the respective roles of the Member States and the Commission in the decision making process will be reviewed and adapted.

DECLARATION XX

Joint Declaration on the Impact of Export Revenue Fluctuations on Vulnerable Small, Island and Landlocked ACP States

The Parties note the concern of ACP States that the modalities of the mechanism for additional support to countries suffering from fluctuation of export revenues may not provide sufficient support to vulnerable small, island and landlocked States subject to volatile export revenues.

From the second year of operation of the mechanism, and on request of one or more ACP States who have met with difficulties, the Parties agree to re-examine the modalities of the mechanism on the basis of a proposal from the Commission, with a view, where necessary, to remedy the effects of such fluctuations.

DECLARATION XXI

Community Declaration on Article 3 of Annex IV

The notification of the indicative amount referred to in Article 3 of Annex IV, will not apply to the ACP States with whom the Community has suspended its cooperation.

DECLARATION XXII

Joint declaration concerning agricultural products referred to in article 1(2)(a) of annex V

The Parties have taken note that the Community intends to take the measures mentioned in the Annex, and which are laid down at the date of signing of the Agreement, with a view to granting ACP States the preferential treatment provided for in Article 1(2)(a), for certain agricultural and processed products.

They have taken note that the Community declares that it will take all the measures required to ensure that the corresponding agricultural regulations are adopted in good time and that, wherever possible, they come into force at the same time as the interim arrangements which will be introduced after the signing of the successor Agreement to the Fourth ACP-EC Convention signed in Lomé on 15 December 1989.



Preferential treatment applicable to agricultural products and foodstuffs originating in the ACP States

01

LIVE ANIMALS

0101

Live horses, asses, mules and hinnies

0101

exemption

0102

Live bovine animals

0102 90 05

reduction 100 % ad valorem customs duties

0102 90 21

reduction 100 % ad valorem customs duties

0102 90 29

reduction 100 % ad valorem customs duties

0102 90 41

reduction 100 % ad valorem customs duties

0102 90 49

reduction 100 % ad valorem customs duties

0102 90 51

reduction 100 % ad valorem customs duties

0102 90 59

reduction 100 % ad valorem customs duties

0102 90 61

reduction 100 % ad valorem customs duties

0102 90 69

reduction 100 % ad valorem customs duties

0102 90 71

reduction 100 % ad valorem customs duties

0102 90 79

reduction 100 % ad valorem customs duties

0103

Live swine

0103 91 10

reduction 16 %

0103 92 11

reduction 16 %

0103 92 19

reduction 16 %

0104

Live sheep and goats

0104 10 30

reduction 100 % customs duties within the limit of the quota (ctg1)

0104 10 80

reduction 100 % customs duties within the limit of the quota (ctg1)

0104 20 10

exemption

0104 20 90

reduction 100 % customs duties within the limit of the quota (ctg1)

0105

Live poultry, fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls

0105

reduction 16 %

0106

Live animals (excl. horses, asses, mules, hinnies, bovine animals, swine, sheep, goats, poultry, fish, crustaceans, molluscs and other aquatic invertebrates, and microorganic cultures etc.)

0106

exemption

02

MEAT AND EDIBLE MEAT OFFAL

0201

Meat of bovine animals, fresh or chilled

0201

reduction 100 % ad valorem customs duties (1)

0202

Meat of bovine animals, frozen

0202

reduction 100 % ad valorem customs duties (1)

0203

Meat of swine, fresh, chilled or frozen

0203 11 10

within the limit of the quota (ctg 7) reduction 50 %

0203 11 90

exemption

0203 12 11

within the limit of the quota (ctg 7) reduction 50 %

0203 12 19

within the limit of the quota (ctg 7) reduction 50 %

0203 12 90

exemption

0203 19 11

within the limit of the quota (ctg 7) reduction 50 %

0203 19 13

within the limit of the quota (ctg 7) reduction 50 %

0203 19 15

within the limit of the quota (ctg 7) reduction 50 %

ex020319 55

within the limit of the quota (ctg 7) reduction 50 % (excluding tenderloin presented separately)

0203 19 59

within the limit of the quota (ctg 7) reduction 50 %

0203 19 90

exemption

0203 21 10

within the limit of the quota (ctg 7) reduction 50 %

0203 21 90

exemption

0203 22 11

within the limit of the quota (ctg 7) reduction 50 %

0203 22 19

within the limit of the quota (ctg 7) reduction 50 %

0203 22 90

exemption

0203 29 11

within the limit of the quota (ctg 7) reduction 50 %

0203 29 13

within the limit of the quota (ctg 7) reduction 50 %

0203 29 15

within the limit of the quota (ctg 7) reduction 50 %

ex020329 55

within the limit of the quota (ctg 7) reduction 50 % (excluding tenderloin presented separately)

0203 29 59

within the limit of the quota (ctg 7) reduction 50 %

0203 29 90

exemption

0204

Meat of sheep or goats, fresh, chilled or frozen

0204

reduction 100 % ad valorem customs duties; domestic sheep: within the limit of the quota (quota 2) reduction 65 % specific duties; other species: within the limit of the quota (quota 1) reduction 100 % specific duties

0205

Meat of horses, asses, mules or hinnies, fresh, chilled or frozen

0205

exemption

0206

Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen

0206 10 91

exemption

0206 10 95

reduction 100 % ad valorem customs duties (1)

0206 10 99

exemption

0206 21

exemption

0206 22

exemption

0206 29 91

reduction 100 % ad valorem customs duties (1)

0206 29 99

exemption

0206 30 21

within the limit of the quota (ctg 7) reduction 50 %

0206 30 31

within the limit of the quota (ctg 7) reduction 50 %

0206 30 90

exemption

0206 41 91

within the limit of the quota (ctg 7) reduction 50 %

0206 41 99

exemption

0206 49 91

within the limit of the quota (ctg 7) reduction 50 %

0206 49 99

exemption

0206 80

exemption

0206 90

exemption

0207

Meat and edible offal of fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls, fresh, chilled or frozen

0207

within the limit of the quota (ctg 3) reduction 65 %

0208

Meat and edible offal of rabbits, hares, pigeons and other animals not elsewhere specified or included, fresh, chilled or frozen

0208

exemption

0209

Pig fat, free of lean meat and poultry fat not rendered, fresh, chilled, frozen, salted, in brine, dried or smoked

0209 00 11

within the limit of the quota (ctg 7) reduction 50 %

0209 00 19

within the limit of the quota (ctg 7) reduction 50 %

0209 00 30

within the limit of the quota (ctg 7) reduction 50 %

0209 00 90

reduction 16 %

0210

Meat and edible offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal

0210 11 11

within the limit of the quota (ctg 7) reduction 50 %

0210 11 19

within the limit of the quota (ctg 7) reduction 50 %

0210 11 31

within the limit of the quota (ctg 7) reduction 50 %

0210 11 39

within the limit of the quota (ctg 7) reduction 50 %

0210 11 90

exemption

0210 12 11

within the limit of the quota (ctg 7) reduction 50 %

0210 12 19

within the limit of the quota (ctg 7) reduction 50 %

0210 12 90

exemption

0210 19 10

within the limit of the quota (ctg 7) reduction 50 %

0210 19 20

within the limit of the quota (ctg 7) reduction 50 %

0210 19 30

within the limit of the quota (ctg 7) reduction 50 %

0210 19 40

within the limit of the quota (ctg 7) reduction 50 %

0210 19 51

within the limit of the quota (ctg 7) reduction 50 %

0210 19 59

within the limit of the quota (ctg 7) reduction 50 %

0210 19 60

within the limit of the quota (ctg 7) reduction 50 %

0210 19 70

within the limit of the quota (ctg 7) reduction 50 %

0210 19 81

within the limit of the quota (ctg 7) reduction 50 %

0210 19 89

within the limit of the quota (ctg 7) reduction 50 %

0210 19 90

exemption

0210 20

reduction 100 % ad valorem customs duties

0210 90 10

exemption

0210 90 11

reduction 100 % ad valorem customs duties;

domestic sheep: within the limit of the quota (quota 2) reduction 65 % specific duties;

other species: within the limit of the quota (quota 1) reduction 100 % specific duties

0210 90 19

reduction 100 % ad valorem customs duties;

domestic sheep: within the limit of the quota (quota 2) reduction 65 % specific duties;

other species: within the limit of the quota (quota 1) reduction 100 % specific duties

0210 90 21

exemption

0210 90 29

exemption

0210 90 31

within the limit of the quota (ctg 7) reduction 50 %

0210 90 39

within the limit of the quota (ctg 7) reduction 50 %

0210 90 41

reduction 100 % ad valorem customs duties

0210 90 49

exemption

0210 90 60

exemption

0210 90 71

reduction 16 %

0210 90 79

reduction 16 %

0210 90 80

exemption

0210 90 90

reduction 100 % ad valorem customs duties

03

FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES

03

exemption

04

DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY; EDIBLE PRODUCTS OF ANIMAL ORIGIN, NOT ELSEWHERE SPECIFIED OR INCLUDED

0401

Milk and cream, not concentrated nor containing added sugar or other sweetening matter

0401

reduction 16 %

0402

Milk and cream, concentrated or containing added sugar or other sweetening matter

0402

within the limit of the quota (ctg 5) reduction 65 %

0403

Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or flavoured or containing added sugar or other sweetening matter, fruits, nuts or cocoa

0403 10 11

reduction 16 %

0403 10 13

reduction 16 %

0403 10 19

reduction 16 %

0403 10 31

reduction 16 %

0403 10 33

reduction 16 %

0403 10 39

reduction 16 %

0403 10 51

reduction 100 % ad valorem customs duties

0403 10 53

reduction 100 % ad valorem customs duties

0403 10 59

reduction 100 % ad valorem customs duties

0403 10 91

reduction 100 % ad valorem customs duties

0403 10 93

reduction 100 % ad valorem customs duties

0403 10 99

reduction 100 % ad valorem customs duties

0403 90 11

reduction 16 %

0403 90 13

reduction 16 %

0403 90 19

reduction 16 %

0403 90 31

reduction 16 %

0403 90 33

reduction 16 %

0403 90 39

reduction 16 %

0403 90 51

reduction 16 %

0403 90 53

reduction 16 %

0403 90 59

reduction 16 %

0403 90 61

reduction 16 %

0403 90 63

reduction 16 %

0403 90 69

reduction 16 %

0403 90 71

reduction 100 % ad valorem customs duties

0403 90 73

reduction 100 % ad valorem customs duties

0403 90 79

reduction 100 % ad valorem customs duties

0403 90 91

reduction 100 % ad valorem customs duties

0403 90 93

reduction 100 % ad valorem customs duties

0403 90 99

reduction 100 % ad valorem customs duties

0404

Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included

0404

reduction 16 %

0405

Butter and other fats and oils derived from milk

0405

reduction 16 %

0406

Cheese and curd

0406

within the limit of the quota (ctg 6) reduction 65 %

0407

Birds' eggs, in shell, fresh, preserved or cooked

0407 00 11

reduction 16 %

0407 00 19

reduction 16 %

0407 00 30

reduction 16 %

0407 00 90

exemption

0408

Birds' eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter

0408 11 80

reduction 16 %

0408 19 81

reduction 16 %

0408 19 89

reduction 16 %

0408 91 80

reduction 16 %

0408 99 80

reduction 16 %

0409

Natural honey

0409

exemption

0410

Turtles' eggs, birds' nests and other edible products of animal origin not elsewhere specified or included

0410

exemption

05

PRODUCTS OF ANIMAL ORIGIN NOT ELSEWHERE SPECIFIED OR INCLUDED

05

exemption

06

LIVE TREES AND OTHER PLANTS; BULBS, ROOTS AND THE LIKE; CUT FLOWERS AND ORNAMENTAL FOLIAGE

06

exemption

07

EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS

0701

Potatoes, fresh or chilled

0701

exemption

0702

Tomatoes, fresh or chilled

0702

tomatoes other than cherry tomatoes 15/11-30/4: reduction 60 % ad valorem customs duties within the limit of the quota (quota 13a); cherry tomatoes 15/11-30/4: reduction 100 % ad valorem customs duties within the limit of the quota (quota 13b)

0703

Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled

0703 10 19

reduction 15 % from 16/5-31/1, exemption 1/2-15/5

0703 10 90

reduction 16 %

0703 20

reduction 15 % from 1/6-31/1, exemption 1/2-31/5

0703 90

reduction 16 %

0704

Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled

0704 10

reduction 16 %

0704 20

reduction 16 %

0704 90 10

reduction 16 %

0704 90 90

Chinese cabbage: reduction 15 % 1/1-30/10, exemption 1/11-31/12; other cabbages: reduction 16 %

0705

Lettuce lactuca sativa and chicory cichorium spp., fresh or chilled

0705 11

Iceberg salad: reduction 15 % 1/11-30/6, exemption 1/7-31/10; other salads: reduction 16 %

0705 19

reduction 16 %

0705 21

reduction 16 %

0705 29

reduction 16 %

0706

Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled

0706 10

carrots: reduction 15 % 1/4-31/12, exemption 1/1-31/3; turnips: reduction 16 %

0706 90 05

reduction 16 %

0706 90 11

reduction 16 %

0706 90 17

reduction 16 %

0706 90 30

exemption

ex070690 90

salad beetroot and radishes (raphanus sativus): exemption

0707

Cucumbers and gherkins, fresh or chilled

ex070700 05

small winter cucumbers 1/11-15/5: reduction 100 % ad valorem customs duties; winter cucumbers other than small cucumbers: reduction 16 % ad valorem customs duties

0707 00 90

reduction 16 %

0708

Leguminous vegetables, shelled or unshelled, fresh or chilled

0708

exemption

0709

Other vegetables, fresh or chilled

0709 10

reduction 15 % from 1/1-30/9, reduction 100 % ad valorem customs duties 1/10-31/12

0709 20

reduction 15 % from 1/2-14/8, reduction 40 % du 16/1-31/1, exemption 15/8-15/1

0709 30

exemption

0709 40

exemption

0709 51 10

reduction 16 %

0709 51 30

reduction 16 %

0709 51 50

reduction 16 %

0709 51 90

exemption

0709 52

reduction 16 %

0709 60

exemption

0709 70

reduction 16 %

0709 90 10

reduction 16 %

0709 90 20

reduction 16 %

0709 90 40

reduction 16 %

0709 90 50

reduction 16 %

0709 90 60

reduction 1,81 EUR/t

0709 90 70

reduction 100 % ad valorem customs duties

0709 90 90

exemption

0710

Vegetables, uncooked or cooked by steaming or boiling in water, frozen

0710 10

exemption

0710 21

exemption

0710 22

exemption

0710 29

exemption

0710 30

exemption

0710 40

reduction 100 % ad valorem customs duties

0710 80 51

exemption

0710 80 59

exemption

0710 80 61

exemption

0710 80 69

exemption

0710 80 70

exemption

0710 80 80

exemption

0710 80 85

exemption

0710 80 95

exemption

0710 90

exemption

0711

Vegetables provisionally preserved, e.g. by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions, but unsuitable in that state for immediate consumption

0711 10

exemption

0711 30

exemption

0711 40

exemption

0711 90 10

exemption

0711 90 30

reduction 100 % ad valorem customs duties

0711 90 40

exemption

0711 90 60

exemption

0711 90 70

exemption

0711 90 90

exemption

0712

Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared

0712 20

exemption

0712 30

exemption

0712 90 05

exemption

0712 90 19

reduction 1,81 EUR/t

0712 90 30

exemption

0712 90 50

exemption

ex071290 90

exemption except olives

0713

Dried leguminous vegetables, shelled, whether or not skinned or split

0713

exemption

0714

Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh or dried, whether or not sliced or in the form of pellets; sago pith

0714 10 10

reduction 8,38 EUR/t

0714 10 91

exemption

0714 10 99

reduction 6,19 EUR/t

0714 20

exemption

0714 90 11

exemption

0714 90 19

reduction 6,19 EUR/t; arrow-root: exemption

0714 90 90

exemption

08

EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUITS OR MELONS

0801

Coconuts, brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled

0801

exemption

0802

Other nuts, fresh or dried, whether or not shelled or peeled (excl. coconuts, brazil nuts and cashew nuts)

0802 11 90

reduction 16 %

0802 12 90

reduction 16 %

0802 21

reduction 16 %

0802 22

reduction 16 %

0802 31

exemption

0802 32

exemption

0802 40

reduction 16 %

0802 50

exemption

0802 90

exemption

0803

Bananas, incl. plantains, fresh or dried

0803 00 11

exemption

0803 00 19

The Community import regime for bananas is presently under review. The Parties agree to provide appropriate preferential access for ACP bananas in the context of the Community's future banana regime.

0803 00 90

exemption

0804

Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried

0804 10

exemption

0804 20 10

exemption from 1/11-30/4 within the limit of the ceiling (ceiling 3)

0804 20 90

exemption

0804 30

exemption

0804 40

exemption

0804 50

exemption

0805

Citrus fruit, fresh or dried

0805 10

reduction 80 % ad valorem customs duties; within the framework of the reference quantity (rq 1) 15/5-30/9 reduction 100 % ad valorem customs duties (4)

0805 20

reduction 80 % ad valorem customs duties; within the framework of the reference quantity (rq 2) 15/5-30/9 reduction 100 % ad valorem customs duties (4)

0805 30 90

exemption

0805 40

exemption

0805 90

exemption

0806

Grapes, fresh or dried

ex080610 10

seedless table grapes:within the limit of the quota (quota 14) 1/12-31/1 exemption; within the framework of the reference quantity (rq 3) 1/2-31/3 exemption (4) from 1/2-31/3 exemption (4)

0806 20

exemption

0807

Melons, incl. watermelons, and papaws papayas, fresh

0807

exemption

0808

Apples, pears and quinces, fresh

0808 10

within the limit of the quota (ctg 15) reduction 50 % ad valorem customs duties

0808 20 10

within the limit of the quota (ctg 16) reduction 65 % ad valorem customs duties

0808 20 50

within the limit of the quota (ctg 16) reduction 65 % ad valorem customs duties

0808 20 90

reduction 16 %

0809

Apricots, cherries, peaches incl. nectarines, plums and sloes, fresh

0809 10

from 1/5-31/8 reduction 15 % ad valorem customs duties, 1/9-30/4 exemption

0809 20 05

from 1/11-31/3: exemption

0809 30

from 1/4-30/11 reduction 15 % ad valorem customs duties, 1/12-31/3 exemption

0809 40 05

from 1/4-14/12 reduction 15 % ad valorem customs duties, 15/12-31/3 exemption

0809 40 90

exemption

0810

Strawberries, raspberries, blackberries, black, white or red currants, gooseberries and other edible fruit, not elsewhere specified or included, fresh

0810 10 05

within the limit of the quota (ctg 17) from 1/11-29/2 exemption

0810 10 80

within the limit of the quota (ctg 17) from 1/11-29/2 exemption

0810 20

reduction 16 %

0810 30

reduction 16 %

0810 40 30

exemption

0810 40 50

duty = 3 %

0810 40 90

duty = 5 %

0810 90

exemption

0811

Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter

0811 10 11

reduction 100 % ad valorem customs duties

0811 10 19

exemption

0811 10 90

exemption

0811 20 11

reduction 100 % ad valorem customs duties

0811 20 19

exemption

0811 20 31

exemption

0811 20 39

exemption

0811 20 51

exemption

0811 20 59

exemption

0811 20 90

exemption

0811 90 11

reduction 100 % ad valorem customs duties

0811 90 19

reduction 100 % ad valorem customs duties

0811 90 31

exemption

0811 90 39

exemption

0811 90 50

exemption

0811 90 70

exemption

0811 90 75

exemption

0811 90 80

exemption

0811 90 85

exemption

0811 90 95

exemption

0812

Fruit and nuts, provisionally preserved, e.g. by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions, but unsuitable in that state for immediate consumption

0812 10

exemption

0812 20

exemption

0812 90 10

exemption

0812 90 20

exemption

0812 90 30

exemption

0812 90 40

exemption

0812 90 50

exemption

0812 90 60

exemption

0812 90 70

exemption

0812 90 95

exemption

0813

Apricots, prunes, apples, peaches, pears, pawpaws, tamarinds and other dried fruit not elsewhere specified or included; mixtures of edible nuts or dried fruits

0813

exemption

0814

Peel of citrus fruit or melons, incl. watermelons, fresh, frozen, dried or provisionally preserved in brine, or in water with other additives

0814

exemption

09

COFFEE, TEA, MATE AND SPICES

09

exemption

10

CEREALS

1001

Wheat and meslin

1001 10

within the limit of the quota (ctg 10) reduction 50 %

1001 90 10

exemption

1001 90 91

within the limit of the quota (ctg 10) reduction 50 %

1001 90 99

within the limit of the quota (ctg 10) reduction 50 %

1002

Rye

1002

within the limit of the quota (ctg 10) reduction 50 %

1003

Barley

1003

within the limit of the quota (ctg 10) reduction 50 %

1004

Oats

1004

within the limit of the quota (ctg 10) reduction 50 %

1005

Maize or corn

1005 10 90

reduction 1,81 EUR/t

1005 90

reduction 1,81 EUR/t

1006

Rice

1006 10 10

exemption

1006 10 21

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 10 23

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR /t (2)

1006 10 25

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR /t (2)

1006 10 27

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 10 92

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 10 94

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 10 96

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 10 98

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 20

within the limit of the quota (ctg 11) reduction 65 % et 4,34 EUR/t (2)

1006 30

within the limit of the quota (ctg 11) reduction de 16,78 EUR/t, then reduced by 65 % and 6,52 EUR/t (2)

1006 40

within the limit of the quota (ctg 12) reduction 65 % et 3,62 EUR/t (2)

1007

Grain sorghum

1007

reduction 60 % within the limit of the ceiling (ceiling3) (3)

1008

Buckwheat, millet, canary seed and other cereals (excl. wheat and meslin, rye, barley, oats, maize, rice and grain sorghum)

1008 10

within the limit of the quota (ctg 10) reduction 50 %

1008 20

reduction 100 % within the limit of the ceiling (ceiling2) (3)

1008 90

within the limit of the quota (ctg 10) reduction 50 %

11

PRODUCTS OF THE MILLING INDUSTRY; MALT; STARCHES; INULIN; WHEAT GLUTEN

1101

Wheat or meslin flour

1101

reduction 16 %

1102

Cereal flours (excl. wheat or meslin)

1102 10

reduction 16 %

1102 20 10

reduction 7,3 EUR/t

1102 20 90

reduction 3,6 EUR/t

1102 30

reduction 3,6 EUR/t

1102 90 10

reduction 7,3 EUR/t

1102 90 30

reduction 7,3 EUR/t

1102 90 90

reduction 3,6 EUR/t

1103

Cereal groats, meal and pellets

1103 11

reduction 16 %

1103 12

reduction 7,3 EUR/t

1103 13 10

reduction 7,3 EUR/t

1103 13 90

reduction 3,6 EUR/t

1103 14

reduction 3,6 EUR/t

1103 19 10

reduction 7,3 EUR/t

1103 19 30

reduction 7,3 EUR/t

1103 19 90

reduction 3,6 EUR/t

1103 21

reduction 7,3 EUR/t

1103 29 10

reduction 7,3 EUR/t

1103 29 20

reduction 7,3 EUR/t

1103 29 30

reduction 7,3 EUR/t

1103 29 40

reduction 7,3 EUR/t

1103 29 50

reduction 3,6 EUR/t

1103 29 90

reduction 3,6 EUR/t

1104

Cereal grains otherwise worked, e.g. hulled, rolled, flaked, pearled, sliced or kebbled; germ of cereals, whole, rolled, flaked or ground (excl. cereal flours, and husked and semi- or wholly milled rice and broken rice)

1104 11 10

reduction 3,6 EUR/t

1104 11 90

reduction 7,3 EUR/t

1104 12 10

reduction 3,6 EUR/t

1104 12 90

reduction 7,3 EUR/t

1104 19

reduction 7,3 EUR/t

1104 21 10

reduction 3,6 EUR/t

1104 21 30

reduction 3,6 EUR/t

1104 21 50

reduction 7,3 EUR/t

1104 21 90

reduction 3,6 EUR/t

1104 21 99

reduction 3,6 EUR/t

1104 22

reduction 3,6 EUR/t

1104 23

reduction 3,6 EUR/t

1104 29

reduction 3,6 EUR/t

1104 30

reduction 7,3 EUR/t

1105

Flour, meal, flakes, granules and pellets of potatoes

1105

exemption

1106

Flour, meal and powder of the dried leguminous vegetables of heading 0713, of sago or of roots and tubers of heading 0714 or of the products of chapter 8

1106 10

exemption

1106 20 10

reduction 7,98 EUR/t; arrow-root: exemption

1106 20 90

reduction 29,18 EUR/t; arrow-root: exemption

1106 30

exemption

1108

Starches; inulin

1108 11

reduction 24,8 EUR/t

1108 12

reduction 24,8 EUR/t

1108 13

reduction 24,8 EUR/t

1108 14

reduction 50 % + reduction 24,8 EUR/t

1108 19 10

reduction 37,2 EUR/t

1108 19 90

reduction 50 % + reduction 24,8 EUR/t; arrow-root: exemption

1108 20

exemption

1109

Wheat gluten, whether or not dried

1109

reduction 219 EUR/t

12

OIL SEEDS AND OLEAGINOUS FRUITS; MISCELLANEOUS GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICAL PLANTS; STRAW AND FODDER

1208

Flours and meals of oil seeds or oleaginous fruits (excl. mustard)

1208 10

exemption

1209

Seeds, fruits and spores, for sowing (excl. leguminous vegetables and sweetcorn, coffee, tea, mate and spices, cereals, oil seeds and oleaginous fruits, and seeds and fruit used primarily in perfumery

1209

exemption

1210

Hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin

1210

exemption

1211

Plants and parts of plants, incl. seeds and fruits, of a kind used primarily in perfumery, medicaments or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered

1211

exemption

1212

Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh or dried, whether or not ground; fruit stones and kernels and other vegetable products, incl. unroasted chicory roots of the variety cichorium intybu

1212 10

exemption

1212 30

exemption

1212 91

reduction 16 % (5)

1212 92

reduction 16 % (5)

1212 99 10

exemption

1214

Swedes, mangolds, fodder roots, hay, alfalfa, clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets

1214 90 10

exemption

13

LACS; GUMS, RESINS AND OTHER VEGETABLE SAPS AND EXTRACTS

13

exemption

15

ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES

1501

Lard; other pig fat and poultry fat, rendered, whether or not pressed or solvent-extracted

1501

reduction 16 %

1502

Fats of bovine animals, sheep or goats, raw or rendered, whether or not pressed or solvent-extracted

1502

exemption

1503

Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil (excl. emulsified, mixed or otherwise prepared)

1503

exemption

1504

Fats and oils and their fractions of fish or marine mammals, whether or not refined (excl. chemically modified)

1504

exemption

1505

Wool grease and fatty substances derived therefrom, incl. lanolin

1505

exemption

1506

Other animal fats and oils and their fractions, whether or not refined, but not chemically modified (excl. pig fat, poultry fat, fats of bovine animals, sheep and goats, fats of fish and other marine animals, lard stearin,

1506

exemption

1507

Soya-bean oil and its fractions, whether or not refined (excl. chemically modified)

1507

exemption

1508

Ground-nut oil and its fractions, whether or not refined, but not chemically modified

1508

exemption

1511

Palm oil and its fractions, whether or not refined (excl. chemically modified)

1511

exemption

1512

Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified

1512

exemption

1513

Coconut copra, palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified

1513

exemption

1514

Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified

1514

exemption

1515

Other fixed vegetable fats and oils, incl. jojoba oil, and their fractions, whether or not refined, but not chemically modified

1515

exemption

1516

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared

1516

exemption

1517

Margarine, other edible mixtures or preparations of animal or vegetable fats or oils and edible fractions of different fats or oils

1517 10 10

reduction 100 % ad valorem customs duties

1517 10 90

exemption

1517 90 10

reduction 100 % ad valorem customs duties

1517 90 91

exemption

1517 90 93

exemption

1517 90 99

exemption

1518

Animal or vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified; inedible mixtures or preparations of animal or vegetable fats or oils or fractions of different fats or oils, not elsewhere specified or included

1518

exemption

1520

Glycerol glycerine, whether or not pure; glycerol waters and glycerol lyes

1520

exemption

1521

Vegetable waxes, beeswax, other insect waxes and spermaceti, whether or not refined or coloured (excl. triglycerides)

1521

exemption

1522

Degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes

1522 00 10

exemption

1522 00 91

exemption

1522 00 99

exemption

16

PREPARATIONS OF MEAT, FISH OR CRUSTACEANS, MOLLUSCS OR OTHER AQUATIC INVERTEBRATES

1601

Sausages and similar products, of meat, offal or blood; food preparations based on these products

1601

within the limit of the quota (ctg 8) reduction 65 %

1602

Prepared or preserved meat, offal or blood (excl. sausages and similar products, and meat extracts and juices)

1602 10

reduction 16 %

1602 20 11

exemption

1602 20 19

exemption

1602 20 90

reduction 16 %

1602 31

within the limit of the quota (ctg 4) reduction 65 %

1602 32

within the limit of the quota (ctg 4) reduction 65 %

1602 39

within the limit of the quota (ctg 4) reduction 65 %

1602 41 10

reduction 16 %

1602 41 90

exemption

1602 42 10

reduction 16 %

1602 42 90

exemption

1602 49

reduction 16 %

1602 50 31

exemption

1602 50 39

exemption

1602 50 80

exemption

1602 90 10

reduction 16 %

1602 90 31

exemption

1602 90 41

exemption

1602 90 51

reduction 16 %

1602 90 69

exemption

1602 90 72

exemption

1602 90 74

exemption

1602 90 76

exemption

1602 90 78

exemption

1602 90 98

exemption

1603

Extracts and juices of meat, fish or crustaceans, molluscs and other aquatic invertebrates

1603

exemption

1604

Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs

1604

exemption

1605

Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved

1605

exemption

17

SUGARS AND SUGAR CONFECTIONERY

1702

Other sugars, incl. chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel

1702 11

reduction 16 %

1702 19

reduction 16 %

1702 20

reduction 16 % (5)

1702 30 10

reduction 16 % (5)

1702 30 51

reduction 117 EUR/t

1702 30 59

reduction 81 EUR/t

1702 30 91

reduction 117 EUR/t

1702 30 99

reduction 81 EUR/t

1702 40 10

reduction 16 % (5)

1702 40 90

reduction 81 EUR/t

1702 50

exemption

1702 60

reduction 16 % (5)

1702 90 10

exemption

1702 90 30

reduction 16 % (5)

1702 90 50

reduction 81 EUR/t

1702 90 60

reduction 16 % (5)

1702 90 71

reduction 16 % (5)

1702 90 75

reduction 117 EUR/t

1702 90 79

reduction 81 EUR/t

1702 90 80

reduction 16 % (5)

1702 90 99

reduction 16 % (5)

1703

Molasses resulting from the extraction or refining of sugar

1703

within the limit of the quota (ctg 9) reduction 100 %

1704

Sugar confectionery not containing cocoa, incl. white chocolate

1704 10

reduction 100 % ad valorem customs duties

1704 90 10

exemption

1704 90 30

exemption

1704 90 51

reduction 100 % ad valorem customs duties

1704 90 55

reduction 100 % ad valorem customs duties

1704 90 61

reduction 100 % ad valorem customs duties

1704 90 65

reduction 100 % ad valorem customs duties

1704 90 71

reduction 100 % ad valorem customs duties

1704 90 75

reduction 100 % ad valorem customs duties

1704 90 81

reduction 100 % ad valorem customs duties

1704 90 99

reduction 100 % ad valorem customs duties

18

COCOA AND COCOA PREPARATIONS

1801

Cocoa beans, whole or broken, raw or roasted

1801

exemption

1802

Cocoa shells, husks, skins and other cocoa waste

1802

exemption

1803

Cocoa paste, whether or not defatted

1803

exemption

1804

Cocoa butter, fat and oil

1804

exemption

1805

Cocoa powder, not containing added sugar or other sweetening matter

1805

exemption

1806

Chocolate and other food preparations containing cocoa

1806 10 15

exemption

1806 10 20

reduction 100 % ad valorem customs duties

1806 10 30

reduction 100 % ad valorem customs duties

1806 10 90

reduction 100 % ad valorem customs duties

1806 20

exemption

1806 31

exemption

1806 32

exemption

1806 90 11

exemption

1806 90 19

exemption

1806 90 31

exemption

1806 90 39

exemption

1806 90 50

exemption

1806 90 60

reduction 100 % ad valorem customs duties

1806 90 70

reduction 100 % ad valorem customs duties

1806 90 90

reduction 100 % ad valorem customs duties

19

PREPARATIONS OF CEREALS, FLOUR, STARCH OR MILK; PASTRYCOOKS' PRODUCTS

1901

Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa powder or containing cocoa powder in a proportion by weight of < 40 % not elsewhere specified or included; food preparations of goods of headings 0401 to 0404

1901 10

reduction 100 % ad valorem customs duties; exemption EA under the condition ()

1901 20

reduction 100 % ad valorem customs duties; exemption EA under the condition ()

1901 90 11

reduction 100 % ad valorem customs duties

1901 90 19

reduction 100 % ad valorem customs duties

1901 90 91

exemption

1901 90 99

reduction 100 % ad valorem customs duties; exemption EA under the condition ()

1902

Pasta, whether or not cooked or stuffed with meat or other substances or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared

1902 11

reduction 100 % ad valorem customs duties

1902 19

reduction 100 % ad valorem customs duties

1902 20 10

exemption

1902 20 30

reduction 16 %

1902 20 91

reduction 100 % ad valorem customs duties

1902 20 99

reduction 100 % ad valorem customs duties

1902 30

reduction 100 % ad valorem customs duties

1902 40

reduction 100 % ad valorem customs duties

1903

Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or similar forms

1903

exemption

1904

Prepared foods obtained by the swelling or roasting of cereals or cereal products, e.g. corn flakes; cereals, other than maize corn, in grain form, pre-cooked or otherwise prepared

1904

reduction 100 % ad valorem customs duties

1905

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

1905 10

reduction 100 % ad valorem customs duties

1905 20

reduction 100 % ad valorem customs duties

1905 30 11

reduction 100 % ad valorem customs duties; biscuits: exemption

1905 30 19

reduction 100 % ad valorem customs duties; biscuits: exemption

1905 30 30

reduction 100 % ad valorem customs duties

1905 30 51

reduction 100 % ad valorem customs duties

1905 30 59

reduction 100 % ad valorem customs duties

1905 30 91

reduction 100 % ad valorem customs duties

1905 30 99

reduction 100 % ad valorem customs duties

1905 40

reduction 100 % ad valorem customs duties

1905 90

reduction 100 % ad valorem customs duties

20

PREPARATIONS OF VEGETABLES, FRUIT, NUTS OR OTHER PARTS OF PLANTS

2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid

2001 10

exemption

2001 20

exemption

2001 90 20

exemption

2001 90 30

reduction 100 % ad valorem customs duties

2001 90 40

reduction 100 % ad valorem customs duties

2001 90 50

exemption

2001 90 60

exemption

2001 90 65

exemption

2001 90 70

exemption

2001 90 75

exemption

2001 90 85

exemption

2001 90 91

exemption

ex200190 96

exemption except vine leaves

2002

Tomatoes, prepared or preserved otherwise than by vinegar or acetic acid

2002

exemption

2003

Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid

2003

exemption

2004

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen (excl. tomatoes, mushrooms and truffles)

2004 10 10

exemption

2004 10 91

reduction 100 % ad valorem customs duties

2004 10 99

exemption

2004 90 10

reduction 100 % ad valorem customs duties

ex200490 30

exemption except olives

2004 90 50

exemption

2004 90 91

exemption

2004 90 98

exemption

2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid (excl. frozen, and tomatoes, mushrooms and truffles)

2005 10

exemption

2005 20 10

reduction 100 % ad valorem customs duties

2005 20 20

reduction 16 %

2005 20 80

reduction 16 %

2005 40

exemption

2005 51

exemption

2005 59

exemption

2005 60

exemption

2005 70

exemption

2005 80

reduction 100 % ad valorem customs duties

2005 90

exemption

2006

Fruit, nuts, fruit-peel and other parts of plants, preserved by sugar, drained, glace or crystallized

2006 00 31

reduction 100 % ad valorem customs duties

2006 00 35

reduction 100 % ad valorem customs duties

2006 00 38

reduction 100 % ad valorem customs duties

2006 00 91

exemption

2006 00 99

exemption

2007

Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, being cooked preparations, whether or not containing added sugar or other sweetening matter

2007 10 10

exemption

2007 10 91

exemption

2007 10 99

exemption

2007 91 10

reduction 100 % ad valorem customs duties

2007 91 30

reduction 100 % ad valorem customs duties

2007 91 90

exemption

2007 99 10

exemption

2007 99 20

exemption

2007 99 31

exemption

2007 99 33

exemption

2007 99 35

exemption

2007 99 39

exemption

2007 99 51

exemption

2007 99 55

exemption

2007 99 58

exemption

2007 99 91

exemption

2007 99 93

exemption

2007 99 98

exemption

2008

Fruits, nuts and other edible parts of plants, prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included

2008 11

exemption

2008 19

exemption

2008 20

exemption

2008 30 11

exemption

2008 30 19

reduction 100 % ad valorem customs duties; grapefruit: exemption

2008 30 31

exemption

2008 30 39

exemption

2008 30 51

exemption

2008 30 55

exemption

2008 30 59

exemption

2008 30 71

exemption

2008 30 75

exemption

2008 30 79

exemption

2008 30 91

exemption

2008 30 99

exemption

2008 40

exemption

2008 50 11

exemption

2008 50 19

reduction 100 % ad valorem customs duties

2008 50 31

exemption

2008 50 39

exemption

2008 50 51

reduction 100 % ad valorem customs duties

2008 50 59

exemption

2008 50 61

exemption

2008 50 69

exemption

2008 50 71

exemption

2008 50 79

exemption

2008 50 92

exemption

2008 50 94

exemption

2008 50 99

exemption

2008 60 11

exemption

2008 60 19

reduction 100 % ad valorem customs duties

2008 60 31

exemption

2008 60 39

exemption

2008 60 51

exemption

2008 60 59

exemption

2008 60 61

exemption

2008 60 69

exemption

2008 60 71

exemption

2008 60 79

exemption

2008 60 91

exemption

2008 60 99

exemption

2008 70 11

exemption

2008 70 19

reduction 100 % ad valorem customs duties

2008 70 31

exemption

2008 70 39

exemption

2008 70 51

reduction 100 % ad valorem customs duties

2008 70 59

exemption

2008 70 61

exemption

2008 70 69

exemption

2008 70 71

exemption

2008 70 79

exemption

2008 70 92

exemption

2008 70 94

exemption

2008 70 99

exemption

2008 80

exemption

2008 91

exemption

2008 92 12

exemption

2008 92 14

exemption

2008 92 16

exemption

2008 92 18

exemption

2008 92 32

exemption

2008 92 34

exemption

2008 92 36

exemption

2008 92 38

exemption

2008 92 51

exemption

2008 92 59

exemption

2008 92 72

exemption

2008 92 74

exemption

2008 92 76

exemption

2008 92 78

exemption

2008 92 92

exemption

2008 92 93

exemption

2008 92 94

exemption

2008 92 96

exemption

2008 92 97

exemption

2008 92 98

exemption

2008 99 11

exemption

2008 99 19

exemption

2008 99 21

exemption

2008 99 23

exemption

2008 99 25

exemption

2008 99 26

exemption

2008 99 28

exemption

2008 99 32

exemption

2008 99 33

reduction 100 % ad valorem customs duties

2008 99 34

reduction 100 % ad valorem customs duties

2008 99 36

exemption

2008 99 37

exemption

2008 99 38

exemption

2008 99 40

exemption

2008 99 43

exemption

2008 99 45

exemption

2008 99 46

exemption

2008 99 47

exemption

2008 99 49

exemption

2008 99 53

exemption

2008 99 55

exemption

2008 99 61

exemption

2008 99 62

exemption

2008 99 68

exemption

2008 99 72

exemption

2008 99 74

exemption

2008 99 79

exemption

ex200899 85

exemption except sweet corn

2008 99 91

reduction 100 % ad valorem customs duties

ex200899 99

exemption except vine leaves

2009

Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit, whether or not containing added sugar or other sweetening matter

2009 11 11

reduction 100 % ad valorem customs duties

2009 11 19

exemption

2009 11 91

reduction 100 % ad valorem customs duties

2009 11 99

exemption

2009 19 11

reduction 100 % ad valorem customs duties

2009 19 19

exemption

2009 19 91

reduction 100 % ad valorem customs duties

2009 19 99

exemption

2009 20

exemption

2009 30 11

reduction 100 % ad valorem customs duties

2009 30 19

exemption

2009 30 31

exemption

2009 30 39

exemption

2009 30 51

reduction 100 % ad valorem customs duties

2009 30 55

exemption

2009 30 59

exemption

2009 30 91

reduction 100 % ad valorem customs duties

2009 30 95

exemption

2009 30 99

exemption

2009 40

exemption

2009 50

exemption

2009 60

exemption

2009 70 11

reduction 100 % ad valorem customs duties

2009 70 19

exemption

2009 70 30

exemption

2009 70 91

reduction 100 % ad valorem customs duties

2009 70 93

exemption

2009 70 99

exemption

2009 80 11

reduction 100 % ad valorem customs duties

2009 80 19

exemption

2009 80 32

exemption

2009 80 33

reduction 100 % ad valorem customs duties

2009 80 35

reduction 100 % ad valorem customs duties

2009 80 36

exemption

2009 80 38

exemption

2009 80 50

exemption

2009 80 61

reduction 100 % ad valorem customs duties

2009 80 63

exemption

2009 80 69

exemption

2009 80 71

exemption

2009 80 73

exemption

2009 80 79

exemption

2009 80 83

exemption

2009 80 84

reduction 100 % ad valorem customs duties

2009 80 86

reduction 100 % ad valorem customs duties

2009 80 88

exemption

2009 80 89

exemption

2009 80 95

exemption

2009 80 96

exemption

2009 80 97

exemption

2009 80 99

exemption

2009 90 11

reduction 100 % ad valorem customs duties

2009 90 19

exemption

2009 90 21

reduction 100 % ad valorem customs duties

2009 90 29

exemption

2009 90 31

reduction 100 % ad valorem customs duties

2009 90 39

exemption

2009 90 41

exemption

2009 90 49

exemption

2009 90 51

exemption

2009 90 59

exemption

2009 90 71

reduction 100 % ad valorem customs duties

2009 90 73

exemption

2009 90 79

exemption

2009 90 92

exemption

2009 90 94

reduction 100 % ad valorem customs duties

2009 90 95

exemption

2009 90 99

exemption

2009 90 97

exemption

2009 90 98

exemption

21

MISCELLANEOUS EDIBLE PREPARATIONS

2101

Extracts, essences and concentrates, of coffee, tea or mate and preparations with a basis of these products or with a basis of coffee, tea or mate; roasted chicory and other roasted coffee substitutes, and extracts, essence

2101 11

exemption

2101 12

exemption

2101 20

exemption

2101 30 11

exemption

2101 30 19

reduction 100 % ad valorem customs duties

2101 30 91

exemption

2101 30 99

reduction 100 % ad valorem customs duties

2102

Yeasts, active or inactive, other dead single-cell micro-organisms, prepared baking powders (excl. single-cell micro-organisms packaged as medicaments)

2102 10 10

exemption

2102 10 31

reduction 100 % ad valorem customs duties

2102 10 39

reduction 100 % ad valorem customs duties

2102 10 90

exemption

2102 20

exemption

2102 30

exemption

2103

Sauce and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal, whether or not prepared, and mustard

2103

exemption

2104

Soups and broths and preparations therefor; food preparations consisting of finely homogenized mixtures of two or more basic ingredients, such as meat, fish, vegetables or fruit, put up for retail sale as infant food

2104

exemption

2105

Ice cream and other edible ice, whether or not containing cocoa

2105

reduction 100 % ad valorem customs duties

2106

Food preparations not elsewhere specified or included

2106 10

reduction 100 % ad valorem customs duties

2106 90 20

exemption

2106 90 30

reduction 16 % (5)

2106 90 51

reduction 16 %

2106 90 55

reduction 81 EUR/t

2106 90 59

reduction 16 % (5)

2106 90 92

exemption

2106 90 98

reduction 100 % ad valorem customs duties

22

BEVERAGES, SPIRITS AND VINEGAR

2201

Waters, incl. natural or artificial mineral waters and aerated waters, not containing added sugar, other sweetening matter or flavoured; ice and snow

2201

exemption

2202

Waters, incl. mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages (excluding fruit or vegetable juices and milk)

2202 10

exemption

2202 90 10

exemption

2202 90 91

reduction 100 % ad valorem customs duties

2202 90 95

reduction 100 % ad valorem customs duties

2202 90 99

reduction 100 % ad valorem customs duties

2203

Beer made from malt

2203

exemption

2204

Wine of fresh grapes, incl. fortified wines; grape must, partly fermented, of actual alcoholic strength of > 0,5 % vol. whether or not with added alcohol

2204 30 92

exemption

2204 30 94

exemption

2204 30 96

exemption

2204 30 98

exemption

2205

Vermouth and other wine of fresh grapes, flavoured with plants or aromatic substances

2205

exemption

2206

Other fermented beverages and mixtures of fermented beverages cider, perry, mead; mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included

2206 00 31

exemption

2206 00 39

exemption

2206 00 51

exemption

2206 00 59

exemption

2206 00 81

exemption

2206 00 89

exemption

2207

Undenatured ethyl alcohol of an alcoholic strength by volume of ≥ 80 %; ethyl alcohol and other spirits, denatured, of any strength

2207

exemption

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of < 80 %; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages

2208

exemption

2209

Vinegar and substitutes for vinegar obtained from acetic acid

2209 00 91

exemption

2209 00 99

exemption

23

RESIDUES AND WASTE FROM THE FOOD INDUSTRIES; PREPARED ANIMAL FODDER

2302

Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants

2302 10

reduction 7,2 EUR/t

2302 20

reduction 7,2 EUR/t

2302 30

reduction 7,2 EUR/t

2302 40

reduction 7,2 EUR/t

2302 50

exemption

2303

Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets

2303 10 11

reduction 219 EUR/t

2308

Acorns, horse-chestnuts, marc and other vegetable materials and vegetable waste, vegetable residues and by-products of a kind used in animal feeding, whether or not in the form of pellets, not elsewhere specified or included

2308 90 90

exemption

2309

Preparations of a kind used in animal feeding

2309 10 13

reduction 10,9 EUR/t

2309 10 15

reduction 16 %

2309 10 19

reduction 16 %

2309 10 33

reduction 10,9 EUR/t

2309 10 39

reduction 16 %

2309 10 51

reduction 10,9 EUR/t

2309 10 53

reduction 10,9 EUR/t

2209 10 59

reduction 16 %

2309 10 70

reduction 16 %

2309 10 90

exemption

2309 90 10

exemption

2309 90 31

reduction 10,9 EUR/t

2309 90 33

reduction 10,9 EUR/t

2309 90 35

reduction 16 %

2309 90 39

reduction 16 %

2309 90 41

reduction 10,9 EUR/t

2309 90 43

reduction 10,9 EUR/t

2309 90 49

reduction 16 %

2309 90 51

reduction 10,9 EUR/t

2309 90 53

reduction 10,9 EUR/t

2309 90 59

reduction 16 %

2309 90 70

reduction 16 %

2309 90 91

exemption

24

TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES

24

exemption (6)

29

ORGANIC CHEMICALS

2905

Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives

2905

reduction 100 % ad valorem customs duties

33

ESSENTIAL OILS AND RESINOIDS; PERFUMERY, COSMETIC OR TOILET PREPARATIONS

3301

Essential oils, whether or not terpeneless, incl. concretes and absolutes; resinoids; concentrates of essential oils in fats, fixed oils, waxes or the like, obtained by enfleurage or maceration; terpenic by-products

3301

exemption

3302

Mixtures of odoriferous substances and mixtures, incl. alcoholic solutions, based on one or more of these substances, of a kind used as raw materials in industry

3302 10 29

exemption

35

ALBUMINOUS SUBSTANCES; MODIFIED STARCHES; GLUES; ENZYMES

3501

Casein, caseinates and other casein derivatives; casein glues (excl. those packaged as glue for retail sale and weighing ≤ 1 kg)

3501

exemption

3502

Albumins, incl. concentrates of two or more whey proteins containing by weight > 80 % whey proteins, calculated on the dry matter, albuminates and other albumin derivatives

3502 11 90

reduction 100 % ad valorem customs duties

3502 19 90

reduction 100 % ad valorem customs duties

3502 20 91

reduction 100 % ad valorem customs duties

3502 20 99

reduction 100 % ad valorem customs duties

3503

Gelatin, whether or not in square or rectangular sheets, whether or not surface-worked or coloured, and gelatin derivatives; isinglass; other glues of animal origin (excl. casein glues of heading No 3501

3503

exemption

3504

Peptones and their derivatives; other albuminous substances and their derivatives not elsewhere specified or included; hide powder, whether or not chromed

3504

exemption

3505

Dextrins and other modified starches, e.g. pregelatinised or esterified starches; glues based on starches, dextrins or other modified starches (excl. those put up for retail sale and weighing ≤ 1 kg)

3505 10 10

reduction 100 % ad valorem customs duties

3505 10 50

exemption

3505 10 90

reduction 100 % ad valorem customs duties

3505 20

reduction 100 % ad valorem customs duties

38

MISCELLANEOUS CHEMICAL PRODUCTS

3809

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyes and other products and preparations such as dressings and mordants of a kind used in the textile, paper, leather or like industries not elsewhere specified or included

3809 10

reduction 100 % ad valorem customs duties

3824

Prepared binders for foundry moulds or cores; chemical products and preparations for the chemical or allied industries, incl. mixtures of natural products not elsewhere specified or included; residual products of the chemical or allied industries

3824 60

reduction 100 % ad valorem customs duties

50

SILK

50

exemption

52

COTTON

52

exemption

(1)   Where, in the course of a year, imports into the Community of products falling within CN codes 0201, 0206 10 95, 0206 29 91, 1602 50 10 or 1602 90 61, originating in an ACP State exceed a quantity equivalent to imports into the Community during whichever year between 1969 and 1974 Community imports of products of that origin were highest, plus an annual growth rate of 7 %, exemption from customs duties on the products of that origin shall be partially or totally suspended.

In that event the Community shall determine the arrangements to be applied to the imports in question.

(2)   The reduction shall apply only to imports for which the importer provides proof that an export charge of an amount equivalent to the reduction has been collected by the exporting country.

(3)   If, in the course of a year, the ceiling is reached, the Community may, by means of a Regulation, reintroduce the application of normal customs duties until the end of the period of validity; the duties applicable shall be reduced by 50 %.

(4)   If imports of a product exceed the reference quantity, a decision may be taken to make it subject to a ceiling equal to the reference quantity, having regard to the annual balance of trade in the product.

(5)   This reduction shall not be applied when the Community, in accordance with its Uruguay Round commitments, applies additional duties.

(6)   If serious disturbances occur as a result of a large increase in duty-free imports of products falling within CN code 2401, originating in the ACP States, or if these imports create difficulties which bring about a deterioration in the economic situation of a region of the Community, the Community may take measures to counteract any deflection of trade.

(7)   Whether or not containing less than 1,5 % by weight of milk fat, with a starch or flour content of 50 % or over but of less than 75 % by weight.

Provisions for the French overseas departments

1.  

2.  The customs duty shall not be levied on direct imports of rice falling within CN heading 1006, excluding rice for sowing of CN heading 1006 10 10 imported into Réunion.

3.  If imports into the French overseas departments of sweet corn originating in the ACP States or the overseas countries and territories exceed 25 000 tonnes within a given year, and if these imports threaten to seriously disturb these markets, the Commission shall take the necessary measures.

4.  Within the limit of an annual quota of 2 000 tonnes, no customs duties shall be levied on products falling within CN codes 0714 10 91 and 0714 90 11.

REFERENCES


DECLARATION XXIII

Joint Declaration on market access in the ACP-EC Partnership

The Parties accept the fact that both sides expect to take part in the negotiations and implementation of agreements leading to further multilateral and bilateral trade liberalisation.

The Parties note the Community's commitment to provide least developed countries with free market access for essentially all products by 2005.

At the same time they recognise, with respect to ACP preferential access to the Community market, that this wider process of liberalisation could lead to a deterioration in the relative competitive position of the ACP States which would threaten their development efforts, which the Community is concerned to support.

The Parties therefore agree to examine all necessary measures in order to maintain the competitive position of the ACP States on the Community market during the preparatory period. This examination may include, inter alia, calendar requirements, rules of origin, sanitary and phytosanitary measures and implementation of specific measures addressing supply side constraints in the ACP countries. The objective will be to offer ACP countries possibilities to exploit their existing and potential comparative advantage on the Community market. Bearing in mind their commitment to cooperation in the WTO, the Parties agree that this examination will also take into account any extension within the WTO of the trade advantages which may be offered by member countries to developing countries. To this end, the Joint Ministerial Trade Committee should make recommendations on the basis of an initial review to be prepared by the Commission and the ACP Secretariat. The EC Council will examine these recommendations on the basis of a proposal from the Commission, with a view to preserving the benefits of the ACP-EC trade arrangement.

The Council of the European Union, for its part, underlines its obligation to take into account the effect of any agreement or other measures to be taken by the EC on ACP-EC trade. It requests the Commission to carry out the necessary impact assessments on a systematic basis.

The measures will relate to the preparatory period and will take due account of the Community's common agricultural policy.

The Joint Ministerial Trade Committee shall monitor the implementation of this Declaration and make appropriate reports to the Council of Ministers.

DECLARATION XXIV

Joint Declaration on rice

1.

The Parties recognise the importance of rice for the economic development of a number of ACP countries in terms of employment, foreign exchange and social and political stability.

2.

They further recognise the importance of the Community market for rice. The Community reaffirms its commitment to enhance the competitiveness and efficiency of the ACP rice sector in order to maintain a viable and sustainable industry and thereby contribute to the smooth integration of ACP countries into the world economy.

3.

The Community is prepared to provide sufficient funds to finance during the preparatory period, in consultation with the ACP sector concerned, an integrated sector-specific programme for the development of ACP exporters of rice which could in particular include the following measures:

 improvement of conditions of production and enhancement of quality through action in the areas of research, harvesting and handling;

 transport and storage;

 enhancing the competitiveness of existing exporters of rice;

 assisting ACP rice producers to meet environmental and waste management standards and other norms in the international markets, including the Community;

 marketing and trade promotion;

 programmes designed to develop value added by-products.

This package of measures will be financed in ACP rice exporting nations on a national basis, by agreement of both Parties, through specific sectoral programmes in accordance with programming rules and methods and in the short term through unallocated EDF resources after a decision of the Council of Ministers.

4.

The Parties reiterate their commitment to cooperate closely in order to ensure that the ACP States can benefit fully from the Community trade preferences for rice. They agree on the importance of effective and transparent implementation of all rice exports to the Community of ACP origin.

5.

The Community will examine after the entry into force of the agreement the position of the ACP rice sector in the light of future changes occurring on the Community's rice market. To this end, the Parties agree to create with the ACP and representatives of the sector concerned, a joint working party, which shall meet annually. The Community further undertakes to consult the ACP States on any bilateral or multilateral decisions which may have an impact on the competitive position of the ACP rice industry in the Community market.

DECLARATION XXV

Joint Declaration on rum

The Parties recognise the importance of the rum sector for the economic and social development of several ACP countries and regions and its major contribution in providing employment, export earnings and Government revenues. They acknowledge that rum is a value added agro-industrial ACP product capable, if appropriate efforts are undertaken, of competing in a global economy. They therefore acknowledge the need to take all measures that might be necessary to overcome the competitive disadvantage, which ACP producers are presently facing. In this context they also note the undertaking contained in the Council and Commission Declaration of 24 March 1997 to fully take into account in any future negotiations and arrangements related to the rum sector, the impact of the EC-US agreement to eliminate the duty on certain spirituous beverages of the same date. They also recognise the urgent need for ACP producers to become less dependent on the commodity rum market.

The Parties therefore agree on the need for the rapid development of the ACP rum industry so as to allow exporters of ACP rum to compete on the Community and the international spirits markets. To this end, they agree to implement the following measures:

(1) Rum, arak and tafia originating in the ACP countries or regions falling under HS Code 22 08 40 shall be imported under this Agreement and any successor agreement to this Agreement, duty free and without quantitative limitations.

(2) The Community undertakes to ensure fair competition in the Community market and that ACP rum is not disadvantaged or discriminated against in the EU market, in relation to third country rum producers.

(3) The Community will, when considering any request for derogation to the provisions of Article 1.4(1) and (2) of Council Regulation (EC) No 1576/1989 of 29 March 1989 consult with and take account of the particular interests of ACP countries.

(4) The Community is prepared to provide sufficient funds to finance during the preparatory period, in consultation with the ACP sector concerned, an integrated sector-specific programme for the development of ACP exporters of rum, which could in particular include the following measures:

 enhancing the competitiveness of existing exporters of rum;

 assist in creation of rum marques or brands by ACP region or country;

 enabling marketing campaigns to be designed and implemented;

 assist ACP rum producers to meet environmental and waste management standards and other norms in the international markets including the Community market;

 assist the ACP rum industry to move out of bulk commodity production into higher value branded rum products.

This package of measures will be financed on a national and regional basis, by agreement of both parties, through specific sectoral programmes in accordance with programming rules and methods and, in the short term, through unallocated EDF resources after a decision of the Council of Ministers.

(5) The Community commits itself to examine the impact on the ACP industry of the indexation of the price point incorporated in the Memorandum of Understanding on rum in the agreement on white spirits of March 1997 at which duties on non-ACP rum are applied. In this light it will take, where necessary, appropriate measures.

(6) The Community undertakes to conduct appropriate consultations with the ACP through a joint working party, which shall meet regularly, on specific issues arising from these undertakings. The Community further undertakes to consult the ACP States on any bilateral or multilateral decisions, including tariff reductions and the enlargement of the Community, which may impact on the competitive position of the ACP rum industry in the Community market.

DECLARATION XXVI

Joint Declaration on beef and veal

1. The Community undertakes to ensure that the ACP States, beneficiaries of the Protocol on beef and veal, derive full benefits therefrom. To this end, it commits itself to give effect to the provisions of this protocol by enacting in a timely fashion appropriate rules and procedures.

2. The Community further undertakes to implement the protocol so that ACP States can market their beef and veal throughout the year without undue restrictions. In addition, the EC will assist the ACP beef and veal exporters to improve their competitiveness through, inter alia, addressing supply-side constraints, in accordance with the development strategies set out in this Agreement and within the context of National and Regional Indicative Programmes.

3. The Community will examine the requests of ACP Least-Developed-Countries to export their beef and veal under preferential conditions in the context of the actions it intends to take under the WTO's Integrated Framework for Least-Developed-Countries.

DECLARATION XXVII

Joint Declaration on the arrangements governing access to the markets of the French overseas departments for products originating in the ACP States referred to in Article 1(2) of Annex V

The Parties reaffirm that the provisions of Annex V apply to the relations between the French overseas departments and the ACP States.

The Community shall have the right during the life of the Agreement to amend, in the light of the economic development requirements of the French overseas departments, the arrangements governing access to the latter's markets for products originating in the ACP States referred to in Article 1(2) of Annex V.

When examining the possible application of this right, the Community will take into consideration the direct trade between the ACP States and the French overseas departments. Information and consultation procedures shall apply between the parties concerned in accordance with Article 12 of Annex V.

DECLARATION XXVIII

Joint Declaration on cooperation between ACP States and the neighbouring overseas countries and territories and French overseas departments

The Parties shall encourage greater regional cooperation in the Caribbean, the Pacific and the Indian Ocean involving ACP States and the neighbouring overseas countries and territories and French overseas departments.

The Parties call upon interested Parties to consult each other on the procedure for promoting such cooperation and, in this context, to take measures, in line with their respective policies and their specific situation in the region, which will permit initiatives in the economic field, including the development of trade, as well as in the social and cultural fields.

Where there are trade agreements involving French overseas departments, such agreements may provide for specific measures in favour of products from those departments.

Issues relating to cooperation in these different areas shall be brought to the attention of the Council of Ministers, so that it can be duly informed of the progress achieved.

DECLARATION XXIX

Joint Declaration on products covered by the common agricultural policy

The Parties recognise that products covered by the common agricultural policy follow specific rules and regulations, in particular with regard to safeguard measures. The provisions of the Agreement concerning the safeguard clause may be applied to these products only insofar as they are consistent with the specific nature of these rules and regulations.

DECLARATION XXX

ACP Declaration on Article 1 of Annex V

Conscious of the imbalance and the discriminatory effect resulting from the most-favoured-nation treatment applicable to products originating in the ACP States on the Community market under Article 1(2)(a) of Annex V, the ACP States reaffirm their understanding that the consultations provided for under this Article shall ensure that the ACP States' main exportable products benefit from treatment at least as favourable as that granted by the Community to countries enjoying the most-favoured-third-state treatment.

In addition similar consultations shall take place in cases where:

(a) one or more ACP States show potentialities for one or more specific products for which preferential third states enjoy more favourable treatment;

(b) one or more ACP States envisage exporting to the Community one or more specific products for which preferential third states enjoy more favourable treatment.

DECLARATION XXXI

Community Declaration on Article 5(2)(a) of Annex V

While agreeing to the reproduction of the text of Article 9(2)(a) of the Second ACP-EEC Convention in Article 5(2)(a) of Annex V, the Community reaffirms the interpretation of that text, namely that the ACP States shall grant to the Community treatment no less favourable than that which they grant to developed States under trade agreements where those States do not grant the ACP States greater preferences than those granted by the Community.

DECLARATION XXXII

Joint Declaration on non-discrimination

The Parties agree that notwithstanding specific provisions of Annex V to this Agreement, the Community shall not discriminate between ACP States in the trade regime provided for in the framework of that Annex, taking account however of the provisions of this Agreement and of specific autonomous initiatives in the multilateral context, such as that in favour of the least developed countries pursued by the Community.

DECLARATION XXXIII

Community Declaration on Article 8(3) of Annex V

Were the Community to adopt the strictly necessary measures referred to in this Article, it would endeavour to seek those which, by reason of their geographical scope or the types of products concerned, would least disturb the exports of the ACP States.

DECLARATION XXXIV

Joint Declaration on Article 12 of Annex V

The Parties agree that the consultations referred to in Article 12 of Annex V should take place in accordance with the following procedures:

(i) the two Parties will provide all necessary and relevant information on the specific issue(s) in good time to enable an early initiation of the discussions, and in any event not later than one month after the request for consultation is received,

(ii) the three-month consultation period will start from the date of receipt of this information. Within these three months, technical examination of such information shall be completed within one month, and joint consultations at the level of the Committee of Ambassadors shall be completed within two further months,

(iii) if the conclusion arrived at is not mutually acceptable, the matter shall be referred to the Council of Ministers,

(iv) in the event that no mutually acceptable solution is adopted by the Council of Ministers, the Council will decide what other steps should be taken in order to resolve the differences identified in the consultations.

DECLARATION XXXV

Joint Declaration relating to Protocol 1 of Annex V

If special tariff treatment were to be applied by the ACP States to imports of products originating in the Community, including Ceuta and Melilla, the provisions of Protocol 1 would apply mutatis mutandis. In all other cases where the treatment applied to imports by the ACP States necessitates the provision of proof of origin, those States shall accept certificates of origin drawn up in accordance with the relevant international agreements.

DECLARATION XXXVI

Joint Declaration relating to Protocol 1 of Annex V

1. For the purposes of applying Article 12(2)(c) of the Protocol, the shipping certificate, issued in the first port of embarkation for the Community, shall be equivalent to the through bill of lading for products covered by movement certificates issued in landlocked ACP States.

2. Products exported from landlocked ACP States which are warehoused elsewhere than in the ACP States or the countries and territories referred to in Annex III to the Protocol may be the subject of movement certificates issued under the circumstances referred to in Article 16 thereof.

3. For the purposes of Article 15(4) of the Protocol, certificates EUR.1 issued by a competent authority and endorsed by the customs authorities will be accepted.

4. In order to help ACP enterprises in their efforts to find new sources of supply with a view to benefiting to the maximum extent from the provisions of the Protocol as regards cumulation of origin, steps will be taken to ensure that the Centre for the Development of Enterprise provides assistance to ACP operators in the establishment of appropriate contacts with suppliers in the ACP States, the Community and the countries and territories, as well as to promote relations in the field of industrial cooperation among the operators concerned.

DECLARATION XXXVII

Joint Declaration relating to Protocol 1 of Annex V on the origin of fishery products

The Community acknowledges the right of the coastal ACP States to the development and rational exploitation of the fishery resources in all waters within their jurisdiction.

The Parties agree that the existing rules of origin have to be examined in order to determine what possible changes may have to be made in the light of the first paragraph.

Conscious of their respective concerns and interests, the ACP States and the Community agree to continue examining the problem posed by the entry, onto Community markets, of fishery products from catches made in zones within the national jurisdiction of the ACP States, with a view to arriving at a solution satisfactory to both sides. This examination will take place in the Customs Cooperation Committee, assisted, when necessary, by the appropriate experts, after entry into force of the Agreement. The results of this examination shall be submitted, within the first year of application of the Agreement, to the Committee of Ambassadors and, at the latest during the second year, to the Council of Ministers for their consideration with a view to arriving at a solution satisfactory to both sides.

For the time being, as regards the processing of fishery products in the ACP States, the Community declares that it is willing to examine with an open mind requests for derogations from the rules of origin for processed products in this production sector based on the existence of compulsory landing requirements provided for in fishery agreements with third countries. The examination the Community is to make will take into account in particular the fact that the third countries concerned should ensure the normal market for such productions, following processing, insofar as the latter are not intended for national or regional consumption.

DECLARATION XXXVIII

Community Declaration relating to Protocol 1 of Annex V on the extent of territorial waters

The Community, recalling that the relevant acknowledged principles of international law restrict the maximum extent of territorial waters to 12 nautical miles, declares that it will take account of this limit in applying the provisions of the Protocol wherever the latter refers to this concept.

DECLARATION XXXIX

ACP Declaration relating to Protocol 1 of Annex V on the origin of fishery products

The ACP States reaffirm the point of view they expressed throughout the negotiations on the rules of origin in respect of fishery products and consequently maintain that following the exercise of their sovereign rights over fishery resources in the waters within their national jurisdiction, including the exclusive economic zone, as defined in the United Nations Convention on the Law of the Sea, all catches effected in those waters and obligatorily landed in ports of the ACP States for processing should enjoy originating status.

DECLARATION XL

Joint Declaration on the application of the value tolerance rule in the tuna sector

The European Community undertakes to implement adequate provisions to give full effect to the application in the tuna sector of the value tolerance rule, provided for in Article 4(2) of Protocol 1 of Annex V. To this end, the Community will submit by the date of signature of this Agreement the conditions under which the 15 % non-originating tuna may be used pursuant to this Article.

The Community proposal will specify how the method of calculation shall be based on the EUR. 1 movement certificate.

The two Parties agree, if difficulties arise in achieving the flexibility aimed at by the application of this method, to undertake a revision of the method after two years of its application.

DECLARATION XLI

Joint Declaration on Article 6(11) of Protocol 1 of Annex V

The Community agrees to consider, in the light of Article 40 of Protocol 1, and on a case-by-case basis, any substantiated requests presented after the signing of the Agreement regarding textile products excluded from cumulation with neighbouring developing countries (Article 6(11) of Protocol 1).

DECLARATION XLII

Joint Declaration on rules of origin: cumulation with South Africa

The ACP-EC Customs Cooperation Committee is prepared to examine as soon as possible any requests for cumulation of working and processing under Article 6(10) of Protocol 1 of Annex V coming from regional bodies representing a high level of regional economic integration.

DECLARATION XLIII

Joint Declaration on Annex 2 to Protocol 1 of Annex V

If in the application of the rules contained in Annex II, ACP States' exports are adversely affected, the Community will examine and, where necessary, adopt appropriate corrective measures to remedy the situation with a view to re-establishing the ex-ante situation (Decision 2/97 of the Council of Ministers).

The Community has noted the requests made by ACP States on rules of origin in the context of the negotiations. The Community agrees to consider any substantiated requests for improvment of the rules of origin contained in Annex II in the light of Article 40 of Protocol 1 and on a case-by-case basis.

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