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Agreement
Amending the Fourth ACP-EC
Convention of Lomé
Signed in Mauritius
on 4 November 1995
Brussels, 207 October 1995
ACP-CE 2163/95
 
|
Disclaimer:
UNOFFICIAL COPY
Readers should note that this
is not a formal legal document.
291A0817(01)
Fourth ACP-EEC Convention signed at Lomé on 15 December 1989
- Financial Protocol - Protocol 1 concerning the definition of the concept
of 'originating products' and methods of administrative cooperation - Protocol
2 on the operating expenditure of the joint institutions - Protocol 3 on
privileges and immunities - Protocol 4 on the implementation of Article
178 - Protocol 5 on bananas - Protocol 6 on rum - Protocol 7 on beef and
veal - Protocol 8 on sugar - Protocol 9 concerning products within the
province of the European Coal and Steel Community - Final Act - Joint Declarations
- Unilateral Declarations
/* LOME 4 */
Official Journal L 229 , 17/08/1991 p. 0003 - 0280
Finnish special edition....: Chapter 11 Volume 17 p. 59
Swedish special edition...: Chapter 11 Volume 17 p. 59
Amendments:
Adopted by 391D0400
(OJ L 229 17.08.91 p.1)
See 293D1113(01)
(OJ L 280 13.11.93 p.26)
Amended by 295A0531(01)
(OJ L 120 31.05.95 p.38)
Completed by 295A1230(01)
(OJ L 317 30.12.95 p.3)
See 295D1025(02)
(OJ L 255 25.10.95 p.17)
Amended by 295D1230(08)
(OJ L 327 30.12.95 p.31)
See 295D1230(09)
(OJ L 327 30.12.95 p.32)
Adopted by 395D0185
(OJ L 120 31.05.95 p.37)
Derogation in 296D0924(01)
(OJ L 243 24.09.96 p.38)
Derogation in 296D0924(02)
(OJ L 243 24.09.96 p.41)
Amended by 297A0811(01)
(OJ L 220 11.08.97 p.2)
Amended by 297A1021(01)
(OJ L 287 21.10.97 p.31)
Derogation in 297D0405(02)
(OJ L 091 05.04.97 p.31)
Amended by 297D0811(02)
(OJ L 220 11.08.97 p.6)
Derogation in 297D1008(01)
(OJ L 275 08.10.97 p.5)
Derogation in 297D1206(01)
(OJ L 335 06.12.97 p.19)
Amended by 298A0529(01)
(OJ L 156 29.05.98 p.3)
Derogation in 298D1110(01)
(OJ L 299 10.11.98 p.27)
Derogation in 299D0120(01)
(OJ L 015 20.01.99 p.6)
Derogation in 299D0120(02)
(OJ L 015 20.01.99 p.8)
Derogation in 299D0505(01)
(OJ L 117 05.05.99 p.49)
Derogation in 299D0709(01) (OJ L 174 09.07.99 p.21)
Implemented by 399D0214
(OJ L 075 20.03.99 p.32)
Text:
FOURTH ACP-EEC CONVENTION signed at Lomé
on 15 December 1989
CONTENTS
Page
>TABLE POSITION>
PREAMBLE
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 PRESIDENT OF THE PORTUGUESE REPUBLIC,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND,
Contracting Parties to the Treaty establishing the European Coal and
Steel Community and the Treaty establishing the European Economic Community,
hereinafter referred to as 'the Community`, the States of the Community
being hereinafter referred to as 'Member States`,
and
THE COUNCIL AND THE COMMISSION OF THE EUROPEAN COMMUNITIES,
of the one part, and
THE PRESIDENT OF THE PEOPLE'S 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 PEOPLE'S REPUBLIC OF BÉNIN,
THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
THE PRESIDENT OF THE PEOPLE'S FRONT, HEAD OF THE STATE,
HEAD OF THE GOVERNMENT 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 ISLAMIC FEDERAL REPUBLIC OF THE COMOROS,
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF THE CONGO,
THE PRESIDENT OF THE REPUBLIC OF THE 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 PEOPLE'S DEMOCRATIC REPUBLIC OF ETHIOPIA,
THE PRESIDENT OF THE REPUBLIC OF FIJI,
THE PRESIDENT OF THE GABONESE REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF THE GAMBIA,
THE HEAD OF STATE AND CHAIRMAN OF THE PROVISIONAL NATIONAL
DEFENCE COUNCIL OF THE REPUBLIC OF GHANA,
HER MAJESTY THE QUEEN OF GRENADA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA,
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA-BISSAU,
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA,
THE PRESIDENT OF THE COOPERATIVE REPUBLIC OF GUYANA,
THE PRESIDENT OF THE REPUBLIC OF HAÏTI,
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 DEMOCRATIC REPUBLIC OF MADAGASCAR,
THE PRESIDENT OF THE REPUBLIC OF MALAWI,
THE PRESIDENT OF THE REPUBLIC OF MALI,
THE CHAIRMAN OF THE MILITARY COMMITTEE FOR NATIONAL SAFETY,
HEAD OF STATE OF THE ISLAMIC REPUBLIC OF MAURITANIA,
HER MAJESTY THE QUEEN OF MAURITIUS,
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF MOZAMBIQUE,
THE PRESIDENT OF THE SUPREME MILITARY COUNCIL,
HEAD OF STATE OF NIGER,
THE HEAD OF THE FEDERAL GOVERNMENT OF NIGERIA,
THE PRESIDENT OF THE REPUBLIC OF UGANDA,
HER MAJESTY THE QUEEN OF PAPUA NEW GUINEA,
THE PRESIDENT OF THE RWANDESE REPUBLIC,
HER MAJESTY THE QUEEN OF SAINT CHRISTOPHER AND NEVIS,
HER MAJESTY THE QUEEN OF SAINT LUCIA,
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
THE HEAD OF STATE OF WESTERN 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 SOMALI DEMOCRATIC REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF THE 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 REPUBLIC OF CHAD,
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 GOVERNMENT OF THE REPUBLIC OF VANUATU,
THE PRESIDENT OF THE REPUBLIC OF ZAIRE,
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
THE PRESIDENT OF THE REPUBLIC OF ZIMBABWE,
WHOSE STATES ARE HEREINAFTER REFERRED TO AS 'ACP STATES`,
of the other part,
HAVING REGARD to the Treaty establishing the European Economic Community
and the Treaty establishing the European Coal and Steel Community, on the
one hand, and the Georgetown Agreement constituting the group of African,
Caribbean and Pacific States, on the other;
ANXIOUS to reinforce, on the basis of complete equality between partners
and in their mutual interest, close and continuing cooperation in a spirit
of international solidarity;
WISHING to demonstrate their common desire to maintain and develop
the friendly relations existing between their countries, in accordance
with the principles of the Charter of the United Nations;
REAFFIRMING their adherence to the principles of the said Charter and
their faith in fundamental human rights, in all aspects of human dignity
and in the worth of the human person, as the central agent and beneficiary
of development, in the equal rights of men and women and of nations, large
and small;
RECALLING the Universal Declaration of Human Rights, the International
Covenant on Civil and Political Rights, and the International Covenant
on Economic, Social and Cultural Rights; recognizing the need to respect
and guarantee civil and political rights and to strive to bring about full
enjoyment of economic, social and cultural rights;
WELCOMING 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 Covention on Human Rights as positive regional
contributions to the respect of human rights in the Community and in the
ACP States;
RESOLVED to step up their common efforts to contribute towards international
cooperation and to the solution of international problems of economic,
social, intellectual and humanitarian nature, in conformity with the aspirations
of the international community towards the establishment of a new, more
just and more balanced world order;
RESOLVED 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 populations;
HAVE DECIDED to conclude this Convention and to this end have designated
as their Plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS:
André GEENS,
Minister for Development Cooperation;
HER MAJESTY THE QUEEN OF DENMARK:
Jacob RYTTER,
Permanent Representative to the European Communities;
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
Irmgard ADAM-SCHWAETZER,
Deputy Minister, Ministry for Foreign Affairs;
THE PRESIDENT OF THE HELLENIC REPUBLIC:
Yannis POTTAKIS,
Deputy Minister, Ministry for Foreign Affairs;
HIS MAJESTY THE KING OF SPAIN:
Pedro SOLBES,
State Secretary for the European Communities;
THE PRESIDENT OF THE FRENCH REPUBLIC:
Jacques PELLETIER,
Minister for Cooperation and Development;
THE PRESIDENT OF IRELAND:
Seán CALLEARY, TD,
Minister of State at the Department of Foreign Affairs,
responsible for Development Aid;
THE PRESIDENT OF THE ITALIAN REPUBLIC:
Claudio LENOCI,
Under-Secretary of State, Ministry for Foreign Affairs;
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:
Joseph WEYLAND,
Permanent Representative to the European Communities;
HER MAJESTY THE QUEEN OF THE NETHERLANDS:
S. H. BLOMBERGEN,
Chargé d'Affaires to Accra;
THE PRESIDENT OF THE PORTUGUESE REPUBLIC:
José Manuel DURÃO BARROSO,
State Secretary, Ministry for Foreign Affairs and Cooperation;
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND:
Lord REAY,
Government Whip;
THE COUNCIL AND THE COMMISSION OF THE EUROPEAN COMMUNITIES:
Michel ROCARD,
Prime Minister of the French Republic,
President-in-Office of the Council of the European Communities;
Manuel MARÍN,
Vice-President of the Commission of the European Communities;
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF ANGOLA:
Emilio José de CARVALHO GUERRA,
Head of the Mission of the People's Republic of Angola to the European
Communities;
HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA:
James THOMAS,
High Commissioner of Antigua and Barbuda;
THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS:
Patricia Elaine Joan RODGERS,
Head of the Mission of the Commonwealth of the Bahamas;
THE HEAD OF STATE OF BARBADOS:
Edward Evelyn GREAVES,
Minister of Trade, Industry and Commerce;
HER MAJESTY THE QUEEN OF BELIZE:
Sir Edney CAIN,
High Commissioner to the United Kingdom;
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF BENIN:
Amos ELEGBE,
Minister for Trade, Craft Trades and Tourism;
THE PRESIDENT OF THE REPUBLIC OF BOTSWANA:
Archibald M. MOGWE
Minister of Mineral Resources and Water Affairs;
THE PRESIDENT OF THE PEOPLE'S FRONT, HEAD OF STATE,
HEAD OF THE GOVERNMENT OF BURKINA FASO:
Pascal ZAGRE,
Minister for Planning and Cooperation;
THE PRESIDENT OF THE REPUBLIC OF BURUNDI:
D. R. Salvator SAHINGUVU,
State Secretary to the Prime Minister responsible for Planning;
THE PRESIDENT OF THE REPUBLIC OF CAMEROON:
Elisabeth TANKEU,
Minister for Planning and Regional Development;
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE:
Adao ROCHA,
Minister for Industry and Energy;
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC:
Thierry INGABA,
State Secretary for Planning and International Cooperation;
THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS:
Ali MLAHAILI,
Ambassador to the French Republic;
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF THE CONGO:
Pierre MOUSSA,
Minister responsible for Planning and Economic Affairs;
THE PRESIDENT OF THE REPUBLIC OF THE COTE D'IVOIRE:
Moise Koffi KOUMOUE,
Minister for Economic Affairs and Finance;
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI:
Ahmed IBRAHIM ABDI,
Minister of Labour and Social Security;
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA:
Charles Angelo SAVARIN,
Ambassador to the Kingdom of Belgium;
THE PRESIDENT OF THE DOMINICAN REPUBLIC:
Joaquín RICARDO,
Minister of Foreign Affairs;
THE PRESIDENT OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF ETHIOPIA:
Aklilu AFEWORK,
Minister,
Head of the Office of the State Committee for Foreign Economic Relations;
THE PRESIDENT OF THE REPUBLIC OF FIJI:
Kaliopate TAVOLA,
Head of the Mission of Fiji to the European Communities;
THE PRESIDENT OF THE GABONESE REPUBLIC:
Pascal NZE,
Minister for Planning, Development and Economic Affairs;
THE PRESIDENT OF THE REPUBLIC OF THE GAMBIA:
Saihou S. SABALLY,
Minister of Finance and Trade;
THE HEAD OF STATE AND CHAIRMAN OF THE PROVISIONAL NATIONAL
DEFENCE COUNCIL OF THE REPUBLIC OF GHANA:
Dr KWESI BOTCHWEY, PNDC,
Secretary for Finance and Economic Planning;
HER MAJESTY THE QUEEN OF GRENADA:
Denneth Matthew MODESTE,
Permanent Secretary,
Ministry for External Affairs;
THE PRESIDENT OF THE REPUBLIC OF GUINEA:
Ibrahim SYLLA,
Minister for Planning and International Cooperation;
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA-BISSAU:
Aristides MENEZES,
State Secretary, Ministry for International Cooperation;
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA:
Alejandro Evuna OWONO,
Minister of State entrusted with Missions to the Presidency of the
Republic;
THE PRESIDENT OF THE COOPERATIVE REPUBLIC OF GUYANA:
James H. E. MATHESON,
Ambassador Extraordinary,
Head of the Mission of the Cooperative Republic of Guyana to the European
Communities;
THE PRESIDENT OF THE REPUBLIC OF HAÏTI:
Yvon PERRIER,
Minister for Foreign Affairs and Cults;
THE HEAD OF STATE OF JAMAICA:
Leslie Armon WILSON,
Ambassador,
Head of the Mission of Jamaica to the European Communities;
THE PRESIDENT OF THE REPUBLIC OF KENYA:
Dr Zacharia T. ONYONKA, MP,
Minister for Planning and National Development;
THE PRESIDENT OF THE REPUBLIC OF KIRIBATI:
Michael T. SOMARE,
Minister for Foreign Affairs of Papua New Guinea;
HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO:
Dr M. M. SEFALI,
Minister of Planning, Economic and Manpower Development;
THE PRESIDENT OF THE REPUBLIC OF LIBERIA:
Dr Elijah TAYLOR,
Minister of Planning and Economic Affairs;
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF MADAGASCAR:
Georges Yvan SOLOFOSON,
Minister for Trade;
THE PRESIDENT OF THE REPUBLIC OF MALAWI:
R. W. CHIRWA, MP,
Minister of Trade, Industry and Tourism;
THE PRESIDENT OF THE REPUBLIC OF MALI:
Dr N'Golo TRAORE,
Minister for Foreign Affairs and International Cooperation;
THE CHAIRMAN OF THE MILITARY COMMITTEE FOR NATIONAL SAFETY,
HEAD OF STATE OF THE ISLAMIC REPUBLIC OF MAURITANIA,
Mohamed Lemine Ould N'DIAYANE,
Lieutenant-Colonel,
Member and Permanent Secretary of the Military Committee for National
Safety;
HER MAJESTY THE QUEEN OF MAURITIUS:
Murlidass DULLOO,
Minister for Agriculture, Fisheries and Natural Resources;
THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF MOZAMBIQUE:
Pascoal Manuel MOCUMBI,
Minister for Foreign Affairs;
THE PRESIDENT OF THE SUPREME MILITARY COUNCIL,
HEAD OF STATE OF NIGER:
Yacouba SANDI,
State Secretary in the Ministry for Foreign Affairs and Cooperation,
responsible for Cooperation;
THE HEAD OF THE FEDERAL GOVERNMENT OF NIGERIA:
Dr Chu S. P. OKONGWU,
Minister of Finance and Economic Development;
THE PRESIDENT OF THE REPUBLIC OF UGANDA:
Abbey KAFUMBE-MUKASA,
Deputy Minister of Finance;
HER MAJESTY THE QUEEN OF PAPUA NEW GUINEA:
Michael T. SOMARE, CH,
Minister for Foreign Affairs;
THE PRESIDENT OF THE RWANDESE REPUBLIC:
Aloys NSEKALIJE,
Colonel,
Minister for Industry and Craft Trades;
HER MAJESTY THE QUEEN OF SAINT CHRISTOPHER AND NEVIS:
Edwin LAURENT,
Minister Counsellor of the High Commission of Eastern Caribbean States
in London;
HER MAJESTY THE QUEEN OF SAINT LUCIA:
Edwin LAURENT,
Minister Counsellor of the High Commission of Eastern Caribbean States
in London;
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES:
Edwin LAURENT,
Minister Counsellor of the High Commission of Eastern Caribbean States
in London;
THE HEAD OF STATE OF WESTERN SAMOA:
Amua L. IOANE,
High Commissioner;
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ
AND PRÍNCIPE:
Carlos FERREIRA,
Minister for Social Infrastructure and the Environment;
THE PRESIDENT OF THE REPUBLIC OF SENEGAL:
Seydina Oumar SY,
Minister for Trade;
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES:
Claude MOREL,
Chargé d'affaires a.i. of the Seychelles Embassy in Paris;
THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE:
Leonard S. FOFANAH,
Minister of State,
Ministry of National Development and Economic Planning;
HER MAJESTY THE QUEEN OF THE SOLOMON ISLANDS:
Lord REAY,
Government Whip;
THE PRESIDENT OF THE SOMALI DEMOCRATIC REPUBLIC:
Ali HASSAN ALI,
Ambassador,
Head of the Mission of the Somali Democratic Republic to the European
Communities;
THE PRESIDENT OF THE REPUBLIC OF THE SUDAN:
Dr SAYED ALI ZAKI,
Minister of Finance and Economic Planning;
THE PRESIDENT OF THE REPUBLIC OF SURINAME:
Donald Aloysius MACLEOD,
Ambassador Extraordinary,
Head of the Mission of the Republic of Suriname to the European Communities;
HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND:
NKOMENI Douglas NTIWANE,
Senator,
Minister of Commerce, Industry and Tourism;
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA:
Joseph A. T. MUWOWO,
Minister Plenipotentiary,
Chargé d'affaires a.i. of the Embassy of the United Republic
of Tanzania to the European Communities;
THE PRESIDENT OF THE REPUBLIC OF CHAD:
Ibni Oumar Mahamat SALEH,
Minister for Planning and Cooperation;
THE PRESIDENT OF THE TOGOLESE REPUBLIC:
Barry Moussa BARQUE,
Minister for Planning and Mining;
HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA:
His Royal Highness Crown Prince TUPOUTO'A,
Minister for Foreign Affairs;
THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO:
Dr Sahadeo BASDEO,
Senator,
Minister of External Affairs and International Trade;
HER MAJESTY THE QUEEN OF TUVALU:
Peter FEIST,
Honorary Consul to the Federal Republic of Germany;
THE GOVERNMENT OF THE REPUBLIC OF VANUATU:
Harold Colin QUALAO,
Minister of Trade, Commerce, Cooperatives, Industry and Energy;
THE PRESIDENT OF THE REPUBLIC OF ZAIRE:
MOBUTU NYIWA,
State Commissioner for International Cooperation;
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA:
RABBISON MAFESHI CHONGO, M. P.,
Minister of Commerce and Industry;
THE PRESIDENT OF THE REPUBLIC OF ZIMBABWE:
Dr O. M. MUNYARADZI,
Minister of Trade and Commerce;
WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
PART ONE
GENERAL PROVISIONS OF ACP-EEC COOPERATION
Chapter 1 Objectives and principles of cooperation
Article 1
The Community and its Member States, of the one part, and the ACP States,
of the other part (hereinafter referred to as the 'Contracting Parties`),
hereby conclude this cooperation Convention in order to promote and expedite
the economic, cultural and social development of the ACP States and to
consolidate and diversify their relations in a spirit of solidarity and
mutual interest.
The Contracting Parties thereby affirm their undertaking to continue,
strengthen and render more effective the system of cooperation established
under the first, second and third ACP-EEC Conventions and confirm the special
character of their relations, based on their reciprocal interest, and the
specific nature of their cooperation.
The Contracting Parties hereby express their resolve to intensify their
effort to create, with a view to a more just and balanced international
economic order, a model for relations between developed and developing
states and to work together to affirm in the international context the
principles underlying their cooperation.
Article 2
ACP-EEC cooperation, underpinned by a legally binding system and the
existence of joint institutions, shall be exercised on the basis of the
following fundamental principles:
- equality between partners, respect for their sovereignty, mutual
interest and interdependence,
-the right of each State to determine its own political, social, cultural
and economic policy options,
-security of their relations based on the acquis of their system of
cooperation.
Article 3
The ACP States shall determine the development principles, strategies
and models for their economies and societies in all sovereignty.
Article 4
Support shall be provided in ACP-EEC cooperation for the ACP States'
efforts to achieve comprehensive self-reliant and self-sustained development
based on their cultural and social values, their human capacities, their
natural resources and their economic potential in order to promote the
ACP States' social, cultural and economic progress and the well-being of
their populations through the satisfaction of their basic needs, the recognition
of the role of women and the enhancement of people's capacities, with respect
for their dignity.
Such development shall be based on a sustainable balance between its
economic objectives, the rational management of the environment and the
enhancement of natural and human resources.
Article 5
1. Cooperation shall be directed towards development centred on man,
the main protagonist and beneficiary of development, which thus entails
respect for and promotion of all human rights. Cooperation operations shall
thus be conceived in accordance with the positive approach, where respect
for human rights is recognized as a basic factor of real development and
where cooperation is conceived as a contribution to the promotion of these
rights.
In this context development policy and cooperation are closely linked
with the respect for and enjoyment of fundamental human rights. The role
and potential of initiatives taken by individuals and groups shall also
be recognized and fostered in order to achieve in practice real participation
of the population in the development process in accordance with Article
13.
2. Hence the Parties reiterate their deep attachment to human dignity
and human rights, which are legitimate aspirations of individuals and peoples.
The rights in question are all human rights, the various categories thereof
being indivisible and inter-related, each having its own legitimacy: non-discriminatory
treatment; fundamental human rights; civil and political rights; economic,
social and cultural rights.
Every individual shall have the right, in his own country or in a host
country, to respect for his dignity and protection by the law.
ACP-EEC cooperation shall help abolish the obstacles preventing individuals
and peoples from actually enjoying to the full their economic, social and
cultural rights and this must be achieved through the development which
is essential to their dignity, their well-being and their self-fulfilment.
To this end, the Parties shall strive, jointly or each in its own sphere
of responsibility, to help eliminate the causes of situations of misery
unworthy of the human condition and of deep-rooted economic and social
inequalities.
The Contracting Parties hereby reaffirm their existing obligations
and commitment in international law to strive to eliminate all forms of
discrimination based on ethnic group, origin, race, nationality, colour,
sex, language, religion or any other situation. This commitment applies
more particularly to any situation in the ACP States or in the Community
that may adversely affect the pursuit of the objectives of the Convention,
and to the system of apartheid, having regard also to its destabilizing
effects on the outside. The Member States (and/or, where appropriate, the
Community itself) and the ACP States will continue to ensure, through the
legal or administrative measures which they have or will have adopted,
that migrant workers, students and other foreign nationals legally within
their territory are not subjected to discrimination on the basis of racial,
religious, cultural or social differences, notably in respect of housing,
education, health care, other social services and employment.
3. At the request of the ACP States, financial resources may be allocated,
in accordance with the rules governing development finance cooperation,
to the promotion of human rights in the ACP States through specific schemes,
public or private, that would be decided, particularly in the legal sphere,
in consultation with bodies of internationally recognized competence in
the field. Resources may also be given to support the establishment of
structures to promote human rights. Priority shall be given to schemes
of regional scope.
Article 6
1. With a view to attaining more balanced and self-reliant economic
development in the ACP States, special efforts shall be made under this
Convention to promote rural development, food security for the people,
rational management of natural resources, and the preservation, revival
and strengthening of agricultural production potential in the ACP States.
2. The Contracting Parties recognize that priority must be given to
environmental protection and the conservation of natural resources, which
are essential conditions for sustainable and balanced development from
both the economic and human viewpoints.
Article 7
The Community and the ACP States shall give special importance and
high priority to regional cooperation and integration. In this context,
the Convention shall offer effective support for the ACP States' efforts
to organize themselves into regional groupings and to step up their cooperation
at regional and inter-regional level with a view to promoting a new, more
just and more balanced economic order.
Article 8
The Contracting Parties acknowledge the need to accord special treatment
to the least-developed ACP States and to take account of the specific difficulties
confronting the landlocked and island ACP States. They shall pay special
attention to improving the living conditions of the poorest sections of
the population.
Cooperation shall comprise, inter alia, special treatment when determining
the volume of financial resources and the conditions attached thereto in
order to enable the least-developed ACP States to overcome structural and
other obstacles to their development.
For the landlocked and island ACP States, cooperation shall be aimed
at devising and encouraging specific operations to deal with development
problems caused by their geographical situations.
Article 9
In order to step up the effectiveness of the instruments of this Convention,
the Contracting Parties shall adopt, in the framework of their respective
responsibilities, guidelines, priorities and measures conducive to attaining
the objectives set out in this Convention and agree to pursue, in accordance
with the principles set out in Article 2, the dialogue within joint institutions
and in the coordinated implementation of development finance cooperation
and the other cooperation instruments.
Article 10
The Contracting Parties shall, each as far as it is concerned in the
framework of this Convention, take all appropriate measures, whether general
or particular, to ensure the fulfilment of the obligations arising from
this Convention and to facilitate the pursuit of its objectives. They shall
refrain from any measures liable to jeopardize the attainment of the objectives
of this Convention.
Article 11
Within the scope of their respective responsibilities, the institutions
of this Convention shall examine periodically the results of the application
thereof, provide any necessary impetus and take any relevant decision or
measure for the attainment of its objectives.
Any question that might directly hamper the effective attainment of
the objectives of this Convention may be raised in the context of the institutions.
Consultations shall take place within the Council of Ministers at the
request of either Contracting Party in cases provided for in this Convention
or where difficulties arise with the application or interpretation thereof.
Article 12
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 Convention's objectives are concerned, it shall inform in good time
the said States of its intentions. Towards this end, the Commission shall
communicate regularly to the Secretariat of the ACP States any proposals
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 in good time 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 shall also
be provided with adequate information on the entry into force of such decisions,
in advance whenever possible.
Chapter 2 Objectives and guidelines of the Convention in the main areas
of cooperation
Article 13
Cooperation shall be aimed at supporting development in the ACP States,
a process centred on man himself and rooted in each people's culture. It
shall back up the policies and measures adopted by those States to enhance
their human resources, increase their own creative capacities and promote
their cultural identities. Cooperation shall also encourage participation
by the population in the design and execution of development operations.
Account shall be taken, in the various fields of cooperation, and at
all the different stages of the operations executed, of the cultural dimension
and social implications of such operations and of the need for both men
and women to participate and benefit on equal terms.
Article 14
Cooperation shall entail mutual responsibility for preservation of
the natural heritage. In particular, it shall attach special importance
to environmental protection and the preservation and restoration of natural
equilibria in the ACP States. Cooperation schemes in all areas shall therefore
be designed to make the objectives of economic growth compatible with development
that respects natural equilibria and brings about lasting results in the
service of man.
In the framework of efforts to protect the environment and restore
natural blances, cooperation shall help promote specific operations concerning
the conservation of natural resources, renewable and non-renewable, the
protection of ecosystems and the control of drought, desertification and
deforestation; other operations on specific themes shall also be undertaken
(notably locust control, the protection and utilization of water resources,
the preservation of tropical forests and biological diversity, the promotion
of a better balance between urban and rural areas, and the urban environment).
Article 15
Agricultural cooperation shall be aimed at the pursuit of food self-sufficiency
and food security in the ACP States, developing and organizing their productive
systems, improving the living standards and conditions and the life-styles
of the rural population and achieving the balanced development of rural
areas.
Operations in this field shall be designed and executed to support
the agricultural and food policies or strategies adopted by the ACP States.
Article 16
Cooperation in the field of mining and energy shall be directed at
promoting and expediting, in the mutual interest, diversified economic
development, deriving full benefit from the ACP States' human potential
and natural resources, and at fostering better integration of these and
other sectors and their complementarity with the rest of the economy.
Cooperation shall be aimed at creating and consolidating the cultural,
social and economic environment and the infrastructure required to achieve
that objective.
Support shall be provided for the ACP States' efforts to devise and
implement energy policies suited to their situation, notably the gradual
reduction of the dependence of the majority of them on imported petroleum
products and the development of new and renewable sources of energy.
Cooperation shall be aimed at encouraging improved exploitation of
energy and mining resources by taking account of the energy component in
the development of the different economic and social sectors and thus helping
to improve living conditions and the environment, leading to the better
conservation of biomass resources, particularly fuelwood.
Article 17
The Community and the ACP States acknowledge that industrialization
is a driving force - complementary to agricultural and rural development
- in promoting the economic transformation of the ACP States in order to
achieve self-sustained growth and balanced and diversified development.
Industrial development is needed to enhance the productivity of the ACP
economies so that they can meet basic human needs and step up the competitive
participation of the ACP States in world trade by way of selling more value-added
products.
Article 18
Given the extreme dependence of the economies of the vast majority
of ACP States on their export of commodities, the Contracting Parties agree
to pay particular attention to their cooperation in this sector with a
view to supporting ACP States' policies or strategies designed:
- on the one hand, to foster diversification, both horizontal and vertical,
of the ACP economies, in particular through the development of processing,
marketing, distribution and transport (PMDT), and
-on the other hand, to improve the competitiveness of the ACP States'
commodities on world markets through the reorganization and rationalization
of their production, marketing and distribution activities.
Article 19
The aim of cooperation in fisheries shall be to help the ACP States
to develop their fishery resources in order to expand production for domestic
consumption as part of their efforts to achieve increased food security
and increase production for export. Such cooperation shall be designed
to serve the mutual interests of the Parties, in accordance with their
fishery policies.
Chapter 3 Widening participation in cooperation activities
Article 20
In accordance with Articles 2, 3 and 13 and in order to encourage all
parties from the ACP States and the Community which are in a position to
contribute to the autonomous development of the ACP States to put forward
and implement initiatives, cooperation shall also support, within limits
laid down by the ACP States concerned, development operations put forward
by economic, social and cultural organizations in the framework of decentralized
cooperation, in particular where they combine the efforts and resources
of organizations from the ACP States and their counterparts from the Community.
This form of cooperation shall be aimed in particular at making the capabilities,
original operating methods and resources of such parties available to the
development of the ACP States.
The parties referred to in this Article are decentralized public authorities,
rural and village groupings, cooperatives, firms, trade unions, teaching
and research centres, non-governmental development organizations, various
associations and all groups and parties which are able and wish to make
their own spontaneous and original contribution to the development of ACP
States.
Article 21
Cooperation shall encourage and support the initiatives of the ACP
parties referred to in Article 20, provided they correspond with the priorities,
guidelines and development methods adopted by the ACP States. In this framework,
cooperation shall support either the independent activities of ACP parties
or the activities of ACP parties which are combined with support from similar
parties from the Community which make their capabilities, experience, technological
and organizational capacities or financial resources available to them.
Cooperation shall encourage parties from the ACP States and the Community
to provide supplementary financial and technical resources for the development
effort. Cooperation may provide decentralized cooperation operations with
financial and/or technical support drawn from the resources of the Convention
under the conditions laid down in Article 22.
This form of cooperation shall be organized in accordance with the
role and the prerogatives of the public authorities of the ACP States.
Article 22
Decentralized cooperation operations may be supported through the instruments
of development finance cooperation, with the approval of the ACP States
concerned, preferably from the programming stage, of the principle of and
the conditions for providing support for this form of copperation. Such
support shall be provided to the extent to which it is necessary for the
successful implementation of the proposed operations provided the usefulness
of the latter has been recognized and in accordance with the provisions
for development finance cooperation. Projects under this form of cooperation
may be linked, or not, with programmes in the concentration sectors of
the indicative programmes with a priority for those linked to the concentration
sectors.
Chapter 4 Principles governing the instruments of cooperation Article
23
In order to contribute towards achieving the aims of this Convention,
the Contracting Parties shall deploy cooperation instruments that correspond
to the principles of solidarity and mutual interest, adapted to the economic,
cultural and social situation in the ACP States and in the Community and
to developments in their international environment.
These instruments shall be directed mainly, by strengthening the established
mechanisms and systems, at:
- increasing trade between the Parties,
-supporting the ACP States' efforts to achieve self-reliant development
by stepping up their capacity to innovate and to adapt and transform technology,
-supporting the ACP States' structural adjustment efforts and thus
contributing to the attenuation of the debt burden,
-helping the ACP States to gain access to the capital markets and encouraging
direct private European investment to contribute towards the development
of the ACP States,
- remedying the instability of export earnings from the ACP States'
agricultural commodities and helping those countries to cope with serious
disruptions affecting their mining industries.
Article 24
In order to promote and diversify trade between the Contracting Parties,
the Community and the ACP States are agreed on:
- general trade provisions,
-special arrangements for Community import of certain ACP products,
-arrangements to promote the development of the ACP States' trade and
services, including tourism,
-a system of reciprocal information and consultation designed to help
apply the trade cooperation provisions of this Convention effectively.
Article 25
The aim of the general trade arrangements, which are based on the Contracting
Parties' international obligations, shall be to provide a firm and solid
foundation for trade cooperation between the ACP States and the Community.
They shall be based on the principle of free access to the Community
market for products originating in the ACP States, with special provisions
for agricultural products and a safeguard clause.
In view of the ACP States' present development needs, the arrangements
shall not comprise any element of reciprocity for those States as regards
free access.
They shall also be based on the principle of non-discrimination by
the ACP States between the Member States and the according to the Community
of treatment no less favourable than the most-favoured-nation treatment.
Article 26
The Community shall contribute towards the ACP States' own development
efforts by providing adequate financial resources and appropriate technical
assistance aimed at stepping up those States' capacities for self-reliant
and integrated economic, social and cultural development and also at helping
to raise their populations' standard of living and well-being, and promote
and mobilize resources in support of sustainable, effective and growth-oriented
structural adjustment programmes.
Such contributions shall be made on a more predictable and continuous
basis. They shall be provided at very highly concessional terms. Particular
account shall be taken of the situation of the least-developed ACP States.
Article 27
The Contracting Parties agree to facilitate greater, more stable flows
of resources from the private sector to the ACP States by taking measures
to improve the access of ACP States to capital markets and to encourage
European private investment in ACP States.
The Contracting Parties underline the need to promote, protect, finance
and support investment and to provide equitable and stable conditions for
the treatment of such investment.
Article 28
The Contracting Parties agree to confirm the importance of the system
for the stabilization of export earnings, as well as of intensifying the
process of consultation between the ACP States and the Community in international
fora and organizations which aim to stabilize agricultural commodity markets.
Given the role played by the mining industry in the development efforts
of numerous ACP States and the ACP-EEC mutual dependence in that sector,
the Contracting Parties confirm the importance of the system established
to help ACP States confronted with serious disruptions in that sector to
restore it to a viable state and remedy the consequences of such disruptions
for their development.
Chapter 5 Institutions
Article 29
The institutions of this Convention shall be the Council of Ministers,
the Committee of Ambassadors and the Joint Assembly.
Article 30
1. The Council of Ministers shall be composed, on the one hand, of
the members of the Council of the European Communities and of members of
the Commission of the European Communities and, on the other hand, of a
member of the government of each of the ACP States.
2. The functions of the Council of Ministers shall be to:
(a) establish the broad lines of the work to be undertaken in the context
of the application of this Convention, notably in helping to solve problems
fundamental to the joint and several development of the Contracting Parties;
(b) take any political decision for the attainment of the objectives
of this Convention;
(c) take decisions in the specific areas provided for in this Convention;
(d) ensure efficient performance of the consultation mechanisms provided
for in this Convention;
(e) deal with problems of interpretation of this Convention;
(f) settle procedural questions and arrangements for the implementation
of this Convention;
(g) examine, at the request of one of the Contracting Parties, any
question directly liable to hinder or promote the effective and efficient
implementation of this Convention or any other issue likely to obstruct
attainment of its objectives;
(h) take all necessary measures to establish ongoing contacts between
the economic, cultural and social development bodies in the Community and
in the ACP States and to arrange regular consultations with their representatives
on matters of mutual interest, given the importance, acknowledged by the
Contracting Parties, of establishing an effective dialogue between these
bodies and of securing their contribution to the cooperation and development
effort. Article 31
1. The Committee of Ambassadors shall be composed, on the one hand,
of each Member State's Permanent Representative to the European Communities
and one representative of the Commission and, on the other, of the head
of each ACP State's mission to the European Communities.
2. The Committee of Ambassadors shall assist the Council of Ministers
in the performance of its functions and shall carry out any brief given
to it by the Council.
It shall monitor implementation of this Convention and progress towards
achieving the objectives set therein.
Article 32
1. The Joint Assembly shall be composed of equal numbers of, on the
one hand, members of the European Parliament on the Community side and
of, on the other, members of parliament or, failing this, of representatives
designated by the ACP States.
2. (a) The Joint Assembly shall be a consultative body, which shall
seek, through dialogue, debate and concerted action, to:
- promote better understanding between the peoples of the Member States
and the ACP States,
-promote public awareness of the interdependence of the peoples and
of their interests as well as of the need for solidarity in development,
-reflect upon all matters pertaining to ACP-EEC cooperation, particularly
the fundamental problems of development,
-encourage research and initiative, and formulate proposals with a
view to improving and reinforcing ACP-EEC cooperation,
-urge the relevant authorities of the Contracting Parties to implement
this Convention in the most efficient manner possible so as to ensure the
full attainment of its objectives;
(b) the Joint Assembly shall organize regular contacts and consultations
with representatives of economic, cultural and social development bodies
in the ACP States and in the Community in order to obtain their views on
the attainment of the objectives of this Convention.
PART TWO
THE AREAS OF ACP-EEC COOPERATION
TITLE I
ENVIRONMENT
Article 33
In the framework of this Convention, the protection and the enhancement
of the environment and natural resources, the halting of the deterioration
of land and forests, the restoration of ecological balances, the preservation
of natural resources and their rational exploitation are basic objectives
that the ACP States concerned shall strive to achieve with Community support
with a view to bringing an immediate improvement in the living conditions
of their populations and to safeguarding those of future generations.
Article 34
The ACP States and the Community recognize that the existence of some
ACP States is under threat as a result of a rapid deterioration of the
environment that hinders any development efforts, in particular those aimed
at achieving the priority objectives of food self-sufficiency and food
security.
For many ACP States efforts to halt this deterioration of the environment
and conserve natural resources are imperative and call for the preparation
and implementation of coherent modes of development that have due regard
for ecological balances.
Article 35
The dimension of the environmental problem and of the means to be deployed
mean that operations will have to be carried out in the context of overall,
long-term policies, drawn up and implemented by the ACP States at national,
regional and international level with international support.
To this end, the Parties agree to give priority in their activities
to:
- a preventive approach aimed at avoiding harmful effects on the environment
as a result of any programme or operation,
-a systematic approach that will ensure ecological viability at all
stages, from identification to implementation,
-a trans-sectoral approach that takes into account not only the direct
but also the indirect consequences of the operations undertaken.
Article 36
The protection of the environment and natural resources requires a
comprehensive approach embracing the social and cultural dimensions.
In order to ensure that this specific dimension shall be taken into
account, attention shall be given to incorporating suitable educational,
training, information and research schemes in projects and programmes.
Article 37
Cooperation instruments appropriate to environmental needs shall be
designed and implemented.
Where necessary, both qualitative and quantitative criteria may be
used. Jointly approved check-lists shall be used to help estimate the environmental
viability of proposed operations, whatever their scale. Environmental impact
assessment will be carried out as appropriate in the case of large-scale
projects and those posing a significant threat to the environment.
For the proper integration of environmental considerations, physical
inventories, where possible translated into accounting terms, shall be
drawn up.
The implementation of these instruments has to ensure that, should
an adverse environmental impact be foreseen, the necessary corrective measures
are formulated in the early stage of the preparation of the proposed project
or programme so that it can go ahead in accordance with the planned timetable
though improved in terms of environmental and natural resource protection.
Article 38
The Parties, desirous of bringing real protection and effective management
to the environment and natural resources, consider that the areas of ACP-EEC
cooperation covered in Part Two of this Convention shall be systematically
examined and appraised in this light.
In this spirit the Community shall support efforts made by the ACP
States at national, regional and international level and also operations
mounted by intergovernmental and non-governmental organizations in furtherance
of national and intergovernmental policies and priorities.
Article 39
1. The Contracting Parties undertake, for their part, to make every
effort to ensure that international movements of hazardous waste and radioactive
waste are generally controlled, and they emphasize the importance of efficient
international cooperation in this area.
With this in view, the Community shall prohibit all direct or indirect
export of such waste to the ACP States while at the same time the ACP States
shall prohibit the direct or indirect import into their territory of such
waste from the Community or from any other country, without prejudice to
specific international undertakings to which the Contracting Parties have
subscribed or may subscribe in the future in these two areas within the
competent international fora.
These provisions do not prevent a Member State to which an ACP State
has chosen to export waste for processing from returning the processed
waste to the ACP State of origin.
The Contracting Parties shall expedite adoption of the necessary internal
legislation and administrative regulations to implement this undertaking.
At the request of one of the Parties, consultations may be held if delays
are encountered. At the conclusion of such consultations each Party may
take appropriate steps in the light of the situation.
2. The Parties undertake to monitor strictly the implementation of
the prohibition measures referred to in the second paragraph of paragraph
1. Should difficulties arise in this respect, consultations may be held
subject to the same conditions as those provided for in the second paragraph
of paragraph 1 and with the same effect.
3. The term 'hazardous waste` within the meaning of this Article shall
cover categories of products listed in Annexes 1 and 2 to the Basle Convention
on the Control of Transboundary Movements of Hazardous Wastes and their
Disposal.
As regards radioactive waste, the applicable definitions and thresholds
shall be those which will be laid down in the framework of the IAEA. In
the meantime, the said definitions and thresholds shall be those specified
in the declaration in Annex VIII to this Convention.
Article 40
At the request of the ACP States, the Community shall provide available
technical information on pesticides and other chemical products with a
view to helping them develop or reinforce a suitable and safe use of these
products.
Where necessary and in accordance with the provisions for development
finance cooperation, technical assistance can be given in order to ensure
conditions of safety at all stages, from production to disposal of such
products.
Article 41
The Parties recognize the value of exchanging views, using existing
consultation mechanisms under this Convention, on major ecological hazards,
whether on a planetary scale (such as the greenhouse effect, the deterioration
of the ozone layer, tropical forests, etc.), or of a more specific scope
resulting from the application of industrial technology. Such consultations
may be requested by either Party, insofar as these hazards may in practice
affect the Contracting Parties, and will be aimed at assessing the scope
for joint action to be undertaken within the terms of this Convention.
If necessary, the consultations will also provide for an exchange of views
prior to discussions conducted on these subjects in the appropriate international
fora.
TITLE II
AGRICULTURAL COOPERATION, FOOD SECURITY AND RURAL DEVELOPMENT
Chapter 1
Agricultural cooperation and food security
Article 42
Cooperation in the agricultural and rural sector, that is arable farming,
livestock production, fisheries and forestry, shall be aimed, inter alia,
at:
- continuously and systematically promoting viable and sustainable
development based in particular on protection of the environment and the
rational management of natural resources,
-supporting the ACP States' efforts to increase their degree of self-sufficiency
in food, in particular by strengthening the capacity of the ACP States
to provide their populations with food of adequate quantity and quality
and to ensure a satisfactory level of nutrition,
-reinforcing food security at national, regional and inter-regional
level by stimulating regional trade flows of food products and improving
coordination of the food policies of the countries concerned,
-guaranteeing the rural population incomes that will significantly
improve their standard of living, in order to be able to cover their essential
needs in the areas of food, education, health and living conditions,
-encouraging the active participation of the rural population, both
men and women, in their own development by organizing small farmers into
associations, and integrating producers, men and women, more effectively
into national and international economic activity,
-increasing the participation of women in their capacity as producers,
notably by improving access to all factors of production (land, inputs,
credit, extension services and training),
-creating satisfactory living conditions and a satisfactory life-style
in the rural environment, notably by developing social and cultural activities,
-improving rural productivity, notably by transfers of appropriate
technology and the rational exploitation of plant and animal resources,
-reducing post-harvest losses,
-reducing the workload of women by, inter alia, promoting suitable
post-harvest and food-processing technologies,
-diversifying job-creating rural activities and expanding activities
that back up production,
-improving production by on-the-spot processing of the products of
arable and livestock farming, fisheries and forestry,
-ensuring a better balance between food crops and export crops,
-developing and strengthening agricultural research tailored to the
natural and human environment of the country and the region and meeting
extension service and food security requirements,
-in the context of the above objectives, protecting the natural environment
particularly through specific operations to protect and conserve ecosystems
and to fight against drought, desertification and deforestation.
Article 43
1. Operations to attain the objectives referred to in Article 42 shall
be as varied and practical as possible, at national, regional and inter-regional
level.
2. They shall, furthermore, be designed and deployed to implement the
policies and strategies established by the ACP States and respect their
priorities.
3. Support shall be provided for such policies and strategies in the
context of agricultural cooperation in accordance with the provisions of
this Convention.
Article 44
1. Development of production calls for a rational stepping up of animal
and crop production and involves:
- improving farming methods for rain-fed crops while conserving soil
fertility,
-developing irrigated crops, inter alia through different types of
agricultural water schemes (village water engineering, regulation of watercourses
and soil improvement) ensuring optimum use and thrifty management of water
which can be mastered by farmers and by local communities; operations shall
also consist in the rehabilitation of existing schemes,
-improving and modernizing cultivation techniques and making better
use of factors of production (improved varieties and breeds, agricultural
equipment, fertilizers, plant treatment preparations),
-in the sphere of livestock farming, improving animal feed (more effective
management of pasture, increased fodder production, more new water-points
and repair of existing ones) and animal health, including the development
of the infrastructure required for that purpose,
-better integration of arable and livestock farming,
-in the sphere of fisheries, modernizing fish-farming and developing
aquaculture.
2. Other prerequisites for the development of production are:
-the extension of secondary and tertiary back-up activities for agriculture,
such as the manufacture, modernization and promotion of agricultural and
rural equipment and other inputs and, where necessary, their importation,
-the establishment or consolidation of agricultural savings and credit
facilities adapted to local conditions in order to promote access to production
factors for farmers,
-the encouragement of all those policies and incentives for producers
which are appropriate to local conditions with a view to greater productivity
and to improving farmer's incomes.
Article 45
In order to ensure a return on output, agricultural cooperation shall
contribute to:
- adequate means of preservation and suitable storage facilities for
producers,
-effective control of disease, pests and other factors causing production
losses,
-basic marketing arrangements underpinned by suitable organization
of producers, with the necessary material and financial resources, and
by adequate means of communication,
-flexible operation of marketing channels, taking account of every
form of public or private initiative, to enable local markets, areas of
the country with shortfalls and urban markets to be supplied, in order
to cut down dependence on outside sources,
-facilities to prevent breaks in supplies (security storage) and guard
against erratic price fluctuations (intervention storage),
-processing, packaging and marketing of products, particularly by developing
artisanal and agro-industrial units, in order to adapt them to the trend
of the market.
Article 46
Rural promotion measures shall involve:
- the organization of producers within associations or communities
in order to enable them to derive more benefit from joint contracts and
investment and jointly owned equipment,
-encouragement of the participation of women and of recognition of
the active role they play as full partners in the rural production and
economic development processes,
-the development of social and cultural activities (such as health,
education and culture) essential for improving rural life-styles;
-suitable extension services to train all farmers, both men and women,
-improvements in the training of instructors at all levels.
Article 47
Cooperation in agronomic and agrotechnical research shall contribute:
- to the development, in the ACP States, of domestic and regional research
capacities suited to the local natural, social and economic conditions
of crop and animal production, with special attention being paid to arid
and semi-arid regions,
-in particular, to improving varieties and breeds, the nutritional
quality of products and their packaging, and developing technology and
processes accessible to the producers,
-to better dissemination of the results of research undertaken in an
ACP or non-ACP State and applicable in other ACP States,
-to extension work in order to inform the greatest possible number
of users of the results of such research,
-to promoting increased coordination of research, particularly at regional
and international levels, in accordance with Article 152, and to implement
appropriate operations to achieve this objective.
Article 48
Agricultural cooperation schemes shall be carried out in accordance
with the detailed provisions and procedures laid down for development finance
cooperation and in this context they may also cover the following:
1. under the heading of technical cooperation:
- exchange of information between the Community and the ACP States
and among the ACP States themselves (on, for example, water use, intensive
production techniques and the results of research),
-exchange of experience between professionals working in such areas
as credit and savings, cooperatives, mutual insurance, artisanal activities
and small-scale industry in rural areas;
2.under the heading of financial cooperation:
-supply of factors of production,
-support for market regulation bodies, on the basis of a coordinated
approach to production and marketing problems,
-participation in the constitution of funds for agricultural credit
facilities,
-opening of credit lines for farmers, farmers' trade organizations,
artisans, women's groupings and small-scale industrial operators in rural
areas, geared to their activities (such as supplies, primary marketing
and storage), and also for associations implementing campaigns on specific
themes,
-support for measures to combine industrial and trade skills in the
ACP States and the Community within artisanal or industrial units, for
the manufacture of inputs and equipment and for such purposes as the maintenance,
packaging, storage, transport and processing of products.
Article 49
1. Community measures aimed at food security in the ACP States shall
be conducted in the context of the food strategies or policies of the ACP
States concerned and of the development objectives which they lay down.
They shall be implemented, in coordination with the instruments of
this Convention, in the framework of Community policies and the measures
resulting therefrom with due regard for the Community's international commitments.
2. In this context, multiannual indicative programming may be carried
out with the ACP States which so wish, so that their food supplies can
be better forecast.
Article 50
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.
Advance fixing shall be for one year and shall be applied each year
throughout the life of this Convention, it being understood that the level
of the refund will be determined in accordance with the methods normally
followed by the Commission.
2. Specific agreements may be concluded with those ACP States which
so request in the context of their food security policies.
Article 51
Food aid operations shall be decided on the basis of the rules and
criteria adopted by the Community for all recipients of this type of aid.
Subject to those rules and to the Community's freedom of decision in
this matter, food aid operations shall be governed by the following guidelines:
(a) except in urgent cases, Community food aid, which shall be a transitional
measure, must be integrated with the ACP States' development policies.
This calls for consistency between food aid and other cooperation measures;
(b) where products supplied as food aid are sold, they must be sold
at a price which will not disrupt the domestic market. The resulting counterpart
funds shall be used to finance the execution or running of projects or
programmes with a major rural development component; these funds may also
be used for all legitimate purposes approved by common agreement, taking
into account Article 226 (d);
(c) where the products supplied are distributed free of charge, they
must form part of nutrition programmes aimed in particular at vulnerable
sections of the population or be delivered as remuneration for work;
(d) food aid operations that form part of development projects or programmes
or nutrition programmes may be planned on a multiannual basis;
(e) as a matter of priority, the products supplied must meet the needs
of the recipients. In the selection of such products, account should be
taken in particular of the ratio of cost to specific nutritive value and
of the effect the choice might have on consumer habits;
(f) where, in a recipient ACP State, the trend of the food situation
is such as to make it desirable for food aid to be replaced in whole or
in part by operations designed to consolidate the current trend, alternative
operations may be implemented in the form of financial and technical assistance,
in accordance with the relevant Community rules. These operations shall
be decided upon at the request of the ACP State concerned;
(g) with a view to providing products suited to the habits of consumers,
speeding up the supply of products for emergency operations or helping
to improve food security, food aid purchases may be made not only in the
Community but also in the recipient country or in another ACP or other
developing country, preferably in the same geographical region.
Article 52
In implementing this Chapter, special attention shall be paid to assisting
and enabling least-developed, landlocked and island ACP States to utilize
fully the provisions of this Chapter. At the request of the States concerned,
particular attention will be paid to:
- the specific difficulties of the least-developed ACP States in carrying
out the policies or strategies they have established to strengthen their
food self-sufficiency and food security. In this context, cooperation shall
bear in particular on the productive sectors (including the supply of physical,
technical and financial inputs), transport, marketing, packaging and the
setting up of storage infrastructure,
-establishing a security stock system in landlocked ACP States in order
to avoid the risk of breaks in supply,
-diversifying agricultural commodities production and improving food
security in the island ACP States.
Article 53
1. The Technical Centre for Agricultural and Rural Cooperation shall
be at the disposal of the ACP States to provide them with better access
to information, research, training and innovations in the spheres of agricultural
and rural development and extension.
In carrying out its work within the framework of its responsibilities
it shall operate in close cooperation with the institutions and bodies
referred to in this Convention.
2. The tasks of the Centre shall be to:
(a) assure, where so requested by the ACP States, the dissemination
of scientific and technical information on methods and means of encouraging
agricultural production and rural development, and also scientific and
technical support for drawing up regional programmes in its own spheres
of activity;
(b) foster the development by ACP States, at national and regional
level, of their own capacities for production, purchase and exchange of
technical and scientific information on agriculture, rural development
and fisheries;
(c) refer ACP States' requests for information to bodies qualified
to deal with them, or deal direct with such requests;
(d) provide ACP national and regional documentation centres and research
institutes with easier access to scientific and technical publications
dealing with agricultural and rural development issues and to databanks
in the Community and the ACP States;
(e) in general help the ACP States to gain easier access to the results
of work carried out by the national, regional and international bodies,
more especially those qualified in the technical aspects of agricultural
and rural development, based in the Community and in the ACP States, and
maintain contact with those bodies;
(f) foster the exchange of information between those engaged in agricultural
and rural development, notably research workers, instructors, technicians
and extension workers, on the results of agricultural and rural development
operations;
(g) sponsor and help organize meetings of specialists, research workers,
planners and development personnel so that they may exchange experiences
of specific ecological environments;
(h) facilitate access by the ACP States' training and extension personnel
to the information they need to carry out their tasks and refer requests
for specific training to existing qualified bodies;
(i) help facilitate the adaptation of available technical and scientific
information to the needs of the ACP States' departments responsible for
development, extension services, and training including functional literacy
programmes in rural areas;
(j) facilitate the dissemination of technical and scientific information
for use in integration strategies of agricultural and rural development,
by reference to the priority requirements of development.
3. In the performance of its tasks the Centre shall pay particular
attention to the needs of the least-developed ACP States.
4. To carry out its work, the Centre shall be supported by decentralized
regional or national information networks. Such networks shall be built
up gradually and efficiently as needs are identified with, as far as possible,
the support of the most appropriate organizations and institutions.
5. The Committee of Ambassadors shall be the supervisory authority
of the Centre. It shall lay down the rules of operation and the procedures
for the adoption of the Centre's budget. The budget shall be financed in
accordance with the rules laid down in this Convention in respect of development
finance cooperation.
6. (a) The Centre shall be headed by a Director appointed by the Committee
of Ambassadors.
(b) The Director of the Centre shall be assisted by staff recruited
within the limit of the numbers budgeted for by the Committee of Ambassadors.
(c) The Director of the Centre shall report on its activities to the
Committee of Ambassadors.
7.(a) To provide the Director of the Centre with technical and scientific
assistance in working out appropriate solutions to the problems encountered
by the ACP States, notably to improve their access to information, technical
innovation, research and development in the sphere of agricultural and
rural development and to devise the Centre's action programmes, an advisory
committee shall be set up, composed on a basis of parity of agricultural
and rural development experts.
(b) The members of the Advisory Committee shall be appointed by the
Committee of Ambassadors in accordance with the procedures and criteria
determined by it.
Chapter 2
Drought and desertification control
Article 54
The ACP States and the Community recognize that certain ACP States
are facing considerable difficulties as a result of endemic drought and
growing desertification, which hold back all efforts at development, in
particular those aimed at achieving the priority objective of food self-sufficiency
and food security.
The two Parties agree that in a number of ACP States control of drought
and desertification constitutes a major challenge on which depends the
success of their development policy.
Article 55
The correction of this situation and the sustainable development of
the countries affected or threatened by such disasters require a policy
encouraging the restoration of the natural environment and of the balance
between resources and the human and animal population, in particular through
such means as improved harnessing and management of water resources, appropriate
agriculture, agroforestry and reafforestation schemes and control of the
causes of desertification as well as of practices that engender it.
Article 56
If a return to the natural balance is to be expedited, a drought and
desertification control component in particular must be incorporated into
all agricultural and rural development operations, such as:
1. - the extension of agroforestry systems combining farming and forestry,
research and development activities to produce plant species that are more
adapted to local conditions,
-the introduction of suitable techniques aimed at increasing and maintaining
the productivity of agricultural land, arable land and natural pastureland
with a view to controlling the various forms of erosion,
-the reclamation of land that has deteriorated, by means of reafforestation
or agricultural-land improvement, combined with maintenance schemes involving,
as far as possible, the people and authorities concerned in order to safeguard
the progress made;
2.the encouragement of measures to economize on wood as an energy source
by stepping up research into, application of and information on new and
renewable sources of energy such as wind, solar and biomass energy, and
by the use of improved stoves with a greater heat yield;
3.the rational development and management of forestry resources by
setting up at national or regional level, forestry management plans aimed
at optimizing the exploitation of forestry resources;
4.the pursuit of ongoing campaigns to educate the people concerned
to be aware of the phenomena of drought and desertification and to train
them in the possible ways of controlling them;
5.an overall coordinated approach which, as a result of schemes such
as those referred to in points 1 to 4, seeks to ensure the restoration
of a suitable ecological balance between natural resources and the human
and animal population, without prejudicing the objective of harmonious
economic and social development.
Article 57
The operations to be undertaken, where necessary with research backing,
shall cover, inter alia:
1. improving man's knowledge of, and ability to forecast, desertification
phenomena by observing developments in the field, by means, inter alia,
of modern technologies such as remote sensing, by making use of results
achieved and gaining a better understanding of the changes to the human
environment in time and space;
2.making an inventory of water-tables and of their replenishment capacity
with a view to better predictability of water supplies, using surface and
ground water and improving management of these resources, in particular
by means of dams or other appropriate developments for the purpose of satisfying
the needs of people and animals, and improving weather forecasting;
3.establishing a system for the prevention and control of bush fires
and deforestation.
TITLE III
DEVELOPMENT OF FISHERIES
Article 58
The ACP States and the Community recognize the urgent need to promote
the development of fishery resources of ACP States both as a contribution
towards the development of fisheries as a whole and as a sphere of mutual
interest for their respective economic sectors.
Cooperation in this field shall promote the optimum utilization of
the fishery resources of ACP States, while recognizing the rights of landlocked
States to participate in the exploitation of sea fisheries and the right
of coastal States to exercise jurisdiction over the living marine resources
of their exclusive economic zones in conformity with current international
law and notably the conclusions of the Third United Nations Conference
on the Law of the Sea.
Article 59
To encourage the development of the exploitation of the fishery resources
of the ACP States, all the mechanisms for assistance and cooperation provided
for in this Convention, notably financial and technical assistance in accordance
with the terms set out in Title III, Part Three shall be applied to fisheries.
The priority objectives of such cooperation shall be to:
- improve knowledge of the fisheries environment and its resources,
-increase the means of protecting fishery resources and monitoring
their rational exploitation,
-increase the involvement of the ACP States in the exploitation of
deep-sea fishery resources within their exclusive economic zones,
-encourage the rational exploitation of the fishery resources of the
ACP States and the resources of high seas in which the ACP States and the
Community share interests,
-increase the contribution of fisheries including aquaculture, non-industrial
fishing and inland fisheries, to rural development, by giving importance
to the role they play in strengthening food security, improving nutrition
and the social and economic conditions of the communities concerned; this
implies, inter alia, a recognition of and support for women's work at the
post-harvest stage and in the marketing of fish,
-increase the contribution of fisheries to industrial development by
increasing catches, output, processing and exports.
Article 60
Assistance from the Community for fisheries development shall include
support in the following areas:
(a) fisheries production, including the acquisition of boats, equipment
and gear, the development of infrastructure for rural fishing communities
and the fishing industry and support for aquaculture projects, notably
by providing specific lines of credit to appropriate ACP institutions for
onlending to the operators concerned;
(b) fisheries management and protection, including the assessment of
fish stocks and of aquacultural potential, the improvement of environmental
monitoring and control and the development of ACP coastal States' capacities
for a rational management of the fishery resources in their exclusive economic
zones;
(c) processing and marketing of fishery products, including the development
of processing, collection, distribution and marketing facilities and operations;
the reduction of post-harvest losses and the promotion of programmes to
improve fish utilization and nutrition from fishery products.
Article 61
Particular attention shall be paid in fishery resource development
cooperation to the training of ACP nationals in all areas of fisheries,
to the development and strengthening of ACP research capabilities and to
the promotion of intra-ACP and regional cooperation in fisheries management
and development.
Article 62
In implementing Articles 60 and 61, special attention shall be given
to enabling least-developed, landlocked and island ACP States to maximize
their capabilities to manage their fishery resources.
Article 63
The ACP States and the Community recognize the need for direct or regional
cooperation or, as appropriate, cooperation through international organizations,
with a view to promoting conservation and the optimum use of the living
resources of the sea.
Article 64
The Community and the ACP States recognize that coastal States exercise
sovereign rights for the purpose of exploring, exploiting, conserving and
managing the fishery resources of their respective exclusive economic zones
in conformity with current international law. The ACP States recognize
that there is a role for Community Member States' fishing fleets, operating
lawfully in waters under ACP jurisdiction, in the development of ACP fishery
potential and in economic development in general in the coastal ACP States.
Accordingly, the ACP States declare their willingness to negotiate with
the Community fishery agreements aimed at guaranteeing mutually satisfactory
conditions for fishing activities of vessels flying the flag of one of
the Member States of the Community.
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 65
Where ACP States situated in the same subregion as territories to which
the Treaty establishing the European Economic Community applies wish to
engage in fishing activities in the corresponding fishing zone, the Community
and the ACP States shall open negotiations with a view to concluding a
fishery agreement in the spirit of Article 64, taking account of their
specific situation in the region and of the objective of strengthening
regional cooperation between those territories and the neighbouring ACP
States.
Article 66
The Community and the ACP States recognize the value of a regional
approach to fisheries access and shall support moves by ACP coastal States
towards harmonized arrangements for access for fishing vessels.
Article 67
The Community and the ACP States agree to take all appropriate steps
to ensure that the efforts undertaken in fisheries cooperation under this
Convention shall be effective, taking into account notably the Joint Declaration
on the origin of fishery products.
As regards exports of fishery products to the markets of the Community,
due account shall be taken of Article 358.
Article 68
The mutually satisfactory conditions referred to in Article 64 shall
bear in particular on the nature and the scale of the compensation to be
received by the ACP States concerned under bilateral agreements.
Compensation shall be additional to any allocation relating to projects
in the fisheries sector pursuant to Title III, Part Three of this Convention.
Compensation shall be provided for partly by the Community as such
and partly by the shipowners and shall take the form of financial compensation
which may include licensing fees and, where appropriate, any other elements
agreed upon by the parties to the fishery agreement, such as obligatory
landing of part of the catch, employment of ACP nationals, the taking on
board of observers, transfer of technology, research and training grants.
Compensation shall relate to the scale and value of the fishing opportunities
provided in the exclusive economic zones of the ACP States concerned.
In addition, with regard to the fishing of highly migratory species,
the particular character of such fisheries shall be taken into account
in the respective obligations under the agreements, including the financial
compensation.
The Community shall take all necessary measures to ensure that its
vessels comply with the provisions of the agreements negotiated and with
the laws and regulations of the ACP State concerned.
TITLE IV
COOPERATION ON COMMODITIES
Article 69
ACP-EEC cooperation in the field of commodities shall take into account:
- the fact that the economies of a large number of ACP States are highly
dependent on their exports of primary products,
-the deteriorating situation of their exports in most cases, mainly
as a result of the downward trend in world prices,
-the structural nature of the difficulties in many commodity sectors
both within the economies of the ACP States and at international level,
in particular within the Community.
Article 70
The Community and the ACP States recognize the need for joint efforts
aimed at resolving the structural difficulties in many commodity sectors
and they take as the main objectives of their cooperation in this field:
- diversification, both horizontal and vertical, of the ACP economies,
in particular through the development of processing, marketing, distribution
and transport (PMDT), and
-improvement of the competitiveness of the ACP States' commodities
on world markets through the reorganization and rationalization of their
production, marketing and distribution activities.
The Community and the ACP States undertake to employ all appropriate
means to enable them to go as far as possible in the attainment of these
objectives; to that end, they agree to make coordinated use of the range
of instruments and resources of this Convention.
Article 71
In pursuit of the objectives set out in Article 70, cooperation in
the field of commodities, especially PMDT, shall be planned and implemented
in compliance with the priorities decided by the ACP States and in support
of policies and strategies drawn up by these States.
Article 72
Cooperation operations in the field of commodities shall be directed
towards developing international, regional and national markets; they shall
be carried out in accordance with the detailed rules and procedures laid
down in the Convention, notably those relating to development finance cooperation.
In this context, they may also cover:
1. the enhancement of human resources, including in particular:
- training programmes and courses for operators in the sectors concerned,
-support for national or regional schools and training institutes specializing
in the sector;
2.the fostering of investments by EEC and ACP economic operators in
the sector concerned, notably by means of:
-information and awareness-raising campaigns directed at operators
likely to invest in activities that diversify and add value to ACP commodities,
-a more dynamic use of risk capital for firms wishing to invest in
these PMDT activities,
-utilization of the pertinent provisions on investment promotion, protection,
financing and support;
3.the development and improvement of the infrastructure necessary for
activities in the sector concerned, and notably transport and telecommunications
networks.
Article 73
In pursuit of the objectives set out in Article 70, the Contracting
Parties shall attach particular importance to:
- ensuring that market signals, whether national, regional or international,
are duly taken into account,
-taking account of the economic and social impact of the operations
carried out,
-ensuring a greater consistency at regional and international level
between the strategies pursued by the various ACP States concerned,
-seeking an effective distribution of resources between the various
activities and operators in the production sectors concerned.
Article 74
The Community and the ACP States recognize the need to ensure a better
operation of international commodity markets and to increase market transparency.
They confirm their willingness to step up consultations between the
ACP States and the Community in the international fora and organizations
dealing with commodities.
To this end, exchanges of views shall take place at the request of
either Party:
- regarding the operation of existing international agreements or specialized
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 specialized intergovernmental working party.
The aim of such exchanges of views shall be to take account of the
respective interests of each Party; they may take place, where necessary,
in the framework of the Commodities Committee.
Article 75
The Community and the ACP States agree to set up a Commodities Committee,
which shall serve in particular to help find solutions to structural problems
relating to commodities.
The tasks of the Commodities Committee shall be to monitor the general
implementation of the Convention in the commodities sector, taking account
of the Parties' mutual interests, and, in particular:
(a) to examine any general problems relating to ACP-EEC trade in these
products which may be submitted to it by the relevant subcommittees set
up under the Convention;
(b) to recommend measures that will solve these problems and develop
the competitiveness of the production and export systems;
(c) to hold exchanges of views and information on the short- and medium-term
prospects and forecasts for production, consumption and trade.
Article 76
The Commodities Committee shall meet at least once a year at ministerial
level. 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
appointed by the Council of Ministers. Its work shall be prepared by the
Committee of Ambassadors in accordance with the procedures laid down in
the rules of procedure of the Commodities Committee.
TITLE V
INDUSTRIAL DEVELOPMENT, MANUFACTURING AND PROCESSING
Article 77
In order to facilitate the attainment of the industrial development
objectives of the ACP States, it is important to ensure that an integrated
and sustainable development strategy, which links activities in different
sectors to each other, is evolved. Thus, sectoral strategies for agricultural
and rural development, manufacturing, mining, energy, infrastructure and
services should be designed in such a way as to foster interlinkages within
and between economic sectors with a view to maximizing local value added
and creating, where possible, an effective capacity to export manufactured
products, while ensuring the protection of the environment and natural
resources.
In pursuit of these objectives the Contracting Parties shall have recourse
to the provisions on trade promotion for ACP products and private investments,
in addition to the specific provisions on industrial cooperation.
Article 78
Industrial cooperation, as a key instrument for industrial development,
shall have as its objectives:
(a) the creation of the basis of and framework for effective cooperation
between the Community and the ACP States in the fields of manufacturing
and processing, mineral resources development, energy resources development,
transport and communications;
(b) the promotion of conditions conducive to industrial enterprise
development, and local and external investment;
(c) improvement of capacity utilization and rehabilitation of existing
industrial undertakings which are potentially viable, in order to restore
the productive capacities of ACP economies;
(d) fostering the creation of and the participation in enterprises
by ACP nationals, especially those of a small and medium-sized nature that
produce and/or use local inputs; promotion of new and strengthening of
existing enterprises;
(e) support for the establishment of new industries to supply the local
market in a cost-effective manner and ensure the growth of the non-traditional
export sector in order to increase foreign exchange earnings, provide employment
opportunities and an increase in real incomes;
(f) promoting increasingly close relations in the industrial field
between the Community and the ACP States, and in particular further encouraging
the speedy establishment of ACP-EEC industrial joint ventures;
(g) promoting business associations in ACP States as well as other
institutions for industrial enterprise and business development.
Article 79
The Community shall assist the ACP States in the improvement of their
institutional framework, reinforcement of their financing institutions
and the establishment, rehabilitation and improvement of industry-related
infrastructure. The Community shall equally assist the ACP States in their
efforts to integrate industrial structures at regional and inter-regional
level.
Article 80
On the basis of a request from an ACP State, the Community shall provide
the assistance required in the field of industrial training at all levels,
bearing notably on the evaluation of industrial training needs and the
establishment of corresponding programmes, the setting up and operation
of national or regional ACP industrial training establishments, training
for ACP nationals in appropriate establishments, on-the-job training both
in the Community and in the ACP States and also cooperation between industrial
training establishments in the Community and in the ACP States, and between
the latter and those of other developing countries.
Article 81
In order to achieve the objectives of industrial development, the Community
shall assist in the establishment and expansion of all types of viable
industry which have been identified by the ACP States as important in terms
of their industrialization objectives and priorities.
In this context the following areas merit particular attention:
(i) manufacturing and processing of primary products:
(a) industries processing, on a national or regional basis, raw materials
for export;
(b) industries based on local needs and resources, focused on domestic
and regional markets and mainly small and medium-sized industries geared
to the modernization of agriculture, the efficient processing of agricultural
products and the manufacturing of agricultural inputs and tools;
(ii) engineering, metallurgical and chemical industries:
(a) engineering enterprises for the production of tools and equipment
primarily tailored to maintaining the existing plant and equipment in the
ACP States. These enterprises should, as a matter of priority, support
the manufacturing and processing sector, the major export sectors, and
small and medium-sized enterprises directed at satisfying basic needs;
(b) metallurgical industries based on the mining products of the ACP
States, aimed at the secondary processing of mining products to supply
ACP engineering and chemical industries;
(c) chemical industries, particularly on a small and medium scale,
aimed at the secondary processing of mineral products to supply the other
branches of industry, and also the agricultural and health sectors;
(iii) industrial rehabilitation and capacity utilization: the restoration,
upgrading, reorganization, restructuring and maintenance of existing potentially
viable industrial capacities. Special emphasis should be put in this respect
on industries with a low import content that provide up-stream and down-stream
linkages and have a favourable effect on employment. Rehabilitation activities
should be targeted at the creation of conditions necessary to make enterprises
being rehabilitated self-sustaining.
Article 82
The Community shall assist the ACP States to develop, during the period
of application of this Convention, as a matter of priority, viable industries,
as defined in Article 81, in accordance with the capacities and decisions
of each ACP State and their respective endowments taking into account the
adjustment of industrial structures taking place between the Contracting
Parties and throughout the world.
Article 83
The Community shall contribute in a spirit of mutual interest to the
development of ACP-EEC and intra-ACP cooperation between enterprises by
way of information and industrial promotion activities.
The aim of such activities shall be to intensify the regular exchange
of information, organize the contacts required in the industrial sphere
between industrial policy-makers, promoters and economic operators from
the Community and the ACP States, carry out studies, notably feasibility
studies, facilitate the establishment and operation of ACP industrial promotion
bodies and foster joint investment, subcontracting arrangements and any
other form of industrial cooperation between enterprises in the Member
States of the Community and in the ACP States.
Article 84
The Community shall contribute to the establishment and development
of small and medium-sized enterprises in the artisanal, commercial, service
and industrial sectors in view of the essential role that these enterprises
play in the modern and informal sectors in building up a diversified economic
fabric and in the general development of the ACP countries, and in view
of the advantages they offer as regards the acquisition of skills, the
integrated transfer and adaptation of appropriate technology and opportunities
for taking the best advantage of local manpower. The Community shall also
help with sectoral evaluation and the establishment of action programmes,
with the setting up of appropriate infrastructure, the establishment, strengthening
and operation of institutions providing information, promotion, extension,
training, credit or guarantee and transfer of technology facilities.
The Community and the ACP States shall encourage cooperation and contact
between small and medium-sized enterprises in the Member States and the
ACP States.
Article 85
With a view to assisting the ACP States to develop their technological
base and indigenous capacity for scientific and technological development
and facilitating the acquisition, transfer and adaption of technology on
terms that will seek to bring about the greatest possible benefits and
minimize costs, the Community, through the instruments of development finance
cooperation, is prepared, inter alia, to contribute to:
(a) the establishment and strengthening of industry-related scientific
and technical infrastructure in the ACP States;
(b) the drawing up and implementation of research and development programmes;
(c) the identification and creation of opportunities for collaboration
among research institutes, institutions of higher learning and enterprises
of ACP States, the Community, the Member States and other countries;
(d) the establishment and promotion of activities aimed at the consolidation
of appropriate indigenous technology and the acquisition of relevant foreign
technology, in particular that of other developing countries;
(e) the identification, evaluation and acquisition of industrial technology
including the negotiation on favourable terms and conditions of foreign
technology, patents and other industrial property, in particular through
financing or through other suitable arrangements with firms and institutions
within the Community;
(f) providing ACP States with advisory services for the preparation
of regulations governing the transfer of technology and for the supply
of available information, in particular on the terms and conditions of
technology contracts, the types and sources of technology, and the experience
of ACP States and other countries with the use of certain types of technology;
(g) the promotion of technology cooperation between ACP States and
between them and other developing countries, including support to research
and development units in particular at regional level, in order to make
the best use of any particularly appropriate scientific and technical facilities
they may possess;
(h) facilitating, wherever possible, access to and use of documentary
and other data sources available in the Community.
Article 86
In order to enable the ACP States to obtain full benefit from the trade
arrangements and other provisions of this Convention, promotion schemes
shall be undertaken for the marketing of ACP States' industrial products
on both Community and other external markets, and also in order to stimulate
and develop trade in industrial products among the ACP States. Such schemes
shall cover market research, marketing and the quality and standardization
of manufactured goods, in accordance with Articles 229 and 230 and taking
into account Articles 135 and 136.
Article 87
1. A Committee on Industrial Cooperation, supervised by the Committee
of Ambassadors, shall:
(a) review progress made with the overall industrial cooperation programme
resulting from this Convention and, where appropriate, submit recommendations
to the Committee of Ambassadors; in this framework it shall examine and
give its opinion on the reports referred to in Article 327 concerning the
progress of industrial cooperation and the growth of investment flows,
and regularly monitor the mechanics of the interventions undertaken by
the European Investment Bank, hereinafter referred to as 'the Bank`, the
Commission, the Centre for the Development of Industry, hereinafter referred
to as 'the CDI` and the ACP authorities responsible for the implementation
of industrial projects in order to ensure the best possible coordination;
(b) examine problems and policy issues in the field of industrial cooperation
submitted to it by the ACP States or by the Community, and make any appropriate
proposals;
(c) organize, at the request of the Community or of the ACP States,
a review of trends in industrial policies of the ACP States and of the
Member States as well as developments in the world industrial situation
with a view to exchanging information necessary for improving cooperation
in and facilitating the industrial development and related mining and energy
activities of the ACP States;
(d) establish, on a proposal of the Executive Board, the general strategy
of the CDI referred to in Article 89, appoint the members of the Advisory
Council, appoint the director and deputy director, appoint the two auditors,
apportion on an annual basis the overall financial allocation provided
for in Article 3 of the Financial Protocol and approve the budget and annual
accounts;
(e) examine the CDI's annual report and any other report presented
by the Advisory Council or the Executive Board in order to assess whether
the CDI's activities are in conformity with the objectives assigned to
it in this Convention, report to the Committee of Ambassadors and, through
it, to the Council of Ministers and carry out such other duties as may
be assigned to it by the Committee of Ambassadors.
2. The composition of the Committee on Industrial Cooperation and the
detailed rules for its operation shall be determined by the Council of
Ministers. The Committee shall meet at least twice a year.
Article 88
A joint Advisory Council, composed of 24 members drawn from the business
world or experts on industrial development, with representatives of the
Commission, the Bank and the ACP Secretariat present as observers, shall
allow the Committee on Industrial Cooperation to take into account the
point of view of industrial operators concerning matters referred to in
Article 87 (1) (a), (b) and (c). The Advisory Council shall meet formally
once a year.
Article 89
The CDI shall help to establish and strengthen industrial enterprises
in the ACP States, notably by encouraging joint initiatives by economic
operators of the Community and the ACP States.
As a practical operational instrument, the CDI shall give priority
to the identification of industrial operators for viable projects, assist
in the promotion and implementation of those projects that meet the needs
of ACP States, taking special account of domestic and external market opportunities
for the processing of local raw materials while making optimum use of the
ACP States' endowments by way of factors of production. Assistance shall
also be given to the presentation of such projects to the financing institutions.
In carrying out the above tasks, the CDI shall take care to operate
selectively by giving priority to small and medium-sized industrial enterprises
and rehabilitation operations, and restoring existing industrial capacities
to full utilization. It shall place special emphasis on opportunities for
joint ventures and subcontracting. In implementing these tasks, the CDI
shall also pay special attention to the objectives referred to in Article
97.
Article 90
1. In undertaking the tasks referred to in Article 89 the CDI shall
operate by giving priority to viable projects. In particular, it shall:
(a) identify, appraise, evaluate, promote and assist in the implementation
of economically viable industrial projects of the ACP States;
(b) carry out studies and appraisals aimed at identifying practical
opportunities for industrial cooperation with the Community in order to
promote the industrial development of the ACP States, and facilitating
the implementation of appropriate schemes;
(c) supply information and also specific advisory services and expertise,
including feasibility studies, with a view to expediting the establishment
and/or restoration of industrial enterprises;
(d) identify potential partners of the ACP States and the Community
for joint investment operations and assist in the implementation and follow-up;
(e) identify and provide information on possible sources of financing,
assist in the presentation for financing, and, where necessary, assist
in the mobilization of funds from these sources for industrial projects
in ACP States;
(f) identify, collect, evaluate and supply information and advice on
the acquisition, adaptation and development of appropriate industrial technology
relating to specific projects and, where appropriate, assist in the setting
up of experimental or demonstration schemes.
2. In order to improve the attainment of its objectives, the CDI, in
addition to its main activities, may also pursue the following:
(a) carry out studies, market research and evaluation work and gather
and disseminate all relevant information on the industrial cooperation
situation and opportunities and notably on the economic environment, the
treatment which potential investors may expect and the potential of viable
industrial projects;
(b) help, in appropriate cases, to promote the marketing of ACP manufactures
on their domestic markets and on the markets of the other ACP States and
the Community in order to encourage optimum exploitation of installed or
projected industrial capacity;
(c) identify industrial policy-makers, promoters and economic and financial
operators in the Community and ACP States, and organize and facilitate
contacts and meetings of all kinds between them;
(d) identify, on the basis of needs indicated by ACP States, opportunities
in industrial training, chiefly on the job, to meet the requirements of
existing and planned industrial undertakings in ACP States and, where necessary,
assist in the implementation of appropriate schemes;
(e) gather and disseminate all relevant information concerning the
industrial potential of the ACP States and trends of industrial sectors
in the Community and the ACP States;
(f) promote the subcontracting and also the expansion and consolidation
of regional industrial projects.
Article 91
The CDI shall be headed by a director assisted by a deputy director,
recruited on the basis of technical skills and management experience, both
of whom shall be appointed by the Committee on Industrial Cooperation.
The management of the CDI shall implement the guidelines laid down by the
Committee on Industrial Cooperation, and shall be answerable to the Executive
Board.
Article 92
1. A joint Executive Board shall:
(a) advise and back up the director in providing impetus and motivation
in managing the CDI and shall ensure that the guidelines laid down by the
Committee on Industrial Cooperation are implemented satisfactorily;
(b) on a proposal from the director of the CDI,
(i) approve:
- multiannual and annual programmes of activities,
-the annual report,
-the organizational structures, staffing policy and establishment plan,
and
(ii) adopt the budgets and annual accounts for submission to the Committee
on Industrial Cooperation;
(c) take decisions on management proposals related to these issues;
(d) transmit an annual report to the Committee on Industrial Cooperation
and report on any problems arising in connection with the points referred
to in (c).
2. The Executive Board shall be composed of six persons with substantial
experience in the private or public industrial or banking sectors or in
industrial development planning and promotion. They shall be chosen by
the Committee on Industrial Cooperation on the grounds of their qualifications
among nationals of the States party to this Convention and appointed by
that Committee according to the procedures laid down by it. A representative
of the Commission, of the Bank and of the ACP Secretariat shall take part
in the Board's proceedings as observers. In order to ensure a close follow-up
of CDI activities, the Board shall meet at least once every two months.
The secretariat shall be provided by the Centre.
Article 93
1. The Community shall contribute to the financing of the CDI's budget
by means of a separate allocation in accordance with the Financial Protocol
annexed hereto.
2. Two auditors appointed by the Committee on Industrial Cooperation
shall audit the financial management of the CDI.
3. The CDI's statute, financial and staff regulations and rules of
procedure shall be adopted by the Council of Ministers on a proposal from
the Committee of Ambassadors after the entry into force of this Convention.
Article 94
The Centre shall step up its operational presence in the ACP States,
notably as regards identification of projects and promoters and assistance
in the submission of applications for financing.
It shall do this in accordance with procedures proposed by the Executive
Board, taking account of the need to decentralize activities.
Article 95
The Commission, the Bank and the CDI shall maintain close operational
cooperation in the context of their respective responsibilities.
Article 96
Members of the Advisory Council, the Executive Board and the director
and deputy director of the CDI shall be appointed for a period of no longer
than five years, subject to a reservation in the case of the Executive
Board that the situation be reviewed mid-term.
Article 97
1. In implementing this Title, the Community shall pay special attention
to the specific needs and problems of the least-developed, landlocked and
island ACP States in order to establish the basis for their industrialization
(the formulation of industrial policies and strategies, economic infrastructure
and industrial training), notably with a view to adding value to raw materials
and other local resources in the following fields in particular:
- processing of raw materials,
-development, transfer and adaptation of technologies,
-development and financing of schemes in favour of small and medium-sized
enterprises,
-development of industrial infrastructure and energy and mining resources,
-adequate training in the scientific and technical areas,
-production of equipment and inputs for the rural sector.
Such operations may be implemented with assistance from the CDI.
2. At the request of one or more least-developed ACP States, the CDI
shall grant special assistance for identifying on-the-spot industrial promotion
and development possibilities, notably in raw materials processing and
the production of equipment and inputs for the rural sector.
Article 98
In order to implement industrial cooperation, the Community shall help
carry out programmes, projects and operations submitted to it on the initiative
or with the agreement of the ACP States. To this end, it shall use all
the means provided in this Convention, notably those at its disposal under
development finance cooperation and, in particular, those which are the
responsibility of the Bank, without prejudice to operations to assist ACP
States in mobilizing finance from other sources.
Industrial cooperation programmes, projects and operations which involve
Community financing shall be implemented in conformity with Title III,
Part Three of this Convention, having regard to the particular characteristics
of aid operations in the industrial sector.
TITLE VI
MINING DEVELOPMENT
Article 99
The main objectives of mining development shall be to:
- exploit all types of mineral resources in a way which ensures the
profitability of mining operations in both export and local markets, while
also meeting environmental concerns, and
-enhance the potential of human resources,
with a view to promoting and expediting diversified economic and social
development.
The Contracting Parties stress their mutual dependence in the sector
and agree to use in a coordinated fashion this Convention's various instruments
in this field and also other Community instruments where appropriate.
Article 100
At the request of one or more ACP States, the Community shall carry
out technical assistance or training activities to strengthen their scientific
and technical capacity in the field of geology and mining in order that
they may derive greater benefit from available know-how and direct their
exploration and prospecting programmes accordingly.
Article 101
In order to facilitate the development of the mining resources of the
ACP States concerned, having regard to national and external economic considerations
and with a view to diversification, the Community shall cooperate as appropriate,
through its technical and financial assistance programmes, with the ACP
States in their prospecting and exploration efforts at all stages, both
onshore and on the continental shelf as defined in international law.
Where appropriate, the Community shall also give its technical and
financial assistance to the establishment of national or regional exploration
funds in ACP States.
Article 102
With the aim of supporting efforts to exploit the ACP States' mining
resources, the Community shall contribute towards the support of projects
to rehabilitate, maintain, rationalize and modernize economically viable
production units in order to make them more operational and more competitive.
It shall also contribute to the identification, drawing up and implementation
of new viable projects to an extent compatible with investment and management
capacities as well as market trends, taking particular account of the financing
of feasibility and pre-investment studies.
Particular attention shall be accorded to:
- operations to enhance the role of small and medium-scale projects,
so promoting local mining enterprises with particular emphasis on minerals
for industry and agriculture, destined notably for the domestic or regional
markets, and also new products, and
-operations to protect the environment.
Cooperation shall also support the efforts of the ACP States to:
-build up supporting infrastructure;
-take measures to ensure that mining development makes the greatest
possible contribution to the producer countries' social and economic development,
such measures including the optimal use of mining revenue and the integration
of mining development into industrial development and into an appropriate
policy of land-use planning;
-encourage European and ACP investment;
-promote regional cooperation.
Article 103
In order to contribute to the objectives set out above, the Community
shall be prepared to give its technical and financial assistance to help
with the exploitation of the ACP States' mining potential in accordance
with the procedures peculiar to each of the instruments at its disposal
and according to the provisions of this Convention.
In the sphere of research and investment preparatory to the launching
of mining projects, the Community may give assistance in the form of risk
capital, possibly in conjunction with contributions of capital from the
ACP States concerned and other sources of financing, in accordance with
the procedures laid down in Article 234.
The resources referred to in these provisions may be supplemented,
for projects of mutual interest, by:
(a) other Community financial and technical resources;
(b) action aimed at the mobilization of public and private capital,
including cofinancing.
Article 104
The Bank may, in accordance with its Statute, commit its own resources
on a case-by-case basis beyond the amount fixed in the Financial Protocol
in mining investment projects recognized by the ACP State concerned and
by the Community as being of mutual interest.
TITLE VII
ENERGY DEVELOPMENT
Article 105
In view of the seriousness of the energy situation in the majority
of the ACP States, owing partly to the crisis caused in many countries
by dependence on imported petroleum products and the increasing scarcity
of fuelwood, and in view of the effects the use of fossil fuels have on
the climate, the ACP States and the Community agree to cooperate in this
area with a view to finding solutions to their energy problems.
In ACP-EEC cooperation particular emphasis shall be placed on energy
programming, operations for saving and making efficient use of energy,
reconnaissance of energy potential and the economically and technically
appropriate promotion of new and renewable sources of energy.
Article 106
The Community and the ACP States recognize the mutual benefits of cooperation
in the field of energy. Such cooperation shall promote the development
of the ACP States' conventional and non-conventional energy potential and
their self-sufficiency.
The main objectives of energy development shall be to:
(a) promote economic and social development by exploiting and developing
domestic and regional energy resources in an appropriate manner from the
technical, economic and environmental viewpoints;
(b) make energy production and use more efficient and, where the potential
exists, increase energy self-sufficiency;
(c) encourage increased use of alternative, new and renewable energy
sources;
(d) improve living conditions in urban, outlying and rural areas and
propose solutions to these areas' energy problems that are appropriate
to local needs and resources;
(e) protect the natural environment by conserving biomass resources,
particularly fuelwood, by encouraging alternative solutions, improving
consumption techniques and habits, and using energy and energy resources
in a rational and sustainable manner.
Article 107
In order to attain the abovementioned objectives, energy cooperation
schemes may, at the request of one or more of the ACP States concerned,
be focused on:
(a) collection, analysis and dissemination of relevant information;
(b) strengthening the ACP States' management and control of their energy
resources in line with their development objectives in order to enable
them to appraise energy demand and supply options and to achieve strategic
energy planning, inter alia by supporting energy programming and providing
technical assistance for departments responsible for the planning and execution
of energy policies;
(c) analysing the energy implications of development projects and programming,
taking account of the energy savings required and of opportunities for
primary source substitution; in this context, operations shall be designed
to increase the role played by new and renewable resources, particularly
in rural areas, through programmes and projects tailored to local needs
and resources;
(d) implementing suitable programmes involving small and medium-sized
energy development projects, particularly those aimed at saving and providing
alternatives for fuelwood; in this context, operations shall be designed
to resolve as swiftly as possible the problems caused by overconsumption
of fuelwood by making domestic energy use more efficient in both rural
and urban areas, encouraging the use of alternative sources for domestic
use, particularly in urban areas, and developing plantations of suitable
fuelwood species;
(e) enhancing investment potential for the exploration and development
of domestic and regional energy sources as well as for the development
of sites of exceptional energy production permitting the establishment
of energy-intensive industry;
(f) promoting research, adaptation and dissemination of appropriate
technology as well as the training needed to meet energy-related manpower
needs in the energy sector;
(g) stepping up the ACP States' research and development activities,
particularly as regards the development of new and renewable sources of
energy;
(h) upgrading the basic infrastructure necessary for the production,
transmission, transport and distribution of energy with particular emphasis
on rural electrification;
(i) encouraging cooperation between ACP States in the energy sector,
notably the extension of electricity distribution grids between ACP countries
and cooperation between those States and other neighbouring States receiving
Community aid.
Article 108
In order to contribute to the objectives set out above, the Community
shall be prepared to give its technical and financial assistance to help
with the exploitation of the ACP States' energy potential in accordance
with the procedures peculiar to each of the instruments at its disposal
and according to the provisions of this Convention.
In the sphere of research and investment preparatory to the launching
of energy projects, the Community may give assistance in the form of risk
capital, possibly in conjunction with contributions of capital from the
ACP States concerned and other sources of financing, in accordance with
the procedures laid down in Article 234.
The resources referred to in these provisions may be supplemented,
for projects of mutual interest, by:
(a) other Community financial and technical resources;
(b) action aimed at the mobilization of public and private capital,
including cofinancing.
Article 109
The Bank may, in accordance with its Statute, commit its own resources
on a case-by-case basis beyond the amount fixed in the Financial Protocol
in energy investment projects recognized by the ACP State concerned and
by the Community as being of mutual interest.
TITLE VIII
ENTERPRISE DEVELOPMENT
Article 110
1. The Community and the ACP States stress that:
(i) enterprises constitute one of the main instruments for achieving
the objectives of strengthening the economic fabric, encouraging inter-sectoral
integration and increasing employment, incomes and the level of skills;
(ii) present ACP efforts to restructure their economies should be complemented
by efforts to strengthen and enlarge their productive base. The enterprise
sector should play an important part in the ACP States' strategies to revive
growth;
(iii) a stable and propitious environment should be created together
with an effective domestic financial sector with a view to reinvigorating
the enterprise sector in the ACP States and to encouraging European investment;
(iv) the private sector needs to be made more dynamic and play a greater
role, in particular through small and medium-sized enterprises, which are
better suited to conditions prevailing in the ACP economies. Micro-firms
and crafts should equally be encouraged and supported;
(v) private foreign investors complying with the objectives and priorities
of ACP-EEC development cooperation should be encouraged to participate
in the development efforts of the ACP States. Fair and equitable treatment
should be accorded to such investment as well as a propitious, secure and
predictable investment climate;
(vi) the fostering of ACP entrepreneurship is crucial for unlocking
the considerable potential of the ACP States.
2. Efforts should be made to channel an increased proportion of the
Convention's financial resources both to the encouragement of entrepreneurship
and investment and towards directly productive activities.
Article 111
In pursuit of the abovementioned objectives, the Contracting Parties
recognize the need to utilize the full range of instruments provided for
by this Convention, including technical assistance, in the following areas
with a view to sustaining private sector development:
(a) support for the improvement of the legal and fiscal framework for
business, and development of a greater role for professional organizations
and chambers of commerce in the process of enterprise development;
(b) direct assistance for the creation and the development of business
(specialized business start-up services; assistance for the redeployment
of ex-public sector employees; assistance for technology transfers and
development; management services and market research);
(c) the development of services in support of the enterprise sector
so as to provide enterprises with advisory services in the legal, technical
and managerial fields;
(d) specific programmes for training and developing the capacity of
individual entrepreneurs, particularly in the small-scale and informal
sectors.
Article 112
In order to support the development of the savings and domestic financial
sectors, the following areas of action merit special attention:
(a) assistance for the mobilization of domestic savings and the development
of financial intermediaries;
(b) technical assistance for the restructuring and reform of financial
institutions.
Article 113
With a view to assisting enterprise development in ACP States, the
Community shall provide technical and financial assistance, subject to
the conditions laid down in the development finance cooperation Title.
TITLE IX
DEVELOPMENT OF SERVICES
Chapter 1
Objectives and principles of cooperation
Article 114
1. The Community and the ACP States recognize the importance of services
in the formulation of development policies and the need to step up cooperation
in this sphere.
2. The Community shall support the ACP States' efforts to increase
their domestic capacity to provide services with a view to improving the
working of their economies, relieving balance of payment constraints and
stimulating the process of regional integration.
3. The object is to ensure that the ACP States derive maximum benefit
from the provisions of this Convention, at national and regional level,
and to enable them to:
- participate under the most favourable conditions in Community, domestic,
regional and international markets by diversifying the range and increasing
the value and volume of ACP States' trade in goods and services,
-increase their collective capacity by means of greater economic integration
and consolidation of functional cooperation or cooperation on specific
themes,
-stimulate enterprise development, notably by encouraging ACP-EEC investment
in services, with a view to creating employment, generating and distributing
revenue and facilitating the transfer and adaptation of technology to specific
ACP needs,
-derive maximum benefit from national or regional tourism and improve
their participation in world tourism,
-set up the transport and communications networks and informatics and
telematics systems needed for their development,
-step up vocational training activities and transfer of know-how in
view of the determining role of human resources in the development of services.
4. In pursuit of these aims, the Contracting Parties shall have recourse,
in addition to the specific provisions on services, to those on trade,
trade promotion, industrial development, investment and education and training.
Article 115
1. In view of the wide range of services and their unequal contribution
to development, and with a view to maximizing the impact of Community aid
on the development of ACP States, the two Parties agree to pay particular
attention to services necessary for their economies in the following areas:
- services that support economic development,
-tourism,
-transport, communications and information technology.
2. In order to implement cooperation in services, the Community shall
help carry out programmes, projects and operations submitted to it on the
initiative of the ACP States. To this end, it shall use all the means provided
for in this Convention, notably those at its disposal under development
finance cooperation, including those which are the responsibility of the
Bank.
Article 116
In the field of the development of services, particular attention shall
be given to the specific needs of landlocked and island ACP States arising
from their geographic situation and also to the economic situations of
least-developed ACP States.
Chapter 2
Services that support economic development
Article 117
In pursuit of cooperation objectives in this sector, cooperation shall
concern marketed services, without, however, this leading to neglect of
certain para-statal services required to improve the economic environment,
such as customs computerization, by giving priority to the following services:
- services that support foreign trade,
-services required by the business sector,
-services that support regional integration.
Article 118
To help restore the ACP States' external competitiveness, cooperation
in the field of services shall give priority to services that support external
trade, the scope of which is as follows:
(i) the creation of appropriate infrastructure for trade, in particular
through operations to improve external trade statistics, automation of
customs procedures, port and airport management and the establishment of
closer links between the various protagonists in trade, including exporters,
trade financing bodies, customs and central banks;
(ii) the promotion of specifically trade-oriented services such as
trade promotion measures that are also applicable to services;
(iii) the development of other external trade-linked services such
as trade financing and clearing and payment facilities, and access to information
networks.
Article 119
To foster a strengthening of the economic fabric of ACP States, taking
account of the provisions on enterprise development, particular attention
shall be paid to the following areas:
(i) business advisory services to improve the running of firms, notably
by>
Transfer interrupted!
he fields of management, accountancy, information technology, legal advice,
tax consultancy and finance;
(ii) the setting up of adequate, appropriate and flexible business
financing facilities to stimulate the growth or setting up of firms in
the field of services;
(iii) strengthening the ACP States' capacity in financial services,
technical assistance for developing insurance and credit institutions in
the field of trade development and promotion. Article 120
To underpin economic integration designed to create viable economies,
and in view of the provisions on regional cooperation, particular attention
shall be given to the following areas:
(i) services to support trade in goods between ACP States through trade
measures such as market studies;
(ii) services required for the expansion of trade in services between
ACP States with a view to enhancing their complementarity, notably by extending
traditional trade promotion measures, adapted where necessary to the services
sector;
(iii) the creation of regional centres of services aimed at supporting
specific economic sectors or jointly implemented sectoral policies, notably
through the development of modern communications and information networks
and computerized data banks.
Chapter 3
Tourism
Article 121
Recognizing the real importance of the tourist industry for the ACP
States, the Contracting Parties shall implement measures and operations
to develop and support tourism. These measures shall be implemented at
all levels, from the identification of the tourist product to the marketing
and promotion stage.
The aim shall be to support the ACP States' efforts to derive maximum
benefit from national, regional and international tourism in view of tourism's
impact on economic development and to stimulate private financial flows
from the Community and other sources into the development of tourism in
the ACP States. Particular attention shall be given to the need to integrate
tourism into the social, cultural and economic life of the people.
Article 122
Specific tourism development measures shall aim at the definition,
adaptation and development of appropriate policies at national, regional,
subregional and international levels. Tourism development programmes and
projects shall be based on these policies on the basis of the following
four components:
(a) human resources and institutional development, inter alia:
- professional management development in specific skills and continuous
training at appropriate levels in the private and public sectors to ensure
adequate planning and development,
-establishment and strengthening of tourism promotion centres,
-education and training for specific segments of the population and
public/private organizations active in the tourism sector, including personnel
involved in the support sector of tourism,
-intra-ACP cooperation and exchanges in the fields of training, technical
assistance and the development of institutions;
(b) product development, inter alia:
-identification of the tourism product, development of non-traditional
and new tourism products, adaptation of existing products including the
preservation and development of cultural heritage, ecological and environmental
aspects, management, protection and conservation of flora and fauna, historical,
social and other natural assets, development of ancillary services,
-promotion of private investment in the tourist industry of ACP States,
including the creation of joint ventures,
-provision of technical assistance for the hotel industry,
-production of crafts of a cultural nature for the tourist market.
(c) market development, inter alia:
-assistance for the definition and execution of objectives and market
development plans at national, subregional, regional and international
levels,
-provision of support for ACP States' efforts to gain access to services
for the tourist industry such as central reservation systems and air traffic
control and security systems;
-provision of marketing and promotional measures and materials in the
framework of integrated market development plans and programmes and with
a view to improved market penetration, aimed at the main generators of
tourism flows in traditional and non-traditional origin markets as well
as specific activities such as participation at specialized trade events,
such as fairs, production of quality literature, films and marketing aids.
(d) research and information, inter alia:
-improving tourism information and collecting, analysing, disseminating
and utilizing statistical data,
-assessment of the socio-economic impact of tourism on the economies
of ACP States with particular emphasis on the development of linkages to
other sectors in ACP States and regions such as food production, construction,
technology and management.
Chapter 4
Transport, communications and informatics
Article 123
1. Cooperation in the area of transport shall be aimed at the development
of road transport, railways, port installations and shipping, transport
by domestic waterways and air transport.
2. Cooperation in the area of communications shall be aimed at the
development of postal services and telecommunications, including radiocommunications
and informatics.
3. Cooperation in these areas shall be directed particularly towards
the following objectives:
(a) the creation of conditions fostering the movement of goods, services
and persons at national, regional and international level;
(b) the provision, rehabilitation, maintenance and efficient operation
of cost-effective systems serving the requirements of social and economic
development and adjusted to the needs of users and to the overall economic
situation of the States concerned;
(c) greater complementarity of transport and communications systems
at national, regional and international level;
(d) the harmonization of the national systems installed in ACP States,
while facilitating their adjustment to technological progress;
(e) the reduction of barriers to frontier-crossing transport and communications,
in terms of legislation, regulations and administrative procedures.
Article 124
1. In all cooperation projects and programmes in the fields concerned,
efforts shall be made to ensure an appropriate transfer of technology and
know-how.
2. Particular attention shall be given to training ACP nationals in
the planning, management, maintenance and operation of transport and communications
systems.
Article 125
1. The Contracting Parties recognize the importance of air transport
in forging closer economic, cultural and social links between the ACP States
and between them and the Community, in improving the communications of
isolated or not easily accessible regions and in developing tourism.
2. The objective of cooperation in this field shall be to promote the
harmonious development of national and regional ACP air transport networks
and the modernization of the ACP fleet of aircraft in line with technical
progress, the implementation of the International Civil Aviation Organization
air navigation plan, the improvement of reception infrastructures and the
application of international operating standards, the development and improvement
of air maintenance centres, the provision of training and the development
of modern airport security systems.
Article 126
1. The Contracting Parties acknowledge the importance of shipping services
as one of the forces behind economic development and promotion of trade
between them.
2. The objective of cooperation in this field shall be to ensure harmonious
development of efficient and reliable shipping services on economically
satisfactory terms by facilitating the active participation of all parties
according to the principle of unrestricted access to the trade on a commercial
basis.
Article 127
1. The Contracting Parties underline the importance of the United Nations
Convention on a Code of Conduct for Liner Conferences and the ratification
instruments thereof, which safeguard the terms of competition in maritime
matters and afford, inter alia, the shipping lines of developing countries
extended opportunities to participate in the conference system.
2. Consequently, the Contracting Parties are agreed, when ratifying
the Code, on taking prompt measures for its implementation at national
level, in conformity with its scope and provisions. The Community shall
assist ACP States to apply the relevant provisions of the Code.
3. In conformity with Resolution 2 on nonConference lines, annexed
to the Code, the Contracting Parties shall not prevent non-Conference lines
from operating in competition with a Conference line as long as they comply
with the principle of fair competition on a commercial basis.
Article 128
Attention shall be given in the context of cooperation to encouraging
the efficient shipment of cargo at economically and commercially meaningful
rates and to the aspirations of ACP States for greater participation in
such international shipping services. In this respect, the Community acknowledges
the aspirations of the ACP States for greater participation in bulk cargo
shipping. The Contracting Parties agree that competitive access to the
trade shall not be impaired.
Article 129
In the framework of financial and technical assistance for shipping,
special attention shall be given to:
- effective development of efficient and reliable shipping services
in the ACP States, notably the gearing of port infrastructure to meet traffic
requirements and the maintenance of port equipment,
-maintenance or acquisition of handling equipment and watercraft and
their modernization in line with technical progress,
-development of inter-regional shipping with a view to encouraging
intra-ACP cooperation and improvements in the functioning of ACP shipping,
-technology transfer including multimodal transport and containerization
for the promotion of joint ventures,
-setting up of appropriate legislative and administrative infrastructure
and the improvement of port management, notably through vocational training,
-development of inter-island shipping services and connecting infrastructure
and to increased cooperation with economic operators.
Article 130
The Contracting Parties undertake to promote shipping safety, security
of crews and the prevention of pollution.
Article 131
In order to ensure the effective implementation of Articles 126 to
130, consultation may take place, at the request of either Contracting
Party, where necessary under the conditions provided for in the rules of
procedure referred to in Article 11.
Article 132
1. In the field of cooperation on communications, particular attention
shall be paid to technological development in supporting ACP States' efforts
to establish and develop effective systems. This includes studies and programmes
concerning satellite communication, where this is justified by operational
considerations, in particular at regional and subregional level. Cooperation
shall also cover means of observation of the earth by satellite for meteorology
and remote-sensing purposes, notably their use for desertification control,
halting all forms of pollution, the management of natural resources, agriculture
and mining in particular, and land use planning.
2. Particular importance shall be attached to telecommunications in
rural areas, in order to stimulate their economic and social development.
Article 133
The aim of cooperation in the field of information technology shall
be the building up of the ACP States' information technology and telematics
capacity by offering countries which wish to give high priority to this
sector support for their efforts to acquire and install information technology
systems; the development of efficient telematic networks, including international
financial information; the production, in time, of computer components
and software in the ACP States; their participation in international activities
in the field of data processing and the publication of books and reviews.
Article 134
Cooperation activities in the transport and communications fields shall
be carried out in accordance with the provisions and procedures laid down
in Title III, Part Three of this Convention.
TITLE X
TRADE DEVELOPMENT
Article 135
With a view to attaining the objectives set out in Article 167 on trade
cooperation, the Contracting Parties shall implement measures for the development
of trade at all stages up to final distribution of the product.
The object is to ensure that the ACP States derive the maximum benefit
from the provisions of this Convention in the fields of trade, agricultural
and industrial cooperation and may participate under the most favourable
conditions in the Community, domestic, subregional, regional and international
markets by diversifying the range and increasing the value and the volume
of ACP States' trade in goods and services.
Article 136
1. In promoting the development of trade and services, in addition
to developing trade between the ACP States and the Community, particular
attention shall be given to operations designed to increase the ACP States'
self-reliance, develop intra-ACP trade, trade to international markets
and improve regional cooperation in trade and services.
2. Operations shall be undertaken at the request of the ACP States,
particularly in the following areas:
- the establishment of coherent trade strategies,
-development of human resources and professional skills in the field
of trade and services,
-the establishment, adaptation and strengthening of organizations in
the ACP States dealing with the development of trade and services, particular
attention being paid to the special needs of organizations in the least-developed,
landlocked and island ACP States,
-support for the ACP States' efforts to develop and improve the quality
of their products, adapt them to market requirements and diversify their
outlets,
-market development measures including increasing contacts and exchange
of information between economic operators in ACP States, the Member States
of the Community and in third countries,
-support for ACP States in the application of modern marketing techniques
in production-oriented sectors and programmes in areas such as rural development
and agriculture,
-support for the ACP States' efforts to develop and improve supportive
service infrastructure, including transport and storage facilities, in
order to ensure effective distribution of goods and services and in order
to enhance the flow of exports from ACP States,
-support for ACP States in developing their internal capacities, information
systems and awareness of the role and importance of trade in economic development,
-support to small and medium-sized enterprises for product identification
and development, market outlets and joint marketing ventures. 3. With a
view to expediting the procedures, financing decisions may deal with multiannual
programmes in accordance with the provisions of Article 290 on implementation
procedures.
4. Support for ACP States' participation in trade fairs, exhibitions
and trade missions should be carried out only where such events form an
integral part of overall trade and market development programmes.
5. Participation of the least-developed, landlocked and island ACP
States in various trade activities shall be encouraged by special provisions,
inter alia, the payment of travel expenses of personnel and costs of transporting
exhibits, on the occasion of their participation in national, regional
and third-country fairs, exhibitions or trade missions, including the cost
of the temporary construction and/or renting of exhibition booths and stalls.
Special assistance shall be provided to least-developed, landlocked and
island ACP States for the preparation and/or purchase of promotional material.
Article 137
Within the framework of the instruments provided for in this Convention
and in accordance with the provisions for development finance cooperation,
assistance for the development of trade and services shall include technical
assistance for the establishment and development of insurance and credit
institutions in connection with trade development.
Article 138
In addition to the appropriations which, within the framework of the
national indicative programmes referred to in Article 281, may be allocated
by each ACP State to the financing of operations to develop the fields
referred to in Titles IX and X, Part Two, the contribution of the Community
to the financing of such operations, where they are of a regional nature,
may amount, within the framework of the regional cooperation programmes
referred to in Article 156, to the amount provided for in the Financial
Protocol annexed to this Convention.
TITLE XI
CULTURAL AND SOCIAL COOPERATION
Article 139
Cooperation shall contribute to the self-reliant development of the
ACP States, a process centred on man himself and rooted in each people's
culture. The human and cultural dimension must embrace all areas and be
reflected in all development projects and programmes. Cooperation shall
back up the policies and measures adopted by those States to enhance their
human resources, increase their own creative capacities and promote their
cultural identities. It shall foster participation by the population in
the process of development.
Such cooperation shall aim at promoting, in the interests of dialogue,
exchange and mutual enrichment and, on a basis of equality, a better understanding
and greater solidarity between ACP governments and peoples on the one hand,
and between ACP and Community governments and peoples on the other.
Article 140
1. Cultural and social cooperation shall be expressed through:
- the taking into account of the cultural and social dimension in projects
and programmes,
-promotion of the cultural identities of the ACP States' peoples, with
a view to fostering their self-advancement, stimulating their creativity
and encourging intercultural dialogue,
- operations with the purpose of enhancing human resources with a view
to the judicious and optimum use of natural resources and the satisfaction
of basic physical and non-material needs.
2. Cultural and social cooperation schemes shall be undertaken in accordance
with the arrangements and procedures laid down in Title III of Part Three.
Resources may also be mobilized through the use of targeted counterpart
funds, which may be employed in the social sectors. All schemes shall be
governed by the priorities and objectives set in the indicative programmes
or in the context of regional cooperation, depending on their inherent
characteristics.
Article 141
The Foundation for ACP-EEC Cultural Cooperation shall be recognized
as having the task of contributing to the implementation of the objectives
of this Title.
Actions conducted by the Foundation to that end shall cover the following
areas:
- studies, research and measures concerning the cultural aspects of
taking into account the cultural dimension of cooperation,
-studies, research and measures to promote the cultural identities
of the ACP peoples and all initiatives likely to contribute to intercultural
dialogue.
Chapter 1
Cultural and social dimension
Article 142
1. The design, appraisal, execution and evaluation of each project
or programme shall be based on understanding of, and regard for, the cultural
and social features of the milieu.
2. This involves in particular:
- assessment of opportunities for participation by the population,
-thorough knowledge of the milieu and ecosystems concerned,
-study of local technology and of other appropriate forms of technology,
-provision of relevant information for all those concerned in the design
and execution of operations, including technical cooperation personnel,
-evaluation of the human resources available for executing and maintaining
projects,
-provision of integrated programmes for the promotion of human resources.
Article 143
The following shall be taken into account in the appraisal of all projects
and programmes:
(a) under the heading of cultural aspects:
- adaptation to the cultural milieu and the implications for that milieu,
-integration and enhancement of the local cultural heritage, notably
value systems, way of life, modes of thought and know-how, materials and
styles,
-methods of information acquisition and transmission,
-interaction between people and their environment and between population
and natural resources;
(b) under the heading of social aspects, the impact of such projects
or programmes on:
-reinforcement of capacities and structures for self-development,
-improvement of the status and role of women,
-the involvement of young people in economic, cultural and social development,
-contribution to the satisfaction of the basic cultural and physical
needs of the population,
-promotion of employment and training,
-balance between demographic structure and other resources,
-social and interpersonal relationships,
-structures, methods and forms of production and processing.
Article 144
1. Cooperation shall support the ACP States' efforts to ensure that
grassroots communities are closely and continuously involved in development
operations. Participation by the population should be encouraged from the
earliest stages of the preparation of projects and programmes and must
be designed to overcome linguistic, educational or cultural barriers.
To this end, and with the internal dynamics of the people as the starting
point, the following factors shall be taken into consideration:
(a) strengthening institutions capable of encouraging participation
by the people, through operations involving work organization, staff training
and management;
(b) helping the people to organize themselves, particularly within
cooperative-type associations, and placing at the disposal of the different
groups concerned means complementary to their own initiative and efforts;
(c) encouraging participation initiatives through education, training
and cultural motivation and promotion;
(d) involving the people concerned in the various stages of development.
Special attention should be given to the role of women, young people, the
elderly and the disabled and the impact of development projects and programmes
on these groups;
(e) expanding job opportunities, including those offered by the works
undertaken as part of development operations.
2. Measures to improve the situation of young people and encourage
recognition of their aspirations and their role in society may be supported
in the context of cooperation in this sphere.
3. Existing institutions or associations shall be used as widely as
possible for the preparation and execution of development operations.
Chapter 2
Promotion of cultural identities and intercultural dialogue
Article 145
The Contracting Parties shall encourage cooperation through operations
fostering the recognition of the cultural identities of the ACP peoples,
which are part of their histories and systems of values. It shall foster
the reciprocal cultural enrichment of the ACP peoples and those of the
Community.
Schemes to promote cultural identities shall be aimed at preserving
and enhancing the cultural heritage, the production and dissemination of
cultural products and services, highly representative cultural events and
support for information and communications media.
Intercultural dialogue shall be geared to more thorough knowledge and
a better understanding of cultures. By clearing obstacles to intercultural
communication, cooperation shall stimulate awareness of the interdependence
of peoples of different cultures.
Safeguarding the cultural heritage
Article 146
Support shall be provided for action by the ACP States to:
(a) safeguard and promote their cultural heritage, notably through
the establishment of cultural databanks and sound-recording libraries for
the collection of oral traditions and the enhancement of such traditions;
(b) conserve historical and cultural monuments and promote traditional
architecture.
Production and distribution of cultural goods
Article 147
Cooperation schemes aimed at developing ACP States' cultural productions
or coproductions and their distribution shall be designed as components
of an integrated programme or as specific projects.
Cooperation shall be aimed at fostering the distribution of the ACP
States' cultural goods and services which are highly representative of
their cultural identities in the ACP countries and the Community.
Where cultural items are produced for the market, their production
and distribution shall be eligible for assistance provided under industrial
cooperation and trade promotion.
Cultural events
Article 148
Cooperation shall support ACP events and exchanges and also those jointly
organized by ACP States and Member States of the Community in particularly
significant cultural spheres as part of the promotion of cultural identities
and intercultural dialogue.
In this context, cooperation shall support in particular contacts and
meetings between groups of young people from ACP States and between ACP
groups and groups of young people from Community Member States.
Information and communications
Article 149
Cooperation in the area of information and communications shall be
aimed at:
(a) increasing, by appropriate means, the ACP States' ability to contribute
actively to the international flow of information, communications and knowledge;
to this end it shall support, inter alia, the setting up and strengthening
of national, regional and inter-regional communications media and infrastructure;
(b) ensuring that the people of the ACP States are better informed
for the purposes of mastering their own development, through cultural,
economic or social projects or programmes making wide use of communications
systems and taking account of traditional communications techniques;
(c) supporting programmes aimed at creating the conditions for an effective
participation of the ACP States in mastery of information and new communications
technology.
Chapter 3
Operations to enhance the value of human resources
Article 150
Cooperation shall contribute to enhancing the value of human resources,
in the context of integrated and coordinated programmes, through operations
covering education and training, research, science and technology, participation
by the population, the role of women, health and nutrition, and population
and demography.
Education and training
Article 151
1. The education and training needs of each ACP State shall be determined
and taken into account at the programming stage.
2. Training operations shall take the form of integrated programmes
aimed at well-defined objectives, either in a given sector or as part of
a more general framework. They shall take account of each country's institutional
situation and social and cultural values.
3. Education and training operations identified under the indicative
programmes and within the focal sectors shall be priority objectives without
excluding the possibility of other training operations outside the focal
sectors of the indicative programmes.
4. These operations shall, as a matter of priority, be undertaken in
the recipient ACP State or region. Where necessary, they may be undertaken
in another ACP State or in a Member State of the Community. In the case
of specialized training particularly suited to the ACP States' needs, training
schemes may, by way of exception, be carried out in another developing
country.
5. In order to meet immediate and foreseeable education and training
needs, cooperation shall support the ACP States' efforts to:
(a) set up and expand training and educational establishments, particularly
those of a regional nature;
(b) restructure their educational establishments and systems, update
curricula, methods and technology employed and reform their basic educational
institutions and systems, in particular by providing overall primary education
coverage and adjusting imported systems as well as building them into development
strategies;
(c) inform and make the population aware of progress in science and
technology at an early age and at all stages of education and to place
emphasis on curricula that incorporate science, technology and practical
applications of knowledge geared to job prospects, taking account of traditional
techniques;
(d) pay greater attention to the history and culture of the ACP peoples;
(e) draw up an inventory of the skills and training and identify new
technology required to achieve each ACP State's development objectives;
(f) encourage educational and training operations proper, notably literacy
programmes and programmes of non-traditional forms of training, for functional
and vocational purposes, as well as components of programmes that enhance
the potential and status of illiterate people;
(g) exchange their experience with the Community in the field of literacy
education and promote and support the participation and integration of
women in education and training and give less advantaged sections of the
population in rural areas access to education and training;
(h) stimulate training of instructors, educational planners and specialists
in educational technology;
(i) initiate associations, twinning, exchanges and transfers of information
and technology between universities and institutions of higher education
in the ACP States and in the Community. Scientific and technical cooperation
Article 152
1. The aim of scientific and technical cooperation shall be to:
(a) provide support for the ACP States' efforts to acquire their own
scientific and technical skills, master the technology they require for
their development and participate actively in modern scientific, environmental
and technological developments;
(b) target research to find solutions to economic and social problems;
(c) improve the quality of life and well-being of the people.
2. To this end, cooperation shall provide support, in addition to that
under Articles 47, 85 and 229 for:
(a) identification of the ACP States' needs concerning relevant new
technology (including biotechnology) and its acquisition;
(b) the execution of research programmes established by the ACP States
and integrated into other development operations;
(c) associations, twinning, exchanges and transfers of information
and technology between universities and research institutes in the ACP
States and in the Community.
3. Research programmes shall be carried out primarily in the ACP States'
national or regional framework; they shall take account of the needs and
living conditions of the people concerned, especially the rural population,
while guarding against any adverse repercussions on health, the environment,
employment or development. They shall support development in priority areas
and comprise the following operations, as needed:
(a) the setting up or strengthening of basic or applied research institutes;
(b) scientific and technological cooperation between the ACP States
or between them and the Member States of the Community or other countries,
developed or developing, and with Community or international scientific
institutes;
(c) the promotion of local technology, and the selection of imported
technology and its adaptation to the specific needs of the ACP States;
(d) improvement of scientific and technical information and documentation
to ensure the better dissemination of research trends and findings, via
networks at national, subregional, regional and inter-regional levels and
between ACP States and the Community;
(e) making research findings accessible to the general public. 4. These
research programmes should be coordinated wherever possible with others
implemented in the ACP States with the help of other sources of financing
such as international research institutes, the Member States of the Community
or the Community itself.
Women in development
Article 153
Cooperation shall support the ACP States' efforts aimed at:
(a) enhancing the status of women, improving their living conditions,
expanding their economic and social role and promoting their full participation
in the production and development process on equal terms with men;
(b) paying particular attention to access by women to land, labour,
advanced technology, credit and cooperative organizations and to appropriate
technology aimed at alleviating the arduous nature of their tasks;
(c) providing easier access by women to training and education, which
shall be regarded as a crucial element to be incorporated from the outset
in development programming;
(d) adjusting education systems as necessary to take account in particular
of women's responsibilities and opportunities;
(e) paying particular attention to the crucial role women play in family
health, nutrition and hygiene, the management of natural resources and
environmental protection. Dissemination of information to women and training
of women in these areas are fundamental factors to be considered at the
programming stage. Appropriate action shall be taken in all operations
referred to above to ensure the active participation of women.
Health and nutrition
Article 154
1. The ACP States and the Community recognize the importance of the
health sector to ensuring sustainable and self-reliant development. The
aim of cooperation shall be to facilitate the right of access of the greatest
number of people to adequate health care, thus promoting equity and social
justice, alleviating suffering, reducing the economic burden of disease
and mortality, and promoting the effective participation of the community
in operations to improve health and well-being.
The two parties recognize that the attainment of these aims calls for:
- a systematic, long-term approach to the improvement and strengthening
of the health sector,
-the definition of comprehensive national health guidelines and programmes,
-improved management and use of existing human, financial and physical
resources.
2. To this end, cooperation in this sector shall seek to support functional
and sustainable health services which are financially affordable, culturally
acceptable, geographically accessible and technically competent. It shall
seek to promote an integrated approach to the creation of health services
based on the extension of preventive care, the improvement of curative
care and complementarity between hospital-based and basic-level services,
in accordance with primary health care policy.
3. Cooperation in the health sector may provide support for:
- the improvement and extension of basic health services and also the
strengthening of hospitals and maintenance of equipment, acknowledged as
essential for the smooth operation of the health system as a whole,
-health-sector planning and management, including the strengthening
of statistical services, and the formulation of health-financing strategies
at national, regional and district levels, this last level being the focal
point for coordination of basic services, provision of specialist services
and implementation of programmes to stamp out widespread diseases,
-schemes to integrate traditional medicine in modern health care,
-essential drug programmes and strategies, including local production
units for basic drugs and consumables, taking account of traditional pharmacy,
in particular the use of medicinal plants, which is something that should
be studied and developed,
-training of staff in the context of an overall programme, from public
health planners, administrators, management staff and specialists, down
to the personnel working in the field, this training being tailored to
the actual responsibilities borne at each level,
-support for training and information programmes and campaigns aimed
at stamping out endemic diseases, improving environmental hygiene, combatting
the use of narcotic drugs, the spread of transmitted diseases and other
health scourges in the framework of integrated health systems,
-the building up of research institutes, university departments and
specialist schools in ACP countries, notably in the field of public health.
Population and demography
Article 155
1. Cooperation on population shall be aimed in particular at:
(a) ensuring a better overall balance in the ACP States between population,
the protection of the environment and natural resources and the production
of economic resources and social goods;
(b) dealing with regional imbalances, which may stem from factors such
as internal migration, rural exodus, rapid urbanization and increasing
environmental deterioration;
(c) dealing with local imbalances between population and available
resources.
2. Measures to achieve the objectives referred to in paragraph 1 should
be made part of training programmes and projects, health or land-use planning
policies and shall include:
(a) creation of statistical and demographic services in the ACP States
or expansion of their capacity, with a view to collecting reliable data
for the formulation of population policies;
(b) public information about demographic problems and policies;
(c) the preparation, implementation and evaluation of demographic projects
or programmes;
(d) the formulation and implementation of voluntary family planning
policies;
(e) the training of personnel in the ACP States to implement population
policies in various sectors.
3. Such measures shall take into account local, cultural and social
practices and local economies. They shall be drawn up and carried out in
accordance with the policies and programmes of ACP States and in conformity
with fundamental rights and the freely made choices of individuals concerning
family size, the planning of births and the means to be used for family
planning.
The implementation of such measures shall take particular account of
the interaction between demographic and other policies. The role of women
in these different areas shall be considered essential.
TITLE XII
REGIONAL COOPERATION
Article 156
1. The Community shall support the ACP States' efforts through regional
cooperation and integration to promote long-term collective and self-reliant,
self-sustained and integrated social, cultural and economic development
and greater regional self-sufficiency.
2. Community support shall be given within the framework of the major
regional cooperation and integration objectives which the ACP States have
set or will set for themselves at regional, inter-regional and international
level.
3. In order to promote and strengthen the ACP States' collective capabilities,
the Community shall provide effective aid enabling them to strengthen regional
economic integration and consolidate cooperation of a functional type or
on specific themes referred to in Articles 158 and 159.
4. While taking account of local circumstances, regional cooperation
shall transcend the concepts of geographical location. It shall also cover
intra-ACP regional cooperation.
It shall include regional cooperation between ACP States and overseas
territories or departments. The funding to enable the participation of
these territories and departments shall be additional to funds allocated
to the ACP States under the Convention.
Article 157
1. Regional cooperation shall cover operations agreed on between:
- two or more or all ACP States,
-one or more ACP States and one or more neighbouring non-ACP States,
countries or territories,
-one or more ACP States and one or more overseas territories or departments,
-two or more regional bodies of which ACP States are members,
-one or more ACP States and regional bodies of which ACP States are
members.
2. Regional cooperation may also cover projects and programmes agreed
upon by two or more ACP States and one or more non-ACP, non-neighbouring
developing States and, when special circumstances so warrant, between one
ACP State and one or more non-ACP, non-neighbouring developing States.
Article 158
1. In the context of regional cooperation particular attention shall
be paid to:
(a) evaluation and utilization of existing and potential dynamic complementarities
in all relevant sectors;
(b) maximization of the use of ACP human resources as well as the optimum
and judicious exploration, conservation, processing and exploitation of
ACP natural resources;
(c) promotion of scientific and technical cooperation among the ACP
States, including support for intra-ACP technical assistance programmes
as provided for in Article 275 (e) of the Convention;
(d) acceleration of economic diversification in order to stimulate
complementarity in production and intensification of cooperation and development
within and between ACP regions, as well as between the latter and overseas
territories and departments;
(e) promotion of food security;
(f) strengthening a network of relations among individual countries
or groups of countries which have common characteristics, affinities and
problems in order to solve such problems;
(g) fullest use of economies of scale wherever a regional solution
is more efficient than a national solution;
(h) expansion of ACP States' markets by promoting trade among ACP States
and between the ACP States and neighbouring third countries or overseas
territories and departments;
(i) integration of ACP States' markets by liberalizing intra-ACP trade
and eliminating tariff, non-tariff, monetary and administrative barriers.
2. Particular stress shall be put on the promotion and strengthening
of regional economic integration.
Article 159
1. Having regard to Article 158, the scope of regional cooperation
shall include the following:
(a) agriculture and rural development, notably food self-sufficiency
and food security;
(b) health programmes, including education, training, research and
information related to primary health care and control of major diseases,
including animal diseases;
(c) evaluation, development, exploitation and preservation of fishery
and marine resources, including scientific and technical cooperation with
a view to the surveillance of exclusive economic zones;
(d) preservation and improvement of the environment, especially through
programmes to combat desertification, erosion, deforestation, coastal deterioration,
the consequences of large-scale marine pollution, including large accidental
discharges of petroleum or other pollutants with a view to ensuring rational
and ecologically balanced development;
(e) industrialization, including the setting up of regional and inter-regional
production and marketing enterprises;
(f) exploitation of natural resources, notably the production and distribution
of energy;
(g) transport and communications, namely roads, railways, air and sea
transport, inland waterways, postal services and telecommunications and
give priority to the establishment, rehabilitation and development of road
and rail links to the sea for the landlocked ACP States;
(h) development and expansion of trade;
(i) support for the setting up or strengthening of regional payment
mechanisms including clearing and financing facilities for trade;
(j) support, at the request of the ACP States concerned, for operations
and structures which promote the coordination of sectoral policies and
structural adjustment efforts;
(k) assistance to ACP States to help combat drug trafficking at regional
and inter-regional levels;
(l) assistance for action programmes undertaken by ACP and ACP-EEC
trade and business organiz ations with the aim of improving the production
and marketing of products on external markets;
(m) education and training, research, science and technology, informatics,
management, information and communication, the establishment and strengthening
of training and research institutions and technical bodies responsible
for technology exchanges and cooperation among universities;
(n) other services, including tourism;
(o) cultural and social cooperation activities, including support for
action-oriented programmes taken by ACP States at regional level with a
view to enhancing the status of women, improving their living conditions,
expanding their economic and social role and promoting their full participation
in the economic, cultural and social development process.
Article 160
1. In order to improve its impact and effectiveness, regional cooperation
shall be programmed for each region at the beginning of the period covered
by the Convention.
The programming, with the participation of the ACP States, shall be
based on an appropriation fixed at the outset for each region and shall
be the result of an exchange of views between all the national authorizing
officers in the region concerned, or a regional organization which they
have mandated to represent them, the Commission and its delegates:
(a) The aim of this programming shall, in accordance with Article 156
(2), be to draw up a programme specifying:
- the focal sectors for Community aid,
-the most appropriate measures and operations to achieve the objectives
set for those sectors,
-the projects and programmes enabling those objectives to be attained,
in so far as they have been clearly identified.
(b) The exchange of views organized for the purpose of programming
shall continue for the purposes of implementation and follow-up; to that
end, the national authorizing officers of the region concerned or a regional
organization which they have mandated to represent them, the Commission
and its delegates, and those in charge of regional projects and programmes
shall meet, as a general rule, once a year to ensure that regional programmes
are correctly implemented.
2. Account being taken of the objectives and inherent characteristics
of regional cooperation, projects and programmes undertaken in this sphere
shall be governed by the arrangements and procedures established for development
finance cooperation where they apply to that context.
Article 161
1. Regional organizations duly mandated by the ACP States concerned
must play an important part in the design and implementation of regional
programmes.
2. They may take part in the programming exercise and in the implementation
and management of regional programmes and projects.
3. Where an operation is financed by the Community through a regional
cooperation body, the financing terms applicable to the final beneficiaries
shall be agreed between the Community and that body in agreement with the
ACP State or States concerned.
Article 162
A regional operation is one which helps directly to solve a development
problem common to two or more countries through joint schemes or coordinated
national schemes and which meets at least one of the following criteria:
(a) because of its nature or physical characteristics, it necessarily
extends beyond the frontiers of one ACP State and cannot be carried out
by a single country nor be divided up into national operations to be undertaken
by each State on its own account;
(b) the regional formula makes it possible to achieve significant economies
of scale in relation to national operations;
(c) the operation is the regional, inter-regional or intra-ACP expression
of a sectoral or a global strategy;
(d) the accompanying costs and benefits are unequally shared out among
the beneficiary countries.
Article 163
The Community's contribution under regional cooperation shall, in respect
of operations which could be undertaken partly at national level, be determined
on the basis of the following factors:
(a) the operation strengthens cooperation between the ACP States concerned
at the level of authorities, institutions or enterprises, or through regional
bodies or by removing obstacles, whether in the form or regulations or
financial;
(b) two or more States have entered into mutual commitments in respect
of an operation, notably as regards the distribution of facilities, investment
and the running thereof.
Article 164
1. The requests for financing from funds earmarked for regional cooperation
shall be governed by the following general procedures:
(a) requests for financing shall be presented by each of the ACP States
participating in a regional operation;
(b) wherever an operation of regional cooperation is such as to be
of interest to other ACP States, the Commission shall, in agreement with
other applicant States, inform the other ACP States or, if need be, all
the ACP States. The ACP States interested shall then confirm whether they
intend to participate.
Notwithstanding this procedure, the Commission shall examine without
delay any request for financing as long as it has been presented by at
least two ACP States. The financing decision shall be taken after the States
consulted have communicated their intention;
(c) where a single ACP State is associated with non-ACP countries,
as provided for in Article 157, its request alone shall suffice;
(d) request for financing for intra-ACP regional cooperation schemes
may be submitted by the ACP Council of Ministers, or, by specific delegation,
by the ACP Committee of Ambassadors;
(e) regional cooperation bodies may present requests for the financing
of one or more specific regional cooperation schemes on behalf, and with
the explicit agreement, of those of their members that are ACP States;
(f) each request for regional cooperation funding must include, where
necessary, proposals concerning:
(i) the ownership of the goods and services to be financed as part
of the operation, and the division of responsibilities for operation and
maintenance;
(ii) the choice of the regional authorizing officer and the State or
body authorized to sign the financing agreement on behalf of all the participating
ACP States or bodies. 2. The indicative programme for each region may lay
down appropriate arrangements for the submission of requests.
3. The ACP State or States or regional bodies participating in a regional
operation with third countries as provided for in Article 157 may request
the Community to finance that part of the operation for which they are
responsible or a part in proportion to the benefits they derive from the
operation.
Article 165
1. With a view to encouraging regional cooperation between the least-developed,
landlocked and island countries, particular attention shall be paid to
these countries' specific problems at the regional programming stage and
in the implementation.
2. As regards financing, the least-developed ACP States shall be given
priority in any project involving at least one ACP State in that category,
while special attention shall be paid to the landlocked and island ACP
States in order to overcome the obstacles holding back their development.
Article 166
For the purposes set out in the present Title, the amount of the Community's
financial assistance is provided for in Article 3 of the Financial Protocol
to this Convention.
PART THREE
THE INSTRUMENTS OF ACP-EEC COOPERATION
TITLE I
TRADE COOPERATION
Chapter 1
General trade arrangements
Article 167
1. In the field of trade cooperation, the object of this Convention
is to promote trade between the ACP States and the Community, taking account
of their respective levels of development, and also between the ACP States
themselves.
2. In the pursuit of this objective, particular regard shall be had
to securing effective additional advantages for ACP States' trade with
the Community and to improving the conditions of access for their products
to the market in order to accelerate the growth of their trade and, in
particular, of the flow of their exports to the Community and to ensure
a better balance in the trade of the Contracting Parties.
3. To this end, the Contracting Parties shall apply the provisions
of this Title and the other appropriate measures under Title III of this
Part and under Part Two of this Convention.
Article 168
1. Products originating in the ACP States shall be imported into the
Community free of customs duties and charges having equivalent effect.
2. (a) Products originating in the ACP States:
- listed in Annex II to the Treaty where they come under a common organization
of the market within the meaning of Article 40 of the Treaty, or
-subject, on import into the Community, to specific rules introduced
as a result of the implementation of the common agricultural policy
shall be imported into the Community, notwithstanding the general arrangements
applied in respect of third countries, in accordance with the following
provisions:
(i) those products shall be imported free of customs duties for which
Community provisions in force at the time of import do not provide, apart
from customs duties, for the application of any measure relating to their
import;
(ii) for products other than those referred to in point (i), the Community
shall take the necessary measures to ensure more favourable treatment than
that granted to third countries benefiting from the most-favoured-nation
clause for the same products.
(b) If, during the application of this Convention, the ACP States request
that new lines of agricultural production or agricultural products which
are not the subject of specific arrangements when this Convention enters
into force should benefit from such arrangements, the Community shall examine
these requests in consultation with the ACP States.
(c) Notwithstanding the above, the Community shall, in the context
of the special relations and special nature of ACP-EEC cooperation, examine
on a case-by-case basis the requests from the ACP States for preferential
access for their agricultural products to the Community market and shall
notify its decision on these reasoned requests if possible within four
months, and in any case not more than six months after the date of their
submission.
Within the context of subparagraph (a) (ii), the Community shall take
its decisions in particular with reference to concessions granted to developing
third countries. It shall take account of the possibilities offered by
the off-season market.
(d) The arrangements referred to in subparagraph (a) shall enter into
force at the same time as this Convention and shall remain applicable for
its duration.
However, if during the application of this Convention, the Community:
- subjects one or more products to common organization of the market
or to specific rules introduced as a result of the implementation of the
common agricultural policy, it shall reserve the right to adapt the import
treatment for those products originating in the ACP States, following consultations
within the Council of Ministers. In such cases, the provisions of subparagraph
(a) shall be applicable,
- modifies the common organization of the market in a particular product
or the specific rules introduced as a result of the implementation of the
common agricultural policy, it shall reserve the right to modify the arrangements
laid down for products originating in the ACP States, following consultations
within the Council of Ministers. In such cases the Community shall undertake
to ensure that products originating in the ACP States continue to enjoy
an advantage comparable to that previously enjoyed in relation to products
originating in third countries benefiting from the most-favoured-nation
clause.
(e) Where the Community intends to conclude a preferential agreement
with third States it shall inform the ACP States thereof. Consultations
shall take place where the ACP States so request in order to safeguard
their interests.
Article 169
1. The Community shall not apply to imports of products originating
in the ACP States any quantitative restrictions or measures having equivalent
effect.
2. However, paragraph 1 shall apply without prejudice to the import
arrangements for the products referred to in the first indent of Article
168 (2) (a).
The Community shall inform the ACP States when residual quantitative
restrictions are eliminated in respect of any of these products.
Article 170
1.
Article 169 shall not preclude prohibitions or restrictions on imports,
exports or goods in transit justified on grounds of public morality, public
policy or public security, the protection of health and life of humans,
animals and plants, the protection of national treasures possessing artistic,
historic or archaeological value or the protection of industrial and commercial
property.
2. Such prohibitions or restrictions shall in no case constitute a
means of arbitrary discrimination or a disguised restriction of trade generally.
In cases where implementation of the measures referred to in paragraph
1 affects the interests of one or more ACP States, consultations shall
be held at the request of the latter, in accordance with the second paragraph
of Article 12, with a view to reaching a satisfactory solution.
3. Provisions on the movement of hazardous and radioactive waste are
set out in Part Two, Title I of this Convention.
Article 171
The treatment applied to imports of products originating in the ACP
States may not be more favourable than that applied to trade among the
Member States of the Community.
Article 172
Where new measures or measures stipulated in programmes adopted by
the Community for the approximation of laws and regulations in order to
facilitate the movement of goods are likely to affect the interests of
one or more ACP States, the Community shall, prior to adopting such measures,
inform the ACP States thereof through the Council of Ministers.
In order to enable the Community to take into consideration the interests
of the ACP State concerned, consultations shall be held at the request
of the latter in accordance with Article 12, second paragraph, with a view
to reaching a satisfactory solution.
Article 173
1. Where existing Community rules or regulations adopted in order to
facilitate the movement of goods 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 with a view to reaching
a satisfactory solution.
2. With a view to finding a satisfactory solution, the ACP States may
also bring up within the Council of Ministers any other problems relating
to the movement of goods which might result from measures taken or envisaged
by the Member States.
3. The relevant institutions of the Community shall, to the greatest
possible extent, inform the Council of Ministers of such measures in order
to ensure effective consultations.
Article 174
1. In view of their present development needs, the ACP States shall
not be required for the duration of this Convention to assume, in respect
of imports of products originating in the Community, obligations corresponding
to the commitment entered into by the Community under this Chapter in respect
of imports of the products originating in the ACP States.
2. (a) In their trade with the Community, the ACP States shall not
discriminate among the Member States and shall grant to the Community treatment
no less favourable than most-favoured-nation treatment.
(b) Notwithstanding specific provisions of this Convention, the Community
shall not discriminate between ACP States in the field of trade.
(c) The most-favoured-nation treatment referred to in subparagraph
(a) shall not apply in respect of trade or economic relations between ACP
States or between one or more ACP States and other developing countries.
Article 175
Unless it has already done so under earlier ACP-EEC Conventions, each
Contracting Party shall communicate its customs tariff to the Council of
Ministers within three months of the entry into force of this Convention.
Each Contracting Party shall also communicate any subsequent amendments
to its tariff as and when they come into force.
Article 176
1. The concept of 'originating products` for the purposes of implementing
this Chapter, and the methods of administrative cooperation relating thereto,
are defined in Protocol 1.
2. The Council of Ministers may adopt any amendment to Protocol 1.
3. Where the concept of 'originating products` has not yet been defined
for a given product pursuant to paragraphs 1 or 2, each Contracting Party
shall continue to apply its own rules.
Article 177
1. Should application of this Chapter result in serious disturbances
in a sector of the economy of the Community or of one or more of the Member
States, or jeopardize their external financial stability, or if difficulties
arise which may result in a deterioration thereof, the Community may take,
or may authorize the Member State concerned to take, safeguard measures.
These measures, their duration and their methods of application shall be
notified immediately to the Council of Ministers.
2. The Community and its Member States undertake not to use other means
for protectionist purposes or to hamper structural development. The Community
will refrain from using safeguard measures having the same effect.
3. Safeguard measures shall be restricted to those which would least
disturb trade between the Contracting Parties in implementing the objectives
of this Convention and must not exceed the scope of what is strictly necessary
to remedy the difficulties that have arisen.
4. When applied, safeguard measures shall take account of the existing
level of the ACP exports concerned to the Community and their potential
for development.
Article 178
1. Prior consultations shall take place concerning the application
of the safeguard clause, both when such measures are first adopted and
when they are extended. The Community shall provide the ACP States with
all the information required for such consultations and shall provide the
data from which to determine to what extent imports from an ACP State or
ACP States of a specific product have caused the effects referred to in
Article 177 (1).
2. Where consultations have taken place, safeguard measures, or arrangements
jointly agreed upon by the ACP States concerned and the Community, shall
enter into force thereafter.
3. However, the prior consultations provided for in paragraphs 1 and
2 shall not prevent any immediate decisions which the Community or its
Member States, in accordance with Article 177 (1), might take where special
factors have necessitated such decisions.
4. In order to facilitate the examination of factors that may cause
market disturbances, a mechanism shall be instituted for the statistical
surveillance of certain ACP exports to the Community.
5. The Contracting Parties undertake to hold regular consultations
with a view to finding satisfactory solutions to problems which might result
from the application of the safeguard clause.
6. The prior consultations as well as the regular consultations and
the surveillance mechanism referred to in paragraphs 1 to 5 shall be implemented
in accordance with Protocol 4.
Article 179
The Council of Ministers shall, at the request of any Contracting Party
concerned, consider the economic and social effects of the application
of the safeguard clause.
Article 180
When safeguard measures are being taken, modified or removed, particular
attention shall be paid to the interests of the least-developed, landlocked
and island ACP States.
Article 181
In order to ensure the effective implementation of this Convention
in the field of trade and customs cooperation, the Contracting Parties
agree to inform and consult each other.
In addition to the cases for which consultations are specifically provided
for in Articles 167 to 180, consultations shall also take place, at the
request of the Community or of the ACP States, and in accordance with the
conditions provided for in the procedural rules in Articles 12, particularly
in the following cases:
(1) where Contracting Parties intend to take any trade measures affecting
the interests of one or more Contracting Parties under this Convention,
they shall inform the Council of Ministers thereof. Consultations shall
take place, where the Contracting Parties concerned so request, in order
to take account of their respective interests;
(2) if, during the application of this Convention, the ACP States consider
that agricultural products covered by Article 168 (2) (a) other than those
subject to special treatment should benefit from such treatment, consultations
may take place within the Council of Ministers;
(3) where a Contracting Party considers that obstacles to the movement
of goods arise as a result of the existing rules of another Contracting
Party or the interpretation, application or administration thereof;
(4) where the Community or the Member States take safeguard measures
in accordance with Article 177, consultations on these measures may take
place within the Council of Ministers, where the Contracting Parties concerned
so request, notably with a view to ensuring compliance with Article 177
(3).
Such consultations must be completed within three months.
Chapter 2
Special undertakings on rum and bananas
Article 182
Until the entry into force of a common organization of the market in
spirits and notwithstanding Article 167 (1), entry into the Community of
products of subheadings 2208 40 10, 2208 40 90, 2208 90 11 and 2208 90
19 of the combined nomenclature - rum, arrack, taffia - originating in
the ACP States shall be governed by Protocol 6.
Article 183
In order to permit the improvement of the conditions under which bananas
originating in the ACP States are produced and marketed, the Contracting
Parties hereby agree to the objectives set out in Protocol 5.
Article 184
This Chapter and Protocols 5 and 6 shall not apply to relations between
the ACP States and the French overseas departments.
Chapter 3
Trade in services
Article 185
1. The Contracting Parties recognize the importance of trade in services
for the development of the ACP States' economies, on account of the increasing
role of services in international trade and their considerable growth potential.
2. The ACP States and the Community recognize that the long-term aim
in this area is a progressive liberalization of trade in services, with
due respect for national policy objectives, and taking due account of the
level of development of ACP States.
3. The ACP States and the Community recognize further that it will
be opportune and necessary to develop cooperation in this sector when the
outcome of current multilateral trade negotiations is known.
4. Therefore, the Contracting Parties will negotiate amendments or
further elaboration of this Convention to take account, and to take advantage,
of the outcome of the multilateral trade negotiations in the GATT.
5. Following the negotiations referred to in paragraph 4, which will
take place within the framework of the Council of Ministers, the Council
of Ministers may adopt any amendment to this Chapter.
TITLE II
COOPERATION IN THE FIELD OF COMMODITIES
Chapter 1
Stabilization of export earnings from agricultural
commodities
Article 186
1. With the aim of remedying the harmful effects of the instability
of export earnings and to help the ACP States overcome one of the main
obstacles to the stability, profitability and sustained growth of their
economies, to support their development efforts and to enable them in this
way to ensure economic and social progress for their peoples by helping
to safeguard their purchasing power, a system shall be operated to guarantee
the stabilization of export earnings derived from the ACP States' exports
to the Community or other destinations as defined in Article 189, of products
on which their economies are dependent and which are affected by fluctuations
in price or quantity or both these factors.
2. In order to attain these objectives, transfers shall be devoted,
in accordance with a framework of mutual obligations to be agreed between
the ACP State concerned and the Commission in each case, either to the
sector, interpreted in the widest possible sense, that recorded the loss
of export earnings and be used there for the benefit of economic operators
adversely affected by this loss, or, where appropriate, to diversification,
either for use in other appropriate productive sectors in principle agricultural,
or for the processing of agricultural products.
Article 187
1. The following products shall be covered: >TABLE POSITION>
2. In all cases of application of the system, the Commission shall,
in the interests of the ACP State concerned, consider as products within
the meaning of this chapter:
(a) each product listed in paragraph 1;
(b) product groups 1 and 2, 3 to 7, 8 and 9, 10 and 11, 12 to 14, 15
to 17, 18 to 21, 22 and 23, 24 and 25, 47 and 48.
Article 188
If, 12 months after the entry into force of this Convention, one or
more products not contained in the list in Article 187 but upon which the
economies of one or more ACP States depend to a considerable extent are
affected by sharp fluctuations, the Council of Ministers shall decide,
not more than six months after the presentation of a request by the ACP
State or States concerned whether or not to include the said product or
products in the list, taking account of factors such as employment, deterioration
of the terms of trade between the Community and the ACP State concerned,
the level of development of the ACP State concerned and the conditions
which characterize products originating in the Community.
Article 189
1. The system shall apply to earnings from exports:
(a) by each ACP State to the Community of each product referred to
in Article 187 (2);
(b) by the ACP States benefiting from the derogation referred to in
paragraph 2 to the other ACP States of each product referred to in Article
187 (2) for which such derogation has been granted;
(c) by the ACP States benefiting from the derogation referred to in
paragraph 3 to all destinations of each product referred to in Article
187 (2).
2. At the request of one or more ACP States in respect of one or more
of the products referred to in Article 187 (1), the Council of Ministers
may decide, after examination of a report established by the Commission
on the basis of the relevant information provided by the requesting ACP
State or States, and not more than six months after the presentation of
the request, to apply the system to exports of the products in question
from the said ACP State or States to other ACP States.
3. If, on the basis of relevant data for the average of the two years
preceding the application year, at least 70 % of an ACP State's total export
earnings from products covered by the system do not come from exports to
the Community, the system shall be automatically applied to its exports
of each of the products referred to in Article 187 (2), whatever the destination.
In the case of the least-developed ACP States this percentage shall
be 60 %.
For each year of application and for each ACP State, the Commission
shall check that these criteria have been fulfilled.
Article 190
For the purposes stipulated in Article 186 and for the duration of
the Financial Protocol annexed to this Convention, the amount provided
for in that protocol shall be allocated to the system. This amount shall
cover all commitments under the system. It shall be managed by the Commission.
Article 191
1. The overall amount referred to in Article 190 shall be divided into
a number of equal annual instalments corresponding to the number of years
of application of the Financial Protocol.
2. Whatever balance remains at the end of each year of application
of the Financial Protocol annexed to this Convention except the last shall
be carried forward automatically to the following year.
Article 192
Interest earned by investment in the market, over the period from 1
April to 30 June, of the sum equivalent to half each annual instalment,
minus any advances and transfers paid during that period, shall be credited
to the system's resources.
Interest earned by investment in the market, over the period from 1
July to 31 March, of the sum equivalent to the second half of each annual
instalment, minus any advances and transfers paid during that second period,
shall be credited to the system's resources.
Any part of an annual instalment which has not been advanced or transferred
shall continue to bear interest which will be added to the system's resources
until its utilization in the following year.
Article 193
The resources available for each year of application are made up of
the sum of the following:
(1) the annual instalment, plus any amounts available or less any amounts
used under Article 194 (1);
(2) the sums carried forward under Article 191 (2);
(3) the amount of interest earned pursuant to Article 192.
Article 194
1. If the total amount of the transfer bases in a year of application,
calculated in accordance with Article 197, and where appropriate reduced
in accordance with Articles 202 to 204, exceeds the amount of resources
available in the system for that year, advance use shall be made automatically,
for each year except the last, of a maximum of 25 % of the following year's
instalment.
2. If, after the operation referred to in paragraph 1, the amount of
resources available is still less than the total amount of the transfer
bases referred to in paragraph 1 for the same year of application, the
amount of each transfer basis shall be reduced by 10 % of that amount.
3. If, after the reduction referred to in paragraph 2, the total amount
of the transfers so calculated is less than the amount of resources available,
the remainder shall be shared among all the transfers in proportion to
the amounts by which each transfer was reduced.
4. If, after the reduction referred to in paragraph 2, the total amount
of the transfers which may give rise to a payment exceeds the amount of
available resources, the Council of Ministers shall evaluate the situation
on the basis of a Commission report on the probable development of the
system and shall examine the steps to be taken to remedy that situation,
within the terms of this Convention.
Article 195
In the case of any balance remaining from the overall amount referred
to in Article 190, including the interest referred to in Article 192 after
the expiry of the last year of administration of the system under the Financial
Protocol annexed to this Convention:
(a) the amounts resulting from the application of the percentages referred
to in Article 197 (3) and (4) shall be repaid to each ACP State in proportion
to the deduction or deductions made in application of those provisions;
(b) if any balance remains after application of (a), the Council of
Ministers shall decide on its use.
Article 196
1. The system shall apply to the earnings from an ACP State's exports
of the products referred to in Article 187 (2) if, during the year preceding
the year of application, earnings from the export of each product to all
destinations, re-exports excluded, represented at least 5 % of its total
earnings from exports of all goods. The percentage shall be 4 % in the
case of sisal.
2. For the least-developed, landlocked and island ACP States, the percentage
referred to in paragraph 1 shall be 1 %.
3. Where, following a natural disaster, a substantial fall in production
of the product in question is recorded during the year preceding the year
of application, the percentage referred to in paragraph 1 shall be calculated
on the basis of the average export earnings from that product during the
three years preceding the year of the disaster.
A substantial fall in production shall be taken to mean at least 50
% of the average production during the three years preceding the year of
the disaster.
Article 197
1. In order to implement the system, a reference level and a transfer
basis shall be calculated for each ACP State and for exports of each product
referred to in Article 187 (1) to the Community or other destinations as
defined in Article 189.
2. The reference level shall be constituted by the average of export
earnings during the period of the six calendar years preceding each year
of application less the two years with the highest and lowest figures.
3. The transfer basis shall be constituted by the difference between
the reference level and actual earnings in the calendar year of application,
reduced by an amount corresponding to 4,5 % of the reference level. In
the case of the least-developed ACP States, this percentage shall be 1
%.
4. The reductions referred to in paragraph 3 shall not apply in the
case of the least-developed or landlocked ACP States if the difference
between the reference level and actual earnings is less than ECU 2 million,
or in the case of island ACP States if this difference is less than ECU
1 million.
In no case shall the reduction of the difference between the reference
level and actual earnings be greater than:
- 20 % for the least-developed and for landlocked ACP States,
-30 % for other ACP States.
5. The amount of the transfer shall be the transfer basis after application,
where relevant, of Articles 202 to 204 and 194.
Article 198
1. Where an ACP State:
- begins processing a product traditionally exported in the raw state,
or
-begins exporting a product which it did not traditionally produce,
the system may be put into operation on the basis of a reference level
calculated over the three years preceding the year of application.
2. In the case of the ACP States accorded the derogation:
- referred to in Article 189 (2), the transfer basis shall be calculated
by adding to the earnings from exports of the product or products concerned
to the Community the earnings from exports of those products to other ACP
States;
-referred to in Article 189 (3), the transfer basis shall be calculated
according to the earnings from exports of the product or products concerned
to all destinations.
Article 199
1. In order to ensure that the system functions efficiently and rapidly,
statistical cooperation shall be instituted between each ACP State and
the Commission.
2. The ACP States shall notify the Commission of the annual statistical
data specified in the joint declaration in Annex XLIII.
3. This information must be sent to the Commission not later than 31
March in the year following that of application. Failure to do so shall
result in the ACP State concerned losing all transfer rights in relation
to the product or products in question for the relevant year of application.
Article 200
1. The system shall be implemented in respect of the products listed
in Article 187 where they are:
(a) released for home use in the Community, or
(b) brought into the Community under the inward processing arrangements
in order to be processed.
2. The statistics to be used to carry out the calculations referred
to in Article 197 shall be those calculated and published by the Statistical
Office of the European Communities.
3. In the case of ACP States accorded the derogation
(a) referred to in Article 189 (2), the statistics relating to exports
of the product or products in question to other ACP States shall be the
volume exported by the ACP State concerned multiplied by the average unit
value of imports by the Community as calculated and published by the Statistical
Office of the European Communities or, failing those, the statistics of
the ACP State concerned;
(b) referred to in Article 189 (3), the statistics relating to exports
of the product or products in question to all destinations shall be the
volume exported by the ACP State concerned multiplied by the average unit
value of imports by the Community as calculated and published by the Statistical
Office of the European Communities or, failing those, the statistics of
the ACP State concerned.
4. Should there be significant differences between the statistics of
the Statistical Office of the European Communities and those of the ACP
State concerned, consultation shall be held between that ACP State and
the Commission.
Article 201
No transfer shall take place if it emerges from the examination of
the dossier to be undertaken by the Commission in conjunction with the
ACP State concerned that the fall in earnings from exports to the Community
is the result of measures or policies involving discrimination detrimental
to the Community.
Article 202
The transfer basis shall be reduced in due proportion to the fall in
earnings from exports to the Community of the product in question if, after
joint examination by the Commission and the ACP State concerned, it appears
that such a drop is the consequence of trade-policy measures taken by the
ACP State or through its economic operators with the aim of restricting
supply; such reduction may entail the annulment of the transfer basis.
Article 203
Should examination of the trend of the ACP State's exports, to all
destinations, of production of the product in question in the ACP State
concerned and of demand in the Community reveal significant changes, consultations
shall take place between the Commission and that ACP State to determine
whether the transfer basis is to be maintained or reduced, and, if so,
to what extent. Article 204
In no case shall any transfer basis for a given product be greater
than the corresponding amount calculated on the basis of the exports of
the ACP State concerned to all destinations.
Article 205
1. The Commission shall adopt a transfer decision on completion of
the examination carried out in conjunction with the ACP State; this examination
shall bear on the statistical data and the calculation of the transfer
basis which may give rise to a payment.
2. For each transfer a transfer agreement shall be concluded between
the Commission and the ACP State concerned.
Article 206
1. The ACP State concerned and the Commission shall take such steps
as are required to ensure that advances and transfers are made rapidly
in accordance with the procedures laid down in Article 207.
2. Article 205 shall be applicable by analogy to advances.
Article 207
1. Provided that the ACP State concerned has sent all the necessary
statistical information by 31 March in the year following that of application,
in accordance with Article 199 (3), the Commission shall notify each ACP
State not later than 30 April following of its situation in respect of
each of the products listed in Article 187 (2) exported by that State during
that year.
2. The ACP State concerned and the Commission shall take all possible
steps to ensure that the procedures referred to in Articles 201 to 203
are concluded not later than 30 June of the year in question. After this
period has elapsed, the Commission shall notify the ACP States of the amount
of the transfer resulting from appraisal of the dossier.
3. Without prejudice to Article 206 and not later than 31 July of the
year in question the Commission shall take decisions concerning all transfers,
except for those where consultations have not been concluded.
4. On 30 September of the year in question the Commission shall report
to the Committee of Ambassadors on the progress made with the processing
of all transfers.
Article 208
1. In the event of a disagreement between an ACP State and the Commission
over the results of the examinations or consultations referred to in Articles
201 to 203 and 199 (3), the ACP State concerned shall have the right to
initiate, without prejudice to possible recourse to Article 352, a good
offices procedure.
2. The good offices procedure shall be carried out by an expert appointed
by agreement between the Commission and the ACP State concerned.
3. Within two months of this appointment, the conclusions of the procedure
shall be communicated to the ACP State concerned and to the Commission,
which shall take account of them in making the transfer decision.
The ACP State concerned and the Commission shall take all possible
steps to ensure that the decision is taken not later than 31 October following
receipt of the request.
4. The procedure shall not result in a delay in the processing of any
other transfers for the same year of application.
Article 209
1. Where application of Articles 196 and 197 gives rise to a transfer
basis, the ACP State concerned shall, in the month following receipt of
the notification referred to in Article 207 (1), send the Commission a
substantial analysis of the sector recording the loss of earnings, the
causes of the loss, the policies pursued by the authorities and the projects,
programmes and operations to which the recipient State undertakes to allocate
the resources in accordance with the objectives set out in Article 186
(2).
2. Should the recipient ACP State intend, as provided for in Article
186 (2), to allocate the funds to a sector other than that where the loss
has occurred, it shall communicate to the Commission the reasons for this
allocation.
3. Projects, programmes or operations to which the recipient ACP State
undertakes to allocate the transferred resources shall be examined jointly
by the Commission and the ACP State concerned.
4. Where, in the sector for which the transfer is destined, there is
already an adjustment operation designed to restructure production and
export activities or to achieve diversification, the resources shall be
used to second these efforts and, where necessary, support any consistent
reform policy in the sectors concerned.
Article 210
When agreement is reached on the use of resources, the ACP State and
the Commission shall sign a protocol setting up a framework of mutual obligations
stipulating how the funds are to be used at the various stages of the operations
agreed on.
Article 211
1. The transfer shall be made in ecus upon signature of the transfer
agreement referred to in Article 205 (2) into an interest-bearing account,
for which presentation of two signatures, of the ACP State and the Commission,
shall be required. Any interest shall be credited to this account.
2. The funds in the account referred to in paragraph 1 shall be mobilized
as the operations specified in the protocol on the use of the funds are
implemented, on condition that the provisions of Article 212 have been
complied with.
3. The procedures laid down in paragraph 2 shall be applicable by analogy
to any counterpart funds generated.
Article 212
1. Within twelve months of the mobilization of resources the recipient
ACP State shall send the Commission a report on the use which it has made
of the funds transferred.
2. Should the report referred to in paragraph 1 not be presented within
the time limit set or should it call for comment, the Commission shall
send a request for substantiation to the ACP State concerned, which shall
be obliged to reply thereto within two months.
3. Once the deadline referred to in paragraph 2 has expired, the Commission
may, having referred the matter to the Council of Ministers and having
duly informed the ACP State concerned, three months after completion of
this procedure, suspend application of decisions on subsequent transfers
until that State has provided the required information.
The ACP State concerned shall be notified of this measure immediately.
Chapter 2
Special undertakings on sugar
Article 213
1. In accordance with Article 25 of the ACP-EEC Convention of Lomé
signed on 28 February 1975 and with Protocol 3 annexed thereto, the Community
has undertaken for an indefinite period, notwithstanding the other provisions
of this Convention, to purchase and import, at guaranteed prices, specific
quantities of cane sugar, raw or white, which originates in the ACP States
producing and exporting cane sugar and which those States have undertaken
to deliver to it
2. The conditions for the implementation of the aforementioned Article
25 have been laid down by Protocol 3 referred to in paragraph 1. The text
of the Protocol is annexed to this Convention as Protocol 8.
3. Article 177 of this Convention shall not apply within the framework
of the said Protocol.
4. For the purpose of Article 8 of the said Protocol the institutions
established under this Convention may be used during the period of application
of this Convention.
5. Article 8 (2) of the said Protocol shall apply should this Convention
cease to be operative.
6. The declarations contained in Annexes XIII, XXI and XXII to the
Final Act to the ACP-EEC Convention of Lomé signed on 28 February
1975 are reaffirmed and their provisions shall continue to apply. These
declarations are annexed as such to this Convention.
7. This Article and the Protocol 3 referred to in paragraph 1 shall
not apply to relations between the ACP States and the French overseas departments.
Chapter 3
Mining products: Special financing facility (Sysmin)
Article 214
1. A special financing facility shall be set up for those ACP States
whose mining sectors occupy an important place in their economies and are
facing difficulties that are already perceived or foreseeable in the near
future.
2. Its aims are to contribute towards establishing a more solid and
wider basis for the development of the ACP States while supporting their
efforts:
- to safeguard their mining production and export sectors by remedial
or preventive action designed to alleviate the serious consequences for
their economies of the loss of viability as a result of a decline in their
production or export capacity and/or export earnings in the mining products
sector following major technological or economic changes or temporary or
unforeseeable disruptions beyond the control of the State concerned and
of the enterprise managing the sector concerned. Particular attention shall
be paid to adjusting the competitive situation of enterprises to changes
in market conditions, or
-for States heavily dependent on exports of one mining product, to
diversify and broaden the bases of their economic growth, notably by helping
them complete development projects and programmes under way where these
are seriously jeopardized owing to substantial falls in export earnings
from that product.
3. In pursuing these objectives, this support:
- will be adapted to the economic restructuring needs of the ACP State
concerned,
-will take into account at the time of its formulation and implementation
the mutual interests of the Contracting Parties.
Article 215
1. The special financing facility provided for in Article 214 shall
be aimed at ACP States which export to the Community and which, during
at least two of the four years preceding that of the request for aid, have
derived either:
(a) 15 % or more of their export earnings from one of the following
products: copper (including cobalt), phosphates, manganese, bauxite and
alumina, tin, iron ore, whether or not in agglomerate form, uranium; or
(b)20 % or more of their export earnings from all mining products (excluding
precious minerals other than gold, oil and gas).
However, for least-developed, landlocked or island ACP States, the
figure stipulated in (a) shall be 10 % and the figure stipulated in (b)
shall be 12 %.
For the calculation of the thresholds referred to in (a) and (b) earnings
shall not include those from mining products not covered by the system.
2. Recourse to the special financing facility shall be possible where,
in the light of the aims referred to above:
(a) it is perceived or expected that the viability of one or more enterprises
in the mining sector has been or is about to be seriously affected following
temporary or unforeseeable difficulties - wehter technical, economic or
political - beyond the control of the State or undertaking concerned, and
where such damage to viability leads to or may lead to a significant fall
in revenue for the ACP State concerned - assessed in particular on the
basis of a drop in production or export capacities of the product in question
of around 10 % - and/or a deterioration in its external trade balance.
Foreseeable damage to viability shall be characterized by the onset
of deterioration of the means of production and its impact on the country's
economy; or
(b) in cases under paragraph 1 (1), it is perceived that a substantial
fall in export earnings from the mining product concerned, in relation
to the average for the two years before the request, is seriously jeopardizing
the completion of development projects and programmes under way. To be
taken into consideration, such a fall in earnings must:
- be caused by technical, economic or political difficulties and not
artificially provoked, directly or indirectly, by policies and measures
of the ACP State or the economic operators concerned,
-result in a corresponding fall in total export earnings of approximately
10 % at least in the year before that of the request.
The said difficulties shall refer to disruptions such as accidents,
serious technical incidents, serious internal or external political events,
major technological and economic changes or major changes in trade relations
with the Communtiy.
3. An ACP State may request financial aid under the special financing
facility where the conditions set out in paragraphs 1 and 2 are met.
Article 216
1. The aid referred to in Article 215 shall be used in pursuit of the
aims of the facility as set out in Article 214 (2).
- Where maintenance or return to viability of the mining enterprise
or enterprises affected is deemed possible and appropriate by the two parties,
the aid shall be used to finance projects or programmes, including the
financial restructuring of the enterprise or enterprises concerned, with
a view to maintaining, re-establishing or rationalizing at a viable level
the production and export capacity concerned.
-Where it is not thought possible by the two parties to maintain or
restore viability, the aid shall be used to broaden the bases of economic
growth through the financing of viable horizontal or vertical conversion
or diversification projects or programmes.
-By common agreement, the aim of diversification may also be pursued
where the economy is dependent on the mining product in question to a significant
degree, even where viability can be re-established.
-Where Article 215 (2) (b) is applicable, the objective of diversification
shall be pursued through financial assistance to aid the completion of
development projects and programmes under way outside the mining sector
which are in jeopardy.
2. Any decision to allocate funds to projects or programmes shall take
due account of economic interests and the social implications of such aid
in the ACP State concerned and in the Community and will be adapted to
the economic restructuring needs of that ACP State.
In the case of requests presented under Article 215 (1) (b), the Community
and the ACP State concerned shall jointly and systematically seek to establish
the scope and the terms of any aid accorded in such a way that such aid
does not injure competing Community mining production.
The consideration and appraisal of these factors shall be part of the
analysis referred to in Article 217 (2).
3. Special attention shall be accorded to:
- processing and transport operations, notably at regional level, and
the proper integration of the mining sector in the country's overall economic
and social development,
-preventive operations to minimize any disruptive effects by adapting
technology, improving the technical and managerial skills of local staff
and adapting the skills of local staff to enterprise management techniques,
-stepping up the ACP States' scientific and technical capacity for
the production of new materials.
Article 217
1. The request for aid must include information on the nature of the
problems encountered, the perceived or expected consequences of the disruption
both at national level and at the level of the mining enterprise or enterprises
affected and indications in the form of an identification sheet on the
measures or actions undertaken or desired to remedy them.
The request shall be made as soon as these consequences are identified
and within a period not exceeding 12 months for making up the file.
2. Prior to any Community decision a technical, economic and financial
analysis shall be made systematically of the mining sector concerned in
order to assess both the eligibility of the request and the project or
programme to be undertaken to utilize the aid. That analysis, which shall
be very detailed, shall, in order to identify the operation, take particular
account of world market prospects and, without prejudice to the first paragraph
of Article 216 (2), the situation of the Community market in the products
concerned. It shall also include an analysis of the possible implications
of such an operation for the competing mining products of Member States
and the possible implications of its non-implementation for the ACP State
concerned. Its objective shall be to ascertain:
- whether the viability of the means of production concerned has been
or is likely to be damaged and whether that viability can be restored,
or whether recourse to diversification measures is more appropriate, or
-whether the fall in export earnings referred to in Article 215 (2)
(b) seriously joepardizes the implementation of development projects and
programmes under way.
The analysis shall be carried out in accordance with the procedures
for financial and technical cooperation. It shall require the close cooperation
of the ACP State and economic operators concerned.
3. A single decision shall be taken on eligibility and the financing
proposal.
The Community and the ACP State concerned shall take the necessary
steps to expedite appraisal of requests so that the appropriate action
may be taken swiftly.
Article 218
1. If necessary, technical assistance for setting up and supervising
the project may be financed under the facility.
2. The procedures applicable to such assistance and the detailed rules
for its implementation shall be those laid down in this Convention for
development finance cooperation.
Article 219
1. For the purposes specified in Article 214 and for the period of
application of the Financial Protocol annexed to this Convention, the Community
shall allocate the overall amount provided for in that Protocol to cover
all its commitments under this special financing facility. The amount allocated
to the facility shall be managed by the Commission.
2. (a) This overall amount shall be divided into a number of equal
annual instalments corresponding to the number of years of application.
Each year, except the last, the Council of Ministers, on the basis of a
report submitted to it by the Commission, may authorize the advance use
of up to 50 % of the following year's instalment where required.
(b)Any balances remaining at the end of each year of application of
the Financial Protocol annexed to this Convention, except the last, shall
be carried over automatically to the following year.
(c)Consequently, the resources available for each year of application
will be made up of the following elements:
- the annual instalment, less any amounts used under (a);
-the sums carried over under (b);
(d) If the resources available for any year of application are insufficient,
the amounts provided for shall be reduced accordingly, without prejudice
to subparagraphs (a), (b) and (c).
Before expiry of the period of application of the Financial Protocol,
the Council of Ministers shall decide on the allocation of any balances
remaining from the overall amount.
3. The amount of the aid provided for in Article 215 shall be determined
by the Commission in the light of the funds available under the special
financing facility, the nature of the relevant projects and programmes,
the possibilities for cofinancing and the relative importance of the mining
industry concerned for the economy of the ACP State.
4. Under no circumstances may a single ACP State be eligible for more
than 35 % of the resources available as a result of the application of
paragraph 2 (c). The rate shall be 15 % for aid under Article 215 (1) (b).
5. Aid accorded to an ACP State under the special financing facility
may be on-lent by that State to the final borrower on different financial
terms which shall be established in the financing decision and shall result
from an analysis of the aid project conducted on the basis of the usual
economic and financial criteria for the type of project planned.
6. The analysis referred to in Article 217 shall be financed from resources
of the facility.
7. In exceptional circumstances arising out of an emergency, confirmation
and proof of which will have to be provided initially by the analysis,
an ACP State which so requests my be granted an advance by way of partial
prefinancing of the project or programme which it precedes.
TITLE III
DEVELOPMENT FINANCE COOPERATION
Chapter 1
General provisions
Section 1
Objectives
Article 220
The objectives of development finance cooperation shall be, through
the provision of adequate financial resources and appropriate technical
assistance, to:
(a) support and promote the efforts of ACP States to achieve long-term,
self-determined, self-reliant and self-sustained integrated social, cultural
and economic development, on the basis of mutual interest and in a spirit
of interdependence;
(b) help raise the standard of living and improve the well-being of
the peoples of the ACP States;
(c) promote measures likely to mobilize the capacity for initiative
of communities and the participation of those concerned in the design and
implementation of development projects;
(d) contribute to the fullest participation of the population in the
benefits of development;
(e) contribute to the development of the capacity of the ACP States
to innovate, adapt and transform technology;
(f) contribute to optimal and judicious exploration, conservation,
processing, transformation and exploitation of the ACP States' natural
resources in order to enhance the efforts of ACP States to industrialize
and to achieve economic diversification;
(g) provide support for and promote the optimal development of human
resources in the ACP States;
(h) facilitate an increase in the financial flows to the ACP States
which are responsive to the evolving needs of the ACP States and support
the efforts of the ACP States to harmonize international cooperation for
their development through cofinancing of operations with other financing
agencies or third parties;
(i) contribute to the attenuation of the debt burden, which is a major
constraint on the development prospects of ACP States, by ensuring greater
non-debt-creating transfers, and by developing and implementing in a coordinated
and integrated way the different instruments of this Convention;
(j) promote and mobilize resources in support of sustainable, effective
and growth-oriented adjustment programmes;
(k) seek new approaches to direct private investment promotion in ACP
States; support the development of a healthy, prosperous and dynamic ACP
private sector and encourage domestic and foreign private investment flows
into the productive sectors in the ACP States;
(l) encourage intra-ACP cooperation and regional cooperation among
ACP-States;
(m) permit the establishment of more balanced economic and social relations
and better understanding between the ACP States, Member States of the Community
and the rest of the world, with a view to achieving a new international
economic order;
(n) enable the ACP States faced with serious economic and social difficulties
of an exceptional nature resulting from natural disasters or extraordinary
circumstances having comparable effects to benefit from emergency assistance;
(o) help the least-developed, landlocked and island ACP States to overcome
the specific obstacles which hamper their development efforts.
Section 2
Principles
Article 221
Development finance cooperation shall:
(a) be implemented on the basis of and be consistent with the development
objectives, strategies and priorities established by the ACP States, at
both national and regional levels with due regard to their respective geographical,
social and cultural characteristics, as well as their specific potential;
(b) be provided on very highly concessional terms;
(c) ensure that resource flows are on a more predictable and continuous
basis;
(d) ensure participation by the ACP States in the management and utilization
of financial resources and ensure effective decentralization of decisionmaking
powers;
(e) strengthen and utilize, as much as possible, the ACP States' human
resources and existing administrative structures;
(f) 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;
(g) be carried out with a minimum of administrative formalities using
simple and rational procedures so that projects and programmes may be implemented
rapidly and efficiently;
(h) ensure that technical assistance is provided only upon the request
of the ACP State or States and is of the stipulated quality, relevant,
cost-effective and includes arrangements for rapid and effective training
of ACP replacement personnel.
Section 3
Guidelines
Article 222
1. Operations financed within the framework of this Convention shall
be implemented by the ACP States and the Community in close cooperation,
the concept of equality between the partners being recognized.
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;
(f) maintaining projects and programmes.
3. 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;
(f) ensuring the proper, prompt and efficient execution of projects
and programmes.
4. The Community shall be responsible for taking financing decisions
on projects and programmes.
Article 223
Unless otherwise provided in the Convention, all decisions requiring
the approval of either Contracting Party shall be approved, or be deemed
approved, within 60 days of notification by the other party.
Section 4
Scope of financing
Article 224
Within the framework of the Convention, development finance cooperation
shall cover:
(a) capital projects and programmes;
(b) rehabilitation of projects and programmes;
(c) sectoral and general import support programmes, in accordance with
Article 225, which may take the form of:
(i) sectoral import programmes (SIPs) through direct procurement;
(ii) sectoral import programmes (SIPs) in the form of foreign exchange
released in instalments for financing sectoral imports; and/or
(iii) general import programmes (GIPs) in the form of foreign exchange
released in instalments for financing general imports covering a wide range
of products;
(d) budgetary support to alleviate domestic financial constraints through
the use of counterpart funds generated by the various Community instruments;
(e) support for measures which contribute to attenuate the debt burden
and balance of payments problems;
(f) technical cooperation programmes;
(g) deployment of flexible resources in support of the efforts of grassroots
communities;
(h) recurrent costs (including current administrative, operating, and
maintenance costs, both local and foreign) of new, ongoing and completed
projects and programmes;
(i) on a case-by-case basis, supplementary expenses borne by the ACP
States arising out of and strictly relating to the administration and the
supervision of projects and programmes financed by the European Development
Fund, hereinafter referred to as 'the Fund`;
(j) credit lines and support of regional payment mechanisms and export
credit operations in the ACP States;
(k) equity participation;
(l) a combination of all or part of the above components integrated
into sectoral development programmes.
Article 225
Sectoral import programmes shall be provided, upon request, from the
resources of the indicative programme to support the measures taken by
the ACP State concerned in the sector or sectors for which the assistance
is requested in accordance with Article 281. The purpose of import programmes
is to contribute to the optimal functioning of the productive sectors of
the economy, to assist in the expansion of production and export capacity,
to facilitate the transfer or development of technology and to help meet
basic human needs. Import programmes may include the financing of inputs
to the productive system such as capital and intermediate goods, raw materials,
spare parts, fertilizers, insecticides and supplies to improve health and
education services and standards. In addition, the resources provided under
structural adjustment support may be used for sectoral import programmes
as referred to in Article 224 (c) (i) and (ii), and for general import
programmes as referred to in Article 224 (c) (iii).
Article 226
Counterpart funds generated from various Community instruments shall,
except otherwise provided for, be used in a targeted way for the financing
of local expenditure under:
(a) fund projects and programmes within the indicative programme;
(b) other agreed projects and programmes;
(c) specific budget headings under public expenditure programmes of
the ACP States such as those relating to health, education, training, job
creation and protection of the environment;
(d) measures to attenuate the negative social consequences of structural
adjustment; such measures may include:
(i) assistance to indigenous organizations such as cooperatives and
other types of mutual-help ventures;
(ii) nutrition and health support for target groups and the modernization
of health facilities;
(iii) re-training;
(iv) the provision of pre-primary and primary education, particularly
in depressed areas;
(v) rehabilitating, maintaining and upgrading social and economic infrastructure;
(vi) the payment of redundancy benefits to public or semi-public workers
made redundant, or as a contribution towards keeping them in employment
for a specific period, or as a form of assistance for finding alternative
employment;
(vii) the provision or subsidization of basic tools;
(viii) small labour-intensive projects which can be used to create
employment for the unskilled, youths and women and at the same time be
used to provide training and help to rehabilitate or develop the infrastructure
in both rural and urban areas;
(ix) strengthening of the management capacity of the ACP State to administer
social programmes;
(x) appropriate measures to assist women, the aged, the handicapped
and other vulnerable groups, for whom the social consequences of adjustment
can be particularly severe.
Article 227
1. Recurrent cost financing (to cover current administrative, maintenance
and operating expenses) may be granted to an ACP State, in order to ensure
that full use is made of investments which are of special importance for
the economic and social development of the ACP State concerned and the
running of which temporarily constitutes a burden for the ACP State or
other eligible beneficiaries. Such support may, for new, ongoing or past
projects and programmes, cover current administrative, maintenance and
operating expenses such as:
(a) expenditure incurred in the start-up period, for setting up, launching
and operating the capital projects or programmes in question;
(b) the cost of operating, maintaining and/or managing capital projects
and programmes implemented earlier.
2. Special treatment shall be accorded to the financing of recurrent
cost in the least-developed ACP States.
Article 228
The funds provided under the Convention may be used to cover the total
costs of both the local and foreign expenditure of projects and programmes.
Section 5
Sectors of intervention
Article 229
1. Within the framework of the priorities established by the ACP State
or States concerned at both national and regional level, support may be
given to projects and programmes in every sector or area referred to in
this Convention and may, inter alia, be in:
(a) agricultural and rural development, and in particular food self-sufficiency
and food security programmes;
(b) industrialization, artisanal activities, energy, mining and tourism;
(c) economic and social infrastructure;
(d) structural improvement of the productive sectors of the economy;
(e) preservation and protection of the environment;
(f) prospecting for, exploration and exploitation of, natural resources;
(g) education and training programmes, basic and applied scientific
research and applied technology, technological adaptation or innovation
and the transfer of technology;
(h) industrial promotion and information;
(i) marketing and trade promotion;
(j) promotion, development and reinforcement of small and medium-sized
national and regional enterprises;
(k) support to national and regional development banks and financial
institutions, and to clearing and payment institutions which are designed
to promote regional and intra-ACP trade;
(l) micro-projects for grassroots development;
(m) transport and communications, including promotion of sea and air
transport;
(n) fisheries development;
(o) development and optimal utilization of human resources, special
account being taken of the role of women in development;
(p) improvement of social and cultural infrastructure and services
including health, housing, water supply etc;
(q) assisting ACP and ACP-EEC professional and business organizations
with the aim of improving production and marketing of products on external
markets;
(r) support for structural adjustment programmes, thus contributing
also to debt-attenuation measures;
(s) investment promotion and support measures;
(t) support for development operations put forward by economic, cultural,
social and educational organizations in the framework of decentralized
cooperation, in particular where they combine the efforts and resources
of ACP organizations and of their Community counterparts.
2. The projects and programmes may also concern operations on specific
themes, such as:
(a) drought and desertification control and protection of natural resources;
(b) assisting ACP States in the fields of disaster prevention and preparedness,
including prediction and early-warning systems, with a view to reducing
the consequences of disasters;
(c) control of endemic human diseases and epidemics;
(d) hygiene and primary health care;
(e) control of endemic livestock diseases;
(f) measures to save energy;
(g) long-term operations, in general, which extend beyond any specific
time scale.
Section 6
Eligibility for financing
Article 230
1. The following entities or bodies shall be eligible for financial
support provided under the Convention:
(a) ACP States;
(b) regional or inter-state bodies to which one or more ACP States
belong and which are authorized by those States;
(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 ACP States concerned,
the following shall also be eligible for financial support:
(a) national and/or regional public or semi-public agencies, departments
or local authorities of the ACP States and in particular their financial
institutions and development banks;
(b) companies and firms 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;
(d)ACP or Community financial intermediaries providing financing to
small and medium-sized enterprises, as well as financial institutions promoting
and financing private investments in ACP States;
(e) groups of producers who are nationals of the ACP States;
(f) award-holders and trainees;
(g)ACP as well as Community local communities, cooperatives, trade
unions, non-governmental organizations, and teaching and research institutions
to enable them to undertake economic, cultural, social and educational
projects and programmes in the ACP States in the framework of decentralized
cooperation.
Chapter 2
Financial cooperation
Section 1
Financial resources
Article 231
For the purposes set out in the present Title, the overall amount of
the Community's financial assistance is provided for in the Financial Protocol
to this Convention.
Article 232
1. Should an ACP State fail to ratify or denounce this Convention,
the Contracting Parties shall adjust the amounts of the resources provided
in the Financial Protocol.
2. Such adjustment shall also apply upon:
(a) the accession to the Convention of new ACP States which did not
take part in its negotiation;
(b) the enlargement of the Community.
Section 2
Terms and conditions of financing
Article 233
1. Projects or programmes may be financed by grant or by risk capital
from the Fund, or by loans from the Bank's own resources, or jointly by
two or more of these means of financing.
2. 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 geopraphical 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, to factors guaranteeing their servicing.
3. Financial assistance may be made available to or through the ACP
States concerned or, subject to their agreement, either through eligible
financial institutions or directly to any other eligible beneficiary.
4. Where financial assistance is granted to the final recipient through
an intermediary:
(a) the terms on which the assistance may be made available by the
intermediary to the final recipient 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 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.
Article 234
1. Risk capital may be provided in the form of loans or equity participation.
(a) In the case of loans, it may be provided mainly in the form of:
(i) subordinated loans, which shall be redeemed and in respect of which
interest, if any, shall be paid only after other claims have been settled;
(ii) 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 financed such as profit or target output.
The specific terms shall be laid down when the loan is made.
(b) In the case of equity participation, it may be provided to acquire
temporary minority holdings on behalf of the Community in the capital of
ACP enterprises or institutions financing development projects in the ACP
States or of ACP financial institutions promoting and financing private
investment in the ACP States. Such holdings shall be transferred to nationals
or institutions of the ACP States or as otherwise agreed with the ACP State
concerned, once the conditions specified for the purpose are met.
(c) The terms of risk capital operations shall depend on the characteristics
of each project or programme financed and shall in general be more favourable
than those of subsidized loans. In the case of loans the interest rate
shall, in any case, be less than 3 %.
2. In order to minimize the effects of exchange rate fluctuations,
the problem of exchange rate risk shall be dealt with in the following
way:
(a) in the case of risk capital operations designed to strengthen an
enterprise's own funds the exchange rate risk shall as a general rule be
borne by the Community;
(b) in the case of risk capital financing for investments of private
sector firms and small and medium-sized enterprises, hereinafter referred
to as 'SMEs`, the exchange rate risk shall be shared by the Community,
on the one part, and by the other parties involved, on the other. On average,
the foreign exchange risk shall be shared equally.
Article 235
Loans from the Bank's own resources shall be granted under the following
terms and conditions:
(a) the rate of interest before subsidy shall be the rate applied by
the Bank for the currencies, duration and repayment conditions adopted
for the loan on the day of signature of the contract;
(b) this rate shall be reduced by means of a 4 % subsidy. The rate
of subsidy shall be automatically adjusted so that the interest rate borne
by the borrower will be neither less than 3 % nor more than 6 % for a loan
contracted at the reference rate. The reference rate adopted for calculating
the adjustment in the rate of subsidy shall be the rate for the ecu applied
by the Bank for a loan with the same conditions as to duration and repayment
on the day of signature of the contract;
(c) 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 amount of grants and paid directly to the Bank;
(d) the duration of loans made by the Bank from its own resources shall
be governed by terms stipulated on the basis of the economic and financial
characteristics of the project, but may not exceed 25 years. These loans
shall normally comprise a grace period fixed by reference to the construction
period and the funds needed for the project.
Article 236
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 scale;
and to this end, finance in the first place, productive projects and programmes
in industry, agro-industry, tourism, mining, energy and in transport and
telecommunications linked to these sectors. These sectoral priorities shall
not exclude the possibility of the Bank's financing, from its own resources,
productive projects and programmes in other sectors including commercial
agriculture;
(b) establish close cooperation links with national and regional development
banks and with banking and financial institutions of the ACP States;
(c) in consultation with the ACP State concerned, adapt the arrangements
and procedures for implementing development finance cooperation, as set
out in this Convention, if necessary, to take account of the nature of
the projects and programmes and to act in accordance with the objectives
of this Convention, within the framework of the procedures laid down by
its statute.
Article 237
The ACP States concerned shall, in respect of loans granted or equity
participation under the Convention, and in respect of which they have given
their written approval:
(a) grant exemption from all national or local duties, fiscal charges
on interest, commissions and amortization 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 amortization of loans due
in terms of financing contracts granted for the implementation of projects
and programmes on their territories;
(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 ecu, or other currencies of transfer, and the
national currency at the date of the transfer, which represent the net
revenue and proceeds from transactions involving the acquisition by the
Community of holdings in the capital of companies or firms.
Article 238
Special treatment shall be accorded to the least-developed ACP States
when determining the volume of the financial resources which such States
may expect from the Community for the purpose of their indicative programmes.
In addition, account shall be taken of the particular difficulties of the
landlocked or island ACP States. These financial resources shall be combined
with more favourable terms of financing, having regard to the economic
situation and the nature of the needs specific to each State. They shall
consist essentially of grants, and, in appropriate cases, of risk capital
or loans from the Bank, having regard in particular to the criteria laid
down in Article 233 (2).
Section 3
Debt and structural adjustment support
Debt
Article 239
1. The ACP States and the Community share the view that the external
debt situation of ACP States has emerged as a major development issue,
and that the associated heavy debt-servicing obligations contribute to
constraints on import capacity and the level of investments in these States,
thus affecting their growth and development.
2. The ACP States and the Community reaffirm their determination to
develop and implement in a coordinated and integrated way the different
instruments of the Convention and to implement the following measures with
a view to contributing to the attenuation of the debt burden of the ACP
States and their balance of payment problems with a view to stimulating
economic recovery and growth.
Article 240
1. In order to avoid increases in the debt of ACP States, finance under
this Convention, apart from bank loans and risk capital, is provided in
the form of grants. Specifically the following measures and actions will
be taken:
(a) for projects with high rates of return, and in particular for Sysmin
financing, a two-stage procedure will be followed whereby ACP States will
receive grants and will on-lend the funds at appropriate market terms and
conditions, with suitable arrangements for deposit of interest and repayment,
less an agreed service charge, in a counterpart fund account, managed according
to normal procedures as agreed for this type of finance generated from
Community assistance;
(b) Stabex transfers will be granted without any obligation for the
beneficiary ACP States to reconstitute the resources of the system.
2. In addition, the Community agrees to:
(a) enable, on a case-by-case basis, the acceleration of the use of
the resources of past indicative programmes which have not been committed
through the quick-disbursing instruments provided for in this Convention
in order to contribute to the attenuation of the debt burden;
(b) grant, at the request of an ACP State:
(i) assistance in studying and finding practical solutions to indebtedness,
debt-servicing difficulties and balance of payments problems;
(ii) training in external debt management and international financial
negotiations as well as support for training workshops, courses and seminars
in these fields;
(iii) assistance to ACP States in developing flexible techniques and
instruments of debt management to deal with unanticipated interest rate
and exchange rate variations;
(c) encourage its institutions, including the Bank, to play a more
active role in catalysing new flows of finance to debt-affected ACP States.
Article 241
The Community commits itself to support the ACP States' efforts to:
(a) undertake reforms with a view to improving the performance of the
economy;
(b) strengthen their external debt management mechanisms at national
level so as to exercise more effective control over external borrowing
by the public sector, and monitor private sector borrowing;
(c) reverse the outflow of capital;
(d) intensify their efforts to reduce inflation and implement measures
designed to increase domestic savings;
(e) introduce concrete measures to improve the quality of investment
in both the public and private sectors;
(f) give adequate incentives to projects that generate or save foreign
exchange;
(g) as a long-term objective, develop subregional capital markets which
can serve as effective mechanisms for tapping ACP surplus funds invested
abroad;
(h) adopt measures aimed at increasing intra-ACP trade through the
use of existing subregional and regional payments mechanisms and encourage
clearing arrangements and credit insurance in all intra-ACP trade transactions.
Article 242
In order to contribute to the servicing of the debt resulting from
Community 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 Article 319 for such servicing, as and when debt repayment falls
due and up to the amount required for payments in national currency.
Structural adjustment support
Article 243
The ACP States and the Community recognize that the economic and social
problems being experienced by ACP States are the result of both internal
factors and external developments. They see the need for urgent action
and share the view that short and medium-term policies must reinforce the
long-term development efforts and goals of ACP States. To this end, they
have agreed that the Convention should provide structural adjustment support
to assist ACP States in their effort to:
(a) create an economic environment favourable to a resumption of, or
to an acceleration in, the growth of GDP and employment;
(b) improve the social and economic well-being of the population as
a whole;
(c) improve public sector management and provide appropriate private
sector incentives;
(d) increase the level of productivity in the key sectors of the economy;
(e) achieve greater economic diversification as part of the effort
to develop a larger measure of resilience in the economy and to reduce
domestic and external imbalances while maintaining GDP growth;
(f) improve balance-of-payments performance and the foreign-exchange
position;
(g) ensure that adjustment is economically viable and socially and
politically bearable.
Article 244
Adjustment support shall be administered on the basis of the following
principles:
(a) the ACP States shall bear primary responsibility for the analysis
of the problems to be solved and the preparation of reform programmes;
(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) assistance shall be supportive of the ACP State's priority development
objectives such as agricultural and rural development, food security, PMDT
and environmental protection, and contribute to the attenuation of the
debt burden;
(d) adjustment support shall take place within the framework of the
political and economic model of the ACP State concerned;
(e) the right of the ACP States to determine the direction of their
development strategies and priorities shall be recognized and respected;
(f) both the reform and the support programme shall make provision
from the outset to deal with the negative social effects that may result
from the process of adjustment efforts, in pursuit of the objectives of
economic growth and social justice, particular attention being paid to
the most vulnerable groups in the society including the poor, the unemployed,
women and children;
(g) the pace of the reform programmes shall be realistic and compatible
with each ACP State's capacities and resources, while the implementation
of support programmes shall be flexible and adapted to the management capacity
of the ACP State concerned;
(h) quick disbursement shall be an important feature of support programmes;
(i) 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 a macroeconomic or sectoral level.
Article 245
1. For purposes of structural adjustment support, Community financial
assistance shall be given in form of grants:
(a) as provided for in Article 1 of the Financial Protocol; and
(b) from the indicative programme, in accordance with Article 281 (2)
(e).
2. On the expiry of the Financial Protocol, appropriations set aside
for structural adjustment support and not committed shall be paid back,
save as otherwise decided by the Council of Ministers, to the assets of
the Fund for the purpose of financing other operations falling within the
scope of development finance cooperation, notably those relating to programmable
assistance.
Article 246
1. All ACP States shall in principle be eligible for structural adjustment
assistance depending on the scope of the reforms being undertaken or contemplated
at the macroeconomic or sectoral level, their effectiveness, and their
likely impact on the economic, social and political dimension of development,
and on economic and social hardships being experienced, as reflected, by
indicators such as:
(a) the level of indebtedness and the debt service burden;
(b) balance of payments difficulties;
(c) the budgetary situation;
(d) the monetary situation;
(e) the rate of growth of real national income;
(f) the level of unemployment;
(g) the situation in social areas such as nutrition, housing, health
and education.
2. 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.
3. In assessing the social and economic hardships referred to in paragraph
1, particular attention will be given to the least-developed ACP States.
Article 247
1. The resources earmarked for structural adjustment support may be
mobilized either at the beginning of or during the Financial Protocol period,
at the request of the ACP State concerned.
2. Such support for adjustment effort shall take the form of:
(a) sectoral or general import programmes in accordance with Articles
224 (c) and 225;
(b) technical assistance related to structural adjustment support programmes.
3. In addition, with a view to alleviating the ACP States' domestic
financial constraints, counterpart funds generated by various Community
instruments may be used in accordance with Article 226.
4. Structural adjustment support shall be implemented flexibly and
the instruments chosen on a case-by-case basis.
A GIP designed in keeping with the approach to structural adjustment
support laid down in the Convention will usually be the most appropriate
instrument for countries carrying out macroeconomic reforms. In the case
of sectoral adjustment, the assistance will be given in the form of an
SIP in kind or in foreign currency.
An SIP could also be used in a situation of macroeconomic reforms with
a view to achieving a greater sectoral impact.
Article 248
The implementation of each support programme shall:
(a) be adapted to the needs of each recipient State;
(b) ensure consistency between the use of the different support instruments
and the approach of structural adjustment as defined in Articles 243 and
244;
(c) 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 best price/quality ratio is obtained on imported goods. To
this end this Convention's tendering procedures must be applied flexibly
in order to:
- ensure the rapidity of disbursements,
-minimize the administrative burden on the State concerned,
-accord with the administrative and commercial practices of that State;
(d) be the subject of an agreement between the Commission and the ACP
body in charge of the implementation of the programme.
Article 249
In order to increase the flow of financial resources the Community,
with the agreement of the ACP State concerned, may enter into cofinancing
arrangements with other donors or agencies. The various provisions of this
Convention on cofinancing shall apply. To this end and in order to ensure
effective use of resources and to minimize delays, efforts shall be made,
subject to the agreement of the ACP State concerned and with its effective
participation, to:
(a) coordinate the approach of the various donors towards structural
adjustment support;
(b) coordinate operational implementation in a simple and cost-effective
manner.
Article 250
1. The ACP State's request for structural adjustment support shall
contain the broad outline of the underlying problems being addressed by
the ACP State and of the measures and actions being implemented or contemplated,
the areas in which support is required, the social repercussions being
experienced or envisaged and proposals to deal with them, as well as the
cost estimates of the support programme for which assistance is being sought
and the duration or likely period of completion.
2. The preparation, appraisal and financing decision for structural
adjustment programmes shall be carried out according to the provisions
on implementation procedures of Chapter 5 with due regard to the need to
ensure the quick disbursing feature of structural adjustment programmes.
On a case-by-case basis, retroactive financing of a limited part of imports
of ACP-EEC origin may be permissible.
3. In the case of foreign exchange programmes, funds will be transferred
to an ecu-denominated bank account opened by the ACP States concerned in
a Community Member State from which all disbursement covered by the programme
shall be made. Such funds will be considered as an advance to be cleared
by the submission of justification of the use of funds.
Section 4
Cofinancing
Article 251
1. The financial resources provided for in this Convention may be applied,
at the request of the ACP States, to cofinancing (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 cofinancing
in the following cases, among others:
(a) large-scale projects which cannot be financed exclusively by any
one source of financing alone;
(b) projects in which Community participation, and an input of its
project expertise, might facilitate the participation of other additional
sources of finance;
(c) projects which may benefit from a blend of concessionary and non-concessionary
financing;
(d) projects which may be broken down into sub-projects which could
be eligible for financing from different sources;
(e) projects for which a diversification of financing may lead to an
advantageous solution from the point of view of the financing and investment
costs and of other aspects of the implementation of the said projects;
(f) projects of a regional or inter-regional nature.
3. Cofinancing may be in the form of joint or parallel financing. Preference
will be given in each case to the solution which is more suitable from
the point of view of cost-effectiveness.
4. With the agreement of the parties concerned:
(a) measures shall be taken to coordinate and harmonize operations
of the Community and those of other cofinancing bodies, in order to minimize
the number of procedures to be undertaken by the ACP States and to render
those procedures more flexible, notably as regards:
(i) the needs of other cofinancing bodies and recipients;
(ii) the choice of projects to be cofinanced and the arrangements for
carrying them out;
(iii) the harmonization of works, supply and services contracts rules
and procedures;
(iv) the payment terms;
(v) the rules of eligibility and competition;
(vi) the margin of preference granted to ACP enterprises;
(b) the process of consultation and coordination with other donors
and cofinanciers should be strengthened and developed, where possible,
through the establishment of cofinancing framework agreements, and cofinancing
policies and procedures should be reviewed to ensure effectiveness and
the best terms possible;
(c) the Community may provide the other cofinancing bodies with administrative
help or may act as a lead or coordinating agency for projects part-financed
by it in order to facilitate the implementation of cofinanced projects
or programmes.
Section 5
Micro-projects
Article 252
1. In order to respond to the needs of local communities with regard
to development, the Fund shall, at the request of the ACP State concerned,
participate in the financing of micro-projects at local level which:
(a) have an economic and social impact on the life of the people,
(b) meet a demonstrated and observed priority need, and
(c) will be undertaken at the initiative and with the active participation
of the local community which will benefit therefrom.
2. Contributions for micro-projects shall be made:
(a) by the local community concerned, in kind or in the form of services
or cash and adapted to its capacity to contribute;
(b) 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
ECU 300 000;
(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 amounts representing the Fund's contribution shall be drawn
from the grant allocation of the national indicative programme.
4. Special priority shall be accorded to the preparation and implementation
of micro-projects in the least-developed ACP States.
Article 253
With the agreement of the ACP States concerned, at the request of the
ACP local communities concerned and in accordance with the provisions on
multiannual micro-project programmes in Article 290, ACP and Community
non-profit organizations may, in addition to the possibilities of cofinancing,
coordinate, supervise or implement individual micro-projects and/or multiannual
micro-project programmes.
Section 6
Emergency assistance
Article 254
1. Emergency assistance shall be accorded to ACP States faced with
serious economic and social difficulties of an exceptional nature resulting
from natural disasters or extraordinary circumstances having comparable
effects. The assistance, which is intended to make, by the most suitable
means, a real contribution to remedying the immediate difficulties:
(a) shall be sufficiently flexible to take any form adapted to the
circumstances, including the supply of a wide range of relief goods and
services and/or the distribution of cash to victims;
(b) may also cover the financing of immediate measures to make damaged
structures and equipment operational again and to ensure minimum viability;
(c) shall be non-reimbursable and made available quickly and easily.
2. The Community shall take adequate steps to facilitate speedy action
which is required to meet the immediate needs for which emergency assistance
is intended. To this end:
(a) funds provided under emergency assistance must be fully committed
and disbursed and action completed within 180 days of the establishment
of the implementation arrangements unless otherwise stipulated by common
agreement;
(b) where the funds made available have not all been fully disbursed
within the time limit set, or such other agreed time limit as referred
to in subparagraph (a), then the balance shall be paid back into the special
appropriation referred to in the Financial Protocol;
(c) the detailed rules for the allocation and implementation of emergency
assistance shall be the subject of emergency and flexible procedures;
(d) funds may be used for the retroactive financing of immediate relief
measures undertaken by the ACP States themselves.
Article 255
1. Assistance may be granted to ACP States taking in refugees or returnees
to meet acute needs not covered by emergency assistance, to implement in
the longer term projects and action programmes aimed at self-sufficiency
and the integration or reintegration of such people.
2. Similar assistance, as set out in paragraph 1, may be envisaged
to help with the voluntary integration or reintegration of persons who
have had to leave their homes as a result of conflicts or natural disasters.
In implementing this provision account shall be taken of all the factors
leading to the displacement in question including the wishes of the population
concerned and the responsibilities of the government in meeting the needs
of its own people.
3. Underlining the developmental nature of the assistance granted in
accordance with this Article, assistance may be used together with the
indicative programme of the State concerned.
4. Such assistance shall be administered and implemented under procedures
permitting flexibility and rapid action. Special attention shall be paid
to the most effective manner of providing such assistance to the population
concerned. Conditions for payment and implementation shall be laid down
case by case. The assistance may be implemented, if the ACP State so agrees,
in conjunction with specialized organizations, including those of the United
Nations, or by the Commission direct.
Article 256
Contracts under emergency assistance shall be awarded on the basis
of the relevant rules provided for in Section 5 of Chapter 5.
Article 257
Post-emergency action, aimed at physical and social rehabilitation
consequent on the results of natural disasters or extraordinary circumstances
having comparable effects, may be undertaken with Community assistance
under this Convention. The post-emergency needs may be covered by other
resources, in particular the counterpart funds generated by Community instruments,
the special appropriation for refugees, returnees, and displaced persons,
the national or regional indicative programmes or a combination of these
different elements.
These needs may also be covered, subject to the provisions of Article
2 of the Financial Protocol, by the unexpended balance of the special appropriation
for emergency assistance remaining upon expiry of that Protocol.
Chapter 3
Investment
Section 1
Investment promotion
Article 258
The ACP States and the Community, recognizing 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-EEC development cooperation and with the appropriate laws and regulations
of their respective States;
(b) accord fair and equitable treatment to such investors;
(c) 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;
(d) promote effective cooperation amongst ACP and between ACP and Community
economic operators in order to increase the flow of capital, management
skills, technology and other forms of know-how;
(e) facilitate a greater and more stable flow of resources from the
Community private sector to the ACP States by contributing to the removal
of obstacles which impede the ACP States' access to international capital
markets, and in particular within the Community;
(f) create an environment which encourages the development of financial
institutions and the mobilization of resources which are essential to capital
formation and the growth of entrepreneurship;
(g) promote the development of enterprises by taking such steps as
are necessary to improve the business environment and, in particular, foster
a legal, administrative and incentive framework which is conducive to the
emergence and development of dynamic private sector enterprises including
grass roots operations;
(h) strengthen the capacity of national institutions in ACP States
to provide the range of services which can encourage greater national participation
in business activity.
Article 259
In order to encourage private investment flows and the development
of enterprises, the ACP States and the Community, in cooperation with other
interested bodies, shall within the framework of the Convention:
(a) support efforts aimed at promoting European private investment
in the ACP States by organizing discussions between any interested ACP
State and potential investors on the legal and financial framework that
ACP States might offer to investors;
(b) encourage the flow of information on investment opportunities by
organizing investment promotion meetings, providing periodic information
on existing financial or other specialized institutions, their facilities
and conditions and encouraging the establishment of focal points for such
meetings;
(c) encourage the dissemination of information on the nature and availability
of investment guarantees and insurance mechanisms to facilitate investment
in ACP States;
(d) provide assistance to small and medium-sized enterprises in ACP
States in designing and obtaining equity and loan-financing on optimal
terms and conditions;
(e) explore ways and means of overcoming or reducing the host-country
risk for individual investment projects which could contribute to economic
progress;
(f) provide assistance to ACP States in:
(i) creating or strengthening the ACP States' capacity to improve the
quality of feasibility studies and the preparation of projects in order
that appropriate economic and financial conclusions might be drawn;
(ii) producing integrated project management mechanisms covering the
entire project development cycle within the framework of the development
programme of the State.
Section 2
Investment protection
Article 260
The Contracting Parties affirm the need to promote and protect either
party's investments on their respective territories, and in this context
affirm the importance of concluding between States, in their mutual interest,
investment promotion and protection agreements which could also provide
the basis for insurance and guarantee schemes.
Article 261
1. A Contracting State may request the negotiation of an investment
promotion and protection agreement with another Contracting State.
2. The States party to such agreements shall practise no discrimination
between Contracting States party to this Convention 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.
By 'non-discrimination`, the Parties understand that, in negotiating
such agreements, either side may be entitled to provisions in agreements
negotiated between the ACP States or Member States concerned and another
State, provided that in every case reciprocity is accorded.
3. The Contracting States shall have the right to request a modification
or adaptation of the non-discriminatory treatment referred to in paragraph
2 when international obligations or changed de facto circumstances so necessitate.
4. The application of the principles referred to in paragraphs 2 and
3 does not purport to and cannot in practice, infringe the sovereignty
of any Contracting State party to the Convention.
5. 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 paragraphs 1 to 4. The Contracting Parties confirm that retroactivity
shall not apply as a general principle unless Contracting States stipulate
otherwise.
Article 262
In order further 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.
Section 3
Investment financing
Article 263
1. With a view to assisting the implementation of directly productive
investment, both public and private, contributing to the economic and industrial
development of the ACP States, the Community shall provide financial assistance,
subject to the provisions laid down in Chapter 2 of this Title, in the
form of risk capital and/or loans from the Bank's own resources. This financial
assistance may be used inter alia for:
(a) increasing, directly or indirectly, the own resources of ACP public,
semi-public or private enterprises and providing financing in the form
of loans for investment in such enterprises;
(b) supporting productive investment projects and programmes identified
and promoted by the joint bodies set up by the Community and the ACP States
in accordance with the Convention;
(c) financing schemes in favour of small and medium-sized enterprises.
2. In order to achieve the objectives set out in paragraph 1, a significant
part of risk capital shall be devoted to supporting private sector investment.
Article 264
In addition to the resources provided for above, the ACP State or States
may use the resources of the national or regional programme, inter alia,
for:
(a) financing schemes in favour of small and medium-sized enterprises;
(b) encouraging the setting up or the strengthening of national or
regional financial institutions in order to enable them effectively to
support private secor needs;
(c) appropriate and effective support for export promotion;
(d) providing general or specific technical cooperation to cater for
private sector needs.
Article 265
The financing of directly productive projects may concern new investments
as well as the rehabilitation or utilization of existing capacity.
Article 266
Where the financing is undertaken through an on-lending body, it shall
be the responsibility of that body to select and appraise individual projects
and to administer the funds placed at its disposal in the conditions provided
for in this Convention and by mutual agreement between the parties.
Section 4
Investment support
Article 267
In order effectively to achieve the various objectives of the Convention
in relation to promoting private investment and to realize its multiplying
effect, the Bank and/or the Commission shall participate by way of:
(a) financial assistance, including equity participations;
(b) technical assistance;
(c) advisory services;
(d) information and coordination services.
Article 268
1. The Bank shall utilize risk capital resources to supplement the
activities aimed at promoting and providing support for the private sectors
in the ACP States. To this end, risk capital may be used to:
(a) provide direct loans for the investment in ACP States' public,
semi-public and private enterprises, including SMEs;
(b) increase the own resources, or resources treated as such, of public,
semi-public or private enterprises through direct holdings in the name
of the Community;
(c) participate, with the agreement of the ACP State, in the capital
of financial institutions promoting private investment in ACP States;
(d) provide finance to ACP States' financial institutions or, with
the agreement of the ACP State concerned, ACP and/or Community promoters
wishing to invest, in addition to their own contribution, in ACP-EEC joint
ventures in order to reinforce the own resources of ACP enterprises;
(e) with the agreement of the ACP State or States concerned, assist
ACP or Community financial intermediaries which contribute towards the
financing of SMEs in the ACP States in:
(i) acquiring participations in the capital of ACP SMEs;
(ii) funding the acquisition of participations in ACP SMEs by ACP private
investors and/or Community promoters in the conditions laid down in point
(d);
(iii) on-lending for financing investment in ACP States' SMEs;
(f) assist with the restructuring or recapitalization of financial
institutions of the ACP States;
(g) finance specific studies, research or investment for the preparation
and identification of projects; provide assistance, including training,
management and investment-related services, to enterprises in the context
of the Bank's operations during the pre-investment period or for rehabilitation
purposes and, where appropriate, contribute to the start-up costs, including
investment guarantee and insurance premiums, necessary to ensure that the
investment decision is taken.
2. Where appropriate, loan financing of investment, both directly or
indirectly, as well as of sectoral support programmes, shall be provided
from the Bank's own resources.
Article 269
The ACP States may, to encourage the promotion and development of their
respective private sectors, use the resources of the indicative programme
for:
(a) supporting the development of enterprises, by providing training,
assistance in financial management and project preparation, specialized
business start-up services and development and management services, and
by encouraging technology transfers;
(b) providing appropriate and effective support for investment promotion,
including the provision of assistance to promoters;
(c) supporting the setting up or the strengthening of national or regional
financial institutions in the ACP States to finance export operations;
(d) financing imports of intermediate materials needed for the export
industries of a requesting ACP State;
(e) credit lines in favour of SMEs;
(f) providing appropriate and effective support for export promotion;
(g) supporting the improvement of the investment climate including
the legal and fiscal framework for business, and the development of services
in support of the enterprise sector so as to provide enterprises with advisory
services in the legal, technical and managerial fields;
(h) providing technical cooperation to reinforce the activities of
bodies in the ACP States working for the development of small and medium-sized
enterprises;
(i) implementing appropriate programmes for vocational training and
developing the capacity of individual entrepreneurs, particularly in the
small-scale and informal sectors;
(j) providing assistance for the mobilization of domestic savings,
development of financial intermediation and of new financial instruments,
rationalization of enterprise promotion policies and encouragement of foreign
investment;
(k) financing ventures undertaken by cooperatives or local communities
in ACP States and the creation or strengthening of SME guarantee funds.
Article 270
In order to mobilize external investment resources, both private and
public, particular efforts should be made in exploiting the possibilities
of cofinancing or attracting parallel-financing for the various projects
or programmes.
Article 271
In assisting the ACP efforts to invest in PMDT, particular attention
shall be paid to supporting optimal use of existing capacity of the ACP
State concerned and the needs for rehabilitation.
Article 272
In order to support the promotion of investment in the ACP States and
with due regard to the complementarity of their roles, the Commission and
the Bank will closely coordinate their activities in this field.
The Commission and the Bank shall, with the assistance of Member States
and ACP States, ensure effective coordination at the operational level
among all parties interested in supporting investment in ACP States.
With a view to keeping those parties informed on investment prospects,
the Commission shall produce reports and studies notably on:
- investment flows between the Community and the ACP States, economic,
legal or institutional obstacles hampering those investments, measures
which will facilitate private capital movements, joint financing, access
of ACP States to international financial markets and the effectiveness
of domestic financial markets,
-activities undertaken by national and international systems of investment
guarantees,
-investment promotion and protection agreements between Member States
and ACP States.
The Commission shall submit to the ACP-EEC Development Finance Cooperation
Committee the results of these studies. It shall also, in collaboration
with the Bank, submit a report on the results of coordination in the field
of investment and private sector support.
Section 5
Current payments and capital movements
Article 273
1. With regard to capital movements linked with investments and to
current payments, the Contracting Parties shall refrain from taking action
in the field of foreign exchange transactions which would be incompatible
with their obligations under this Convention resulting from the provisions
relating to trade in goods and services, establishment and industrial cooperation.
These obligations shall not, however, prevent the Contracting Parties from
adopting the necessary protective measures should they be justified by
reasons relating to serious economic difficulties or severe balance-of-payments
problems.
2. In respect of foreign exchange transactions linked with investments
and current payments, the ACP States, on the one hand, and the Member States,
on the other, shall avoid, as far as possible, taking discriminatory measures
vis-à-vis each other or according more favourable treatment to third
States, taking full account of the evolving nature of the international
monetary system, the existence of specific monetary arrangements and balance-of-payments
problems.
To the extent that such measures or treatment are unavoidable, they
shall be maintained or introduced in accordance with accepted international
monetary rules and every effort shall be made to minimize any adverse effects
on the parties affected.
Section 6
Qualification and treatment of business entities
Article 274
1. 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.
2. For the purpose of this Convention, 'companies or firms of a Member
State or of 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-profitmaking, 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 in a Member State or ACP State.
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 the ACP State.
Chapter 4
Technical cooperation
Article 275
Technical cooperation shall assist the ACP States in the development
of national and regional manpower resources, the sustained development
of their institutions, and contribute to the achievement of project and
programme goals. To this end:
(a) support through the provision of technical assistance shall be
made available only at the request of the ACP State or States concerned;
(b) technical cooperation shall be cost-effective and relevant to the
need for which it is intended, and also favour the transfer of know-how
and increase national and regional capabilities;
(c) efforts shall be made to encourage the participation in Fund-financed
contracts of ACP experts, consultancy firms, educational and research institutions
and also to make greater use of secondment of ACP national cadres as consultants
to an institution in their own country, or a neighbouring country, or to
a regional organization;
(d)ACP States may, either on a national or regional basis, use the
instruments and resources of financial and technical cooperation to develop
knowledge of national and regional manpower constraints and potential and
to establish a register of ACP experts, consultants and consultancy firms
suitable for employment on Fund projects and programmes, as well as to
identify ways of employing qualified national and regional personnel on
Fund projects;
(e) intra-ACP technical assistance shall be supported through the instruments
of development finance cooperation in order to enable the exchange between
the ACP States of technical assistance, management and professional expertise;
(f) action programmes for long-term institution-building and staff
development shall be an integral part of project and programme planning,
account being taken of the necessary financial requirements;
(g) with a view to reversing the brain drain from the ACP States, the
Community shall assist ACP States who so request to facilitate the return
of qualified ACP nationals resident in developed countries through appropriate
re-installation incentives;
(h) project and programme appraisal shall take due account of national
human resources constraints and ensure a strategy favourable to the promotion
of such resources;
(i) technical assistance personnel shall be qualified for the specific
tasks as defined in the request from the ACP State or States and shall
be integrated within the beneficiary ACP institution;
(j) the effective training of national personnel shall be part of the
assignment of technical assistance personnel so as to phase out technical
assistance with a view to staffing projects entirely and on a permanent
basis with nationals of the ACP States;
(k) the cooperation shall include arrangements to enhance the capacity
of the ACP States to build up their own expertise and improve the technical
skills of their own consultants, consulting companies or firms;
(l) special attention should be given to the development of the ACP
States' capacities in project planning, implementation and evaluation.
Article 276
1. Technical cooperation may be either of a specific or a general nature.
2. Technical cooperation of a general nature shall include inter alia:
(a) development studies, studies of prospects and resources for economic
development and diversification in the ACP States, and of problems of interest
to the ACP States as a whole or to any group of those States;
(b) studies to find practical solutions to the indebtedness, debt-servicing
and balance-of-payments problems of ACP States;
(c) sectoral or product studies;
(d) the provision of experts, advisers, technicians and instructors
for specific assignments and for limited periods;
(e) the supply of instructional, experimentation, research and demonstration
equipment;
(f) general information and documentation including statistics, to
promote the development of the ACP States and the achievement of the aims
of cooperation;
(g) exchanges of executive and specialized staff, students, research
workers, motivators and heads of social or cultural groups or associations;
(h) the granting of study or training awards, particularly to persons
already in employment and requiring further training;
(i) the organization of seminars or sessions for training, further
training and information;
(j) the setting up or strengthening of information and documentation
instruments, particularly for exchanges of know-how, methods and experience
between ACP States and between them and the Community;
(k) cooperation between or twinning of ACP States' institutions, particularly
universities, and other ACP and EEC training and research establishments;
(l) support for significant cultural events.
3. Technical cooperation related to specific operations shall include
inter alia:
(a) technical, economic, statistical, financial and commercial studies,
as well as research and surveys required to prepare projects or programmes,
including those on structural adjustment and investment;
(b) preparation of projects and programmes;
(c) execution and supervision of projects and programmes;
(d) implementation of temporary measures required for the establishment,
launching, operation and maintenance of a specific project;
(e) monitoring and evaluation of operations;
(f) integrated training, information and research programmes.
Article 277
The Community shall take practical measures to increase and improve
the information placed at the disposal of ACP States concerning the availability
and qualifications of relevant consultants.
Article 278
1. The choice of whether to use the services of consultancy companies
or firms or of individual experts shall take account of the nature of the
problems and the scale and complexity of the technical means and management
resources required, as well as the comparative cost of the two solutions.
In addition, measures shall be taken to ensure that recruiters can distinguish
clearly between different levels of competence and experience on an international
level. The choice of contractors and their staff shall refer to the following
criteria:
(a) professional skills (technical and training ability) and human
qualities;
(b) respect for the cultural values and the political and administrative
circumstances of the ACP State or States concerned;
(c)knowledge of the language necessary for the execution of the contract;
(d) practical experience of problems of the type to be dealt with;
(e) cost.
2. The recruitment of technical cooperation staff, the determination
of their aims and functions and duration of their missions, their remuneration
and the ways in which they contribute to the development of the ACP States
to which they are assigned, must conform to the principles for technical
cooperation policy laid down in Article 275. The procedures to be applied
in this context must ensure objectivity in terms of the choice and quality
of the services provided. The following principles shall also apply:
(a) recruitment shall be carried out by the national institutions that
will use the technical assistance, in accordance with the relevant provisions
on competition and preference;
(b) efforts shall be made to facilitate direct contact between the
candidate and the future user of the technical assistance;
(c) the use of alternative technical assistance delivery systems should
be encouraged through the use of volunteers, non-governmental organizations,
retired executives and twinning arrangements;
(d) when considering a request for technical assistance, the ACP States
and the Commission delegation shall compare the costs and benefits of different
ways of transferring technology and increasing capabilities;
(e) the tender dossier shall provide that each tenderer must indicate
in his tender what methods he intends to adopt and what staff he intends
to employ and the strategy for promoting ACP national and/or regional local
capabilities once the contract is put into effect;
(f) the Community shall provide the recipient ACP States with detailed
information on the full cost of technical assistance in order to enable
ACP States to negotiate the contracts in a cost-effective manner.
Article 279
In order to enhance the ACP States' capacity to build up their technical
skills and improve the know-how of their consultants, the Community and
the ACP States shall encourage cooperation partnership arrangements between
consultancy firms, consulting engineers, experts and institutions of the
Member States of the Community and those of the ACP States. To this end,
the Community and the ACP States shall make every effort to:
(a) encourage by means of temporary associations, subcontracting or
the use of experts who are nationals of the ACP States in teams employed
by consultancy firms, consulting engineers or institutions in the Member
States;
(b) inform tenderers in the tender dossier of the selection criteria
and preferences provided for in the Convention, particularly those relating
to the encouragement of the use of ACP human resources.
Article 280
1. Subject to the provisions of this Chapter, the award of service
contracts and the rules of competition and preference therefore shall be
in accordance with Section 5 of Chapter 5.
2. Technical cooperation shall provide support for the educational
and training operations, multiannual training programmes, including awards,
as referred to in Chapter 1 of Title XI of Part Two.
Chapter 5
Implementation procedures
Section 1
Programming
Article 281
1. At the beginning of the period covered by the Convention and before
the indicative programme is drawn up:
(a) each ACP State shall obtain from the Community a clear indication
of the total programmable financial allocation from which it may benefit
during that period as well as any other relevant information;
(b) each ACP State eligible for the specific resources earmarked for
adjustment support in accordance with Article 246 shall be notified of
the estimated initial instalment that it may receive.
2. 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.
The draft indicative programme shall contain:
(a) the priority development objectives of the ACP State concerned
at national and regional level;
(b) the focal sector or sectors for which support is considered the
most appropriate;
(c) the most appropriate measures and operations for attaining the
objectives in the focal sector or sectors or, where such operations are
not sufficiently well-defined, the broad outlines of the programmes to
support the State's adopted policies in the focal sectors;
(d) if possible, specific, clearly identified national projects and
programmes, and especially those which constitute a follow-up to existing
projects and programmes;
(e) where appropriate, a limited part of the programmable resources
not allocated to the focal sector which the ACP State proposes to use for
structural adjustment support;
(f) any proposals for regional projects and programmes.
Article 282
1. The draft indicative programme shall be the subject of an exchange
of views between the ACP State concerned and the Community, due regard
being given to the domestic needs of the ACP States and their sovereign
rights to determine their development strategies, priorities and models
as well as their overall macro-economic and sectoral policies.
2. The indicative programme shall be adopted by agreement between the
Community and the ACP State concerned on the basis of the draft indicative
programme proposed by that State and shall, when adopted, be binding on
both the Community and the State concerned. It shall specify inter alia:
(a) the focal sector or sectors in which the Community's support will
be given and the resources to be deployed for that purpose;
(b) the measures and actions necessary to achieve the objectives of
the sectors agreed upon;
(c) the timetable of commitments and measures to be taken;
(d) the reserve set aside for insurance against possible claims, and
to cover cost increases and contingencies;
(e) the projects and programmes outside the focal sector or sectors
as well as the proposals for regional projects and programmes and, where
appropriate, the part for structural adjustment support.
3. The indicative programme shall be sufficiently flexible to ensure
that operations are kept constantly in line with objectives and to take
account of any changes occurring in the economic situation, priorities
and objectives of the ACP States. It may be revised at the request of the
ACP State concerned.
Article 283
The Community and the ACP State shall take all necessary measures to
ensure that the indicative programme is adopted in the shortest possible
time, preferably before the entry into force of this Convention.
Article 284
1. The indicative programme shall establish the overall amounts of
programmable assistance which may be placed at the disposal of each ACP
State. Save for funds reserved for emergency assistance, interest rate
subsidies and regional cooperation, programmable assistance shall comprise
grants and a part of risk capital.
2. Any balance remaining from the Fund that has not been committed
or disbursed by the end of the last year of application of the Financial
Protocol shall be utilized until it has been exhausted, in accordance with
the same conditions as those laid down in this Convention.
3. A comparative account of commitments and payments shall be drawn
up each year by the national authorizing officer and the Commission delegate,
who shall take the necessary steps to ensure that the timetable of commitments
agreed at the time of programming is adhered to and determine the causes
of delays recorded in their execution so that the necessary remedial measures
can be proposed.
Section 2
Project identification, preparation and appraisal
Article 285
The identification and preparation of projects and programmes shall
be the responsibility of the ACP State concerned or any other eligible
beneficiary.
Article 286
Project or programme dossiers prepared and submitted for financing
must contain all information necessary for the appraisal of the projects
or programmes or, where such projects and programmes have not been completely
defined, provide the broad outlines necessary for their appraisal. Such
dossiers shall be officially transmitted to the delegate by the ACP States
or the other beneficiaries in accordance with this Convention. In the case
of beneficiaries other than ACP States, the express agreement of the State
concerned shall be required.
Article 287
1. The appraisal of projects and programmes shall be undertaken jointly
by the ACP State or States and the Community. In order to expedite the
procedure, the Commission shall give the necessary powers to its delegate
to undertake this joint appraisal.
2. Project and programme appraisal shall take into account the specific
characteristics and constraints of each ACP State as well as the following
factors:
(a) effectiveness and viability of the operations requested and the
returns thereon, if possible on the basis of a cost-benefit analysis, possible
variants being examined;
(b) cultural, social, gender and environmental aspects, both direct
and indirect, and impact on the populations;
(c) availability of local manpower and other resources necessary to
implement, operate and maintain the projects and programmes;
(d) training and institutional development necessary to achieve project
or programme goals;
(e) burden of recurrent cost on the recipient;
(f) national commitments and efforts;
(g) experience gained from operations of the same kind;
(h) results of studies already undertaken on similar projects or programmes
in order to expedite implementation and minimize costs.
3. The specific difficulties and constraints of the least-developed
ACP States which affect the effectiveness, viability and economic return
of projects and programmes shall be taken into account when the said projects
and programmes are appraised.
4. The general guidelines and criteria for appraisal of projects and
programmes shall be developed during the Convention by the ACP-EEC Development
Finance Cooperation Committee in the light of evaluation work, taking into
account the necessary flexibility in adapting these criteria to the specific
situation of each ACP State.
Section 3
Financing proposal and decision
Article 288
1. The conclusions of the appraisal shall be summarized by the delegate
in a financing proposal in close collaboration with the national authorizing
officer.
2. The financing proposal shall contain an advance timetable for the
technical and financial implementation of the project or programme, and
shall deal with the duration of the different phases of implementation.
3. The financing proposal shall:
(a) take into account the comments of the ACP State or States concerned;
(b) be forwarded by the delegate simultaneously to the ACP State or
States concerned and the Commission.
4. The Commission shall finalize the financing proposal and forward
it, with or without amendment, to the Community's decision-making body.
The ACP State or States concerned shall be given an opportunity to comment
on any amendment of substance which the Commission intends to make to the
document; these comments shall be reflected in the amended financing proposal.
Article 289
1. Subject to Article 288 (4), the Community's decision-making body
shall communicate its decision within 120 days from the date of communication
by the delegate referred to in Article 288 (3) (b).
2. Where the financing proposal is not adopted by the Community, the
ACP State or States concerned shall be informed immediately of the reasons
for that decision. In such a case, the representatives of the ACP State
or States concerned may, within 60 days thereafter, request either:
(a) that the matter be referred to the ACP-EEC Development Finance
Cooperation Committee set up under the Convention; or
(b) that they be given a hearing by the Community's decision-making
body.
3. Following such a hearing, a definitive decision to adopt or reject
the financing proposal shall be taken by the relevant Community body, to
which the ACP State or States concerned may forward, before the decision
is taken, any facts which may appear necessary to supplement the information
available to it.
Article 290
1. With a view to expediting procedures and in derogation from the
provisions set out in Articles 288 and 289, financing decisions may deal
with multiannual programmes where the financing concerns:
(a) training;
(b) micro-projects;
(c) trade promotion;
(d) sets of operations of a limited scale in a specific sector;
(e) technical cooperation.
2. In these cases, the ACP State concerned may submit to the delegate
a multiannual programme setting out the broad outlines, the types of actions
envisaged and the financial commitment proposed.
The financing decision on each multiannual programme shall be taken
by the chief authorizing officer. The letter from the chief authorizing
officer to the national authorizing officer notifying such decision shall
constitute the financing agreement as per Article 291.
Within the framework of multiannual programmes thus adopted, the national
authorizing officer shall implement each individual action in accordance
with the relevant provisions of the Convention and the terms of the financing
agreement referred to above.
At the end of each year, the national authorizing officer, in consultation
with the delegate, shall forward a report to the Commission on the implementation
of the programmes.
Section 4
Financing agreement and cost overruns
Article 291
1. For any project or programme financed by a grant from the Fund,
a financing agreement shall be drawn up between the Commission and the
ACP State or States concerned within 60 days of the decision of the Community's
decision-making body.
2. The agreement shall specify in particular the details of the Fund's
financial commitment and the financing arrangements and terms, the general
and specific provisions relating to the project or programme concerned
and shall also incorporate the advance timetable for the technical implementation
of the project or programme contained in the financing proposal.
3. Financing agreements for all projects and programmes shall make
adequate provision for appropriations to cover cost increases and contingencies.
4. Once the financing agreement has been signed, disbursements shall
be made in accordance with the financing plan laid down therein.
5. Any unexpended balance left upon closure of the accounts of projects
and programmes shall accrue to the ACP State concerned and shall be so
specified in the Fund's books. It may be used in the manner laid down in
this Convention for the financing of projects and programmes.
Cost overruns
Article 292
1. Once it appears that cost overruns beyond the limit set in the financing
agreement are likely to be incurred, the national authorizing officer shall,
through the delegate, notify the chief authorizing officer accordingly,
as well as of the measures which the national authorizing officer intends
to take in order to cover such cost overruns over the allocated appropriations,
either by reducing the scale of the project or programme or by calling
on national or other non-Community resources.
2. If it is decided by agreement with the Community not to scale down
the project or programme or if it is not possible to cover them by other
resources, then such overruns may be:
(a) covered by any unexpended balance left upon closure of projects
and programmes from indicative programmes which has not been reallocated,
up to 20 % of the financial commitment for the project or programme concerned;
or
(b) financed by the indicative programme.
Retroactive financing
Article 293
1. In order to ensure early project start-up, avoid gaps between sequential
projects and prevent delays, the ACP States, in agreement with the Commission,
may, on completion of project appraisal and before the financing decision
is taken:
(i) issue invitations to tender for all types of contracts, with a
suspension clause;
(ii) pre-finance, for a limited amount, activities linked to preliminary
and seasonal work, orders for equipment with long delivery lead times as
well as some ongoing operations. Such expenditures must satisfy the procedures
provided for in the Convention.
2. These provisions do not prejudge the powers of the Community's decision-making
body.
3. Expenditure made by the ACP State in pursuance of this Article shall
be retroactively financed under the project or programme, once the financing
agreement is signed.
Section 5
Competition and preferences
Eligibility
Article 294
1. Save where a derogation is granted in accordance with Article 296:
(a) participation in invitations to tender and the award of the contracts
financed by the Fund shall be open on equal terms to:
(i) natural persons, companies or firms or public or semi-public agencies
of the ACP and Community States;
(ii) cooperative societies and other legal persons governed by public
or private law, save for those which are non-profitmaking, of the Community
and/or the ACP States;
(iii) joint ventures or groupings of ACP and/or Community companies
or firms;
(b) supplies must originate in the Community and/or the ACP States,
in accordance with the provisions of Annex LIV.
2. To be eligible to participate in invitations to tender and the award
of contracts, tenderers shall provide evidence satisfactory to the ACP
States of their eligibility under Article 274 and paragraph 1 of this Article,
and adequacy of resources to carry out the contract effectively.
Participation on equal terms
Article 295
The ACP States and the Commission shall take the necessary measures
to ensure the widest possible participation on equal terms in invitations
to tender for works, supplies and services contracts, including, as appropriate,
measures to:
(a) ensure publication of invitations to tender in the Official Journal
of the European Communities, the official journals of all the ACP States
and any other appropriate information media;
(b) eliminate discriminatory practices or technical specifications
which might stand in the way of widespread participation on equal terms;
(c) encourage cooperation between the companies and firms of the Member
States and of the ACP States;
(d) ensure that all the selection criteria are specified in the tender
dossier; and
(e) ensure that the tender selected conforms to the requirements of
the tender dossier and meets the selection criteria stated therein.
Derogation
Article 296
1. In order to ensure the optimum cost-effectiveness of the system,
natural or legal persons from non-ACP developing countries may be authorized
to participate in contracts financed by the Community at the request of
the ACP States concerned. The ACP States concerned shall, on each occasion,
provide the delegate with the information needed for the Community to decide
on such derogations, particular attention being given to:
(a) the geographical location of the ACP State concerned;
(b) the competitiveness of contractors, suppliers and consultants from
the Community 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.
2. Participation by third countries in contracts financed by the Community
may also be authorized:
(a) where the Community participates in the financing of regional or
inter-regional schemes involving such countries;
(b) in the case of cofinancing projects and programmes;
(c) in the case of emergency assistance.
3. In exceptional cases and in agreement with the Commission, consultancy
firms which or experts who are nationals of third countries may participate
in service contracts.
Competition
Article 297
Save as provided for in Article 298, works and supply contracts financed
from the Fund shall be concluded following an open invitation to tender
and service contracts shall be concluded following a restricted invitation
to tender.
Article 298
1. The ACP State or States may, in accordance with the provisions of
paragraphs 2, 3 and 4 and of Article 299 and in agreement with the Commission:
(a) place contracts after restricted invitations to tender following,
where applicable, calls for prequalification;
(b) conclude contracts by direct agreement;
(c) perform contracts through public or semi-public departments of
the ACP States.
2. Restricted invitation to tender may be used:
(a) where the urgency of the situation is established or where the
nature or certain particular characteristics of the contracts so warrant;
(b) for projects or programmes of a highly specialized nature;
(c) for large-scale contracts after prequalification;
3. Direct-agreement contracts may be awarded in the following cases:
(a) small-scale operations or in urgent situations or short-term technical
cooperation schemes;
(b) emergency assistance;
(c) operations assigned to individual experts;
(d) operations which are complementary to or necessary for the completion
of others already in hand;
(e) where the execution of the contract is exclusively reserved for
holders of patents or licences to use, process or import the articles concerned;
(f) following an unsuccessful invitation to tender.
4. The following procedure shall apply for restricted invitation to
tender and direct-agreement contracts:
(a) in the case of works and supply contracts, a short-list of prospective
tenderers shall be drawn up by the ACP State or States concerned in agreement
with the delegate following, where applicable, a call for prequalification
of tenders;
(b) in the case of service contracts, the short-list of prospective
tenderers shall be drawn up by the ACP States, in agreement with the Commission
on the basis of the proposals of the ACP State or States concerned and
the proposals submitted by the Commission;
(c) in direct-agreement contracts, the ACP State shall enter freely
into such discussions as it may consider appropriate with the prospective
tenderers whom it has short-listed in accordance with the paragraphs above
and award the contract to the tenderers whom it has selected.
Direct labour
Article 299
1. Contracts shall be performed by direct labour through public or
semi-public agencies or departments of the State or States concerned, where
the ACP State concerned has the qualified management staff available in
its national departments, in case of emergency assistance, service contracts
and all other operations the estimated cost of which is less than ECU 5
million.
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 participation
of the Community shall cover only costs incurred by supplementary measures
and temporary expenditure relating to execution strictly confined to the
requirements of the project in question.
Emergency assistance contracts
Article 300
Contracts under emergency assistance shall be undertaken in such a
way as to reflect the urgency of the situation. To this end, for all operations
relating to emergency assistance, the ACP State may, in agreement with
the delegate, authorize:
(a) the conclusion of contracts by direct agreement;
(b) the performance of contracts by direct labour;
(c) implementation through specialized agencies;
(d) direct implementation by the Commission.
Accelerated procedure
Article 301
1. With the aim of ensuring the rapid and effective implementation
of projects and programmes, an accelerated tendering procedure shall be
used except as otherwise indicated by the ACP State concerned, or by the
Commission by way of a proposal for the agreement of the ACP State concerned.
The accelerated procedure for issuing invitations to tender shall involve
shorter time limits for tendering and the call for tender is confined to
the ACP State concerned and the neighbouring ACP States, in accordance
with the rules in force in the ACP State concerned. The accelerated procedure
shall apply in the following cases:
(a) works contracts: the estimated cost of which is less than ECU 5
million;
(b) emergency assistance: irrespective of the value of the contract.
2. By way of derogation, the national authorizing officer, in agreement
with the delegate, may procure supplies and/or services for a limited amount
where they are available in the ACP States concerned or in neighbouring
ACP States.
Article 302
In order to speed up the procedure, the ACP States may request the
Commission to negotiate, draw up and conclude service contracts on their
behalf directly or through its relevant agency.
Preference
Article 303
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 Fund in order to permit the optimization of the physical
and human resources of those States. To this end:
(a) for works contracts of a value of less than ECU 5 million, tenderers
of the ACP States, provided that at least one quarter of the capital stock
and mangement 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 of 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, given the required competence,
preference shall be given to experts, institutions or consultancy companies
or firms from ACP States where tenders of equivalent economic and technical
quality are compared;
(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;
(e) the ACP State may, in the invitation to tender, propose to the
prospective tenderers the assistance of 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.
Selection
Article 304
1. The ACP State shall award the contract to the tenderer:
(a) whose tender is found to be responsive to the tender dossier;
(b) for a works or supply contract, who has offered the most advantageous
tender as assessed inter alia on the basis of:
(i) the price, the operating and maintenance costs;
(ii) the qualifications of, and the guarantees offered by the tenderers,
as well as the technical qualities of the tender, including the offer of
an after-sales service in the ACP State;
(iii) the nature of, the conditions and the time limit for executing
the contracts, and the adaptation to local conditions;
(c) for a service contract, who offers the most advantageous tender
taking into account inter alia the price, the technical value of the tender,
the organization and the methodology proposed for the provision of the
services, as well as the competence, independence and availability of the
personnel proposed.
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) permits the best possible use of the physical and human resources
of the ACP States;
(ii) offers the greatest subcontracting possibilities to ACP companies,
firms or natural persons; or
(iii) is a consortium of natural persons, companies and firms from
ACP States and the Community.
General regulations
Article 305
The award of contracts financed from the resources of the Fund shall
be governed by this Convention and the general regulations which shall
be adopted by decision of the Council of Ministers at the first meeting
following the signing of this Convention, upon the recommendation of the
ACP-EEC Development Finance Cooperation Committee referred to in Article
325 of this Convention.
General conditions
Article 306
Performance of works, supply and service contracts financed from the
resources of the Fund shall be governed by:
(a) the general conditions applicable to contracts financed by the
Fund which shall be adopted by decision of the Council of Ministers, at
the first meeting following the signing of this Convention, upon the recommendation
of the ACP-EEC Development Finance Cooperation Committee referred to in
Article 325 of this Convention; or
(b) in the case of cofinanced projects and programmes, or where a derogation
to third parties has been granted, or in accelerated procedures or in other
appropriate cases, such other general conditions as may be agreed by the
ACP State concerned and the Community, i.e.:
(i) the general conditions prescribed by the national legislation of
the ACP State concerned or its established practices regarding international
contracts; or
(ii) any other international general conditions for contracts.
Settlement of disputes
Article 307
Any dispute arising between the authorities of an ACP State and a contractor,
supplier or provider of services during the performance of a contract financed
by the Fund shall:
(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 Convention, upon the recommendation of the
ACP-EEC Development Finance Cooperation Committee referred to in Article
325 of this Convention.
Section 6
Tax and customs arrangements
Article 308
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 organizations
with which they have relations. For the purpose of determining the most-favoured-nation
treatment, account shall not be taken of arrangements applied by the ACP
State concerned to other ACP States, or to other developing countries.
Article 309
Subject to Article 308 above, 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 realize
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 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;
(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.
Article 310
Any matter not covered by the provisions of Articles 308 and 309 shall
remain subject to the national legislation of the ACP State concerned.
Chapter 6
Management and executing agents
Section 1
Chief authorizing officer
Article 311
1. The Commission shall appoint the chief authorizing officer of the
Fund, who shall be responsible for managing the resources of the Fund.
2. The chief authorizing officer shall:
(a) commit, clear and authorize expenditure and keep accounts of commitments
and authorizations;
(b) ensure that financing decisions are carried out;
(c) in close cooperation with the national authorizing officer make
commitment decisions and financial arrangements that prove necessary to
ensure proper execution of approved operations from the economic and technical
viewpoints;
(d) approve the tender dossier before invitations to tender are issued,
subject to the powers exercised by the delegate under Article 317;
(e) ensure publication in reasonable time of invitations to tender
in accordance with Article 295;
(f) approve the proposal for placing of the contract, subject to the
powers exercised by the delegate under Article 317.
3. The chief authorizing officer shall, at the end of the each year,
make available a detailed balance sheet of the Fund showing balances of
contributions paid into the Fund by the Member States, global disbursements
in respect of each financing heading including regional cooperation, emergency
assistance, Stabex, Sysmin and structural adjustment.
Section 2
National authorizing officer
Article 312
1. The Government of each ACP State shall appoint a national authorizing
officer to represent it in all operations financed from the resources of
the Fund managed by the Commission. The national authorizing officer shall
also be kept informed of operations financed from the resources managed
by the Bank.
2. The national authorizing officer may delegate some of these functions
and shall inform the chief authorizing officer of any such delegation.
Article 313
1. The national authorizing officer shall:
(a) in close cooperation with the delegate be responsible for the preparation,
submission and appraisal of projects and programmes;
(b) in close cooperation with the delegate, issue invitations to tender,
receive tenders, preside over the examination of tenders, establish the
results of this examination, sign contracts and riders thereto, and approve
expenditure;
(c) submit, before issuing invitations to tender, the invitation to
tender dossier to the delegate who shall give his agreement within the
time limit set in Article 317;
(d) complete the evaluation of tenders within the tender validity period
taking into consideration the period required for the approval of contracts;
(e) transmit the result of the examination of the tenders and a proposal
for placing the contract to the delegate who shall, within 30 days or such
other time limit as set in Article 317, give his approval;
(f) clear and authorize expenditure within the limits of the funds
assigned to him;
(g) during the execution operations, make any adaptation arrangements
necessary to ensure the proper execution of approved projects or programmes
from the economic and technical viewpoint.
2. The national authorizing officer shall, during the execution of
operations and subject to the requirement to inform the delegate, decide
on:
(a) technical adjustments and alterations 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;
(b) alterations to estimates during execution;
(c) transfers from item to item within estimates;
(d) changes of site for multiple-unit projects or programmes where
justified on technical, economic or social grounds;
(e) imposition or remission of penalties for delay;
(f) acts discharging guarantors;
(g) purchase of goods, irrespective of their origin, on the local market;
(h) 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;
(i) subcontracting;
(j) final acceptance, provided that the delegate 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;
(k) hiring of consultants and other technical assistance experts.
Article 314
All documents and proposals submitted by the national authorizing officer
to the Commission or the delegate for agreement or approval in accordance
with this Convention shall be approved or deemed to be approved within
the time limits laid down by this Convention, or within 30 days, where
no time limit is stated in the Convention.
Article 315
At the end of each year of the period of application of the Convention,
the national authorizing officer shall prepare a report on the operations
covered by the national indicative programme and regional programmes in
the ACP State concerned. The report shall include, inter alia:
(a) the report referred to in Article 284 of this Convention relating
to commitments, disbursements and the implementation timetable for the
indicative programme as well as a progress report on projects and programmes;
(b) commitments, disbursements, implementation timetable and progress
on regional projects and programmes in that State;
(c) in consultation with the Commission delegate, the report referred
to in Article 290 of this Convention relating to multiannual programmes;
(d) an assessment of the operations in financial and technical cooperation
in the ACP State, including regional programmes.
A copy of the report shall be submitted simultaneously to the delegate
and to the ACP General Secretariat not later than 90 days from the end
of the year under review.
Section 3
The delegate
Article 316
1. The Commission shall be represented in each ACP State, or in each
regional grouping which expressly so requests, by a delegate approved by
the ACP State or States concerned.
2. Where a delegate is appointed to a group of ACP States, appropriate
steps shall be taken to ensure that the delegate is represented by a deputy
resident in each of the States in which the delegate is not resident.
Article 317
The delegate shall have the necessary instructions and delegated powers
to facilitate and expedite the preparation, appraisal and execution of
projects and programmes and shall be provided with the necessary back-up
support to do so. To this end, and in close cooperation with the national
authorizing officer, the delegate shall:
(a) at the request of the ACP State concerned, participate and give
assistance in the preparation of projects and programmes and in negotiating
technical assistance contracts;
(b) participate in appraising projects and programmes, preparing tender
dossiers, and seeking ways to simplify project and programme appraisal
and implementation procedures;
(c) prepare financing proposals;
(d) for accelerated procedures, direct-agreement contracts, and contracts
for emergency assistance, approve, before the national authorizing officer
issues them, the invitation-to-tender dossier within 30 days of its submission
to him by the national authorizing officer;
(e) for all cases other than those mentioned in (d), transmit the invitation-to-tender
dossier to the chief authorizing officer for approval within 30 days of
its submission to the delegate by the national authorizing officer;
(f) be present at the opening of tenders, and receive copies of them
and of the results of their examination;
(g) approve within 30 days the national authorizing officer's proposal
for the placing of the contract for all:
(i) direct-agreement contracts;
(ii) service contracts;
(iii) contracts relating to emergency assistance; and
(iv) contracts by accelerated procedures, works contracts worth less
than ECU 5 million and supply contracts worth less than ECU 1 million;
(h) approve within 30 days the national authorizing officer's proposal
for the placing of the contract not covered by paragraph (g) wherever the
following conditions are fulfilled; the tender selected is the lowest of
those conforming to the requirements of the tender dossier, meets all the
selection criteria stated therein, and does not exceed the sum earmarked
for the contract;
(i) where the conditions set out in point (h) are not fulfilled, forward
the proposal for the placing of the contract to the chief authorizing officer
who shall decide thereon within 60 days of the receipt by the delegate.
Where the price of the selected tender exceeds the sum earmarked for the
contract, the chief authorizing officer shall, upon giving approval to
the award, make the necessary financial commitment;
(j) endorse contracts and estimates in the case of direct labour, riders
thereto, as well as payment authorizations issued by the national authorizing
officer;
(k) ensure that the projects and programmes financed from the resources
of the Fund managed by the Commission are properly executed from the financial
and technical viewpoints;
(l) cooperate with the national authorities of the ACP State where
he represents the Commission in evaluating operations regularly;
(m) maintain close and continuous contacts with the national authorizing
officer for the purpose of analysing and remedying specific problems encountered
in the implementation of development finance cooperation;
(n) in particular, make regular checks to see that operations are proceeding
in accordance with the schedule laid down in the advance timetable in the
financing decision;
(o) communicate to the ACP State all information and relevant documents
on the procedures for implementing development finance cooperation especially
as regards appraisal criteria and tender evaluation criteria;
(p) on a regular basis inform the national authorities of Community
activities which may directly concern cooperation between the Community
and the ACP States.
Article 318
At the end of each year of the period of the Convention, the delegate
shall prepare a report on the implementation of the national indicative
programme and regional programmes in particular as it relates to operations
of the Fund managed by the Commission and covering inter alia:
(a) the amount of the indicative programme, commitments, disbursements
and the timetable for the implementation of the indicative programme and
regional programmes;
(b) a progress report on projects and programmes;
(c) an assessment of the operations of the Fund in the ACP State and
regional programmes.
A copy of the report shall be submitted simultaneously to the ACP States
concerned and the Community.
Section 4
Payments and paying agents
Article 319
1. For the purpose of effecting payments in the national currencies
of the ACP States, accounts denominated in the currencies of the Member
States or in ecus shall be opened in each ACP State 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 accounts referred to above shall be replenished by the Commission
in the currency of one of the Member States or in ecus, based on estimates
of future cash requirements, which shall be made sufficiently in advance
to avoid need for pre-financing by ACP States and to prevent delayed disbursements.
3. The national paying agent shall receive no remuneration for its
services, and no interest shall be payable by it on deposited funds.
4. For the purpose of effecting payments in ecus, accounts denominated
in ecus shall be opened in the name of the Commission with financing institutions
in the Member States. These institutions shall exercise the functions of
paying agents in Europe. Payments from these accounts, which shall be executed
on the instruction of the Commission or by the delegate acting on its behalf,
may be made in respect of expenditure authorized by the national authorizing
officer or by the chief authorizing officer with the prior authorization
of the national authorizing officer.
5. Within the limits of the funds available in the accounts, the paying
agents shall make disbursements authorized by the national authorizing
officer or, as appropriate, the chief authorizing officer, after verifying
that the supporting documents provided are substantially correct and in
order, and that the discharge given for payment is valid.
6. The procedures for clearance, authorization and payment of expenditure
shall be completed within a period of 90 days from the date on which the
payment becomes due. The national authorizing officer shall process and
deliver the payment authorization to the delegate not later than 45 days
before the due date.
7. Claims for delayed payments shall be borne by the ACP State or States
concerned, and by the Commission from its own resources, for that part
of the delay for which each party is responsible in accordance with paragraph
8.
8. The paying agents, the national authorizing officer, the delegate
and the responsible Commission departments shall remain financially liable
until the Commission gives final clearance for the operations for the execution
of which they are responsible.
Section 5
Monitoring and evaluation
Article 320
The objective of monitoring and evaluation shall consist in the external
assessment of development operations (preparation, implementation and subsequent
operation) with a view to improving the development effectiveness of ongoing
and future operations. This work shall be done jointly by the ACP States
and the Community.
Article 321
1. More specifically, this work will notably serve the following purposes:
(a) provide regular, joint and independent monitoring and evaluation
of the Fund's operations and activities;
(b) organize the joint monitoring and evaluation of ongoing and completed
operations, and compare the results of operations with their objectives.
Administration, functioning and maintenance of operations should systematically
be reviewed;
(c) account to the Council of Ministers for the outcome of the evaluation
work and feed that experience back into the design and execution of future
operations;
(d) ensure that the ACP States' comments are sought on all monitoring
and evaluation reports, and further ensure, in all cases, that the ACP
States' experts participate directly in monitoring, evaluation and preparation
of the reports;
(e) ensure that the ACP States and the Community regularly programme
evaluation work;
(f) synthesize results of monitoring and evaluation by sector, instrument,
theme, country and region. To this end:
(i) reports on the results of monitoring and evaluation shall be drawn
up and published at agreed intervals;
(ii) an annual review of operations performance results shall be prepared;
(g) ensure the adequate operational feed-back of monitoring and evaluation
results into development policy and practice, by devising effective feed-back
mechanisms, organizing seminars and work-shops and producing and distributing
concise documentation highlighting the most important findings, conclusions
and recommendations and, through a process of discussion and follow-up
with policy and operating staff, bring that experience to bear on the design
and execution of future operations and help to re-orient them;
(h) identify and disseminate lessons that can contribute to improvements
in the design and implementation of future operations;
(i) collect and exploit relevant information available with national
and international development cooperation organizations.
2. Areas of work to be covered will notably include the following:
(a) development sectors;
(b) development instruments and themes;
(c) country and regional reviews;
(d) individual development operations.
Article 322
In order to ensure its practical relevance to the objectives of the
Convention and to improve the exchange of information, the Commission shall:
(a) maintain close contacts with national evaluation units in ACP States
and in the Community, as well as with the national authorizing officers,
Commission delegations and other interested services in the ACP national
administrations and regional organizations;
(b) assist the ACP States in initiating or strengthening monitoring
and evaluation capacities, through consultation or through courses on monitoring
and evaluation.
Article 323
The ACP-EEC Development Finance cooperation Committee shall ensure
the joint character of monitoring and evaluation operations in accordance
with the joint declaration in Annex LV.
Section 6
ACP-EEC Development Finance Cooperation Committee
Article 324
The Council of Ministers shall examine at least once a year 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. This examination shall also cover regional cooperation
and measures in favour of least-developed, landlocked and island ACP States.
Article 325
To this end, an ACP-EEC Development Finance Cooperation Committee,
hereinafter referred to as 'the ACP-EEC Committee`, shall be set up within
the Council of Ministers. The Committee shall:
(a) collect information on existing procedures relating to the implementation
of development cooperation and give any necessary clarification required
on these procedures;
(b) examine, at the request of the Community or the ACP States and
on the basis of concrete examples, any general or specific problems arising
from the implementation of development cooperation;
(c) examine any problems in connection with the implementation of the
timetables of commitments and disbursements and for implementation of projects
and programmes, with a view to facilitating the removal of any difficulties
and bottlenecks discovered;
(d) ensure that the objectives and principles of development cooperation
are attained;
(e) help to establish general guidelines for development cooperation;
(f) formulate or adapt general conditions applicable to the award and
performance of contracts in accordance with the provisions of the Convention;
(g) review the results of monitoring and evaluation, and formulate
any suggestions with a view to ensuring the effective implementation of
monitoring and evaluation work and further consider proposals for future
monitoring and evaluation activities;
(h) review measures taken to ensure the cost-effectiveness of technical
cooperation schemes and in particular the encouragement and development
of ACP States' national and/or regional manpower capacities;
(i) review the measures taken to ensure improved conditions and a better
environment for the award of contracts to ACP firms;
(j) examine the ways in which the instruments provided for in the Convention
have been utilized to contribute to the attenuation of the financial burden
caused by the debt of ACP States;
(k) examine the economic, technical, legal and institutional instruments
deployed within the framework of the Convention to attain the objectives
of promoting private investment in order to discover the obstacles which
currently hamper the development of the ACP States, as well as to determine
the actions required to remove these obstacles;
(l) review the measures which will facilitate an increased and more
stable flow of private capital, and which will enhance:
(i) joint financing of productive investment with the private sector;
(ii) access by interested ACP States to international finance markets;
(iii) the creation, activity and effectiveness of domestic financial
markets;
(m) review the issues relating to the promotion and protection of investment
in the ACP States and the Member States of the Community which affect their
development cooperation;
(n) report to the Council on any matter examined by it, and submit
to the Council any suggestions likely to improve or expedite the implementation
of development cooperation;
(o) prepare and submit to the Council the results of evaluation of
projects and programmes;
(p) follow up and implement guidelines and resolutions adopted by the
Council on development cooperation;
(q) perform such other tasks as are entrusted to it by the Council.
Article 326
1. The ACP-EEC Committee, which shall meet every quarter, shall be
composed, on a basis of parity, of representatives of the ACP States and
of the Community appointed by the Council of Ministers, or their authorized
representatives. It shall meet at ministerial level whenever one of the
parties so requests and at least once a year. A representative of the Bank
shall be present at committee meetings.
2. The Council of Ministers shall lay down the ACP-EEC 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.
3. The ACP-EEC 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.
4. Where a specific problem arising from the implementation of financial
or technical cooperation is submitted to the committee, the committee shall
examine it within 60 days of its submission with a view to providing an
appropriate solution.
5. (a) The ACP-EEC Committee shall regularly review progress made in
the implementation of regional cooperation. It shall in particular examine
problems and policy issues submitted to it by the ACP States or by the
Community and make any appropriate proposals.
(b) Implementation of the provisions under development of services
will be monitored and followed up by the ACP-EEC Committee.
6. The ACP-EEC Committee shall review the implementation of special
measures in favour of least-developed, landlocked and island ACP States
and in particular those which are identified as desirable in order to improve
the attractiveness of those States to private investors.
Article 327
1. To facilitate the work of the committee:
(a) the ACP States and their beneficiary regional organizations in
collaboration with the ACP Secretariat, on the one hand, and the Commission
in collaboration with the Bank, on the other hand, shall submit to the
committee annual reports on the management of development finance cooperation;
(b) an annual report on monitoring and evaluation operations/activities
will be submitted to the committee in accordance with the joint declaration
in Annex LV;
(c) the Commission, in collaboration with the Bank, shall produce reports
for the information of the committee on results of coordination in the
field of investment and private sector support;
(d) the Commission shall produce reports and studies for the information
of the committee on:
- investment flows between the Community and the ACP States; economic,
legal or institutional obstacles hampering those investments; measures
which will facilitate private capital movements, joint financing, access
by the ACP States to international financial markets and the operation
of domestic financial markets,
-activities undertaken by national and international systems of investment
guarantee,
-investment promotion and protection agreements between Community Member
States and ACP States.
2. The ACP-EEC Committee shall examine the reports on development finance
cooperation, monitoring and evaluation and investment which shall be submitted
to it pursuant to paragraph 1. It shall:
(a) prepare an annual progress report, which shall be examined by the
Council of Ministers at its annual meeting on the definition of the general
guidelines for development finance cooperation;
(b) submit to the Council any observations, information or proposals
on the problems concerning the implementation of the economic development
finance cooperation, and also on the general problems of this cooperation;
and
(c) draw up for the attention of the Council of Ministers, recommendations
and resolutions relating to measures directed towards attainment of the
objectives of development finance cooperation, within the framework of
the powers conferred upon it by that Council.
3. On the basis of the information referred to in paragraph 2, the
Council of Ministers shall establish the general guidelines for development
finance cooperation and shall adopt resolutions or guidelines on the measures
to be taken by the Community and the ACP States in order to ensure that
the objectives of such cooperation are attained.
TITLE IV
GENERAL PROVISIONS FOR THE LEAST-DEVELOPED, LANDLOCKED AND ISLAND ACP
STATES
Article 328
Special attention shall be paid to the least-developed, landlocked
and island ACP States and the specific needs and problems of each of these
three groups of countries in order to enable them to take full advantage
of the opportunities offered by the Convention, so as to step up their
respective rates of development.
Independently of the specific measures and provisions for the least-developed,
landlocked and island countries in the different chapters of the Convention,
special attention shall be paid, in respect of these groups, to:
- the strengthening of regional cooperation,
-transport and communications infrastructure,
-the efficient exploitation of marine resources and the marketing of
products so produced and, in the case of landlocked countries, inland fisheries,
-structural adjustment where account will be taken of the level of
development of these countries and equally, at the implementation stage,
of the social dimension of adjustment,
-the implementation of food strategies and integrated development programmes.
Chapter 1
Least-developed ACP States
Article 329
The least-developed ACP States shall be accorded 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.
Article 330
1. The following shall be considered least-developed ACP States for
the purposes of this Convention:
>TABLE POSITION>
2. The list of least-developed ACP States may be amended by decision
of the Council of Ministers where:
- a third State in a comparable situation accedes to this Convention,
-the economic situation of an ACP State undergoes a significant and
lasting change, either so as to necessitate its inclusion in the category
of least-developed ACP States or so that its inclusion in that category
is no longer warranted.
Article 331
The provisions laid down pursuant to Article 329 in respect of the
least-developed ACP States are contained in the following Articles.
1. Objectives
- Articles 8 and 26
2.Agricultural cooperation, food security and rural development
-Article 52
3.Technical Centre for Agricultural and Rural Development
-Article 53 (3)
4.Development of fisheries
-Article 62
5.Industrial cooperation
-Article 97 (1) and (2)
6.Development of services
-Article 116
7.Trade development
-Article 136 (5)
8.Regional cooperation
-Article 165
9.Safeguard measures - trade cooperation
-Article 180
10.Stabex
-Article 189 (3)
-Article 196 (2)
-Article 197 (3) and (4)
11.Sysmin
-Article 215 (1)
12.Development finance cooperation
-Article 220 (o)
13.Recurrent cost financing
-Article 227 (2)
14.Allocation of resources
-Article 238
15.Structural adjustment
-Article 246 (3)
16.Micro-projects
-Article 252 (4)
17.Appraisal of projects
-Article 287 (3)
18.Implementation of special measures
-Article 324
-Article 326 (6)
19.Protocol on rules of origin
-Article 30 (2)
-Article 31 (5)
Chapter 2
Landlocked ACP States
Article 332
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.
Article 333
1. The landlocked ACP States are:
>TABLE POSITION>
2. The list of landlocked ACP States may be amended by decision of
the Council of Ministers where a third State in a comparable situation
accedes to this Convention.
Article 334
The provisions laid down pursuant to Article 332 in respect of the
landlocked ACP States are contained in the following Articles.
1. Objectives
- Article 8
2.Agricultural cooperation, food security and rural development
-Article 52
3.Development of fisheries
-Article 62
4.Industrial cooperation
-Article 97 (1)
5.Development of services
-Article 116
6.Trade development
-Article 136 (5)
7.Regional cooperation
-Article 159 (g)
-Article 165
8.Safeguard measures - trade cooperation
-Article 180
9.Stabex
-Article 196 (2)
-Article 197 (4)
10.Sysmin
-Article 215 (1)
11.Allocation of resources
-Article 238
12.Development finance cooperation
-Article 220 (o)
13.Implementation of special measures
-Article 324
-Article 326 (6)
Chapter 3
Island ACP States
Article 335
Specific provisions and measures shall be established to support island
ACP States in their efforts to overcome the natural and geographical difficulties
and other obstacles hampering their development, so as to enable them to
step up their respective rates of development.
Article 336
1. The island ACP States are:
>TABLE POSITION>
2. The list of island ACP States may be amended by a decision of the
Council of Ministers where a third State in a comparable situation accedes
to this Convention.
Article 337
The provisions laid down pursuant to Article 335 in respect of the
island ACP States are contained in the following Articles.
1. Objectives
- Article 8
2.Agricultural cooperation, food security and rural development
-Article 52
3.Development of fisheries
-Article 62
4.Industrial cooperation
-Article 97 (1)
5.Development of services
-Article 116
6.Trade development
-Article 136 (5)
7.Regional cooperation
-Article 165
8.Safeguard measures - trade cooperation
-Article 180
9.Stabex
-Article 196 (2)
-Article 197 (4)
10.Sysmin
-Article 215 (1)
11.Development finance cooperation
-Article 220 (o)
12.Allocation of resources
-Article 238
13.Implementation of special measures
-Article 324
-Article 326 (6)
14.Protocol on rules of origin
-Article 31 (5) PART FOUR
OPERATION OF THE INSTITUTIONS
Chapter 1 The Council of Ministers
Article 338
The Council of Ministers shall act by agreement between the Community
on the one hand and the ACP States on the other.
Article 339
1. The proceedings of the Council of Ministers shall be valid only
if half the members of the Council of the European Communities, one member
of the Commission and two thirds of the members representing the governments
of the ACP States are present.
2. Any member of the Council of Ministers unable to attend may be represented.
The representative shall exercise all the rights of that member.
3. The Council of Ministers shall lay down its rules of procedure.
These rules shall provide for the possibility at each Council meeting of
a thorough examination of major areas of cooperation, if need be after
preparatory work in accordance with Article 342 (6).
Article 340
The office of the President of the Council of Ministers shall be held
alternately by a member of the Council of the European Communities and
a member of the government of an ACP State.
Article 341
1. Meetings of the Council of Ministers shall be called once a year
by its President.
2. The Council of Ministers shall, in addition, meet whenever necessary,
in accordance with the conditions laid down in the rules of procedure.
3. The co-Presidents assisted by advisers may have regular consultations
and exchanges of views between meetings of the Council of Ministers.
Article 342
1. The Council of Ministers shall review periodically the results of
the arrangements under this Convention and shall take such measures as
may be necessary for the attainment of the objectives of this Convention.
The Council of Ministers shall, to that end and at the request of one
of the parties, examine and may take into consideration any resolutions
or recommendations made in that respect by the Joint Assembly.
2. Decisions taken by the Council of Ministers in the cases provided
for by this Convention shall be binding on the Contracting Parties, which
shall take such measures as are necessary to implement those decisions.
3. The Council of Ministers may also formulate such resolutions, declarations,
recommendations or opinions as it may deem necessary to attain the objectives
and to ensure the smooth functioning of this Convention.
4. The Council of Ministers shall publish an annual report and such
other information as it considers appropriate.
5. The Community or the ACP States may raise in the Council of Ministers
any problems arising from the application of this Convention.
6. The Council of Ministers may set up committees or ad hoc working
parties to undertake such activities as it deems necessary, in particular,
to prepare, if appropriate, its deliberation on specific cooperation areas
or problems, in accordance with the provisions of Article 346 (2).
Article 343
Pursuant to Articles 30 (2) (h), and Articles 20, 21 and 22 concerning
decentralized cooperation, the Council of Ministers shall organize contacts
between the relevant organizations in the Community and the ACP States
(decentralized public authorities and unofficial bodies) to examine in
practical terms how and under what conditions their initiatives can be
organized, with a view to contributing to the pursuit of the development
objectives of the ACP States. Which of the abovementioned bodies attend
these meetings will depend on the items on the agenda and the practical
capacity of the bodies concerned to contribute to development objectives
in the areas under discussion.
These contacts shall improve the access of the parties concerned to
information on the development policies conducted by the ACP States and
on ACP-EEC cooperation operations and shall provide for an exchange of
information and discussions on the opportunities for decentralized cooperation
operations.
Article 344
Without prejudice to Article 342 (6), the Council of Ministers may,
at its meetings, delegate the task of preparing its discussions and conclusions
on specific items on the agenda to restricted ministerial working parties
constituted on a basis of parity.
Article 345
The Council of Ministers may delegate to the Committee of Ambassadors
any of its powers. In this event, the Committee of Ambassadors shall take
its decisions in accordance with the conditions laid down in Article 338.
Chapter 2
The Committee of Ambassadors
Article 346
1. The Committee of Ambassadors shall account for its actions to the
Council of Ministers, particularly in matters which have been the subject
of delegation of powers. It shall also submit to the Council of Ministers
any proposals, resolutions, recommendations or opinions which it may deem
necessary or consider appropriate.
2. The Committee of Ambassador shall supervise the work of all the
committees and all other bodies, groups or working parties, whether standing
or ad hoc, established or provided for below ministerial level under this
Convention and submit periodic reports to the Council of Ministers.
3. In the performance of its duties the Committee of Ambassadors shall
meet at least once every six months.
Article 347
1. 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. Any member of the Committee of Ambassadors unable to attend may
be represented. The representative shall exercise all the rights of that
member.
3. The Committee of Ambassadors shall lay down its rules of procedure,
which shall be submitted to the Council of Ministers for approval.
Chapter 3
Provisions common to the Council of Ministers and the Committee of
Ambassadors
Article 348
A representative of the Bank shall be present at meetings of the Council
of Ministers or Committee of Ambassadors when matters from the areas which
concern the Bank are on the agenda.
Article 349
The secretariat duties and other work necessary for the functioning
of the Council of Ministers and the Committee of Ambassadors or other joint
bodies shall be carried out on a basis of parity and in accordance with
the conditions laid down in the rules of procedure of the Council of Ministers.
Chapter 4
The Joint Assembly
Article 350
The Joint Assembly shall consider the annual report drawn up under
Article 342 (4).
It may adopt resolutions on matters concerning or covered by this Convention.
It may, in order to attain the objectives of this Convention, submit
to the Council of Ministers any conclusions and make any recommendations
it considers appropriate, in particular when examining the Council of Ministers'
annual report.
Article 351
1. The Joint Assembly shall appoint its bureau and shall adopt its
own rules of procedure.
2. It shall hold a general session twice a year, alternately in the
Community and in an ACP State.
3. It may set up ad hoc working parties to undertake such specific
preparatory activities as it shall determine.
4. The secretariat duties and other work necessary for the functioning
of the Joint Assembly shall be carried out on the basis of parity and in
accordance with the conditions laid down in its rules of procedure.
Chapter 5
Other provisions
Article 352
1. Any dispute which arises between one or more Member States or the
Community, on the one hand, and one or more ACP States, on the other, concerning
the interpretation or the application of this Convention shall be referred
to the Council of Ministers.
2. Between meetings of the Council of Ministers, such disputes shall
be referred to the Committee of Ambassadors for settlement.
3. If the Committee of Ambassadors fails to settle the dispute, it
shall refer the matter to the Council of Ministers at its next meeting.
4. If the Council of Ministers fails to settle the dispute at that
meeting it may, at the request of either Contracting Party, initiate a
good offices procedure, the result of which shall be transmitted to the
Council in the form of a report at its next meeting.
5. (a) If a settlement of the dispute is not reached, the Council of
Ministers shall initiate an arbitration procedure at the request of either
Contracting Party. Two arbitrators shall be appointed by the parties to
the dispute within 30 days, one by either side as set out in paragraph
1. The two arbitrators in question shall then appoint a third arbitrator
within two mounts. Should the latter not be appointed within the time limit
set, he shall be appointed by the co-President of the Council of Ministers
from among eminent persons providing every guarantee of independence.
(b) The decision of the arbitrators shall be taken by majority vote,
as a general rule within five months.
(c) Each party to the dispute must take the measures required for the
implementation of the arbitrators' decision.
Article 353
The Contracting Parties shall make every endeavour, without prejudice
to the provisions of this Convention, to reach a joint interpretation where
there are differences of opinion between the Community and the ACP States
as to the interpretation of the texts in connection with the application
of this Convention. To this end, such problems shall undergo joint examination
by the institutions with a view to resolving them.
Article 354
The operating expenses of the institutions of this Convention shall
be defrayed in accordance with the terms set out in Protocol 2.
Article 355
The privileges and immunities for the purposes of this Convention shall
be as laid down in Protocol 3.
PART FIVE
FINAL PROVISIONS
Article 356
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 Convention.
Article 357
Subject to the special provisions regarding the relations between the
ACP States and the French overseas departments provided for therein, this
Convention shall apply, on the one hand, to the territories in which the
Treaty is applied and under the conditions laid down in that Treaty and,
on the other hand, to the territories of the ACP States.
Article 358
1. Should a third country wish to accede to the Community, the latter
shall, as soon as it has decided to enter into negotiations on such accession,
inform the ACP States of its decision.
2. The Contracting Parties further agree:
(a) to establish, in the course of accession negotiations, regular
contacts during which:
- the Community shall provide the ACP States with all relevant information
on the progress of the negotiations,
-the ACP States shall inform the Community of their concerns and positions
so that they may be taken fully into account;
(b) to examine without delay, after the conclusion of the accession
negotiations, the effects of such accession on this Convention, and to
engage in negotiations in order to establish a protocol of accession and
adopt the measures of adaptation or transition that may become necessary,
to be annexed to the said protocol, of which they shall constitute an integral
part.
3. Without prejudice to any transitional arrangements that may be adopted,
the Contracting Parties recognize that the provisions of the Convention
do not apply in relations between the ACP States and a new Member State
of the Community as long as the protocol of accession to the Convention
referred to in paragraph 2 (b) has not entered into force.
Article 359
1. (a) As regards the Community, this Convention shall be validly concluded
in accordance with the provision of the EEC and ECSC Treaties; the conclusion
shall be notified to the parties.
(b) This Convention shall be ratified by the Signatory States in conformity
with their respective constitutional requirements.
2. The instruments of ratification and the act of notification of the
conclusion of this Convention shall be deposited, as concerns the ACP States,
with the Secretariat of the Council of the European Communities and, as
concerns the Community and the Member States, with the Secretariat of the
ACP States. The Secretariats shall give notice thereof forthwith to the
Signatory States and the Community.
Article 360
1. This Convention 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 act of notification of the conclusion of this Convention by the
Community.
2. Any ACP State which has not completed the procedures set out in
Article 359 by the date of the entry into force of this Convention as specified
in paragraph 1 may do so only within the 12 months following such entry
into force and shall be able to proceed with these procedures only during
the 12 months following such entry into force, unless before the expiry
of this period it gives notice to the Council of Ministers of its intentions
to complete these procedures not later than six months after this period
on the condition that it undertakes the deposit of its instrument of ratification
within the same time limit.
3. As regards those ACP States which have not completed the procedures
set out in Article 359 by the date of entry into force of this Convention
as specified in paragraph 1, this Convention shall become applicable on
the first day of the second month following the completion of the said
procedures.
4. Signatory ACP States which ratify this Convention in accordance
with the conditions laid down in paragraph 2 shall recognize the validity
of all measures taken in implementation of this Convention between the
date of its entry into force and the date when its provisions become applicable
to them. Subject to any extension which may be granted to them by the Council
of Ministers they shall, not later than six months following the completion
of the procedures referred to in Article 359, carry out all the obligations
which devolve upon them under the terms of this Convention or of implementing
decisions adopted by the Council of Ministers.
5. The rules of procedure of the joint institutions set up under this
Convention shall lay down whether and under what conditions the representatives
of Signatory States which on the date of entry into force of this Convention
have not yet completed the procedures referred to in Article 359 shall
sit in those institutions as observers. The arrangements thus adopted shall
be effective only until the date on which this Convention becomes applicable
to these States; such arrangements shall in any case cease to apply on
the date on which, pursuant to paragraph 2, the State concerned may no
longer ratify this Convention Article 361
1. The Council of Ministers shall be informed of any request by any
State for membership of, or association with, the Community.
2. The Council of Ministers shall be informed of any request made by
any State wishing to become a member of an economic grouping composed of
ACP States.
Article 362
1. Any request for accession to this Convention by a country or territory
to which Part Four of the Treaty applies, and which becomes independent,
shall be referred to the Council of Ministers.
2. With the approval of the Council of Ministers, the country in question
shall accede to this Convention by depositing an instrument of accession
with the Secretariat of the Council of the European Communities, which
shall transmit a certified copy to the Secretariat of the ACP States and
shall give notice thereof to the Signatory States.
3. That country shall then enjoy the same rights and be subject to
the same obligations as the ACP States. Such accession shall not adversely
affect the advantages accruing to the ACP States signatory to this Convention
from the provisions on development finance cooperation and on the stabilization
of export earnings.
Article 363
1. Any request for accession to this Convention submitted by a State
whose economic structure and production are comparable with those of the
ACP States shall require approval by the Council of Ministers. The State
concerned may accede to this Convention by concluding an agreement with
the Community.
2. That State shall then enjoy the same rights and be subject to the
same obligations as the ACP States.
3. The agreement may, however, stipulate the date on which certain
of those rights and obligations shall become applicable to that State.
4. Such accession shall not, however, adversely affect the advantages
accruing to the ACP States signatory to this Convention under the provisions
on development finance cooperation, the stabilization of export earnings
and industrial cooperation.
Article 364
If Namibia, on becoming independent, requests accession to the Convention
and its request is received after the actual process for the ratification
of the Convention has begun but before its entry into force, the Council
of Ministers shall act on the request and take a decision on the accession
of that State. At the same time it shall also take any necessary decision
regarding that State in areas falling under Part Three, Titles I and IV
of the Convention and the Annexes to the Final Act regarding these parts
of the Convention, including beef.
In the event of a positive decision, Namibia will be added to the States
Signatory to the Convention, particularly as regards the ratification and
entry into force thereof.
Article 365
As from the entry into force of this Convention, the powers conferred
upon the Council of Ministers by the third ACP-EEC Convention shall be
exercised, insofar as is necessary and in compliance with the relevant
provisions of the said Convention, by the Council of Ministers set up by
this Convention.
Article 366
1. This Convention is hereby concluded for a period of 10 years, commencing
on 1 March 1990.
2. 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 the first five-year period of any review of the provisions
they desire to make with a view to a possible amendment of the Convention.
Notwithstanding this time limit, if one Party requests the review of any
provisions of the Convention, 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.
Ten months before the expiry of this five-year period, the Contracting
Parties shall enter into negotiations with a view to examining any possible
amendments to the provisions that were the subject of the notification.
Articles 359 and 360 on the conclusion, ratification and entry into
force of the Convention shall also apply to amendments thus made to the
Convention.
The Council of Ministers shall adopt any transitional measures that
may be required in respect of the amended provisions until they come into
force.
3. 18 months before the end of the total period of the Convention,
the Contracting Parties shall enter into negotiations in order to examine
what provisions shall subsequently govern relations between the Community
and the Member States, on the one hand, and the ACP States, on the other.
The Council of Ministers shall adopt any transitional measures that
may be required until the new Convention comes into force.
Article 367
This Convention may be denounced by the Community in respect of each
ACP State and by each ACP State in respect of the Community, upon six months'
notice.
Article 368
The Protocols annexed to this Convention shall form an integral part
thereof.
Article 369
This Convention, drawn up in two copies in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese and Spanish languages, all texts
being equally authentic, shall be deposited in the archives of the General
Secretariat of the Council of the European Communities and the Secretariat
of the ACP States, which shall both transmit a certified copy to the government
of each of the Signatory States.
En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el
presente Convenio.
Til bekræftelse heraf har undertegnede befuldmægtigede
underskrevet denne konvention.
Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre
Unterschriften unter dieses Übereinkommen gesetzt.
Åéò ðßóôùóç
ôùí áíùôÝñù,
ïé õðïãåãñáììÝíïé
ðëçñåîïýóéïé
Ýèåóáí ôéò
õðïãñáöÝò ôïõò
óôçí ðáñïýóá
óýìâáóç.
In witness whereof the undersigned Plenipotentiaries have signed this
Convention.
En foi de quoi, les plénipotentiaires soussignés ont
apposé leurs signatures au bas de la présente convention.
In fede di che, i plenipotenziari sottoscritti hanno apposto le loro
firme in calce alla presente convenzione.
Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening
onder dit Verdrag hebben gesteld.
Em fé do que, os plenipotenciários abaixo assinados apuseram
as suas assinaturas no final da presente convenção.
Hecho en Lomé, el quince de diciembre de mil novecientos ochenta
y nueve.
Udfærdiget i Lomé, den femtende december nitten hundrede
og niogfirs.
Geschehen zu Lome am fünfzehnten Dezember neunzehnhundertneunundachtzig.
¸ãéíå óôç ËïìÝ,
óôéò äåêáðÝíôå
Äåêåìâñßïõ
÷ßëéá åííéáêüóéá
ïãäüíôá åííÝá.
Done at Lomé on the fifteenth day of December in the year one
thousand nine hundred and eighty-nine.
Fait à Lomé, le quinze décembre mil neuf cent
quatre-vingt-neuf.
Fatto a Lomé, addì quindici dicembre millenovecentottantanove.
Gedaan te Lomé, de vijftiende december negentienhonderd negenentachtig.
Feito em Lomé, em quinze de Dezembro de mil novecentos e oitenta
e nove.
Pour Sa Majesté le roi des Belges
Voor Zijne Majesteit de Koning der Belgen
>REFERENCE TO A FILM>
For Hendes Majestæt Dronningen af Danmark
>REFERENCE TO A FILM>
Für den Präsidenten der Bundesrepublik Deutschland
>REFERENCE TO A FILM>
Ãéá ôïí Ðñüåäñï
ôçò ÅëëçíéêÞò
Äçìïêñáôßáò
>REFERENCE TO A FILM>
Por su Majestad el Rey de España
>REFERENCE TO A FILM>
Pour le président de la République française
>REFERENCE TO A FILM>
For the President of Ireland
>REFERENCE TO A FILM>
Per il Presidente della Repubblica italiana
>REFERENCE TO A FILM>
Pour Son Altesse Royale le grand-duc de Luxembourg
>REFERENCE TO A FILM>
Voor Hare Majesteit de Koningin der Nederlanden
>REFERENCE TO A FILM>
Pelo Presidente da República Portuguesa
>REFERENCE TO A FILM>
For Her Majesty the Queen of the United Kingdom of Great Britain and
Northern Ireland
>REFERENCE TO A FILM>
Por el Consejo y la Comisión de las Comunidades Europeas
For Rådet og Kommissionen for De Europæiske Fællesskaber
Für den Rat und die Kommission der Europäischen Gemeinschaften
Ãéá ôï Óõìâïýëéï
êáé ôçí ÅðéôñïðÞ
ôùí Åõñùðáúêþí
ÊïéíïôÞôùí
For the Council and the Commission of the European Communities
Pour le Conseil et la Commission des Communautés européennes
Per il Consiglio e la Commissione delle Comunità europee
Voor de Raad en de Commissie van de Europese Gemeenschappen
Pelo Conselho e pela Comissão das Comunidades Europeias
>REFERENCE TO A FILM>
Pour le président de la république populaire d'Angola
>REFERENCE TO A FILM>
For Her Majesty the Queen of Antigua and Barbuda
>REFERENCE TO A FILM>
For the Head of State of the Bahamas
>REFERENCE TO A FILM>
For the Head of State of Barbados
>REFERENCE TO A FILM>
For Her Majesty the Queen of Belize
>REFERENCE TO A FILM>
Pour le président de la république populaire du Bénin
>REFERENCE TO A FILM>
For the President of the Republic of Botswana
>REFERENCE TO A FILM>
Pour le président du front populaire, chef de l'État,
chef du gouvernement du Burkina Faso
>REFERENCE TO A FILM>
Pour le président de la république du Burundi
>REFERENCE TO A FILM>
Pour le président de la république du Cameroun
>REFERENCE TO A FILM>
For the President of the Republic of Cabo Verde
>REFERENCE TO A FILM>
Pour le président de la République centrafricaine
>REFERENCE TO A FILM>
Pour le président de la république fédérale
islamique des Comores
>REFERENCE TO A FILM>
Pour le président de la république populaire du Congo
>REFERENCE TO A FILM>
Pour le président de la république de Côte-d'Ivoire
>REFERENCE TO A FILM>
Pour le président de la république de Djibouti
>REFERENCE TO A FILM>
For the Government of the Commonwealth of Dominica
>REFERENCE TO A FILM>
Pour le président de la République dominicaine
>REFERENCE TO A FILM>
For the President of the People's Democratic Republic of Ethiopia
>REFERENCE TO A FILM>
For the President of the Republic of Fiji
>REFERENCE TO A FILM>
Pour le président de la République gabonaise
>REFERENCE TO A FILM>
For the President of the Republic of the Gambia
>REFERENCE TO A FILM>
For the Head of State and Chairman of the Provisional National Defence
Council of the Republic of Ghana
>REFERENCE TO A FILM>
For Her Majesty the Queen of Grenada
>REFERENCE TO A FILM>
Pour le président de la république de Guinée
>REFERENCE TO A FILM>
Pour le président du conseil d'État de la Guinée-Bissau
>REFERENCE TO A FILM>
Pour le président de la république de Guinée équatoriale
>REFERENCE TO A FILM>
For the President of the Cooperative Republic of Guyana
>REFERENCE TO A FILM>
Pour le président de la république d'Haïti
>REFERENCE TO A FILM>
For the Head of State of Jamaica
>REFERENCE TO A FILM>
For the President of the Republic of Kenya
>REFERENCE TO A FILM>
For the President of the Republic of Kiribati
>REFERENCE TO A FILM>
For His Majesty the King of the Kingdom of Lesotho
>REFERENCE TO A FILM>
For the President of the Republic of Liberia
>REFERENCE TO A FILM>
Pour le président de la république démocratique
de Madagascar
>REFERENCE TO A FILM>
For the President of the Republic of Malawi
>REFERENCE TO A FILM>
Pour le président de la république du Mali
>REFERENCE TO A FILM>
Pour le président du comité militaire de salut national,
chef d'État de la république islamique de Mauritanie
>REFERENCE TO A FILM>
Pour Sa Majesté la reine de l'Île Maurice
>REFERENCE TO A FILM>
For the President of the People's Republic of Mozambique
>REFERENCE TO A FILM>
Pour le président du conseil militaire suprême,
chef de l'État du Niger
>REFERENCE TO A FILM>
For the Head of the Federal Government of Nigeria
>REFERENCE TO A FILM>
For Her Majesty the Queen of Papua New Guinea
>REFERENCE TO A FILM>
Pour le président de la République rwandaise
>REFERENCE TO A FILM>
For Her Majesty the Queen of St Christopher and Nevis
>REFERENCE TO A FILM>
For Her Majesty the Queen of Saint Lucia
>REFERENCE TO A FILM>
For Her Majesty the Queen of Saint Vincent and the Grenadines
>REFERENCE TO A FILM>
For the Head of State of Western Samoa
>REFERENCE TO A FILM>
For the President of the Democratic Republic of São Tomé
and Príncipe
>REFERENCE TO A FILM>
Pour le président de la république du Sénégal
>REFERENCE TO A FILM>
Pour le président de la république des Seychelles
>REFERENCE TO A FILM>
For the President of the Republic of Sierra Leone
>REFERENCE TO A FILM>
For Her Majesty the Queen of Solomon Islands
>REFERENCE TO A FILM>
For the President of the Somali Democratic Republic
>REFERENCE TO A FILM>
For the President of the Republic of the Sudan
>REFERENCE TO A FILM>
For the President of the Republic of Suriname
>REFERENCE TO A FILM>
For His Majesty the King of the Kingdom of Swaziland
>REFERENCE TO A FILM>
For the President of the United Republic of Tanzania
>REFERENCE TO A FILM>
Pour le président de la république du Tchad
>REFERENCE TO A FILM>
Pour le président de la République togolaise
>REFERENCE TO A FILM>
For His Majesty King Taufa'ahau Tupou IV of Tonga
>REFERENCE TO A FILM>
For the President of the Republic of Trinidad and Tobago
>REFERENCE TO A FILM>
For Her Majesty the Queen of Tuvalu
>REFERENCE TO A FILM>
For the President of the Republic of Uganda
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For the Government of the Republic of Vanuatu
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Pour le président de la république du Zaïre
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For the President of the Republic of Zambia
>REFERENCE TO A FILM>
For the President of the Republic of Zimbabwe
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FINANCIAL PROTOCOL
Article 1
1. For the purposes set out in Part Three, Title III of the Convention
on development finance cooperation, and for a period of five years commencing
on 1 March 1990, the overall amount of the Community's financial assistance
to be made available shall be ECU 12 000 million.
This amount shall comprise:
(a) ECU 10 800 million from the Fund, allocated as follows:
(i) for the purposes set out in Articles 220, 221 and 224: ECU 7 995
million in the form of grants, including ECU 1 150 million for structural
adjustment support, which can be complemented, in accordance with Article
281 (2) (e), as part of long-term development assistance;
(ii) for the purpose set out in Articles 220, 221 and 224: ECU 825
million in the form of risk capital;
(iii) for the purposes set out in Articles 186 to 212: ECU 1 500 million
in the form of grant for the stabilization of export earnings;
(iv) for the purposes set out in Articles 214 to 219: ECU 480 million
in the form of grants under the Sysmin scheme;
(b) for the purposes set out in Articles 220, 221 and 224: up to ECU
1 200 million from the Bank in the form of loans on its own resources in
accordance with the terms and conditions provided for by its statute. These
loans shall be subject to the provisions of Article 235 of the Convention
relating to interest rate subsidies. 2. The Bank shall administer the loans
on its own resources, including interest subsidies, as well as risk capital.
All other resources of the Convention shall be administered by the Commission.
Article 2
For the financing of the assistance referred to in Articles 254 and
255:
(a) a special appropriation of ECU 350 million shall be constituted
within the funds referred to in Article 1 (a) (i), of which ECU 250 million
shall be for the assistance referred to in Article 254 and ECU 100 million
for the assistance referred to in Article 255;
(b) should the appropriations provided for under one of the aforementioned
Articles be used before this Financial Protocol expires, transfers may
be made from the appropriations provided for in the other Article;
(c) on the expiry of the Financial Protocol, appropriations not committed
for emergency assistance or aid for refugees, returnees and displaced persons
shall be paid back to the assets of the Fund for the purpose of financing
other operations coming within the scope of development finance cooperation,
save as otherwise decided by the Council of Ministers;
(d) should the special appropriations be used before the Financial
Protocol expires, the ACP States and the Community, within the relevant
joint institutions, shall adopt appropriate measures to deal with the situations
referred to in Articles 254 and 255.
Article 3
1. Of the overall financial resources made available under Article
1, an amount of ECU 1 250 million shall be reserved for the financing of
the regional projects and programmes of the ACP States.
2. From the resources earmarked under this Article, the Community shall
contribute:
(i) to the financing of the budget of the Centre for the Development
of Industry by means of a separate allocation of a maximum of ECU 60 million;
(ii) an amount not exceeding ECU 3 million for the purposes referred
to in Annex LXVIII;
(iii) an indicative amount of ECU 70 million for the financing of regional
programmes pertaining to trade development as foreseen in Article 138.
Article 4
A new Financial Protocol shall be concluded for the second five-year
period covered by this Convention.
PROTOCOL No 1
concerning the definition of the concept of 'originating products'
and methods of administrative cooperation
TITLE I
DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS'
Article 1
Origin criteria
For the purpose of implementing the trade cooperation provisions of
the Convention, a product shall be considered to be originating in the
ACP States if it has been either wholly obtained or sufficiently worked
or processed in the ACP States.
Article 2
Wholly obtained products
1. The following shall be sondidered as wholly obtained either in the
ACP States, or in the Community, or in the countries and territories defined
in Annex III, hereinafter referred to as the 'OCT':
(a) mineral products extracted from their soil or from their seabed;
(b) vegetable products harvested therein;
(c) live animals born and raised therein;
(d) products from live animals raised therein;
(e) products obtained by hunting or fishing conducted therein;
(f) products of sea fishing and other products taken from the sea by
their vessels;
(g) products made aboard their factory ships exclusively from products
referred to in subparagraph (f);
(h) used articles collected there fit only for the recovery of raw
materials;
(i) waste and scrap resulting from manufacturing operations conducted
therein;
(j) goods produced there exclusively from the products specified in
subparagraphs (a) to (i).
2. The term 'their vessels' in paragraph 1 (f) shall apply only to
vessels:
- which are registered or recorded in a Member State, in an ACP State,
or in an OCT,
-which sail under the flag of a Member State, of an ACP State, or of
an OCT,
-which are owned to an extent of at least 50 % by nationals of States
party to the Convention, or of an OCT, or by a company with its head office
in one of these States or OCT, of which the manager or managers, chairman
of the board of directors or the supervisory board, and the majority of
the members of such boards, are nationals of States party to the Convention
or of an OCT and of which, in addition in the case of partnerships or limited
companies, at least half the capital belongs to States party to the Convention
or to public bodies or nationals of such States, or of an OCT,
-of which at least 50 % of the crew, master and officers included,
are nationals of States party to the Convention, or of an OCT.
3. Notwithstanding the provisions of paragraph 2, where an ACP State
offers the Community the opportunity to negotiate a fisheries agreement
and the Community does not accept this offer, the ACP State concerned may
charter or lease third country vessels to undertake fisheries activities
in its exclusive economic zone and request that such vessels be treated
as 'their vessels' under the provisions of this Article.
The Community will recognize vessels chartered or leased by the ACP
State as 'their vessels' under the following conditions:
- that the Community has not availed itself of the opportunity to negotiate
a fisheries agreement with the ACP State concerned,
-that at least 50 % of the crew, master and officers included, are
nationals of States party to the Convention, or of an OCT,
-that the charter or lease contract has been accepted by the Commission
as providing adequate opportunities for developing the capacity of the
ACP State to fish on its own account and in particular as conferring on
the ACP State the responsibility for the nautical and commercial management
of the vessel placed at its disposal for a significant period of time.
4. The terms 'ACP State', 'the Community' and 'OCT' shall also cover
their territorial waters.
Sea-going vessels, including factory ships, on which the fish caught
is worked or processed shall be considered as part of the territory of
the ACP States, the Community or the OCT to which they belong, provided
that they satisfy the conditions set out in paragraph 2.
Article 3
Sufficiently processed products
1. For the purposes of Article 1, non-originating materials are considered
to be sufficiently worked or processed when the product obtained is classified
in a heading which is different from those in which all the non-originating
materials used in its manufacture are classified, subject to paragraphs
2 and 3.
The expressions 'chapters' and 'headings' used in this Protocol shall
mean the chapters and the headings (four-digit codes) used in the nomenclature
which makes up the Harmonized Commodity Description and Coding System (hereinafter
referred to as 'the harmonized system').
The expression 'classified' shall refer to the classification of a
product or material under a particular heading.
2. For a product mentioned in columns 1 and 2 of the list in Annex
II, the conditions set out in column 3 for the product concerned must be
fulfilled instead of the rule in paragraph 1.
(a) Where in the list in Annex II a percentage rule is applied in determining
the originating status of a product obtained in an ACP State, the value
added by the working or processing shall correspond to the ex-works price
of the product obtained, less the customs value of third-country materials
imported into the Community, the ACP States or the OCT.
(b) The term 'value' in the list in Annex II shall mean the customs
value at the time of the import of the non-originating materials used or,
if this is not known and cannot be ascertained, the first ascertainable
price paid for the materials in the territory concerned.
Where the value of the originating materials used needs to be established,
the first subparagraph of (b) shall be applied mutatis mutandis.
(c) The term 'ex-works price' in the list in Annex II shall mean the
price paid for the product obtained to the manufacturer in whose undertaking
the last working or processing is carried out, provided the price includes
the value of all the materials used in manufacture, minus any internal
taxes which are, or may be repaid when the product obtained is exported.
(d)'Customs value' shall be understood as meaning the customs value
laid down in the Convention concerning the valuation of goods for customs
purposes signed in Brussels on 15 December 1950. 3. For the purpose of
implementing paragraphs 1 and 2 the following shall be considered as insufficient
working or processing to confer the status of originating products, whether
or not there is a change of heading:
(a) operations to ensure the preservation of products in good condition
during transport and storage (ventilation, spreading out, drying, chilling,
placing in salt, sulphur dioxide or other aqueous solutions, removal of
damaged parts, and like operations);
(b) simple operations consisting of removal of dust, sifting or screening,
sorting, classifying, matching (including the making-up of sets of articles,
washing, painting, cutting up);
(c) (i) changes of packaging and breaking up and assembly of consignments;
(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing
on cards or boards etc., and all other simple packaging operations;
(d) affixing marks, labels and other like distinguishing signs on products
or their packaging;
(e) (i) simple mixing of products of the same kind where one or more
components of the mixture do not meet the conditions laid down in this
Protocol to enable them to be considered as originating either in an ACP
State, in the Community or in the OCT;
(ii) simple mixing of products of different kinds unless one or more
components of the mixture meet the conditions laid down in this Protocol
to enable them to be considered as originating either in an ACP State,
in the Community, or in the OCT and provided that such components contribute
in determining the essential characteristics of the finished product;
(f) simple assembly of parts of articles to constitute a complete article;
(g) a combination of two or more operations specified in subparagraphs
(a) to (f);
(h) slaughter of animals.
Article 4
Neutral elements
In order to determine whether goods originate in an ACP State, the
Comunity or one of the OCT, it shall not be necessary to establish whether
the electrical power, fuel, plant and equipment and machines and tools
used to obtain such goods or whether any materials or products used in
the course of production which do not enter and which were not intended
to enter into the final composition of the goods originate in third countries
or not.
Article 5
Value tolerance
Notwithstanding the provisions of Article 3 (1) and (2), non-originating
materials may be used in the manufacture of a given product, provided their
total value does not exceed 10 % of ex-works price of the final product
and subject to the conditions laid down in Note 4.4 in Annex I.
Article 6
Cumulation
1. For the purpose of implementing this Title, the ACP States shall
be considered as being one territory.
2. When products wholly obtained in the Community or in the OCT undergo
working or processing in the ACP States, they shall be considered as having
been wholly obtained in the ACP States.
3. Working and processing carried out in the Community or in the OCT
shall be considered as having been carried out in the ACP States, when
the materials undergo working or processing in the ACP States.
4. Paragraphs 2 and 3 apply to any working or processing carried out
in the ACP States, including the operations listed in Article 3 (3).
Article 7
Allocation of origin
Originating products made up of materials wholly obtained or sufficiently
processed in two or more ACP States shall be considered as products originating
in the ACP State where the last working or processing took place, provided
this working or processing exceeded the insufficient operations listed
in Article 3 (3) (a), (b), (c) and (d) or a combination thereof.
Article 8
Accessories, spare parts and tools
Accessories, spare parts and tools dispatched with a piece of equipment,
machine, apparatus or vehicle which are part of the normal equipment and
included in the price thereof or are not separately invoiced are regarded
as one with the piece of equipment, machine, apparatus or vehicle in question.
Article 9
Sets
Sets, as defined in General Rule 3 of the harmonized system, shall
be regarded as originating when all component articles are originating
products. Nevertheless, when a set is composed of originating and non-originating
articles, the set as a whole shall be regarded as originating provided
that the value of the non-originating articles does not exceed 15 % of
ex-works price of the set.
Article 10
Direct transport
1. The preferential treatment provided for under the trade cooperation
provisions of the Convention applies only to products or materials which
are transported between the territory of the ACP States, of the Community
or of the OCT without entering any other territory. However, goods constituting
one single consignment may be transported through territory other than
that of the ACP States or the Community or the OCT, with, should the occasion
arise, transhipment or temporary warehousing in such territory, provided
that the goods have remained under the surveillance of the customs authorities
in the country of transit or of warehousing and that they have not undergone
operations other than unloading, reloading or any operation designed to
preserve them in good condition.
2. Evidence that the conditions referred to in paragraph 1 have been
fulfilled shall be supplied to the responsible customs authorities by the
production of:
(a) a through bill of lading issued in the exporting beneficiary country
covering the passage through the country of transit;
(b) or a certificate issued by the customs authorities of the country
of transit:
- giving an exact description of the goods,
-stating the dates of unloading and reloading of the goods or of their
embarkation or disembarkation, identifying the ships used,
-certifying the conditions under which the goods remained in the transit
country;
(c) or failing these, any substantiating documents.
Article 11
Territorial requirement
The conditions set out in this Title relative to the acquisition of
originating status must be fulfilled without interruption in the Community,
the ACP States or the OCT.
If originating goods exported from the Community, the ACP States or
the OCT to another country are returned, they must be considered as non-originating
unless it can be demonstrated to the satisfaction of the customs authorities
that:
- the goods returned are the same goods as those exported, and
-they have not undergone any operation beyond that necessary to preserve
them in good condition while in that country or while being exported. TITLE
II
PROOF OF ORIGIN
Article 12
Movement certificate EUR. 1
1. Evidence of originating status of products, within the meaning of
this Protocol, shall be given by a movement certificate EUR. 1, a specimen
of which appears in Annex IV to this Protocol.
2. A movement certificate EUR. 1 may be issued only where it can serve
as the documentary evidence required for the purpose of implementing the
Convention.
3. A movement certificate EUR. 1 shall be issued only on application
having been made in writing by the exporter. Such application shall be
made on a form, a specimen of which appears in Annex IV to this Protocol,
which shall be completed in accordance with this Protocol.
Applications for movement certificates EUR. 1 must be preserved for
at least three years by customs authorities of the exporting country.
4. Under the responsibility of the exporter, he or his authorized representative
shall request the issue of a movement certificate EUR. 1.
5. The exporter or his representative shall submit with his request
any appropriate supporting document proving that the products to be exported
are such as to qualify for the issue of a movement certificate EUR. 1.
6. The movement certificate EUR. 1 shall be issued by the customs authorities
of the exporting ACP State, if the goods can be considered 'originating
products' within the meaning of this Protocol.
7. For the purpose of verifying whether the conditions stated in paragraph
6 have been met, the customs authorities shall have the right to call for
any documentary evidence or to carry out any check which they consider
appropriate.
8. It shall be the responsibility of the customs authorities of the
exporting State to ensure that the forms referred to in paragraph 1 are
duly completed. In particular, they shall check whether the space reserved
for the description of the products has been completed in such a manner
as to exclude all possibility of fraudulent additions. To this end, the
description of the products must be indicated without leaving any blank
lines. Where the space is not completely filled a horizontal line must
be drawn below the last line of the description, the empty space being
crossed through.
9. The date of issue of the movement certificate must be indicated
in the part of the certificate reserved for the customs authorities.
10. A movement certificate EUR. 1 shall be issued by the customs authorities
of the exporting ACP State when the products to which it relates are exported.
It shall be made available to the exporter as soon as actual export has
been effected or ensured.
Article 13
Issue of EUR. 1 retrospectively
1. In exceptional circumstances a movement certificate EUR. 1 may also
be issued after export of the products to which it relates if it was not
issued at the time of export because of errors or involuntary omissions
or special circumstances.
2. For the implementation of paragraph 1, the exporter must in the
application:
- indicate the place and date of export of the products to which the
certificate relates,
-certify that no movement certificate EUR. 1 was issued at the time
of export of the products in question, and state the reasons. 3. The customs
authorities may issue a movement certificate EUR. 1 retrospectively only
after verifying that the information supplied in the exporter's application
agrees with that in the corresponding file.
Certificates issued retrospectively must be endorsed with one of the
following phrases: 'EXPEDIDO A POSTERIORI', 'UDSTEDT EFTERFØLGENDE',
'NACHTRÄGLICH AUSGESTELLT', 'ÅÊÄÏÈÅÍ
ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ',
'ISSUED RETROSPECTIVELY', 'DELIVRÉ A POSTERIORI', 'RILASCIATO A
POSTERIORI', 'AFGEGEVEN A POSTERIORI', 'EMITIDO A POSTERIORI'.
Article 14
Issue of a duplicate EUR. 1
In the event of the theft, loss or destruction of a movement certificate
EUR. 1, the exporter may apply to the customs authorities which issued
it for a duplicate made out on the basis of the export documents in their
possession.
The duplicate issued in this way must be endorsed with one of the following
words: 'DUPLICADO', 'DUPLIKAT', 'DUPLIKAT', 'ÁÍÔÉÃÑÁÖÏ',
'DUPLICATE', 'DUPLICATA', 'DUPLICATO', 'DUPLICAAT', 'SEGUNDA VIA'.
Article 15
Replacement of certificates
It shall at any time be possible to replace one or more movement certificates
EUR. 1 by one or more other movement certificates EUR. 1 provided that
this is done at the customs office where the goods are located.
Article 16
Validity of movement certificates EUR. 1
1. A movement certificate EUR. 1 must be submitted, within 10 months
of the date of issue by the customs authorities of the exporting ACP State,
to the customs authorities of the importing State where the products are
entered.
2. A movement certificate EUR. 1 which is submitted to the customs
authorities of the importing State after the final date of presentation
specified in paragraph 1 may be accepted for the purpose of applying preferential
treatment, where the failure to submit the certificate by the final date
set is due to reasons of force majeure or exceptional circumstances.
3. In other cases of belated presentation, the customs authorities
of the importing State may accept the certificates where the products have
been submitted to them before the said final date.
Article 17
Transit procedure
When the products enter an ACP State or OCT other than the country
of origin, a further period of validity of 10 months shall commence on
the date on which the customs authorities in the country of transit enter
the following in box 7 of the certificate EUR. 1:
- the word 'transit',
-the name of the country of transit,
-the official stamp, a specimen of which had been made available to
the Commission, in conformity with Article 25,
-the date of the endorsements.
Article 18
Exhibitions
1. Products sent from an ACP State for exhibition in a country other
than an ACP State, a Member State or an OCT and sold after the exhibition
for importation into the Community shall benefit on importation from the
provisions of the Convention on condition that the products meet the requirements
of this Protocol entitling them to be recognized as originating in an ACP
State and provided that it is shown to the satisfaction of the customs
authorities of the importing State that:
(a) an exporter has consigned these products from an ACP State to the
country in which the exhibition is held and has exhibited them there;
(b) the products have been sold or otherwise disposed of by that exporter
to someone in the Community;
(c) the products have been consigned during the exhibition or immediately
thereafter to the Community in the state in which they were sent for exhibition;
(d) the products have not, since they were consigned for exhibition,
been used for any purpose other than demonstration at the exhibition. 2.
A movement certificate EUR. 1 must be produced to the customs authorities
in the normal manner. The name and address of the exhibition must be indicated
thereon. Where necessary, additional documentary evidence of the nature
of the products and the conditions under which they have been exhibited
may be required.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or
crafts exhibition, fair or similar public show or display which is not
organized for private purposes in shops or business premises with a view
to the sale of foreign products, and during which the products remain under
customs control.
Article 19
Submission of certificates
Movement certificates EUR. 1 shall be submitted to customs authorities
in the importing State, in accordance with the procedures laid down by
that State. The said authorities may require a translation of a certificate.
They may also require the import declaration to be accompanied by a statement
from the importer to the effect that the products meet the conditions required
for the implementation of the Convention.
Article 20
Importation by instalments
Where, at the request of the person declaring the goods at the customs,
a dismantled or non-assembled article falling within Chapter 84 or 85 of
the harmonized system is imported by instalments on the conditions laid
down by the competent authorities, it shall be considered to be a single
article and a movement certificate may be submitted for the whole article
upon import of the first instalment.
Article 21
Form EUR. 2
1. Notwithstanding Article 12, the evidence of originating status,
within the meaning of this Protocol, of products which form the subject
of postal consignments (including parcels), provided that they consist
only of originating products and that the value does not exceed ECU 2 820
per consignment, is given by a form EUR. 2, of which a specimen appears
in Annex V to this Protocol, which shall be completed by the exporter.
2. Up to and including 30 April 1991 the ecu to be used in any given
national currency of a Member State of the Community shall be the equivalent
in that national currency of the ecu as at 1 October 1988. For each successive
period of two years it shall be the equivalent in that national currency
of the ecu as at the first working day in October in the year immediately
preceding that two-year period.
3. Revised amounts replacing the amounts expressed in ecus above and
in Article 22 (2) may be introduced by the Community at the beginning of
any successive two-year period if necessary and shall be notified by the
Community to the Customs Cooperation Committee not later than one month
before they shall come into force. These amounts shall be, in any event,
such as to ensure that the value of the limits as expressed in the currency
of any Member State shall not decline.
4. If the products are invoiced in the currency of another Member State
of the Community, the importing State shall recognize the amount notified
by the State concerned.
5. A form EUR. 2 shall be completed for each postal consignment. After
completing and signing the form, the exporter shall, in the case of consignments
by parcel post, attach the form to the dispatch note. In the case of consignment
by letter post, the exporter shall insert the form inside the package.
6. These provisions do not exempt exporters from complying with any
other formalities required by customs or postal regulations.
Article 22
Exemptions from proof of origin
1. Products sent as small packages to private persons or forming part
of travellers' personal luggage shall be admitted as originating products
without requiring the production of a movement certificate EUR. 1 or the
completion of form EUR. 2, provided that such products are not imported
by way of trade and have been declared as meeting the conditions required
for the application of these provisions, and where there is no doubt as
to the veracity of such declaration.
2. Imports which are occasional and consist solely of products for
the personal use of the recipients or travellers or their families shall
not be considered as imports by way of trade if it is evident from the
nature and quantity of the products that no commercial purpose is in view.
Furthermore, the total value of these products must not exceed ECU
200 in the case of small packages or ECU 565 in the case of the contents
of travellers' personal luggage.
Article 23
Information procedure for cumulation purposes
1. When Article 6 is applied, for the issue of a movement certificate
EUR. 1, the competent customs office in the ACP State requested to issue
the certificate for products in the manufacture of which materials coming
from other ACP States, the Community or the OCT are used, shall take into
consideration the declaration, a specimen of which appears in Annex VI
A or B, given by the exporter in the State or OCT from which it came, either
on the commercial invoice applicable to these materials, or on a supporting
document to that invoice.
2. A separate supplier's declaration shall be given by the supplier
for each consignment of materials on the commercial invoice related to
that shipment or in an annex to that invoice, or on a delivery note or
other commercial document related to that shipment which describes the
materials concerned in sufficient detail to enable them to be identified.
3. For materials having obtained preferential originating status, the
suppliers' declarations shall be given in the form prescribed in Annex
VI A.
4. For materials which have undergone working or processing in the
ACP States, the OCT or the Community without having obtained preferential
originating status, the suppliers' declarations shall be given in the form
prescribed in Annex VI B.
5. The supplier's declaration may be made out on a pre-printed form.
6. The suppliers' declaration shall be signed in manuscript. However,
where the invoice and the supplier's declaration are established using
electronic data-processing methods, the supplier's declaration need not
be signed in manuscript provided the responsible official in the supplying
company is identified to the satisfaction of the customs authorities in
the State where the suppliers' declarations are established. The said customs
authorities may lay down conditions for the implementation of this paragraph.
7. Suppliers' declarations made and information certificates issued
before the date of entry into force of this Protocol in accordance with
Articles 20 and 21 of Protocol 1 to the Third ACP-EEC Convention shall
remain valid.
Article 24
Discrepancies
The discovery of slight discrepancies between the statements made in
the movement certificate EUR. 1, in the form EUR. 2 or in the layout of
the supplier's declaration referred to in Article 23 and those made in
the documents submitted to the customs office for the purpose of carrying
out the formalities for importing the materials shall not ipso facto render
the document null and void if it is duly established that movement certificate
EUR. 1, the form EUR. 2 or the suppliers' declaration does correspond to
the goods submitted.
TITLE III
METHODS OF ADMINISTRATIVE COOPERATION
Article 25
Communication of stamps
The ACP States shall send to the Commission specimens of the stamps
used together with the addresses of the customs authorities competent to
issue movement certificates EUR. 1 and carry out the subsequent verification
of movement certificates EUR. 1 and forms EUR. 2.
Movement certificates EUR. 1 and forms EUR. 2 shall be accepted for
the purpose of applying preferential treatment from the date the information
is received by the Commission.
The Commission shall send this information to the customs authorities
of the Member States.
Movement certificates EUR. 1 and forms EUR. 2 presented to the customs
authorities of the importing State before this date shall be accepted in
conformity with the Community legislation.
Article 26
Verification of movement certificates EUR. 1 and of forms EUR. 2
1. Susequent verification of movement certificates EUR. 1 and of forms
EUR. 2 shall be carried out at random or whenever the customs authorities
of the importing State have reasonable doubts as to the authenticity of
the document or the accuracy of the information regarding the true origin
of the products in question.
2. In order to ensure the proper application of this Protocol, the
Member States, the OCT and the ACP States shall assist each other, through
their respective customs administrations, in checking the authenticity
of movement certificates EUR. 1 and the accuracy of the information concerning
the actual origin of the products concerned and the declarations by exporters
on forms EUR. 2 and the authenticity and accuracy of the information certificates
referred to in Article 27 (2).
The authorities consulted shall furnish the relevant information concerning
the conditions under which the product has been made, indicating especially
the conditions in which the rules of origin have been respected in the
various ACP States, Member States or OCT concerned.
3. If the customs authorities of the importing State decide to suspend
execution of the provisions of the Convention while awaiting the results
of the verification, they shall offer to release the products to the importer
subject to any precautionary measures judged necessary.
4. For the purpose of implementing paragraph 1, the customs authorities
of the importing State shall return the movement certificate EUR. 1 or
form EUR. 2, or a photocopy thereof, to the customs authorities of the
exporting State, giving, where appropriate, the reasons of form or substance
for an inquiry. The relevant commercial documents, or a copy thereof, shall
be attached to the certificate EUR. 1 or form EUR. 2 and the customs authorities
shall forward any information that has been obtained suggesting that the
particulars given on the said certificate or the said form are inaccurate.
5. The customs authorities of the importing State shall be informed
of the results of the verification within six months. These results must
be such as to make it possible to determine whether the disputed movement
certificate EUR. 1 or form EUR. 2 applied to the products actually exported,
and whether these products can, in fact, qualify for the application of
the preferential arrangements.
6. Where the verification procedure or any other available information
appears to indicate that the provisions of this Protocol are being contravened,
the ACP State on its own initiative or at the request of the Comunity shall
carry out appropriate enquiries or arrange for such enquiries to be carried
out with due urgency to identify and prevent such contraventions and for
this purpose the ACP State concerned may invite the participation of the
Community in these enquiries.
Where the verification procedure or any other available information
appears to indicate that the provisions of this Protocol are being contravened,
the products would be accepted as originating products under Protocol No
1 only after the completion of such aspects of administrative cooperation
set down in the Protocol which may have been activated, including in particular
the verification procedure.
7. Disputes which cannot be settled between the customs authorities
of the importing State and those of the exporting State, or those which
raise a question as to the interpretation of this Protocol, shall be submitted
to the Customs Cooperation Committee provided for in Article 30.
8. In all cases, the settlement of disputes between the importer and
the customs authorities of the importing State shall be under the legislation
of the said State.
Article 27
Verification of suppliers' declarations
1. Verification of suppliers' declarations may be carried out at random
or whenever the customs authorities of the importing State have reasonable
doubts as to the authenticity of the document or the accuracy or completeness
of the information concerning the true origin of the materials in question.
2. The customs authorities to which a supplier's declaration is submitted
may request the customs authorities of the State where the declaration
was made to issue an information certificate, a specimen of which appears
in Annex VII to this Protocol. Alternatively, the customs authorities to
which a supplier's declaration is submitted may request the exporter to
produce an information certificate issued by the customs authorities of
the State where the declaration was made.
A copy of the information certificate shall be preserved by the office
which has issued it for at least two years.
3. The requesting customs authorities shall be informed of the results
of the verification as soon as possible. The results must be such as to
indicate positively whether the declaration concerning the status of the
materials is correct.
4. For the purpose of verification, suppliers shall keep for not less
than two years a copy of the document containing the declaration together
with all necessary evidence showing the true status of the materials.
5. The customs authorities in the State where the supplier's declaration
is established shall have the right to call for any evidence or to carry
out any check which they consider appropriate in order to verify the correctness
of any supplier's declaration.
6. Any movement certificate EUR. 1 or form EUR. 2 issued or made out
on the basis of an incorrect supplier's declaration shall be considered
null and void.
7. The procedure laid down in Article 26 (7) shall apply in case of
any disputes concerning suppliers' declarations or information certificates.
Article 28
Penalties
Penalties shall be imposed on any person who, in order to enable products
to be accepted as eligible for preferential treatment, draws up or causes
to be drawn up either a document which contains incorrect particulars for
the purpose of obtaining a movement certificate EUR. 1 or a form EUR. 2
containing incorrect particulars.
Article 29
Free zones
The ACP States shall take all necessary steps to ensure that goods
traded under cover of a movement certificate EUR. 1 or of a supplier's
declaration and which in the course of transport use a free zone situated
in their territory are not replaced by other goods and that they do not
undergo handling other than operations designed to preserve them in good
condition.
Article 30
Customs Cooperation Committee
1. A Customs Cooperation Committee, hereinafter referred to as 'the
Committee', shall be set up and charged with carrying out administrative
cooperation with a view to the correct and uniform application of this
Protocol and with carrying out any other task in the customs field which
may be entrusted to it.
2. The Committee shall examine regularly the effect on the ACP States
and in particular on the leastdeveloped ACP States of application of the
rules of origin and shall recommend to the Council of Ministers appropriate
measures.
3. The Committee shall take decisions on derogations from this Protocol,
under the conditions laid down in Article 31.
4 The Committee shall meet regularly, in particular to prepare the
decisions of the Council of Ministers pursuant to Article 34.
5. The Committee shall be composed on the one hand of experts from
the Member States and of Commission officials responsible for customs questions,
and on the other hand of experts representing the ACP States and of officials
of regional groupings of the ACP States who are responsible for customs
questions. The Committee may call upon appropriate expertise where necessary.
Article 31
Derogations
1. Derogations from this Protocol may be adopted by the Committee where
the development of existing industries or the creation of new industries
justifies them.
The ACP State or States concerned shall, either before or when the
ACP States submit the matter to the Committee, notify the Community of
its request for a derogation together with the reasons for the request
in accordance with paragraph 2.
The Community shall respond positively to all the ACP requests which
are duly justified in conformity with this Article and which cannot cause
serious injury to an established Community industry.
2. In order to facilitate the examination by the Committee of requests
for derogation, the ACP State making the request shall, by means of the
form given in Annex IX to this Protocol, furnish in support of its request
the fullest possible information covering in particular the points listed
below:
- description of the finished product,
-nature and quantity of materials originating in a third country,
-nature and quantity of materials originating in ACP States, the Community
or the OCT, or which have been processed there,
-manufacturing processes,
-value added,
-number of employees in the enterprise concerned,
-anticipated volume of exports to the Community,
-other possible sources of supply for raw materials,
-reasons for the duration requested in the light of efforts made to
find new sources of supply,
-other observations.
The same rules shall apply to any requests for extension.
The Committee may modify the form.
3. The examination of requests shall in particular take into account:
(a) the level of development or the geographical situation of the ACP
State or States concerned;
(b) cases where the application of the existing rules of origin would
significantly affect the ability of an existing industry in an ACP State
to continue its exports to the Community, with particular reference to
cases where this could lead to cessation of its activities;
(c) specific cases where it can be clearly demonstrated that significant
investment in an industry could be deterred by the rules of origin and
where a derogation favouring the realization of the investment programme
would enable these rules to be satisfied by stages. 4. In every case an
examination shall be made to ascertain whether the rules relating to cumulation
of origin do not provide a solution to the problem.
5. In addition when a request for derogation concerns a least-developed
or an island ACP State, its examination shall be carried out with a favourable
bias having particular regard to:
(a) the economic and social impact of the decision to be taken especially
in respect of employment;
(b) the need to apply the derogation for a period taking into account
the particular situation of the ACP State concerned and its difficulties.
6. In the examination of requests, special account shall be taken, case
by case, of the possibility of conferring originating status on products
which include in their composition materials originating in neighbouring
developing countries, least-developed countries or developing countries
with which one or more ACP States have special relations, provided that
satisfactory administrative cooperation can be established.
7. Without prejudice to paragraphs 1 to 6, the derogation shall be
granted where the value added to the non-originating products used in the
ACP State or States concerned is at least 45 % of the value of the finished
product, provided that the derogation is not such as to cause serious injury
to an economic sector of the Community or of one or more Member States.
8. Derogations shall be automatically granted to requests concerning
canned tuna, within an annual quota of 1 500 tonnes in the period from
the coming into force of the Convention to 31 December 1992, and of 2 500
tonnes per year from 1 January 1993.
Applications for such derogations shall be submitted by the ACP States
in accordance with the abovementioned quota to the Committee, which shall
put them into force by means of a decision. Above this quota the procedure
set out in paragraphs 1 to 7 applies.
9. The Committee shall take steps necessary to ensure that a decision
is reached as quickly as possible, and in any case not later than 60 working
days after the request is received by the EEC co-chairman of the Committee.
If the Community does not inform the ACP States of its position on the
request within this period, the request shall be deemed to have been accepted.
In the event of a decision not being taken by the Committee, the Committee
of Ambassadors shall be called upon to decide within one month of the date
on which the matter is referred to it.
10. (a) The derogation shall be valid for a period, generally of five
years, to be determined by the Committee.
(b) The derogation decision may provide for renewals without a new
decision of the Committee being necessary, provided that the ACP State
or States concerned submit, three months before the end of each period,
proof that they are still unable to meet the conditions of this Protocol
which have been derogated from.
If any objection is made to the extension, the Committee shall examine
it as soon as possible and decide whether to prolong the derogation. The
Committee shall proceed as provided for in paragraph 9. All necessary measures
shall be taken to avoid interruptions in the application of the derogation.
(c) In the periods referred to in subparagraphs (a) and (b), the Committee
may review the terms for implementing the derogation should a significant
change be found to have taken place in the substantive factors governing
the decision to grant the derogation. On conclusion of its review the Committee
may decide to amend the terms of its decision as regards the scope of the
derogation or any other condition previously laid down. TITLE IV
CANARY ISLANDS, CEUTA AND MELILLA
Article 32
Special conditions
1. The term 'Community' used in this Protocol shall not cover the Canary
Islands, Ceuta and Melilla. The term 'products originating in the Community'
shall not cover products originating in the Canary Islands, Ceuta and Melilla.
2. The provisions of this Protocol shall apply mutatis mutandis in
determining whether products may be deemed as originating in the ACP States
when imported into the Canary Islands, Ceuta and Melilla.
3. Where products wholly obtained in the Canary Islands, Ceuta, Melilla,
the OCT or the Community undergo working and processing in the ACP States,
they shall be considered as having been wholly obtained in the ACP States.
4. Working or processing carried out in the Canary Islands, Ceuta,
Melilla, the OCT or the Community shall be considered as having been carried
out in the ACP States, when materials undergo further working or processing
in the ACP States.
5. For the purpose of implementing paragraphs 3 and 4, the insufficient
operations listed in Article 3 (3) (a), (b), (c) and (d) shall not be considered
as working or processing.
6. The Canary Islands, Ceuta and Melilla shall be considered as a single
territory.
TITLE V
FINAL PROVISIONS
Article 33
Petroleum products
The products set out in Annex VIII shall be temporarily excluded from
the scope of this Protocol. Nevertheless, the arrangements regarding administrative
cooperation shall apply, mutatis mutandis, to these products.
Article 34
Revision of rules of origin
In accordance with Article 176 of the Convention, the Council of Ministers
shall examine annually, or whenever the ACP States or the Community so
request, the application of the provisions of this Protocol and their economic
effects with a view to making any necessary amendments or adaptations.
The Council of Ministers shall take into account among other elements
the effects on the rules of origin of technological developments.
The decisions taken shall be implemented as soon as possible.
Article 35
Requests for derogations
The Contracting Parties undertake to examine in an appropriate institutional
framework, from the date of the signature of the Convention, any applications
for derogations from this Protocol, with a view to allowing them to enter
into force at the same date as the Convention.
Article 36
Annexes
The Annexes to this Protocol shall form an integral part thereof.
Article 37
Implementation of the Protocol
The Community and the ACP States shall each take the steps necessary
to implement this Protocol.
ANNEX I
NOTES
Foreword
These notes shall apply where appropriate to all products manufactured
using non-originating materials even if they are not subject to specific
conditions contained in the list in Annex II but are subject instead to
the change of heading rule set out in Article 3 (1).
Note 1:
1.1. The first two columns in the list describe the product obtained.
The first column gives the heading number or chapter number used in the
harmonized system and the second column gives the description of goods
used in that system for that heading or chapter. For each entry in the
first two columns a rule is specified in column 3. Where, in some cases,
the entry in the first column is preceded by an 'ex', this signifies that
the rule in column 3 applies only to the part of that heading or chapter
as described in column 2.
1.2.Where several heading numbers are grouped together in column 1
or a chapter number is given and the description of products in column
2 is therefore given in general terms, the adjacent rule in column 3 applies
to all products which, under the harmonized system, are classified in headings
of the chapter or in any of the headings grouped together in column 1.
1.3.Where there are different rules in the list applying to different
products within a heading, each indent contains the description of that
part of the heading covered by the adjacent rule in column 3.
Note 2:
2.1.The term 'manufacture' covers any kind of working or processing
including 'assembly' or specific operations. However, see Note 3.5 below.
2.2.The term 'material' covers any 'ingredient', 'raw material', 'component'
or 'part', etc., used in the manufacture of the product.
2.3.The term 'product' refers to the product being manufactured, even
if it is intended for later use in another manufacturing operation.
2.4.The term 'goods' covers both 'materials' and 'products'.
Note 3:
3.1.In the case of any heading not in the list or any part of a heading
that is not in the list, the 'change of heading' rule set out in Article
3 (1) applies. If a 'change of heading' condition applies to any entry
in the list, then it is contained in the rule in column 3.
3.2.The working or processing required by a rule in column 3 has to
be carried out only in relation to the non-originating materials used.
The restrictions contained in a rule in column 3 likewise apply only to
the non-originating materials used.
3.3.Where a rule states that 'materials of any heading' may be used,
materials of the same heading as the product may also be used, subject,
however, to any specific limitations which may also be contained in the
rule. However, the expression 'manufacture from materials of any heading,
including other materials of heading No . . .' means that only materials
classified in the same heading as the product of a different description
than that of the product as given in column 2 of the list may be used.
3.4.If a product made from non-originating materials which has acquired
originating status during manufacture by virtue of the change of heading
rule or its own list rule is used as a material in the process of manufacture
of another product, then the rule applicable to the product in which it
is incorporated does not apply to it.
For example (1), an engine of heading No 8407, for which the rule states
that the value of the non-originating materials which may be incorporated
may not exceed 40 % of the ex-works price, is made from 'other alloy steel
roughly shaped by forging' of heading No 7224.
If this forging has been forged in the country concerned from a non-originating
ingot then the forging has already acquired origin by virtue of the rule
for heading No ex 7224 in the list. It can then count as originating in
the value calculation for the engine regardless of whether it was produced
in the same factory or another. The value of the non-originating ingot
is thus not taken into account when adding up the value of the non-originating
materials used.
3.5.Even if the change of heading rule or the other rules contained
in the list are satisfied, a product shall not acquire originating status
if the processing carried out, taken as a whole, is insufficient within
the meaning of Article 3 (3).
3.6.The unit of qualification for the application of the origin rules
shall be the particular product which is considered as the basic unit when
determining classification using the nomenclature of the harmonized system.
In the case of sets of products which are classified by virtue of rule
3 of the general rules for the interpretation of the harmonized system,
the unit of qualification shall be determined in respect of each item in
the set in the case of headings Nos 6308, 8206 and 9605.
Accordingly, it follows that:
- when a product composed of a group or assembly of articles is classified
under the terms of the harmonized system in a single heading, the whole
constitutes the unit of qualification.
-when a consignment consists of a number of identical products classified
under the same heading of the harmonized system, each product must be taken
individually when applying the origin rules,
-where, under general rule 5 of the harmonized system, packing is included
with the product for classification purposes, it shall be included for
the purposes of determining origin.
Note 4:
4.1.The rule in the list represents the minimum amount of working or
processing required and the carrying out of more working or processing
also confers originating status; conversely, the carrying out of less working
or processing cannot confer origin. Thus if a rule says that non-originating
material at a certain level of manufacture may be used, the use of such
material at an earlier stage of manufacture is allowed and the use of of
such material at a later stage is not.
4.2.When a rule in the list specifies that a product may be manufactured
from more than one material, this means that any one or more materials
may be used. It does not require that all be used.
For example (2), the rule for fabrics says that natural fibres may
be used and that chemical materials, among other materials, may also be
used. This does not mean that both have to be used; one can use one or
the other or both.
If, however, a restriction applies to one material and other restrictions
apply to other materials in the same rule, then the restrictions only apply
to the materials actually used.
For example (3), the rule for sewing machines specifies that both the
thread tension mechanism used and the zigzag mechanism used must originate;
these two restrictions only apply if the mechanisms concerned are actually
incorporated into the sewing machine.
4.3.When a rule in the list specifies that a product must be manufactured
from a particular material, the condition obviously does not prevent the
use of other materials which, because of their inherent nature, cannot
satisfy the rule.
For example (4), the rule for heading No 1904 which specifically excludes
the use of cereals or their derivatives does not prevent the use of mineral
salts, chemicals and other additives which are not produced from cereals.
For example (5), in the case of an article made from non-woven materials,
if the use of only non-originating yarn is allowed for this class of article,
it is not possible to start from non-woven cloth - even if non-woven cloths
cannot normally be made from yarn. In such cases, the starting material
would normally be at the stage before yarn - that is the fibre stage.
See also Note 7.3 in relation to textiles.
4.4.If in a rule in the list two or more percentages are given for
the maximum value of non-originating materials that can be used, then these
percentages may not be added together. The maximum value of all the non-originating
materials used may never exceed the highest of the percentages given. Furthermore,
the individual percentages must not be exceeded in relation to the particular
materials they apply to.
This note also applies to the value tolerance provided for in Article
5.
Note 5:
5.1.The term 'natural fibres' is used in the list to refer to fibres
other than artificial or synthetic fibres and is restricted to the stages
before spinning takes place, including waste, and, unless otherwise specified,
the term 'natural fibres' includes fibres that have been carded, combed
or otherwise processed but not spun.
5.2.The term 'natural fibres' includes horsehair of heading No 0503,
silk of heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse
animal hair of heading Nos 5101 to 5105, the cotton fibres of heading Nos
5201 to 5203 and the other vegetable fibres of heading Nos 5301 to 5305.
5.3.The terms 'textile pulp', 'chemical materials' and 'paper-making
materials' are used in the list to describe the materials not classified
in chapters 50 to 63, which can be used to manufacture artificial, synthetic
or paper fibres or yarns.
5.4.The term 'man-made staple fibres' is used in the list to refer
to synthetic or artificial filament tow, staple fibres or waste, of heading
Nos 5501 to 5507.
Note 6:
6.1.In the case of the products classified in those headings in the
list to which a reference is made to this Note, the conditions set out
in column 3 of the list shall not be applied to any basic textile materials
used in their manufacture which, taken together, represent 10 % or less
of the total weight of all the basic textile materials used (but see also
Notes 6.3 and 6.4 below).
6.2.However, this tolerance may only be applied to mixed products which
have been made from two or more basic textile materials.
The following are the basic textile materials:
- silk,
- wool,
- coarse animal hair,
- fine animal hair,
- horsehair,
- cotton,
- paper-making materials and paper,
- flax,
- true hemp,
- jute and other textile bast fibres,
- sisal and other textile fibres of the genus Agave,
- coconut, abaca, ramie and other vegetable textile fibres,
- synthetic man-made filaments,
- artificial man-made filaments,
- synthetic man-made staple fibres,
- artificial man-made staple fibres.
For example (6), a yarn of heading No 5205 made from cotton fibres
of heading No 5203 and synthetic staple fibres of heading No 5506 is a
mixed yarn. Therefore, non-originating synthetic staple fibres that do
not satisfy the origin rules (which require the use of non-originating
chemical materials) may be used up to a weight of 10 % of the yarn.
For example (7), a woollen fabric of heading No 5112 made from woollen
yarn of heading No 5107 and synthetic yarn of staple fibres of heading
No 5509 is a mixed fabric. Therefore, non-originating synthetic yarn that
does not satisfy the origin rules (which require the use of non-originating
man-made staple fibres not carded or combed or otherwise prepared for spinning),
or non-originating woollen yarn that does not satisfy the origin rules
(which require the use of non-originating natural fibres), or a combination
of the two may be used up to a weight of 10 % of the fabric.
For example (8), tufted textile fabric of heading No 5802 made from
cotton yarn of heading No 5205 and cotton fabric of heading No 5210 is
only a mixed product if the cotton fabric is itself a mixed fabric being
made from yarns classified in two separate headings or if the cotton yarns
used are themselves mixtures.
For example (9), if the tufted textile fabric concerned had been made
from cotton yarn of heading No 5205 and synthetic fabric of heading No
5407, then, obviously, the yarns used are two separate basic textile materials
and the tufted textile fabric is accordingly a mixed product.
For example (10), a carpet with tufts made both from artificial yarns
and tufts made from cotton yarns and with a jute backing is a mixed product
because three basic textile materials are used. Thus, any non-originating
materials that are at a later stage of manufacture than the rule allows
may be used, provided their total weight taken together does not exceed
10 % of the weight of the carpet. Thus, both the jute backing and/or the
artificial yarns could be imported at that stage of manufacture, provided
the weight conditions are met.
6.3.In the case of fabrics incorporating 'yarn made of polyurethane
segmented with flexible segments of polyether whether or not gimped' this
tolerance is 20 % in respect of this yarn.
6.4.In the case of fabrics incorporating strip consisting of a core
of aluminium foil or of a core of plastic film whether or not coated with
aluminium powder, of a width not exceeding 5 mm, sandwiched by means of
an adhesive between two films of plastic film, this tolerance is 30 % in
respect of this strip.
Note 7:
7.1.In the case of those textile products which are marked in the list
by a footnote referring to this introductory note, textile trimmings and
accessories which do not satisfy the rule set out in the list in column
3 for the made up products concerned may be used provided that their weight
does not exceed 10 % of the total weight of all the textile materials incorporated.
Textile trimmings and accessories are those classified in Chapters
50 to 63. Linings and interlinings are not to be regarded as trimmings
or accessories.
7.2.Any non-textile trimmings and accessories or other materials used
which contain textiles do not have to satisfy the conditions set out in
column 3 even though they fall outside the scope of Note 4.3.
7.3.In accordance with Note 4.3, any non-originating non-textile trimmings
and accessories or other product, which do not contain any textiles, may,
anyway, be used freely where they cannot be made from the materials listed
in column 3.
For example (11), if a rule in the list says that for a particular
textile item, such as a blouse, yarn must be used, this does not prevent
the use of metal items, such as buttons, because they cannot be made from
textile materials.
7.4.Where a percentage rule applies, the value of trimmings and accessories
must be taken into account when calculating the value of the non-originating
materials incorporated.
ANNEX II
LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING
MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING
STATUS
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ANNEX III
Within the meaning of this Protocol 'countries and territories' shall
mean the countries and territories referred to in Part Four of the Treaty
establishing the European Economic Community listed below:
(This list does not prejudge the status of these countries and territories,
or future changes in their status.)
1. Country having special relations with the Kingdom of Denmark:
- Greenland
2.Overseas territories of the French Republic:
- New Caledonia and Dependencies
- French Polynesia
- French Southern and Antarctic Territories
- Wallis and Futuna Islands
3.Territorial collectivities of the French Republic:
- Mayotte
- Saint Pierre and Miquelon
4.Overseas countries of the Kingdom of the Netherlands:
- Aruba
- Netherlands Antilles:
- Bonaire
- Curação
- Saba
- Saint Eustatius
- Saint Maarten
5.Overseas countries and territories of the United Kingdom of Great
Britain and Northern Ireland:
- Anguilla
- Cayman Islands
- Falkland Islands
- South Sandwich Islands and Dependencies
- Montserrat
- Pitcairn
- Saint Helena and Dependencies
- British Antarctic Territory
- British Indian Ocean Territory
- Turks and Caicos Islands
- British Virgin Islands
ANNEX IV
FORM FOR MOVEMENT CERTIFICATES
1. Movement certificates EUR. 1 shall be made out on the form of which
a specimen appears in this Annex. This form shall be printed in one or
more of the languages in which the Convention is drawn up. Certificates
shall be made out in one of these languages and in accordance with the
provisions of the domestic law of the exporting State; if they are handwritten,
they shall be completed in ink and in capital letters.
2.Each certificate shall measure 210 × 297 mm, a tolerance of
up to plus 8 mm or minus 5 mm in the length may be allowed. The paper used
must be white, sized for writing, not containing mechanical pulp and weighing
not less than 60 g/m². It shall have a printed green guilloche pattern
background making any falsification by mechanical or chemical means apparent
to the eye.
3.The exporting States may reserve the right to print the certificates
themselves or may have them printed by approved printers. In the latter
case each certificate must include a reference to such approval. Each certificate
must bear the name and address of the printer or a mark by which the printer
can be identified. It shall also bear a serial number, either printed or
not, by which it can be identified.
4.Forms of the kind given in Annex 4 to Decision No 1/89 of the ACP-EEC
Council of Ministers may continue to be used until stocks are exhausted
or until 31 December 1992 at the latest.
MOVEMENT CERTIFICATE
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NOTES
1. Certificates must not contain erasures or words written over one
another. Any alterations must be made by deleting the incorrect particulars
and adding any necessary corrections. Any such alteration must be initialled
by the person who completed the certificate and endorsed by the customs
authorities of the issuing country or territory.
2. No spaces must be left between the items entered on the certificate
and each item must be preceded by an item number. A horizontal line must
be drawn immediately below the last item. Any unused space must be struck
through in such a manner as to make any later additions impossible.
3.Goods must be described in accordance with commercial practice and
with sufficient detail to enable them to be identified.
APPLICATION FOR A MOVEMENT CERTIFICATE
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DECLARATION BY THE EXPORTER
I, the undersigned, exporter of the goods described overleaf,
DECLARE that the goods meet the conditions required for the issue of
the attached certificate;
SPECIFYas follows the circumstances which have enabled these goods
to meet the above conditions:
SUBMITthe following supporting documents (12):
UNDERTAKE to submit, at the request of the appropriate authorities,
any supporting evidence which these authorities may require for the purpose
of issuing the attached certificate, and undertake, if required, to agree
to any inspection of my accounts and to any check on the processes of manufacture
of the above goods, carried out by the said authorities;
REQUESTthe issue of the attached certificate for these goods.
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ANNEX V
FORM EUR. 2
1. Form EUR. 2, a specimen of which appears in this Annex shall be
completed by the exporter. It shall be made out in one of the languages
in which the Convention is drawn up and in accordance with the provisions
of the domestic law of the exporting State. If it is handwritten it must
be completed in ink in capital letters.
2.Form EUR. 2 shall consist of a single sheet measuring 210 ×
148 mm. The paper used shall be white, sized for writing, not containing
mechanical pulp and weighing not less than 60 g/m².
3.The exporting States may reserve the right to print the forms themselves
or may have them printed by printers they have approved. In the latter
case each form must include a reference to such approval. In addition,
each form shall bear the distinctive sign attributed to the approved printer
and a serial number, either printed or not, by which it can be identified.
4.Forms of the kind given in Annex 5 to Decision No 1/89 of the ACP-EEC
Council of Ministers may continue to be used until stocks are exhausted
or until 31 December 1992 at the latest.
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Instructions for the completion of form EUR. 2
1. A form EUR. 2 may be made out only for goods which in the exporting
country fulfil the conditions specified by the provisions governing the
trade referred to in box 1. These provisions must be studied carefully
before the form is completed.
2.In the case of a consignment by parcel post the exporter attaches
the form to the dispatch note. In the case of a consignment by letter post
he encloses the form in a package. The reference 'EUR. 2' and the serial
number of the form should be stated on the customs green label declaration
C1 or on the customs declaration C2/CP3, as appropriate.
3.These instructions do not exempt the exporter from complying with
any other formalities required by customs or postal regulations.
4.An exporter who uses this form is obliged to submit to the appropriate
authorities any supporting evidence which they may require and to agree
to any inspection by them of his accounts and of the processes of manufacture
of the goods described in box 11 of this form.
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ANNEX VI A
DECLARATION FOR PRODUCTS HAVING PREFERENTIAL ORIGIN STATUS
I, the undersigned, declare that the goods listed on this invoice (13)
were produced in (14)
and satisfy the rules of origin governing preferential trade between
the ACP States and the European Community.
I undertake to make available to the customs authorities, if required,
evidence in support of this declaration.
(15)
(16) (17) Note:
The text inside the box, suitably completed in conformity with the
footnotes below, constitutes a suppliers' declaration. The footnotes do
not have to be reproduced.
ANNEX VI B
DECLARATION FOR PRODUCTS NOT HAVING PREFERENTIAL ORIGIN STATUS
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Note:
The text inside the box, suitably completed in conformity with the
footnotes below, constitutes a suppliers' declaration. The footnotes do
not have to be reproduced.
ANNEX VII
INFORMATION CERTIFICATE
1. The form of information certificate given in this Annex shall be
used and be printed in one or more of the official languages in which the
Convention is drawn up and in accordance with the provisions of the dometic
law of the exporting State. Information certificates shall be completed
in one of those languages; if they are handwritten, they shall be completed
in ink in capital letters. The shall bear a serial number, whether or not
printed, by which they can be identified.
2.The information certificate shall measure 210×297 mm, a tolerance
of up to plus 8 mm or minus 5 mm in the length may be allowed. The paper
must be white, sized for writing, not containing mechanical pulp and weighing
not less than 60 g/m².
3.The national administrations may reserve the right to print the forms
themselves or may have them printed by printers approved by them. In the
latter case, each form must include a reference to such approval. The forms
shall bear the name and address of the printer or a mark by which the printer
can be identified.
EUROPEAN COMMUNITIES
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See footnotes on verso.
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CROSS REFERENCES
ANNEX VIII
LIST OF PRODUCTS REFERRED TO IN ARTICLE 33 WHICH ARE TEMPORARILY EXCLUDED
FROM THE SCOPE OF THIS PROTOCOL
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NOTES
1. If the boxes in the form are not sufficient to contain all relevant
information, additional pages may be attached to the form. In this case,
the mention 'see annex' shall be entered in the box concerned.
2.If possible, samples or other illustrative material (pictures, designs,
catalogues, etc.) of the final product and of the materials should accompany
the form.
3.A form shall be completed for each product covered by the request.
Boxes 3, 4, 5, 7: 'third country' meaning any country which is not
an ACP or Community State or OCT.
Box 12:If third country materials have been worked or processed in
the Community or in the OCT without obtaining origin, before being further
processed in the ACP State requesting the derogation, indicate the working
or processing carried out in the Community or OCT.
Box 13:The dates to be indicated are the initial and final one of the
period in which EUR. 1 certificates may be issued under the derogation.
Box 18:Indicate either the percentage of added value in respect of
the ex-works price of the product or the monetary amount of added value
for unit of product.
Box 19:If alternative sources of materials exist, indicate here what
they are and, if possible, the reasons of cost or other why they are not
used.
Box 20:Indicate possible further investments or suppliers differentiation
which make the derogation necessary for only a limited period of time.
PROTOCOL 2
on the operating expenditure of the joint institutions
THE CONTRACTING PARTIES HAVE AGREED upon the following provisions,
which shall be annexed to the Convention:
Article 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) 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.
Article 2
The Community and the ACP States shall be severally responsible for
the travel and subsistence expenditure of their respective participants
at the meetings of the Joint Assembly.
They shall likewise be responsible for the travel and subsistence expenditure
of the personnel required for such meetings and for postal and telecommunications
expenses.
Expenditure in connection with interpreting at meetings, translation
and reproduction of documents, and the organization of meetings (such as
premises, equipment, messengers) shall be borne by the Community or by
the ACP States, according to whether the meetings take place in the territory
of a Member State or in that of an ACP State.
Article 3
The arbitrators appointed in accordance with Article 352 of the Convention
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 organization 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.
PROTOCOL 3
on privileges and immunities
THE CONTRACTING PARTIES,
Desiring, by the conclusion of a Protocol on privileges and immunities,
to facilitate the smooth functioning of the Convention, 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 Convention 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 at
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 Convention:
CHAPTER 1
Persons taking part in the work of the convention
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, as 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 Convention or of the coordinating bodies, or in work connected with
the application of the Convention, 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 Assembly
of the Convention, to the arbitrators who may be appointed under the Convention,
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 Industry
and the Technical Centre for Agricultural and Rural Cooperation.
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 constraint without the authorization of the Council
of Ministers set up under the Convention.
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 of that country.
CHAPTER 3
Official communications
Article 6
For their official communications and the transmission of all their
documents, the European Economic Community, the institutions of the Convention
and the coordinating bodies shall enjoy in the territory of the States
party to the Convention the treatment accorded to international organizations.
Official correspondence and other official communications of the European
Economic Community, the joint institutions of the Convention 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 by 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 Article
7 (1), 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 delegate and staff appointed to the delegations,
with the exception of locally recruited staff, shall be exempted from any
direct taxes in the ACP State where they are in post.
2. Article 309 (g) 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 it considers that the waiver of such immunity
is not contrary to its own interest.
Article 12
Article 352 of the Convention 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 4
on the implementation of Article 178
1. The Contracting Parties to the Lomé Convention agree that
every endeavour should be made to avoid recourse being had to the safeguard
measures provided for under Article 177.
2. Both parties are guided by the conviction that the implementation
of Article 178 (4) and (5) would enable them to recognize, at an early
stage, problems which could arise and, taking account of all relevant factors,
avoid as far as possible recourse to measures which the Community would
prefer not to adopt vis-à-vis its preferential trading partners.
3. Both parties acknowledge the need for implementation of the mechanism
of advance information provided for under Article 178 (4), the objective
of which is to limit, in the case of sensitive products, the risks of sudden
or unforeseen recourse to safeguard measures. These arrangements will permit
the maintenance of a regular flow of trade information and the simultaneous
implementation of regular consultation procedures. Thus the two parties
will be in a position to follow closely the trends in the sensitive sectors
and detect problems which could arise.
4. The following two procedures result from this:
(a) The statistical surveillance mechanism:
Without prejudice to internal arrangements that the Community may apply
to control its imports, Article 178 (4) of the Lomé Convention provides
for the institution of a mechanism intended to ensure statistical surveillance
of certain ACP exports to the Community and thus facilitate the examination
of occurrences such as to cause market disturbances.
This mechanism, the sole objective of which is to facilitate the exchange
of information between the parties, should apply only to products which
the Community considers, in so far as it is concerned, as sensitive.
The implementation of this mechanism will be the subject of a joint
agreement on the basis of data to be furnished by the Community and with
the help of statistical information to be communicated by the ACP States
to the Commission at the latter's request.
For the effective implementation of this mechanism it is necessary
that the ACP States concerned provide the Commission, as far as possible
on a monthly basis, with statistics relating to their exports to the Community
and to each of its Member States of products considered by the Community
to be sensitive.
(b)A procedure for regular consultation:
The statistical surveillance mechanism mentioned above will enable
the two parties better to follow the trends in trade likely to cause concern.
On the basis of this information and in accordance with Article 178 (5),
the Community and the ACP States will have the possibility of holding periodic
consultations in order to ensure that the objectives of that Article are
fulfilled. These consultations will take place at the request of either
party.
5. If the conditions of application of safeguard measures as provided
for in Article 177 are fulfilled, it would be the responsibility of the
Community, in accordance with Article 178 (1) relating to prior consultations
concerning the application of safeguard measures, to enter immediately
into consultations with the ACP States concerned by providing them with
all the information necessary for those consultations, especially the necessary
data from which to determine to what extent imports of a specific product
from an ACP State or States have caused serious disturbances in a sector
of the economy of the Community or of one or more of its Member States.
6. If no other arrangement has been concluded in the meanwhile with
the ACP State or States concerned, the competent authorities of the Community
may, at the end of the 21-day period provided for in respect of those consultations,
take the appropriate measures for the implementation of Article 177 of
the Convention. These measures shall be communicated immediately to the
ACP States and become immediately applicable.
7. This procedure would apply without prejudice to measures which could
be taken in the event of special factors within the meaning of Article
178 (3) of the Convention. In this case all relevant information will be
supplied promptly to the ACP States.
8. In any case, the interests of the least-developed, landlocked and
island ACP States will receive particular attention, in accordance with
Article 180 of the Convention.
9. The ACP States and the Community are convinced that the implementation
of the provisions of the Convention, as well as those of this protocol,
are likely to promote, while taking into account the mutual interests of
the partners, the attainment of the objectives of the Convention in respect
of trade cooperation.
PROTOCOL 5
on bananas
The Community and the ACP States agree to the objectives of improving
the conditions under which the ACP States' bananas are produced and marketed
and of continuing the advantages enjoyed by traditional suppliers in accordance
with the undertakings of Article 1 of this Protocol and agree that appropriate
measures shall be taken for their implementation.
Article 1
In respect of its banana exports to the Community markets, no ACP State
shall be placed, as regards access to its traditional markets and its advantages
on those markets, in a less favourable situation than in the past or at
present.
Article 2
Each of the ACP States concerned and the Community shall confer in
order to determine the measures to be implemented so as to improve the
conditions for the production and marketing of bananas. This aim shall
be pursued through all the means available under the arrangements of the
Convention for financial, technical, agricultural, industrial and regional
cooperation. The measures in question shall be designed to enable the ACP
States, particularly Somalia, account being taken of their individual circumstances,
to become more competitive both on their traditional markets and on the
markets of the Community. Measures will be implemented at all stages from
production to consumption and will cover the following fields in particular:
- improvement of conditions of production and enhancement of quality
through action in the areas of research, harvesting packaging and handling,
-internal transport and storage,
-marketing and trade promotion.
Article 3
For the purpose of attaining these objectives, the two parties hereby
agree to confer in a permanent joint group, assisted by a group of experts,
whose task shall be to keep under continuous review any specific problems
arising from application of this Protocol in order to suggest solutions.
Article 4
Should the banana-producing ACP States decide to set up a joint organization
for the purpose of attaining the objectives of this Protocol, the Community
shall support such an organization and shall give consideration to any
requests it may receive for support for the organization's activities which
fall within the scope of regional schemes under the heading of development
finance cooperation.
PROTOCOL 6
on rum
Article 1
Until the entry into force of a common organization of the market in
spirits, products of subheadings 2208 40 10, 2208 40 90, 2208 90 11 and
2208 90 19 of the combined nomenclature originating in the ACP States shall
be imported duty free into the Community under conditions such as to permit
the development of traditional trade flows between the ACP States and the
Community and between the Member States.
Article 2
(a) For the purposes of applying Article 167 and by the derogation
from Article 168 (1) of the Convention, the Community shall each year,
until 31 December 1995, fix the quantities which may be imported free of
customs duties.
These quantities shall be established as follows:
- until 31 December 1993, on the basis of the largest annual quantities
imported from the ACP States into the Community in the last three years
for which statistics are available, increased, in the period until 31 December
1992, by an annual growth rate of 37 % on the market of the United Kingdom
and 27 % on the other markets of the Community.
However, the volume of the annual quantity shall in no case be less
than 172 000 hectolitres of pure alcohol,
-for 1994 and 1995, the volume of the total quota shall in each case
be equal to that of the previous year increased by 20 000 hectolitres of
pure alcohol.
(b)For the arrangements applicable from 1996, the Community shall establish,
before 1 February 1995, on the basis of a report that the Commission will
send to the Council before 1 February 1994, the modalities for the projected
abolition of the Community tariff quota, taking into account the situation
and prospects on the Community rum market and of the ACP States' exports.
(c) Where the application of point (a) hampers the development of a
traditional trade flow between the ACP States and the Community, the Community
shall take appropriate measures to remedy the situation.
(d) To the extent that the consumption of rum increases significantly
in the Community, the Community undertakes to carry out a new examination
of the annual rate of increase fixed by this Protocol.
(e) The Community declares itself prepared to conduct appropriate consultations
before determining the measures provided for in (c).
(f) The Community further declares itself willing to seek with the
ACP States concerned measures to allow an expansion of their sales of rum
on the Community market.
Article 3
With a view to attaining these objectives, the parties agree to confer
within a joint working party whose role shall be to examine continuously
any specific problems arising from application of this Protocol.
Article 4
At the request of the ACP States the Community, in accordance with
the provisions of Title X, Part Two of the Convention, shall assist the
ACP States in promoting and expanding their sales on the Community market.
PROTOCOL 7
on beef and veal
The Community and the ACP States agree to take the special measures
set out below to enable ACP States which are traditional exporters of beef
and veal to maintain their position on the Community market, thus guaranteeing
a certain level of income for their producers.
Article 1
Within the limits referred to in Article 2, import duties other than
customs duties applicable to beef and veal originating in the ACP States
shall be reduced by 90 %.
Article 2
Without prejudice to Article 4, the reduction in import duties provided
for in Article 1 shall apply to the following quantities of boneless meat
per calendar year and per country:
Botswana: 18 916 tonnesKenya: 142 tonnesMadagascar: 7 579 tonnesSwaziland:
3 363 tonnesZimbabwe: 9 100 tonnes
Article 3
In the event of an actual or foreseeable recession in these exports
due to disasters such as drought, cyclones or animal diseases, the Community
is willing to consider appropriate measures to ensure that quantities affected
for these reasons in any year can be delivered in the preceding year or
the following year.
Article 4
If, in the course of a given year, one of the ACP States referred to
in Article 2 is not in a position to supply the total quantity fixed and
does not wish to benefit from the measures referred to in Article 3, the
Commission may share out the amount to be made up among the other ACP States
concerned. In such a case, the ACP States concerned shall put forward a
proposal to the Commission, not later than 1 October of each year, naming
the ACP State or States which will be in a position to supply the new additional
quantity, at the same time indicating to it the ACP State which is not
in a position to supply the full amount allocated to it, on the understanding
that this new temporary allocation will not affect the initial quantities.
Article 5
This Protocol shall be implemented in accordance with the common market
organization in the beef and veal sector, which, however, shall not affect
the obligations entered into by the Community under this Protocol.
Article 6
Should the safeguard clause in Article 177 (1) of the Convention be
applied in the beef and veal sector, the Community will take the necessary
measures to maintain the volume of exports from the ACP States to the Community
at a level compatible with its obligations under this Protocol.
PROTOCOL 8
containing the text of Protocol 3 on ACP sugar appearing in the ACP-EEC
Convention of Lomé signed on 28 February 1975 and the corresponding
declarations annexed to that Convention
PROTOCOL 3
on ACP sugar
Article 1
1. The Community undertakes for an indefinite period to purchase and
import, at guaranteed prices, specific quantities of cane sugar, raw or
white, which originate in the ACP States and which these States undertake
to deliver to it.
2. The safeguard clause in Article 10 of the Convention shall not apply.
The implementation of this Protocol is carried out within the framework
of the management of the common organization of the sugar market which,
however, shall in no way prejudice the commitment of the Community under
paragraph 1.
Article 2
1. Without prejudice to Article 7, no change in this Protocol may enter
into force until a period of five years has elapsed from the date on which
the Convention enters into force. Thereafter, such changes as may be agreed
upon will come into force at a time to be agreed.
2. The conditions for implementing the guarantee referred to in Article
1 shall be re-examined before the end of the seventh year of their application.
Article 3
1. Quantities of cane sugar referred to in Article 1, expressed in
metric tons of white sugar, hereinafter referred to as 'agreed quantities`,
for delivery in each 12-month period referred to in Article 4 (1), shall
be as follows:
Barbados49 300 Fiji163 600 Guyana157 700 Jamaica118 300 Kenya5 000
Madagascar10 000 Malawi20 000 Mauritius487 200 Swaziland116 400 Tanzania10
000 Trinidad and Tobago69 000 Uganda5 000 People's Republic of Congo10
000
2. Subject to Article 7, these quantities may not be reduced without
the consent of the individual States concerned.
3. Nevertheless, in respect of the period up to 30 June 1975, the agreed
quantities, expressed in metric tons of white sugar, shall be as follows:
Barbados29 600 Fiji25 600 Guyana29 600 Jamaica83 800 Madagascar2 000
Mauritius65 300 Swaziland19 700 Trinidad and Tobago54 200 Article 4
1. In each 12-month period from 1 July to 30 June inclusive, hereinafter
referred to as the 'delivery period`, the sugar-exporting ACP States undertake
to deliver the quantities referred to in Article 3 (1), subject to any
adjustments resulting from the application of Article 7. A similar undertaking
shall apply equally to the quantities referred to in Article 3 (3) in respect
of the period up to 30 June 1975, which shall also be regarded as a delivery
period.
2. The quantities to be delivered up to 30 June 1975, referred to in
Article 3 (3), shall include supply en route from port of shipment or,
in the case of landlocked States, across frontiers.
3. Deliveries of ACP cane sugar in the period up to 30 June 1975 shall
benefit from the guaranteed prices applicable in the delivery period beginning
1 July 1975. Identical arrangements may be made for subsequent delivery
periods.
Article 5
1. White or raw sugar shall be marketed on the Community market at
prices freely negotiated between buyers and sellers.
2. The Community shall not intervene if and when a Member State allows
selling prices within its borders to exceed the Community's threshold price.
3. The Community undertakes to purchase, at the guaranteed price, quantities
of white or raw sugar, within agreed quantities, which cannot be marketed
in the Community at a price equivalent to or in excess of the guaranteed
price.
4. The guaranteed price, expressed in units of account, shall refer
to unpacked sugar, cif European ports of the Community, and shall be fixed
in respect of standard quality sugar. It shall be negotiated annually,
within the price range obtaining in the Community, taking into account
all relevant economic factors, and shall be decided at the latest by 1
May immediately preceding the delivery period to which it will apply.
Article 6
Purchase at the guaranteed price, referred to in Article 5 (3), shall
be assured through the medium of the intervention agencies or of other
agents appointed by the Community.
Article 7
1. If, during any delivery period, a sugar-exporting ACP State fails
to deliver its agreed quantity in full for reasons of force majeure the
Commission shall, at the request of the State concerned, allow the necessary
additional period for delivery.
2. If a sugar-exporting ACP State informs the Commission during the
course of a delivery period that it will be unable to deliver its agreed
quantity in full and that it does not wish to have the additional period
referred to in paragraph 1, the shortfall shall be reallocated by the Commission
for delivery during the delivery period in question. Such reallocation
shall be made by the Commission after consultation with the States concerned.
3. If, during any delivery period, a sugar-exporting ACP State fails
to deliver its agreed quantity in full for reasons other than force majeure,
that quantity shall be reduced in respect of each subsequent delivery period
by the undelivered quantity.
4. It may be decided by the Commission that, in respect of subsequent
delivery periods, the undelivered quantity shall be reallocated between
the other States which are referred to in Article 3. Such reallocation
shall be made in consultation with the States concerned.
Article 8
1. At the request of one or more of the States supplying sugar under
the terms of this Protocol, or of the Community, consultations relating
to all measures necessary for the application of this Protocol shall take
place within an appropriate institutional framework to be adopted by the
Contracting Parties. For this purpose the institutions established by the
Convention may be used during the period of application of the Convention.
2. In the event of the Convention ceasing to be operative, the sugar-supplying
States referred to in paragraph 1 and the Community shall adopt the appropriate
institutional provisions to ensure the continued application of the provisions
of this Protocol.
3. The periodical reviews provided for under this Protocol shall take
place within the agreed institutional framework.
Article 9
Special types of sugar traditionally delivered to Member States by
certain sugar-exporting ACP States shall be included in, and treated on
the same basis as, the quantities referred to in Article 3.
Article 10
The provisions of this Protocol shall remain in force after the date
specified in Article 91 of the Convention. After that date the Protocol
may be denounced by the Community with respect to each ACP State and by
each ACP State with respect to the Community, subject to two years' notice.
ANNEX
to Protocol 3
DECLARATIONS ON PROTOCOL 3
1. Joint declaration concerning possible requests for participation
in the provisions of Protocol 3
Any request from an ACP State Contracting Party to the Convention not
specifically referred to in Protocol 3 to participate in the provisions
of that Protocol shall be examined (18).
2.Declaration by the Community concerning sugar originating in Belize,
St-Kitts-Nevis-Anguilla and Suriname
(a) The Community undertakes to adopt the necessary measures to ensure
the same treatment as provided for in Protocol 3, for the following quantities
of cane sugar, raw or white, originating in:
Belize 39 400 tonnes
St-Kitts-Nevis-Anguilla14 800 tonnes
Suriname 4 000 tonnes.
(b) Nevertheless, in respect of the period up to 30 June 1975, the
quantities shall be as follows:
Belize14 800 tonnes
St-Kitts-Nevis-Anguilla 7 900 tonnes (19).
3. Declaration by the Community on Article 10 of Protocol 3
The Community declares that Article 10 of Protocol 3 providing for
the possibility of denunciation in that Protocol, under the conditions
set out in that Article, is for the purposes of juridical security and
does not represent for the Community any qualification or limitation of
the principles enunciated in Article 1 of that Protocol (20).
ANNEX
to Protocol 8
EXCHANGE OF LETTERS BETWEEN THE DOMINICAN REPUBLIC AND THE COMMUNITY
CONCERNING THE PROTOCOL ON ACP SUGAR
Letter No 1, from the Government of the Dominican Republic
Sir,
I have the honour to confirm that the Dominican Republic wishes neither
now nor in the future, to accede to the Protocol on ACP sugar annexed to
the ACP-EEC Convention. The Dominican Republic accordingly undertakes not
to apply to accede to the said Protocol. It will write a letter to this
effect to the ACP Group of States.
I should be obliged if you would acknowledge receipt of this letter.
Please accept, Sir, the assurance of my highest consideration.
Letter No 2, from the President of the Council of the European Communities
Sir,
I have the honour to acknowledge receipt of your letter of today's
date which reads as follows:
'I have the honour to confirm that the Dominican Republic wishes neither
now nor in the future, to accede to the Protocol on ACP sugar annexed to
the ACP-EEC Convention. The Dominican Republic accordingly undertakes not
to apply to accede to the said Protocol. It will write a letter to this
effect to the ACP Group of States.`
The Community confirms its agreement on the content of that letter.
Please accept, Sir, the assurance of my highest consideration.
PROTOCOL No 9
concerning products within the province of the European Coal and Steel
Community
Article 1
Products within the province of the European Coal and Steel Community
shall, when they originate in the ACP States, on import into the Community
be admitted free of customs duties and charges having equivalent effect.
Article 2
Products referred to in Article 1 originating in the Member States
shall, on import into the ACP States, be admitted in accordance with the
provisions of Part Three, Title I, Chapter 1 of the Convention.
Article 3
If the offers made by firms of the ACP States are likely to be detrimental
to the functioning of the common market and if any such detriment is attributable
to a difference in the conditions of competition as regards prices, the
Community may take appropriate measures, such as withdrawing the concessions
referred to in Article 1.
Article 4
Consultations shall take place between the parties concerned in all
cases where, in the opinion of one of them, the implementation of Articles
1, 2 and 3 calls for such consultations.
Article 5
The provisions laying down the rules of origin for the application
of the Convention of Lomé shall also apply to this Protocol.
Article 6
This Protocol shall not affect the provisions of the Treaty establishing
the European Coal and Steel Community, or the powers of jurisdiction conferred
by that Treaty.
(1) This example is given for the purpose of explanation only. It is
not legally binding.
(2) This example is given for the purpose of explanation only. It is
not legally binding.
(3) This example is given for the purpose of explanation only. It is
not legally binding.
(4) This example is given for the purpose of explanation only. It is
not legally binding.
(5) For special conditions relating to products made of a mixture of
textile materials, see Introductory Note 6.
(6) For special conditions relating to products made of a mixture of
textile materials, see Introductory Note 6.
(7) For special conditions relating to products made of a mixture of
textile materials, see Introductory Note 6.
(8) For example: import documents, movement certificates, invoices,
manufacturer's declarations, etc., referring to the products used in manufacture
or to the goods re-exported in the same state.
(9) Insert the countries, groups of countries or territories concerned.
(10) Refer to any verification already carried out by the appropriate
authorities.
(11) The term 'country of origin' means country, group of