WORLD TRADE WT/REG43/1
27June1997
ORGANIZATION(97-2660)
Original: English Committee onRegional Trade Agreements
EURO-MEDITERRANEAN INTERIM ASSOCIATION AGREEMENT ONTRADE
AND COOPERATION BETWEEN THE EUROPEAN COMMUNITY AND THE
PALESTINE LIBERATION ORGANIZATION FOR THE BENEFIT OFTHE
PALESTINIAN AUTHORITY OFTHE WEST BANK AND THE GAZA STRIP
Communication from theDelegation oftheEuropean Commission
ThefollowingtextreproducestheAgreement1betweentheEuropeanCommunityandthePalestine
Liberation Organisation forthebenefit ofthePalestinian Authority oftheWest Bank andtheGaza
Strip.
_______________
TheEuropean Community ,hereinafter referred toas"theCommunity",
oftheonepart,and
ThePalestine Liberation Organization (PLO) forthebenefit ofthePalestinian Authority of
theWestBank andtheGaza Strip,hereinafter referred toas"thePalestinian Authority",
oftheother part,
Considering theimportance oftheexisting linksbetween theCommunity andthePalestinian
people oftheWest Bank andtheGaza Strip, andthecommon values thattheyshare,
Considering thattheCommunity andthePLOwishtostrengthen those linksandtoestablish
lasting relations based onpartnership andreciprocity,
Considering theimportance which theParties attach totheprinciples oftheUnited Nations
Charter, particularly theobservance ofhuman rights, democratic principles andpolitical andeconomic
freedoms which form theverybasis oftheirrelations,
Desirous ofstrengthening theframework ofrelations between theEuropean Community and
theMiddle East, andofregional economic integration oftheMiddle Eastern countries asanobjective
tobeachieved assoonasconditions permit,
1TheAnnexes andProtocols thereto have been submitted totheSecretariat forconsultation byinterested
Members (Office 3006).WT/REG43/1
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Considering thedifference ineconomic andsocial development existing between theParties
andtheneedtointensify existing efforts topromote economic andsocial development intheWestBank
andtheGaza Strip,
Desirous ofestablishing acooperation, supported byaregular dialogue, oneconomic, cultural,
scientific andeducational matters withaviewtoimproving mutual knowledge andunderstanding,
Considering thecommitment oftheParties tofreetrade, andinparticular tocompliance with
theprovisions oftheGeneral Agreement onTariffs andTrade of1994,
Desirous ofbuilding ontheexisting autonomous trade arrangements between theParties and
placing them onacontractual andreciprocal basis,
Convinced oftheneedtopromote thecreation ofanewclimate fortheireconomic relations
inorder toimprove theenvironment forinvestment flows,
Considering therights andobligations oftheparties under theinternational agreements which
theyhavesigned,
Convinced thatthefullparticipation ofthePalestinian Authority intheEuro-Mediterranean
Partnership launched attheBarcelona Conference isanimportant stepinthenormalization ofrelations
between theParties, which should bereflected inanAgreement onaninterim basisatthepresent stage,
Aware ofthemajor political significance oftheholding ofPalestinian elections on
20January 1996 fortheprocess leading toapermanent settlement based onUnited Nations Security
Council Resolutions 242and338,
Recognizing thatthisAgreement should bereplaced byaEuro-Mediterranean Association
Agreement assoonasconditions permit,
Have agreed asfollows:
Article 1
1. AnInterim Association onTrade andCooperation ishereby established between theCommunity
andthePalestinian Authority.
2. Theobjectives oftheAgreement are:
- toprovide anappropriate framework foracomprehensive dialogue, allowing the
development ofclose relations between theParties;
- toestablish theconditions fortheprogressive liberalization oftrade;
- tofoster thedevelopment ofbalanced economic andsocial relations between theParties
through dialogue andcooperation;
- tocontribute tothesocial andeconomic development oftheWest Bank andtheGaza
Strip;WT/REG43/1
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- toencourage regional cooperation with aview totheconsolidation ofpeaceful
coexistence andeconomic andpolitical stability;
- topromote cooperation inother areas which areofreciprocal interest.
Article 2
Relations between theParties, aswellasalltheprovisions ofthisAgreement itself, shallbe
based onrespect ofdemocratic principles andfundamental human rights assetoutintheuniversal
declaration onhuman rights, which guides theirinternal andinternational policy andconstitutes an
essential element ofthisAgreement.
TITLE I
FREE MOVEMENT OFGOODS
Basic Principles
Article 3
TheCommunity andthePalestinian Authority shallestablish progressively afree-trade area
overatransitional period, notextending beyond 31December 2001, according tothemodalities set
outinthisTitleandinconformity withtheprovisions oftheGeneral Agreement onTariffs andTrade
of1994andoftheothermultilateral agreements ontradeingoods annexed totheagreement establishing
theWorld Trade Organization (WTO), hereinafter referred toastheGATT.
CHAPTER 1
Industrial Products
Article 4
Theprovisions ofthisChapter shallapply toproducts originating intheCommunity andin
theWest Bank andtheGaza Strip other thanthose listed inAnnex IItotheTreaty establishing the
European Community.
Article 5
Nonewcustoms dutyonimports, oranyother charge having equivalent effect, shall be
introduced ontrade between theCommunity andtheWest Bank andtheGaza Strip.
Article 6
Imports intotheCommunity ofproducts originating intheWestBank andtheGazaStripshall
beallowed freeofcustoms duties andofanyothercharge having equivalent effect andfreeofquantitative
restrictions andofanyother measure having equivalent effect.WT/REG43/1
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Article 7
1. Theprovisions ofthisChapter donotpreclude theretention bytheCommunity ofanagricultural
component inrespect ofgoods originating intheWest Bank andtheGazaStripandlisted inAnnex 1.
Theprovisions ofChapter 2applicable toagricultural products shallapply mutatis mutandis tothe
agricultural component.
2. Fortheproducts listed inAnnex 2originating intheCommunity, thePalestinian Authority
mayretain fortheduration oftheAgreement customs duties onimport andcharges having equivalent
effect nothigher thanthose inforce on1July1996.
3. TheJointCommittee established under Article 63maydecide onfurther concessions which
theParties grant eachother onamutual basis.
Article 8
1. Customs duties andcharges having equivalent effect applicable onimport intotheWest Bank
andtheGaza Strip ofproducts originating intheCommunity, other thanthose listed inAnnexes 2
and3,shallbeabolished when theAgreement enters intoforce.
2. From theentry intoforce ofthisAgreement, fortheproducts originating intheCommunity
listed inAnnex 3imported intotheWest Bank andtheGaza Strip, thePalestinian Authority maylevy
fiscal charges notexceeding 25percentbyvalue. These charges shall begradually abolished in
accordance withthefollowing schedule:
- Oneyearafterthedateofentry intoforce ofthisAgreement, eachcharge shallbe
reduced to90percentofthebasic charge.
- Twoyears afterthedateofentry intoforce ofthisAgreement, eachcharge shallbe
reduced to80percentofthebasic charge.
- Three years afterthedateofentry intoforce ofthisAgreement, eachcharge shallbe
reduced to70percentofthebasic charge.
- Fouryears afterthedateofentry intoforce ofthisAgreement, eachcharge shallbe
reduced to60percentofthebasic charge.
- Fiveyears afterthedateofentry intoforce ofthisAgreement, eachremaining charge
shallbeabolished.
3. Intheevent ofserious difficulties foragiven product, theschedule referred toinparagraph 2
maybereviewed bytheJoint Committee bycommon accord, ontheunderstanding thatitmaynot
besuspended beyond themaximum transitional period offiveyears. IftheJointCommittee hasnot
taken adecision within thirty daysofitsapplication toreview theschedule, thePalestinian Authority
maysuspend theschedule provisionally foraperiod which maynotexceed oneyear.
4. Ifthecharge isreduced ergaomnes ,thereduced charge shallreplace thebasiccharge described
inparagraph 2from thedateonwhich thereduction isapplied.
5. ThePalestinian Authority shallnotify theCommunity ofitsbasic duties andcharges.WT/REG43/1
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Article 9
Theprovisions concerning theabolition ofcustoms duties onimports shallalsoapply tocustoms
duties ofafiscal nature.
Article 10
1. Bywayofderogation from Articles 5and8,thePalestinian Authority maytakeexceptional
measures oflimited duration tointroduce, increase orre-introduce customs duties.
2. Suchmeasures mayonlyapply toinfant industries andtosectors undergoing restructuring or
experiencing serious difficulties, particularly where those difficulties entail severe social problems.
3. Customs duties onimports intotheWest Bank andtheGaza Strip ofproducts originating in
theCommunity thatareintroduced bysuchexceptional measures maynotexceed 25percentbyvalue,
andmustretain apreferential margin forproducts originating intheCommunity. Thetotalvalue of
imports oftheproducts subjected tosuchmeasures maynotexceed 15percentoftotalimports of
industrial products originating intheCommunity during thelastyearforwhich statistics areavailable.
4. Suchmeasures shallbeapplied fornolonger thanfiveyears, except where alonger duration
isauthorized bytheJoint Committee.
5 ThePalestinianAuthorityshallinformtheJointCommitteeofanyexceptionalmeasuresitintends
toadopt and,attheCommunity 'srequest, consultations shallbeheldonthemeasures andsectors
concerned before theyareimplemented. When adopting suchmeasures, thePalestinian Authority shall
provide theCommittee withaschedule fortheabolition ofthecustoms duties introduced pursuant to
thisArticle. Suchschedules shallprovide forthephasing outoftheduties concerned byequal annual
instalments, starting nolaterthantheendofthesecond yearfollowing theirintroduction. TheJoint
Committee maydecide onadifferent schedule.
CHAPTER 2
Agricultural andFishery Products
Article 11
Theprovisions ofthisChapter shallapply toproducts originating intheCommunity andthe
WestBankandtheGazaStripandlisted inAnnex IItotheTreaty establishing theEuropean Community.
Article 12
TheCommunityandthePalestinianAuthorityshallprogressivelyestablishagreaterliberalization
oftheirtrade inagricultural andfishery products ofinterest tobothParties.
Article 13
1. Agricultural products originating intheWest Bank andtheGazaStriplisted inProtocol No.1
onimportation intotheCommunity shallbesubject tothearrangements setoutinthatProtocol.
2. Agricultural products originating intheCommunity listed inProtocol No.2 onimportation
intotheWest Bank andtheGaza Strip shallbesubject tothearrangements setoutinthatProtocol.WT/REG43/1
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Article 14
1. From 1January 1999, theCommunity andthePalestinian Authority shallexamine thesituation
inorder todetermine themeasures tobeapplied bytheCommunity andthePalestinian Authority from
1January 2000, inaccordance withtheobjective setoutinArticle 12.
2. Without prejudice toparagraph 1andtaking account ofthevolume oftrade inagricultural
products between theParties andoftheparticular sensitivity ofsuchproducts, theCommunity and
thePalestinian Authority shallexamine intheJointCommittee, product byproduct andonanorderly
andreciprocal basis, thepossibility ofgranting eachother further concessions.
CHAPTER 3
Common Provisions
Article 15
1. Nonewquantitative restriction onimports ormeasures having equivalent effect shall be
introduced intrade between theCommunity andtheWest Bank andtheGaza Strip.
2. Quantitative restrictions onimports andmeasures having equivalent effect intrade between
theCommunity andtheWest Bank andtheGaza Strip shallbeabolished from theentry intoforce
ofthisAgreement.
3. TheCommunity andthePalestinian Authority shallnotapply toexports between themselves
either customs duties orcharges having equivalent effect, orquantitative restrictions ormeasures having
equivalent effect.
Article 16
1. Products originating intheWest Bank andtheGaza Strip shallnot,onimportation intothe
Community, beaccorded atreatment more favourable thanthatwhich theMember States apply among
themselves.
2. Application oftheprovisions ofthisAgreement shallbewithout prejudice toCouncil Regulation
(EEC) No.1911/91 of26June1991ontheapplication oftheprovisions ofCommunity lawtotheCanary
Islands.
Article 17
1. Intheevent ofspecific rulesbeing introduces asaresult oftheimplementation ofitsagricultural
policy orofanyalteration ofthecurrent rules orintheevent ofanyalteration orextension ofthe
provisions relating totheimplementation ofitsagricultural policy, theParty concerned mayamend
thearrangements resulting from thisAgreement inrespect oftheproducts concerned.
2. Insuchcases theParty concerned shallinform theJoint Committee. Attherequest ofthe
other Party, theJoint Committee shallmeettotakedueaccount oftheinterests oftheother Party.
3. IftheCommunity orthePalestinian Authority, inapplying paragraph 1,modifies the
arrangements made bythisAgreement foragricultural products, theyshallaccord imports originating
intheother Party anadvantage comparable tothatprovided forinthisAgreement.WT/REG43/1
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4. Theapplication ofthisArticle maybethesubject ofconsultations intheJoint Committee.
Article 18
1. TheParties shallrefrain fromanymeasure orpractice ofaninternal fiscal nature establishing,
whether directly orindirectly, discrimination between theproducts ofoneParty andlikeproducts
originating intheterritory oftheother Party.
2. Products exported totheterritory ofoneoftheParties maynotbenefit from repayment of
indirect internal taxation inexcess oftheamount ofindirect taxation imposed onthem either directly
orindirectly.
Article 19
1. ThisAgreementshallnotprecludethemaintenanceorestablishmentofcustomsunion,free-trade
areas orarrangements forfrontier trade, except insofar astheyalterthetrade arrangements provided
forthisAgreement.
2. Consultation between theParties shall takeplace within theJoint Committee concerning
agreements establishing customs unions orfree-trade areasand,where requested, onother major issues
related totheirrespective tradepolicy withthirdcountries. Inparticular, intheevent ofathirdcountry
acceding totheEuropean Union, suchconsultation shalltakeplace soastoensure thataccount can
betaken ofthemutual interests oftheParties.
Article 20
IfoneoftheParties finds thatdumping istaking place intrade withtheother Party within
themeaning ofArticle VIoftheGATT, itmaytakeappropriate measures against thispractice in
accordance withtheAgreement onimplementation ofArticle VIoftheGATT andwithitsrelevant
internal legislation, under theconditions andinaccordance withtheprocedures laiddown inArticle 23
ofthisAgreement.
Article 21
Were anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause orthreaten tocause:
- serious injury todomestic producers oflikeordirectly competitive products inthe
territory ofoneoftheParties,
or
- serious disturbances inanysector oftheeconomy,
or
- difficulties which could bring about serious deterioration intheeconomic situation of
aregion,
theparty concerned maytakeappropriate measures under theconditions andinaccordance withthe
procedures laiddown inArticle 23.WT/REG43/1
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Article 22
Where compliance withtheprovisions ofArticle 15(3) leads to:
(ii) re-export towards athirdcountry against which theexporting Party maintains, forthe
product concerned, quantitative export restrictions, export duties, ormeasures having
equivalent effect,
or
(iii) aserious shortage, orthreat thereof, ofaproduct essential totheexporting Party,
andwhere thesituations referred toabove giverise,orarelikely togiverisetomajor difficulties for
theexporting Party, thatParty maytakeappropriate measures under theconditions andinaccordance
withtheprocedures laiddown inArticle 23.Themeasures shallbenon-discriminatory andbeeliminated
when conditions nolonger justify theirmaintenance.
Article 23
1. Intheevent oftheCommunity orthePalestinian Authority subjecting imports ofproducts liable
togiverisetothedifficulties referred toinArticle 21toanadministrative procedure, thepurpose of
which istoprovide rapid information onthetrend oftrade flows, itshallinform theother Party.
2. Inthecasesspecified inArticles 20,21and22,before taking themeasures provided fortherein,
or,assoonaspossible incases towhich paragraph 3(d)ofthisArticle applies, theParty inquestion
shallsupply theJoint Committee withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking asolution acceptable totheParties.
Intheselection ofappropriate measures, priority must begiven tothose which leastdisturb the
functioning ofthisAgreement.
Thesafeguard measures shallbenotified immediately totheJointCommittee andshallbethesubject
ofperiodic consultations within thatCommittee, particularly withaview totheirabolition assoon
ascircumstances permit.
3. Fortheimplementation ofparagraph 2,thefollowing provisions shallapply:
(a) Asregards Article 20,theexporting Party shallbeinformed ofthedumping caseas
soonastheauthorities oftheimporting Party haveinitiated aninvestigation. When
noendhasbeenputtothedumping within themeaning ofArticle VIofGATT or
noother satisfactory solution hasbeenreached within thirty daysofthenotification
being made, theimporting Party mayadopt theappropriate measures.
(b) Asregards Article 21,thedifficulties arising fromthesituation referred tinthatArticle
shallbereferred forexamination totheJointCommittee, which maytakeanydecision
needed toputanendtosuchdifficulties.
IftheJointCommittee ortheexporting Party hasnottaken adecision putting anend
tothedifficulties ornoother satisfactory solution hasbeenreached within thirty days
ofthematter being referred, theimporting Party mayadopt theappropriate measuresWT/REG43/1
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toremedy theproblem. These measures shallnotexceed thescope ofwhatisnecessary
toremedy thedifficulties which havearisen.
(c) Asregards Article 22,thedifficulties arising from thesituations referred tointhat
Article shallbereferred forexamination totheJoint Committee.
TheCommittee maytakeanydecision needed toputanendtothedifficulties. Ifit
hasnottaken suchadecision within thirty daysofthematter being referred toit,the
exporting Party mayapply appropriate measures ontheexportation oftheproduct
concerned.
(d) Where exceptional circumstances requiring immediate action make prior information
orexamination, asthecasemaybe,impossible, theParty concerned may, inthe
situations specified inArticles 20,21and22apply forthwith suchprecautionary
measures asarestrictly necessary toremedy thesituation, andshallinform theother
Party immediately.
Article 24
Nothing inthisAgreement shallpreclude prohibitions orrestrictions onimports, exports or
goods intransit justified ongrounds ofpublic morality, public policy orpublic security, oftheprotection
ofhealth andlifeofhumans, animals orplants, oftheprotection ofnational treasures possessing artistic,
historic orarchaeological value, oftheprotection ofintellectual, industrial andcommercial property
orofregulations concerning goldandsilver. Such prohibitions orrestrictions shallnot,however,
constitute ameans ofarbitrary discrimination oradisguised restriction ontrade between theParties.
Article 25
Theconcept of"originating products" fortheapplication oftheprovisions ofthepresent Title
andthemethods ofadministrative cooperation relating tothemaresetoutinProtocol No.3. TheJoint
Committee maydecide tomake thenecessary adaptations tothisProtocol with aview tothe
implementationofcumulationoforiginasagreedintheDeclarationadoptedattheBarcelonaConference.
Article 26
TheCombined Nomenclature shallbeusedfortheclassification ofgoods intrade between
theParties.WT/REG43/1
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TITLE II
PAYMENTS, CAPITAL, COMPETITION, INTELLECTUAL PROPERTY
AND PUBLIC PROCUREMENT
CHAPTER 1
Current Payments andMovement ofCapital
Article 27
Subject totheprovisions ofArticle 29,theParties undertake toimpose norestrictions onany
current transactions.
Article 28
1. Withregard totransactions onthecapital account ofbalance ofpayments, theParties undertake
toimpose norestrictions onthemovement ofcapital relating todirect investments intheWest Bank
andtheGaza Strip incompanies formed inaccordance withcurrent laws, norontheliquidation and
repatriation oftheyield from suchinvestments, oranyprofit stemming therefrom.
2. TheParties shallconsult eachother withaviewtofacilitating themovement ofcapital between
theCommunity andtheWest Bank andtheGaza Strip.
Article 29
Where oneormoreMember States oftheCommunity, orthePalestinian Authority, isinserious
balance ofpayments difficulties, orunder threat thereof, theCommunity orthePalestinian Authority,
asthecasemaybe,may,inaccordance withtheconditions established under theGATT andArticles VII
andXIVoftheArticles ofAgreement oftheInternational Monetary Fund, adopt restrictions oncurrent
transactions which shallbeoflimited duration andmaynotgobeyond whatisnecessary toremedy
thebalance ofpayments situation. TheCommunity orthePalestinian Authority, asthecasemaybe,
shallinform theother Party forthwith andshallsubmit toitassoonaspossible atimetable forthe
elimination ofthemeasures concerned.
CHAPTER 2
Competition, Intellectual Property andPublic Procurement
Article 30
1. Thefollowing areincompatible withtheproper functioning ofthisAgreement, insofar asthey
mayaffect trade between theCommunity andthePalestinian Authority:
(i) allagreements between undertakings, decisions byassociations ofundertakings and
concerted practices between undertakings which have astheir object oreffect the
prevention, restriction ordistortion ofcompetition;
(ii) abuse byoneormore undertakings ofadominant position intheterritories ofthe
Community ortheWest Bank andtheGaza Strip asawhole orinasubstantial part
thereof;WT/REG43/1
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(iii) anypublic aidwhich distorts orthreatens todistort competition byfavouring certain
undertakings ortheproduction ofcertain goods.
2. TheParties shall, asappropriate, assess anypractice contrary tothisArticle onthebasis of
thecriteria resulting from theapplication ofCommunity competition rules.
3. TheJointCommittee shall, before 31December 2001, adopt bydecision thenecessary rules
fortheimplementation ofparagraphs 1and2.
Untiltheserulesareadopted,theprovisionsoftheAgreementonSubsidiesandCountervailingMeasures
shall beapplied astherules fortheimplementation ofparagraph 1(iii)andtherelevant parts of
paragraph 2.
4. Asregards theimplementation ofparagraph 1(iii),theParties recognize thatthePalestinian
Authority maywishtouse,during theperiod until31December 2001, public aidtoundertakings as
aninstrument totackle itsspecific development problems.
5. EachParty shallensure transparency intheareaofpublic aid,interaliabyreporting annually
totheother Party onthetotalamount andthedistribution oftheaidgiven byproviding, uponrequest,
information onaidschemes. Upon request byoneParty, theother Party shallprovide information
onparticular individual cases ofpublic aid.
6. With regard toproducts referred toinTitleI,Chapter 2:
- paragraph 1(iii) doesnotapply;
- anypractices contrary toparagraph 1(i)shall beassessed according tothecriteria
established bytheCommunity onthebasis ofArticles 42and43oftheTreaty
establishing theEuropean Community andinparticular those established inCouncil
Regulation No.26/62.
7. IftheCommunity orthePalestinian Authority considers thataparticular practice isincompatible
withtheterms ofparagraph 1ofthisArticle, and:
- isnotadequately dealtwithunder theimplementing rulesreferred toinparagraph 3,
or
- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious
prejudice totheinterests oftheother Party ormaterial injury toitsdomestic industry,
including itsservices industry,
itmaytakeappropriate measures afterconsultation within theJointCommittee orafterthirty working
daysfollowing referral forsuchconsultation.
Withreferencetopracticesincompatiblewithparagraph1(iii)ofthisArticle,suchappropriatemeasures,
when theGATT isapplicable tothem, mayonlybeadopted inaccordance withtheprocedures and
under theconditions laiddown bytheGATT orbyanyother relevant instrument negotiated under
itsauspices andapplicable between theParties.WT/REG43/1
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8. Notwithstanding anyprovisions tothecontrary adopted inaccordance withparagraph 3,the
Parties shallexchange information taking intoaccount thelimitations imposed bytherequirements
ofprofessional andbusiness secrecy.
Article 31
TheMember States andthePalestinian Authority shallprogressively adjust, without prejudice
totheircommitments totheGATT where appropriate, anyStatemonopolies ofacommercial character,
soastoensure that,by31December 2001, nodiscrimination regarding theconditions under which
goods areprocured andmarketed exists between nationals oftheMember Sates andthePalestinian
people oftheWestBank andtheGazaStrip. TheJointCommittee willbeinformed about themeasures
adopted toimplement thisobjective.
Article 32
Withregard topubic enterprises andenterprises towhich special orexclusive rights havebeen
granted, theJoint Committee shall ensure thatby31December 2001 there isneither enacted nor
maintained anymeasure distorting tradebetween theCommunity andthePalestinian Authority contrary
totheParties 'interests. Thisprovision should notobstruct theperformance inlaworinfactofthe
particular tasks assigned tothose undertakings.
Article 33
1. TheParties shallgrant andensure adequate andeffective protection ofintellectual, industrial
andcommercialpropertyrightsinaccordancewiththehighestinternationalstandards,includingeffective
means ofenforcing suchrights.
2. Theimplementation ofthisArticle shallberegularly reviewed bytheParties. Ifproblems
intheareaofintellectual, industrial andcommercial property affecting trading conditions occur, urgent
consultations shallbeundertaken within theframework oftheJointCommittee, attherequest ofeither
Party, withaviewtoreaching mutually satisfactory solutions.
Article 34
1. TheParties agree ontheobjective ofreciprocal andgradual liberalization ofpublic procurement
contracts.
2. TheJoint Committee shalltakethenecessary measures toimplement paragraph 1.
TITLE III
ECONOMIC COOPERATION AND SOCIAL DEVELOPMENT
Article 35
Objectives
1. ThePartiesundertaketointensifyeconomiccooperationintheirmutualinterestandinaccordance
withtheoverall objectives ofthisAgreement.WT/REG43/1
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2. Theaimofcooperation shallbetosupport thePalestinian Authority 'sownefforts toachieve
sustainable economic andsocial development.
Article 36
Scope
1. Cooperation shallfocus primarily onsectors suffering from internal difficulties oraffected
bytheoverall process ofliberalization oftheeconomy oftheWest Bank andtheGaza Strip, andin
particular bytheliberalization oftradebetween theWestBank andtheGazaStripandtheCommunity.
2. Similarly, cooperation shallfocus onareas likely tobring theeconomies oftheCommunity
andtheWestBankandtheGazaStripcloser together, particularly those which willgenerate sustainable
growth andemployment.
3. Cooperation shallencourage theimplementation ofmeasures designed todevelop intra-regional
cooperation.
4. Conservation oftheenvironment andecological balance shallbetaken intoaccount inthe
implementation ofthevarious sectors ofeconomic cooperation towhich itisrelevant.
5. TheParties mayagree toextend economic cooperation toother sectors notcovered bythe
provisions ofthisTitle.
Article 37
Methods andModalities
Economic cooperation shallbeimplemented inparticular by:
(a) aregular economic dialogue between theParties, which covers allareas ofmacro-
economic policy andinparticular budgetary policy, thebalance ofpayments and
monetary policy;
(b) regular exchange ofinformation andideas inevery sector ofcooperation including
meetings ofofficials andexperts;
(c) transfer ofadvice, expertise andtraining;
(d) implementation ofjointactions suchasseminars andworkshops;
(e) technical, administrative andregulatory assistance;
(f) encouragement ofjointventures;
(g) dissemination ofinformation oncooperation.WT/REG43/1
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Article 38
Industrial Cooperation
Theaimwillbeto:
- support thePalestinian Authority, initsefforts tomodernize anddiversify industry
and,inparticular, tocreate anenvironment favourable toprivate sector andindustrial
development;
- foster cooperation between thetwoParties 'economic operators;
- foster cooperation regarding industrial policy, competitiveness inanopeneconomy
andthemodernization anddevelopment ofindustry;
- support forpolicies todiversify production andexports andexternal outlets;
- promote research anddevelopment, innovation andtechnology transfer asfarasthey
benefit industry;
- develop andenhance thehuman resources required byindustry;
- facilitate access toventure andriskfinancing facilities forthebenefit ofPalestinian
industry.
Article 39
Investment promotion andinvestment
Theobjective ofcooperation willbethecreation ofafavourable andstable environment for
investment intheWest Bank andtheGaza Strip.
Cooperation willtaketheformofpromotion ofinvestment. Thiswillentail thedevelopment of:
- harmonized andsimplified administrative procedures;
- co-investment machinery, especially forsmall andmedium-sized enterprises (SMEs)
ofbothParties;
- information channels andmeans ofidentifying investment opportunities;
- anenvironment conducive toinvestment intheWest Bank andtheGaza Strip.
Cooperation mayalsoextend totheconception andimplementation ofprojects demonstrating
theeffective acquisition anduseofbasic technologies, theuseofstandards, thedevelopment ofhuman
resources (e.g.intechnologies andmanagement) andthecreation ofjobs.WT/REG43/1
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Article 40
Standardization andconformity assessment
Theobjective ofcooperation willbetonarrow thegapinstandards andcertification.
Inpractical terms cooperation willtaketheform of:
- thepromotion oftheuseofCommunity technical regulations andEuropean standards
andconformity assessment procedures;
- raising thelevelofconformity assessment byPalestinian certification andaccreditation
bodies;
- discussing mutual recognition arrangements, where appropriate;
- cooperating inthefieldofquality management;
- developing structures fortheprotection ofintellectual, individual andcommercial
property, forstandardization andforsetting quality standards.
Article 41
Approximation oflegislation
Theobjective ofcooperation willbetoapproximate Palestinian Council legislation tothatof
theCommunity, intheareas covered bytheAgreement.
Article 42
Small andMedium-sized Enterprises
Theobjectiveofcooperationwillbethecreationofanenvironmentpropitioustothedevelopment
ofSMEs onlocalandexport markets through, interalia:
- promotion ofcontacts between enterprises, inparticular through recourse tothe
Community 'snetworks andinstruments forthepromotion ofindustrial cooperation
andpartnership;
- easier access toinvestment finance;
- information andsupport services;
- enhancement ofhuman resources withtheaimofstimulating innovation andthesetting-
upofprojects andbusiness ventures.
Article 43
Financial Services
Theobjective ofcooperation willbetheimprovement anddevelopment offinancial services.WT/REG43/1
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Itwilltaketheform of:
- encouraging thestrengthening andrestructuring ofthePalestinian financial sector;
- improving Palestinian accounting, supervisory andregulatory systems ofbanking,
insurance andother parts ofthefinancial sector.
Article 44
Agriculture andFisheries
Theobjective ofcooperation under thisheading willmainly bethemodernization and
restructuring, where necessary, ofagriculture andfisheries.
Thisincludesmodernizationofinfrastructuresandofequipment;thedevelopmentofpackaging,
storage andmarketing techniques; andtheimprovement ofdistribution channels.
Itwillbegeared more especially to:
- thedevelopment ofstable markets;
- support forpolicies todiversify production andexports andexternal outlets;
- reduction offooddependency;
- promotion ofenvironment-friendly agriculture andfisheries, taking particular account
oftheneedforconservation andrational management offisheries;
- closer relations onavoluntary basis between business groups andorganizations
representing trades andprofessions;
- technical assistance andtraining;
- harmonization ofphytosanitary andveterinary standards;
- integrated rural development including improvement ofbasic services andthe
development ofassociated economic activities; and
- cooperation among ruralregions andexchange ofexperience andknow-how concerning
rural development.
Article 45
Social Development
TheParties acknowledge theimportance ofsocial development which should gohand-in-hand
withanyeconomic development. They giveparticular priority torespect forbasic social rights.
TheParties willgivepriority tomeasures aimed at:WT/REG43/1
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- thepromotion oftheequality ofwomen andabalanced participation inthedecision-
making process intheeconomic andsocial sphere, notably through education andthe
media;
- thedevelopment offamily planning andtheprotection ofmothers andchildren;
- improving thesocial protection system;
- improving theresponse tohealth requirements;
- improving theliving conditions indensely populated areas inless-favoured regions;
- promotingrespectforhumanrightsanddemocracy,interaliathroughsocio-professional
dialogue.
Article 46
Transport
Theobjectives ofcooperation willbe:
- aidforrestructuring andmodernizing roads, ports andairports;
- improved passenger andfreight services bothatbilateral andregional level; and
- theestablishmentandenforcementofoperatingstandardscomparabletothoseprevailing
intheCommunity.
Thepriority areas ofcooperation willbe:
- roadtransport including agradual easing oftransit requirements;
- managementofrailways,portsandairportsincludingnavigationsystemsandcooperation
between therelevant national bodies;
- modernization ofroad, rail,portandairport infrastructure onmajor routes ofcommon
interest;
- trans-European links androutes ofregional interest; and
- upgrading oftechnical equipment tobring ituptoCommunity standards forroad/rail
transport, container traffic andtranshipment.
Article 47
Information infrastructure andtelecommunications
Cooperation shallaimatstimulating economic andsocial development aswellasdeveloping
aninformation society.
Thepriority areas ofcooperation willbe:WT/REG43/1
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- tofacilitatecollaborationinthefieldoftelecommunicationspolicy,networkdevelopment
andinfrastructures foraninformation society;
- todevelop adialogue onissues related totheinformation society andtopromote the
exchange ofinformation andtheorganization ofseminars andconferences inthisarea;
- topromote andimplement joint projects aimed attheintroduction ofnew
telecommunications services andapplications related totheinformation society;
- toallow forinformation exchange onstandardization, conformance testing, and
certification ininformation andcommunications technologies;
- interconnection andinteroperability ofnetworks andtelematics services.
Article 48
Energy
Theobjective ofcooperation onenergy willbetohelptheWestBankandtheGazaStripacquire
thetechnologies andinfrastructures essential toitsdevelopment, particularly withaviewtofacilitating
links between itseconomy andthatoftheCommunity.
Thepriority areas ofcooperation willbe:
- thepromotion ofrenewable energies;
- thepromotion ofenergy-saving andenergy efficiency;
- support tooperations designed tofacilitate thetransit ofgas,oilandelectricity, and
applied research intodatabanknetworks intheeconomic andsocial sectors linking
Community andPalestinian operators inparticular; and
- support forthemodernization anddevelopment ofenergy networks andfortheirlink-up
toCommunity networks.
Article 49
Scientific andtechnological cooperation
TheParties willendeavour topromote cooperation onscientific andtechnological development.
Theaimofcooperation shallbeto:
(a) encourage theestablishment ofpermanent links between theParties 'scientific
communities, notably bymeans of:
- providing Palestinian institutions withaccess toCommunity research and
technological development programmes inaccordance withCommunity rules
governing non-Community countries 'involvement insuchprogrammes;
- Palestinian participation innetworks ofdecentralized cooperation;WT/REG43/1
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- promoting synergy intraining andresearch;
(b) improve Palestinian research capabilities;
(c) stimulate technological innovation andthetransfer ofnewtechnology andknow-how;
(d) encourage allactivities aimed atestablishing synergy atregional level.
Article 50
Environment
Theobjectives ofcooperation willbetoprevent deterioration oftheenvironment, tocontrol
pollution, toprotect human health andtoensure therational useofnatural resources withaviewto
promoting sustainable development.
Itwillplace priority onmatters relating to:desertification, water resource management,
salinization, theimpact ofagriculture onsoilandwater quality, theappropriate useofenergy, the
impact ofindustrial development ingeneral andthesafety ofindustrial plant inparticular, waste
management, theintegrated management ofsensitive areas, thequality ofseawater andthecontrol
andprevention ofmarine pollution, andenvironmental education andawareness.
Cooperation shallbefostered bytheuseofadvanced tools ofenvironmental management,
environmental monitoring methods, andsurveillance, including theuseofenvironmental information
system (EIS) andenvironmental impact assessment (EIA).
Article 51
Tourism
Priorities forcooperation shallbe:
- promoting investments intourism;
- improving theknowledge ofthetourist industry andensuring greater consistency of
policies affecting tourism;
- makingtourismmorecompetitivethroughsupportforincreasedprofessionalismensuring
thebalanced andsustainable development oftourism.
Article 52
Customs cooperation
Customs cooperation isintended toensure thattheprovisions ontrade areobserved andto
guarantee fairtrading.
Itcould giverisetothefollowing types ofcooperation:
- various forms ofexchange ofinformation andtraining schemes;WT/REG43/1
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- simplification ofcontrols andprocedures concerning thecustoms clearance ofgoods;
- introduction ofthesingle administrative document andasystem tolinkupthe
Community 'sandthePalestinian Authority 'stransit arrangements; and
- technical assistance provided byexperts from theCommunity.
Without prejudice toother forms ofcooperation provided forinthisAgreement, the
administrativeauthoritiesofthePartieswillprovideeachotherwithmutualassistanceoncustomsmatters.
Article 53
Cooperation onstatistics
Themainobjective ofcooperation inthisdomain should aimtoensure thecomparability and
usefulnessofstatisticsonforeigntrade,financeandbalanceofpayments,population,migration,transport
andcommunications, andgenerally allthefields which arecovered bythisAgreement andlend
themselves totheestablishment ofstatistics.
Article 54
Cooperation oneconomic policy
Cooperation isaimed at:
- theexchange ofinformation onthemacro economic situation andprospects and
development strategies;
- jointanalysis ofeconomic issues ofmutual interest; and
- theencouragement ofcooperation between economists andpolicy makers intheWest
Bank andtheGaza Strip andintheCommunity.
Article 55
Regional cooperation
Aspartoftheimplementation ofeconomic cooperation inthevarious spheres, theParties will
encourage operations designed todevelop cooperation between thePalestinian Authority andother
Mediterranean partners, through technical support.
Thiscooperation willbeanimportant element oftheCommunity 'ssupport forthedevelopment
oftheregion asawhole.
Priority willbegiven tooperations aimed at:
- promoting intra-regional trade;
- developing regional cooperation ontheenvironment;WT/REG43/1
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- encouraging thedevelopment ofthecommunications infrastructure required forthe
economic development oftheregion;
- strengthening thedevelopment ofyouth cooperation withneighbouring countries.
Inaddition theParties willstrengthen cooperation between themonregional development and
land-use planning.
Tothisendthefollowing measures maybetaken:
- jointaction byregional andlocal authorities intheareaofeconomic development;
and
- theestablishment ofmechanisms fortheexchange ofinformation andexperience.
TITLE IV
COOPERATION ONAUDIOVISUAL AND CULTURAL MATTERS,
INFORMATION AND COMMUNICATION
Article 56
TheParties shallpromote cooperation intheaudiovisual sector totheirmutual benefit. The
Parties shallseekwaysofassociating thePalestinian Authority withCommunity initiatives inthissector,
thusenabling cooperation inareas suchasco-production, training, development anddistribution.
Article 57
ThePartiesshallpromoteculturalcooperation.TheareaofcooperationmayincludeCommunity
activities concerning, inparticular, translation, exchange ofworks ofartandartists, conservation and
restoration ofhistoric andcultural monuments andsites, training ofpersons working inthecultural
field, theorganization ofEuropean-oriented cultural events, raising mutual awareness andcontributing
tothedissemination ofinformation onoutstanding cultural events.
Article 58
ThePartieswillundertaketodeterminehowtoimprovesignificantlytheeducationandvocational
training situation. Tothisend,theaccess ofwomen toeducation, including technical courses, higher
education andvocational training, willreceive special attention.
Inorder todevelop thelevelofexpertise ofsenior staffinthepublic andprivate sectors, the
Parties willstepuptheircooperation oneducation andvocational training andcooperation between
universities andfirms.
Preparing young people tobecome active citizens indemocratic civilsociety should beactively
promoted. Youth cooperation, including training ofyouth workers andyouth leaders, youth exchanges
andvoluntary service activities, could therefore besupported anddeveloped.
Special attention willbepaidtooperations andprogrammes which willenable permanent links
(MED-CAMPUS, ...)tobeestablished between specialized bodies intheCommunity andintheWestWT/REG43/1
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Bank andtheGazaStrip, suchaswillencourage thepooling andexchange ofexperience andtechnical
resources.
Article 59
TheParties shall promote activities ofmutual interest inthefield ofinformation and
communication.
Article 60
Cooperation shallbeimplemented inparticular through:
(a) aregular dialogue between theParties;
(b) regular exchange ofinformation andideas inevery sector ofcooperation including
meetings ofofficials andexperts;
(c) transfer ofadvice andexperience andtraining ofyoung Palestinian graduates;
(d) implementation ofjointactions suchasseminars andworkshops;
(e) technical, administrative andregulatory assistance;
(f) thedissemination ofinformation oncooperation activities.
TITLE V
FINANCIAL COOPERATION
Article 61
Inorder toachieve theobjectives ofthisAgreement, afinancial cooperation package shallbe
made available tothePalestinian Authority inaccordance withtheappropriate procedures andthe
financial resources required.
These procedures shallbeagreed bybothParties using themostappropriate instruments after
thisAgreement hasentered intoforce.
Financial cooperation shallfocus on:
- responding totheeconomic repercussions fortheWest Bank andtheGaza Strip of
thegradual introduction ofafree-trade area, notably byupgrading andrestructuring
industry;
- trade institutions which promote trading links withforeign markets;
- accompanying measures forpolicies implemented inthesocial sector;
- upgrading economic andsocial infrastructure;WT/REG43/1
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- promoting private investment andjob-creating activities intheproductive sectors;
- promoting reforms designed tomodernize theeconomy;
- services;
- urban andrural development;
- theenvironment;
- thesetting-up andimprovement ofinstitutions necessary fortheproper working of
thePalestinian public administration andtheadvancement ofdemocracy andhuman
rights.
Article 62
Inorder toensure thatacoordinated approach isadopted toanyexceptional macro-economic
andfinancial problems thatmight ariseasaresult oftheimplementation ofthisAgreement, theParties
shallusetheregular economic dialogue provided forinTitleIIItogiveparticular attention tomonitoring
trade andfinancial flows inrelations between them.
TITLE VI
INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 63
1. AjointCommittee fortheEuropean Community-Palestinian Authority tradeandcooperation,
referred tointhisAgreement as"theJointCommittee", ishereby established. Itshallhavethepower
totakedecisions inthecases provided forinthisAgreement aswellasinother cases necessary for
thepurpose ofattaining theobjectives setoutinthisAgreement.
Thedecisions taken shallbebinding ontheParties, which shalltakesuchmeasures asarerequired
toimplement them.
2. TheJointCommittee mayalsoformulate anyresolutions, recommendations oropinions which
itconsiders desirable fortheattainment ofthecommon objectives andthesmooth functioning ofthis
Agreement.
3. TheJoint Committee shalladopt itsownrules ofprocedure.
Article 64
1. TheJoint Committee shall becomposed ofrepresentatives oftheCommunity andofthe
Palestinian Authority.
2. TheJointCommittee shallactbymutual agreement between theCommunity andthePalestinian
Authority.WT/REG43/1
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Article 65
1. Theoffice ofChairman oftheJoint Committee shallbeheldalternately bytheCommunity
andthePalestinian Authority inaccordance withtheconditions laiddown intherules ofprocedure.
2. TheJointCommittee shallmeetonceayearandwhen circumstances require, ontheinitiative
ofitsChairman.
Article 66
1. TheJointCommittee maydecide tosetupanyother committee thatcanassist itincarrying
outitsduties.
2. TheJointCommittee shalldetermine thecomposition andduties ofsuchcommittees andhow
theyshallfunction.
Article 67
1. Either Party mayrefer totheJoint Committee anydispute relating totheapplication or
interpretation ofthisAgreement.
2. TheJoint Committee maysettle thedispute bymeans ofadecision.
3. Each Party shallbebound totakemeasures involved incarrying outthedecision referred to
inparagraph 2.
4. Intheevent ofitnotbeing possible tosettle thedispute inaccordance withparagraph 2,either
Party maynotify theother oftheappointment ofanarbitrator; theother Party mustthenappoint a
second arbitrator within twomonths.
TheJoint Committee shallappoint athirdarbitrator.
Thearbitrators 'decisions shallbetaken bymajority vote.
Each Party tothedispute must takethesteps required toimplement thedecision ofthearbitrator.
Article 68
Nothing inthisAgreement shallprevent aParty from taking anymeasures:
(a) which itconsiders necessary toprevent thedisclosure ofinformation contrary toits
essential security interests;
(b) which relate totheproduction of,ortrade in,arms, munitions orwarmaterials or
toresearch, development orproduction indispensable fordefence purposes, provided
thatsuchmeasures donotimpair theconditions ofcompetition inrespect ofproducts
notintended forspecifically military purposes;
(c) which itconsiders essential toitsownsecurity intheevent ofserious internal
disturbances affecting themaintenance oflawandorder, intimeofwarorseriousWT/REG43/1
Page25
international tension constituting threat ofwar,orinorder tocarry outobligations
ithasaccepted forthepurpose ofmaintaining peace andinternational security.
Article 69
InthefieldscoveredbythisAgreementandwithoutprejudiceofanyspecialprovisionscontained
therein:
- thearrangements applied bythePalestinian Authority inrespect oftheCommunity
shallnotgiverisetoanydiscrimination between theMember States, theirnationals
ortheircompanies orfirms;
- thearrangements applied bytheCommunity inrespect ofthePalestinian Authority
shallnotgiverisetodiscrimination between members ofthePalestinian population,
companies orfirms oftheWest Bank andtheGaza Strip.
Article 70
1. TheParties shalltakeanygeneral orspecific measures required tofulfiltheirobligations under
theAgreement. They shallseetoitthattheobjectives setoutintheAgreement areattained.
2. Ifeither Party considers thattheother Party hasfailed tofulfil anobligation under the
Agreement, itmaytakeappropriate measures. Before sodoing, except incases ofspecial urgency,
itshallsupply theJointCommittee withallrelevant information required forathorough examination
ofthesituation withaviewtoseeking asolution acceptable totheParties.
Intheselection ofmeasures, priority must begiven tothose which leastdisturb thefunctioning of
theAgreement. These measures shallbenotified immediately totheJoint Committee andshallbe
thesubject ofconsultations within theJoint Committee oftheother Party sorequests.
Article 71
Annexes 1to3andProtocols 1to3shallform anintegral partofthisAgreement.
Declarations shallappear intheFinal Act,which shallformanintegral partofthisAgreement.
Article 72
Forthepurpose ofthisAgreement theterm"Parties" shallmean thePLOforthebenefit of
thePalestinian Authority andtheCommunity, which shalleachactinaccordance withtheirrespective
powers.
Article 73
ThisAgreement shallapply, ontheonehand, totheterritories inwhich theTreaty establishing
theEuropean Community isapplied andunder thecondition laiddown inthatTreaty and,ontheother
hand, totheterritory oftheWest Bank andtheGaza Strip.WT/REG43/1
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Article 74
ThisAgreement,drawnupinduplicateintheDanish,Dutch,English,Finnish,French,German,
Greek, Italian, Portuguese, Spanish, Swedish andArabic languages, eachofthese textsbeing equally
authentic, shallbedeposited withtheGeneral Secretariat oftheCouncil oftheEuropean Union.
Article 75
1. ThisAgreement willbeapproved bytheParties inaccordance withtheirownprocedures.
ThisAgreement shallenter intoforce onthefirstdayofthemonth following thedateonwhich the
Parties notify eachother thattheprocedures referred tointhefirstparagraph havebeencompleted.
2. Nolaterthan4May1999 negotiations shallcommence withaview toconcluding aEuro-
Mediterranean Association Agreement. Until suchanAgreement isconcluded, thisAgreement shall
remain inforce, subject toanyamendments agreed between theParties.
3. EachoftheParties maydenounce thisAgreement bynotifying theotherParty. ThisAgreement
shallcease toapply sixmonths afterthedateofsuchnotification.