# EUR-Lex - 52014PC0698 - EN

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# 52014PC0698

**Proposal for a COUNCIL AND COMMISSION DECISION On the position to be adopted on behalf of the Union and the European Atomic Energy Community in the Association Council established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, in relation to the adoption of the rules of procedure of the Association Council and of the Association Committee, to the establishment of two Sub-Committees, and to the delegation of certain powers by the Association Council to the Association Committee in Trade configuration /* COM/2014/0698 final - 2014/0331 (NLE) */**

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EXPLANATORY
MEMORANDUM

1.           CONTEXT
OF THE PROPOSAL/BACKGROUND

The attached
proposal constitutes the legal instrument for authorising the position of the
Union and of the European Atomic Energy Community to be adopted in the
Association Council established by the Association Agreement ("the
Agreement") between the European Union and the European Atomic Energy
Community and their Member States and Ukraine, in relation to the adoption of
the rules of procedure of the Association Council and of the Association
Committee, the establishment of two Sub-Committees, and the delegation of
certain powers by the Association Council to the Association Committee in Trade
configuration.

Negotiations of
the comprehensive and ambitious Association Agreement between the EU and Ukraine were launched in March 2007. In February 2008, following the decision of accession
of Ukraine to the WTO, the EU and Ukraine launched negotiations on a Deep and
Comprehensive Free Trade Area (DCFTA), as a core element of the Association
Agreement.

The Association
Agreement is the most advanced of its typed ever negotiated by the EU in
particular with regard to trade and economic integration, going far beyond a
simple market opening. The aim is to accelerate the deepening of political and
economic relations between Ukraine and the EU, as well as to advance Ukraine's gradual economic integration with the EU Internal Market in selected areas,
notably through establishing a DCFTA.

On 23 June 2014,
the Council adopted its decision [1]on
the signing, on behalf of the European Union and the European Atomic Energy
Community and their Member States, and provisional application of certain
provisions of the remaining chapters of the Association Agreement, including
its Deep and Comprehensive Free Trade Area (DCFTA) part between the European
Union and the European Atomic Energy Community and their Member States, of the
one part, and Ukraine, of the other part. The political chapters of the
Agreement had previously been signed on 21 March 2014[2].
Subsequently, the Agreement was signed in Brussels on Friday, 27 June 2014 in
the margins of the European Council.

Ukraine
ratified the Agreement in September and exchanged notifications in that regard
with the EU within the same month meaning that provisional application may
commence from 1 November 2014. However, following consultations with the
Ukrainian side and in the context of the overall efforts for the implementation
of the peace process in Ukraine, it was agreed to delay until 31 December 2015
the provisional application of the trade-related provisions of the Association
Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and Ukraine, of the other part ('the
Association Agreement') (Title IV), and at the same time to continue the
application of the Union's autonomous trade measures for the benefit of
Ukraine.

Consequently, the
provisional application of the relevant provisions of Titles III, IV, V, VI and
VII, and the related Annexes and Protocols, of the Association Agreement is to
take effect in stages. In respect of Titles III, V, VI and VII, and the related
Annexes and Protocols, the notification provided for in Article 486 of the
Association Agreement was made end of September, in conjunction with the
notification of provisions provided for in Article 4 of Council Decision
2014/295/EU1. In respect of Title IV, and the related Annexes and Protocols,
the notification was made so that the provisional application may take effect
on 1 January 2016 following a further notification as provided for in Article
486 of the Association Agreement.

The provisional
application is foreseen in view of keeping mutual economic interests and shared
values in equilibrium, and the common will of the EU and Ukraine to start
implementing and enforcing the eligible parts of the Agreement in order to
advance an early reform impact on sector specific issues before the conclusion
of the Agreement.

2.           RESULTS OF THE
NEGOTIATIONS

Title VII of the
Agreement with Ukraine provides for the institutional framework that is
necessary for the proper function and the implementation of the Agreements. The
Agreement establishes an Association Council (Article 461(1)) at ministerial
level to supervise and monitor the application and implementation of the
Agreement.

To prepare the
meetings and deliberations of the Association Council, implement the decisions
of the Association Council where appropriate and, in general, ensure continuity
of the association relationship and the proper function of the Agreement an
Association Committee is also established (as per Article 464(1)).

The Association
Council as well as the Association Committee may decide to set up any other
Sub-Committee or body that can assist it in carrying out its duties, and shall
determine the composition and duties of such committees or bodies and how they
shall function. Furthermore, the Association Council has
the power to amend or update the Annexes to the Agreement (Article 463(3) of
the Agreement). It may delegate any of its powers to the Association Committee,
including the power to take binding decisions (Article 465(2) of the
Agreement).

The Association
Committee shall meet in a specific configuration to address all issues,
deriving from Title IV "Trade and Trade-related matters" (Article 465(4) of the Agreement). The DCFTA part
of the Agreement foresees specific Sub-Committees on Sanitary &
Phytosanitary matters, customs, geographical indicators and trade &
sustainable development to assist the Association Committee with its duties.

Fora for civil
society and parliamentary cooperation are also foreseen.

With
a view to ensuring smooth and timely implementation of the DCFTA part of the
Agreement, in particular with regard to the updates or amendment of several
trade-related Annexes to the Agreement, it is suggested to delegate such powers
from the Association Council to the Association Committee in Trade
configuration. Such delegation will ensure the necessary link between, and
create conditions for a timely follow-up to, the technical discussions within
that Committee on the implementation of trade-related commitments, including
those pertaining to approximation to the EU acquis by Ukraine.

With a view to
completing the institutional framework and allowing for expert level
discussions in the key areas falling within the scope of provisional
application of the Agreements, it is suggested to establish two Sub-Committees,
designated as follows:

(1)
Sub-Committee on Justice, Freedom & Security (JFS);

(2)
Sub-Committee on Economic and other Sector cooperation.

The purpose of
the Sub-Committees is to focus on those topics where concrete results are
expected, rather than to necessarily cover the same agenda of topics year after
year.

Additional
Sub-Committees may be established at a later stage, following agreement of the
Parties.

The Association
Agreement foresees a wide range of sector cooperation, focusing on support to
core reforms, economic recovery and growth, governance and sector cooperation
in 28 areas, such as; justice, energy, transport, statistics, environment
protection and promotion, industrial and small and medium enterprise
cooperation, agriculture and rural development, social policies, justice, civil
society cooperation, consumer policy, public administration reform, education,
training and youth as well as cultural cooperation.

In all of these
areas, enhanced cooperation starts from the basis of current frameworks, both
bilateral and multilateral, with the aim of more systematic dialogue and
exchange of information and good practice. Key to the sectoral cooperation
chapters is a comprehensive menu of gradual approximation, where relevant, with
the EU acquis set out in annexes to the Agreement. Specific schedules
for approximation and implementation by Ukraine of selected parts of the EU acquis
will provide a focus for on-going cooperation, and will form the core of Ukraine's domestic reform and modernisation agenda.

Any
"regular dialogues" as frequently referred to in the Agreement may
cover all of the aforementioned policy areas.  The second Sub-Committee may
thus meet in different configurations as the need arises. This proposal draws
on experience with the Partnership & Cooperation Agreement with Ukraine and aims to streamline the functioning of the Sub-Committee structure under the
Association Agreement.

Both
the EU and Ukraine have committed to a rapid and effective implementation of
the Agreement. The aim of this proposal is therefore to ensure that the
institutional framework of the Agreement becomes operational as soon as
possible. In order to facilitate this it will be crucial to proceed rapidly
with the adoption process of the Rules of Procedure for the Association
Council, the Association Committee and the Sub-Committees so that these can
soon start functioning. It is intended to call the first meeting of the
Association Council with Ukraine as soon as possibly after the start of
provisional implementation, ideally before the end of the year.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

For the Union, the legal basis for authorising the Union position to be adopted in the
Association Council established by the Association Agreement between the EU and
Ukraine is the Treaty on the functioning of the European Union, and in
particular its Article 218 (9) TFEU. For EURATOM, the legal basis for
authorising its position to be adopted in the Association Council established
by the Association Agreement between the EU and Ukraine is the
Treaty establishing the European Atomic Energy Community, and in particular
Article 101 thereof.

In light of the above-mentioned results of negotiations, on the
basis of Article 218(9) TFEU and of Article 101 of the EURATOM Treaty the
European Commission proposes that the Council adopt the Decision authorising
the position of the Union and of the European Atomic Energy Community to be
adopted in the first EU-Ukraine Association Council with regard to:

- 
  the
rules of procedure for the Association Council and the Association Committee,

– 
the establishment of two Sub-Committees,

and

– 
the delegation of certain powers from the
Association Council to the Association Committee in Trade configuration.

Proposal for a

COUNCIL AND COMMISSION DECISION

On the position to be adopted on behalf of
the Union and the European Atomic Energy Community in the Association Council
established by the Association Agreement between the European Union and the
European Atomic Energy Community and their Member States, of the one part, and
Ukraine, of the other part, in relation to the adoption of the rules of procedure
of the Association Council and of the Association Committee, to the
establishment of two Sub-Committees, and to the delegation of certain powers by
the Association Council to the Association Committee in Trade configuration

THE COUNCIL OF THE EUROPEAN UNION,

Having
regard to the Treaty on the functioning of the European Union, and in
particular its Article 218 (9),

Having
regard to the proposal from the Commission,

Whereas:

(1) 
Article 486of the Association Agreement (”the
Agreement”) between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and Ukraine, of the other part
provide for provisional application of the Agreement in part.

(2) 
Article 4 of the Council Decisions of 17 March
2014[3] and of
23 June 2014[4]
on the signing and provisional application of the Agreement specifies certain
provisions of the Agreement to be applied provisionally.

(3) 
Article 462(2) of the Agreement provides that
the Association Council shall establish its own rules of procedure.

(4) 
Article 464(1) of the Agreement provides that
the Association Council shall be assisted in the performance of its duties by
an Association Committee while Article 465(1) provides that the Association
Council shall determine in its rules of procedure the duties and functioning of
the Association Committee.

(5) 
Article 462(3) of the Agreement provides that
the Association Council shall be chaired in turn by a representative of the
Union and a representative of Ukraine.

(6) 
Article 466(2) provides that the Association
Council may decide to set up any other Sub-Committee or body in specific areas
necessary for the implementation of the Agreement that can assist it in
carrying out its duties.

(7) 
The Association Council is responsible for
supervising and monitoring the application and implementation of the Agreement.
The Association Council may delegate to the Association Committee any of its
powers, including the power to take binding decisions. It is appropriate that
the Association Council delegates to the Association Committee in Trade
configuration, as referred to in Article 465(4) of the Agreement, the power to
update or amend the Annexes to this Agreement which relate to Chapters 1
(Annexes I-C and I-D), 3, 5, 6 and 8 of Title IV (Trade and Trade‑related
Matters), pursuant to Articles 463(3) and 465(2) of the Agreement to the extent
that there are no specific provisions in those Chapters relating to the update
or the amendment of the Annexes in this Agreement.

(8) 
In order to ensure the effective implementation
of the Agreement, the rules of procedure should be adopted as soon as possible,
including by written procedure.

HAS ADOPTED THIS DECISION:

Article 1

1.           The position to be adopted on
behalf of the Union and the European Atomic Energy Community in the Association
Council established by Article 464 of the Association Agreement between the
European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, shall be hereby established in
relation to:

–        the adoption of the rules of procedure of the Association
Council and of the Association Committee,

–        the establishment of Sub-Committees and the adoption of
their rules of procedure,

and

–        the delegation of certain powers by the Association Council
to the Association Committee in Trade configuration under the terms of the
draft Association Council decisions annexed to this Decision.

2.           Minor technical changes to the
draft decisions may be agreed to by the representatives of the Union in the Association Council without further decision of the Council.

Article 2

The Association Council shall be chaired
on the Union side by the High Representative of the Union for Foreign Affairs
and Security Policy.

Article
3

This Decision shall enter into force on
the date of its adoption.

Done at Brussels,

For
the Council                                               For the Commission
The President                                                  The
President

[1]               OJ L
278 of 15.09.2014 p.1 to 8

[2]               OJ L
161 of 29.05.2014 p. 1

[3]               OJ L
161 of 29.05.2014 p. 1

[4]               OJ L
278 of 15.09.2014 p.1 to 8

ANNEX 1
DECISION No 1/2014 OF THE
EU-UKRAINE ASSOCIATION COUNCIL
of ... 2014
adopting its rules of procedure and those of the Association Committee

THE EU-UKRAINE ASSOCIATION COUNCIL,

Having regard to the Association
Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and Ukraine, of the other part,
(hereinafter referred to as ‘the Agreement’) and in particular Article 462
thereof,

Whereas:

(1)          In accordance with its Article
486, parts of the Agreement are applied provisionally as of 1 November 2014.

(2)          Article 462(2) of the Agreement
provides that the Association Council shall establish its rules of procedure.

(3)          Article 464(1) of the Agreement
provides that the Association Council shall be assisted in the performance of
its duties by an Association Committee while Article 465(1) provides that the
Association Council shall determine in its rules of procedure the duties and
functioning of the Association Committee.

HAS DECIDED AS FOLLOWS:

Sole
Article

The rules of procedure of the
Association Council and those of the Association Committee, as set out in
Appendices A and B respectively, are hereby adopted.

Done at ..., ....

|| For the Association Council The Chair

APPENDIX
A

Rules
of procedure of the EU-Ukraine Association Council

Article 1

General
provisions

1.           The
Association Council established in accordance with Article 461(1) of the
Association Agreement between the European Union and the European
Atomic Energy Community and their Member States, of the one
part, and Ukraine, of the other (hereinafter referred to as the “Agreement”)
shall perform its duties as provided for in Articles 461 and 463of the
Agreement and take responsibility for general implementation of the Agreement,
as well as any other bilateral, multilateral or international question of
common interest.

2.           As
provided for in Article 5(1) of the Agreement the Parties shall hold regular
political dialogue meetings at Summit level. 2. According to Article 5(2) of
the Agreement, at ministerial level political dialogue shall take place, by
mutual agreement, within the Association Council referred to in Article 460 of
the Agreement and within the framework of regular meetings between
representatives of the Parties at Foreign Minister level.

3.           As
provided for in Article462(1) of the Agreement, the Association Council shall
be composed of members of the Council of the European Union and members of the
European Commission, of the one part and members of the Government of Ukraine,
of the other part. The composition of the Association Council shall take into
consideration the specific issues to be addressed at any given meeting. The
Association Council shall meet at ministerial level.

4.          As
provided for in Article 463(1) of the Agreement, for the purpose of attaining
the objectives thereof, the Association Council shall have the power to take
decisions that are binding upon the Parties. The Association Council shall take
appropriate measures for the implementation of its decisions, including, if
necessary, by empowering specific bodies established under this Agreement to
act on its behalf. The Association Council may also make recommendations. It
shall adopt its decisions and recommendations by agreement between the Parties
after the completion of the respective internal procedures for their adoption.
The Association Council may delegate its powers to the Association Committee.

5.           The
Parties in these rules of procedure are those defined in Article 482 of the
Agreement.

Article 2

Chairmanship

The Parties shall
hold the Chair of the Association Council, alternately, for a period of 12
months. The first period shall begin on the date of the first Association
Council meeting and end on 31 December of the same year.

Article 3

Meetings

1.           The
Association Council shall meet at least once a year, and when circumstances
require, by mutual agreement.  Unless otherwise agreed by the Parties, the
Association Council shall be held at the usual venue for meetings of the
Council of the European Union.

2.           Each
session of the Association Council shall be held at a date agreed by the
Parties.

3.           The
meetings of the Association Council shall be convened jointly by the
Secretaries of the Association Council, in agreement with the Chair of the
Association Council not later than 30 days before the date of the meeting.

Article 4

Representation

1.           The
members of the Association Council may be represented if unable to attend. If a
member wishes to be so represented, they must inform in writing the Chair of
the name of their representative before the meeting at which they are to be so
represented.

2.           The
representative of a member of the Association Council shall exercise all the
rights of that member.

Article 5

Delegations

1.           The
members of the Association Council may be accompanied by officials. Before each
meeting, the Chair shall be informed, through the Secretariat, of the intended
composition of the delegation of each Party.

2.           The
Association Council may, by agreement between the Parties, invite representatives
of other bodies of the Parties or independent experts in a subject area to
attend its meetings as observers or in order to provide information on
particular subjects. The Parties shall agree on the terms and conditions under
which these observers may attend the meetings.

Article 6

Secretariat

An official of the General Secretariat
of the Council of the European Union and an official of Ukraine shall act jointly as Secretaries of the Association Council.

Article 7

Correspondence

1.           Correspondence
addressed to the Association Council shall be directed to the Secretary of
either the Union or of Ukraine, who in turn will inform the other Secretary.

2.           The
two Secretaries shall ensure that correspondence is forwarded to the Chair and,
where appropriate, circulated to the members of the Association Council.

3.           Correspondence
so circulated shall be sent, as appropriate, to to the General Secretariat of
the European Commission, the European External Action Service, the Permanent
Representations to the European Union of the Member States and to the General
Secretariat of the Council of the European Union, as well as to the Mission of
Ukraine to the European Union.

4.           Communications
from the Chair of the Association Council shall be sent to the addressees by
the two  Secretaries on behalf of the Chair of the Association Council. Such
communications shall be circulated, where appropriate, to the members of the
Association Council as provided for in the third paragraph.

Article 8

Confidentiality

Unless
otherwise decided by the Parties, the meetings of the Association Council shall
not be public. When a Party submits to the Association Council
information designated as confidential, the other Party shall treat that
information as such.

Article 9

Agendas
for the meetings

1.           The
Chair shall draw up a provisional agenda for each meeting. It shall be
dispatched by the Secretaries of the Association Council to the addressees
referred to in Article 7 of the rules of procedure not later than 15 calendar
days before the meeting.

The provisional
agenda shall include the items in respect of which the Chair has received a
request for inclusion in the agenda not later than 21 calendar days before the
beginning of the meeting. Such items shall not be written into the provisional
agenda unless the relevant supporting documents have been sent to the
Secretaries before the date of dispatch of the agenda.

2.           The
agenda shall be adopted by the Association Council at the beginning of each
meeting. An item other than those appearing on the provisional agenda may be
placed on the agenda if the Parties so agree.

3.           The
Chair may reduce, in consultation with the Parties, the time periods specified
in paragraph 1 in order to take account of the requirements of a particular
case.

Article 10

Minutes

1.           Draft
minutes of each meeting shall be drawn up jointly by the two Secretaries.

2.           The
minutes shall, as a general rule, indicate in respect of each item on the
agenda:

(a)     the
documentation submitted to the Association Council;

(b)     statements
which a member of the Association Council has asked to be entered;

and

(c)     issues
agreed to by the Parties, such as decisions adopted, the statements agreed upon
and any conclusions, among others.

3.           The
draft minutes shall be submitted to the Association Council for approval. The
Association Council shall approve the minutes at its next meeting.
Alternatively, the draft minutes can be approved in writing.

Article 11

Decisions
and recommendations

1.           The
Association Council shall take decisions and make recommendations by mutual
agreement between the Parties and on completion of the respective internal
procedures.

2.           The
Association Council may also take decisions or make recommendations by written
procedure if the Parties so agree. For this purpose, the text of the proposal
shall be circulated in writing by the Chair of the Association Council to its
members pursuant to Article 7 of the rules of procedure, with a time limit of
no less than 21 calendar days within which members must make known any
reservations or amendments they wish to make. The Chair may reduce, in
consultation with the Parties, the aforementioned time limit in order to take
account of the requirements of a particular case.

3.           The
acts of the Association Council, within the meaning of Article 463(1) of the
Agreement, shall be entitled respectively "Decision" or
"Recommendation" followed by a serial number, the date of their
adoption and a description of their subject-matter. The decisions and
recommendations of the Association Council shall be signed by the Chair and
authenticated by the two Secretaries. The decisions and recommendations shall
be circulated to each of the addressees referred to in Article 7 of these rules
of procedure. Each Party may decide on the publication of the decisions and
recommendations of the Association Council in its respective official
publication.

4.           Each
decision shall enter into force on the date of its adoption unless the decision
provides otherwise.

Article 12

Languages

1.           The official languages of the Association
Council shall be the official languages of the Parties.

2.           Unless
otherwise decided, the Association Council shall normally base its
deliberations on documentation prepared in these languages.

Article 13

Expenses

1.           Each
Party shall meet any expenses it incurs as a result of participating in the
meetings of the Association Council, both with regard to staff, travel and
subsistence expenditure and with regard to postal and telecommunications
expenditure.

2.           Expenditure in connection with
interpretation at meetings, translation and reproduction of documents shall be
borne by the European Union. In the event that Ukraine requires interpretation
or translation into and from languages other than those provided for in Article
12 of these rules of procedure, expenses related thereto shall be borne by Ukraine. , 3.          Other
expenditure relating to the material organisation of meetings shall be borne by
the Party which hosts the meetings.

Article 14

Association
Committee

1.           In
accordance with Article 464(1) of the Agreement, the Association Council shall
be assisted in carrying out its duties by the Association Committee. The
Association Committee shall be composed of representatives of the Parties, in
principle at senior civil servant level.

2.           The
Association Committee shall prepare the meetings and the deliberations of the
Association Council, implement the decisions of the Association Council where
appropriate and, in general, ensure continuity of the association relationship
and the proper functioning of the Agreement. It shall consider any matter
referred to it by the Association Council as well as any other matter which may
arise in the course of the implementation of the Agreement. It shall submit
proposals or any draft decisions/recommendations to the Association Council for
its approval. In
accordance with Article 465(2) of the Agreement, the Association Council may
empower the Association Committee to take decisions.

3.           The
Association Committee shall take the decisions and make the recommendations it
is empowered for in the Agreement.

4.           In
cases where the Agreement refers to an obligation to consult or a possibility
of consultation or where the Parties decide by mutual agreement to consult each
other, such consultation may take place within the Association
Committee, except as otherwise specified in the Agreement. The consultation may
continue in the Association Council if the two Parties so agree.

Article 15

Amendment
of rules of procedure

These rules of procedure may be amended
in accordance with Article 11 above.

APPENDIX
B

Rules
of procedure of the EU-Ukraine Association Committee and Sub-Committees

Article 1

General
provisions

1.           The
Association Committee that is established in accordance with Article 464(1) of
the Association Agreement between the European Union and the European Atomic
Energy Community and their Member States, of the one part, and Ukraine, of the
other (hereinafter referred to as the “Agreement”) shall assist
the Association Council in the performance of its duties and functions and
perform the tasks provided for in this Agreement and assigned to it by the
Association Council. Pursuant to Article 465(1) the Association Council shall
determine in its rules of procedure the duties and functioning of the Association
Committee.

2.           The
Association Committee shall prepare the meetings and the deliberations of the
Association Council, implement the decision of the Association Council where
appropriate and, in general, ensure continuity of the association relationship
and the proper functioning of the Association Agreement. It shall consider any
matter referred to it by the Association Council as well as any other matter
which may arise in the course of the day-to-day implementation of the
Association Agreement. It shall submit proposals or any draft decisions or
recommendations for adoption to the Association Council.

3.           As
provided for in Article 464(2) of the Agreement, the Association Committee
shall be composed of representatives of the Parties , in principle at senior
civil servant level, who have competence over the specific issues to be
addressed at any given meeting.

4.           Pursuant
to Article 465(4) of the Agreement, when the Association Committee in Trade
configuration performs the tasks conferred upon it in Title IV of the
Agreement, it shall be composed of senior officials of the European Commission
and of Ukraine having responsibility for trade and trade-related matters. A
representative of the European Commission or of Ukraine having responsibility
for trade and trade-related matters shall act as Chair in accordance with
Article 2 below. The meetings will also be attended by a representative of the
European External Action Service.

5.           As
provided for in Article 465(3) of the Agreement the Association Committee in
Trade configuration shall have the power to adopt decisions in the cases
provided for in the Agreement and in areas in which the Association Council has
delegated powers to it. These decisions shall be binding upon the Parties,
which shall take appropriate measures to implement them. The Association
Committee shall adopt its decisions by agreement between the Parties after the
completion of the respective internal procedures for their adoption.

6.           The
Parties in these rules of procedure shall be defined as provided for in Article
482 of the Agreement.

Article 2

Chairmanship

The Parties shall
hold the Chair of the Association Committee, alternately, for a period of 12
months. The first period shall begin on the date of the first Association
Council meeting and end on 31 December of the same year.

Article 3

Meetings

1.           Save
as otherwise agreed by the Parties, the Association Committee shall meet
regularly, at least once a year. Special sessions of the Association Committee
may be held if the Parties so agree, at the request of either Party.

2.           Each
meeting of the Association Committee shall be convened by the Chair at a date
and place agreed by the Parties. The notice of convening the meeting shall be
issued by the Secretariat of the Association Committee no later than 28
calendar days prior to the start of the meeting, unless the Parties agree
otherwise.

3.           The
Association Committee in Trade configuration shall meet at least once a year
and when circumstances require. Each meeting shall be convened by the
Chair of the Association Committee in Trade confirguration at a date, location
and means agreed by the Parties. The notice convening the meeting shall be
issued by the Secretariat of the Association Committee in Trade configuration
no later than 15 calendar days prior to the start of the meeting, unless the
Parties agree otherwise.

4.           Whenever
possible, the regular meeting of the Association Committee shall be convened in
due time in advance of the regular meeting of the Association Council.

5.           By
way of exception and if the Parties agree, the meetings of the Association
Committee may be held by any agreed technological means such
as video-conference.

Article 4

Delegations

Before each
meeting, the Parties shall be informed, through the Secretariat, of the intended
composition of the delegations attending the meeting on either side.

Article 5

Secretariat

1.         An
official of the Union and an official of Ukraine shall act jointly as
Secretaries of the Association Committee and shall execute secretarial tasks in
a joint manner unless these rules of procedure otherwise provide, in a spirit
of mutual trust and cooperation.

2.         An
official of the European Commission and an official of Ukraine having
responsibility for trade and trade-related matters shall act jointly as
Secretaries of the Association Committee in Trade configuration.

Article 6

Correspondence

1.           Correspondence
addressed to the Association Committee shall be directed to the Secretary of
either of the Parties, who in turn will inform the other Secretary.

2.           The
Secretariat shall ensure that correspondence addressed to the Association
Committee is forwarded to the Chair of the Committee and circulated, where
appropriate, as documents referred to in Article 7 of these rules of procedure.

3.           Correspondence
from the Chair of the Association Committee shall be sent to the Parties by the
Secretariat on behalf of the Chair of the Association Committee. Such
correspondence shall be circulated, where appropriate, as provided for in
Article 7 of these rules of procedure.

Article 7

Documents

1.           Documents
shall be circulated through the Secretaries.

2.           A
Party shall transmit its documents to its Secretary. The Secretary shall
transmit those documents to the Secretary of the other Party.

3.           The
Secretary of the Union shall circulate the documents to the responsible representatives
of the Union and shall copy systematically the Secretary of Ukraine
in such correspondence.

4.           The
Secretary of Ukraine shall circulate the documents to the responsible
representatives of Ukraine and shall copy systematically
the Secretary of the Union in such correspondence.

Article 8

Confidentiality

Unless otherwise
decided by the Parties, the meetings of the Association Committee shall not be
public. When
a Party submits to the Association Committee information designated as
confidential, the other Party shall treat that information as such.

Article 9

Agendas
for the Meetings

1.           A
provisional agenda for each meeting as well as draft Operational Conclusions as
provided for in Article 10 hereunder shall be drawn up by the Secretariat of
the Association Committee on the basis of proposals made by the Parties. The
provisional agenda shall include items in respect of which the Secretariat of
the Association Committee has received a request for inclusion in the agenda by
a Party, supported by relevant documents, no later than 21 calendar days before
the meeting.

2.           The
provisional agenda, together with the relevant documents, shall be circulated
as provided for in Article 7 no later than 15 calendar days before the meeting
date.

3.           The
agenda shall be adopted by the Association Committee at the beginning of each
meeting. Items other than those appearing on the provisional agenda may be
placed on the agenda if the Parties so agree.

4.           The
Chair of the meeting of the Association Committee may, upon agreement of the
other Party, invite representatives of other bodies of the Parties or
independent experts in a subject-area on an ad-hoc basis to attend its
meetings in order to provide information on specific subjects. The Parties
shall ensure that those observers or experts respect any confidentiality
requirements.

5.           The
Chair of the meeting of the Association Committee may reduce, in consultation
with the Parties, the time periods specified in paragraphs 1 and 2 in order to
take account of special circumstances.

Article 10

Minutes
and Operational Conclusions

1.           Draft
minutes of each meeting shall be drawn up jointly by the two Secretaries.

2.                     The minutes shall, as a general rule,
indicate in respect of each item on the agenda:

(a)     a list of
participants in the meeting, a list of officials accompanying them and a list
of any observers or experts who attended the meeting;

(b)     the documentation submitted to the
Association Committee;

(c)     statements which the Association
Committee has asked to be entered; and

(d)     Operational Conclusions from the
meeting, as provided in paragraph (4).

2.           The draft minutes shall be
submitted to the Association Committee for approval. The Association Committee
shall approve the minutes at its next meeting. Alternatively, the draft minutes
can be approved in writing. The minutes of the Association Committee in Trade
configuration shall be approved within 28 calendar days after each meeting. A
copy shall be sent to each of the addressees referred to in Article 7 of the
rules of procedure.

3.           Draft Operational Conclusions of
each meeting shall be drawn up by the Secretary of the Association Committee of
the Party holding the Chairmanship, and circulated to the Parties together with
the agenda, normally no later than 15 calendar days before the beginning of the
meeting. This draft shall be updated as the meeting proceeds so that at the end
of the meeting, unless agreed otherwise by the Parties, the Association
Committee adopts the Operational Conclusions, reflecting the follow up actions
by the Parties.  Once agreed the Operational Conclusions shall be attached to
the minutes and their implementation shall be reviewed during any subsequent
meeting of the Association Committee. To that end the Association Committee
shall adopt a template, allowing for each action point to be tracked against a
specific deadline.

Article 11

Decisions
and recommendations

1.           In
the specific cases where the Agreement confers the power to take decisions or
where such power has been delegated to it by the Association Council, the
Association Committee shall take decisions. It shall also make recommendations.
Decisions and recommendations shall be made by mutual agreement between the
Parties and on completion of the respective internal procedures. Each decision
or recommendation shall be signed by the Chair and authenticated by the two
Secretaries.

2.           The
Association Committee may take decisions or make recommendations by written
procedure if the Parties so agree. The written procedure shall consist of an
exchange of notes between the two Secretaries, acting in agreement with the
Parties.  For this purpose, the text of the proposal shall be circulated
pursuant to Article 7, with a time limit of no less than 21 calendar days
within which any reservations or amendments must be made known. The Chair of
the Association Committee may reduce, in consultation with the Parties, the
time periods specified in this paragraph in order to take account of special circumstances.
Once the text is agreed, the decision or recommendation shall be signed by the
Chair and authenticated by the two Secretaries.

3.           The
acts of the Association
Committee shall be entitled ‘Decision’ or ‘Recommendation’ respectively. Each
decision shall enter into force on the date of its adoption unless the decision
provides otherwise.

4.           The
decisions and recommendations shall be  circulated to both Parties.

5.           Each
Party may decide on the publication of the decisions and recommendations of the
Association Committee in its respective official publication.

Article 12

Reports

The Association
Committee shall report to the Association Council on its activities and those
of its Sub-Committees, Working Groups and other bodies at each regular meeting
of the Association Council.

Article 13

Languages

1.           The
official languages of the Association Committee shall be the official languages
of the Parties

2.           The
working languages of the Association Committee shall be English and Ukrainian.
Unless otherwise decided, the Association Committee shall base its
deliberations on documentation prepared in both of
these languages.

Article 14

Expenses

1.           Each
Party shall meet any expenses it incurs as a result of participating in the
meetings of the Association Committee, both with regard to staff, travel and
subsistence expenditure and with regard to postal and
telecommunications expenditure.

2.           Expenditure
in connection with the organisation of meetings and reproduction of documents
shall be borne by
the Party hosting the meeting.

3.           Expenditure
in connection with interpreting at meetings and translation of documents into
or from English and Ukrainian as referred to in Article 13(1) of these rules of
procedure shall be borne by the Party hosting the meeting.

Interpreting and
translation into or from other languages shall be borne directly by the
requesting Party.

4.           In
cases where translation of documents into the official EU languages is
necessary the expenditure shall be borne by the European Union.

Article
15

Amendment
of Rules of procedure

These rules of
procedure may be amended by a decision of the Association Council in accordance
with Article 465(1).

Article 16

Sub-Committees, special committees
or bodies

1.           In
accordance with Article 466(2) of the Agreement, the Association Committee may
decide to create Sub-Committees or any special committee or body in specific
areas necessary for the implementation of the Agreement other than those
provided for in the Agreement to assist it in the performance of its duties.
The Association Committee may decide to abolish any such Sub-Committee, special
committee or body, define or amend their rules of procedure. Unless otherwise
decided, these Sub-Committees shall work under the authority of the Association
Committee, to which they shall report after each of their meetings.

2.           Unless
otherwise provided for by the Agreement or agreed in the Association Council,
the present rules of procedure shall be applied mutatis mutandis to any
Sub-Committee, special committee or body as provided for under (1).above.

3.           The
meetings of the Sub-Committees created under the Agreement may be held flexibly
as the need arises, in person, either in Brussels or in the partner country or
e.g. by videoconference. The Sub-Committees should be the platform to monitor
the progress on approximation in specific areas, to discuss certain issues and
challenges arising from this process and to formulate recommendations and
operational conclusions.

4.           The
Secretariat of the Association Committee shall be in copy of all relevant
correspondence, documents and communications pertaining to a Sub-Committee,
special committee or body as provided for under (1) above.

5.           Unless
otherwise provided for in the Agreement or agreed by the Parties within the Association
Council, the Sub-Committees, special committee or bodies shall only have the
power to make recommendations to the Association Committee.

Article
17

These rules of
procedure shall apply to the Association Committee in Trade configuration mutandis
mutatis, unless otherwise provided.

ANNEX
II

DECISION
No 2/2014 OF THE EU-UKRAINE ASSOCIATION COUNCIL

of
.. 2014

on
the establishment of two Sub-Committees

THE EU-UKRAINE ASSOCIATION
COUNCIL,

Having regard to the Association
Agreement between the European Union and the European Atomic Energy Community
and their Member States, of the one part, and Ukraine, of the other part, (‘the
Agreement’) and in particular Article 466(2) thereof,

Whereas:

(1)          In accordance with its Article
486, parts of the Agreement are applied provisionally as of 1 November 2014.

(2)          Article 466(2) provides that the
Association Council may decide to set up any other Sub-Committee or body in
specific areas necessary for the implementation of the Agreement that can
assist it in carrying out its duties.

(3)          In order to allow for expert
level discussions on the key areas falling within scope of the provisional
application of the Agreement, two Sub-Committees should be established. Upon
further agreement of the Parties both the list of Sub-Committees and the scope
of the individual Sub-Committees can be modified.

HAS ADOPTED THIS DECISION:

Sole
Article

The
Sub-Committees listed in Appendix A are hereby established. The rules of
procedure of the Sub-Committees are governed by Article 16 of the rules of
procedure of the Association Committee and Sub-Committees of the EU-Ukraine
Association Agreement as adopted by Decision No 1/2014 of the EU-Ukraine
Association Council.

Done at,

For the Association Council

The Chair

Appendix A to ANNEX II

EU-Ukraine Association Council

Sub-Committees established:

– 
(1)   Sub-Committee on Justice, Freedom &
Security;

– 
(2)   Sub-Committee on Economic and other Sector
cooperation.

ANNEX
III

DECISION
No 3/2014 OF THE EU-UKRAINE ASSOCIATION COUNCIL

of
.. 2014

on
the delegation of certain powers by the Association Council to the Association
Committee in Trade configuration

THE EU-UKRAINE ASSOCIATION
COUNCIL,

Having regard to
the Association Agreement between the European Union and the European Atomic
Energy Community and their Member States, of the one part, and Ukraine, of the
other part, (‘the Agreement’) and in particular Articles 463(3) and 465(2)
thereof,

Whereas:

(1)          Parts
of the Agreement are applied provisionally as of 1 November 2014, pursuant to
Article 486 of the Agreement.

(2)          The
Association Council is responsible for supervising and monitoring the
application and implementation of the Agreement.

(3)         The
Association Council may delegate to the Association Committee any of its
powers, including the power to take binding decisions, pursuant to Article
465(2) of the Agreement.

(4)          The
Association Committee in Trade configuration addresses all issues related to
Title IV (Trade and Trade-related Matters) as specified in Article 465(4) of
the Agreement.

(5)          In
order to ensure smooth and timely implementation of the DCFTA part of the
Agreement, it
is appropriate that the Association Council delegates to the Association
Committee meeting in Trade configuration the power to update or amend the
Annexes to this Agreement which relate to Chapters 1, 3, 5, 6 and 8 of Title IV
(Trade and Trade‑related Matters) of this Agreement to the extent that
there are no specific provisions in those Chapters relating to the update or
the amendment of those Annexes in this Agreement.

HAS ADOPTED THIS
DECISION:

Sole Article

The Association
Council delegates to the Association Committee in Trade configuration, as
referred to in Article 465(4) of the Agreement, the power to update or amend
the Annexes which relate to Chapters 1 (Annexes I-C and I-D), 2, (Annex II), 3,
5, 6 and 8 of Title IV (Trade and Trade‑related Matters) of this
Agreement, to the extent that there are no specific provisions in those
Chapters relating to the update or the amendment of those Annexes in this
Agreement.

For the Association Council

The Chair