# EUR-Lex - 21976A0426(01) - EN

Avis juridique important

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# 21976A0426(01)

**Cooperation Agreement between the European Economic Community and the People's Democratic Republic of Algeria - Protocol 1 on technical and financial cooperation - Protocol 2 concerning the definition of the concept of 'originating products' and methods of administrative cooperation - Final Act - Joint Declarations - Exchanges of letters **

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Official Journal L 263 , 27/09/1978 P. 0002 - 0118 Finnish special edition: Chapter 11 Volume 5 P. 0058 Swedish special edition: Chapter 11 Volume 5 P. 0058 Greek special edition: Chapter 11 Volume 10 P. 0004 Spanish special edition: Chapter 11 Volume 8 P. 0071 Portuguese special edition Chapter 11 Volume 8 P. 0071 *

COOPERATION AGREEMENT between the European Economic Community and the People's Democratic Republic of Algeria

HIS MAJESTY THE KING OF THE BELGIANS,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

and

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part, and

THE PRESIDENT OF THE COUNCIL OF THE REVOLUTION, PRESIDENT OF THE COUNCIL OF MINISTERS OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA,

of the other part,

PREAMBLE

WISHING to demonstrate their common desire to maintain and strengthen their friendly relations in accordance with the principles of the United Nations Charter,

RESOLVED to establish wide-ranging cooperation which will contribute to Algeria's economic and social development and help to strengthen relations between the Community and Algeria,

RESOLVED to promote, having regard to their respective levels of development, economic and trade cooperation between Algeria and the Community and to provide a sound basis therefor in conformity with their international obligations,

RESOLVED to establish a new model for relations between developed and developing States, compatible with the aspirations of the international community towards a more just and more balanced economic order,

HAVE DECIDED to conclude this Agreement, and to this end have designated as their Plenipotentiaries: HIS MAJESTY THE KING OF THE BELGIANS:

Robert VANDERKERCKHOVE,

Minister for Institutional Reforms;

HER MAJESTY THE QUEEN OF DENMARK:

Mogens WANDEL-PETERSEN,

Ambassador,

Director-General;

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:

Hans-Jürgen WISCHNEWSKI,

Minister of State, Federal Foreign Office;

THE PRESIDENT OF THE FRENCH REPUBLIC:

Jean FRANÇOIS-PONCET,

State Secretary for Foreign Affairs;

THE PRESIDENT OF IRELAND:

Garret FITZGERALD,

Minister for Foreign Affairs;

THE PRESIDENT OF THE ITALIAN REPUBLIC:

Francesco CATTANEI,

State Secretary for Foreign Affairs;

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:

Gaston THORN,

President-in-Office of the Council of the European Communities,

President and Minister for Foreign Affairs of the Government of the Grand Duchy of Luxembourg;

HER MAJESTY THE QUEEN OF THE NETHERLANDS:

L.J. BRINKHORST,

State Secretary for Foreign Affairs;

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:

J.E. TOMLINSON,

Parliamentary Under-Secretary of State;

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Gaston THORN,

President-in-Office of the Council of the European Communities,

President and Minister for Foreign Affairs of the Government of the Grand Duchy of Luxembourg;

Claude CHEYSSON,

Member of the Commission of the European Communities;

THE PRESIDENT OF THE COUNCIL OF THE REVOLUTION, PRESIDENT OF THE COUNCIL OF MINISTERS OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA:

Abdelaziz BOUTEFLIKA,

Member of the Council of the Revolution and Minister for Foreign Affairs;

Article 1

The object of this Agreement between the European Economic Community and Algeria is to promote overall cooperation between the Contracting Parties with a view to contributing to the economic and social development of Algeria and helping to strengthen relations between the Parties. To this end provisions and measures will be adopted and implemented in the field of economic, technical and financial cooperation, and in the trade and social fields.

TITLE I ECONOMIC, TECHNICAL AND FINANCIAL COOPERATION

Article 2

The Community and Algeria shall institute cooperation with the aim of contributing to the development of Algeria by efforts complementary to those made by Algeria itself, and of strengthening existing economic links on as broad a basis as possible for the mutual benefit of the Parties.

Article 3

In order to achieve the cooperation referred to in Article 2, account shall be taken, in particular, of the following: - the objectives and priorities of Algeria's development plans and programmes;

- the importance of schemes into which different operations are integrated;

- the importance of promoting regional cooperation between Algeria and other States.

Article 4

1. The purpose of cooperation between the Community and Algeria shall be to promote, in particular: - participation by the Community in the efforts made by Algeria to develop its production and economic infrastructure in order to diversify its economic structure. Such participation should be connected, in particular, with the industrialization of Algeria and the modernization of its agriculture;

- the marketing and sales promotion of products exported by Algeria;

- industrial cooperation aimed at boosting the industrial production of Algeria through measures: - to encourage participation by the Community in the implementation of Algeria's industrial development programmes,

- to foster the organization of contacts and meetings between Algerian and Community industrial policy-makers promoters and firms in order to promote the establishment of new relations in the industrial field in conformity with the objectives of the Agreement,

- to facilitate the acquisition on favourable terms of patents and other industrial property by means of financing in conformity with Protocol 1 and/or by other appropriate arrangements with undertakings and institutions in the Community,

- to permit the removal of non-tariff and nonquota barriers likely to impede access to either market;

- cooperation in the fields of science, technology and the protection of the environment;

- as regards energy, the participation by Community operators in programmes for the exploration, production and processing of Algeria's energy resources and any activities which would develop these resources on the spot, and the proper performance of long-term contracts for the delivery of oil, gas or petroleum products between their operators;

- cooperation in the fisheries sector;

- the encouragement of private investments which are in the mutual interest of both Parties;

- exchange of information on the economic and financial situation, and on the trend thereof, as required for the proper functioning of the Agreement.

2. The Contracting Parties may decide on further areas of cooperation.

Article 5

1. The Cooperation Council shall periodically define the guidelines of cooperation for the purpose of attaining the aims set out in the Agreement.

2. The Cooperation Council shall be responsible for seeking ways and means of establishing cooperation in the areas defined in Article 4. To that end it is empowered to make decisions.

Article 6

The Community shall participate in the financing of any measures to promote the development of Algeria under the conditions laid down in Protocol 1 on technical and financial cooperation.

Article 7

The Contracting Parties shall facilitate the proper performance of cooperation and investment contracts which are of interest to both Parties and come within the framework of the Agreement.

TITLE II TRADE

Article 8

In the field of trade, the object of this Agreement is to promote trade between the Contracting Parties, taking account of their respective levels of development and of the need to ensure a better balance in their trade, with a view to increasing the rate of growth of Algeria's trade and improving the conditions of access for its products to the Community market.

A. Industrial products

Article 9

1. Subject to the special provisions of Articles 11, 12 and 14, products originating in Algeria which are not listed in Annex II to the Treaty establishing the European Economic Community shall be imported into the Community free of quantitative restrictions and measures having equivalent effect, and of customs duties and charges having equivalent effect.

2. The new Member States shall apply the provisions of paragraph 1, it being understood that in no case may they apply more favourable treatment to Algeria than to the Community as originally constituted.

Article 10

1. In the case of customs duties comprising a protective element and a fiscal element, Article 9 shall apply to the protective element.

2. The United Kingdom shall replace the fiscal element of the customs duties referred to in paragraph 1 by an internal tax in accordance with Article 38 of the Act concerning the conditions of accession and the adjustments to the Treaties of 22 January 1972.

Article 11

The measures provided for in Article 1 of Protocol 7 to the Act concerning the conditions of accession and the adjustments to the Treaties referred to in Article 10 on imports of motor vehicles and the motor vehicle assembly industry in Ireland shall apply to Algeria.

Article 12

1. Imports of the following products shall be subject to annual ceilings above which the customs duties actually applied in respect of third countries may be reintroduced in accordance with paragraphs 2 to 5, the ceiling fixed for the year of the entry into force of the Agreement being indicated in each case. >PIC FILE= "T0008260">

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2. As from the second year after the entry into force of the Agreement, the ceilings shown in paragraph 1 shall be increased annually by 3 % for heading Nos 45.02, 45.03 and 45.04 and by 5 % for the other tariff headings.

3. When a ceiling fixed for imports of a product referred to in paragraph 1 is reached, the customs duties actually applied in respect of third countries may be reimposed on imports of the product in question until the end of the calendar year.

When imports into the Community of a product subject to ceilings reach 75 % of the level fixed, the Community shall inform the Cooperation Council.

4. After 1 July 1977 the Contracting Parties shall examine within the Cooperation Council the possibility of increasing the percentage by which the ceilings for articles of cork of heading No 45.02, 45.03 or 45.04 are raised.

5. The ceilings provided for in this Article shall be abolished by 31 December 1979 at the latest.

Article 13

1. The Community reserves the right to modify the arrangements applicable to the petroleum products falling within subheadings and heading Nos 27.10, 27.11 A and B I, 27.12, 27.13 B or 27.14 of the Common Customs Tariff: - upon adoption of a common definition of origin for petroleum products,

- upon adoption of decisions under a common commercial policy, or

- upon establishment of a common energy policy.

2. In that event the Community shall ensure that imports of these products will enjoy advantages equivalent to those provided for in this Agreement.

For the application of this paragraph consultations shall be held within the Cooperation Council at the request of the other Party.

3. Subject to paragraph 1, this Agreement shall not affect the non-tariff rules applied to imports of petroleum products.

Article 14

For goods resulting from the processing of agricultural products listed in Annex A, the reductions specified in Article 9 shall apply to the fixed component of the charge levied on imports of these products into the Community.

B. Agricultural products

Article 15

1. Customs duties on imports into the Community of the products originating in Algeria which are listed below shall be reduced by the rates indicated for each of them. >PIC FILE= "T0008262">

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>PIC FILE= "T0008265">

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2. As from the implementation of Community rules on potatoes, the tariff reduction provided for in paragraph 1 for the products of subheading 07.01 A II ex a) shall be 50 % and shall be applicable for the period from 1 January to 15 April.

3. Paragraph 1 shall apply to fresh lemons of subheading 08.02 ex C of the Common Customs Tariff on condition that on the internal Community market the prices of lemons imported from Algeria are, after customs clearance and deduction of import charges other than customs duties, not less than the reference price plus the incidence on that reference price of the customs duties actually applied in respect of third countries and a fixed amount of 1.20 units of account per 100 kilograms.

4. The import charges other than customs duties referred to in paragraph 3 shall be those laid down for calculating the entry prices referred to in Regulation (EEC) No 1035/72 on the common organization of the market in fruit and vegetables.

However, the Community shall be entitled to calculate the amount to be deducted in respect of the import charges other than customs duties referred to in paragraph 3 in such a way, according to origin, as to avoid difficulties which may arise from the incidence of those charges on entry prices.

Articles 23 to 28 of Regulation (EEC) No 1035/72 shall continue to apply.

Article 16

1. Provided that Algeria levies a special charge on exports of olive oil, other than olive oil having undergone a refining process, falling within subheading 15.07 A II of the Common Customs Tariff and provided also that this special charge is reflected in the import price, the Community shall take the necessary measures to ensure that: (a) the levy on imports into the Community of the said olive oil, wholly obtained in Algeria and transported direct from that country to the Community, is the import levy calculated in accordance with Article 13 of Regulation No 136/66/EEC on the establishment of a common organization of the market in oils and fats, less 0.5 unit of account per 100 kilograms

(b) the amount of the levy calculated in the manner described under (a) is reduced by an amount equal to that of the special charge paid but not exceeding 10 units of account per 100 kilograms;

2. If Algeria does not levy the charge referred to in paragraph 1, the Community shall take the necessary measures to ensure that the levy on imports into the Community of olive oil, other than olive oil having undergone a refining process, falling within subheading 15.07 A II of the Common Customs Tariff, is the import levy calculated in accordance with Article 13 of Regulation No 136/66/EEC on the establishment of a common organization of the market in oils and fats, less 0.5 unit of account per 100 kilograms.

3. Each Contracting Party shall take the measures necessary for implementation of paragraph 1 and, in the event of difficulties and at the request of the other Contracting Party, shall supply the information required for the proper operation of the system.

4. Consultations on the functioning of the system provided for in this Article shall take place within the Cooperation Council at the request of either Contracting Party.

Article 17

Without prejudice to the collection of the variable component of the levy calculated in accordance with Article 14 of Regulation No 136/66/EEC, the fixed component shall not be imposed on imports into the Community of olive oil having undergone a refining process, falling within subheading 15.07 A I of the Common Customs Tariff, wholly obtained in Algeria and transported direct from that country to the Community.

Article 18

1. From 1 July 1976 prepared and preserved sardines falling within subheading 16.04 D of the Common Customs Tariff originating in Algeria may be imported into the Community free of customs duties subject to observance of the minimum prices fixed in accordance with the following paragraphs.

2. For the period 1 July 1976 to 30 June 1978 the minimum prices referred to in paragraph 1 shall be those specified in Annex C. The prices for the period beginning 1 July 1978 shall be not lower than those specified in the said Annex as updated by exchange of letters between the Contracting Parties in order to take account of the trend of costs for the products in question.

3. From 1 July 1979 the minimum prices referred to in paragraph 1 shall be agreed by annual exchanges of letters between the Contracting Parties.

4. Exemption from the customs duties referred to in paragraph 1 shall apply only from the date and for the periods determined by the exchanges of letters laying down the technical rules for applying this Article.

Article 19

1. Customs duties on imports into the Community of the products originating in Algeria which are listed below shall be reduced by the following rates: >PIC FILE= "T0008269">

2. The tariff reduction referred to in paragraph 1 shall apply only from the date and for the periods determined by exchanges of letters to be concluded annually between the Contracting Parties for the purpose of establishing the conditions and detailed rules for such reduction.

Article 20

1. The treatment set out in the following paragraphs shall be applied to wine of fresh grapes falling within heading No ex 22.05 of the Common Customs Tariff originating in Algeria and imported into the Community provided that, subject to the special provisions set out in this Article, the import prices of such products plus the customs duties actually levied are not less at any given time than the Community reference prices for such wine.

2. (a) For the wine referred to in paragraph 1 listed below, imported for direct human consumption, excluding the wine referred to in paragraph 3: >PIC FILE= "T0008270">

customs duties on imports into the Community shall be reduced by 80 %.

(b) For the wine referred to in paragraph 1 and listed below, intended for fortifying: >PIC FILE= "T0008271">

customs duties on imports into the Community shall be reduced by 80 %. Furthermore, in derogation from paragraph 1, for the first four years of application of the Agreement and within the limits of an annual volume of 500 000 hectolitres, the import prices, plus customs duty actually levied, must be not less than the reference prices, less: - in the first year, 30 % of the difference between the reference price and the guide price;

- in the second, third and fourth years, 22.5 %, 15 % and 7.5 % of that difference respectively.

For the application of the preceding subparagraph: - "guide price" shall mean the R I type guide price as regards red wine, and the A I type guide price as regards white wine;

- "reference price" shall mean the prices applicable to the wine in question, as established by the Community and in force at any given time during the period concerned.

3. The wine referred to in paragraph 1 and entitled under Algerian law to one of the following designations of origin:

AÏN BESSEM-BOUÏRA

MÉDÉA

COTEAUX DU ZACCAR

DAHRA

COTEAUX DE MASCARA

MONTS DU TESSALAH

COTEAUX DE TLEMCEN shall be exempt from customs duties on importation into the Community, within the limits of an annual tariff quota covering the following quantities: >PIC FILE= "T0008272">

In order to qualify for the treatment specified in the preceding subparagraph:

- wine in bulk must be put up in accordance with the following requirements: (a) the containers must be suitable for transporting wine and be used solely for that purpose;

(b) the containers must be completely filled;

(c) the means of closing the containers must be such that they cannot be tampered with and must ensure that they cannot be the subject of operations during transportation or storage other than those carried out under the supervision of the authorities of Algeria or of the Member States of the Community;

(d) each container must be labelled in such a way as to permit identification of the quality wine it contains;

(e) the wine in question may be transported only in containers of a capacity not exceeding 25 hectolitres;

- wine in bottles must be put up in containers holding two litres or less.

For the purpose of applying this paragraph, Algeria shall be responsible for verifying the identity of the above wine in accordance with its national rules, particularly as regards analysis criteria. To this end all the wine concerned shall be accompanied by a certificate of designation of origin issued by the relevant Algerian authority in accordance with the model given in Annex D to this Agreement.

4. The arrangements provided for in this Article shall be valid for a transitional period of five years from the date on which they become operative.

Article 21

1. The Community shall take all necessary measures to ensure that the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling or other working of cereals, other than of maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff and originating in Algeria, is the import levy calculated in accordance with Article 2 of Regulation (EEC) No 1052/68 on the import and export system for products processed from cereals and from rice, less a fixed amount equivalent to 60 % of the variable component of the levy, and that the fixed component is not imposed.

2. The provisions of paragraph 1 shall apply provided that Algeria levies on exports of the products referred to therein a special charge equal to the amount by which the levy is reduced and that this charge is reflected in the Community import price.

3. Detailed rules for the application of this Article shall be laid down in an exchange of letters between the Community and Algeria.

4. Consultations on the functioning of the arrangement provided for in this Article shall take place within the Cooperation Council at the request of either Contracting Party.

Article 22

1. The rates of reduction specified in Articles 15, 18, 19 and 20 shall apply to the customs duties actually applied in respect of third countries.

2. However, the duties resulting from the reductions made by Denmark, Ireland and the United Kingdom may in no case be lower than those applied by the said countries to the Community as originally constituted.

3. In derogation from paragraph 1, should the application thereof temporarily result in tariff movements away from alignment on the final duty, Denmark, Ireland and the United Kingdom may maintain their duties until the level of these duties has been reached on the occasion of a subsequent alignment, or they may apply the duty resulting from a subsequent alignment as soon as a tariff movement reaches or passes the said level.

4. The reduced duties calculated in accordance with Articles 15, 18, 19 and 20 shall be rounded off to the first decimal place.

However, subject to the application by the Community of Article 39 (5) of the Act concerning the conditions of accession and the adjustments to the Treaties referred to in Article 10, as regards the specific duties or the specific part of the mixed duties in the customs tariffs of Ireland and of the United Kingdom the reduced duties shall be rounded off to the fourth decimal place.

5. In the new Member States the variable component of the levy referred to in Article 21 shall be calculated taking into account the rates actually applied in respect of third countries.

Article 23

1. Should specific rules be introduced as a result of implementation of its agricultural policy or modification of the existing rules, or should the provisions on the implementation of its agricultural policy be modified or developed, the Community may modify the arrangements laid down in the Agreement in respect of the products concerned.

In such cases the Community shall take appropriate account of the interests of Algeria.

2. If the Community, in applying paragraph 1, modifies the arrangements made by this Agreement for products covered by Annex II to the Treaty establishing the European Economic Community, it shall accord imports originating in Algeria an advantage comparable to that provided for in this Agreement.

3. Any modification of the arrangements made by this Agreement shall be the subject, at the request of the other Contracting Party, of consultations within the Cooperation Council.

C. Common provisions

Article 24

1. The products originating in Algeria referred to in this Agreement may not enjoy more favourable treatment when imported into the Community than that applied by the Member States between themselves.

2. For the application of paragraph 1, account shall not be taken of the customs duties and charges having equivalent effect resulting from the application of Articles 32, 36, and 59 of the Act concerning the conditions of accession and the adjustments to the Treaties referred to in Article 10.

Article 25

1. Subject to the special provisions relating to frontier-zone trade, Algeria shall grant the Community in the field of trade treatment no less favourable than most-favoured-nation treatment.

2. Paragraph 1 shall not apply in the case of the maintenance or establishment of customs unions or free-trade areas.

3. Furthermore, Algeria may derogate from the provisions of paragraph 1 in the case of measures adopted with a view to the economic integration of the Maghreb, or measures benefiting the developing countries. Such measures shall be notified to the Community.

Article 26

1. The Contracting Parties shall inform each other at the time of signature of this Agreement of the provisions relating to the trade arrangements they apply.

2. Algeria shall be entitled to introduce into its trade arrangements with the Community new customs duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect and to increase the duties or charges and the quantitative restrictions or measures having equivalent effect applied to products originating in or going to the Community, where such measures are necessitated by Algeria's industrialization and development requirements. Such measures shall be notified to the Community.

For the application of these measures consultations shall be held within the Cooperation Council at the request of the other Contracting Party.

Article 27

Where Algeria applies quantitative restrictions in the form of quotas to a given product in accordance with its own legislation it shall treat the Community as a single entity.

Article 28

On the occasion of the reviews provided for in Article 53 of the Agreement the Contracting Parties shall seek opportunities to make progress towards the removal of obstacles to trade, while having regard to Algeria's essential development requirements.

Article 29

The concept of "originating products" for the purposes of implementing this title and the methods of administrative cooperation relating thereto are laid down in Protocol 2.

Article 30

In the event of modifications to the nomenclature of the customs tariffs of the Contracting Parties affecting products referred to in this Agreement, the Cooperation Council may adapt the tariff nomenclature of these products to conform with such modifications, subject to the maintenance of the real advantages resulting from this Agreement.

Article 31

The Contracting Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Contracting Party and like products originating in the territory of the other Contracting Party.

Products exported to the territory of one of the Contracting Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed upon them.

Article 32

Payments relating to commercial transactions carried out in accordance with foreign trade and exchange regulations and the transfer of such payments to the Member State of the Community in which the creditor is resident or to Algeria shall be free from any restrictions.

Article 33

The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security ; the protection of health and life of humans, animals or plants ; the protection of national treasures of artistic, historic or archaelogical value ; the protection of industrial and commercial property, or rules relating to gold or silver. Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Contracting Parties.

Article 34

1. If one of the Contracting Parties finds that dumping is taking place in trade with the other Contracting Party, it may take appropriate measures against this practice in accordance with the Agreement on implementation of Article VI of the General Agreement on tariffs and trade, under the conditions and in accordance with the procedures laid down in Article 36.

2. In the event of measures being directed against bounties or subsidies the Contracting Parties undertake to respect the provisions of Article VI of the General Agreement on tariffs and trade.

Article 35

If serious disturbances arise in any sector of the economy or if difficulties arise which might bring about serious deterioration in the economic situation of a region, the Contracting Party concerned may take the necessary safeguard measures under the conditions and in accordance with the procedures laid down in Article 36.

Article 36

1. In the event of a Contracting Party subjecting imports of products liable to give rise to the difficulties referred to in Article 35 to an administrative procedure, the purpose to which is to provide rapid information on the trend of trade flows, it shall inform the other Contracting Party.

2. In the cases specified in Articles 34 and 35, before taking the measures provided for therein or, in cases to which paragraph 3 (b) applies, as soon as possible, the Contracting Party in question shall supply the Cooperation Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties.

In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. Such measures must not exceed the limits of what is strictly necessary to counteract the difficulties which have arisen.

The safeguard measures shall be notified immediately to the Cooperation Council and shall be the subject of periodic consultations within the Cooperation Council, particularly with a view to their abolition as soon as circumstances permit.

3. For the implementation of paragraph 2, the following provisions shall apply: (a) as regards Articles 34 and 35, consultation in the Cooperation Council shall take place before the Contracting Party concerned takes the appropriate measures;

(b) where exceptional circumstances requiring immediate action make prior examination impossible, the Contracting Party concerned may, in the situations specified in Articles 34 and 35, apply forthwith such precautionary measures as are strictly necessary to remedy the situation.

Article 37

Where one or more Member States of the Community or Algeria is in serious difficulties or is seriously threatened with difficulties as regards its balance of payments, the Contracting Party concerned may take the necessary safeguard measures. In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. They shall be notified immediately to the other Contracting Party and shall be the subject of periodic consultations within the Cooperation Council, particularly with a view to their abolition as soon as circumstances permit.

TITLE III COOPERATION IN THE FIELD OF LABOUR

Article 38

The treatment accorded by each Member State to workers of Algerian nationality employed in its territory shall be free from any discrimination based on nationality, as regards working conditions or remuneration, in relation to its own nationals.

Algeria shall accord the same treatment to workers who are nationals of a Member State and employed in its territory.

Article 39

1. Subject to the provisions of the following paragraphs, workers of Algerian nationality and any members of their families living with them shall enjoy, in the field of social security, treatment free from any discrimination based on nationality in relation to nationals of the Member States in which they are employed.

2. All periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, death and invalidity, and also for that of medical care for the workers and for members of their families resident in the Community.

3. The workers in question shall receive family allowances for members of their families who are resident in the Community.

4. The workers in question shall be able to transfer freely to Algeria at the rates applied by virtue of the law of the debtor Member State or States, any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting from industrial accident or occupational disease.

5. Algeria shall accord to workers who are nationals of a Member State and employed in its territory, and to the members of their families, treatment similar to that specified in paragraphs 1, 3 and 4.

Article 40

1. Before the end of the first year following the entry into force of this Agreement, the Cooperation Council shall adopt provisions to implement the principles set out in Article 39.

2. The Cooperation Council shall adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1.

Article 41

The provisions adopted by the Cooperation Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral agreements linking Algeria and the Member States where those agreements provide for more favourable treatment of nationals of Algeria or of the Member States.

TITLE IV GENERAL AND FINAL PROVISIONS

Article 42

1. A Cooperation Council is hereby established which shall have the power, for the purpose of attaining the objectives set out in the Agreement, to take decisions in the cases provided for in the Agreement.

The decisions taken shall be binding on the Contracting Parties, which shall take such measures as are required to implement them.

2. The Cooperation Council may also formulate any resolutions, recommendations or opinions which it considers desirable for the attainment of the common objectives and the smooth functioning of the Agreement.

3. The Cooperation Council shall adopt its rules of procedure.

Article 43

1. The Cooperation Council shall be composed, on the one hand, of the members of the Council of the European Communities and of members of the Commission of the European Communities and, on the other hand, of members of the Government of Algeria.

2. Members of the Cooperation Council may be represented as laid down in the rules of procedure.

3. The Cooperation Council shall act by mutual agreement between the Community on the one hand and Algeria on the other.

Article 44

1. The office of President of the Cooperation Council shall be held alternately by a member of the Council of the European Communities and a member of the Government of Algeria.

2. Meetings of the Cooperation Council shall be called once a year by its President.

The Cooperation Council shall, in addition, meet whenever necessary, at the request of either Contracting Party, in accordance with the conditions to be laid down in its rules of procedure.

Article 45

1. The Cooperation Council shall be assisted in the performance of its duties by a Cooperation Committee composed, on the one hand, of one representative of each Member State and one representative of the Commission of the European Communities and, on the other, of representatives of Algeria.

2. The Cooperation Council may decide to set up any other committee that can assist it in carrying out its duties.

3. In its rules of procedure, the Cooperation Council shall determine the composition and duties of such committees and how they shall function.

Article 46

The Cooperation Council shall take any appropriate measures to facilitate the necessary cooperation and contacts between the European parliamentary assembly and the Chamber of Representatives of the People's Democratic Republic of Algeria.

Article 47

Either Contracting Party shall, if so requested by the other Contracting Party, provide all relevant information on any agreements it concludes involving tariff or trade provisions, and on any amendments to its customs tariff or external trade arrangements.

Where such amendments or agreements have a direct and particular incidence on the functioning of the Agreement, appropriate consultations shall be held within the Cooperation Council at the request of the other Contracting Party so that the interests of the Contracting Parties may be taken into consideration.

Article 48

1. When the Community concludes an Association Agreement having a direct and particular incidence on the functioning of the Agreement appropriate consultations shall be held within the Cooperation Council so that the Community may take into consideration the interests of the Contracting Parties as defined by this Agreement.

2. In the event of a third State acceding to the Community, appropriate consultations shall be held within the Cooperation Council so that the interests of the Contracting Parties as defined by this Agreement may be taken into consideration.

Article 49

1. The Contracting Parties shall take any general or specific measures required to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in the Agreement are attained.

2. If either Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under the Agreement, it may take appropriate measures. Before so doing, it shall supply the Cooperation Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties.

In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. These measures shall be notified immediately to the Cooperation Council and shall be the subject of consultations within the Cooperation Council if the other Contracting Party so requests.

Article 50

1. Any dispute which arises between the Contracting Parties concerning the interpretation of the Agreement may be placed before the Cooperation Council.

2. If the Cooperation Council fails to settle the dispute at its next meeting, either Party may notify the other of the appointment of an arbitrator ; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.

The Cooperation Council shall appoint a third arbitrator.

The decisions of the arbitrators shall be taken by majority vote.

Each Party to the dispute must take the measures required for the implementation of the arbitrators' decision.

Article 51

Nothing in the Agreement shall prevent a Contracting Party from taking any measures: (a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b) which relate to trade in arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c) which it considers essential to its security in time of war or serious international tension.

Article 52

In the fields covered by the Agreement: - the arrangements applied by Algeria in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or firms,

- the arrangements applied by the Community in respect of Algeria shall not give rise to any discrimination between Algerian nationals, companies or firms.

Article 53

The Contracting Parties shall review, in accordance with the procedure adopted for negotiating the Agreement itself, in the first place from the beginning of 1978 and again from the beginning of 1983, the results of the Agreement and any improvements which could be made by either side as from 1 January 1979 and 1 January 1984, on the basis of the experience gained during the functioning of the Agreement and of the objectives defined therein.

Article 54

Protocols 1 and 2 and Annexes A, B, C and D shall form an integral part of the Agreement. The declarations and exchanges of letters shall appear in the Final Act, which shall form an integral part of the Agreement.

Article 55

Either Contracting Party may denounce this Agreement by notifying the other Contracting Party. The Agreement shall cease to apply six months after the date of such notification.

Article 56

This Agreement shall apply, on the one hand, to the territories to which the Treaty establishing the European Economic Community applies under the conditions laid down in that Treaty and, on the other, to the territory of the People's Democratic Republic of Algeria.

Article 57

This Agreement is drawn up in duplicate in the Danish, Dutch, English, French, German, Italian and Arabic languages, each of these texts being equally authentic.

Article 58

This Agreement will be approved by the Contracting Parties in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following notification that the procedures referred to in the first paragraph have been completed.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Abkommen gesetzt.

In witness whereof, the undersigned Plenipotentiaries have affixed their signatures below this Agreement.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent accord.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente accordo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Overeenkomst hebben gesteld. >PIC FILE= "T0008273">

Udfærdiget i Algier, den seksogtyvende april nitten hundrede og seksoghalvfjerds.

Geschehen zu Algier am sechsundzwanzigsten April neunzehnhundertsechsundsiebzig.

Done at Algiers this twenty-sixth day of April in the year one thousand nine hundred and seventy-six.

Fait à Alger, le vingt-six avril mil neuf cent soixante-seize.

Fatto a Algeri, addì ventisei aprile millenovecentosettantasei.

Gedaan te Algiers, de zesentwintigste april negentienhonderd zesenzeventig. >PIC FILE= "T0008274">

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På Rådet for De europæiske Fællesskabers vegne

Im Namen des Rates der Europäischen Gemeinschaften

In the name of the Council of the European Communities

Au nom du Conseil des Communautés européennes

A nome del Consiglio delle Comunità europee

Namens de Raad van de Europese Gemeenschappen >PIC FILE= "T0008276">

ANNEX A relating to the products referred to in Article 14

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ANNEX B concerning olive oil, other than olive oil having undergone a refining process, falling within subheading 15.07 A II of the Common Customs Tariff

1. In order to take account of: - the importance of olive oil for the Algerian economy,

- the programmes and efforts undertaken by Algeria to rationalize and improve the conditions on its olive-oil market,

- the traditional trade flows in this product between Algeria and the European Economic Community,

the amount to be deducted from the amount of the levy in accordance with Article 16 (1) (b) of the Agreement concerning olive oil, other than olive oil having undergone a refining process, falling within subheading 15.07 A II of the Common Customs Tariff may be increased by an additional amount under the same conditions and arrangements as laid down for the application of Article 16 (1) (b) of the Agreement.

2. The additional amount provided for in paragraph 1, if any, shall be fixed for each year of application by an exchange of letters between the Contracting Parties in the light of conditions on the olive-oil market.

3. In view of the exceptional conditions currently affecting the olive-oil market, the additional amount shall be fixed at 10 units of account for the period ending 31 October 1977.

ANNEX C (1)

from 1 July 1976 to 30 June 1977

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ANNEX C (2)

from 1 July 1977 to 30 June 1978

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ANNEX C (3)

from 1 July 1978 to 30 June 1979

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ANNEX D

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