1992R0443 — EN — 05.06.2003 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EEC)No443/92
of25February1992
on financial and technical assistance to, and economic cooperation with,the developing countries
inAsiaandLatinAmerica
(OJ L 52, 27.2.1992, p. 1)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 807/2003 of 14 April 2003 L 122 36 16.5.2003
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999
should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) andCouncil Regulation (EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).
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COUNCILREGULATION(EEC)No443/92
of25February1992
on financial and technical assistance to, and economic cooperation
with,thedevelopingcountriesinAsiaandLatinAmerica
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 235 thereof,
Having regard to the proposals from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Whereas the Community has been pursuing a policy of financial and
technical cooperation with the Asian and Latin American (ALA) devel-oping countries since 1976 and has, more recently, also embarked oneconomic cooperation with those countries; whereas these forms ofcooperationare part of anoverall policy of cooperationwith the devel-oping countries as a whole, which includes expansion of their trade by
integration into the multilateral trading system, by appropriate
measures to be taken within the relevant international organizationsand by specific measures such as the Community system of generalizedpreferences;
Whereas the current process of European construction and the growing
influence of the Community in the developing countries worldwide
justify the continuation, with due regard for the complementary natureof Community action, of mutually advantageous economic cooperationwith, and Community development aid to, the Asian and Latin Amer-ican developing countries, the extension of cooperation to other
countries or sectors in the two regions, increased financing for such
policies and efforts to ensure that they are better adapted to nationaland local needs within each region;
Whereas the European Council has on a number of occasions
confirmed the Community's political will to reinforce its cooperation
with regions of the world where the level of development is still inade-
quate and to do so via an increased, coordinated and multi-facetedeffort on the part of the Community and its Member States;
Whereas the European Council, meeting in Luxembourg on 28 and 29
June 1991, asked the Community and its Member States, through
Community cooperation policy and by including clauses on human
rights in economic and cooperation agreements with third countries,actively to promote human rights and the participation, without discri-mination, of all individuals or groups in the life of society, bearing inmind particularly the role of women;
Whereas the European Parliament has examined the matter in detail on
a number of occasions and has called for reinforced cooperation andfor a revision of present legislation in order to ensure that aid is moreefficient and more transparent;
Whereas, on 4 February 1991, the Council adopted final conclusions on
guidelines for cooperation with the Asian and Latin American devel-oping countries, covering in particular the priorities and sectors forconsideration and the desirability of increasing the resources to be allo-cated to them and of enabling indicative medium-term programmingfor those resources to be undertaken;
Whereas both the European Parliament and the Council, while
confirming traditional fields of action, have identified new prioritiesrelating, in particular, to the environment, the human dimensio ofdevelopment and the need for economic cooperation to take place inthe mutual interest of the Community and its partner countries;1992R0443 — EN — 05.06.2003 — 001.001 — 2
(1) OJ No C 119, 4. 5. 1991, p. 6 and
OJ No C 284, 31. 10. 1991, p. 4.
(2) OJ No C 267, 14. 10. 1991, p. 35.
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Whereas provision should be made for funding the aid referred to in
this Regulation and other aid to the Asian and Latin American devel-oping countries;
Whereas an amount of ECU 2 750 million is deemed necessary for the
implementation of the aid covered by this Regulation and of other aid
to the Asian and Latin American developing countries for an initialfive-year period (1991-1995);
Whereas the amount deemed necessary for the funding period 1991-
1992, under the present financial perspective, is ECU 1 069,8 million;
Whereas the amounts to be committed for funding the aid during the
period 1993 to 1995 should be included in the existing Communityfinancial framework and whereas the Asian and Latin American devel-
oping countries should be given the same priority in the budget for
1993 to 1995 as they were inthe period 1991 to 1992;
Whereas the volume of Community aid for the period after 1995
should be determined in accordance with existing procedures;
Whereas the rules governing the administration of financial and tech-
nical assistance to, and economic cooperation with, the Asian andLatinAmericandevelopin g coun tries should be established;
Whereas it is necessary to repeal Council Regulation (EEC) No 442/81
of 17 February 1981 on financial and technical aid to non-associateddeveloping countries (
1);
Whereas the Treaty does not provide specific powers of action for the
adoption of this Regulation, other than those contained in Article 235,
HAS ADOPTED THIS REGULATION:
Article 1
The Community shall continue and broaden Community cooperation
with the Asian and Latin American developing countries, hereinafterreferred to as ‘the ALA developing countries’, which are not signa-
tories to the Lomé Convention and do not benefit from the
Community's cooperation policy with Mediterranean third countries.This cooperation, which shall be in addition to assistance from theMember States, shall involve financial and technical developmentassistance and economic cooperation. In this connection, the Commu-
nity shall attach the utmost importance to the promotion of human
rights, support for the process of democratization, good governance,environmental protection, trade liberalization and strengthening thecultural dimension, by means of an increasing dialogue on political,economic and social issues conducted in the mutual interest.
Article 2
The aim of Community development and cooperation policies shall be
humandevelopmen t.
Aware that respect for, and the exercise of, human rights and funda-
mental freedoms and democratic principles are preconditions for realand lasting economic and social development, the Community shall
give increased support to the countries most committed to those princi-
ples, particularly for positive initiatives to put them into practice.
In the case of fundamental and presistent violations of human rights
and democratic principles, the Community could amend or evensuspend the implementation of cooperation with the States concernedby confining cooperation to activities of direct benefit to those sectionsof the populationinn eed.1992R0443 — EN — 05.06.2003 — 001.001 — 3
(1) OJ No L 48, 21. 2. 1981, p. 8.
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Article 3
All ALA developing countries shall be eligible for financial and tech-
nical assistance and economic cooperation. The recipients of aid and
partners in cooperation may include not only States and regions but
decentralized authorities, regional organizations, public agencies, localor traditional communities, private institutes and operators, includingcooperatives and non-governmental organizations. The needs and prio-rities of each country and each region shall be taken into account when
granting the aid covered by this Regulation.
Financialandtechnical assistance
Article 4
Financial and technical assistance shall be targeted primarily on the
poorest sections of the population and the poorest countries in the tworegions, through the implementation of programmes and projects inwhatever sectors Community aid is likely to play an important role. Inparticular, measures shall be implemented in areas where domestic,
economic and human resources are difficult to mobilize, but which
are of strategic importance either for the development of the countriesconcerned or for the international community as a whole.
Article 5
Financial and technical assistance shall give priority to developing the
rural sector and improving the level of food security. In this regard,
integrating food aid into other development instruments may help this
form of aid to fulfil its specific role and objectives. Community supportfor the rural sector must also include measures in small towns servingrural areas, in order to promote employment. The improvement of theeconomic, legal and social environment for the private sector, includingsmall and medium-sized undertakings, must also be taken into account.
Protection of the environment and natural resources, and sustainable
development, shall be long-term priorities. 10 %, being the weightedaverage of the necessary financial resources of the aid, for the period1991 to 1995, shall be set aside for projects specifically aimed atprotecting the environment, in particular tropical forests.
Furthermore, consideration shall be given in all operations to protecting
the environment and natural resources.
Special attention must be given to measures to combat drugs. Commu-
nity cooperation with the ALA developing countries to promote thefight against drugs shall be stepped up on the basis of a dialogue withinthe more general context of the economic development of the producer
countries and their cooperation with the European Community. This
cooperation shall cover measures involving both humanitarian anddevelopment aid.
The human dimension of development shall be present in all areas of
action, given the objective of this form of cooperation.
The cultural dimension of development must remain a constant objec-
tive in all activities and programmes with which the Community isassociated.
Aid should accordingly be allocated, inter alia, to specific projects for
the spread of democracy, good governance and human rights.
Furthermore, care should be taken to ensure not only that the changes
brought in by the projects and programmes do not have any detrimental
effects on the position and role of women, but that, on the contrary,specific measures, or evenprojects, are adopted inorder to in creasetheir active participation, on an equal footing, in the productive processand its results, and in social activities and decision making.
Special attention shall also be given to child protection.1992R0443 — EN — 05.06.2003 — 001.001 — 4
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Ethnic minorities warrant special attention through measures designed
to improve their living conditions while respecting their cultural iden-tity.
Special attention shall be given to demographic questions, in particular
those relating to population growth.
Community aid for development projects and programmes must take
account of macro-economic and sectoral problems and favour opera-tions which have an effect on the structural make-up of the economy,on the development of sectoral policies and on the development ofinstitutions. In order to increase their effectiveness and obtain greatersynergy, dialogue and cooperation with the relevant international insti-
tutions and bilateral financiers should be sought.
Support for the national institutions of the developing countries, so as
to strengthen their capacity to manage development policies andprojects, represents an area of action likely to assume a strategic role
inthe developmen t process.
Maintaining a suitable dialogue between the developing countries and
the Community is an important element in this context.
Regional cooperation between developing countries shall be considered
a priority area for financial and technical assistance, particularly in thefollowing fields:
— cooperation on the environment,
— the development of intra-regional trade,— the strengthening of regional institutions,
— support for regional integration and the establishment of joint poli-
cies and activities among developing countries,
— regional communications, particularly as regards standards,
networks and services, including telecommunications,
— research,
— training,
— rural development and food security,— cooperationinthe sphere of en ergy.
Part of the aid may be used for rehabilitation and reconstruction
following disasters of all kinds and for disaster-prevention measures.
Article 6
Financial and technical assistance, shall be extended to the relatively
more advanced ALA developing countries, in particular in the
following specific fields and cases:
— the spread of democracy and human rights,
— prevention of natural disasters and reconstruction in their wake,
— the fight against drugs,— the environment and natural resources,— strengthening institutions, especially public authorities,
— pilot schemes to help particularly under privileged strata of the
population especially in large conurbations,
— regional cooperation and integration, with special attention being
paid to regional cooperation and integration schemes allowing part-nerships to be formed between poor and relatively advancedcountries.
Economiccooperation
Article 7
Economic cooperation, devised to serve the mutual interests of the
Community and its partner countries, shall contribute to the develop-
ment of the ALA developing countries by helping them build up theirinstitutional capacity so as to create an environment more favourable toinvestment and development and make the most of the prospectsopened up by the growth of international trade, including the European1992R0443 — EN — 05.06.2003 — 001.001 — 5
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single market, and by enhancing the role of businessmen, technology
and know-how from all the Member States, particularly in the privatesector and in small and medium-sized undertakings.
Economic cooperation shall be aimed in particular at establishing a
climate of confidence by supporting countries which pursue macro-economic and structural policies that are open to trade and investmentand conducive to technology transfer, in particular by protecting intel-lectual property rights.
Article 8
Economic cooperation shall include three sectors:
1. Improvement of scientific and technological potential and of the
economic, social and cultural environment in general by means oftraining schemes and the transfer or know-how. Scientific and tech-nological cooperation, including such cooperation in the field of
high technology programmes, may derive benefit also from the
implementation of the multiannual framework research programmeand from the provisions of Article 130N of the Treaty. Economiccooperationshall be directed chiefly at executives, econ omic deci-sion-makers and instructors and shall cover all economic, technical
and scientific fields, in particular energy, industrial and urban
ecology and services technology. It should promote links betweeninstitutes and research centres on both sides and take account oftheir capacity for the rapid acquisition of know-how and moderntechnology which can then be disseminated in the recipient country;
2. Improvement of the institutional structure, which must go hand in
hand with a closer dialogue with partners, in order to make theeconomic, legislative, administrative and social climate more condu-cive to development;
3. Support for undertakings, for example by means of trade promotion,
training and technical assistance schemes, by establishing contactsbetween undertakings and by schemes to facilitate cooperation
betweenthem.
Regional cooperation must be regarded as an important sector for
economic cooperation, in particular with respect to:
— cooperationonin dustrial ecology,
— intra-regional trade,
— regional institutions for economic integration,— regional policies,— communications, including telecommunications,— research and training,— cooperationinthe sphere of en ergy,— industrial cooperation.
Implementingprocedures
Article 9
Financial and technical assistance and expenditure on economic coop-
eration shall be provided mainly in the form of grants financed fromthe general budget of the European Communities.
Wherever possible, indicative five-year programming shall be estab-
lished for each objective, country or, if appropriate, region.
Co-financing with the Member States or other donors shall be sought
through greater coordination. The Community nature of the aid mustbe maintained.
Article 10
1. Community funding of the aid referred to in Article 9 shall cover
anin itial five-year period (1991-1995).1992R0443 — EN — 05.06.2003 — 001.001 — 6
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2. The amount of Community funding deemed necessary for the
implementation of the aid shall be ECU 2 750 million, 10 % of whichshall be allocated to the environment, especially the protection of
tropical forests. Anamoun t of ECU 1 069,8 millionshall be earmarked
for the period 1991-1992 under the financial perspective for 1988-1992.
For the period 1993-1995, the amount shall be included in the Commu-
nity financial framework then in force.
3. The budget authority shall determine the appropriations available
for each financial year, account being taken of the principles of soundfinancial management referred to in Article 2 of the Financial Regula-tion applicable to the general budget of the European Communities.
4. For the subsequent period covered by this Regulation, the amount
of aid shall be determined in accordance with the procedures then in
force.
Article 11
Financial and technical assistance may cover all foreign currency costs
and local costs for carrying out projects and programmes, including,whenever necessary, integrated programmes and sectoral projects.
Maintenance and operating expenses for economic cooperation opera-
tions, training and research programmes and development projects andprogrammes may, inparticular, be covered. However, except for
training and research programmes, such expenses may be covered
only at the launching stage and in gradually decreasing amounts.
Systematic efforts must be made to seek contributions, particularly in
financial form, from partners (countries, local communities, undertak-ings, individual recipients) within the limits of their possibilities andaccording to the nature of each operation.
The payment of taxes, duties and charges, and the purchase of land,
shall be excluded from Community financing.
Study costs and the short- and long-term use of experts to assist the
recipients and the Commission in devising general policies, identifyingand preparing operations and monitoring and evaluating them shallnormally be covered by Community funds, either as part of the finan-
cing for individual operations or separately.
Article 12
1. Part of the financial and technical assistance and of the economic
cooperationshall be set aside for measures to deal with exception alcircumstances, in particular projects to promote reconstruction in the
wake of disasters, and to meet unforeseen priorities, particularly in
countries in which the human rights situation or other political condi-tions did not previously allow Community aid to be given. An amountof, at most, 15 % shall be provided for to this end when the budgetaryauthority adopts the annual appropriations.
2. Any unallocated amount equivalent to the 15 % portion of the
annual appropriations shall be released on 31 July of the same year to
be allocated insome other way.
Article 13
Participation in invitations to tender and purchasing and other contracts
shall be open on equal terms to all natural or legal persons of theMember States.
With regard to financial and technical assistance, such participation
shall usually be extended to the recipient State and may also beextended, case by case, to other developing countries.
In exceptional cases which are duly justified, other countries of origin
may be allowed for specific components.1992R0443 — EN — 05.06.2003 — 001.001 — 7
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Article 14
Aid projects and programmes for which Community funding exceeds
ECU 1 million, and any substantial modifications and possible overrunsof approved projects and programmes which exceed 20 % of theamount initially agreed, shall be adopted according to the procedurelaid downinArticle 15 (3).
The same procedure shall be followed for adopting the acts required to
establish:
— the indicative multiannual guidelines that apply to the main partner
countries,
— the areas of cooperationaccordin g to subject or sector.
Article 15
1. The Commission shall administer the financial and technical
assistance and the economic cooperation.
2. The Commissionshall be assisted by a committee.
3. Where reference is made to this paragraph, Articles 5 and 7 of
Decision1999/468/EC (
1) shall apply.
The period laid downinArticle 5(6) of Decision1999/468/EC shall be
set at one month.
4. Ona regular basis, at least on ce a year, the Commissionshall
send the Member States whatever information it has on known sectors,projects and operations which could be supported under this Regula-
tion.
5. In addition, coordination between Community cooperation
schemes and bilateral schemes undertaken by Member States shall becarried out in this committee, through an exchange of information.
6. The committee shall adopt its rules of procedure.
Article 16
The Commission shall submit to the European Parliament and the
Council an annual report on the implementation of this Regulation.
The report shall set out the results of implementation of the budget asregards commitments and payments and presenting the projects andprogrammes financed during the year. The report shall contain, as faras possible, information on the funds committed at national levelduring the same financial year. It shall also contain specific, detailed
information (undertakings, nationality, etc.) on the contracts awarded
for the implementation of the projects and programmes.
In addition, at the end of each five-year period the Commission shall
submit a comprehensive report giving the results of the regular evalua-
tion undertaken to show not only how the projects and programmes
have been implemented but also the advisability of maintaining oramending the aid guidelines.
Article 17
1. Regulation(EEC) No 442/81 is hereby repealed.
2. Any reference to the repealed Regulation shall be deemed to be a
reference to this Regulation.
Article 18
This Regulation shall enter into force on the third day following that of
its publicationinthe Official Journal of the European Communities .1992R0443 — EN — 05.06.2003 — 001.001 — 8
(1) OJ L 184, 17.7.1999, p. 23.▼M1
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This Regulation shall be binding in its entirety and directly applicable
inall Member States.1992R0443 — EN — 05.06.2003 — 001.001 — 9