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Brussels, 22.7.2009

COM(2009) 381 final

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Communities and its Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, of the other part, with regard to the adoption of a Recommendation on the implementation of the EU-Ukraine Association Agenda and of a Decision on the establishment of a Joint Committee.

EXPLANATORY MEMORANDUM

Over the last few years, the European Neighbourhood Policy (ENP) has enabled the EU and its partners to make progress in deepening their cooperation and in targeting it better at the needs and reform ambitions of partners. With Ukraine joint work has intensified such that a particular deepening of relations with the EU is fully warranted.

The first contractual relations between Ukraine and the EU were established in 1994 when the parties signed the bilateral EU-Ukraine Partnership and Cooperation Agreement. The agreement entered into force in 1998. With the creation of the ENP, EU and Ukraine chose to develop their relations using the EU-Ukraine Action Plan, which was adopted in February 2005. Implementation has been monitored both jointly and through European Commission yearly progress reports.

In March 2007, the EU and Ukraine launched negotiations on a new agreement: an Association Agreement to replace and go beyond the Partnership and Cooperation Agreement of 1998. Following Ukraine’s accession to the World Trade Organisation, the negotiations included a component on the establishment of a deep and comprehensive Free Trade Area with the EU. Negotiations of the Association Agreement are ongoing at the time of writing and ratification may take some more years before the full Agreement can enter into force.

In its February 2008 Conclusions, the Council underlined the central role of Action Plans in bringing partners closer to the EU. Action Plans give operational substance to the contractual relations between the EU and its partners and are also becoming important reference points for the donor community. As these relations deepen and as some objectives are achieved while new ones are agreed upon, new tools are necessary. The prerequisites are a sufficient baseline of implementation of the existing Action Plan, demonstrated progress in implementation and evidence of shared values and shared interests. The Paris-EU Ukraine Summit in September 2008 welcomed the fact that, since the adoption of the EU-Ukraine Action Plan in 2005, the partnership between the European Union and Ukraine has advanced considerably in all areas of common interest.

On the basis of the above, and taking into account the substantial progress in the negotiations on an Association Agreement, the Summit called for the development of a new practical instrument to replace the EU-Ukraine Action Plan.

In December 2008 negotiations were launched on this instrument, the Association Agenda, which is to replace the current Action Plan and prepare for and facilitate the early implementation of the new EU-Ukraine Association Agreement, once in force.

The experience gained during the implementation of the Action Plan suggests that a document more closely calibrated to the partner countries’ ambitions and capacities, whilst also promoting achievable steps towards regulatory convergence with EU legislation and standards would be appropriate. The principal features of the Action Plans, namely their specific, time-bound and action-oriented character, need to be preserved and improved.

By analogy with the procedures adopted for the approval of the ENP Action Plans, notably the EU-Ukraine Action Plan (Council Conclusions of 14 June 2004), the Association Agenda will be approved by the Council and subsequently endorsed by the respective Co-operation Council. Therefore, the European Commission attaches the text of a proposal for a Council Decision on the position to be taken by the Communities and their Member States within the EU-Ukraine Cooperation Council, with regard to the adoption of a Recommendation on the implementation of the Association Agenda in annex.

In addition, there is a need for a Committee to review progress in implementing the Association Agenda as well as future priorities and any necessary adjustments. Awaiting the final arrangements agreed for the EU-Ukraine Association Agreement, the European Commission proposes that the EU-Ukraine Cooperation Council establishes such a Joint Committee at Senior Officials level.

The European Commission therefore requests the Council to adopt the attached proposal for a Council Decision.

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Communities and its Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, of the other part, with regard to the adoption of a Recommendation on the implementation of the EU-Ukraine Association Agenda and of a Decision on the establishment of a Joint Committee.

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to Article 1 of the Council and Commission Decision 98/149/EC, ECSC, Euratom: of 26 January 1998 on the conclusion of the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Ukraine, of the other part,

Having regard to the proposal from the Commission[1];

Whereas:

1. The Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, of the other part, was signed on 14 June 1994 and entered into force on 1 March 1998,

2. The European Communities and its Member States are currently negotiating an Association Agreement with Ukraine,

3. The Parties intend to implement an EU-Ukraine Association Agenda, which is to replace the current EU-Ukraine Action Plan and prepare for and facilitate the early implementation of the new EU-Ukraine Association Agreement through agreement on concrete steps towards attainment of its objectives.

4. There is a need for a Committee to review progress in implementing the Association Agenda as well as future priorities and any necessary adjustments. This Joint Committee would function at Senior Officials’ level and should be established by the EU-Ukraine Cooperation Council.

HAS DECIDED AS FOLLOWS

Sole Article

The position to be adopted by the Communities and their Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Ukraine, of the other part, with regard to the implementation of the EU-Ukraine Association Agenda, shall be based on the draft Recommendation of the Cooperation Council annexed to this Decision. Subsequent modifications to the operational parts of the Association Agenda by the Cooperation Council will be taken on the basis of coordination of the Community and its Member States as appropriate.

Done at Brussels, 22.7.2009.

For the Council

The President

ANNEX 1 Draft recommendation on the implementation of the EU-Ukraine Association Agenda

The EU-Ukraine Cooperation Council,

Having regard to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and its Member States of the one part, and Ukraine, of the other part – hereafter the Partnership and Cooperation Agreement - and in particular Article 85 thereof,

Whereas:

5. Article 85 of the Partnership and Cooperation Agreement gives the Cooperation Council the power to make appropriate recommendations by agreement between the two Parties.

6. In terms of Article 102 of the Partnership and Cooperation Agreement, the Parties shall take any general or specific measures required to fulfil their obligations under the Agreement and shall see to it that the objectives set out in the Agreement are attained.

7. The Parties to the Partnership and Cooperation Agreement are currently negotiating an Association Agreement, including a deep and comprehensive FTA.

8. The Parties to the Partnership and Cooperation Agreement have agreed on the text of the EU-Ukraine Association Agenda.

9. The EU-Ukraine Association Agenda will replace the current EU-Ukraine Action Plan and will prepare for and facilitate the early entry into force of the new EU-Ukraine Association Agreement through the elaboration of and agreement on concrete steps which will provide practical guidance for such preparations and implementation.

10. The Association Agenda serves the dual purpose of setting out concrete steps in the preparation of the Association Agreement, and of providing a broader framework for the overall goal of achieving political association and greater economic integration of Ukraine to the European Union.

11. The Association Agenda is an operational document, which will be revised as necessary on the basis of progress reviews referred to in Section 3.9 of the Association Agenda and in pursuit of its overall objectives.

HAS ADOPTED THE FOLLOWING RECOMMENDATION:

Sole Article

The Cooperation Council recommends that the Parties implement the EU-Ukraine Association Agenda in annex, insofar as such implementation is directed towards the preparations for and implementation of the new EU-Ukraine Association Agreement.

Done at [...]

For the Cooperation Council

The President

ANNEX 2 Draft decision on the establishment of a Joint Committee

The EU-Ukraine Cooperation Council,

Having regard to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and its Member States of the one part, and Ukraine, of the other part – hereafter the Partnership and Cooperation Agreement - and in particular Article 88 thereof,

Whereas:

12. Article 88 of the Partnership and Cooperation Agreement gives the Cooperation Council the power to set up any other special 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.

13. The Parties to the Partnership and Cooperation Agreement are currently negotiating an Association Agreement, including a deep and comprehensive FTA.

14. The Parties to the Partnership and Cooperation Agreement have agreed on the text of the EU-Ukraine Association Agenda.

15. There is a need for a Committee to review progress in implementing the Association Agenda as well as future priorities and any necessary adjustments. This Joint Committee will function at Senior Officials’ level.

HAS DECIDED AS FOLLOWS:

Sole article

The Cooperation Council establishes a Joint Committee at Senior Officials’ level. This Joint Committee shall review progress in implementing the Association Agenda as well as future priorities and any necessary adjustments to the Association Agenda.

The Joint Committee shall meet regularly, at least once per year.

Done at [...]

For the Cooperation Council

The President

[1] OJ xxxxxxxx