EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL/BACKGROUND

The attached proposal constitutes the legal instrument for authorising the Union position to be adopted in the Association Council established by the Association Agreement ("the Agreement") between the European Union and the Republic of Moldova, in relation to the adoption of the rules of procedure of the Association Council and of the Association Committee, the establishment of two specialised subcommittees, 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 the Republic of Moldova were launched in January 2010. In February 2012, the EU and the Republic of Moldova also launched negotiations on the Deep and Comprehensive Free Trade Area (DCFTA) part, as a core element of the Association Agreement. On 29 November 2013 the European Union and the Republic of Moldova initialled the text of the Agreement.

The Association Agreement is the most advanced agreement of this type 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 the Republic of Moldova and the EU, as well as to advance the Republic of Moldova's gradual economic integration with the EU Internal Market in selected areas, notably through establishing a DCFTA.

On 16 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 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 the Republic of Moldova, of the other part. Subsequently, the Agreement was signed in Brussels on Friday, 27 June 2014 in the margins of the European Council.

The Republic of Moldova ratified the Agreement on 2 July 2014 and completed, in parallel with the European Union, the requisite notification procedures within the same month. Consequently, in accordance with Article 464 of the Agreement certain provisions thereof (specified in Article 4 of the Council Decision on the signing and provisional application of the Agreement with the Republic of Moldova of 16 June 2014) are applied on a provisional basis starting from 1 September 2014, pending ratification by the EU Member States.

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 the Republic of Moldova 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 the Republic of Moldova 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 434(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 437(1) of the Agreement).

The Association Council as well as the Association Committee may decide to set up any other specialised 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 436(3) of the Agreement). It may delegate any of its powers to the Association Committee, including the power to take binding decisions (Article 438(2) of the Agreement)

The Association Committee shall meet in a specific configuration to address all issues, deriving from Title V (Trade and Trade-related matters). The DCFTA part of the Agreement foresees specific subcommittees on sanitary & phytosanitary measures, on customs, on geographical indicators, and on trade & sustainable development to assist the Association Committee in Trade configuration 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 by 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 the Republic of Moldova.

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 subcommittees, designated as follows:

(1) Subcommittee on Justice, Freedom & Security (JFS);

(2) Subcommittee on Economic and other Sector cooperation.

The purpose of the subcommittees 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 subcommittees 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, 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 the Republic of Moldova of selected parts of the EU acquis will provide a focus for on-going cooperation, and will form the core of the Republic of Moldova'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 subcommittee may thus meet in different configurations as the need arises. This proposal draws on experience with the Partnership & Cooperation Agreements with the three countries and aims to streamline the functioning of the subcommittee structure under the Association Agreement.

Both the EU and the Republic of Moldova 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 subcommittees so that these can soon start functioning. It is intended to call the first meeting of the Association Council with the Republic of Moldova on 20 October 2014, coinciding with the Foreign Affairs Council in Luxembourg. This timing is of prime importance to the Republic of Moldova in view of the general elections to be held on 30 November.

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 the Republic of Moldova is the Treaty on the functioning of the European Union, and in particular its Article 218(9) TFEU.

In light of the above-mentioned results of negotiations, on the basis of Article 218(9) TFEU the European Commission proposes that the Council adopts the Decision authorising the Union position to be adopted in the first EU-Republic of Moldova Association Council with regard to:

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

– the establishment of two specialised subcommittees,

and

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

2014/0273 (NLE)

Proposal for a

COUNCIL DECISION

on the Union position to be adopted 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 the Republic of Moldova, 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 specialised subcommittees, 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 464of the Association Agreement (”the Agreement”) between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part provide for provisional application of the Agreement in part.

(2) Article 4 of the Council Decision of 23 June 2014 on the signing and provisional application of the Agreement specifies certain provisions of the Agreement to be applied provisionally.

(3) Article 435(2) of the Agreement provides that the Association Council shall establish its own rules of procedure.

(4) Article 435(3) of the Agreement provides that the Association Council shall be chaired in turn by a representative of the Union and a representative of the Republic of Moldova.

(5) Article 437(1) of the Agreement provides that the Association Council shall be assisted in the performance of its duties by an Association Committee while Article 438(1) provides that the Association Council shall determine in its rules of procedure the duties and functioning of the Association Committee.

(6) Article 439(2) provides that the Association Council may decide to set up any other specialised 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 438(4) of the Agreement, 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), pursuant to Articles 436(3) and 438(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.

HAS ADOPTED THIS DECISION:

Article 1

1. The position to be adopted by the Union in the Association Council established by Article 434 of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, 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 specialised subcommittees and the adoption of their terms of reference,

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 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 shared on the Union side by the High Representative of the Union for Foreign Affairs and Security Policy.

Done at Brussels,

For the Council

The President

[1] OJ L260 of 30.08.2014

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

THE EU-MOLDOVA 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 the Republic of Moldova, of the other part, (hereinafter referred to as ‘the Agreement’) and in particular Article 434 thereof,

Whereas:

(1) In accordance with its Article 464, parts of the Agreement are applied provisionally as of 1 September 2014.

(2) Article 435(2) of the Agreement provides that the Association Council shall establish its rules of procedure.

(3) Article 437(1) of the Agreement provides that the Association Council shall be assisted in the performance of its duties by an Association Committee while Article 438(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 European Union For The Republic of Moldova

APPENDIX A

Rules of Procedure of the Association Council

EU-Republic of Moldova AA-DCFTA

Article 1

General provisions

1. The Association Council established in accordance with Article 434(1) of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other (hereinafter referred to as the “Agreement”) shall perform its duties as provided for in Articles 434 and 436 of the Agreement.

2. As provided for in Article 435(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 of members of the Government of the Republic of Moldova, of the other. The composition of the Association Council shall take into consideration the specific issues to be addressed at any given meeting. Where appropriate and agreed by both parties, the Association Council shall meet at Head of State or Government level.

3. As provided for in Article 436(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. The Association Council may delegate its powers to the Association Committee.

4. The Parties in these Rules of Procedure are those as defined in Article 461 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.

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 notify 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 the Republic of Moldova 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 the Republic of Moldova, who in turn will inform the other Secretary.

2. The Secretariat shall ensure that correspondence is forwarded to the Chair and, where appropriate, circulated to the Association Council.

3. The Secretariat shall send the correspondence, as appropriate, 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 the Republic of Moldova to the European Union, with copy, as applicable, to the ministry responsible for foreign affairs or the ministry responsible for trade and trade-related matters in the Republic of Moldova.

4. Communications from the Chair of the Association Council shall be sent to the addressees by the Secretariat 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 within 20 calendar days after each Association Council meeting.. They shall be approved within 45 calendar days after each Association Council meeting. Once approved, the minutes shall be signed by the Chair and the two Secretaries. A certified true copy shall be sent to each of the addressees referred to in Article 7 of the Rules of Procedure.

Article 11

Decisions and recommendations

1. The Association Council shall take decisions and make recommendations by mutual agreement between the Parties. Each decision or recommendation shall be signed by the Union and by the Republic of Moldova.

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. Once the text is agreed to, the decision or recommendation shall be signed independently and successively by the Union and by the Republic of Moldova. The acts of the Association Council shall be entitled ‘Decision’ or ‘Recommendation’ respectively within the meaning of Article 436(1) of the Agreement. The Secretariat of the Association Council shall give any decision or recommendation a serial number, the date of adoption and a description of their subject-matter. Each decision shall provide for the date of its entry into force.

4. The decisions and recommendations of the Association Council shall be authenticated by the two Secretaries.

5. The decisions and recommendations shall be circulated to each of the addressees referred to in Article 7 of these rules of Procedure.

6. Each Party may decide to order publication of the decisions and recommendations of the Association Council in its respective official publication.

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 the Republic of Moldova 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 the Republic of Moldova.

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 437(1) of the Agreement, the Association Council shall be assisted in carrying out its duties by the Association Committee. The Committee shall be composed of representatives of the Union of the one part, and of representatives of the Republic of Moldova, of the other, at a level determined by the Agreement.

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 438(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 Association Committee and Sub-Committees

EU-Republic of Moldova AA-DCFTA

Article 1

General provisions

1. The Association Committee that is established in accordance with Article 437(1) of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, 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 438(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 437(2) of the Agreement, the Association Committee shall be composed of representatives of the Union and representatives of the Republic of Moldova, 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 438(4) of the Agreement, when the Association Committee in trade configuration performs the tasks conferred upon it in Title V of the Agreement, it shall be composed of senior officials of the European Commission and of the Republic of Moldova having responsibility for trade and trade-related matters. A representative of the European Commission or of the Republic of Moldova 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 438(3) of the Agreement the Association Committee 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 461 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 Committee 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 the Republic of Moldova 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 the Republic of Moldova 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 to the addressees 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 the Republic of Moldova in such correspondence.

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

Article 8

Confidentiality

Unless otherwise decided between 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 date.

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 beginning of the meeting.

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).

3. The draft minutes shall be submitted to the Association Committee for approval. They shall be approved within 28 calendar days after each Association Committee meeting. Once approved, the minutes shall be signed by the Chair and the two Secretaries. A certified true copy shall be sent to each of the addressees referred to in Article 7 of the Rules of Procedure.

4. 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. Each decision or recommendation shall be signed by a representative of both Parties. Without prejudice to paragraph 2, the representatives shall sign these documents during the meeting in which the relevant decision or recommendation is adopted.

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 independently and successively by a representative of each Party.

3. The acts of the Association Committee shall be entitled ‘Decision’ or ‘Recommendation’ respectively. Each decision shall provide for the date of its entry into force.

4. The decisions and recommendations of the Association Commitee shall be authenticated by the two Secretaries.

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

6. 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 English and Romanian.

2. 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 Romanian 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.

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 438(1).

Article 16

Sub-Committees and specialised Working Groups

1. In accordance with Article 439(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 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 terms of reference. 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 procedures shall be applied mutatis mutandis to any Sub-Committee, special committee or body as provided for under (1) above.

3. The meetings of the subcommittees 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 subcommittees 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 subcommittee, special committee or body as provided for under (1) above.

4. 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-Republic of MOLDOVA ASSOCIATION COUNCIL

of .. 2014

on the establishment of two specialised subcommittees

THE EU-Republic of MOLDOVA 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 The Republic of Moldova, of the other part, (‘the Agreement’) and in particular Article 439 thereof,

Whereas:

(1) In accordance with its Article 465, parts of the Agreement are applied provisionally as of 1 September 2014.

(2) Article 439(2) provides that the Association Council may decide to set up any other specialised 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 subcommittees 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 subcommittees listed in Appendix A are hereby established. The Rules of Procedure of the subcommittees are governed by Article 16 of the Rules of Procedure of the Association Committee and sub-committees of the EU-Moldova Association Agreement as adopted by Decision No 1/2014 of the EU-Moldova Association Council.

Done at,

The European Union the Republic of Moldova

Appendix A to ANNEX II

EU-Republic of Moldova Association Council

Subcommittees established:

(1) Subcommittee on Justice, Freedom & Security;

(2) Subcommittee on Economic and other Sector cooperation.

ANNEX III

DECISION No 3/2014 OF THE EU-Republic of Moldova ASSOCIATION COUNCIL

of .. 2014

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

THE EU-REPUBLIC OF MOLDOVA 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 the Republic of Moldova, of the other part, (‘the Agreement’) and in particular Articles 436(3) and 438(2) thereof,

Whereas:

(1) Parts of the Agreement are applied provisionally as of 1 September 2014, pursuant to Article 464 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 438(2) of the Agreement.

(4) The Association Committee in Trade configuration addresses all issues related to Title V (Trade and Trade-related Matters) as specified in Article 438(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 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 V (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 438(4) of the Agreement, the power to update or amend the Annexes which relate to Chapters 1, 3, 5, 6 and 8 of Title V (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.

The European Union the Republic of Moldova