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DOCUMENTS "COM"
COM(76)163
Vol.1976/0046

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)163 final.
Brussels ,20April1976
RECOMMENDATION FORREGULATION (EEC)OFTHECOUNCIL .
ontheconclusion of"theCommercial Cooperation Agreement betweenthe
European Economic Community andtheIslamicRepublic ofPakistan
(submitted totheCouncilbytheCommission )
COr(76)153final.

EXPLANATORY MEMORANDUM
1.On15October 1974 'theCouncil authorized theCommission toenter
into negotiations with Pakistan foraCommercial Cooperation Agreement ;at
thesane time theCouncil approved aseries ofdirectives forthenego­
tiations .
2.Theformal opening ofnegotiations took place on4"thNovember 1974 »
preceded byameeting oftheSpecial Committee setupunder Article 113of
theRome Treaty toassist theCommission insuch negotiations .Asecond
negotiating session washeld on12th December 1974 ,following which the
twodelegations were insubstantial accord ontheterms ofanagreement ,but
the PaJcistr»n side fcind itself unable toaccept theCommission 'sproposals
astothenature andscope ofpossible annexes .Assisted byfurther meetings
oftheSpecial Committee on27th October and10th November 1975 ,"the
Commission wasable torefine itsproposals ontheoutstanding points ,and
secured theacceptance bythePakistan 'sauthorities oftherevised proposals
follovving informal contacts both inBrussels andinIslamabad ,where the
texts annexed hereto vrere initialled on16th March 1976 .Thetitles ofthese
texts ,which were negotiated intheEnglish language ,areasfollows ?
-Commercial Cooperation Agreement between theEuropean Economic Community
andtheIslamic Republic ofPakistan
-Annex 1,being aJoint Declaration onthefunctioning oftheJoint
Commission
-Annex 2,being adeclaration oftheEuropean Economic Community on
tariff adjustments andother measures forfacilitating trade
-Annex 3,being adeclaration oftheIslamic Republic ofPakistan on
tariff adjustments andother measures forfacilitating trade .
3.Thetext oftheproposed agreement istmutatis mutandis ,identical
with that concluded with SriLankaji apart from ahandful ofverbal variants
of"nopractical significance andtherephrasing oftheevolutionary clause
(Article 1paragraph 3),again without altering itseffect .

4.Whenthenegotiation ,directives **ereunderdiscussion inthevarious
forumsoftheCouncil,itwasenvisaged thatthePakistansidemight
requesttariffconcessions analogous tothosegrantedintheCommercial
Cooperation Agreement withIndia,andsubsequent lyintheCommercial
Cooperation Agreement .withSriLanka.Arequestforconcessions was
indeedpresented "byPakistanhutwasnot,asintheothercases,confined
tobilateral "bindingsofexistingsuspensions ofduties.Instead,,
Pakistan'soughtthephasing-out oftheCCTdutyof7$onSingle .CottonYarn
andthere-imbursement toPakistanfordevelopment purposesofanylevy
impose^.ontheCommunity'simportsfromthatcountryofBasrnatiRice,in
addition toconcessions underthe.Generalized SchemeofPreferences for
SportsGoodsandcertainvarieties andmanufactures ofLeather.The
Commission turneddowntheserequests andinstead,aftertakingtheadvice
oftheSpecialCommittee (Art.113),offeredtoexpandthescopeofthe
declaration oftheCommunity ontariffadjustments (Annex2)toinclude ,
"othermeasures forfacilitating trade"andtoinsertinthebociythereof
thefollowing paragraphs
"3.Recognising thevitalimportance ofexportsofcottonproducts and
BasmatiRicetotheeconomic development of.Pakistan ,theCommunity •
isreadytoexamineintheJointCommission thesituation ofPakistani
tradewiththeCommunity intheseproducts andtoexplorepossibilities
forfacilitating it,insofarascottonproductsareconcerned tothe
extentpermitted bythecurrentagreement betweentheContracting Farties
andtheirmultilateral obligations ."
Theseproposed -changeswouldbeaccompanied bycorresponding changes
inAnnex3,whichisPakistan'sreciprocal .declaration .ThePakistan
authorities eventually signified theiracceptance ofthisproposal ,and
thetextsofAnnexes 2and3.nowrecommended reflecttheagreement reached
inthisregards..TheCommission considers thatthetermsoftheseAnnexes
arefullyconsistent withthedirectives givenbytheCouncil,asalso
arethetermsofAnnex1"onthefunctioning oftheJoint .Commission"^
thisbeingcloselymodelled onthecorresponding annexoftheSriLanka
Agreement .

-3-
5.Inthenegotiation directives ,theCommission wasaskedtoexplore
theternsonwhichtheCommunity couldobtainanundertaking fromPakistan
withregardtonon-discriminatory accesstoitsnaturalresources .Inthe
courseofexploratory talks,thePakistandelegation informedtheCommission ,
assubsequently reportedtotheSpecialCommittee ,thatitwasnotprepared
torecommend suchanundertaking toitsauthorities ,nordiditenvisage
thattheycouldcontemplate anysuchcommitment unlessitweretobematched
byareciprocal undertaking onthepartoftheCommunity =Inthelightof
theexpressunwillingness ofcertain MemberStatestoenterintoany
commitments inregardtoaccesstotheirnaturalresources ,theCommission
decidedthatitwouldbefruitless toseektonegotiate theinclusion of-
aspecificreference tonaturalresources inanAgreement forCommercial
Cooperation withPakistan .ShouldtheCommunity experience difficulties
inpurchasing onanon-discriminatory basisrawmaterials produced by
Pakistan,thepossibility remainsopen,especially underArticles 3*9and
10oftheagreement nowproposed,toraisedifficulties intheJoint
Commission withaviewtoexamining anddevisingpractical measures to
overcome them.
6.TheCommission nowrecommends thattheCouncils
-placeonrecordthattheCommission hascomplied withtheCouncil's
requesttoexplorethepossibility ofhavingaprovision intheAgreement
relating tonon-discriminatory accessfortheCommunity to
naturalresources ^and
-initiate theprocedures forthesignature andconclusion ofaCommercial
Cooperation Agreement withPakistaninthetermsoftheannexedtexts.
7«Withaviewtotheconclusion andimplementation oftheAgreement ,
theCommission herewithlaysbeforetheCouncils
-aRecommendation foraRegulation (EEC)oftheCouncilonthe
conclusion oftheCommercial Cooperation Agreement withPakistan .

REC01MEEDATI0N FORREGULATION (EEC)OPTHECOUITCIL
on-theconclusion oftheCommercial Cooperation Agreement
betweentheEuropean Economic Community and.
theIslamicRepublic ofFakistan
TE3COUNCIL OPTHEEUROPEAN COMMUNITIES ,
Havingregardto-theTreatyestablishing theEuropean Economic Community ,
andinparticular Articles 113and.114thereof 5
HavingregardtotheRecommendation fromtheCommission ;
WhereastheCommercial Cooperation Agreement negotiated betweenthe
European Economic Community andtheIslamicRepublic ofPakistan should
beconcluded ;
HASADOPTED THISREGULATION ;
Article 1
TheCommercial Cooperation Agreement betweentheEuropean Economic Community
andtheIslamicRepublic ofPakistan ,thetextofwhichisannexedto
thisRegulation ,isherebyconcluded onbehalfoftheCommunity .
Article 2 ,
ThePresident oftheCouncilshallnotifytheotherContracting Partyin
accordance withArticle 15oftheAgreement ofthecompletion ,asregards
theCommunity ,oftheprocedures necessary fortheentryintoforceof
thisAgreement .

I 1
Article 3
TheCommunity shall "berepresented ontheJoint Commission provided for
inArticle 8oftheAgreement bytheCommission oftheEuropean Communities ,
assisted byrepresentatives oftheMember States .
Article 4 •
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels , - 1976 . , . .
For the Council
The President

COMMERCIAL COOPERATION AGREEMENT BETWEEN THEEUROPEAN ECONOMIC COIMJ1TITY
.iKDTHEISLAMIC REPUBLIC OFPAKISTAN

COMMERCIAL COOPERATION AGREEMENT
betweentheEuropean Economic Comiinmity and-
theIslamicRepublic ofPakistan
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OPTHEISLAMICREPUBLIC OPPAKISTAN ,
oftheotherpart,
HAVINGREGARDtothefriendlyrelations andhistoriclinksbetweenthe
MemberStatesoftheEuropean Economic Community andtheIslamicRepublic
ofPakistan andtheircommondesiretoconsolidate andexpandtheir
commercial andeconomicrelations ;
INSPIRED bytheirdetermination tostrengthen ,deepenanddiversify
theircomiaerc-ialiaiid economicrelations onthebasisofcomparative
advantage andmutualbenefit;
VIEWINGmoderncommercial policyasanimportant instrument forfurthering
international economic ,cooperation ?
AFFIRMING theiroommonwilltocontribute toanewphaseofinternational
economic cooperation andtofacilitate thedevelopment oftheirrespective
humanandmaterial resources onthebasisoffreedom,erruality andjustice
HAVEDECIDEDtoconclude aCommercial Cooperation Agreement andtothis
endhavedesignated astheirPlenipotentiaries ?
THECOUNCIL OPTHEEUROPEAN COMMUNITIES !
THEGOVERNMENT OFTHEISLAMIC REPUBLIC OFPAKISTAN ;
WHO,havingexchangedtheirFullPowers,foundingoodanddueform
HAVEAGREED ASFOLLOWS :

.Article 1
TheContracting Partiesaredetermined todeveloptheircommercial exchanges
onthebasisofcomparative advantage andmutualbenefit soastocon­
tributetotheireconomic andsocialprogress andtotheimprovement of
thebalanceoftheirmutualtradetoashighalevelaspossible .
Article 2
TheContracting Partiesshall,intheircommercial relations ,granteach
othermost-favoured-nation treatment inaccordance withtheprovisions
oftheGeneralAgreement onTariffsandTrade.
Article 3
TheContracting Partiesshallgranteachotherthehighestdegreeof
liberalization cfimportsandexports vxhichtheyapplytothirdcountries
ingeneral ,andshallendeavour toprovide maximumfacilities compatible
withtheirrespective policies andobligations withregardtoproducts
ofinteresttoeitherParty.
Article 4
TheContracting Partiesundertake topromotethedevelopment anddiver­
sification oftheirmutualtradetothehighestpossible level.They
shalltakeallappropriate stepstoachievetheseresults,including
particular measures whicharerelevanttothepatternandpotential of
theirmutualtrade.

Article 5
TheContracting Partiesmaydeveloptheireconomiccooperation ,when
linkedwithtrade,infieldsofmutualinterest andinthelightof
developments intheireconomicpolicies ." '
Article 6
Withaviewtoimplementing Articles 4and5»"theContracting Parties
agreetoenhancecontacts andcooperation betweentheireconomic
organisation andtosupporttheinstitutions whichhave "beenormay
besetuptothisend.
t.
Article 7
TheContracting Partieswillendeavour j;oincreasetheircooperation
incommercial andrelatedeconomic mattersinthirdcountries ,sofar
asitisintheirmutualinterest .
i
Article8
t , C •
1.AJointCommission shallbeestablished comprising representatives
oftheCommunity andofPakistan .Itshallholdonesessioneachyear.
Additional sessions maybeconvened ...bycommonagreement attherecmest
ofeitherContracting Party.
2.TheJointCommission shalladoptitsownrulesofprocedure and
programme ofwork.
3.TheJointCommission maysetupspecialised Sub-Coimjiissions toassist
itintheperformance ofsuchtasksasitmaymandate.

Article 9
The Joint Commission shall ensure theproper functioning ofthis Agreement
andshall devise andrecommend practical measures forachieving its
objectives .Itshall exanine anydifficulties likely tohinder thedevelop­
ment anddiversification oftrade "between theContracting Parties .
Article 10
The Joint Commission shall inparticular
(a)study enddevise ways ofovercoming .trade barriers andinparticular
''v
non-tnriff and rruasi-tariff barriers inthevarious sectors oftrade ,
taking into account therelevant work undertaken inthis field bythe
international organisations concerned ^
(b)endeavour tofind ways ofencouraging thedevelopment ofeconomic and
commercial cooperation between the Contracting Parties ,insofar as
thi3 would promote thedevelopment anddiversification oftheir tradej
(c)facilitate exchanges ofinformation andencourage contacts onall
subjects bearing upon theprospects forcooperation intheeconomic
field between theContracting Parties onamutually advantageous basis
andthecreation offavourable conditions forsuch cooperation .-
Article 11
TheJoint Commission shall also ensure theproper functioning ofany
sectoral Agreements between the'Contracting Parties and ,,tothis end ,shall
exercise theresponsibilities entrusted tothe joint bodies which .have been
ormaybesfctupunder such Agreements . '
Article 12
Theprovisions ofthis Agreement shall besubstituted forprovisions of
Agreements concluded between Member States oftheCommunity andPakistan
totheextent towhich the latter areeither incompatible oridentical with
the former .

Article 13
TheAnnexes form anintegral pari ...qf..this Agreement .
Article 14
This Agreement shall "apply totheterritories where theTreaty establishing
theEuropean Economic Community applies ,ontheconditions established in
thesaid Treaty ,andtotheterritories where theConstitution ofthe
Islamic Republic ofPakistan applies ..
Article 15
1.This Agreement shall enter into force onthefirst dayofthemonth
following thedate onwhich theContracting Parties notify each other
ofthecompletion oftheprocedures necessary forthis purpose .
2.This Agreement isconcluded foraperiod offive years andshall be
,extended from year toyear ifneither Contracting Party denounces it
sixmonths before itexpires .
3.Ifboth Contracting Parties agree ,this Agreement ,may ,however ,be
amended atanytime ,totake account ofemerging situations inthe
economic field andtheevolution ,ofeconomic policies onbo.th sides .
Article 16
This Agreement isdrawn upintwocopies intheDanish ,Dutch ,English ,
French ,German andItalian languages ,each text being authentic .
/

mm .i
JointDeclaration onthefunctioning oftheJointCommission
1.Therepresentatives oftheContracting PartiesintheJoint
Commission willtransmittheagreedrecommendations totheirrespective
authorities ,forconsideration andactiontohetakenasspeedily and
effectively aspossible .IntheeventoftheJointCommission being
unabletoevolvearecommendation onamatterconsidered byeither
Contracting Partytobeurgentorimportant ,itshallsubmit .theviews
ofthetwosidestothesaidauthorities forfurtherconsideration .
2.TheJointCommission should,whenmakingproposals and
recommendations ,havedueregardtotheIslamicRepublicofPakistan's
development plansandtotheprogressofeconomic,industrial ,social,
environmental andscientific policies oftheCommunity aswellasto.
thelevelofeconomic development oftheContracting Parties.
3.TheJointCommission willexaminepossibilities ofandmake,
recommendations fortheefficient utilization ofallavailable instruments ,
besidesmost-favoured-nationtariffsandGeneralized .Preferences ,to.
promotetradeinitemsofinterest totheIslamicRepublic ofPakistan .

A'îraEX2
Declaration oftheEuropean Eoonomic Community
ontariffadjustments andothermeasuresforfacilitating trade
1.,0n1July19711"theCommunity autonomously introduced a•
Generalized SchemeofPreferences onthe"basisofResolution 21(il)
oftheSecondUnitedNationsConference onTradeandDevelopment ,1S68.
TheCommunity isprepared ,inthecourseofitsendeavours toimprove
thissystem,totakeintoaccounttheinterests oftheIslamicliepubiic
ofPakistanintheextension andstrengthening ofitstraderelations
withtheCommunity .
2.TheCommunity isalsoprepared toexamineintheJoint '
Commission possibilities fortariffadjustments topromotethedevelop­
mentoftradewithPakistan .
3.Recognising thevitalimportance ofexportsofcottonproducts
andBasmatiricetotheeconomic development ofPakistan ,theCommunity '
isreadytoexamineintheJointCommission thesituation ofPakistan's
tradewiththeCommunity intheseproducts andtoexplorepossibilities
forfacilitating it^'insofaras-cottonproductsare-concerned to'theex­
tentpermitted bythecurrentagreement betweentheContracting Parties
andtheirmultilateral obligations .
4.TheCommunity understands thattheIslamicRepublic ofPakistan
willalsobepreparedtodiscussintheJointCommission theCommunity's
proposals ,ifany,,withregardtotariffadjustments bytheIslamic .
Republic ofPakistan aimedatthedevelopment oftradebetweenthe
Contracting Parties,takingintoconsideration thedevelopment needs
ofPakistan .

ÂWREX 3
Declaration oftheIslamic Republic ofPakistan
ontariff adjustments andother measures forfacilitating trade
1.TheIslamic Republic ofPakistan notes that theCommunity isv
prepared ,inthecourse ofitsendeavours toimprove thesystem of
Generalized Preferences ,totake into account theinterests ofthe
Islamic Republic ofPakistan intheextension andstrengthening ofits
trade relations with theCommunity .Inthis connection ,theIslamic
Republic ofPakistan will identify forconsideration bytheCommunity
theareas inwhich theCommunity 'sGeneralized Preferences canbeimproved ,
more especially inthecontext oftheprovisions oftheJoint Declaration
ofIntent .
i
?. TheIslamic Republic ofPakistan also notes that theCommunity is
prepared toexamine intheJoint Commission possibilities fortariff
adjustments topromote thedevelopment oftrade with Pakistan .Inthis
connection theIslamic Republic ofPakistan maynotify theCommunity of
products inrespect ofwhich such concessions aredesired ,forexamination
inthe Joint Commission . '
3.TheIslamic Republic ofPakistan further notes that theCommunity is
ready toexamine intheJoint Commission thesituation ofPakistan 'strade
with theCommunity incotton products andBasmati rice andtoexplore
possibilities forfacilitating it,insofar ascotton products areconcerned
totheextent permitted bythecurrent agreement between theContracting
Parties andtheir multilateral obligations .
4»TheIslamic Republic ofPakistan will also beprepared todiscuss in
theJoint Commission theCommunity 'sproposals ,ifany ,with regard totariff
adjustments bytheIslamic Republic ofPakistan aimed atthedevelopment of
trade between theContracting Parties ,taking into consideration thedevelop­
ment needs ofPakistan .