A4-0031/97

Resolution on the economic and commercial aspects of the partnership and cooperation agreement between the European Communities and their Member States of the one part, and the Republic of Armenia of the other part, replacing the trade and cooperation agreement with the USSR on which official contractual relations are currently based

The European Parliament,

- having regard to Rule 148 of its Rules of Procedure,

- having regard to the report by the Committee on External Economic Relations (A4-0031/97),

A. whereas close cultural and historical links have existed since ancient times between the Transcaucasian countries, and particularly Armenia, and certain European countries,

B. whereas certain Union Member States have large resident communities of Armenian origin,

C. whereas Armenia, which has borders with Russia, Turkey and Iran, forms part of a strategic area of major importance to the security of Europe as a whole,

D. whereas the various conflicts in the Transcaucasian region are undermining the economic and political stability in the respective countries, forcing much of the population to grow dependent on foreign relief aid,

E. having regard to the desire of Armenia and the other Transcaucasian states, members of the CIS, to come closer to Europe's political and security structures and to become progressively integrated into the open international system,

F. having regard to the Republic of Armenia's efforts to develop a market economy, the commitment to liberalize trade and this country's application to the WTO,

1. Believes that it is urgent and essential that the European Union step up its presence in the Transcaucasian region, and contribute to the political stabilization and economic development of the region and of Armenia in particular;

2. Notes that respect for the principles of a free market economy is one of the essential elements of the partnership and cooperation agreement, and is encouraged by the progress which has been made by Armenia in this regard; is interested to note that that country's commitment to genuine economic reform, as testified by the Commission, has enabled it to achieve an economic performance which is among the best in the CIS;

3. Welcomes the structure set up by the partnership and cooperation agreement in key sectors such as democracy, human rights and cultural cooperation; emphasizes the importance of cooperation for the prevention of illicit activities such as corruption, illegal transactions involving industrial waste, counterfeit goods, money laundering, drugs trafficking and illegal immigration;

4. Notes that the development of Armenia's economy has benefited from the ceasefire which has been in force between Armenia, Azerbaijan and Nagorny Karabakh since May 1994;

5. Considers however that the economic blockade imposed on Armenia as a result of the conflict in Nagorny Karabakh is seriously hampering Armenia's full potential for economic development and that efforts should be made to bring about the lifting of the blockade as part of a peace agreement;

6. Recalls that Armenia is particularly dependent on foreign trade for its energy and food supplies, and therefore believes that foreign aid, and particularly aid from the European Union, is essential to the country's stabilization and development;

7. Recognizes the important role played by European NGOs in delivering food and medical aid to many of the more isolated communities of Armenia in order to meet the most basic and immediate needs of the local populations which have suffered from the deprivations of war both in economic and military terms;

8. Regrets the decision of the Armenian government to reopen the Medzamor nuclear power station, and whilst recognising that lack of resources has contributed to this, stresses the need for the EU to provide assistance through the TACIS program for the definition and implementation of a long-term energy strategy allowing the use of alternative energy resources. However, as the natural gas supply is, as a consequence of the conflict on Nagorny Karabakh, interrupted by a blockade, the question of safe energy supply cannot be dissociated from the peaceful settlement of this conflict;

9. Considers that the Commission should ensure the smooth transition from relief aid to structural aid (TACIS) whereby the former is not suspended until the latter is firmly in place and guaranteeing a continued role for local NGOs;

10. Notes the strategic importance of the Transcaucasian region in terms of its energy sector, and stresses the importance of the principle of equitable conditions of transit for exporting energy products, and the need for cooperation relating to investment projects in the sector, particularly as regards the construction and refurbishing of the means of transporting energy products, including oil and gas pipelines;

11. Notes that the 'indicative programme¨ implemented between 1993 and 1995 has had positive results but that additional efforts have to be made especially in the field of social policy, combining the success of the ECHO-emergency aid with long-term sustainable TACIS programmes;

12. Believes that the partnership and cooperation agreement should provide an effective solution in this connection;

13. Considers that this agreement will contribute to a positive climate for the development of trade and investment between the EU and the Republic of Armenia; welcomes the application by Armenia to the WTO, and urges the EU to continue to assist the country with a view to accession;

14. Notes that one of the main elements of the EU's policy of establishing a network of partnership and cooperation agreements with the Transcaucasian states is the promotion of good relations, mutual confidence and regional cooperation amongst these countries;

15. Believes that the development of transport and communications both between Armenia and its neighbours and between Armenia and the European Union, like the energy sector, should be recognized as being of particular importance; calls on the Commission therefore, in conjunction with the authorities of all the Transcaucasian countries, to investigate which areas which could benefit from such programmes and to report to Parliament on the results of the programmes;

16. Believes nevertheless that neither the occupation of part of Azerbaijani national territory by Armenia, nor the economic blockade imposed by Turkey and Azerbaijan, are appropriate means of promoting the development potential of the country and the region as a whole; stresses that the occupation and the economic blockade must come to an end as soon as possible, and that the lifting of both should constitute an important part of a future peace treaty;

17. Considers it desirable to maintain a climate conducive to the search for a fair and viable solution to the Nagorny Karabakh conflict in accordance with the principles of the OSCE and calls on the regional powers most directly concerned by the conflict to refrain from any interference;

18. Calls the European Union and its Member States, through the framework of the CFSP, to adopt a more coordinated and active role in helping to solve the current political conflicts, in order to enhance the opportunities for cooperation and the promotion of prosperity and stability in the region provided by the partnership and cooperation agreement;

19. Notes the establishment in June 1992 of the Black Sea Economic Cooperation Area with the objectives of creating a zone of peace and prosperity and promoting economic cooperation; welcomes the decision by the participants to establish a Bank for Black Sea Development and Trade to be based in Thessaloniki, and the agreement currently in the final stages of ratification;

20. Stresses that the partnership and cooperation agreement with Armenia represents the EU's commitment to support the independence, sovereignty and territorial integrity of this country;

21. Expresses its concern at the political crisis which erupted after the elections and calls on all of Armenia's political forces to promote a constructive dialogue along the lines recommended by the OSCE in order to overcome the current difficulties and delays;

22. Believes furthermore that the development of Armenia is inextricably bound up with that of the Transcaucasian region as a whole, and that with a view to the political stability of the region, assent to the partnership and cooperation agreements proposed for each of the three states in the region should be given at the same time;

23. Instructs its President to forward this resolution to the Commission and Council and to the Government of the Republic of Armenia.