A4-0082/97

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 Azerbaijan, of the other part

The European Parliament,

- having regard to the proposal for a Council and Commission Decision on the conclusion of the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan of the other part, which will replace the Trade and Cooperation Agreement with the USSR which currently provides the basis for formal contractual relations (COM(96)0137),

- having regard to the fact that a Partnership and Cooperation Agreement between the EC and its Member States, of the one part, and Azerbaijan, of the other part, was initialled on 15 December 1995 and signed on 22 April 1996,

- having regard to its resolution of 17 January 1997 on the communication from the Commission 'Towards a European Union strategy for relations with the Transcaucasian Republics' ((Minutes of that Sitting, Part II, Item 8.)),

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

- having regard to the report of the Committee on External Economic Relations (A4-0082/97),

A. whereas economic and political ties exist between the countries of Transcaucasia, in particular Azerbaijan, and a number of European countries,

B. whereas close cultural, economic and historical ties exist between Azerbaijan and Turkey,

C. whereas unresolved conflicts, notably in Nagorno-Karabakh, are undermining economic, social and political stability and impeding further development,

D. whereas one fifth of the territory of Azerbaijan, far more than the disputed enclave of Nagorno-Karabakh, is occupied and more than one million refugees are camped out in tents, corrugated iron shacks and other forms of temporary accommodation, especially in and around Baku,

E. whereas, owing to its borders with Russia, Turkey and Iran, Azerbaijan is part of a zone which is of the greatest strategic significance for the security of Europe as a whole,

F. whereas Azerbaijan is a potentially wealthy country and the oil reserves in the Caspian Sea are greater than those of Saudi Arabia; whereas, however, the consequences of the war are placing a heavy burden on its economy and its economic development needs are great,

G. whereas Azerbaijan and the other Transcaucasian countries that belong to the CIS want closer ties with Europe's political and security structures and progressive integration into the open international system,

H. whereas Azerbaijan is making efforts to develop a pluralist market economy, is committed to liberalizing trade and wishes to develop its oil reserves further and exploit them for the purpose of developing the country,

1. Considers that the EU must as a matter of urgency boost its presence in the Transcaucasian region, as a sign of its desire for cooperation, and help bring political stability and economic development to the region, and to Azerbaijan in particular;

2. Notes that further democratization and the application of the principles of a social market economy constitute essential elements of the Partnership and Cooperation Agreement and urges Azerbaijan to make further progress and, in so doing, to consolidate the political and economic reforms, as it was urged to do in Parliament's resolution of 17 January 1997 referred to above;

3. Welcomes the desire for increased regional cooperation between Azerbaijan, Armenia and Georgia, without which economic development and increased prosperity in the Transcaucasian region are scarcely possible;

4. Takes the view, however, that neither the occupation of part of Azerbaijani territory nor the economic blockade imposed on Armenia is conducive to boosting the development potential of the two countries and of the region as a whole; stresses that the occupation and the economic blockade should therefore be ended as soon as possible, a stipulation which must be a component of the future peace treaty;

5. Insists that EU action should be part of an overall strategy bringing together economic, political and financial aspects and encompassing humanitarian aid;

6. Stresses that, in the context of the Minsk Conference, the EU should make its good offices available with the aim of restarting the peace process in Nagorno- Karabakh and ensuring its successful conclusion, i.e. by supporting OSCE efforts;

7. Is aware of the strategic significance for Europe of the Transcaucasian region and its energy resources and stresses the importance of ensuring appropriate conditions for the transit and export of oil and energy products and the need for cooperation in investment projects in this sector, in particular as regards the reconstruction and modernization of transport facilities for energy products, including oil and gas pipelines;

8. Takes the view that the Partnership and Cooperation Agreement, like the agreements with Armenia and Georgia, ought to provide a useful basis for a solution in this regard;

9. Takes the view also that the political cooperation for which it provides should enable the EU to contribute to setting the peace process in Nagorno-Karabakh in motion again and hence also to making the economic development of Azerbaijan possible;

10. Is of the opinion that the Agreement will create a favourable climate for the development of trade and investment, the first signs of which are already visible; proposes, in this connection, that the EU provide particular support for the development of the industrial sector and the setting up of an SME network; underlines, in this context, the importance of cooperation in preventing such illegal activities as corruption, illegal transactions concerning industrial waste, forgery, money-laundering, drug-trafficking and illegal immigration;

11. 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;

12. Is of the opinion that the greatest importance must be attached to developing transport and communications between Azerbaijan and its neighbours, in particular Georgia, and between Azerbaijan and the EU in the energy sector; calls on the Commission, therefore, to examine, jointly with the authorities of all the Transcaucasian countries, which sectors could be covered by such programmes and to report to Parliament on the results of those programmes;

13. Proposes in this connection that, with due regard for the criteria of economic efficiency and environmental sustainablity, all options for establishing, improving and expanding transport and energy infrastructure networks should be reviewed; stresses that such a review should cover all existing and potential overland, maritime and combined overland/maritime links:

- in the south: the overland route via Armenia, Nakhichevan and Turkey and the combined overland/sea route via Georgia, the Black Sea, Turkey and/or the Bosphorus;

- central: the overland/sea route via Georgia, the Black Sea, Bulgaria and Greece and the overland/sea route via Georgia, the Black Sea, the Danube and the Rhine-Main-Danube Canal (primarily for processed products);

- in the north: the overland/sea route via Russia, Ukraine, Hungary, Austria, etc.;

14. Points out that implementation of these initiatives depends on lasting peace being established in the Transcaucasian region and, at the same time, on regional cooperation between the three countries being placed on a secure footing;

15. 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;

16. Stresses that the Partnership and Cooperation Agreement with Azerbaijan places an obligation on the EU to support the independence, sovereignty and territorial integrity of Azerbaijan, including support for the peace process, which must be resumed, and practical, balanced proposals for a solution for Nagorno-Karabakh;

17. Is also of the opinion that the development of Azerbaijan is inextricably bound up with that of the Transcaucasian region as a whole and that, with a view to ensuring the region's political stability, assent should be given simultaneously to the partnership and cooperation agreements with the three countries concerned;

18. Instructs its President to forward this resolution to the Commission, the Council and to the government of the Republic of Azerbaijan.