lUi CQÏvMI S S ï ON OF THE EUROPEAN COMMUNITIES 
mmm\ C0M(S1) 434 final 
Brussels, 7 November 1S91 
Proposal for a 
COUNCIL DECISION 
canoerrdDg the ooqolTisicn of the Fraxoevar*: Agreeraent for cooperation 
between the European Eooconic Connconity &ç& the BepuiOic of Paraguay 
(presented by the Commission) 
Explanatory memorandum 
1. By its decision of 18 March. 1991, the Council authorized the Commission 
to open negotiations with the Republic of Paraguay with a view to 
concluding a framework agreement for cooperation and adopted directives to 
this end. 
2. Two negotiating sessions took place, the first on 15 July in the 
morning , and the second in the afternoon. The second session ended with 
the initialling of the agreement between the Community and the Republic of 
Paraguay. An exchange of letters concerning shipping and a declaration by 
the Gammunity on the Generalized Preferences System are attached to the 
Agreement and form an integral part of it. 
3. The Commission considers that the text initialled is in line with the 
negotiating directives adopted by the Council. 
4. Because the legal basis of the Agreement includes Article 235 of the 
Treaty of Rome in addition to Article 113, Parliament must be consulted. 
5. With a view to the signature and conclusion of this Framework Agreement 
for cooperation between the Ctammunlty and the Republic of Paraguay, the 
Commission is proposing to the Council that it approve the Agreement and 
adopt the attached proposal for a Decision. 
Proposal for a 
Council Decision No 
concerning the conclusion of the Framework Agreement f oir*cooperation 
between the European Economic Community and the Republic of Paraguay 
THE OUUflULL OF THE EUROPEAN (XfcMJNITIES, 
Having regard to the Treaty establishing the European Economic Comunity, 
and in particular Articles 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas the Community should approve, for the attainment of its aims in the 
sphere of external economic relations, the Framework Agreement for trade 
and economic cooperation with the Republic of Paraguay; 
HAS DBCTTW) AS FOLIWS: 
Article 1 
The Framework Agreement for trade and economic cooperation between the 
European Economic Oammunity and the Republic of Paraguay is hereby approved 
on behalf of the Community. 
The text of the Agreement is attached to this Decision. 
Article 2 
The President of the Council shall give the notification provided for in 
Article 25 of the Agreement.1 
Article 3 
The Commission, assisted by representatives of the Member States, shall 
represent the Community in the Joint Committee set up by Article 21 of the 
Agreement. 
Article 4 
This Decision shall enter into force on the day following its publication 
In the Official Journal of the European Communities. 
Done at Brussels, 
1 The date of entry into force of the AgreementForllhëeOpuhan^hed in the 
Official Journal of the European Communities B^etBeeâèdenil Secretariat 
of the Council. 
Framework agreement for cooperation 
between the European Economic Qammunity 
and the Republic of Paraguay 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
of the one part, 
THE GOVERNMENT OF THE REPUBLIC OF PARAGUAY, 
of the other part, 
CONSIDERING the links of friendship between the Member States of the 
European Economic Community, hereinafter referred to as "the Community", 
and the Republic of Paraguay, hereinafter referred to as "Paraguay", 
REAFFIRMING the iinportance they attach to the principles of the United 
Nations Charter, to democratic values and to respecting human rights, 
TAKING ACCOUNT of the points reaffirmed in the Rome Declaration of 
20 December 1990, and the Luxembourg Communiqué concluded on 27 April 1991 
between the Community, its Member States and the countries of the Rio 
Group, 
CONSIDERING the readiness of the Community and its Member States to help 
address the social and economic problems confronting Paraguay as it returns 
to democracy, 
TAKING ACCOUNT of their mutual interest in establishing contractual links 
in order to develop extensive cooperation in areas which are of key 
importance to social and economic progress, to step up and diversify trade 
and encourage the flow of investment, 
TAKING account of the Ctarnmunity's new policy on cooperation with the 
developing countries of Latin America, 
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MINDFUL of the importance of securing the participation in cooperation of 
the individuals and bodies with a direct interest in the matter, 
particularly economio operators and the bodies which represent them, 
WHEREAS Paraguay is engaged in a vast regional integration process together 
with Argentina, Brazil and Uruguay in the Southern Cone Common Market, 
hereinafter referred to as MMercosu^,', and whereas the Community intends to 
establish cooperation with each of those countries and with the new 
regional entity, aimed at providing support for the said integration 
process; 
TAKING ACCOUNT of their membership or future membership of the General 
Agreement on Tariffs and Trade (GATT) and of the need to uphold and 
reinforce the rules for free and unhampered international trade, 
HAVE DBGIORD to conclude this Agreement and to this end have designated as 
their Plenipotentiaries: 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
SHE REPUBLIC OF PARAGUAY, 
WHO, having exchanged their Full Powers, found in good and due form, 
HAVE AGREED AS FOLLOWS: 
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Article 1 
Democratic basis for cooperation 
Cooperation ties between the Community and Paraguay and this Agreement in 
its entirety shall be based on respect for the democratic principles and 
human rights which inspire the domestic and external policies of both the 
Community and Paraguay. 
Article 2 
Support for democratization 
1. The Contracting Parties consider the support that the Ctamraunity can 
offer towards the consolidation of democracy in Paraguay to be crucial. In 
this regard, the Community reaffirms its readiness to help strengthen the 
democratic institutions of Paraguay to the extent of its powers and its 
ability. 
2. The Parties likewise agree to encourage, by appropriate measures, the 
return to Paraguay of persons obliged to leave it on political grounds. 
Article 3 
Economic cooperation 
1. The Contracting Parties, taking into account their mutual interest and 
long and medium-term economic objectives, undertake to establish economic 
cooperation of the widest possible scope. The aims of such cooperation 
shall be, in particular: 
(a) to promote diversification of the economy of Paraguay; 
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(b) to strengthen and diversify the economic links between the 
Contracting Parties; 
(c) to contribute to the development of their economies and the 
improvement of their standards of living; 
(d) to open up new markets and new sources of supply; 
(e) to create conditions which favour the development of the employment 
market; 
(f ) to encourage industrial and trade cooperation, particularly among 
small and medium-si zed enterprises, 
(g) to assist the integration of Paraguay into Mercosur. 
2. Without excluding any field from the outset, the Contracting Parties 
shall determine in which flelds there will be eœnomic and industrial 
cooperation between them, having regard to their respective aims, their 
mutual interest and their own ability. 
Taking account of the above, cooperation will centre on the following: 
(a) services, including financial services, and tourism, transport and 
telecommunications; 
(b) intellectual and industrial property, regulations and standards, 
(c) the management of natural resources and, in particular, the 
conservation and efficient use of forest resources, including 
reafforestation ; 
(d) environmental protection; 
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(e) agriculture; 
(f) industry, mining and energy; 
(g) economic and monetary affairs. 
3. Provision shall be made for the following, in particular: 
(a) conferences and seminars; 
(b) trade and industrial missions; 
(0) exploratory missions and missions concerned with investment and the 
promotion of joint ventures; 
(d) visits and meetings between economic operators; 
(e) the organization of business weeks and general and sector-based 
fairs; 
(f) the provision of the services of experts; 
(g) specific studies; 
(h) (consultancy and technical assistance services; 
(i) cooperation between financial institutions; 
(j) the conclusion between the Member States of the EEC and Paraguay of 
double taxation agreements; 
(k) the exchange of appropriate information, particularly access to 
existing or future databases; 
(1) the creation of networks of business people, particularly 
industrialists. 
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Article 4 
Agricultural cooperation 
1. Paraguay and the Garcraunity shall establish cooperation in agriculture. 
To this end they shall examine in a spirit of cooperation and good will : 
(a) the opportunities for increasing their trade in agricultural 
products; 
(b) health, plant health and environmental measures and their effects, 
to prevent them hindering trade, while taking into account the two 
Parties' legislation in this field. 
2. The Community shall contribute to Paraguay's efforts to diversify its 
exports of agricultural products. 
Article 5 
Industrial cooperation 
1. The Contracting Parties agree to promote the expansion and 
diversification of Paraguay's production in the Industrial and service 
sectors, directing their cooperation activities at small and medium-sized 
enterprises, in particular, and encouraging steps to facilitate access on 
the part of those enterprises to sources of capital, markets and the 
appropriate technology. These steps may include the joint establishment of 
suitable machinery and Institutions. 
2. The Contracting Parties likewise agree to consider the possibility of 
promoting projects which could help Paraguayan industry to integrate 
smoothly into Mercosur. 
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Article 6 
Cooperation regarding the environment 
1. The Contracting Parties undertake to cooperate on the ijoprovement and 
protection of the environment in order to address the issues of water, soil 
and air pollution, erosion, desertification and deforestation, and the 
excessive exploitation of natural resources. They shall also encourage the 
productive conservation of the forest and aquatic flora and fauna, of 
watercourses and the conservation of tropical forests and national parks. 
2. To this end, the Contracting Parties shall direct their efforts as 
regards the environment towards the following, in particular: 
(a) the establishment and iiaprovement of environmental protection 
structures in the public and private sectors; 
(b) the development and ijraprovement of laws, regulations and standards; 
(c) research, training and information, and alerting public opinion to 
the issues in question; 
(d) the execution of studies and projects and the provision of 
technical assistance; 
(e) the organization of meetings, seminars, workshops, conferences and 
visits among civil servants, specialists, engineers, business 
people and others fulfilling functions connected with the 
environment. 
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Article 7 
Investment 
The Contracting Parties agree: 
(a) to promote, so far as their powers, rules and regulations and 
policies permit, an increase in mutually beneficial, investment; 
(b) to iinprove further the favourable climate for mutual investment by 
the Ctanmunity Member States and Paraguay, particularly through 
agreements for the promotion and protection of such investment on 
the basis of the principles of non-discri ml nation and reciprocity. 
Article St 
Cooperation on science and technology 
1. The Contracting Parties agree to support the promotion and development 
of Paraguay's scientific and technological capabilities. 
This aim will be pursued by fostering and promoting cooperation of the 
widest possible scope between specialist bodies or firms of both parties, 
in particular by establishing ties between the research centres of both 
parties in order to resolve jointly problems of mutual concern. 
2. Without excluding any area from the outset, the Contracting Parties 
shall together determine the spheres of their cooperation. These shall 
include the following, in particular: 
(a) stoengthening research capabilities; 
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(b) developing and managing policy on science and technology; 
(c) protection and improvement of the environment; 
(d) promoting efficient use of natural resources, in particular forest 
resources; 
(e) promoting regional integration and cooperation in science and 
technology; 
(f) disseminating information and expertise in science and technology. 
3. The Contracting Parties will facilitate and encourage the introduction 
of measures aimed at achieving the objectives of cooperation between them, 
in particular: 
(a) joint research projects between the parties' research centres and 
other appropriate Institutions; 
(b) exchanges of scientific information, particularly through seminars, 
workshops, conferences, etc. 
(c) support for the reintegration into Paraguay of scientists, 
engineers and specialists. 
Article 9 
Most-favoured-nation treatment 
1. The Contracting Parties shall grant each other, in respect of their 
imports and exports of goods, most-favoured-nation treatment on the basis 
of the General Agreement on Tariffs and Trade. 
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Article 10 
Temporary importation of goods 
The Contracting Parties undertake to give consideration to granting 
exemption from duties and taxes for goods temporarily imported into their 
territory which are covered by the relevant international agreements and 
are intended for re-export. 
Article 11 
Trade cooperation 
1. The Contracting Parties agree to develop and diversify trade to the 
highest possible degree, taking into account the economic situation of each 
of the parties and facilitating trade transactions between them as far as 
possible. 
2. The Contracting Parties agree to examine ways and means of eliminating 
non-tariff barriers and, taking account of the work done by international 
organizations, they will commit themselves to a policy aimed at: 
(a) making trade transactions between them as easy as possible; 
(b) cooperating bilaterally and multilaterally on issues of common 
concern, Including intellectual and industrial property, 
origin-related designations, commodities and manufactured and 
semi-manufactured products; 
(c) facilitating cooperation between their customs services in spheres 
including vocational training, the slmpl 1 fication of procedures and 
detection of infringements of customs rules; 
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(d) taking each other's interests into account in relation to access to 
resources, the processing of such resources and market access for 
the products of the Contracting Parties; 
(e) bringing economic operators into closer contact in order to 
diversify and Increase current trade flows; 
(f) examining, recommending and implementing trade promotion measures 
in the interests of expanding imports and exports; 
(g) seeking each other's opinion as far as possible on measures likely 
to have an adverse effect on trade between them. 
Article 12 
Coopération concerning government 
1. The Contracting Parties shall cooperate in contributing to the 
rationalization and modernization of government service at national and 
regional levels, notably with regard to the restructuring of central 
government. 
2. To attain these objectives, the Oontracting Parties shall endeavour to 
promote, inter alia: 
- seminars and training courses for civil servants and the staff of public 
institutions and government departments; 
- :Lmprovement of the equipment of public institutions and government 
departments. 
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Article 15 
Cooperation on Information, communication and culture 
1. Cooperation between the Contracting Parties shall encompass information 
and communication, taking account of the cultural dimension of their 
relations. 
2. Such cooperation shall include the preservation of historic and 
cultural objects. 
Article 14 
Training 
1. Cooperation established within the framework of the Agreement may 
include appropriate training. 
2. Training will be targeted essentially at instructors and teachers or 
supervisory staff already in positions of responsibility in firms, 
government departments, public services and other areas of economic and 
social activity. 
3. The Contracting Parties shall consider the possibility of introducing 
specific training programmes which help to strengthen Paraguay's democratic 
institutions. 
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Article 15 
Publto health 
The extracting Parties agree to cooperate in the field of public health, 
with the aim of raising the standard of living and quality of life, 
particularly in the most disadvantaged sectors . In the interests of 
attaining these aims, the Parties undertake to conduct joint research, 
transfers of technology, and interchanges of experience and technical 
assistance, notably Including measures relating to the following: 
- the management and administration of the departments with responsibility 
for this field; 
- the organization of scientific meetings and exchanges of specialists; 
- the undertaking of programmes of vocational training; 
- programmes and projects for the improvement of health and social welfare 
in urban and rural areas. 
Article 16 
Drug abuse control 
1. The Contracting Parties undertake, in conformity with their respective 
legal provisions, to coordinate and step up their efforts to prevent and 
reduce the production, trafficking and consumption of drugs. 
2. Such cooperation shall include the following: 
- projects for training, education, health-promotion and rehabilitation of 
addicts, including projects for the reintegration of addicts into 
working life and society; 
- research programmes and projects; 
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- measures to encourage alternative economio activities; 
- the exchange of all relevant information, including that «relating to 
money laundering. 
3. Financing for the operations referred to may be contributed by public 
and private institutions and national, regional or international 
organizations, in consultation with the Government of Paraguay and the 
appropriate authorities of the Community and its Member States. 
Article 17 
Tourism 
The Contracting Parties shall, in accordance with their laws, promote 
coopération on tourism, which is to be achieved through specific measures 
focusing on: 
- exchanges of officials and experts dealing with tourism, the interchange 
of information and statistics relating to this field and the transfer of 
technology; 
- the development of activities to stimulate tourist traffic; 
- the advancement of training schemes intended in particular to support 
hotel operation and management; 
- joint participation in fairs and exhibitions aimed at increasing tourist 
flows. 
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Article 18 
Regional cooperation and integration 
1. Cooperation between the Contracting Parties may extend to action 
undertaken within the context of cooperation or integration agreements 
with third countries in the same region. 
2. Without excluding any sphere of action, the following shall be given 
particular consideration: 
(a) cooperation on environmental issues at regional level; 
(b) development of intra-regional trade; 
(c) the strengthening of regional institutions and support for the 
introduction of common policies and activities; 
(d) regional communications, notably waterways. 
Article 19 
Development cooperation 
1. In order to consolidate and accelerate Paraguay's economio and social 
development, the Community will implement assistance operations in the 
context of the Community programmes for developing countries. 
2. Particular ijoportance shall be attached to rural development, notably 
integrated rural development, joint training schemes, action aimed at 
ijmoroving self-sufficiency in food, employment, urban and rural housing and 
promoting grassroot organizations. 
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Article 20 
Resources for cooperation 
In order to facilitate the achievement of the aims set out in this 
Agreement, the Contracting Parties shall make available, within the limits 
of their abilities and through their own channels, the appropriate 
resources, including financial resources. 
Article 21 
Joint Cooperation Committee 
1. A Joint Cooperation Committee shall be established, consisting of 
representatives of the Community and of Paraguay. It shall meet once a 
year, alternately in Brussels and Asuncion, on a date and with an agenda 
fixed by mutual agreement. Extraordinary meetings may be convened with the 
consent of both parties. 
2. The Joint Committee shall see to the proper functioning of the Agreement 
and shall examine all issues arising from its application. In fulfilling 
this role, its main functions shall be to: 
(a) consider measures for developing and diversifying trade, in 
accordance with the objectives of this Agreement, 
(b) exchange views on any points of common interest regarding trade and 
cooperation, including future programmes and the resources for 
them, 
(o) make recommendations for promoting the expansion of trade and 
stepping up intensified cooperation, without neglecting the need to 
coordinate the measures planned, 
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(d) in general terms, recommend solutions aimed at helping to attain 
the objectives of this Agreement. 
3. The Joint Committee may set up specialized subcommittees and working 
parties to assist it in the performance of its duties. 
Article 22 
Other agreements 
1. Without prejudice to the provisions of the Treaties establishing the 
European Communities, neither this Agreement nor any action taken under it 
shall in any way affect the powers of the Member States of the Communities 
to undertake bilateral activities with Paraguay in the field of economic 
cooperation with Paraguay or, where appropriate, to conclude new economic 
cooperation agreements with Paraguay. 
2. Subject to the provisions of paragraph 1 ocax)erning e<x>nomic 
cooperation, the provisions of this Agreement shall replace the provisions 
of the agreements concluded between the Member States of the Communities 
and Paraguay where such provisions are either incompatible with or 
identical to the provisions of this Agreement. 
Article 23 
Territorial application 
This Agreement shall apply, on the one hand, to the territories in which 
the Treaty establishing the European Economic Community is applicable under 
the conditions laid down by that Treaty and, on the other, to the territory 
of the Republic of Paraguay. 
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Article 24 
Future developments 
1. The Contracting Parties may by mutual consent expand this Agreement 
with a view to increasing the levels of cooperation and supplementing them, 
each in accordance with its laws, by means of agreements on specific 
sectors or activities. 
2. Within the framework of this Agreement, either of the Contracting 
Parties may put forward suggestions for widening the scope of cooperation, 
taking into account the experience gained in its application. 
Article 25 
Entry Into force and duration 
1. This Agreement shall enter into force on the first day of the month 
following the date on which the Oontraoting Parties have notified each 
other of the completion of the pcrocedures necessary for this purpose. 
2. This Agreement is ccmcluded for a period of five years. It shall be 
renewed on a yearly basis unless one of the Contracting Parties denounces 
it six months before the date of expiry. 
Article 26 
Annexes 
The Annexes shall form an integral part of this Agreement. 
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Article 27 
Authentic languages 
This Agreement is drawn up in duplicate in the Danish, rxitch, English, 
French, German, Greek, Italian, Portuguese and Spanish languages, each text 
being equally authentic 
Done at Brussels, 
Xo 
ANNEX I 
EXCHANGE OF LETTERS CN MARITIME TRANSPORT „.. 
Letter 1 
Sir, 
Please would you confirm your Government's agreement to the following: 
When the Agreement on cooperation between the European Economic Community 
and Paraguay was signed, the Parties undertook to address in the 
appropriate manner issues relating to the operation of shipping, 
particularly where the development of trade might be hindered. Mutually 
satisfactory solutions on shipping will be sought, with due respect for the 
principle of free and fair competition on a commercial basis. 
It has likewise been agreed that such issues should also be discussed by 
the Joint Committee. 
Please accept, Sir, the assurance of our highest consideration. 
On behalf of the 
Council of the European Communities 
XA 
Letter 2 
Sirs, 
I have the honour to confirm my Government's agreement to the following: 
"When the Agreement on cooperation between the European Economic Community 
and Paraguay was signed, the Parties undertook to address in the 
appropriate manner issues relating to the operation of shipping, 
particularly where the development of trade might be hindered. Mutually 
satisfactory solutions on shipping will be sought, with due respect for the 
principle of free and fair competition on a commercial basis. 
It has likewise been agreed that such issues should also be discussed by 
the Joint Committee. " 
Please accept, Sirs, the assurance of my highest consideration. 
For the 
Government of the Republic 
of Paraguay 
IK, 
ANNEX II 
UNILATERAL DECLARATION BY. THE COMMUNITY CN THE gSP 
The European Economio Ctommunity hereby confirms the importance which it 
attaches to the Generalized System of Preferences, set up by 
Resolution 21 (II) of the Second United Nations Conference on Trade and 
Development. 
The European Community is prepared to examine any suggestions put to it by 
Paraguay in order to enable that country to make the best and widest 
possible use of the generalized preferences scheme which the Community has 
implemented in accordance with the abovementioned Resolution. 
In order to ensure that Paraguayan officials and business people are 
properly acquainted with the Community scheme, the Commission will arrange 
information seminars in Paraguay. 
*A 
Fiche Financière 
Accord de coopération CE - Paraguay 
1• Lignes budgétaires concernées 
a) lignes dont l'application est conditionnée par l'existence d'un 
Accord de coopération : 
B7-5020 - Actions dans le cadre d'accords de coopération 
économique et commerciale avec des pays tiers 
B7-3015 - Actions visant la promotion de l'investissement 
communautaire dans les PVD d'Amérique latine dans 
le cadre des accords de coopération économique et 
commerciale 
B6-8200 - Coopération Internationale - actions de recherche 
et de développement dans le cadre des accords de 
coopération avec des pays tiers. 
b) autres I ignés : 
B7-3010 - Coopération financière et technique avec des PVD 
d'Amérique Latine 
B7-3011 - Promotion des relations commerciales des PVD 
d'Amérique latine 
87-3012 - Actions destinées à favoriser les efforts 
d'Intégration régionale ou subrégionale entre 
les PVD d'Amérique latine 
B7-3013 - Coopération avec des PVD d'Amérique latine dans 
le domaine énergétique 
87-3014 - Actions de formation en faveur de ressortissants 
de PVD d'Amérique latine 
B7-5030 - Organisation de séminaires sur le 
SPG communautaire 
B7-5040 - Environnement dans les PVD 
87-5045 - Programme d'actions de coopération Nord-Sud dans le 
domaine de la lutte contre la drogue 
(Budget 1992 : B7-5080 - Programme d'actions de 
coopération Nord-Sud dans le domaine de la lutte 
contre les drogues et la toxicomanie) 
-at 
2. Base légale 
Base légale existante 
3. ClassifIcat ion 
DNO 
4. PeserIptIon 
4.1 Objectif : 
Etablir une coopération dans l'intérêt des deux parties. 
4.2 Personnes concernées : 
Opérateurs économiques et instances responsables des deux 
parties. 
5. Nature de la dépense 
5.1 Nature : 
Aide à fonds perdus en faveur de divers projets dans les 
différents domaines de coopération couverts par I'Accords. 
6. Incidence financière de l'action sur les crédits d'intervention 
6.1 Echéancier des crédits d'engagement et de paiement : 
Selon demande et approbation par les services de la Commission 
des actions à développer 
6.2 Part du financement communautaire (en %) dans le coût total de 
l'action 
à décider au cas par cas; dans certains cas Jusqu'à 100%. 
6.3 Modalités du financement de l'action pendant l'année en cours : 
A partir des crédits existants. 
7. Observât ions 
Le volume des dépenses dérivées de l'accord de coopération sera 
déterminé, pour les budgets futurs, selon la procédure habituelle. 

ISSN 0254-1475 
COM(91) 434 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-91-478-EN-C 
ISBN 92-77-76887-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg