Proposal for a COUNCIL DECISION on the conclusion by the European Community of an Agreement between the European Economic Community and Estonia on trade and commercial and economic cooperation
Date: 1992-05-04
Institutions: European Commission
Subjects: USSR, agreement (EU), economic cooperation, republic, trade cooperation

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(92) 177 final 

Brussels, 4 May  1992 

Proposal  for a 

COUNCIL  DECISION 

on the conclusion by the European Economic Community of an 
Agreement between the European Economic Community  and  Estonia on 
trade and commercial  and economic  cooperation 

(presented  by  the Commission) 

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EXPLANATORY  MEMORANDUM 

1. The attached  proposal  for a Council Decision  is the legal  instrument 
for the conclusion  of the Agreement  on Trade and Commercial  and 
Economic Cooperation between  the European Economic Community  and the 
European Atomic Energy  Community  and the Republic of Estonia. 

2. Exploratory  talks between Commission  and Estonian experts took place 
between November  1991 and  February  this year  in Brussels. 

3. On the basis of directives  adopted  by the Council  on 4 November  1991 
there were a number of  informal meetings between Community  and  Estonian 
representatives, which  resulted  in a formal  negotiating  session  in 
Brussels on 27 February  this year, at which the Agreement  was 
initialled. 

Regarding  the  initialled  text, which  is attached  to the proposal  for a 
Decision, the  following  should  be noted: 

(a)  it contains  no financial  protocol  or  financial  undertakings; 
(b)  the respect  for democratic  principles  and  human  rights  is an 

essential  aspect of the Agreement  (Article 1 ); 

(c)  ECSC products and textile and  clothing  products  falling  within 
Section  XI of the Harmonized  System  are not covered  by  the 
Agreement  (Article  3 ); 

(d)  the Community  and  Estonia  reaffirm  their undertaking  to accord 

each other most-favoured-nation treatment  under the GATT, and the 
Community  also undertakes to abolish quantitative  restrictions 
specific  to Estonia  (Article 8 ); 

(e)  as regards commercial  cooperation, Estonia  also undertakes  to 

guarantee effective, suitable protection  of  intellectual  and 
commercial  property  and  to accede to the relevant  international 
conventions  (Article  13(3)); 

(f)  economic  cooperation  is focused  on the sectors  listed  non-

exhaustively  in Article  15 with  a view to establishing  economic 
links and  increasing  trade between  the two parties: it  is also 
designed  to support  structural  changes  in the Estonian  economy; 

(g)  the Community  undertakes  to support  Estonia's  applications  to 

accede to  international  organizations  and  conventions 
(Article 17); 

(h)  Article  18 sets up a Joint Committee  and  lays down  its 

responsibilities: the Committee will monitor the proper working of 
the Agreement  and  recommend  measures that  it deems appropriate  to 
achieve  the aims of the Agreement. 

-  2 -

3 

(i)  the Agreement  is concluded  for an initial period  of ten years, 

tacitly  renewable each year: it may be denounced  by means of the 
usual procedure, and  suspended with  immediate effect, totally or 
partially, should  there be serious  infringement  of  essential 
provisions of the Agreement. 

4. Since Articles  113 and  235 of the Treaty provide the  legal basis  for 
the Agreement, the opinion of Parliament  is required. 

5. It is proposed to sign a joint declaration on political  dialogue 
when the Agreement  is signed. 

6. The Council  is asked  to adopt the attached  proposal  for a Council 
Decision on the conclusion  of an Agreement  on Trade and Commercial  and 
Economic Cooperation  between  the Community  and Estonia. 

1 

PROPOSAL  FOR 

A COUNCIL  DECISION 

of 

on the conclusion  by  the European Economic Community  of an 
Agreement  between the European Economic Community  and  Estonia on 
trade and commercial  and economic  cooperation 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES 

Having  regard  to  the  Treaty  establishing  the  European  Economic 
Community, 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  conclusion  of  the  Agreement  between  the  European  Economic 
Community  and  on  trade  and  commercial  and  economic  cooperation  is 
necessary  for the achievement  of the Community's objectives  in the  field 
of  external  economic  relations;  whereas  this  Agreement  should  be 
approved  on behalf of the European  Economic Community; 

Whereas  it  appears  that  certain  measures  of  economic  cooperation 
provided  for  by  the  Agreement  exceed  the  powers  of  action  provided  for 
in  the  Treaty,  and  in  particular  those  specified  in  the  field  of  the 
common commercial  policy, 

HAD DECIDED AS FOLLOWS: 

Article 1 

The  Agreement  between  the  European  Economic  Community  and  Estonia  on 
trade  and  commercial  and  economic  cooperation  is  hereby  approved  on 
behalf  of the European Economic  Community. 

The text of  that Agreement  is attached  to this decision. 

The  President  of  the  Council  shall  give  the  notification,  provided  for 
in Article 21 of the Agreement. 

Article 2 

- 2 -

Article 3 

X 

The  Commission  assisted  by  representatives  of  the  Member  States,  shall 
represent  the  Community  in  the  joint  committee  set  up  by  Article  18 of 
the Agreement. 

Done at Brussels, 

For the Council 

The  President 

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Brussels,  27  February  1992 

DRAFT AGREEMENT 

between  the  European  Economic  Community  and  the  Republic  of  Estonia  on 
trade and commercial  and economic  cooperation 

THE EUROPEAN  ECONOMIC  COMMUNITY, 

hereinafter  called  the  "Community,  of  the one  part, and 

THE REPUBLIC OF  ESTONIA, 

hereinafter  called  "Estonia", of  the other part, 

CONSIDERING  the  importance  of  establishing  and  expanding  trade  links 
between  the Community  and Estonia, 

DESIROUS  of  creating  favourable  conditions  for  a  substantial  and 
harmonious  development  and diversification of  trade and  the promotion of 
commercial  and  economic  cooperation  in  areas  of  mutual  interest  on  the 
basis of equality,  non-discrimination,  mutual  benefit  and  reciprocity, 

AWARE  of  the  particular  importance  of  foreign  trade  and  other  forms  of 
international  economic  cooperation  for  the  economic  and  social 
development  of  each of  the Contracting  Parties, 

AWARE  of  the  importance  of  giving  full effect  to all  the provisions  and 
principles  of  the  CSCE  process,  and  in  particular  those  set  out  in  the 
Helsinki  Final  Act,  the  concluding  documents  of  the  Madrid,  Vienna  and 
Copenhagen meetings, and those of the Charter of Paris  for a new Europe, 
particularly  with  regard  to the rule of law, democracy  and human rights, 
as well as those of the Bonn CSCE Conference on Economic  Co-operation, 

RECOGNIZING  the  importance  of  guaranteeing  the  rights  of  ethnic  and 
national groups  and minorities,  in accordance  with  the  undertakings  made 
within  the context  of  the CSCE, 

AWARE  of  the  importance  of  strengthening  their  democratic  institutions 
and of  supporting  the  process of economic  reform  in  Estonia, 

BELIEVING  that  a  further  impetus  should  be  given  to  the  trading  and 
economic  relationship  between  the  Community  and  Estonia  by  establishing 
contractual  links  which  will  contribute  to  progress  towards  the 
objective  of  an association  agreement  in due course,  when conditions  are 
met, and  to further  development  of relations  between  them, 

TAKING  INTO  ACCOUNT  the  favourable  implications  for  trade  and  economic 
cooperation  between  the  Contracting  Parties  of  reform  under  way  in 
Estonia, 

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HAVE  DECIDED  to conclude  this Agreement  and  to  this  end  have  designated 
as  their  Plenipotentiaries: 

THE  EUROPEAN  ECONOMIC  COMMUNITY: 

THE REPUBLIC  OF  ESTONIA: 

WHO, having  exchanged  their  full powers,  found  in good  and due  form, 

HAVE AGREED AS FOLLOWS: 

TITLE I 

Genera 1 

Article 1 

Respect  for  the  democratic  principles  and  human  rights  established  by 
the  Helsinki  Final  Act  and  the  Charter  of  Paris  for  a  new  Europe 
inspires  the domestic and external  policies of  the Community  and  Estonia 
and constitutes  an essential element  of the present  agreement. 

Article 2 

Within  the  framework  of  their  respective  laws  and  regulations,  the 
Contracting  Parties undertake  to facilitate and  promote: 

the  harmonious  development  and  diversification  of  trade  between 
them; 

the  development  of  various  types  of  commercial  and  economic 
cooperation. 

They  therefore  confirm  their  resolve  to  consider  favourably,  each  for 
its  own  part,  suggestions  made  by  the  other  Party  with  a  view  to 
attaining  these aims. 

TITLE II 

Trade and commercial  cooperation 

Article 3 

1.  This  Agreement  shall  apply  to  trade  in  all  products  originating  in 
the  Community  and  in  Estonia  with  the  exception  of  products  covered  by 
the Treaty  establishing  the European Coal and  steel Community  and  of  the 
textiles  and  apparel  covered  by Section  XI of  the  Harmonized  System. 

2.  The  provisions  of  this Agreement  may  be supplemented  if necessary  by 
sectoral  agreements  or  arrangements  concluded  between  the  Community  and 
Estonia.  In  particular,  a  separate  agreement  for  textile  products  will 
be  negotiated. 

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Article 4 

Unless otherwise  specified  in this Agreement,  trade and  other  commercial 
cooperation  between  the  Contracting  Parties  shall  be  conducted  in 
accordance with  their  respective  laws and regulations. 

Article 5 

1.  The Contracting  Parties  shall accord  each other most-favoured-nation 
treatment  in all matters  regarding: 

- 

customs  duties  and  charges  of  any  kind  imposed  on  or  in  connection 
with  importation  or  exportation, 

- 

the method of  levying  such duties and charges, 

all  rules  and  formalities  in  connection  with  importation  and 
exportation,  including  provisions  relating  to  customs  clearance, 
transit, warehousing  and  transhipment, 

taxes  and  other  internal  charges  levied  directly  or  indirectly  on 
imported  products, 

- 

methods of payment  and  the transfer of such payments, 

- 

the 
distribution  and  use of goods on the domestic market. 

regulations 

affecting 

sale, 

purchase, 

the 

transport, 

2.  The provisions  of paragraph  1 shall not apply to: 

(a) advantages  accorded  to  adjacent  countries  in  order  to  facilitate 

frontier  traffic; 

(b) advantages  accorded  with  the  aim  of  creating  a  customs  union  or  a 
free trade area or  pursuant  to the creation of such  a union or  area; 

(c) advantages  accorded  to  particular  countries  in  accordance  with  the 
General  Agreement  on  Tariffs  and  Trade  and  other  international 
arrangements  in  favour of developing  countries. 

Article 6 

from 
Without  prejudice  to  the  rights  and  obligations  stemming 
international  conventions  on the temporary  admission  of goods which  bind 
both sides, 
the  Contracting  Parties  shall  furthermore  grant  each  other  reciprocal 
exemption  from"import  charges  and  duties on goods  admitted  temporarily, 
in the instances  and  according  to the procedures  stipulated  by  any  other 
international  convention  on  this  matter  binding  only  one  of  them. 
Account  shall  be  taken  of  the  conditions  under  which  the  obligations 
stemming  from  such  a  convention  have  been  accepted  by  the  Contracting 
Party  in question. 

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Article 7 

Estonia  shall  grant  imports  of  products  originating  in  the  Community 
treatment  which  is  non-discriminatory 
in  relation  to  products 
originating  in  other  countries,  as  regards  the  application  of 
quantitative  restrictions,  the  granting  of  licences  and  access  to  the 
foreign currency  needed  to pay  for such  imports. 

Article 8 

1.  Without  prejudice  to  Article  7,  each  of  the  Contracting  Parties 
shall  grant  imports  of  products  originating  in  the  other  the  highest 
degree of  liberalization  generally  extended  to third countries.  To  that 
end,  the  specific  quantitative  restrictions  applying  to  imports  from 
Estonia  into the Community  shall be eliminated-

2.  For  the  purposes  of  this  Agreement,  "specific  quantitative 
restrictions"  shall  mean  those  quantitative  restrictions  applied  by  the 
Community  to  imports  originating  in  Estonia  under  Regulation  (EEC) 
No 3420/83,  which  concerns  products  other  than  those  to  which 
quantitative  restrictions  are applied  under Regulation  (EEC) No  288/82. 

Article 9 

The  Parties  shall  inform  each  other  of  any  changes  in  their  tariff  or 
statistical nomenclature  or of any decision taken  in accordance with  the 
procedures  in force concerning  the classification of products covered  by 
this Agreement. 

Article 10 

Goods  shall be  traded  between  the contracting  Parties  at  market-related 
prices. 

Article 11 

1.  The  Contracting  Parties  shall  consult  each  other  if  any  product  is 
being  imported  into  the  territory  of  one  of  them  in  such  increased 
quantities  or  on  such  terms  as  to  cause  or  threaten  to  cause  serious 
injury to domestic  producers of  like or directly competing  products. 

2.  The  Contracting  Party  claiming  serious  injury  or  threat  thereof 
shall request consultations  by notification  in writing  and  shall  provide 
the  other  Party  with  all  the  relevant  information  required  for  a 
detailed examination  of  the  situation. 

3.  The  consultations  requested  pursuant  to  paragraph  1  shall  be  held 
with  a  view  to  seeking  mutually  satisfactory  solutions  and  with  due 
regard  for  the  fundamental  aims  of  the  Agreement;  they  shall  be 
completed  not  later  than  30  days  from  the  date  of  notification  of  the 
request by the Party  concerned,  unless  the Parties agree otherwise. 

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4.  If,  as  a  result  of  such  consultations,  it  is  agreed  that  the 
situation referred  to in paragraph  1 exists, exports  shall be  limited or 
such  other  action  taken,  possibly  with  regard  to  the  price  at  which 
these exports are sold, as will prevent or remedy  the  injury. 

5.  If,  following  action  under  paragraphs  1  to  4,  agreement  is  not 
reached  between  the  Contracting  Parties,  the  Contracting  Party  which 
requested  the consultations  shall be free to restrict  the  imports of  the 
products  concerned  to  the  extent  and  for  such  time  as  is  necessary  to 
prevent or remedy the injury.  The other Contracting  Party  shall then be 
free  to deviate  from  its obligations  towards  the  first  Party  in  respect 
of  substantially  equivalent trade. 

6.  In critical  circumstances, where  delay would  cause  damage  difficult 
to repair, such preventive or remedial action may  be taken  provisionally 
without  prior  consultation,  provided  consultations  are  held  immediately 
after such action  is taken. 

7.  In  the  selection  of  measures  under  this  Article,  the  Contracting 
Parties  shall  give  priority  to  those  which  cause  the  least  disturbance 
to the functioning of this Agreement. 

8.  Where  necessary  the  Contracting  Parties  may  hold  consultations  to 
determine  when  the measures  adopted  pursuant  to paragraphs 4 to  6  shall 
cease to apply. 

Article 12 

1.  This  Agreement  shall  not  preclude  prohibitions  or  restrictions  on 
imports,  exports  or  goods  in  transit  justified  on  grounds  of  public 
morality,  public  policy  or  public  security,  the  protection  of  life  and 
health  of  humans,  animals  or  plants,  the  protection  of  industrial, 
commercial  and  intellectual  property,  or  rules  relating  to  gold  or 
silver or  imposed  for the  protection of national  treasures  of artistic, 
historic or archaeological value. 

Such prohibitions and restrictions must not, however, constitute a means 
of  arbitrary  discrimination  or  disguised  restrictions  on  trade  between 
the Contracting Parties. 

2.  This Agreement  shall  not  preclude  the taking  of  action  justified  on 
grounds of protection of essential security  interests: 

(a) relating  to  fissionable  materials  or  the materials  from  which  they 

are derived; 

(b) relating  to traffic  in arms, ammunition and  implements of war and  to 
such  traffic  in other  goods and materials  as  is carried  on  directly 
or indirectly  for the purpose of supplying a military  establishment; 

(c) taken  in  time  of  war  or  other  emergency  in  international  relations 
or  to  allow  it  to  comply  with  obligations  it  has  accepted  in 
connection  with the maintenance of  international peace and  security. 

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Article  13 

1.  The  Contracting  Parties  shall  make  every  effort  to  promote,  expand 
and  diversify  their  trade  on  the  basis  of  non-discrimination  and 
reciprocity.  In  the  spirit  of  this  Article,  the  Joint  Committee 
established  under  Title V  of  this  Agreement  will  attach  special 
importance  to  examining  ways  of  encouraging  the  reciprocal  and 
harmonious expansion of trade. 

2.  In  furtherance  of  the aims of  this Article  and within  the  limits  of 
their  respective  powers, the Contracting  Parties  agree  on  the  necessity 
to  improve  favourable  business  regulations  and  facilities  for  each 
other's  firms  or  companies  on  their  respective  markets,  inter alia  by 
taking steps: 

to ensure  the publication and  facilitate exchanges  of  commercial  and 
economic  information  on  all  matters  which  would  assist  the 
development  of commercial  and economic cooperation,  for example: 

- 

general and sectoral  import arrangements, 

economic  and  commercial  law,  including  regulations  on  markets, 
companies and  investment, 

macroeconomic  information  and  statistics,  including  production, 
consumption and  foreign trade statistics, 

to  facilitate  the  establishment  and  operation  of  each  other's 
companies, 

- 

to encourage  trade promotion activities, 

to  provide  natural  and  legal  persons  of  the  other  Party  with 
guarantees  of  their  individual  and  property  rights,  such  as 
non-discriminatory  access for that purpose to courts and  appropriate 
administrative  bodies of the Community  and Estonia. 

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3.  Estonia  will  take  measures  guaranteeing  an  effective  and  adequate 
protection  of  intellectual,  industrial  and  commercial  property,  at  a 
level  similar  to that which  exists  in the Community, and  will  adhere  to 
international  Conventions  on  intellectual,  industrial  and  commercial 
property. 

4.  The  Contracting  Parties  undertake  to  facilitate,  within  the  limits 
of  their  respective  powers,  administrative  cooperation  between  the 
appropriate  authorities  in matters  relating to customs, in particular  in 
the following areas: 

vocational  training, 

simplification of customs documentation and procedures, and 

prevention  and  detection  of  infringements  of  the  rules  on  customs 
matters,  including  the rules governing  import quotas. 

Within the limits of  their respective powers, the Contracting  Parties: 

Article 14 

shall  encourage  the  adoption  of  arbitration  for  the  settlement  of 
disputes  arising  out  of  commercial  and  cooperation  transactions 
concluded  by companies,  enterprises or economic organizations  of  the 
Community  and  those of Estonia, 

agree that when a dispute  is submitted to arbitration,  each  party  to 
the  dispute  may  freely  choose  its  own  arbitrator,  irrespective  of 
nationality,  and  that  the  presiding  third  arbitrator  or  the  sole 
arbitrator  may be a citizen of a third state, • 

shall  encourage  recourse  to  the  arbitration  rules  developed  by  the 
United Nations  commission  on  International  Trade  Law  (Uncitral)  and 
to arbitration  by  any  centre  of a state signatory  to the -Convention 
on  Recognition  and  Enforcement  of Foreign Arbitral  Awards  concluded 
in New York on  10 June  1958. 

TITLE III 

Economic  cooperation 

Article 15 

1.  In  the  light  of  their  respective  economic  policies  and  objectives, 
the  Contracting  Parties,  within  the  limits  of  their  existing  powers, 
shall  foster  economic  cooperation  on as broad a base  as  possible  in  all 
fields deemed  to be  in their mutual  interest. 

The objectives  of  such cooperation  shall be, inter alia: 

to  reinforce  and  diversify  economic  links  between  the  Contracting 
Parties, 

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"J 

to  contribute  to  the  development  of  their  respective  economies  and 
standards of  living, 

- 

to open up new sources of  supply  and  new markets, 

to  encourage  cooperation  between  economic  operators  with  a  view  to 
promoting  joint  ventures,  licensing  agreements,  and  other  forms  of 
industrial  cooperation  to develop their  respective  industries, 

- 

to encourage  scientific  and technological  progress, 

to  support  structural  changes  in  the  Estonian  economy  which  will 
increase  and  diversify  trade  in  goods  and  services  with  the 
Community, 

- 

to encourage  the participation  of  small and medium-sized  enterprises 
in trade and  industrial  cooperation. 

2.  In order  to  achieve  these  objectives, the Contracting  Parties  shall 
make  efforts  to  encourage  and  promote  economic  cooperation  in  areas  of 
mutual  interest,  in particular  in the  following  sectors: 

industry,  including  the textiles and apparels'' sectors, 

agriculture,  including  agro-industry, 

fisheries, 

- 

science and technology  in areas in which the Contracting  Parties  are 
active and which  they  consider  to be of mutual  interest, 

- 

telecommunications, 

energy,  including  the  saving  of  energy  and  the  development  of  new 
sources of  energy, 

m ining and  production  of building materials, 

environmental  protection,  including  protection  from  water  and  air 
pollution  and  industrial  accidents,  and  the  management  of  natural 
resources;  also  taking  into  account  environmental  requirements  in 
other policy  areas  such as  industry,  agriculture,  energy,  transport, 

transport, communications  and the running of ports, 

tourism  and other  service activities, 

economic, monetary,  banking,  insurance and  financial  services, 

development  of  human  resources and training, 

health, 

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economic  policy, 

standards, 

statistics. 

3.  To  give  effect  to the  objectives  of  economic  cooperation  and  within 
the  limits  of  their  respective  powers,  the  Contracting  Parties  shall 
encourage  the  adoption  of  measures  aimed  at  creating  favourable 
conditions  for economic  and  industrial cooperation,  including: 

the  facilitation  of  exchanges  of  commercial  and  economic 
information, 

the  development  of  a  favourable  climate  for  investment,  notably  by 
the  extension  by  the  Member  States  of  the  Community  and  Estonia  of 
arrangements  for  investment  promotion  and  protection,  in  particular 
for  the  transfer  of  profits  and  the  repatriation  of  invested 
capital, and also of agreements on the avoidance  of double  taxation, 

exchanges  and  contacts  between  persons  and  delegations  representing 
commercial  or other appropriate organizations, 

the  organization  of  seminars,  fairs  or  exhibitions,  symposia  and 
business weeks. 

- 

the encouragement of activities contributing  to technical  competence 
in specific  fields, notably  commercialization. 

Article  16 

Without  prejudice  to  the  relevant  provisions  of  the  Treaties 
establishing  the  European  Communities,  this  Agreement  and  any  action 
taken  pursuant  to  it  shall  in  no  way  affect  the  powers  of  the  Member 
States  of  the  Community  to  undertake  bilateral  activities  with  Estonia 
in the  field of  economic cooperation and  to conclude, where appropriate, 
new economic cooperation agreements with Estonia. 

TITLE IV 

Accession  to international organizations  and  conventions 

Article  17 

The  Community  undertakes,  within  the  limits  of  its  powers,  to  support 
the  accession  of  Estonia  to  international  organizations  and  conventions 
to which  the Community  is a  party,  in order  to enable  Estonia  to  become 
more active  in the world  economic  system. 

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TITLE V 

Joint Committee 

Article 18 

1.  A Joint Committee  shall be set up, comprising  representatives  of  the 
Community,  on  the  one  hand,  and  representatives  of  Estonia  on  the 
other. 

The  Joint  Committee  shall  formulate  recommendations  by  mutual 
agreement  between the Contracting Parties. 

The  Joint  Committee  shall,  as  necessary,  adopt  its  own  rules  of 
procedure  and programme of work. 

The  Joint  Committee  shall meet  once  a  year  in  Brussels  and  Tallinn 
alternately.  Special  meetings  may  be convened  by  mutual  agreement, 
at  the  request  of  either  Contracting  Party.  The  Joint  Committee 
shall  be  chaired  alternately  by  each  of  the  Contracting  Parties. 
Wherever  possible,  the  agenda  for  meetings  of  the  Joint  Committee 
shall be agreed  beforehand. 

The  Joint  Committee  may  decide  to  set  up  working  parties  to  assist 
it in carrying  out its duties. 

2.  The  Joint  Committee  shall  ensure  the  proper  functioning  of  this 
Agreement  and  shall  devise  and  recommend  practical  measures  for 
achieving  its  objectives,  keeping  in  view  the  economic  and  social 
policies  of  the Contracting  Parties. 

3.  The  Joint  committee  shall endeavour  to  find  ways  of  encouraging  the 
development  of trade and commercial and economic  cooperation  between 
the Contracting  Parties.  in particular,  it shall: 

examine  the  various  aspects  of  trade  between  the  Parties, 
notably  its  overall  pattern,  rate  of  growth,  structure  and 
diversification,  the  trade  balance  and  the  various  forms  of 
trade and  trade  promotion, 

make  recommendations  on  any  trade  or  economic  cooperation 
problem  of mutual concern; 

seek  appropriate  means  of avoiding  possible  difficulties  in 
the  fields  of  trade  and  cooperation  and  encourage  various 
forms  of  commercial  and  economic  cooperation  in  areas  of 
mutual  interest; 

consider  measures  likely  to develop  and  diversify  trade  and 
economic 
import 
notably 
opportunities  in the Community  and  in  Estonia; 

cooperation, 

improving 

by 

Lt 

^c 

exchange  information  on  macroeconomic  plans  and  forecasts 
for  the  economies  of  the Contracting  Parties  which  have  an 
impact  on  trade  and  cooperation  and,  by  extension,  on  the 
scope 
their 
respective  economies  and  also  on  proposed  programmes  of 
economic  reform; 

complementarity 

developing 

between 

for 

examine  the  situation  concerning  the  procedures  for  the 
award  of  contracts  for  supplying  goods  and  services 
following an international  invitation to tender; 

exchange  information  on  amendments  to  and  developments  in 
the  laws,  regulations  and  formalities  of  the  Contracting 
Parties  in the areas covered by this Agreement; 

examine  favourably  ways  of  improving  conditions  for  the 
development  of  direct  contacts  between  firms  established  in 
the  Community  and those established  in Estonia; 

formulate  and  submit  to  the authorities  of  both  Contracting 
Parties  recommendations  for  resolving  any  problems  that 
arise,  where  appropriate  by  means  of  the  conclusion  of 
arrangements  or agreements. 

TITLE VI 

General and  final provisions 

Article 19 

Subject  to  the  provisions  of  Article  16,  the * provisions  of  this 
Agreement  shall  replace  the  provisions  of  agreements  concluded  between 
Member  States  of  the  Community  and  Estonia  where  the  latter  provisions 
are either  incompatible with or identical to the  former. 

Article 20 

This Agreement  shall  apply, on the one hand, to the territories  in which 
the  Treaty  establishing  the  European  Economic  Community  is  applied  and 
under  the conditions  laid down  in that Treaty  and, on  the other, to  the 
territory  of the  Republic  of Estonia. 

Article 21 

This  Agreement  shall  enter  into  force  on  the  first  day  of  the  second 
month  following* the  date  on  which  the  Contracting  Parties  notify  each 
other  that  the  legal  procedures  necessary  to  this  end  have  been 
completed.  The  Agreement  is  concluded  for  an  initial  period  of  ten 
years.  The  Agreement  shall  be  automatically  renewed  year  by  year 
provided  that  neither  Contracting  Party  gives  the  other  Party  written 
notice of denunciation  of the Agreement  six months  before  it expires. 

L 

^ 

However,  the  two  Contracting  Parties  may  amend  the  Agreement  by  mutual 
consent  in  order  to  take  account  of  new  developments,  notably  the 
situation which would  arise  from the accession of Estonia  to the General 
Agreement  on  Tariffs  and  Trade.  In  the  latter  case,  the  Contracting 
Parties  shall  prepare  together  the  amendments  to  this  Agreement 
necessary  to take account of the protocol of accession of Estonia  to the 
General  Agreement.  If  the  Parties  are  unable  to  agree  on  this  subject 
they reserve  the right to denounce this Agreement. 

The  parties  reserve  the  right  to suspend  this Agreement  in whole  or  in 
part  with  immediate  effect  if  a  serious  violation  occurs  of  the 
essential provisions of the present agreement. 

Article 22 

This  Agreement  is  drawn  up  in duplicate  in  the  Danish,  Dutch,  English, 
French, 
and 
Portuguese, 
Italian, 
Estonian  languages, each text being equally authentic. 

German, 

Spanish 

Greek, 

FICHE  D'INCIDENCE 

-1 s 

IMPACT DE LA PROPOSITION  SUR LES P.M.E 
ET SUR LE MARCHE DE  L'EMPLOI 

L'incidence  économique  éventuelle  du  présent  accord  ne  saurait  être 
qu'indirecte  et  tributaire des  recommandations du  Comité  Mixte  institué 
dans  le cadre de celui-ci.  Il n'est donc pas possible de procéder à une 
évaluation  précise des effets économiques de  l'accord. 

FICHE FINANCIERE 

Le présent  accord  n'a  pas d'implications budgétaires directes. 

/]°) 
ISSN 0254-1475 

COM (92) 177 final 

DOCUMENTS 

EN 

02  li 

Catalogue number: CB-CO-92-192-EN-C 

ISBN 92-77-43808-8 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg