Proposal for a COUNCIL DECISION on the conclusion by the European Economic Community of an Agreement between the European Economic Community and the European Atomic Energy Community and Lithuania 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) 179 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  the 
European  Atomic  Energy  Community  and  Lithuania  on 
trade  and  commercial  and  economic  cooperation 

Proposal  for a 

COUNCIL  PEC IS ION 

approving  the  Agreement  between  the  European  Economic  Community 
and  the  European  Atomic  Energy  Community 
and  Lithuania  for  the  purpose  of  final  conclusion  by 
the  Commission  on  behalf  of  the  European  Atomic  Energy  Community 

(presented  by the Commission) 

z 

EXPLANATORY  MEMORANDUM 

1. The attached  proposal  for a Council  Decision  (I) 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 Lithuania. 

2. The attached proposals  Council  (II) and Commission (III) Decisions 
constitute  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 Lithuania  on behalf  of the European Atomic  Energy 
Community. 

3. Exploratory  talks between Commission  and  Lithuanian  experts  took 
place between November  1991 and January  this year  in Brussels. 

4. On the basis of directives  adopted  by the Council  on  4 November  1991 
there were a number  of  informal meetings  between  Community  and 
Lithuanian  representatives, which  resulted  in a formal  negotiating 
session  in Brussels on 31 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 Lithuania  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 Lithuania  (Article 8 ); 

(e)  as regards  commercial  cooperation, Lithuania  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 Lithuanian  economy; 

(g)  the Community  undertakes  to support  Lithuania'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. 

3 

-  2 -

(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. 

5. Since Articles  113 and 235 of the Treaty provide the  legal basis  for 
the Agreement  for the EEC, Parliament must be  consulted. 

6. The two Communities  (EEC and EAEC) have different  procedures  for the 
conclusion  and  signing of agreements. 

Signing: The Council, acting  for the EEC, authorizes  the  competent 
persons to sign the Agreement. 

The Commission  of the European  Communities, acting  for the EAEC, 
authorizes  the competent  persons to sign the Agreement. 

Conclusion: 

the Council, having  consulted  Parliament, concludes  the Agreement  on 
behalf  of  the EEC  in accordance with Articles  113 and  235 of  the EEC 
Treaty  by adopting  the Decision  set out  in I; 

-  the Council  approves the Agreement  on behalf  of the European  Atomic 

Energy  Community  in accordance with Article  101, second  paragraph, 
of the EAEC Treaty  (the Agreement  then being  concluded  by the 
Commission) by adopting  the Decision  set out  in II; 

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

8. The Council  is asked  to adopt  the attached  proposals  for 
Council  Decisions on  the conclusion of  an Agreement  on Trade and 
Commercial  and  Economic  Cooperation  between  the Community  and 
Lithuania. 

U) 

PROPOSAL  FOR A 

COUNCIL  DECISION 

of 

on the conclusion  by the European Economic  Community  of  an 
Agreement  between the European  Economic  Community  and  the 
European Atomic  Energy Community  and Lithuania  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  the  European  Atomic  Energy  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  the  European 
Atomic  Enegy  Community  and  Lithuania  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 

Article 3 

J" 

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 

( I I) 

Proposal  lor  a Council  Decision 
approving  the  Agreement  between  the  European  Economic  Community 
and  the  European  Atomic  Energy  Community 
and  Lithuania  for  the  purpose  of  final  conclusion  by 
the  Commission  on  behalf  of  the  European  Atomic  Energy  Community 

THE  COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy 
Community,  and  in  particular  the  second  paragraph  of  Article  101 
thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

Whereas  the  Commission  has  negotiated  the  Agreement  between  the  European 
Economic  Community  and  the  European  Atomic  Energy  Community,  and 
Lithuania  in  accordance  with  the  directives  of  the  Council,  and  proposes 
to  conclude  the  said  agreement  on  behalf  of  the  European  Atomic  Energy 
Community. 

Whereas  approval  should  be  given  for  conclusion  by  the  Commission  of  the 
said  agreement  on  behalf  of  the  said  Community, 

HAS  DECIDED  AS  FOLLOWS  : 

Sole  Article 

The  conclusion  by  the  Commission  of  the  Agreement  between  the  European 
Economic  Community  and  the  European  Atomic  Energy  Community,  and 
Lithuania  on  behalf  of  the  European  Atomic  Energy  Community  is  hereby 
approved. 

The  text  of  the  agreement  ir. attached  to  this  Decision. 

Done  at  Brussels 

for  the  Council 

The  President 

1 

(-aO 

Draft 

COLUISSION  DECISION 

of 

concerning  the conclusion on behalf of the European Atomic Energy 
Community of the Agreement between the European  Economic 
Community and the European Atomic Energy  Community 
and Lithuania on trade and commercial  and 
economic cooperation 

THE COMMISSION OF THE EUROPEAN COMMUNITIES,  HAD DECIDED AS FOLLOWS 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy 
Community,  and  in  particular  the  second  paragraph  of  Article  101 
thereof, 

Whereas  the  Agreement  between  the  European  Economic  Community  and  the 
European  Atomic  Energy Community  and  Lithuania on  trade  and  commercial 
and econom ic cooperat ion was signed on 

Whereas  by  Decision  of 
the  Council  approved  the  said 
Agreement  for the purposes of conclusion by  the Commission on behalf of 
the European Atomic Energy Community; 

Whereas the said Agreement should be concluded on behalf of  the European 
Atomic Energy  Community. 

Article 1 

The  Agreement  between  the European  Economic  Community  and  the  European 
Atomic  Energy  Community  and  Lithuania  on  trade  and  commercial  and 
economic  cooperation  is  hereby  concluded  on  behalf  of  the  European 
Atomic Enregy* Community. 

Article 2 

if 

the President  of the Commission  shall give the notification  provided  for 
in Article  21  of  the  Agreement  on  behalf  of  the  European  Atomic  Energy 
Community. 

Done at Brussels, 

For the  Commission 

The  President 

Jacques DELORS 

GROUPE 
EUROPE ORIENTALE 

DOC.  SEANCE  *itf 

_  1  -

9 

Brussels,  31 January  199^ 

DRAFT AGREEMENT 

between the European  Economic community  and the Republic  of Lithuania  on 
trade and commercial  and economic  cooperation 

THE EUROPEAN  ECONOMIC  COMMUNITY 

AND 

THE EUROPEAN ATOMIC ENERGY  COMMUNITY, 

hereinafter together  called the "community", of the one  part, and 

THE REPUBLIC OF  LITHUANIA, 

hereinafter  called  "Lithuania", of the other part, 

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

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 Lithuania, 

BELIEVING that a further impetus  should be given to the trading  and 
economic relationship between the Community  and Lithuania  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 
T,3.thuani* , 

i/ 

1 v3 

-2-

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

THE EUROPEAN  ECONOMIC  COMMUNITY: 

THE fcUKOPEAN ATOMIC bNERGY  COMMUNITY: 

THE REPUBLIC OF  LITHUANIA: 

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

HAVE AGREED AS FOLLOWS: 

TITLE I 

General 

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  inspire^the 
domestic  and  external  policies  of  the  Community  and  Lithuania  and^/0 
constitute^an essential element of the present agreement. 
'vt/Ul 

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. 

4 4 

-3-

TITLE II 

Trade and commercial  cooperation 

Article 3 

1. This  Agreement  shall  apply  to  trade  in. all  products  originating  in  the 
Community  and  in  Lithuania  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 
Lithuania. In particular, a separate agreement  for textile products will be 
negotiated. 

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 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  regulations  affecting  the  sale,  purchase,  transport,  distribution 

and use of  goods on the domestic  market. 

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

(a) 

(b) 

;c) 

advantages  accorded  to  adjacent  countries  in  order  to  facilitate 
frontier traffic; 

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; 

advantages  accorded  to  particular  couutriot, i;i accordance with  the 
General  Acr^er^nt  on  Tariffs  and  Tr?de  ?v3  rt>or  *nternation^l 
arrangements  in favour of developing countries. 

- 4, 

si/I  O.J f 

*L 

- 4-

Article 6 

Without prejudice to the rights and obligations  stemming  from  international 
conventions on the temporary admission of goods which  bind both contracting 
Parties,  the  Contracting  Parties  shall  furthermore  grant  each  other 
i.ecipiocal  extsiapcion  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. 

Article 7 

Lithuania  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 A  iri 
the  granting  of  licences  and  access  to the  foreign  currency  needed  to  pay 
j~-j( 
for such imports. 
\J 

Article 8 

1. Without  prejudice  to  Article *fcv  each  of  the  Contracting  Parties  shall-^V^L 
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 Lithuania  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 Lithuania  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. 

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

Article  10 

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. 

AMP, J 

13> 

-5-

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 consu.1 tatjons requested pursu-nt tc *---r^c-or>h  3  r}^U  be  held ^-ith 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. 

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; 

t 

/O AJP„, 

iy 

-6-

(b) 

(c) 

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; 

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. 

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 Lithuania. 

1s 

-7-

3.  Lithuania  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. 

Article  14 

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

-  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 Lithuania, 

-  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. 

1G 

-8-

TITLE III 

Economic  cooperation 

Article  15 

1. In  die  light  of  v.heir respective  economic  policies  ana  objectives.,, the 
Contracting  Parties, within  the  limits  of  their  respective  powers\\ioster 
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, 

-  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  Lithuanian  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, 

-  mining, 

-  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,  including 
nuclear research, 

-  telecommunications, 

-  energy, including  nuclear energy and nuclear  safety  (physical safety and 
radiation  protection),  the prevention  and  notification  of  accidents and 
the management of radioactive waste. 

-9 

^> 

-  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, 

-  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  Lithuania  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  ^ 
__t_-^Jy./^/jJCo, 

business weeks.. 

- 

\he  encouragement  of  activities  contributing  to  technical  competence 
specific  fields, notably  commercialization. 

in'^-fc 

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  Lithuania  in  the  field  of  economic 
cooperation  and  to  conclude,  where  appropriate,  new  economic  cooperation 
agreements with Lithuania. 

-10-

TITLE IV 

1? 

Accession to international organizations and  conventions 

Article 17 

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

TITLE V 

Joint  Committee 

Article 18 

1. A  Joint  committee  shall  be  set  up,  comprising  representatives  of  th-

Community,  on  the  one  hand,  and  representatives  of  Lithuania,  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  Vilnius 
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  fonr.s of 
trade and trade promotion. 

*

&-

-ll-

19 

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 Lithuania; 

cooperation, 

improving 

by 

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

examine  the  situation  concerning  procedure^ f or  the  award  (/T\_£ 
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 Lithuania; 

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  Lithuania  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 Treaties  establishing  the European  Economic  Community  and  the  European 
Atomic  Energy  Community  are  applied  and  under  the  conditions  laid down  in 
those  Treaties  and,  on  the  other,  to  the  territory  of  the  Republic  of 
Lithuania. 

V 

-12-

Article 21 

2 

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. 

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 Lithuania  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 Lithuania  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^ with  immediate 
effect /in whole or in part/if a serious violation  occurs  of  the  essenti 
provisions  of the present  agreement. 

Article 22 

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

z^ 

FICHE  D'INCIDENCE 

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. 

^ 

<J 

ISSN 0254-1475 

COM(92) 179 final 

DOCUMENTS 

EN 

02  11 

Catalogue number: CB-CO-92-194-EN-C 

ISBN 92-77-43826-6 

Office for Official Publications of the European Communities 
L-2985 Luxembourg