Proposal for a Council Decision concerning the conclusion of the Co-operation Agreement between the European Community and the Democratic Socialist Republic of Sri Lanka on Partnership and Development
Date: 1994-02-15
Institutions: European Commission
Subjects: North-South relations, Sri Lanka, cooperation agreement (EU), economic cooperation, trade cooperation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94)  15  final 
Brussels.  15.02.1094 

94/0029  (CNS) 

Proposal  fora 

Council Decision 

concerning the conclusion of the Co-operation Agreement between the European Community 
and the Democratic Socialist Republic of Sri Lanka on Partnership and Development. 

(presented by the Commission) 

Explanatorv Memorandum 

1. 

2. 

3. 

4. 

By its decision of 8 February 1993, the Council authorised the Commission to 
open negotiations with the Democratic Socialist Republic of Sri Lanka with a view 
to concluding a new Co-operation Agreement and adopted directives to this end. 

The negotiating session took place, 22 and 23 March 1993 and 8 December 1993, 
ending with the initialing of the Agreement between the Community and the 
Democratic Socialist Republic of Sri Lanka The annexed declarations of (a) the 
Community concerning tariff adjustments and (b) a declaration of the Community 
and Sri Lanka concerning their rights and obligations under GATT, form an 
integral part of the Agreement. 

The Commission considers that the initialed text is in line with the negotiating 
directives adopted by the Council. 

The European Parliament must be consulted because the legal basis of the 
Agreement includes Article 228 par. 3 first indent in addition to Article 228 par.2, 
Article 113 and Article 130W of the Treaty establishing the European Community. 

5.  With a view to the signature and conclusion of this Co-operation Agreement 

between the Community and the Democratic Socialist Republic of Sri Lanka, the 
Commission is proposing to the Council that it approve the Agreement and adopt 
the attached proposal for a decision. 

<ib 

• 

Proposal for a 

Council Decision 

N* 

concerning the conclusion of the Co-operation Agreement between the European Community and the 
Democratic Socialist Republic of Sri Lanka on Partnership and Development. 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty establishing the European Community, and in particular Articles 228 par. 2 
and 3 first indent, 113 and 130W 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 
relations,  the Co-operation Agreement between the European Community and the Democratic Socialist 
Republic of Sri Lanka on Partnership and Development. 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Co-operation Agreement between the European Community and the Democratic Socialist Republic 
of Sri Lanka is hereby approved on behalf of the Community. 

The text of this Agreement is attached to this Decision. 

Article 2 

The President of the Council shall give the notification provided for in Article 26 of the Agreement. (1) 

Article 3 

The Commission, assisted by representatives of the Member States, shall represent the Community in 
the Joint Commission provided in Article 20 of the Agreement. 

The Decision shall enter into force on the day following its publication in the Official Journal of the 
European Community. 

Article 4 

Done at Brussels, 

For the Council 

The President 

(1) The date of entry into force of the Agreement will be published in the Official Journal of the 
European Community by the General Secretariat of the Council. 

1 c 

Democratic Socialist Republic of Sri Lanka 
On Partnership and Development 

THE COUNCIL OF THE EUROPEAN UNION, 

on the one part, 

THE GOVERNMENT OF SRI LANKA 

on the other part, 

CONSIDERING  the  excellent  relations  and  traditional  links  of friendship between  the  European 
Community and its Member States, hereinafter referred to as "the Community", and the Democratic 
Socialist Republic of Sri Lanka, hereinafter referred to as "Sri Lanka"; 

RECOGNISING the  importance  of  strengthening  the links and enhancing the partnership between 
the Community and Sri Lanka; 

RE-AFFIRMING the importance they attach to the principles of the United Nations Charter and the 
respect of democratic principles and human  rights; 

HAVING  REGARD  to  the  foundations  for  close  co-operation  between  Sri  Lanka  and  the 
Community laid by the Agreement  between  Sri Lanka and the Community  signed  on  the  22 July 
1975; 

NOTING with satisfaction the achievements resulting from that Agreement; 

INSPIRED  by their  common  will  to  consolidate,  deepen  and  diversify  their  relations  in  areas  of 
mutual interest on the basis of equality, non-discrimination and mutual benefit; 

RECOGNISING the positive consequences of the process of economic reforms for liberalisation and 
modernisation  of  the  economy  undertaken  in  Sri  Lanka for  enhancing  commercial  and  economic 
relations between Sri Lanka and the Community; 

DESIROUS  of creating fiivourable conditions  for  a  substantial  development  and diversification  of 
trade  and industry  between  the  Community  and  Sri Lanka,  which  will  further  investment  flows, 
commercial and economic co-operation in areas of mutual interest including science and technology, 
and foster cultural co-operation; 

RECOGNISING  the  need  to  support  Sri  Lankan  efforts  for  economic  and  social  development 
especially improving the living standards  of the poor and disadvantaged sections of the population; 

CONSIDERING the importance attached by the Community and Sri Lanka to the protection of the 
environment  on  a  global  and  on  a  local  level  and  to  the  sustainable  use  of  natural  resources 
recognising the linkage between the environment and development; 

NOTING their common interest in fostering  and strengthening regional  co-operation and the North 
South dialogue; 

TAKING  INTO  ACCOUNT  their  membership  of  the  General  Agreement  on  Tariffs  and  Trade 
(GATT),  the importance  of its principles  and of the need to  uphold and reinforce  the rules which 
promote free and unhindered trade in a stable, transparent and non-discriminatory manner; 

BELIEVING  that  relations  between  them  have  developed  beyond  the  scope  of  the  Agreement 
concluded in 1975; 

HAVE  DECIDED,  as  Contracting  Parties,  to  conclude  this  Agreement  and  to  this  end  have 
designated as their plenipotentiaries: 

THE COUNCIL OF THE EUROPEAN UNION; 

THE GOVERNMENT OF SRI LANKA; 

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

HAVE AGREED AS FOLLOWS: 

ARTICLE! 

Democratic Basis of the Co-operation 

Co-operation ties between the Community and Sri Lanka and this Agreement in its entirety are based 
on  respect  for  democratic  principles  and  human rights which  inspire  the  domestic  and  external 
policies  of  both the  Community  and  Sri Lanka  and which  constitute  an  essential  element  of  the 
Agreement 

General Objectives 

1.  The general  objectives  of this  Agreement  are to  enhance  and  develop,  through  dialogue and 
partnership,  the  various  aspects  of  co-operation between  the  Contracting  Parties  in  order  to 
achieve a closer and upgraded relationship. 

This co-operation will focus in particular on: 

• 

• 

• 

• 

• 

further development  and diversification  of trade and investment  in their mutual interest, 
taking into account their respective economic situations; 

development in their mutual interest of existing and new forms of economic co-operation 
directed  at  promoting  and facilitating  exchanges  and connections between their business 
communities, taking into account the implementation of Sri Lankan economic reforms and 
opportunities for the  creation of a suitable environment for investment; 

facilitation of better mutual understanding and strengthening of ties in respect of technical, 
economic and cultural matters; 

building  up  of  Sri  Lanka's  economic  capability  to  interact  more  effectively  with  the 
Community; 

acceleration  of  the  pace  of  Sri  Lanka's  development,  supporting  Sri  Lanka's  efforts  in 
building up its economy  and in particular to improve the living conditions of the poorer 
sections of the population; 

• 

support of environmental protection and sustainable management of natural resources. 

I.  The Contracting Parties acknowledge the value in the light of the objectives of this Agreement, 

of consulting each other on international issues of mutual interest. 

ARTICLE 3 

Trade and Commercial Co-operation 

1.  The  Community  and  Sri  Lanka  shall  continue  to  grant  each  other  most-favoured-nation 
treatment in their trade in accordance with the provisions of the General Agreement on Tariffs 
and Trade. 

2. 

In the interest  of  strengthening  new  relations  in  a dynamic  and  complementary  way,  thereby 
providing  mutual  benefits,  the  Contracting  Parues  undertake  to  develop  and  diversify  their 
commercial  exchanges  and  to  improve  market  access,  to  the  highest  possible  degree,  in  a 
manner compatible with their economic situations. 

3.  The Contracting Parties are committed  to  a policy  of improving the terms of access  for their 
products to each other's markets. They shall grant each other the highest degree of libéralisation 
of imports and exports which they generally apply to third countries and they agree to examine 
ways and means of progressively eliminating barriers to trade between them, notably non-tariff 
barriers,  taking  account  of  the  work  already  done  in  this  connection  by  international 
organisations. 

4  The Contracting Parties agree to promote the exchange of information about mutually beneficial 
market opportunities  and to  hold  consultations  in a constructive  spirit  on  the  issues  of tariff, 
non-tariff  services, health, safety or environmental measures, and technical requirements. 

5.  The  Contracting  Parties  agree  to  improve  co-operation  in  customs  matters  between  the 
respective authorities, especially in professional training, the simplification and harmonisation of 
customs procedures, and the prevention, investigation and suppression of infractions of customs 
regulations. 

6  The Contracting Parties also undertake to give consideration, each in accordance with its laws, 
to exempting from duty, tax and other charges, goods admitted temporarily to their territories 
for subsequent re-export  unaltered or for goods which re-enter their territories after processing 
in the other Contracting Party which is not sufficient  for the goods to be treated as originating 
from  the territory of that Contracting Party. 

7  The  Contracting  Parties  agree  to  consult  each  other,  without  prejudice  to  their rights and 
obligations  under  GATT,  on  any  dispute  which  may  arise  in  connection  with  trade.  If  the 
Community or Sri Lanka request such consultation, it shall take place at the earliest opportunity. 
The  Contracting  Party  making  the  request  shall  provide  the  other Party  with  all  information 
necessary  for  a  detailed  examination  of  the  situation.  Attempts  shall  be  made  through  such 
consultations to resolve trade disputes as rapidly as possible. 

Economic Co-operation 

1.  The Contracting Parties undertake,  in accordance with their respective  policies  and objectives 
and within their financial means available, to foster economic co-operation for mutual benefit. 

2.  The  Contracting  Parties  agree  that  economic  co-operation will  involve  three  broad fields of 

action: 

a) 

b) 

c) 

improving  the  economic  environment  in  Sri Lanka  by  facilitating  access  to  Community 
know-how, technology and capital; 

facilitating contacts between economic operators and other measures designed to promote 
commercial exchanges and investments; 

reinforcing  mutual  understanding  of  their  respective  economic,  social  and  cultural 
environment as a basis for effective co-operation. 

3. 

In the broad fields described above, and without excluding any area from the outset, the aims of 
the Contracting Parties shall be in particular to: 

improve the economic environment and business climate; 

co-operate in the protection of the environment and natural resources; 

co-operate in the field of energy, including non conventional sources and energy efficiency; 

co-operate in the field of telecommunications, information technology, and related matters; 

co-operate in the field of metrology and industrial standards; 

co-operate in the field of intellectual property: 

co-operate in the area of regional integration, through transfer of experience; 

encourage technology transfer in other sectors of mutual benefit; 

exchange information on monetary matters and the macro-economic environment; 

reinforce and diversify economic links between them; 

encourage, by means of a favourable climate, the two-way flow  of Community-Sri Lanka 
trade and investments; 

promote  co-operation  in  order  to  develop  agriculture, fisheries, mining,  transport  and 
communication,  health,  drug  abuse  control,  banking  and  insurance,  tourism  and  other 
services; 

facilitate the establishment of conditions conducive to job creation; 

encourage close co-operation between their private sectors; 

promote co-operation between small and medium sized enterprises; 

activate co-operation in the industrial sector,  including agro-industry and industry with a 
heavy technological bias; 

promote co-operation in industrial and urban ecology; 

support Sri Lankan efforts in the field of trade promotion and market development; 

promote co-operation between education and training institutions; 

promote scientific and technological co-operation; 

encourage co-operation in the field of privatisation in Sri Lanka; 

co-operate in the fields of information and culture. 

Co-operation in certain of the above-mentioned sectors is set out in more detail in Articles  5 to 
12 of this Agreement. 

4.  The  Contracting  Parties  shall  consider,  each  in their mutual  interests  and  in  accordance  with 

their respective policies and objectives, the following means to achieve these aims: 

exchange of information and ideas; 

preparation of studies; 

provision of technical assistance; 

training programmes including vocational training; 

establishment of links between research and training centres, specialised agencies, business 
organisations; 

promotion of investment and joint ventures; 

institutional development of public and private agencies and administrations; 

access to each other's existing data bases and creation of new ones; 

workshops and seminars; 

exchanges of experts. 

The Contracting Parties  will  determine  together  and to  their mutual  advantage  the  areas and 
priorities to be covered by concrete actions of economic co-operation, in conformity with their 
long-term objectives. 

dBIIOEI 

Investment 

1.  The Contracting Parties shall encourage an increase in mutually beneficial investment by 

establishing a more favourable climate for private investments including better conditions for the 
transfer of capital and exchange of information on investment opportunities. 

2.  Taking into account work done in this area in relevant international fora, recognising the 

bilateral investment treaties concluded between Sri Lanka and a number of Member States of 
the Community, that Sri Lanka is a contracting party to the Multilateral Investment Guarantee 
Agency (MIGA) Convention, and a signatory to the International Convention for the 
Settlement of Investment Disputes (ICSID), the Contracting Parties will support further 
agreements on the promotion and protection of investments between the Member States of 
the Community and Sri Lanka on the basis of the principles of non-discrimination and 
reciprocity. 

3.  The Contracting Parties undertake to encourage co-operation between their respective  financial 

institutions. 

ARTICLE 6 

Private Sector 

1.  The Contracting Parties agree to promote the involvement of the private sector in their co 

operation programmes in order to strengthen economic and industrial co-operation between 
themselves. 

The Contracting Parties shall take measures to: 

a) 

b) 

encourage the private sectors of both geographical regions to find effective ways of 
joint consultations, results of which could then be transmitted to the Joint Commission, 
referred to in Article 20 of this Agreement, for the required follow-up action; 

involve the private sectors of the Contracting Parties in activities developed within the 
framework of this Agreement. 

2.  The Contracting Parties shall facilitate within the relevant rules, access to available 

information and capital facilities in order to encourage projects and operations promoting co 
operation between firms, such as joint ventures, sub-contracting transfer of technology, 
licences, applied research and  franchises. 

ARTICLE 7 

1.  Without prejudice to their international obligations, within the scope of  their responsibilities and 
in accordance with their laws, the  Contracting Parties shall take steps to reduce differences in 
respect  of  metrology,  standardisation  and  certification  by  promoting  the  use  of  compatible 
systems  of  standards  and  certification.  To  that  end,  they  shall  encourage  the  following  in 
particular: 

establishing links between experts in order to facilitate exchanges of information and studies on 
metrology, standards, quality control and promotion and certification; 

encouraging interchange and contact between bodies and institutions specialising in these  fields 
including consultations to ensure that standards do not constitute a barrier to trade; 

promoting measures aimed at achieving mutual recognition of systems of quality certification; 

developing technical assistance in connection with metrology, standards and certification, and in 
connection with quality promotion programmes; 

providing  technical  assistance  for  institutional  development  to  upgrade  standards  and quality 
certification  organisations as well  as for the setting up of  a national  accreditation  scheme for 
conformity assessment in Sri Lanka. 

ARTICLE  8 

Intellectual Property 

1. 

In so far as their competences, regulations and policies permit, the Contracting Parties will: 

a) 

aim to improve the conditions for adequate and effective  protection and reinforcement  of 
intellectual,  industrial  and  commercial  property  rights  in  conformity  with  the  highest 
international standards; 

b) 

co-operate to secure these objectives. 

2.  The  Contracting  Parties  agree  that  they  shall  avoid  discriminatory  treatment  in  relation  to 
intellectual property rights and to  engage,  if necessary,  in consultations if intellectual property 
problems affecting trading relations arise. 

ARTICLE 9 

Science an4 Technology 

1.  The  Contracting  Parties  will,  in  accordance  with  their  mutual  interest  and  the  aims  of  their 
development strategy in this area, promote scientific and technological co-operation with a view 
to: 

a) 

fostering the transfer of know-how and stimulating innovation; 

b) 

disseminating information and expertise in science and technology; 

c) 

opening up opportunities for future economic, industrial and trade co-operation. 

2.  The Contracting Parties undertake to establish appropriate procedures to facilitate the greatest 

possible degree of participation by their scientists and research centres in co-operation 
between them. 

ARTICLE 10 

Agriculture and Fisheries 

The  Contracting  Parties  agree  to  promote  co-operation  in  agriculture,  including  horticulture  and 
food processing and in fisheries, including fish processing. To this end in a spirit of co-operation and 
goodwill and taking into account the laws of both Parties on such issues, they undertake to examine 
in particular: 

a) 

the opportunities for increasing trade in agricultural and fishery products; 

b)  health, plant and animal health and environmental measures to prevent them hindering trade; 

c) 

the linkage between agriculture and the rural environment; 

d)  agricultural and fishery research. 

ARTICLE  II 

Tourism 

The Contracting Parties agree to co-operate on tourism, through measures, which will take account 
of environmental issues and which will include interchange of information, undertaking studies, 
training and promotion of investment including joint ventures. 

10 

ARTICLE 12 

Information,  Culture and Communication 

The Contracting Parties will co-operate in the fields of information, culture and communication, both 
to  create  better  mutual  understanding  and  to  strengthen  cultural  ties  between  them,  such  as 
preparatory studies and technical assistance for the preservation of cultural heritage. 

ARTICLE 13 

Development Co-operation 

1.  The  Community  recognises  Sri  Lanka's  need  for  development  assistance  and  is  prepared  to 
strengthen its co-operation and enhance its efficiency  in order to contribute to  Sri Lanka's own 
efforts in achieving sustainable economic development and social progress of its people through 
concrete projects and programmes. Community support will be in accordance with Community 
policies, regulations and the limits of the financial means available for co-operation. 

2.  Projects  and  programmes  will  continue  to  be  targeted  towards  the  poorer  sections  of  the 
population.  Particular  attention will  be  given  to  rural  development  with  participation  of the 
groups to  be targeted  and, where appropriate,  the involvement  of  qualified  non-governmental 
organisations mutually acceptable to the Contracting Parties. Co-operation in this area will also 
cover policies on population and for the promotion of employment  in rural towns,  and of the 
role  of  women  in  development  and  training  and  institution  building  for  the  protection  and 
promotion of human  rights. 

3.  The co-operation will concentrate on mutually agreed priorities, including poverty alleviation as 

defined in Article 14, which will ensure programme efficiency and sustainability. 

Article 14 

Poverty Alleviation 

The  Contracting  Parties  undertake  to  direct  their  co-operation  activities,  wherever  possible, 
towards alleviation of poverty in Sri Lanka. In this regard the Community may support under 
development co-operation measures launched by the Government of Sri Lanka. 

11 

ARTICLE 15 

Environment 

1.  The  Contracting  Parties  recognise  that  respect  for  environmental  issues  will  form  an integral 
part of economic  and development  co-operation.  Moreover,  they underline  the  importance  of 
environmental  issues  and their will to  establish,  within the framework of this Agreement,  co 
operation in protecting  and improving the environment taking into  account  the work  done in 
international fora. 

2.  Particular attention will be paid to: 

a)  the sustainable management of natural eco-systems; 

b)  protection and conservation of natural forests; 

c)  the strengthening of forestry institutes; 

d)  the finding of practical solutions to rural  and urban energy problems; 

e)  prevention of industrial pollution; 

t)  protection of the urban environment. 

4mqEi6 

Human Resource Development 

The  Contracting  Parties  recognise  the  importance  of  human  resource  development  in  improving 
economic  development  and the  living  conditions  of  the  disadvantaged  sections  of  the population. 
They agree that human resource development  should constitute  an integral  part of both  economic 
and development co-operation. 

ARTICLE 17 

Drue Abuse Control 

The Contracting Parties affirm their resolve, in conformity with their respective competences, to 
increase the efficiency of policies and measures, to counter the supply and distribution of narcotics as 
well as preventing drug abuse, where necessary by offering technical assistance, taking into account 
work done in this connection by international bodies. 

12 

ARTICLE 18 

Régional Co-operation 

The  co-operation  between  the  Contracting  Parties  will  extend  to  action  undertaken  within  the 
context of co-operation or integration agreements with other countries in the same region, provided 
that such action is compatible with those agreements. 

Without excluding any area the following could be given particular consideration: 

a) 

technical  assistance  (services  of  outside  experts, training  of technical  staff in certain practical 
aspects of integration); 

b)  promotion of inter-regional trade; 

c) 

support for regional institutions and for joint projects and initiatives established under regional 
organisations such as the South Asian Agreement on Regional Co-operation (SAARC); 

d)  studies concerning regional links and communications. 

ARTICLE 19 

Resources for  Undertaking Co-operation 

The  Contracting  Parties  will,  within  the  limits  of  their  available financial means  and  within  the 
framework  of  their  respective  procedures  and  instruments,  make  available  funds  to  facilitate  the 
achievement of the aims set out in this Agreement especially as concerns economic co-operation. 

Concerning development  aid,  and within the framework  of  its programme  in favour of  Asian and 
Latin American (ALA) countries, the Community will support Sri Lanka's development programmes, 
through direct concessional transfers, as well as through institutional and other sources of finance in 
accordance with the rules and practices of such European Community institutions. 

ARTICLE 20 

Joint Commission 

1.  The Contracting Parties agree to maintain the Joint Commission set up under Article  8 of the 

Commercial Co-operation Agreement between the Community and Sri Lanka of 1975. 

2.  The Joint Commission is in particular required to: 

a) 

ensure the proper functioning and implementation of the Agreement; 

b)  make suitable recommendations for promoting the objectives of the Agreement; 

c) 

establish priorities in relation to the aims of the Agreement; 

13 

d) 

examine  ways  and  means  of  enhancing  the  co-operation  in the  areas  covered  under the 
provisions of this Agreement. 

3.  The Joint Commission shall be composed  of representatives of both Contracting Parties, at an 
appropriately high level.  The Joint Commission shall normally meet  every year,  alternately in 
Brussels and Colombo, on a date fixed by mutual agreement.  Extraordinary meetings may be 
convened by agreement between the Contracting Parties. 

4.  The Joint Commission may set up specialised sub-groups to assist in the performance of its tasks 
and to co-ordinate the formulation  and implementation of projects and programmes within the 
framework  of this Agreement. 

5.  The agenda for meetings of the Joint Commission shall be determined by agreement between the 

Contracting Parties. 

6.  The Contracting  Parties  agree  that it  shall be the task  of the Joint  Commission  to  ensure the 
proper functioning  of any sectoral agreements concluded  or which may be  concluded  between 
the Community and Sri Lanka. 

7.  Consultations in the fields covered by the Agreement maybe held if any problem arises in 
the intervals between the meetings of the Joint Commission.  These consultations shall be 
dealt with by the specialised sub-groups according to their responsibilities or be the subject of 
ad-hoc consultations. 

ARTICLE 21 

Future Developments 

1.  The Contracting Parties may, by mutual consent, expand this Agreement in order to enhance the 
level of co-operation and add to it 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  expanding  the  scope  of  the  co-operation,  taking  into  account  the  experience 
gained in its application. 

ARTICLE 22 

Other Agreements 

1.  Without  prejudice  to  the  relevant  provisions  of  the  Treaties  establishing  the  European 
Communities neither this Agreement nor any action taken thereunder shall in any way affect the 
powers  of  the  Member  States  of  the  Communities  to  undertake  bilateral  activities  with  Sri 
Lanka  in the framework of  economic  co-operation  or to  conclude,  where  appropriate,  new 
economic co-operation agreements with Sri Lanka. 

14 

Subject to the provisions of paragraph 1 concerning economic co-operation, the provisions of 
this Agreement  shall replace provisions  of Agreements concluded between Member  States of 
the Communities and Sri Lanka where such provisions are either incompatible with or identical 
to the provisions of this Agreement. 

ARTICLE 23 

Facilities 

To facilitate co-operation within the framework of this Agreement,  the  Sri Lankan authorities will 
grant to European Community officials and experts the normal guarantees and facilities necessary for 
the performance  of their functions.  The  detailed  provisions will  be  set  out  by way  of  a  separate 
Exchange of Letters. 

ARTICLE 24 

Territorial Application 

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

ARTICLE  25 

Annexes 

The Annexes attached to this Agreement shall form an integral part of the Agreement. 

ARTICLE 26 

Entry into force and renewal 

This Agreement shall enter into force on the first day of the month following the date on which the 
Contracting Parties have notified  each other of the completion of the procedures necessary for this 
purpose. Upon entry into force,  it shall replace the Commercial Co-operation Agreement  signed on 
July 22 1975. 

This Agreement is concluded for a period of five years.  It shall be automatically renewed on a yearly 
basis unless one of the Contracting Parties denounces it six months before its expiry date. 

15 

ARTICLE 27 

Authentic Texts 

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

In Witness whereof the undersigned Plenipotentiaries have signed this Agreement. 

For the Council of the European Union 

For the Government of Sri Lanka 

16 

ANNEX 1 

DECLARATION  OF THE COMMUNITY CONCERNING 
TARIFF ADJUSTMENTS 

The Community reaffirms its declaration annexed to the Co-operation Agreement signed on 22 July 
1975 on the Generalised Scheme of Preferences (GSP) autonomously put into force by the European 
Economic  Community  on  1 July  1971  on  the  basis  of  Resolution  21  (II)  of  the  second  United 
Nations Conference on Trade and Development held in 1968. 

The Community also undertakes to examine proposals or issues related to origin rules raised by Sri 
Lanka which aim at enabling Sri Lanka to make best use of the opportunities afforded by the system. 

The Community is also willing to organise workshops in Sri Lanka for public and private users of the 
system with a view to ensuring maximum use of it. 

17 

Annex 2 

Declarations of the Community and Sri Lanka 

1. 

In the course of the negotiations on the Co-operation Agreement between the European 
Community and Sri Lanka  on Partnership and Development, the Contracting Parties declared 
that the provisions of the Agreement should be without prejudice to their rights and obligations 
under the GATT, and that, in accordance with Article 30 (4) of the Vienna Convention on the 
Law of Treaties of 1969, any subsequent agreements which form part of the final outcome of 
the Uruguay Round of Multilateral Trade Negotiations and to which they both become parties 
shall prevail in the event of any inconsistency. 

2.  The Contracting Parties agree that for the purpose of this Agreement "intellectual, industrial and 

commercial property " includes in particular protection of copyright (including computer 
software) and related rights; trade and service marks; geographical indications, including 
indications of origin; industrial designs; patents; layout designs of integrated circuits as well as 
protection of undisclosed information and protection against unfair competition. 

8 

FINANCIAL  STATEMENT 

PART  I : FINANCIAL  IMPLICATIONS 

1•  Tit le of operat ion 

New Co-operation Agreement  with  Sri  Lanka 

2-  Budget  headings  involved 

See Annex 

3.  Legal  basis 

EC Treaty Articles  228 par. 2 and 3 first  indent, 113 and 130W. 

*'  Description of operation 

4.1  Aim 

Framework  agreement  for  commercial,  economic,  and  development 
co-operat ion 

4-2 Durât ion 

Initially  5 years, renewable each  year  thereafter 

4.3 Parties  involved 

EC and Sri Lanka  (primarily economic operators and officials) 

5.  Classification of expenditure or  revenue 

5.1. Non-compulsory expenditure. 

5.2. Differentiated appropriations. 

5.3. The projects  launched under  the Agreement  will  not engender  any 

specific revenue. 

6.  Typa of expenditure 

6.1  Subvention up  to 100% : 100% Subvention 

6.2 Community  financial  contribution  as  a  proportion  (%)  of  the 

total  cost of  the operation 

To be decided on a case by case basis 

7.  Financial  impact  on appropriations for operations 

7.1  Method of  financing  the action during  the current  year 

On basis of existing budgetary  credits 

7.2 Schedule of commitment  and payment  appropriations 

On  request,  following  approval  of  the project  by  the  Commission 
departments  and up  to an amount  not exceeding  the appropriations 
to be entered  under  the relevant  budget  headings 

8.  What  ant i-fraud  measures  are  planned  in  the  proposal  for  the 

operation? 

The  Sri  Lankan  authorities  and  the Commission  will  apply  the normal 
control  measures  in the  implementation of  the agreement 

9.  Observations 

Expenditure  derived  from  the  agreement  will  be  determined,  for 
future budgets, by  the usual  procedure 

PART 2  : ADMINISTRATIVE  EXPENDITURE 

The  proposed  action  will  not  require  an  increase  of  staff  in  the 
Commission 

- j t o-

FINANCIAL  STATEMENT 

1. Title of operation 

Co-operation  Agreement  between  the  Community  and  Sri  Lanka, 

2. Budget  headings  involved 

(a)  Budget  headings whose application  is conditional  on  the existence of 

a cooperation  agreement: 

B7-5020 Commercial  and economic cooperation agreements with third 

countr ies 

B6-8200  International  cooperation:  research  and  development 
activities under  cooperation  agreements with  third 
countr ies 

(b)  other  budget  headings  the application of which  is not  conditional  on 

the existence of a cooperation  agreement: 

B6-5611  Science and  technology  for  development 

B6-6224 Life  science and  technologies  for developing  countries 

67-3000 Financial  and  technical  cooperation with Asian  developing 

countr ies 

B7-3001  Economic cooperation with Asian developing  countries 

B7-302  Aid  towards self-sufficiency  for  refugees and  displaced 

persons 

B7-500  Promotion of Community  investment  in developing  countries in 
Asia, Latin America and  the Mediterranean by economic 
cooperation  and  trade agreements 

B7-5010 Community  contribut ion towards schemes concerning  developing 

countries carried out  by non-governmental  organizations 

B7-5040 Environment  in the developing countries 

B7-5041  Tropical  forests 

B7-5053 Human  rights and democracy  in the developing  countries 

B7-5077 Decentralized cooperation  in the developing  countries 

B7-5080 North-South  cooperation schemes  in the context  of  the 

campaign against  drug abuses 

i\ 

ISSN 0254-1475 

COM (94) 15 final 

DOCUMENTS 

EN 

11 

Catalogue number : CB-CO-94-040-EN-C 

ISBN 92-77-65056-7 

Office for Official Publications of the European Communities 
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