Proposal for a Council and Commission Decision on the conclusion of the Partnership and Cooperation Agreement between the European Communities and their Member States of the one part, and the Republic of Moldova, of the other part
Date: 1994-11-03
Institutions: European Commission
Subjects: EAEC Treaty, ECSC Treaty, Moldova, agreement (EU), cooperation agreement (EU)

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(94)  477 

f i n al 

B r u s s e l s,  0 3 . 1 1 . 1 9 94 

9 4/  0249CAVC) 

Proposal 

for a Council and Commission Decision 

on the conclusion of the Partnership and Cooperation Agreement 

between the European Communities and their Member States 

of the one part, and the Republic of Moldova, of the other part 

(presented by the Commission) 

Explanatory  memorandum 

1.  The  attached  proposal  for  a  Council  and  Commission  Decision  constitutes  the  legal 
instrument for the conclusion of the Partnership and Cooperation Agreement  between 
the  European  Communities  and  their  Member  States,  on  the  one  hand,  and  the 
Republic of Moldova, on the other. 

2.  Following  the  Council's  adoption  of  the  negotiating  directives  on  5  October  1992, 
negotiations with the Republic of Moldova were held in the course of  1994. After two 
rounds of negotiations, the Agreement was initialed on 26 July 1994. 

3.  The Agreement is a mixed Agreement covering areas for which both the Communities 
and the Member  States  are  competent,  and  is  concluded  for  an initial  period  of  ten 
years. 

It  establishes  a political  dialogue.  The Agreement  covers  also trade in goods,  labour 
conditions, establishment and operation of companies, cross-border supply of services, 
payments  and  capital,  competition,  intellectual,  industrial  and  commercial  property 
protection,  legislative  cooperation,  economic  cooperation,  cultural  cooperation  and 
financial  cooperation. 

The Agreement contains a clause which allows it to be suspended, even unilaterally, if 
it is  considered  that there has been a breach of the essential  elements underlying the 
Agreement i.e.  respect for democracy,  human rights and the principles  of the market 
economy. 

The  Agreement  sets  out  an  institutional framework for  its  implementation  with  a 

Cooperation  Council,  a  Cooperation  Committee  and  a  Parliamentary  Cooperation 

Committee. 

In  1998, 
The  Agreement  refers  to  the  prospect  of  a  future  free  trade  area. 
circumstances wil be assessed in order to see whether negotiations can begin in view of 
a free trade agreement. 

Customs cooperation is covered by a separate protocol. 

4.  The Agreement will,  as far as relations between the Community and the Republic  of 
Moldova  are  concerned,  replace  the  Agreement  on  Trade  and  Commercial  and 

4a_ 

Economie.  Cooperation  between  the  European  Economic  Community  and  the 
European Atomic Energy Community, and the USSR, signed on 18 December 1989. 

5.  The  procedures  of  the  three  Communities  (EC,  EAEC  and  ECSC)  for  signing  and 

concluding the Agreement differ. 

For the purpose of concluding the Agreement : 

the  Council  will  conclude  the  Agreement,  with  the  assent  of  the  European 
Parliament, on behalf of the European Community in accordance with Articles  113 and 
235  and in  conjuction with  Article  228  (2  and  3,  second  sub  paragraph)  of  the EC 
Treaty by adopting the attached decisions; 

the  Commission  will  conclude  the  Agreement  on  behalf  of  the  ECSC  in 
accordance with Article 95  of the ECSC, after consulting the Consultative Committee 
and with the unanimous assent of the Council; 

the Commission will conclude the Agreement (on behalf of the European Atomic 
Energy Community)  after the Council has approved it in accordance with the  second 
paragraph of Article 101 of the Euratom Treaty. 

The  conclusion  of  the  Agreement  will  have  to  be  ratified  by  all  the Member  States 
given the mixed nature of the Agreement. 

6.  In view of the above, the Commission asks the Council to adopt the annexed  decision. 

/H 

Proposal 

for a Council and Commission Decision 

on the conclusion of the Partnership and Cooperation Agreement 

between the European Communities and their Member States 

of the one part, and the Republic of Moldova, of the other part 

(presented to the Council by the Commission) 

AC 

COUNCIL AND COMMISSION  DECISION 

r 

OF.......... 

on the conclusion of the Partnership and Cooperation Agreement 

between the European Communities and their Member States 

of the one part, and the Republic of Moldova, of the other part 

(../.../ECSC, EC, EURATOM) 

THE COUNCIL OF THE EUROPEAN UNION, 

THE COMMISSION, of the European Communities 

Having regard to the Treaty establishing the European Coal and Steel Commumty, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  113  and 235  in  conjunction  with  Article  228  (2  and 3,  second  sub paragraph) 
thereof 

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

Having regard to the assent of the European Parliament, 

Whereas,  the  Partnership  and  Cooperation  Agreement  between  the  European 

Communities and their Member States, of the one part, and the Republic of Moldova,  of 

the other part, signed 

, should be approved, 

Having consulted the Consultative  Committee and with the unanimous agreement  of the 
Council, 

HAVE DECIDED AS FOLLOWS : 

JcH 

Article 1 

The  Partnership  and  Cooperation  Agreement  between  the  European  Communities  and 
their Member  States  of  the  one  part,  and the  Republic  of Moldova,  of  the  other part, 
together  with  the  Protocol,  the  exchange  of  letters  and  the  declarations  are  hereby 
approved  on  behalf  of  the  European  Commumty,  the  European  Coal  and  Steel 
Commumty,  and the European Atomic Energy Commumty. 

These texts are attached to this Decision. 

Article 2 

1.  The  position  to  be  adopted  by the  Commumty  in  the  Cooperation  Council  shall  be 
determined by the Council, on a proposal from the Commission, or, where appropriate, 
by  the  Commission,  in  each  case  in  accordance  with  the  relevant  provisions  of  the 
Treaties  establishing  the  European  Community,  the  European  Coal  and  Steel 
Commumty and the European Atomic Energy Community. 

2.  In  accordance  with  Article  72  of  the  Partnership  and  Cooperation  Agreement,  the 
President of the Council  shall preside over the Cooperation Council  and shall present 
the  Community's position.  A  representative  of the Commission  shall préside over the 
Cooperation Committee in accordance with its rules of procedure and shall present the 
Community's position. 

Article 3 

The President of the Council shall give the notification provided for in Article 87a of the 

Agreement on behalf of the European Commumty. The President of the Commission shall 

give  such  notification  on  behalf  of  the  European  Coal  and  Steel  Commumty  and  the 

European Atomic Energy Committee. 

Done at Brussels, 

^ •e 

Final act 

The plenipotentiaries of : 

THE KINGDOM OF BELGIUM, 
THE KINGDOM OF DENMARK, 
THE REPUBLIC OF GERMANY, 

THE HELLENIC REPUBLIC, 
THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 
IRELAND, 
THE ITALIAN REPUBLIC, 
THE GRAND DUCHY OF LUXEMBOURG, 
THE KINGDOM OF THE NETHERLANDS, 
THE PORTUGUESE REPUBLIC, 
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

Contracting  Parties  to  the  Treaty  establishing  the  EUROPEAN  COMMUNITY,  the 
Treaty  establishing  the  EUROPEAN  COAL  AND  STEEL  COMMUNITY,  and  the 
Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, 

hereinafter referred to as "the Member States", and of 

the  EUROPEAN  COMMUNITY,  THE  EUROPEAN  ATOMIC  ENERGY 
COMMUNITY  and the EUROPEAN  COAL AND  STEEL  COMMUNITY,  hereinafter 
referred to as "the Community", 

of the one part, and 

the plenipotentiaries of the Republic of Moldova, 

" 

.  • 

of the other part, 

meeting  .......  in the year one thousand nine hundred and ninety-four for the signature  of 
the  Partnership  and  Cooperation  Agreement  establishing  a  partnership  between  the 
European Communities  and their Members  States,  of the  one part,  and the Repubhc  of 
Moldova,  of the  other  part,  hereinafter  referred  to  as the Partnership  and  Cooperation 
Agreement, have adopted the following text : 

/I / 

the  Partnership  and  Cooperation  Agreement  and  the  Protocol  on  mutual  assistance  in 
customs matters. 

, 

The  plempotentiaries  of  the  Member  States  and  of  the  Commumty  and  the 
plenipotentiaries  of  the  Republic  of  Moldova  have  adopted  the  texts  of  the  Joint 
declarations listed below and annexed to this Final Act : 

Joint Declaration concerning Article 3bis of the Agreement 

Joint Declaration concerning Article 13 of the Agreement 

Joint Declaration concerning Article 14 of the Agreement 

Joint Declaration concerning Article 23 of the Agreement 

Joint Declaration concerning Article 24 of the Agreement 

Joint Declaration concerning the notion of "control" in Article 25(b) and Article 36 of 
the Agreement 

Joint Declaration concerning Article 38 of the Agreement 

Joint Declaration concerning Article 87a of the Agreement 

The  plenipotentiaries  of  the  Member  States  and  of  the  Commumty  and  the 
plenipotentiaries  of  the  Repubhc  of  Moldova  have  also  taken  note  of  the  following 
exchange of letters annexed to this Final Act : 

Exchange of letters between the Community and the Repubhc of Moldova in relation 
to the establishment of companies 

The  plempotentiaries  of  the  Member  States  and  of  the  Commumty  and  the 
plenipotentiaries  of  the  Repubhc  of  Moldova  have  also  taken  note  of  the  following 
exchange  of letters outside the Partnership  and Cooperation Agreement  and annexed  to 
this Final Act : 

Exchange of letters on the consequences of enlargement 

The plenipotentiaries of the Repubhc of Moldova have also taken note of the  declarations 
listed below annexed to this Final Act : 

Unilateral Declaration by the French Repubhc on PTOM territories 

10 

*i 

The plenipotentiaries of the Member States and of the Community have, also taken note of 
the  following  declaration  outside  the  Partnership  and  Cooperation  Agreement  and 
annexed to this Final Act : 

Unilateral Declaration by Moldova on the wine sector 

The plempotentiaries  of the Repubhc of  Moldova have also taken note of the  following 
declaration outside the Partnership and Cooperation Agreement and annexed to this Final 
Act: 

Unilateral Declaration by the  Community concerning technical assistance on GSP 

Done  at 

ninety four. 

in the  year  one  thousand  nine  hundred  and 

For the Council and the Commission of the European Communities. 

For the Republic of Moldova. 

11 

PARTNERSHIP  AND  COOPERATION  AGREEMENT  BETWEEN  THE  EUROPEAN 
COMMUNITIES  AND  THEIR  MEMBER  STATES,  OF  THE  ONE  PART,  AND  THE 
REPUBLIC OF MOLDOVA, OF THE OTHER PART. 

THE KINGDOM OF BELGIUM, 

THE KINGDOM OF DENMARK, 

THE FEDERAL REPUBLIC OF GERMANY, 

THE HELLENIC REPUBLIC, 

THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 

IRELAND, 

THE ITALIAN REPUBLIC, 

. 

. 

THE GRAND DUCHY OF LUXEMBOURG, 

THE KINGDOM OF THE NETHERLANDS, 

THE PORTUGUESE REPUBLIC, 

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

contracting  parties  to  the  Treaty  establishing  the  European  Economic  Community,  the  Treaty 
establishing the European Coal and Steel Community, and the Treaty establishing the European 
Atomic Energy Commumty, 

hereinafter  referred to as "Member States", and 

the  EUROPEAN  ECONOMIC  COMMUNITY,  the  EUROPEAN  ATOMIC  ENERGY 
COMMUNITY and me EUROPEAN COAL AND STEEL COMMUNITY, 

hereinafter  referred to as "the Community", 

of the one part, 

and 

THE REPUBLIC OF MOLDOVA 

of the other part, 

hereinafter referred to as "the Parties", 

V 

0. 

J?/.  / *>a 

CONSIDERING  the  links  between  the  Community,  its  Member  States  and  the  Repubhc  of 
Moldova  and the common values mat they share, 
RECOGNIZING that the Oxmnumty and the Republic of Moldova  wish to strengthen these links 
and to  establish partnership  and  cooperation which 'would strengthen  and widen the  relations 
established  in  the  past  in  particular  by  the  Agreement  between  the  European  Economic 
Commumty  and the  European  Atomic  Energy  Commumty  and the  Union  of  Soviet  Socialist 
Republics on Trade and Commercial and Economic Cooperation, signed on 18 December 1989. 

, 

CONSIDERING the commitment of the Commumty and its Member States and of the Repubhc 
of Moldova  to  strengthening  the political  and  economic  freedoms which  constitute the very 
basis of the partnership, 

CONSIDERING  the commitment of the Parties to promote international peace and security  as 
well as the peaceful  settlement of disputes and to co-operate to this end in the framework of the 
United Nations and the Conference on Security and Cooperation in Europe, 

CONSIDERING  the  firm  commitment  of  the  Commumty  and  its  Member  States  and  of  the 
Republic of Moldova to the full implementation of all principles and  provisions contained  in the 
Final Act of the Conference  on Security  and Cooperation in Europe (CSCE), the Concluding 
Documents of the Madrid  and Vienna Follow Up Meetings, the Document of the CSCE Bonn 
Conference  on Economic Cooperation,  the Charter of Paris for a New Europe and  the CSCE 
Helsinki Document 1992, "the Challenges of Change", 

RECOGNIZING in that context that support of independence, sovereignty and territorial integrity 
of the Republic of Moldova will contribute to safeguarding of peace and stability in the region of 
Central and Eastern Europe and on the European Continent as a whole, 

CONFIRMING the attachment of the Community and its Member States and of the Republic of 
Moldova  to the European Energy Charter,  and to the Declaration of the Lucera Conference  of 
April 1993, 

CONVINCED  of the paramount importance of the rule of law and. respect for  human rights, 
particularly  those  of  minorities,  the  establishment  of  a  multiparty  system  with  free  and 
democratic  elections  and economic liberalization aimed at setting up a market economy, 

RECOGNIZING  the  efforts  of  the  Repubhc  of  Moldova  to  create  political  and  economic 
systems, which respect the rule of law and human rights, including the rights of persons belonging 
to  minorities  and that the Repubhc  of Moldova operates a  multi-party system  with  free  and 
democratic elections, and provides for economic liberalisation, 

BELIEVING that full  implementation of this partnership and cooperation Agreement will  both 
depend on and contribute to continuation and accomplishment of the political, economic and legal 
reforms  in the  Republic  of  Moldova  ,  as  well  as the introduction of  the factors  necessary  for 
cooperation, notably in the light of the conclusions of the CSCE Bonn Conference, 

DESIROUS  of  encouraging  the  process  of  regional  cooperation  in the  areas  covered  by  this 
agreement with the neighbouring countries in order to promote the prosperity and stability of the 
region, 

DESIROUS  of  establishing  and  developing  regular  political  dialogue  on  bilateral  and 
international issues of mutual interest, 

TAKING  ACCOUNT  of the  Community's  willingness  to provide  for  economic  cooperation  and 
technical assistance as appropriate, 

BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between 
Moldova and  a  wider  area of  cooperation  in Europe  and  neighbouring  regions  and  Moldova's 
progressive integration into the open international trading system, 

» 

CONSIDERING  the  commitment  of  the  Parties  to  liberalise  trade,  based  on  the  principles 
contained in the General Agreement on Tariffs and Trade, 

WELCOMING  AND  RECOGNISING  the importance of Moldova's efforts,  aimed  at  transition 
of its economy away from a state trading country with centrally planned economy  into a market 
economy, 

CONSCIOUS of the need to improve conditions affecting business and investment, and conditions 
in areas such as enterprises, labour, provision of services and capital movements, 

CONVINCED that this Agreement will create a new climate for economic relations between the 
Parties  and in particular for the development  of trade and investment, which  are  essentia]  to 
economic restructuring and technological modernization, 

DESIROUS  of establishing  close cooperation  in the area  of  environment  protection  taking  into 
account the interdependence existing between the Parties in this field, 

DESIROUS of developing cultural cooperation and improving the flow of information, 

Have agreed as follows : 

Article 1 

A Partnership is hereby established between the Community and its Member States  of the  one 
part, and the Repubhc of Moldova  of the other part  The objectives of this partnership are: 

to  provide  an  appropriate framework for  the  political dialogue  between  the  Parties 
allowing the development of political relations, 
to  promote trade and investment and harmonious  economic relations between the Parties 
and so to foster their  sustainable economic development, 
to  provide  a basis for  legislative, economic, social, financial, and cultural  cooperation, 
to support efforts of the Repubhc of Moldova  to consolidate its democracy and to develop 
its economy and to complete the transition into a market economy. 

k. 

TITLE I : GENERAL PRINCIPLES 

Article 2 

Respect 
for  democracy,  principles  of  international  law,  and  human  rights  as  defined  in 
particular in the Helsinki Final Act and the Charter of Paris for a New Europe, as well  as the 
principles of  market  economy, including those enunciated in the documents of the CSCE Bonn 
internal  and external  policies  of  the  Parties  and  constitute  an 
Conference,  underpin  the 
essential element of partnership and of  this Agreement 

Article 3 

The Parties consider that it is essential for the future prosperity and stability of the region of the 
former Soviet Union that the newly independent states which have emerged from the dissolution of 
the Union of Soviet Socialist Republics, (hereinafter called "Independent States"), should maintain 
and develop cooperation among themselves in compliance with the principles of the Helsinki Final 
Act and with international law and in the spirit of good neighbourly relations, and will make every 
effort to encourage this process. 

Article 3 bis 

The  Parties  undertake  to  consider,  in  particular  when  Moldova  has  further  advanced  in  the 
process of economic reform, developments of the relevant Tides of this Agreement, in particular 
Title III and Article 37a, with a view to the establishment of a free trade area between them.  The 
Cooperation  Council  may make recommendations  on  such developments  to the  Parties.  Such 
developments  shall  only  be  put  into  effect  by  virtue  of  an  agreement  between  the  Parties  in 
accordance with their respective procedures.  The Parties shall consult each other in the year 1998 
as to whether circumstances, and in particular Moldova's advances in market oriented economic 
reforms  and  the  economic  conditions  prevailing  there  at  that  time,  allow  the  beginning  of 
negotiations on the establishment of a free trade area. 

Article 3 ter 

The  Parties  undertake to  examine together,  by mutual  consent,  amendments  which  it  may  be 
appropriate to make to any part of the Agreement in view of changes in circumstances, and in 
particular of the situation arising from the Repubhc of Moldova's accession to GATT.  The  first 
examination shall take place three years after the entry, into force of the Agreement or when the 
Republic of Moldova becomes a Contracting Party of GATT, whichever is earlier. 

TITLE II : POLITICAL DIALOGUE 

Article 4 

A  regular pohtical dialogue shall be established between the Parties which they intend to develop 
and intensify. It shall accompany and consolidate the rapprochement between the Commumty and 
the Republic of Moldova , support the political and economic changes underway in that country 
and contribute to the establishment of new forms of cooperation. The political dialogue: 

shall strengthen the links of the Republic of Moldova  with the Commumty,  and thus with 
the  community  of  democratic  nations.  The economic  convergence  achieved  through  this 
Agreement will lead to more intense political relations; 
shall  bring about an increasing convergence of positions on international  issues  of mutual 
concern, thus increasing security and stability; 
shall foresee that the Parties endeavour to co-operate on matters pertaining to the strengthening of 
stability and security in Europe, the observance of the principles of democracy, the respect and 
promotion  of  human  rights,  particularly  those  of  minorities  and  shall  hold  consultations,  if 
necessary, on the relevant matters. 

Article 5 

At ministerial level, political dialogue shall take place  within the Cooperation council established 
in Article 71 and on other occasions by mutual agreement 

Article 6 

Other procedures and mechanisms  for pohtical  dialogue shall be  set up by the Parties,  and  in 
particular in the following forms: 

regular meetings at the level of senior officials  between representatives of the Repubhc of 
Moldova, and representatives of the  Commumty; 
taking  full  advantage  of  diplomatic  channels  between  the  parties  including  appropriate 
contacts in the bilateral as well as the multilateral field, such as the United Nations,  CSCE 
meetings and elsewhere; 
exchanging  information  on matters of mutual  interest concerning  pohtical  cooperation  in 
Europe; 
any  other means,  which would-contribute to  consolidating  and  developing  this  political 
dialogue. 

Article 7 

Pohtical  dialogue  at  parliamentary  level  shall  take  place  within  the  framework  of  the 
Parliamentary Cooperation Committee established in Article 76. 

J 

TITLE III; TRADE IN GOODS 

Article 8 

» 

1.  The  Parties  shall  accord  to  one  another most-favoured-nation  treatment  in  all  areas  in 

respect of. 

customs duties and charges applied to imports and  exports, including the method  of 
collecting such duties and charges, 
provisions relating to customs clearance, transit, warehouses and transhipment, 
taxes and other internal charges of any kind applied directly or indirectly to imported 
goods, 
methods of payment and the transfer of such payments, 
the rules relating to the sale, purchase, transport, distribution, and use of goods on the 
domestic market 

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

(a)  advantages  granted  with  the  aim  of  creating  a  customs  union  or  a free-trade area  or 

pursuant to the creation of such  a union or area; 

(b)  advantages  granted  to particular countries  in  accordance with the General Agreement on 
Tariffs  and Trade and with other  international  arrangements in favour  of  developing 
countries; 

(c)  advantages accorded to adjacent countries in order to facilitate frontier traffic. 

3.  The provisions  of  paragraph  1 and Article 9  paragraph 2  shall  not  apply,  during  a 
transitional period expiring on the date of the Repubhc of Moldova  acceding to GATT  or on 
31/12/1998, whichever is earlier, to advantages defined in Annex I granted by the Repubhc of 
Moldova  to other independent states  as from the day preceding the date of entry into force of 
the Agreement 

Article 9 

• • • - •• • «•  •  '• 

/ 

1.  The  parties  agree that the  principle  of free transit  of  goods  is  an  essential  condition  of 

attaining the objectives of this Agreement 

2. 

In  this  connection  each  Party  shall  provide  for  unrestricted  transit  via  or  through  its 
territory of goods originating in the customs territory or destined for the customs territory of 
the other Party. 

3.  The  rules described in article V,  paragraphs 2,  3,  4,  and 5  of the GATT  are  applicable 

between the two Parties. 

4.  The  rules  contained  in this  article  are without prejudice  to  any  special  rules  relating  to 
specific sectors, in particular such as transport, or products agreed between the Parties. 

i, 

"•^i 

Article 10 

Without prejudice to the rights and obligations  stemming from international conventions  on the 
temporary admission of goods which bind both Parties, each Party shall furthermore grant the 
other Party  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 upon it, in conformity with its legislation. Account shall be taken of the conditions 
under which the obligations stemming from such a convention have been accepted by the Party in 
question. 

Article 11 

Goods  originating  in  Moldova  and  the  Community  respectively  shall  be  imported  into  the 
Community  and  Moldova  respectively  free  of  quantitative  restrictions  without  prejudice  to 
Articles  13,  16,  17, to the provisions  of  annex II of  this Agreement, and to the  provisions  of 
Articles 77, 81,244,249 and 280 of the Acts of Accession of Spain and Portugal to the European 
Community. 

Article 11 bis 

1.  The products of the territory of one Party imported into the territory of the other Party shall 
not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in 
excess of those applied, directly or indirectly, to like domestic products. 

2.  Moreover, these products shall be accorded treatment no less favourable than that accorded 
to  like  products  of  national  origin  in  respect  of  all  laws,  regulations  and  requirements 
affecting their internal sale, offering  for sale, purchase, transportation, distribution or use. 
The provision  of  this  paragraph  shall  not prévent the  application  of  differential  internal 
transportation charges which are based exclusively on the economic operation of the means 
of transport and not on the nationality of the product 

Article 11 ter 

The  following  Articles  of  the  GATT  shall  be  applicable  mutatis  mutandis  between  the  two 
Parties. 

(i)  Article VII, paragraphs 1,2,3,4a, 4b, 4d, 5; 

(ii)  Article VIII; 

(hi)  Article IX; 

(iv)  Article X. 

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

Article 12 

4 

Article 13 

1.  Where any product is being imported into the territory of one of the Parties in such increased 
quantities  and under such  conditions as to cause or threaten to  cause substantial  injury  to 
domestic producers of like or directly competitive products, the Community or the Repubhc 
of Moldova, whichever is concerned, may take appropriate measures in accordance with the 
following procedures and conditions. 

2.  Before taking any measures, or in cases to which paragraph  4  applies  as  soon  as  possible 
thereatter, the Community or  the Republic of Moldova  as the case may be shall supply the 
Cooperation  Committee  with  all  relevant  information  with  a  view  to  seeking  a  solution 
acceptable to both Parties. 

3. 

If,  as  a  result of the consultations, the Parties do not reach  agreement, within  30  days  of 
referral  to  the  Cooperation  Committee, on actions to  avoid  the  situation,  the  Party  which 
requested  consultations  shall  be free to  restrict  imports  of the products  concerned  to  the 
extent and for  such  time  as  is necessary to  prevent or remedy the injury,  or to  adopt 
other appropriate measures. 

4. 

In critical  circumstances where  delay  would cause damage difficult  to repair, the Parties 
may take the measures before the consultations, on the condition that consultations shall  be 
offered  immediately after taking such action. 

5. 

In the selection of measures under this article, the Contracting Parties shall give priority  to 
those which cause least disturbance to the achievement of the aims of this Agreement. 

J5"""S-

z'-f M 

Article 14 

Nothing  in this Title,  and in Article  13  in particular shall  prejudice or affect  in  any  way  the 
taking, by either Party, of anti-dumping or countervailing measures in accordance with Article VI 
of the GATT, the Agreement on implementation of Article VI of the GATT, the Agreement  on 
interpretation  and application  of  Articles VI, XVI and XXHI of the GATT or related  internal 
legislation. 

In respect of anti-dumping or subsidies investigations, each Party agrees to examine submissions 
by  the  other  Party  and  to  inform  the  interested  parties  concerned  of  the  essential  facts  and 
considerations  on the  basis  of  which  a final decision  is  to  be  made.  Before  definitive  anti 
dumping and countervailing duties are imposed, the Parties shall do the utmost to bring about a 
constructive solution to the problem. 

Article 15 

The Agreement  shall  not preclude  prohibitions  or restrictions  on imports,  exports  or  goods  in 
transit justified on grounds of public morahty,  pubhc policy or pubhc security; the protection of 
health and life of humans, animals or plants; the protection of natural resources; the protection of 
national  treasures  of  artistic,  historic  or archaeological  value  or the  protection  of  intellectual, 
industrial  and commercial  property  or  rules  relating, to  gold  and  silver.  Such  prohibitions  or 
restrictions  shall  not,  however,  constitute  a  means  of  arbitrary  discrimination  or  a  disguised 
restriction on trade between the Parties. 

Article 16 

This Title III shall not apply to trade in textile products falling under chapters 50  to  63  of  the 
Combined Nomenclature. Trade in these products  shall  be governed  by a  separate  agreement, 
initialed on 14th May 1993 and applied provisionally since 1st January 1993. 

Article 17 

Trade  in  products  covered  by  the  Treaty  establishing the European  Coal  and  Steel 
Community shall be governed by the provisions of this Title HI, with the exception of 
Article 11. 

A contact group on coal and steel matters shall be set up, comprising representatives of the 
Community on the one hand, and representatives of die Republic of Moldova on the other. 

The contact group  shall  exchange, on a regular basis, information  on all  coal  and steel 
matters of interest  to  the Parties. 

Article 18 

Trade  in  nuclear  items  will  be  conducted  in  accordance  with.the  provisions  of  the  Treat 
establishing the European Atomic Energy Community.  T.P  wta/»,)©^ 
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TITLE IV: PROVISIONS AFFECTING BUSINESS AND INVESTMENT 

Chapter I: Labour  conditions 

Article 19 

1. 

Subject  to  the  laws,  conditions  and  procedures  applicable  in  each  Member  State,  the 
Community and the Member States shall endeavour to ensure that the treatment accorded to 
Moldovan nationals legally employed in the territory  of  a Member State shall be free from 
any  discrimination based on nationality,  as  regards, working conditions,  remuneration or 
dismissal, as compared to its own nationals. 

2.  Subject  to  the  laws,  conditions  and  procedures  applicable  in  Moldova,  Moldova  shall 
endeavour to  ensure that the treatment  accorded  to  nationals  of  a  Member  State  legally 
employed  in  the  territory  of  Moldova  shall  be  free  from  any  discrimination  based  on 
nationality,  as  regards working  conditions, remuneration  or dismissal,  as  compared to  its 
own nationals. 

Article 19 bis 

Coordination of Social Security 

The Parties shall conclude agreements in order: 

(i) 

to  adopt,  subject to the  conditions  and modalities  applicable  in each  Member  State,, the 
provisions  necessary  for  the  coordination  of  Social  Security  systems  for  workers  of 
Moldovan  nationality,  legally  employed  in. the  territory  of  a  Member  State.  These 
provisions will in particular ensure that 

- 
all periods of insurance, employment or residence completed by such workers  in the 
various Member States shall be added together for the purpose of pensions in respect of old 
age, invalidity and death and for the purpose of medical care for such workers; 

any pensions in respect of old age, death, industrial accident or occupational disease, 
or  of  invahdity  resulting  therefrom,  with the. exception  of  the  special  non-contributory 
benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor 
Member state or states; 

(ii) 

to  adopt,  subject to the  conditions  and modalities  applicable  in Moldova,  the  provisions 
necessary to accord to workers who are nationals of a Member State and legally employed in 
Moldova, treatment similar to that specified in the second indent of paragraph (i). 

Article 19 ter 

The  measures  to  be  taken  in  accordance  with  Article  19  bis  shall  not  affect  any  rights  or 
obligations arising from bilateral agreements linking Moldova and the Member States where those 
agreements provide for more favourable treatment of nationals  of  Moldova  or of the  Member 
States. 

Article 20 

The  Cooperation  Council  shall  examine  which joint  efforts  can  be  made  to  control  illegal 

< irnmigration, taking into account the principle and practice of readmission. 

10 

Article 21 

The Cooperation Council shall examine which improvements can be made in working conditions 
for business people consistent with the international commitments of the Parties, including those 
set out in the document of the CSCE Bonn Conference. 

The Cooperation Council shall make recommendations for the implementation of Articles  19, 20 
and 21. 

Article 22 

Chapter  II:  Conditions  affecting  the establishment  and  operation  of  companies 

Article 23 

1.  a)  The Community and  its  Member States shall grant for the establishment  of  Moldovan 
companies  in  their  territories  treatment  no  less  favourable  than  that  accorded  to 
companies  of  any  third  country,  and  this  in  conformity  with  their  legislation  and 
regulations. 

b)  Without prejudice to the reservations listed in Annex IV, the Community and its Member 
States shall grant to subsidiaries of Moldovan companies established in their territories a 
treatment no less favourable than that granted to any Commumty companies, in respect of 
their operation, and this in conformity with their legislation and regulations. 

c)  The Community and its Member States shall grant to branches of Moldovan companies 
established  in  their  territories  a  treatment  no  less  favourable  than  that  accorded  to 
branches  of  companies  of  any third country,  in respect  of their operation,  and this  in 
conforinity with their legislation and regulations. 

2.  a)  Without prejudice to  the  reservations listed in Annex  V,  Moldova  shall  grant  for  the 
establishment of  Community  companies in its territory, a treatment no  less  favourable 
than that accorded to its own companies or to companies of any third country whichever 
is the better,  and this in conformity with its legislation and regulations. 

b)  Moldova shall grant to subsidiaries and branches of Commumty companies,  established 
in its territory, treatment no less favourable than that accorded to its own companies or 
branches  respectively  or  to  companies  or  branches  of  any  third country  respectively, 
whichever  is  the better,  in  respect of their operations, and this  in conformity  with  its 
legislation and regulations. 

3. 

The  provisions  of  paragraphs  1 and 2  cannot be  used  so  as  to  circumvent  a  Party's 
legislation  and  regulations  applicable  to  access  to  specific  sectors  or  activities  by 
subsidiaries of companies of the other Party established in the territory of such first Party. 

The treatment referred to in paragraph 1 and 2 shall benefit companies established in the 
Community and Moldova respectively at the date of entry into force of this  Agreement 
and companies established after that date once they are established. 

-> 

11 

4 

Article 24 

1.  The provisions of Article 23 shall not apply to air transport,* inland waterways transport and 

maritime transport, without prejudice to Ac provisions of Article 89. 

, 

2.  However,  in  respect  of  activities  undertaken  by  shipping  agencies  for  the  provision  of 
international maritime transport services, including intermodal activities involving a  sea leg, 
each Party shall permit to the companies of the other Party their commercial  presence in its 
territory  in  the  form  of  subsidiaries  or  branches,  under  conditions  of  establishment  and 
operation no less favourable than those accorded to its own companies or to subsidiaries  or 
branches of companies of any third country, whichever are the better. 

Such activities include, but are not limited to: 

(a)  marketing and sales  of maritime transport and related services  through direct contact  with 
customers, from quotation to invoicing, whether these services are operated or offered by the 
service  supplier itself  or by  service suppliers with which the service  seller has  established 
standing business arrangements; 

(b)  purchase and use, on their own account or on behalf of their customers (and the resale to their 
customers) of any transport and related services, including inward transport services by any 
mode, particularly inland waterways, road and rail, necessary for the supply of an integrated 
service; 

(c)  preparation of documentation concerning transport documents, customs documents, or other 

documents related to the origin and character of the goods transported; 

(d)  provision of business information of any means, including computerised information systems 
and  electronic data  interchange  (subject to  any  nondiscriminatory  restrictions  concerning 
telecommunications); 

(e)  setting up of any business arrangement, including participation in the company's stock and the 
appointment of personnel recruited locally (or, in the case of foreign personnel, subject to the 
relevant provisions of this Agreement), with any locally established shipping agency; 

(f)  acting on behalf of the companies, organising the call of the ship or taking over cargoes when 

required. 

For the purposes of this Agreement: 

Article 25 

a)  A  "Community company" or a "Moldovan company" respectively shall mean a company set 
up in accordance with the laws of a Member State or of Moldova respectively and having its 
registered office or central administration or principal place of business in the territory of the 
.  Community or Moldova respectively.  However, should the company, set up in accordance 
with the laws of a Member State or Moldova respectively, have only its registered office  in 
the territory of the Community or Moldova respectively, the company shall be considered a 
Community  or  Moldovan  company  respectively  if  its  operations  possess  a  real  and 
continuous link with the economy of one of the Member States or Moldova respectively. 
b)  "Subsidiary" of a company shall mean a company which is effectively  controlled by the first 

company. 

. c)  "Branch" of a company shall mean a place of business not having legal personality which has 
the appearance of permanency, such as the extension of a parent body, has a. management 
and is materially equipped to negotiate business with third parties so that the latter, although 
knowing that there will if necessary be a legal link with the parent body, the head office  of 

12 

which  is  abroad,  do  not  have  to  deal  directly  with  such  parent  body  but  may  transact 
business at the place of business constituting the extension. 

d)  "Establishment" shall mean the right of Community or Moldovan companies as referred to in 
Article 25 a) to take up economic activities by means of the setting up of  subsidiaries and' 
branches in Moldova or in the Community respectively. 
e)  "Operation" shall mean the pursuit of economic activities. 
f) 

"Economic activities" shall  mean activities  of  an  industrial,.commercial  and  professional 
character. 

(g)  With regard to international maritime transport, including intermodal operations involving a 
sea leg, shall also be beneficiaries of the provisions of this Chapter and Chapter III, nationals 
of  the  Member  States  or  of  Moldova  established  outside  the  Community  or  Moldova 
respectively,  and shipping  companies established  outside  the  Community  or  Moldova  and 
controlled  by  nationals  of  a  Member  State  or  Moldovan  nationals  respectively,  if  their 
vessels are registered in that Member State or in Moldova respectively in accordance with 
their respective legislations. 

Article 26 

1.  Notwithstanding any other provisions of the Agreement, a Parry shall not be prevented  from 
taking measures for prudential reasons, including for the protection of investors, depositors, 
policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or 
to ensure the integrity and stability of the financial system.  Where such measures  do not 
conform with the provisions of the Agreement, they shall not be used as a means of avoiding 
the obligations of a Party under the Agreement 

2.  Nothing  in the  Agreement  shall  be  construed  to  require  a  Party  to  disclose  information 
relating to the affairs and accounts of individual customers or any confidential  or proprietary 
information in the possession of public entities. 

Article 27 

The provisions of the present Agreement shall not prejudice the application by each Party of any 
measure necessary to prevent the circumvention of its measures concerning third country access to 
its market, through the provisions of this Agreement 

Article 28 

1.  Notwithstanding  the  provisions  of  Chapter  I  of  this  Title,  a  Community  company  or  a 
Moldovan company established in the territory of Moldova or the Community  respectively 
shall  be entitled to  employ,  or have employed  by  one of  its  subsidiaries  or  branches,  in 
accordance with the legislation in force in the host country of establishment, in the territory 
of  Moldova and the Community respectively,  employees who are nationals  of  Community . 
Member States and Moldova respectively, provided that such employees are key personnel as 
defined in paragraph 2 of this Article, and mat they are employed exclusively by companies, 
subsidiaries  or branches.  The residence and work  permits  of  such  employees  shall  only 
cover the period of such employment 

2.  Key personnel of the above mentioned companies herein referred to as  "organisations" are 
"intra-corporate transferees" as  defined  in  (c)  of this Article  in  the  following  categories, 

13 

provided that the organisation is a juridical person and that the persons concerned have been 
employed by it or have been partners in ft (other than as majority shareholders), for at least 
the year immediately preceding such movement: 

' 

(a) Persons  working  in  a  senior  position  with  an  organisation,  who  primarily  direct  the 
management of the establishment, receiving general supervision or direction principally. 
from  the board of directors or stockholders of the business or their equivalent, including: 

- directing the establishment or a department or sub-division of the establishment; 
- supervising  and .controlling the work of other supervisory,  professional  or managerial 

employees; 

- having the authority  personally to hire and fire or  recommend  hiring, firing or other 

personnel actions. 

(b) Persons working within an organisation who possess uncommon knowledge essential  to 
the  establishment's  service,  research  equipment,  techniques  or  management  The 
assessment  of  such  knowledge  may  reflect,  apart  from  knowledge  specific  to  the 
establishment, a high level of qualification referring to a type of work or trade requiring 
specific technical knowledge, including membership of an accredited profession. 

(c)An  "intra-corporate  transferee"  is  defined  as  a  natural  person  working  within  an 
organisation in the territory of a Party, and being temporarily transferred in the context of 
the  organisation 
pursuit  of  economic  activities  in  the  territory  of  the  other  Party; 
concerned must have its principal  place of business  in the territory  of a  Party  and the 
transfer  be  to  an  establishment  (branch,  subsidiary)  of  that  organisation,  effectively 
pursuing like economic activities in the territory of theMother Party. . 

Article 30 

1.  The Parties shall use their best endeavours to avoid taking any measures or actions which 
render the conditions  for the establishment and operation of each other's companies  more 
restrictive  than  the  situation  existing  on  the  day  preceding  the  date  of  signature  of  the 
Agreement 

2.  The provisions of this Article are without prejudice to those of Article 36 (a) : the situations 
covered by such Article 36 (a) shall be solely governed by its provisions to the exclusion of 
any other. 

3.  Acting  in  the  spirit  of partnership and cooperation and in light of provisions contained in 
Article  39, the  Government  of  Moldova  shall  inform the  Community  of  its  intentions  to 
submit new legislation or adopt new regulations which may  render the conditions  for  the 
establishment  or  operation  in  Moldova  of  subsidiaries  and  branches  of  Community 
companies  more  restrictive  than  the  situation  existing  on  the  day  preceding  the  date  of 
signature of the Agreement  The  Community may  request  Moldova  to  communicate  the 
drafts of such legislation or regulations and to enter into consultations about those drafts. 

4.  Where new legislation or regulations  introduced in Moldova would result in  rendering the 
conditions for establishment of Community companies into its territory and for the operation 
of  subsidiaries  and  branchest of  Community  companies  established  in  Moldova  more 
restrictive  than  the  situation  existing  on  the  day  of  signature  of  the  Agreement,  such 
respective legislation or regulations shall not apply during three years following the entry into 
force of the relevant act to those subsidiaries and branches already established in Moldova at 
the time of entry into force of the relevant act. 

14 

J 

Chapter HI:  Cross-border supply  of services  between 
the Community  and Moldqya 

Article 31 

1.  The Parties undertake in accordance with the provisions of this Chapter to take the necessary 
steps to allow progressively the cross-border supply of services by Community or Moldovan 
companies  which  are  established  in  a  Party other than that  of  the  person  for  whom  the 
services  are  intended,  taking  into  account  the  development  of  the  services  sectors  in  the 
Parties. 

2.  The Cooperation Council shall make recommendations for the implementation  of paragraph 

T of this Article. 

Article 32 

The  Parties  shall  cooperate  with  the  aim  of  developing  a  market-oriented  service  sector  in 
Moldova. 

Article 33 

1.  The  Parties  undertake  to  apply  effectively  the  principle  of  unrestricted  access  to  the . 

international maritime market and traffic on a commercial basis. 

a)  The  above  provision  does  not prejudice the  rights and  obligations  arising  from  the 
United Nations Code of Conduct for Liner Conferences, as applicable to one or other 
Contracting  Party  to  the  present Agreement  Non-conference  lines  will  be  free  to 
operate in competition with a conference as long as they adhere to the principle of fair 
competition on a commercial basis. 

b)  The Parties affirm their commitment to a freely competitive environment as being an 

essential feature of the dry and liquid bulk trade. 

2. 

In applying the principles of paragraph 1, the Parties shall: 

a) 

not apply, as from entry into force of this agreement, any cargo sharing provisions  of 
bilateral  agreements  between  any Member  State  of  the  Community  and  the  former 
Soviet Union; 

b)  not introduce cargo sharing clauses in future bilateral agreements with third countries, 
. other than in those exceptional circumstances where liner shipping companies from one 
or  other  Party  to  the  present  agreement  would  not  otherwise  have  an  effective 
opportunity to ply for trade to and from the third country concerned; 

c) 

d) 

prohibit cargo sharing arrangements in future bilateral agreements concerning dry and 
liquid bulk trade; 

abolish,  upon  entry  into  force  of  mis  Agreement,  all  unilateral  measures, 
adiTiinistrative,  technical  and  other  obstacles  which  could  have  restrictive  or 
discriminatory effects on the free supply of services in international maritime transport 

Each Party shall grant, inter alia, no less favourable treatment for the ships  operated 

15 

by nationals or companies of the other party, than that accorded to a Party's own ships 
with regard to access to ports open to international trade, the use of infrastructure  and 
auxiliary maritime services of the ports, as well as related fees and charges,  customs 
facilities and the assignment of berths and facilities for loading and unloading.  . 

Nationals  and  companies  of  the  Community  providing  international-maritime  transport 
services  shall be free to provide international sea-river services in the inland waterways  of 
Moldova and vice versa.. 

Article 33 bis 

With  a view to assuring a coordinated development of transport between the Parties, adapted  to 
their  commercial  needs,  the  conditions  of  mutual  market  access  and  provision  of  services  in 
transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with 
by specific  agreements where appropriate negotiated between the Parties as defined  in Article 85 
after entry into force of this Agreement. 

Chapter IV:  General  Provisions 

Article 34 

1.  The  provisions of this Title  shall  be applied  subject  to  limitations justified  on  grounds  of 

public policy, public security or public health. 

2.  They shall not apply to  activities which in the territory  of  either Party are connected, even 

occasionally, with the exercise of official  authority. 

Article 35 

For  the  purpose  of  this  Title  IV,  nothing  in 
this  Agreement  shall  prevent  the  Parties  from 
applying  their  laws  and'regulations  regarding  entry  and  stay,  work,  labour  conditions  and 
establishment of natural persons and supply of services, provided that - in so doing - they do not 
apply them in a manner as to nullify  or impair the benefits accruing to any Party under the terms 
of a specific  provision of the Agreement  The above provision does not prejudice the application 
of Article 34. 

Article 36 

Companies which are controlled and exclusively owned by Moldovan companies and Community 
companies jointly shall also be beneficiaries  of the provisions of  Chapters II, III  and  IV of this 
Title. 

' 

Article 36a 

Treatment granted by either Party to the other hereunder shall, as from the day one month prior to 
the  date  of  entry  into  force  of  the  relevant  obligations  of the  GATS,  in  respect  of  sectors  or 
measures covered by the GATS, in no case be more favourable than that accorded by such  first 
Party  under the provisions  of  GATS and this in respect  of each  service  sector,  sub-sector  and 
mode of supply. 

16 

/ 

Article 36b 

For the purposes of Chapters H, HI and IV of this Title, no account shall be taken of treatment 
accorded  by the Community,  its  Member  States  or Moldova pursuant to  commitments  entered 
into  in  economic integration agreements  in accordance  with the prmciples  of  Article  V  of  the 
GATS. 

Article 36c 

1.  The Most Favoured Nation treatment granted in accordance with the provisions of this Title 
shall not apply to the tax advantages which the Parties are providing or will  provide in the 
future on the basis of agreements to avoid double taxation, or other tax arrangements. 

2.  Nothing in this Title shall be construed to prevent the adoption or enforcement by the Parties 
of  any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax 
provisions of agreements to avoid double taxation and other tax arrangements, or domestic 
fiscal legislation. 

3.  Nothing  in  this  Title  shall  be  construed  to  prevent  Member  States  or  Moldova  from 
distinguishing, in the application of the relevant provisions of their fiscal legislation, between 
taxpayers who are not in identical situations, in particular as regards their place of residence. 

Article 36d 

Without prejudice to Article 28, no provision of Chapters II, in and IV hereof shall be interpreted 
as giving the right to: 

-  nationals of the Member States or of Moldova respectively to enter, or stay in, the territory of 
Moldova or the Community respectively in any capacity whatsoever, and in particular, as  a 
shareholder or partner in a company or manager or employed thereof or supplier or recipient of 
services; 

-  Community subsidiaries or branches of Moldovan companies to employ or have employed in 

the territory of the Community nationals of Moldova; 

» 

-  Moldovan subsidiaries or branches of Community companies to employ or have employed in 

the territory of Moldova nationals of the Member States; 

-  Moldovan  companies  or  Community  subsidiaries  or  branches  of  Moldovan  companies  to 
supply  Moldovan persons  to  act  for  and under the  control  of  other persons  by  temporary 
employment contracts; 

-  Community  companies  or  Moldovan  subsidiaries  or  branches  of  Community  companies  to 
supply workers who are nationals of the Member States by temporary employment contracts. 

17 

TITLE V:  CURRENT PAYMENTS AND CAPITAL 

Article 37 

1.  The  Parties undertake to  authorize in freely convertible  currency,  any  payments  on  the 
current  account  of  balance  of  payments  between  residents  of the  Community, and  of  the 
Republic of Moldova connected with the movement of goods, services  or persons  made in 
accordance with the provisions of the present Agreement. 

2.  With  regard  to transactions on the capital account of  balance of payments, from entry into 
force of the Agreement,  the free movement of capital  relating  to  direct investments made 
in  companies formed  in  accordance  with  the laws  of  the host  country  and  investments 
made in accordance  with  the  provisions  of Chapter  II of Title IV,  and  the  liquidation 
or repatriation of these investments and of any profit stemming therefrom, shall be ensured. 

3.  Without  prejudice  to  Paragraph  2  or  to  Paragraph  5,  as  from  entry  into  force  of  this 
Agreement,  no new foreign  exchange restrictions  on the movement of capital  and  current 
payments  connected  therewith  between  residents  of  the  Community  and  the  Republic  of 
the  existing  arrangements  shall  not  become  more 
Moldova  shall  be  introduced  and 
restrictive. 

4.  The  Parties shall consult  each  other with  a  view to  facilitate  the movement of  forms  of 
capital other than those referred to in paragraph 2 between the Community and the Republic 
of Moldova,  in order to promote the objectives of the present Agreement 

5.  With  reference  to the provisions of this Article, until a full  convertibility of the Moldovan 
currency within the meaning of article VUI of the articles of agreement of the  International 
Monetary  Fund  (IMF)  is  introduced,  the  Republic  of  Moldova  may  in  exceptional 
circumstances apply exchange restrictions connected with the granting or taking up of short 
and  medium-term financial credits to the  extent that  such  restrictions  are  imposed  on  the 
Republic of Moldova for  the granting  of  such  credits and  are permitted  according to  the 
Republic of Moldovas' status under the IMF. 

The  Republic of  Moldova  shall  apply these  restrictions  in  a  non-discriminatory  manner. 
They  shall be applied in such a manner as to  cause the least  possible disruption  to  this 
Agreement. The Republic of Moldova  shall inform  the  Cooperation  Council promptly of 
the introduction of such measures and of any changes therein. 

6.  Without prejudice to paragraph  1 and 2, where, in exceptional circumstances, movements of 
capital  between  the  Community  and .the  Moldova  cause,  or  threaten  to  cause,  serious 
difficulties  for the operation of exchange rate policy or monetary policy in the Community or 
Moldova, the  Community  and  Moldova, respectively,  may  take  safeguard  measures  with 
regard  to  movements  of  capital  between  the  Community  and  Moldova  for  a  period  not 
exceeding six months if such measures are strictly necessary. 

18 

v* 

TITLE VI: 

COMPETITION. INTELLECTUAL, INDUSTRIAL AND  COMMERCIAL 
PROPERTY PROTECTION AND LEGISLATIVE COOPERATION 

Article 37a 

1.  The parties agree to work to remedy or remove through the application of their competition 
laws or otherwise, restrictions on competition by enterprises or caused  by State intervention 
insofar as they may affect trade between the Community and the Moldova. 

2.  In order to attain the objectives mentioned in paragraph 1: 

2.1  The Parties  shall  ensure that  they  have  and  enforce  laws  addressing  restrictions  on 
competition by enterprises within their jurisdiction. 

2.2. The Parties shall refrain from granting State aids favouring certain undertakings or the 
production of goods other than primary products  as  defined  in the  General  Agreement  on 
Tariffs  and  Trade,  or  the  provision  of  services,  which  distort  or  threaten  to  distort 
competition insofar as they affect trade between the Community and the Moldova. 

2.3  Upon request by one Party, the other Party shall provide information on its aid schemes 
or on particular individual cases of State aid.  No information needs to be provided which is 
covered by legislative requirements of the Parties on professional or commercial secrets. 

2.4  In the case of  State monopolies  of a  commercial  character, the  Parties  declare their 
readiness, as from the fourth year from the date of entry into force of their Agreement,  to 
ensure  that  there  is  no  discrimination  between  nationals  of  the  Parties  regarding  the 
conditions under which goods are procured or marketed. 

2.5  In the case  of  public  undertakings  or undertakings to  which  Member  States  of  the 
European Union or the Moldova grant exclusive rights, the Parties declare their readiness, as 
from  the fourth year from the date of entry into force of this Agreement, to ensure that there 
is neither enacted nor maintained any measure distorting trade between the Community and 
the Moldova to an extent contrary to the Parties' respective interests.  This provision shall-
not  obstruct  the  performance,  in  law  or  fact,  of  the  particular  tasks  assigned  to  such 
undertakings. 

2.6  The period defined in paragraphs  2.4  and 2.5  may be extended  by agreement of  the 
Parties. 

3.  Consultations  may  take  place  within  the  Cooperation  Committee  at  the  request  of  the 
Community  or  Moldova  on  the  restrictions  or  distortions  of  competition  referred  to  in 
paragraphs  1 and 2 and on the enforcement of their competition rules, subject to  limitations 
imposed  by  laws  regarding disclosure of  information,  confidentiality  and business  secrecy. 
Consultations may also comprise questions on the interpretation of paragraphs 1 and 2. 

t 

- 

. 

4.  The  Parties  with  experience  in  applying  competition  rules  shall  give  full  consideration  to 
providing other Parties, upon request and within available resources, technical assistance  for 
the development and implementation of competition rules. 

5.  The above provisions in no way affect the Parties' rights to apply adequate measures, notably 
those referred to in Article 14, in order to address distortions of trade in goods or services. 

19 

./ 

Article 38 

Pursuant to  the  provisions  of  this  Article  and of  Annex  III,  Moldova  shall  continue  to 
improve the protection of intellectual, industrial and commercial property rights in order to 
provide, by the end of the fifth year after the entry into force of the Agreement for a level  of. 
protection similar to that existing in the Community, including effective means of enforcing 
such  rights. 

By  the  end  of  the  fifth  year after  entry  into  force  of the Agreement, Moldova shall 
accede to the multilateral  conventions  on intellectual, industrial  and commercial property 
rights  referred to  in Paragraph 1 of Annex III to which Member States of the  Community 
are  parties  or which  are  de  facto  applied  by  Member  States  according  to  the  relevant 
provisions contained in these conventions. 

Article 39 

1.  The  Parties recognize that an important condition for strengthening the  economic 

links 
between  Moldova and  the  Community  is the approximation  of Moldova's  existing and 
future  legislation to that of the  Commumty. Moldova shall  endeavour to  ensure that  its 
legislation will be gradually made compatible with that of the Community. 

2.  The  approximation  of laws shall extend to the following  areas in particular, customs law, 
company law, banking laWj company accounts and  taxes,  intellectual  property, protection 
of workers  at  the  workplace, financial services, rules on competition, public procurement, 
protection of health and life of humans,  animals  and plants, the environment, consumer 
protection, indirect taxation,  technical  rules and standards, nuclear laws  and regulations, 
transport. 

3.  The  Commumty  shall  provide  Moldova  with technical  assistance  as  appropriate  for  the 

implementation of these measures,  which may include i.e. : 

the exchange of experts; 

the provision of early information especially on relevant legislation; 

organization of seminars; 

training activities; 

aid.for translation of Commumty legislation in the relevant sectors. 

20 

TITLE VU: ECONOMIC COOPERATION 

Article 41 

1.  The Commumty and the Republic of Moldova  shall establish economic cooperation aimed 
at 
to  the  process  of  economic  reform  and  recovery  and  sustainable 
development  of  the  Republic  of  Moldova  .  Such  cooperation  shall  strengthen  existing 
economic links, to the benefit of both parties. 

contributing 

2. 

Policies and other measures will be designed to bring about economic and social reforms and 
restructuring of the economic system in the Republic of Moldova  and will be guided by the 
requirements  of  sustainability  and  harmonious  social  development;  they  will  also  fully 
incorporate environmental considerations. 

3.  To this end the cooperation will concentrate on industrial cooperation, investment promotion 
and protection, public procurement, standards and conformity assessment, mining  and raw 
materials, science and technology, education and training, agriculture and the agro-industrial 
sector,  energy,  environment,  transport,  telecommunications,  financial  services,  money 
laundering, monetary policy,  regional  development,  social  cooperation, tourism,  small  and 
medium sized  entreprises, information  and communication,  consumer  protection,  customs, 
statistical cooperation, economics and drugs. 

4. 

Special attention shall be devoted to measures capable of fostering cooperation  between the 
Independent States with a view to stimulating a harmonious development of the region. 

5.  Where appropriate, economic  cooperation  and  other  forms of  cooperation provided for in 
this Agreement may be supported by technical  assistance  from  the  Community,  taking 
into account  the Community's relevant Council regulation applicable to technical  assistance 
-  in the Independent States, the priorities agreed upon in the indicative programme related to 
European Community technical assistance to the Republic of Moldova  and its  established 
co-ordination and implementation procedures. 

6.  . The Cooperation Council shall make recommendations as to the development of  cooperation 

in fields identified in paragraph 3 of this Article. 

Article 42 

Industrial cooperation 

1.  Cooperation shall aim at promoting the following in particular 

the development of business links between economic operators of both sides, e.g.  in view of 
the transfer of technologies and know-how; 
Community participation in the Republic of Moldova's efforts to restructure and technically 
upgrade its industry; 
the improvement of management; 
the  development  of  appropriate  commercial  rules  and  practices,  including  product 
marketing; 
environmental protection. 
adaptation of the structure of industrial production to the standards of an advanced market 
economy; 

21 

-/' 

the conversion of the military-industrial complex 

2.  The provisions  of this article shall  not affect  the enforcement  of  Community  competition 

rules applicable to undertakings. 

, 

Article 43 

Investment promotion and protection 

1. .  Bearing in mind the respective powers and competences of the Community and the Member 
States, cooperation shall aim to establish a favourable climate for  investment, both domestic 
and foreign,  especially through better conditions for investment protection, the transfer  of 
capital and the exchange of information on investment opportunities. 

2.  The particular aims of cooperation shall be: 

-  the conclusion, where appropriate, between the Member States and the Republic of 

Moldova, of agreements for the promotion and protection of investment; 

-  the conclusion, where appropriate, between the Member States and the Republic of 

Moldova, of agreements to avoid double taxation; 

-  the creation of favourable conditions for attracting foreign investments into the 

Moldovan economy; 

-  to establish stable and adequate business law and conditions, and to exchange 
information on laws, regulations and administrative practices in the field of 
.investment; 

-  to exchange information on investment opportunities in the form of inter alia  trade 

fairs, exhibitions, trade weeks and other events. 

Article 44 

Public Procurement 

The Parties shall co-operate to develop conditions for open and competitive award of contracts for 
goods and services in particular through calls for tenders.. 

Article 45 

Cooperation in the field of standards and conformity  assessment 

1.  Cooperation between the Parties shall promote alignment with internationally agreed criteria, 
principles and guidelines followed in the field of standards and conformity assessment  The 
required actions will facilitate progress towards mutual recognition in the field of conformity 
assessment, as well as the improvement of Moldovan product quality. 

22 

2.  To this end they shall seek: 

to  promote appropriate cooperation with organisations and institutions  specialised in these 
fields; 
to  promote the  use  of  Commumty technical  regulations  and thé application  of  European 
standards and conformity assessment procedures; 
to  permit  the  sharing  of  experience  and  technical  information  in  the  field  of  quality 
management. 

Article 46 

Mining and raw materials 

1.  The  Parties shaU aim at mcreasmgmvestment and trade m 

2.  The cooperation shall focus in particular on the following areas: 

-exchange of information on the developments in the mining and non-ferrous metals 
sectors, 
the establishment of a legal framework for cooperation, 
trade matters, 
the  development  of  legislative  and  other  measures  in  the  field  of  environmental 
protection 
training 
6afety in the mining industry 

Article 47 

Cooperation in science and technology 

i.  The Parties shall promote cooperation in civil scientific research and technological 

development (RTD) on the basis of mutual benefit and, taking into account the availability of 
resources, adequate access to their respective programmes and subject to appropriate levels of 
effective protection of intellectual, industrial and commercial property rights (IPR). 

2. 

Science and technology cooperation shall cover. 

the exchange of scientific and technical information; 

- 

. joint RTD activities, 

training activities and mobility programmes for scientists, researchers and technicians 
engaged in RTD in both sides. 

Where such cooperation takes the form of activities involving education and/or training, it should 
be carried out in accordance with the provisions of article 48. 

The  Parties,  on the  basis  of  mutual  agreement, can  engage  in  other  forms  of  cooperation  in 
science and technology 

23 

*? 

In carrying out such cooperation activities, special attention shall be devoted to the redeployment 
of scientists, engineers, researchers and technicians which are  QT have been engaged  in research 
on/and production of weapons of mass destruction. 

3. 

The  Cooperation  covered  by  this  article  shall  be  implemented  according  to  specific 
arrangements to be negotiated and concluded in accordance with the procedures adopted by 
each party, and which shall set out, inter alia, appropriate IPR provisions. 

Article 48 

Education and training 

1.  The  Parties  shall  co-operate  with  the  aim  of raising the  level  of  general  education  and 
professional  qualifications  in the  Republic  of  Moldova  ,  both  in the  public  and  private 
sectors. 

2.  The cooperation shall focus in particular on the following areas: 

updating higher education and training systems in the Republic of Moldova  including 
- the system of certification  of higher educational establishments and diplomas of higher 
education; 
the training of public and private sector executives and civil servants in priority  areas 
to be determined; 
cooperation  between 
establishments and firms; 
mobility for teachers, graduates, administrators, young scientists and researchers, and 
young people; 
promoting teaching in the field of European Studies within the appropriate institutions; 
teaching Community languages; 
training of trainers. 

and  between 

establishments 

educational 

educational 

3. 

The  possible  participation  of  one  Party  in  the  respective  programmes  in  the  field  of 
education  and  training  of  the  other  Party  could  be  considered  in  accordance  with  their 
respective  procedures  and,  where  appropriate,  institutional  frameworks  and  plans  of 
cooperation will then be established building on participation of the Republic of Moldova in 
the Community's TEMPUS programme. 

Article 49 

Agriculture and the agro-industrial sector 

The purpose of cooperation in this area shall be the pursuance of agrarian reform; the 
modernisation, privatisation and restructuring of agriculture, the agro-industrial and services 
sectors in the Republic of Moldova; and the development of domestic and foreign markets for 
Moldovan products, in conditions that ensure the protection of the environment, and taking into 
account the necessity to improve security of food supply.  The Parties shall also aim at the 
gradual approximation of Moldovan standards to Community technical regulations concerning 
industrial and agricultural food products including sanitary and phytosanitary standards. 

24 

Article 50 

Energy 

1.  Cooperation shall take place within the principles of the market economy and the European 
Energy Charter, against a background of the progressive integration of the energy markets in 
Europe. 

2.  The cooperation shall include among others the following areas: 

the  environmental  impact of energy production supply  and consumption,  in  order to 
prevent or minimise the environmental damage resulting from these activities; 
improvement of the quality and security of energy supply, including diversification  of 
suppliers, in an economic and environmentally sound manner, 
formulation of energy policy; 
improvement in management and regulation of the energy sector in line with a market 
economy; 
the  introduction  of  the  range  of  institutional,  legal,  fiscal  and  other  conditions 
necessary to encourage increased energy trade and investment; 
promotion of energy saving and energy effectiveness; 
modernisation, development and diversification of energy infrastructure; 
improvement of energy technologies in supply and end use across the range of energy 
types; 
management and technical training in the energy sector. 

Article 51 

Environment 

1.  Bearing in mind the European Energy Qiarter and the Declaration of the Luzem Conference 
.1993, the Parties shall develop and strengthen their cooperation on environment and human 
health. 

2.  Cooperation shall aim at combating the deterioration of the environment and in particular : 

- effective monitoring of pollution levels and assessment of environment; system of 

information on the state of the environment; 
- combatting local, regional and transboundary air and water pollution; 
- ecological restoration; 
- sustainable, efficient and environmentally effective production and use of energy; safety 

of industrial plants; 

- classification and safe handling of chemicals; 
- water quality; 
-waste reduction, recycling and safe disposal, implementation of the Basle Convention; 
-the environmental impact of agriculture, soil erosion, and chemical pollution; 
- the protectionof forests; 
- the conservation of biodiversity, protected areas and sustainable use and management 

of biological resources; 

- land-use planning, including construction and urban planning; 

25 

•  rt 

- use of economic and fiscal instruments; 
- global climate change; 
- environmental education and awareness; 
- implementation of the Espoo Convention on Environmental Impact Assessment in a 
transboundary context. 

3. 

Cooperation shall take place particularly through : 

- planning for the handling of disasters and other emergency situations; 
- exchange of information and experts, including information and experts dealing with the 

transfer of clean technologies and the safe and environmentally sound use of 
biotechnologies; 

-joint  research activities; 
- improvement of laws towards Community standards; 
- cooperation at regional level, including cooperation within the framework of the European 

Environment Agency, and at international level; 
- development of strategies, particularly with regard to global and climatic issues and also 

m view of achieving sustainable development; 

- environmental impact studies. 

Article 52 

Transport 

1.  The Parties shall develop and strengthen their cooperation in the field of transport 

2.  This cooperation shall, inter alia, aim at restructuring and modernising transport systems and 
networks  in  the  Republic  of  Moldova  and  developing  and  ensuring,  where  appropriate, 
compatibility  of transportation  systems in the context of  achieving a  more global  transport 
system. 

26 

/; 

The cooperation shall include, inter alia : 

-  the modernising of management and operations of road transport, railways-, ports and airports 
-  modernisation and development of railways, waterways, road, port, airport and air navigation 
infrastructure including the modernisation of major routes of common interest and the trans-
European links for the above modes; 

-  promotion and development of multi-modal transport; 
-  the promotion of joint research and development programmes; 
-  preparation of the legislative and institutional framework  for policy development and 

implementation including privatisation of the transport sector. 

Article 53 

Postal services and Telecommunications 

Within  their  respective  powers  and  competences  the  Parties  shall  expand  and  strengthen 
cooperation in the following areas: 

the establishment of policies and guidelines for the development of the telecommunications 
sector and postal services; 
development of principles of a tariff policy and marketing  in telecommunications and postal 
services; 
encourage  the  development  of  projects  for  telecommunications  and  postal  services  and 
attracting investment; 
enhancing efficiency  and quality of the provision of telecommunications and postal services, 
amongst others through liberalization of activities of sub-sectors; 
advanced application of telecommunications, notably in the area of electronic funds transfer, 
management of telecommunications networks and their "optimization"; 
an appropriate regulatory basis for the provision of telecommunications and postal services 
and for the use of a radio frequency spectrum; 
training  in  the  field  of  telecommunications  and  postal  services  for  operations  in  market 
conditions. 

Article 54 

Financial Services 

Cooperation shall in particular aim at facilitating the involvement of the Republic of Moldova in 
universally accepted systems of mutual settlements.  Technical assistance shall focus on: 

the development of banking and financial services, the development of common market of 
credit  resources,  the  involvement  of  the  Republic  of  Moldova  in  universally  accepted 
systems of mutual settlements; 

the development of the fiscal system, fiscal institutions in the Republic of Moldova and the 
exchange of experience and personnel training on fiscal matters; 

the development of insurance services, which would inter alia create a favourable framework 
for the Community's companies' participation in the establishment of joint ventures in the 

. 27 

/ 

insurance sector in the Republic of Moldova, as well as the development of export credit 
insurance. 

This cooperation shall in particular contribute to foster the development of relations between the 
Republic of Moldova and the EC Member States in the financial services sectqr. 

Article 54a 

Monetary policy 

At  the  request  of  the  Moldovan  authorities, the  Community  shall  provide  technical  assistance 
designed to support the efforts  of Moldova towards the strengthening of its own monetary system, 
achieving the eventual convertibility of its currency and the gradual adjustment  of its policies to 
those of the European Monetary System. This will include informal exchange of views concerning 
the principles and the functioning of the European Monetary System. 

Article 55 

Money laundering 

1.  The Parties agree on the necessity of making efforts  and cooperating in order to prevent the 
use of their financial systems for laundering of proceeds from criminal activities in general 
and drug offences  in particular. 

2.  Cooperation  in  this  area  shall  include  administrative  and  technical  assistance  with  the 
purpose  of  establishing  suitable  standards  against  money  laundering  equivalent  to  those 
adopted  by  the  Community  and  international  fora 
in  this  field,  including  the  Financial 
Action Task Force (FATF). 

Article 56 

Regional development 

1.  The Parties shall strengthen cooperation on regional development and land-use planning. 

2.  To this end, they shall encourage exchange of  information  by  national,  regional and  local 
authorities  on  regional  and  land-use  planning  policy  and  on  methods  of  formulation  of 
regional policies with special emphasis on the development of disadvantaged areas. 

They  shall  also  encourage  direct  contacts  between  the  respective  regions  and  public 
organizations  responsible  for  regional  development  planning  with  the  aim,  inter  alia,  to 
exchange methods and ways of fostering regional development 

28 

cX 4 

Article 57 

Social cooperation 

1.  With regard to health and safety, the parties shall develop cooperation between them with the 

aim of improving the level of protection of the health and safety of workers. 

The cooperation shall include notably: 

education and training on health and safety issues with specific attention to high risk 
sectors of activity; 
development and promotion of preventive measures to combat work related diseases 
and other work related ailments; 
prevention of major accident hazards and the management of toxic chemicals; 
research to develop the knowledge base in relation to working environment and the 
health and safety of workers. 

2.  With regard to employment, the cooperation shall include notably technical assistance to: 

optimization of the labour market; 

-  modernisation of the job-finding and consulting services; 
- 
- 
- 

planning and management of the restructuring programmes; 
encouragement of local employment development; 
exchange of information on the programmes of flexible employment, including those 
stimulating self-employment and promotirit, entrepreneurship. 

3.  The Parties shall pay special attention to cooperation in the sphere of social protection which, 
inter alia, shall include cooperation in planning and implementing social protection reforms  in 
the Republic of Moldova,  . 

These reforms shall aim to develop in the Republic of Moldova methods of protection 
intrinsic to market economies and shall comprise all directions of social protection. 

Article 58 

Tourism 

The  Parties shall increase and develop cooperation between them, which shall include: 

facilitating  the  tourist  trade; 
cooperation between official  tourism bodies 
increasing  the flow of information; 
transferring know-how; 
studying  the  opportunities  for  joint  operations; 
training for tourism development; 

29 

J 

Article 59 

Small and medium-sized  enterprises 

1.  The Parties shall aim to develop and strengthen small and medium-sized enterprises  and 
their associations and cooperation between SMEs in the Community and the Republic of 
Moldova. 

2.  Cooperation shall include technical assistance, in particular in the following areas: 

the development of a legislative framework  for SMEs; 
the  development  of  an  appropriate  infrastructure  (an  agency  to  support  SMEs, 
communications, assistance to the creation of a fund for SMEs); 
the development of technology parks. 

Article 60 

Information  and communication 

The Parties shall support the development of modern methods of information  handling,  including 
the media, and stimulate the effective  mutual exchange of information.  Priority  shall be given to 
programmes aimed at providing the  general public  with basic information about the Community, 
and the Republic of Moldova including, where possible, mutual access to databases in full  respect 
of intellectual property rights. 

Article 61 

Consumer Protection 

The  Parties  will  enter  into close  cooperation  aimed  at  achieving  compatibility  between  their 
systems of consumer protection.  This cooperation may include the exchange of information  on 
legislative  work  and  institutional  reform,  the  establishment  of  permanent  systems  of  mutual 
information  on  dangerous  products,  the  improvement  of  information  provided  to  consumers 
especially  on  prices,  characteristics  of  products  and  services  offered,  the  development  of 
exchanges  between  the  consumer  interest  representatives,  increasing  the  compatibility  of 
consumer protection policies and the organization of seminars and training periods. 

Article 62 

Customs 

The aim of cooperation shall be to guarantee compliance with all the provisions  scheduled 
for  adoption  in  connection with trade  and  fair  trade and to  achieve the  approximation  of 
Moldova's customs system to that of the Community. 

30 

-A 

2.  Cooperation shall include the following in particular: 

the exchange of information 
the improvement of working methods 
the  implementation of the combined nomenclature and the single 

- 

administrative document 

the interconnection between the transit systems of the Community and 
Moldova 
the simplification  of inspections and formalities  in respect of the carriage of goods 
the support in the introduction of modern customs information  systems 
the organisation of seminars and training periods. 

3.  Without prejudice to further  cooperation foreseen  in this Agreement and in particular 
Article 65 the mutual assistance between administrative authorities in customs 
matters of the Parties shall take place in accordance with the provisions of the 
Protocol attached to this Agreement. 

Article 63 

Statistical cooperation 

Cooperation  in  this  area  shall  have as  its  aim the  development  of  an  efficient  statistical 
system to provide the  reliable  statistics  needed to  support and monitor the  process  of 
economic reform and contribute to the development of private enterprise in the Republic of 
Moldova. 

The Parties, in particular, shall cooperate in the following  fields: 
adaptation  of  Moldovan  statistical  system  to  international,  methods,  standards  and 
classification; 
exchange of statistical information; 
provision of necessary  statistical macro and microeconomic  information to  implement and 
manage economic  reforms. 

To this end the Commumty shall contribute by rendering technical assistance to the Republic 
of Moldova. 

Article 64 

Economics 

The  Parties  shall  facilitate  the  process of  economic  reform  and the  co-ordination  of  economic 
pohcies  by  co-operating  to  improve  understanding  of  the  fundamentals  of  their  respective 
economies and the design and implementation of economic policy in market economies.  To this 
end the Parties shall exchange information on macro economic performance and prospects. 

31 

The Community shall provide technical assistance so as to; 

in the  process  of  economic  reform  by  providing  expert 

assist  the  Republic  of  Moldova 
advisory and technical assistance, 
encourage cooperation among economists in order to expedite the transfer  of know-how  for 
the  drafting  of  economic  policies,  and  provide  for  wide  dissemination  of  policy-relevant 
research. 

» 

Article 65 

Drugs 

Within the framework  of their  respective powers and competences the Parties shall  cooperate in 
increasing  the  effectiveness  and  efficiency  of  policies  and  measures  to  counter  the  illicit 
production,  supply  and  traffic  of  narcotic  drugs  and  psychotropic  substances,  including  the 
prevention of diversion of precursor chemicals, as well as in promoting drug demand  prevention 
and  reduction.  The  cooperation  in  this  area  shall  be  based  on  mutual  consultation  and  close 
coordination  between  the  Parties  over the  objectives  and  measures  on the  various  drug-related 
fields. 

32 

J 

TITLE  VIII: CULTURAL  COOPERATION 

Article 66 

• 

The  Parties  undertake  to  promote,  encourage  and  facilitate  cultural  cooperation.  Where 
appropriate, the Community's cultural cooperation programmes or those of one or more  Member 
States  may  be  the  subject  of  cooperation  and  further  activities  of  mutual  interest  may  be 
developed. 

-  33 

/? 

TITLE  IX: FINANCIAL  COOPERATION 

Article 67 

* 

In  order to achieve the objectives  of this Agreement and in accordance with Articles  68, 69 and 
70  the  Republic  of  Moldova  shall  benefit  from  temporary  financial  assistance  from  the 
Community  by  way  of  technical  assistance  in  the  form  of  grants  to  accelerate  the  economic 
transformation  of the Republic of Moldova . 

Article 68 

financial  assistance  shall  be  covered  within  the  framework  of  TACIS  foreseen  in  the 

This 
Community's relevant Council Regulation. 

Article 69 

The  objectives  and the areas of the Community's  financial  assistance shall be laid  down  in an 
indicative programme reflecting established priorities to be agreed between the two Parties taking 
into  account the Republic of Moldova's needs, sectoral absorption capacities  and  progress  with 
reform.  The Parties shall inform the Cooperation Council thereof. 

Article 70 

shall  ensure  that 
In  order  to  permit  optimum  use  of  the  resources  available,  the  Parties 
Community technical assistance contributions are made in close co-ordination  with  those  from 
other sources  such  as  the  Member  States,  other  countries,  and international  organisations 
such as the International Bank for Reconstruction and Development and the European  Bank  for 
Reconstruction  and  Development,  as  well  as  the  United  Nations  Development  Programme 
(UNDP) and the IMF 

34 

TITLE  X  : INSTITUTIONAL, GENERAL  AND FINAL  PROVISIONS 

Article 71 

A  Cooperation  Council  is hereby  established- which shall  supervise the  implementation  of  this 
Agreement.  It  shall  meet  at  ministerial  level  once  a  year.  It  shall  examine  any  major  issues 
arising  within  the framework of the Agreement and any  other  bilateral or international issues of 
mutual  interest for  the  purpose  of attaining the objectives  of this Agreement.  The  Cooperation 
Council may also make appropriate recommendations, by agreement between  the  two Parties. 

Article 72 

1.  The Cooperation Council shall consist of the members of the Council of the European  Union 
and members of  the Commission of  the  European Communities, on the one hand,  and  of 
members of the  Government  of the Republic of Moldova, on the other. 

2.  The Cooperation Council shall establish its rules of procedure. 

3.  The  office  of  President  of  the  Cooperation  Council  shall  be  held  alternately  by  a 
•  representative of the Community and  by a member of the Government  of  the  Republic  of 

Moldova. 

Article 73 . 

1.  The  Cooperation  Council  shall  be  assisted  in  the  performance  of  its  duties  by  a 
Cooperation Committee composed of representatives  of  the members of the Council of the 
European Union and of members of the Commission  of  the  European Communities  on 
the  one  hand  and  of representatives  of the Government of the Republic of Moldova  on 
the other,  normally  at senior civil servant level. The office of President of the Cooperation 
Committee shall be held alternately by the Community and by the Republic of Moldova. 

In  its  rules  of  procedure  the  Cooperation  Council  shall  determine 
Cooperation  Committee,  which  shall  include  the  preparation  of  meetings 
Cooperation Council,  and how the  Committee  shall  function. 

the  duties  of  the 
of  the 

2.  The Cooperation  Council  may delegate any of  its  powers  to the Cooperation Committee, 

which will ensure continuity between meetings  of  the Cooperation Council. 

Article 74 

The Cooperation Council may decide to set up any other special committee or  body that  can 
assist  it  in carrying  out  its  duties and  shall  determine the  composition  and  duties  of  such 
committees or bodies  and  how they shall function. 

35 

Article 75 

When  examining  any  issue  arising  within me framework of  this  Agreement  in  relation  to  a 
provision referring to an article of the GATT, the Cooperation Council shall take into account to 
the greatest extent possible the interpretation that is generally given to the article of the GATT in 
question by the Contracting Parties to the GATT. 

Article 76 

A Parliamentary  Cooperation Committee is hereby established. It shall be a forum for  Members 
of the Moldovan Parliament and the European  Parliament to meet and exchange views.  It shall 
meet at intervals which it shall itself determine. 

Article 77 

1.  The  Parliamentary  Cooperation  Committee  shall  consist  of  members  of  the  European 
Parliament, on the one hand, and of members of the  Moldovan Parliament, on the other. 

2.  The Parliamentary Cooperation Committee shall establish its rules of procedure. 

3.  The  Parliamentary  Cooperation  Committee  shall  be  presided  in  turn  by  the  European 
Parliament and the Moldovan Parliament respectively, in accordance  with  the  provisions 
to be laid down  in  its  rules of procedure. 

Article 78 

The  Parliamentary  Cooperation  Committee  may  request  relevant  information  regarding  the 
implementation of this Agreement from the  Cooperation Council, which  shall  then supply the 
Committee with  the  requested  information. 

The  Parliamentary  Cooperation  Committee  shall  be  informed  of the  recommendations of  the 
Cooperation Council. 

The  Parliamentary  Cooperation  Committee  may  make  recommendations  to  the  Cooperation 
Council. 

Article 79 

1.  Within the scope of this Agreement, each Party undertakes to ensure that  natural  and  legal 
persons  of the other Party  have  access free of discrimination in relation to its own nationals 
to the competent  courts and  administrative  organs of the Parties to defend  their  individual 
rights  and  their  property rights, including  those  concerning  intellectual, industrial and 
commercial property. 

2.  Within the limits of their respective powers, the Parties: 

shall  encourage  the  adoption  of  arbitration  for  the  settlement  of  disputes  arising  out  of 
commercial  and  cooperation  transactions  concluded  by  economic  operators  of  the 
Community and those of Moldova; 

36 

,4 

agree that where a dispute is submitted to arbitration, each Party to the dispute may,  except 
where the rules of the arbitration  centre chosen by the Parties provide otherwise,  choose  its 
own  arbitrator,  irrespective  of his nationality,  and that the presiding third  arbitrator  or  the 
sole arbitrator may be a citizen of a third state; 
will recommend their economic operators to choose by mutual consent the law applicable to 
their contracts; 
shall  encourage  recourse  to  the  arbitration  rules  elaborated  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 
done at New York on 1 Oth June 195 8. 

* 

Nothing in the Agreement shall prevent a Party from taking any measures: 

Article 80 

(a)  which it considers necessary to prevent the disclosure of information  contrary to its essential 

security interests; 

(b)  which relate to  the  production  o£  or  trade  in  arms,  munitions  or  war  materials  or  to 
research, development or production indispensable for defence purposes, provided that  such 
measures do not impair the conditions of competition in respect of products not intended  for 
specifically military purposes; 

(c)  which it considers essential to its own security in the event of serious internal disturbances 
affecting the maintenance of law and order, in time of war or serious international tension 
constituting threat of war or in order to carry out obligations it has accepted for the purpose 
of maintaining peace and international security; 

(d)  which it considers necessary to respect its international obligations and commitments  in the 

control of dual use industrial goods and technology. 

Article 81 

1. 

In  the  fields  covered by this Agreement and without  prejudice  to any  special  provisions 
contained therein: 

the arrangements applied by the Republic of Moldova  in respect of the Community shall not 
give  rise  to  any  discrimination  between  the  Member  States,  their  nationals  or  their 
companies or  firms; 

the arrangements applied by the Community in respect of the Republic of Moldova  shall not 
give rise to any Discrimination between Moldovan nationals, or its companies or  firms. 

2.  The provisions of Paragraph I are without prejudice to the right of the Parties to apply the-
relevant provisions of their legislation to tax payers who are not in identical  situations  as 
regards their place of residence. 

37 

-Jt 

Article 82 

1.  Each  of  the  two  Parties  may  refer  to  the.Cooperation  Council  any  dispute  relating  to  the 

application or interpretation of this Agreement 

2.  The Cooperation Council may settle the dispute by means of a recommendation. . 

3.  In the event of it not being possible to settle the dispute in accordance with paragraph  2 of this 
Article, either Party may notify the other of the appointment of an conciliator; the other  Party 
must  then  appoint  a  second  conciliator  within  two  months.  For  the  application  of  this 
procedure,  the  Community  and  the Member  States  shall  be  deemed  to  be  one  Party  to  the 
dispute. 

The Cooperation Council shall appoint a third conciliator. 

The  conciliator's  recommendations shall  be taken  by  majority  vote.  Such  recommendations 
shall not be binding upon the Parties. 

Article 83 

The Parties agree to consult promptly through appropriate channels at the request of either party 
to discuss any matter concerning the interpretation or implementation of this Agreement and other 
relevant  aspects of the relations between the Parties. 

The provisions of this Article shall in no way affect and are without prejudice to Articles  13, 14, 
82 and 87a. 

Article 84 

t 

. 

Treatment granted to the Republic of Moldova  hereunder shall in no case be more  favourable 
than that granted by the Member States to each other. 

Article 85 

For the purposes of this Agreement, the term MPartiesM shall mean the Republic of Moldova  on 
the  one part, and the  Community, or the Member States,  or the  Community  and the  Member 
States, in accordance with their respective powers, on the other part 

Article 86 

Insofar as matters covered by this Agreement are covered by the European Energy Charter Treaty 
and Protocols thereto, such Treaty and Protocols shall upon entry into force apply to such matters 
but only to the extent that such application^ provided for therein. 

38 

Article 87 

This  Agreement  is  concluded  for  an  initial period  of  10 , years. The  Agreement  shall  be 
automatically  renewed  year by  year provided  that neither Party  gives the  other  Party  written 
notice of denunciation  of the Agreement six months before it expires. 

Article 87a 

1.  The Parties shall take any general or specific measures required to fulfil  their obligations under 
the Agreement.  They shall see to it that the objectives set out in the Agreement are attained. 

2.  If  either  Party  considers  that  the  other  Party  has  failed  to  fulfil  an  obligation  under  the 
Agreement, it may take the appropriate measures.  Before so doing, except in cases of special 
urgency, it shall  supply the Cooperation Council with all relevant information  required for  a 
thorough  examination  of  the  situation  with a  view  to  seeking  a  solution  acceptable  to  the 
Parties. 

In the  selection  of  these measures,  priority must be given to  those  which  least  disturb  the 
functioning  of  the  Agreement  These  measures  shall  be  notified  immediately  to  the 
Cooperation Council if the other  Party so requests. 

Article 88 

Annexes 
administrative authorities in customs matters shall form an integral part of this Agreement. 

I,  H,  HI,  IV,  and  V  together  with  the  Protocol  on  mutual  assistance  between 

Article 89 

This Agreement shall not, until equivalent rights for  individuals and  economic operators have 
been achieved hereunder, affect rights assured to them through existing Agreements binding one 
or more Member States on  the one hand and the Republic of Moldova  on the other except in 
areas falling within Community competence and without prejudice'to the obligations  of Member 
States resulting from this Agreement in areas felling within their competence. 

Article 90 

This Agreement shall apply, on the one hand, to the territories in which  the treaties establishing 
the  European  Economic  Community,  the  European  Atomic  Energy  Community  and  the 
European Coal  and Steel  Community  are applied and under the conditions laid  down  in those 
Treaties and, on the other hand, to the territory of the Republic of Moldova. 

39 

J 

Article  90a 

The  Secretary-General  of  the  Council  of the  European  Union  shall  be  the  depository  of  this 
Agreement. 

.' 

•

•

.

'

Article 91 

This Agreement is drawn up in one copy in the Danish, Dutch, English, French, German,  Italian, 
Spanish,  Greek,  Portuguese  and  Moldovan  languages,  each  of  these  texts  being  equally 
authentic. 

Article 92 

This Agreement will be approved by the Parties in accordance with their own procedures. 

This  Agreement  shall enter into force on the first day of  the second  month following the date on 
which the Parties notify each other that the procedures referred to in the first paragraph have been 
completed. 

Upon  its  entry  into force,  and  as far  as relations between the Republic of Moldova  and  the 
Community are concerned,  this Agreement  shall replace the Agreement between  the  European 
Economic  Community,  the  European  Atomic  Energy  Community  and  the  Union  of  Soviet 
Socialist  Republics on trade and economic and commercial  cooperation signed in Brussels on 18 
December 1989. 

Article 93 

In the event that, pending the completion of the procedures necessary for the entry  into force  of 
this Agreement,  the provisions of certain parts of this Agreement are put into effect  in  1994 by 
means  of  an  interim  agreement  between the Community  and  Moldova, the  Contracting  Parties 
agree that, in such circumstances, the term "date of entry into force of the Agreement" shall mean 
the date of entry mto force of the interim Agreement 

40 

J 
r 

LIST  OF ANNEXES 

Annex I 

Indicative  list of advantages granted by the Republic of Moldova to the other 

Indepedent States in accordance with Article 8 

Annex II 

Exceptional measures which derogate from the provisions of Article  11. 

Annex III 

IPR conventions (Article 38). 

Annex IV 
Annex V 

Community reservations in accordance with Article 23 paragraph  lb 
Moldovan Reservations in accordance with Article 23 paragraph 2a 

PROTOCOL 

Protocol on mutual assistance in customs matters. 

41 

1 

ANNEX I 

Indicative list of advantages granted by the Republic of Moldova to the Independent States in 
accordance with Article 8.3. 

1.  Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan,  Turkmenistan, 

Russia, Ukraine, Uzbekistan. 
No import duties are implemented. 
No export duties are implemented as regards goods delivered under clearing and interstate 
agreements within the volumes stipulated in these agreements. 
No VAT is applied on export and import.  No excise is applied on export. 
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, 
Russia, Ukraine, Uzbekistan - export quotas for deliveries of products under annual interstate 
trade and cooperation agreements are opened in the same way as for deliveries for state needs. 

2.  Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, 

. 

Russia, Ukraine, Uzbekistan - 
Payments could be made in national currency of these countries or any other currencies 
accepted by Moldova or these countries. 
RuBsjaaqplamentJ  mulil lu  m nlo in iuublca-or lei- 
^ 
Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Ukraine, Turkmenistan - special ^c 
system of non-commercial operations, including payments resulting from these operations. 

*2*"3T ' 

•>":* 

X<2 

3.  Armenia, Belarus, E^eata, Georgia, Kazakhstan, Litfrtfania, Ukraine, Turkmenistan -  specially 
> 

system of current payments. 

4.  Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania» Ukraine, Turkmenistan - special**^ 
j 

price system in trade with some raw materials and semi-finished products. 

5.  Armenia, Belarus, Estonia, Georgia, Kazakhstan, Litiuiama, Ukraine, Turkmenistan - special > Jr' 

conditions of transit. 

£ 

6.  Armenia, Belarus, Es^enw, Georgia, Kazakhstan, -Littaama, Ukraine, Turkmenistan - special ' J 
^*y 

conditions of customs procedures. 

>  *r 

42 

J 

ANNEX II 

Exceptional measures which derogate from the provisions of Article 11 

1.  Exceptional  measures  which  derogate from the provisions  of  Article  11 may  be  taken  by 

Moldova in the form of quantitative restrictions on a non-discriminatory basis. 

2.  Thèse  measures  may  only  concern  infant  industries,  or  certain  sectors  undergoing 
restjnictiiring  or  facing  serious  difficulties,  particularly  where  these  difficulties  produce 
important social problems. 

3.  The  total  value  of  imports  of the  products  which are  subject  to  these  measures  may  not 
exceed  15  %  of  total  imports  from  the  Community  during  the  last  year,  prior  to  the 
introduction of any quantitative restrictions for which statistics are available. 

These provisions  shall  not  be circumvented  by  increased tariff  protection  on the  imported -
goods concerned. 

4.  These  measures  may  only  be  apphed  during  a  transitional  period  ending  31st  December 
1998  unless  parties  agree  otherwise,  or  when  Moldova  becomes  a  contracting  Party  to 
GATT whichever is earlier. 

5.  Moldova shall inform the Cooperation Council of any measures it intends to take under the 
terms  of this present Annex, and, at the request of the  Community,  consultations  shall  be 
held  in  the  Cooperation  Council  on  such  measures  and  the  sectors  to  which  they  apply 
before they enter into force. 

43 

^\ 

ANNEX III 

IPR conventions (Article 3 §) 

1. 

Paragraph 2 of Article 38 concerns the following multilateral conventions: 

Berne  Convention  for  the  Protection  of  Literary  and  Artistic  Works  (Paris  Act, 
1971); 

International  Convention 
for 
Phonograms and Broadcasting Organizations  (Rome, 1961); 

the  Protection  of  Performers,  Producers 

of 

Protocol 
Registration of Marks  (Madrid, 1989); 

relating 

to 

the  Madrid  Agreement 

conœming  the  International 

Nice Agreement conœrning the International  Classification  of Goods and  Services  for 
the purposes of the Registration of Marks (Geneva 1977, amended 1979); 

the  1991 Act of the International Convention for the Protection of New 
Varieties of Plants (UPOV). 

2.  The  Cooperation  Council may recommend that paragraph  2  of Article  38  shall apply  to 
If  problems  in  the  area  of  intellectual,  industrial,  and 
other  multilateral  conventions. 
commercial property affectmg trading conditions were to occur, urgent  consultation shall be 
undertaken,  at  the  request  of  either  Party,  with  a  view to  reaching  mutually  satisfactory 
solutions. 

3.  The Parties confirm the importance they attach to the obligations arising form the following 

multilateral conventions: 

Budapest Treaty on the International  Recognition of the Deposit  of  Micro-organisms 
for the purposes of Patent Procedures  (1977, modified in 1980); 
Paris  Convention for the Protection of Industrial Property  (Stockholm Act,  1967  and 
amended in 1979); 
Madrid  Agreement  concerning  the International  Registration  of  Marks  (Stockholm 
Act, 1967, and amended in 1979); 
Patent Cooperation Treaty (Washington 1970, amended and modified in 1984); 

4. 

From the entry into force of this Agreement Moldova shall grant to Community  companies 
and  nationals,  in  respect  of  the  recognition  and  protection  of  intellectual,  industrial  and 
commercial  property,  treatment  no  less  favourable  than  that  granted  by  it  to  any  third 
country under bilateral agreements. 

5.  The  provisions  of paragraph  4  shall not apply to  advantages  granted  by  Moldova  to  any 
third  country  on  an  effective  reciprocal  basis  or  to  advantages  granted  by  Moldova  to 
another country of the former USSR. 

44 

Jf 

ANNEX IV 

Community reservations in accordance with Article 23 paragraph  lb 

Mining 

In some Member States, a concession may be required for ruining and mineral rights for non-EC 
controlled companies. 

v 

Fishing 

Access to and use of the biological resources and fishing grounds situated in the maritime waters 
coming under the sovereignty or within the jurisdiction of Member States of the Community is 
restricted to fishing vessels flying the flag of a Community Member State and registered in 
Commumty territory unless otherwise provided for. 

Real estate purchase 

In some Member States, the purchase of real estate by non-EC companies is subject to 
restrictions. 

Audiovisual services including radio 

National treatment concerning production and distribution, including broadcasting and other 
forms of transmission to the public, may be reserved to audiovisual works meeting certain origin 
criteria. 

Telecommunications services including mobile and satellite services 

Reserved services 

hi some Member States market access concerning complementary services and infrastructures  is 
restricted. 

Professional services 

Services reserved to natural persons nationals of Member States.  Under certain conditions those 
persons may create compames. 

i. 

Agriculture 

In some Member States national treatment is no apphcable to non-EC controlled companies which 
wish to undertake an agricultural enterprise.  The acquisition of vineyards by non-EC controlled 
compames is subject to notification, or, as necessary, authorisation. 

News agency services 

In some Member States limitations of foreign participation in publishing companies and 
broadcasting companies. 

45 

I 

ANNEX V 

Moldovan reservations to national treatment 

Some aspects of the privatisation process are subject to conditions or restrictions. 

Acquisition and sale of agriculture lands and forests 

Organisation of gambling, betting, lotteries and other similar activities 

Banking services: 
The minimum capital requirement for a Moldovan subsidiary of a company from third countries 
amounts to two million US dollars. 

46 

PROTOCOL 

ON MUTUAL ASSISTANCE 

BETWEEN ADMINISTRATIVE  AUTHORITIES 

IN CUSTOMS MATTERS 

47 

J 

Article 1 

Definitions 

For the purposes of this Protocol : 

a)  "customs  legislation"  shall  mean  provisions  applicable  in  the  territories  of  thé  Parties amr-
goveming the import, export, transit of goods and their placing under any customs  procedure, 
including measures of prohibition, restriction and control and adopted by the said Parties; 

b)  "customs duties" shall mean all duties, taxes, fees or any other charges  which  are  levied  and 
collected in the territories of the Parties, in application of customs legislation, but not including 
fees and charges which are limited in amount to the approximate costs of services rendered; 

c)  "applicant  authority",  shall  mean  a  competent  administrative  authority  which  has  been 
appointed by a Party for this purpose and which makes a request for assistance  in  customs 
matters; 

d)  "requested  authority",  shall  mean  a  competent  administrative  authority  which  has  been 
appointed by a Party for this purpose and which receives a request for  assistance in  customs 
matters; 

e)  "contravention", shall mean any violation of the customs legislation as well as any attempted 

violation of such legislation. 

Article 2 

Scope 

The  Parties shall  assist each other, within their competences,  in the manner  and under the 
conditions laid down in this Protocol, in ensuring that customs legislation is correctly apphed, 
in particular by the prevention, detection and investigation of contraventions of this legislation. 

Assistance, in customs matters, as provided for in this Protocol, applies to any administrative 
authority  of the Parties which is competent for the application of this Protocol. It shall  not 
prejudice  the  rules  governing  mutual  assistance  in  criminal  matters.  Nor  shall  it  cover 
information  obtained under powers exercised at the request of the judicial  authority,  unless 
those authorities so agree. 

Article 3 

Assistance on request 

1.  At  the  request  of  the  applicant  authority,  the  requested  authority  shall  furnish  it  with  all 
relevant  information  to  enable  it  to  ensure  that  customs  legislation  is  correctly  apphed, 
including  information  regarding  operations  noted  or  planned  which  contravene  or  would 
contravene such legislation. 

48 

-3L 

2.  At the request of the applicant authority, the requested authority shall  inform  it whether goods 
exported from the territory of one of the Parties have been properly imported into the territory 
of the other Party, specifying, where appropriate, the customs procedure applied to the goods. 

3.  At the request of the applicant authority, the requested authority shall take the necessary steps 

to ensure that a surveillance is kept on : 

(a)  natural or legal persons of whom there are reasonable grounds for believing that they are 

contravening or have contravened customs legislation; 

(b)  movements  of  goods  notified  as  possibly  giving  rise  to  substantial  contraventions  of 

customs legislation;  . 

(c)  means of transport  for  which there are reasonable grounds  for  believing  that  they  have 

been, are or may be used in the  contravening of customs legislation. 

CcC~ 

'  C 

^/o>v 

-ÎHÔV*- 

ivvfro 

&JLJ 

'U-cPi^t>v4&_ 

sy**~~*^ 

Parv. 

- O p r t o r ^ j fr 

CueJ-

Spontaneous  assistance 

J7K,>/- 

ifUA-x'v 

IJO^~.  f\îÀr-&^CM^ j 

L 
ccordance  with  their  laws,  rules  and  other  legal  <4 
'that to be necessary for the correct application of 

J(. 
\ 

customs legislation, particularly when they obtam information pertaining to : 

-  operations  which  have  contravened,  contravene  or  would  contravene  such  legislation  and 

which may be of interest to other Parties; 

-  new means or methods employed m realizing such operations; 

-  goods known to be subject to substantial contravention of customs legislation. 

Article 5 

Delivery/Notification 

At the  request of the  applicant authority, the requested authority  shall  in  accordance  with  its 
legislation take all necessary measures 

in order to deliver all documents, 
to notify all decisions, 

falling within the scope of this Protocol to an addressee, residing or established in its territory. In 
such a case Article 6, point 3 is applicable. 

49 

. 

/ A 

Article 6 

Form and substance of requests for assistance 

1.  Requests  pursuant to  this  Protocol  shall  be made in writing.  Documents  necessary  for  the 
execution of such requests shall accompany the request When required because of the urgency 
of the situation, oral requests may be accepted, but must be confirmed in writing immediately. 

2.  Requests pursuant to paragraph  1 of this Article shall include the following information  : 

the applicant authority making the request; 

(a) 
(b)  the measure requested; 
(c)  the object of and the reason for the request; 
(d)  the laws, rules and other legal elements involved; 
(e) 

indications as exact and comprehensive as possible on the natural or legal persons 
being the target of the investigations; 

(f)  a summary of the relevant facts and of the enquiries already carried out, except in 

cases provided for in Article 5. 

3.  Requests shall be submitted in an official  language of the requested authority or in a language 

acceptable to such authority. 

4.  If  a  request  does  not  meet the  formal  requirements,  its  correction, or  completion  may  be 

demanded ; the ordering of precautionary measures may, however, take place. 

Article 7 

Execution of requests 

1.  In order to comply with a request for assistance, the requested authority or, when the latter can 
not act on its own, the administrative department to which the request has been addressed by 
this authority, shall proceed, within its competence and available resources, as though it were 
acting  on  its  own  account  or  at  the  request  of  other  authorities  of  that  same  Party,  by 
supplying  information  already  possessed,  by  carrying  out  appropriate  enquiries  or  by 
arranging for them to be carried out 

2.  Requests for assistance will  be executed in accordance with the laws,  rules  and other legal 

instruments of the requested Party. 

3.  Duly authorised officials  of a Party may, with the agreement of the other Party involved and 
within the conditions laid down by the latter, obtain from the offices of the requested authority 
or other authority for which the requested authority is responsible, information relating to the 
'  contravention of customs legislation which the applicant authority needs for the purposes of 

this Protocol. 

4.  Officials  of  a  Party  may,  with the  agreement  of  the  other  Party  involved  and  within  the 
conditions laid down by the latter, be present at enquiries carried out in the latter's territory. 

50, 

;> 

J 

Article 8 

Form in which information is to be communicated  * 

t 

1.  The requested authority shall communicate results of enquiries to the applicant authority in the 

form of documents certified copies of documents, reports and the like. 

2.  The  documents  provided  for  in paragraph  1 may  be  replaced  by  computerized  information 

produced in any form for the same purpose. 

Article 9 

Exceptions to the obligation to provide assistance 

1.  The  Parties  may refuse  to  give  assistance  as  provided  for  in this Protocol,  where  to  do  so 

would : 

(a)  be likely to prejudice sovereignty, public policy, security or other essential • 

interests; or 

(b)  involve currency or tax regulations other than regulations concerning customs 

duties; or 

(c)  violate an industrial, commercial or professional secret 

2.  Where the apphcant authority asks for assistance which it would itself be unable to provide if 
so asked, it shall draw attention to that fact in its request It shall then be left to the requested 
authority to decide how to respond to such a request. 

3.  If assistance is withheld or denied, the decision and the reasons therefore must be notified to 

the applicant authority without delay. 

Article 10 

Obligation to observe confidentiality 

1.  Any  information  communicated  in whatsoever form pursuant to this Protocol  shall  be  of  a 
confidential nature. It shall be covered by the obligation of official  secrecy and shall enjoy the 
protection extended to like information under the relevant laws of the Party which received it 
and the corresponding provisions applying to the. Commumty authorities. 

2.  Nominative data shall not be transmitted whenever there are reasonable grounds to believe that 
the transfer  or the  use  made  of the  date transmitted  would  be  contrary  to  the  basic  legal 
principles of one of the Parties, and, in particular, if the person concerned would suffer undue 
disadvantages. Upon request, the receiving Party shall inform the furnishing  Party of the use 
made of the information supplied and of the results achieved. 

3.  Nominative data may only be transmitted to customs authorities and, in the case of need for 
prosecution  purposes,  to  public  prosecution  and  judicial  authorities.  Other  persons  or 
authorities may obtain such information only upon previous  authorisation  by the  furnishing 
authority. 

si 

-*-v 

4.  The furnishing  Party shall verify the accuracy of the information  to be transferred.  Whenever 
it  appears that the information  supplied was inaccurate or to be deleted, the  receiving  Party 
shall  be  notified  without  delay.  The  latter  shall  be  obliged  to  carry  out  the  correction  or 
deletion. 

5.  Without  prejudice  to  cases  of  prevailing  public  interest, the  person  concerned  may  obtain, 

upon request, information on the data stores and the purpose of this storage. 

Article 11 

Use of information 

1.  Information  obtained shall be used solely for the purposes  of this Protocol  and  may  be  used 
within each Party for  other purposes only with the prior written consent of the admiriistrative 
authority which furnished  the information and shall be subject to any restrictions laid down by 
that authority. 

2.  Paragraph  1  shall  not  impede  the  use  of  information  in  any  judicial  or  admiiustrative 

proceedings subsequently instituted for failure to comply with customs legislation. 

3.  The Parties may, in their records of evidence, reports and testimonies and in proceedings  and 
charges  brought  before  the  courts,  use  as  evidence  information  obtained  and  documents 
consulted in accordance with the provisions of this Protocol. 

Article 12 

Experts and witnesses 

An  official  of a  requested  authority  may be authorized  to  appear, within  the  limitations  of  the 
authorization granted, as expert or witness injudicial or administrative proceedings regarding the 
matters covered  by this Protocol  in the jurisdiction  of  another Party,  and produce such  objects, 
documents or authenticated copies thereof^ as may be needed for the proceedings. The request  for 
an  appearance  must  indicate  specifically  on  what  matters  and  by  virtue  of  what  title  or 
qualification the official will be questioned. 

Article 13 

Assistance expenses 

The  Parties  shall  waive  all  claims  on  each  other  for  the  reimbursement  of  expenses  incurred 
pursuant  to this  Protocol,  except, as appropriate, for  expenses to  experts  and  witnesses  and  to 
interpreters and translators who are not dependent upon public services. 

52, 

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v-Pt 

Article 14 

Implementation 

1.  The  management  of  this  Protocol  shall  be  entrusted  to  the  central  customs  authorities  of 
Moldova  on  the  one  hand  and  the  competent  services  of  the  Commission  of  the  European 
Communities  and,  where  appropriate, the  customs  authorities  of  the  Member  States  of  the 
European  Union  on the  other. They shall decide on all practical  measures  and  arrangements 
necessary  for  its  application,  taking  into  consideration  rules  in  the  field  of  data  protection. 
They  may  recommend  to the  competent bodies  amendments  which they  consider  be made to 
this Protocol. 

2.  The Parties shall consult each other and subsequently keep each other informed  of the detailed 
rules of implementation which are adopted in accordance with the provisions of this Protocol. 

Article 15 

Complementarity 

1.  This  Protocol shall complement and not impede the application of any agreements  on mutual 
assistance  which  have  been  concluded  or  may  be  concluded  between  individual  or  several 
Member  States  of the  European  Union and  Moldova. Nor  shall  it  preclude  more  extensive 
raiQtnmn.pnnner^^go  granted  iinrter gnrh agreement»; 

^ff 

;. 

X- 

JZ 

2.  Without  prejudice  to  Article  11,  these  agreements  do  not  prejudice  Community  provisions 
governing  the  communication  between  the  competent  services  of  the  Commission  and  the 
customs  authorities  of  the  Member  States  of  any  information  obtained  in  customs  matters 
which could be of Community interest 

53 

/> 

JOINT DECLARATION CONCERNING ARTICLE 3 bis 

It is the understanding of the Parties that should they proceed to the negotiation of a Free Trade 
Area in accordance with article 3 bis, such negotiations should cover all products traded between 
the Parties. 

J* 

• 

• 

54 

JOINT DECLARATION CONCERNING ARTICLE 13 

The Community and the Repubhc of Moldova declare that the text of the safeguard clause does 
not grant GATT safeguard treatment 

55 

A 

JOINT DECLARATION CONCERNING ARTICLE 14 

It is understood that the provisions of Article  14 are neither intended to, nor shall slow down, 
hinder or impede the procedures provided for in the respective legislations of the Parties regarding 
anti-dumping and subsidies investigations. 

56 

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JOINT DECLARATION CONCERNING A R ^ O y i;  23 

Without prejudice to the reservations listed in Annexes IV and V aaè tq the provisions of Articles 
36a and 36d, the Parties agree that the words "in conformity v/ith t hw legislation and regulations" 
mentioned  in  paragraphs  1  and  2  of  Article  23  mean  that  each;Party  may  regulate  the 
establishment  and operation of companies, on its territory, provided that these  regulations  do not 
create for the establishment and operations of companies of l|ie |l|«^Party  any new  reservations 
resulting in a less favourable treatment than that accorded to th<*r own: companies or to companies 
or branches or subsidiaries of companies of any third country.  *  ù 

:  k-h"r'"-  ' . * • ' •" 

&•*''  '3-

ê. 

h 

fi 
V 

F  ;.4 

-

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•  4  ~v 

• •-, *k  ',.  4 

57 

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*• '4- 

,  „,.  ** 

7 

JOINT DECLARATION CONCERNING ARTICLE 24 

Commercial  presence  of  a  Party's  internal  waterways  transport  companies  in  the  other  Party's 
territory  shall  be  governed  in  accordance  with  legislation  applicable  within  Member  States  or 
Moldova, until specific more favourable  provisions governing such commercial  presence  can  be 
agreed upon,-and if such presence is not governed by other legislative instruments  binding on the 
Parties. 

It  is  understood  that  a  commercial  presence  shall take the  form  of  subsidiaries  or  branches  as 
defined in Article  25. 

58 

// 

JOINT DECLARATION CONCERNING THE NOTION OF "CONTROL" 
IN ARTICLE 25(b) AND ARTICLE 36 

1.  The Parties confirm their mutual understanding that the question of control shall depend on 

the factual  circumstances of the particular case. 

2.  A company shall, for example, be considered as being "controlled" by another company, and 

thus a subsidiary of such other company if : 

the other company holds directly or indirectly a majority of the voting rights, or 

the other company has the right to appoint or dismiss a majority of the administrative 
organ, of the management organ or of the supervisory organ and is at the same time a 
shareholder or member of the subsidiary. 

3.  Both Parties consider the criteria in paragraph 2 to be non-exhaustive. 

tO* 

^i 

59 

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•• JOINT DECLARATION CONCERNING ARTICLE 38 

» 

* 

» 

The Parties agree that for tW"purpose of the Agreement, intellectual, industrial and commercial 
property  includes in  partifcuia* copyright,  including  the  copyright  in  computer  programs,  and 
neighbouring rights, the rights relating to patents,  industrial  designs,  geographical  indications, 
including appellations of orçjm, trademarks and service marks, topographies of integrated circuits 
as  well  as  protection against  unfair  competition  as  referred  to  in Article  10  bis  of  the  Paris 
Convention for the protection df Industrial Property and protection of undisclosed information on 
know-how. 

*  t  -** '  ' 

' 

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îM 

>,-_  .) 

*'  V  * 
I*  I 
*  * 

60 

•  „ *  f 

y 

JOINT DÉCLARATION CONCERNING ARTICLE 87a 

The Parties agree, for the purpose of its correct interpretation and its practical  apphcation, that 
the  term  "cases  of  special  urgency" included  in  Article  87a  of  the Agreement  mean  cases  of 
material  breach of the Agreement by one of the Parties.  A  material  breach of  the Agreement 
consists in 

a) 

repudiation of the Agreement not sanctioned by the general rules of international law 

or 

b) 

violation of the essential elements of the Agreement set out in Article 2. 

61 

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UNILATERAL  DECLARATION BY THE FRENCH  REPUBLIC 

"La République française  note que l'accord  de partenariat  et coopération  avec  la  République  de 
Moldavie  ne  s'applique  par  aux  pays  et  territoires  d'Outre-mer  associés  à  la  Communauté 
européenne en vertu du traité instituant la Communauté Européenne." 

62 

/•' 

EXCHANGE OF LETTERS 
BETWEEN THE COMMUNITY AND THE REPUBLIC OF MOLDOVA 
IN RELATION TO THE ESTABLISHMENT OF COMPANIES 

63 

J 

A.  Letter from  Moldova 

Dear Sir, 

I refer to the Partnership and Cooperation Agreement initialled on 

1994. 

As I underlined during the negotiations, the Republic of Moldova grants to Community  companies 
establishing and operating in the Republic of Moldova in certain respects a privileged treatment.  I 
explained  that  this  reflects  the  Moldovan  policy to  promote  by  all  means  the  establisliment  of 
Community companies in the Republic of Moldova. 

With this in mind, it is my understanding that during the period between the date of initialling of 
this agreement and the entry into force of the relevant articles on establishment of compimies, the 
Republic of Moldova  shall not adopt measures or regulations which would  introduce  or  worsen 
discrimination  of Community companies vis-à-vis Moldovan companies or  companies  from  any 
third country as compared to the situation existing on the date of initialling of this agreement. 

I would be obliged if you could acknowledge receipt of this letter. 

For the Government of the Republic of Moldova 

64 

•A 

B.  Letter from  the  Community 

Dear Sir, 

Thank you for letter of today's date, which reads as follows : 

"Dear Sir, 

I refer to the Partnership and Cooperation Agreement initialled on 

1994. 

As I underlined during the negotiations, the Republic of Moldova grants to Commumty compames 
establishing and operating in the Republic of Moldova in certain respects a privileged treatment.  I 
explained that this reflects  the Moldovan pohcy to promote by  all  means the establishment  of 
Community companies in the Republic of Moldova. 

With this in mind, it is my understanding that during the period between the date of initialling of 
this agreement and the entry, into force of the relevant articles on establishment of companies, the 
Republic of Moldova shall not adopt measures or regulations which would introduce or worsen 
discrimination of  Commumty companies vis-à-vis Moldovan companies  or compames from any 
third country as compared to the situation existing on the date of initialling of this agreement. 

I would be obliged if you could acknowledge receipt of this letter." 

I can acknowledge receipt of this letter. 

Please accept, Sir, the assurance of my highest consideration. 

On behalf of the European Communities 

65 

Ji 

Outside the Agreement: 

Exchange of letters on the consequences of enlargement 

Letter from the Community 

Dear Sir, I refer to the Agreement on Partnership and Cooperation signed today and confirm that 
if any amendment to this agreement might become necessary as a result of an enlargement of the 
Community,  this  would  become  the  subject  of  consultations  between  the  Parties  pursuant  to 
Article 71 and in this context account would be taken, to the extent possible, of the character of 
bilateral trade and economic relations between Moldova and acceding States. 

I would be obliged if you could confirm the agreement of Moldova to the content of this letter. 

66 

Outside the agreement 

Unilateral Declaration bv Moldova 

Given the importance of the wine sector for the Moldovan economy, Moldova expresses its wish 

^ V ?- 

fc>  negotiate with the Community a bilateral agreement/ on trade in wine. 

/ A 

67 

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Outside the agreement 

Declaration bv the Community 

The  Community  undertakes  to  provide technical  assistance  in  the  form  of  seminars  oifother  ~&4 
j> 
appropriate means in order to help Moldovan authorities and economic operators to benefit in full 
Jj 
from the advantages agreed under the Community GSP as currently applied to Moldova. 

cT< 

68 

ISSN 0254-1475 

COM (94) 477 final 

DOCUMENTS 

EN 

11 02 

Catalogue number : CB-CO-94-514-EN-C 

ISBN 92-77-81765-8 

Office for Official Publications of the European Communities 

L-2985 Luxembourg