Proposal for a Council Decision concerning the provisional application of certain provisions of the interregional framework cooperation agreement between the European Community and its Member States, of the one part, and the Southern Cone Common Market and its member countries, of the other part
Date: 1995-10-25
Institutions: European Commission
Subjects: Mercosur, cooperation agreement (EU), economic cooperation, framework agreement, liberalisation of trade, trade cooperation

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

3S3W am* 

Brussels,  23.10.1995 
COM(95)504  final 

95/  0261  (CNS) 
95/  0262  (ACQ 

Proposal  for a 

COUNCIL  DECISION 

concerning the conclusion of 
the interregional framework cooperation agreement 
between the European Community and its Member States, of the one part, 
and the Southern Cone Common Market and its member countries, of the other part 

Proposal  for a 

COUNCIL  DECISION 

concerning the provisional application of certain provisions 
of the interregional framework cooperation agreement 
between the European Community and its Member States, of the one part, 
and the Southern Cone Common Market and its member countries, of the other part 

(presented by the Commission) 

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EXPLANATORY  MEMORANDUM 

1. 
By means of a decision of  12 June  1995, the Council authorized the Commission 
to  open  negotiations  with  Mercosur  for  an  interregional  framework  cooperation 
agreement and adopted negotiating directives to that end. 

2. 
Two negotiating sessions took place, the first in Brussels on 14 and 15 September 
1995 and the second  in Montevideo on 28 and 29 September. The second session ended 
with the unanimous approval of the Member States' representatives in attendance, and the 
initialling  of  the  text  of  the  Agreement.  The  Commission  immediately  notified  the 
Council (general affairs) which met in Strasbourg on 2 October. 

3. 
When  the  negotiating  directives  were  adopted,  the  Council  stipulated  that  it 
reserved  the  right  to  give  its  decision  on  the  legal  status  of  the, Agreement  once  the 
negotiations  were  completed.  This  issue  was  nevertheless  discussed  with  Mercosur's 
negotiators  during  the  negotiations  themselves,  and  in  consultation  with  the  special 
committee  appointed  by  the  Council  to  assist  it  in  the  negotiations,  the  Commission 
continued  the  latter  treating  the  Agreement  as  a  "mixed  type"  agreement  (one  which 
combines areas of Community and Member-State responsibility). The Agreement is now 
being submitted to the Council to be signed and concluded. Signing will be possible once 
the Ouro Preto Protocol,  which confers  international  legal personality  on Mercosur, has 
entered into force. 

. 

4. 
Also  in  consultation  with  the  special  committee  appointed  by  the  Council,  the 
Commission  issued  a joint  declaration  when  the Agreement  was  initialled,  to  state that 
the negotiators had agreed to establish procedures to bring about the early application of 
the Agreement  (and particularly  the provisions  dealing  with Community  competence  in 
connection  with  the  trade  cooperation  referred  to  in  Title  II,  plus  the  institutional 
framework for such cooperation). 

The Commission is also proposing to the Council that it approve and sign an exchange of 
letters regarding provisional application of these provisions of the Agreement. 

The  Commission  considers  that  the  Agreement  initialled  is  in  line  with  the 

5. 
negotiating directives adopted by the Council. 

6. 
In order to enable the interregional framework cooperation agreement between the 
European Community and its Member States and Mercosur and its member countries to 
be signed and concluded, the Commission is proposing to the Council that it approve the 
attached draft decision. 

A-1  <\ 

Proposal for a 

COUNCIL DECISION 

95/ 0261  (CNS) 

concerning the conclusion of 
the interregional framework cooperation agreement 
between the European Community and its Member States, of the one part, 
and the Southern Cone Common Market and its member countries, of the other part 

(presented by the Commission to the Council) 

A - 'I  £> 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  113 and  130y thereof, in conjunction with the first sentence of Article 228(2)and 
the first subparagraph of paragraph 3 of thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  Article  130u  of  the  Treaty  provides  that  Community  policy  in  the  sphere  of 
development cooperation should foster the sustainable economic and social  development 
of  the  developing  countries,  the  smooth  and gradual  integration  of  those  countries  into 
the world economy and the combating of poverty in those countries; 

Whereas  the  Community  should  approve  the  interregional  framework  cooperation 
agreement between the European Community and its Member States, of the one part, and 
the Southern Cone Common Market and its member countries, of the other part, 

HAS DECIDED AS FOLLOWS: 

Article  1 

The  interregional  framework  cooperation agreement  between the  European  Community 
and its Member  States, of the one part, and the Southern Cone Common Market and its 
member  countries,  of  the  other  part,  is  hereby  approved  on  behalf  of  the  European 
Community. 

The text of the Agreement is attached to this Decision. 

Article^ 

In accordance with Article 25 of the interregional framework cooperation agreement, the 
President  of  the  Council  shall  chair  the  Cooperation  Council  and  shall  represent  the 
Community  on  that  Council.  A  representative  of  the Commission  shall  chair  the  Joint 
Cooperation Committee and the Subcommittee on Trade in accordance with their rules of 
procedure,  and,  assisted  by  the  representatives  of  the  Member  States,  shall  represent 
Community on those Committees. 

A û k kJ 

The President of the Council  shall  give the notification provided for in  Article 34 of the 
Agreement on behalf of the Community-' 

A'2 

This Decision shall be published in the Official Journal of the European Communities. 

Article 4 

Done at Brussels, 

For the Council 
The President 

4 - -3 

INTERREGIONAL  FRAMEWORK  COOPERATION  AGREEMENT 
BETWEEN THE EUROPEAN  COMMUNITY AND ITS MEMBER STATES 
AND THE SOUTHERN  COMMON MARKET 
AND ITS MEMBER  COUNTRIES 

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 REPUBLIC OF AUSTRIA, 

THE PORTUGUESE REPUBLIC, 

THE REPUBLIC OF FINLAND, 

THE KINGDOM OF SWEDEN, 

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

Parties  to the Treaty  establishing  the European  Community  and  the Treaty  on  European 
Union, 

-, 

hereinafter  referred  to as the "European Community Member States", and 

THE EUROPEAN  COMMUNITY, 

hereinafter  referred  to as "the Community", of the one part, and 

THE ARGENTINE REPUBLIC, 

THE FEDERATIVE REPUBLIC OF BRAZIL, 

THE REPUBLIC  OF  PARAGUAY, 

THE EASTERN  REPUBLIC  OF  URUGUAY, 

Parties  to  the  Treaty  of  Asuncion  establishing  a  Southern  Common  Market  and  to  the 
Ouro  Preto  Additional  Protocol,  hereinafter  referred  to  as  the  "Mercosur  member 
countries", and 

THE SOUTHERN  COMMON  MARKET, 

hereinafter  referred  to as "Mercosur", of the other part, 

CONSIDERING  the  deep  historical,  cultural,  political  and  economic  links  which  unite 
them, and taking inspiration  from  the values shared by their peoples; 

CONSIDERING their full  commitment  to the content and principles of the Charter of the 
United  Nations  and  to  democratic  values,  the  rule  of  law  and  promoting  and  respecting 
human rights; 

CONSIDERING the importance which both Parties attach to the principles and values set 
out  in  the  Declaration  of  the  United  Nations  Conference  on  Environment  and 
Development  held  in  Rio  de  Janeiro  in  June  1992  and  those  set  out  in  the  Final 
Declaration  of the World  Summit  for  Social  Development  held  in Copenhagen  in March 
1995; 

MINDFUL of the fact  that both  Parties  consider  the process of regional  integration  to be 
an  instrument  of  economic  and  social  development  which  makes  it  easier  for  their 
economies  to  become  part  of  the  world  economy,  promotes  closer  relations  between 
peoples and contributes to greater international  stability; 

REAFFIRMING  their  desire  to  uphold  and  strengthen  the  tenets  of  international  free 
trade, in compliance with World  Trade Organization  rules, with  a particular emphasis on 
the importance of open  regionalism; 

CONSIDERING  that  both  the  Community  and  Mercosur  have  specific  experience  of 
regional  integration  which  could  be  of  mutual  benefit  as  they  forge  closer  relations 
determined by their needs; 

MINDFUL  of  the  relations  of  cooperation  which  have  developed, through  the  bilateral 
agreements  between  the  countries  of  both  the  regions  and  through  the  bilateral 
Framework  Cooperation  Agreements  between  the  Mercosur  member  countries  and  the 
European  Community; 

MINDFUL of the results produced by the Interinstitutional  Cooperation Agreement of 29 
may  1992  between  the  Commission  of  the  European  Communities  and  the  Southern 
Commun  Market,  and  emphasizing  the  need  to  continue  the  activities  covered  by  that 
Agreement; 

CONSIDERING  the  political  will  of  both  Parties  to  achieve  what  will  ultimately  be  a 
political  and economic  interregional  association  founded  on greater political  cooperation 
and progressive and reciprocal  liberalization  of all trade, taking account of the  sensitivity 
of certain goods and complying with World Trade Organization  rules, and the promotion 
of investment and closer cooperation; 

MINDFUL of the terms of the Joint Solemn  Declaration  in which  both  Parties propose to 
agree  an  Interregional  Framework  Agreement  covering  commercial  and  economic 
cooperation  and  preparing  for  gradual  and  reciprocal  liberalization  of  trade  between  the 
two  regions  as  a  prelude  to  the  negotiation  of  an  Interregional  Association  Agreement 
between them; 

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

FOR THE KINGDOM OF BELGIUM: 

FOR THE KINGDOM  OF DENMARK: 

FOR THE FEDERAL REPUBLIC OF GERMANY: 

FOR THE HELLENIC REPUBLIC: 

FOR THE KINGDOM OF SPAIN: 

FOR THE FRENCH REPUBLIC: 

FOR IRELAND: 

FOR THE ITALIAN REPUBLIC: 

FOR THE GRAND DUCHY OF LUXEMBOURG: 

FOR THE KINGDOM OF THE NETHERLANDS: 

FOR THE REPUBLIC OF AUSTRIA: 

FOR THE PORTUGUESE REPUBLIC: 

FOR THE REPUBLIC OF FINLAND: 

FOR THE KINGDOM OF SWEDEN: 

FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: 

FOR THE EUROPEAN  COMMUNITY: 

FOR THE ARGENTINE REPUBLIC 

FOR THE FEDERATIVE REPUBLIC OF BRAZIL 

FOR THE REPUBLIC OF PARAGUAY 

FOR THE EASTERN REPUBLIC OF URUGUAY 

FOR THE SOUTHERN CONE COMMON MARKET: 

WHO, having exchanged their Full Powers, found  in good and due form, 

HAVE AGREED AS FOLLOWS: 

TITLE I 

OBJECTIVES, PRINCIPLES AND SCOPE 

Article 1 
Basis for  cooperation 

Respect  for  the  democratic  principles  and  fundamental  human  rights  established  by  the 
Universal  Declaration  of Human  Rights inspires the domestic and external  policies of the 
Parties and constitutes an essential element of this agreement. 

Article 2 
Objectives  and scope 

This  Agreement  shall  seek  to strengthen  existing  relations  between  the Parties  and 

1. 
to lay the groundwork for Interregional  Association  arrangements. 

2. 
To  those  ends,  the  Agreement  covers  trade  and  economic  matters,  cooperation 
regarding  integration  and other fields  of  mutual  interest  in order to bring closer  relations 
between the Parties and their institutions. 

Article 3 
Political dialogue 

1. 
The  Parties  shall  institute  regular  political  dialogue  to  back  up  and  consolidate 
closer  relations  between  the  European  Union  and  Mercosur.  Such  dialogue  shall  be 
conducted in accordance with the Joint Declaration attached hereto. 

2. 
The  ministerial  dialogue  provided  for  in  the  Joint  Declaration  shall  take  place 
within  the  Cooperation  Council  established  by  Article  25  of  this  Agreement  or  within 
other agreed forums of an equivalent level. 

TITLE II 

TRADE 

Article4 
Objectives  r>v. 

The  Parties  shall  undertake  to  forge  closer  relations  with  the  aim  of  increasing  and 
diversifying  trade, preparing  for  subsequent  gradual  and reciprocal  liberalization  of  trade 
and  promoting  conditions  which  are  conducive  to  the  establishment  of  the  subsuquent 
Interregional  Association,  taking  into  account,  in  conformity  with  WTO  rules,  the 
sensitivity of certain goods. 

Article 5 
Dialogue on trade and economic matters 

The  Parties  shall  agree  on  the  scope  of  cooperation  in  trade  matters  without 

1. 
excluding any aspect from  the outset. 

2. 
To those ends, the Parties shall undertake to conduct periodic dialogue on trade and 
economic  matters,  within  the  institutional  framework  established  by  Title  VUI  of  the 
Agreement. 

Cooperation  of this nature shall focus on the  following: 

3. 
(a)  market  access,  trade  liberalization  (tariff  and  non-tariff  barriers)  and  trade 
discipline  (anti-competitive  practices,  rules  of  origin,  safeguards  and  special 
customs arrangements, for example); 
the Parties' trade relations with non-member countries; 
the compatibility  of trade liberalization  with GATT and WTO rules; 
the  identification  of  goods  which  the Parties consider  to be sensitive  or  of  priority 
importance; 
cooperation  and exchanges of information  on services, within the Parties' spheres of 
competence. 

(b) 
(c) 
(d) 

(e) 

Article 6 
Cooperation  on agri-food  and industrial standards and  certification 

1. 
The Parties  shall undertake to cooperate in promoting  the approximation  of  quality 
standards  for  agri-food  products  and  industrial- goods  and  of  certification,  in  conformity 
with international  criteria. 

2.  Within  the  bounds  of  their  spheres  of  competence,  the  Parties  shall  examine  the 
prospects for beginning negotiations for mutual recognition agreements. 

The  primary  aim  of  cooperation  shall  be  to  foster  any  activity  which  is  likely  to 

3. 
improve the quality of the Parties' products and business. 

Article 7 
Cooperation in customs matters 

The Parties  shall  promote cooperation  in customs  matters  in  order  to  improve  and 

1. 
consolidate the legal framework  for trade relations between them. 

Cooperation  in customs matters may also seek to strengthen the customs infrastructure  of 
the  Parties  and  improve  their  operation  within  the  framework  of  interinstitutional 
cooperation. 

2. 
(a) 
(b) 

(c) 
(d) 
(e) 

Cooperation  may be translated into action by measures including: 
exchanges of  information; 
the  development  of  new  training  techniques  and  coordination  of  activities  in  the 
relevant international  organizations; 
exchanges of officials  and senior personnel from customs and tax departments; 
simplification  of customs procedures 
technical assistance. 

The  Parties  hereby  signal  their  interest  in  giving  future  consideration,  within  the 
3. 
institutional  framework  established  by  this  Agreement,  to  the  conclusion  of  a  Customs 
Cooperation  Protocol.  ^ 

Article 8 
Cooperation  in statistical  matters 

The  Parties  shall  agree  to  align  statistical  methods  with  the  aim  of  achieving  mutual 
recognition  and  making  use  of  statistics  on  trade  in  goods  and  services  and,  in  general 
terms, data relating to any field  for which statistics can be collected. 

Article 9 
Cooperation regarding intellectual property 

1. 
The  Parties  shall  agree  to  cooperate  in  intellectual  property  matters  in  order  to 
encourage  investment,  the  transfer  of  technology,  trade  and  all  associated  economic 
activities, and to prevent distortions of trade. 

2.  Within  the  bounds  of  their  laws,  regulations  and  policies,  and  in  line  with  the 
undertakings  made  within  the  TRIPs  agreement,  the  Parties  shall  ensure  that  there  is 
suitable  and  genuine  protection  of  intellectual  property  rights,  if  necessary  by  arranging 
for such protection  to be stepped up. 

3. 
To the ends described  in paragraph  2, intellectual property matters shall  encompass 
copyright and similar rights, trademarks or brands, geographical terms and descriptions of 
origin, industrial  designs and utility models, patents and integrated circuit  topography. 

TITLE IE 

ECONOMIC COOPERATION 

Article 10 
Objectives  and principles 

1.  Guided  by  their  mutual  interests  and  their  medium-  and  long-term  economic 
objectives,  the  Parties .shall  promote  economic  cooperation  in  such  a way  as  to  help  to 
expand theix economies, increase their international  competitiveness,  foster  technical  and 
scientific  development,  improve their standards  of  living, establish  conditions  conducive 
to  job  creation  and  job  quality  and  diversify  and  strengthen  economic  links  between 
them. 

2. 
The Parties  shall  encourage the conferring  of  a regional  character  on  any  aspect of 
cooperation  which,  by  virtue  of  its  scope  or  economies  of  scale,  results  in  what  they 
consider  to  be  a  more  rational  and  efficient  use  of  available  resources  and  a  better 
outcome. 

3. 
Economie  cooperation  between  the  Parties  shall  have  as  wide  a basis  as  possible. 
No  aspect  shall  be  excluded  from  the  outset,  and  account  shall  be  taken  of  the  Parties' 
priorities, mutual  interest and areas of competence. 

4. 
In  the  light  of  the  foregoing,  the  Parties  shall  cooperate  in  all  areas  which  will 
foster  economic  and  social  links  and  networks  between  them  and  which  will  bring  their 
economies  closer  together,  as  well  as  in  all  areas  in  which  there  is a transfer  of  specific 
know-how relating to regional  integration. 

5.  Within  the framework  of  such cooperation,  the Parties  shall  promote the  exchange 
of information  on their respective economic indicators. 

The  Parties  shall  pay  attention  to protection  of  the environment  and  the  ecological 

6. 
balance in all their cooperation  activities. 

7.  A regard  for  social  development,  particularly  the promotion  of  fundamental  social 
rights, shall motivate the steps taken by the Parties in this field. 

Article 11 
Cooperation  in business 

The  Parties  shall  promote  cooperation  in  business  with  the  aim  of  establishing  a 

1. 
climate which favours  economic development in their mutual  interest. 

2. 
(a) 

(b) 
(c) 

(d) 

(e) 

(f) 

Such cooperation  shall focus on: 
increasing  the  flow  of  trade,  investment,  industrial  cooperation  projects  and  the 
transfer  of technology; 
encouraging  modernization  and diversification  in industry; 
identifying  barriers  to  industrial  cooperation  between  the  Parties  and  eliminating 
such  barriers  using  across-the-board  measures  which  promote  compliance  with 
competition  rules and foster  the tailoring of those rules to the needs  of  the  market, 
giving due attention'to the involvement and consultation of operators; 
stimulating  cooperation  between  the  Parties'  economic  operators,  especially  small 
and medium-sized enterprises; 
promoting industrial innovation by developing an integrated and decentralized  view 
of cooperation between operators in the two regions; 
ensuring that.action seeking to produce a positive influence on cooperation  between 
businesses in the two regions remains a coherent whole. 

Cooperation  shall essentially take the following  forms: 

3. 
(a)  more  organized  contact  between  the  Parties'  operators  and  networks,  through 
conferences,  technical  seminars,  fact-finding  missions,  attendance  at  general  and 
specialist fairs  and business meetings; 
suitable 
to  back  cooperation  between  small  and  medium-sized 
enterprises,  such  as  the  promotion  of  joint  ventures,  the  establishment  of 
information  networks,  encouraging  the  opening  of  trade  offices,  the  transfer  of 
specialist know-how, subcontracting, applied research, licensing and  franchising; 

initiatives 

(b) 

(c) 

(d) 

to 

initiatives 

promoting 
increase  cooperation  between  Mercosur  economic 
operators and European  associations,.with the aim of establishing dialogue between 
networks; 
training  schemes,  encouraging  the  establishment  of  networks  and  backing  for 
research. 

Article 12 
Promotion  of investment 

1.  Within  the  bounds  of  their  spheres  of  competence,  the  Parties  shall  promote  an 
attractive and stable climate for greater mutually beneficial  investment. 

2. 
(a) 

Such cooperation  shall encompass measures including the following: 
promoting regular exchanges of information,  the identification  and dissemination of 
information  on legislation and investment opportunities; 

(b)  promoting  the  development  of  a  legal  environment  which  is  conducive  to 
the 
investment  between  the  Parties,  particularly,  where  applicable,  through 
conclusion  between  interested  Community  Member  States  and  Mercosur  member 
countries  of  bilateral  agreements  for  the  promotion  and  protection  of  investment 
and bilateral agreements to prevent double taxation; 
promoting joint ventures, particularly between small and medium-sized  enterprises. 

(c) 

Article 13 
Cooperation  regarding energy 

1.  Cooperation  between  the  Parties  shall  focus  on  encouraging  closer  relations 
between  their economies  in  energy-related  industries,  taking  into consideration  the need 
to use energy rationally  and in a manner which respects the environment; 

2. 
(a) 

(b) 
(c) 

(d) 
(e) 

Cooperation regarding energy shall essentially take the following  forms: 
exchanges  of  information  in  all  appropriate  forms,  particularly  through  joint 
meetings; 
transfers  of technology; 
encouraging 
technological development or infrastructure  projects; 
technical training programmes; 
to  the  extent  that  their  spheres  of  competence  allow,  dialogue  regarding  energy 
policy. 

the  Parties'  economic  operators 

involvement  of 

in  joint 

the 

3.  Where  appropriate,  the  Parties  may  conclude  specific  agreements  of  common 
; 
interest. 

Article 14 
Cooperation  regarding transport 

1.  Cooperation  between  the  Parties  regarding  transport  shall  seek  to  back  the 
restructuring  and  modernization  of  transport  systems  and  find  mutually  acceptable 
solutions for moving people and goods using all modes of transport. 

2. 
(a) 

(b) 

Cooperation shall focus on the following: 
exchanges  of  information  on  both  Parties'  transport  policies  and  on  matters  of 
mutual  interest; 
training programmes for transport system operators. 

3.  Within  the framework  of the dialogue on trade and economic matters referred  to in 
Article  5,  and  considering  the  prospect  of  Interregional  Association,  both  Parties  shall 
devote attention  to all aspects of international  transport to ensure that they do not act as a 
barrier to the reciprocal  expansion  of trade. 

Article 15 
Cooperation  in science and technology 

1. 
The Parties  shall  agree to cooperate  in the field  of science and technology  with  the 
aim of promoting a lasting working relationship between  their scientific  communities and 
exchanging  information  and  know-how  regarding  science  and  technology  between  the 
regions. 

2. 
following: 
(a) 
(b) 

(c) 

Cooperation  in  science  and  technology  between  the  Parties  shall  focus  on  the 

joint research projects  in fields  of common  interest; 
exchanges  of  scientists  in  order  to  encourage joint  research,  prepare  projects  and 
provide high-calibre training; 
joint  scientific  conferences  to  exchange  information,  promote  interaction  and 
facilitate  the selection  of subjects for joint research; 

(d)  publicizing  of  results  and  development  of  links  between  the  public  and  private 

sectors. 

Such cooperation  shall involve the Parties' centres of higher education  and research 

3. 
and their industries, particularly  small and medium-sized enterprises. 

The Parties shall agree between them the scope, nature and priorities of cooperation 

4. 
through a multiannual programme which can be adapted to suit the  circumstances. 

Article 16 
Cooperation  in telecommunications  and information  technology 

The  Parties  shall  agree  to establish  cooperation  regarding  telecommunications  and 
1. 
information  technology,  with  the  aim  of  fostering  economic  and  social  developments 
driving the information  society forward  and making modernization  of society easier. 

2. 
(a) 

Cooperation  in this field  shall seek especially to: 
facilitate  the  establishment  of  dialogue  on  the  various  features  of  the  information 
society  and  promote  the  exchange  of  information  on  standards,  inspection  and 
certification  in the field  of telecommunications  and information  technology; 
(b)  disseminate  new  telecommunications  and  information  technology,  particularly  in 
the  fields  of  integrated  services  digital  networks,  4a ta  transmission  arid  the 
establishment of new communications and information-technology  services; 

10 

(c) 

stimulate the launching  of joint  research,  industrial  and technological  development 
projects  in  the  field  of  new  communications  technologies,  telematics  and  the 
information  society. 

Article 17 
Cooperation regarding environmental  protection 

1.  With  the  aim  of  achieving  sustainable  development,  the  Parties  shall  encourage 
awareness  of  the  issues  of  environmental  protection  and  the  rational  use  of  natural 
resources in all fields of interregional  cooperation. 

The  Parties  shall, agree  to devote  special  attention  to  measures  connected  with  the 

2. 
international  dimension  of environmental  problems. 

3. 
(a) 

(b) 
(c) 

Cooperation could cover the following  in particular: 
exchanges  of  information  and  know-how  regarding  matters  including  regulations 
and standards; 
training and education  regarding the environment; 
technical  assistance,,joint  research  projects  and,  where  appropriate,  institutional 
assistance. 

TITLE IV 

ENCOURAGING  INTEGRATION 

Article 18 
Objectives  and scope 

1.  Cooperation  between  the  Parties  shall  seek  to further  the objectives  of  Mercosur's 
integration process and shall encompass all the areas of this Agreement. 

To  those  ends,  cooperation  activities  shall  be  considered  in  the  context  of  the 

2. 
specific  requirements of Mercosur. 

Cooperation  should 

take  any  form  which 

is  considered  appropriate,  and 

arrangements for the exchange of information  in any suitable manner, including the 
establishment of-computer networks; 
training and institutional backing; 
studies and joint projects; 
technical assistance. 

(b) 
(c) 
(d) 

4. 
The  Parties  shall  cooperate  to  ensure  maximum  efficiency  in  the  use  of  their 
resources  for  the  compilation,  analysis,  publication  and  dissemination  of  information, 
without prejudice to any steps which might be necessary to protect the confidential  nature 
of  some  of  that  information.  They  shall  also  undertake  to  protect  personal  data  in  all 
instances in which there is provision  for exchanging information  via computer networks. 

11 

3. 
particularly: 
(a) 

TITLE V 

INSTITUTIONAL  COOPERATION 

Article 19 
Objectives  and scope 

The  Parties  shall  promote  closer  cooperation  between  their  institutions  and  shall 

1. 
particularly encourage regular contact. 

2,. 
(a) 

(b) 
(c) 

Such cooperation  shall have as wide a basis as possible and shall focus on: 
any  means  of  fostering  regular  exchanges  of  information,  including  the  joint 
development of computer networks for  communication; 
the transfer  of know-how; 
advice and  information; 

TITLE VI 

OTHER AREAS OF COOPERATION 

Article 20 
Cooperation  regarding training and education 

1.  Within  the  bounds  of  their  spheres  of  competence,  the  Parties  shall  endeavour  to 
find  ways  to  improve  education  and  training  relating  to  regional  integration,  whether  in 
the  form  of  vocational  training  and  training  for  young  people  or  in  the  form  of 
cooperation between universities or businesses. 

The  Parties  shall  pay  particular  attention  to  action  which  would  promote  the 
2. 
establishment of links between their specialist entities and encourage the use of  technical 
resources and exchanges of know-how. 

The Parties  shall encourage the conclusion  of  agreements between  training  centres 
3. 
and the holding-of meetings between bodies responsible for education  and training in the 
field of regional integration. 

Article 21 
Cooperation regarding information, communication and culture 

1.  Within  the bounds of their spheres of competence, and with the aim of  broadening 
knowledge  of  their  political,  economic  and  social  realities,  the  Parties  shall  agree  to 
strengthen  the  cultural  links  between  them  and  encourage  and  publicize  the  nature, 
objectives  and  scope of  their  processes  of  integration  to promote  understanding  of  them 
within their societies. 

The Parties shall also agree to expand exchanges of information  between them on matters 
of mutual  interest. 

12 

Such  cooperation  should  promote  contact  between  the. Parties'  information  and 

2. 
communications media in forms includingtechnical assistance. 

It could include cultural activities if their regional significance justifies  such action 

Article 22 
Cooperation in combating drug  trafficking 

In  accordance  with  their  spheres  of  competence,  the  Parties  shall  promote  the 
1. 
coordination  and  intensification  of  their  efforts  to combat  drug  trafficking  and  its  many 
ramifications,  including financial  ramifications. 

2. 
Such  cooperation  shall  include  the  promotiori  of  consultation  and  greater 
coordination  between  the  Parties  at  regional  level  and,  where  appropriate,  between  the 
relevant regional  institutions. 

Article 23 
Future developments 

The  Parties  may  by  mutual  consent  expand  this  Agreement  with  a  view  to 
1. 
enhancing  the levels  of  cooperation  and  supplementing  them, within  the bounds  of  their 
.respective laws, by means of agreements on specific  sectors or activities. 

2.  With  regard to the implementation of this Agreement, either of the Parties  may put 
forward  suggestions  for  widening  the  scope  of  cooperation,  taking  into  account  the 
experience gained in its application. 

TITLE VII 

RESOURCES FOR  COOPERATION 

Article 24 

1. 
In  order  to  facilitate  the  achievement  of  the  aims  set  out  in  this  Agreement,  the 
Parties  shall  make  available,  within  the  limits  of  their  abilities  and  through  their  own 
channels, the appropriate resources, including financial resources. 

2.  Depending  on  the  results  obtained,  the  Parties  shall  call  on  the  European 
Investment  Bank  to  step  up  its  activities  within  Mercosur  in  accordance  with  its  own 
procedures and financing criteria. 

The provisions  of  this  Agreement  shall  not  affect  bilateral  cooperation  established 

3. 
by existing cooperation  agreements, 

TITLE Vm 

13 

INSTITUTIONAL FRAMEWORK 

Article 25 

1.  A Cooperation Council  is hereby established. It shall supervise the implementation 
of  this  Agreement  and  shall  meet  at  ministerial  level  periodically  and  whenever 
circumstances require. 

2. 
The Cooperation Council shall discuss important matters arising in connection with 
the Agreement and any other bilateral or international issues of common interest, with the 
aim of fulfilling  the Agreement's objectives. 

The Cooperation Council may also make appropriate proposals, with the agreement 
3. 
of  the  Parties.  In  carrying  out  its  duties,  the  Cooperation  Council  shall  undertake  in 
particular  to  make  recommendations  which  contribute  to  the  ultimate  objective  of 
Interregional Association. 

Article 26 

1.  The  Cooperation  Council  shall  be  composed  of  members  of  the  Council  of  the 
European  Union  and  members  of  the  European  Commission,  on  the  one  hand,  and 
members of the Common-Market Council and Common Market Group, on the other. 

2. 

The Cooperation Councilshall adopt its own rules of procedure. 

The  Cooperation  Council  shall  be  chaired  in  turn,by  a  representative  of  the 

3. 
Community and a representative of Mercosur. 

Article 27 

1.  The  Cooperation  Council  shall  be  assisted, in  the performance  of  its  duties  by  a 
Joint Cooperation Committee composed of representatives of the Community, on the one 
hand, and representatives of Mercosur, on the other. 

2.  The Joint Committee shall generally meet once a year, on a date and with an agenda 
agreed  in  advance  by  the  Parties,  alternately  in  Brussels  and  in  one  of  the  Mercosur 
member  countries.  Special  meetings  may  be  convened  by  mutual  agreement,  at  the 
request  of  either. Party.  The  office  of  chairman  of  the  Joint  Committee  shall  be  held 
. alternately by a representative of each of the Parties 

3.  The  Cooperation  Council  shall  set  out  the  operating  procedures  of  the  Joint 
Committee in its own rules of procedure. 

4.  The  Cooperation  Council  may  delegate  all  or  part  of  its  powers  to  the  Joint 
Committee.  The  latter  shall  provide  continuity  between  meetings  of  the  Cooperation 
Council. 

5.  The Joint Committee shall assist the Cooperation Council in the performance of its 
duties. In fulfilling  its functions, the Joint Committee shall in particular: 

14 

(a) 

(b) 

stimulate  trade  relations  in accordance  with  the objectives  of  this  Agreement  and 
in compliance with provisions of Title II; 
exchange  views  on  any  matter  of  common  interest  which  relates  to  trade 
liberalization  and cooperation, including future programmes of cooperation and the 
resources available for their implementation; 

(c)  make  proposals  to  the  Cooperation  Council,  with  the  aim  of  stimulating 
preparations  for  the  liberalization  of  trade and  of  intensifying  cooperation,  while 
taking due account of the need for coordination between the activities proposed; 
in  more  general  terms,  to  make  proposals  to  the  Cooperation  Council  which 
contribute to achieving the ultimate aim of EU-Mercosur Interregional Association. 

(d) 

Article 28 

The  Cooperation  Council  may  decide  to  set  up  any  other  body  to  assist, it  in  the 
performance  of  its  duties  and  shall  determine  that  body's  composition,  objectives  and 
operating procedures. 

Article 29 

1. 
In  accordance  with  the procedures  laid down  in Article  5 of  this Agreement,  the 
Parties shall establish a Subcommittee on Trade, which shall ensure that the trade-related 
objectives  of  this  Agreement  are  fulfilled  and  shall  conduct  preparatory  work  for  the 
subsequent liberalization of trade. 

2. 
The  Subcommittee  on  Trade  shall  be  composed  of  representatives  of  the 
Community,  on  the  one  hand,  and  representatives  of  Mercosur,  on  the  other.  It  may 
commission any studies or technical analyses which it deems necessary. 

3. 
The  Subcommittee  on  Trade  shall  report  once  a  year  to  the  Joint  Cooperation 
Committee  established under Article  27  of the Agreement  on  the progress  of  its  work, 
and shall make proposals regarding the subsequent liberalization of trade. 

The  Subcommittee  on  Trade  shall  submit  its  rules  of  procedure  to  the  Joint 

4. 
Committee for approval. 

* •-

Article 30 
Consultation 

Within  the  bounds  of  their  spheres  of  competence,  the  Parties  shall  undertake  to  hold 
consultations on any issue referred to in this Agreement. 

The procedure for  the consultations  referred to above shall  be laid down  in the rules of 
procedure of the Joint Committee. 

TITLE IX 

FINAL PROVISIONS 

15 

Article 31 
Other agreements 

the  provisions  of  the  Treaties  establishing 

Without  prejudice  to 
the  European 
Communities and Mercosur, neither this Agreement nor any action taken under it shall  in 
any  way  affect  the  powers  of  the  Member  States  of  the  Community  or  the  member 
countries of Mercosur to undertake bilateral activities within their spheres of competence 
or where appropriate to conclude new cooperation agreements. 

Article 32 
Definition  of the Parties 

For the purposes of this Agreement, the term  "the Parties" shall mean the Community,  its 
Member  States  or  the  Community  and  its  Member  States,  in  accordance  with  their 
respective  spheres of competence, as deriving from  the Treaty establishing  the  European 
Community, on the one hand, and Mercosur or its member countries, in accordance  with 
the Treaty establishing the Southern Cone Common Market, on the other hand. 

Article 33 
Territorial  application 

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaty 
establishing  the  European  Community  is applied  and under  the  conditions  laid  down  in 
that  Treaty  and,  on  the  other,  to  the  territories  in  which  the  Treaty  establishing  the 
Southern  Cone  Common  Market  is  applied  and  under  the  conditions  laid  down  in  that 
Treaty and its additional protocols, on the other hand. 

Article 34 
Duration and entry into force 

1. 

This Agreement shall be valid  indefinitely. 

2. 
The  Parties  shall  determine  the  suitability,  timing  and  conditions  of  the  start  of 
negotiations for Interregional Association  in accordance with their own procedures and in 
the  light  of  the  work  carried  out  and  the  proposals  made  within  the  institutional 
framework  of this Agreement. 

This  Agreement  shall  enter  into  force  on  the  first  day  of  the  month  following  the 
3. 
date  on  which  the  Parties  have  notified  each  other  of  the  completion  of  the  procedures 
necessary for this purpose. 

4.  Notification  shall be sent to the Council  of  the European  Union  and the  Common 
Market Group of Mercosur. 

The  Secretary-General  of  the  Council  shall  be  the  depositary  for  the  Community. 

5. 
The Government of the Republic of Paraguay shall be the depositary for  Mercosur. 

Article 35 
Non-execution 

16 

1. 
The  Parties  shall  adopt  any  general  or specific  measure  required  for  them  to  fulfil 
their  obligations  under  this  Agreement,  and  they  shall  ensure  that  they  comply  with  the 
objectives  laid down  in that Agreement. 

If either  Party  considers  that  the  other  Party  has  failed  to  fulfil  an  obligation  under  this 
Agreement,  it may take appropriate measures. Before  doing so, except  in cases of  special 
urgency,  it shall  supply  the Joint  Committee  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  measures,  priority  must  be  given  to  those  which  least  disturb  the 
functioning  of  this  agreement.  These  measures  shall  be notified  immediately  to the Joint 
Committee  and  shall  be  the  subject  of  consultations  within  that  Committee  if  the  other 
Party so requests. 

The  Parties  agree,  for  the  purpose  of  the  correct  interpretation  and  practical 
2. 
application  of  this  agreement,  that  the  term  "cases  of  special  urgency"  in  paragraph  1 of 
this  Article  means  a  case  of  material  breach  of  the  agreement  by  one  of  the  Parties.  A 
material  breach  of the agreement consists in: 

(a) 

or 
(b) 

repudiation  of  the  agreement  not  sanctioned  by  the  general  rules  of 
international  law, 

violations of essential elements of the agreement, namely Article  1. 

3. 
The  Parties  agree  that  the  "appropriate  measures"  referred  to  in  this  Article  are 
measures  taken  in accordance  with  international  law. If a Party takes a measure in a case 
of  special  urgency  as  provided  for  under  this  Article,  the  other  Party  may  ask  that^an 
urgent meeting be called to bring both Parties together within fifteen  days. 

17 

Article 36 
Authentic texts 

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

18 

JOINT DECLARATION MADE AT THE TIME OF INITIALLING 

Pending  the completion  of  the  procedures  needed  for  the  Agreement  to enter  into  force, 
the Parties declare their readiness to agree, before  the Agreement is signed, on procedures 
to  bring  about  early  application  of  its  provisions,  particularly  those  relating  to 
Community  competence  regarding  the  trade  cooperation  referred  to  in  Title  II  of  the 
Agreement  and  those  relating  to  the  institutional  framework  established  for  such 
cooperation. 

The  Parties  emphasize  their  intention  to  continue  the  cooperation  provided  for  in  the 
interinstitutional  cooperation  agreement of 29 May  1992 between  the Commission  of the 
European  Communities  and  the  Council  of  Mercosur  until  the  Parties  have  completed 
their ratification  procedures. 

19 

DECLARATION  REGARDING MERCOSUR'S LEGAL PERSONALITY 
MADE AT THE TIME OF INITIALLING 

The  Agreement  initialled  today  may  be  signed  once  the  Ouro  Preto  Protocol,  through 
which Mercosur acquires international  legal personality, enters into force. 

20 

DECLARATION BY THE COMMISSION 

The Commission  states  that  if discussions  within  the competent  Community  bodies  lead 
to  the  conclusion  that  the  Agreement  has  the  character  of  a Community  agreement,  the 
appropriate  amendments  shall  be  made  to  the  text,  and  particularly  to  the  following 
Articles: 

1.  Article 3: Political dialogue 

2.  Article 25: Cooperation  Council. 

Other necessary alterations to the wording will also be made. 

21 

MERCOSUR  STATES  THAT  ONCE  THE  LEGAL  NATURE  OF  THE 
INTERREGIONAL  FRAMEWORK  AGREEMENT  BEING  INITIALLED  ON  THIS 
DATE  HAS  BEEN  DETERMINED,  IT  WILL  IF  NECESSARY  PROPOSE  TO  THE 
OTHER PARTY THAT THE NECESSARY LEGAL ADJUSTMENTS BE MADE. 

22 

DECLARATION BY MERCOSUR 

MERCOSUR  STATES  THAT  ONCE  THE  LEGAL  NATURE  OF  THE 
INTERREGIONAL  FRAMEWORK  AGREEMENT  BEING  INITIALLED  ON  THIS 
DATE  HAS  BEEN  DETERMINED,  IT  WILL  IF  NECESSARY  PROPOSE  TO  THE 
OTHER PARTY THAT THE NECESSARY LEGAL ADJUSTMENTS BE MADE. 

23 

Draft joint Declaration on political dialogue 
between the European Union and Mercosur 

ANNEX 

Preamble 

The European Union and the Member States of Mercosur, 

-  conscious of their historical, political and economic ties, their common cultural heritage and the 

bonds of friendship  between their peoples, 

-  mindful  that political and economic freedoms  are fundamental to society in the EU and the 

Mercosur countries, 

- 

- 

reaffirming  human dignity and the promotion of human rights as cornerstones of a democratic 
society, in accordance with the United Nations Charter, 

reaffirming  the essential role of the principles and democratic institutions based on the rule of 
law, respect for which governs the internal and external policies of the parties, 

-  desiring to strengthen international peace and security in accordance with the principles of the 

United Nations Charter, 

- 

sharing an interest in regional integration as a means of enabling their citizens to achieve 
sustainable and harmonious development predicated upon social progress and solidarity, 

-  building upon the preferential  relations formalized  by the Framework Cooperation Agreements 

which the European Community has signed with each of the Mercosur countries, 

2^ 

-  recalling the principles set out in the Solemn Joint Declaration signed by the two parties 

on 22 December  1994, 

have decided to develop relations on a long-term basis. 

Objectives 

-  Mercosur and the European Union solemnly reaffirm their commitment to progressing towards 

the establishment of an interregional association and to establishing greater political dialogue for 
that purpose. 

-  Regional integration is one means of achieving sustainable and socially harmonious 

development, and a tool for ensuring competitiveness in the world economy. 

-  This dialogue is also intended to ensure closer consultation on issues affecting both regions and 
on multilateral issues, in particular by allowing the positions of the parties to be coordinated in 
the relevant multilateral organizations. 

Mechanisms of the dialogue 

-  The parties will conduct this political dialogue by means of contacts, information exchanges and 
consultation, especially meetings at the appropriate level between the various Mercosur and  ' 
European Union bodies as well as by making full use of diplomatic channels. 

-  In particular, with the aim of establishing and developing this political dialogue on bilateral and 

international issues of mutual interest, the parties agree to hold: 

(a)  regular meetings, the detailed arrangements for which will be decided on by the parties, 

between the Heads of State of the countries of Mercosur and the highest authorities of the 
European Union; 

ti 

(b)  an annual meeting of the Ministers for Foreign Affairs of Mercosur and of the 

Member States of the European Union, attended by the European Commission.  These 
meetings will be held at a venue to be determined on each occasion by the parties; 

(c)  meetings of other Ministers responsible for matters of mutual interest where such meetings 

are deemed necessary by the parties in order to strengthen mutual relations; 

(d)  periodic meetings of senior officials  from both parties. 

fr 

Proposai for a  . 

COUNCIL DECISION 

95/ 0262  (ACQ 

concerning the provisional application of certain provisions 
of the interregional framework cooperation agreement 
between the European Community and its Member States, of the one part, 
and the Southern Cone Common Market and its member countries, of the other part 

(presented by the Commission to the Council) 

# 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  113 and  130y thereof, in conjunction  with the first sentence of Article 228(2), 

Having regard to the proposal from the Commission, 

Whereas  the  interregional  framework  cooperation  agreement  between  the  European 
Community  and  its  Member  States,  of  the  one  part,  and  the  Southern  Cone  Common 
Market and its member countries, of the other part, was signed by the Community  and its 
Member States on 

; 

Whereas  the  European  Community  and  Mercosur  undertook  to establish  procedures  for 
the  early  application  of  certain  provisions  of  that  Agreement  which  deal  with  trade 
cooperation  between the parties and the institutional framework  for such cooperation; 

Whereas  the  provisional  application  of  the  provisions  in  question  will  facilitate  and 
promote closer trade relations between  the European  Community  and Mercosur, pending 
the completion of the procedures required to bring the Agreement into force, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The attached  exchange of letters between  the Community  and Mercosur, which  provides 
for  the  provisional  application  of  certain  provisions  of  the  interregional  framework 
cooperation  agreement  between  the European  Community  and its Member  States, of  the 
one part, and the Southern  Cone Common Market and its member countries, of the other 
part, is hereby approved on behalf of the European  Community. 

Article 2 

The  Commission,  assisted  by  the  representatives  of  the  Member  States,  shall  represent 
the Community within the bodies referred  to in Articles 27 and 29 of the Agreement. 

This Decision shall be published in the Official  Journal of the European Communities. 

Article 3 

Done at Brussels, 

For the Council 
The President 

ai 

EXCHANGE OF LETTERS 

concerning the provisional application of certain provisions 
of the interregional framework  cooperation  agreement 
between  the European  Community and its Member States, of the one part, 
and the Southern  Common Market and its member countries, of the other part 

Letter No 1 

(place and date) 

Sir, 

I  have  the  honour  to  refer  you  to  the  interregional  framework  cooperation  agreement 
between  the  European  Community  and  its  Member  States,  of  the  one  part,  and  the 
Southern  Cone  Common  Market  and  its  member  countries,  of  the other  part,  signed  on 

I  have  the  honour  to  propose  to  you  that  the  European  Community  and  Mercosur 
provisionally  apply  the provisions  of  that  Agreement  which  deal  with  trade  cooperation 
between the parties, as set out in Articles 4 to 8 of Title II. 

In  the  interests  of  ensuring  that  the  cooperation  referred  to  in  those  provisions  is 
effective,  I  also  have  the  honour  to  propose  that  we  provisionally  implement  the 
provisions of Articles 27, 29 and 30, which deal with the establishment  of the institutions 
responsible for the implementation of the Agreement. 

I have the honour to propose that, if the above is acceptable to [Mercosur], this letter and 
your  confirmation  shall  together  constitute  an  Agreement  between  the  European 
Community and [Mercosur]. 

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

On behalf of the Council of the European Union 

7S\ 

Letter No 2 

.....  ,  ..... 
(place and date) 

Sir, 

I have  the  honour  to  acknowledge  receipt  of  your  letter  of  today's  date  concerning  the 
provisional  application  of certain  provisions  of  the interregional  framework  cooperation 
agreement between thé European Community and its Member States, of the one part, and 
the Southern  Cone Common Market and its member countries,  of  the other part, which 
reads as follows: 

I am able to confirm that [Mercosur] is in agreement with the contents of your letter. 

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

On behalf of [Mercosur] 

SO 

ISSN 0254-1475 

COM(95) 504  final 

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ISBN 92-77-95207-5 

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