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 Uzbekistan, of the other part
Date: 1996-06-05
Institutions: European Commission
Subjects: Uzbekistan, cooperation agreement (EU), cooperation policy

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  05.06.1996 
COM(96)  254  final 

96/0151 (AVC) 

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 Uzbekistan, 

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 
Uzbekistan, on the other. 

2.  Following  the  Council's  adoption  of  the  negotiating  directives  on  5  October  1992, 
negotiations  with  the  Republic  of  Uzbekistan  were  held  in the  course  of  1996.  After  two 
rounds of negotiations, the Agreement  was initialled on 29 April  1996. 

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  often  years. 

It  establishes  a  political  dialogue.  The  Agreement  also  covers  trade  in  goods,  labour 
conditions,  establishment  and  operation  of  companies,  cross-border  supply  of  services, 
payments  and  capital,  competition, 
industrial  and  commercial  property 
intellectual, 
protection,  legislative  cooperation,  economic  cooperation,  cooperation  on  human  rights 
and democracy,  cooperation  in combatting  illegal activities and illegal immigration,  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. 

Mutual assistance in customs matters is covered  by a separate protocol. 

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

In the case of the EC, account will have to be taken  of Opinion  1/94  delivered  by the Court 
of  Justice  on  15 November  1994  on  the  competence  of  the  European  Community  to 
conclude the agreements reached  during the Uruguay  Round. 

For the purpose of concluding the Agreement: 

the Council  will conclude  the  Agreement,  with  the  assent  of the  European  Parliament  and 
having  consulted  the  Economic  and  Social  Committee,  on  behalf  of  the  European 
Community  in  accordance  with  Article  54(2),  the  closing  sentence  of  Article  57(2)  and 
Articles 73c(2), 75, 84(2),  113 and  235 in conjunction  with the  second  sentence  of  Article 
228(2)  and  the  second  subparagraph  of  Article  228(3)  of  the  EC  Treaty  by  adopting  the 
attached  decision; 

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

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  proposes  that  the  Council  adopt  the  annexed 

decision. 

COUNCIL AND COMMISSION  DECISION 

OF 

on the conclusion  of the Partnership and Cooperation  Agreement 

between the European  Communities  and their Member States 

and the Republic of Uzbekistan 

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

THE COUNCIL OF THE EUROPEAN  UNION, 

THE EUROPEAN  COMMISSION, 

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

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular  Article 
54(2),  the  closing  sentence  of  Article  57(2)  and  Articles  73c(2),  75,  84(2),  113  and  235  in 
conjunction  with the second  sentence of Article 228(2) and the second subparagraph of Article 
228(3) thereof, 

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

Having regard to the assent of the European  Parliament, 

Having  regard  to  the  approval  of  the  Council  given  in  accordance  with  Article  101  of  the 
Treaty establishing the European Atomic Energy Community, 

Having  consulted 
Committee, and with the unanimous assent of the Council, 

the  ECSC  Consultative  Committee  and  the  Economic  and  Social 

Whereas the conclusion  of the Partnership  and Cooperation Agreement between the European 
Communities  and  their  Member  States  and  Uzbekistan  signed  in 
would 
contribute to achieving the European  Communities' objectives; 

on 

Whereas  that  Agreement  seeks  to  strengthen  existing  links,  notably  those  established  by  the 
Agreement  on  Trade  and  Commercial  and  Economic  Cooperation  between  the  European 
Economic Community and the European  Atomic Energy Community and the USSR,  signed on 
18 December  1989; 

Whereas  some  of  the  obligations  provided  for  in  the  Agreement  in  fields  other  than 
Community  trade  policy  affect  the  arrangements  established  by Community  acts,  particularly 
acts relating to the right of establishment  and to  transport; 

Whereas  the  Agreement  imposes  on  the  Community  certain  obligations  relating  to  the 
movement of capital and payments between the Community and Uzbekistan; 

Whereas  in the  case  of certain  measures  provided  for  in the Agreement  and  falling  within  the 
Community's powers the EC Treaty provides no basis for action other than Article 235, 

HAVE DECIDED AS FOLLOWS : 

Article 1 

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

Article 2 

1.  The  position  to  be  adopted  by  the  Community  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  Community  and  the 
European  Atomic Energy Community. 

2.  In accordance with Article 80 of the Partnership  and Cooperation  Agreement, the President 
of  the  Council  shall  chair  the  Cooperation  Council  and  shall  present  the  Community's 
position.  A  representative  of  the  Commission  shall  chair  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  101  of  the 
Agreement  on behalf of the European Community.  The President of the Commission  shall give 
such  notification  on  behalf  of  the  European  Coal  and  Steel  Community  and  the  European 
Atomic Energy Community. 

Done at Brussels, 

Final Act 

The plenipotentiaries  of: 

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 

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 UZBEKISTAN, 

sU-

of the other part, 

on 

meeting at 
in the year one thousand  nine hundred and ninety-six 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  Republic  of 
Uzbekistan,  of  the  other  part,  hereinafter  referred  to  as  "the  Partnership  and  Cooperation 
Agreement", have adopted the following text : 

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

The plenipotentiaries of the Member  States and of the Community and the plenipotentiaries  of 
the Republic  of Uzbekistan  have  adopted  the texts  of the Joint  Declarations  listed  below  and 
annexed to this Final Act: 

Joint Declaration concerning personal  data 

Joint Declaration concerning Article 5 of the Agreement 

Joint Declaration  concerning Title HI of the Agreement 

Joint Declaration concerning Article  14 of the Agreement 

Joint  Declaration  concerning  the  notion  of  "control"  in  Article  24  (b)  and  Article  35  of  the 
Agreement 

Joint Declaration concerning Article 34 of the Agreement 

Joint Declaration concerning Article 41 of the Agreement 

Joint Declaration concerning Article 95 of the Agreement 

The plenipotentiaries  of the Member  States and  of the Community and the Plenipotentiaries  of 
the  Republic  of  Uzbekistan  have  also  taken  note  of  the  exchange  of  letters  listed  below 
annexed to this Final Act: 

Establishment  of companies 

The plenipotentiaries  of the Member  States and  of the Community and the Plenipotentiaries  of 
the Republic of Uzbekistan have also taken note of the declaration listed below annexed to this 
Final Act: 

Unilateral Declaration by the French Republic on the Overseas Countries Territories 

Done at 

in the year one thousand  nine hundred and ninety six. 

For the Council and the Commission of the European  Communities. 

For the Republic of Uzbekistan. 

4 

PARTNERSHIP  AND COOPERATION  AGREEMENT 

establishing  a  partnership  between  the  European  Communities  and  their  Member  States,  of  the 
one part, and the Republic of Uzbekistan,  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 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, the Treaty establishing the European 
Coal  and  Steel  Community,  and  the  Treaty  establishing  the  European  Atomic  Energy 
Community, 

hereinafter  referred  to as "Member States", and 

THE  EUROPEAN  COMMUNITY,  THE  EUROPEAN  COAL  AND  STEEL  COMMUNITY, 
AND THE EUROPEAN ATOMIC ENERGY  COMMUNITY, 

hereinafter referred to as "the Community", 

of the one part, 

AND THE REPUBLIC OF UZBEKISTAN, 

of the other part, 

CONSIDERING  the  links  between  the  Community,  its  Member  States  and  the  Republic  of 
Uzbekistan and the common values that they share, 

RECOGNIZING  that the Community  and the  Republic  of  Uzbekistan  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 
Community  and  the  European  Atomic  Energy  Community  and  the  Union  of  Soviet  Socialist 
Republics on Trade and Commercial and Economic Cooperation, signed on 18 December 1989, 

CONSIDERING the commitment  of the Community  and its Member States and of the Republic 
of Uzbekistan  to  strengthening  the  political  and  economic  freedoms  which  constitute  the very 
basis of the partnership, 

RECOGNIZING 
in that  context  that  support  of  the  independence,  sovereignty  and  territorial 
integrity of the Republic of Uzbekistan  will  contribute to the safeguarding  of peace and stability 
in Central Asia, 

CONSIDERING  the commitment  of the Parties  to  promote  international  peace  and  security  as 
well as the peaceful  settlement  of disputes and to cooperate  to this end in the framework  of the 
United Nations and the Organisation for Security and Cooperation in Europe (OSCE), 

CONSIDERING  the firm commitment  of  the  Community  and  its  Member  States  and  of  the 
Republic  of Uzbekistan  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",  and  other  fundamental 
documents of the OSCE, 

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

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  Uzbekistan,  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  neighbouring  countries  in  order  to  promote  the  prosperity  and  stability  of  the 
region, 

2: 

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

RECOGNIZING  AND  SUPPORTING  the  wish  of  Uzbekistan  to  establish  close  cooperation 
with European institutions, 

CONSIDERING the necessity of  promoting  investment  in the Republic of Uzbekistan,  including 
in  the  energy  sector,  and  in  this  context  the  importance  attached  by  the  Community  and  its 
Member States to  equitable conditions for  access to  and transit  for  export  of  energy  products ; 
confirming  the  attachment  of  the  Community  and  its  Member  States  and  of  the  Republic  of 
Uzbekistan to the European Energy Charter, and to the full implementation of the Energy Charter 
Treaty and the Energy Charter Protocol on energy efficiency  and related environmental aspects, 

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 
the Republic of Uzbekistan and a wider area of cooperation  in Europe and neighbouring  regions 
and its progressive integration into the open international trading system, 

CONSIDERING  the  commitment  of  the  Parties  to  liberalize  trade,  in  conformity  with  World 
Trade  Organisation  (WTO)  rules,  and  convinced  that  Uzbekistan's  accession  to  the  WTO  will 
allow the further intensification  of trade relations between them, 

CONSCIOUS  of  the  need  to  improve  conditions  affecting  business  and  investment,  and 
conditions in areas such as establishment  of companies,  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  essential  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, 

RECOGNIZING  that  cooperation  for  the  prevention  and  control  of  illegal  immigration 
constitutes one of the primary objectives of this Agreement, 

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

HAVE AGREED AS FOLLOWS: 

A R T I C LE  1 

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

to  support  the  independence  and  sovereignty  of the  Republic  of  Uzbekistan, 
to  support  the  Republic  of  Uzbekistan's  efforts  to  consolidate  its  democracy,  to  develop  its 
economy  and  to  achieve transition  to  a market  economy, 
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,  civil,  scientific,  technological  and 
cultural  cooperation, 
to  assist  in the construction  of a civil  society  in Uzbekistan  based  upon  the rule of  law. 

TITLE  I 

GENERAL  PRINCIPLES 

ARTICLE  2  . 

Respect for democracy, principles of international  law and human rights as defined  in particular in 
the United Nations Charter,  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  Conference,  underpin  the  internal  and  external  policies of the Parties and  constitute 
an essential element of partnership and of this  Agreement. 

ARTICLE  3 

that  the  newly 
The  Parties  consider  that  it  is  essential  for  their  future  prosperity  and  stability 
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. 

T I T LE  II 

POLITICAL  DIALOGUE 

A R T I C LE  4 

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

-  will strengthen  the links of the Republic  of Uzbekistan  with  the Community  and  its  Member 
States, and thus with the community  of democratic  nations  as a whole.  The  economic 
convergence  achieved  through  this Agreement  will  lead  to  more intense political  relations; 

-  will bring about  an  increasing  convergence  of  positions  on  international  issues of  mutual 

- 

concern thus increasing  security  and  stability  in the  region, 
shall foresee  that  the Parties  endeavour  to  cooperate  on  matters  pertaining  to the  observance 
of the principles of democracy,  and  the respect,  protection  and  promotion  of human  rights, 
including those  of persons belonging  to  minorities  and  shall  hold  consultations,  if necessary, 
on  relevant  matters. 

Such  dialogue  may take place on  a regional  basis. 

A R T I C LE  5 

At  ministerial  level,  political  dialogue  shall  take  place  within  the  Cooperation  Council  established 
in Article 78 and  on  other  occasions  by mutual  agreement. 

A R T I C LE  6 

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

- 

- 

- 

regular  meetings  at  senior  official  level  between  representatives  of the Community  and  its 
Member  States  on  the  one  hand,  and  representatives  of the Republic of Uzbekistan  on  the 
other  hand; 
taking  fiill  advantage  of diplomatic  channels  between  the  parties  including  appropriate 
contacts  in the bilateral  as well  as the  multilateral  field  such  as United  Nations,  OSCE 
meetings and  elsewhere; 
any other  means,  including  the  possibility  of  expert  meetings  which  would  contribute  to 
consolidating  and  developing  this  dialogue 

A R T I C LE  7 

Political  dialogue  at  parliamentary 
Parliamentary  Cooperation  Committee  established  in  Article 83. 

level  shall 

take  place  within 

the  framework  of 

the 

6 

/> 

TITLE HI 

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; 

taxes and other internal charges of any kind applied directly or indirectly to imported goods; 

-  provisions relating to customs clearance, transit, warehouses and transhipment; 
- 
-  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  WTO  rules  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 shall  not  apply,  during a transitional  period  expiring  on the 
date  of  the  Republic  of  Uzbekistan  acceding  to  the WTO  or  on  31 December 1998, 
whichever is earlier, to advantages defined  in Annex I granted by the Republic of Uzbekistan 
to other states which have emerged from the dissolution of the USSR. 

ARTICLE 9 

1.  The Parties agree that the principle  of free  transit  is an essential  condition  of attaining the 

objectives of this Agreement. 

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

2. 

3. 

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

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. 

ARTICLE  10 

Without  prejudice  to  the  rights  and  obligations  stemming  from  international  conventions  on  the 
temporary  admission  of  goods  which  bind  the  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  the  Republic  of  Uzbekistan  shall  be  imported  into  the  Community  free 
of  quantitative  restrictions  and  measures  of  equivalent  effect,  without  prejudice  to  the 
provisions  of Articles  13,  16 and  17 of this  Agreement. 

Goods  originating, in the  Community  shall  be  imported  into  the  Republic  of Uzbekistan  free 
of  quantitative  restrictions  and  measures  of  equivalent  effect,  without  prejudice  to  the 
provisions  of Articles  13,  16 and  17 of this  Agreement. 

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

ARTICLE  12 

ARTICLE  13 

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

2. 

3. 

Before .taking  any  measures,  or  in  cases  to  which  paragraph  4  applies  as  soon  as  possible 
thereafter,  the  Community  or  the  Republic  of  Uzbekistan  as 
the  case  may  be  shall  supply 
relevant  information  with  a  view  to  seeking  a  solution 
the  Cooperation  Council  with  all 
acceptable  to  the Parties  as provided  for  in Title  XI. 

If,  as  a  result  of  the  consultations,  the  Parties  do  not  reach  agreement  within  30  days  of 
referral  to  the  Cooperation  Council  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  injur)',  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 Parties shall give priority to those which 
cause least disturbance to the achievement  of the aims of this Agreement. 

6.  Nothing  in this  Article  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  related  on 
interpretation  and  application  of  Articles  VI,  XVI  and  XXIII  of  the  GATT  or  related 
internal legislation. 

ARTICLE  14 

The Parties undertake to  consider  development  of  the  provisions  in this  Agreement  on  trade in 
goods between them, as circumstances allow, including the situation arising from the accession of 
the Republic of Uzbekistan to the WTO.  The Cooperation  Council  may make recommendations 
on such developments to the Parties which could be put into effect,  where accepted, by virtue of 
agreement between the Parties in accordance with their respective procedures. 

ARTICLE  15 

This  Agreement  shall  not  preclude  prohibitions  or  restrictions  on  imports,  exports  or goods  in 
transit justified  on grounds of public morality,  public  policy  or public security; the protection  of 
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  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, 
initialled on 4 December  1995 and applied provisionally since  1  January 1996. 

~2' 

ARTICLE  17 

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

2.  A contact  group  on coal and  steel  matters  shall be set up, comprising  representatives  of the 
Community  on  the  one  hand,  and  representatives  of  the  Republic  of  Uzbekistan  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  materials  shall  be  subject  to  the  provisions  of  a  specific  Agreement  to  be 
concluded between the European Atomic Energy Community and the Republic of Uzbekistan. 

10 

est* 

TITLE IV 

PROVISIONS AFFECTING  BUSINESS AND  INVESTMENT 

CHAPTER I 

Labour  conditions 

ARTICLE  19 

1. 

2. 

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 nationals of the Republic of Uzbekistan, 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. 

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

ARTICLE 20 

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. 

ARTICLE 21 

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

-  ^ 

ii 

v * J?  " 

C H A P T ER  II 

Conditions  affecting  the  establishment  and  operation  of  companies 

A R T I C LE  22 

1. 

The  Community  and  its  Member  States  shall  grant,  for  the  establishment  of  Uzbek 
companies  as  defined  in  Article  24  (d),  treatment  no  less  favourable  than  that  accorded  to 
any third  country  companies. 

2.  Without  prejudice  to  the  reservations  listed  in  Annex  II,  the  Community  and  its  Member 
States  shall  grant  to  subsidiaries  of  Uzbek  companies  established  in  their  territories  a 
treatment  no  less  favourable  than  that  granted  to  any  Community  companies,  in  respect  of 
their  operation. 

3. 

The  Community  and  its  Member  States  shall  grant  to  branches  of  Uzbek  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. 

4.  Without  prejudice  to  the  reservations  listed  in  Annex  III,  the  Republic  of  Uzbekistan  shall 
grant,  for  the establishment  of Community  companies  as defined  in  Article  24  (d),  treatment 
no  less  favourable  than  that  accorded 
to  Uzbek  companies  or  to  any  third  country 
companies,  whichever  is the  better. 

5. 

The  Republic  of  Uzbekistan  shall  grant  to  subsidiaries 
and  branches  of  Community 
companies  established  in  its  territory  treatment  no  less  favourable  than  that  accorded  to  its 
own  companies  or  branches  or  to  any  third  country  company  or  branch,  whichever  is  the 
better,  in respect  of their  operations. 

A R T I C LE  23 

1.  The  provisions  of  Article 22  shall  not  apply  to  air  transport,  inland  waterways  transport  and 

maritime  transport. 

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  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  seivice  seller  has  established 
standing  business  arrangements; 

12 

1 

/2  <">'  i"y 

" 

(b)  purchase  and  use,  on  their  own  account  or  on  behalf  of  their  customers  (and  to  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  by  any  means,  including  computerized 

information 
systems  and  electronic  data  interchange  (subject  to  any  non-discriminatory  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,  organizing  the  call  of  the  ship  or  taking  over  cargoes 
when required. 

For the purpose of this Agreement: 

ARTICLE  24 

(a)  A "Community  company"  or  an  "Uzbek  company"  respectively  shall  mean  a company  set  up 
in accordance with the laws of a Member  State or of the Republic of Uzbekistan  respectively  and 
having its registered  office  or central administration,  or principal place of business  in the territory 
of the Community or the Republic of Uzbekistan  respectively.  However,  should  the company set 
up  in  accordance  with  the  laws  of  a  Member  State  or  the  Republic  of  Uzbekistan  respectively 
have  only  its registered  office  in  the  territory  of  the  Community  or  the  Republic  of  Uzbekistan 
respectively,  the company shall be considered  a Community or Uzbek company respectively  if its 
operations possess a real  and  continuous  link  with  the  economy  of one of the Member  States  or 
the Republic of Uzbekistan  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 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  Uzbek  companies  as  referred  to  in 
point (a) to take up economic activities by means of the setting up of subsidiaries and branches in 
the Republic of Uzbekistan or in the Community  respectively. 

(e)  "Operation" shall mean the pursuit  of economic activities. 

13 

(t)  "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,  nationals  of  the  Member  States  or  of  the  Republic  of  Uzbekistan  established  outside  the 
Community  or  the  Republic  of  Uzbekistan  respectively,  and  shipping  companies  established' 
outside  the  Community  or  the  Republic  of  Uzbekistan  and  controlled  by  nationals  of  a  Member 
State  or  nationals  of  the  Republic  of  Uzbekistan  respectively,  shall  also  be  beneficiaries  of  the 
provisions  of  this  Chapter  and  Chapter  III  if their  vessels  are  registered  in  that  Member  State  or 
in the Republic  of Uzbekistan  respectively  in accordance  with their respective  legislation 

ARTICLE  25 

Notwithstanding  any  other  provisions  of  this  Agreement,  a  Party  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  this  Agreement,  they  shall  not  be  used  as  a 
means of avoiding  the obligations  of a Party  under  this  Agreement. 

Nothing  in  this  Agreement  shall  be  construed  as  requiring  a  Party  to  disclose  information 
relating to  the atfairs  and  accounts  of individual  customers  or any  confidential  or  proprietary 
information  in the  possession  of public  entities. 

For  the  purposes  of this  Agreement,  "financial  services" shall  mean  those  activities  described 
in  Annex  IV 

ARTICLE  26 

The  provisions  of this 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  27 

Notwithstanding  the  provisions  of  Chapter  I  of  this  Title,  a  Community  company  or  an 
Uzbek  company  established  in the territory  of the  Republic of Uzbekistan  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  the  Republic  of  Uzbekistan  and  the  Community  respectively,  employees  who 
are  nationals  of  Community  Member  States  and  the  Republic  of  Uzbekistan  respectively, 
provided  that  such  employees  are  key  personnel  as defined  in paragraph  2,  and  that  they  are 
employed  exclusively  by  companies,  or  branches.  The  residence  and  work  permits  of  such 
employees  shall  only cover  the  period  of such  employment. 

Kev  personnel  of  the  abovementioned  companies  herein  referred  to  as  "organizations"  are 
"intra-coiporate  transferees"  as  defined  in  (c)  in  the  following  categories,  provided  that  the 

14 

// 
^> 

/? 

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

(a)  Persons  working  in  a  senior  position  with  an  organization,  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 subdivision 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 organization 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 organization 
in the  territory  of  a. Party,  and  being  temporarily  transferred  in  the  context  of  pursuit  of 
economic activities in the territory of the other Party; the organization 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  organization,  effectively  pursuing  like  economic 
activities in the territory of the other Party. 

ARTICLE 28 

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:  the  situations 
covered  by  Article  36  shall  be  solely  governed  by  its  provisions  to  the  exclusion  of  any 
other. 

3.  Acting  in  the  spirit  of  partnership  and  cooperation  and  in  the  light  of  the  provisions  of 
Article 42, the Government of the Republic of Uzbekistan  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 the Republic  of  Uzbekistan  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  the 
Republic of Uzbekistan  to communicate  the drafts  of such  legislation  or  regulations  and to 
enter into consultations about those drafts. 

15 

Where new legislation  or  regulations  introduced  in the Republic of Uzbekistan  would  result 
in  rendering  the  conditions  for  operation  of  subsidiaries  and  branches  of  Community 
companies  established  in  the  Republic  of  Uzbekistan  more  restrictive  than  the  situation 
existing on the day of signature of this Agreement,  such  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  the  Republic  of  Uzbekistan  at  the  time  of 
entry into force of the relevant act. 

CHAPTER HI 

Cross border supply of services  between the Community 
and the Republic of Uzbekistan 

ARTICLE 29 

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

2.  The  Cooperation  Council  shall  make  recommendations  for 

the 

implementation  of 

paragraph  1. 

ARTICLE  30 

The  Parties  shall  cooperate  with  the  aim  of  developing  a  market  oriented  service  sector  in  the 
Republic of Uzbeki stan. 

ARTICLE  31 

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 
from 
the United Nations  Convention  on a Code  of Conduct  for  Liner  Conferences,  as  applicable 
to  one  or  other  Party  to  this  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; 

the  rights  and  obligations  arising 

(b)  the Parties affirm  their commitment  to a freely  competitive  environment  as being an  essential 

feature of the dry and liquid bulk trade. 

;

>

"

"• 

16 

2. 

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

(a)  not  apply,  as  from  the  entry  into  force  of  this  Agreement,  any  cargo  sharing  provisions  of 
bilateral  agreements  between  any  Member  States  of the  Community  and  the  former  Soviet 
Union; 

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

(c)  prohibit cargo sharing arrangements  in future  bilateral  agreements  concerning  dry  and  liquid 

bulk trade; 

(d)  abolish  upon  entry  into  force  of  this  Agreement,  all  unilateral  measures,  administrative, 
technical  and other  obstacles  which  could  have  restrictive  or  discriminatory  effects  on  the 
free  supply of services in international  maritime transport. 

ARTICLE 32 

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 after  entry  into  force  of 
this Agreement. 

CHAPTER IV 

General  Provisions 

ARTICLE 33 

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  the  Parties  are  connected,  even 

occasionally, with the exercise of official  authority. 

ARTICLE  34 

For  the  purpose  of this Title,  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 this  Agreement.  The  above  provision  does  not  prejudice  the  application  of  Article 

17 

. 

A -' 

. 

. 

/ 

ARTICLE  35 

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

ARTICLE 36 

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 General  Agreement  on Trade in 
Services (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. 

ARTICLE 37 

For the purposes  of Chapters II, III  and  IV,  no  account  shall be taken  of treatment  accorded  by 
the  Community,  its  Member  States  or  the  Republic  of  Uzbekistan  pursuant  to  commitments 
entered  into in economic integration  agreements  in accordance with the principles of Article V of 
the GATS. 

ARTICLE 38 

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. 

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. 

• ' O" 

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

ARTICLE  39 

Without  prejudice  to  Article 27,  no  provision  of  Chapters II,  III  and IV  shall  be  interpreted  as 
giving the right to: 

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

18 

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

territory  of the Community  nationals  of  the  Republic  of  Uzbekistan; 

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

territory  of the  Republic  of Uzbekistan  nationals  of  the  Member  States; 

-  Uzbek  companies  or  Community  subsidiaries  or  branches  of Uzbek  companies  to  supply 

Uzbek  persons  to  act  for  and  under  the  control  of other  persons  by temporary  employment 
contracts; 

-  Community  companies  or  Uzbek  subsidiaries  or  branches of Community  companies  to  supply 

workers who  are  nationals  of the Member  States  by  temporary  employment  contracts. 

C H A P T ER  V 

Current  payments  and  capital 

A R T I C LE  40 

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 Uzbekistan  connected  with  the  movement  of goods,  services  or  persons  made  in 
accordance with  the  provisions  of this  Agreement. 

With  regard  to  transactions  on  the  capital  account  of  balance  of  payments,  from  entry  into 
force  of this  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,  and  the  liquidation  or  repatriation  of  these 
investments  and  of any  profit  stemming  therefrom  shall  be  ensured. 

Without  prejudice  to  paragraph  2  or  to  paragraph  5,  as  from  the  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 
Uzbekistan  shall  be  introduced  and  the  existing  arrangements  shall  not  become  more 
restrictive. 

The  Parties  shall  consult  each  other  with  a  view  to  facilitating  the  movement  of  forms  of 
capital  other  than  those  referred  to  in  paragraph  2  between  the  Community  and  the  Republic 
of  Uzbekistan  in  order  to  promote  the  objectives  of this  Agreement. 

the  meaning  of  Article  VIII  of  the  Articles  of  Agreement  of 

With  reference  to  the  provisions  of  this  Article,  until  a  full  convertibility  of  the  Uzbek 
currency  within 
the 
International  Monetary  Fund  (IMF)  is  introduced,  the  Republic  of  Uzbekistan  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  Uzbekistan  for  the  granting  of  such  credits  and  are  permitted 
according  to  the  Republic  of  Uzbekistan's  status  under  the  IMF.  The  Republic  of 
Uzbekistan  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  Uzbekistan  shall  inform  the  Cooperation  Council  promptly  of  the  introduction 
of such  measures  and  of any  changes  therein. 

19 

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

CHAPTER  VI 

Intellectual,  industrial  and  commercial  property  protection 

ARTICLE  41 

Pursuant  to  the provisions  of this Article  and of  Annex  V,  the Republic  of  Uzbekistan  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 this  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  this  Agreement,  the  Republic  of 
Uzbekistan  shall  accede  to  the  multilateral  conventions  on  intellectual,  industrial  and 
commercial  property  rights  referred  to  in paragraph  1 of Annex  V  to  which  Member  States 
are  parties  or  which  are  de  facto  applied  by  Member  States,  according" to  the  relevant 
provisions contained  in these  conventions. 

20 

TITLE V 

LEGISLATIVE  COOPERATION 

ARTICLE  42 

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

links 
between  the  Republic  of  Uzbekistan  and  the  Community  is  the  approximation  of  the 
Republic  of  Uzbekistan's  existing  and  future  legislation  to  that  of  the  Community.  The 
Republic of Uzbekistan 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,  laws  on  banking  and  other  financial  services,  company  accounts  and taxes, 
intellectual property, protection of workers at the workplace, rules on competition including 
any related issues and practices affecting  trade, 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, telecommunications. 

3.  The Community  shall  provide  the  Republic  of  Uzbekistan  with technical  assistance  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 of personnel involved  in the drafting and implementation of legislation; 
-  aid for translation of Community legislation in the relevant sectors. 

4.  The Parties agree to examine ways to apply their respective competition laws on a concerted 

basis in such cases where trade between them is affected. 

21 

TITLE VI 

ECONOMIC  COOPERATION 

ARTICLE  43 

1.  The Community and the Republic of Uzbekistan shall establish economic cooperation aimed 
at  contributing  to  the  process  of  economic  reform  and  recovery  and  sustainable 
development  of  the  Republic  of  Uzbekistan.  Such  cooperation  shall  strengthen  existing 
economic links, to the benefit of the Parties. 

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 Uzbekistan 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,  in  particular,  on  economic  and  social 
development,  human  resources  development, 
(including 
privatization,  investment  and  development  of  financial  services),  agriculture  and  food, 
energy and civil  nuclear safety,  transport,  postal  services  and telecommunications,  tourism, 
environmental protection and regional cooperation. 

for  enterprises 

support 

4. 

Special attention shall be devoted to measures capable of fostering regional cooperation. 

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 
Community  technical  assistance  to  the  Republic  of  Uzbekistan  and  its  established 
coordination and implementation procedures. 

ARTICLE 44 

Cooperation  in the field of trade in goods and services 

The Parties will cooperate with a view to ensuring that the Republic of Uzbekistan's international 
trade is conducted in conformity with the rules of the WTO. 

Such cooperation  shall  include  specific  issues  directly  relevant  to  trade facilitation,  in particular 
with a view  to  assisting  the Republic  of  Uzbekistan  to  harmonise  its  legislation  and  regulations 
with  WTO  rules  and  so  to  fulfil  as  soon  as  possible  the  conditions  of  accession  to  that 
Organisation.  These include: 

- 

formulation of policy on trade and trade-related  questions, including payments and clearing 

mechanisms, 

-  drafting of relevant legislation. 

22 

ARTICLE  45 

Industrial  cooperation 

1.  Cooperation shall aim at promoting the following  in particular. 

-  the development of business links between economic operators of both sides; 
-  Community participation in Uzbekistan's efforts  to restructure its industry; 
-  the improvement of management; 
-  the improvement of the quality of industrial products; 
-  the development of efficient  production and processing capacity in the raw materials sector; 
-  the development of appropriate commercial rules and practices including product marketing; 
-  environmental protection; 
-  defence conversion; 
_  training of management personnel. 

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

rules applicable to undertakings. 

ARTICLE 46 

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 private  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 aims of cooperation shall be in particular: 

-  the conclusion, where appropriate, between the Member States and the Republic of Uzbekistan 
of agreements for the promotion and protection of investment; 

-  the  conclusion,  where  appropriate,  between  the  Member  States  and  the  Republic  of 
Uzbekistan of agreements to avoid double taxation; 

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

23 

(t&^t 

A R T I C LE  47 

Public  Procurement 

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

A R T I C LE  48 

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  quality.  The  required  actions  will 
facilitate  progress  towards  mutual  recognition  in  the  field  of conformity  assessment,  as  well 
as the improvement  of Uzbek  product  quality. 

2.  To this end  the Parties  shall  seek  to  cooperate  in technical  assistance  projects  which  will: 

-  promote  appropriate  cooperation  with  organizations  and  institutions  specialized  in these  fields; 
-  promote the use of Community  technical  regulations  and  the application  of European  standards 

and  conformity  assessment  procedures; 

-  permit  the  sharing  of experience  and  technical  information  in the field of quality  management. 

A R T I C LE  49 

Mining  and  raw  materials 

1.  The Parties  shall  aim  at  increasing  investment  and  trade  in mining and  raw  materials. 

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

-  exchange  of information  on  the  prospects  of the  mining and  non-ferrous  metals  sectors; 
-  the establishment  of a legal  framework  for  cooperation; 
-  trade  matters; 
-  the  adoption  and  implementation  of environmental  legislation; 
-  training; 
-  safety  in the  mining  industry. 

A R T I C LE  50 

Cooperation  in  science  and  technology 

1.  The  Parties  shall  promote  cooperation 

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). 

in  civil  scientific  research  and 

24 

(a 

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 51. 

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

In carrying out such cooperation activities, special  attention shall be devoted to the redeployment 
of scientists,  engineers,  researchers and technicians  which are or 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 51 

Education  and  training 

1.  The  Parties  shall  cooperate  with  the  aim  of  raising  the  level  of  general  education  and 
professional  qualifications  in  the  Republic  of  Uzbekistan,  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 Uzbekistan 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 educational establishments and between educational 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; 
-  post-graduate training of conference  interpreters; 
-  training of journalists; 
-  training of trainers. 

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  Uzbekistan 
in the Community's TEMPUS  programme. 

. -
/ X?/ 

y 

5) 

25 

• 

ARTICLE  52 

Agriculture  and  the  agro-industrial  sector 

The  purpose  of  cooperation  in  this  area  shall  be  the  pursuance  of  agrarian  reform,  the 
modernization,  privatization  and  restructuring  of  agriculture,  the  agro-industrial  and  services 
sectors  in  the  Republic  of  Uzbekistan,  development  of  domestic  and  foreign  markets  for  the 
Uzbek  products,  in conditions that  ensure the protection  of the environment,  taking into  account 
the necessity to improve security of food  supply  as well as the development  of agri-business,  the 
processing  and  distribution  of  agricultural  products.  The  Parties  shall  also  aim  at  the  gradual 
approximation  of Uzbek standards to  Community  technical  regulations concerning  industrial  and 
agricultural food  products including sanitary and  phytosanitary standards. 

ARTICLE  53 

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.  Cooperation  shall  concentrate,  inter  alia,  upon  the  formulation  and  development  of  energy 

policy.  It shall include among others the following  areas: 

-  improvement in management and regulation  of the energy sector in line with a market 

economy; 

-  improvement  of energy supply, including security of supply, in an economic and 

environmentally sound  manner; 

-  promotion of energy saving and energy efficiency  and implementation of the Energy Charter 

Protocol on Energy Efficiency  and  related  environmental  aspects; 

-  modernisation of energy  infrastructures; 
-  improvement of energy technologies in supply and end use across the range of energy types; 
-  management  and technical  training in the energy  sector; 
-  transportation  and transit of energy materials and products. 
-  the introduction  of the range of institutional,  legal, fiscal and other conditions necessary to 

encourage increased energy trade and  investment; 

-  development  of hydro-electric and  other  renewable energy resources. 

3.  The Parties shall exchange relevant  information  relating to investment  projects  in the energy 
sector,  in particular concerning  the production  of energy resources and the construction and 
refurbishing  of oil  and  gas  pipelines  or  other  means  of  transporting  energy  products.  The 
Parties  attach  particular  importance  to  cooperation  regarding  investments  in  the  energy 
sector  and  the  manner  in  which  these  are  regulated.  They  shall  cooperate  with  a  view  to 
implementing  as  efficaciously  as  possible  the  provisions  of  Title  IV  and  of  Article  46,  in 
respect  of investments in the energy  sector. 

26 

/ 
/ ^ K ^ ; /-

/ .• 

/ 

ARTICLE  54 

Environment  and  human health 

1.  Bearing in mind the European Energy  Charter,  the Declarations of the Lucerne  Conference 
of April  1993, and the of the Sofia Conference of October  1995, and taking into account the 
Energy  Charter  Treaty  and  especially  its  Article  19,  and  the  Energy  Charter  Protocol  on 
Energy  Efficiency  and  related  environmental  aspects,  the  Parties  shall  develop  and 
strengthen their cooperation on environment and human health. 

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

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

information on the state of the environment; 

-  combating 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 protection of forests; 
-  the conservation of biodiversity,  protected areas and sustainable use and management of 

biological resources; 

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

-  disaster planning 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 in 

view to achieving sustainable development; 

-  environmental  impact studies. 

4.  The  Parties  shall  seek  to  develop  their  cooperation  on  questions  of  human  health,  in 
particular  through  technical  assistance  on  the  prevention  and  combatting  of  infectious 
diseases and the protection of mothers and young children. 

27 

ARTICLE  55 

Transport 

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

This  cooperation  shall,  inter  alia,  aim  at  restructuring  and  modernizing  transport  systems  and 
networks  in  the  Republic  of  Uzbekistan;  developing  and  ensuring,  where  appropriate, 
compatibility  of  transportation  systems  in  the  context  of  achieving  a  more  global  transport 
system;  and  identifying  and  elaborating  priority  projects  and  seeking  to  attract  investment  for 
their implementation. 

The cooperation shall include, inter alia: 

-  the modernisation  of management  and operations of road transport,  railways, ports, airports 

and urban passenger transport systems; 

-  modernization and development  of railways, waterways, roads, airports and air navigation 
infrastructure  including the modernization  of major  routes of common interest and the 
trans-European  links for the above modes, particularly those related to the TRACECA  project; 

-  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 privatization  of the transport  sector. 

ARTICLE  56 

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; 

-  transferring  technology and know-how,  particularly  regarding European  technical  standards 

and certification  systems; 

-  encouraging 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 telecommunication  and postal services and 

for the use of the radio frequency  spectrum; 

-  training in the field of telecommunications  and  postal  services for operations in market 

conditions. 

28 

/ 

' 

/ 

A R T I C LE  57 

Financial  Services  and  fiscal  institutions 

1.  Cooperation  in  the  field  of  financial  services  shall  in  particular  aim  at  facilitating 

the 
in  universally  accepted  systems  of  mutual 

involvement  of  the  Republic  of  Uzbekistan 
settlements.  Technical  assistance  shall  focus  on: 

-  the development  of a stock  market  and  a  securities  market, 
-  the development  of banking  services,  the development  of a common  market  of credit  resources 
and the involvement  of the Republic  of Uzbekistan  in  a universally  accepted  system  of  mutual 
settlements; 

-  the development  of insurance  services,  which  would  inter alia create a favourable  framework 
for  Community  companies' participation  in the  establishment  of joint  ventures in the  insurance 
sector in the Republic of Uzbekistan,  as well  as  the  development  of export  credit  insurance. 

This  cooperation  shall  in  particular  contribute  to  foster  the  development  of  relations  between  the 
Parties  in the  financial  services  sector. 

2.  The  Parties  shall  cooperate  in  developing  the  fiscal  system  and  fiscal  institutions  in  the 
Republic  of  Uzbekistan.  This  cooperation  shall  include  the  exchange  of  information  and 
experience  on  fiscal  matters  and  the  training  of  personnel  involved  in  the  formulation  and 
implementation  of  fiscal  policy. 

A R T I C LE  58 

Enterprise  restructuring  and  privatisation 

Recognizing  that  privatisation  is  of  fundamental  importance  to  a  sustainable  economic  recovery, 
the  Parties  agree  to  cooperate  in  the  development  of  the  necessary  institutional,  legal  and 
methodological  framework.  Particular  attention  will  be  paid  to  the  orderly  and  transparent  nature 
of the privatisation  process. 

Technical  assistance  shall  focus  on,  inter  alia : 

the further  development  of an  institutional  base  within  the Government  of Uzbekistan  to  assist 
with  defining  and  managing  the  privatisation  process; 
the further  development  of the  privatisation  strategy  of the government  of Uzbekistan, 
including  the legislative framework,  and  implementation  mechanisms; 
furthering  market  approaches  to  land  use  and  ownership,  and  the  privatisation  of land; 
the  restructuring  of those enterprises  not  yet  ready  for  privatisation; 
the development  of private  enterprise,  particularly  in the small  and  medium  enterprise  sector. 
the development  of investment  privatisation jiinds  systems. 

The  objective  of this cooperation  is also to  contribute  to  the  promotion  of Community  investment 
in  Uzbekistan. 

29 

ARTICLE 59 

Regional  development 

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

2.  To this end,  the Parties  shall  encourage  the  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. 

ARTICLE 60 

Social  cooperation 

1.  With regard to  health and safety,  the Parties  shall  develop  cooperation  between  them with 
the aim of improving inter alia 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; 
-  modernization 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 promoting 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 Uzbekistan. 

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

30 

• 

/ >, 

„, 

ARTICLE  61 

Tourism 

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

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

ARTICLE  62 

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 
Uzbekistan. 

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  to support  SMEs; to promote communication 

between SMEs both within Uzbekistan  and further  afield;  and to train SMEs in the skills 
necessary to access  funding; 

-  training in the areas of marketing, accounting and  control  of the quality of products. 

ARTICLE  63 

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 Uzbekistan,  including,  where  possible,  access to  databases,  in full  respect  of 
intellectual property rights. 

>  2*  "" 

31 

ARTICLE 64 

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,  and  increasing  the  compatibility  of 
consumer protection policies, and the organization of seminars and training periods. 

ARTICLE 65 

Customs 

1.  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 the 
Republic of Uzbekistan's customs system to that of the Community. 

2.  Cooperation shall include the following in particular: 

-  the exchange of information; 
-  the improvement of working methods; 
-  the introduction of the Combined Nomenclature and the single administrative document; 
-  interconnection between the transit systems of the Community and of the 

Republic of Uzbekistan; 

-  the simplification of inspections and formalities  in respect of the carriage of goods; 
-  support for the introduction of modern customs information systems; 
-  the organization of seminars and training periods. 

Technical assistance shall be provided where necessary. 

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

32 

ARTICLE  66 

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 Uzbekistan. 

The Parties, in particular, shall cooperate in the following  fields: 

-  adaptation of the Uzbek 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. 

The Community shall contribute to  this end by rendering  technical  assistance  to  the Republic  of 
Uzbekistan. 

ARTICLE 67 

Economics 

The  Parties  shall  facilitate  the  process  of  economic  reform  and  the  coordination  of  economic 
policies  by  cooperating  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 macroeconomic performance and prospects. 

The Community shall provide technical assistance so as to: 

-  assist the Republic of Uzbekistan in the process of economic reform by providing expert 

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; 

-  improve Uzbekistan's capacity to formulate economic models. 

33 

TITLE VII 

COOPERATION  ON MATTERS  RELATING  TO  DEMOCRACY 
AND HUMAN  RIGHTS 

ARTICLE 68 

The  Parties  shall  cooperate  on  all  questions  relevant  to  the  establishment  or  reinforcement  of 
democratic  institutions,  including those  required  in order to  strengthen  the rule of  law,  and the 
protection of human rights and fundamental  freedoms  according to international  law and OSCE 
principles. 

This cooperation shall take the form of technical  assistance programmes intended  to assist, inter 
alia, in the drafting of relevant legislation and regulations;  the implementation of such legislation; 
the functioning of the judiciary;  the role of the State in questions of justice;  and the operation of 
the electoral system.  They may include training where appropriate.  The Parties shall  encourage 
contacts and exchanges between their national,  regional and judicial authorities, parliamentarians, 
and non-governmental organisations. 

34 

/ 

TITLE  VIII 

COOPERATION  ON PREVENTION  OF ILLEGAL ACTIVITIES AND THE 
PREVENTION AND CONTROL OF ILLEGAL  IMMIGRATION 

ARTICLE  69 

The Parties shall establish cooperation aimed at preventing illegal  activities  such as: 

illegal activities in the sphere of economics, including corruption; 
illegal transactions of various goods, including industrial waste, and arms; 
counterfeiting; 

Cooperation  in  the  abovementioned  areas  will  be  based  on  mutual  consultation  and  close 
interaction.  Technical  and  administrative  assistance  will  be  provided,  including  in the  following 
areas: 

drafting of national legislation in the sphere of preventing illegal activities; 
creation of information centres; 
increasing the efficiency  of institutions engaged in preventing illegal activities; 
training of personnel and development of research infrastructures; 
elaboration of mutually acceptable measures impeding illegal activities. 

ARTICLE  70 

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 71 

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  in  narcotic  drugs  and  psychotropic  substances,  including  the 
prevention  of diversion  of precursor chemicals,  as well  as in promoting  drug demand  prevention 
and  reduction.  Cooperation  in  this  area  shall  be  based  on  mutual  consultation  and  close 
coordination  between  the  Parties  on  objectives  and  measures  to  be  taken  in  the  various  drug-
related fields. 

>•  ~> 

35 

/I  > 

// 

ARTICLE  72 

Illegal  Immigration 

1 

The Member  States and  the Republic  of Uzbekistan  agree to  cooperate  in order  to  prevent 
and control illegal immigration. To this end: 

-  The Republic of Uzbekistan agrees to readmit any of its nationals illegally present on the 

territory of a Member State, upon request by the latter and without further  formalities;  and 

each Member State agrees to readmit any of its nationals, as defined  for  community 
purposes, illegally present  on the territory of  the Republic of Uzbekistan, upon request by 
the latter and without further  formalities. 

The Member States and the Republic of Uzbekistan will also provide their nationals with 
appropriate  identity documents for such purposes. 

2.  The  Republic  of Uzbekistan,  agrees  to  conclude  bilateral  agreements  with  Member  States 
which  so request,  regulating  specific  obligations  for  readmission  including  an obligation  for 
the  readmission  of  nationals  of  other  countries  and  stateless  persons  who  have  arrived  on 
the  territory  of  any  such  Member  State  from  the  Republic  of  Uzbekistan  or  who  have 
arrived  on the territory of  the Republic of Uzbekistan  from  any such Member State. 

3.  The Cooperation  Council  shall examine what  other joint  efforts  can  be made to  prevent and 

control illegal immigration. 

36 

T I T LE  IX 

CULTURAL  COOPERATION 

ARTICLE  73 

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. 

37 

TITLE X 

FINANCIAL  COOPERATION 

ARTICLE 74 

In order  to  achieve the objectives  of this  Agreement  and  in accordance  with  Articles  75, 76  and 
77  the  Republic  of  Uzbekistan  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 Uzbekistan. 

ARTICLE  75 

This  financial  assistance  shall  be  covered  within  the  framework  of  Tacis  as  foreseen  in  the 
Community's relevant Council Regulation. 

ARTICLE 76 

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 Uzbekistan's needs, sectoral  absorption  capacities 
and progress with reform.  The Parties shall inform  the Cooperation  Council thereof. 

ARTICLE 77 

In  order  to  permit  optimum  use  of  the  resources  available,  the  Parties  shall  ensure  that 
Community  technical  assistance  contributions  are  made  in  close  coordination  with  those  from 
other sources such as the Member  States, other  countries, and international  organizations such as 
the  International  Bank  for  Reconstruction  and  Development  and  the  European  Bank  for 
Reconstruction  and Development. 

38 

TITLE XI 

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS 

ARTICLE 78 

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 this 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 Parties. 

ARTICLE 79 

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 Uzbekistan, 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 
Uzbekistan. 

ARTICLE 80 

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  Uzbekistan  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 Uzbekistan. 

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

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

which will ensure continuity between meetings of the Cooperation Council. 

39 

( 

^—7/S 

ARTICLE  81 

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. 

ARTICLE  82 

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

ARTICLE  83 

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

ARTICLE  84 

1. 

The  Parliamentary  Cooperation  Committee  shall  consist  of  members  of  the  European 
Parliament,  on  the one hand,  and  of members  of the Uzbek  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  Uzbek  Parliament  respectively,  in  accordance  with  the  provisions  to  be 
laid  down  in its  rules  of  procedure. 

ARTICLE  85 

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. 

40 

A R T I C LE  86 

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  and  competences,  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 the Republic  of  Uzbekistan; 

-  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  10 June  1958. 

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

A R T I C LE  87 

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

security  interests; 

(b)  which  relate  to  the  production  of,  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. 

41 

/ 

/V 

'  ^ > /' 
/ 

ARTICLE  88 

1. 

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

contained therein. 

-  the arrangements applied by the Republic of Uzbekistan  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 Uzbekistan  shall not 

give rise to any discrimination between  Uzbek nationals, or its companies or  firms. 

2.  The provisions of paragraph  1 are without  prejudice  to  the right of the Parties  to  apply the 
relevant provisions of their fiscal  legislation  to tax  payers who are not  in identical  situations 
as regards their place of residence. 

ARTICLE 89 

1.  Each  of  the  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 a 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 conciliators' recommendations  shall be taken  by majority  vote.  Such  recommendations  shall 
not be binding upon the Parties. 

ARTICLE 90 

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, 89 
and 95. 

42 

ARTICLE  91 

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

ARTICLE 92 

For the purposes of this Agreement,  the term  "Parties" shall  mean the Republic of Uzbekistan  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 93 

Insofar  as  matters  covered  by  this  Agreement  are  covered  by  the  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 is provided for therein. 

ARTICLE  94 

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

ARTICLE 95 

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

2. 

If  either  Party  considers  that  the  other  Party  has  failed  to  fulfil  an  obligation  under  this 
Agreement,  it  may take  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 this Agreement.  These measures  shall be notified  immediately  to  the  Cooperation 
Council if the other Party so requests. 

ARTICLE  96 

Annexes I,  II,  III,  IV  and  V  together  with  the  Protocol  shall  form  an  integral  part  of  this 
Agreement. 

43 

ARTICLE  97 

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 Uzbekistan,  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  falling  within their  competence. 

ARTICLE  98 

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

ARTICLE  99 

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

ARTICLE  100 

The  original  of  this  Agreement,  of  which  the  Danish,  Dutch,  English,  Finnish,  French,  German, 
Greek,  Italian,  Portuguese,  Spanish,  Swedish  and  Uzbek  languages  are  equally  authentic,  shall  be 
deposited  with  the  Secretary-General  of the Council  of the European  Union. 

ARTICLE  101 

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  the  Secretary-General  of  the  Council  of  the  European  Union  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  Uzbekistan  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 

44 

ARTICLE  102 

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  1996  by 
means  of  an  Interim  Agreement  between  the  Community  and  the  Republic  of  Uzbekistan,  the 
Parties  agree  that,  in  such  circumstances,  the  term  "date  of  entry  into  force  of  this  Agreement" 
shall mean the date of entry into force  of the Interim  Agreement. 

45 

LIST  OF  DOCUMENTS  ATTACHED 

Annex I 

Indicative list of advantages granted  by the Republic of Uzbekistan  to the 

Independent  States in accordance with  Article 8(3) 

Annex II 

Community reservations in accordance with Article 22(2). 

Annex III  Uzbekistan reservations in accordance with Article 22(4) 
Annex IV 

Financial services, referred  to in Article 25(3). 

Annex V 

Intellectual, industrial and commercial  property conventions referred  to in Article 
41. 

Protocol on mutual assistance between administrative authorities in customs matters. 

v 

^ 

46 

ANNEX  I 

INDICATIVE  LIST OF ADVANTAGES  GRANTED  BY THE  REPUBLIC OF  UZBEKISTAN  TO 
THE  INDEPENDENT  STATES  IN ACCORDANCE  WITH ARTICLE  8(3) 

Advantages  are  accorded  to those  Independent  States  which are  parry to the agreement  on  establishing  a 
free trade zone and with which free trade agreements with  Uzbekistan have been signed. 

In respect of Belarus, Georgia,  Kazakhstan,  Kyrgyzstan,  Moldova, the Russian  Federation,  Turkmenistan 
and Ukraine: 

1. 

Import/export taxation 

No import duties are levied. 
No  export  duties  levied  regarding  goods  supplied  in  accordance  with  intergovernmental  or  credit 
agreements,  within  quantitative  limits  set  by  the  Government  of  Uzbekistan  in  the  light  of  national 
requirements. 

No  VAT  or  excise  duties  are  applied  to  trade  which  takes  place  within  the  context  of  cooperation 
agreements. 

2.  Allocation of quotas and licensing procedures 

Export  quotas  for  deliveries  of  Uzbek  products  under  annual  bilateral  interstate  trade  and  cooperation 
agreements are opened in the same way as for  "deliveries for state needs". 

3. 

Conditions of transportation  and  transit 

As regards  Parties to the Multilateral  Agreement  "on the principles and conditions  of relations  in the  field 
of transport" and/or  on  the  basis  of  bilateral  arrangements  on  transportation  and  transit,  no taxes  or  fees 
are applied on a  reciprocal  basis  for  the transportation  and  customs  clearing of goods  (including goods  in 
transit) and transit of vehicles. 

4. 

Communication  services  including postal,  courier,  telecommunication,  audio-visual  and  other  types 
of communication  services. 

5.  Access to information  svstcms and  databases 

In  respect  of  the  Russian  Federation.  Ukraine,  Belarus,  Kazakhstan:  Payments  may  be  made  in  the 
national currencies of these countries. 

In respect of Kazakhstan.  Kyrgyzstan: 
Simplified  system of customs procedure. 

47 

. 

/ 

C O M M U N I TY  RESERVATIONS  IN  A C C O R D A N CE  WITH  A R T I C LE  22(2) 

ANNEX  II 

Mining 

In  some Member  States,  a concession  may be required  for  mining and  mineral  rights  for 
non-Community  controlled  companies.s 

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 
Community  territory  unless otherwise  provided  for. 

Real  estate  purchase 

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

Audio-visual  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 

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

Professional  services 

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

Agriculture 

In some Member  States  national  treatment  is not  applicable  to  non-Community  controlled 
companies  which  wish  to  undertake  an  agricultural  enterprise.  The acquisition  of vineyards  by 
non-Community  controlled  companies  is subject  to  notification,  or,  as necessary,  authorization. 

News  agency  services 

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

4« 

,  ^ ,-
v- 

// 

ANNEX  III 

UZBEKISTAN  RESERVATIONS  IN  ACCORDANCE  WITH  ARTICLE  22(4) 

Under current  Uzbekistan  investment  law,  foreign  companies  wishing  to  establish  in 
Uzbekistan  are required  to register at the Ministiy  of Justice  and  to  provide  documentation 
demonstrating that they have been duly  registered  in their  home  country  and  are  financially 
solvent. 

This registration  procedure may not be used  in order to nullity the benefits  accorded  to 
Community companies pursuant to  Article 22  of this Agreement,  nor  to  circumvent  any  other 
provisions of this Agreement. 

49 

/ 

/ 
;  ,y  r  /  -

FINANCIAL  SERVICES  R E F E R R ED  TO  IN  A R T I C LE  25(3) 

ANNEX  IV 

A financial  service  is any service  of a financial  nature  offered  by a financial  service  provider  of a 
Party.  Financial  services include the following  activities: 

A financial  service is any  service  of a financial  nature  offered  by a financial  service  provider  of a 
party.  Financial  services include the following  activities: 

A.  All insurance and  insurance-related  services; 

1.  Direct  insurance  (including  co-insurance), 

(i) 
(ii) 

life 
non-life 

2.  Reinsurance  and  retrocession. 
3. 
4.  Services auxiliary  to  insurance,  such  as consultancy,  actuarial,  risk  assessment  and 

Insurance  intermediation,  such  as brokerage  and  agency. 

claim  settlement  services. 

B.  Banking  and  other  financial  services  (excluding  insurance). 

1.  Acceptance  of deposits  and  other  repayable  funds  from  the public. 
2.  Lending  of all types,  including,  inter-alia,  consumer  credit,  mortgage  credit, 

factoring  and  financing  of commercial  transaction. 

3.  Financial  leasing. 
4.  All payment  and  money  transmission  services,  including  credit  charge  and  debit 

cards,  travellers  cheques  and  bankers  drafts. 

5.  Guarantees  and  commitments. 
6.  Trading  for  own  account  or  for  the account  of customers,  whether  on  an 
exchange,  in an  over  the  counter  market  or  otherwise,  the  following: 
(a) 
(b) 
(c) 
(d) 

money  market  instruments  (cheques,  bills, certificates  of deposits,  etc.) 
foreign  exchange 
derivative  products  including,  but  not  limited  to, futures  and  options 
exchange  rates  and  interest  rate  instruments,  including  products  such  as 
swaps,  forward  rate  agreements,  etc. 
transferable  securities 
other  negotiable  instruments  and  financial  assets,  including  bullion. 
7.  Participation  in issues  of all  kinds of securities,  including  under-writing  and 
placement  as agent  (whether  publicly  or  privately)  and  provision  of  services 
related  to  such  issues. 

(e) 
(f) 

8.  Money  brokering. 
9  Asset, management,  such  as cash  or  portfolio  management,  all forms  of  collective 

investment  management,  pension  fund  management,  custodial  depository  and  trust 
services. 

10.  Settlement  and  clearing  services  for  financial  assets,  including  securities,  derivative 

products,  and  other  negotiable  instruments. 

11  Advisory  intermediation  and  other  auxiliary  financial  services on all the  activities 
listed  in points  1  to  10 above,  including  credit  reference  and  analysis,  investment 

50 

12  Provision and transfer of financial  information,  and financial  data processing and 

related software by providers of other financial  services. 

The following activities are excluded from the definition  of financial services. 

(a)  Activities carried out by central banks or by any other public institution in pursuit of 

monetary and exchange rate policies. 

(b) Activities conducted by central banks, government agencies or departments, or public 

institutions, for the account or with the guarantee of the government, except when those 
activities may be carried out by financial service providers in competition with such public 
entities. 

(c)  Activities forming part of a statutory system of social security or public retirement plans, 

except when those activities may be carried out by financial service providers in 
competition with public entities or private institutions. 

50 (<0 

'  " " >" 

ANNEX  V 

Intellectual,  industrial  and  commercial  property  conventions 
referred  to  in  Article  41 

1. 

Article 41(2)  concerns  the  following  multilateral  conventions. 

- 

- 

- 

- 

- 

- 

Berne  Convention  for  the Protection  of Literary  and  Artistic  Works 
(Paris Act,  1971); 
International  Convention  for  the Protection  of Performers,  Producers  of 
Phonograms  and  Broadcasting  Organizations  (Rome,  1961); 
Protocol  relating to  the Madrid  Agreement  concerning the  International 
Registration  of Marks  (Madrid,  1989); 
Nice  Agreement  concerning  the  International  Classification  of Goods  and 
Services 
for  the  purposes  of the  Registration  of Marks  (Geneva  1977 and  amended 
in  1979); 
Budapest  Treaty  on  the  International  Recognition  of the Deposit  of 
Micro  Organisms  for  the  purposes  of Patent  Procedures  (1977,  modified  in  1980), 
International  Convention  for  the Protection  of New  Varieties  of Plants 
(UPOV)  (Geneva  Act,  1991); 

2. 

The Cooperation  Council  may  recommend  that  Article 41(2)  shall  apply to  other  multilateral 
conventions.  If problems  in the  area  of intellectual,  industrial  and  commercial  property 
affecting  trading  conditions  were  to  occur,  urgent  consultations  will 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 from  the  following 
multilateral  conventions. 

- 

- 

- 

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  in  1979 and  modified 
in  1984). 

4. 

5. 

From  the  entry  into  force  of this  Agreement,  the Republic  of Uzbekistan  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. 

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

51 

PROTOCOL 

ON MUTUAL  ASSISTANCE 

BETWEEN ADMINISTRATIVE  AUTHORITIES 

IN CUSTOMS  MATTERS 

52 

ARTICLE I 

Definitions 

For the purposes of this Protocol : 

a)  "customs  legislation"  shall  mean  any  legal  or  regulatory  provisions  applicable  in  the 
territory of the Parties governing the import, export, transit of goods and their placing under 
any customs procedure, including measures of prohibition, restriction and control; 

b)  "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; 

c)  "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; 

d)  "personal  data",  shall  mean  all  information  relating  to  an  identified  or  identifiable 

individual. 

ARTICLE 2 

Scope 

1.  The Parties shall  assist  each  other,  in the  areas within their jurisdiction,  in the  manner and 
under the conditions  laid  down  in this  Protocol,  in preventing,  detecting  and  investigating 
operations in breach of customs legislation. 

2  Assistance  in  customs  matters,  as  provided  for  in  this  Protocol,  shall  apply  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 
authorities, 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  which  may  enable  it  to  ensure  that  customs  legislation  is  correctly 
applied, including information  regarding operations noted or planned  which are or could be 
in breach of such legislation. 

/ 

53 

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 

At the request  of the applicant  authority,  the  requested  authority  shall, within  the  framework 
of its laws, take the necessary steps to ensure that  a special watch is kept on : 

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

breaching or have breached the customs legislation of the Parties; 

(b)  places  where  goods  are  stored  in  a  way  that  gives  grounds  for  suspecting  that  they  are 

intended to supply operations in breach of customs legislation; 

(c)  movements of goods notified  as possibly giving rise to breaches of customs legislation; 
(d) means  of transport  for  which  there  are  reasonable  grounds  for  believing  that  they  have 

been, are or might be used in operations in breach of customs legislation. 

ARTICLE  4 

Spontaneous  assistance 

The  Parties  shall  provide  each  other,  as  far  as  their  national  laws,  rules  and  other  legal 
instruments  allow,  with  assistance  without  prior  request  if they consider  that  to  be  necessary  for 
information 
the  correct  application  of  customs  legislation,  particularly  when  they  obtain 
pertaining to : 

operations which are or appear to be in breach of such legislation and which may be of 
interest to another Party; 
new means or methods employed  in carrying out  such operations; 

-  goods known to be subject  to breaches of customs  legislation. 
-  natural or legal persons of whom there are reasonable grounds for believing that they are 

or have been in breach of customs  legislation 
means of transport  for which there are reasonable grounds for believing that they have 
been, are or might be used  in operations  in breach 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 cases, Article 6(3) shall apply as far as the request  itself is concerned. 

54 

// 

A R T I C LE  6 

Form  and  substance  of  requests  for  assistance 

1  Requests  pursuant  to  this  Protocol  shall  be  made  in  writing.  They  shall  be  accompanied  by 
the  documents  necessary  to  enable  compliance  with  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  : 

(a)  the applicant  authority  making  the  request; 
(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  who 

are 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  that  authority. 

4. 

If  a  request  does  not  meet  the  formal  requirements,  its  correction  or  completion  may  be 
requested;  precautionary  measures  may,  however,  be  ordered. 

A R T I C LE  7 

Execution  of  requests 

1 

In order  to  comply  with  a request  for  assistance,  the  requested  authority  shall  proceed,  within 
the  limits  of  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.  This  provision  shall  also  apply  to  the  administrative  department  to  which  the 
request  has been  addressed  by the  requested  authority  when  the latter  cannot  act  on  its  own. 

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

instruments  of the requested  Party. 

3.  Duly  authorized  officials  of  a  Party  may,  with  the  agreement  of the  other  Party  involved  and 
subject  to  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  operations  which  are  or  may  be  in  breach  of  customs  legislation  which  the 
applicant  authority  needs  for  the  purposes  of this  Protocol. 

55 

Officials  of  a  Party  may,  with  the  agreement  of  the  other  Party  involved  and  subject  to  the 
conditions  laid  down  by  the  latter,  be  present  at  enquiries  carried  out  in  the  latter's  territory. 
They  shall  not  wear  uniform  nor  carry  arms. 

A R T I C LE  8 

Form  in  which  information  is  to  be  communicated 

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. 

A R T I C LE  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 

would: 

(a)  be likely to  prejudice  the  sovereignty  of the  Republic  of Uzbekistan  or that  of a  Member 
State  of the European  Union  which  has been  asked  for  assistance under  this Protocol;  or 

(b)  be likely to  prejudice  public policy,  security  or  other  essential  interests,  in particular  in  the 

cases referred  to  under  Article  10 (2);  or 

(c)  involve currency  or tax  regulations  other  than  customs  legislation;  or 
(d)  violate an  industrial,  commercial  or  professional  secret. 

2.  Where the applicant  authority  requests  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 refused,  the  decision  and  the  reasons  therefor  must  be  notified  to  the  applicant 
authority  without  delay. 

A R T I C LE  10 

Information  exchange  and  confidentiality 

1.  Any  information  communicated  in  whatsoever  form  pursuant  to  this  Protocol  shall  be  of  a 
confidential  or  restricted  nature,  depending  on  the  rules  applicable  in  each  of  the  Parties.  It 
shall  be  covered  by the  obligation  of  official  secrecy  and  shall  enjoy  the  protection  extended 
the 
to  like  information  under 
corresponding  provisions  applying  to  the  Community  institutions. 

laws  of  the  Party  which  received 

the  relevant 

it  and 

2.  Personal  data  may  be  exchanged  only  where  the  receiving  Party  undertakes  to  protect  such 
data  in  at  least  an  equivalent  way  to  the  one  applicable  to  that  particular  case  in  the 

56 

supplying Party. 

3 

Information obtained shall be used solely for the purposes of this Protocol.  Where one of the 
Parties  requests  the  use  of  such  information  for  other  purposes,  it  shall  ask  for  the  prior 
written  consent  of  the  authority  which  furnished  the  information.  Moreover,  it  shall  be 
subject to any restrictions laid down by that authority. 

4.  Paragraph  3  shall  not  impede  the  use  of  information  in  any  judicial  or  administrative 
proceedings  subsequently  instituted  for  failure  to  comply  with  customs  legislation.  The 
competent authority which supplied that information shall be notified of such use. 

5.  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  11 

Experts and  witnesses 

1. An official  of a requested  authority may be authorized  to appear, within the limitations of the 
authorization granted, as an expert or witness in judicial  or administrative proceedings regarding 
the  matters  covered  by  this  Protocol  in  the jurisdiction  of  the  other  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. 

2.  The authorized  official  shall enjoy the protection  guaranteed  by existing  legislation  to  officials 
of the applicant authority on its territory. 

ARTICLE  12 

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 public service employees. 

57 

/' 

ARTICLE  13 

Application 

The  application  of this  Protocol  shall  be  entrusted  to  the  central  customs  authorities  of  the 
Republic of Uzbekistan,  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, on the other. They shall decide on  all practical  measures and arrangements necessary 
for  its application, taking into consideration  the rules in force  in the field of data  protection. 
They may recommend  to  the competent  bodies  amendments which  they consider  should  be 
made to this Protocol. 

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  14 

Complementarity 

Without prejudice to Article  10, any agreements on  mutual  assistance which have been  concluded 
between  one  or  more  Member  States  and  the  Republic  of  Uzbekistan  shall  not  prejudice 
Community  provisions  governing  the  communication  between  the  competent  services  of  the 
Commission  of the European  Communities  and  the  customs  authorities  of the Member  States  of 
any information  obtained  in customs matters which could be of Community  interest. 

58 

/ 

J O I NT  DECLARATION 

In  applying  the  agreement,  the  parties  are  aware  of  the  necessity  of  an  adequate  protection  of 
individuals with  regard  to  the  processing  of personal  data  and  on the  free  movement  of such  data. 

59 

JOINT  DECLARATION 
IN RELATION  TO  ARTICLE  5 

Should the Parties agree that  circumstances  warrant  meetings  at the highest  level,  such  meetings 
may be arranged  on an ad hoc basis. 

60 

JOINT  DECLARATION 
CONCERNING  TITLE III 

All references to the GATT are to the text of the GATT as modified in 1994. 

61 

JOINT  DECLARATION 
CONCERNING  ARTICLE 14 

Until the Republic of Uzbekistan accedes to the WTO, the Parties shall  hold consultations  in the 
Cooperation Committee on their import  tariff policies,  including changes in tariff protection.  In 
particular, such consultations shall be offered  prior to the increase of tariff protection. 

62 

• 

^ 

/ 

JOINT  DECLARATION 
CONCERNING  THE NOTION  OF "CONTROL" 
IN ARTICLE 24(b) AND ARTICLE 35 

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

63 

JOINT  DECLARATION 
CONCERNING  ARTICLE 34 

The sole fact of requiring a visa for natural persons of certain Parties and not for those of others 
shall not be regarded as nullifying or impairing benefits under a specific commitment. 

64 

JOINT  DECLARATION 
CONCERNING  ARTICLE 41 

The Parties agree that for the purpose of the Agreement, intellectual, industrial and commercial 
property includes in particular copyright, including the copyright in computer programs, and 
neighbouring rights, the rights relating to patents, industrial designs, geographical indications, 
including appellations of origin, 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 of Industrial Property and protection of undisclosed information on 
know-how. 

65 

// 

JOINT  DECLARATION 
CONCERNING  ARTICLE 95 

1.  The Parties agree, for the purpose of its correct  interpretation and its practical application, 
that the term "cases of special urgency" included in Article 95 of the Agreement means 
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. 

2.  The parties agree that the "appropriate measures" referred to in Article 95 are measures 
taken in accordance with international law.  If a party takes a measure in a case of special 
urgency as provided for under Article 95, the other party may avail itself of the procedure 
relating to settlement of dispute. 

66 

EXCHANGE OF  LETTERS 

BETWEEN THE  COMMUNITY 

AND THE REPUBLIC OF UZBEKISTAN 

IN RELATION TO THE ESTABLISHMENT  OF COMPANIES 

67 

A. Letter  from  the Government  of the Republic  of  Uzbekistan 

Dear Sir, 

I refer  to the Partnership and Cooperation  Agreement  initialled on 

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

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 Uzbekistan shall not adopt measures or regulations which would introduce or worsen 
discrimination of Community companies vis-à-vis Uzbek 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 would  acknowledge  receipt  of this letter. 

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

For the Government  of the Republic of Uzbekistan 

68 

B.  Letter from  the European  Community 

Dear Sir, 

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

"I refer to the Partnership and Cooperation Agreement initialled on 

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

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 Uzbekistan shall not adopt measures or regulations which would introduce or worsen 
discrimination of Community companies vis-à-vis Uzbek 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 would acknowledge receipt of this letter." 

I acknowledge receipt of the letter. 

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

On behalf of the European Community 

z? 

69 

?«'<:*::. 

DECLARATION 
BY THE FRENCH  GOVERNMENT 

The French Republic notes that the Partnership and Cooperation Agreement with the Republic of 
Uzbekistan does not apply to the overseas countries and territories associated with the European 
Community pursuant to the Treaty establishing the European Community. 

70 

ISSN 0254-1475 

COM(96) 254 final 

DOCUMENTS 

EN 

11 

Catalogue number  : CB-CO-96-273-EN-C 

ISBN 92-78-05281-7 

Office  for Official  Publications  of the European Communities 

L-2985 Luxembourg