Draft COMMISSION DECISION CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL AND STEEL COMMUNITY AND EURATOM OF THE INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND GEORGIA, OF THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS
Date: 1996-07-10
Institutions: European Commission
Subjects: Georgia, customs cooperation, interim agreement (EU), trade agreement (EU), trade cooperation

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  10.07.1996 
COM(96)  322  final 

96/0180  (ACC) 

Proposal  for a 

COUNCIL DECISION 
ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE 
INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE 
EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN 
ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND GEORGIA, OF 
THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS 

(presented by the Commission) 

Draft 

COMMISSION DECISION 

CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL 
AND STEEL COMMUNITY AND EURATOM OF THE INTERIM 
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN 
COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY 
COMMUNITY, OF THE ONE PART, AND GEORGIA, OF THE OTHER PART, 
ON TRADE AND TRADE-RELATED MATTERS 

Explanatory  memorandum 

1.  The attached  proposals for Decisions constitute the legal instrument  for  the conclusion 
of  the  Interim  Agreement  between  the  European  Community,  the  European  Atomic 
Energy  Community  and the  European  Coal  and  Steel  Community,  on  the  one  hand, 
and Georgia, on the other. 

2.  Pending  ratification  of  the  Partnership  and  Cooperation  Agreement  with  Georgia, 
signed  in Luxembourg  on 22 April  1996, the Commission  has, in accordance  with  the 
negotiating  directives  adopted  by the  Council  on  18 July  1994,  negotiated  an Interim 
Agreement with Georgia. 

3.  The  Interim  Agreement  providing  for  provisional  implementation  of  the  part  of  the 
Partnership  and  Cooperation  Agreement  on  trade  and  trade-related  measures  was 
initialed  in Brussels on  10 May  1996, and will be concluded  for  the period  ending with 
the entry into force of the Partnership and Cooperation  Agreement. 

4.  The  Interim  Agreement  replaces,  as  far  as  Georgia  is  concerned,  the  relevant 
provisions  of  the  Agreement  on  Trade  and  Commercial  and  Economic  Cooperation 
signed  on  18 December  1989  between  the  European  Economic  Community  and  the 
European  Atomic  Energy  Community,  of the  one  part,  and  Union  of  Soviet  Socialist 
Republics, of the other part. 

5.  The procedures  for  signing  and  concluding  the  Agreement  differ  between  the EC,  the 

ECSC and Euratom. 

The Agreement will be concluded  as follows : 

-  the  Council,  will  conclude  the  Agreement  on  behalf  of  the  European  Community 
under Article  113, in conjunction  with  Article 228 (2), first  sentence  of the EC  Treaty 
by adopting the Decision contained in Annex I; 

- the Commission will conclude the Agreement  on behalf of the ECSC by adopting the 
Decision contained in Annex II in accordance with Article 95 of the ECSC Treaty, with 
the  unanimous  assent  of  the  Council  and  following  consultation  of  the  Consultative 
Committee; 

-  the  Commission  will  conclude  the  Agreement  on  behalf  of  the  European  Atomic 
Energy Community by adopting the Decision contained in Annex II. 

6.  The  Commission  accordingly  requests the  Council to  adopt  the  proposal  contained  in 

Annex I and to give its assent and approval to the decision under Annex II. 

z 

ANNEX I 

Proposal  for  a  Council  Decision  concerning  the  conclusion  by  the  European 
Community  of  the  Interim  Agreement  between  the  European  Community,  the 
European  Coal  and  Steel  Community  and  the  European  Atomic  Energy 
Community,  of  the  one  part,  and  Georgia,  of  the  other  part,  on  trade  and  trade-
related matters. 

3 

Proposal  for 

COUNCIL DECISION 

OF 

ON THE CONCLUSION BY THE EUROPEAN COMMUNITY  OF THE 

INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE 
EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN 
ATOMIC ENERGY COMMUNITY, OF THE ONE PART, 

AND GEORGIA, OF THE OTHER PART, 
ON TRADE  AND TRADE-RELATED  MATTERS 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from  the Commission, 

Whereas,  pending  the  entry  into  force  of  the  Partnership  and  Cooperation  Agreement 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
Georgia,  of  the  other  part,  signed  in  Luxembourg  on  22  April  1996,  it  is  necessary  to 
approve  on  behalf  of  the  European  Community,  the  Interim  Agreement  on  trade  and 
trade-related  matters  between  the  European  Community,  the  European  Coal  and  Steel 
Community  and the European  Atomic Energy  Community,  of the one  part,  and  Georgia, 
of the other part, 

HAS DECIDED AS FOLLOWS : 

Article 1 

The  Interim  Agreement  on  trade  and  trade-related  matters  between  the  European 
Community,  the European  Coal  and  Steel  Community  and  the European  Atomic  Energy 
Community, of the one part, and Georgia, of the other part, together with its Annexes, the 
Protocol  and  the  declarations,  are  hereby  approved  on 
behalf  of  the  European 
Community. 

These texts are attached to this Decision. 

Article 2 

The President of the Council is hereby authorised to designate the persons empowered to 
sign the Interim Agreement. 

Article 3 

The President  of the  Council  shall  give the  notification  provided  for  in  Article  32  of the 
Interim Agreement on behalf of the European Community. 

Done at Brussels, 

«4 

ANNEX H 

Draft  Commission  Decision  concerning  the  conclusion  on  behalf  of  the  European 
Coal  and  Steel  Community  and  of Euratom  of the Interim  Agreement  between  the 
European Community, the European Coal and  Steel Community  and  the European 
Atomic  Energy  Community,  of  the  one  part,  and  Georgia,  of  the  other  part,  on 
trade and trade-related matters. 

Draft 

COMMISSION DECISION 

OF 

CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN  COAL 
AND STEEL COMMUNITY AND EURATOM OF THE INTERIM 
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN 
COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY 
COMMUNITY,  OF THE ONE PART, AND GEORGIA, OF THE OTHER PART, 
ON TRADE AND TRADE-RELATED  MATTERS 

THE EUROPEAN  COMMISSION, 

(../.../ECSC/EAEC) 

Having regard to the Treaty establishing the European  Coal and  Steel Community,  and in 
particular the first paragraph of Article 95 thereof, 

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

Whereas,  pending  the  entry  into  force  of  the  Partnership  and  Cooperation  Agreement 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
Georgia  of  the  other  part,  signed  in  Luxembourg  on  22  April  1996,  it  is  necessary  to 
approve  the  Interim  Agreement  between  the  European  Community,  the  European  Coal 
and  Steel Community  and the European  Atomic Energy Community,  of the one part,  and 
Georgia, of the other part, on trade and trade-related matters initialled on  10 May  1996, 

Whereas the conclusion  of the Interim  Agreement is necessary  to  attain the  objectives  of 
the  Community  set  out  in  particular  in  Articles  2  and  3  of  the  Treaty  establishing  the 
European  Coal  and  Steel  Community  and whereas the Treaty  did  not  make provision  for 
all the cases covered by this Decision; 

Having  consulted  the  Consultative  Committee  and  with  the  assent  and  approval  of  the 
Council, 

HAS DECIDED AS FOLLOWS : 

Article 1 

The  Interim  Agreement  between  European  Community,  the  European  Coal  and  Steel 
Community  and the European  Atomic Energy Community,  of the one part,  and  Georgia, 
of the  other  part,  on  trade  and  trade-related  matters,  together  with  the  its  Annexes,  the 
Protocol  and the declarations, are hereby approved  on  behalf of the European  Coal  and 
Steel Community and of Euratom. 

These texts are attached to this Decision. 

10 

C 

Article 2 

The President of the Commission  shall give the notification  provided  for  in Article 32  of 
the  Interim  Agreement  on  behalf  of  the  European  Coal  and  Steel  Community  and  the 
European Atomic Energy Community. 

Done at Brussels, 

11 

9-

FINAL ACT 

The plenipotentiaries of 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 plenipotentiaries of GEORGIA, of the other part, 

on 

meeting  at 
for  the  signature  of  the  Interim  Agreement  on  trade  and 
trade-related  matters  between  the  European  Community,  the  European  Coal  and  Steel 
Community  and the European  Atomic Energy  Community,  of the one  part,  and  Georgia, 
of the  other  part,  hereinafter  referred  to  as the  Agreement,  have  adopted  the  following 
texts : 

the Interim Agreement and the Protocol on mutual assistance in customs matters. 

The plenipotentiaries of the Community and the plenipotentiaries of Georgia have adopted 
the texts of the Joint declarations listed below and annexed to this Final Act : 

Joint Declaration concerning Title II of the Agreement 

Joint Declaration concerning Article 7 of the Agreement 

Joint Declaration concerning Article 8 of the Agreement 

Joint Declaration concerning Article  15 of the Agreement 

Joint Declaration concerning Article 28 of the Agreement 

The  plenipotentiaries  of the  Community  have taken  note  of the  declarations  listed  below 
and annexed to this Final Act : 

Declaration  by  Georgia  concerning 
commercial property rights. 

the  protection  of  intellectual, 

industrial  and 

Done at Brussels on 

For  the  European  Community,  the  European  Coal  and  Steel  Community  and  the 
European Atomic Energy Community 

For Georgia 

12 

INTERIM  AGREEMENT 

ON TRADE AND TRADE RELATED  MATTERS BETWEEN  THE 
EUROPEAN COMMUNITY, THE EUROPEAN COAL AND  STEEL 
COMMUNITY AND THE EUROPEAN  ATOMIC ENERGY  COMMUNITY 
OF THE ONE PART AND GEORGIA  OF THE  OTHER  PART 

The  EUROPEAN  COMMUNITY, 
the  EUROPEAN  COAL  AND  STEEL 
COfcBrfUNITY  AND  THE  EUROPEAN  ATOMIC  ENERGY  COMMUNITY, 
hereinafter  referred  to as "THE COMMUNITY" 

of the one part, 

and GEORGIA 

of the other part, 

Whereas  an  Agreement  on  Partnership  and  Cooperation  between  the  European 
Communities and their Member  States, of the one part and Georgia of the other part 
was signed on 22 April  1996; 

Whereas the aim of the Partnership  and Cooperation  Agreement  is to strengthen and 
widen the relations  established  previously,  notably  by the  Agreement  on  Trade  and 
Commercial  and  Economic  Cooperation  between 
the  European  Economic 
Community,  the  European  Atomic  Energy  Community  and  the  USSR  signed  on 
18 December  1989; 

Whereas it  is necessary  to  ensure  the  rapid  development  of trade relations  between 
the Parties; 

Whereas to this end it is necessary to implement as speedily as possible, by means of 
an Interim Agreement, the provisions of the Partnership  and Cooperation  Agreement 
concerning trade and trade-related  matters; 

Whereas the said  provisions  should,  accordingly,  replace the relevant  provisions  of 
the Trade and Commercial  and Economic Cooperation  Agreement; 

Whereas it is necessary to ensure that  pending the entry into force of the Partnership 
and Cooperation  Agreement  and  the establishment  of the Cooperation  Council,  the 
Joint  Committee  set  up  under  the  Agreement  on  Trade  and  Commercial  and 
Economic  Cooperation  may  exercise  the  powers  assigned  by  the  Partnership  and 
Cooperation Agreement to the Cooperation Council, which are necessary in order to 
implement the Interim Agreement; 

Have  decided  to  conclude  this  Agreement  and  to  this  end  have  designated  as  their 
plenipotentiaries: 

K&1 

lo 

r 
^ 

THE EUROPEAN COMMUNITY : 

THE EUROPEAN COAL AND STEEL COMMUNITY : 

THE EUROPEAN ATOMIC ENERGY COMMUNITY : 

GEORGIA : 

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

Haveargreed as follows : 

TITLE I : GENERAL PRINCIPLES 
IPCA Georgia : Title H 

Article 1 
IPCA Georgia  : Article 21 

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.  s 

TITLE n  : TRADE IN GOODS 
IPCA Georgia  : Title HI1 

Article 2 
IPCA Georgia : Article 91 

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

respect of : 

- customs duties and charges applied to imports and exports,  including the method of 

collecting such duties and charges; 

- provisions relating to customs clearance, transit, warehouses and transhipment; 

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

goods; 

- methods of payment and the transfer of such payments related to trade in goods; 

- the rules relating to the sale, purchase, transport, distribution and use of goods on the 

domestic market. 

v*0 

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 Georgia acceding to the WTO or on the 31.12.1998, whichever is earlier, to 
advantages defined in Annex I granted by Georgia to other states which have emerged 
from the dissolution of the USSR. 

Article 3 
fPCA Georgia : Article 101 

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

applicable between the Parties. 

3.  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 4 
IPCA Georgia : Article 111 

Without  prejudice  to  the  rights  and  obligations  stemming from international  conventions 
on  the  temporary  admission  of  goods  which  bind  both  Parties,  each  Party  shall 
furthermore  grant  the  other  Party  exemption  from  import  charges  and  duties  on  goods 
admitted  temporarily,  in the  instances  and  according to  the  procedures  stipulated  by any 
other  international  convention  on  this  matter  binding  upon  it,  in  conformity  with  its 
legislation. Account shall be taken of the conditions under which the obligations stemming 
from such a convention have been accepted by the Party in question. 

Article S 
IPCA Georgia : Article 121 

1.  Goods  originating  in  Georgia  shall  be  imported  into  the  Community  free 

of 
quantitative restrictions without  prejudice  to the provisions of Articles 7,  10 and  11 of 
this Agreement. 

* o* 

2.  Goods  originating  in  the  Community  shall  be  imported  into  Georgia  free  of  all 
quantitative  restrictions  and  measures  of  equivalent  effect,  without  prejudice  to  the 
provisions of Article 7 of this Agreement. 

v*"1 

">/ 

Article 6 
IPCA Georgia  : Article 131 

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

Article 7 
IPCA Georgia : Article 141 

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 Georgia, 
whichever  is  concerned,  may  take  appropriate  measures  in  accordance  with  the 
following procedures and conditions. 

2.  Before  taking  any  measures,  or  in  cases  to  which  paragraph  4  applies  as  soon  as 
possible thereafter,  the Community  or  Georgia as  the  case may be  shall  supply the 
Joint  Committee  with  all  relevant  information  with  a  view  to  seeking  a  solution 
acceptable to both Parties as provided for in Title IV. 

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

4.  In  critical  circumstances  where  delay  would  cause  damage  difficult 

to  repair,  the 
Parties  may  take  the  measures  before  the  consultations,  on  the  condition  that 
consultations shall  be offered immediately after taking such action. 

5.  In the selection  of measures under this Article, the 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 8 
fPCA Georgia  : Article 151 

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 Georgia to the World Trade Organisation.  The Joint Committee  referred 
to  in Article  17 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. 

4&^ 

it 

Article 9 
IPCA Georgia  : Article 161 

The  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 10 
IPCA Georgia  : Article 171 

This Title II 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  22  December  1995  and  applied  provisionally  since  1st  January 
1996. 

Article 11 
IPCA Georgia  : Article 181 

1.  Trade  in  products  covered  by  the  Treaty  establishing  the European  Coal  and 
Steel  Community  shall  be  governed  by  the  provisions  of  this  Title  II,  with  the 
exception of Article 5. 

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 Georgia 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 12 
IPCA Georgia  : Article 191 

Trade in nuclear materials will be conducted in accordance with the provisions of the 
Treaty establishing the European Atomic Energy Community.  If necessary, trade in 
nuclear materials  shall  be  subject to  the  provisions  of  a  specific  Agreement  to  be 
concluded between the European Atomic Energy Community and Georgia. 

v«#*~i 

? 

TITLE m  : 
PAYMENTS, COMPETITION  AND OTHER ECONOMIC  PROVISIONS 
IPCA Georgia  : Title IV1 

Article 13 
IPCA Georgia  : Article 41 (1)1 

The  Parties  undertake  to  authorize,  in  freely  convertible  currency,  any  current 
payments between residents of the Community  and of Georgia  connected  with the 
movement  of  goods,  made  in  accordance  with  the  provisions  of  the  present 
Agreement. 

» 

Article 14 
IPCA Georgia : Article 44 (2)1 

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. 

Article 15 
IPCA Georgia  : Article 42 (1)1 

Pursuant  to  the  provisions  of  this  Article  and  of  Annex  II,  Georgia  shall  continue  to 
improve the protection of intellectual,  industrial  and commercial  property rights in order 
to provide, by the end of the fifth year after the entry into force  of the Agreement,  for a 
level  of  protection  similar  to  that  provided  in  the  Community  by  Community  acts,  in 
particular the ones referred to in Annex II, including comparable means of enforcing such 
rights. 

Article 16 

Mutual  assistance  in  customs  matters  between  administrative  authorities  of  the 
Parties shall take place in accordance with the Protocol annexed to this Agreement. 

c^rv 

/I 

TITLE IV : INSTITUTIONAL. GENERAL AND FINAL  PROVISIONS 
IPCA Georgia: Title XII 

Article 17 

The  Joint  Committee  set  up  by  the  Agreement  on  Trade  and  Commercial  and 
Economic Cooperation signed between the European Economic Community and the 
USSR  on  18  December  1989  shall  perform  the  duties  assigned  to  it  by  this 
Agreement  until  the  Cooperation  Council  provided  for  in  Article  81  of  the 
Partnership and Cooperation Agreement is established. 

Article 18 

The  Joint  Committee  may,  for  the  purposes  of  attaining  the  objectives  of  the 
Agreement, make recommendations in the cases provided for therein. 

It shall draw up its recommendations by agreement between the Parties. 

Article 19 
IPCA Georgia  : Article 851 

When examining any issue arising within the framework  of this Agreement  in relation  to a 
provision  referring  to  an  article  of the  GATTAVTO,  the Joint  Committee  shall  take  into 
account  to  the  greatest  extent  possible  the  interpretation  that  is  generally  given  to  the 
article of the GATTAVTO in question by the members of the WTO. 

Article 20 
IPCA Georgia  ; Article 891 

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 
those  concerning 
defend  their  individual rights and their property rights, including 
intellectual, industrial  and commercial  property. 

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

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

- 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  10th June 1958. 

%  ^H 

7ç 

Article 21 
IPCA Georgia  : Article 901 

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

(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 technologies. 

Article 22 
IPCA Georgia  : Article 911 

1. 

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

-  the arrangements  applied  by  Georgia  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  Georgia  shall  not 
give  rise  to  any  discrimination  between  Georgian  nationals,  or  Georgian 
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 23 
IPCA Georgia  : Article 921 

1. Each  Party  may  refer  to  the  Joint  Committee  any  dispute  relating  to  the 

application or interpretation of this Agreement. 

2.  The Joint Committee 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, either Party may notify  the other of the appointment  of a conciliator; 
the other Party must then appoint a second conciliator within two months. 

The Joint Committee shall appoint a third  conciliator. 

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

4  The Joint Committee may establish rules of procedure for dispute settlement. 

^4K/\ 

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Article 24 
IPCA Georgia  : Article 931 

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 7, 23 and 28. 

Article 25 
IPCA Georgia  : Article 941 

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

Article 26 
IPCA Georgia  : Article 961 

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 27 

1.  This Agreement  shall  be  applicable  until  the  entry  into  force  of  the  Partnership 

and Cooperation  Agreement signed on 22 April  1996. 

2.  Either  Party  may  denounce  this  Agreement  by  notifying  the  other  Party.  This 
Agreement shall cease to apply six months after the date of such  notification. 

Article 28 
IPCA Georgia  : Article 981 

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

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

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

Article 29 
IPCA Georgia  : Article 991 

Annexes I and  II and the Protocol  on mutual assistance in customs  matters  between 
administrative authorities shall form an integral part of this Agreement. 

%-

Article 30 
IPCA Georgia : Article 1011 

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

Article 31 

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

Article 32 

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

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

Upon  its  entry  into force,  and as far as relations between  Georgia and the Community 
are concerned,  this Agreement  shall  replace Article 2,  Article 3,  except  for the fourth 
indent thereof, and Articles 4 to  16 of 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. 

LIST OF DOCUMENTS ATTACHED 

Annex I 

Indicative list of advantages granted by  Georgia to the 
Independent States in accordance with Article 2(3). 

Annex:II  Intellectual, industrial and commercial property conventions referred to in 

Article 15. 

Protocol on mutual assistance in customs matters between administrative authorities. 

\ **  un 

*fi 

ANNEX I 

Indicative list of advantages granted by Georgia to the Independent  States in 
accordance with Article 2, paragraph 3. 

1.  All Independent States -

No import duties are implemented. 
No VAT or excise duties are applied to imports. 

2.  All Independent States 

Special system of non-commercial operations, including payments resulting from these 
operations. 

\.-f {M 

& 

ANNEX  II 

Intellectual, Industrial  and  Commercial Property  conventions 
referred  to in Article  15 

Î  Community acts referred  to in Article  15. 

-  First Council Directive 89/104/EEC of 21 December  1988 to approximate the 

laws of the Member States relating to trade marks. 

^  Council Directive 87/54/EEC of 16 December  1986 on the legal protection of 

topographies of semi-conductor products. 

-  Council Directive 91/250/EBC of 14 May  1991 on the legal protection of 

computer programs. 

-  Council Regulation (EEC) No  1768/92 of 18 June  1992 concerning the 

creation of a supplementary protection certificate for medicinal products. 

-  Council Regulation (EEC) No 2081/92 of  14 July  1992 on the protection  of 

geographical indications and designations of origin for agricultural products and 
foodstuffs. 

-  Council Directive 93/83/EEC of 27 September  1993 on the coordination  of 

certain rules concerning copyright and rights related to copyright applicable to 
satellite broadcasting and cable retransmission. 

-  Council Directive 93/98/EEC of 29 October  1993 harmonizing the term of 

protection of copyright and certain related rights. 

-  Council  Directive 92/Î00/EEC of  19 November  1992 on rental right and 

lending right and on certain rights related to copyright in the field  of intellectual 
property. 

2.  If  problems  in  the  area  of  intellectual,  industrial  and  commercial  property  as 
addressed  in the above Community acts and  affecting  trading  conditions were  to 
occur,  urgent  consultations  will be undertaken,  at  the  request  of the .Community 
or Georgia, with a view to reaching mutually satisfactory solutions. 

\* 

2( 

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PROTOCOL 

ON MUTUAL ASSISTANCE 

BETWEEN ADMINISTRATIVE AUTHORITIES 

IN CUSTOMS MATTERS 

V s 4h^ 

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ARTICLE 1 

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. 

' o* 

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

% 

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) 

(b) 

natural  or legal persons of whom there are reasonable grounds  for  believing 
that they are breaching or have breached customs legislation; 
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  the correct  application  of customs legislation,  particularly  when they  obtain 
information  pertaining to : 

-  operations  which  are  or  appear  to  be  in breach  of  such  legislation  and  which 

may be of interest to the other 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 S 

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. 

7) 

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ARTICLE 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 shall include the following information : 

(a) 
(b) 
(c) 
(d) 
(e) 

the applicant authority making the request; 
the measure requested; 
the object of and the reason for the request; 
the laws, rules and other legal elements involved; 
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. 

ARTICLE 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. 

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4.  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 
tatter's territory. 

ARTICLE 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. 

ARTICLE 9 

Exceptions to the obligation to provide assistance 

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

do would: 

(a) 

be likely to  prejudice  the  sovereignty  of Georgia 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 
involve currency or tax regulations other than customs legislation; or 

(c) 
(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. 

ARTICLE 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  to  like  information  under  the  relevant  laws  of  the  Party  which 
received it and the corresponding provisions applying to the Community institutions. 

%jrn 

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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 supplying Party. 

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. 

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. 

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 

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. 

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. 

V 

& 

ARTICLE 13 

Application 

1.  The application of this Protocol  shall be entrusted to the central customs authorities 
of Georgia on the one hand and the competent services of the European Commission 
and,  where  appropriate,  the  customs  authorities  of  the  Member  States  of  the 
European  Union  on  the  other.  They  shall  decide  on  all  practical  measures  and 
arrangements necessary for its application, taking into consideration 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. 

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

ARTICLE 14 

Complementarity 

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

V> f^o 

JZ6 

JOINT DECLARATION  CONCERNING TITLE II 

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

%.<T* 

-  ; 2*1 

JOINT DECLARATION CONCERNING ARTICLE 7 

The Community  and  Georgia  declare that the text of the safeguard  clause does not  grant 
GATT safeguard  treatment. 

V 

V\ 

JOINT DECLARATION  CONCERNING ARTICLE 8 

Until  Georgia  accedes  to  the  WTO,  the  Parties  shall  hold  consultations  in  the  Joint 
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. 

V •v 

3/ 

- 2< 

JOINT DECLARATION  CONCERNING ARTICLE 15 

Within the limits of their respective competences,  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, 
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. 

industrial  designs,  geographical 

indications, 

I 

4L 

JOINT DECLARATION  CONCERNING ARTICLE 28 

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  28  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 1. 

2.  The  parties  agree  that  the  "appropriate  measures"  referred  to  in  Article  28  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  28,  the  other  party  may avail 
itself of the procedure relating to settlement of disputes. 

J3 
JZ 

Unilateral declaration  by Georgia concerning the protection of intellectual, 

industrial and commercial  property  rights 

Georgia declares that : 

1.  By  the  end  of  the fifth year after  entry  into  force  of the Agreement, Georgia 
on  intellectual,  industrial  and 
shall  accede  to  the  multilateral  conventions 
commercial  property rights referred  to 
in  Paragraph  2  of  this  declaration  to 
which  Member  States  of  the  Community  are  parties  or  which  are  de  facto 
applied by Member States according to the relevant provisions contained in these 
conventions. 

2.  Paragraph 1  of this declaration concerns the following multilateral  conventions: 

-  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, amended 
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). 

3  Georgia  confirm  the  importance  it  attaches  to  the  obligations  arising  from  the 

following multilateral conventions: 

-  Berne  Convention  for the Protection of Literary  and Artistic Works  (Paris 

Act, 1971); 

-  Paris Convention for the Protection of Industrial Property (Stockholm Act, 

1967 and amended in 1979); 

-  Madrid Agreement concerning the International Registration of Marks 

(Stockholm Act,  1967, and amended in 1979); 

-  Patent Cooperation Treaty (Washington  1970, amended and modified in 1979 

and 1984); 

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

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

-26 

KSN  0254-1475 

COM(96) 322  final 

DOCUMENTS 

11  §2 

Catalogue number  :  CB-C096-351-EN-C 

ISBN 92-78-06874-8 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg