Proposal for a COUNCIL REGULATION (EC) on the conclusion of an Agreement on Fisheries Relations between the European Community and the Republic of Lithuania
Date: 1996-07-18
Institutions: European Commission
Subjects: Baltic Sea, Lithuania, conservation of fish stocks, fishery management, fishing agreement

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  18.07.1996 
COM(96) 356 final 

96/0201 (CNS) 

Proposal  for  a 

COUNCIL REGULATION (EC) 

on the conclusion  of an Agreement on Fisheries Relations 
between  the European  Community  and the Republic of Lithuania 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

On 21-22 December  1995, the Commission  received a mandate to negotiate a new  fisheries 
agreement  with the Baltic  Coastal States. 

In accordance  with the negotiating  directives, an agreement  was negotiated  with  Lithuania, 
and initialled  on 24 June  1996. 

Reasons for a new  Agreement 

A practical argument to review the current Agreement is that, since the accession of Finland 
and Sweden to the European  Union on  1 January  1995, the Community  has been  managing 
in  parallel  the  Agreement  between  the  Community  and  Lithuania  (1993)  and  the fisheries 
Agreements  concluded  with  Lithuania  by  Sweden  (1993)  and  by  Finland  (1993).  These 
Agreements need  to be  amalgamated. 

The  new  Agreement-  comprises  all  the  elements  of  the  existing  Agreements:  balanced 
exchange of quotas, reciprocal access arrangements and the possibility for the Community to 
obtain from Lithuania fishing rights on surplus stocks in return for financial compensation. 

Other  elements  that  have  been  included  in the new Agreement  are, e.g.,  explicit  references 
to the rights of the  Parties to inspect each other's vessels, a settlement procedure in the case 
of an arrest of a vessel  and an  undertaking  to cooperate in international  organisations. 

To take account of the Europe Agreement that has been concluded with Lithuania, the Parties 
undertook to cooperate with the aim of establishing joint enterprises and joint ventures in the 
fisheries sector. For this purpose, Article 5 has been included and Protocol I implements the 
elements of the so-called  "second generation"  Agreements. 

On the  basis of the  above, the  Commission  proposes  that  the  Council,  after  consulting  the 
Parliament, should approve the new Agreement on Fisheries Relations between the European 
Community  and the Republic of Lithuania and Protocol  I. 

2. 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

on  the conclusion  of an Agreement  on Fisheries  Relations 
between  the European  Community  and  the Republic  of  Lithuania 

THE COUNCIL  OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community and in particular Article 43 
thereof in conjunction  with the first sentence of Article 228 (2) and the first subparagraph of 
Article 228 (3), 

Having  regard to the proposal from the Commission, 

Having  regard to the opinion of the Parliament, 

Whereas  the  European  Community  and  the  Republic  of  Lithuania  have  negotiated  and 
initialled  an Agreement  on Fisheries Relations; 

Whereas  it is in the interest  of the Community  to approve this Agreement, 

HAS ADOPTED THIS  REGULATION: 

Article 1 

The Agreement on Fisheries  Relations between the European  Community  and the  Republic 
of Lithuania is hereby approved on behalf of the Community. The texts of the Agreement and 
the  Protocol  laying  down  the  conditions  relating  to  temporary  joint  ventures  and  joint 
enterprises  are annexed  to this Regulation. 

Article 2 

The President of the Council is hereby authorised to designate the persons authorised to sign 
the Agreement  for  the purpose of committing the  Community. 

Article 3 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its  publication  in  the 
Official  Journal  of the European  Communities. 

This Regulation shall be binding in its entirely and directly applicable in all Member 
States. 

Done at Brussels, 

For the  Council 
The  President 

S 

AGREEMENT 
on  Fisheries  Relations  between  the European  Community 
and  the Republic of Lithuania 

THE EUROPEAN  COMMUNITY, 

hereinafter  referred  to as  "the Community", and 

THE REPUBLIC  OF  LITHUANIA, 

hereinafter  referred  to as  "Lithuania", 

hereinafter  referred  to as the "Parties", 

HAVING  REGARD  TO the  close  relations  between the Community  and  Lithuania,  and  in 
particular  those  established  under  the  Europe  Agreement  between  the  Community  and 
Lithuania,  and  the  Agreement  on  Fisheries  Relations  between  the  Community  and  the 
Republic of Lithuania, signed  in Brussels on  17 December  1993, and with a common desire 
to intensify  those relations; 

WHEREAS the Kingdom of Sweden and the Republic of Finland acceded to the Community 
on  1 January  1995; 

WHEREAS  the  fisheries  agreements  concluded  with  the  Government  of  the  Republic  of 
Lithuania by the Government of the Kingdom of Sweden on 25 November  1993, and by the 
Government of the Republic of Finland on 7 June 1993, are now managed by the Community; 

CONSIDERING the common desire to replace these fisheries agreements by a new agreement 
between  Lithuania  and the Community  as constituted  on  1 January  1995; 

CONSIDERING  the  common  desire  of the  Parties  to  ensure  the  conservation  and  rational 
management  of the fish stocks of the waters adjacent  to their coasts; 

HAVING REGARD to the provisions  of the United Nations  Convention  on the  Law of the 
Sea of  1982; 

AFFIRMING that the extension by coastal states of their areas of jurisdiction over the  fishery 
resources and the exercise within these areas of sovereign rights for the purpose of exploring, 
exploiting,  conserving  and  managing  these resources,  should  be conducted  pursuant  to  and 
in accordance with principles  of international  law; 

\ 

HAVING  REGARD  to the  fact  that Lithuania  has asserted fisheries jurisdiction  over  waters 
within  which  Lithuania  exercises  sovereign  rights  for  the  purpose  of  exploring,  exploiting, 
conserving  and  managing  the  resources  thereof  and that the  Community  has  agreed  that the 
limits of the fishery zones of its Member States (hereinafter  referred to as the area of fisheries 
jurisdiction  of  the  Community)  shall  extend  up  to  200  nautical  miles,  fishing  within  these 
limits  being  subject  to  the  Common  Fisheries  Policy  of  the  Community; 

CONSIDERING  that  a  part  of  the  fishery  resources  of  the  Baltic  Sea  consists  of  common 
stocks  or  highly  interrelated  stocks  exploited  by  fishermen  of  both  Parties,  and  that  an 
effective  conservation and rational management of these stocks can therefore only be achieved 
through cooperation between the Parties and in the appropriate international fora, in particular 
the  International  Baltic  Sea  Fisheries  Commission; 

CONSIDERING  the  results  of  the  United  Nations  Conference  on  Straddling  Stocks  and 
Highly  Migratory  Fish  Stocks,  as  well  as the  Code  of  Conduct  for Responsible  Fisheries; 

DESIROUS  to  continue  their  cooperation  in the framework of  the  appropriate  international 
fisheries  organizations  for  the  purposes  of  the joint  conservation,  rational  exploitation  and 
management  of  all  relevant fishery resources; 

CONSIDERING  the  said  cooperation  in  respect  of  the  conservation  and  management  of 
fishery  resources  and  exploration  and  fishing  of  these,  the  importance  of  scientific  research 
for the conservation,  rational  exploitation and management  of fishery resources  and desirous 
to  promote  further  cooperation  in this field; 

CONSIDERING  the interest of both Parties to fish in the area of fisheries jurisdiction of the 
other Party  in the  Baltic  Sea; 

RESOLVED  to  improve  cooperation  and  development  in  the  fishery  sector  through  the 
encouragement  of joint  enterprises  and  the  constitution  of 
joint  ventures 
between  fishing  companies; 

temporary 

CONVINCED  that  this  new  type  of  cooperation  in  the  fisheries  sector  will  stimulate  the 
renewal  and conversion  of the Lithuanian fleet  and the restructuring of the Community  fleet; 

DESIROUS to establish rules and regulations which create the basis for their mutual relations 
in  the  fisheries  industry  and  determine  the  direction  in  which  their  cooperation  should 
develop; 

HAVE  AGREED  AS  FOLLOWS: 

Article  1 

The  Parties  shall  cooperate  to  ensure  the  conservation  and  rational  management  of  the  fish 
stocks occurring within the areas of fisheries jurisdiction of both Parties and in adjacent areas. 
The Parties shall  seek either directly  or through the appropriate regional  bodies to agree with 
Third Parties on measures for the conservation and rational utilisation offish  stocks, including 
the  fixing  of  total  allowable  catches  and the allocations  thereof. 

Article  2 

Each  Party  shall  grant  access  to  fishing  vessels  of  the  other Party  to  fisli  within  its  area  of 
fisheries jurisdiction  in the Baltic  Sea, beyond twelve  nautical  miles from the baselines  from 
which  the  territorial  sea  is  measured,  in accordance  with  the provisions  set  out  below. 

Article  3 

1. 

Each  year,  each  Party  shall,  as  appropriate,  determine  for  the  relevant  areas  in  the 
Baltic  Sea under its fisheries jurisdiction and subject to adjustment when necessary to 
meet  unforeseen  circumstances: 

(a) 

(b) 

total  allowable  catches  for  individual  stocks and groups of  stocks, taking  into 
account  the  best  objective  scientific  advice  available,  the  interdependence  of 
stocks, the activities of relevant international organizations and other pertinent 
factors; 

after  appropriate  consultations,  allocations  of  catch quotas  for  fishing  vessels 
of the  other Party  in accordance  with the objective  of  establishing  a mutually 
satisfactory  balance  in their reciprocal  fisheries  relations; 

(c) 

decide  on  reciprocal  access  arrangements  in the  context  of joint  management 
schemes  for  common  stocks. 

2. 

Each Party  shall  establish  such other measures  which  it deems  to  be  required  for the 
conservation  or  restoration  of  fish  stocks  at  levels  which  can  produce  the  maximum 
sustainable  yield.  Any  such  measure  or  condition  introduced  after  the  annual 
determination of fishing possibilities shall take into account the need not to impair the 
fishing  possibilities  allowed  to fishing vessels  of  the other Party. 

G 

Article  4 

Lithuania may grant additional fishing possibilities in areas under its fisheries jurisdiction; in 
exchange,  the  Community  will  grant  financial  contributions  which  shall  be  utilised  by 
Lithuania  for  the  development  of fisheries  technologies  including  aquaculture,  conservation 
of fish resources, research  and  training purposes  in such  a manner as not  to prejudice  the 
interests of the  Community. 

Article  5 

1. 

2. 

3. 

The  Parties  shall  promote  the  establishment  of  temporary  joint  ventures  and  joint 
enterprises  in the fisheries sector between Community  and  Lithuanian  enterprises. 

Lithuania  shall  encourage the promotion  and preservation  of  a favourable  and  stable 
climate for the establishment and operation of such temporary joint ventures and joint, 
enterprises. 

To  that  end,  it  shall  in  particular  apply  investment  promotion  and  protection 
arrangements which ensure to all enterprises from the Community participating in such 
temporary joint ventures and joint enterprises a non-discriminatory,  fair and equitable 
treatment.  This includes the possibility  of harvesting  sea fisheries resources. 

The  Parties  agreed  to  consult  on  the  most  appropriate  way  to  encourage  the 
establishment  of temporary joint ventures and joint  enterprises  in the fisheries sector 
between  Lithuanian  and  Community  fishing  shipowners  with  the  aim  of  jointly 
exploiting  fishery resources  in areas under Lithuanian fisheries jurisdiction,  under  a 
scheme  whereby  the  Community  should  provide  for  financial  assistance,  while 
Lithuania  should  provide  access to fishing opportunities not  provided  for  in Articles 
3 and 4 of this  Agreement. 

Article  6 

Each Party  may  require that  fishing  in its area of fisheries jurisdiction  by fishing vessels of 
the other  Party  shall  be  subject  to licence. The limits within which  licences  shall be  issued 
shall  be  determined  in  consultations  between  the  Parties. The  competent  authority  of  each 
Party shall, as appropriate, communicate in due time to the other Party the name, registration 
number  and  other  relevant  particulars  of the fishing vessels  which  shall  be  eligible  to  fish 
within  the  area  of  fisheries jurisdiction  of the other  Party.  The  other  Party  shall  thereupon 
issue  such  licences within the agreed limits. 

"* 

Article  7 

Each Party shall, in accordance with its own laws, regulations and administrative rules, 
take  the  necessary  steps  to  ensure  the  observance  by  their  fishing  vessels  of 
conservation  measures  and other rules and regulations established  in law  by the other 
Party  for  the  exploitation  of  fishery  resources  in  the  area  under  the  fisheries 
jurisdiction  of  that other Party. 

Each  Party  may,  in  respect  of  the  area  under  its  own  fisheries  jurisdiction  and  in 
accordance  with  international  law, take such measures as may be necessary  to ensure 
the observance  by the fishing  vessels of the other Party of conservation measures and 
other  rules  and  regulations  established  in its  regulatory  provisions  and measures. 

Each  Party  shall  notify  the  other Party,  in advance  and in the appropriate  manner,  of 
such regulations and measures for regulating  fishing  as well  as of any amendments to 
these  regulations  and measures. 

The measures to regulate fisheries taken by each Party for the purpose of conservation 
shall  be based on objective  and scientific  criteria and shall  not discriminate  in fact or 
in  law  against  the  other Party. 

Article  8 

Each party shall agree to inspections of its fishing vessels carried out by the competent bodies 
of the other Party responsible  for fishing operations in the area under the fisheries jurisdiction 
of the other Party.  Each Party  shall facilitate  such inspections  for the purposes of  monitoring 
the  observance  of  the  regulatory  measures  and regulations  referred  to  in Article  7. 

Article  9 

The  competent  bodies  of  each  Party  shall,  in  the  event  of  the  seizure  or  arrest  of  fishing 
vessels  of  the  other  Party,  inform  the  competent  bodies  of  that Party  without  delay  through 
diplomatic  channels  about  the  further  measures  undertaken. 

The  competent  bodies  of  each  Party  shall  seek  to  facilitate  the  rapid  release  of  vessels  and 
crews  which  are detained  or arrested  for  infringing  conservation  measures  and other  fishing 
regulations against the lodging of reasonable security or other guarantee by the shipowner or 
his  representative,  determined  in  accordance  with  applicable  législation. 

Article  10 

The  Parties  agree  to  exchange  information  on  scientific  and technical  developments  in their 
national  fishing  sectors,  such  information  concerning  the  volume  of  catches  of  fishery 
resources  and  the  utilisation  of  same. 

8-

Article  11 

The  Parties  shall  cooperate  in  conducting  scientific  research  necessary  for  the 
conservation  and  optimum  utilization  of  fishery  resources  in  the  areas  under  their 
fisheries jurisdiction, in collecting samples and providing bio-statistical data, including 
statistics on catches, fishing  effort, the use of gear, the study of new target species and 
fishing  areas  and  their  future joint  exploitation. 

The Parties shall encourage cooperation in research and between their researchers and 
experts  in  the  fisheries  sector,  including  exchanges  of  such  researchers  and  experts; 
they  shall  also  cooperate  to  improve  Lithuanian  research  facilities  and  training  of 
scientists.  The  cooperation  shall  take  place  within  agreed  programmes  of  mutual 
interest. 

Article  12 

The  Parties  shall  cooperate  directly  and through  suitable  international  organizations, 
including  in  the  form  of  scientific  research,  for  the  purposes  of  the  conservation, 
optimum utilization and appropriate management of fishery  resources within the outer 
boundaries  of  the  areas  of  the  Parties  and  of  third  countries,  wherever  their  fishing 
vessels engage  in fishing.  The Parties shall consult each other on issues touching their 
mutual  interests  which  may  be considered  by  such  international  organizations. 

The  Parties  shall  cooperate  in ensuring  their rights  and  fulfilling  their  obligations  in 
accordance  with  international  law  in  order  to  coordinate  the  conservation,  optimum 
utilization  and  appropriate  management  of  living  resources  in  the  Baltic  Sea  and  in 
the North  Atlantic. 

Article  13 

In  the  interests  of  conserving  species  of  anadromous  fish,  the  Parties  confirm  their 
adherence to the relevant principles and provisions of the United Nations  Convention 
on  the  Law  of  the  Sea  of  1982, and in particular,  Article  66  thereof. 

In  particular,  the  Parties  will  cooperate  on  a  bilateral  basis  and  through  suitable 
international  fisheries  organizations,  in  particular the  IBSFC,  for  that  purpose. 

Article  14 

The  Parties  agree  to  consult  each  other  on  issues  arising  in  connection  with  the 
execution  and  proper  implementation  of  this  Agreement. 

In the event o f a dispute concerning the interpretation or application of this Agreement 
such  a dispute  shall  be the  subject  of  consultations  between  the  Parties. 

1. 

2. 

1. 

2. 

1. 

2. 

1. 

2. 

Article  15 

Nothing  in this  Agreement  shall  in  any  way  affect  or prejudice  the  views  of  either  Party  in 
respect  of  any  question  concerning  the  international  law of  the  sea. 

Article  16 

This Agreement  is  without  prejudice  to the delimitation  of  the exclusive  economic  zones  or 
fisheries  zones  between  Lithuania  and Member  States of the  European  Community. 

Article  17 

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

Article  18 

This Agreement  shall  enter into  force  on the date on which the  Parties  notify  each  other  of 
the  completion  of  the  procedures  necessary  for  this purpose. 

At that date it shall supersede the Agreements on Fisheries Relations between the Community 
and  Lithuania,  signed  on  17  December  1993,  between  the  Government  of  the  Republic  of 
Finland  and  the  Government  of  the  Republic  of  Lithuania,  signed  on  7  June  1993,  and 
between the Government  of the Kingdom  of Sweden and the Government  of the Republic  of 
Lithuania,  signed  on  25  November  1993; 

Article  19 

This Agreement  shall  remain  in force  for an initial  six-year period from the date of  its entry 
into  force.  Should  the  Agreement  not  be  terminated  by  one  of  the  Parties  giving  notice  of 
termination  at least  nine  months before  the expiry  of this period,  it shall  remain  in force  for 
further periods of three years unless similar notice of termination is given nine months at the 
latest before  the expiry  of  each  successive  period. 

This  Agreement  shall  be  drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish, 
French, German, Greek, Italian, Lithuanian, Portuguese, Spanish and Swedish languages, each 
text  being  equally  authentic. 

For the  European  Community 

For the  Republic  of  Lithuania 

lo 

PROTOCOL I 

Laying down the conditions relating to temporary joint ventures and joint enterprises provided 
for  in  the  Agreement  on  Fisheries  Relations  between  the  European  Community  and  the 
Republic of  Lithuania. 

Article 1 

For the purposes  of this Protocol, the following  definitions  shall  apply: 

(a)  Temporary joint  venture: any  association  based  on  a  contractual  agreement  of  limited 
duration between Community ship-owner and physical or legal persons in Lithuania, with 
the aim  of jointly  fishing  for  and exploiting Lithuanian  fishing  quotas by vessels  flying 
the  flag  of a Member  State of the European  Community  and  sharing the cost, profits  or 
losses  of the economic  activity jointly  undertaken, with a view to  the priority  supply of 
the Community  market; 

(b) Joint  enterprise:  any  company  regulated  by  Lithuanian  law  comprising  one  or  more 
Community  ship-owners  and one or more partners in Lithuania, with the aim of fishing 
for  and  possibly  exploiting  Lithuanian  fishing  quotas  by  vessels  flying  the  flag  of 
Lithuania  with a view to the priority  supply  of the Community  market; 

(c)  Community vessel: a vessel flying the flag of one of the Member States of the Community 

and registered  within the  Community; 

(d)  Community  shipowner: a  shipowner  established  in  one  of  the  Member  States  of  the 

Community; 

(e)  establishment  of  undertakings: a  company  constituted  under  private  law  with  capital 
coming from one or more Member States of the Community, established in Lithuania for 
the purpose of exploiting Lithuanian fishery  resources with a view to the priority  supply 
of the  Community  market. 

Article 2 

1.  The  Parties  shall  create  suitable  conditions  for  the  establishment  in  Lithuania  of 
undertakings using  capital originating in one or more Member  States of the  Community 
and the  creation  of joint  enterprises  and temporary joint  ventures  in the fisheries sector 
between  Lithuanian  and  Community  shipowners  with  the  aim  of  jointly  exploiting 
Lithuanian  fishery  resources under the conditions laid down in this Protocol. 

2.  Lithuania  shall  grant the undertakings referred  to in paragraph  1 of this Protocol  access 

to  fishing  opportunities  set out in Annex I. 

\\ 

3.  As part  of  its policy  for  the restructuring  of its fleet, the Community  shall  facilitate  the 
inclusion  of  Community  vessels  in  undertakings  established  or  to  be  established  in 
Lithuania. To that end, and as part of its policy for the technical renovation of its fishing 
industry,  Lithuania  shall transfer  fishing  licences and  issue the appropriate  new  licences 
pursuant  to the  Agreement. 

4.  Community  vessels that have been integrated  in the Lithuanian  fishing fleet pursuant to 
Article  5 hereafter,  and  with the  financial  assistance  foreseen  in Annex  IV  shall  not  be 
re-integrated  in the Community fleet. 

Article 3 

1.  The Parties shall select the projects for the temporary joint ventures and joint  enterprises 
provided  for  in Article 2. For this purpose, a Joint Commitee  shall  be established  to: 

-  evaluate the projects presented by the Parties for the establishment of temporary joint 
ventures  and  joint  enterprises  provided  for  in  Article  2  of  the  Protocol  and  in 
accordance with the criteria set out in Annex II; 

-  check  that  the  projects  are  being  properly  administered  and  oversee  the  use  of  the 
financial assistance  given to projects  in accordance  with Article  5 of this Protocol. 

- 

review the activities of Community  vessels belonging to temporary joint  ventures in 
Lithuanian  waters before  the end of their  contract. 

2.  The  Joint  Committee  shall  meet  once  a  year  alternately  in  Vilnius  and  Brussels  and 

exceptionally  at the request of either Party. 

Article 4 

1.  In order to encourage the establishment of temporary joint ventures referred  to in Article 
2,  the  projects  selected  by  the  Parties  shall  be  eligible  for  financial  assistance  in 
accordance with the conditions  laid down in Annex III. 

2.  The  Community  shall  grant  to  the  Lithuanian  company  which  forms  a  temporary joint 
venture  with  a Community  shipowner,  a financial  support  equivalent  to  fifteen  (15) per 
cent of that granted  to that Community  owner. 

Article 5 

1.  In order to encourage  the establishment  of joint  enterprises  referred  to  in Article 2, the 
projects selected by the Parties shall be eligible for financial assistance in accordance with 
the conditions  laid down in Annex IV. 

12. 

With a view to encouraging the establishment and development of joint enterprises, the 
Community  shall  grant  to  joint  enterprises  newly  established  in  Lithuania,  financial 
support  of  fifteen  (15)  per  cent  of  the  amount  paid  to  the  Community  owner.  This 
financial  support in the form of operating capital shall be paid by the Community to the 
Fisheries Department of the Ministry of Agriculture of the Republic of Lithuania, which 
shall lay down the terms governing its use and its administration. 
Lithuania shall inform the Joint Committee of how these funds are used. 

Article 6 

The establishment  of joint enterprises  shall  not result in an increase  in the capacity  of the 
Lithuanian fleet. 

Article 7 

The conditions governing the creation and access to resources of temporary joint ventures and 
joint enterprises are laid down in Annex V. 

Article 8 

The financial assistance referred to in Articles 4 and 5 of this Protocol  shall be paid to the 
Community  vessel  owner to cover part of his financial  contribution to the establishment  of 
a joint enterprise or joint venture in Lithuania, and to remove the vessel in question from the 
Community register. 

Article 9 

For the purpose of financial assistance to the establishment  of temporary joint ventures and 
permanent joint enterprises referred to in Article 5 of the Agreement and Articles 4 and 5 of 
this Protocol, the European Commission shall contribute ECU 2.500.000  for the duration of 
this Protocol. 

Article 10 

1.  The terms of this Protocol  shall enter into force on the date on which the Parties notify 

each other of the completion of the procedures necessary  for this purpose. 

2.  This Protocol is valid for a period of three years. Before the end of the period of validity 
of  this  Protocol,  the  Parties  shall  begin  negotiations  in  order  to  decide  upon  any 
amendments to the Protocol and/or Annexes which may be necessary for the subsequent 
period. 

13 

Article 11 

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, 
German,  Greek,  Italian,  Lithuanian, Portuguese,  Spanish and Swedish  languages, each text 
being equally authentic. 

For the European Community 

For the Republic of Lithuania 

H 

•*mNM»*W*««*4M«w«*MaMKMW«tt»''i  » < 

ANNEX  I 

FISHING  OPPORTUNITIES  FOR  JOINT  UNDERTAKINGS 

1.  In  accordance  with  Article  5  of  the  Agreement  and  Article  2  §  2  of  this  Protocol, 
Lithuania  shall  encourage  the  promotion  and  preservation  of  a  favourable  and  stable 
climate  for  the  establishment  and operation of joint  ventures  and joint  enterprises. 

To  that end,  Lithuania  shall  ensure a non-discriminatory,  fair and equitable  treatment  to 
such  joint  ventures  and joint  enterprises.  It  shall  provide  to  the  reflagged  Community 
vessels  the  possibility  to  access  Lithuanian  fisheries  resources  and  transfer  from  the 
scrapped  Lithuanian  vessels  their respective  quotas  and  licences. 

i^ 

ANNEX II 

METHODS  AND  CRITERIA  FOR  PROJECT SELECTION 

1.  The  Parties  shall  exchange  information  on  the  projects  presented  for  the  formation  of 
temporary  joint  ventures  and joint  enterprises  according  to  Article  2  of  this  Protocol 
which are  liable to receive  financial  assistance  from  the Community. 

2.  The  projects  shall  be  presented  to the Community  via  the  competent  authorities  of  the 

Member  State or Member  States concerned. 

3.  The  Community  shall  submit  to  the  Joint  Committee  the  list  of  projects  eligible  for 
financial  assistance  as  provided  for  in  Articles  4  and  5  of  this  Protocol.  The  Joint 
Committee shall evaluate the projects in accordance basically with the following  criteria: 

a)  technology  appropriate  to the proposed  fishing  operations; 
b)  target  species and fishing zones; 
c)  age of the vessel; 
d)  in case of temporary joint ventures, its total duration and that of the fishing operations; 
e)  previous  experience  of  the  Community  shipowner  and the  Lithuanian  partner  in the 

fisheries  sector. 

4.  The Joint Committee  shall recommend  to the Parties the projects  selected  in accordance 

with the criteria set out in point 3. 

5.  Once the projects  have been approved  by the Lithuanian authority  and  the  Community, 
the Community  shall  forward  to the Lithuanian authority the list of selected projects  for 
the purpose  of  issuing the necessary  authorizations and fishing licences. 

IU 

ANNEX III 

SCALES  OF  ASSISTANCE  TO  TEMPORARY  JOINT  VENTURES 

Category  of vessel, by gross registered 
tonnage (GRT) 

Maximum  amount 
(ECU/day) 

0 

25 

50 

70 

100 

200 

300 

500 

1,000 

1,500 

2,000 

2,500 

< 

< 

< 

< 

< 

< 

< 

< 

< 

< 

< 

25 

50 

70 

100 

200 

300 

500  . 

1,000 

1,500 

2,000 

2,500 

or  more 

4.52/GRT 

4.30/GRT 

3.50/GRT 

3.12/GRT 

2.74/GRT 

2.36/GRT 

2.05/GRT 

1.76/GRT 

1.50/GRT 

1.34/GRT 

1.23/GRT 

1.15/GRT 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

+ 

20 

25 

65 

88 

120 

177 

254 

372 

565 

764 

956 

1 137 

Member States of the European Community shall contribute 25  %  of the above mentioned 
sums to projects  involving vessels flying the flag of the Member State concerned. 

tt 

ANNEX IV 

SCALES  OF  ASSISTANCE TO  JOINT  ENTERPRISES 

Class  of vessel, by  gross 
registered  tonnage  (GRT) 

Maximum  amount  of premium  for  a 
15-year-old  vessel (in  ECU) 

^_ 

0 

< 

25 

50 

100 

400 

< 

< 

< 

and 

25 

50 

100 

400 

over 

6,215/GRT 

5,085/GRT 

4,520/GRT 

2,260/GRT 

1,130/GRT 

+ 

4- 

+ 

+ 

28,250 

56,500 

282,500 

734, 500 

The  premiums  for  setting  up joint  enterprises  paid  to  beneficiaries  may  not  exceed  the 
following amounts: 

15-year-old vessels: see table above; 
vessels  less than  15 years old: scale from table above increased by  1.5% per year less 
than 15; however, deduction pro rata temporis shall be made for any construction and/or 
modernization aid received by the vessel  in the  10 years preceding the establishment of 
the joint enterprise and no financial assistance shall be granted for vessels of 5 years old 
or less. 
vessels more than 15 years old: scale from table above decreased by  1.5% per year over 
15. 

Member  States  of  the European Community  shall  contribute 25% of  the above  mentioned 
sums  to  projects  involving  vessels  reflagging  from  the  Member  State  concerned  to  the 
Republic of Lithuania. 

œr 

^ « ^ . . H W J K * * * » * * » ! * * " " ^ * ^ - * ,*  •»***»»*** i'm<**m*0l&tfm<Êim* 

ANNEX V 

CONDITIONS  GOVERNING  THE CREATION  AND ACCESS TO RESOURCES  OF TEMPORARY 
JOINT  VENTURES  AND JOINT  ENTERPRISES  IN LITHUANIA 

A.  Selected projects 

Once the project  selection  procedure  laid down in Annex  II to this  Protocol  has been 
completed,  the  Community  shall  provide  the  Lithuanian  authority  with  a  list  of 
Community vessels selected for inclusion in a temporary joint venture or joint enterprises 
with a view to the exercise of fishing activities. 

B.  Licences 

The  Lithuanian  authority  shall  promptly  transfer  and  issue  a  fishing  licence.  For 
temporary joint ventures, the fishing licences shall be issued for a period of validity equal 
to  me  duration  of  the  temporary  joint  venture.  Fishing  shall  take  place  on  quotas 
allocated by the Lithuanian authority. 

C.  Replacement of vessels 

A  Community  vessel  operating  under  a temporary joint  venture  may be replaced by 
another Community vessel with equivalent capacity and technical specifications  only on 
duly justified  grounds and with the agreement of the  Parties. 

D.  Fitting-out 

Vessels  operating  under  temporary  joint  ventures  shall  comply  with  the  rules and 
regulations applicable in the Republic of Lithuania regarding fitting-out, which rules and 
regulations shall be applied without discrimination between Lithuanian and Community 
vessels. 

E.  Catch  declarations 

1.  All Community vessels shall forward to the Lithuanian authority a catch declaration 

in accordance with Lithuanian fishery regulations. 

2.  A copy of the catch declaration shall be forwarded to the European Commission in 

Brussels. 

3.  In the event of these provisions not being complied  with, the Lithuanian authority 
may suspend the fishing licence of the vessel involved until the said formalities have 
been complied with. 

\°\ 

F.  Duration of the joint  ventures 

Temporary joint  ventures shall  be valid for a period of no more than  1 year. Under no 
circumstances may this duration be extended beyond the expiry date of this Protocol. 

G. »  Scientific observers 

At the request of the Lithuanian authority, Community  vessels fishing pursuant to this 
Protocol  shall  permit a scientific  observer designated by the said authority to come on 
board to perform his tasks  The observer shall be provided with all the facilities necessary 
for the exercise of his functions. 

The conditions of his stay on board shall be the same as those of the other officers of the 
vessel.  Observers' remunerations  and social  security  contributions  shall  be paid by the 
Lithuanian authorities. The costs of his stay on board shall be borne by the owner of the 
vessel. 

H.  Signing on of crew 

1.  Community vessels operating under temporary joint ventures shall sign on at least thirty 
per  cent  (30%)  of  Lithuanian  crew  members.  Such  crew  members  must  possess  the 
knowledge necessary for performing their functions. 

2.  The crew and captain of reflagged  vessels  operating under joint enterprises have to be 

Lithuanian nationals. 

3.  The  said  crew  members' work  contracts  shall  be  concluded  in  Lithuania  between the 
representatives  of  the  shipowners  antf the  crew  members  concerned  and must  include 
social  security  arrangements  and  life  and  accident  insurance  in  accordance  with 
Lithuanian legislation. 

lo 

t 

.--t 

FINANCIAL  STATEMENT 

1. 

TITLE: 

Proposal for a Council Regulation on the conclusion of an Agreement 
on  Fisheries  Relations  between  the  European  Community  and  the 
Republic  of  Lithuania  and  a  Protocol  laying  down  the  conditions 
relating to temporary joint ventures and joint  enterprises 

2. 

3. 

4. 

BUDGETARY  LINE CONCERNED: 

B7-800 

LEGAL  BASIS: 

Article 43 of the EC Treaty 

DESCRIPTION: 

4.1  General  objective: 

New Framework  Agreement: 
• 
• 
• 

to  amalgamate  the existing agreement concluded  by EC 12, Finland,  Sweden; 
to provide  for  a "second generation" clause; and 
an  implementing  Protocol  establishing  the  conditions  for  the  constitution  of 
J.V.  and J.E. 

4.2 

Period  covered: 

Agreement:  Six years 
Protocol  I: 

Three years 

5. 

CLASSIFICATION  OF EXPENDITURE: 

5.1.  DO 

5.2.  CD 

6. 

TYPE  OF  EXPENDITURE: 

Financial  compensation paid for fishing possibilities in Lithuanian  waters 
Financial assistance for the establishment of joint enterprises and joint ventures 

• 
• 
AMOUNT  OF  EXPENDITURE: 

7. 

As  this  is  only  a  framework  agreement,  the  financial  consequences  cannot  be 
calculated  at this stage. 
• 

The  financial  compensation  for  the  fishing  possibilities  in  Lithuanian  waters 
for  1997  is  expected  to  be  similar  to  those  paid  under  the  present  EC 12-
Lithuania  Agreement, but depends from annual consultations. 
They  amounted  to  ECU  453,500  and  ECU  763,000  in  1995  and  1996 
respectively. 

A  financial  compensation  of  ECU  2.5  million  for  the  promotion  of  joint 
enterprises and joint ventures in Lithuania was fixed for the three-year period 
of the  validity  of Protocol  I. 

1\ 

7.1.  Method  of calculation: 

• 

• 

The  financial  compensation  for  1997 will  be  calculated  on  the  basis  of  the 
market  value  of  the  fishing  possibilities  that  will  be  obtained  by  the 
Community in Lithuanian waters. From the average landing prices for  1995 in 
Baltic Community ports, the estimated fleet exploitation costs for  each of the 
species  concerned  will  be  deducted.  These  costs  are  estimated  75% of  the 
landing price of demersal species -cod and salmon- and 87.5% of the landing 
price of pelagic  species -sprat and herring. 
The financial  assistance provided  for  in Article  5 of the Agreement,  in  order 
to encourage the establishment of joint enterprises and joint ventures, is based 
on  the  sliding  scale  scheme  fixed  on  the  Structures  Regulation  (EEC) 
No 3699/93. 

8. 

ANTI-FRAUD  PROVISIONS: 

The  Annual  Agreed  Records  of  Consultations  will require  that  information  is given 
to the Community  on how this financial compensation and contribution will be used. 

9. 

ELEMENTS  OF COST/BENEFIT  ANALYSIS: 

The  Community  fleet  in the  Baltic  Sea has been  severely  hit  by reductions  in  catch 
possibilities, mainly due to biological factors (low salinity of the water, M-74 disease) 
and pollution  of the water. Any increase in fishing possibilities above current critical 
catch  levels  will  contribute  towards  preventing  the  fleet,  connected  industries  and 
services  ashore  from  collapsing  and  disappearing.  This  will  also  avoid,  to  a  certain 
extent, payments  under  lay-up schemes or social programmes. 

Experience  has  taught  us that the financial compensation  paid  for  the  same  purpose 
in  1995  has  been  mainly  used  by  Lithuania  for  the  continued  improvement  of 
scientific  research  on  fisheries  and  training  on  fisheries  managers.  This  entails 
improved  scientific  assessment  and enforcement  in the fishery zone of Lithuania and 
contributes to a more rational exploitation of the stocks, to the benefit of all concerned 
in the Baltic  Sea. 

The  "second  generation"  Protocol  will  provide  for  a  reduction  of  capacity  in  the 
Western  Baltic  and  a  modernization  of  the  fleet  in  the  Eastern  Baltic,  without 
increasing  the capacity  in that area. 

10.  ADMINISTRATIVE  EXPENSES: 

None 

TL 

BSN 0254-1475 

COM(96) 356  final 

DOCUMENTS 

EN 

03 

il 

Catalogue number  : CB-CO-96-361-EN-C 

ISBN 92-78-06984-1 

Office for Officiai Publications of the European Communities 

L-2985 Luxembourg 

11