Proposal for a COUNCIL DECISION concerning the conclusion of the Protocol on the extension of the Cooperation Agreement between the European Community and Brunei-Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand, member countries of the Association of South-East Asian Nations, to Vietnam
Date: 1997-01-17
Institutions: European Commission
Subjects: ASEAN countries, Viet Nam, accession to an agreement, cooperation agreement (EU), protocol to an agreement

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  17.01.1997 
COM(97) 2  final 

97/0017 (CNS) 

Proposal  for  a 

COUNCIL DECISION 

concerning the conclusion of the Protocol on the extension of the Cooperation 
Agreement between the European Community and Brunei-Darussalam, Indonesia, 
Malaysia, the Philippines, Singapore and Thailand, member countries of the 
Association of South-East Asian Nations, to Vietnam 

(presented  by the Commission) 

COMMUNICATION  FROM THE COMMISSION TO THE COUNCIL 

Subject : 

the  Cooperation  Agreement  between 

Protocol  extending 
the 
European  Community  and the Member Countries  of the  Association 
of  South-East  Asian  Nations  (ASEAN)  to  the  Socialist  Republic  of 
Vietnam. 

Approval  of  a  proposal  for  a  Council  decision  to  conclude  the 
Protocol 

The  attached  proposal  concerns  a Council  Decision  to  conclude  the  Protocol  extending 
the existing Cooperation Agreement between the  European Community and the member 
countries of  ASEAN to the Socialist Republic of Vietnam. 

1. It takes the form of a protocol and does not include any financial  protocol. 

2.  The  negotiations  and  the  initialisation  of  the  Protocol  between  the  European 
Community and the ASEAN took place in Brussels on 29 November  1996.  The text is in 
conformity  with the negotiation directive adopted on July 8, 1996. 

3.  In  accordance  with  Articles  113 and  130Y, in conjunction  with the  first  sentence  of 
Article  228  (2)  and  the first paragraph  of Article  228  (3)  of the  Treaty  establishing  the 
European Community,  the opinion of the European Parliament is required. 

4. Subsequently, the Council is requested to adopt the Proposal for a Council Decision  to 
conclude  the  Protocol  to  the  existing  Cooperation  Agreement  between  the  European 
Community and the member countries of the ASEAN. 

EXPLANATORY  MEMORANDUM 

1.  Background 

On  28  July  1995,  the  Association  of  South  East  Asian  Nations  was  enlarged  to 
include  the  Socialist  Republic  of  Vietnam  as  its  seventh  member.  The  European 
Community  and  the five member  countries  of ASEAN  on  7 March  1980 in  Kuala 
Lumpur  signed  a  cooperation  agreement  covering  the  commercial,  economic  and 
development sectors. The agreement was extended to Brunei on 21 March 1985. 

As  a  result  of  the  accession  of  Vietnam  to  ASEAN  in  July  1995,  the  member 
countries of the Association  have requested  the European Community  to extend the 
cooperation agreement to their seventh member. 

2.  Vietnam 

The Socialist Republic of Vietnam is ASEAN's poorest member. Its per capita GNP 
presently  stands  at  US$  220  for  a  population  of  73  million  people.  The  recent 
evolution  is one of a country  in transition  to the market economy  model,  following 
the  collapse  of  the  Eastern  Block  as  a  political  and  economic  force.  Vietnam's 
economic  performance  has  been  surprisingly  good  in  the  past  five  years  with  all 
macroeconomic  aggregates pointing in the right direction. In turn, this has  qualified 
Vietnam the support from  leading financial institutions. 

The  prospects  for  1996-2000  show  all  signs  of  a  sound  and  effective  economic 
management. Vietnam will face major  challenges in trade in the next upcoming half 
decade:  accession  to  WTO  and  integration  into  AFTA  (ASEAN  Free  Trade 
Association) will dominate Vietnam's economic agenda. 

3.  European Community relations with Vietnam 

Diplomatic  relations  between  the  EC  and  Vietnam  were  normalised  in  November 
1990. A textile agreement  was signed  in December  1992 (later revised  in  1995). A 
Cooperation  Framework  Agreement  was  signed  on  July  17,  1995. The  agreement 
covers  trade,  investment  and  intellectual  property  issues  as  well  as  more  general 
economic  and  development  cooperation  issues.  Cooperation  assistance  with 
Vietnam  started  in  1991  and  has  increased  steadily  since  totalling  approximately 
160 million Ecus in five years. 

Initially  focused  on  humanitarian  issues, the  European  Community  assistance  has 
been recently  more focused  on support to economic and administrative  reforms  and 
protection of natural resources. 

The holding  of the Joint  Commission  in  Hanoi  on 26-27 September  1996 reshaped 
the EC-Vietnam cooperation perspectives. 

Total trade between the EC and Vietnam has increased  steadily  over recent years to 
top ECU  1 billion  in  1995. The country's export to the EC includes rice, coffee  and 
textiles. 

3 

4.  Parallel  application  of  the  EC-ASEAN  Agreement  and  of  the  bilateral 

agreement 

The two agreements provide for cooperation in similar fields of activities even if the 
Vietnam  Agreement  is  more  modern  and  complete  and,  as  a  major  difference, 
includes Human Rights as an essential element which permits the suspension of the 
Agreement in accordance with the Vienna Convention on the Law and Treaties. The 
EC-ASEAN  Agreement  covers cooperation  between the European  Community  and 
the ASEAN countries at both bilateral and regional level. 

Therefore  it  has  been  necessary  to  include  in  the  accession  protocol  a  provision 
which  specifies  that  the bilateral  agreement,  as a more modern  and  comprehensive 
agreement,  takes  precedence,  in  case  of  conflict,  over  the  provisions  of  the  EC-
ASEAN Agreement. 

5.  Recommendations  by the Commission 

Considering  the  importance  of  maintaining  and  developing  also  the  dialogue  at 
regional  level,  the  Commission  considers  it  desirable  to  conclude  the  Protocol 
extending  the  existing  the  EC-ASEAN  Cooperation  Agreement  to  take  account  of 
the enlargement of the Association to include Vietnam. 

The Commission therefore  proposes that the Council adopt the annexed  decision to 
approve this Protocol. 

Proposal  for a 

COUNCIL  DECISION 
concerning the conclusion of the Protocol on the extension of the Cooperation 
Agreement between the European Community and Brunei-Darussalam, Indonesia, 
Malaysia, the Philippines, Singapore and Thailand, member countries of the 
Association of South-East Asian Nations, to Vietnam 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission (1), 

Having regard to the opinion of the European Parliament (2), 

Whereas, in order to attain its objectives  in the sphere of external economic relations, the 
European  Community  should  approve  the  Protocol  on the  extension  to  Vietnam  of  the 
Cooperation Agreement between the European  Community  and the member countries of 
Asean, 

HAS ADOPTED THIS DECISION : 

Article  J 

The  Protocol  on  the  extension  to  Vietnam  of  the  Cooperation  Agreement  between  the 
European Community  and the member countries of Asean  is hereby  approved  on behalf 
of the  European Community. 

The text of the Protocol is attached to this Decision. 

Article 2 

The President of the Council  shall give notification  that the procedures necessary  for the 
entry  into  force  of  the  Protocol  have  been  completed  in  respect  of  the  European 
Community (3). 

Article 3 

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

Done at Brussels, 

For the Council 

The President 

0  )O.J.N°C 
(2) OJ N° C 
(3 )The date of entry into force of the Protocol will be published in the OfficialJoumal  of the European 
Communities by the General Secretariat of the Council.  __ 

PROTOCOL ON THE EXTENSION OF 
THE COOPERATION  AGREEMENT  BETWEEN THE MEMBER  COUNTRIES 
OF ASEAN  AND THE EUROPEAN COMMUNITY TO THE SOCIALIST 
REPUBLIC OF VIETNAM 

The Government of Brunei  Darussalam, 
The Government of the Republic of Indonesia, 
The Government of Malaysia, 
The Government of the Republic of the Philippines, 
The Government of the Republic of Singapore, 
The Government of the Kingdom of Thailand, 
and 
The Government of the Socialist Republic of Vietnam of the one part, 
The Council of the European Union, of the other part, 

HAVING REGARD to the Cooperation Agreement between the European Economic 
Community and Indonesia, Malaysia, the Philippines, Singapore and Thailand -
member countries of the Association of Southeast Asian Nations signed on 7 March 
1980 in Kuala Lumpur, and later extended to Brunei on 16 November 1984, 
hereinafter  referred to as "Agreement", 

WHEREAS Vietnam as a new member of the Association of South East Asian 
Nations has applied to accede to the Agreement, 

HAVE DECIDED to extend the Agreement to Vietnam and to this end have 
designated as their Plenipotentiaries ; 

The Government of Brunei Darussalam : 

The Government of the Republic of Indonesia : 

The Government of Malaysia : 

The Government of the Republic of the Philippines : 

The Government of the Republic of Singapore : 

The Government of the Kingdom of Thailand : 

The Government of the Socialist Republic of Vietnam : 

The Council of the European Union : 

Minister for Foreign Affairs  of the Netherlands, 
President-in-Office  of the Council of the European Union 

Manuel Marin, 

Vice President of the Commission of the European Communities 

WHO, having exchanged their full  powers, found  in good and due form, 

G 

HAVE AGREED AS FOLLOWS : 

Vietnam accedes to the Agreement by virtue of this Protocol. 

ARTICLE 1 

ARTICLE 2 

The  provisions  of the Agreement  together  with the  Protocol  concerning  Article  1 of 
the Agreement shall apply to Vietnam. 

ARTICLE 3 

The application of the Agreement to Vietnam shall not affect  the application of the 
Cooperation Agreement between the EC and Vietnam signed on 17 July  1995 and 
which entered into force on 1  June 1996 W) . 

ARTICLE 4 

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

Done at 
, this 
year one thousand nine hundred ninety-seven. 

day of 

in the 

For the Government of Brunei Darussalam 

(signature) 

For the Government of the Republic of Indonesia 

(signature) 

For the Government of Malaysia 

(4).OJ N° LÎ36, 7/6/1996 P. 28-37 

> 

(signature) 
For the Government of the Republic of the Philippines 

(signature) 

For the Government of the Republic of Singapore 

(signature) 

For the Government of the Kingdom of Thailand 

(signature) 

For the Government of the Socialist Republic of Vietnam 

(signature) 

For the European Community 

(signature) 

S 

FINANCIAL STATEMENT 

Appendix 1 

PART 1 : FINANCIAL  IMPLICATIONS 

1. 

Title of Operation : 

Concerning  the  extension  of  the  existing  Cooperation  Agreement  between  the 
European Community  and the Association  of South-East Asia Nations  (ASEAN) 
to the Socialist Republic of Vietnam. 

2. 

Budget Headings Involved : 

- Part A (see Point  10) 
- Part B (see Annex II) 

3. 

Legal Basis : 

Articles  113 and  130Y, in conjunction  with the first sentence  of  Article  228  (2) 
and the first paragraph of Article 228 (3) of the Treaty establishing the European 
Community. 

4. 

Description of Operation : 

4.1 

Qeperaj objective 

Extension of the existing EC-ASEAN Cooperation Agreement to Vietnam. 

4.2 

Period cover and arrangements for renewal 

Renewable in line with EC-ASEAN Cooperation Agreement. 

5. 

Classification  of Expenditure or Revenue : 

5.1  Non compulsory expenditure. 

5.2 

Differentiated  appropriations. 

5.3 

The  projects  launched  under  the  protocol  will  not  engender  any  specific 
revenue. 

6. 

Type of Expenditure: 

6.1 

Grant up to  100%:  Yes. 

7. 

Financial Impact : 

7.1  Method  of calculating total  cost of operation  (relation  between  individual 

and total cost 

The  cost  of  individual  action  for  most  of  the  credit  lines  possibly 
concerned will be decided and calculated on a case by case basis. 

7.2 

Itemised  breakdown of cost: not applicable. 

7.3 

Schedule of commitment and payment appropriations 

On  request,  following  approval  of  the  project  by  the  Commission 
departments  and  up  to an  amount  not  exceeding  the  appropriations  to be 
entered  under  the  relevant  budget  headings,  in  each  annual  budgetary 
procedure. 

8. 

Fraud  prevention  measures 

The  member  countries  ol  ASEAN  and  the  Commission  will  apply  the  normal 
control  measures  in  the  implementation  of  the  agreement,  as  foreseen  by  each 
Financing Agreement and contracts. 

9. 

Elements of cost-effectiveness  analysis 

(). I. 

Specific and quantified  objectives; target population 
To be defined  on a case by case basis. 

V.2.  Grounds for the operation 

To be defined  on a case by case basis. 

{>. V  Monitoi iuu and evaluation of the opmilioji 

To  be  defined  on  a  case  by  case  basis  and  included  in  each  financing 
agreement and contract. 

10.  Administrative expenditure (Section III. Part A of the Budget) 

Actual  mobilisation  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on the  allocation  of  resources,  taking  into  account 
the number of staff  and additional  resources authorised  by the budgetary  authority. 
The  allocation  of  supplementary  resources  is  to  be  considered  in  the  context  of 
priorities  to  be decided  by  the  Commission  within  the  limits  of  budgetary  means 
available in the annual budget. 

10 

10.1  Effect of the number of posts 

Type of Post 

Staff to be assigned to managing the 
operation 

Permanent posts 

Temporary 
posts 

Officials  or  A 
temporary  B 
C 
staff 

TOTAL 

3 

1 
1 
1 

3 

Source 

Duration 

Additional 
resources 

Existing 
resources  in 
the  DO  or 
department 
concerned 

-

-

1A 
IB 
IC 

3 

-

-

-

10.2  Overall financial  impact of additional human resources 

Amounts 

Method of calculation (Ecu) 

Officials 
Temporary staff 
Other resources 
(indicate budget heading) 
TOTAL 

1 

I 

The costs of the human resources required will be covered by existing resources. 
Ihe estimated annual cost  for titles Al, A2, A4 and A5 is 300,000 Ecus/year. 

10.3  Increase in other administrative expenditure as a result of the operation 

Budget heading 

A 1300  (missions) 
A 2510 
(Joint Commission) 

Amounts in Ecu 
10.000 
p.m. 

Method of calculation 
2 missions/year 
1  meeting/year 
(alternatively in an ASEAN 
member country and in Brussels) 
8 participants 

TOTAL 

1 

10000 

1 

fhe  costs  for  the  managing  and  monitoring  of  the  Agreement  will  be through  missions 
covered by existing resources. 

IV 

FINANCIAL STATEMENT 

Appendix 2 

1. 

Title of Operation 

Extension  of  the  existing  Cooperation  Agreement  between 
Community and the ASEAN to the Socialist Republic of Vietnam. 

the  European 

2. 

Budget Headings Involved 

a) 

Budget  headings  whose  application  is  conditional  on  the  existence  of  a 
Cooperation Agreement : 

-  B7-870 

Commercial  and  economic  cooperation  agreements  with 
third countries. 

b) 

Other budget headings for  which the application  is not conditional  on the 
existence of a cooperation agreement : 

•  B6-7211  Cooperation with Third Countries and 

International organisations 

•  B7-210  Aid to help the population and emergency food aid for 

developing countries and others, hit by disasters or 
serious crisis 

-  B7-2I2 

Aid  towards  self-sufficiency  for  refugees  and  displaced 
persons in Asia and Latin America 

-  B7-217  Operations to help refugees  and displaced persons 

-  117-300 

Financial  and  technical  cooperation  with  Asian  developing 
countries (1) 

-  B7-301 

Economic cooperation with Asian developing countries ( 1 ) 

-  B7-6000  European  Community  contribution 

schemes 
concerning  developing  countries  carried  out  by  non 
governmental organisations 

towards 

-  B7-6200  Environment in developing countries 

-  B7-6201  Tropical  Forests 

In  the  framework  of  the  Asia  strategy  to  be  adopted  by  the 

(1) 
budgetary authority 

12-

-  B7-6210  North-South  cooperation  schemes  in  the  context  of  the 

campaign against drug abuse» 

-  B7-6211  Health  programmes  and  the  light  against  H1V/A1DS  in 

developing countries 

-  B7-631 

Aid  for  population  policies  and programmes  in  developing 
countries  and  follow-up  to  the  conference  on  population 
and development 

-  B7-641 

Rehabilitation  and 
developing countries 

reconstruction  measures 

for 

the 

-  B7-643 

Decentralised cooperation in the developing countries 

-  B7-702 

Human rights and democracy in the developing countries 

-  B7-872 

Promotion of  liuropean Community  investment in 
developing countries by economic cooperation and trade 
agreements of Asia, Latin America, the Mediterranean and 
in South Africa 

ISSN 0254-1475 

COM(97)  2 final 

DOCUMENTS 

EN 

11  01 

Catalogue number  :  CB-CO-97-002-EN-C 

ISBN  92-78-14204-2 

Office  for Official  Publications of the European Communities 

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