Proposal for a COUNCIL DECISION concerning the conclusion of the Cooperation Agreement between the European Community and the Kingdom of Cambodia
Date: 1997-03-03
Institutions: European Commission
Subjects: Cambodia, cooperation agreement (EU), development aid, economic cooperation, trade cooperation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  03.03.1997  , 

COM(97) 78 final 

97/0060 (CNS) 

Proposal  for a 

COUNCIL  DECISION 

concerning  the  conclusion  of  the  Cooperation  Agreement  between  the  European 
Community  and the Kingdom of Cambodia 

(presented  by the Commission) 

Cooperation Agreement between the European Community and the 

Kingdom of  Cambodia 

Summary 

I. 

Background 

The  general  elections  that  brought  a  democratic  coalition  to  power  in  1993 
marked  the  dawn  of  a  new  era  in  building  democratic  institutions  in 
Cambodia, 
launching  recovery  within  a  new  system  of  bilateral  and 
multilateral political relations. 

In  February  1995, after  high-level  talks  with  Cambodian  representatives,  and 
in  the light  of  the Member  States'  wishes, the Commission  formally  launched 
exploratory  talks  with  the  Cambodian  government  for  the  negotiation  of  a 
cooperation  agreement.  Since the conclusion  of the peace agreements  in Paris, 
on  23 October  1991, the  Commission  had  already  contributed  significantly  to 
the  rehabilitation  and  reconstruction  of 
the  country,  committing  over 
ECU  160 million. 

The  Cambodian  authorities  and  the  Commission  concluded  that  stronger 
relations  between  Cambodia  and  the  Community  would  help  consolidate  the 
new  democratic  institutions  brought  in  by  the  free  elections,  and  foster  the 
future  expansion  of  cooperation  for 
the  country's  reconstruction  and 
development. 

On  the  strength  of  the  negotiating  directives  adopted  by  the  Council  on 
23 July  1996,  the  Commission  opened  the  sole  negotiating  session  on 
6 November  1996.  The parties initialled an agreement the following  day. 

II.  What the parties stand to gain from a cooperation  agreement 

The conclusion  of a cooperation  agreement should bring a series of benefits  for 
both  parties  inasmuch  as  the  agreement  will  cover  development,  trade  and 
economic  cooperation  reflecting  the changes  and challenges  of  the new  global 
world  order,  the  single  market  and  the  introduction  of  a  market  economy  in 
Cambodia.  It will  offer  an  opportunity  to  strengthen  the  human  rights  clause 
on  which  all  relations  with  Cambodia hang, and  improve cooperation  with  the 
private  sector  as  well  as  the  climate  for  investors,  regional  cooperation  and 
cooperation  in  a number  of  fields  crucial  to  the  reconstruction  of  the  country 
and the consolidation  of peace. 

European  Community 

By  developing  good  relations  with  Cambodia,  the  Community  will  improve 
the  prospects  for  harmonious  development  in  a 
region  with  astounding 
potential  in  human  and  natural  resources,  which  shares  certain  geo-economic 
features  of the more advanced and rapidly-expanding  ASEAN economies. 

2 

Relations  with  Vietnam  and Laos  will  also be  strengthened  by  the  conclusion 
of an agreement  between  the Community  and Cambodia.  They  should  also be 
a  factor  for  stability  for  neighbouring  countries  that  have  shown  considerable 
interest in the new  Cambodia. 

The  Community  is currently  playing  a key role in  Cambodia,  endeavouring  to 
promote  an  effective  rehabilitation  strategy  and  consolidate  democracy.  The 
process under way warrants support at various development  stages in step with 
the growing stability and a suitable political  environment. 

Last  but  not  least,  the  Agreement  also  provides  the  Community  with  an 
opportunity  to  assert  the  importance  of  human  rights,  including  workers' 
fundamental  rights. 

Cambodia 

The  exploratory  talks  with  the  Cambodian  authorities  showed  the  country's 
interest  in  a stronger  economic  and political  partnership  with  Europe.  This  is 
undoubtedly  a  result  of  the  major  changes  of  recent  years  and  of  the 
opportunity to safeguard  its future  development  by creating closer ties with  the 
Community, which  is seen as a model for the development  of Cambodia's  new 
civil society. 

In  order  to  accomplish  the  transition  period  of  its  reconstruction  process  and 
prepare  a  real  strategy  for  its  future  development,  Cambodia  needs  a 
considerable  amount  of  outside  help,  which  the  Community  will  be  able  to 
provide within the framework  of the Agreement and on the basis of the regular 
dialogue conducted  therein. 

The  new  institutions  and  the  government's  new  strategies  will  benefit  greatly 
the  Community's  policies  and  budget  instruments,  some  of  them 
from 
available  only  under  a  cooperation  agreement. 
the 
Community's  system of generalized preferences  (GSP) could also  considerably 
boost  the  development  of  Cambodia's  trade.  .  The  country  will  also  benefit 
from  the clauses according it most-favoured-nation  treatment 

Application  of 

III.  Content of the Agreement 

The  Agreement  will  be  a  framework  cooperation  agreement  founded  on 
respect  for  human  rights  and  with  an  emphasis  on  development  aid  and 
economic cooperation  in the broadest sense of the term. 

The  Agreement  will  contain  an  indication  of  the  objectives  of  EC-Cambodia 
cooperation. They include the strengthening and diversification  of economic and 
trade  relations by way of the reciprocal  granting of most-favoured  nation  status 
for  trade  in  goods, development  cooperation,  especially  for  the poorest  sections 
of the population, and the promotion of environmental protection, all of it on the 
basis of respect for human rights and democratic principles. 

1 

The  body  of  the  Agreement  will  contain  provisions  on  the  various  fields  of 
cooperation and cover: 

(a) 

trade cooperation; 

(b) 

development cooperation; 

(c) 

economic cooperation; 

(d) 

cooperation  on  the  environment,  agriculture,  energy,  the  regional  field, 
science  and  technology,  chemical  precursors  and  money  laundering, 
infrastructure,  information, communication  and culture. 

An  appropriate  institutional  framework  must  be  set  up  to  ensure  the  proper 
functioning  and  implementation  of  the  Agreement.  In  particular,  this  will 
involve  a  Joint  Committee  of  the  kind  set  up  for  other  bilateral  framework 
cooperation  agreements concluded by the Community. 

The text of the Agreement  initialled on 7 November is annexed. 

IV. 

CONCLUSION 

This  will  be  the  first  agreement  to be concluded  with  Cambodia,  reflecting  the 
parties'  shared interest in trade, development and economic cooperation. 

In  view  of  the  above,  and  in  the  light  of  (a)  the  Member  States'  desire  for 
stronger links between the Community and Cambodia and (b) the  Commission's 
scrupulous  compliance  with  the  Council's  directives  for  the  negotiations,  the 
Commission  recommends  that  the  Council  approve  the  proposed  Agreement 
between  the  Community  and  Cambodia  and  adopt  the  attached  proposal  for  a 
Decision. 

v. 

Communication from the Commission to the Council 

Subject:  Cooperation  Agreement  between  the  European  Community 

and the Kingdom of Cambodia 

Proposal  for  a  Council  Decision  concerning  the  conclusion  of 
the Agreement 

the 
The  annexed  proposal  concerns  a  Council  Decision  concluding 
Cooperation  Agreement  between  the  European  Community  and  the  Kingdom 
of  Cambodia. 

This is a non-preferential  agreement and has no financial  protocol. 

The  Agreement  is  aimed  at  strengthening  and  diversifying  relations  between 
the  Community  and  Cambodia.  Its  legal  basis  is  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  subparagraph  of 
Article 228(3) thereof. 

Negotiations took place on 6 and 7 November  1996.  They led to the initialling 
of an agreement  between  the Community  and Cambodia.  The initialled  text is 
the  negotiating  directives  adopted  by  the  Council  on 
consistent  with 
23 July  1996. 

The  Council  is  therefore  asked  to  adopt  the  proposal  for  a  Decision 
the  European 
concerning 
Community  and the Kingdom of Cambodia, and to sign that  Agreement. 

the  Agreement  between 

the  conclusion  of 

1. 

2. 

3. 

4. 

5. 

X 

Explanatory  memorandum 

1. 

2. 

3. 

4. 

5. 

By  its  decision  of  23  July  1996,  the  Council  authorized  the  Commission  to 
open negotiations with the Kingdom of Cambodia with a view to concluding  a 
cooperation  agreement and adopted directives to that end. 

The  negotiations  began  on  6  November  1996  and  were  concluded  by  the 
between  the  European 
initialling,  the  following  day,  of  the  Agreement 
Community  and Cambodia.  The following  annexes  are an integral  part of  the 
Agreement: 

a)  the declaration concerning Article  19 on non-execution of the Agreement, 

b)  the joint declaration on intellectual, industrial and commercial  property, 

c)  the joint declaration on the readmission of citizens, 

d)  the draft exchange of letters on maritime transport. 

The Commission considers that the initialled text is in line with the negotiating 
directives adopted by the Council on 23 July  1996. 

The  European  Parliament  must  be  consulted  because  the  legal  basis  of  the 
Agreement  includes  Articles  113  and  130y  in  conjunction  with  the  first 
sentence  of  Article 228(2)  and  the  first  subparagraph  of  paragraph  3  of  that 
same Article of the Treaty establishing the European  Community. 

With  a  view  to  the  signing  and  conclusion  of  the  Cooperation  Agreement 
between  the  European  Community  and  Cambodia,  the  Commission  proposes 
that the Council  approve  the Agreement  and  adopt the annexed  proposal  for  a 
Decision. 

(5 

Proposal for a Council Decision 

concerning  the  conclusion  of  the  Cooperation  Agreement  between  the  European 
Community  and the Kingdom of Cambodia 

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 subparagraph  of Article 228(3) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European  Parliament, 

Whereas,  under  Article  130u  of  the  Treaty,  Community  policy  in  the  sphere  of 
the  sustainable  economic  and  social 
development  cooperation  should  foster 
development of the developing countries, their smooth and gradual integration  into the 
world economy  and the alleviation of poverty in these countries; 

Whereas  the Community  should  approve,  in pursuit  of  its  objectives  in  the  sphere  of 
external  relations, the Cooperation  Agreement between  the European  Community  and 
the Kingdom of  Cambodia, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Cooperation  Agreement  between  the European  Community  and  the  Kingdom  of 
Cambodia is hereby  approved on behalf  of the Community. 

The text of this Agreement is attached to this Decision. 

Article 2 

The  President  of  the  Council  shall  give  the  notification  provided  for  in  Article  21  of 
the  Agreement.1 

Article 3 

The Commission,  assisted by representatives of the Member States, shall represent  the 
Community  in the Joint Committee provided in Article  14 of the Agreement. 

1  The date of entry  into force of the Cooperation  Agreement  will be published  in the Official  Journal 

of the European  Communities by the General  Secretariat of the Council. 

3 

Article 4 

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

Done at Brussels, 

For the Council 

The President 

S 

COOPERATION AGREEMENT 

BETWEEN 

THE EUROPEAN COMMUNITY 

AND 

THE KINGDOM OF CAMBODIA 

3 

COOPERATION  AGREEMENT 

between the European Community and the Kingdom of  Cambodia 

THE COUNCIL OF THE EUROPEAN UNION, 

of the one part, and 

THE ROYAL GOVERNMENT OF CAMBODIA, 

of the other part, 

hereinafter  referred  to as "the Parties", 

WELCOMING  the  increase  in  trade  and  cooperation  which  has  taken  place  between 
the  European  Community,  hereinafter  referred  to  as  'the  Community',  and  the 
Kingdom of Cambodia, hereinafter  referred  to as  'Cambodia'; 

RECOGNIZING  the  excellent  relations  and  ties  of  friendship  and  cooperation 
between the Community  and Cambodia; 

REAFFIRMING  the importance of further  strengthening ties between  the  Community 
and Cambodia; 

RECOGNIZING  the  importance  the  Parties  attach  to  the  principles  of  the  United 
Nations  Charter,  to  the  Universal  Declaration  of  Human  Rights,  to  the  1993 Vienna 
Declaration  and  the Plan  of  action  of the World  Conference  on  Human  Rights,  to  the 
1995  Copenhagen  Declaration  on  Social  Development  and  the  associated  plan  of 
action,  and  to  the  1995  Beijing  Declaration  and  the  plan  of  action  of  the  4th  World 
Conference  on Women; 

RECOGNIZING  the  Parties'  common  will  to consolidate,  deepen  and  diversify  their 
relations  in  areas  of  mutual  interest  on  a  footing  of  equality,  non-discrimination, 
mutual benefit  and reciprocity; 

RECOGNIZING  the  desire  of  the  Parties  to  create  favourable  conditions  for  the 
development  of trade and investment  between  the Community  and Cambodia,  and  the 
need  to  adhere  to  the  principles  of  international  trade,  the  purpose  of  which  is  to 
promote trade liberalization  in a stable, transparent and non-discriminatory  manner; 

CONSIDERING  the need  to  support  the current  process  of  economic  reform  in  order 
to  guarantee  Cambodia's  transition  to  a  market  economy,  with  due  regard  for  the 
importance  of  the  social  development  which  should  go  hand  in  hand  with  economic 
development  and the common commitment to respecting social  rights; 

CONSIDERING  the  need  to  support  the Cambodian  government's  efforts  to  improve 
the living conditions of the poorest and most disadvantaged  sections of the population, 
with a special emphasis on the status of women; 

/ )0 

CONSIDERING  the  importance  accorded  by  the  Parties  to  the  protection  of  the 
environment  at  all  levels  and  to  the  sustainable  management  of  natural  resources, 
taking account of the links between the environment  and development; 

HAVE  DECIDED  TO  CONCLUDE  this  Agreement  and  to  this  end  have  designated 
as their Plenipotentiaries: 

THE COUNCIL OF THE EUROPEAN UNION, 

President 

Manuel  MARIN 

Vice-President  of the Commission of the European  Communities, 

THE ROYAL GOVERNMENT OF CAMBODIA 

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

HAVE AGREED AS FOLLOWS: 

Article 1 

Basis 
Respect  for  the  democratic  principles  and  fundamental  human  rights  established  by 
the  Universal  Declaration  on  Human  Rights  inspires  the  internal  and  international 
policies  of  the  Community  and  of  the  Kingdom  of  Cambodia  and  constitutes  an 
essential element of this Agreement. 

Article 2 

Objectives 

The  main  objective  of  the  Agreement  is  to  provide  a  framework  for  enhancing 
cooperation  between  the Parties, within  their respective  areas  of jurisdiction,  with  the 
following  aims: 

(a) 
to  accord  each  other  most-favoured-nation  treatment  on  trade  in  goods  in  all 
areas  specifically  covered  by the  Agreement,  save  as  regards  advantages  accorded  by 
either  Party  within  the  context  of  customs  unions  or  free 
trade  areas,  trade 
arrangements  with  neighbouring  countries  or  specific  obligations  under  international 
commodity  agreements; 

/\A 

to promote and intensify  trade between the Parties, and to encourage the steady 
(b) 
expansion  of  sustainable  economic  cooperation,  in  accordance  with  the  principles  of 
equality  and mutual  advantage; 

to  strengthen  cooperation  in  fields  closely  related  to  economic  progress  and 

(c) 
benefiting  both Parties; 

to contribute to Cambodia's efforts  to improve the quality of life  and  standards 
(d) 
of  living  of  the  poorest  sections  of  its  population,  together  with  measures  for  the 
country's  reconstruction; 

to encourage job creation  in both the Community  and Cambodia,  with  priority 
(e) 
being accorded to programmes and operations which could have a favourable  effect  in 
this  respect.  The  Parties  shall  also  exchange  views  and  information  on  their 
respective  initiatives  in  this  field,  step  up  and  diversify  their  economic  links  and 
establish conditions conducive to job creation; 

to  take  the  requisite  measures  to protect  the  environment  and  manage  natural 

(f) 
resources  sustainably. 

Article 3 

Development  cooperation 

The  Community  recognizes  Cambodia's  need  for  development  assistance  and  is 
prepared  to step up its cooperation  in order to contribute to Cambodia's  own  efforts  to 
achieve  sustainable  economic  development  and  the  social  progress  of  its  people 
through  concrete projects  and programmes  in accordance  with  the priorities  set out in 
Council Regulation  (EEC) No 443/92. 

In accordance  with the abovementioned  Regulation  on cooperation  with the Asian  and 
Latin  American  (ALA)  countries,  assistance  will  be  targeted  mainly  on 
the 
rehabilitation  and  reconstruction  of  the  country  and  on  the  poorest  sections  of  the 
population.  In  cooperation,  priority  will  be  given  to  schemes  aimed  at  alleviating 
poverty,  and  in  particular  those  likely  to create jobs, foster  development  at  grassroots 
level  and promote  the role of women  in development. The Parties  will  also  encourage 
the  adoption  of  appropriate  measures  to prevent  and  combat  AIDS  and  take  steps  to 
increase  grassroots  development  and education  on  AIDS  and  the  operational  capacity 
of the health  services. 

Cooperation  between  the Parties  will  also  address  the problem  of  drugs  to  encourage 
and enhance training, education, health care and the rehabilitation  of addicts. 

The  Parties  acknowledge  the  importance  of  human  resources  development,  social 
development,  the  improvement  of  living  and  working  conditions,  the development  of 
skills  and  the  protection  of  the  most  vulnerable  sections  of  the  population.  Human 
resources  and  social  development  must  be  an  integral  part  of  economic  and 
development  cooperation.  Appropriate  consideration  shall  therefore  be  given  to 
training  objectives  addressing  institutional  needs  and  specific  vocational  training 
activities  aimed  at enhancing the skills of the local work  force. 

^z 

In  view  of  its  major  contribution  to  mine-clearance  programmes  in  Cambodia,  the 
Community  will,  in  its  future  commitments,  continue  to  concentrate  on  mutually 
agreed priorities to ensure that assistance is effective  and lasting. 

Community cooperation  in all areas will be concentrated  on mutually  agreed priorities 
to  ensure  that  assistance  is effective  and  lasting.  Development  cooperation  activities 
shall be compatible  with the development  strategies pursued under the auspices of the 
World Bank and IMF. 

Article 4 

Trade  cooperation 

1. 

The Parties confirm  their  determination: 

(a) 

(b) 

(c) 

to  take  all  appropriate  measures  to  create  favourable  conditions  for 
trade between them; 

to  do  their  utmost  to  improve  the  structure  of  their  trade  in  order  to 
diversify  it  further; 

to  work  towards  the  elimination  of  barriers  to  trade,  and  towards 
measures to improve transparency,  in particular  through  the removal  at 
an  appropriate  time  of  non-tariff  barriers,  in  accordance  with  work 
undertaken  in  this  connection  by  other  international  bodies  while 
ensuring that personal data are suitably protected. 

2. 

In  their  trade  relations,  the  Parties  shall  accord  each  other  most-favoured 
nation treatment in all matters regarding: 

(a) 

customs  duties  and  charges  of  all  kinds,  including  the  procedures  for 
their collection; 

(b) 

(c) 

regulations,  procedures  and 

the 
clearance, transit, warehousing and  transhipment; 

formalities  governing  customs 

taxes  and other  internal  charges  levied  directly or indirectly  on  imports 
or exports; 

(d) 

administrative formalities  for the issue of import or export licences. 

13 

3. 

Within the areas of their respective areas of jurisdiction, the Parties shall: 

(a) 

(b) 

seek ways of establishing cooperation  in the field  of maritime  transport 
leading  to  market  access  on  a  commercial  and  non-discriminatory 
basis,  taking  into  account  the  work  done  in  this  connection  by  other 
international bodies;1 

improve  customs  cooperation  between  their  respective  authorities, 
especially  with  regard  to  vocational  training,  the  simplification  and 
harmonization  of custom procedures and administrative  assistance in the 
matter of customs  fraud; 

(c) 

exchange  information  on  mutually  advantageous  opportunities  and 
cooperate on tourism and statistical matters. 

4. 

Paragraphs 2 and 3(a) shall not apply to: 

(a) 

advantages accorded by either Party to states which are fellow  members 
of a customs union or free trade area; 

(b) 

advantages  accorded  by  either  Party  to  neighbouring  countries  with  a 
view to facilitating  border trade; 

(c)  measures  which  either  Party  may  take  in  order  to  meet  its  obligations 

under international commodity  agreements. 

Cambodia  shall  improve  conditions  for  the  adequate  and  effective  protection 
and  enforcement  of  intellectual,  industrial  and  commercial  property  rights  in 
conformity  with  the  highest  international  standards.  To  this  end,  Cambodia 
shall accede to the relevant international  conventions on intellectual,  industrial 
and  commercial  property2  to  which  it  is  not  yet  a  party.  In  order  to  enable 
Cambodia  to fulfil  the abovementioned  obligations, technical  assistance  could 
be envisaged. 

Within  their  respective  areas  of  jurisdiction  and  insofar  as  their  rules  and 
regulations  permit,  the  Parties  shall  agree  to  consult  each  other  on  all 
questions, problems, or disputes which may arise in connection  with trade. 

5. 

6. 

transport  would  be 

Maritime 
the 
Agreement,referring  to the provision  of  maritime  transport  services  based  on  the  principle  of  free 
and fair  competition. 

the  subject  of  an  exchange  of 

letters  annexed 

to 

See Annex I. 

1 i 

Article 5 

Environmental cooperation 

The  Parties  recognize  that  the  only  way  to  improve  environmental  protection  is  to 
introduce appropriate environmental  legislation, implement  it effectively  and  integrate 
it into other policy areas. 

The  main  objective  of  environmental  cooperation  is  to  enhance  the  prospects  of 
sustainable  economic  growth  and  social  development  by  placing  a  high  priority  on 
respect for the natural environment  including: 

the  drafting  of  an  effective  environment  policy 

(a) 
involving  appropriate 
legislative measures and the resources needed to implement it.  Proper  implementation 
of  these  measures  will  be essential  in  helping put  an end  to  illegal  logging  activities. 
Such  a  policy  will  also  encompass  training,  capacity  building  and  the  transfer  of 
appropriate environmental  technology; 

cooperation  in  the  development  of  sustainable  and  non-polluting  energy 

(b) 
sources, as well as solutions to urban and industrial pollution problems; 

refraining  from  activities  harmful  to  the  environment  (especially  in  regions 
(c) 
with fragile  ecosystems), while developing tourism as a sustainable source of revenue; 

environmental  impact  assessment,  which  is  a vital  element  in  the  preparation 

(d) 
and implementation  of any reconstruction  or development  project; 

close  cooperation  to  achieve  the  objectives  of  environmental  agreements  to 

(e) 
which both Parties are signatories; 

particular  priority  and  initiatives  for  the  conservation  of  existing  primary 

(f) 
forests  and for the sustainable development of new forest  resources. 

Article 6 

Economic  cooperation 

Within  the  limits  of  their  respective  areas  of jurisdiction  and  the  financial  resources 
available,  the  Parties  undertake  to  foster  economic  cooperation  to  their  mutual 
advantage. This cooperation  will be aimed at: 

developing  the  economic  environment  in  Cambodia  by  facilitating  access  to 

(a) 
Community  know-how  and technology; 

facilitating  contacts  between  economic operators  and taking  other  measures  to 

(b) 
promote trade; 

encouraging,  in  accordance  with  their  legislation,  rules  and  policies,  public-
(c) 
and  private-sector 
to  strengthen  economic 
cooperation,  including cooperation  between  enterprises, technology  transfers,  licences 
and  subcontracting; 

investment  programmes 

in  order 

A  Î 

(d) 
facilitating  the  exchange  of  information  and  the  adoption  of  initiatives, 
fostering  cooperation  on  enterprise  policy,  particularly  with  regard  to  improving  the 
business environment and encouraging closer contacts; 

reinforcing  mutual  understanding  of 

(e) 
environments as a basis for effective  cooperation. 

the  Parties'  respective  economic 

In the above fields  the principal objectives  shall be: 

to  assist  Cambodia  in  its  efforts  to  restructure  its  economy  by  creating  the 

conditions for a suitable economic environment  and business climate; 

to encourage  synergies  between  the Parties'  respective  economic  sectors,  and 

in particular their private sectors; 

within the Parties' respective areas of jurisdiction, and in accordance with their 
legislation,  rules  and  policies,  to establish  a climate  conducive  to  private  investment 
by  improving  conditions  for  the  transfer  of  capital  and,  where  appropriate,  by 
supporting  the  conclusion  of  agreements  between  the  Member  States  of  the 
Community  and Cambodia on the promotion and protection of investment. 

The Parties will together determine, to their mutual  advantage, the areas and  priorities 
for economic cooperation programmes and activities. 

Article 7 

Agriculture 

The  Parties  undertake,  in  a  spirit  of  understanding,  to  cooperate  in  the  agricultural 
sector and examine: 

(a) 

the scope for developing trade in agricultural products; 

sanitary,  phytosanitary  and  environmental  measures,  and  the  results  thereof, 
(b) 
along  with  assistance  to  avoid  obstacles  to  trade,  taking  into  account  the  Parties' 
legislation; 

the  possibility  of  assisting  the  government  of  Cambodia  in  its  efforts  to 

(c) 
diversify  agricultural exports. 

Article 8 

Energy 

The  Parties  recognise  the  vital  importance  of  the  energy  sector  for  economic  and 
social  development,  and  are prepared  to step up cooperation  by means  of  dialogue  in 
the field  of energy policy.  This dialogue will take due account  of the main  objective, 
namely to ensure the sustainable development of Cambodia's energy resources. 

-1G 

Article 9 
Regional cooperation 

Cooperation  between  the  Parties  may  extend  to  activities  under  cooperation  or 
integration  agreements  with  other  countries  of  the  same  region,  provided  the  said 
activities are compatible with those agreements. 

Without  excluding  any  area,  special  consideration  may  be  given  to  the  following 
activities: 

technical  assistance (services  of outside consultants, training of technical  staff 

(a) 
in certain practical  aspects of integration); 

(b) 

promotion  of intraregional trade; 

support  for  regional  institutions,  projects  and  initiatives  for  which  regional 

(c) 
organizations bear responsibility; 

(d) 

studies concerning regional links, transport and communications. 

Article 10 

Science and technology 

The  Parties,  according  to  their  respective  policies,  their  mutual  interest  and  within 
their  respective  areas  of  jurisdiction,  may  promote  scientific  and  technological 
cooperation. 

Cooperation  will  involve: 

the  exchange  of  information  and  experience  at  regional  (Europe-South-East 

Asia) level, especially on the implementation  of policies and programmes; 

the promotion of lasting ties between the Parties' scientific  communities; 

the  stepping-up  of  activities  aimed  at  promoting  innovation  in  industry, 

including technology  transfers. 

Cooperation  may involve: 

the  joint  implementation  of  regional  (Europe-South-East  Asia)  research 
projects  in  areas  of  mutual  interest,  facilitating,  where  appropriate,  the  active 
involvement  of  enterprises; 

the  exchange  of  scientists  to promote  the preparation  of  research  projects  and 

high-level  training; 

joint  scientific  meetings to foster exchanges of information  and interaction  and 

to identify  areas for joint research; 

the  dissemination  of  results  and  the development  of  links  between  the  public 

and private sectors; 

n  1 

evaluation  of the activities concerned. 

The Parties'  higher education  institutions, research  centres  and industries  will play an 
appropriate part in this cooperation. 

Article 11 

Chemical drug precursors and money laundering 

Within  their  respective  areas  of jurisdiction  and the legislation  applicable,  and  taking 
into  account  work  done  by  the  relevant  international  bodies,  the  Parties  agree  to 
cooperate  in order to prevent  the diversion  of chemical  drug precursors,  and  agree on 
the need to do all in their power to prevent money laundering. 

The Parties will  also consider special measures against the cultivation, production  and 
trafficking  of  drugs,  narcotics  and  psychotropic  substances,  and  measures  to  prevent 
and reduce drug abuse. 

This cooperation  may include : 

measures to promote other forms of economic  development; 

the  exchange  of  relevant  information,  subject  to  personal  data  being  duly 

protected. 

Article 12 

Physical  infrastructure 

The  Parties  recognise  that  the  present  state  of  Cambodia's  physical  infrastructure 
constitutes  a serious constraint to private investment  and to economic  development  in 
general.  The  Parties  therefore  agree  to  encourage  specific  programmes  for  the 
infrastructure, 
reconstruction  and  development  of  Cambodia's 
rehabilitation, 
including  transport. 

Article 13 

Information, communication and culture 

interests,  will  cooperate 

The  Parties,  within  their  respective  areas  of  jurisdiction,  and  in  the  light  of  their 
information, 
policies  and  mutual 
communication  and  culture  to  improve  mutual  understanding  and  strengthen  existing 
ties between  them. In view of the importance of the ancient  Khmer civilization  and  its 
new 
heritage,  appropriate  support  may  also  be  provided  for  the  promotion  of 
initiatives  in the following  areas: 

the  fields  of 

in 

preparatory  studies and technical  assistance for the conservation  of the cultural 

(a) 
heritage, notably  for the purposes of tourism; 

(b) 

cooperation  in the field  of the media and audio-visual  documentation; 

1S 

(c) 

the organisation  of events and exchanges to improve cultural  understanding. 

the 

recognise 

importance  of  cooperation 

The  Parties 
fields  of 
telecommunications,  the  information  society  and  multimedia.  Such  coopération  may 
include the exchange of information  on the Parties' respective regulations  and policies 
for  telecommunication,  mobile  communications,  including  the  promotion  of  Global 
Navigation  Satellite  Systems 
society,  multimedia 
telecommunications  technologies, networks  and  telematic  applications  (e.g.  transport, 
health, education  and environment). 

information 

(GNSS), 

the 

the 

in 

Article 14 

Institutional  aspects 

1. 

The Parties agree to establish a Joint Committee, whose tasks are: 

to ensure the smooth  working  and proper  application  of the Agreement  and of 

(a) 
the dialogue between the Parties; 

to  make  suitable  recommendations  for  promoting  the  objectives  of  the 

(b) 
Agreement; 

to  establish  priorities  for  potential  operations  in  pursuit  of  the  Agreement's 

(c) 
objectives. 

2. 

3. 

4. 

5. 

6. 

The  Joint  Committee  shall  be  composed  of  representatives  of  sufficient 
seniority of both Parties.  It shall normally meet every other year, alternately in 
Phnom  Penh  and  in  Brussels,  on  a  date  fixed  by  mutual  agreement. 
Extraordinary  meetings  may  also  be  convened  by  agreement  between  the 
Parties. 

The  Joint  Committee  may  set  up  specialized  sub-groups  to  assist  it  in  the 
performance  of its tasks and to coordinate the formulation  and  implementation 
of projects  and programmes under the Agreement. 

The  agenda  for  meetings  of  the  Joint  Committee  shall  be  determined  by 
agreement  between the Parties. 

The Parties agree that it shall also be the task of the Joint Committee to ensure 
the proper functioning  of  any sectoral  agreements concluded,  or which  may be 
concluded, between the Community  and  Cambodia. 

The  organizational  structures  and  the  rules  of  procedure  of  the  Joint 
Committee  shall be determined and agreed upon by the Parties. 

/)  9 

Article 15 

Future developments 

1. 

The  Parties  may,  by  mutual  consent  and  within  their  respective  areas  of 
jurisdiction,  extend  this  Agreement  to  expand  cooperation  and  add  to  it  by 
means of agreements on specific  sectors or activities. 

2.  Within  the  framework  of  this  Agreement,  either  Party  may  put  forward 
suggestions  for  expanding  the scope of the cooperation,  taking  into  account  the 
experience gained in its application. 

Article 16 

Other Agreements 

Without  prejudice  to the relevant provisions of the Treaties establishing the European 
Communities, neither this Agreement nor any action taken thereunder shall in any way 
affect  the powers  of  the Member  States  of the European  Union  to undertake  bilateral 
activities  with  Cambodia  in  the  framework  of  economic  cooperation  or  to  conclude, 
where appropriate, new economic cooperation  agreements with Cambodia. 

. 

Article 17 

Facilities 

To  facilitate  cooperation  under  this  Agreement,  the  Cambodian  authorities  will  grant 
to  Community  officials  and  experts  the  guarantees  and  facilities  necessary  for  the 
performance  of  their  duties.  The  detailed  provisions  will  be  set  out  in  a  separate 
exchange of letters. 

Article 18 

Territorial  application 

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  to  which  the  Treaty 
establishing  the  European  Community  applies  and  under  the conditions  laid  down  in 
the Treaty  and, on the other, to the territory of Cambodia. 

Article 19 

Non-execution of the Agreement 

If either Party considers that the other Party has failed  to fulfil  an obligation  under this 
Agreement,  it  may  take  appropriate  measures.  Before  so  doing,  except  in  cases  of 
special  urgency,  it  shall  supply  the  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. 

Z o 

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

Article 20 

Annexes 

The Annexes to this Agreement shall form an integral part thereof. 

Article 21 

Entry into force and renewal 

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

2.  This  Agreement  is  concluded  for  a  period  of  five  years. 

It  shall  be  renewed 
automatically  from  year to year unless  one of  the Parties  denounces  it  six  months 
before  its expiry date. 

Article 22 

Authentic texts 

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

Done in Brussels, on 

The Council of the European Union 

The Royal Government of  Cambodia 

The Commission  of the European  Communities 

z-n 

Annex I 

Declaration on Article 19 - Non-Execution of the Agreement 

(a) 

The Parties agree, for the purposes of the interpretation  and practical  application 
of this Agreement,  that the term  'cases of  'special urgency'  in Article  19 of the 
Agreement  means a case of the material breach  of  the Agreement  by one of the 
Parties.  A material breach of the Agreement consists in: 

repudiation  of  the  Agreement  not  sanctioned  by  the  general  rules  of 
international law; 

violation of essential elements of the Agreement set out in Article 1. 

(b) 

The  Parties  agree  that  the  'appropriate  measures'  referred  to  in  Article  19 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  19, the other  Party may 
avail itself of the procedure relating to settlement of disputes. 

z  Z-

Joint Declaration on Intellectual, Industrial and Commercial Property 

Annex II 

The  Parties  agree  for  the  purposes  of  this  Agreement  that  'intellectual,  industrial  and 
commercial  property'  includes  in  particular  protection  of  copyright  and  related  rights, 
patents,  industrial  designs, software,  brands  and trademarks, topographies  of  integrated 
circuits, geographical indications, as well as protection against unfair competition and the 
protection of undisclosed  information. 

<?3 

Joint Declaration on thé readmission of citizens 

The  European  Community  recalls  the  importance  that  its  Member  States  attach  to  the 
establishment  of  effective  cooperation  with  third  countries  in  order  to  facilitate  the 
readmission by the latter of its nationals unlawfully  residing on the territory of a Member 
State. 

The  Kingdom  of  Cambodia  undertakes  to  finalize  readmission  agreements  with  those 
Member States of the European Union which request it. 

2  y 

Draft exchange of letters on maritime transport 

Sir, 

I have the honour to confirm the following: 

With regard to the barriers to trade which may arise for the European Community and its 
Member States or the Kingdom of Cambodia as a result of the operation  of  shipping, it 
has been agreed that mutually satisfactory  solutions should be sought with due regard for 
the principle of free and fair competition on a commercial and non-discriminatory basis. 

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

dS 

FINANCIAL  STATEMENT 

PARTI:  FINANCIAL  IMPLICATIONS 

1. 

Title of Operation: 

Cooperation  Agreement  between  the  European  Community  and  the  Kingdom  of 
Cambodia. 

2. 

Budget Headings Involved: 

- Part A (see Point 10) 

- Part B (see Annex) 

3» 

4. 

4.1 

4.2 

5. 

5.1 

5.2 

Legal  Basis: the European  Parliament  must  be  consulted  because  the  legal  basis 
of  the  Agreement  includes  Articles  113  and  130y  in  conjunction  with  the  first 
sentence  of  Article 228(2)  and  the first  subparagraph  of paragraph  3 of  that  same 
Article of the Treaty establishing the European Community. 

Description of Operation: 

General  objective 

Framework agreement for economic, trade and development cooperation. 

Duration and arrangements for renewal 
Initially five years, renewable each year  thereafter. 

Classification of Expenditure or Revenue: 

Non-compulsory expenditure. 

Differentiated  appropriations. 

5.3 

The projects  launched under the Agreement will generate no 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 unit and total cost) 

The cost per  operation  for  most  of the budget  headings possibly  concerned  will  be 
decided and calculated on a case-by-case basis. 

7.2 

7.3 

Itemized breakdown of cost: not applicable. 

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

Z€ 

8. 

Fraud prevention measures: 

The  Cambodian  authorities  and  the  Commission  will  apply  the  normal  control 
measures  when  implementing  the  Agreement,  as  provided  for  in  each  financing 
agreement and contract. 

9. 

Cost-benefit analysis: 

9.1. 

Specific  and quantified  objectives; target population 

To be defined  on a case-by-case basis. 

9.2.  Grounds for the operation 

To be defined on a case-by-case basis. 

9.3.  Monitoring and evaluation of the operation 

To be defined  on a case-by-case basis and included in each financing  agreement and 
contract. 
Administrative expenditure (Section III, Part A, of the Budget): 

10. 

Deployment  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 authorized by the budgetary authority. 

10.1  Impact of the number of posts: 

Type of post 

Staff 
to  be  assigned 
managing the operation 

to 

Source 

Duration 

Permanent 

Temporary 

Existing resource; 
in the DG or 
department 
concerned 

Additional 
resources 

A-grade 
officials  or B-
and  C-grade 
temporary 
staff 

TOTAL 

1 

1 

1 

3 

-

-

1 A 

IB 

1C 

3 

-

-

-

2  } 

10.2  Overall financial impact of human resources 

Amounts 

Method of calculation  (ECU) 

Officials 

Temporary  staff 

Other resources 

(indicate budget heading) 

TOTAL 

"" 

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

10.3 

Increase in other administrative expenditure as a result of the operation 

Budget heading 

A 2510 

(Joint Committee) 

TOTAL 

Amount 

p.m. 

p.m. 

Method of calculation  (ECU) 

The Agreement will be managed  and monitored by missions, the cost of which  will 
be covered by existing resources. 

The estimated annual cost for item A130 is ECU 35 000 (6 officials  a year from  the 
in 
Directorates-General  concerned),  which  covers  attendance  at  a  meeting 
Cambodia every two years. 

?<Z 

ANNEX 

FINANCIAL  STATEMENT 

1. 

Title of Operation 

Negotiation of a Cooperation Agreement between the European Community and the 
Kingdom of Cambodia. 

2. 

a) 

Budget Headings Involved 

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  whose  application  is  not  conditional  on  the  existence  of  a 
cooperation  agreement: 

B6-7211 

Cooperation with third countries and international  organizations 

B7-210 

Aid to help the populations of and emergency food aid for 

developing countries and others hit by disasters or serious crises 

B7-217 

Operations to help refugees  and displaced persons 

B7-212 

B7-872 

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

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

B7-300 

Financial and technical cooperation with Asian developing 
countries * 

B7-301 

Economic cooperation with Asian developing countries 

Under the "Asia" strategy  to be adopted  by the budgetary authority. 

B7-6000 

Community contribution towards schemes concerning 
developing countries carried out by non-governmental 
organizations 

B7-6005 

Community aid for non-governmental organizations operating in 
Cambodia 

B7-6200 

Environment in the developing countries 

B7-6201 

Tropical  forests 

B7-6211 

B7-631 

Health programmes and the fight against HIV/AIDS in 
developing countries 
Aid for population policies and programmes in developing 
countries and follow-up to the conference on population and 
development 

B7-641 

Rehabilitation and reconstruction measures for the developing 

countries 

B7-702 

Human rights and democracy in the developing countries 

B7-643 

Decentralized cooperation in the developing countries 

B7-6210 

North-south cooperation schemes in the context of the campaign 
against drug abuse 

3>o 

ISSN 0254-1475 

COM(97) 78  final 

DOCUMENTS 

EN 

ll  oi 

Catalogue  number  :  CB-CO-97-071-EN-C 

ISBN 92-78-16285-X 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

y\