Proposal for a Council Decision concerning the conclusion of the Co-operation Agreement between the European Community and the Republic of Yemen
Date: 1997-09-08
Institutions: European Commission
Subjects: Yemen, agreement (EU), cooperation agreement, trade agreement, trading operation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  08.09.1997 
COM(97)  435  final 

97/  0229  (CNS) 

Proposal  for  a 

COUNCIL  DECISION 

concerning  the  conclusion  of  the  Co-operation  Agreement  between  the  European 

Community and the Republic of Yemen 

(presented  by  the  Commission) 

>^*<* 

SUMMARY 

1.  BACKGROUND 

The  new  agreement  replaces 
agreement  established  in 1984. 

the  EEC-former 

(Northern)  Yemen  Arab  Republic 

Since  the  end  of  civil  unrest  in  1994,  Yemen  has  consolidated  its  democratic  process, 
which  led  to  the  free  and  fair  parliamentary  elections  of  27th  April  1997.  Through  an 
active foreign  policy it has also contributed  to enhancing  security  in the Arab  Peninsular 
and  Red  Sea by  the de-activation  of several  regional  conflicts.  During  the last  three  years 
the  government  has  undertaken  far-reaching  economic  reforms  including  a  Structural 
Adjustment  Programme  that  commenced  in  early  1996.  Its  first  phase  has  been  very 
successful. 

The  Yemeni  government  has  made  the  strengthening  of  EC-Yemen  relations  a  high 
priority.  It  has  expressed  its  hope  that  the  conclusion  of  an  extended  co-operation 
agreement  with  the  EC  would  pave  the  way  for  enhancing  and  upgrading  the  close 
relations  that currently exist between  Yemen and  the  Community. 

Since  the  start  of  EC-Yemen  co-operation  in  1978 about  58 MECU  have  been  committed 
by  the  EC  for  economic  and  development  projects,  28  MECU  of  which  has  been 
committed  since  Yemeni  unification  in  1990.  In  addition  to  this,  about  10  MECU  were 
spent  on  food  aid,  humanitarian  aid  and  decentralised  co-operation  projects.  The 
Commission  is now  of  the opinion  that  the above  factors,  as well  as the unification  of  the 
country,  Yemen's energy potential, its strategic  geographic  location  at  the junction  of  the 
Red  Sea and  Arabian  Sea, and  the extension  of EC-Yemen co-operation  since  1994,  justify 
replacing  the  existing  1984  agreement  with  a  new  treaty.  This  would  provide  an 
appropriate  basis  for  improving  EC-Yemen relations  and  fit  in  the  overall  EU strategy  of 
intensifying  co-operation  with  its  southern  neighbours  in  the  Mediterranean  and  the 
Gulf. 

Both  the  Yemeni  side  and  the  EC delegation  agreed  in  the Joint  Communiqué  of  the  7th 
EC-Yemen  Joint  Co-operation  Committee  meeting  in  Sana'a  on  19th  September  1996,  to 
start  talks  on  a  new  co-operation  agreement.  On  the  strength  of  the  negotiating 
directives  adopted  by  the  Council  on  24th  February  1997,  the  Commission  opened  the 
sole  negotiating  session  on  21st  April  1997. The  parties  initialed  the  agreement  the  same 
day. 

2. 

THE  INTEREST  OF THE TWO  PARTIES  IN  AN  AGREEMENT 

The  European  Community 

The  Commission  shares  the  conviction  of  the  Yemeni  Government  that  EC  -  Yemeni 
contractual  relations  ought  to be  placed  on  more  solid  ground  than  the  1984  agreement 
and  to  be  adapted  to both  the  important  changes  that  have  since  taken  place  in  Yemen 
itself, and  in  the region, and  those expected  in  the coming  10 to 15 years. 

Geo-strategically, Yemen  occupies  a central  position  on  the cross  roads  between  Europe, 
the Indian  Ocean  and  the Pacific. According  to Yemeni  plans, the port  of Aden  is to  play 
a  central  role  in  intercontinental  shipping,  as  a  major  container  port.  In  early  next 
century,  Yemen's  main  neighbours  in  the  East  and  North  (GCC  and  Egypt)  should  be 
linked  to  the  EC  by  free  trade/partnership  agreements,  with  a  close  political  and 
economic Euro-Middle East interaction expected  to take place. It would  therefore  only  be 
normal  for  Yemen  to be  drawn  into these emerging dynamics, provided  its own  internal 
development  continues  to keep pace. 

The  new  agreement  takes  such  possible  developments  into  account  and  even  tries  to 
shape  them  in  the  right  direction.  EC  strategy  for  upgrading  EC-Yemen  relations  as 
proposed  by  the  Commission  is based  on  the  belief  that  an  isolated  poor  Yemen  with  a 
population  of  more  than  25 million  people  by  2010 can  neither  be  in  the  interest  of  the 
Community  nor  of  Yemen's  immediate  neighbours.  In  the  structure  of  this  agreement 
future  EC  co-operation  with  Yemen  will  provide  essential  assistance 
the 
modernisation  of  Yemen's  economy  and  human  resources,  give  critical  support  to  the 
country's  structural  adjustment  process  and  help  alleviate  social  hardships  resulting 
from  this.  Furthermore,  it  will  enhance  food  security  in  Yemen,  contribute  to  the 
development  of  democratic  decision-making  and  strengthen  business  opportunities  in 
the country which are in Yemen's and  the EC's joint  interest. 

for 

Yemen 

The  Government  of  Yemen  has  repeatedly  expressed  the  wish  to  intensify  and  upgrade 
its  relations  with  the  EC.  It  looks  to  the  EC  and  EC  member  countries  as  its  main 
economic,  political  and  cultural  partners  for  the  future,  outside  the  region.  In  the  long 
term,  it  strives  to be  linked  to  Europe  in  a  relationship  as  close  as  that  established  with 
the  Mediterranean  countries;  but  it  fully  realises  that  this  could  only  be  achieved  in 
stages and  would  require substantial  progress  on  the social, economical  and  institutional 
front  within  Yemen. 

the  economic,  social, 

EC  assistance  is seen  as  a critical  factor  for  the  successful  implementation  of  the  present 
Yemen  reform  programme  and 
institutional  and  political 
modernisation  of  the  country.  This  includes,  for  example  the  efforts  to  enhance  the 
principles  of  democracy,  that  will  continue  under  the new  Prime  Minister  Mr.  Faraj  ben 
Ghanim,  who  was  indeed  elected  under  an  improved  democratic  system.  Yemen  hopes 
that  by  strengthening  relations  with  the  EC, it would  fully  benefit  from  the  full  range  of 
EC co-operation  instruments  including  investment  and  business  promotion  schemes  and 
help  for  the emerging civil society and  the democratic  process. 

3.  CONTENT OF THE AGREEMENT 

The  agreement  is  a  third  generation  non-preferential  co-operation  agreement.  Thus  it  is 
a Community  only  (first  pillar)  agreement. 

Within  this  framework  Yemen's  character  as  an  Arab  and  Middle  Eastern  country  is 
emphasised,  and  an  effort  will  be  made  to  include  Yemen  in  EC  financed  regional  co 
operation  activities. 

It  is a non-preferential  agreement  providing  for  Most  Favoured  Nation  treatment.  CFSP 
issues are not touched  upon  and no financial  protocol is  foreseen. 

Concerning issues  related to Home and Justice Affairs  which have both first  and third 
pillar aspects, such as the fight against drug trafficking  and money laundering, there is 
an emphasis on working within the limits of the EC and Yemen competencies. 

Action specifically targeting the poorest sections of the population is founded on respect 
for  human  rights  and  democratic  principles  and  will  seek  to  achieve  sustainable 
development. 

The body of the Agreement contains provisions on the various fields of co-operation and 
covers: 

1.  Trade and commercial co-operation. 

2.  Development co-operation. Similar to the 1984 agreement, this forms the basis of the 
treaty, although a renewed emphasis will be placed on the importance of reducing 
poverty  and  population  growth 
in  order  for  sustainable  socio-economic 
development to continue. 

Economic  co-operation.  Following  the  recent  economic  advancements  there  is 
potential for increasingly wide ranging co-operation in this area; the article includes 
for example, the establishment of a regular dialogue on macro-economic policy. 

Co-operation  on  environmental,  cultural,  scientific  issues,  social  and  human 
resource development. 

5.  Financial co-operation. 

An appropriate institutional  framework is set up to ensure  the proper  functioning  and 
implementation of the Agreement. In particular, this involves  a Joint Committee  of the 
kind set up for other bilateral framework co-operation agreements by the Community. 

The text of the Agreement initialled on 21st April 1997 is annexed. 

4.  CONCLUSION 

The Commission considers  the conclusion of a new, up-to-date co-operation  agreement 
with Yemen of strategic importance for the EC and in line with Yemen's repeated wish to 
intensify and upgrade its relations with the EC. 

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

*  _  5~ 

EXPLANATORY MEMORANDUM 

1.  By its decision of 24th February 1997, the Council authorised the Commission to open 
negotiations  with  the Republic  of  Yemen with  a view  to concluding  a co-operation 
agreement and adopted directives to that end. 

2.  The negotiations began on 21st April 1997 and were concluded by the initialling, the 
same day, of the Agreement between the European Community  and the Republic of 
Yemen. 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, 

3.  The  Commission  considers  that  the  initialled  text  is  in  line  with  the  negotiating 

directives adopted by the Council on 24th February 1997. 

4.  The legal basis of the Agreement is Articles 113 and 130y, in conjunction with the first 
sentence of Article 228 § 2 and the first subparagraph of Article 228 § 3 of the Treaty 
establishing the European Community: the European Parliament is to be consulted. 

With a view  to the approval  of  the Co-operation  Agreement  between  the European 
Community  and the Republic of Yemen, the Commission proposes  that the Council 
adopt the annexed proposal for a Council Decision. 

Proposal  for  a 
COUNCIL  DECISION 

concerning  the  conclusion  of  the  Co-operation  Agreement  between  the  European 
Community and the Republic of Yemen 

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  co-operation  should 
development  of the developing countries, their smooth and  gradual  integration  into  the 
world economy and the alleviation of poverty in these countries; 

foster 

Whereas  the  Community  should  approve,  in  pursuit  of  its  objectives  in  the  sphere  of 
external  relations, the Co-operation  Agreement  between  the  European  Community  and 
the Republic of Yemen, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Co-operation  Agreement  between  the  European  Community  and  the  Republic  of 
Yemen is hereby approved on behalf of the Community. 

The text of this Agreement is attached to this Decision. 

The  President  of  the  Council  shall  on  behalf  of  the  Community  give  the  notification 
provided for in Article 21 of the Agreement. 

Article 2 

Article 3 

The  Commission,  assisted  by  representatives  of  the  Member  States, shall  represent  the 
Community  in  the  Joint  Co-operation  Committee  provided  for  in  Article  15  of  the 
Agreement. 

Article 4 

This decision shall be published  in the Official  journal of the European  Communities. 

Done at  Brussels 

For  the  Council 

The  President 

1  The date of entry into force of the Co-operation Agreement will be published  in the Official  Journal of the 

European Communities by the General Secretariat of the Council. 

CO-OPERATION AGREEMENT 

BETWEEN 

THE EUROPEAN COMMUNITY 

AND 

THE REPUBLIC OF YEMEN 

CO-OPERATION  AGREEMENT 
between the European  Community and the Republic of  Yemen 

THE COUNCIL OF THE EUROPEAN  UNION, 

of the one part, and 

THE GOVERNMENT  OF THE REPUBLIC OF YEMEN, 

of the other part, 

hereinafter  referred  to as "the Parties", 

RECOGNISING  the  excellent  relations  and  links  of  friendship  and  co-operation 
between  the Community  and the Republic of  Yemen; 

REAFFIRMING  the  importance  of  further  strengthening  the  links  between  the 
Community  and the Republic of  Yemen; 

EMPHASISING  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, and to a continuing dialogue thereon; 

CONSIDERING  the desirability of amplifying  the framework  of relations between  the 
European  Community  and  the Middle  East,  and  of  regional  co-operation  between  the 
Middle East countries, and recognising  that co-operation  with  the Republic  of  Yemen 
forms  an integral part of the European  Community's  policy in favour  of  strengthening 
Euro-Arab relations in both the Mediterranean  and the Middle East; 

REAFFIRMING  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; 

CONSIDERING  the  desire  of  the  Parties,  within  the  bounds  of  their  respective 
competence,  to  create  favourable  conditions  for  the  development  of  trade  and 
investment  between  the  Community  and  the  Republic  of  Yemen,  and  the  need  to 
uphold  the  principles  adopted  by  the  WTO  whose  purpose  is  to  promote  trade 
liberalisation  in  a  stable,  transparent  and  non-discriminatory  manner  which  takes 
account of the Parties' economic  differences; 

RECOGNISING  the  need  to  support  the  economic  and  social  development  of  the 
Republic  of  Yemen,  and  particularly  the  Yemeni  government's  efforts  to  improve  the 
living  conditions  of  the  poor  and  disadvantaged  sections  of  the  population,  with  a 
special emphasis on the status of  women; 

10 

Underlining  the  importance  attached  by  the  Parties  to  the  promotion  of  a  balanced 
demographic  growth,  to  the  eradication  of  poverty,  to  the  protection  of  the 
environment  on a global  as well  as at national  and local  levels; the recognition  of  the 
links between population, economic development and the natural environment; 

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

THE COUNCIL OF THE EUROPEAN UNION, 

President 

Manuel MARÎN 

Vice-President of the Commission of the European Communities, 

THE GOVERNMENT OF THE REPUBLIC OF YEMEN 

Minister of Planning and Development, 

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

HAVE AGREED AS FOLLOWS: 

Article 1 

Basis 

Relations  between  the  Parties,  as  well  as  all  the provisions  of  the  Agreement  itself, 
shall  be  based  on  respect  of  democratic  principles  and fundamental  human  rights  as 
set  out  in  the  Universal  Declaration  on  Human  Rights,  which  guides  their  domestic 
and international policies and constitute an essential element of this Agreement. 

11 

Article 2 

Objectives 

The principal objective  of the Agreement is to enhance and develop, under a concept 
of dialogue, the various aspects of co-operation between the Parties in the areas which 
fall  within  the bounds  of  their  respective  competence  including  development,  trade, 
economic  and  cultural  co-operation,  environmental  protection  and  sustainable 
management  of  natural  resources, and human  resources  development.  Consequently, 
the Parties will have the following aims: 

(a) 

(b) 

(c) 

(d) 

(e) 

to promote and intensify  trade between the Parties, and to encourage 
the steady expansion of sustainable economic co-operation, in 
accordance with the principles of equality and mutual advantage; 

to strengthen co-operation in fields closely related to economic 
progress and benefiting both Parties; 

to  contribute  to  Yemen's  efforts  to  improve  the  quality  of  life  and 
standards of living of the most disadvantaged and poorest groups of the 
population, together with measures using rural development  to combat 
poverty  in  the  countryside  and  assistance  with  developing  human 
resources in a number of sectors of the economy; 

to take the requisite measures to protect the world, regional and 
national environments and manage natural resources sustainably, 
taking  account of the link between the environment and development; 

to extend their co-operation to the field of culture, communication and 
information to improve mutual understanding and strengthen existing 
links between them. 

Article 3 

Trade co-operation 

(a)  Within the limits of its respective competence, the Community will 

conduct trade in accordance with the Agreement establishing the WTO 
and the Republic of Yemen will for its part seek to conduct trade 
accordingly. 

(b) 

In conformity  with the Provisions of the General Agreement on Tariffs and 
Trade (GATT 1994) and in regard to imported or exported goods, 
both sides will grant each other most favoured nation treatment.  These 
provisions shall not apply to preferences accorded by either Party under 
any arrangement establishing a customs union, a free trade area or a 
preferential treatment area. 

12 

(c) 

The objective of co-operation in this field will be to develop and 
diversify  two-way EC-Yemen trade and to improve market access in 
line with the Parties' respective economic situations. 

(d) 

In particular, it will include provisions on the following matters: 

-  The  Parties  undertake  to  develop  and  diversify  their  reciprocal 
commercial  exchanges  and to  improve  market  access,  in  a manner 
compatible  with  their  respective  economic  situations  and  level  of 
development. 

-  The Parties are committed to improving the terms of access for their 
products  to  each  other's  markets.  In  this  context,  they  shall  grant 
each  other  the  most  favourable  conditions  for  imports  and  exports 
and they agree to examine ways and means of eliminating barriers to 
trade  between  them,  notably  non-tariff  barriers,  taking  account  of 
the work already done in this connection by international fora. 

-  The  Parties  agree  to  promote  the  exchange  of 
concerning mutually beneficial  market opportunities. 

information 

-  Within the limits of their respective competence, the Parties agree to 
improve the co-operation  in customs matters between the respective 
authorities,  especially  with  regard to  the  possibility  of  professional 
training, 
simplification  and  harmonisation  of  customs 
procedures, and assistance to combat customs fraud. 

the 

-  The Parties also undertake to give consideration, each in accordance 
with its laws, to exempting  from duty, tax and other charges,  goods 
admitted  temporarily  to  their  territories  for  subsequent  re-export 
unaltered  or  for  goods  which  re-enter  their  territories  after 
processing  in  the  other  Party  and  where  such  processing  is  not 
considered  sufficient  for the goods to be treated as originating  from 
the territory of that Party. 

-  Within the limits of their respective competence, the Parties agree to 
consult  each  other in connection  with  trade or trade dispute  related 
matters,  including  property  rights  and  public  procurement,  on  any 
dispute  which  may  arise.  They  will  also  hold  consultations  in  a 
constructive  spirit on the issues of tariff, non-tariff,  services, health, 
safety or environmental measures and technical requirements. 

-  Insofar as their competencies, regulations and policies permit, the 
Parties will aim to improve exchanges of information relating to 
public procurement. 

13 

The government of Yemen shall take all necessary measures in order 
to improve the conditions for  adequate and effective  protection  and 
enforcement  of  intellectual,  industrial  and  commercial  property 
rights. 

To this end the government of Yemen shall, in particular, accede as 
soon  as  practicable  to  the  relevant  international  conventions  on 
intellectual  industrial  and commercial  property  to  which  it  is  not a 
party,  including  but  not  limited  to  the  Paris  Convention  for  the 
protection  of  industrial  property,  the  Bern  Convention  for  the 
protection  of literary and artistic works and the agreement  on trade 
related aspects on intellectual property rights (TRIPS). 

The  European  Community,  within  the  limits  of  its  competencies, 
and  the  Republic  of  Yemen,  with  regard  to  international  maritime 
services, shall  seek to ensure effective  application  of  the principles 
to  cargoes  on  a  commercial  and 
of  unrestricted  access 
non-discriminatory basis. 

In  order  to  enable  the  Republic  of  Yemen  to  fulfil  the  above 
mentioned  undertakings  and  obligations,  technical  assistance  shall 
be envisaged. 

Article 4 

Development co-operation 

The  Community  recognises  Yemen's  need  for  development  assistance  and 
acknowledges  that  without  a continuing  rapid  and  sustainable  reduction  of  poverty 
and population growth in the Republic of Yemen, the risk of constraints and  conflicts 
which could undermine the country's economic progress as well as the economic and 
social development of the population (particularly the weaker sections) will increase. 

The  Community  also  recognises  that  there  is  potential  for  its  contribution  to  the 
development  efforts  of the Republic  of Yemen  to increase both  in terms  of  size and 
impact, more particularly, in the strategic fields of poverty alleviation through primary 
education, training and improvement of working conditions, water, rural development 
and health, especially in the form of primary health care including planned parenthood 
promotion and population activities. Activities undertaken in these areas should where 
appropriate, promote equal opportunities and positively focus on girls and women.  In 
this regard the Commission is anxious to develop co-operative links with local NGOs. 

In light of the above and in accordance with the Council Regulation (EEC) No 443/92 
on Co-operation  with the ALA Countries, co-operation will continue to be developed 
within  the  context  of  a  clear  co-operation  strategy  and  dialogue  aimed  at  defining 
mutually agreed priorities, and pursuing effectiveness  and sustainability. 

14 

The  Parties  will,  within  the  limits  of  their  available  financial  means  and  within  the 
framework  of  their  respective  procedures  and  instruments,  make  available  funds  to 
facilitate  the  achievement  of  the  aims  set  out  in  the  agreement.  Within  its  financial 
planning  of  co-operation  activities, the Community  will  take  into  account  the  need  to 
ensure an appropriate balance in the geographical  distribution  of its commitments. 

The Parties  will ensure  that  actions undertaken  within  the framework  of  development 
co-operation  are  consistent  with  development  strategies  agreed  in  concertation  with 
the Bretton Woods institutions. 

Article 5 

Economic  co-operation 

Both  Parties  will  undertake,  in  accordance  with  their  respective  policies  and 
objectives  and  within  their  available  resources,  to  foster  economic  co-operation  for 
mutual  benefit  and  will  determine  together  and  to their  mutual  advantage,  within  the 
limits  of  their  respective  competencies,  the  areas  and  priorities  for  economic  co 
operation  programmes  and  activities  within  the  context  of  a  clear  co-operation 
strategy.  In  addition,  in  order  further  to  strengthen  economic  relations  between  the 
Community  and  the  Republic  of  Yemen,  a regular  economic  dialogue  will  be  set  up 
between  the  two  parties,  covering  all  areas  of  macro-economic  policy  and  including, 
within  the  limits  of  their  respective  competence,  budgetary  policy,  balance  of 
payments  and  monetary  policy.  The  aim  of  this  dialogue  is to  bring  about  closer  co 
operation  between  the  authorities  responsible  for  carrying  out  economic  policies  in 
their areas of  competence. 

Co-operation  in these areas will involve the following  broad fields  of action: 

(a) 

(b) 

(c) 

Develop a creative competitive  and sustainable economic environment in 
the Republic of Yemen by facilitating  access to Community know-how  and 
technology, inter alia, in the fields  of standards, quality control  and 
telecommunications; 

Facilitate business to business contacts, exchange of information  and other 
measures designed to  promote and protect commercial exchanges  including 
the promotion  of Yemeni exports; 

Create an environment propitious for the development  of Yemeni SMEs and 
facilitate  exchange of information  on enterprise and SME policy, particularly 
in respect of improving the business environment  and encouraging  closer 
contacts not only between  SMEs, with a view to promoting trade and 
industrial co-operation  opportunities, but also between the relevant 
Community  authorities and those Yemeni  authorities responsible for  the 
implementation  of macro-economic  adjustment; 

15 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

Conduct  a dialogue on economic co-operation  between  the Republic  of  Yemen 
and the Community  including the exchange of information  on the macro-
economic  situation  and prospects and on development  strategies; 

Reinforce  mutual understanding  of their respective economic  environments 
and business culture as a basis for effective  co-operation; 

Improve, within the limits of their respective competencies, co-operation  in 
standards and regulatory  issues between the respective authorities,  especially 
with respect to professional  training, the simplification  and harmonisation  of 
standards. 

Strengthen  management training in the Republic of Yemen  with  a view  to 
develop business operators who are able to interact effectively  with  the 
European  business  environment; 

Promote dialogue between the Republic of Yemen  and the Community  in the 
field  of energy policy, transfer  of technology  and technology  co-operation; 

Support Yemen's efforts  to modernise and restructure industry  through 
encouraging the diversification  of industrial output and improving  the relevant 
legal and administrative  framework; 

Promote the involvement of the private sector in co-operation  programmes  in 
order to strengthen  economic and industrial  co-operation  between  the Parties. 
To this effect,  the Parties shall take measures to 

-  encourage the private sector of both Parties to develop business co 

- 

operation  and 
involve the private sectors in activities developed within the framework  of 
the agreement; 

(k)  Within the limits of their respective competence, further  co-operation  as 

regards financial  services through exchanging  information  on  financial 
regulations and practices and training schemes and fostering  reform  of the 
banking and financial  systems and liberalisation of financial  services; 

(I) 

(m) 

Provide for co-operation  on transport facilities  and management  including  civil 
aviation and ports management, and further  the use of Community  standards  in 
this sector; 

Recognise the importance of co-operation  concerning the information  society 
and information  and communications  technologies that help speed up 
economic development  and trade.  Provide for  a dialogue and possibly 
assistance concerning the regulation  and standardisation  of 
telecommunications  and the development  of projects, particularly  concerning 
the application  of telematics  in priority  areas (education, health,  environment, 
transport, electronic trade). 

16 

Within  the  limits  of  their  respective  competencies,  the  Parties  will  undertake  to 
encourage  an  increase  in  mutually  beneficial  investment  by  establishing  a  more 
favourable  climate for private investments through better conditions for the transfer  of 
capital  and  by  supporting,  where  appropriate,  the  conclusion  of  conventions  on  the 
the  Member  States  of  the 
promotion  and  protection  of  investments  between 
Community  and  the  Republic  of  Yemen  on  the  basis  of  the  principles  of  non 
discrimination  and reciprocity. 

Article 6 • 

Agriculture and Fisheries 

The Parties undertake, in a spirit of understanding, to co-operate for the  modernisation 
and restructuring of agriculture and  fisheries. 

This co-operation  will be geared more especially to: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

assisting the Republic of Yemen  in developing and implementing a 
national food  security  strategy; 

the development  of stable markets; 

integrated rural development including the improvement of basic  services 
and the development  of associated economic  activities; 

the development  and improvement  of private distribution  channels, 
packaging and storage techniques, and marketing; 

support for privatisation  and private sector  development; 

the conservation  and rational management of fish  stocks; 

promotion  of the diversification  of production  and reduction  of  food 
dependency; 

the promotion  of environmentally  friendly  agriculture and  fisheries; 

the modernisation  of infrastructure  in rural  areas and rural  development; 

the promotion  of co-operation  in the sector of health, veterinary  and 
animal plant matters, aiming at dismantling trade barriers, in  accordance 
with the legislation of the Parties to the agreement; 

- 

technical  assistance and training. 

Co-operation  could  take the form  of transfers  of know-how, promotion  of  agricultural 
research, the establishment  of joint  ventures, and training  schemes. 

17 

Article  7 

Environment  Co-operation 

The  Parties  recognise  that  there  is  a  close  link  between  poverty  and  environmental 
degradation.  Thus,  the  principal  aim  of  environmental  co-operation  between  the 
Parties  -  within  the  limits  of  their  respective  competencies  -  will  be  to  enhance  the 
prospects  for  achieving  sustainable economic  growth  and  social  development,  placing 
a  high  priority  on  the  protection  of  the  natural  environment  including  marine 
in  particular 
environment  and 
desertification. 

reduction  of  environmental  degradation, 

the 

Co-operation  will be achieved in the following  ways: 

- 

- 

establishment of administrative, regulatory  and information  structures  to 
permit rational management of the environment; 

co-operation  in the development of sustainable and non-polluting  energy 
sources, as well as solutions to urban  and industrial pollution  problems; 

encouraging regional co-operation  and co-ordination; 

exchanges of information  and of expertise, particularly  in the context of 
the transfer  of appropriate environmental  technology; 

- 

training and advisory  schemes and the development  of networks. 

Article  8 

Tourism 

Within  the limits  of  the Parties'  respective  competence,  priorities  for  co-operation  in 
this sphere will be: 

intensifying  training schemes in hotel management and administration  and 
training for other related occupations; 

- 

attracting local and foreign  investment to the tourism  sector; 

tourism marketing and business co-operation; 

exchange of best practice for ensuring a sustainable development of 
tourism. 

18 

Article 9 

Regional co-operation 

Economic  and other co-operation  between  the Parties may extend to activities  under 
co-operation  or  integration  agreements  with  other  countries  of  the  same  region, 
provided the said activities are compatible with those agreements. 

Both  parties  will  encourage  operations  and  give  technical  support  to  activities 
designed to develop co-operation between the Republic of Yemen and its neighbours. 
In  this  context  a  co-ordination  with  the  Community's  decentralised  co-operation 
programmes with the Mediterranean and GCC countries should be envisaged. 

Article 10 

Science and technology 

The  Parties  will  endeavour  to  promote  co-operation  on  scientific  and  technological 
development. 

Co-operation will take the form  of: 

- 

exchanges of scientific and technological  information; 

exchanges between scientists and development of inter-institutional 
relationships in this field; 

- 

- 

- 

training activities; 

improvement of Yemeni research capabilities; 

access to regional scientific an technological co-operation networks. 

The  parties  will  determine  the areas  of  mutual  interest  together.  In  general  priority 
will  be  given  to  schemes  to  create  synergy  having  a  regional  impact,  such  as 
environment, management of soil, water and health. 

Article 11 

Co-operation against Drug Abuse 
and Control of Chemical Precursors and Money Laundering 

In  conformity  with  their  respective  competencies  and the pertinent  legal  provisions, 
the Parties will agree: 

19 

- 

- 

- 

to consider special measures against the illicit cultivation, production  and 
trade in drugs, narcotics and psychotropic substances as well as prevention 
and reduction of drug abuse. 
to co-operate in order to prevent the diversion  of drug precursor 
chemicals; 
to make every effort  in order to prevent money  laundering; 

Co-operation  in the field  of money-laundering  between  the Parties within  the limits of 
their  respective  competencies  will  aim  at  establishing  suitable  standards  against 
money  laundering  equivalent  to  those  adopted  by  the  Community  and  international 
fora in this field,  in particular the Financial Action Task Force (FATF). 

Article 12 

Social  Co-operation 

The parties  acknowledge the importance of social development  which  should  go hand 
in  hand  with  any economic  development.  They  will  give particular  priority  to  respect 
for basic social  rights. 

Within  the  limits  of  their respective  competence, co-operation  may cover  any  area of 
interest  to  the  parties. Taking  into  account  their  respective  fields  of  competence  and 
pertinent legal provisions, the parties will give priority to measures aimed at: 

- 

- 

- 
- 

the promotion of de facto equality of women in economic and social 
development and the balanced involvement of women and men in related 
decision making processes -  in particular through education  and the 
media; 
improving the working conditions and social protection of mothers and 
children; 
the improvement of the social protection  system; 
the improvement of the response to health requirements. 

Article 13 

Human Resources Development 

The  Parties  agree  that  human  resources  development  constitutes  an  integral  part  of 
both  economic  and  social  development.  They  will  undertake  to  determine  how  to 
improve  the  situation  of  education  and  vocational  training.  To  this  end,  access  of 
women  to  education,  including  technical  courses,  higher  education  and  vocational 
training,  will  receive  special  attention.  In  order  to  develop  the  level  of  expertise  of 
senior staff  in the public and private sectors, the parties will step up their co-operation 
on education  and vocational  training and encourage co-operation  between  universities 
and  firms. 

20 

Article 14 

Information, Culture and Communications 

The  Parties,  within  their  respective  areas  of  competence,  and  in  the  light  of  their 
policies  and mutual  interests, will establish co-operation  in the fields  of  information, 
culture,  cultural  heritage  and  communications,  both  to  create  a  better  mutual 
understanding  and  to  strengthen  cultural  ties  between  them,  including,  inter  alia, 
through studies and technical  assistance for the preservation of cultural heritage. 

Within the sphere of their respective competencies, such co-operation may include: 

- 

- 

- 

- 

programmes of mutual information  including the press and audio-visual media; 

conservation and restoration of monuments and buildings of architectural 
interest; 

education and training; 

cultural events. 

Article 15 

Institutional aspects 

A Joint  Co-operation  Committee  will  be established  at  official  level  to  oversee  the 
overall implementation of this agreement. 

It will meet alternatively  in the Community and the Republic of Yemen, normally at 
annual intervals. Its role will be to: 

(a)  ensure the proper functioning  of the Agreement; 

(b) 

set the priorities in relation to the aims of the Agreement; 

(c)  make suitable recommendations for promoting the objectives of the 

Agreement. 

Both  parties  emphasise  their  desire  to  see  regular  contacts  established  between  the 
European and the Yemeni Parliaments. 

21 

Article 16 

Evolutive Clause 

The Parties may, by mutual consent and within their respective  areas of competence, 
extend  this  Agreement  to  expand  co-operation,  enhance  its  level  and  add  to  it  by 
means of future agreements on specific sectors or activities. 

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

Article'17 

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 the Republic of Yemen in the framework  of economic co-operation  or 
to  conclude,  where  appropriate,  new  economic  co-operation  agreements  with  the 
Republic of Yemen. 

Subject  to the provisions  of  the  above paragraph,  the provisions  of  this  Agreement 
shall  replace  provisions  of  Agreements  concluded  between  Member  States  of  the 
European  Union  and  the  Republic  of  Yemen  where  such  provisions  are  either 
incompatible with or identical to the provisions of this Agreement. 

Article 18 

Non-execution of the Agreement 

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

In the selection  of  measures, priority  must be given  to those  which  least  disturb  the 
functioning  of  this  Agreement.  Such  measures  shall  be  notified  immediately  to  the 
other Party and consultation shall be held on them if the other Party so requests. 

22 

Article 19 

Appropriate Conditions for EC Experts 
under EC-funded Co-operation Activities in the Republic of Yemen 

To  facilitate  co-operation  within  the  framework  of  the  agreement,  the  Yemeni 
government  will  grant  to  EC  officials  and  experts  involved  in  implementing  co 
operation the guarantees, facilities and legal privileges usual according to international 
standards  which  are  necessary  for  the performance  of  their  functions.  Supplies  and 
goods imported to the Republic of Yemen in the framework  of the implementation of 
co-operation  activities  should  also be exempted  from  any kind  of  taxation,  levies or 
other charges. 

Article 20 

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 the Republic of Yemen. 

Article 21 

Entry into force 

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. 

This  Agreement  is  concluded  for  an  unlimited  period  unless  one  of  the  Parties 
denounces it. 

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 Arabic languages, 
each text being equally authentic. 

23 

Article 23 

Annexes 

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

Done at Brussels, 

The Council of the European Union 

The Republic of Yemen 

The Commission of the European Communities 

24 

Annex I 

Declaration on Article 18 - 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  18  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  18 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  18,  the 
other Party may avail itself of the procedure relating to settlement of disputes. 

25 

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, trademarks  and  service  marks,  software,  topographies  of 
integrated  circuits,  geographical  indications,  as  well  as  protection  against  unfair 
competition and the protection of undisclosed information of know-how. 

26 

Joint Declaration on the Re-admission of Citizens 

The European  Community  recalls the importance  which  its Member  States  attach  to 
the establishment  of an effective  co-operation  with third countries  with the  objective 
of  facilitating  the  re-admission  of  citizens  of  these  latter  countries  who  find 
themselves in an irregular situation in the territory of a Member State. 

The Republic of  Yemen  accepts the engagement  to finalise  re-admission  agreements 
with those Member States of the European Union which request it. 

27 

FINANCIAL STATEMENT 

1.  Title of Operation: 

Proposal for a Council Decision to conclude a Co-operation Agreement 
between 

Community 

Republic 

and 

the 

the 

of 

Yemen. 

2.  Budget Headings Involved: 

See Annex 

3.  Legal basis: 

The legal basis of the Agreement is Articles  113 and  130y, in conjunction  with the 
first  sentence of Article 228 § 2 and the first  subparagraph  of Article 228  § 3 of 
the Treaty establishing  the European  Community: the European  Parliament  is to 
be consulted. 

4.  Description of Operation: 

4.1  General objective 

Framework agreement for commercial, economic and development 
co-operation to upgrade bilateral EC-Yemen relations. 

4.2  Period cover 

Unlimited duration. 

4.3  Target population: 

The population of Yemen. 

5.  Classification of Expenditure or Revenue: 

5.7  Non Compulsory expenditure 

28 

5.2  Differentiated appropriations 

5.3  The projects launched under the Agreement will not engender any specific 

revenue 

6.  Type of Expenditure: 

- Grant up to 100%: yes 

7.  Financial Impact on Appropriations for Operations 

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

and total cost) 

To be decided on a case by case basis. Grants through co-financing with 
other public or private aid donors. 

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. 

8.  Fraud prevention measures 

The Yemen authorities and the Commission will apply the normal control 
measures in the implementation of the agreement as foreseen by each Financing 
Agreement and contract. 

9.  Elements of cost-effectiveness analysis 

9.1  Specific and quantified objectives; target population 

To be defined on a case by case basis. 

29 

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. 

10.  Administrative expenditure (Section HI. 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. 

10.1  Effect of the number of posts 

Type of Post 

Staff  to be assigned to managing  the 
operation 

Source 

Duration 

Additional 
resources 

Existing 
resources  in 
the  DG  or 
department 
concerned 

0.5 A 

0.5 B 

0.5 C 

1.5 

0.5 

0.5 

0.5 

1.5 

Permanent posts 

Temporary posts 

Official  or  A 
temporary  B 
C 
staff 

TOTAL 

3 

1 

1 

1 

3 

-

" 

30 

10.2  Overall financial impact of additional human resources 

Amounts 

Method of calculation (ecu) 

Officials 

Temporary staff 

Other  resources  (indicate 
budget heading) 

TOTAL 

The costs of the human resources required will be covered by existing resources. 

The estimated annual cost for titles Al, A2, A4 and A5 is 300,000 ECU/year. 

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

Budget heading 

Amounts 

Method of calculation (ecu) 

A1300 (missions) 

30.000 

8 officials/year 

TOTAL 

30.000 

The  costs  for  the  managing  and  monitoring  of  the  Agreement  will  be  through 
missions. 

31 

Annex 

FINANCIAL STATEMENT 

1.  Title of Operation 

Conclusion of a Co-operation Agreement between the Community and the 
Republic of Yemen. 

2.  Budget Headings Involved 

a)  Budget headings whose application is conditional on the existence of a 

Co-operation Agreement: 

- B7-870  Operations under commercial and economic co-operation 

agreements with third countries. 

b)  Other budget headings for which the application is not conditional on the 

existence of a co-operation agreement: 

- B6-7211  Co-operation with Third Countries and international 

organisations. 

- B7-20 

Food-Aid and Support Operations. 

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

developing countries and others, hit by disasters or serious 
crisis. 

.- B7-212  Aid towards self-sufficiency  for refugees  and displaced 

persons in Asia and Latin America. 

-  B7-217  Operations to help refugees and displaced persons. 

- B7-300  Financial and technical co-operation with Asian developing 

countries (1). 

- B7-301  Economic co-operation with Asian developing countries 

Environment in developing countries (1). 

(1) In the framework  of the Asia strategy  to be adopted by the budgetary  authority. 

32 

- B7-6000  Community contribution towards schemes concerning 
developing countries carried out by non-governmental 
organisations. 

- B7-6200  Environment in developing countries. 

- B7-6210  North-South Co-operation schemes in the context of the 

campaign against drug abuse. 

- B7-631  Aid for population policies and programmes in developing 

countries. 

-B7-641  Rehabilitation and reconstruction measures for the developing 

countries. 

- B7-643  Decentralised co-operation in developing countries. 

- B7-702  Human rights and democracy in the developing countries. 

- B7-872  Promotion of Community investment in developing countries 

of Asia, Latin America, the Mediterranean and South Africa by 
economic co-operation and trade agreements. 

33 

ISSN 0254-1475 

COM(97) 435  final 

DOCUMENTS 

EN 

11 

Catalogue  number  :  CB-CO-97-442-EN-C 

ISBN  92-78-23914-3 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

3V