Proposal for a Council Decision concerning the conclusion of the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, on the one part, and the United Mexican States, on the other part
Date: 1997-10-21
Institutions: European Commission
Subjects: Mexico, cooperation agreement (EU), cooperation policy, economic cooperation, political cooperation

mtf! 

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  21.10.1997 
COM(97)  527  final 

97/  0289  (AVC) 

Proposal  for  a 

COUNCIL  DECISION 

£ - • • «»  , 

. 

concerning the conclusion  of the Economic  Partnership,  Political  Co-ordination  and  Co 
operation  Agreement  between  the  European  Community  and  its  Member  states,  on  the 
one  part,  and  the  United  Mexican  States,  on  the other  part 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

1.  By means  of a decision  of 25  June  1996,  the  Council  authorised  the  Commission  to 
open  negotiations  with  Mexico  with  a  view  to  concluding  a  new  political,  economic 
and  trade  agreement between  the European  Community  and  its Member  States, of the 
one part,  and  the United Mexican  States, of the other  part,,  and  approved  negotiating 
directives  to that  end. 

2.  Following  exploratory  discussions  held  on  10-11  October  1996,  formal  negotiations 
took  place  in  Brussels  on  10,  11 and  12 June  1997,  resulting  in  the  draft  agreement 
on  both  an  Economic  Partnership,  Political  Co-ordination  and  Co-operation 
Agreement  and  an  Interim  Agreement  on Trade and  Trade-related  Aspects. 

3.  The  texts  were  initialled  on  23  July  1997  following  a  detailed  examination  by  and 

the approval  of  the Council. 

4.  The  "Economic  Partnership,  Political  Co-ordination  and  Co-operation  Agreement", 
will replace  the Framework  Agreement  for  Co-operation  between  the EC  and  Mexico 
signed  in  1991. 

5.  The  Commission  considers  that  the  initialled  Agreement  conforms  to  the  negotiating 

directives adopted  by the Council. 

6.  The  Commission  considers  the  outcome  of  the  negotiations  to  be  satisfactory  to  both 
parties and  proposes  that  the Council  should  approve  the  results  of  these  negotiations, 
should  initiate  the procedures  for  the  signature of  the  Economic  Partnership,  Political 
Co-ordination  and  Co-operation  Agreement  and  should  adopt  the  proposal  for  a 
Decision  in the Annex 

7.  The  European  Parliament  will  be  asked  to  give  its  assent  to  the  Agreement  prior  to 
its  conclusion.  The  Agreement  must  also  be  ratified  by  the  Member  states  before  it 
enters  into  force 

co 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of the Economic Partnership, Political Co-ordination  and Co 
operation  Agreement between the European Community and its Member states, on the 
one part, and the United Mexican States, on the other part 

C/O 

THE COUNCIL  OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  54(2),  57,  66,  73C(2),  75,  84(2),  113 and  130y thereof,  in  conjunction  with  the 
second  sentence of Article 228(2) and the second  subparagraph  of Article 228(3) thereof, 

Having regard to the proposal  from  the Commission, 

Having regard to the assent of the European  Parliament, 

the  Economic  Partnership,  Political  Co-ordination  and  Co-operation 
Whereas 
Agreement  between  the  European  Community  and  its  Member  states,  on  the  one  part, 
and  the  United  Mexican  States,  on  the  other  part,  signed  in 
, 
should be approved, 

on 

HAS DECIDED  AS FOLLOWS: 

Article 1 

The  Economic  Partnership,  Political  Co-ordination  and  Co-operation  Agreement 
between  the  European  Community  and  its  Member  states,  on  the  one  part,  and  the 
United  Mexican  States,  on  the  other  part,  together  with  the  declarations  made  by  the 
Community  unilaterally  or jointly  with  other  parties,  is hereby  approved  on behalf  of  the 
European  Community. 

The texts are attached  to this  Decision. 

Article 2 

The President  of  the Council  shall  give  the notification  provided  for  in  Article  60  of  the 
Agreement  on behalf  of  the European  Community. 

Article 3 

1.  The  position  to  be  taken  by  the  Community  within  the  Joint  Council  and  the  Joint 
Committee  established  by  the  Agreement,  shall  be  laid  down  by  the  Council,  on  a 
proposal from  the Commission,  in accordance with the corresponding  provisions  of the 
Treaties establishing the European  Community. 

2.  The  President  of  the  Council  shall  in  accordance  with  Article  46  of  the  Agreement, 
preside  over  the  Joint  Council  and  present  the  position  of  the  Community.  In 
accordance with  Article 48 of the Agreement,  a representative  of the  Commission  shall 
preside over the Joint  Committee and present  the position  of the Community. 

C  nf  *> 

Article 4 

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

Done at Brussels, 

For the Council 
The President 

<v  I  v /) 

ECONOMIC  PARTNERSHIP, 
POLITICAL COORDINATION AND 
COOPERATION  AGREEMENT 
BETWEEN THE EUROPEAN  COMMUNITY 
AND ITS MEMBER  STATES 
OF THE ONE PART, 
AND THE UNITED MEXICAN  STATES 
OF THE OTHER PART. 

THE KINGDOM  OF BELGIUM, 

THE KINGDOM OF DENMARK, 

THE FEDERAL REPUBLIC  OF GERMANY, 

THE HELLENIC REPUBLIC, 

THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 

IRELAND, 

THE ITALIAN REPUBLIC, 

THE GRAND DUCHY OF LUXEMBOURG, 

THE KINGDOM OF THE NETHERLANDS, 

THE REPUBLIC  OF AUSTRIA, 

THE PORTUGUESE  REPUBLIC, 

THE REPUBLIC  OF FINLAND, 

THE KINGDOM OF SWEDEN, 

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN  IRELAND, 

Parties  to  the  Treaty  establishing  the  European  Community  and  the  Treaty  on 
European  Union,  hereinafter  referred  to  as  the  "European  Community  Member 
States", 

THE EUROPEAN  COMMUNITY, 

hereinafter  referred  to as the "Community" of the one part, and 

THE UNITED MEXICAN  STATES, 

hereinafter  referred  to as "Mexico", of the other part, 

CONSIDERING  their common  cultural  heritage and the strong  historical^ political  and 
economic ties which unite them; 

MINDFUL  of  the  broader  aim  to  develop  and  reinforce  the  overall  framework  of 
international  relations, in particular, between Europe and Latin  America, 

CONSIDERING  the  significant  contribution  made  by  the  Framework  Agreement  for 
Cooperation  between  the  Community  and  Mexico  signed  on  26  April  1991  in 
Luxembourg to  strengthening these ties; 

CONSIDERING  their  mutual  interest  in establishing  new contractual  links in order  to 
further  strengthen  their  bilateral  relations,  mainly  through  greater  political  dialogue, 
progressive  and  reciprocal  liberalisation  of  trade,  liberalisation  of  current  payments, 
capital  movements  and  invisible  transactions,  promotion  of  investment,  and  through 
broader  cooperation; 

CONSIDERING  their,  full  commitment  to  respecting  democratic  principles  and 
fundamental  human  rights  set  out  in  the  Universal  Declaration  of  Human  Rights,  as 
well  as  to  the  principles  of  international  law  regarding  friendly  relations  and 
cooperation  between  States  in  accordance  with  the  United  Nations  Charter,  the 
principles  of  the  rule  of  law  and  good  government,  as  set  out  in  the  Rio  Group-
European Union Ministerial Declaration  adopted in Sâo Paulo in 1994; 

MINDFUL  that  in  order  to  intensify  relations  in  all  fields  of  common  interest,  their 
political  dialogue  should  be  institutionalised  at  both  the  bilateral  and  international 
levels; 

CONSIDERING the importance which both  Parties  attach to  the principles  and  values 
set  out  in  the  final  Declaration  of  the  World  Summit  for  Social  Development  in 
Copenhagen  in March  1995; 

MINDFUL  of the importance  that both Parties  attach  to the proper  implementation  of 
the  principle  of  sustainable  development,  as  agreed  and  set  out  in  Agenda  21  of  the 
1992 Rio Declaration  on Environment  and Development; 

CONSIDERING their attachment  to the principles of the market  economy  and  mindful 
of the  importance  of  their  commitment  to  free  international  trade  in  conformity  with 
the  rules  of  the  World  Trade  Organisation  (WTO)  and  in  the  context  of  their 
membership  of  the  Organisation  for  Economic  Cooperation  and  Development 
(OECD), with particular emphasis on the importance of open  regionalism; 

MINDFUL  of  the  terms  of  the  Joint  Solemn  Declaration  signed  in  Paris  on  2  May 
1995  in  which  both  Parties  decided  to  give  their  bilateral  relationship  a  long  term 
perspective in all areas; 

CONCLUDE  this  Economic  Partnership,  Political  Coordination  and  Cooperation 
Agreement. 

TITLE I 

NATURE AND SCOPE 

ARTICLE 1 

Basis of the Agreement 

Respect  for  democratic  principles  and  fundamental  human  rights  proclaimed  by  the 
Universal  Declaration  of Human  Rights,  underpins  the  domestic  and  external  policies 
of both Parties and constitutes an essential element of this Agreement. 

ARTICLE 2 

Nature and  Scope 

The object  of this Agreement  is to  strengthen  existing  relations between  the Parties  on 
the  basis  of  reciprocity  and  mutual  interest.  To  this  end,  the  Agreement  shall 
institutionalise  the political  dialogue,  strengthen  commercial  and  economic relations by 
means  of the  liberalisation  of trade  in conformity  with  the  rules  of the  WTO  and  shall 
reinforce  and broaden  cooperation. 

TITLE  II 

POLITICAL  DIALOGUE 

ARTICLE 3 

1.  The  Parties  agree  to  institutionalise  an  intensified  political  dialogue  based  on  the 
principles referred  to  in Article  1 covering  all bilateral  and  international  matters  of 
mutual  interest  and  leading  to  closer  consultation  between  the  Parties  within  the 
context  of the international  organisations to which they both belong. 

2.  The  dialogue  shall  be  conducted  in  accordance  with  the  "Joint  Declaration  on 
Political  Dialogue between  the European  Union  and Mexico",  which  shall form  an 
integral  part  of the Agreement  and which is contained  in the Final  Act.. 

3.  The  ministerial  dialogue  provided  for  in  the  Joint  Declaration  shall  take  place 

mainly within the Joint  Council  established  by Article 45. 

TITLE III 

TRADE 

ARTICLE 4 

Objective 

The objective  of this Title is to establish a framework  to encourage the development  of 
trade  in  goods  and  services,  including  a  bilateral  and  preferential,  progressive  and 
reciprocal liberalisation  of trade in goods and services, taking into account the  sensitive 
nature  of  certain  products  and  service  sectors  and  in  accordance  with  the  relevant 
WTO rules. 

ARTICLE 5 

Trade in goods 

In  order  to  achieve  the  objective  laid  down  in  Article  4,  the  Joint  Council  established 
by  Article  45  of  the  Agreement  shall  decide  on  the  arrangements  and  timetable  for  a 
bilateral,  progressive  and  reciprocal  liberalisation  of  tariff  and  non-tariff  barriers  to 
trade in goods,  in accordance with the relevant  WTO  rules, in particular  Article  XXIV 
of  the  GATT,  and  taking  account  of  the  sensitive  nature  of  certain  products.  This 
decision shall address, in particular,  the following  matters: 

(a) 

coverage and transitional  periods; 

(b) 

customs duties on imports and exports and charges having an equivalent  effect; 

(c) 

quantitative  restrictions  on  imports  and  exports  and  measures  having  equivalent 
effect; 

(d)  national  treatment  including  the  prohibition  of fiscal  discrimination  in respect  of 

taxes imposed  on goods; 

(e) 

anti-dumping and countervailing  measures; 

(f) 

safeguard  and surveillance measures; 

(g) 

rules of origin and administrative  cooperation; 

(h) 

customs  cooperation; 

(i) 

customs valuation; 

(j) 

technical  regulations  and  standards,  sanitary  and  phyto  sanitary  legislation, 
mutual  recognition of conformity  assessment,  certifications,  marks systems, etc; 

(k)  general  exceptions justified  on grounds of public morality,  public policy or public 
security; the protection  of human, animal  or plant  life or health; the protection  of 
industrial, intellectual  and commercial  property, etc. 

(1) 

restrictions in case of balance of payments difficulties. 

-  -

ARTICLE 6 

Trade in services 

In order to  achieve the  objective  laid  down  in Article 4 , the Joint  Council  established 
by  Article  45  of  the  Agreement,  shall  decide  on  the  appropriate  arrangements  for  a 
progressive  and  reciprocal  liberalisation  of  trade  in  services,  in  accordance  with  the 
relevant  WTO  rules,  in  particular,  Article  V  of  the  General  Agreement  on  Trade  in 
Services  (GATS),  and  taking  due  account  of the  commitments  already  undertaken  by 
the Parties within the framework  of that  agreement. 

ARTICLE 7 

The decisions  of the Joint  Council  referred  to  in Articles  5 and  6 of the  Agreement  in 
respect  of trade  in goods  and  services,  shall  adequately  cover  all these  issues  within  a 
comprehensive  framework  and  shall  enter  into  force  as  soon  as  they  have  been 
adopted. 

TITLE IV 

CAPITAL MOVEMENTS  AND  PAYMENTS 

ARTICLE 8 

Capital movements and  payments 

The objective  of this Title is to establish a framework  to  encourage the progressive  and 
reciprocal  liberalisation  of  capital  movements  and  payments  between  Mexico  and  the 
Community,  without  prejudice  to  other  provisions  in  this  Agreement  and  further 
obligations  under  other 
international  agreements  that  are  applicable  between  the 
Parties. 

ARTICLE 9 

In order  to  achieve the  objective  laid  down  in  Article  8,  the  Joint  Council  shall  adopt 
the measures  and  timetable  for  a progressive  and  reciprocal  elimination  of  restrictions 
on  capital  movements  and  payments  between  the  Parties,  without  prejudice  to  other 
international 
provisions  in  this  Agreement  and  further  obligations  under  other 
agreements  that  are  applicable  between  the  Parties.  This  decision  shall  address,  in 
particular, the following  matters: 

(a)  the definition,  content,  extension  and  substance  of the  concepts  included  explicitly 

or implicitly in this Title; 

(b)  capital  transactions  and  payments,  including  national  treatment,  to  be  covered  by 

the  liberalisation; 

(c)  scope of the liberalisation  and transitional  periods; 

-  -

(d)  the  inclusion  of  a  clause  allowing  the  Parties  to  maintain  restrictions  in  this  area 
justified  on grounds of public policy, public security, public health and  defence; 

(e)  the inclusion of clauses allowing the Parties to introduce restrictions in this area in 
case of difficulties  in the  operation  of exchange  rate  or monetary  policy  of one  of 
the  Parties,  balance  of  payments  difficulties  or,  in  conformity  with  International 
Law, the imposition of financial  restrictions on third Countries. 

TITLE V 

PUBLIC PROCUREMENT. COMPETITION,  INTELLECTUAL  PROPERTY 
AND OTHER TRADE-RELATED  PROVISIONS 

ARTICLE  10 

Public procurement 

1.  The Parties  shall  agree  to  the  gradual  and  mutual  opening  of  agreed  government 

procurement  markets on a reciprocal basis. 

2. 

In order to  achieve this objective,  the Joint  Council  shall decide on the  appropriate 
arrangements  and timetable.  The decision  shall address, in particular,  the  following 
matters: 

a)  coverage of the agreed  liberalisation; 

b)  non-discriminatory  access to the agreed markets; 

c) 

threshold values; 

d) 

fair  and transparent  procedures; 

e)  clear challenge procedures; 

f)  use of information  technology. 

ARTICLE  11 

Competition 

1.  The Parties  shall agree on the appropriate measures  in order to  prevent  distortions 
or  restrictions  of  competition  that  may  significantly  affect  trade  between  Mexico 
and  the  Community.  To  this  end,  the  Joint  Council  shall  establish  mechanisms  of 
cooperation  and  coordination  among  their  authorities  with  responsibility  for  the 
implementation  of  competition  rules.  Cooperation  shall  include  mutual  legal 
assistance,  notification,  consultation  and  exchange  of  information  in  order  to 
ensure transparency  relating to the enforcement  of competition  laws and policies. 

7 

2. 

In  order  to  achieve  this  objective,  the  Joint  Council  shall  decide  in particular,-  on 
the following  matters: 

(a)  agreements  between  undertakings,  decisions  by  associations  of  undertakings 

and concerted  practices between undertakings; 

(b)  the abuse by one or more undertakings of a dominant  position; 

(c)  mergers between undertakings; 

(d)  state monopolies of a commercial  character; 

(e)  public undertakings and undertakings to which special or exclusive rights have 

been granted. 

ARTICLE  12 

Intellectual  property 

indications 

1.  Reaffirming  the  great  importance  they  attach  to  the  protection  of  intellectual 
property  rights  (copyright,  -including  the  copyright  in  computer  programmes  and 
databases- and neighbouring rights, the rights related  to patents, industrial  designs, 
trademarks, 
including  designation 
geographical 
topographies  of integrated  circuits, as well as protection  against unfair  competition 
as  referred  to  in  Article  10  bis  of  the  Paris  Convention  for  the  Protection  of 
Industrial  Property  and  protection  of  undisclosed 
the  Parties 
undertake  to  establish  the  appropriate  measures  with  a  view  to  ensuring  an 
adequate  and  effective  protection  in  accordance  with  the  highest  international 
standards, including effective  means to enforce  such rights. 

information), 

of  origins, 

2.  To this effect,  the Joint Council  shall decide on: 

(a)  a  consultation  mechanism  with  a  view  to  reaching  mutually  satisfactory 

solutions in the event of difficulties  in the protection  of intellectual  property; 

(b)  the  detailed  measures  to  be  adopted  in  pursuance  of  the  objective  set  out  in 
paragraph  1,  taking  into  account  in  particular  the  relevant  multilateral 
conventions on intellectual  property. 

TITLE VI 

COOPERATION 

ARTICLE  13 

Dialogue on cooperation  and economic  matters 

1.  The  Joint  Council  shall  institute  a  regular  dialogue  in  order  to  intensify  and 
improve the cooperation  provided  for in this Title which will include, in particular: 

a) 

information  exchange  and  the  periodic  revision  of  the  development-  of 
cooperation 

b)  coordination  and  supervision  of  the  implementation  of  sectoral  agreements 
provided for in this Agreement,  as well as the examination  of the possibility of 
new agreements of this type. 

2. 

It shall also establish a regular dialogue on economic matters that  shall include the 
analysis and exchange of information,  in particular on the macroeconomic aspects, 
in order to  stimulate trade and investments. 

ARTICLE  14 

Industrial  cooperation 

1.  The Parties  shall  support  and  promote measures to  develop  and  strengthen  efforts 
to  set  in motion  a dynamic,  integrated  and  decentralised  management  of  industrial 
cooperation  in  order  to  create  a  climate  conducive  to  economic  development, 
taking account  of their mutual interests. 

2.  Such cooperation  shall focus in particular on: 

(a)  strengthening  contacts  between  both  Parties'  economic  operators,  by  means 
of  conferences,  seminars,  missions  to  seek  out  industrial  and  technical 
opportunities,  round  tables  and  general  and  sector-specific  fairs,  with  a  view 
to  identifying  and  exploiting  areas of mutual  business interest  and  to  boosting 
trade,  investment  and industrial cooperation  and technology-transfer  projects; 

(b)  strengthening  and  extending  the  existing  dialogue  between  both  Parties' 
economic  operators  through  the  promotion  of  further  consultation  and 
coordination  activities in order to identify  and eliminate  obstacles to  industrial 
cooperation,  to  encourage  respect  for  competition  rules,  to  ensure  the 
consistency  of  overall  measures  and  to  help  industry  adapt  to  market 
requirements; 

(c)  promoting  industrial  cooperation  initiatives  in  the  context  of  the  process  of 
to  encourage 

privatisation  and 
investments by means of industrial cooperation between  undertakings. 

liberalisation  of  both  Parties  in  order 

(d)  supporting  modernisation,  diversification,  innovation,  training,  research  and 

development  and quality initiatives. 

(e)  promoting  the  participation  of  both  Parties  in  pilot  projects  and  in  special 

programmes according to their specific terms. 

ARTICLE  15 

Investment  promotion 

The  Parties  shall  help  to  create  an  attractive  and  stable  environment  for  reciprocal 
investment. 

Such cooperation  shall take the form  inter alia  of: 

(a)  arrangements  for 

information, 

identification  and  dissemination 

relating 

to 

legislation and investment  opportunities; 

(b)  support  for  the  development  of  a  legal  environment  conducive  to  investment 
between  the  Parties,  where  appropriate,  by  the  conclusion  between  the  Member 
States  and  Mexico,  of  agreements  to  promote  and  protect  investment  and 
agreements to prevent double taxation; 

(c)  the development  of harmonised  and simplified  administrative procedures; 

(d)  the  development  of  mechanisms  for  joint  investments,  in  particular,  with  the 

SMEs of both Parties. 

ARTICLE  16 

Financial  Services 

1.  The  Parties  undertake  to  establish  cooperation  in  the  financial  services  sector,  in 
conformity  with  their  laws,  regulations  and  policies  and  in  accordance  with  the 
rules  and  disciplines  of  the  General  Agreement  on  Trade  in  Services  (GATS),  in 
light of their mutual interest  and long and medium-term  economic  objectives. 

2.  The Parties  agree to  work  together  both  bilaterally  and  at  the  multilateral  level  to 
increase  mutual  understanding  and  awareness  of  their  respective  business 
environments  and 
financial 
regulations,  financial  supervision  and  control  and  other  aspects  of  common 
interest. 

to  bring  about  exchanges  of 

information  on 

3.  Such  cooperation  shall  have the particular  objective  of encouraging  improved  and 

diversified  productivity  and  competitiveness in the financial  services sector. 

ARTICLE  17 

Cooperation  on small and medium-sized  enterprises 

1.  The Parties  shall  promote  a favourable  environment  for  the  development  of  small 

and medium-sized  enterprises. 

2.  Such cooperation  shall consist in: 

(a)  promoting  contacts  between  economic  operators,  encouraging 

joint 
investments  and  establishing joint  ventures  and  information  networks  through 
existing  horizontal  programmes  such  as  ECIP,  AL-INVEST,  BRE  and  BC-
NET; 

(b)  facilitating  access 

to 

finance,  providing 

information  and 

stimulating 

innovation. 

10 

ARTICLE  18 

Technical regulations and conformity  assessment 

The  Parties  undertake 
assessment. 

to  cooperate  on  technical  regulations  and  conformity 

ARTICLE  19 

Customs 

1.  The purpose of customs cooperation  shall be to ensure fair trade. 

The Parties undertake  to  promote  customs  cooperation  with  a view  to  improving 
and consolidating the legal framework  for their trade relations. 

2.  Such cooperation  shall deal, in particular, with the following: 

(a)  exchanges of  information; 

(b)  the  development  of  new  training  techniques  and  coordination  of  activities 
which should  be undertaken  within the international  organisations  specialising 
in this field; 

(c)  exchanges  of  officials  and  senior  personnel  from  the  customs  and  tax 

administrations; 

(d)  the simplification  of customs procedures for the clearance of goods; 

(e)  technical assistance, whenever necessary. 

3.  Without  prejudice  to  other  forms  of  cooperation  provided  for  under  this 
Agreement,  the  Parties  state  their  interest  in  considering,  in  the  future,  the 
conclusion  of  a  protocol  on  mutual  administrative  assistance  in  the  field  of 
customs, within the institutional framework  of this Agreement. 

ARTICLE 20 

The information  society 

1.  The  Parties  recognise  that  information  and  communication  technologies  are  key 

elements of modern life and vital to economic and social  development. 

2.  Cooperation  in this area shall focus in particular on: 

(a)  a dialogue on all aspects of the information  society; 

(b)  exchanges  of information  and  any technical  assistance  required  in  connection 
with  regulations  and  standardisation,  conformity  testing  and  certification  for 
information  and telecommunication  technologies; 

11 

(c)  the  dissemination  of  new  telecommunications  and  information  technologies 
and  the  refining  of  new  services  in  advanced  communication,  services  and 
information technology facilities; 

(d)  promoting  and  undertaking  joint  research  and  technological  and  industrial 
development  projects  in  the  field  of  new  information,  communication, 
telematics and information society technologies; 

(e)  promoting  the  participation  of  both  Parties  in  pilot  projects  and  special 

programmes in accordance with the terms of the latter; 

(f)  the interconnection and interoperability of telematic networks and services; 

(g)  a  dialogue  on  regulatory  cooperation  concerning 

international  on-line 
services,  including  aspects  related  to  the  protection  of  privacy  and  personal 
data; 

(h)  the reciprocal access to data bases according to terms to be agreed upon. 

ARTICLE 21 

Cooperation in agriculture and the rural sector 

1.  The  Parties  undertake  to  promote  development  and  cooperation 

in  the 

agricultural, agroindustrial and rural sectors. 

2.  To this end they shall examine, inter alia, the following: 

(a)  measures  to  harmonise  health,  plant-health  and  environmental  standards  and 
rules,  with  a  view  to  facilitating  trade,  taking  account  of  the  legislation  in 
force  for  both  Parties  and  in  conformity  with  the  rules  of  the  WTO,  in 
addition to the terms of Article 5. 

(b)  the potential for exchanging information and setting up projects and activities, 
with  that  aim  in  mind,  notably  in  the  fields  of  information,  scientific  and 
technical research and the development of human resources. 

ARTICLE 22 

Cooperation on Mining 

The Parties agree to promote cooperation  in mining,  chiefly  through  operations aimed 
at the following: 

(a)  promoting  exploration,  exploitation  and  profitable  use  of  minerals  in  accordance 

with each Party's legislation in this  field; 

(b)  promoting exchanges of information, experience and technology  relating to mining 

exploration and exploitation; 

12 

(c)  promoting  exchanges  of  experts  and  performing  joint  research  to  increase 

opportunities for technological  development. 

(d)  developing measures to promote investment in  this  field. 

ARTICLE 23 

Cooperation on energy 

1.  Cooperation  between  the  Parties  shall  aim  to  develop  their  respective  energy 
sectors,  concentrating  on the promotion  of transfer  of technology  and  exchanges 
of information about their respective legislation. 

2.  Cooperation  in  this  sector  shall  mainly  be  carried  out  through:  exchanges  of 
information;  training  of  human  resources,  transfer  of  technology  and  joint 
technological  development  and  infrastructure  projects;  designing  more  efficient 
energy generation processes,  promoting the rational use of energy,  supporting the 
use of alternative renewable sources of energy which protect the environment, and 
the promotion of recycling and processing residues for use in generating energy. 

ARTICLE 24 

Cooperation on transport 

1.  Cooperation between the Parties regarding transport shall seek to: 

(a)  support the restructuring and modernisation of transport systems; 

(b)  promote operating standards. 

2. 

In this context, priority shall be given to: 

(a)  exchanges  of  information  between  experts  on  the  Parties'  transport  policies 

and other subjects of common interest; 

(b)  economic,  legal  and  technical  training  programmes  aimed  at  economic 

operators and senior public officials; 

(c)  exchanges of information on the Global Navigation  Satellite System (GNSS); 

(d)  technical  assistance  to  help  in  the  restructuring  and  modernisation  of  the 

transport system in all its forms. 

3.  The  Parties  shall  look  at  all  aspects  relating  to  international  maritime  transport 
services  to  ensure that they do not  hamper the mutual  expansion  of trade.  In this 
context,  the  liberalisation  of  international  maritime  transport  services  shall  be 
negotiated,  in accordance with the terms of Article 6 of this Agreement. 

13 

ARTICLE 25 

Cooperation on tourism 

1.  Cooperation  between  the  Parties  shall  primarily  aim  to  improve  the  exchange  of 
information  and  establish  best  practices  in  order  to  ensure  a  balanced  and 
sustainable development  of tourism. 

2. 

In this context, the Parties shall focus in particular on: 

(a)  safeguarding  and maximising the potential of natural and cultural heritage; 

(b)  respecting the integrity and interests of local communities; 

(c)  promoting cooperation between regions and towns in neighbouring countries; 

(d)  improving  training  in  the  hotel  industry,  with  particular  emphasis  on  hotel-

management  and  administration. 

ARTICLE 26 

Cooperation  on  statistics 

The  Parties  agree  to  promote  the  harmonisation  of  statistical  methods  and  practice 
with  a view  to  using,  on  a mutually  acceptable  basis,  statistics  on  trade  in  goods  and 
services and,  more generally,  on any area covered  by this Agreement  which  lends itself 
to  statistical  processing. 

ARTICLE 27 

Government 

The  Contracting  Parties  shall  cooperate  in  matters  relating  to  government  and 
institutions  at  national,  regional  and  local levels, with  a view to  promoting the training 
of human resources and administrative  modernisation. 

ARTICLE 28 

Cooperation  on combating drug trafficking,  money-laundering 
and chemical  precursors 

1. 

The Parties  shall take  the  appropriate  measures  for  cooperation  and  liaison,  that 
they  consider  appropriate,  to  intensify  their  actions  for  the  prevention  and 
reduction  of  production,  distribution  and  illegal  consumption  of  drugs,  in 
conformity  with their respective internal  legal regulations. 

2. 

Relying  on  the  competent  bodies  in  this  field,  such  cooperation  will  involve  in 
particular: 

14 

a)  developing  coordinated  programmes  and  measures  regarding  the  prevention 
of drug abuse and the treatment  and  rehabilitation  of drug  addicts,  including 
technical  assistance  programmes.  These  efforts  may  also  include  research 
and  measures  designed  to  reduce  drug  production  by  means  of  regional 
development of areas inclined to be used to produced  illegal crops; 

b)  developing coordinated  research programmes and projects on drug control; 

c)  exchange  of  information  regarding  legislative  and  administrative  treatment 
and  the  adoption  of  appropriate  measures  on  the  control  of  drugs  and  on 
combatting  money 
the 
laundering, 
Community and International Bodies active in this field; 

including  measures  adopted  by 

d)  preventing the diversion of chemical precursors and other  substances used in 
the  illegal  production  of  drugs  and  psychotropic  substances,  in  accordance 
with  the  "Agreement  on  the  Control  of  Drugs  Precursors  and  Chemical 
Substances" signed by the Parties on  13th December  1996, and in the United 
Nations Vienna Convention  of 1988. 

ARTICLE 29 

Scientific  and technological  cooperation 

1.  The Parties  agree  to  cooperate  in the field of  science  and  technology  in  areas  of 

mutual  interest, taking account  of their respective policies. 

2.  The aims of such cooperation  shall be: 

(a)  to  encourage  exchanges  of  information  and  know-how  on  science  and 
technology,  especially on the implementation  of policies and  programmes; 

(b)  to promote enduring relations between the two Parties scientific  communities; 

(c)  to promote human resources training. 

3.  Cooperation  shall take the form  of joint  research  projects  and  exchanges,  meetings 
and  training  of  scientists,  providing  for  the  maximum  dissemination  of the  results 
of research. 

4. 

In  this  cooperation,  the  Parties  shall  favour  the  participation  of  their  respective 
higher education  institutions, research  centres and productive  sectors, in particular 
small and medium sized  enterprises. 

5.  Cooperation  between  the  Parties  may  result  in  a  sectoral  Agreement  on  research 

and technological  development,  if deemed  appropriate. 

15 

ARTICLE 30 

Cooperation on training and education 

1.  The  Parties  shall  identify  ways  of  markedly  improving  the  situation  in  the 
education  and vocational  training  sector.  Special  attention  shall  be  paid  to  the 
education and training of the most disadvantaged social groups. 

2.  The  Parties  shall  step  up  cooperation  on  education,  including  higher  education, 
vocational  training and exchanges between universities and businesses, in order to 
improve the level of expertise of senior staff in the private and public sectors. 

3.  The Parties shall  place emphasis on measures designed  to  create  permanent  links 
between  their  respective  specialist  agencies  and  to  encourage  exchanges  of 
information,  know-how,  experts,  technical  resources  and  in  the  field  of  youth, 
taking  advantage  of  the  facilities  offered  by  the  ALFA  programme  and  the 
experience that both Parties have acquired in this  field. 

4.  Cooperation  between  the  Parties  may  lead,  by  mutual  consent,  to  a  sectoral 
agreement in the field of education, including higher education, vocational training 
and youth related affairs. 

ARTICLE 31 

Cultural cooperation 

1.  The  Parties  agree  to  promote  cultural  cooperation,  that  duly  respects  their 
diversity,  in  order  to  increase  mutual  understanding  and  the  spreading  of  their 
respective cultures. 

2.  The  Parties  shall  take  appropriate  measures  to  promote  cultural  exchanges  and 
carry out joint initiatives in various cultural spheres. In this regard, the Parties shall 
define,  in due time, the relevant cooperation activities and arrangements. 

ARTICLE 32 

Cooperation in the audiovisual  sector 

The  Parties  agree  to  promote  cooperation  in  this  sector,  mainly  through  training 
programmes in the audiovisual  sector and the media,  including  coproduction,  training, 
development  and distribution activities. 

ARTICLE 33 

Cooperation on information and communication 

The Parties agree to encourage  the exchange and dissemination  of information  and to 
undertake  and  support  activities  of  mutual  interest  in  the  field  of  information  and 
communication. 

16 

ARTICLE 34 

Cooperation on the environment and natural resources 

1.  The need to preserve the environmental and ecological balances shall be taken into 
account  in  all  cooperation  measures  undertaken  by  the  Parties  under  this 
Agreement. 

2.  The  Parties  undertake  to  develop  cooperation  to  prevent  degradation  of  the 
environment; to  promote the conservation and sustainable management  of natural 
resources;  to  develop,  spread  and  exchange  information  and  experience  on 
environmental  legislation, to  stimulate the use of economic  incentives  to  promote 
compliance; to  strengthen environmental  management  at all levels of government; 
to promote the training of human resources, education in environmental topics and 
the  execution  of  joint  research  projects;  to  develop  channels  for  social 
participation. 

3.  The  Parties  shall  encourage  mutual  access  to  programmes  in  this  field,  in 

accordance with the specific terms of such programmes. 

4.  Cooperation  between  the  Parties  may  lead  to  the  conclusion  of  a  sectoral 
agreement in the field of environment and natural resources if deemed appropriate. 

ARTICLE 35 

Cooperation on fisheries 

In  view  of  the  socio-economic  importance  of  their  respective  fisheries  sectors,  the 
Parties  undertake  to  develop  closer  cooperation  in  this  field  notably  through  the 
conclusion  of  a  sectorial  fisheries  agreement,  in  conformity  with  their  respective 
legislation, if deemed appropriate. 

ARTICLE 36 

Cooperation on social affairs and poverty 

1.  The Parties shall conduct  a dialogue on all aspects of the social  agenda of interest 
to one or other Party.  This should include topics related to vulnerable groups and 
regions  such  as:  indigenous  population,  the  rural  poor,  women  on  low  incomes 
and other population groups living in poverty. 

2.  The  Parties  recognise  the  importance  of  harmonising  economic  and  social 
development taking into account the need to respect the basic rights of the groups 
mentioned  in the  previous  paragraph.  The  new  basis  for  growth  should  create 
employment  and ensure a better standard  of living for the least  favoured  sections 
of the population. 

3.  The  Parties  shall  hold  periodic  consultations  regarding  cooperation  activities 
involving  civil  society  and destined to  offer  opportunities for the creation  of jobs, 
vocational training and income generation. 

17 

ARTICLE 37 

Regional cooperation 

1.  The Parties  shall promote activities aimed  at  developing joint  actions by means  of 

cooperation,  mainly in Central America and the Caribbean. 

2.  Priority  shall  be  given  to  initiatives  that:  promote  intraregional  trade  in  Central 
America  and  the  Caribbean;  stimulate  regional  cooperation  on  the  environment 
and  on  technological  and  scientific  research;  promote  the  development  of  the 
communications  infrastructure  needed  for  the  economic  development  of  the 
region;  stimulate  initiatives  to  improve  the  standards  of  living  of  those  living  in 
poverty. 

3.  Special  attention  shall  be  given  to  developing  the  role  of  women,  particularly  in 

the productive process. 

4.  The  Parties  shall  study  appropriate  means  for  the  promotion  and  monitoring  of 

joint  cooperation with other countries. 

ARTICLE 38 

Cooperation  on  refugees 

The  Parties  shall  endeavour  to  preserve  the  benefits  of  the  aid  already  granted  to 
Central  American  refugees  in  Mexico  and  shall  cooperate  in  the  search  for  lasting 
solutions. 

ARTICLE 39 

Cooperation  on Human Rights and Democracy 

1.  The  Parties  agree  that  cooperation  in  this  field  should  promote  the  principles 

referred  to in Article  1 of this Agreement. 

2.  Cooperation  shall focus  mainly on: 

(a)  The  developments  of civil  society  by means  of  education,  training  and  public 

awareness programmes; 

(b)  Training and information  measures designed  to help institutions function  more 

effectively  and to strengthen the rule of law; 

(c)  The promotion  of human rights and democratic principles. 

3.  The  Parties  may  carry  out  joint  projects  in  order  to  strengthen  cooperation 
between  their  respective  electoral  bodies  as  well  as  between  other  bodies 
responsible for monitoring and encouraging the respect  of human rights. 

18 

ARTICLE 40 

Cooperation on consumer protection 

1.  The Parties  agree  that  cooperation  in this  area  should  be  aimed  at  refining  their 
consumer  protection  systems  and  seeking,  within  their  respective  legislations,  to 
make their systems compatible. 

2.  Cooperation shall focus mainly on the: 

(a)  exchange  of  information  and  experts  and  encouraging  cooperation  between 

consumer bodies of both Parties; 

(b)  organization of training schemes and provision of technical assistance. 

ARTICLE 41 

Cooperation on data protection 

1. 

In respect  of  Article  51  of this Agreement,  the Parties agree to  cooperate  on the 
protection  of personal  data in order to  improve the  level  of protection  and avoid 
obstacles to trade that requires transfers of personal data. 

2.  Cooperation  on  personal  data  protection  may  include  technical  assistance  in the 
form  of  exchanges  of  information  and  experts  and  the  establishment  of  joint 
programmes and projects. 

ARTICLE 42 

Health 

1.  The objectives of health cooperation shall be to strengthen activities in the fields  of 
research,  pharmacology,  preventive  medicine  and  contagious  diseases  such  as 
AIDS. 

2.  Cooperation shall take place mainly through: 

(a)  projects  on  epidemiology,  decentralisation  and  administration  of  health 

services; 

(b)  development of vocational training programmes; 

(c)  programmes  and  projects  to  improve  health  conditions  and  social  welfare  in 

rural and urban areas. 

19 

ARTICLE 43 

Future Developments 

1.  The Parties may by neutral consent  expand  this Title with a view to  enhancing the 
levels of cooperation  and  supplementing them by means of agreements  on  specific 
sectors or activities. 

2.  With  regard  to  the  implementation  of  this  Title,  the  Parties  may  put  forward 
suggestions  for  widening  the  scope  of  cooperation,  taking  into  account  the 
experience gained in its application. 

ARTICLE 44 

Resources for  cooperation 

1.  The  Parties  shall  make  available  the  appropriate  resources,  including  financial 
means,  in  so  far  as  their  respective  resources  and  regulations  allow,  in  order  to 
fulfil  the cooperation objectives  set out in this Agreement. 

2.  The  Parties  shall  encourage  the  European  Investment  Bank  to  continue  its 
operations in Mexico, in accordance with its procedures and financing  criteria. 

TITLE  VII 

INSTITUTIONAL  FRAMEWORK 

ARTICLE 45 

Joint Council 

A Joint  Council  is hereby  established  which  shall  supervise  the  implementation  of this 
level,  at  regular  intervals,  and  when 
Agreement.  It  shall  meet  at  ministerial 
circumstances  require.  It  shall  examine  any major  issues  arising  within  the  framework 
of this Agreement  and any other bilateral  or international  issues of mutual  interest. 

ARTICLE 46 

1.  The  Joint  Council  shall  consist  of  the  Members  of  the  Council  of  the  European 
Union  and Members  of the European  Commission  on the one hand,  and  Members 
of the Government  of Mexico, on the other. 

2.  Members  of the Joint  Council  may arrange  to  be  represented,  in  accordance  with 

the conditions to be laid down in its rules of procedure. 

3.  The Joint Council  shall establish its own rules of procedure. 

4.  The  Joint  Council  shall  be  presided  in  turn  by  a  Member  of  the  Council  of  the 
European  Union  and a Member of the Government  of Mexico,  in accordance  with 
the provisions to be laid down in its rules of procedure. 

20 

ARTICLE 47 

-  -

The Joint Council  shall,  for the purpose of attaining the objectives  of this Agreement, 
have the power to take decisions in the cases provided for herein.  The decisions taken 
shall be binding  on the Parties which  shall  take the measures  necessary  to  implement 
them.  The Joint Council may also make appropriate recommendations. 
It  shall  draw  up  the  decisions  and  recommendations  by  agreement  between  the  two 
Parties. 

ARTICLE 48 

Joint Committee 

1.  The  Joint  Council  shall  be  assisted  in  the  performance  of  its  duties  by  a  Joint 
Committee  composed  of  representatives  of  the  members  of  the  Council  of  the 
European  Union  and  of  the  European  Commission  on  the  one  hand,  and  of 
representatives of the Government of Mexico on the other, normally at senior civil 
servant level. 

In its rules  of procedure the Joint  Council  shall  determine  the  duties  of  the Joint 
Committee,  which  shall  include  the  preparation  of  meetings  of  the  Joint  Council 
and how the Committee shall function. 

2.  The Joint  Council  may delegate to the* Joint Committee any of its powers.  In this 
event  the  Joint  Committee  shall  take  its  decisions  in  accordance  with  the 
conditions laid down in Article 47. 

4  * 

3.  The  Joint  Committee  shall  generally  meet  once  a  year,  on  a  date  and  with  an 
agenda  agreed  in  advance  by  the  Parties,  in  Brussels  one  year  and  Mexico  the 
next.  Special  meetings  may  be  convened  by  mutual  agreement.  The  office  of 
chairman  of  the  Joint  Committee  shall  be  held  alternately  by  a representative  of 
each of the Parties. 

ARTICLE 49 

Other special committees 

The Joint Council may decide to set up any other special  committee or body to assist it 
in the performance of its duties. 
In its rules of procedure,  the Joint Council  shall  determine the composition  and duties 
of such committees or bodies and how they shall function. 

ARTICLE 50 

Dispute settlement 

The Joint Council  shall decide on the establishment  of a specific  trade or trade related 
dispute  settlement  procedure  compatible  with  the  relevant  WTO  provisions  in  this 
field. 

21 

TITLE VIII 

FINAL  PROVISIONS 

ARTICLE 51 

Data protection 

1.  The Parties agree to accord  a high level of protection to the processing of personal 
and  other  data,  in  accordance  with  the  standards  adopted  by  the  relevant 
international  organisations and the Community. 

2.  To this end they shall take account  of the standards referred  to  in the  annex  which 

shall form  an integral part of this Agreement. 

ARTICLE 52 

National  security clause 

No provision of this Agreement  shall preclude a Party taking measures: 

(a)  which  it  considers  necessary  to  prevent  disclosures  of  information  which  are 

contrary to the essential interests of its security; 

(b)  relating  to  the  production  of,  or  trade  in,  arms,  munitions  or  war  materia1  or  to 
research,  development  or  production  connected  with  defence  needs,  provided 
these  measures  do  not  adversely  affect  the  conditions  of  competition  regarding 
products which are not intended for  specifically  military purposes; 

(c)  which  it  considers  essential  to  its  security  in  the  event  of  serious  domestic 
disturbances  liable  to  disrupt  public  order,  war  or  serious  international  tensions 
that  might  erupt  into  armed  conflict  or  to  fulfil  obligations  it  has  entered  into  for 
the maintenance of peace and international  security. 

ARTICLE 53 

The  Final  Act  contains  the joint  and  unilateral  Declarations  made  at  the  signature  of 
this Agreement. 

ARTICLE 54 

1.  Should  Most  Favoured  Nation  treatment  be  granted  in  accordance  with  the 
provisions  of this Agreement,  or any arrangements adopted  under  this  Agreement, 
it  will  not  apply  to  tax  advantages  which  the  Member  States  or  Mexico  are 
providing  or may provide in the future  on the basis of agreements  to  avoid  double 
taxation  or other tax arrangements, or domestic fiscal legislation. 

22 

2.  Nothing  in this Agreement,  or in any arrangements adopted  under this  Agreement, 
may  be  construed  to  prevent  the  adoption  or  enforcement  by  the  Member  States 
or Mexico  of any measure  aimed  at  preventing  the  avoidance  or  evasion  of  taxes 
pursuant  to the tax provisions of agreements to avoid  double taxation  or other  tax 
arrangements, or domestic fiscal  legislation. 

3.  Nothing  in this Agreement,  or in any arrangements  adopted  under this  Agreement, 
shall be construed  to prevent Member  States or Mexico from  distinguishing,  in the 
application  of the  relevant  provisions  of their  fiscal  legislation,  between  taxpayers 
who  are  not  in  the  same  situation,  in  particular  with  regard  to  their  place  of 
residence, or with regard to the place where their capital is invested. 

ARTICLE 55 

Definition  of the Parties 

For  the  purposes  of  this  Agreement,  "the  Parties"  shall  mean,  on  the  one  hand,  the 
Community  or  its  Member  States  or  the  Community  and  its  Member  States,  in 
accordance  with  their  respective  areas  of  competence,  as  derived  from  the  Treaty 
establishing the European  Community and, on the other hand, Mexico. 

ARTICLE 56 

Territorial  application 

4  * 

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

ARTICLE  57 

Duration 

1.  This Agreement  shall be valid  indefinitely. 

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

ARTICLE  58 

Fulfillment  of obligations 

1.  The Parties  shall  adopt  any general  or  specific  measure  required  for  them  to  fulfil 
their  obligations  under  this  Agreement  and  shall  ensure  that  they  comply  with  the 
objectives  laid down  in 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  doing  so,  except  in 
cases  of  special  urgency,  it  must  supply  the  Joint  Council  with  all  the  relevant 
information  required  for  a thorough  examination  of  the  situation,  within  30 days, 
with a view to seeking a solution  acceptable to the Parties. 

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

2.  The Parties  agree  that  the term  "cases  of  special  urgency"  in  paragraph  1 of  this 
Article means a case of material breach of the Agreement  by one of the Parties. A 
material breach of the Agreement consists  of: 

(a)  repudiation  of  the  Agreement  not  sanctioned  by  the  general  rules  of 

international  law; 

(b)  violation of the essential elements of the Agreement  referred  to in Article 1. 

3.  The  Parties  agree  that  the  "appropriate  measures"  referred  to  in  this  Article  are 
measures taken  in accordance with international  law.  If a Party takes  a measure in 
a  case  of  special  urgency  as provided  for  under  this  Article,  the  other  Party  may 
ask that an urgent meeting be called to bring the Parties together within  15 days. 

ARTICLE 59 

Authentic text 

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

ARTICLE 60 

Entry into Force 

1.  This  Agreement  shall  be  approved  by  the  Parties  in  accordance  with  their  own 

procedures. 

2.  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.  The  application  of Titles  II  and  VI  shall  be  suspended 
until the adoption by the Joint Council of the decisions provided  in Articles  5, 6, 9, 
10,  11 and  12 of this Agreement. 

3.  Notification  shall be sent to  the  Secretary-General  of the Council  of the  European 

Union who shall be the depositary for the Agreement. 

4.  This Agreement  shall replace the Framework  Agreement  for  Cooperation  between 
the European  Community  and  Mexico  signed  on  26  April  1991  upon  the  date  on 
which Titles II and VI become applicable, as provided for  in paragraph  2. 

5.  Upon  entry  into  force  of  the  Agreement,  any  decisions  adopted  by  the  Joint 
Council  established  by  the  Interim  Agreement  on  trade  and  trade  related  matters 
between  the  European  Community  and  Mexico  signed  on  ....[initialled  on...]  shall 
be deemed  to have been adopted  by the Joint Council established  by Article 45. 

24 

ANNEX 

PROTECTION  OF PERSONAL DATA REFERRED TO IN ARTICLE 51 

Guidelines  for  the regulation  of computerised  personal  data files, modified  by. the 
General Assembly of the United Nations on 20 November  1990. 

Recommendation  of  the  OECD  Council  concerning  guidelines  governing  the 
protection  of  privacy  and  trans-border  flows  of  personal  data  of  23  September 
1980; 

Council  of  Europe  Convention  for  the  protection  of  individuals  with  regard  to 
automatic processing of personal data of 28 January  1981; 

Directive  95/46/EC  of the European  Parliament  and  of the  Council  of 24  October 
1995  on  the  protection  of  individuals  with  regard  to  the  processing  of  personal 
data and on the free  movement  of such data. 

25 

FINAL ACT 

L 

JOINT  DECLARATION  ON POLITICAL DIALOGUE  BETWEEN 
THE EUROPEAN  UNION AND  MEXICO 
(ARTICLE 3) 

1.  Preamble 

The European  Union of the one part, and Mexico, of the other part, 

-  conscious  of their historical,  political, economic and cultural  ties, and  of the bonds 

of friendship  between their peoples, 

-  mindful  of their desire to strengthen the political and economic freedoms  which  are 
fundamental  to society in the Member states of the European  Union and Mexico, 

-  reaffirming  human  dignity  and  the  promotion  and  protection  of  human  rights  as 
cornerstones  of  a  democratic  society,  as  well  as  the  essential  role  of  democratic 
institutions based  on the rule of law, 

-  desiring  to  strengthen  international  peace  and  security  in  accordance  with  the 

principles of the United Nations Charter. 

-  sharing  an  interest  in regional  integration  as  a  means  of  enabling  their  citizens  to 
achieve  sustainable  and  harmonious  development  predicated  upon  social  progress 
and  solidarity, 

-  building upon  the preferential  relations established  by the Framework  Cooperation 

Agreement  signed between the Community and Mexico in  1991, 

-  recalling the principles set out  in the Solemn Joint Declaration  signed  in Paris  on 2 
May  1995 by the Commission  and the Council,  of the one part,  and  Mexico,  of the 
other part, 

have decided  to develop relations on a long-term basis. 

2.  Objectives 

The European  Union  and  Mexico  consider  that  the  establishment  of  greater  political 
dialogue  represents  a  fundamental  aspect  of  their  envisaged  economic  and  political 
rapprochement  and  constitutes  a decisive factor  in promoting  the principles  set  out in 
the preamble to this declaration. 

That  dialogue  shall  be  based  on  the  Parties'  shared  attachment  to  democracy  and 
respect  for  human  rights  as well  as  the  desire  to  maintain  peace  and  establish  a just 
and  stable international  order,  in accordance with the United Nations  Charter. 

Its  aims  shall  be to  forge  lasting  links of solidarity  between  the  European  Union  and 
Mexico,  contributing  to  the  stability  and  prosperity  of  their  respective  regions,  to 
strive  to  implement  the  process  of  regional  integration  and  to  promote  a  climate  of 
understanding  and tolerance between their peoples and cultures. 

It 

It  shall  cover  all  subjects  of  shared  interest  and  shall  aim  to  open  up  paths  towards 
new  forms  of  cooperation  with  shared  objectives,  including  by  means  of  joint 
international  initiatives,  particularly  in  the  areas  of  peace,  security  and  regional 
development. 

3.  Dialogue  mechanisms 

The  Parties  shall  conduct  such  political  dialogue  by  means  of  contacts,  information 
exchanges  and  consultations  between  the  various  Mexican  and  European  Union 
bodies, including the European  Commission. 

It shall be held, in particular: 

at presidential level; 
at ministerial level; 
at senior official  level; 
and by using diplomatic channels to maximum advantage. 

Presidential  meetings, the detailed  arrangements  for  which  shall  be decided  on by the 
Parties, shall take place regularly between the highest authorities of the Parties. 

Meetings at  ministerial  level, the detailed  arrangements  for  which  shall  be decided  on 
by the Parties, shall take place regularly between the Ministers for Foreign  Affairs. 

x£ 

OTHER  JOINT  DECLARATIONS 

JOINT DECLARATION ON THE DIALOGUE AT 
PARLIAMENTARY LEVEL 

The  Parties  underline  the  advisability  of  institutionalising  a  political  dialogue  at 
Parliamentary  level  by  means  of  contacts  between  the  European  Parliament  and  the 
Mexican Congress (Chamber of Deputies and Senate). 

JOINT INTERPRETATIVE DECLARATION ON ARTICLE 4 

The  commitments  that  result  from  Article  4  of this  Agreement  shall  not  take  effect  until 
the  decision  referred  to  in  Article  5  is  adopted,  in  conformity  with  Article  7  of  this 
Agreement. 

JOINT DECLARATION ON ARTICLE  24(3) 

their  multilateral  obligations  on  maritime  transport  services 
The  Parties  confirm 
undertaken  as members  of the WTO, taking also  into  account  their  respective  obligations 
under the OECD Code of Liberalisation  of Current  Invisible Operations. 

JOINT DECLARATION WITH RESPECT TO ARTICLE 35 

Both  Parties  agree  to  give  their  institutional  support,  in  the  multilateral  field,  to  the 
adoption,  entry  into  force  and  enforcement  of  the  International  Code  of  Conduct  for 
Responsible Fishing. 

DECLARATIONS  BY THE EUROPEAN  COMMUNITY  AND/OR 
ITS MEMBER  STATES 

DECLARATION  BY THE EUROPEAN COMMUNITY ON ARTICLE 11 

that,  until 

the  adoption  by  the  Joint  Council  of 

The  Community  declares 
the 
implementing  rules  on  fair  competition  referred  to  in  Art. 11 paragraph  2,  it  shall  assess 
any  practice  contrary  to  that  Article  on  the  basis  of  the  criteria  resulting  from  the  rules 
contained  in  Articles  85, 86 and  92 of  the Treaty  establishing  the European  Community, 
and,  for  products  covered  by  the  Treaty  establishing  the  European  Coal  and  Steel 
Community,  by those contained  in  Articles  65 and  66 of  that Treaty  and  the  Community 
rules on State aids, including  secondary  legislation. 

UNILATERAL DECLARATION BY THE COMMUNITY AND ITS MEMBER STATES 
ON THE INTELLECTUAL PROPERTY CONVENTIONS REFERRED TO IN ARTICLE 12 

The  Community  and  its  Member  States  understand  that  the  relevant  multilateral 
conventions  on  intellectual  property  referred  to  in  Article  12 paragraph.  2  b)  include  at 
least  the  following: 

Paris  Convention  for  the  protection  of  industrial  property  (Stockholm  Act  1967  and 
amended  in  1979); 
Bern  Convention  for  the Protection  of  Literary  and  Artistic  Works  (Paris  Act,  1971, 
amended in  1979); 
International  Convention  for  the Protection  of Performers,  Producers  of  Phonograms 
and Broadcasting  Organisations  (Rome  1961); 
Patent  Co-operation  Treaty  (Washington  1970,  amended  in  1979  and  modified  in 
1984); 
Madrid  Agreement  concerning  the  International  Registration  of  Marks  (Stockholm 
Act  1967 and amended  in  1979); 
Nice  Agreement  concerning  the  International  Classification  of  Goods  and  Services 
for the purposes  of the Registration  of Marks (Geneva  1977, amended in  1979); 
Protocol  to the Madrid  Agreement  concerning  the  international  registration  of  marks 
(Madrid  1989); 
Budapest Treaty  on  the International  Recognition  of  the  deposit  of  Micro-organisms 
for the Purposes  of Patent Procedure (1977, modified  in  1980); 
International  Convention  for  the  protection  of  new  varieties  of  plants  (UPOV) 
(Geneva Act  1991); 
Trademark  Law treaty  (Geneva,  1994). 

So 

DECLARATION  BY THE UNITED MEXICAN  STATES 

UNILATERAL DECLARATION BY MEXICO ON ARTICLE I 

Mexico's foreign  policy is founded  on the principles enshrined  in its Constitution: 

Self determination  of Nations 
Non-intervention 
Peaceful  settlement  of disputes 
Prohibition  of the threat  or use of force in international  relations 
Juridical equality of States 
International  cooperation  for  development 
The struggle for  international  peace and international  security 

Given  its  historical  experience  and  the  supreme  mandate  of  its  Political  Constitution, 
Mexico  expresses  its full  conviction  that  only the  full  observance  of International  Law  is 
the foundation  of peace and development.  Mexico declares, likewise, that the principles of 
coexistence  of  the  international  community,  as  expressed  in  the  United  Nations  Charter, 
the  principles  enunciated  in  the  Universal  Declaration  of  Human  Rights  and  democratic 
principles,  are the permanent  guide  of its constructive  participation  in international  affairs 
and  are  the  framework  for  its  relationship  with  the  Community  and  its  Member  States, 
governed  by this  Agreement,  and  for  its  relationship  with  any  other  country  or  group  of 
countries. 

3< 

FINANCIAL STATEMENT 

The  following  financial  statement  concerning  the  evaluation  of  the  budgetary 
expenditures  and  revenues  linked  to  the  implementation  of  this  agreement  was 
approved  by  the  Commission  in  the context  of  the transmission  to  the  Council  of  the 
draft  directives for a New Agreement, on 23 October 1995. 

1 

TITLE OF OPERATION 

Economic  partnership  and  political  consultation  agreement  between 
European Community and Mexico'. 

the 

2 

BUDGET HEADINGS INVOLVED 

(a) Implementation of the agreement will directly involve the following items: 

B7-3010: 

B7-3011: 

B7-5000: 

B7-5010: 

B7-5020: 

B7-5040: 
B7-5041 : 
B7-5046: 

B7-5050: 

B7-5051: 
B7-5077: 
B7-5080: 

B7-5091: 

B7-5096: 
B7-5230: 
B7-5300: 

towards 

schemes 

technical  cooperation  with  Latin  American 

concerning 
countries  carried  out  by  non-governmental 

Financial  and 
developing countries 
Economic  cooperation  with  Latin  American  developing 
countries 
Promotion  of  Community  investment  in developing  countries of 
Asia,  Latin  America,  the Mediterranean  and  in  South  Africa  by 
economic cooperation and trade agreements 
Community 
contribution 
developing 
organizations 
Commercial  and  economic  cooperation  agreements  with  third 
countries 
Environment in the developing countries 
Tropical  forests 
Health  programmes  and 
developing countries 
Aid  for  population  policies  and  programmes  in  developing 
countries 
Women in development 
Decentralized  cooperation  in the developing countries 
North-South cooperation  schemes in the context of the campaign 
against drug abuse 
Coordination  of development policy,  evaluation  of the results of 
Community aid and practical follow-up  measures 
Development cooperation  inspectorate 
Democratization process in Latin America 
Measures to combat fraud  in the cooperation  sector 

the  fight  against  HIV/AIDS 

in 

(b) Other items that may be used: 

B4-1000: 

Thermie II  (Community  programme of  financial  support  for  the 
promotion of energy technology in Europe) 

"32. 

B4-1041: 

B6-5211: 

B6-5311: 

European  Energy  Charter  and  cooperation  with  third  countries 
in the energy  field 
Completion  of  the third  framework  programme  (1990  to  1994)  -
projects  concerned  by  Agreement  on  the  European  Economic 
Area 
framework 
Completion  of  projects  not  covered  by 
programme  and  not  concerned  by  Agreement  on  the  European 

the 

LEGAL  BASIS 

Economic  partnership and political  consultation  agreement  between  the  EU and 
Mexico 

4 

DESCRIPTION  OF  OPERATION 

4.1  General  objective 

Conclusion  of  economic  partnership and political  consultation  agreement 
between  the EU and Mexico 

4.2  Period  covered  and  arrangements  for  renewal  or extension: 

The agreement  will  have no time limit. 

5 

CLASSIFICATION  OF EXPENDITURE  OR  REVENUE 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated  appropriations 

5.3 

Type  of  revenue  involved:  not  applicable 

6 

TYPE OF EXPENDITURE OR REVENUE 

Expenditure will  usually  take the form  of  a  100% grant,  though  operations  may 
sometimes be co-financed  with other donors (Member States). 

The  recipients  will  systematically  be  required  to  contribute  according  to  their 
means. 

7 

FINANCIAL  IMPACT 

7.1  Method of  calculating  total cost of operation  (definition  of  unit costs) 

^ 

This Agreement establishes a framework  for  new  measures to reflect  the changing 
content and  methods of Community cooperation/relations with  Mexico in the  fight 
both  of  recent  social  and  economic  developments  in  that  country  and  the 
developing political dialogue between it and the Union. 

The objective is to bring about a qualitative improvement in relations by enhancing 
the Community's capacity to respond  to specific  new requests from  Mexico on the 
basis of a new dialogue aimed at establishing  a true partnership;  it is not to create 
a specific budget for a new operation. 

7.2 Itemised breakdown of cost 

EC in ECU million (current prices) 

Breakdown 

Budget 
year n 

n +  1  n  +  2 

n +  3 

n  +  4  n +  5 and 
subs, yrs 

TOTAL 

Total 

7.3 Schedule of commitment/payment  appropriations 

EC in ECU million 

n 

n +  1  n +  2  n +  3  n +  4 

n +  5 and 
subs, yrs 

TOTAL 

Commitment 
appropriations 
Payment 
appropriations 
n 
n  +  1 
n +  2 
n  +  3 
n  +  4 
n  +  5 and subs. 
yrs 
TOTAL 

8.  Fraud  prevention  measures; results of measures taken 

In  order  to  ensure  maximum  accountability  in  the  management  of  budget  resources, 
projects are subject  to the following  procedures: 

- committee for the assessment of restricted  invitations to tender (technical assistance); 
- system of codirectors (one local and one Community); 
- project administration  involving cost accounting; 

2V 

-  supervisory  missions  by desk officers  and/or  technical  and/or  financial  units; 
- ad  hoc audits  in  conjunction  with  the relevant  units of  DG  VIII; 
-  inspections by  the Court of  Auditors and  Financial  Control. 

For  projects  of  above-average  duration  involving  large  budgets,  there  will  be  annual 
financial  and  accounts audits,  to be conducted  by an  internationally  recognized  firm. 

9.  ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1 Specific  and  quantified  objectives;  target  population 

The  objectives  specific  to  each  project  are  defined  in  the  financing  proposal, 
which  includes  an  economic  and  financial  analysis  of  the  project  and,  where 
certain  budget  headings  (e.g.  B7-3010 and  B7-3011) are  concerned,  is  approved 
by  the  ALA  Committee  in  the  case  of  projects  costing  more  than  ECU  1 
million.  For  other  projects,  the  specific  objectives  are  defined  in  the  detailed 
commitment  form  accompanying  each  project. 

Target population:  indirectly,  the whole population  of  Mexico,  but especially: 

-  the  private  sector,  business  circles  in  Mexico  and  in  Europe,  taking  due 
account  of  the principle of  mutual  interest; 
-  the most disadvantaged  groups. 

9.2 Grounds  for  the operation 

The  projects  launched  will  be  financed  under  existing  budget  items  and  are 
therefore  underpinned  by  the  financial  statements  accompanying  those  items  in 
the PDB. 

9.3 Monitoring  and  evaluation  of  the operation 

10.  ADMINISTRATIVE  EXPENDITURE  (PART  A  OF THE  BUDGET) 

10.1 Increase  in the  number  of  staff 

The  actual  mobilization  of  the  administrative  resources  required  will  depend  on  the 
annual  Commission  decision  on  the  allocation  of  resources,  taking  into  account  any 
amounts  or  staff  allowed  by  the budgetary  authority. 

The  following  comments  on  the need  for  additional  resources  shall be without  prejudice 
to any decision  on  this subject  by  the  Commission. 

The allocation  of  any  additional  resource  may be assessed  only  in  the overall  context  of 
the  priorities  which  the  Commission  may  be  required  to  decide  in  the  framework  and 
within  the limits of  the  1996 PDB. 

3S~ 

I.  Impact on the number of posts 

(a) Relations with Mexico have so far been handled by an A official,  who is also in 
charge  of  the  Cuba  desk,  assisted  by  a  non-regular  A  and  a  non-regular  C 
official.  They  are unable to cope with  the steady  increase in political contacts, 
cooperation  programmes  and  the  day-to-day  workload  of  the  desk  office 
generated by the stepping-up of relations over the past year. 

The objective  of  the economic  partnership  and  political  consultation  agreement 
is  to  strengthen  relations  between  Mexico  and  the  Union  in  all  areas.  The 
agreement  will  therefore  bring  with  it  qualitative  requirements  quite  distinct 
from  the volume of aid granted. 

This agreement  has  to  reflect  the  Union's  will  to  maintain  closer  relations  not 
only  in  the  context  of  cooperation  but  in  the form  of  deeper  political  dialogue 
and trade cooperation geared to the future liberalization of trade. 

There  must  therefore  be  an  increase  in  staffing,  with  one  new  temporary  A 
official,  one  B  official  and  one  C  official.  Their  responsibilities  will  be  as 
follows: 

A official  and temporary A official 

* 

* 

Overall direction,  overall consistency of policy,  coordination  of activities, 
in-house  coordination,  dealings  with  Mexico, 
and 
dissemination,  overall administration; 

information 

technical  monitoring  of trade relations,  supervision  of the working parties 
that  will  be  set  up,  coordination  of  trade-related  issues  with  other 
departments,  day-to-day  handling  of  trade  questions,  preparations  for 
meetings  of  the joint  trade  subcommittee,  drawing-up  of  reports,  studies 
and analyses on trade aspects of the future bilateral relations; 

* 

cooperation: identification,  implementation,  management,  monitoring etc. 

B official 

* 

Support  to A officials,  particularly  data  searches,  processing  of  statistics, 
data processing, administration  and accounting. 

C  official 

* 

Secretarial back-up. 

(b) This  shall  be  without  prejudice  to  any  requirements  which  may  arise  in  other 

Directorates-General  as a result of strengthening relations with Mexico. 

34 

Type of post 

Staff  to be assigned to 
the project 
permanent 
posts 

temporary 
posts 

Officials  or 
temporary 
officials 

Other staff 
Total 

A1 

B1 
C1 

3 

by using existing 
staff  in the DG 
or service 
concerned 
A1 

A1 

2 
3 

•7T1 

2 
3 

of which 

duration 

by recourse to 
additional  staff 

(3 years) 

A1 

B1 
C1 

3 

10.2  Overall financial impact of the additional  staff 

B3 officials 
C5 officials 
Temporary A7 officials 
Other staff 
(indicate budget heading) 
[Total 

Total 

Method of calculation 

78 794  Gross salary. List of average annual 
54 028  cost of existing posts. 
88 436 

I 

2212581 

The  figures  give  the  total  cost  of  the  additional  posts  for  the  entire  duration  of  the 
project if it is of a fixed duration or for  12 months if it of unlimited duration. 

II.  Increase  in 
expenses 

other  operational  expenditure  resulting  from  the  operation:  Mission 

From  the outset of  its dealings with  the Community,  Mexico has expressed  its wish  to 
receive technical  assistance  from  the  EC  in  several fields drawing  on  the  Community 
institutions'  technical experience.  It has expressly asked  to work directly  with  officials 
of those institutions. 

The Commission  has attempted  to satisfy  their  requests  by  involving  various  DGs and 
departments in specific  efforts  to transfer  integration  know-how. 

Even  though  the  various  DGs  have  expressed  their  readiness  to  take  part  in  such 
activities,  the  financing  of  missions  has  proved  very  difficult.  The  Commission  has 
had  to  refuse  a  considerable  number  of  requests  from  Mexico  owing  to  the  lack  of  a 
specific budget. 

1>? 

These  handicaps  will  be  exacerbated  if  no  suitable  arrangements  are  adopted  to 
facilitate  these  specific  activities,  especially  since  the  economic  partnership  and 
political consultation agreement would extend the scope of this technical assistance. 

Since it is impossible to forecast  by how much each  DG's reserve should  be increased, 
leaving  aside the agreements  between  DGs on  the authorization  of  missions,  a  further 
ECU 50 000/year  should  be budgeted  from  1996 just  to cover  operations  in  this field, 
to  be  initiated  and  coordinated  by  departments  of  the  DG  handling  relations  with 
Mexico. 

An  estimate  of  additional  funds  are  therefore  estimated  for  projects  to  transfer  the 
particular expertise of the Community institutions to Mexico. 

The estimated  funding  is intended  for  the organization  of  missions averaging one week 
for ten  officials. 

Budget heading (No) 
A 1300 
[Total 

I 

Amount 
50 000 
50 000 

Method of calculation 
See table below 
1 

~| 

Number of 
missions 

10 

Average 
cost of 
ticket 
3 500 

Average 
daily 
allowance 
207 

Total 
(ECU) 

Round total 
(ECU) 

49 490 

50 000 

The figures  give the total  cost of  the project  if  it is of  a fixed  duration  or  the cost  for 
12 months if it is of unlimited duration. 

3^ 

ISSN 0254-1475 

COM(97) 527  final 

DOCUMENTS 

EN 

02  08  10  11 

Catalogue  number  :  CB-CO-97-541-EN-C 

ISBN  92-78-25988-8 

Office  for  Official  Publications  of the  European  Communities 

L-2985  Luxembourg