Protocol I laying down the conditions relating to joint enterprises provided for in the Agreement on fisheries relations between the European Community and the Republic of Latvia
Date: 1998-04-30
Institutions: European Community, Latvia
Subjects: EU aid, Latvia, agreement (EU), fishing agreement, group of companies, protocol to an agreement

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Official Journal of the European Communities

19. 2. 98

laying down the conditions relating to joint enterprises provided for in the Agreement
on fisheries relations between the European Community and the Republic of Latvia

PROTOCOL I

Article 1

For the purposes of this Protocol, a joint enterprise shall
be defined as:

A company regulated by Latvian law comprising one or
more Community shipowners and one or more partners
in Latvia, with the aim of fishing for and possibly ex-
ploiting Latvian fishing quotas by vessels flying the flag of
Latvia with a view to the priority supply of the Com-
munity market.

— evaluate the projects presented by the Parties for the
in
in accordance with the

joint enterprises provided for

establishment of
Article 2 of
the Protocol,
criteria set out in Annex I,

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

The Joint Committee shall meet once a year alternately
in Riga and Brussels and exceptionally at the request of
either Party; each Party shall decide on the composition
of its Delegation.

Article 2

1.
The Parties shall create suitable conditions for the
creation of joint enterprises in the fisheries sector between
Latvian and Community shipowners with the aim of
jointly exploiting Latvian fishery resources under
the
conditions laid down in this Protocol.

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

Article 4

Latvia shall ensure a non-discriminatory, fair and
2.
equitable treatment to such joint enterprises to operate in
Latvian waters and shall provide them with access to
Latvian fisheries resources on the same basis as Latvian
fishing vessels.

The financial assistance referred to in paragraph 1
2.
shall be paid to a Community shipowner to cover part of
his financial contribution to the establishment of a joint
enterprise in Latvia, after the removal of the vessel in
question from the Community register.

3.
To encourage the establishment of joint enterprises
in Latvia, and as part of its policy for the restructuring of
its fleet, the Community shall facilitate the reflagging of
Community vessels to Latvia.

These reflagged vessels that have been integrated into the
Latvian fishing fleet with the financial assistance foreseen
in Annex II shall not be re-integrated into the Com-
munity fleet.

4.
The integration of reflagged vessels originating from
the Community shall not result in an increase of the
overall capacity of the Latvian fishing fleet. Therefore, as
part of its policy for the technical renovation of its fishing
industry, Latvia shall transfer the existing fishing licences
withdrawn from the replaced vessels to the newly in-
tegrated vessels.

The Community shall grant

3.
to joint enterprises
newly established in Latvia a financial support of 15 % of
the amount paid to the Community owner. This financial
support in the form of operating capital shall be paid by
the Community to the Latvian National Board of Fish-
eries of the Ministry of Agriculture which is empowered
by the Latvian Government to lay down the terms gover-
ning its use and its administration. The Latvian National
Board of Fisheries of the Ministry of Agriculture shall
inform the Joint Committee of how these funds are used.

Article 5

For the purpose of financial assistance to the establish-
ment of joint enterprises referred to in Article 5 of the
Agreement and Article 4 of this Protocol, the European
Commission shall contribute ECU 2 500 000 for the dura-
tion of this Protocol.

Article 3

Article 6

The Parties shall select the projects for joint enterprises
provided for in Article 2. For this purpose, a Joint
Committee shall be set up the duty of which shall be to:

1.
The crew and captain of reflagged vessels operating
under joint enterprises shall be citizens or permanent
residents of Latvia.

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2.
The said crew members’ work contracts shall be
concluded in Latvia between the representatives of the
shipowners and the crew members concerned and must
include social security arrangements and life and accident
insurance in accordance with Latvian legislation.

Article 7

This Protocol shall enter into force on the date on
1.
which the Parties notify each other of the completion of
the procedure necessary for this purpose.

2.
This Protocol is valid for a period of three years.
Before the end of the period of validity of this Protocol,
the Parties shall begin negotiations in order to decide

upon any amendments to the Protocol and/or Annexes
which may be necessary for the subsequent period.

Article 8

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

For the European
Community

For the Republic of
Latvia

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Official Journal of the European Communities

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ANNEX I

Methods and criteria for project selection

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

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

Member States concerned.

3. The Community shall submit to the Joint Committee the list of projects eligible for financial assistance
as provided for in Article 5 of this Protocol. The Joint Committee shall evaluate the projects in ac-
cordance with the following criteria:

(a) technology appropriate to the proposed fishing operations;

(b) target species and fishing zones;

(c) age of the vessel;

(d) previous experience of the Community shipowner and the Latvian partner in the fisheries sector.

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

set out in point 3.

5. Once the projects have been approved by the Parties, the Community shall forward to the Latvian Party

the list of selected projects for implementation.

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ANNEX II

Scales of assistance to joint enterprises

Class of vessel, by gross
registered tonnage (GRT)

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

0 : 25

25 : 50

50 : 100

100 : 400

6 215/GRT

5 085/GRT + 28 250

4 520/GRT + 56 500

2 260/GRT + 282 500

400 and over

1 130/GRT + 734 500

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

— 15-year-old vessels: see table above,

— vessels less than 15 years old: scale from table above increased by 1,5 % per year less than 15; however,
deduction pro rata temporis shall be made for any construction and/or modernisation aid received by the
vessel in the 10 years preceding the establishment of the joint enterprise and no financial assistance shall
be granted for vessels of five years old or less,

— vessels more than 15 years old: scale from table above decreased by 1,5 % per year over 15.

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