Proposal for a Council Decision on the position to be adopted by the Communities and its Member States within the Cooperation Council established by the Partnership and Cooperation Agreement establishing a partnership between the European Communities and its Member States, of the one part, and the Republic of Azerbaijan, of the other part, with regard to the adoption of a Recommendation on the implementation of the EU-Azerbaijan Action Plan
Date: 2006-10-26
Institutions: European Commission
Subjects: Azerbaijan, EU relations, action programme, cooperation policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.10.2006 
COM(2006) 637 final 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership between the European Communities and its 
Member States, of the one part, and the Republic of Azerbaijan, of the other part, with 
regard to the adoption of a Recommendation on the implementation of the EU-
Azerbaijan Action Plan 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The 2002 Copenhagen European Council, closing accession negotiations with ten new States, 
recognised that enlargement presented an important opportunity to take forward relations with 
neighbouring  countries  based  on  shared  values,  and  stated  that  the  Union  remained 
determined  to  avoid  new  dividing  lines  in  Europe  and  to  promote  stability  and  prosperity 
within and beyond the new borders of the Union. 

The  Commission  Communication  “Wider  Europe  -  Neighbourhood:  A  New  Framework  for 
Relations  with  our  Eastern  and  Southern  Neighbours”  of  March  20031  proposed  the 
establishment of Action Plans with partner countries. On 16 June 2003, the Council welcomed 
this Communication and invited the Commission, with the contribution, where appropriate, of 
the High Representative, to present proposals for Action Plans for all countries concerned as 
appropriate, commencing with Ukraine, Moldova, and Southern Mediterranean partners with 
Association Agreements. 

On  14  June  2004,  the  Council  welcomed  the  Commission  Communication  “European 
Neighbourhood  Policy  –  Strategy  Paper”2.  The  Council  also  welcomed  the  Commission 
proposal  to  pursue  the  European  Neighbourhood  Policy  (ENP)  through  Action  Plans  to  be 
agreed  jointly  with  the  neighbouring  countries  concerned  and  invited  the  Commission  to 
propose  such  Action  Plans.  The  Council  also  defined  how  to  advance  and  monitor 
implementation of such Action Plans.  

The Commission Communication of December 20043 submitted to the Council for approval a 
first  set  of  draft  Action  Plans  while  the  Commission  Communication  of  March  20054 
submitted  the  Country  Reports  for  Armenia,  Azerbaijan,  Egypt,  Georgia  and  Lebanon 
recommending  the  starting  of  negotiations  for  the  drawing  up  of  Action  Plans  with  these 
countries.  On  16  and  17  June  2005,  the  Council  welcomed  the  decision  to  establish  Action 
Plans with the above mentioned countries.  

The  Commission,  in  close  cooperation  with  the  Presidency  and  the  High  Representative  on 
issues  related  to  political  cooperation  and  the  CFSP,  has  held  exploratory  talks  with 
Azerbaijan which have resulted in agreement on a draft Action Plan. It covers a timeframe of 
five  years.  Its  implementation  will  help  fulfil  the  provisions  in  the  Partnership  and 
Cooperation  Agreement  and  will  contribute  to  an  increasingly  close  relationship  with 
Azerbaijan,  involving  a  significant  degree  of  economic  integration  and  a  deepening  of 
political  co-operation.  Implementation  of  the  Action  Plan  will  significantly  advance  the 
approximation  of  Azerbaijani  legislation,  norms  and  standards  to  those  of  the  European 
Union. 

The Action Plan is a broad tool for economic and political co-operation, carrying to a further 
stage  the  commitments  and  objectives  contained  in  the  Partnership  and  Cooperation 
Agreement. 

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3 
4 

COM(2003) 104 
COM(2004) 373 
COM(2004) 795 
COM(2005) 72 

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In accordance with the Council Conclusions of 14 June 2004, stipulating that the Action Plans 
will be approved by the Council and subsequently endorsed by the respective Association or 
Co-operation Councils, the Commission attaches the text of a proposal for a Council Decision 
on  the  position  to  be  taken  by  the  Communities  and  their  Member  States  within  the  EU-
Azerbaijan  Cooperation  Council  with  regard  to  the  adoption  of  a  Recommendation  on  the 
implementation of the Action Plan in annex.  

The Commission therefore requests the Council to adopt the attached proposal for a Council 
Decision. 

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Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Communities and its Member States  
within the Cooperation Council established by the Partnership and Cooperation 
Agreement establishing a partnership between the European Communities and its 
Member States, of the one part, and the Republic of Azerbaijan, of the other part, with 
regard to the adoption of a Recommendation on the implementation of the EU-
Azerbaijan Action Plan 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to Article 2(1) of the Council and Commission Decision 1999/614/EC, ECSC, 
Euratom  of  31.05.19995  on  the  conclusion  of  the  Partnership  and  Cooperation  Agreement 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and  the 
Republic of Azerbaijan, of the other part,  

Having regard to the Treaty on European Union, in particular Article 15 thereof; 

Having regard to the proposal from the Commission6; 

Whereas: 

(1) 

(2) 

The  Partnership  and  Cooperation  Agreement  establishing  a  partnership  between  the 
European Communities and their Member States, of the one part, and the Republic of 
Azerbaijan,  of  the  other  part,  was  signed  on  22  April  1996  and  entered  into  force  1 
July 1999. 

The Parties intend to agree on an EU-Azerbaijan Action Plan, which will support the 
implementation of the Partnership and Cooperation Agreement through the elaboration 
and agreement of concrete steps towards attainment of its objectives. 

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OJ L/1999/246/1 
OJ xxxxxxxx 

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HAS DECIDED AS FOLLOWS: 

Sole Article 

The  position  to  be  adopted  by  the  Communities  and  their  Member  States  within  the 
Cooperation Council established by the Partnership and Cooperation Agreement establishing 
a partnership between the European Communities and their Member States, of the one part, 
and  the  Republic  of  Azerbaijan,  of  the  other  part,  with  regard  to  the  implementation  of  the 
EU-Azerbaijan Action Plan shall be based on the draft Recommendation of the Cooperation 
Council annexed to this Decision. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  
draft 
RECOMMENDATION 

on the implementation of the EU-Azerbaijan Action Plan  

The EU-Azerbaijan Cooperation Council, 

Having regard to the Partnership and Cooperation Agreement establishing a partnership between the 
European Communities and its Member States of the one part, and the Republic of Azerbaijan, of 
the other part – hereafter the Partnership and Cooperation Agreement - and in particular Article 81 
thereof, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Article 81 of the Partnership and Cooperation Agreement gives the Cooperation Council the 
power to make appropriate recommendations, for the purposes of attaining the objectives of 
the Agreement.  

In terms of Article 98 of the Partnership and Cooperation Agreement, the Parties shall take 
any general or specific measures required to fulfil their obligations under the Agreement and 
shall see to it that the objectives set out in the Agreement are attained. 

The  Parties  to  the  Partnership  and  Cooperation  Agreement  have  agreed  on  the  text  of  the 
EU-Azerbaijan Action Plan. 

The  EU-Azerbaijan  Action  Plan  will  support  the  implementation  of  the  Partnership  and 
Cooperation  Agreement  through  the  elaboration  and  agreement  between  the  Parties  of 
concrete steps which will provide practical guidance for such implementation. 

The  Action  Plan  serves  the  dual  purpose  of  setting  out  concrete  steps  in  bringing  the 
fulfilment of the Parties’ obligations set out in the Partnership and Cooperation Agreement, 
and of providing a broader framework for further strengthening EU-Azerbaijan relations to 
involve  a  significant  measure  of  economic  integration  and  a  deepening  of  political 
cooperation,  in  accordance  with  the  overall  objectives  of  the  Partnership  and  Cooperation 
Agreement. 

HAS ADOPTED THE FOLLOWING RECOMMENDATION: 

Sole Article 

The Cooperation Council recommends that the Parties implement the EU-Azerbaijan Action Plan in 
annex,  insofar  as  such  implementation  is  directed  towards  attainment  of  the  objectives  of  the 
Partnership and Cooperation Agreement.  

Done at [...] 

For the Cooperation Council 

The President 

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ANNEXE 
EU-AZERBAIJAN ENP ACTION PLAN 

1. 

INTRODUCTION  

The enlargement of the European Union on 1 May 2004 has brought a historical shift for the Union 
in  political,  geographic  and  economic  terms,  further  reinforcing  the  political  and  economic 
interdependence  between  the  EU  and  Azerbaijan.  It  offers  the  opportunity  for  the  EU  and 
Azerbaijan  to  develop  an  increasingly  close  mutually  beneficial  relationship,  going  beyond  co-
operation, to involve a significant measure of economic integration and a deepening of political co-
operation.  The  European  Union  and  Azerbaijan  are  determined  to  make  use  of  this  occasion  to 
enhance their relations and to promote stability, security and welfare. The approach is founded on 
partnership, joint ownership and differentiation.  

The  European  Neighbourhood  Policy  of  the  European  Union  sets  ambitious  objectives  based  on 
mutual commitments of the EU and its Member States and Azerbaijan to common values, including 
the respect of and support for the sovereignty, territorial integrity and inviolability of internationally 
recognised  borders  of  each  other  and  compliance  to  international  and  European  norms  and 
principles  as  well  as  support  for  effective  implementation  of  political,  economic  and  institutional 
reforms. Any breach to these norms and principles by either party to the Action Plan will result in 
the immediate suspension of its implementation.  

Azerbaijan  is  invited  to  enter  into  intensified  political,  security,  economic  and  cultural  relations 
with the EU, enhanced regional and cross border co-operation and shared responsibility in conflict 
prevention and conflict resolution.  

The level of ambition of the relationship will depend on the degree of Azerbaijan’s commitment to 
common values as well as its capacity to implement jointly agreed priorities. The pace of progress 
of  the  relationship  will  acknowledge  fully  Azerbaijan’s  efforts  and  concrete  achievements  in 
meeting those commitments.  

This  Action  Plan  is  a  first  step  in  this  process.  The  EU-Azerbaijan  Action  Plan  is  a  political 
document laying out the strategic objectives of the cooperation between Azerbaijan and the EU. It 
covers a timeframe of five years. Its implementation will help fulfil the provisions in the Partnership 
and  Cooperation  Agreement  (PCA)  and  will  encourage  and  support  Azerbaijan’s  objective  of 
further integration into European structures. The EU takes note of Azerbaijan’s expressed European 
aspirations. 

Implementation  of  the  Action  Plan  will  significantly  advance  the  approximation  of  Azerbaijani 
legislation, norms and standards to those of the European Union. In this context, it will build solid 
foundations  for  further  economic  integration  based  on  the  adoption  and  implementation  of 
economic and trade-related rules and regulations with the potential to enhance trade, investment and 
growth.  It  will  furthermore  help  to  devise  and  implement  policies  and  measures  to  promote 
economic  growth  and  social  cohesion,  to  reduce  poverty  and  to  protect  the  environment,  thereby 
contributing  to  the  long-term  objective  of  sustainable  development.  Azerbaijan  and  the  EU  will 
cooperate closely in implementing this Action Plan. 

The  EU  Special  Representative  for  the  South  Caucasus  will  assist  the  relevant  bodies  in  the 
implementation of this Action Plan in accordance with his mandate. 

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2. 

NEW PARTNERSHIP PERSPECTIVES  

The European Neighbourhood Policy opens new partnership perspectives:  

•  The perspective of moving beyond cooperation to a significant degree of integration, including 
through  a  stake  in  the  EU’s  Internal  Market,  and  the  possibility  for  Azerbaijan  to  participate 
progressively in key aspects of EU policies and programmes; 

•  An upgrade in the scope and intensity of political cooperation, through further development of 
mechanisms for political dialogue and consultations on security issues that affect the interests of 
both sides;  

•  Continuing strong EU commitment to support the settlement of the Nagorno-Karabakh conflict, 
drawing on the instruments at the EU’s disposal, including the EUSR, and in close consultation 
with  the  OSCE.  The  EU  is  ready  to  consider  ways  to  strengthen  further  its  engagement  in 
conflict resolution and post-conflict rehabilitation;  

•  Deepening trade and economic relations; providing the opportunity for convergence of economic 
legislation,  the  opening  of  economies  to  each  other,  and  the  continued  reduction  of  non-tariff 
barriers to trade, which will stimulate investment and growth; 

•  Increased financial support: EU financial assistance for Azerbaijan will be available to support 
the actions identified in the present document. The Commission is furthermore proposing a new 
European Neighbourhood and Partnership Instrument (ENPI) for this purpose, which will cover 
the  main  part  of  EU  financial  assistance  and  will  include  aspects  of  cross-border  and  trans-
national cooperation. The Commission also intends to propose an extension of the EIB mandate 
to Azerbaijan as of 2007; 

•  Possibilities  of  gradual  opening  of  or  reinforced  participation  in  certain  Community 

programmes, promoting cultural, educational, environmental, technical and scientific links; 

•  Support  including  technical  assistance  and  twinning  to  meet  EU  norms  and  standards,  and 
targeted advice and support for legislative approximation through a mechanism such as TAIEX;  

•  Establish a dialogue in accordance with the acquis on matters related to the movement of people 

between the EU and Azerbaijan; 

•  Opening as soon as possible of a Commission Delegation in Azerbaijan. 

In light of the fulfilment of the objectives of this Action Plan and of the overall evolution of EU-
Azerbaijan relations, consideration will be given in due time to the possibility of a new contractual 
relationship.  

3. 

PRIORITIES FOR ACTION 

The Action Plan sets out a set of priorities in areas within and beyond the scope of the Partnership 
and Cooperation Agreement. Among these priorities, all of which are important, particular attention 
should be given to the following areas and specific actions:  

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Priority area 1 

Contribute to a peaceful solution of the Nagorno-Karabakh conflict  

Specific actions:  

–  Increase  diplomatic  efforts,  including  through  the  EUSR,  and  continue  to  support  a  peaceful 

solution of the Nagorno-Karabakh conflict; 

–  Increase political support to OSCE Minsk Group conflict settlement efforts on  the basis of the 

relevant UN Security Council resolutions and OSCE documents and decisions; 

–  Encourage people-to-people contacts;  

–  Intensify  the  EU  dialogue  with  the  states  concerned  with  a  view  to  acceleration  of  the 

negotiations towards a political settlement.  

Priority area 2 

Strengthen democracy in the country, including through fair and transparent electoral process, in 
line with international requirements 

–  Continued implementation of electoral reform, on the basis of the CoE Venice Commission and 

OSCE/ODIHR recommendations; 

–  Ensure  that  elections  are  conducted  in  full  compliance  with  OSCE  commitments  and  other 

international standards for democratic elections; 

–  Continue  institutional  reforms  to  ensure  proper  checks  and  balances  between  executive  and 
legislative  powers  in  conformity  with  the  commitments  undertaken  before  the  Council  of 
Europe;  

–  Continue legislative and administrative reforms aimed at strengthening of local self-government. 

Priority area 3 

Strengthen  the  protection  of  human  rights  and  of  fundamental  freedoms  and  the  rule  of  law,  in 
compliance with international commitments of Azerbaijan (PCA, CoE, OSCE, UN)  

Specific actions: 

–  Improve the organisation of the judiciary, with a view to ensuring its independence, impartiality 
and efficiency, including with regard to the procedure for appointment and promotion, statutory 
rights and obligations of judges and prosecutors; 

–  Ensure ratification (by 2006) and implementation of the Optional Protocol to the UN Convention 

against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; 

–  Develop an independent public broadcasting service (television and radio services);  

–  Ensure proper implementation of the Law on Freedom of Information;  

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–  Promote growth of civil society and its organised forms (human rights NGOs, associations, etc). 

Alleviate the current cumbersome procedures required for NGO registration; 

–  Promote  respect  for  religious  and  cultural  diversity,  including  through  community-based 

education, training and awareness-raising programs. 

Priority area 4 

Improve  the  business  and  investment  climate,  particularly  by  strengthening  the  fight  against 
corruption 

Specific actions: 

–  Strengthen enforcement and assess the impact and progress of the Anti-corruption law in force 
since  January  2005  and  the  State  Programme  on  fighting  corruption  (2004-2006);  devise  and 
implement appropriate follow-up upon its expiry;  

–  Ensure that the Criminal Code, and in particular the definition of bribery and corruption-related 
offences, are in line with international standards such as the UN Convention against Corruption, 
the  Council  of  Europe  Criminal  Law  Convention  on  Corruption  and  Civil  Law  Convention  on 
Corruption,  and  the  OECD  Convention  on  combating  bribery  of  Foreign  Public  Officials  in 
International Business Transactions, in order to ensure adequate prosecution and conviction;  

–  Improve the normative-legislative framework for the fight against corruption, in conformity with 
the  UN  Convention  against  Corruption,  the  CoE  Criminal  Law  Convention  on  Corruption  and 
the Council of Europe Civil Law Convention on Corruption; 

–  Pursue a transparent privatisation process. Improve access to finance by implementation of legal 
rights facilitating lending and competition in the banking sector; by privatising state banks (IBA 
and Capital Bank) and developing a credit register; 

–  Develop  and  implement  a  comprehensive  programme  to  improve  the  business  climate,  in 
particular  by  improving  the  conditions  to  starting  a  business,  hiring  and  firing  workers, 
registering  a  property,  getting  credit,  protecting  investing,  enforcement  contracts  and  closing  a 
business; 

–  Continue  the  modernisation,  simplification  and  the  use  of  information  and  communication 
technologies  by  the  tax  administration.  Ensure  the  smooth  and  transparent  enforcement  of  the 
Tax  Code  also  by  defining  all  necessary  administrative  structures,  procedures  and  policies, 
including the co-operation with the tax payers and tax compliance, ethics policy, a fiscal control 
strategy, audit and investigation methods. 

Priority area 5 

Improve functioning of customs 

–  Continue  the  improvement  of  customs  legislation  and  the  simplification  of  procedures  in  line 
with  EU  and  international  standards  including  the  review  of  the  new  Customs  Code  and  the 
adoption and enforcement of new norms in this field; 

–  Continue  to  implement  requirements  of  the  Code  of  Honour/  Dignity  based  on  the  Arusha 

Declaration and study EU experience on ethics codes for customs officials; 

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–  Provide  information  on  newly  adopted  import  and  export  regulations  and  procedures  and 
conduct  regular  consultations  with  business  groups  in  this  field.  Provide  full  and  regular 
information on tariffs to the public; 

–  Strengthen the overall administrative capacity of the customs administration, implement customs 
valuation rules in compliance with international and EU standards; fully implement the currently 
applicable  principles  of  risk-based  customs  control  and  post-clearance  control;  provide  the 
customs  administration  with  appropriate  laboratory  expertise  as  well  as  sufficient  technical 
facilities in the IT area and other operational capacity; strengthen training of customs officials;  

–  Exchange  experiences  on  the  implementation  of  EU  standards  on  modernisation  of  customs 
procedures  and  maintaining  security  in  the  international  trade  chain.  Conduct  training  and 
provide information to strengthen the proficiency of customs officials based on EU best practice 
and experience. 

Priority area 6  

Support balanced and sustained economic development, with a particular focus on diversification 
of  economic  activities,  development  of  rural  areas,  poverty  reduction  and  social/territorial 
cohesion; promote sustainable development including the protection of the environment  

Specific actions: 

–  Pursue  stable  economic  growth  through  prudent  fiscal  and  monetary  policies,  with  a  particular 

focus on keeping a stable non-oil fiscal deficit and low inflation; 

–  Continue  process  of  public  finance  reform  to  improve  efficiency,  accountability,  transparency 

and predictability;  

–  Continue  commitment  to  SPPRED  priorities  and  to  the  achievement  of  the  Millennium 

Development Goals; 

–  Speed up  the  implementation of the  “Second State Programme  of  Privatisation of State-owned 

Property in the Republic of Azerbaijan”, including the privatisation of strategic enterprises; 

–  Reform  the  social  security  system,  notably  to  improve  targeting  and  effectiveness  of  social 

protection measures and social assistance; 

–  Continue the reform of the health sector; improve quality coverage and efficiency and establish 

effective management systems; 

–  Continue implementation of the State Programme for Regional Development; 

–  Continue  participation  in  Extractive  Industries  Transparency  Initiative  in  order  to  ensure 

transparent reporting of revenues from oil and gas extraction; 

–  Continue the restructuring of SOCAR (State Oil Company of the Azerbaijani Republic) and of 

other major state-owned corporations, in line with good international practices; 

–  Continue 

implementation  of  State  Program  on  Small  and  Medium  Entrepreneurship 

Development; 

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–  Further reform efforts in the field of education to promote human resources development; 

–  Strengthen administrative structures and procedures to ensure strategic planning of environment 

issues and coordination between relevant actors. 

Priority area 7 

Further convergence of economic legislation and administrative practices 

Specific actions: 

–  Strengthen the institutions responsible for standardisation, accreditation, conformity assessment, 

metrology and market surveillance; 

–  Ensure full conformity of Intellectual Property Rights legislation with PCA requirements and its 

efficient enforcement; 

–  Continue reforms in the field of public investment policy. 

Priority area 8 

Strengthening  EU-Azerbaijan  energy  bilateral  cooperation  and  energy  and  transport  regional 
cooperation, in order to achieve the objectives of the November 2004 Baku Ministerial Conferences 

Specific actions: 

–  Implement  and  monitor  regularly  the  level  of  implementation  of  the  Memorandum  of 
Understanding on the establishment of a Strategic Partnership between the European Union and 
the Republic of Azerbaijan in the field of energy; 

–  Implement  and  continuously  update 

the  State  Programme  on  Fuel-Energy  Complex 

Development 2005-2015; ensure an increasing convergence with EU energy policy objectives;  

–  Continue cooperation on Caspian and Black Sea regional energy issues, including in the context 
of INOGATE and the follow-up to the EU-Black Sea-Caspian Basin Ministerial Conference held 
in Baku in November 2004; 

–  Support the development of cooperation in accordance with the documents adopted at the EU-
Black Sea-Caspian Basin Ministerial Transport Conference held in Baku in November 2004. 

Priority area 9 

Enhancement of cooperation in the field of Justice, Freedom and Security, including in the field of 
border management 

Specific actions: 

–  Develop  by  2006  an  integrated  border  management  strategy  and  enhance  inter-agency  co-
operation among State authorities involved in border management as well as co-operation with 
neighbouring countries, including proper border demarcation and full implementation of existing 
bilateral border co-operation agreements and protocols (notably with Georgia, Iran, the Russian 
Federation and Turkey); 

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–  Implement  the  1990  Council  of  Europe  Convention  on  Laundering,  Search,  Seizure  and 
Confiscation of the Proceeds of Crime and sign the new 2005 convention on laundering, search, 
seizure and confiscation of the proceeds from crime and on the financing of terrorism, which is 
its natural follow-up; 

–  Establish a dialogue on matters related to the movement of people including on readmission and 

on visa issues;  

–  Review  the  implementation  of  the  National  Action  Plan  for  Combating  the  Trafficking  of 

Persons as adopted in 2003; assess progress made and envisage follow-up measures; 

–  Ensure  proper  implementation  of  the  UN  Convention  against  Trans-national  Organised  Crime 
and  its  three  Protocols  to  Prevent,  Suppress  and  Punish  Trafficking  in  Persons,  Especially 
Women and Children, against the Smuggling of Migrants by Land, Air and Sea, and against the 
Illicit  Manufacturing  of  and  Trafficking  in  Firearms,  Their  Parts  and  Components  and 
Ammunition. 

Priority area 10 

Strengthen regional cooperation  

Specific actions: 

–  Enhance  participation  in  regional  cooperation  initiatives,  e.g.  environment,  education,  border 

management, transport as well as in the parliamentary sphere;  

–  Strengthen  Azerbaijan  participation  in  regional  law  enforcement  cooperation  initiatives  in 
Southern Caucasus, including through EC-funded regional assistance initiatives such as SCAD;  

–  Support  the  Caucasus  Regional  Environmental  Centre  in  meeting  its  objective  to  promote  co-
operation between Governmental and non-Governmental actors in the region, as well as enhance 
participation in its work;  

–  Enhance bilateral and multilateral cooperation in the Black Sea region – including strengthened 
regional  economic  cooperation  through  continued  engagement  with  the  Black  Sea  Economic 
Cooperation Organisation (BSEC) – and between the Black Sea and the Baltic Sea regions; 

–  Enhance youth exchanges and cooperation on a regional level. 

Progress in meeting these priorities will be monitored in the bodies established by the Partnership 
and Cooperation Agreement and the European Commission will issue a mid-term report on progress 
accomplished. On the basis of this assessment, the EU and Azerbaijan, will review the content of 
the  Action  Plan  and  may  decide  on  its  adaptation  as  necessary.  The  European  Commission  will 
issue a further report towards the end of the five year period and, on this basis, decisions may be 
taken  on  the  next  step  in  the  development  of  bilateral  relations,  including  the  possibility  of  new 
contractual links.  

4. 

GENERAL OBJECTIVES AND ACTIONS 

These further actions complement, in many cases, the specific priorities for action listed above. 

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4.1. 

Political dialogue and reform 

4.1.1.  Democracy, rule of law, human rights and fundamental freedoms 

Strengthening the stability and effectiveness of institutions guaranteeing democracy and the rule of 
law 

Strengthening democratic institutions  

–  Continue approximation of national legislation with European standards, in particular, improve 
the  electoral  process  and  ensure  its  overall  transparency  in  line  with  OSCE/ODIHR  and  CoE 
Venice Commission recommendations; 

–  Increase efforts to strengthen local democracy, in particular through supporting the creation of a 

national union of municipalities and ensuring its efficient activity. 

Ensuring respect for human rights and fundamental freedoms 

–  Further  reforming  the  penitentiary  system  and  improving  detention  conditions  in  line  with  the 
recommendations  of  the  European  Committee  for  the  Prevention  of  Torture  and  Inhuman  or 
Degrading Treatment or Punishment (CPT); 

–  Closely cooperate with the OSCE and the CoE to reform the police, in order to ensure protection 
and respect for human rights, prevent and eliminate torture, other mistreatments and corruption; 

–  Enhance the capacity of institutions dealing with the protection and promotion of human rights, 
in  particular  the  Office  of  the  Ombudsman  and  the  Government  Agent  of  Azerbaijan  at  the 
European Court of Human Rights; 

–  Continue  efforts  to  ensure  trade  unions’  rights  and  core  labour  standards,  in  accordance  with 

European standards and relevant ILO conventions; 

–  Ensure respect for the right to freedom of assembly;  

–  Ensure respect for rights of persons belonging to national minorities; 

–  Continue efforts to ensure the equality of men and women in society and economic life; 

–  Promote education about human rights. 

Reform of the judicial system 

Continue  to  enact  legislation  and  implement  the  reform  of  the  judiciary  in  line  with  European 
standards, and in particular by: 

–  Improving  training  of  judges,  prosecutors  and  officials  in  the  judiciary,  administrations  of  the 
Ministry of Justice, the Judicial-Legal Council and prisons, in particular with regard to Human 
Rights issues and judicial international co-operation; 

–  Amending the criminal code to abolish or alleviate the provisions relating to defamation or libel 

cases; 

–  Improving access to justice; 

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–  Strengthen the capacity of the Judges Selection Committee and the Bar Association. 

Civil service reform and administrative capacity building  

–  Reform  State  administration  and  civil  service  with  a  view  to  ensure  their  modernisation, 

accountability and transparency; 

–  Promote  general  and  specific  awareness-raising  measures  and  training  on  European  standards, 

institutions and practices amongst Azerbaijani officials. 

Ensure the effectiveness of the fight against corruption 

–  Closely cooperate with the Council of Europe Group of States against Corruption (GRECO) and 

ensure progress in implementing its recommendations.  

4.1.2.  Cooperation on foreign and security policy, conflict prevention and crisis management 

Strengthen political dialogue and cooperation on foreign and security matters  

–  Continue  to  develop  EU-Azerbaijan  political  dialogue  on  regional  and  international  issues, 
including  in  the  framework  of  the  Council  of  Europe,  OSCE,  NATO  and  the  UN,  and  on  the 
implementation of the European Security Strategy; 

–  The EU may invite Azerbaijan on a case-by-case basis to align itself with the EU’s positions on 

regional and international issues; 

–  Conduct consultations on sanctions issued by the EU, including arms embargoes;  

–  Develop  an  enhanced  political  dialogue  and  regular  exchange  of  information  on  Common 

Foreign and Security Policy including European Security and Defence Policy; 

–  Exchange of information and possible assistance in the process of security sector reforms; 

–  Initiate  the  accession  to  the  Rome  Statute  of  the  International  Criminal  Court  and  make  the 
necessary  legislative  and  constitutional  amendments  for  its  implementation.  Fight  against 
international  crime  in  accordance  with  international  law,  giving  due  regard  to  preserving  the 
integrity of the Rome Statute. 

Further develop co-operation in addressing common security threats, including non-proliferation of 
weapons of mass destruction and illegal arms exports  

–  Cooperate  on  non-proliferation  of  weapons  of  mass  destruction,  their  means  of  delivery  and 
ballistic  missiles,  including  through  implementing  UNSC  resolution  1540/04,  ensuring  full 
compliance with and national implementation of existing international obligations and promoting 
the  accession  to  and  implementation  of  other  relevant  international  instruments  and  export 
control regimes; 

–  In  this  context,  continue  the  existing  dialogue  on  our  joint  policy  of  non  proliferation  through 
enhancing the present cooperation between our researchers being involved in activities aimed at 
helping the former weapon of mass destruction scientists and engineers to redirect their talents to 
civilian  and  sustainable  activities  in  the  context  of  the  Science  and  Technology  Centre  in 
Ukraine (STCU);  

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–  Further  develop  co-operation  in  the  prevention  of  and  fight  against  the  illicit  trafficking  of 

materials that are used in the manufacture of WMD; 

–  Co-operate  on  developing  effective  systems  of  national  export  control,  controlling  export  and 
transit  of  WMD  related  goods,  including  WMD  end-use  control  on  dual  use  of  goods  and 
technologies, and effective sanctions for breaches of export controls; 

–  Improve overall co-ordination in the non-proliferation area and examine specific threats related 
to WMD which undermine regional security and the scope of co-operation in addressing them;  

–  Cooperate on implementing the provisions of the OSCE Document on SALW, OSCE Document 

on Stockpiles of Conventional Ammunition and OSCE Best Practice Guide on SALW; 

–  Improve internal legislation in line with the EU Code of Conduct on Arms Exports; 

–  As soon as conditions permit, accede to the 1997 Ottawa Convention on the Prohibition of the 
Use, Stockpiling, Production and transfer of Anti-Personnel Mines and on their Destruction.  

Strengthen efforts and cooperation in the fight against terrorism 

–  Strengthen EU-Azerbaijan co-operation in the fight against and prevention of terrorism; 

–  Co-operate to reinforce the role of the UN in the multilateral fight against terrorism, including 
through full implementation of UNSC Resolutions 1267/99, 1373/01, 1566/04 and 1624/05 and 
through  implementation  of  all  relevant  UN  Conventions  including  the  UN  Convention  for  the 
Suppression of the Financing of Terrorism; 

–  Work  towards  the  establishment  of  an  information  exchange  system  between  relevant  judicial 

bodies and law enforcement agencies of the EU Member States and Azerbaijan; 

–  Implement the standards laid down in the FATF’s recommendations on terrorist financing; 

–  Ensure respect of human rights in the fight against terrorism. 

4.1.3.  Regional Cooperation 

Participation in regional cooperation initiatives  

–  Enhance and develop, as appropriate, new areas of regional cooperation, including through EU-
funded  regional  assistance  initiatives  detailed  in  relevant  sectors  of  this  AP  eg  environment, 
education, border management, as well as the parliamentary dimension; 

–  Continue to participate in the South Caucasus Parliamentary Initiative with a view to forming a 

full South Caucasus parliamentary process.  

4.2. 

Contribute to a peaceful solution of the Nagorno-Karabakh conflict  

Promote sustained efforts towards the peaceful resolution of the Nagorno-Karabakh conflict 

–  Increase political support to OSCE Minsk Group conflict settlement efforts on  the basis of the 

relevant UN Security Council resolutions and OSCE documents and decisions; 

–  Implement de-mining initiatives; 

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–  Promote measures to assist IDPs and refugees; 

–  Promote the active involvement of civil society; 

–  Reinforce  the  cooperation  on  these  and  other  matters  in  support  of  conflict resolution  with  the 

EU Special Representative for the Southern Caucasus. 

4.3. 

Cooperation in the Field of Justice, Freedom and Security 

4.3.1.  Cooperation on border management 

Develop an efficient and comprehensive border management system 

–  Develop  a  comprehensive  education  and  training  strategy  on  border  management,  including 

improved understanding of Schengen rules and standards; 

–  Enhance the efficiency of Azerbaijan law enforcement authorities (Police, State Border Service, 
Customs)  through  the  provision  of  modern  equipment,  adequate  infrastructures,  facilities  and 
training in order to increase in particular the effectiveness of border crossing checkpoints. 

Intensify trans-border cooperation between Azerbaijan and neighbouring countries 

–  Further  develop  regional  co-operation  between  relevant  law  enforcement  bodies  (State  Border 

Service, Police, migration services and Customs).  

4.3.2.  Migration issues (legal, illegal, readmission, visa, asylum) 

Develop cooperation on migration issues 

–  Ensure  adoption  and  proper  implementation  of  the  State  Migration  Programme  based  on  the 

State Migration Policy Concept within the framework of the SPPRED; 

–  Exchange of information and cooperation on transit migration; 

–  Make  all  possible  use  of  existing  Community  programmes,  including  AENEAS  and  its 

successor, in order to support actions in the field of asylum and migration. 

Enhanced dialogue on migration issues including prevention and control of illegal migration and 
readmission of own nationals, stateless persons and third country nationals 

–  Exchange  of  information  and  best  practices  on  migration  and  asylum  issues  (entry  and  stay, 
integration,  Eurodac  system,  temporary  protection,  reception  conditions  for  asylum  seekers, 
detention of illegal migrants) and prevention and control of illegal migration;  

–  Initiate a dialogue on readmission which could possibly lead in the future to an EC-Azerbaijan 
agreement in this area; exchange of experience and expertise about the practical implications of 
such an agreement;  

–  Develop cooperation on reintegration of returned asylum seekers and illegal migrants;  

–  Develop cooperation with international organisations and relevant agencies of main countries of 

origin, transit and destination in order to manage migration processes. 

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Facilitate the movement of persons  

–  Exchange of views on visa issues; 

Establish within existing PCA mechanisms a dialogue on migration issues including: i) prevention 
and fight against illegal immigration; ii) readmission of own nationals, stateless persons and third 
country nationals; iii) visa issues 

–  Cooperate  to  improve  security  of  travel  documents  and  visa  in  conformity  with  international 

standards. 

Develop  a  modern  and  efficient  national  asylum/  protection  system  in  line  with  international 
standards that is self-sustaining and that offers integration opportunities for those who qualify 

–  Implementation  of  the  principles  of  the  1951  Geneva  Convention  and  the  1967  Protocol; 
improvement of national legislation on asylum, refugees and IDPs to bring it in line with EU and 
other international standards; 

–  Implement standard procedures relating to treatment of asylum applications, in accordance with 

EU and other international standards; 

–  Strengthen the capacity of the State Committee for Refugees and IDPs; 

–  Provide assistance to IDPs and refugees. 

4.3.3.  Fight against organised crime, trafficking in human beings, drugs and money-laundering 

Strengthen efforts and co-operation in the fight against organised crime  

–  Cooperate with EU law enforcement agencies and international organisations in new crime areas, 
e.g. Information and Communication Technology related crime, in particular child pornography.  

Reinforce the fight against trafficking in human beings, especially of women and children,(as well 
as activities to integrate victims of such traffics) and smuggling of illegal migrants 

–  Implement actions recommended by OSCE action plan to combat trafficking in Human Beings 
(approved  in  Maastricht  December  2003,  Chapters  III,  IV  and  V)  and  enhance  co-operation  in 
the framework of relevant international organisations (OSCE, UN); 

–  Promote regional co-operation between relevant law enforcement bodies (police, border guards, 

customs and judiciary); 

–  Develop mechanisms of protection, assistance and rehabilitation for victims. 

Further  strengthen  the  fight  against  illicit  drug  trafficking,  including  precursor  diversion,  and 
against drug abuse in particular through prevention and rehabilitation of drugs addicts 

–  Continue implementing the 1988 UN Convention on Illicit Traffic of Narcotic and Psychotropic 

Substances; 

–  Reinforce  national  legislation  and  develop  an  anti-drug  strategy,  covering  drug  supply  and 
demand  reduction,  including  prevention  programmes  and  programmes  for  treatment  of  drug 
addicts; 

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–  Develop the capacity of relevant national law enforcement authorities; 

–  Enhance  strategic  and  operational  cooperation  with  Black  Sea  and  Caspian  Sea  littoral 
neighbouring  countries  with  a  view  to  better  intercept  narcotics  shipments  originating  from 
Afghanistan. 

Strengthen efforts and co-operation in the fight against money-laundering  

–  Develop  the  necessary  legislative  framework,  including  the  establishment  of  a  Financial 

Intelligence Unit (FIU), in line with OECD FATF standards; 

–  Strengthen co-operation between the Central Bank, financial institutions, International Financial 

Institutions such as the World Bank, the IFC and the EBRD, and law enforcement agencies; 

–  Exchange information on the existing European structures and the existing system in Azerbaijan 

as regards the fight against money-laundering; 

–  Promote  application  of  effective  sanctions  against  money-laundering  and  set  up  a  proper 

mechanism to freeze and confiscate proceeds of crime; 

–  Develop a training programme for the staff of the FIU, judges, prosecutors, and all other relevant 

personnel; 

–  Intensify  co-operation  and  promote  exchange  of  information  among  law  enforcement  agencies 
and co-operation between Azerbaijan and international organisations, such as Moneyval and the 
FATF-style  regional  bodies  (possibly  the  Eurasian  Group),  as  well  as  with  corresponding 
services of EU Member states and specialised bodies at European level;  

–  Once  established,  envisage  membership  of  the  future  FIU  in  the  Egmont  Group  in  order  to 

effectively exchange information with Foreign Financial Intelligence Units. 

4.3.4.  Police and judicial co-operation 

Develop international and regional law enforcement cooperation 

–  Sign, ratify and implement the second additional protocol to the European Convention on Mutual 

Assistance in Criminal matters; 

–  Sign, ratify and implement the 1980 Hague Convention on Child Abduction; 

–  Improve  inter-agency  co-operation  and  international  co-operation,  in  particular  enhance  law 
enforcement  cooperation  with  neighbouring  States  in  the  Black  Sea  region  and  in  the  Caspian 
Sea region. 

Further  develop  co-operation  between  Azerbaijan  and  EU  Member  State  judicial  and  law 
enforcement authorities 

–  Establish  a  network  of  contact  points  with  EU  Member  States  judicial  and  law  enforcement 

authorities with a view to develop cooperation and exchange information; 

–  Explore  the  possibilities  for  co-operation  between  Azerbaijan  law  enforcement  agencies,  and 

EUROPOL in accordance with the Europol Convention and the relevant Council decisions; 

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–  Sign,  ratify  and  implement  the  1981  Council  of  Europe  Convention  for  the  Protection  of 

individuals with regard to Automatic processing of Personal Data. 

4.4. 

Economic and social reform, poverty reduction and sustainable development 

Continue to pursue prudent macro-economic policies in cooperation with IFIs 

–  Strengthen  the  Medium  Term  Expenditure  Framework  to  link  SPPRED  priorities  to  budgetary 

process; 

–  Strengthen the capacity of the monetary authorities on monetary policy and research areas.  

Take significant steps to reduce levels of poverty 

–  Introduce effective poverty reductions measures aimed at significant reduction in the number of 
people with income below the poverty line. Adopt ”The State Programme on Poverty Reduction 
and  Sustainable  Development  for  2006-2015”  in  order  to  ensure  sustainable  development,  and 
cooperate with the EU in this respect;  

–  Continue to implement the State Programme on Social Economic Development of Regions and 
take  further  steps  to  upgrade  infrastructure  in  regions  in  order  to  improve  living  conditions  of 
population and business climate; 

–  Implement  appropriate  employment  creation  measures  aimed  at  increasing  the  efficiency  of 
employment  and  develop  the  labour  market.  Reform  the  social  protection  system,  particularly 
with  a  view  to  improving  its  efficiency  and  its  focus  on  the  most  vulnerable  groups  of  the 
population (large households, children in institutions, disabled people); 

–  Continue  reform  of  the  health  care  sector;  improve  quality,  coverage  and  efficiency;  establish 

effective management systems; 

–  Continue  to  improve  the  quality  of  the  educational  system  and  target  it  to  the  needs  of  the 

economy, with a particular focus on developing an entrepreneurial spirit; 

–  Ensure  a  closer  approximation  to  EU  standards  in  the  area  of  social  policy  (gender  equality, 

labour law and health and safety at work).  

Social Insurance – pension system 

–  Promote  exchanges  of  experiences,  dialogue  and  cooperation  on  matters  of  social  security, 

notably on issues such as the reforms of the pension system and of the social insurance. 

Enhance agricultural production and rural development  

–  Adopt  and  implement  a  reform  strategy  for  the  agricultural  sector  providing  for  the  structural, 
institutional, legal and administrative support necessary in order to complete the process of land 
privatisation and liberalisation of land markets and to promote rural development activities;  

–  Foster  the  development,  promotion  and  protection  of  quality  production  (local  traditional 

products, organic products, geographical indications, etc; 

–  Exchange of experience on best practices and use of international and EU standards;  

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–  Identify  and  develop  measures  to  improve  (i)  access  to  credit  facilities  to  encourage  private 
investment in the agricultural sector, (ii) access to local and export markets, and (iii) knowledge 
transfer and extension services.  

Improve market economy functioning and strengthen economic growth through structural reforms 

–  Continue  to  separate  ownership  and  regulatory  role  in  appropriate  sectors  in  order  to  develop 

market economy functioning; 

–  Enforce  functioning  of  Tariff  Council  to  provide  for  efficient  and  market  based  regulation  of 
state governed prices, tariffs, duties, tolls, other payments. Ensure and accelerate the process of 
transition to market oriented principles and policy in the sphere of price formation; 

–  Reform  the  legal  basis  of  the  insurance  sector,  with  a  particular  focus  on  permitting  foreign 

insurance companies and to increase competition in the insurance sector; 

–  Examine  the  potential  and  legal  basis  for  establishment  of  leasing  companies  and  mortgage 

institutions; 

–  Enforce Labour Code and assess the prospects for relaxation of strict provisions for dismissal. 

Promotion of sustainable development 

–  Identify steps to implement the national strategy on sustainable development; 

–  Continue  the  establishment  of  administrative  structures  and  procedures  to  ensure  strategic 

planning of sustainable development and coordination between relevant actors; 

–  Take steps to improve integration of environmental considerations into other policy sectors. 

4.5. 

Trade-related issues, market and regulatory reform 

4.5.1.  Movement of goods  

Trade Relations 

–  Enhance  EU-Azerbaijan  bilateral  trade  through  ensuring  full  implementation  of  Azerbaijan’s 

relevant PCA obligations; 

–  Work towards WTO accession on commercially viable terms;  

–  Enhance staff training and capacity building on international trade relations; 

–  Increase compliance with relevant industrial standards, SPS and veterinary norms with a view to 
increasing  benefits  from  the  Generalised  System  of  Preferences  and  thereby  improving 
Azerbaijan’s export performance; 

–  The EU and Azerbaijan to jointly explore possible options for further enhancing bilateral trade 
relations, once  Azerbaijan  has  joined  the  World  Trade  Organisation,  including  the  possible 
establishment  of  a  free  trade  agreement  between  the  EU  and Azerbaijan.  In  this  context,  the 
Commission  will  undertake  a  feasibility  study  which  will  also  look  at  regional  trade  and 
economic integration aspects; 

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–  Train  judges  in  the  areas  of  ensuring  unprejudiced  and  fair  functioning  of  economic  courts  on 

trade and investment matters, and improvement of court monitoring system.  

Customs 

–  Take preventive measures and strengthen the fight against smuggling and import and export of 

counterfeit and pirated goods;  

–  Strengthen co-operation between customs and other agencies working at the border; 

–  Develop EU-Azerbaijan co-operation with regard to risk based customs control ensuring safety 
and  security of  goods  imported, exported or in  transit, and define standards for certification of 
operators (exporters and transporters) intervening in commercial exchanges. 

Standards,  technical  regulations  and  conformity  assessment  procedures  (EU  harmonised 
areas) 

Move toward EU and international legislative and administrative practices for standards, technical 
regulations and conformity assessment  

–  Jointly  identify  priority  industrial  sectors  for  possible  legislative  approximation  including 
through  consultations  with  producers  and  exporters.  Continue  efforts  for  the  completion  of  the 
process of translating relevant EU standards in Azerbaijan; examine the scope for Azerbaijan’s 
participation  in  relevant  European  standardisation  bodies;  Harmonise  the  necessary  legislation 
with EU technical legislation in the priority sectors; 

–  Strengthen  the  institutions  in  charge  of  standardisation,  accreditation,  conformity  assessment, 
metrology  and  market  surveillance;  integrate  them  to  the  extent  possible  within  European  and 
international structures; 

–  Strengthen potential and capacity of the central coordinating body responsible for the regulation 
and certification of the locally produced foodstuff and other products with a view to ensuring the 
alignment of local quality standards and conformity certification to European standards;  

–  Simplify  procedures  of  conformity  assessment  of  industrial  products,  with  the  aim  of  avoiding 

compulsory certification of low risk products and repeat testing; 

–  Develop market surveillance capacities based on best practice of EU Member States. 

Restrictions and streamlined administration (EU non-harmonized areas) 

–  Analyse legislation and administrative procedures with a view to identifying and progressively 
removing  discrimination  and  restrictions  against  imported  products,  according  to  the  WTO 
regulations and procedures;  

–  Designate  a  central  contact  point  (enquiry  point)  on  licensing  and  standards  procedures  to 

facilitate information flows and co-operation with economic operators.  

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Sanitary  and  phyto-sanitary  issues:  Increase  food  safety  for  consumers  and  facilitate  trade 
through reforms and modernisation of the sanitary and phyto-sanitary sectors  

–  Ensure  implementation  of  the  WTO  Agreement  on  the  Application  of  Sanitary  and  Phyto-
sanitary Measures upon Azerbaijan’s accession to the WTO, including by nominating a central 
enquiry point and creating a rapid information system; 

–  Exchange information on and explore possible areas of convergence with EU practice in the field 
of  sanitary  and  phyto-sanitary  issues  (e.g.  policy,  legislation,  strengthening  of  institutions, 
implementing practices);  

–  Adhere to the Codex Alimentarius;  

–  In the medium term, draw up a first list of measures for gradual convergence towards EU general 
food safety principles and requirements (e.g. Regulation 178/2002/EC; animal and plant or plant 
food  processing).  Start 
traceability  systems;  hygiene 
identification  and 
products 
approximation of legislation in this area; 

in 

–  Fulfilment of EU requirements on animal health and for the processing of animal products (c.f.: 
“General  Guidance  for  third  country  authorities  on  the  procedures  to  be  followed  when 
importing  live  animals  and  animal  products  into  the  European  Union”,  DG  SANCO/FVO 
October 2003);  

–  Work towards interconnection with the EU Rapid Alert System for Food and Feed. 

4.5.2.  Right of establishment, Company Law and Services 

Right of establishment and Company Law 

Full implementation of PCA commitments in title IV, Chapter II (Conditions affecting establishment 
and operation of companies) and Title VI art. 48 (Investment promotion and protection) 

–  Complete screening to be made by Azerbaijan of national legislation so as to identify barriers to 
establishment including foreign investment with the aim of progressively harmonising legislation 
to European standards; 

–  Ensure  full  application  of  the  best  endeavour  standstill  clause  so  that  the  conditions  for 
establishment  of  companies  are  not  more  restrictive  than  when  the  PCA  was  concluded. 
Measures  taken  in  compliance  with  international  obligations  of  Azerbaijan  in  the  area  of  anti-
money laundering, fight against terrorism and similar issues shall not be considered as worsening 
establishment or registration requirements;  

–  Ensure  effective  functioning  of  adequate  administrative  structures,  inter  alia  a  central  co-

ordinating body facilitating establishment; 

–  Converge  with  and  ensure  effective  implementation  of  key  principles  on  company  law, 

accounting and auditing in relevant international and EU rules and standards; 

–  Improve consistency and predictability in the administrative and judicial authorities responsible 

for oversight of company law and related investment conditions;  

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–  Ensure  effective  functioning  of  a  public  register  of  undertakings  and  the  publication  of  certain 
information  such  as  the  company’s  organisation  and  financial  details  in  the  ‘national  official 
gazette’;  

–  Consolidate  and  ensure  effective  functioning  of  an  administrative  or  judicial  authority  which 

ensures the control of the incorporation of a company or the legality of certain acts; 

–  Adopt and ensure effective implementation of corporate governance; 

–  Ensure efficient bankruptcy legislation. 

Services 

Gradual abolition of restrictions to progressively allow the supply of services between the EU and 
Azerbaijan  in  certain  sectors,  in  line  PCA  commitments  in  Title  IV,  Chapter  III  (Cross-border 
supply of services) 

–  Complete a review of national legislation by Azerbaijan so as to identify barriers to the provision 

of services with the aim of harmonizing legislation to European standards;  

–  Ensure  effective  implementation  of  appropriate  administrative  structures  within  a  central  co-

ordinating body with the aim of facilitating the supply of services. 

Financial services 

–  Participate  in  and  ensure  implementation  of  recommendations  of  the  IMF  FSAP  (Financial 

Sector Assessment Program); 

–  Enhancement  of  a  prudential  regulatory  framework  for  financial  services  and  supervision 

equivalent to that existing in the EU; 

–  Effective 

implementation  of 

independent  supervisory  authorities 

in  accordance  with 

internationally recognised standards; 

–  Development of a legal base for a mortgage lending system; 

–  Provide  access  to  banking  services  in  the  regions  through  the  use  of  modern  information 

technologies;  

–  Elaborate an appropriate strategy to develop the financial markets and financial intermediation in 

accordance with modern international standards; 

–  Establishment of a deposit insurance system in Azerbaijan to increase the trust of the population 

in the banking sector.  

4.5.3.  Movement of capital and current payments 

Ensure full application of PCA commitments under Chapter V (Current Payments and capital)  

–  Ensure the free movement of capital relating to direct investment made in companies and other 
investments made in accordance with the provisions on Establishment (Chapter II of Title IV of 
PCA); 

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–  Ensure the protection of such foreign investments and the liquidation and repatriation of profits 

and capital;  

–  Provide  information  about  the  present  legal  and  regulatory  regime  as  concerns  capital 

movements;  

–  Consider  the  progressive  facilitation  of  capital  movements  other  than  those  relating  to  direct 

investments.  

4.5.4.  Movement of persons, including movement of workers  

Full implementation of commitments under Article 20 of PCA (labour conditions) 

–  Ensure  full  application  of  the  best  endeavour  clause  by  abolishing  all  discriminatory  measures 
based on nationality which affect migrant workers, as regards working conditions, remuneration 
or dismissal. 

4.5.5.  Other key areas 

Taxation 

–  Continue  efforts  to  complete  the  network  of  bilateral  agreements  between  Azerbaijan  and  EU 
Member States on avoidance of double taxation including the improvement of transparency and 
the exchange of information in accordance with international standards; 

–  Initiate  a  dialogue  on  the  principles  of  the  EU  Code  of  Conduct  for  Business  Taxation  with  a 
view  to  ensuring  fair  conditions  for  Azerbaijan  in  its  future  process  of  integration  into  the  EU 
internal market; 

–  Develop and implement a detailed strategy plan for tax management and broaden opportunities 

for the use of information and communication technologies; 

–  Develop  the  tax  system  of  the  Republic  of  Azerbaijan  in  compliance  with  general  EU  and 

international principles.  

Management and privatisation of State-owned property 

–  Studying of international experience in the field of management, effective usage and evaluation 

of State-owned property; 

–  Cooperation with EU on implementation of institutional measures in order to restructure, recover 
and support the activities of privatised enterprises, increasing of capacity of the appropriate state 
bodies; 

–  Conducting appropriate researches in connection with implementation of privatisation measures 

in the strategic fields of the Country. 

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Competition policy  

Converge with EU principles on Competition according to Title V article 43 of the Partnership and 
Co-operation Agreement 

–  Examine  the  possibility  of  establishing  further  transparency  as  regards  State  aid  granted  in 
Azerbaijan, in particular by (i) drawing up a complete list of aid grantors, (ii) creating a national 
mechanism  for  centralising  all  information  on  state  aid  granted  in  Azerbaijan,  with  a  view  to 
drawing up annual reports on the amounts, types and recipients of aid; 

–  Adopt the draft Anti-monopoly Code and fulfil necessary measures to align anti-trust legislation 

to modern EU standards. 

Anti-trust and control on state aid policy 

–  Enhancing  the  administrative  capacity  and  the  independence  of  the  relevant  Competition 

authority in Azerbaijan;  

–  Ensuring adequate legal powers for the competition agency, including the right to carry out on-

the–spot checks.  

Intellectual and industrial property rights 

Improve IP legislation and bring it into conformity with EU legislation 

–  Amend the legislation of Azerbaijan on “Author’s right and related rights”, elaborate a draft law 
on  “Reserve  of  rights  of  broadcasting  organizations”  transmitting  through  digital  networks,  as 
well  as  elaborate  normative  legal  acts  on  the  use  of  multimedia  products  in  these  networks, 
discuss them with EU experts on intellectual property;  

–  Prepare  analysis  of  IT-IP  relations  as  well  as  classification  of  IP  protection  rights  in  ICT; 
elaborate  legal  acts  on  e-trade  related  IP  rights  and  improve  legal  acts  providing  protection  of 
information objects and discuss them in close collaboration with EU IP experts. 

–  Accelerate accession to and implementation of WIPO treaties. 

Implementation of IP rights and enhancement of IP management 

–  Strengthen relevant institutional structures and right-holder organisations (collecting societies for 
copyright and relevant industry associations for industrial property rights); broaden cooperation 
in  this  field  with  relevant  structures  of  other  countries,  as  well  as  with  the  World  Intellectual 
Property Organization, UNESCO and World Trade Organisation; 

–  Adopt a long-term sector development programme on IP rights and cooperate on renewal of the 
Programme  on  assurance  of  state  policy  in  the  field  of  copyright  and  related  rights  as  well  as 
discussing these issues together with EU experts on intellectual property; 

–  Register  IP  integrated  management  organisations,  elaborate  legal  acts  related  to  regulations 
relevant to statutory licensing (taking copies for private purposes, pursuit rights, etc.) as well as 
prepare  projects  of  normative  legal  acts  declared  as  state  heritage,  consequently  discuss  them 
with  EU  experts  on  author’s  rights.  Improve  the  system  of  official  registration  of  IP  objects, 
including information compilations of non-creative nature and non-traditional IP objects. Prepare 

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acts related to registration norms and control of activities of organizations managing IP rights on 
collective basis as well as discuss the consequent matters with EU IP experts; 

–  Adopt and implement legal acts related to the calculation of economic share of IP based industry 

in GDP and on registration of non-material assets. 

Strengthening enforcement of IP rights and measures on prevention of infringements of rights 

–  Improve functioning of, and resources dedicated to, the legal system guaranteeing provision of 
proper and efficient sanctions for right-holders in courts; strengthen measures against piracy and 
counterfeit  products  in  specifically  targeted  sectors  and  measures  increasing  capacity  and 
resources  of  custom  and  law  enforcement  authorities  in  ensuring  IP  rights;  conduct  a  market 
study  on  product  piracy  and  counterfeiting  and  analyze  market  using  the  experience  of  EU 
countries; develop regulations on creation of a special data-base on statistics and results related 
to  IP  rights  infringements  found  during  monitoring  as  well  as  results  of  court  trials  on  IP 
infringements;  adopt  and  implement  methodological  instructions  and  measures  for  studying 
public opinion and creating IP culture; establish efficient dialogue with right-holders; 

–  Elaborate  a  law  on  “IP  enforcement  and  fight  against  piracy”  and  renew  goal-oriented 
Programme on “Protection means of IP rights: fight against piracy” and provide discussions of 
these matters with EU-IP experts; 

–  Prepare  proposals  on  additions  and  amendments  to  Administrative  Offences  and  Criminal  and 
Criminal-Procedural Codes; elaborate legal act on assessing total amount of claims on copyright 
infringements; 

–  Prepare proposals on creation of relevant specialized units within law-enforcement and judicial 
bodies as well as training judges in order to assist in more professional and prompt prevention of 
IP  right  infringements  and  consequently  study  the  EU  experience  on  implementation  of  these 
proposals. 

Public procurement 

Develop conditions for open and competitive award of contracts between the parties, in particular 
through calls for tenders, in line with Article 49 of the PCA 

–  Improve  the  functioning  of  the  current  system  through  increased  transparency,  information 
provision,  access  to  legal  recourse,  awareness  and  training  among  contracting  authorities  and 
business community, as well as limited use of exceptions;  

–  Reinforce administrative capacity of the State Procurement Agency, in particular by introducing 
modern  technologies  to  improve  existing  monitoring  system;  preparing  e-procurement  and  in 
collecting necessary materials for the library established within the Agency;  

–  Converge  with  and  effectively  implement  key  principles  in  the  EU  legislation  on  public 
procurement (e.g. transparency, non-discrimination, competition and access to legal recourse).  

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Statistics 

Adoption  of  statistical  methods  fully  compatible  with  European  standards  and  advance  the 
modernisation of the State Statistical Committee of the Republic of Azerbaijan 

–  Improve  legislation  in  accordance  with the  recommendations  of the  Statistical  Office of  the 

European Communities; 

–  Elaborate  a  short  and  medium  term  development  strategy  for  harmonisation  with  European 

standards in the relevant statistical areas; 

–  Take steps to restructure the statistical services to ensure an optimal balance between available 

resources and data quality needs;  

–  Improve  the  conformity  with EU standards  on  national  classification  systems  and  statistical 

methodology; 

–  Accelerate work to fully apply ESA 95 (European System of Accounts); 

–  Modernisation of information and communication technologies in the national statistical system; 

–  Improve the quality and coverage of the business register.  

Public Internal Financial control and related issues 

Sound management and control of public finances 

–  Promote the development of appropriate administrative capacity to prevent and fight effectively 
against  fraud  and  other  irregularities  affecting  national  and  international  funds,  including  the 
establishment of well-functioning co-operation structures involving all relevant national entities; 

–  Ensure effective cooperation with the relevant EU Institutions and bodies in the case of on-the-

spot checks and inspections related to the management and control of EU funds; 

–  Continue process of public finance reform, including effective cooperation with appropriate EU-
based institutions to apply International Accounting Standards in Azerbaijan in order to improve 
efficiency, accountability, transparency and predictability;  

–  Continue budget planning based on programs and performance objectives; 

–  Improve  public  finance  management  and  transparency,  through  upgrading  of  the  existing 
Treasury  Accounts  Systems,  creating  a  mechanism  for  multi-stage  application  of  accounting 
standards in the public sector and appropriate audit of budget revenue and expenditures. Set up 
and  implement  an  integrated  informational  system  for  public  finance  management.  Issue 
quarterly reports on financial and budget execution; 

–  Conduct an annual audit of Oil Fund revenues and expenses to conform to the Law on Budgetary 

System and rules of SOFAR.  

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Public Internal Financial Control 

–  Develop a strategy and policy paper for the public internal financial control system (managerial 
accountability  and  internal  audit);  implementation  of  internal  audit  program  by  organizations 
dealing with budgetary issues; 

–  Establish  legislative  framework  for  public  internal  financial  control;  create  a  mechanism  for 
multi-stage  application  of  accounting  standards  in  the  public  sector;  develop  implementation 
mechanisms  for  public  sector  audit  standards  by  means  of  strengthening  the  potential  of 
institutions responsible for public financial control, and establish a central harmonisation unit for 
the  harmonisation  and  coordination  of  financial  management  and  control  (FMC)  and  internal 
audit systems and an Advisory Council of Auditors consisting of audit experts from public and 
private sectors; 

–  Pursue gradual harmonization with the internationally agreed standards (IFAC, IIA, INTOSAI) 
and methodologies, as well as with EU best practices for the control and audit of public income, 
expenditure, assets and liabilities.  

External Audit 

–  Strengthen  the  administrative  capacity  of  the  Chamber  of  Accounts  in  line  with  the 
internationally  accepted  and  EU  best  practice  external  audit  standards  (INTOSAI  standards  – 
International Organisation of Supreme Audit Institutions). 

Enterprise policy 

Develop and strengthen small and medium-sized enterprises and their associations and cooperation 
between SMEs in the Community and Azerbaijan in line with articles 62 of the PCA 

–  Develop  a  legislative  framework  and  appropriate  infrastructure  for  SMEs,  as  provided  for  in 

Article 64 of the PCA; 

–  Promote the exchange of information and of best practice on enterprise and industrial policy and 
associate  Azerbaijan  to  EU  initiatives  to  stimulate  competitiveness,  (e.g.  participation  in 
networks and studies, training); 

–  Promote  an  efficient  business  registration  system  based  on  the  principles  of  transparency,  fast 
start  up  times,  simplification  (i.e.  establishment  of  one-stop-shop  system  and  on  line  access  to 
business register);  

–  Explore  the  need  and  possible  options  for  launching  a  dialogue  on  enterprise  and  industrial 

policy;  

–  Continue the implementation of the State Programme for the development of SMEs; 

–  Implement  a  national  registration  system  for  companies,  based  on  best  practices  in  Member 
States  and  possibly  leading  to  the  accession  of  Azerbaijan  to  the  European  Business  Register; 
conduct a dialogue on cooperation within the European Charter on Small Entrepreneurship. 

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4.6. 

Cooperation in specific sectors, including transport, energy and environment  

4.6.1.  Transport  

Elaborate and start implementing a national transport strategy, including transport infrastructure 
development 

–  Develop and implement a national sustainable transport policy, with a focus, where appropriate 
on  further  approximation  of  legislative  and  regulatory  frameworks  with  European  and 
international standards, in particular for safety and security (all transport modes);  

–  Strengthen  and  if  necessary  establish  the  necessary  independent  regulatory  authorities  and 
further facilitate institutional reforms as well as the administrative structures to prepare specific 
plans for priority sectors; 

–  Creation  of  a  long-term  and  transparent  system  of  road  financing  in  order  to  ensure  continued 

maintenance of the existent public road network; 

–  Develop co-operation in satellite navigation (including joint research actions and applications); 

–  Implement  the  recommendations  of  the  High  Level  Group  on  the  Extension  of  Major  Trans-
European Transport  Axes to the Neighbouring Countries concerning transport axes and related 
horizontal measures.  

Implement selected measures and reforms in the road transport sector 

–  Develop  and  implement  a  road  safety  action  plan  (including  dangerous  goods  transport  and 
vehicles’  roadworthiness)  for  improving  road  safety,  with  particular  attention  to  be  paid  to 
passenger transport;  

–  Ensure  that  international  transport  sector  is  regulated  in  terms  of  access  to  the  profession; 
Introduce  and  enforce  mandatory  driving  times  and  rest  periods  in  the  international  transport 
sector complying with international standards; 

–  Strengthen implementation of the relevant international conventions.  

Implement selected measures and reforms in the railway transport sector 

–  Improve efficiency of freight transport services (including issues of border crossing procedures). 

Promote multi-modal services, address issues of interoperability; 

–  Further develop OSJD/OTIF cooperation.  

Implement selected measures and reforms in the aviation sector  

–  Implementation  of  the  (horizontal)  agreement  on  certain  aspects  of  air  services  with  the 

European Community; 

–  Introduction of new regulatory mechanisms, including on safety and security issues.  

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Implement selected measures and reforms in the maritime sector 

–  Encourage 

the  state-owned 
regulatory/operational and commercial functions). Further strengthen the regulatory authority; 

fleet  and  port  sector 

restructuring  of 

(separating 

the 

–  Implement  relevant  international  IMO  (International  Maritime  Organisation)  conventions; 
pursue effective enforcement in the areas of Port State Control and Flag State implementation as 
well as resolutions of the Maritime Environment Protection Committee on tanker safety. Remove 
single-hull  oil  tankers  from  operation  within  a  period  of  time  determined  by  the  IMO  Marpol 
Convention. 

Regional transport cooperation 

–  Further support the TRACECA process; 

–  Continue cooperation on Caspian and Black Sea regional transport issues, in the context of the 
follow-up to the EU-Black Sea-Caspian Basin Transport Ministerial Conference that took place 
in Baku in November 2004. 

4.6.2.  Energy 

Energy policy convergence  

–  Implement  the  provisions  of  the  Memorandum  of  Understandingon  the  establishment  of  a 
Strategic Partnership between the European Union and the Republic of Azerbaijan in the field of 
energy , in particular  

–  market convergence and structural reforms in the Azerbaijan’s energy market;  

–  enhancing security of  transit systems  and energy supplies for Azerbaijan and for the European 

Union;  

–  development of a comprehensive energy demand management policy; 

–  technical cooperation and the exchange of expertise. 

Structural reforms in the energy sector and gradual convergence towards the principles of the EU 
internal electricity and gas markets 

–  Establish a list of measures for gradual legal and regulatory convergence towards the principles 

of the EU internal electricity and gas markets, accompanied by time schedules;  

–  Work  towards  the  progressive  elimination  of  domestic  energy  price  distortions  on  the  basis  of 

market economy principles and improve bill collection rates; 

–  Develop appropriate mechanisms for improving financial viability of electricity and gas sectors; 

–  Continue  efforts  towards  the  establishment  of  an  energy  sector  regulator  in  line  with  the 

principles of the Electricity and Gas Directives 2003/54 and 2003/55; 

–  Further restructure energy companies and promote corporate governance.  

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Progress regarding energy networks 

–  Take steps to rehabilitate energy networks and facilitate investments in view of improving their 
reliability and reducing network losses in the overall framework of enhancing Azeri security of 
energy supplies; 

–  Cooperate  for  the  development  of  the  transit  capacities  of  Azerbaijan  as  regards  exports  of 

Central Asia and Caspian Basin energy resources to the EU and its neighbours’ markets; 

–  Improve the safety and security of energy infrastructure including the security of internal energy 
infrastructures  including  the  BTC  oil-export  pipeline  and  BTE  gas  pipeline  and  enhance 
information exchange with EU in this regard.  

Progress on energy efficiency and the use of renewable energy sources 

–  Implement the National Alternative Energy Programme 2004-2013 and take steps to develop an 

Action Plan for its implementation; 

–  Reinforce the institutions dealing with energy efficiency and renewable energy sources.  

Technical cooperation and exchange of expertise 

–  Explore the possibility for possible participation of Azerbaijan in the Intelligent Energy -Europe 

programme; 

–  Cooperate  under  EU  technical  assistance  programmes,  in  particular  twinning  projects,  for 
supporting  Azerbaijan’s  energy  sector  reform  and  in  its  progressive  integration  into  the  EU 
energy market. 

Co-operation on radioactive source safety and security 

–  Take measures to strengthen control of all types of radioactive sources including with the aim of 

avoiding illicit trafficking of them as well as any other radioactive materials. 

Regional energy cooperation 

–  With  a  view  to  regional  integration  and  progressive  integration  with  the  EU  energy  markets, 
encourage  the  development  of  diversified  infrastructure  connected  to  the  development  of 
Caspian  energy  resources  and  facilitate  transit,  including  the  development  of  necessary 
infrastructure for gas exports from the Shah Deniz field to the EU markets; 

–  Continue  cooperation  on  Caspian  and  Black  Sea  regional  energy  issues,  in  the  context  of  the 
follow-up to the EU-Black Sea-Caspian Basin Energy Ministerial Conference that took place in 
Baku in November 2004. 

4.6.3.  Environment 

Take  steps  to  ensure  that  conditions  for  good  environmental  governance  are  set  and  start 
implementing them 

–  Strengthen administrative structures and procedures to ensure strategic planning of environment 

issues and co-ordination between relevant actors; 

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–  Improve  procedures  regarding  access  to  environmental  information  and  public  participation, 

including implementation of the Aarhus Convention; 

–  Prepare regular reports on the state of the environment;  

–  Reinforce  structures  and  procedures  to  carry  out  environmental  impact  assessments  including 

adoption and implementation of relevant legislation; 

–  Establish communication strategies on the benefits of environmental policy; support civil society 

actors and local authorities;  

–  Elaboration and adoption of a new Action Plan on Environmental Protection (APEP). 

Take  action  for  prevention  of  deterioration  of  the  environment,  protection  of  human  health,  and 
achievement  of  rational  use  of  natural  resources  in  line  with  the  commitments  of  Johannesburg 
Summit 

–  Develop framework legislation and basic procedures and ensure planning for key environmental 
sectors, including in particular as specified in the national environmental action plan air quality, 
water  quality,  waste  management,  nature  protection  and  continue  the  process  of  convergence 
with European requirements; 

–  Take  steps  to  improve  waste  management  plans  and  practices,  in  particular  with  regard  to 

municipal waste, including through exchange of information and experience;  

–  Enhance training and expertise in the field of environment; 

–  Enhance administrative capacities, including for the issuing of integrated permits as well as for 

monitoring, enforcement and inspection;  

–  Take steps to apply Integrated Water Resource Management, enhance prevention of pollution of 
trans-boundary water resources including through enhanced monitoring and the elaboration of an 
Action Plan;  

–  Implement existing national plans and programmes and adopt the already drafted national plans 

and programmes. 

Enhance co-operation on environmental issues 

–  Implement provisions under the Kyoto Protocol and the UN Framework Convention on Climate 
Change  including  through  the  elaboration  of  a  National  Strategy  and  Action  Plan  in  which 
adaptation is also taken into account; 

–  Ensure  active  participation  in  the  Eastern  European,  Caucasus  and  Central  Asia  component  of 

the EU Water Initiative; 

–  Identify  possibilities  with  neighbouring  countries  for  enhanced  regional  co-operation,  in 

particular with regard to water issues;  

–  Possible participation in selected European Environment Agency activities.  

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4.6.4.  Communication Technologies, Information Society and media 

Further progress in electronic communications policy and regulation and the development and use 
of Information Society applications 

–  Implement a national 2003-2012 strategy on the development of the information communication 
sector  and  work  towards  adopting  a  comprehensive  regulatory  framework  including  licensing, 
resource utilisation and interconnection, numbering, cost-orientation of tariffs, Universal Service 
and protection of users’ rights, privacy protection and data security; 

–  Promote  the  use  and  exchange  of  views  on  new  technologies  and  electronic  means  of 
communications by businesses, government and citizens in areas such as e-Business (including 
standards for e-signatures), e.g. by providing access to banking services in regions through use of 
modern information technologies, e-Government, e-Health, e-Learning, e-Culture; 

–  Establish  Regulatory  Body  by  2008,  following  the  already  adopted  “Law  of  the  Republic  of 
Azerbaijan  on  Telecommunication”  and  the  “State  Programme  (E-Azerbaijan)  on  development 
of telecommunication and information technologies in Azerbaijan within 2005-2008”;  

–  Promote  awareness-raising  initiatives  for  the  participation  of  Azerbaijani  entities  in  the 

Information Society Technologies (IST) part of the EU Research Framework Programme; 

–  Work towards adopting audiovisual legislation in full compliance with European standards, with 
a  view  to  future  participation  in  the  international  instruments  of  the  Council  of  Europe  in  the 
field  of  media.  Promote  an  exchange  of  views  on  audiovisual  policy,  including  cooperation  in 
the fight against racism and xenophobia.  

Regional cooperation 

–  Develop distance education programmes in Southern Caucasus and Black Sea countries; 

–  Facilitate  the  interconnection  of  the  Caucasian  Research  and  Education  Networks  with  their 

European counterparts via GEANT in order to support scientific collaboration. 

4.6.5. 

Science and technology, research and development 

Develop Azerbaijan’s capacity in technological R&D to support the economy and society 

–  Develop  a  Research  and  Innovation  policy  directly  relevant  to  the  sustainable  and  equitable 
economic  development  policy  objectives  of  Azerbaijan and  its  region,  including  through  an 
appropriate  programme  of  reforms  in  the  scientific  system  of  Azerbaijan  and  in  the  relevant 
regulatory  framework.( amongst  different  elements  of  reform  ,  steps  will  be  taken  to  create  a 
transparent  and  unbiased  mechanism  of  competitive  funding  and  management  of scientific  and 
technological  research  through  inter  alia open  calls  for  proposals  and  an  independent  and  high 
professional peer review evaluation process ); 

–  Reinforce  human,  material  and  institutional  resources  in  order  to  improve  the  capacities  in 
technological R&D, including through an adequate and increased investment in research via the 
public sector as well as the private sector through the implementation of favourable framework 
conditions. 

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Prepare  and  encourage  Azerbaijan’s  integration  into  the  European  Research  Area  and  into  the 
Community R&D Framework Programmes on the basis of scientific excellence 

–  Implement an appropriate information strategy to facilitate and encourage adequate participation 
of  Azerbaijani  research  entities  in  the  Community  R&D  Framework  programmes  and  joint 
projects  and  through  an  appropriate  policy-driven  dialogue,  determine  the  particular  priorities 
and the specific needs of Azerbaijan; 

–  Support  Azerbaijan’s  integration  in  high-level  scientific  exchanges  by  reinforcing  Azerbaijani 
participation in international Marie Curie fellowships including support of the appropriate return 
mechanisms.  

4.7. 

People-to-people contacts 

4.7.1.  Education, training and youth 

Reform  and  modernise  the  education  and  training  systems  within  the  framework  of  Azerbaijan’s 
reform programme  

–  Ensure  continued  access  for  all  to  high  quality  education  in  line  with  the  Millennium 
Development  Goals  for  the  sector  by  inter  alia  providing  sufficient  funding,  by  elaborating  a 
legislative base for education, by integrating gender concerns, by elaborating a legislative base 
for education, by integrating gender concerns, by providing transparency and accountability for 
the  sector,  by  reforming  education  and  training  systems,  including  vocational  education  and 
training and by fostering lifelong learning, in particular through the implementation of a national 
education reform strategy 2003-2013;  

–  Improve  the  accreditation  system,  using  the  tools  offered  by  the  TEMPUS  programme,  and 

management in higher education institutions; 

–  Reform  higher  education  sector  in  line  with  the  principles  of  the  “Bologna  process”  and 

strengthen local capacity for policy development and implementation;  

–  Promote the reform of higher education through the TEMPUS programme;  

–  Enhance  the  quality  and  capacity  of  institutions  and  organisations  involved  in  developing  and 
implementing the quality assurance in the field of education and training, by using for example 
the tools offered by the TEMPUS programme; 

–  Strengthen  the  adaptation  of  higher  and  vocational  education  to  demands  of  the  labour  market 
and  the  economy  by  inter  alia  increasing  the  involvement  of  social  partners  and  stakeholders 
from civil society;  

–  Encourage student mobility by participation in the Erasmus Mundus programme, the TEMPUS 

Programme and the new scholarship scheme;  

–  Establish  chairs  for  European  studies  and  European  law  through  the  Action  Jean  Monnet  and 

support studies opportunities for young researchers;  

–  Continue and enhance a policy dialogue between EU and Azerbaijani authorities in the field of 

education, training and youth; 

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–  Enhance youth exchanges and cooperation, in particular on a regional level, in the field of non-

formal education for young people and promotion of intercultural dialogue.  

4.7.2.  Public health 

Continue health sector reform 

–  Continue  health  sector  reform  notably  to:  improve  access  and  affordability  for  the  entire 
population;  improve  the  organisation,  quality  and  efficiency  of  the  sector  and  its  institutions; 
increase  the  share  of  primary  health  care  services  and  of  prevention  and  health  promotion 
activities in the total health care budget; implement a sustainable health care financing strategy; 
improve  quality  of  and  access  to  information  on  the  health  status,  risks  and  determinants  in 
Azerbaijan; strengthen the National Centre for public health monitoring and establish the register 
of  specific  diseases  (thalassanemia,  diabetes,  TB,  cancer),  improve  the  registration  system  of 
birth and death, control the communicable diseases and promote health safety;  

–  Exchange  of  information  and  technical  expertise  with  a  view  to  facilitating  Azerbaijan’s 
participation  in  communicable  diseases  networks,  for  example  those  dealing  with  sexually 
transmitted diseases, in particular HIV/AIDS and Hepatitis B and C).  

4.7.3.  Culture 

Enhance cultural co-operation  

–  Investigate the possibilities for co-operation in the framework of EU programmes in the field of 

culture;  

–  Exchange views on the UNESCO Convention on the protection and promotion of the diversity of 

cultural expressions and promote the ratification and implementation of the text.  

5. 

MONITORING 

The Action Plan will be submitted for formal adoption to the Co-operation Council between the EU 
and Azerbaijan. The Action Plan will guide the work between the EU and Azerbaijan. Should the 
need  arise,  on  the  EU  side,  for  specific  measures  necessitating  legally  binding  decisions,  the 
Commission will recommend to the Council the adoption of the necessary negotiating directives.  

The joint bodies established under the  Partnership and Co-operation Agreement  will  advance and 
monitor the implementation of the Action Plan. The structures under the relevant agreements, where 
appropriate, should be reviewed, to ensure that all priorities under the ENP are duly reflected.  

The  Commission,  in  close  cooperation  with  the  Secretary-General/High  Representative,  as 
appropriate,  will  produce  reports  on  the  Action  Plan’s  implementation  at  regular  intervals.  It  will 
invite Azerbaijan to provide information for these reports. The Commission will also work closely 
with  other  organisations  such  as  the  Council  of  Europe,  the  OSCE,  relevant  UN  bodies,  and 
International Financial Institutions.  

A first review of the implementation of the Action Plan will be undertaken within two years of its 
adoption. 

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The Action Plan can be regularly amended and/or updated based upon agreement of both sides to 
reflect progress in addressing the priorities. 

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Glossary 

BOMCA 

EASA:  

EUPM: 

EUPOL: 

FATF: 

GATT: 

ICC: 

IFAC: 

IIA:  

ILO: 

Border Management Programme for Central Asia 

European Aviation Safety Agency 

European Union Police Mission 

European Union Police Mission  

Financial Action Task Force on Money Laundering 

General Agreement on Tariffs and Trade 

International Criminal Court 

International Federation of Accountants 

Institute of Internal Audit 

International Labour Organisation 

INTOSAI: 

International Organisation of Supreme Audit Institutions 

IST 

OSJD: 

OTIF:  

SCAD  

SPPRED  

Information Society Technologies 

Organisation for Railway Cooperation 

Intergovernmental  Organisation  for  International  Carriage 
by Rail 

Southern Caucasus Action Programme on Drugs 

State  Programme  on  Poverty  Reduction  and  Economic 
Development 

TRACECA: 

Transport Corridor Europe Caucasus Asia 

TRIPS: 

WMD: 

WTO  Agreement  on  Trade-Related  Aspects  of  Intellectual 
Property Rights 

Weapons of Mass Destruction 

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