Proposal for a Council Decision On the conclusion of a Euro-Mediterranean Association Agreement between the European Community and its Member States of the one part, and the Syrian Arab Republic, of the other part
Date: 2008-12-12
Institutions: European Commission
Subjects: EU relations, Syria, association agreement (EU), signature of an agreement

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.12.2008 
COM(2008) 853 final 

2008/0248 (AVC) 

Proposal for a 

COUNCIL DECISION 

On the signature on behalf of the European Community and provisional application of 
certain provisions of a Euro-Mediterranean Association Agreement between the 
European Community and its Member States and the Syrian Arab Republic  

Proposal for a 

COUNCIL DECISION 

On the conclusion of a Euro-Mediterranean Association Agreement between the 
European Community and its Member States of the one part, and the Syrian Arab 
Republic, of the other part 

(presented by the Commission) 

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1. 

2. 

EXPLANATORY MEMORANDUM 

The  attached  proposals  constitute  the  legal  instruments  for  the  signature  and 
conclusion  of  a  Euro-Mediterranean  Association  Agreement  between  the  European 
Community and its Member States, of the one part, and the Syrian Arab Republic, of 
the other part. 

(a) 

(b) 

Proposal for a Council Decision for the signature of the Agreement; 

Proposal for a Council Decision for the conclusion of the Agreement. 

Syria’s  relations  with  the  European  Community  are  presently  covered  by  the  Co-
operation Agreement signed on 18 July 1977 (entered into force on 1 January 1978), 
as modified by subsequent protocols. The Council adopted its negotiating directives 
on 18 December 1997 and the Commission formally launched the negotiations for an 
Association Agreement on 14-15 May 1998. Progress was very slow in the first four 
years.  The  pace  of  negotiations  changed  after  the  Syrian  government  reshuffle  in 
December 2001 and at the eighth session on 5-6 June 2002 the first chapters of the 
text could be agreed. After the submission of a comprehensive Syrian tariff schedule, 
intensive negotiations on tariff dismantlement could start in September 2003 leading 
to  conclusion  of  the  negotiations  at  the  twelfth  round  on  8-9  December  2003, 
followed by a series of technical discussions, leading to the initialling of the text by 
the  Commission  and  by  the  Government  of  Syria  in  Brussels  on  19  October  2004 
[and on 14 December 2008]. 

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The Agreement was submitted  to  the Council on 17 December 2004 [COM (2004) 
808 final]. The Council did not however reach an agreement on its signature due to 
political considerations.  

4. 

In  the  light  of  recent  positive  developments  in  Syria’s  regional  policy,  notably 
regarding relations with Lebanon and Israel, there is now a consensus within the EU 
that the draft Agreement should be updated with a view to its early conclusion.  

The  Commission  and  Syria  have  accordingly  agreed  on  the  technical  adaptations 
needed  to  update  the  2004  draft  Association  Agreement  and  a  revised  Agreement 
was  initialled  on  14  December  2008.  The  adaptations  made  are  of  purely  technical 
nature, they reflect developments since 2004 with an impact on the implementation 
of  the  Agreement,  notably  the  latest  EU  enlargement;  the  reform  of  the  Syrian 
custom tariff schedule; changes in the Harmonised System and in the EC Combined 
Nomenclature.  

The  proposed  revised  Association  Agreement  between  the  EU  and  Syria  will 
establish  a  new,  closer  relationship  within  the  context  of  the  Euro-Mediterranean 
partnership launched by the 1995 Barcelona Declaration. It will contribute to peace 
and  security  in  the  region  and  will  stimulate  trade  and  economic  relations  between 
Syria and the EU, and Syria and its Mediterranean partners. The proposed agreement 
would be the last missing piece in building the Euro-Mediterranean Free Trade Area 
in 2010 as set up in the Barcelona Declaration. The Barcelona Declaration underlines 
the  EU’s  priority  to  strengthen  its  security,  economic  and  social  relations  with  the 
partners  of  the  southern  Mediterranean  Basin.  Agreements  with  Tunisia,  Morocco, 
Algeria,  Egypt,  Israel,  the  Palestinian  Territories  (PLO),  Jordan  and  Lebanon  have 
already been signed; only Syria remains. 

5. 

The EU-Syria Association Agreement will have an unlimited duration and will open 
the  way  to  deepen  relations  in  a  wide  number  of  fields,  based  on  reciprocity  and 

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6. 

partnership. Respect for the principles of democracy and human rights will constitute 
an  essential  element  of  the  Agreement.  In  line  with  the  Council  Decision  of  
17  November  2003  on  the  fight  against  the  proliferation  of  weapons  of  mass 
destruction,  the  Agreement  also  contains  as  an  essential  element  a  commitment  to 
fulfilling existing obligations under disarmament and non-proliferation instruments.  

The  EU-Syria  Association  Agreement  is  similar  in  pattern  to  other  Euro-
Mediterranean  Association  Agreements,  but  contains  more  far-reaching  and 
substantial  provisions  in  a  number  of  areas:  non-proliferation,  counter-terrorism, 
comprehensive  tariff  dismantlement  on  agricultural  products,  technical  barriers  to 
trade, sanitary and phyto-sanitary measures, trade facilitation, right of establishment 
and services, government procurement, intellectual property rights and trade dispute 
settlement  mechanisms.  The  provisional  application  of  trade  and  trade  related 
provisions is also foreseen.  

7. 

The Agreement focuses on the following main elements: 

–  regular political dialogue, including co-operation on non-proliferation; 

–  economic, social, and cultural dialogue and co-operation in a wide range of fields; 

–  the  progressive  establishment  of  a  free-trade  area  between  the  European 
Community  and  Syria  over  a  maximum  period  of  twelve  years.  Both  Parties 
recognise  the importance of free trade, as guaranteed by the General Agreement 
on  Tariffs  and  Trade  of  1994  (GATT)  and  by  the  other  multilateral  agreements 
annexed to the Treaty establishing the WTO;  

–  for  industrial  products,  free  access  granted  to  Syrian  exports  to  the  Community 
under the 1978 Co-operation Agreement is reconfirmed. Reciprocally, Syria will 
liberalise its imports regime for Community products so that all tariffs are reduced 
to zero by the end of the twelve year transition period after entry into force of the 
Agreement; 

–  for processed agricultural products, specific reciprocal concessions are foreseen; 

–  agricultural products from Syria to the Community will be liberalised conforming 
to Barcelona Process objectives (gradual liberalisation with review clause). For a 
list  of  sensitive  products  tariff  quotas  shall  be  applied.  Tariffs  on  products  from 
the Community exported to Syria will be dismantled in a linear manner so as to 
reach zero by the end of the twelve year transition period after entry into force of 
the Agreement; 

–  trade in fish and fishery products imported from Syria into the Community, with 
the exception of a limited number of products, will be liberalised over a two-year 
period.  For  those  products  where  liberalisation  is  not  foreseen,  tariff  quotas  will 
be  provided  under  the  Agreement.  Tariffs  on  fish  and  fishery  products  exported 
from  the  Community  to  Syria  will  be  dismantled  in  a  linear  manner  over  a 
maximum period of 12 years after the entry into force of the Agreement; 

–  right of establishment and services granting European investors MFN or national 
treatment (whichever is better) for establishment in Syria and opening almost all 
sectors  for  investment,  with  the  exception  of  some  reserved  currently  for  state 
monopolies. The area of telecommunications will be opened at the latest six years 
after entry into force; 

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–  dispute  settlement  provisions  to  resolve  trade  disputes  in  line  with  the  WTO 

Dispute Settlement Mechanism; 

–  provisions on the movement of persons; 

–  on  payments  and  capital  movements,  competition,  government  procurement, 
intellectual, industrial and commercial property rights, and on standards, technical 
regulation and conformity assessment procedures; 

–  commitments and co-operation in the areas of migration (including re-admission), 
rule  of  law,  combating  drugs  and  organised  crime,  money-laundering,  and 
counter-terrorism;  

–  institutional provisions for the management of the Agreement, which will include 
the  establishment  of  an  Association  Council  to  meet  at  ministerial  level  to 
supervise  the  implementation  of  the  Agreement,  and  of  an  Association 
Committee; 

–  the  Association  Council  shall  take  all  appropriate  measures  to  facilitate  co-
operation and contacts between the European Parliament and the Syrian People’s 
Assembly. 

It  is  aimed  at  supporting  economic  and  political  reform  in  Syria,  preparing  Syria  for 
integration  into  the  world  economy  and  promoting  regional  integration.  Through  a  regular 
political  dialogue,  it  will  also  enable  the  EU  to  engage  into  discussions  with  Syria  on  all 
topics of mutual concern, in particular human rights and democratic principles, terrorism and 
non-proliferation. 

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Proposal for a 

COUNCIL DECISION 

On the signature on behalf of the European Community and provisional application of 
certain provisions of a Euro-Mediterranean Association Agreement between the 
European Community and its Member States and the Syrian Arab Republic  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in  particular  Article 
310 in conjunction with the first sentence of the first subparagraph of Article 300, paragraph 2 
thereof, 
Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The Council adopted the directives on 18 December 1997 for the Commission to open 
negotiations for a Euro-Mediterranean Association Agreement between the European 
Community and its Member States, of the one part, and the Syrian Arab Republic of 
the other part; 

These  negotiations  have  been  concluded  and  the  Agreement  has  been  initialled  on  
19 October 2004 [and on 14 December 2008]; 

The  European  Commission  and  the  Syrian  Arab  Republic  have  undertaken  to  apply 
provisionally  certain  provisions  of  the  Association  Agreement  pending  its  entry  into 
force; 

The measures necessary for the implementation of the provisional application should 
be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying 
down  the  procedures  for  the  exercise  of  implementing  powers  conferred  on  the 
Commission2; 

(5) 

The  Association  Agreement  should  be  signed  on  behalf  of  the  Community  and  the 
provisional application of its provisions should be adopted. 

HAS DECIDED AS FOLLOWS:  

Article 1 

Subject to its conclusion at a later date, the President of the Council is hereby authorised to 
designate the person(s) empowered to sign, on behalf of the European Community, the Euro-
Mediterranean  Association  Agreement  between  the  European  Community  and  its  Member 
States, of the one part, and the Syrian Arab Republic, of the other part. 

1 
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OJ C 
OJ L 184, 17.7 1999 p. 23. 

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Article 2 

The  following  provisions  of  the  Association  Agreement  shall  be  applied  on  a  provisional 
basis  pending  its  entry  into  force:  Article  2,  Articles  7  to  42,  Article  61,  Articles  63  to  89, 
Article 97, Articles 99 to 102, Article 107, Article 120, Articles 132 to 138, and Articles 140 
and 141. 

The  measures  necessary  for  the  implementation  of  the  provisional  application  of  the 
Agreement shall be adopted in accordance with the procedure referred to in Article 4. 

Article 3 

1. 

Article 4 

The  Commission  shall  be  assisted  by  a  Committee  on  horizontal  questions 
concerning  trade  in  processed  agricultural  products  not  listed  in  Annex  I  to  the 
Treaty,  established by Article 16 of Council Regulation  (EC)  No 3448/1993 of 6th 
December  1993  laying  down  the  trade  arrangements  applicable  to  certain  goods 
resulting  from  the  processing  of  agricultural  products3,  by  the  Management 
Committee  for  Sugar  established  by  Article  42  of  Council  Regulation  (EC)  No 
1260/2001  of  19  June  2001  on  the  common  organisation  of  the  market  in  sugar4, 
modified by Commission Regulation (EC) No 680/2002 of 19 April 20025 or, where 
appropriate, by the committees established by the corresponding provisions of other 
regulations  on  the  common  organisation  of  markets  or  by  the  Customs  Code 
Committee  established  by  Article  248a  of  Regulation  (EEC)  No  2913/92  of  12th 
October 1992 establishing the Community Customs Code6. Where reference is made 
to this paragraph, Article 4 and 7 of Decision 1999/468/EC shall apply. The period 
laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month. 

2. 

The Committee shall adopt its rules of procedure. 

Done at Brussels,  

For the Council 
The President 

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OJ L 318, 20.12.1993, p.18. 
OJ L 178, 30.6.2001, p. 1. 
OJ L 104, 20.4.2002, p. 26. 
OJ L 302, 19.10.1992, p. 1. 

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2008/0248 (AVC) 

Proposal for a 

COUNCIL DECISION 

On the conclusion of a Euro-Mediterranean Association Agreement between the 
European Community and its Member States of the one part, and the Syrian Arab 
Republic, of the other part 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in  particular  Article 
310 in conjunction with the second phrase of Article 300, paragraph 2, and the second sub-
paragraph of paragraph 3, 

Having regard to the proposal from the Commission, 
Having regard to the assent of the European Parliament7, 

Whereas: 

(1) 

The  Euro-Mediterranean  Association  Agreement  between  the  European  Community 
and its Member States, of the one part, and the Syrian Arab Republic of the other part; 
has been signed on behalf of the European Community, in […] on […], subject to the 
reserve  of  an  eventual  conclusion  at  a  later  date,  in  conformity  with  the  decision 
…./………./CE of the Council of …. 

(2) 

The Agreement should be approved,  

HAS DECIDED AS FOLLOWS:  

Article 1 

The  Euro-Mediterranean  Association  Agreement  between  the  European  Community  and  its 
Member States, of the one part, and the Syrian Arab Republic, of the other part, the annexes 
and protocols to the Agreement, as well as the joint declarations and the declarations of the 
European  Community  included  in  the  final  act,  are  approved  on  behalf  of  the  European 
Community. 

The text of the Agreement, the protocols and the final act form part of this Decision.  

Article 2 

The Position to be taken by the Community in the context of the Association Council and of 
the  Association  Committee,  is  to  be  defined  by  the  Council,  on  the  proposal  of  the 
Commission,  or,  if  the  case  arises,  by  the  Commission,  in  conformity  with  the  relevant 
components of the Treaties.  

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OJ C […], […], p 

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In conformity with article 124 and article 127 of the Agreement, the President of the Council 
will  chair  the  Association  Council.  A  representative  of  the  Commission  will  chair  the 
Association Committee, according to the agreed procedural rules.  

The  decision  to  publish  the  decisions  of  the  Association  Council  and  of  the  Association 
Committee  in  the  Official  Journal  of  the  European  Union  will  be  taken  in  each  case 
respectively by the Council and the Commission.  

The President of the Council is authorised to designate the person(s) empowered to proceed, 
on  behalf  of  the  European  Community,  to  deposit  the  act  of  notification  foreseen  in  article 
142 of the Agreement.  

Article 3 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

EURO-MEDITERRANEAN AGREEMENT 

ESTABLISHING AN ASSOCIATION 

BETWEEN THE EUROPEAN COMMUNITIES 

AND THEIR MEMBER STATES ON THE ONE PART, 

AND THE SYRIAN ARAB REPUBLIC ON THE OTHER PART 

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THE KINGDOM OF BELGIUM 

THE REPUBLIC OF BULGARIA 

CZECH REPUBLIC 

THE KINGDOM OF DENMARK 

THE FEDERAL REPUBLIC OF GERMANY 

REPUBLIC OF ESTONIA 

THE HELLENIC REPUBLIC 

THE KINGDOM OF SPAIN 

THE FRENCH REPUBLIC 

IRELAND 

THE ITALIAN REPUBLIC 

REPUBLIC OF CYPRUS 

REPUBLIC OF LATVIA 

REPUBLIC OF LITHUANIA 

THE GRAND DUCHY OF LUXEMBOURG 

HUNGARIAN REPUBLIC 

REPUBLIC OF MALTA 

THE KINGDOM OF THE NETHERLANDS 

THE AUSTRIAN REPUBLIC 

REPUBLIC OF POLAND 

THE PORTUGUESE REPUBLIC 

ROMANIA 

THE REPUBLIC OF SLOVENIA 

THE SLOVAK REPUBLIC 

THE REPUBLIC OF FINLAND 

THE KINGDOM OF SWEDEN 

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

contracting  Parties  to  the  Treaty  establishing  the EUROPEAN  COMMUNITY,  hereinafter 
referred to as the "Member States", and 

the  EUROPEAN  COMMUNITY,  hereinafter  referred  to  as  "the  Community",  on  the  one 
part, 

and the SYRIAN ARAB REPUBLIC, hereinafter referred to as "Syria", on the other part, 

CONSIDERING the importance of the existing traditional links between the Community and 
its Member States on the one hand, and Syria on the other, and the common values that they 
share, 

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CONSIDERING that the Community and its Member States on the one hand and Syria on the 
other  wish  to  strengthen  those  links  and  establish  lasting  relations  based  on  reciprocity, 
partnership and joint development, 

CONSIDERING the importance which the Parties attach to the purposes and principles of the 
Charter  of  the  United  Nations,  the  observance  of  human  rights,  democratic  principles  and 
political and economic freedoms, which form the very basis of the Association, 

CONSIDERING  the  political  and  economic  developments  that  have  taken  place  in  Europe 
and in Syria in the past years, and conscious of the need to associate their efforts to strengthen 
political stability and economic development through the encouragement of cooperation both 
within a comprehensive Euro- Mediterranean framework and at the sub- regional level; 

CONSCIOUS  of  Syria’s  determination  to  develop  the  interaction  of  its  economy  with  the 
world  economy  and  its  cooperation  in  this  context  with  the  Community  and  its  Member 
States; 

CONSCIOUS  of  the  importance  of  this  Agreement  based  on  co-operation  and  dialogue  in 
order to achieve permanent security and stability in the Euro-Mediterranean region; 

CONSIDERING  that  the  proliferation  of  weapons  of  mass-destruction  (WMD)  and  their 
means of delivery, both to state and non-state actors, represents one of the most serious threats 
to international stability and security; 

DESIROUS of co-operating to counter the threat of illicit use and trafficking of WMD-related 
goods and technologies, and recognizing that setting up an effective national system of export, 
transit and end-use controls will also facilitate the acquisition of goods and technologies for 
the development of Syria; 

CONSCIOUS that international crime and terrorism represent a threat to the fulfilment of the 
objectives of the agreement and stability of the region; 

DESIROUS  of  establishing  and  developing  regular  political  dialogue  on  bilateral  and 
international issues of mutual interest; 

TAKING INTO ACCOUNT the will of the Community to provide Syria with support in its 
endeavours to pursue economic reform and social development through effective cooperation 
mechanisms;  

BEARING IN MIND the difference in the level of economic and social development between 
the  Community  and  Syria,  and  desirous  of  working  together  to  overcome  these  differences 
and  achieve  the  objectives  of  this  Association  through  the  appropriate  provisions  of  this 
Agreement; 

DESIROUS  of  strengthening  cooperation,  supported  by  a  regular  dialogue,  in  economic, 
scientific, environmental, technological, audio-visual, social and cultural matters with a view 
to improving mutual knowledge and reaching a better mutual understanding; 

CONSIDERING the importance for the Community and for Syria of free trade, as guaranteed 
by the General Agreement on Tariffs and Trade of 1994 (GATT) and by the other multilateral 
agreements annexed to the Treaty establishing the World Trade Organization (WTO); 

CONVINCED that this Association Agreement will create an environment appropriate for the 
further  development  of  their  economic  relations,  in  particular  in  the  fields  of  trade, 
investment,  technological  modernisation,  co-operation,  including  appropriate  economic 
restructuring; 

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CONFIRMING  that  the  provisions  of  this  agreement  that  fall  within  the  scope  of  Part  III, 
Title  IV  of  the  Treaty  establishing  the  European  Community  bind  the  United  Kingdom  and 
Ireland as separate Contracting Parties, and not as part of the European Community, until the 
United Kingdom and Ireland (as the case may be) notifies Syria that it has become bound as 
part  of  the  European  Community  in  accordance  with  the  Protocol  on  the  position  of  the 
United  Kingdom  and  Ireland  annexed  to  the  Treaty  on  the  European  Union  and  the  Treaty 
establishing the European Community. The same applies to Denmark, in accordance with the 
Protocol annexed to those Treaties on the position of Denmark; 

have agreed as follows: 

Article 1 

1. 

2. 

An Association is hereby established between the Community and its Member States 
on the one part and Syria on the other part. 

The aims of this Agreement are:  

(a)  To  provide  an  appropriate  framework  for  the  political  dialogue  between  the 
Parties, allowing the development of close political relations in all fields they 
consider to be of interest to such dialogue; 

(b) 

(c) 

(d) 

to establish the conditions for the progressive liberalisation of trade in goods, 
services and capital; 

to  develop  exchanges  and  foster  balanced  economic  and  social  relations 
between the Parties, in particular through dialogue and cooperation intended to 
enhance the prosperity and economic and social development in Syria; 

to  encourage  cooperation  both  within  a  comprehensive  Euro-Mediterranean 
framework and at the sub-regional level through integration between Syria and 
its regional partners; 

(e) 

to promote cooperation in the economic, social, cultural and financial fields, as 
well as other areas which might be of mutual interest. 

Respect  for  the  democratic  principles  and  fundamental  human  rights  established  by  the 
Universal Declaration of Human Rights shall inspire the domestic and external policies of the 
Parties and shall constitute an essential element of this Agreement. 

Article 2 

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TITLE I 

POLITICAL DIALOGUE AND COOPERATION 

Article 3 

Regular political dialogue and co-operation shall be established between the Parties in order 
to foster permanent relations of cooperation between them and to contribute to the prosperity, 
the  stability  and  security  of  the  Mediterranean  region,  and  create  a  climate  of  intercultural 
understanding and tolerance. 

Article 4 

The  Parties  reiterate  their  shared  objective  to  pursue  a  mutually  and  effectively  verifiable 
Middle East zone free of weapons of mass destruction, nuclear, biological and chemical and 
their  delivery  systems.  They  agree  to  promote  jointly  the  signature,  ratification  and 
implementation by all Mediterranean partners of all non-proliferation instruments, including 
the  Non-Proliferation  Treaty  (NPT),  the  Comprehensive  Test  Ban  Treaty  (CTBT),  the 
Biological Weapons Convention (BWC), and the Chemical Weapons Convention (CWC). 

Article 5 

1. 

The  Parties  agree  to  cooperate  and  to  contribute  to  countering  the  proliferation  of 
weapons  of  mass-destruction,  nuclear,  biological  and  chemical  and  their  means  of 
delivery  through  full  compliance  with  their  existing  obligations  under  international 
disarmament  and  non-proliferation  treaties  and  agreements  and  their  other  existing 
relevant  international  obligations,  as  well  as  United  Nations  Security  Council 
resolutions  and  ensuring  their  effective  implementation.  The  Parties  agree  that  this 
provision constitutes an essential element of this Agreement. 

2. 

They also agree to cooperate and contribute to this end by: 

taking action towards the signature, ratification or accession, as appropriate, and full 
implementation of all other relevant international instruments; 

setting up effective national systems of export, transit and end-use controls of WMD-
related  goods  and  technologies,  including  dual  use,  and  containing  enforcement 
procedures with appropriate penalties. 

The  political  dialogue  as  set  out  in  Article  6  will  accompany  and  consolidate  the 
elements in articles 4 and 5. 

Article 6 

The  political  dialogue  shall  cover  subjects  of  common  interest,  and  in  particular 
peace,  respect  for  international  law  and  territorial  integrity,  regional  stability  and 
security, human rights, democracy and regional development, and shall aim to open 
the way to new forms of cooperation with a view to common goals, in these areas. 

3. 

1. 

2. 

The political dialogue and co-operation will in particular: 

(a) 

facilitate  the  process  of  rapprochement  between  the  Parties,  through  the 
development  of  a  better  mutual  understanding  and  the  promotion  of 
convergence  of  views  through  regular  consultations  on  international  issues  of 
mutual interest; 

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(b)  give each party the opportunity to gain a better understanding of the positions 

and interests of the other party, and give them due consideration; 

(c) 

strengthen  international  non-proliferation  and  enhance  mutual  security  and 
stability in the Euro-Mediterranean region; 

(d)  help  develop  joint  initiatives  on  the  basis  of  the  principles  which  inspire  this 

Agreement. 

3. 

The political dialogue shall take place at regular intervals and whenever necessary, in 
particular : 

(a) 

(b) 

(c) 

at ministerial level, mainly in the framework of the Association Council; 

at  senior  official  level  of  Syria  on  the  one  part,  and  of  the  Presidency  of  the 
Council,  assisted  by  the  Secretary-General/High  Representative,  and  the 
European Commission on the other; 

by taking full advantage of all diplomatic channels including regular briefings 
by  officials,  consultations  on  the  occasion  of  international  meetings  and 
contacts between diplomatic representatives in third countries; 

(d)  whenever  necessary,  by  any  other  means  which  would  make  a  useful 
contribution to consolidating, developing and stepping up this dialogue. 

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TITLE II 

FREE MOVEMENT OF GOODS 

BASIC PRINCIPLES 

Article 7 

The Community and Syria shall gradually establish a free trade area over a transitional period 
lasting a maximum of 12 years starting from the date of the entry into force of this Agreement 
in  accordance  with  the  provisions  of  this  Agreement  and  in  conformity  with  those  of  the 
General  Agreement  on  Tariffs  and  Trade  1994  and  its  subsequent  revisions,  hereinafter 
referred to as the GATT. 

CHAPTER I 

ELIMINATION OF CUSTOMS DUTIES 

Article 8 

A  customs  duty  includes  any  duty  or  charge  of  any  kind  imposed  in  connection  with  the 
importation or exportation of a good, including any form of surtax or surcharge in connection 
with such importation or exportation, but does not include any: 

(a) 

(b) 

(c) 

1. 

2. 

3. 

4. 

5. 

8 

internal taxes or other internal charges imposed consistently with Article 24 (1); 

antidumping or countervailing duties applied consistently with Articles 28 and 29; 

fees  or  other  charges  imposed  consistently  with  GATT  Article  VIII,  most  notably 
these  fees  and  other  charges  shall  be  limited  in  amount  to  the  approximate  cost  of 
services rendered and shall not represent an indirect protection for domestic products 
or  a  taxation  of  imports  or  exports  for  fiscal  purposes.  They  shall  be  based  on 
specific rates that correspond to the real value of the service rendered. 

Article 9 

Customs  duties  on  imports  between  the  Parties  shall  be  eliminated  in  accordance 
with the provisions of sections 1 and 2 below. 

Customs duties on exports between the Parties shall be eliminated as from the date of 
entry into force of this Agreement. 

For  each  product,  the  basic  customs  duty  to  which  the  tariff  elimination  provisions 
are to be applied shall be : 

a) 

the  European  Community  Common  Customs  Tariff  actually  applied  erga 
omnes on the day of the signature of this Agreement;8  

b) 

the Syrian tariff set out in Annex I. 

If a Party reduces its applied customs duty rate from that mentioned in paragraph 3 
and prior to the ending of the transitional period, the Tariff elimination provisions of 
that Party shall apply from the date of that reduction, to the reduced rates. 

In the event of the accession of Syria to the WTO, the basic customs duty to which 
the  tariff  elimination  provisions  are  to  be  applied  shall  be  the  WTO  bound  rate  or 

Council Regulation (EEC) No 2658/87 OJCE L 256, 07.09.1987, as yearly updated  

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other, if lower, effectively applied rate erga omnes as of the date of the accession. If, 
after the accession to the WTO, a tariff reduction is applied on a erga omnes basis, 
the reduced rate shall apply as the basic customs duty from the date of application of 
that reduction. 

No  new  customs  duties  shall  be  introduced  nor  shall  those  already  applied  be  increased  in 
trade between the Parties as from the date of signature of this Agreement. 

Article 10 

Section 1 

INDUSTRIAL PRODUCTS 

Article 11 

The provisions of this Section shall apply to products originating in the Community and Syria 
falling  within  Chapters  25  to  97  of  the  Combined  Nomenclature  and  of  the  Syria  customs 
tariff with the exception of the products listed in Annex II. 

Imports into the Community of products originating in Syria shall be allowed free of customs 
duties as defined in article 8. 

Article 12 

(1) 

Customs  duties  as  defined  in  Article  8  applicable  to  imports  into  Syria  of  products 
originating  in  the  Community  shall  be  submitted  to  a  linear  dismantling  to  zero 
according to the following scheme and schedule: 

Article 13 

1. 

2. 

3. 

4. 

5. 

6. 

All duties at 1% and 3% listed in Annex I shall be abolished at the date of the 
entry into force of this Agreement. 

Except  for  products  covered  by  paragraphs  7  and  8,  all  duties  at  5%  and  7% 
listed in Annex I shall be abolished in three years after the date of the entry into 
force of this Agreement. 

Except for products covered by paragraphs 7 and 8, all duties at 10% and 15% 
listed in Annex I shall be abolished in six years after the date of the entry into 
force of this Agreement. 

Except for products covered by paragraphs 7 and 8, all duties at 20% listed in 
Annex I shall be abolished in nine years after the date of the entry into force of 
this Agreement. 

Except for product 8703.23.91 and products covered by paragraphs 7 and 8, all 
duties  at  30%,  40%  and  50%  listed  in  Annex  I  shall  be  abolished  in  twelve 
years after the date of the entry into force of this Agreement. 

Except for product 8703.23.92, all duties above 50% listed in Annex I shall be 
brought  down  to  50%  at  the  entry  into  force  of  this  Agreement  and  shall  be 
abolished  in  twelve  years  after  the  date  of  the  entry  into  force  of  this 
Agreement. 

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7. 

8. 

9. 

For products covered by the Information Technology Agreement of the World 
Trade Organisation as listed in Protocol 8, all duties shall be abolished at the 
date of the entry into force of this Agreement. 

For products of the categories HS 28, 29, 30, 31, 35, 36, 37 and 38, all duties 
shall be abolished at the date of the entry into force of this Agreement. 

For product 8703.23.91 as specified in Annex I, the duty shall remain at 40% 
for three years after the date of the entry into force of this Agreement, and then 
be abolished in the nine remaining years of the transition period. 

10.  For product 8703.23.92 as specified in Annex I, the duty shall remain at 60% 
for four years after the date of the entry into force of this Agreement, and then 
be abolished in the eight remaining years of the transition period. 

In the event of serious difficulties for a given product, the schedule applicable under 
paragraph  (1)  above  may  be  reviewed  by  the  Association  Committee  by  common 
accord on the understanding that the schedule may not be extended in respect of the 
product  concerned  beyond  the  maximum  transitional  period  of  12  years.  If  the 
Association Committee has not taken a decision within thirty days of an application 
by  Syria  to  review  the  schedule  for  a  given  product,  Syria  may  suspend  the 
concerned schedule provisionally for a period that may not exceed one year.  

(2) 

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The  provisions  regarding  the  abolition  of  customs  duties  on  imports  shall  also  apply  to 
customs duties of a fiscal nature. 

Article 14 

1. 

Exceptional measures of limited duration that derogate from the provisions of Article 
13  may  be  taken  by  Syria  in  the  form  of  an  increase  or  reintroduction  of  customs 
duties during the transition period. 

Article 15 

a) 

These  measures  may  only  concern  infant  industries,  or  certain  sectors 
undergoing restructuring or facing serious difficulties, particularly where these 
difficulties produce major social problems. 

b)  Customs  duties  applicable  on  import  into  Syria  of  products  originating  in  the 
Community introduced by these measures may not exceed 25% ad valorem and 
shall  maintain  an  element  of  preference  for  products  originating  in  the 
Community. The total yearly average value of imports of the products that are 
subject to these measures may not exceed 20% of the total yearly average value 
of imports of industrial products originating in the Community during the last 
three years for which statistics are available. 

c) 

These measures shall be applied for a period not exceeding five years unless a 
longer duration is authorised by the Association Committee. They shall cease 
to  apply  at  the  latest  on  the  expiry  of  the  maximum  transitional  period  of 
twelve years. 

d)  No such measures may be introduced in respect of a product if more than three 
years  have  elapsed  since  the  elimination  of  all  duties  and  quantitative 
restrictions  or  charges  or  measures  having  equivalent  effect  concerning  that 
product. 

e) 

Syria  shall  inform  the  Association  Committee  of  any  exceptional  measures  it 
intends to take. Within thirty days after this notification, the Community may 
request  consultations  on  such  measures  and  the  sectors  to  which  they  apply 
before they are implemented. When taking such measures Syria shall provide 
the  Committee  with  a  timetable  for  the  elimination  of  the  customs  duties 
introduced under this Article. This timetable shall provide for a phasing out of 
these  duties  in  equal  annual  instalments  starting  at  the  latest  two  years  after 
their  introduction.  The  Association  Committee  may  decide  on  a  different 
timetable. 

2. 

By way of derogation from the fourth subparagraph of paragraph 1, the Association 
Committee may exceptionally, in order to take account of the difficulties involved in 
setting  up  a  new  industry,  authorise  Syria  to  maintain  the  measures  already  taken 
pursuant to paragraph 1 for a maximum period of three years beyond the twelve-year 
transitional period. 

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AGRICULTURAL, FISHERIES AND PROCESSED AGRICULTURAL PRODUCTS 

Section 2 

The provisions of this Section shall apply to products originating in the Community and Syria 
listed in chapters 1 to 24 of the Combined Nomenclature and of the Syria customs tariff and to 
the products listed in Annex II. 

Article 16 

The  Community  and  Syria  shall  progressively  establish  a  greater  liberalisation  of  their 
reciprocal trade in agriculture, fisheries and processed agricultural products. 

Article 17 

Article 18 

1. 

2. 

3. 

4. 

Agricultural products originating in Syria shall benefit on import into the Community 
from the provisions set out in Protocol No. 1. 

Agricultural products originating in the Community shall benefit on import into Syria 
from the provisions set out in Protocol No. 2. 

Fisheries  products  originating  in  Syria  shall  benefit  on  import  into  the  Community 
from the provisions set out in Protocol No. 3. 

Fisheries  products  originating  in  the  Community  shall  benefit  on  import  into  Syria 
from the provisions set out in Protocol No. 4. 

Trade  in  Processed  Agricultural  Products  falling  under  this  section  shall  be  subject  to  the 
arrangements set out in Protocol No. 5. 

Article 19 

1. 

2. 

1. 

Article 20 

During the third year of implementation of the Agreement, the Community and Syria 
shall examine the situation in order to determine the measures to be applied by the 
Community and Syria from the beginning of the fourth year after the entry into force 
of the agreement, in accordance with the objective set out in Article 17. 

Without prejudice to the provisions of the preceding paragraph and taking account of 
the  volume  of  trade  in  agricultural  products,  fisheries  products  and  processed 
agricultural  products  between  the  Parties  and  the  particular  sensitivity  of  such 
products,  the  Community  and  Syria  shall  examine  in  the  Association  Council, 
product by product and on a reciprocal and orderly basis, the possibilities of granting 
each other further concessions. 

Article 21 

The Parties shall co-operate in the area of sanitary and phytosanitary measures with 
the objectives of facilitating trade. The Parties will be bound by the principles set out 
in the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, 
when applying SPS-measures.  

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2. 

1. 

2. 

3. 

4. 

On  request  the  Parties  shall  identify  and  address  problems  that  may  arise  from  the 
application  of  specific  SPS-measures  with  a  view  to  reaching  mutually  acceptable 
solutions. 

Article 22 

In the event of specific rules being introduced as a result of the implementation of its 
agricultural  policy  or  of  any  alteration  of  the  current  rules  or  in  the  event  of  any 
alteration  or  extension  of  the  provisions  relating  to  the  implementation  of  its 
agricultural policy, the Party concerned may amend the arrangements resulting from 
the Agreement in respect of the products concerned. 

In  such  cases  the  Party  concerned  shall  inform  the  Association  Committee.  At  the 
request of the other Party, the Association Committee shall meet to take due account 
of the interests of the other Party. 

If the Community or Syria, in applying paragraph 1, modifies the arrangements made 
by this Agreement for agricultural products, they shall accord imports originating in 
the other Party an advantage comparable to that provided for in this Agreement. 

The  application  of  this  Article  should  be  the  subject  of  consultations  in  the 
Association Council. 

CHAPTER 2 

COMMON PROVISIONS 

Article 23 

All  import  or  export  prohibitions  or  restrictions  in  trade  between  the  Parties,  other  than 
customs duties and taxes, whether made effective through quotas, import or export licenses or 
other measures, shall be eliminated upon the entry into force of this Agreement. No new such 
measures shall be introduced. This provision is without prejudice to the application of Articles 
28 and 29. 

Article 24 

1. 

2. 

3. 

Imported  products  of  the  territory  of  the  other  Party  shall  not  be  subject,  either 
directly or indirectly, to internal taxes or other internal charges of any kind in excess 
of  those  applied,  directly  or  indirectly,  to  like  domestic  products.  Moreover,  the 
Parties  shall  not  otherwise  apply  internal  taxes  or  other  internal  charges  so  as  to 
afford protection to domestic production. 

Imported products of the territory of the other Party shall be accorded treatment no 
less  favourable  than  that  accorded  to  like  domestic  products  in  respect  of  all  laws, 
regulations and requirements affecting their internal sale, offering for sale, purchase, 
transportation, distribution or use. The provisions of this paragraph shall not prevent 
the  application  of  differential  internal  transportation  charges  which  are  based 
exclusively  on  the  economic  operation  of  the  means  of  transport  and  not  on  the 
origin of the product. 

Neither Party shall establish or maintain any internal quantitative regulation relating 
to  the  mixture,  processing  or  use  of  products  in  specified  amounts  or  proportions 
which requires, directly or indirectly, that any specified amount or proportion of any 
product  which  is  the  subject  of  the  regulation  must  be  supplied  from  domestic 

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4. 

1. 

2. 

3. 

sources.  Moreover,  neither  Party  shall  otherwise  apply  internal  quantitative 
regulations so as to afford protection to domestic production. 

The  provisions  of  this  Article  shall  not  apply  to  laws,  regulations,  procedures  or 
practices governing Government procurement as covered in articles 67 to 71. 

Article 25 

Anti-fraud cooperation 

The Parties agree that administrative co-operation is essential for the implementation 
and  the  control  of  the  preferential  treatment  granted  under  this  Title  and  underline 
their commitment to combat irregularities and fraud in customs and related matters. 

Where a Party has made a finding, on the basis of objective information, of a failure 
to  provide  administrative  co-operation  and/or  of  irregularities  or  fraud  under  this 
Title,  the  Party  concerned  may  temporarily  suspend  the  relevant  preferential 
treatment of the product(s) concerned in accordance with this Article. 

For the purpose of this Article a failure to provide administrative co-operation shall 
mean, inter alia : 

a) 

b) 

c) 

a  repeated  failure  to  respect  the  obligations  to  verify  the  originating  status  of 
the product(s) concerned; 

a  repeated  refusal  or  undue  delay  in  carrying  out  and/or  communicating  the 
results of subsequent verification of the proof of origin; 

a  repeated  refusal  or  undue  delay  in  obtaining  authorisation  to  conduct 
administrative co-operation missions to verify the authenticity of documents or 
accuracy of information relevant to the granting of the preferential treatment in 
question. 

For  the  purpose  of  this  Article  a  finding  of  irregularities  or  fraud  may  be  made,  inter  alia, 
where  there  is  a  rapid  increase,  without  satisfactory  explanation,  in  imports  of  goods 
exceeding the usual level of production and export capacity of the other Party that is linked to 
objective information concerning irregularities or fraud. 

4. 

The  application  of  a  temporary  suspension  shall  be  subject  to  the  following 
conditions: 

a) 

The Party which has made a finding, on the basis of objective information, of a 
failure  to  provide  administrative  co-operation  and/or  of  irregularities  or  fraud 
in customs and related matters, the Party concerned shall without undue delay 
notify  the  Association  Committee  of  its  finding  together  with  the  objective 
information and enter into consultations within the Association Committee, on 
the  basis  of  all  relevant  information  and  objective  findings,  with  a  view  to 
reaching a solution acceptable to both Parties. 

b)  Where  the  Parties  have  entered  into  consultations  within  the  Association 
Committee as above and have failed to agree on an acceptable solution within 
3  months  following  the  notification,  the  Party  concerned  may  temporarily 
suspend  the  relevant  preferential  treatment  of  the  product(s)  concerned.  A 
temporary  suspension  shall  be  notified  to  the  Association  Committee  without 
undue delay. 

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c) 

Temporary suspensions under this article shall be limited to that necessary to 
protect the financial interests of the Party concerned. They shall not exceed a 
period of six months, which may be renewed. Temporary suspensions shall be 
notified immediately after their adoption to the Association Committee. They 
shall be subject to periodic consultations within the Association Committee in 
particular  with  a  view  to  their  termination  as  soon  as  the  conditions  for  their 
application are no longer given. 

5. 

At the same time as the notification to the Association Committee under paragraph  
4 (a) of this Article, the Party concerned should publish a notice to importers in its 
Official  Journal.  The  notice  to  importers  should  indicate  for  the  product  concerned 
that there is a finding, on the basis of objective information, of a failure to provide 
administrative co-operation and/or of irregularities or fraud. 

Article 25a  

Management of administrative errors 

In  case  of  error  by  the  competent  authorities  in  the  proper  management  of  the  preferential 
system at export, and in particular in the application of the provisions of the protocol to the 
present  agreement  concerning  the  definition  of  originating  products  and  methods  of 
administrative cooperation, where this error leads to consequences in terms of import duties, 
the  contracting  party  facing  such  consequences  may  request  the  Association  Council  to 
examine  the  possibilities  of  adopting  all  appropriate  measures  with  a  view  to  resolving  the 
situation. 

Application  of  the  provisions  of  this  Agreement  shall  be  without  prejudice  to  Council 
Regulation (EEC) N° 1911/91 of 26 June 1991 and Council Regulation (EC) N° 704/2002 of 
25 March 2002 on the application of the provisions of Community law to the Canary Islands. 

Article 26 

1. 

2. 

1. 

Article 27 

The  Agreement  shall  not  preclude  the  maintenance  or  establishment  of  customs 
unions, free trade areas or arrangements for frontier trade, except insofar as they alter 
the trade arrangements provided for in the Agreement. 

Consultation  between  the  Community  and  Syria  shall  take  place  within  the 
Association Council concerning agreements establishing customs unions or free trade 
areas and, where appropriate, on other major issues related to their respective trade 
policy with third countries. In particular, in the event of a third country acceding to 
the  Union,  such  consultation  shall  take  place  so  as  to  ensure  that  account  may  be 
taken of the mutual interests of the Community and Syria. 

Article 28 

If one of the Parties finds that dumping is taking place in trade with the other Party 
within the meaning of Article VI of the General Agreement on Tariffs and Trade, it 
may  take  appropriate  measures  against  this  practice  in  accordance  with  the  WTO 
Agreement on the implementation of Article VI of the General Agreement on Tariffs 
and Trade and related internal legislation. 

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2. 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

5. 

This Article will not be subject to the provisions of Title V (Dispute Settlement) of 
this Agreement. 

Article 29 

The WTO Agreement on Subsidies and Countervailing Measures shall be applicable 
between the Parties. 

If either Party finds that subsidy is taking place in trade with the other party within 
the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate 
measures against this practice in accordance with the WTO Agreement on Subsidies 
and Countervailing Measures and related internal legislation. 

This Article will not be subject to the provisions of Title V (Dispute Settlement) of 
this Agreement. 

Article 30 

The  provisions  of  the  Article  XIX  GATT  1994  and  the  WTO  Agreement  on 
Safeguards are applicable between the Parties. 

Before  applying  safeguard  measures  pursuant  to  the  provisions  of  the  Article  XIX 
GATT  1994  and  the  WTO  Agreement  on  Safeguards,  the  Party  intending  to  apply 
such measures shall supply the Association Committee with all relevant information 
required for a thorough examination of the situation with a view to seeking a solution 
acceptable to the Parties. 

In  order  to  find  such  a  solution,  the  Parties  shall  immediately  from  the  date  of 
receiving  the  request  from  the  requesting  party  hold  consultations  within  the 
Association Committee. If, as a result of the consultations, the Parties do not reach an 
agreement  within  thirty  days  of  the  initiation  of  the  consultations  on  a  solution  to 
avoid  the  application  of  the  safeguard  measures,  the  Party  intending  to  apply 
safeguard measures may apply the provisions of the Article XIX GATT 1994 and the 
WTO Agreement on Safeguards. 

In  the  selection  of  safeguard  measures  pursuant  this  article,  the  Parties  shall  give 
priority to those, which cause least disturbance to the achievement of the objectives 
of this Agreement. Such measures shall not exceed what is necessary to remedy the 
serious  injury,  and  shall  preserve  the  level  of  preference  granted  under  this 
Agreement. 

Safeguard measures shall be notified immediately to the Association Committee and 
shall be the subject of periodic consultations within the Committee, particularly with 
a view to their abolition as soon as circumstances permit. 

This Article will not be subject to the provisions of Title V (Dispute Settlement) of 
this Agreement. 

1. 

Where compliance with the provisions of this title leads to: 

Article 31 

re-export  towards  a  third  country  of  a  product  against  which  the  exporting  party 
maintains  quantitative  export  restrictions,  export  duties,  or  measures  having 
equivalent effect, or 

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a  serious  shortage,  or  threat  thereof,  of  foodstuffs  or  of  a  product  essential  to  the 
exporting Party; 

and where the situations above referred to give rise, or are likely to give rise to major 
difficulties for the exporting Party, that Party may take appropriate measures under 
the conditions and in accordance with the procedures laid down in paragraph 2. 

In the selection of measures, priority must be given to those which least disturb the 
functioning  of  the  arrangements  in  this  Agreement.  The  measures  shall  be  non 
discriminatory nor a disguised restriction on trade, and shall be eliminated when the 
conditions no longer justify their maintenance. In addition, the measures which may 
be adopted shall not operate to increase the exports of or the protection afforded to 
domestic industry processing the goods concerned by the measures. 

Before taking the measures provided for in paragraph 1 and 2 of this Article or, as 
soon as possible in cases to which paragraph 4 of this Article applies, the Community 
or  Syria,  as  the  case  may  be,  shall  supply  the  Association  Committee  with  the 
relevant information, with a view to seeking a solution acceptable to the parties. The 
difficulties  arising from  the situations referred  to in  paragraph 1  shall be submitted 
for  examination  to  the  Association  Committee.  The  Committee  may  take  any 
decision needed to put an end to the difficulties. If it has not taken such a decision 
within  thirty  days  of  the  matter  being  referred  to  it,  the  exporting  Party  may  apply 
appropriate measures on the exportation of the product concerned. 

Where exceptional and critical circumstances requiring immediate action make prior 
information or examination, as the case may be impossible, the Community or Syria, 
whichever is concerned, may apply forthwith the precautionary measures necessary 
to deal with the situation and shall inform the other Party immediately thereof. 

Any  measures  applied  pursuant  to  this  Article  shall  be  immediately  notified  to  the 
Association  Committee  and  shall  be  subject  of  period  of  consultations  within  that 
body, particularly with a view to establish a timetable for their elimination as soon as 
circumstances permit. 

2. 

3. 

4. 

5. 

Article 32 

Nothing  in  this  Agreement  shall  preclude  prohibitions  or  restrictions  on  imports,  exports  or 
goods in transit justified on grounds of public morality, public policy or public security, of the 
protection of health and life of humans, animals or plants; the protection of national treasures 
possessing  artistic,  historic  or  archaeological  value;  the  conservation  of  exhaustible  natural 
resources;  the  protection  of  intellectual,  industrial  and  commercial  property  or  regulations 
concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a 
means of arbitrary discrimination or a disguised restriction on trade between the Parties. 

The concept of "originating products" for the application of the provisions of the present Title 
and the methods of administrative co-operation relating to them are set out in Protocol 6. 

Article 33 

The Combined Nomenclature shall be used for the classification of goods for imports into the 
Community.  The  Syrian  customs  tariff  shall  be  applied  to  the  classification  of  goods  for 
imports into Syria. 

Article 34 

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Syria shall aim at entering into negotiations with the countries having a customs union with 
the  EU  in  view  of  establishing  with  these  countries  the  same  trade  regime  as  in  this 
Association Agreement for all areas covered by the customs union. 

Article 35 

CHAPTER 3 

CUSTOMS AND RELATED MATTERS 

Article 36 

Objectives 

Parties  recognise  that  the  full  implementation  of  the  trade  provisions  and  the  consequent 
mutual benefits of enhanced trade flows resulting from tariff liberalisation should be flanked 
by  efficient  customs  services.  To  this  end,  Parties  agree  that  customs  legislation  and 
procedures shall be based upon simplification, harmonisation and computerisation, as well as 
upon  the  principles  of  non-discrimination,  transparency  and  the  need  to  avoid  unnecessary 
procedural  obstacles  to  trade.  By  these  means  parties  commit  themselves  to  facilitating 
legitimate trade, and effective controls to combat fraud and illicit trade. 

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Article 37 

Customs and administrative cooperation 

1. 

In  order  to  ensure  compliance  with  the  provisions  of  this  Title,  and  effectively 
respond  to  the  objectives  laid  down  in  Article  1,  the  Parties  shall  base  their 
cooperation upon the following principles and undertake to : 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

exchange information concerning customs legislation and procedures; 

ensure  the  correct  application  of  customs  rules  and  procedures  agreed  by  the 
Parties at a bilateral or multilateral level; 

collaborate  on legislative and  operational initiatives relating to import, export 
and customs procedures, as well as towards ensuring an effective service to the 
business community; 

cooperate on the computerisation of customs procedures and collaborate, where 
appropriate towards the establishment of common standards; 

provide  and  ensure  the  freedom  of  transhipment  operations  and  transit 
movements through their respective territories, in accordance with Article V of 
the GATT (1994) and implement agreed relevant international and/or regional 
standards and instruments applicable to transit; 

ensure that all administrative fees and charges levied in respect of importation 
and exportation, are published in advance and are commensurate with services 
given, in accordance with Article VIII of GATT (1994); 

establish as far as possible, common positions in international organisations in 
the field of customs such as the WTO, WCO, UN and UNCTAD; and 

cooperate where appropriate on technical assistance, including the organisation 
of seminars and placements. 

2. 

Notwithstanding  paragraph  1,  the  administrations  of  both  Parties  shall  provide 
mutual  administrative  assistance  in  customs  matters  in  accordance  with  the 
provisions of Protocol 7. 

Article 38 

Customs and legislative procedures 

1. 

The Parties agree that their respective trade and customs provisions and procedures 
shall be based upon: 

a) 

b) 

c) 

d) 

the  protection  of 
trade 
compliance of legislative requirements; 

legitimate 

through  effective  enforcement  and 

legislation that avoids unnecessary burdens on economic operators, safeguards 
against fraud, and provides further facilitation for high levels of compliance; 

each  Party  having  a  uniform  Customs  Code,  applicable  throughout  its 
respective territory; 

the  application  of  modern  customs  techniques,  including  risk  assessment, 
simplified procedures for entry and release of goods, post release controls, and 
company audit methods; 

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e) 

f) 

g) 

h) 

i) 

j) 

procedures  that  are  transparent,  efficient  and  simplified,  in  order  to  reduce 
costs  and  increase  predictability  for  economic  operators,  including  small  and 
medium sized companies; 

the  development  of  Information  Technology-based  systems,  drawing  upon 
international standards, for both export and import operations, to replace paper-
based  procedures  and  to  enable  the  electronic  exchange  of  all  official  data 
between traders and customs administrations, as well as between customs and 
other agencies, in order to facilitate the provision of rapid release procedures. 
Such systems may also provide for the payment of duties, taxes and other fees 
by electronic transfer; 

rules  and  procedures  that  provide  for  advance  binding  rulings  on  customs 
matters,  notably  on  tariff  classification  and  rules  of  origin.  A  ruling  may  be 
modified  or  revoked  at  any  time  but  only  after  notification  to  the  affected 
operator and without retroactive effect unless the ruling has been made on the 
basis of incorrect or incomplete information being provided; 

simplified  procedures  for  authorised  traders  according  to  objective  and  non-
discriminatory criteria, and which can be met by compliant small and medium 
sized enterprises as well as larger operators; 

import  provisions  that  do  not  include  any  requirements  for  pre-shipment 
inspections  as  defined  by  the  WTO  Agreement  on  Pre-shipment  Inspection; 
and 

rules  that  ensure  that  any  penalties  imposed  for  minor  breaches  of  customs 
regulations  or  procedural 
requirements  be  proportionate  and  non-
discriminatory  and,  in  their  application,  do  not  result  in  unwarranted  delays, 
pursuant to Article VIII of the GATT (1994). 

2. 

In  order  to  improve  working  methods,  avoid  unnecessary  procedural  obstacles  to 
trade, as well as to ensure non-discrimination, transparency, efficiency, integrity and 
accountability of operations, the Parties shall : 

a) 

b) 

c) 

d) 

simplify requirements and formalities in respect of the release and clearance of 
goods;  this  shall  include  collaboration  on  the  development  of  procedures 
enabling  the  submission  of  import  or  export  data  to  a  single  agency;  and  co-
ordination between customs and other control agencies so as to enable official 
controls upon import or export to be carried out, as far as possible, by a single 
agency. 

take  further  steps  towards  the  reduction,  simplification  and  standardisation  of 
data and documentation required by customs and other agencies, including the 
use  of  a  Single  Administrative  Document  (SAD)  and  data  message,  based  on 
international standards and relying as far as possible on commercially available 
information. 

apply the international rules and standards in the field of customs, including the 
substantive elements of the revised Kyoto Convention on the simplification and 
harmonisation of customs procedures. 

provide effective, prompt and non-discriminatory procedures enabling the right 
of appeal, against customs and other agency administrative actions, rulings and 
decisions affecting import or export of goods, in conformity with Article X of 
the GATT (1994). 

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e) 

ensure  that  the  highest  standards  of  integrity  be  maintained,  through 
application  of  measures  reflecting  the  principles  of  the  relevant  international 
conventions and instruments in this field. 

Article 39 

Relations with the Business Community 

The Parties agree : 

1) 

2) 

3) 

4) 

1. 

2. 

on the need for timely consultation with trade representatives on legislative proposals 
and general procedures related to customs and trade issues. To that end, appropriate 
consultation mechanisms between administrations and the business community, shall 
be established by each Party; 

to publish, as far as possible through electronic means, and publicise new legislation 
and general procedures related to customs and trade issues prior to the introduction 
of any such legislation and procedures, as well as changes to and interpretations of 
such  legislation  and  procedures.  They  shall  also  make  publicly  available  relevant 
notices  of  an  administrative  nature,  including  agency  requirements  and  entry 
procedures, hours of operation and operating procedures for customs offices at ports 
and border crossing points, and points of contact for information enquiries; 

to foster co-operation between operators and relevant administrations via the use of 
non-arbitrary and publicly accessible Memoranda of Understanding, based on those 
promulgated by the WCO; 

to  ensure  that  their  respective  customs  and  related  requirements  and  procedures 
continue  to  meet  the  needs  of  the  trading  community,  follow  best  practices,  and 
where  changes  in  circumstances  allow  the  objectives  of  those  requirements  or 
procedures to be achieved in a less burdensome or trade restrictive manner, to adjust 
those procedures accordingly. 

Article 40 

Customs valuation 

The WTO Customs Valuation Agreement, without reserves and options, shall govern 
customs valuation rules applied to reciprocal trade between the Parties. 

The  Parties  shall  cooperate  with  a  view  to  reaching  a  common  approach  to  issues 
relating  to  customs  valuation,  in  particular  the  elaboration  of  a  "code  of  good 
practice"  in  relation  to  working  methods  and  operational  aspects,  the  use  of 
indicative or reference indices, appropriate documentation to certify the accuracy of 
the customs value and the use of securities. 

Article 41 

Review 

Provisions  laid  down  in  articles  38  to  40  will  be  subject  to  yearly  stocktaking  by  the 
Association Committee. 

Article 42 

Special committee on customs 

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1. 

The Parties hereby establish a Special Committee on Customs Cooperation and Rules 
of Origin, composed of representatives of the Parties. The Committee shall meet on a 
date and with an agenda agreed in advance by the Parties. The office of chairperson 
of  the  Committee  shall  be  held  alternately  by  each  of  the  Parties.  The  Committee 
shall report to the Association Committee. 

2. 

The functions of the Committee shall include : 

a)  monitoring  the  implementation  and  administration  of  this  section  and  of  the 

Protocol on rules of origin; 

b) 

c) 

d) 

providing  a  forum  to  consult  and  discuss  on  all  issues  concerning  customs, 
including  in  particular  customs  procedures,  customs  valuation,  tariff  regimes, 
customs  nomenclature,  customs  cooperation  and  mutual  administrative 
assistance in customs matters; 

providing  a  forum  to  consult  and  discuss  on  issues  relating  to  rules  of  origin 
and administrative cooperation; 

enhancing  cooperation  on  the  development,  application  and  enforcement  of 
customs procedures, mutual administrative assistance in customs matters, rules 
of origin and administrative cooperation. 

3. 

The Parties may agree to hold ad hoc meetings for customs cooperation or for rules 
of origin and mutual administrative assistance.  

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TITLE III 

RIGHT OF ESTABLISHMENT AND SERVICES 

CHAPTER 1 

RIGHT OF ESTABLISHMENT 

Article 43 

1. 

a) 

The  Community  and  its  Member  States  shall  grant  for  the  establishment  of 
Syrian  companies  treatment  no  less  favourable  than  that  accorded  to  like 
companies of any third country; 

b)  without prejudice to the reservations listed in Annex III, the Community and its 
Member States shall grant to subsidiaries of Syrian companies established in a 
Member  State  treatment  no  less  favourable  than  that  accorded  to  any  like 
Community company, in respect of their operations; 

c) 

the  Community  and  its  Member  States  shall  grant  to  branches  of  Syrian 
companies,  established  in  a  Member  State,  treatment  no  less  favourable  than 
that accorded to like branches of companies of any third country, in respect of 
their operations. 

(a)  without prejudice to the reservations listed in Annex IV, Syria shall grant for 
the  establishment  of  Community  companies  in  its  territory  treatment  no  less 
favourable than that accorded to like Syrian companies or to companies of any 
third country, whichever is the better; 

b) 

c) 

Syria  shall  grant  to  subsidiaries  of  Community  companies  established  in  its 
territory,  treatment  no  less  favourable  than  that  accorded  to  like  Syrian 
companies, in respect of their operations; 

Syria  shall  grant  to  branches  of  Community  companies  established  in  its 
territory,  treatment  no  less  favourable  than  that  accorded  to  like  branches  of 
companies of any third country, in respect of their operations. 

The  provisions  of  paragraphs 1(b)  and  2(b)  cannot  be  used  so  as  to  circumvent  a 
Party's legislation and regulations applicable to access to specific sectors or activities 
by  subsidiaries  or  branches  of  companies  of  the  other  Party  established  in  the 
territory of such first Party. 

The treatment referred to in paragraphs 1(b), 1(c) and 2(b) shall benefit companies, 
subsidiaries,  and  branches  established  in  the  Community  and  Syria  respectively  at 
the  date  of  entry  into  force  of  this  Agreement  and  companies,  subsidiaries  and 
branches established after that date once they are established. 

Article 44 

The  provisions  of  Article 43  shall  not  apply  to  air  transport,  inland  waterways 
transport and maritime transport. 

However, in respect of activities undertaken by shipping agencies for the provision 
of  international  maritime  transport  services,  including  multi-modal  activities 
involving a sea leg, each Party shall permit to the companies of the other Party their 

2. 

3. 

1. 

2. 

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commercial  presence  in  its  territory  in  the  form  of  subsidiaries  or  branches,  under 
conditions of establishment and operation no less favourable than those accorded to 
its own companies or to subsidiaries or branches of companies of any third country 
whichever are the better. Such activities include, but are not limited to: 

a)  marketing  and  sales  of  maritime  transport  and  related  services  through  direct 
contact with customers, from quotation to invoicing, whether these services are 
operated  or  offered  by  the  service  supplier  itself  or  by  service  suppliers  with 
which the service seller has established standing business arrangements; 

b) 

c) 

d) 

e) 

purchase and use, on their own account or on behalf of their customer (and the 
resale  to  their  customers)  of  any  transport  and  related  services,  including 
inward transport services by any mode, particularly inland waterways, road and 
rail, necessary for the supply of an integrated service; 

preparation  of  documentation  concerning  transport  documents,  customs 
documents, or other documents related to the origin and character of the goods 
transported; 

provision  of  business  information  of  any  means,  including  computerised 
information  systems  and  electronic  data 
to  any 
non-discriminatory restrictions concerning telecommunications); 

interchange  (subject 

setting  up  of  any  business  arrangement,  including  participation  in  the 
company's stock and the appointment of personnel recruited locally (or, in the 
case of foreign personnel, subject to the relevant provisions of this Agreement), 
with any locally established shipping agency; 

f) 

acting on behalf of the companies, organising the call of the ship or taking over 
cargoes when required. 

For the purpose of this Agreement: 

Article 45 

a) 

a  "Community  company"  or  "Syrian  company"  respectively  shall  mean  a 
company  set  up  in  accordance  with  the  laws  of  a  Member  State  or  of  Syria 
respectively  and  having  its  registered  office  or  central  administration  or 
principal  place  of  business  in  the  territory  of  the  Community  or  Syria 
respectively. 

However, should the company, set up in accordance with the laws of a Member 
State or Syria respectively, have only its registered office in the territory of the 
Community  or  Syria  respectively,  the  company  shall  be  considered  a 
Community or Syrian company respectively if its operations possess a real and 
continuous  link  with  the  economy  of  one  of  the  Member  States  or  Syria 
respectively; 

b) 

c) 

"subsidiary"  of  a  company  shall  mean  a  company  which  is  controlled  by  the 
first company; 

"branch"  of  a  company  shall  mean  a  place  of  business  not  having  legal 
personality which has the appearance of permanency, such as the extension of 
a  parent  body,  has  a  management  and  is  materially  equipped  to  negotiate 
business with third parties so that the latter, although knowing that there will if 
necessary  be  a  legal  link  with  the  parent  body,  the  head  office  of  which  is 

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abroad,  do  not  have  to  deal  directly  with  such  parent  body  but  may  transact 
business at the place of business constituting the extension; 

"establishment"  shall  mean  the  right  of  Community  or  Syrian  companies  as 
referred to in point (a) to take up economic activities by means of the setting up 
of subsidiaries and branches in Syria or in the Community respectively; 

"operation" shall mean the pursuit of economic activities; 

"economic  activities"  shall  mean  activities  of  an  industrial,  commercial  and 
professional character; 

"national of a Member State or of Syria" shall mean a physical person who is a 
national of one of the Member States or of Syria respectively; 

d) 

e) 

f) 

g) 

h)  with  regard 

to 

including 

transport, 

international  maritime 

inter-modal 
operations  involving  a  sea  leg,  nationals  of  the  Member  States  or  of  Syria 
established  outside  the  Community  or  Syria  respectively,  and  shipping 
companies  established  outside  the  Community  or  Syria  and  controlled  by 
nationals  of  a  Member  State  or  Syrian  nationals  respectively,  shall  also  be 
beneficiaries of the provisions of this Chapter and Chapter 2 if their vessels are 
registered  in  that  Member  State  or  in  Syria  respectively  in  accordance  with 
their respective legislation. 

1. 

2. 

1. 

2. 

Article 46 

The Parties shall use their best endeavours to avoid taking any measures or actions 
which  render  the  conditions  for  the  establishment  and  operation  of  each  other's 
companies more restrictive than the situation existing on the day preceding the date 
of signature of the Agreement. 

The  provisions  of  this  Article  are  without  prejudice  to  those  of  Article 57.  The 
situations  covered  by  Article 57  shall  be  solely  governed  by  its  provisions  to  the 
exclusion of any other. 

Article 47 

A Community company or Syrian company established in the territory of Syria or the 
Community respectively shall be entitled to employ, or have employed by one of its 
subsidiaries  or  branches,  in  accordance  with  the  legislation  in  force  in  the  host 
country  of  establishment,  in  the  territory  of  Syria  and  the  Community  respectively, 
employees who are nationals of Community Member States and Syria respectively, 
provided that such employees are key personnel as defined in paragraph 2, and that 
they  are  employed  exclusively  by  such  companies,  subsidiaries  or  branches.  The 
residence  and  work  permits  of  such  employees  shall  only  cover  the  period  of  such 
employment. 

the  above  mentioned  companies  herein  referred 

Key  personnel  of 
to  as 
"organisations"  are  "intra-corporate  transferees"  as  defined  in (c)  in  the  following 
categories,  provided  that  the  organisation  is  a  legal  person  and  that  the  persons 
concerned  have  been  employed  by  it  or  have  been  partners  in  it  (other  than  as 
majority shareholders), for at least the year immediately preceding such movement : 

a) 

persons working in a senior position with an organisation, who primarily direct 
the  management  of  the  establishment,  receiving  general  supervision  or 

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direction principally from the board of directors or stockholders of the business 
or their equivalent, including : 

directing 

the  establishment  or  a  department  or  sub-division  of 

the 

establishment; 

supervising  and  controlling  the  work  of  other  supervisory,  professional  or 

managerial employees; 

having the authority personally to recruit and dismiss or recommend recruiting, 

dismissing or other personnel actions; 

persons  working  within  an  organisation  who  possess  uncommon  knowledge 
essential  to  the  establishment's  service,  research  equipment,  techniques  or 
management.  The  assessment  of  such  knowledge  may  reflect,  apart  from 
knowledge specific to the establishment, a high level of qualification referring 
to  a  type  of  work  or  trade  requiring  specific  technical  knowledge,  including 
membership of an accredited profession; 

an "intra-corporate transferee" is defined as a natural person working within an 
organisation in the territory of a Party, and being temporarily transferred in the 
context of pursuit of economic activities in the territory of the other Party; the 
organisation concerned must have its principal place of business in the territory 
of a Party and the  transfer  be to  an  establishment (branch, subsidiary) of that 
organisation, effectively pursuing like economic activities in the territory of the 
other Party. 

b) 

c) 

3. 

The entry into and the temporary presence within the respective territories of Syria 
and the Community of nationals of the Member States or of Syria respectively, shall 
be  permitted,  when  these  representatives  of  companies  are  persons  working  in  a 
senior  position,  as  defined  in  paragraph 2(a)  above,  within  a  company,  and  are 
responsible  for  the  establishment  of  a  Syrian  or  a  Community  company,  in  the 
Community or Syria respectively, when : 

a) 

b) 

those  representatives  are  not  engaged  in  making  direct  sales  or  supplying 
services, and 

the  company  has  no  other  representative,  office,  branch  or  subsidiary  in  a 
Community Member State or Syria respectively. 

Article 48 

In order to make it easier for Community nationals and Syrian nationals to take up and pursue 
regulated  professional  activities  in  Syria  and  the  Community  respectively,  the  Association 
Council  shall  examine  what  steps  are  necessary  to  be  taken  to  provide  for  the  mutual 
recognition of qualifications. 

Article 49 

The  provisions  of  Article 43  do  not  preclude  the  application  by  a  Party  of  particular  rules 
concerning  the  establishment  and  operation  in  its  territory  of  branches  of  companies  of 
another Party not incorporated in the territory of the first Party, which are justified by legal or 
technical  differences  between  such  branches  as  compared  to  branches  of  companies 
incorporated  in  its  territory  or,  as  regards  financial  services,  for  prudential  reasons.  The 

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difference in treatment shall not go beyond what is strictly necessary as a result of such legal 
or technical differences or, as regards financial services, for prudential reasons. 

CHAPTER 2 

CROSS-BORDER SUPPLY OF SERVICES 

Article 50 

1. 

2. 

The  Parties  shall  use  their  best  endeavours  to  allow  progressively  the  supply  of 
services by Community or Syrian companies who are established in the territory of a 
Party  other  than  that  of  the  person  for  whom  the  services  are  intended,  taking  into 
account the development of the services sectors in the Parties. 

The Association Council shall make recommendations for the implementation of the 
objective mentioned in paragraph 1. 

Article 51 

With a view to assuring a co-ordinated development of transport between the Parties, adapted 
to their commercial needs, the conditions of mutual market access and provision of services in 
transport  by  air,  road,  rail  and  inland  waterways  may  be  dealt  with  by  specific  agreements 
where appropriate negotiated between the Parties after the entry into force of this Agreement. 

Article 52 

1. 

With  regard  to  maritime  transport  the  Parties  undertake  to  apply  effectively  the 
principle  of  unrestricted  access  to  the  international  market  and  traffic  on  a 
commercial basis. 

a) 

b) 

The  Parties  shall  continue  to  effectively  apply  the  principle  of  unrestricted 
access to the international maritime market and trade on a commercial and non-
discriminatory basis; 

the  Parties  affirm  their  commitment  to  a  freely  competitive  environment  as 
being an essential feature of the dry and liquid bulk trade. 

2. 

In applying the principles of paragraph 1, the Parties shall : 

a) 

b) 

not  introduce  cargo-sharing  arrangements  in  future  bilateral  Agreements  with 
third countries  concerning  dry  and  liquid  bulk  and  liner  trade.  However,  this 
does not exclude the possibility of such arrangements concerning liner cargo in 
those  exceptional  circumstances  where  liner  shipping  companies  from  one  or 
other  Party  to  this  Agreement  would  not  otherwise  have  an  effective 
opportunity to apply for trade to and from the third country concerned; 

upon entry into force of this Agreement, abolish and abstain from introducing 
any unilateral measures and administrative, technical and other obstacles which 
could have restrictive or discriminatory effects on the free supply of services in 
international maritime transport. 

Each Party shall grant, inter-alia, a treatment no less favourable than that accorded to its own 
ships, for the ships used for the transport of goods, passengers or both, flying the Flag of, or 
operated by nationals or companies of the other Party, with respect to access to ports, the use 
of  infrastructure  and  auxiliary  maritime  services  of  those  ports,  as  well  as  related  fees  and 

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charges,  customs  facilities  and  the  assignment  of  berths  and  facilities  for  loading  and 
unloading. 

CHAPTER 3 

GENERAL PROVISIONS 

Article 53 

1. 

2. 

3. 

1. 

2. 

The  Parties  undertake  to  consider  development  of  this  Title  with  a  view  to  the 
establishment of an "economic integration agreement" as defined in Article V of the 
General Agreement on Trade in Services (GATS). 

The objective provided for in paragraph 1 shall be subject to a first examination by 
the  Association  Council  at  the  latest  five years  after  the  entry  into  force  of  this 
Agreement. 

The  Association  Council  shall,  when  making  such  examination,  take  into  account 
progress  made  in  the  approximation  of  laws  between  the  Parties  in  the  relevant 
activities. 

Article 54 

The  provisions  of  this  Title  shall  be  applied  subject  to  limitations  justified  on 
grounds of public policy, public security or public health. 

They shall not apply to activities which in the territory of either Party are connected, 
even occasionally, with the exercise of official authority. 

Article 55 

For  the  purpose  of  this  Title,  nothing  in  this  Agreement  shall  prevent  the  Parties  from 
applying  their  laws  and  regulations  regarding  entry  and  stay,  work,  labour  conditions  and 
establishment  of  natural  persons  and  supply  of  services,  provided  that,  in  so  doing,  they  do 
not apply them in a manner as to nullify or impair the benefits accruing to any Party under the 
terms  of  a  specific  provision  of  the  Agreement.  This  provision  does  not  prejudice  the 
application of Article 54. 

Companies which are controlled and exclusively owned by Syrian companies and Community 
companies jointly shall also be beneficiaries of the provisions of this Title. 

Article 56 

Article 57 

Treatment  granted  by  either  Party  to  the  other  hereunder  shall,  in  respect  of  sectors  or 
measures  covered  by  the  GATS,  in  no  case  be  more  favourable  than  that  accorded  by  such 
first  Party  under  the  provisions  of  the  GATS  and  this  in  respect  of  each  service  sector, 
sub-sector and mode of supply. 

For  the  purpose  of  this  Title,  no  account  shall  be  taken  of  treatment  accorded  by  the 
Community,  its  Member  States  or  Syria  pursuant  to  commitments  entered  into  in  economic 
integration agreements in accordance with the principles of Article V of the GATS. 

Article 58 

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Article 59 

1. 

2. 

Notwithstanding  any  other  provisions  of  the  Agreement,  a  Party  shall  not  be 
prevented from taking measures for prudential reasons, including for the protection 
of investors, depositors, policy holders or persons to whom a fiduciary duty is owed 
by a financial service supplier, or to ensure the integrity and stability of the financial 
system. Where such measures do not conform with the provisions of the Agreement, 
they  shall  not  be  used  as  a  means  of  avoiding  the  obligations  of  a  Party  under  the 
Agreement. 

Nothing  in  the  Agreement  shall  be  construed  to  require  a  Party  to  disclose 
information  relating  to  the  affairs  and  accounts  of  individual  customers  or  any 
confidential or proprietary information in the possession of public entities. 

The  provisions  of  this  Agreement  shall  not  prejudice  the  application  by  each  Party  of  any 
measures  necessary  to  prevent  the  circumvention  of  its  measures  concerning  third country 
access to its market, through the provisions of this Agreement. 

Article 60 

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PAYMENTS, CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS 

TITLE IV 

CHAPTER 1 

PAYMENTS AND CAPITAL MOVEMENTS 

Article 61 

Subject to the provisions of Article 63, the Parties undertake to allow all current payments for 
current transactions to be made in a freely convertible currency. 

Article 62 

1. 

With  regard  to  transactions  on  the  capital  account  of  balance  of  payments,  the 
Community and Syria shall ensure, from the entry into force of this agreement, that 
capital  relating  to  foreign  direct  investments  in  Syria  in  companies  formed  in 
accordance  with  current  laws  and  investments  made  in  accordance  with  the 
provisions of the Title on Establishment and Services can move freely, and that the 
yield  from  such  investments  and  any  profit  stemming  therefrom  can  be  freely 
liquidated and repatriated. 

2. 

The  Parties  shall  consult  each  other  with  a  view  to  facilitating,  and  further 
liberalising, the movement of capital between the Community and Syria. 

Article 63 

Where  one  or  more  Member  States  of  the  Community  or  Syria  face  or  risk  facing  serious 
difficulties  concerning  balance  of  payments,  the  Community  and  Syria  respectively  may,  in 
conformity  with  the  conditions  laid  down  within  the  framework  of  the  GATT  and  with 
Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, take 
restrictive measures with regard to current payments if such measures are strictly necessary. 

The Community or Syria, as appropriate, shall inform the other Party immediately thereof and 
shall provide as soon as possible a timetable for the removal of such measures. 

CHAPTER 2 

COMPETITION 

Article 64 

1. 

The following are incompatible with the proper functioning of the Agreement, in so 
far as they may affect trade between the Community and Syria: 

a) 

b) 

all agreements between undertakings, decisions by associations of undertakings 
and  concerted  practices  between  undertakings  which  have  as  their  object  or 
effect the prevention, restriction or distortion of competition; 

abuse by one or more undertakings of a dominant position in the territories of 
the Community or Syria as a whole or in a substantial part thereof. 

2. 

The  Parties  will  co-operate  in  the  enforcement  of  their  respective  competition 
legislation  and  shall  exchange  information  taking  into  account  the  limitations 
imposed  by  the  requirements  of  professional  and  business  secrecy.  The  modalities 
for this co-operation are set out in Annex V. 

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3. 

If  the  Community  or  Syria  considers  that a  particular  practice  is  incompatible  with 
the  terms  of  the  first  paragraph  of  this  Article,  and  if  such  practice  causes  or 
threatens  to  cause  serious  prejudice  to  the  other  Party  it  may  take  appropriate 
measures after consultation within the Association Committee or after thirty working 
days following referral for such consultation. 

Article 65 

The  Member  States  and  Syria  shall  progressively  adjust,  without  prejudice  to  their 
commitments respectively taken or to be taken under the GATT, any State monopolies of a 
commercial character, so as to ensure that, by the end of the fifth year following the entry into 
force  of  this  Agreement,  no  discrimination  regarding  the  conditions  under  which  goods  are 
procured  and  marketed  exists  between  nationals  of  the  Member  States  and  Syria.  The 
Association  Committee  will  be  informed  about  the  measures  adopted  to  implement  this 
objective. 

Article 66 

With  regard  to  public  enterprises  and  enterprises  to  which  special  or  exclusive  rights  have 
been  granted,  the  Association  Council  shall  ensure  that  as  from  the  fifth  year  following  the 
date of entry into force of this Agreement there is neither enacted nor maintained any measure 
distorting  trade  between  the  Community  and  Syria  to  an  extent  contrary  to  the  Parties' 
interests. This provision should not obstruct the performance in law or in fact of the particular 
tasks assigned to these enterprises. 

CHAPTER 3 

GOVERNMENT PROCUREMENT 

Article 67 

Government Procurement 

1. 

2. 

3. 

4. 

The Parties shall set as their objective the effective, reciprocal and gradual opening 
of the government procurement markets. 

Each  Party  shall  ensure  that  the  procurement  of  its  entities  covered  in  Annex  VII 
takes place in a transparent, reasonable and non-discriminatory manner, according to 
the  definition  provided  in  Annex  VII,  treating  any  supplier  of  either  Party  equally 
and ensuring the principle of open and effective competition. 

With  respect  to  any  laws,  regulations,  procedures,  and  practices  regarding 
government  procurement,  as  well  as  specific  procurements,  covered  by  this 
Agreement, each Party shall grant the goods, services and suppliers of the other Party 
a  treatment  no  less  favourable  than  that  accorded  by  it  to  domestic  goods,  services 
and suppliers. 

With  respect  to  any  laws,  regulations,  procedures  and  practices  regarding 
government  procurement,  as  well  as  specific  procurements,  covered  by  this 
Agreement, each Party shall ensure that its entities listed in Annex VII: 

a) 

do  not  treat  a  locally-established  supplier  less  favourably  than  any  other 
locally-established supplier on the basis of the degree of foreign affiliation to, 
or ownership by, a person of the other Party; and 

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b) 

do not discriminate against a locally-established supplier on the basis that the 
goods  or  services  offered  by  that  supplier  for  a  particular  procurement  are 
goods or services of the other Party. 

5. 

With  respect  to  any  laws,  regulations,  procedures  and  practices  regarding 
government  procurement,  as  well  as  specific  procurements,  opened  to  goods, 
services  and  suppliers  of  third  countries,  Syria  shall  provide  to  the  goods  and 
suppliers of the other Party treatment no less favourable than that accorded to foreign 
goods, services and suppliers of any third country. 

With respect to all laws, regulations, procedures and practices regarding government 
procurement  covered  by  the  Government  Procurement  Agreement  (GPA),  the 
European Communities shall provide immediately and unconditionally to the goods, 
services and suppliers from Syria treatment no less favourable than that accorded to 
goods, services and suppliers of the Parties to the GPA. 

6. 

The Parties will regularly review the effective opening of procurement markets and 
in no later than three years will enter into negotiations aiming at extending the list of 
covered entities in Annex VII. 

7. 

Nothing in this article shall be construed: 

to  require  a  Party  to  furnish  any  information  the  disclosure  of  which  it  considers 
contrary to its essential security interest; 

to prevent a Party from taking any action it considers necessary for the protection of 
its essential security interests relating to government procurement indispensable for 
national security or for national defence purposes. 

8. 

This article shall not be applicable to contracts awarded pursuant to: 

an international agreement intended for the joint implementation or exploitation of a 
project by the contracting parties; 

an international agreement relating to the stationing of troops; 

the particular procedures of an international organization; 

a non-contractual agreement or any form of government assistance and procurement 
made in the framework of assistance or co-operation programmes. 

Article 68 

Transparency of Government Procurement 

1. 

2. 

3. 

Each  Party  shall  promptly  publish  any  law,  regulation,  judicial  decision  and 
administrative  ruling  of  general  application  and  procedure,  including  standard 
contract  clauses,  regarding  procurement  covered  by  this  Title  in  the  appropriate 
publications  referred  to  in  Annex  VII  including  officially  designated  electronic 
media. 

Each  Party  shall  promptly  publish  in  the  same  manner  all  modifications  to  such 
measures. 

Each  Party  shall  ensure  that  its  entities  provide  for  effective  dissemination  of  the 
tendering  opportunities  generated  by 
the  relevant  government  procurement 
processes, providing suppliers of the other Party with all the information required to 
take part in such procurement. 

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4. 

1. 

2. 

Dissemination of procurement opportunities shall contain the information as set out 
in Annex VII and shall be published in a timely manner through means which offer 
the  widest  possible  and  non-discriminatory  access  to  the  interested  suppliers  of  the 
Parties. These means are specified in Annex VII. 

Article 69 

Time limits of Government Procurement 

All  time-limits  established  by  the  entities  for  the  receipt  of  tenders  and  requests  to 
participate shall be adequate to allow suppliers of the other Party, as well as domestic 
suppliers,  to  prepare  and  to  submit  tenders,  and  where  appropriate,  requests  for 
participation  or  applications  for  qualifying.  In  determining  any  such  time-limit, 
entities  shall,  consistent  with  their  own  reasonable  needs,  take  into  account  such 
factors  as  the  complexity  of  the  intended  procurement  and  the  normal  time  for 
transmitting tenders from foreign as well as domestic points. 

Each Party shall ensure that its entities shall take due account of publication delays 
when setting the final date for receipt of tenders or of request for participation or for 
qualifying for the supplier's list. 

3. 

The minimum time-limits for the receipt of tenders are specified in Annex VII. 

Article 70 

Bid challenges 

1. 

2. 

1. 

2. 

3. 

Each  Party  shall  provide  non-discriminatory,  timely,  transparent  and  effective 
procedures enabling suppliers to challenge alleged breaches of this Agreement in the 
context of procurements in which they have, or have had, an interest. 

Challenges  shall  be  heard  by  an  impartial  and  independent  reviewing  authority.  A 
reviewing authority which is not a court shall either be subject to judicial review or 
shall have procedural guarantees similar to those of a court. 

Article 71 

Co-operation and assistance in Government Procurement 

The  Parties  will  co-operate  in  the  area  of  government  procurement  by  exchanging 
experience and information about best practices and regulatory frameworks. 

The  Parties  shall  endeavour  to  co-operate  with  a  view  to  achieve  a  better 
understanding  of  their  respective  government  procurement  systems,  as  well  as  a 
better access to their respective markets. 

Technical  assistance  shall  be  provided  upon  duly  motivated  request,  in  particular 
through jointly developed training programmes. 

CHAPTER 4 

OTHER ECONOMIC MATTERS 

Article 72 

Intellectual, Industrial and Commercial Property Rights 

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1. 

2. 

1. 

2. 

3. 

4. 

9 

Pursuant  to  provisions  of  this  article  and  of  Annex  VI,  the  parties  shall  grant  and 
ensure  adequate  and  effective  protection  of  intellectual,  industrial  and  commercial 
property  rights9in  accordance  with  the  highest  international  standards  including  the 
rules set by the Agreement on Trade-Related Aspects of Intellectual Property Rights 
(TRIPS), Annex IC to the agreement establishing the World Trade Organization, as 
well as effective means of enforcing such rights. 

The implementation of this Article and Annex VI shall be regularly reviewed by the 
Parties. 

Article 73 

Standards, Technical Regulations, and Conformity Assessment Procedures 

The rights and obligations relating to standards, technical regulations and conformity 
assessment  procedures  under  the  WTO  Agreement  on  Technical  Barriers  to  Trade, 
including  the  provision  according  to  which  "members  shall  ensure  that  technical 
regulations are not prepared, adopted or applied with a view to or with the effect of 
creating unnecessary obstacles to international trade", shall apply. 

The Parties shall take appropriate steps to encourage the use by Syria of Community 
technical  rules  and  European  standards  for  industrial  products  and  certification 
procedures. 

Using  the  principles  set  out  in  paragraph  2  as  a  basis,  the  Parties  shall,  when  the 
circumstances are right, conclude agreements on conformity assessment. 

Co-operation shall be aimed at helping Syria to bring its legislation closer to that of 
the Community in this area. 

For  the  purpose  of  this  Agreement,  intellectual,  industrial  and  commercial  property  rights  embody 
copyright,  including  copyright  in  computer  programs  and  in  databases,  and  neighbouring  rights,  the 
rights  related  to  patents,  industrial  designs,  geographical  indications,  including  appellations  of  origin, 
indications  of  source,  trademarks,  service  marks,  trade  names,  layout-  designs  (topographies)  of 
integrated  circuits,  plant  varieties,  protection  of  undisclosed  information  and  the  protection  against 
unfair  competition  as  referred  to  in  Article  10  bis  of  the  Paris  Convention  for  the  Protection  of 
Industrial  Property  (Stockholm  Act  1967),  as  well  as  any  other  rights  protected  by  the  multilateral 
conventions listed in Annex VI. 

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TITLE V 

DISPUTE SETTLEMENT 

CHAPTER I 

OBJECTIVE AND SCOPE 

Article 74 

Objective 

The objective of this Title is to settle trade disputes between the Parties with a view to arrive 
at, where possible, mutually agreed solutions. 

Article 75 

Scope 

The  provisions  of  this  Title  shall  apply  with  respect  to  any  differences  concerning  the 
interpretation  and  application  of  Titles  II  to  V,  including  where  a  Party  considers  that  a 
measure  of  the  other  Party  is  in  breach  of  these  Titles,  except  where  otherwise  expressly 
provided. 

CHAPTER II 

DISPUTE AVOIDANCE 

CONSULTATIONS AND MEDIATION 

Article 76 

Consultations 

1. 

2. 

3. 

4. 

The  Parties  shall  endeavour  to  resolve  any  differences  on  the  interpretation  and 
application of Titles II to V by entering into good faith consultations with the aim of 
reaching a mutually agreed solution. 

A Party shall seek consultations through written request to the other Party, copied to 
the Trade Committee, stating how a measure adversely affects its rights. The relevant 
provisions of these Titles must also be cited. 

Consultations  shall  be  held  within  30  days  of  the  request  being  delivered  and  will, 
unless  the  Parties  agree  otherwise,  be  held  on  the  territory  of  the  defending  Party. 
The consultations shall be deemed concluded within 60 calendar days from the date 
of  the  consultation  request,  unless  both  Parties  agree  to  continue  consultations.  All 
information disclosed during the consultations shall remain confidential. 

If consultations are not held within the timeframe laid down in paragraph 3, and no 
agreement  has  been  reached  on  a  mutually  agreed  solution,  then  the  complaining 
Party  may  proceed  directly  to  request  the  establishment  of  an  arbitration  panel  in 
accordance with Article 78. 

Article 77 

Mediation 

1. 

If  consultations  fail  to  produce  a  mutually  agreed  solution,  the  Parties  may,  by 
mutual agreement, seek recourse to mediation by a mediator appointed by the Trade 

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Committee.  Any  request  for  mediation  must  be  made  in  writing,  and  state  the 
measure which has been the subject of consultations, as well as the mutually agreed 
terms of reference for the mediation. 

The  Chairperson  of  the  Trade  Committee  will  appoint  within  10  days  of  receipt  of 
the request a mediator selected by lot from the persons included in the list referred to 
in Article 79 paragraph 2 who is not a national of either of the Parties. The mediator 
will convene a meeting with the Parties no later than 30 days after being appointed. 
The mediator will be supplied with the submissions of both parties no later than 15 
days before the meeting and will issue an opinion no later than 45 days after having 
been appointed. The mediator’s opinion may include a recommendation on the steps 
that  are  consistent  with  these  Titles  by  which  the  dispute  could  be  resolved.  The 
mediator’s opinion will be non-binding. 

The  time-frames  referred  to  in  paragraph  2  above  may  be  amended,  should 
circumstances so demand, with the agreement of both Parties. Any amendment must 
be notified in writing by both Parties to the Trade Committee. 

In the event that mediation produces a mutually agreed solution to the dispute, both 
Parties must notify the Trade Committee in writing. 

CHAPTER III 

DISPUTE SETTLEMENT PROCEDURES 

Article 78 

Initiation of the arbitration panel 

Where the Parties have failed to resolve the dispute by recourse to consultations as 
detailed in Article 76, or where the Parties have had recourse to mediation as detailed 
in Article 77 and no mutually agreed solution has been notified within 15 days of the 
issuance  of  the  mediator’s  opinion,  or  if  a  Party  fails  to  comply  with  the  mutually 
agreed solution, the complaining Party may seek the establishment of an arbitration 
panel  upon  written  request  to  the  defending  Party  and  simultaneously  to  the  Trade 
Committee. 

The  complaining  party  shall  state  in  its  request  the  measure  it  considers  to  be  in 
breach of these Titles and indicate the provisions considered relevant. 

Article 79 

Appointment of arbitrators 

An arbitration panel shall be composed of three arbitrators. 

The Trade Committee shall, no later than six months after the entry into force of this 
Agreement,  establish  a  list  of  15  individuals  who  are  willing  and  able  to  serve  as 
arbitrators. Each of the Parties may select 5  individuals to serve  as arbitrators. The 
two  Parties  shall  agree  on  5  individuals  that  are  not  nationals  of  either  Party.  The 
Trade Committee will ensure that the list is always maintained at this level. 

Arbitrators  should  have  specialised  knowledge  or  experience  in  law  and/or 
international trade. They should be independent, serve in their individual capacities 

2. 

3. 

4. 

1. 

2. 

1. 

2. 

3. 

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and  not  be  affiliated  with,  or  take  instructions  from,  any  organisation  or 
government10 and shall comply with the Code of Conduct set out in Annex VIII. 

Article 80 

Composition of the arbitration panel 

Within 10 days from the request for a panel being submitted to the Trade Committee 
the  Parties  will  consult  in  order  to  reach  agreement  on  the  composition  of  the 
arbitration panel. In the event that the Parties are unable to agree on its composition 
within  this  timeframe,  either  party  may  request  the  chairperson  of  the  Trade 
Committee, or their delegate, to select all three members by lot, drawing one name 
from  each  of  the  three  categories  of  panellists  (i.e.  the  list  supplied  by  each  Party 
composed  of  their  own  nationals,  and  the  combined  list  of  non-nationals  of  either 
Party).  In  case  the  Parties  agree  on  one  or  more  of  the  members  of  the  arbitration 
panel, any remaining members shall be appointed by lot from the relevant lists. The 
arbitration panel will always be composed of a national from each of the parties and 
a non-national of either party, the latter acting as chairperson. 

The date of establishment of the arbitration panel shall be the date on which the three 
arbitrators are selected. 

Where a Party considers that an arbitrator does not comply with the requirements of 
the Code of Conduct, the Parties shall consult, and if so agreed, they shall replace the 
arbitrator  and  select  a  replacement  pursuant  to  paragraph  4.  In  the  event  that  the 
parties fail to agree on the need to replace an arbitrator, the matter will be referred to 
the chairperson11 of the arbitration panel whose decision will be final. 

If  an  arbitrator  is  unable  to  participate  in  the  proceeding,  withdraws  or  is  replaced 
pursuant to paragraph 3, a replacement shall be selected within 5 days in accordance 
with  the  selection  procedures  followed  to  appoint  the  original  arbitrator.  The  panel 
proceedings  will  be  suspended  for  the  period  during  which  this  procedure  is 
undertaken. 

Article 81 

Rules of Procedure 

The Trade Committee shall apply the Rules of Procedure, agreed between the Parties 
and annexed to this Agreement, for the conduct of the arbitration panel proceedings. 

The sessions of the arbitration panel shall be open to the public in accordance with 
the  Rules  of  Procedure,  unless  the  arbitration  panel  of  its  own  motion,  or  on 
application of the parties, decides otherwise. 

This does not preclude Government or Civil Servants from being arbitrators. However they should act 
strictly in an ad personam basis and therefore must not take instructions from either their own National 
Government  or  its  agencies.  The  same  applies  to  instructions  from  any  source  be  it  an  non-
governmental organisation or government of a third country. 
Where a Party considers that the chairman of the arbitration panel does not comply with the Code of 
Conduct, then the matter will be referred to one of the remaining members of the pool of third country 
nationals, their name being drawn by lot by the Trade Committee, unless agreed between the Parties. 

1. 

2. 

3. 

4. 

1. 

2. 

10 

11 

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Article 82 

Information and Technical advice 

At the request of a Party, or upon their own initiative, the panel may obtain information from 
any source it deems appropriate for the panel proceeding. The panel will also have the right to 
seek the opinion of experts as it deems appropriate. Any information obtained in this manner 
must  be  disclosed  to  both  Parties.  Interested  parties  shall  be  authorised  to  submit  amicus 
curiae briefs to the arbitration panels in accordance with the Rules of Procedure. 

Article 83 

Applicable Law 

The  arbitration  panel  shall  interpret  the  provisions  of  these  Titles  in  accordance  with 
customary rules of interpretation of public international law including the Vienna Convention 
on the Law of Treaties. 

1. 

2. 

3. 

4. 

5. 

6. 

Article 84 

Arbitration panel ruling 

The arbitration panel shall transmit its ruling to the Parties and the Trade Committee 
within ninety days following the establishment of the panel. Where it considers that 
this  deadline  cannot  be  met,  the  chairperson  of  the  panel  must  notify  the  Trade 
Committee  and  Parties  in  writing,  stating  the  reasons  for  the  delay.  Under  no 
circumstances  should  the  ruling  be  issued  later  than  one  hundred  and  twenty  days 
following the establishment of the panel. 

The  ruling  shall  set  out  the  findings  of  fact,  the  applicability  of  the  relevant 
provisions of these Titles and the basic rationale behind any findings and conclusions 
that it makes. 

In cases of urgency, including those involving perishable goods, the arbitration panel 
shall  make  every  effort  to  issue  its  ruling  within  seventy-five  days  from  the 
establishment  of  the  panel.  Under  no  circumstance  should  it  take  longer  than  one 
hundred days from the establishment of the panel. The arbitration panel may give a 
preliminary  ruling  within  ten  days  from  its  establishment  on  whether  it  deems  the 
case to be urgent. 

All  decisions  of  the  arbitration  panel,  including  the  adoption  of  the  ruling,  shall  be 
taken by majority vote. 

The  complaining  Party  may  withdraw  its  complaint  by  written  notification  to  the 
chairpersons of the arbitration panel and the Trade Committee, as well as the other 
Party,  at  any  time  before  the  ruling  is  transmitted  to  the  Parties  and  the  Trade 
Committee.  Such  withdrawal  is  without  prejudice  to  its  right  to  introduce  a  new 
complaint regarding the same matter at a later point in time. 

The arbitration panel may, at the request of both Parties, suspend its work at any time 
for  a  period  not  exceeding  twelve  months.  Once  the  period  of  twelve  months  has 
been  exceeded,  the  authority  for  the  establishment  of  the  panel  will  lapse,  without 
prejudice  to  the  right  of  the  complaining  Party  to  request  at  a  later  stage  the 
establishment of a panel on the same subject matter. 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

Article 85 

Compliance with Ruling 

Each  Party  shall  take  the  measures  necessary  to  comply  with  the  ruling  of  the 
arbitration  panel,  and  the  Parties  will  endeavour  to  agree  on  the  time  required  in 
order to implement the ruling. 

No  later  than  30  days  after  the  issuance  of  the  ruling  to  the  Parties,  the  defending 
Party  shall  notify  the  complaining  Party  of  the  time-frame  (hereinafter  "reasonable 
period of time") it will require for implementation. Both parties should aim to agree 
on the reasonable period of time. 

In the event that there is disagreement between the Parties on the reasonable period 
of  time  to  implement  the  arbitration  panel’s  ruling,  the  complaining  Party  shall 
request the Trade Committee to reconvene the original arbitration panel to determine 
its length. Once convened by the Trade Committee, the arbitration panel will issue its 
ruling within 20 days from the date of its re-establishment. In the event the original 
panel, or some of its members, is unable to reconvene, then the procedures detailed 
in Article 80 apply. The period for issuing its ruling in this instance remains 20 days 
from the date of the panel's establishment. 

The  Party  concerned  shall  notify  to  the  other  Party  and  to  the  Trade  Committee 
before the end of the reasonable period of time the implementing measures that it has 
adopted  or  intends  to  adopt  in  order  to  comply  with  the  ruling  of  the  arbitration 
panel. 

In  the  event  that  there  is  disagreement  between  the  Parties  as  to  the  consistency  of 
the  measure  in  relation  to  these  Titles  and  as  notified  under  paragraph  4  then  the 
complaining Party may seek recourse to the original arbitration panel to rule on the 
matter upon written application to the Trade Committee stating how the measure is 
inconsistent with these Titles. Once convened by the Trade Committee the arbitration 
panel will issue its ruling within 45 days from the date of its re-establishment. 

In  the  event  the  original  arbitration  panel,  or  some  of  its  members,  is  unable  to 
reconvene, then the procedures detailed in Article 80 apply. The period for issuing its 
ruling in this instance remains 45 days from the date of the panel's establishment. 

If the Party concerned fails to notify the implementing measures before the expiry of 
the  reasonable  period  of  time  the  defending  Party  shall  if  so  requested  by  the 
complaining Party, present an offer for temporary compensation. If no agreement on 
compensation has been reached within 30 days of the end of the reasonable period of 
time,  the  complaining  Party  shall  be  entitled,  upon  notification  to  the  Trade 
Committee,  to  suspend  the  application  of  benefits  granted  under  Titles  II  to  V 
equivalent to the nullification and impairment caused by the measure that has been 
found to violate these Titles. The notification shall be delivered simultaneously to the 
other Party. The complaining Party may implement the suspension ten days after the 
date  of  the  notification,  unless  the  defending  Party  has  requested  arbitration  under 
paragraph 8. 

If the defending Party considers that the level of suspension is not equivalent to the 
nullification and impairment caused by the measure, then a written request shall be 
made to the Trade Committee before the expiry of the ten day period mentioned in 
paragraph  7  for  the  reconvening  of  the  original  arbitration  panel.  The  Trade 
Committee shall be informed of the ruling by the arbitration panel on the level of the 

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9. 

10. 

11. 

12. 

1. 

2. 

3. 

suspension  of  benefits  within  30  days  from  the  date  of  the  request  for  its 
establishment. Benefits shall not be suspended until the arbitration panel has issued 
its  ruling  and  any  suspension  shall  be  consistent  with  the  ruling  of  the  arbitration 
panel. 

The  suspension  of  benefits  shall  be  temporary  and  shall  only  be  applied  until  the 
measure found to violate this Title II to V has been withdrawn or amended so as to 
bring  it  into  conformity  with  these  Titles,  or  in  the  case  where  the  Parties  have 
agreed  on  a  resolution  of  the  dispute.  If  the  defending  Party  considers  that  it  has 
taken measures to implement the ruling, yet the suspension of benefits is maintained, 
the defending party may seek recourse to the original arbitration panel for a ruling on 
whether  such  suspension  should  be  terminated  or  modified.  The  ruling  shall  be 
issued within 45 days of the written request for its re-establishment. 

In  the  event  the  original  arbitration  panel,  or  some  of  its  members,  is  unable  to 
reconvene, then the procedures detailed in Article 80 apply. The period for issuing its 
ruling in this instance remains 45 days from the date of the panel's establishment. 

All rulings provided for in this Article shall be final and binding and shall be made 
available to the Trade Committee which will make them publicly available unless it 
decides by consensus not to do so. 

Upon  the  accession  of  the  Syrian  Arab  Republic  to  the  World  Trade  Organisation, 
nothing in this Agreement shall preclude a party from implementing the suspension 
of benefits that have been authorised by the Dispute Settlement Body of the World 
Trade Organisation. 

CHAPTER IV 

GENERAL PROVISIONS 

Article 86 

Arbitration proceedings established under this Title will not consider issues relating 
to  each  Party’s  rights  and  obligations  under  the  Agreement  establishing  the  World 
Trade Organisation (WTO). 

Recourse  to  the  Dispute  Settlement  Provisions  of  these  Titles  shall  be  without 
prejudice to any possible action in the WTO framework, including dispute settlement 
action. However where a Party has, with regard to a particular measure, instituted a 
dispute settlement proceeding under either Article 78 paragraph 1 of this Title or the 
WTO Agreement, it shall not institute a dispute settlement proceeding regarding the 
same  measure  under  the  other  forum  until  such  time  as  the  first  proceeding  has 
ended.  For  purposes  of  this  paragraph,  dispute  settlement  proceedings  under  the 
WTO  Agreement  are  deemed  to  be  initiated  by  a  Party’s  request  for  a  panel  under 
Article 6 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes of the WTO. 

Until the Syrian Arab Republic accedes to the World Trade Organisation, arbitration 
panels shall adopt an interpretation that is fully consistent with the relevant decisions 
of the Dispute Settlement Body of the World Trade Organisation when ruling on an 
alleged  violation  of  a  provision  contained  in  Titles  II  to  V  of  this  Agreement  that 
incorporates  or  refers  to  a  provision  under  the  Agreement  establishing  the  World 
Trade  Organisation.  Upon  the  accession  of  the  Syrian  Arab  Republic  to  the  World 
Trade  Organisation,  arbitration  panels  shall  suspend  proceedings  if  they  consider 

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they  cannot  rule  on  a  dispute  without  interpreting  a  WTO  provision,  where  such  a 
provision  is  referred  to  in  Titles  II  to  V  of  this  Agreement.  In  the  event  of  such  a 
suspension  of  proceedings,  any  party  may  have  recourse  to  dispute  settlement 
proceedings under the WTO. 

Article 87 

1. 

2. 

All terms established under this Title shall be counted in calendar days from the day 
following the act or fact to which they refer. 

Any deadline mentioned in this Title may be extended by mutual agreement of the 
Parties. 

The documents presented in the framework of the proceedings provided under this Title shall 
be considered as confidential, with the exception of arbitration awards. 

Article 88 

The written and oral submissions of the Syrian Arab Republic shall be made in Arabic, and 
for the European Communities, in any of the official languages of the European Union. 

Article 89 

TITLE VI 

ECONOMIC CO-OPERATION  

Article 90 

Objectives 

1. 

2. 

1. 

2. 

3. 

4. 

The Parties undertake to intensify economic co-operation in their mutual interest and 
in accordance with the overall objectives of the Agreement. 

The aim of economic co-operation shall be to support Syria's own efforts to achieve 
sustainable economic and social development. 

Article 91 

Scope 

Co-operation  shall  focus  primarily  on  sectors  suffering  from  internal  difficulties  or 
affected  by  the  overall  process  of  liberalisation  of  the  Syrian  economy,  and  in 
particular by the liberalisation of trade between Syria and the Community. 

Similarly,  co-operation  shall  focus  on  areas  likely  to  bring  the  economies  of  the 
Community and Syria closer together, particularly those which will generate growth 
and employment. 

The Parties will encourage economic co-operation between Syria and other countries 
of the region. 

Conservation of the environment and ecological balance shall be taken into account 
in the implementation of the various sectors of economic co-operation to which it is 
relevant  bearing  in  mind  the  difference  in  the  level  of  economic  and  social 
development between the Parties. 

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5. 

The Parties may agree to extend economic co-operation to other sectors not covered 
by the provisions of this Title. 

Article 92 

Methods and Modalities 

Economic co-operation shall be implemented in particular through: 

a) 

b) 

c) 

d) 

e) 

f) 

a  regular  economic  dialogue  between  the  Parties,  which  covers  all  areas  of  macro-
economic policy; 

regular exchange of information and ideas in every sector of co-operation including 
meetings of officials and experts; 

transfer of advice, expertise and training; 

implementation of joint actions such as seminars and workshops; 

technical, administrative and regulatory assistance; 

encouragement  of  joint  ventures;  the  use  of  scientific  research  results  for 
technological applications, innovation and development. 

Article 93 

Regional Co-operation 

The Parties will encourage operations having a regional impact or associating other countries 
of the region, with a view to promoting regional co-operation. 

Such operations may include: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

k) 

trade at intra-regional level; 

investment; 

environmental issues; 

development of economic infrastructures; 

scientific and technological research; 

cultural matters; 

customs matters; 

Information Technology; 

water issues, including irrigation; 

decentralised cooperation between local administrations; 

public health. 

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Article 94 

Education and Training 

The  Parties  shall  co-operate  with  the  objective  of  identifying  and  employing  the  most 
effective  means  to  improve  significantly  the  education  and  vocational  training  situation  in 
Syria, in particular with regard to public and private enterprises, trade-related services, public 
administrations  and  authorities,  technical  agencies,  scientific  and  technological  academic 
facilities,  standardisation  and  certification  bodies  and  other  relevant  organisations.  In  this 
context,  vocational,  technical  and  administrative  training  for  industrial  restructuring  will 
receive special attention. 

Co-operation shall also encourage the establishment of links between specialised bodies in the 
Community and in Syria and shall promote the exchange of information, and experiences and 
the pooling of technical resources. 

Article 95 

Scientific and Technological co-operation 

Co-operation has the objective of: 

a) 

encouraging  the  establishment  of  durable  links  between  the  scientific  and 
technological communities of the Parties, notably through : 

the access of Syria to Community R&D programmes, in conformity with the existing 
provisions concerning the participation of third countries; 

b) 

c) 

1. 

2. 

the participation of Syria in the networks of decentralised co-operation; 

the promotion of training in research and development sectors. 

strengthening the scientific and applied research and development capacity of Syria, 
through capacity building in human resources and providing scientific, technical and 
material support to research bodies. 

stimulating  technological  innovation,  transfer  of  new  technologies  and  knowledge, 
and  dissemination  of  know-how, 
to  promoting 
environmentally-friendly practices and accelerating the adjustment and development 
of Syria's industrial capability. 

in  particular  with  a  view 

Article 96 

Environment 

Co-operation is aimed at preventing deterioration of the environment, improving its 
quality, controlling pollution, protecting human health and ensuring the rational use 
of natural resources, with a view to ensuring sustainable development. 

Co-operation,  which  will  also  promote  regional  environmental  projects,  shall  focus 
on  the  following  fields  with  emphasis  on  harmonisation  of  legislation  including 
implementation of UN-related agreements: 

a) 

b) 

combating desertification; 

protection of bio-diversity; 

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c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

k) 

l) 

integrated  water  resources  management  including  irrigation  and  control  of 
pollution or salinisation of surface and groundwater; 

use of renewable sources of energy; 

promotion  of  clean  production  and  prevention  of  environmental  impacts  and 
risks on safety due to industrial activities; 

trade and environment; 

control of the air quality; 

prevention and control of marine pollution; 

waste management; 

the impact of agriculture on soil and water quality; 

environmental education and awareness; 

use  of  advanced  tools  of  environmental  management  and  decision-making, 
environmental  monitoring  methods,  including  in  particular  the  use  of  the 
Environmental 
Impact 
Assessment (EIA); 

(EIS)  and  Environmental 

Information  System 

m) 

environmental crisis management; 

n) 

the adaptation to climate change. 

Article 97 

Industrial Co-operation 

Industrial Co-operation shall promote and encourage: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

industrial co-operation between economic operators in the Community and in Syria, 
including  access  for  Syria  to  the  Community's  networks  for  the  rapprochement  of 
businesses and to networks created in the context of decentralised co-operation; 

the  modernisation  and  restructuring  of  Syrian  industry,  including  its  infrastructure 
and  support  institutions  in  relevant  areas  such  as  standards,  quality  assurance  or 
industrial design; 

the establishment and promotion of an environment favourable to the development of 
private  enterprise,  in  order  to  stimulate  the  growth  and  the  diversification  of 
industrial production in a sustainable development perspective; 

co-operation between small and medium-sized enterprises in the Community and in 
Syria; 

innovation, R&D and acquisition of technology and products to contribute to Syria's 
economic development; 

diversification of industrial output in Syria; 

the enhancement of human resources; 

improvement of access to investment finance;  

stimulation of innovation; 

improvement of information support services; 

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k) 

or any other co-operation area as agreed between Parties. 

Article 98 

Investments and Promotion of Investments 

The objective of co-operation will be the promotion of a favourable and stable environment 
for investment in Syria. The co-operation will entail in particular the development of : 

a) 

b) 

c) 

d) 

harmonised  and  simplified  administrative  procedures;  co-investment  machinery, 
especially  for  small  and  medium-sized  enterprises  of  both  Parties;  and  information 
channels and means of identifying investment opportunities; 

a  legal  environment  conducive  to  investment  between  the  two  parties,  where 
appropriate  through  the  conclusion  by  the  Member  States  and  Syria  of  investment 
protection agreements and agreements to prevent double taxation; 

access to the capital market for the financing of productive investments in Syria; 

joint ventures between business in Syria and in the Community. 

Article 99 

Standards, Technical Regulations and Conformity Assessment Procedures 

Co-operation in this field will be aimed in particular at: 

a) 

b) 

increasing  the  application  of  Community  rules  in  the  field  of  technical  regulations, 
metrology, accreditation, standardisation and conformity assessment; 

Developing Syrian laboratories and conformity assessment bodies, with a view to the 
establishment,  in  due  time  and  to  the  extent  feasible,  of  agreements  on  conformity 
assessment; 

c) 

developing structures and bodies for standardisation and quality in Syria. 

Article 100 

Intellectual, Industrial and Commercial Property Rights 

Co-operation in the field of intellectual, industrial and commercial property rights shall, upon 
request and on mutually agreed terms and conditions, inter alia, extend to the following areas : 

a) 

b) 

c) 

the  preparation  of  laws  and  regulations  for  the  protection  and  enforcement  of 
intellectual, industrial and commercial property rights; 

the prevention of abuses of such rights by right-holders and the infringement of such 
rights by competitors; 

in 
the  establishment  and  reinforcement  of  national  organizations 
enforcement and protection against counterfeiting and piracy, including the training 
of  personnel,  awareness  building  activities  and  knowledge-based,  capacity  building 
related  activities  in  view  of  strengthening  Syria's  ability  to  implement  intellectual, 
industrial and commercial property rights protection. 

involved 

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Article 101 

Financial Services 

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The Parties shall co-operate with a view to the rapprochement of their standards and rules, in 
particular : 

a) 

b) 

to strengthen and restructure the financial sector in Syria; 

to improve accounting and supervisory and regulatory systems of banking, insurance 
and other financial sectors in Syria. 

Article 102 

Agriculture and Fisheries 

1. 

The Parties shall focus co-operation on : 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

support for policies implemented by them to diversify production; 

encouraging the development of the private sector to reduce food dependency; 

promotion of environment-friendly agriculture; 

conservation and rational management of fish stocks; 

closer  relations  between  businesses,  groups  and  organisations  representing 
trades and professions in Syria and in the Community on a voluntary basis; 

support and promotion of private investments; 

technical assistance and training; 

agronomic research, the use of new technologies; 

co-operation on phyto-sanitary and veterinary standards; 

j)  modernisation of infrastructures and of distribution operations; 

k) 

l) 

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

co-operation  among  rural  regions,  exchange  of  experience  and  know-how 
concerning rural development; 

m) 

or any other cooperation area as agreed between Parties. 

2. 

The cooperation may take the form of i.a. transfer of know-how, the establishment of 
joint ventures or training schemes. 

Article 103 

Transport 

Co-operation and technical support will focus on the following priority areas : 

a) 

b) 

c) 

the  restructuring  and  modernisation,  in  a  sustainable  development  perspective,  of 
road,  railways,  port  and  airport  infrastructures  of  common  and  regional  interest 
linked  to  the  development  of  a  Trans-Euro-Mediterranean  Transport  Network,  in 
particular interconnections; 

the  establishment  and  enforcement  of  operating  standards  comparable  to  those 
prevailing in the Community; 

the upgrading of technical equipment to bring it up to Community standards for all 
modes of transport, in particular container traffic and trans-shipment; 

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d) 

e) 

f) 

the gradual easing of transit requirements; 

the  improvement  of  institutional  capacity  and  management  of  ports,  airports, 
railways and air traffic control, including co-operation between the relevant national 
bodies; 

the reinforcement of shipping safety and the prevention of maritime pollution, with 
specific  attention  to  the  maritime  transport  of  hydrocarbons,  as  well  as  the 
implementation of maritime security related measures; 

g) 

development in the field of urban transports. 

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Article 104 

Information Society and Electronic Communications 

Co-operation shall focus on : 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

a  dialogue  on  issues  related  to  the  different  aspects  of  the  information  society, 
including e-strategy, electronic communications policies and regulation; 

standardisation,  conformity 
communications technologies; 

testing  and  certification  of 

information  and 

interconnection  and  interoperability  of  European  Union  and  Syrian  networks  and 
services; 

planning  and  management  of  the  radio  frequency  spectrum  with  a  view  to  co-
ordinated  and  effective  use  of  radio  communications  in  the  Euro-Mediterranean 
region; 

dissemination  of  new  information  and  communications  technologies  including 
satellite technology and information services; 

promotion and implementation of joint projects for research, technical development 
or industrial applications in electronic communications and the information society; 

giving  Syrian  bodies  the  opportunity  to  participate  in  pilot  projects  and  European 
programmes  under  the  specific  arrangements  pertaining  to  them  in  the  sectors 
concerned. 

Article 105 

Energy 

Co-operation and technical support will focus on the following priority areas : 

a) 

b) 

development  of  new  gas  and  electricity  interconnections  with  a  view  to  improving 
the  security  of  supplies  within  the  Mashreq  region  and  further  developing  Trans-
Euro-Mediterranean energy networks; 

co-operation  for  improvement  of  safety  and  security  of  energy  infrastructures  and 
transmission networks including management of underground oil and gas reservoirs; 

co-operation for the upstream development of petroleum resources; 

technological  co-operation  in  the  refining  sector  and  harmonisation  of  petroleum  products 

quality norms; 

c) 

d) 

e) 

opening  of  energy  markets  and  development  of  effective  regulatory  frameworks 
including  unbundling,  independent  regulatory  bodies  with  a  view  to  ensuring  the 
well-functioning of the market and cost reflective energy pricing; 

technological  co-operation  in  the  field  of  international  standards  and  procedures, 
energy  policy  analysis  and  energy  balances  as  well  as  improvement  of  energy  data 
collection and management; 

promotion  of  renewable  energies  and  indigenous  energy  sources  as  well  as 
promotion of energy saving and energy efficiency measures, with specific emphasis 
on the building and transport sectors; 

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f) 

co-operation  on  updated  technologies  for  energy  production,  transmission  and 
distribution in order to reduce technical losses and increase efficiency. 

The parties shall establish together a more detailed outline for cooperation in the energy  

sector as appropriate. 

Priorities for co-operation in this sphere shall be: 

Article 106 

Tourism 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

1. 

2. 

improving the knowledge of the tourist industry and ensuring greater consistency of 
policies affecting tourism; 

promoting co-operation between regions and cities of neighbouring countries; 

improving information for tourists and the protection of their interests; 

highlighting the importance of the cultural heritage for tourism; 

ensuring that the interaction between tourism and the environment is maintained in a 
sustainable manner; 

making tourism more competitive through support for increased professionalism, in 
particular with regard to hotel management; 

exchanging information on planned tourism development and promotion of planned 
developments  in  the  Tourism  sector,  including  on  tourism  marketing  projects, 
tourism shows, exhibitions, conventions and publications. 

Article 107 

Customs 

The Parties shall promote and facilitate cooperation between their respective customs 
services  in  order  to  ensure  that  the  objectives  set  out  in  Article  36  are  attained, 
particularly  in  order  to  guarantee  the  simplification  of  customs  procedures  and  to 
facilitate legitimate trade while retaining effective control capabilities. 

Without  prejudice  to  the  cooperation  established  by  this  Agreement,  mutual 
assistance between the administrative authorities in customs matters will be given in 
conformity  with  Protocol  7:  Mutual  Assistance  between  Administrative  Authorities 
on customs matters. 

3. 

The cooperation shall give rise among other things, to: 

a) 

b) 

c) 

the  provision  of  technical  assistance,  including  where  appropriate,  the 
organisation of seminars and the placement of trainees; 

the development and sharing of best practices; and 

the  improvement  and  simplification  of  customs  matters  relating  to  market 
access and rules of origin and the customs procedures related to them. 

Article 108 

Co-operation on statistics 

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The main objective of co-operation in this field will be to harmonise methodology in order to 
create a reliable basis for handling statistics on trade, population, migration and generally all 
the  fields  which  are  covered  by  this  agreement  and  lend  themselves  to  the  establishment  of 
statistics. 

CO-OPERATION IN SOCIAL AND CULTURAL MATTERS 

TITLE VII 

CHAPTER 1 

SOCIAL DIALOGUE 

Article 109 

1. 

2. 

A  regular  dialogue  shall  be  established  between  the  Parties  on  all  social  issues  of 
mutual interest. 

This dialogue shall be used to seek ways and means to further progress as regards the 
movement  of  workers  and  the  equal  treatment  and  social  integration  of  Syrian  and 
EU citizens legally residing in their host countries. 

3. 

The dialogue shall focus on problems related to : 

a)  migrant communities' living and working conditions; 

b)  migration; 

c) 

projects and programmes on equality of treatment for Syrian and Community 
nationals,  reciprocal  awareness  of  cultures  and  civilisations,  the  development 
of tolerance and the elimination of discrimination. 

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CHAPTER 2 

SOCIAL CO-OPERATION ACTIONS 

Article 110 

1. 

2. 

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

To consolidate social co-operation between the parties, actions and programmes shall 
be undertaken on any issue of interest to them. 

Priority shall be given to the following actions : 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

reduction of migratory pressures through job creation and the development of 
training in areas with a high emigration rate; 

reintegration of repatriated illegal immigrants; 

promotion of the role of women in social and economic development; 

developing  Syrian  family  planning  and  mother  and  child  protection 
programmes; 

improving the social security system; 

improving the healthcare system; 

improving living conditions in underprivileged, densely populated areas; 

exchange programmes for mixed groups of young Syrians and Europeans, with 
a view to promoting mutual cultural understanding and tolerance. 

Co-operation  projects  may  be  co-ordinated  with  the  Member  States  and  the  appropriate 
international organisations. 

Article 111 

Article 112 

A  working  group  may  be  set  up  by  the  Association  Council  by  the  end  of  the  first  year 
following entry into force of this Agreement. Its brief shall be to evaluate the implementation 
of the provisions of chapters 1 and 2 on an ongoing basis. 

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CHAPTER 3 

CULTURAL CO-OPERATION 

Article 113 

1. 

2. 

3. 

4. 

To  foster  mutual  knowledge  and  understanding,  and  in  line  with  projects  that  have 
already  been  developed  along  these  lines,  the  Parties  shall  undertake,  in  a  spirit  of 
mutual  cultural  respect,  to  establish  firm  foundations  for  a  continuing  cultural 
dialogue and to promote long-term cultural co-operation in any appropriate field of 
activity. 

The  Parties  shall,  in  identifying  co-operation  projects  and  programmes  and  joint 
to  self-expression  and 
activities,  give  special  attention 
communication  skills  using  written  and  audio-visual  media,  to  heritage  protection, 
restoration, and conservation issues and to the dissemination of culture. 

to  young  people, 

The  Parties  shall  seek  ways  to  encourage  Syrian  participation  in  Community 
initiatives in this sector. 

The Parties shall promote activities of mutual interest in the field of information and 
communications. 

COOPERATION IN THE FIELDS OF JUSTICE, MIGRATION, AND THE FIGHT 
AGAINST ORGANISED CRIME 

TITLE VIII 

Article 114 

Reinforcement of Institutions and Rule of Law 

In their co-operation in the areas addressed under this title, the Parties will attach particular 
importance to the consolidation of the rule of law and the reinforcement of institutions at all 
levels in the areas of administration in general, and law enforcement and the working of the 
justice system in particular. 

Co-operation  in  the  field  of  Justice  will  focus  in  particular  on  the  independence  of  the 
judiciary, the improvement of its effectiveness and training in the legal professions. 

Article 115 

Co-operation on Migration 

1. 

2. 

The  Parties  reaffirm  the  importance,  which  they  attach  to  a  joint  management  of 
migration flows between their territories. With a view to strengthening co-operation 
between them, they shall establish a comprehensive dialogue on all migration-related 
issues,  including  illegal  migration,  smuggling  and  trafficking  in  human  beings,  as 
well as the inclusion of the migration concerns in the national strategies for economic 
and social development of the areas from which migrants originate. 

Co-operation  shall  be  based  on  a  specific  needs  assessment  conducted  in  mutual 
consultation between the Parties and be implemented in accordance with the relevant 
legislation  in  force  in  the  Community,  in  Member  States  and  in  Syria.  It  will,  in 
particular, focus on: 

a) 

the root causes of migration; 

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b) 

c) 

d) 

e) 

f) 

g) 

the admission rules and rights and status of persons admitted, fair treatment of 
lawfully  residing  non-nationals,  education  and  training  and  measures  against 
racism and xenophobia; 

the field of visas, on issues identified as being of mutual interest; 

the  field  of  border  controls,  on  issues  related  to  organisation,  training,  best 
practices  and  other  operational  measures  on  the  ground  and  where  relevant, 
equipment, while being aware of the potential dual use of such equipment; 

the  establishment  of  an  effective  and  preventive  policy  against  illegal 
immigration, smuggling of migrants and trafficking in human beings including 
the issue of how to combat networks of smugglers and traffickers and how to 
protect the victims of such trafficking; 

the development and implementation of national legislation and practices with 
regard to persons in need of international protection, with a view to satisfying 
the provisions of applicable international instruments; 

the return, under humane and dignified conditions, of persons residing illegally 
including the promotion of their voluntary return, and the readmission of such 
persons , in accordance with paragraph 3. 

3. 

In the framework of the cooperation to prevent and control illegal immigration, the 
Parties also agree to readmit their illegal migrants. To this end : 

Syria shall readmit any of its nationals illegally present on the territory of a Member 
State  of  the  European  Union,  upon  request  by  the  latter  and  without  further 
formalities, after the accomplishment of the necessary identification procedures; 

and  each  Member  State  of  the  European  Union  shall  readmit  any  of  its  nationals 
illegally  present  on  the  territory  of  Syria,  upon  request  by  the  latter  and  without 
further  formalities,  after  the  accomplishment  of  the  necessary  identification 
procedures. 

The  Member  States  of  the  European  Union  and  Syria  will  provide  their  nationals  with 
appropriate identity documents and will extend to them the administrative facilities necessary 
for such purposes. 

The Parties agree to conclude, upon request and as soon as possible, an agreement regulating 
specific obligations on readmission, including the readmission of nationals of other countries 
and stateless persons. 

Article 116 

Money-laundering 

1. 

2. 

The Parties agree on the necessity of making every effort and co-operating in order 
to prevent the use of their financial systems for laundering of proceeds from criminal 
activities  in  general  and  from  offences  related  to  illicit  drugs  and  psychotropic 
substances in particular. 

Co-operation  in  this  area  may  include  administrative  and  technical  assistance  with 
the purposes to develop the implementation of regulations and efficient functioning 
of  mechanisms  to  combat  money  laundering  in  line  with  accepted  international 

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1. 

2. 

3. 

1. 

2. 

3. 

standards,  including  the  recommendations  of  the  Financial  Action  Task  Force 
(FATF). 

Article 117 

Cooperation on Illicit Drugs 

Within  their  respective  powers  and  competences,  the  Parties  shall  co-operate  to 
ensure  a  balanced  approach  through  effective  co-ordination  between  the  competent 
authorities  including  from  the  health,  justice  and  interior  sectors,  with  the  aim  of 
reducing  the  supply,  trafficking  and  demand  of  illicit  drugs  as  well  as  a  more 
effective control of illicit trafficking in chemical precursors. 

The Parties shall agree on means of co-operation to attain these objectives. Actions 
shall  be  based  on  commonly  agreed  principles  along  the  lines  of  the  relevant 
international conventions, the political declaration and the Special Declaration on the 
guidelines  to  reduce  drugs  demand,  approved  by  the  United  Nations  General 
Assembly Special Session on Drugs 1998. 

The  co-operation  between  the  Parties  shall  comprise  technical  and  administrative 
assistance  in  particular  in  the  following  areas:  drafting  of  national  legislation  and 
policies;  establishment  of  national  institutions  and  information  centres;  training  of 
personnel; drug related research; and the prevention of diversion of precursors used 
for  the  illicit  manufacture  of  drugs  and  psychotropic  substances.  The  Parties  may 
agree to include other areas. 

Article 118 

Cooperation on Organised Crime 

The  Parties  agree  to  cooperate  in  order  to  prevent  and  fight  organised  crime,  in 
particular  in  the  following  fields:  human  trafficking;  falsification  of  documents; 
exploitation for sexual purposes; corruption; the counterfeit of financial instruments; 
the  illicit  traffic  of  prohibited,  counterfeited  or  pirated  products  and  of  illegal 
transactions  concerning  in  particular  industrial  refuse  or  radioactive  material;  the 
trafficking of firearms and explosives; computer criminality; stolen cars. 

The Parties shall cooperate closely in order to establish appropriate mechanisms and 
standards. 

Technical and administrative co-operation in this field will include training and the 
strengthening  of  the  effectiveness  of  the  authorities  and  structures  responsible  for 
fighting  and  for  preventing  criminality  and  the  formulation  of  measures  for  crime 
prevention. 

TITLE IX 

COOPERATION ON COUNTER-TERRORISM 

Article 119 

The  Parties  agree  to  co-operate  in  the  prevention  and  suppression  of  acts  of  terrorism  in 
accordance with international conventions, relevant UN resolutions and with their respective 
legislation and regulations. They shall do so in particular: 

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1. 

2. 

3. 

in  the  framework  of  the  full  implementation  of  Resolution  no.  1373  of  the  UN 
Security  Council  and  other  relevant  UN  resolutions,  and  applicable  international 
conventions and instruments; 

by exchange of information on terrorist groups and their support networks, by mutual 
agreement and in accordance with international and national law; 

by exchange of views on means and methods used to counter terrorism, including in 
technical fields and training, and by exchange of experiences in respect of terrorism 
prevention. 

TITLE X 

FINANCIAL CO-OPERATION 

Article 120 

In  order  to  achieve  the  objectives  of  this  Agreement  and  to  support  Syria  in  the 
implementation of reforms necessary to take full advantage of this new framework, financial 
co-operation  for  Syria  will  be  implemented  in  accordance  with  the  appropriate  Community 
financial procedures and resources. 

These procedures shall be agreed by both Parties using the most appropriate instruments. 

In  addition  to  the  areas  covered  by  Titles  VI  and  VIII  of  the  Agreement,  financial  co-
operation shall focus on : 

a) 

b) 

c) 

d) 

e) 

promoting reforms designed to modernise the economy and the administration; 

upgrading economic infrastructure; 

promoting private investment and job-creating activities; 

responding to the economic repercussions of the gradual introduction of a free trade 
area, notably by upgrading and restructuring industry; 

accompanying the policies implemented in the social sector. 

Article 121 

In  the  framework  of  the  existing  Community  financial  instruments  aimed  at  supporting  the 
structural  adjustment  programmes  in  the  Mediterranean  countries,  and  in  close  co-operation 
with  the  Syrian  authorities  and  other  donors,  particularly  with  other  international  financial 
institutions,  the  Community  shall  examine  suitable  ways  of  supporting  structural  policies 
carried  out  by  Syria  to  restore  financial  equilibrium  in  the  main  financial  aggregates  and 
encourage the creation of an economic environment conducive to increased growth, while at 
the same time improving the social well-being of the population. 

Article 122 

In  order  to  ensure  that  a  co-ordinated  approach  is  adopted  to  any  extraordinary  macro-
economic  and  financial  problems  that  might  arise  as  a  result  of  the  implementation  of  this 
Agreement,  the  Parties  shall  use  the  regular  economic  dialogue  provided  for  in  Title  VI  to 
give  particular  attention  to  monitoring  trade  and  financial  trends  in  relations  between  the 
Community and Syria. 

EN 

TITLE XI 

62 

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INSTITUTIONAL, GENERAL AND FINAL PROVISIONS 

Article 123 

An Association Council is hereby established which as a rule shall meet at Ministerial level 
every  second  year  and  when  circumstances  require,  at  the  initiative  of  its  President  and  in 
accordance with the conditions laid down in its rules of procedure. 

It  shall  review  the  progress  made  in  the  implementation  of  this  Agreement  and  in  the 
cooperation  to  support  Syrian  reform  and  development  efforts.  It  shall  also  examine  any 
major  issues  arising  within  the  framework  of  this  Agreement  including  its  economic  and 
social impact and any other bilateral or international issues of mutual interest. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

1. 

Article 124 

The Association Council shall consist of the members of the Council of the European 
Union and members of the European Commission, on the one hand, and members of 
the Government of Syria, on the other. 

Members  of  the  Association  Council  may  arrange  to  be  represented  in  accordance 
with the provisions laid down in its rules of procedure. 

The Association Council shall establish its rules of procedure. 

The Association Council shall be presided in turn by a member of the Council of the 
European Union and a member of the Government of Syria, in accordance with the 
provisions laid down in its rules of procedure. 

Article 125 

The  Association  Council  shall,  for  the  purpose  of  attaining  the  objectives  of  the 
Agreement, have the power to take decisions in the cases provided for therein. 

The  decisions  taken  shall  be  binding  on  the  Parties  which  shall  take  the  measures 
necessary to implement the decisions taken. The Association Council may also make 
appropriate recommendations. 

It  shall  draw  up  its  decisions  and  recommendations  by  agreement  between  the  two 
Parties. 

Article 126 

Subject  to  the  powers  of  the  Council,  an  Association  Committee  is  hereby 
established which shall be responsible for the implementation of the Agreement. 

The  Association  Council  may  delegate  to  the  Association  Committee,  in  full  or  in 
part, any of its powers. 

Article 127 

The  Association  Committee,  which  shall  meet  at  official  level,  shall  consist  of 
representatives of the Council of the European Union and of the Commission of the 
European Communities, on the one hand, and of representatives of the Government 
of Syria, on the other. 

2. 

The Association Committee shall establish its rules of procedure. 

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63 

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3. 

1. 

2. 

The  Association  Committee  shall  be  presided  in  turn  by  a  representative  of  the 
European Commission and by a representative of the Government of Syria. 

Article 128 

The  Association  Committee  shall  have  the  power  to  take  decisions  for  the 
management  of  the  Agreement  as  well  as  in  the  areas  in  which  the  Council  has 
delegated its powers to it. 

It shall draw up its decisions by agreement between the two Parties. These decisions 
shall be binding on the Parties which shall take the measures necessary to implement 
the decisions taken. 

Article 129 

The  Association  Council  will  establish  any  Working  Group  or  Body  necessary  for  the 
implementation of the Agreement, and no later than six months after the application of Titles 
II to V, establish a Body as referred to in Title V, Chapter II, Article 76. 

The  Association  Council  shall  take  all  appropriate  measures  to  facilitate  co-operation  and 
contacts between the European Parliament and the Syrian People's Assembly. 

Article 130 

Article 131 

Each  of  the  Parties  may  refer  any  question  on  the  interpretation  and  application  of  this 
Agreement to the Association Council  except for  matters  covered  by  Title  V  relating  to  the 
Settlement of Trade Disputes for Titles II to IV. 

Article 132 

Nothing in the Agreement shall prevent a Party from taking any measures: 

a) 

b) 

c) 

which it considers necessary to prevent the disclosure of information contrary to its 
essential security interests; 

which relate to the production of, or trade in, arms, munitions or war materials or to 
research,  development  or  production  indispensable  for  defence  purposes,  provided 
that such measures do not impair the conditions of competition in respect of products 
not intended for specifically military purposes; 

which  it  considers  essential  to  its  own  security  in  the  event  of  serious  internal 
disturbances  affecting  the  maintenance  of  law  and  order,  in  time  of  war  or  serious 
international tension constituting threat of war or in order to carry out obligations it 
has accepted for the purpose of maintaining peace and international security. 

Article 133 

In  the  fields  covered  by  this  Agreement  and  without  prejudice  to  any  special  provisions 
contained therein: 

a) 

the arrangements applied by Syria in respect of the Community shall not give rise to 
any discrimination between the Member States, their nationals or their companies or 
firms; 

EN 

64 

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b) 

the arrangements applied by the Community in respect of Syria shall not give rise to 
discrimination between Syrian nationals or its companies or firms. 

As regards direct taxation, nothing in the Agreement shall have the effect of: 

Article 134 

a) 

b) 

c) 

1. 

2. 

extending  the  fiscal  advantages  granted  by  either  Party  in  any  international 
agreement or arrangement by which it is bound; 

preventing  the  adoption  or  application  by  either  Party  of  any  measure  aimed  at 
preventing the avoidance or evasion of taxes; 

opposing  the  right  of  either  Party  to  apply  the  relevant  provisions  of  its  tax 
legislation  to  taxpayers  who  are  not  in  identical  situations,  in  particular  as  regards 
their place of residence. 

Article 135 

The  Parties  shall  take  any  general  or  specific  measures  required  to  fulfil  their 
obligations under the Agreement. They shall see to it that the objectives set out in the 
Agreement are attained. 

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

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

Article 136 

Approximation of laws 

The Parties shall use their best endeavours to approximate their respective legislation in order 
to facilitate the implementation of this Agreement. 

Article 137 

Protocols 1 to 8 and Annexes I to VIII shall form an integral part of this Agreement. 

Declarations  and  exchanges  of  letters  shall  appear  in  the  Final  Act,  which  shall  form  an 
integral part of this Agreement. 

Article 138 

For the purpose of this Agreement the term "Parties" shall mean Syria on the one part and the 
Community, or the Member States, or the Community and the Member States, in accordance 
with their respective powers, on the other part. 

EN 

65 

   EN 

 
The Agreement is concluded for an unlimited period. 

Article 139 

Each of the Parties may denounce the Agreement by notifying the other Party. The Agreement 
shall cease to apply six months after the date of such notification. 

Article 140 

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaties 
establishing the European Community are applied and under the conditions laid down in those 
Treaties and, on the other hand, to the territory of Syria. 

Article 141 

This  Agreement,  drawn  up  in  duplicate  in  the  Arabic,  Bulgarian,  Spanish,  Czech,  Danish, 
German, Estonian, Greek, English, French, Italian, Latvian, Lithuanian, Hungarian, Maltese, 
Dutch, Polish, Portuguese, Romanian, Slovak, Slovene, Finnish, and Swedish languages, each 
of these texts being equally authentic, shall be deposited with the General Secretariat of the 
Council of the European Union. 

1. 

2. 

1. 

Article 142 

This  Agreement  will  be  approved  by  the  Parties  in  accordance  with  their  own 
procedures.  This  Agreement  shall  enter  into  force  on  the  first  day  of  the  second 
month following the date on which the Parties notify each other that the procedures 
referred to in this paragraph have been completed. 

Upon  its  entry  into  force  this  Agreement  shall  replace  the  Agreement  between  the 
European  Economic  Community  and  Syria,  and  the  Agreement  between  the 
European Coal and Steel Community and Syria, signed in Brussels on 18.1.1977. 

Article 143 

Provisional Application 

Notwithstanding  article  142,  the  Community  and  Syria  agree  to  apply  Article  2, 
Articles  7  to  42  (Title  II:  Free  movement  of  goods),  Articles  61  and  63  (Payments 
and capital movements), Articles 64 to  73 (Competition, Government procurement, 
and Other Economic Matters), Articles 74 to 89 (Title V: Dispute settlement), Article 
97  (Industrial  co-operation),  Article  99  (Standards,  Technical  Regulation,  and 
Conformity  Assessment  Procedures),  Article  100  (Cooperation  on  intellectual, 
industrial and commercial property rights), Article 101 (Financial Services), Article 
102  (Agricultural  and  fisheries),  Article  107  (Customs  co-operation),  Article  120, 
Articles 132 to 138, and Articles 140 and 141 (Title XI: Institutional, General, and 
Final Provisions), from the first day of the third month following the date on which 
the  Community  and  Syria  have  notified  each  other  of  the  completion  of  the 
procedures  necessary  for  this  purpose.  Notifications  shall  be  sent  to  the  Secretary 
General  of  the  Council  of  the  European  Union,  who  shall  be  the  depository  of  this 
agreement. 

2. 

The  Co-operation  Council  set  up  under  the  Co-operation  Agreement  between  the 
European Economic Community and the Syrian Arab Republic signed on 18 January 
1977 shall perform mutatis mutandis its duties until the Association Council and the 

EN 

66 

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Association  Committee  provided  for  in  Title  XI  of  the  Association  Agreement  are 
created. 

During  the  provisional  application  of  the  above-mentioned  Articles,  and  where 
appropriate,  reference  to  the  “Association  Council”  and  to  “the  Association 
Committee”  shall  be  construed  as  reference  to  the  Co-operation  Council  and  the 
Committees established by it. 

3. 

Where in accordance with paragraph 1, a provision of this Agreement is applied by 
the Parties pending its entry into force, any reference in such provision to the date of 
entry into force of this Agreement shall be understood to be made to the date from 
which the Parties agree to apply that provision in accordance with paragraph 1. 

EN 

67 

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Joint Declaration pertaining to the entire Agreement 

The Parties, while developing their relations on the basis of this Agreement, reiterate their full 
commitment to respect the principles and purposes of the Charter of the United Nations, and 
agree to work together in order to achieve a just and comprehensive peace in the Middle East 
in  accordance  with  the  Madrid  Terms  of  Reference  and  United  Nations  Security  Council 
resolutions 242 and 338, and to pursue the creation in the region of a zone free of all weapons 
of mass destruction, nuclear, biological and chemical, and turn it into a region of stability and 
prosperity. 

Declaration by the European Community relating to Article 64 

The  Community  declares  that,  in  the  context  of  the  interpretation  of  Article  64(1),  it  will 
assess any practice contrary to that Article on the basis of the criteria resulting from the rules 
contained  in  Articles  81  and  82  of  the  Treaty  establishing  the  European  Community, 
including secondary legislation. 

Joint Declaration on Article 64 

The Parties recognise that Syria plans to write its own competition law. While writing its law, 
Syria  will  take  into  consideration  the  rules  of  competition  developed  within  the  European 
Union.  The  implementation  of  the  administrative  methods  of  co-operation  mentioned  in 
Article 64 paragraph 2 is conditioned at the entry into force of the Syrian competition law and 
of the taking up of the duties of the authority responsible for its application. 

Joint Declaration concerning Cooperation on Migration (Article 115 (f)) 

The  Parties  agree  that  in  implementing  Article  115  (f)  of  Title  VIII,  they  will  ensure  the 
respect  of  the  principle  of  “non-refoulement”  without  prejudice  to  the  provisions  of  United 
Nations General Assembly Resolution 194 (1948). 

Joint Declaration on Article 113 

The  Parties  declare  that  special  attention  will  be  given  to  the  protection,  conservation  and 
restoration of archeological sites and monuments. 

The Parties agree to cooperate in seeking to ensure the return of archeological artifacts related 
to  the  Syrian  cultural  heritage  unlawfully  removed  from  the  country  in  line  with  the 
International  Convention  on  the  Means  of  Prohibition  and  Prevention  of  the  Illicit  Import, 
Export and Transfer of Ownership of Cultural Property (UNESCO 1970). 

EN 

68 

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Joint Declaration on the EC Generalised System of Preferences 

The  preferences  granted  under  this  Agreement  include  the  preferences  granted  under  the 
European  Community  Generalised  System  of  Preferences  (GSP)  as  laid  down  in  Council 
Regulation  (EC)  No 980/2005  of 27 June  2005  applying  a  scheme  of  generalised  tariff 
preferences until  31  December 2008,  as  extended  for  the  period  from  1  January  2009  to  31 
December 2011 by Council Regulation (EC) No 732/2008 of 22 July 2008 

EN 

69 

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LIST OF PROTOCOLS AND ANNEXES 

Protocol 1 : 

Protocol 2 : 

Protocol 3 : 

Protocol 4 : 

Arrangements  applicable  to  imports  into  the  Community  of  agricultural 
products originating in Syria. 

Arrangements  applicable  to  imports  into  Syria  of  agricultural  products 
originating in the Community. 

Arrangements  applicable  to  imports  into  the  Community  of  fisheries 
products originating in Syria. 

Arrangements  applicable  to  imports  into  Syria  of  fisheries  products 
originating in the Community. 

Protocol 5 : 

Arrangements applicable to Processed Agricultural Products. 

Protocol 6 : 

Concerning  the  definition  of  the  concept  of  'originating  products'  and 
methods of administrative co-operation. 

Protocol 7 : 

Mutual assistance between administrative authorities on custom matters. 

Protocol 8 : 

List of Products covered by Article 13.7. 

Annex I : 

Syrian tariff schedule referred to in article 9.3. 

Annex II : 

List of products referred to in articles 11 and 16. 

Annex III : 

Annex IV : 

Community  reservation  list  referred  to  in  Article  43.1.b  (Right  of 
establishment). 

Syrian  reservation 
establishment). 

list  referred 

to 

in  Article  43.2.a  (Right  of 

Annex V : 

Modalities for cooperation referred to in Article 64.2 (Competition). 

Annex VI : 

Intellectual, industrial and commercial property rights. 

Annex VII : 

Government Procurement: Rules of Procedure, List of Entities and other 
documents. 

Annex VIII : 

Dispute Settlement (Title V): Rules of Procedure and Code of Conduct. 

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FINANCIAL STATEMENT 

BUDGET HEADING: 

Chapter 10 – Agricultural Duties 

Fichefin/08/35192 
6.0.2005.1-2008 
DDG/EM/mlc 

DATE: 27/11/2008 

APPROPRIATIONS: 
APB 2009 
1.403,5 Mio €  

TITLE: 
Euro-Mediterranean Agreement establishing an Association between the European Community and its 
Member States of the one part, and the Syrian Arab Republic of the other part 
LEGAL BASIS: 
Article 310 of the Treaty, in conjunction with Article 300 (2) and Article 300 (3) 
AIMS: 
To establish an Association between the Community and the Syrian Arab Republic 
FINANCIAL IMPLICATIONS 
CURRENT 
FINANCIAL 
YEAR 
2008 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
2009 
(EUR million) 

12 MONTH 
PERIOD 

(EUR million) 

1. 

2. 

3. 

4. 

5. 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

- 

- 

- 

- 

- 

2010 
- 
- 

2011 
- 
- 

- 

- 0,3 

2012 
- 
- 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

YES NO 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

YES NO 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES NO 
YES NO 

OBSERVATIONS: 
The proposal concerns the establishment of an Association Agreement on trade of agricultural products. As 
regards own resources, it is estimated that this proposal may result in a reduction of these resources by 
approximately 0,3 Mio € (Net amount after deduction of collection costs). 

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