Source: EURLEX
Language: en
Format: md

29. 11.91 Official Journal of the European Communities N o C 309/7

F R A M E W O R K A G R E E M E N T

for cooperation between the European Economic Community and the Republic of Paraguay

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part,

THE GOVERNMENT OF THE REPUBLIC OF PARAGUAY,

of the other part,

CONSIDERING the links of friendship between the Member States of the European Economic
Community, hereinafter referred to as 'the Community', and the Republic of Paraguay, hereinafter
referred to as 'Paraguay',

REAFFIRMING the importance they attach to the principles of the United Nations Charter, to democratic
values and to respecting human rights,

TAKING ACCOUNT of the points reaffirmed in the Rome Declaration of 20 December 1990, and the
Luxembourg Communique concluded on 27 April 1991 between the Community, its Member States and
the countries of the Rio Group,

CONSIDERING the readiness of the Community and its Member States to help address the social and
economic problems confronting Paraguay as it returns to democracy,

TAKING ACCOUNT of their mutual interest in establishing contractual links in order to develop
extensive cooperation in areas which are of key importance to social and economic progress, to step up and
diversify trade and encourage the flow of investment,

TAKING account of the Community's new policy on cooperation with the developing countries of Latin
America,

MINDFUL of the importance of securing the participation in cooperation of the individuals and bodies
with a direct interest in the matter, particularly economic operators and the bodies which represent them,

"WHEREAS Paraguay is engaged in a vast regional integration process together with Argentina, Brazil and
Uruguay in the Southern Cone Common Market, hereinafter referred to as 'Mercosur', and whereas the
Community intends to establish cooperation with each of those countries and with the new regional entity,
aimed at providing support for the said integration process;

TAKING ACCOUNT of their membership or future membership of the General Agreement on Tariffs
and Trade (GATT) and of the need to uphold and reinforce the rules for free and unhampered international trade,

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

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

THE REPUBLIC OF PARAGUAY,

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

HAVE AGREED AS FOLLOWS:

No C 309/8 Official Journal of the European Communities 29. 11. 91

_Article 1_

Democratic basis for cooperation

Cooperation ties between the Community and Paraguay
and this Agreement in its entirety shall be based on
respect for the democratic principles and human rights
which inspire the domestic and external policies of both
the Community and Paraguay.

_Article 2_

Support for democratization

1. The Contracting Parties consider the support that
the Community can offer towards the consolidation of
democracy in Paraguay to be crucial. In this regard, the
Community reaffirms its readiness to help strengthen the
democratic institutions of Paraguay to the extent of its
powers and its ability.

2. The Parties likewise agree to encourage, by appropriate measures, the return to Paraguay of persons
obliged to leave it on political grounds.

_Article 3_

Economic cooperation

1. The Contracting Parties, taking into account their
mutual interest and long and medium-term economic
objectives, undertake to establish economic cooperation
of the widest possible scope. The aims of such
cooperation shall be, in particular:

(a) to promote diversification of the economy of
Paraguay;

(b) to strengthen and diversify the economic links
between the Contracting Parties;

(c) to contribute to the development of their economies
and the improvement of their standards of living;

(d) to open up new markets and new sources of supply;

(e) to create conditions which favour the development
of the employment market;

(f) to encourage industrial and trade cooperation,
particularly among small and medium-sized enterprises;

(g) to assist the integration of Paraguay into Mercosur.

2. "Without excluding any field from the outset, the
Contracting Parties shall determine in which fields there
will be economic and industrial cooperation between
them, having regard to their respective aims, their mutual
interest and their own ability.

Taking account of the above, cooperation will centre on
the following:

(a) services, including financial services, and tourism,
transport and telecommunications;

(b) intellectual and industrial property, regulations and
standards;

(c) the management of natural resources and, in
particular, the conservation and efficient use of
forest resources, including reafforestation;

(d) environmental protection;

(e) agriculture;

(f) industry, mining and energy;

(g) economic and monetary affairs.

3. Provision shall be made for the following, in
particular:

(a) conferences and seminars;

(b) trade and industrial missions;

(c) exploratory missions and missions concerned with
investment and the promotion of joint ventures;

(d) visits and meetings between economic operators;

(e) the organization of business weeks and general and
sector-based fairs;

(f) the provision of the services of experts;

(g) specific studies;

(h) consultancy and technical assistance services;

(i) cooperation between financial institutions;

(j) the conclusion between the Member States of the
EEC and Paraguay of double taxation agreements;

(k) the exchange of appropriate information, particularly
access to existing or future databases;

29. 11.91 Official Journal of the European Communities No C 309/9

(1) the creation of networks of business people,
particularly industrialists.

_Article 4_

Agricultural cooperation

1. Paraguay and the Community shall establish
cooperation in agriculture. To this end they shall
examine in a spirit of cooperation and good will:

(a) the opportunities for increasing their trade in agricultural products;

(b) health, plant health and environmental measures and
their effects, to prevent them hindering trade, while
taking into account the two Parties' legislation in this
field.

2. The Community shall contribute to Paraguay's
efforts to diversify its exports of agricultural products.

_Article 5_

Industrial cooperation

1. The Contracting Parties agree to promote the
expansion and diversification of Paraguay's production
in the industrial and service sectors, directing their
cooperation activities at small and medium-sized enterprises, in particular, and encouraging steps to facilitate
access on the part of those enterprises to sources of
capital, markets and the appropriate technology. These
steps may include the joint establishment of suitable
machinery and institutions.

2. The Contracting Parties likewise agree to consider
the possibility of promoting projects which could help
Paraguayan industry to integrate smoothly into
Mercosur.

_Article 6_

Cooperation regarding the environment

1. The Contracting Parties undertake to cooperate on
the improvement and protection of the environment in
order to address the issues of water, soil and air
pollution, erosion, desertification and deforestation, and
the excessive exploitation of natural resources. They shall
also encourage the productive conservation of the forest
and aquatic flora and fauna, of watercourses and the
conservation of tropical forests and national parks.

2. To this end, the Contracting Parties shall direct
their efforts as regards the environment towards the
following, in particular:

(a) the establishment and improvement of environmental
protection structures in the public and private

sectors;

(b) the development and improvement of laws, regulations and standards;

(c) research, training and information, and alerting
public opinion to the issues in question;

(d) the execution of studies and projects and the
provision of technical assistance;

(e) the organization of meetings, seminars, workshops,
conferences and visits among civil servants,
specialists, engineers, business people and others
fulfilling functions connected with the environment.

_Article 7_

Investment

The Contracting Parties agree:

(a) to promote, so far as their powers, rules and regulations and policies permit, an increase in mutually
beneficial investment;

(b) to improve further the favourable climate for mutual
investment by the Community Member States and
Paraguay, particularly through agreements for the
promotion and protection of such investment on the
basis of the principles of non-discrimination and
reciprocity.

_Article 8_

Cooperation on science and technology

1. The Contracting Parties agree to support the
promotion and development of Paraguay's scientific and
technological capabilities.

This aim will be pursued by fostering and promoting
cooperation of the widest possible scope between
specialist bodies or firms of both parties, in particular by
establishing ties between the research centres of both
parties in order to resolve jointly problems of mutual

concern.

2. Without excluding any area from the outset, the
Contracting Parties shall together determine the spheres
of their cooperation. These shall include the following,
in particular:

(a) strengthening research capabilities;

(b) developing and managing policy on science and
technology;

No C 309/10 Official Journal of the European Communities 29. 11. 91

(c) protection and improvement of the environment;

(d) promoting efficient use of natural resources in
particular forest resources;

(e) promoting regional integration and cooperation in
science and technology;

(f) disseminating information and expertise in science
and technology.

3. The Contracting Parties will facilitate and
encourage the introduction of measures aimed at
achieving the objectives of cooperation between them, in
particular:

(a) joint research projects between the parties' research
centres and other appropriate institutions;

(b) exchanges of scientific information, particularly
through seminars, workshops, conferences, etc.;

(c) support for the reintegration into Paraguay of
scientists, engineers and specialists.

_Article 9_

Most-favoured-nation treatment

1. The Contracting Parties shall grant each other, in
respect of their imports and exports of goods, mostfavoured-nation treatment on the basis of the General

Agreement on Tariffs and Trade.

_Article 10_

Temporary importation of goods

The Contracting Parties undertake to give consideration
to granting exemption from duties and taxes for goods
temporarily imported into their territory which are
covered by the relevant international agreements and are
intended for re-export.

_Article 11_

Trade cooperation

1. The Contracting Parties agree to develop and
diversify trade to the highest possible degree, taking into
account the economic situation of each of the Parties

and facilitating trade transactions between them as far as
possible.

2. The Contracting Parties agree to examine ways and
means of eliminating non-tariff barriers and, taking
account of the work done by international organizations,
they will commit themselves to a policy aimed at:

(a) making trade transactions between them as easy as
possible;

(b) cooperating bilaterally and multilaterally on issues of
common concern, including intellectual and
industrial property, origin-related designations,
commodities and manufactured and semi-manu
factured products;

(c) facilitating cooperation between their customs
services in spheres including vocational training, the
simplification of procedures and detection of
infringements of customs rules;

(d) taking each other's interests into account in relation
to access to resources, the processing of such
resources and market access for the products of the
Contracting Parties;

(e) bringing economic operators into closer contact in
order to diversify and increase current trade flows;

(f) examining, recommending and implementing trade
promotion measures in the interests of expanding
imports and exports;

(g) seeking each other's opinion as far as possible on
measures likely to have an adverse effect on trade
between them.

_Article 12_

Cooperation concerning government

1. The Contracting Parties shall cooperate in contributing to the rationalization and modernization of
government service at national and regional levels,
notably with regard to the restructuring of central
government.

2. To attain these objectives, the Contracting Parties
shall endeavour to promote, _inter alia:_

— seminars and training courses for civil servants and
the staff of public institutions and government
departments,

— improvement of the equipment of public institutions
and government departments.

_Article 13_

Cooperation on information, communication and culture

1. Cooperation between the Contracting Parties shall
encompass . information and communication, taking
account of the cultural dimension of their relations.

29. 11. 91 Official Journal of the European Communities No C 309/11

2. Such cooperation shall include the preservation of
historic and cultural objects.

_Article 14_

Training

1. Cooperation established within the framework of
the Agreement may include appropriate training.

2. Training will be targeted essentially at instructors
and teachers or supervisory staff already in positions of
responsibility in firms, government departments, public
services and other areas of economic and social activity.

3. The Contracting Parties shall consider the possibility of introducing specific training programmes which
help to strengthen Paraguay's democratic institutions.

_Article 15_

Public health

The Contracting Parties agree to cooperate in the field
of public health, with the aim of raising the standard of
living and quality of life, particularly in the most disadvantaged sectors. In the interests of attaining these aims,
the Parties undertake to conduct joint research, transfers
of technology, and interchanges of experience and
technical assistance, notably including measures relating
to the following:

— the management and administration of the
departments with responsibility for this field,

— the organization of scientific meetings and exchanges
of specialists,

— the undertaking of programmes of vocational
training,

— programmes and projects for the improvement of
health and social welfare in urban and rural areas.

_Article 16_

Drug abuse control

1. The Contracting Parties undertake, in conformity
with their respective legal provisions, to coordinate and
step up their efforts to prevent and reduce the
production, trafficking and consumption of drugs.

2. Such cooperation shall include the following:

— projects for training, education, health-promotion
and rehabilitation of addicts, including projects for
the reintegration of addicts into working life and
society,

— research programmes and projects,

— measures to encourage alternative economic activities,

— the exchange of all relevant information, including
that relating to money laundering.

3. Financing for the operations referred to may be
contributed by public and private institutions and
national, regional or international organizations, in
consultation with the Government of Paraguay and the
appropriate authorities of the Community and its
Member States.

_Article 17_

Tourism

The Contracting Parties shall, in accordance with their
laws, promote cooperation in tourism, which is to be
achieved through specific measures focusing on:

— exchanges of officials and experts dealing with
tourism, the interchange of information and statistics
relating to this field and the transfer of technology,

— the development of activities to stimulate tourist
traffic,

— the advancement of training schemes intended in
particular to support hotel operation and

management,

— joint participation in fairs and exhibitions aimed at
increasing tourist flows.

_Article 18_

Regional cooperation and integration

1. Cooperation between the Contracting Parties may
extend to action undertaken within the context of

cooperation or integration agreements with third
countries in the same region.

2. Without excluding any sphere of action, the
following shall be given particular consideration:

(a) cooperation on environmental issues at regional
level;

(b) development of intra-regional trade;

No C 309/12 Official Journal of the European Communities 29. 11.91

(c) the strengthening of regional institutions and support
for the introduction of common policies and activities;

(d) regional communications, notably waterways.

_Article 19_

Development cooperation

1. In order to consolidate and accelerate Paraguay's
economic and social development, the Community will
implement assistance operations in the context of the
Community programmes for developing countries.

2. Particular importance shall be attached to rural
development, notably integrated rural development, joint
training schemes, action aimed at improving self-sufficiency in food, employment, urban and rural housing
and promoting grass-root organizations.

_Article 20_

Resources for cooperation

In order to facilitate the achievement of the aims set out

in this Agreement, the Contracting Parties shall make
available, within the limits of their abilities and through
their own channels, the appropriate resources, including
financial resources.

_Article 21_

Joint Cooperation Committee

1. A Joint Cooperation Committee shall be established, consisting of representatives of the Community
and of Paraguay. It shall meet once a year, alternately in
Brussels and Asuncion, on a date and with an agenda
fixed by mutual agreement. Extraordinary meetings may
be convened with the consent of both parties.

2. The Joint Committee shall see to the proper functioning of the Agreement and shall examine all issues
arising from its application. In fulfilling this role, its main
functions shall be to:

(a) consider measures for developing and diversifying
trade, in accordance with the objectives of this
Agreement;

(b) exchange views on any points of common interest
regarding trade and cooperation, including future
programmes and the resources for them;

(c) make recommendations for promoting the expansion
of trade and stepping up intensified cooperation,
without neglecting the need to coordinate the
measures planned;

(d) in general terms, recommend solutions aimed at
helping to attain the objectives of this Agreement.

3. The Joint Committee may set up specialized
subcommittees and working parties to assist it in the
performance of its duties.

_Article 22_

Other agreements

1. Without prejudice to the provisions of the Treaties
establishing the European Communities, neither this
Agreement nor any action taken pursuant to it shall in
any way affect the powers of the Member States of the
Communities to undertake bilateral activities with

Paraguay in the field of economic cooperation with
Paraguay or, where appropriate, to conclude new
economic cooperation agreements with Paraguay.

2. Subject to the provisions of paragraph 1 concerning
economic cooperation, the provisions of this Agreement
shall replace the provisions of the agreements concluded
between the Member States of the Communities and

Paraguay where such provisions are either incompatible
with or identical to the provisions of this Agreement.

_Article 23_

Territorial application

This Agreement shall apply, on the one hand, to the
territories in which the Treaty establishing the European
Economic Community is applicable under the conditions
laid down by that Treaty and, on the other, to the
territory of the Republic of Paraguay.

_Article 24_

Future developments

1. The Contracting Parties may by mutual consent
expand this Agreement with a view to increasing the
levels of cooperation and supplementing them, each in
accordance with its laws, by means of agreements on
specific sectors or activities.

29. 11. 91 Official Journal of the European Communities No C 309/13

2. Within the framework of this Agreement, either of
the Contracting Parties may put forward suggestions for
widening the scope of cooperation, taking into account
the experience gained in its application.

_Article 25_

Entry into force and duration

1. This Agreement shall enter into force on the first
day of the month following the date on which the
Contracting Parties have notified each other of the
completion of the procedures necessary for this purpose.

2. This Agreement is concluded for a period of five
years. It shall be renewed on a yearly basis unless one of
the Contracting Parties denounces it six months before
the date of expiry.

_Article 26_

Annexes

The Annexes shall form an integral part of this
Agreement.

_Article 27_

Authentic languages

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

_ANNEX I_

Exchange of letters on maritime transport

_Letter 1_

Sir,

Please would you confirm your Government's agreement to the following:

'When the Agreement on cooperation between the European Economic Community and
Paraguay was signed, the Parties undertook to address in the appropriate manner issues
relating to the operation of shipping, particularly where the development of trade might be
hindered. Mutually satisfactory solutions on shipping will be sought, with due respect for the
principle of free and fair competition on a commercial basis.

It has likewise been agreed that such issues should also be discussed by the Joint Committee.'

Please accept, Sir, the assurance of our highest consideration.

_On behalf of the_
_Council of the European_ _Communities_

No C 309/14 Official Journal of the European Communities 29. 11. 91

_Letter 2_

Sirs,

I have the honour to confirm my Government's agreement to the following:

'When the Agreement on cooperation between the European Economic Community and
Paraguay was signed, the Parties undertook to address in the appropriate manner issues
relating to the operation of shipping, particularly where the development of trade might be
hindered. Mutually satisfactory solutions on shipping will be sought, with due respect for
the principle of free and fair competition on a commercial basis.

It has likewise been agreed that such issues should also be discussed by the Joint
Committee.'

Please accept, Sirs, the assurance of my highest consideration.

_For the_

_Government of the Republic of Paraguay_

_ANNEX II_

Unilateral declaration by the community on the Generalized System of Preferences

The European Economic Community hereby confirms the importance which it attaches to the Generalized
System of Preferences, set up by Resolution 21 (II) of the Second United Nations Conference on Trade
and Development.

The European Community is prepared to examine any suggestions put to it by Paraguay in order to enable
that country to make the best and widest possible use of the generalized preferences scheme which the
Community has implemented in accordance with the abovementioned Resolution.

In order to ensure that Paraguayan officials and business people are properly acquainted with the
Community scheme, the Commission will arrange information seminars in Paraguay.