Source: EURLEX
Language: en
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COMMISSION OF THE EUROPEAN COMMUNITIES

                          COM(93) 52 final

                          Brussels, 12 February 1993

                  Proposal for a

                     COUNCIL pension

              concerning the conclusion of
             a Framework Cooperation Agreement
   between the European Economic Community and the Republics of Costa
              Rica, El Salvador, Guatemala,
              Honduras, Nicaragua and Panama

             (presented by the Commission)

```

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_**~1**_

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                EXPLANATORY MEMORANDUM

1. By its decision of 18 November 1992, the Council authorized the
  Commission to open negotiations with the Republics of Costa Rica, El
  Salvador, Guatemala, Honduras, Nicaragua and Panama for a Framework
  Cooperation Agreement, and adopted directives to that end.

2. Negotiations took place over three sessions held on 17 and 18 December
  1992 and on 21 January 1993, and concluded, on 22 January 1993, with
  the initialling of an Agreement between the European Economic Community
  and the Republics of Costa Rica, El Salvador, Guatemala, Honduras,
  Nicaragua and Panama. The following texts are annexed to the Agreement
  and form an integral part of it : an exchange of letters concerning
  maritime transport ; a unilateral declaration by Central America
  concerning Article 8 ; a unilateral declaration by the Community
  concerning Article 32 and unilateral declarations by both the Community
  and Central America concerning the special concessions granted to the
  Central America under Council Regulation n" 3900/91 of 16 December 1991.

3. The Commission considers the initialled text to be in line with the

  negotiating directives adopted by the Council.

4. Because the legal basis for the Agreement includes Article 235 of the
  Treaty in addition to Article 113, Parliament must be consulted.

5. With a view to the signing and conclusion of this Framework Cooperation
  Agreement between the European Economic Community and the Republics of
  Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, the
  Commission proposes that the Council adopt the attached draft Decision.

```

```
                  Proposal for a

                 COUNCIL DECISION

              concerning the conclusion of
            a Framework Cooperation Agreement
   between the European Economic Community and the Republics of Costa
              Rica, El Salvador, Guatemala,
             Honduras, Nicaragua and Panama

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 113 and 235 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the Community, for the attainment of its aims in the sphere of
external economic relations, should approve the Framework Cooperation
Agreement with the Republics of Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua and Panama;

HAS DECIDED AS FOLLOWS:

                   Art icle 1

The Framework Cooperation Agreement between the European Economic Community
and the Republics of Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama is hereby approved on behalf of the Community.

The text of the Agreement is annexed to this Decision.

                   Art icle 2

The President of the Council shall give the notification provided for in
Article 37 of the Agreement. [1 ]

                   Art icle 3

The Commission, assisted by representatives of the Member States, shall
represent the Community in the Joint Committee set up by Article 33 of the

Agreement.

                   Art icle 4

This Decision shall enter into force on the day following that of its
publication in the Official Journal of the European Communities.

Done at Brussels,

                            For the Counci

                            The President

1 The date of entry into force of the Agreement will published in the
  Official Journal of the European Communities by the General Secretariat

  of the Counc iI.

```

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```
              FRAMEWORK COOPERATION AGREEMENT

           between the European Economic Community

      and the Republics of Costa Rica, El Salvador, Guatemala,

              Honduras, Nicaragua and Panama

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part,

THE GOVERNMENTS OF COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS. NICARAGUA

AND PANAMA,

of the other part,

CONSIDERING the traditional links of friendship between the Member States
of the European Economic Community (hereinafter referred to as "the
Community") and the Republics of Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua and Panama (hereinafter referred to as "Central
America"), which over the past nine years have benefited from the
institution of a productive political dialogue and economic cooperation
that it is important to consolidate,

RECALLING the significant contribution made to Central America by the

implementation of the Cooperation Agreement signed in Luxembourg on
12 November 1985 and of the final communiqués issued at ministerial

meetings between the Community and Central America,

REAFFIRMING their commitment to the principles of the United Nations

Charter, the precepts of international law, democratic values and respect
for human rights, and stressing the importance of the Resolution adopted by
the Council and the Member States of the Community on 28 November 1991 on
human rights, democracy and development,

HIGHLIGHTING the progress made as regards peace and democracy in the
Central American countries through the process of dialogue and national
reconciliation instigated in the region, and emphasizing also the
significant efforts made as regards respect for human rights,

RECOGNIZING that development is a fundamental condition for the

consolidation of peace and democracy, and a basic requirement for the

promotion of the economic and social rights of the Central American

peoples,

RECOGNIZING the importance attached by the Community to the development of
trade and economic cooperation with developing countries, and mindful of
its guidelines and resolutions concerning cooperation with Asian and Latin
American developing countries,

```

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```
MINDFUL of the positive effects of the process of modernization, economic
reform and trade liberalization introduced by the Central American
governments, and of the need to accompany these reforms with the promotion
of social rights in the most disadvantaged sectors of the population, and
convinced that Community cooperation has a significant part to play in the
eradication of the problems of extreme poverty afflicting the region,

AWARE of the importance of helping Central America become more fully

integrated into the world economy,

CONVINCED of the importance of free international trade, the principles of

the multilateral trade system, greater investment and respect for

intellectual property rights,

EMPHASIZING the particular importance the parties attach to greater
protection of the environment and to the objective of sustainable

development,

MINDFUL of the urgent need to strengthen international cooperation in the

struggle to confront the problems caused by, and related to, drugs,

AWARE of the need to reaffirm the importance of the role of women as a key

element in the development process,

HIGHLIGHTING the progress made by the Sistema de la Integraciôn

Centroamericana (SICA - Central American Integration System) owing to the
changes in the Charter of the Organizaciôn de Estados Centroamericanos

(ODECA - Organization of Central American States) introduced by the

Tegucigalpa Protocol, and recognizing that Central America is a region made

up of developing countries,

CONVINCED of the need to institute a new phase of cooperation between the
two regions, in line with the conclusions of the San José VI Il Ministerial

Conference, and recognizing that the fundamental objective of the Agreement

is to consolidate, deepen and diversify relations between the two parties,

HAVE DECIDED to conclude this Agreement and to this end have designated as

their plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

FOR THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA:

FOR THE GOVERNMENT OF THE REPUBLIC OF EL SALVADOR

FOR THE GOVERNMENT OF THE REPUBLIC OF GUATEMALA:

```

##### **-.«J.**

```
FOR THE GOVERNMENT OF THE REPUBLIC OF HONDURAS:

FOR THE GOVERNMENT OF THE REPUBLIC OF NICARAGUA:

FOR THE GOVERNMENT OF THE REPUBLIC OF PANAMA:

WHO, having exchanged their full powers, found in good and due form

HAVE AGREED AS FOLLOWS:

```

```
                     - 2 
                    Art icle 1

             Democratic basis for cooperation

Cooperation ties between the Community and Central America and this
Agreement in its entirety shall be based on respect for democratic
principles and human rights, which inspire the domestic and external
policies of both the Community and Central America and which constitute an
essential component of this Agreement.

                    Art icle 2

              Strengthening of cooperation

The Contracting Parties undertake to strengthen and diversify their
cooperation in all areas of common interest, particularly the economic,
financial, commercial, social, science and technology and environmental
sectors, bearing in mind the lesser degree of development of the Central
American countries. They also undertake to promote the intensification and
consolidation of the Central American Integration System.

In view of the special status of the Central American countries as
developing countries, the Community shall implement this cooperation in the

manner most favourable to those countries.

                    Art icle 3

                 Economic cooperation

1. The Contracting Parties, taking into account their mutual interest and
medium- and long-term economic objectives, undertake to establish economic
cooperation of the widest possible scope, from which no field of activity
is excluded in principle. The aims of such cooperation shall be in
particular to:

(a) strengthen and diversify generally their economic links;

(b) contribute to the sustainable development of both Parties' economies
   and standards of living, with due regard for the protection of the
   env i ronment;

(c) encourage the expansion of trade with a view to promoting
   diversification, opening up new markets and improving access to them-,

(d) encourage the flow of investment and reinforce protection of
   investment ;

(e) encourage transfers of technology and cooperation among firms,
   particularly small businesses, consolidating the scientific base and
   stimulating the innovatory skills of both parties;

(f) establish conditions conducive to job creation and improved
   product i v i t y ;

(g) encourage measures promoting rural development and the improvement of
   urban living conditions;

```

```
                      3 
(h) support thë efforts of the Central American countries to sét ih tràih

   policies designed to modernize and develop the agricultural and

   industr iaI sectors;

(i) support the Central American integration process;

(j) exchange information on statistics and methodology.

2. Without excluding any area of activity from the outset, the
Contracting Parties shall, in their mutual interest and with regard to
their respective competences and capacities, determine by common agreement
the spheres to be covered by economic cooperation. Cooperation shall
centre particularly on the following:

(a) modernization of the productive sectors (industry, agro-industry,
   agriculture, livestock farming, fisheries, fish farming, mining,

   forest ry ) ;
(b) energy planning and efficient use of energy-,
(c) management and protection of natural resources and the environment;

(d) technology transfers-,
(e) science and technology;
(f) intellectual property, including industrial property;
(g) standards and quality criteria;
(h) services, including financial services, tourism, transport,
   telecommunications, telematics and information technology;
(i) exchanges of information on monetary matters and the harmonization of
   macro-economic policies with a view to strengthening regional
   i ntegra t ion ;
(j) technica I,reguI at ions on health, plant health and animal health;
(k) consolidation of regional economic cooperation organizations and
   agenc ies ;
(I) regional development and frontier integration.

3. In the interests of attaining the objectives of economic cooperation,
the Contracting Parties shall, each in accordance with its laws, endeavour
to promote activities including the following:

(a) provision of technical assistance, notably by seconding consultants
   and carrying out specific studies in the designated fields of
   coopéra t i on ;

(b) creation of joint ventures, licensing agreements, technological
   know-how transfers, subcontracting, and other such activities-,

(c) increased contacts between the two Parties' businessmen through
   conferences, seminars, trade and industry missions designed to boost
   trade and investment flows, trade talks and general and specialized
   trade fairs-,

(d) joint participation of Community firms in fairs and exhibitions held
   in Central American countries, and vice versa :

```

```
                   - 4 
(e) technical and scientific research projects and exchanges of experts;

(f) exchanges of information concerning the areas of cooperation covered
   by this Agreement, notably as regards access to existing or future

   databases ;

(g) setting up of business networks, particularly in the industrial

   sector.

                    Art icle 4

              Most-favoured-nation treatment

The Contracting Parties shall grant each other most-favoured-nation
treatment in trade, in accordance with the General Agreement on Tariffs and

Trade (GATT).

                    Ar t icle 5

                 Trade coopérât ion

1. The Contracting Parties undertake to develop and broaden 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
poss ible.

2. To that end, the Parties shall endeavour to find methods of reducing
and eliminating the obstacles hindering the development of trade, notably
non-tariff barriers, taking account of work already accomplished in this
field by international organizations.

3. The Contracting Parties shall, where appropriate, assess the
possibility of setting up mutual consultation procedures.

                    Art icle 6

           Means of achieving cooperation in trade

In the interests of bringing about more active cooperation in trade, the
Contracting Parties shall take measures aimed at:

   promoting meetings, exchanges and contacts between business people
   from each of the Parties, with the aim of identifying goods suitable
   for sale on the market of the other Party;

   facilitating cooperation between their customs services, in particular
   as regards vocational training, the simplification of procedures and
   the detection of customs offences;

   encouraging and supporting trade promotion activities such as
   seminars, symposia, trade and industrial fairs and exhibitions, trade
   and other visits, business weeks, market studies and other activities

```

```
                     - 5 
   providing support for their own organizations and firms, to enable
   them to engage in activlt ies Which are of benefit to both sides;

   making allowance for each other's interests with regard to market
   access for commodities, semi-finished and manufactured goods and with
   regard to the stabilization of world commodity markets, in accordance
   with the aims agreed within the appropriate international
   organ i zat ions -,

   examining ways and means of facilitating trade and eliminating
   barriers to trade, taking into consideration the work of internationa
   organ i zat ions.

                    Art icle 7

                Industrial cooperation

1. The Contracting parties shall promote the expansion and
diversification of the Central American countries' production base in the
industrial and service sectors, particularly encouraging cooperation
activities involving the small and medium-sized enterprises of both parties
designed to facilitate the access of such enterprises to sources of
capital, markets and appropriate technology, and also fostering joint

ventures.

2. To that end, within the limits of their responsibilities, the Parties
shall encourage projects and operations promoting:

   the consolidation and extension of the networks established for the

   purposes of cooperation-,
   the broad use of Community promotional instruments such as "European
   Community Investment Partners" (ECIP), inter alia through greater use
   of Central American financial institutions;

   coopérât ion between firms, such as joint ventures, subcontracting,
   transfers of technology, licensing, applied research and franchising-.

                    Art icle o

                    Investment

   The Contracting Parties agree
   to promote, so far as their powers, rules and regulations and policies

   permit, an increase in mutually beneficial investment-,

   to ondeavout to improve the climate for such investment by encouraging
   investment pi omotion and protection agreements between the Community's

   Member States and the Central American countries.

```

```
                     - 6 
```

_**?..**_ **`In pursuit of these objectives, the Contracting Parties agree to take`**
```
measures to help promote and attract investment, with a view to identifying
new opportunities for such investment and encouraging the implementation

thereof .

These measures shall include:

(a) seminars, exhibitions and business missions;

(b) training businessmen with a view to setting up investment projects-,
(c) technical assistance for joint investment;
(d) measures under the European Community Investment Partners (ECIP)

   programme.

3. Cooperation in this field may involve public, private, national or
multilateral bodies, including regional financial institutions, from both
Central America and the Community.

                    Art icle 9

          Cooperation between financial institutions

The Contracting Parties shall endeavour to foster, according to their needs
and within the framework of their respective programmes and legislation,
cooperation between financial institutions in the form of:

   exchanges of information and experience in fields of mutual interest
   ( inter alia by means of seminars, conferences and workshops);

   exchanges of consultants;

   technical assistance.

   exchanges of information in the fields of statistics and methodology.

                   Art icle 10

                Science and technology

1. In accordance with their mutual interest and the aims of their

policies on science, the Contracting Parties undertake to promote
cooperation in science and technology aimed in particular at:

   encouraging exchanges of Community and Central American scientists

```

```
                      _ 7 
   establishing closer links between their scientific and technological

   communities, with particular reference to existing research centres on

   both sides-,

   promoting mutually beneficial transfers of technology;

   implementing measures with a view to achieving the goals of research

   programmes that are of interest to both regions-,

   building up the research capacity of the Central American countries,
   promoting projects involving scientific'and technical research centres
   and stimulating technical and applied research-,

   creating opportunities for economic, industrial and trade cooperation.

2. Without excluding any sector from the outset, the Parties agree that

they shall jointly identify the areas for developing their scientific and

technological cooperation, taking into account the development needs of the

Central American productive sectors.

These areas shall include:

   development and management of science and technology policies;
   protection and improvement of the environment, particularly the

   protection and renewal of rainforest and borderline agricultural

   areas;

   renewable energy and rational use of natural resources;

   tropical agriculture, agro-industry and fisheries-,

   health, nutrition and social welfare in general, and tropical diseases

   in part icu lar ;

   areas such as housing, urban development, planning and development,

   transport and communications;
   regional integration and cooperation in science and technology;

   biotechnology applied to medicine and agriculture-,
   taxonomic studies of indigenous flora and fauna, leading to the

   creation of a biological index with applications in medicine,
   agriculture and other sectors.

3. In order to achieve their chosen objectives, the Contracting Parties

shall encourage and foster measures including-.

   joint scientific and technological research projects involving private

   and public sector research centres and other qualified institutions on

   both sides;

```

```
                      - 8 
   training at the appropriate level for Central American research and
   development professionals, notably through seminars, courses and
   conferences in European centres, exchanges of experts and technicians,
   awards for specialist studies and in-house training;

   exchanges of scientific information, through the joint organization of
   seminars, workshops, working meetings and conferences attended by
   top-level scientists from both Contracting Parties;

   distribution of scientific and technological information and know-how.

                    Article 11

                    Standards

Without prejudice to their international obligations, within the scope of

their responsibilities, and in accordance with their laws, the Contracting

Parties shall take steps to reduce differences in respect of weights and

measures, standardization and certification by promoting the use of

compatible systems of standards and certification. To that end, they shall

encourage the following in particular:

   links between experts and technical assistance to facilitate exchanges

   of information and studies on weights and measures, standards, quality

   control, promotion and certification, and to promote the development

   of technical assistance in this field;

   exchanges and contacts between bodies and institutions specializing in

   these f i e I ds ;

   measures aimed at achieving mutual recognition of systems and quality

   cert i f i cat ion;

   consultations in the fields concerned.

                    Art icle 12

            Intellectual and industrial property

1. The Contracting Parties undertake, in line with their respective
legislation, regulations and policies, to provide suitable and effective
protection for intellectual and industrial property rights, including
geographical designations and marks of origin, and upgrading that
protection where appropriate.

2. The Central American countries shall, in so far as they are able,

subscribe to the international conventions on intellectual and industrial

property.

```

```
                       - 9 
                     Art icle 13

                       M i n i ng

The Contracting Parties agree to promote cooperation to develop the mining

sector, with due regard for the environmental issues involved.

This cooperation shall primarily take the form of action designed to:

   encourage the involvement of enterprises of both Parties in the

   exploration, mining and marketing of their mineral resources;

    set up activities to encourage small and medium-sized enterprises
   operating in the mining sector-/

   exchange experience and technology relating to mining prospecting,
   exploration and exploitation, and undertake joint research, in order to
    increase the opportunities for technological development.

                     Art icle 14

                       Energy

The Contracting Parties recognize the importance of the energy sector for
economic and social development, and are prepared to step up their
cooperation in this field, notably as regards planning, conservation, the
efficient use of energy, and the search for new sources of energy. This
improved cooperation will also take environmental implications into

cons iderat ion.

To these ends, the Parties agree to promote:

    joint studies and research;

   assessment of the potential of alternative energy sources and the use

   of energy-saving technology in manufacturing processes;

   ongoing contacts between energy planners;

   the execution of joint programmes and projects in this field.

                     Art icle 15

                      Transport

Recognizing the importance of transport for economic development and the

intensification of trade, the Contracting Parties shall adopt the necessary

measures to implement cooperation in respect of all types of transport.

```

```
                     - 10 
Cooperation shall centre on the following:

   exchanges of information on the Parties' respective transport policies
   and on subjects of common interest;
   economic, legal and technical training programmes aimed at economic
   operators and those in charge of public-sector departments;
   assistance, particularly in connection with infrastructure
   modernization programmes.

                    Article 16

         Information technology and telecommunications

1. The Contracting Parties recognize that information technology and

telecommunications are vital to the development of the economy and society

and declare themselves prepared to promote cooperation in fields of common

interest, chiefly in respect of the following:

   promotion of investment and joint investment.

   standardization, testing and certification;

   rural and mobile telephone systems, earth and space-based

   telecommunications such as transport networks, satellites, fibre

   optics, Integrated Service Digital Networks (ISDN) and data

   transm i ss ion ;

   electronics and microelectronics;

   computerization and automation;

   research and development in new information technologies and

   telecommun i cat ions.

2. This cooperation shall take place in particular through:

   promotion of joint projects relating to research and development, the

   establishment of information networks and databanks, facilitation of

   access to existing databanks and information networks.

   collaboration between experts;

   expert assessments, studies and exchanges of information;

   training of scientists and technicians;

   formulation and implementation of specific projects of mutual benefit;

```

```
                     - 11 
```

**`Art`** `icle` _**4fy**_

```
                     Tour i sm

Within the bounds of their laws, the Contracting Parties shall contribute

to cooperation on tourism in the Central American countries, which is to be

achieved through specific measures including:

   exchanges of information and studies on opportunities for tourist

   development;

   assistance in statistics and data processing;

   training;

   the organization of events and participation in fairs promoting the

   Central American region;

   the promotion of investment and joint investment in order to expand

   tour i st t rave I .

                    Art icle 18

                    Environment

The Contracting Parties affirm that they wish to cooperate closely in the

protection, conservation, improvement and management of the environment,

focusing on water, soil and air pollution, erosion, desertification,

deforestation, over-exploitation of natural resources, urban concentration

and the productive conservation of wild and aquatic flora and fauna,

protecting them from non-rational exploitation and commercialization,

particularly where protected species are concerned.

To these ends, the Parties shall endeavour to work together on measures

target ing:

   the creation and improvement of public and private sector

   environmental bodies in Central America;

   the promotion of environmental education at all levels and the

   widespread dissemination of information concerning, and solutions to,

   environmental problems with a view to increasing public awareness;

   the implementation of studies, projects and technical assistance;

   the organization of meetings, seminars, workshops, conferences,

   exchanges of technicians and officials specialized in this field;

   exchanges of information and experience;

   research and studies paving the way for joint programmes and projects
   aimed at disaster control and prevention-,

   the promotion of the development and alternative economic use of
   protected areas, with due regard for the specific features of the

   areas concerned.

```

```
                     - 12 
                    Art icle 19

                 Biological diversity

The Contracting Parties shall endeavour to establish cooperation aimed at

preserving biological diversity. Such cooperation should be based on three

criteria, namely: socio-economic utility, ecological conservation and the

interests of indigenous peoples.

                    Art icle 20

                DeveIopment coopérât ion

With a view to increasing the effectiveness of cooperation in the areas

referred to below, the Parties shall seek to establish a multiannual

programme.

Furthermore, the Parties recognize that the desire to contribute to better

managed and sustainable development involves giving priority to development

projects designed to meet the vital needs of the poorest of the Central

American people, and to the role of women in the development process. The

Parties also recognize that development and environmental problems are

close I y I inked.

Cooperation in this field shall involve measures designed to act against

extreme poverty, soften the impact of the structural adjustment programmes

and encourage job creation. Priority shall be given to measures having an

impact on the restructuring of the economy and taking into account macro
economic and sectoral problems, and problems linked to the institutional

development process.

This cooperation shall be undertaken on the greatest scale possible, in

close cooperation with the Member States.

                    Art icle 21

            Agriculture, forestry and rural areas

The Contracting Parties agree to establish cooperation in the areas of crop

and livestock farming, forestry, agro-industry, agri-foodstuffs and

tropical products, with a view to raising development levels.

To these ends, in a spirit of cooperation and goodwill and taking into
account the laws of both Parties on such issues, the Contracting Parties

sha I I exam i ne .
   opportunities for developing trade in crop, livestock, forestry, agro
   industrial and tropical products;

   health, plant health, animal health and environmental measures, with a
   view to eliminating any obstacles there might be to trade in this

   field.

```

```
                      - 13 
Similarly, and with due respect for the principles of sustainable
development, the Contracting Parties shall endeavour to promote cooperation
concerning:

   the development of agriculture;

   the protection and sustainable development of the following

   resources: soil, water, woodland, flora and fauna;

   the agricultural and rural environments-,

   training in fields such as new techniques in crop and livestock
   farming and forestry and business management;

   exchanges between technicians, producers and institutions from both
   sides, with a view to promoting and facilitating trade and investment
   projects ;

   agricultural research;

   the upgrading and interfacing of agricultural and forestry databanks

   andstatistics.

                     Art icle 22

                     Fisher ies

The Contracting Parties agree to intensify and develop cooperation in the
field of fisheries, particularly as regards the evaluation of resources,
artisanal fishing and aquaculture, inter alia by :

   drawing up and undertaking special programmes and projects of an
   economic, commercial, scientific or technical nature,

   encouraging the private sector to participate in developing this

   sector.

                     Art icle 23

                      Health

The Contracting Parties agree to cooperate to improve public health,
concentrating on the needs of the most disadvantaged sections of the
population, focusing primarily on the groups at risk.

To these ends they shall seek to develop joint research, technology
transfers, exchanges of experience and technical assistance, in particular
with regard to :

   health service management and administration, particularly in respect
   of primary healthcare;

   the development of vocational training and education programmes in the
   heaIth sector ;

```

```
                      - 14 
   programmes and projects for the improvement of sanitary conditions
    (with particular regard to the prevention of endemic diseases and

    infections) and social welfare in urban and rural areas;

    training for basic health workers;
    the treatment and prevention of Acquired Immune Deficiency Syndrome

    (AIDS);

   mother-and-chi Id healthcare and family planning;
   prevention and treatment of cholera.

                     Art icle 24

                  Social development

1. The Contracting Parties shall, to the extent of their powers, and in
line with their respective legislation, establish wide-ranging cooperation
to further social development, particularly by improving the living
conditions of the poorest sections of the populations in the Central

American countries.

2. The measures and operations to be undertaken with these aims in mind
include support, essentia I I y in the form of technical assistance, in the
foI lowing f i eIds:

   protection of children;
   promotion of the role of women.
   support for the process of bringing the informal economy into the
   official economy;
   education and assistance programmes for young people in particularly
   difficult circumstances;

   measures to soften the social impact of structural adjustment
   programmes, notably through projects capable of stimulating job
   créa t ion ;

   social services administration;

   the improvement of living conditions and hygiene in urban and rural

   areas ;

                    Art icle 25

                 Combating drug abuse

Within the scope of their powers, the Contracting Parties undertake to
coordinate and step up their efforts to prevent, reduce and eradicate the
illegal production, distribution and consumption of drugs, narcotics and
psychotropic substances, taking account of the work carried out in this
field by regional and international bodies.

```

```
                      - 15 
This cooperation, with the support of agencies specialized in this field,

shaII include:

   training, education, treatment, detoxification and rehabilitation

   projects for addicts;

   illicit drug use prevention programmes.

   research programmes;

   measures designed to encourage alternative development, including

   a Iternat i ve crops ;

   exchanges of relevant information, including information concerning

   measures relating to money laundering;

   programmes to monitor trade in precursors, chemical products and
   psychotropic substances-,

The Contracting Parties may by mutual agreement extend their cooperation to

other areas.

                     Art icle 26

      Assistance for refugees, displaced persons and returnees

The Parties reiterate their wish to continue cooperating on a broad scale
to facilitate the reintegration of Central American refugees, displaced
persons and returnees into productive society. This cooperation shall focus

on:

   support for the preparation of cooperation activity in collaboration
   with the recipient countries and the International Conference on
   Central American Refugees (CIREFCA);

   implementation of specific projects with partners specialized in this
   field: UNHCR, government bodies in the recipient countries and NGOs of
   recognized experience from both sides.

                    Article 27

     Consolidation of the democratic process in Central America

The Contracting parties agree to support democratic institutions and the
democratic process in Central America, particularly with regard to the
organization and monitoring of free and transparent elections, the
consolidation of the rule of law, respect for human rights and the
participation of the entire population without discrimination in political

and soc i a I life.

To achieve these ends, the Parties shall undertake the following-.

   imp turnout at ion of the mu 11iannua I programme for the promotion of human
   rights approved in Lisbon in February 1992;

```

```
                     - 16 
   preparation and implementation of other specific projects designed to
   support democratic institutions in Central America.

                    Art icle 28

            Regional integration and cooperation

The Contracting Parties shall take steps to encourage the regional
integration of the Central American countries

Priority shall be given to:

   technical assistance with the technicaTand practical aspects of
   intégrât ion ;
   promotion of subregional and intrareg iona I trade-,
   development of regional environmental cooperation-,
   upgrading regional institutions and supporting the pursuit of joint
   policies and activities;
   encouraging the development of regional communications.

                   Art icle 29

                    Government

The Contracting Parties agree to cooperate in matters of administration anc
institutional organization, including the organization of the legal system.

To this end, they shall take steps aimed at encouraging exchanges of
information and training courses for national government officials and
employees with a view to increasing government efficiency.

Cooperation in this field shall make use of existing institutions in both

reg ions.

                   Art icle 30

           Information, communication and culture

The Contracting Parties agree to act jointly in the fields of information
and communication in order to promote understanding of the nature and aims
of the European Community and of Central America and to encourage the
Community Member States and Central American countries to strengthen their

cu I tura I t ies.

In particular, these measures shall take the form of:

   exchanges of information on issues of common interest in the fields of
   culture and information;

   organization of cultural events and exchanges, particularly exchanges
   at uni ver s i ty levé I ;

   preparatory studies and technical assistance for the preservation of
   the cultural heritage-,

```

```
                      - 17 
                     Art icle 31

                     Tra ining

With a view to improving training in Central America, the Parties shall
strengthen their cooperation in areas of mutual interest, taking account of
new technologies in the field.

Such cooperation could take the form of:

   steps to improve the training of executives, technicians,
   professionals and skilled workers;

   measures with a significant knock-on effect, training for instructors
   and technical executives who are already in positions of
   responsibility in public and private-sector enterprises, government,
   the public service sector and economic administration;

   specific programmes for exchanges of consultants, know-how and
   technology between training institutions in the European and Central
   American countries, with particular emphasis on the technical,

   scientific and vocational sectors-,

   literacy programmes linked to health and social development projects.

                     Article_32

            Resources for undertaking cooperation

1. The Contracting Parties undertake to make available, within the limits
of their abilities and through their own channels, the requisite resources,
including financial resources, for achieving the objectives of the
cooperation provided for in this Agreement. In this connection, wherever
possible multiannual programming will be carried out and priorities
determined, taking account of needs and of the Central American countries'
level of development.

2. In order to facilitate the implementation of the cooperation measures
specified in this Agreement, the Central American countries shall grant
Community experts the guarantees and facilities they require to carry out

their tasks.

                     Art icle 33

                   Joint Committee

1. The Contracting Parties agree to retain the Joint Committee
established pursuant to the 1985 Cooperation Agreement. The Joint Committee
shall be made up of iepresentatives of the Community and of the Central
American countries, assisted by representatives of the Central American
i ntegrat ion bod i es.

```

```
                 - 18 
2. The Joint Committee shall:

   see to the proper functioning of the Agreement,

   coordinate and assign priority to activities, projects and specific i
   operations in relation to the aims of this Agreement and propose means
   of implementing them;

   study and follow up the development of trade and cooperation between

   the Part ies-,

   make any recommendations required to promote the expansion of trade
   and intensify and diversify cooperation;

   seek appropriate methods of forestalling problems which might arise in
   the interpretation and application of this Agreement.

3. The agendas for Joint Committee meetings shall be set by mutual
agreement. The Committee shall itself establish provisions concerning the
frequency and location of its meetings, chairmanship, and other issues that
may arise, and shall, where necessary, set up subcommittees.

                    Art icle 34

                  Other agreements

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

to undertake bilateral activities with the Central American countries in

the field of economic cooperation or where appropriate to conclude new
economic cooperation agreements with the Central American Countries.

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 the Central American countries where such provisions are either
incompatible with or identical to the provisions of this Agreement.

                   Art icle 35

                Territorial application

This Agreement shall apply, on the one hand, to the territories in which
the Treaty establishing the European Economic Community is applied and
under the conditions laid down in that Treaty and, on the other, to the
territory of the six Central American countries party to this Agreement.

                   Art icle 36

                    Annexes

The Annexes shall form an integral part of this Agreement.

```

```
                       - 19 
                      Article 37

              Entry into force and tacit renewal

This Agreement shall enter into force on the first day of the month i
following the date on which the Contracting Parties have notified each
other of the completion of the procedures necessary for this purpose. It
shall remain in force for a period of five years. It shall be renewed
tacitly for successi ve one-year periods unless one of the Contracting
Parties denounces it to the other Party in writing six months before the
date of exp i ry.

Denouncement by one of the Central American countries shall not affect the

validity of the Agreement in respect of the other Central American

countr ies . • :; .,

                      Art icle 38

                    Authent ic texts

This Agreement is drawn up in duplicate in the Danish, Dutch, English,

French, German, Greek, I ta I ian,Portuguese and Spanish languages, each text

being equally authentic.

                      Art icle 39

                   Future developments

1. The Contracting Parties may by mutual consent develop and improve this
Agreement with a view to enhancing the levels of cooperation and
supplementing them by means of agreements on specific sectors or

act i v i t i es .

2. With regard to the implementation 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.

```

```
          - 20 
EXCHANGE OF LETTERS ON MARITIME TRANSPORT

         Letter No 1

```

```
ANNEX

```

```
Sir,

We should be obliged if you would confirm the following:

When the Agreement on cooperation between the European Community and the
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Panama 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 or.
shipping will be sought, while the principle of free and fair competition

on a commercial basis is observed.

It has likewise been agreed that such issues should also be discussec by

the Joint Committee.

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

                              On behalf of the Council

                              of the European Communities

```

**\**

```
                     - 21 
                   Letter No 2

Sir,

I have the honour to acknowledge receipt of your letter and confirm the

followi ng:

"When the Agreement on cooperation between the European Community and the
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Panama was signed, the Parties undertook to address in the appropriate
manner issues relating to the operation of shipping, particularly where tru
development of trade might be hindered. Mutually satisfactory solutions or
shipping will be sought, while the principled free and fair competition

on a commercial basis is observed.

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 Central America

```

```
             ```

_**Zl-**_

```
    jjMHATFPAi nmiARATION RY CENTRAL AMERICA CONCERN I NG_ARUÇLf„8

The Central American countries hereby declare that they are prepared to
initiate talks aimed at the conclusion of bilateral agreements on the
protection and promotion of investment with any Member State of the
European Economic Community requesting such a dialogue.

```

#### **-**
## **_zy-_**

```
    UNILATERAL DECLARATION BY THE COMMUNITY CONCERNING ARTICLE 32

The Community confirms that it intends to give priority to supporting

projects of a regional nature .and declares that it is prepared to intensify

this cooperation in both quality and quantity terms. The financial

resources to be made available for this purpose will reflect both the

greater scope of this Agreement and the significant increase in the

resources allocated in the guidelines for cooperation with the developing

countries of Asia and Latin America in the 1990s. These contributions wili

form part of the budget allocation.

                                     \

```

```
           UNILATERAL DECLARATION BY THE COMMUNITY

    CONCERNING THE SPECIAL CONCESSIONS GRANTED TO CENTRAL AMERICA

      UNDER COUNCIL REGULATION NO 3900/91 OF 16 DECEMBER 1991

The Community hereby declares that it is prepared to:

(a) study the impact on the Central American and other developing
   countries of the special concessions granted in the context of the
   generalized system of preferences;

(b) continue the dialogue on this issue with all the Central American

   count r i es -,

(c) mandate the Commission to assess the situation when the period of

   validity laid down for the granting of the preferences concerned

   expires (1994), particularly in the light of developments as regards

   the conditions that were taken into account in granting the said

   preferences.

                                  V

```

**-**
_**2S***_

```
           UNILATERAL DECLARATION BY CENTRAL AMERICA

    CONCERNING THE SPECIAL CONCESSIONS GRANTED TO CENTRAL AMERICA

        UNDER COUNCIL REGULATION NO 3900/91 OF 16 DECEMBER

Central America stresses the priority it attaches to the preferential
treatment accorded it by the European Community in the context of the
generalized system of preferences.

This treatment is of special importance to Central America in supporting

the peace process, the consolidation of democracy and national

reconstruction in the region, and also the efforts being made to ensure

that the Central American countries' fragile economies, their societies anc

democratic institutions remain unaffected by drug-related problems.

```

##### **~** **_u_**

```
                 FINANCIAL STATEMENT

                (FINANCIAL IMPLICATIONS)

1. Title of ooerat ion: EEC-Central America cooperation agreement

2. Budget headings involved: B7-5020; B7-3015; B6-8200; B7-3010;

                    B7-3011; B7-3012; B7-3013; B7-3014;

                    B7-5030; B7-5040; B7-5045

3. Legal basis: Articles 113 and 235

4. Description of operation

  4.1. Specific objectives: to consolidate EC-Central America cooperation
     and to broaden the scope of this cooperation to embrace new fields

  4.2. Duration: 5 years

  4.3. Target population: the people of the Central American countries,

     especia I I y

     the business sector (as regards industrial cooperation)

5. Classification of expenditure or revenue

  5.1. Compulsory/non-compulsory: non-compulsory

  5.2. Differentiated/non-differentiated: differentiated

  5.3. Type of revenue involved: None

6. Type of expenditure or revenue

  6.1. 100% grant: yes, and sometimes 50% in joint financing operations

  6.2. Grant for Joint financing with other sources in the public and/or
     private sector: on occasion

  6.3. Interest rate subsidy, no

  6.4. Other

  6.5. Should the operation prove an economic success, is there provision

     for all or part of the Community contribution to be reimbursed? No

  6.6. Will the proposed operation cause any change in the level of

     revenue? If so, what sort of change and what type of revenue is

     involved? No

7. Financial impact on budget appropriations

  For future budgets, the level of expenditure arising from the
  cooperation agreement will be established using the standard procedure.

8. Anti-fraud measures

  Such expenditure will primarily be implemented by third countries and
  the Commission, which - in agreement with the Court of Auditors - will
  exercise its customary control over expenditure as a whole.

```

ISSN 0254-1475
**«29 -**

**COM(93) 52** **final**

### **DOCUMENTS**

###### **EN ii**

Catalogue number : CB-CO-93-031-EN-C

ISBN 92-77-52428-6

Office for Official Publications of the European Commumties

L-2985 Luxembourg