Source: EURLEX
Language: en
Format: md

##### **COMMISSION OF THE EUROPEAN COMMUNITIES**

```
                           COM(92) 463 final

                           Brussels, 13 November 1992

                  Proposal for a

                 COUNCIL DECISION

    concerning the conclusion of a Framework Cooperation Agreement
     between the European Economic Community and the Andean Pact

             (presented by the Commission)

```

```
                     - 2 
                EXPLANATORY MEMORANDUM

1. By its decision of 4 May 1992, the Council authorized the Commission
   to open negotiations with the Cartagena Agreement and its member
   countries, namely Bolivia, Colombia, Ecuador, Peru and Venezuela
   (hereinafter referred to as "the Andean Pact") for a Framework
   Cooperation Agreement, and adopted directives to that end.

2. Negotiations took place over two sessions held on 24 and 25 June 1992,
   and concluded with the initialling of an Agreement between the
   European Economic Community and the Andean Pact. An exchange of
   letters concerning sea transport is annexed to the Agreement.

3. The following documents, which are not annexed to the Agreement, have
   also been drawn up:
   - an exchange of letters concerning the possibility of joint
     consultation procedures in appropriate cases. The text of this
     exchange of letters was initialled at the same time as the
     Cooperation Agreement, and is the same as the text of Article 5(3),
     (4), (5) and (6) of the EC/Brazil Agreement. Publication of the
     text of the exchange of letters in the Official Journal is not
     envisaged.

     four unilateral declarations, to be recorded in the minutes of the
     negot iat ions.        a unilateral declaration by the Community concerning Article
        13 of the Agreement, on intellectual and industrial property.
        The text will be forwarded to the Council, but not published
        in the Official Journal. The Community will have the
        declaration recorded in the minutes of the negotiations and in
        the minutes of the decision on signing;
        three unilateral declarations by the Andean Pact concerning
        Article 2(2) of the Agreement (consultations on international
        issues of mutual interest), Article 9(2) of the Agreement
        (European Investment Bank) and Article 32 of the Agreement
        (Joint Committee). The texts will not be forwarded to the
        Council, or published in the Official Journal. The Andean Pact

        will have the three declarations recorded in the minutes of

        the negot iat ions.

   - a declaration by the Commission concerning Article 33 of the
     Agreement (Canada Clause). It will be forwarded to the Council,
     but not published in the Official Journal. The Commission will

     have this declaration recorded in the minutes of the Council

     decision on signing.

   - a separate protocol concerning the European Coal and Steel
     Community (Article 34 of the Agreement) will be the subject of a
     written procedure at a later date.

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

   negotiating directives adopted by the Council.

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

6. With a view to the signing and conclusion of this Framework
   Cooperation Agreement between the European Economic Community and the
   Andean Pact, the Commission proposes that the Council adopt the

   attached draft Decision.

```

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                     - 3 
                  Proposal for a

                  COUNCIL DECISION

              concerning the conclusion of
             a Framework Cooperation Agreement
     between the European Economic Community and the Andean Pact

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 Andean Pact,

HAS DECIDED AS FOLLOWS:

                    Article 1

The Framework Cooperation Agreement between the European Economic Community
and the Andean Pact 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 32 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 Council

                           The President

   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 Council.

```

```
                     - 4 
                 Exchange of letters

              Concerning the possibility of
       joint consultation procedures in appropriate cases.

                   Letter No 1

Sir,

I should be grateful if you could confirm the following:

1. The Contracting Parties to the Cooperation Agreement between the
Community on the one hand and the Cartagena Agreement and its Member States
on the other, initialled in Brussels on 26 June 1992, agree to promote
exchanges of information and the holding of consultations on tariffs,
health and technical conditions, associated legislation and practices and
any anti-dumping and countervailing duties that may be applicable.

2. Without prejudice to their rights and obligations as GATT members, the
Contracting Parties undertake to consult each other on any trade disputes
that might ar ise.

Such consultations shall be organized as soon as possible when requested by
one of the parties. The Contracting Party requesting consultations shall
provide the other with all the information it requires to assess the

situât ion in detai I .

The parties shall endeavour by means of this procedure to resolve any trade
disputes as quickly as possible.

3. Where, in trade between the Contracting Parties, a product is alleged
to be dumped or subsidized, and this leads to an investigation by the
competent authorities, each Contracting Party undertakes to examine
requests submitted by the other.

The competent authorities of the Contracting Parties shall inform
interested parties at their request of the essential facts and

considerations on the basis of which a decision is to be taken. This

information shall be provided before the definitive conclusions resulting
from the investigation are formulated, leaving the parties concerned

sufficient time in which to defend their interests.

Before applying definitive anti-dumping or countervailing duties, the
Contracting Parties shall endeavour, wherever possible, to find a
constructive solution to the problem.

4. The provisions laid down in paragraphs (1), (2) and (3) above shall
cease to apply when the new ant i-dumping code and other GATT instruments
that are currently being negotiated in the Uruguay Round enter into force
in the Andean Pact and Community countries.

```

```
                     - 5 
                   Letter No 2

Sir,

I have the honour to acknowledge receipt of your letter and confirm the
fo11ow i ng:

1. The Contracting Parties to the Cooperation Agreement between the
Community on the one hand and the Cartagena Agreement and its Member States
on the other, initialled in Brussels on 26 June 1992, agree to promote
exchanges of information and the holding of consultations on tariffs,
health and technical conditions, associated legislation and practices and
any anti-dumping and countervailing duties that may be applicable.

2. Without prejudice to their rights and obligations as GATT members, the
Contracting Parties undertake to consult each other on any trade disputes
that might ar ise.

Such consultations shall be organized as soon as possible when requested by
one of the parties. The Contracting Party requesting consultations shall
provide the other with all the information it requires to assess the
situât ion in deta iI.

The parties shall endeavour by means of this procedure to resolve any trade
disputes as quickly as possible.

3. Where, in trade between the Contracting Parties, a product is alleged
to be dumped or subsidized, and this leads to an investigation by the
competent authorities, each Contracting Party undertakes to examine
requests submitted by the other.

The competent authorities of the Contracting Parties shall inform
interested parties at their request of the essential facts and

considerations on the basis of which a decision is to be taken. This

information shall be provided before the definitive conclusions resulting
from the investigation are formulated, leaving the parties concerned

sufficient time in which to defend their interests.

Before applying definitive anti-dumping or countervailing duties, the
Contracting Parties shall endeavour, wherever possible, to find a
constructive solution to the problem.

4. The provisions laid down in paragraphs (1), (2) and (3) above shall
cease to apply when the new ant i-dumping code and other GATT instruments
that are currently being negotiated in the Uruguay Round enter into force
in the Andean Pact and Community countries.

```

```
                     - 6 
            FRAMEWORK AGREEMENT FOR COOPERATION

           between the European Economic Community
  and the Cartagena Agreement and its member countries, namely Bolivia,
           Colombia, Ecuador, Peru and Venezuela

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part,

THE COMMISSION OF THE CARTAGENA AGREEMENT AND THE GOVERNMENTS OF BOLIVIA,

COLOMBIA, ECUADOR, PERU AND VENEZUELA,

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 Cartagena Agreement and its Member States (hereinafter
referred to as "the Andean Pact"),

REAFFIRMING their commitment to the principles of the United Nations
Charter, to democratic values and to respect for human rights,

MINDFUL of their mutual interest in the establishment of cooperation in a
number of sectors, and in particular economic cooperation, trade
cooperation and development cooperation,

RECOGNIZING the fundamental objective of the Agreement, which is to
consolidate, deepen and diversify relations between the two Parties,

REAFFIRMING their mutual wish to encourage the development of regional
organizations aimed at promoting economic growth and social progress,

RECOGNIZING that the Cartagena Agreement is a subregionai integration
organization and that the two Parties attach special importance to the
promotion of the Andean integration process,

RECALLING the Joint Declaration issued by the Parties on 5 May 1980, the
Cooperation Agreement signed in 1983, the Rome Declaration of
20 December 1990, the final communiqué adopted in Luxembourg on
27 April 1991 by the Community and its Member States and the countries of
the Rio Group and the final communiqué adopted by the ministerial
conference held in Santiago on 29 May 1992,

RECOGNIZING the positive repercussions of the modernization and economic
reform process, and of the liberalization of trade in the Andean countries,

```

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                    - 7 
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,

RECOGNIZING that the Andean Pact is made up of developing countries at
different stages of development, including one landlocked country and a
number of particularly depressed regions,

CONVINCED of the importance of the principles of the GATT and of free
international trade, and of respect for intellectual property rights and
freedom of investment,

RECOGNIZING the importance of international cooperation to assist countries
affected by drug-related problems, and recognizing in this context the
importance of the decision adopted by the Community on 29 October 1990
concerning the Special Cooperation Programme,

RECOGNIZING the special importance attached by both Parties to increased
protection for the environment,

RECOGNIZING the need to promote social rights and in particular the rights
of the most disadvantaged,

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

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES:

FOR THE COMMISSION OF THE CARTAGENA AGREEMENT:

FOR THE GOVERNMENT OF THE REPUBLIC OF BOLIVIA:

FOR THE GOVERNMENT OF THE REPUBLIC OF COLOMBIA:

FOR THE GOVERNMENT OF THE REPUBLIC OF ECUADOR:

FOR THE GOVERNMENT OF THE REPUBLIC OF PERU:

FOR THE GOVERNMENT OF THE REPUBLIC OF VENEZUELA:

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

HAVE AGREED AS FOLLOWS:

```

```
                     - 8 
                    Art icle 1

             Democratic basis for cooperation

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

                    Art icle 2

              Intensification of cooperation

1. Both Parties hereby undertake to impart renewed vigour to relations
between them. To achieve this essential objective, they resolve to promote
in particular the development of cooperation relating to trade, investment,
finance and technology, taking account of the Andean countries' special
status as developing countries, and to promote the intensification and
consolidation of the process of integration in the Andean subregion.

2. The Parties acknowledge the value, in the light of the aims of this
Agreement, of consulting each other on international issues of mutual
interest [1] .

                    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-,

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

(d) encourage the flow of investment, the transfer of technology and
   greater protection of investment;

(e) establish conditions conducive to job creation and improved human
   product ivi ty;

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

(g) stimulate scientific and technological progress, encourage transfers
   of technology and improve technological skills;

(h) support the movement towards regional integration;

(i) exchange information on statistics and methodology.

   Unilateral declaration by the Andean Pact

```

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

(a) industry;

(b) agro-industry and the mining sector;

(c) agriculture and fisheries-,

(d) energy planning and efficient use of energy;

(e) protection of the environment and sustainable management of natural

   resources;

(f) technology transfers;

(g) science and technology;

(h) intellectual property, including industrial property;

```

_**(i)**_ **`standards and`** **`quality`** **`criteria;`**

```
(j) services, including financial services, tourism, transport,
   telecommunications and information technology;

(k) information on monetary matters;

(I) technical, health and plant health regulations;

(m) consolidation of international coopérât ion bodies;

(n) 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) increasing contacts between the two Parties by organizing conferences,
   seminars, trade and industry missions and business weeks (meetings of
   businessmen), general, specialized and subcontracting fairs, and
   exploratory missions designed to boost trade and investment flows;

(b) joint participation of Community companies in fairs and exhibitions
   held in Andean Pact countries, and vice versa:

(c) provision of technical assistance, notably by seconding consultants
   and carrying out specific studies;

(d) research projects and the exchange of scientists;

```

```
                 - 10 
(e) promoting Joint ventures, licensing agreements, know-how transfers,
   subcontracting, and other such activities;

(f) exchanging appropriate information, especially as regards access to
   existing or future databases;

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

                   Art icle 4

             Most-favoured-nation treatment

The Contracting Parties hereby grant each other most-favoured-nation
treatment in trade, in accordance with the General Agreement on Tariffs and
Trade (GATT).

The Parties reaffirm their will to conduct trade with each other in

accordance with that Agreement.

                    Art icle 5

                 Trade cooperation

1. The Contracting Parties undertake 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. To that end, the Parties shall endeavour to find methods of reducing
and eliminating the obstacles hindering the development of trade,
especially non-tariff and para-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 entrepreneurs of
   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-,

```

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   encouraging and providing support for trade-promotion activities SUCH
   as seminars, symposia, fairs and trade and industrial exhibitions,
   trade visits, reciprocal visits, business weeks and other activities;

   providing support for their own organizations and firms, to enable
   them to engage in activities which are of benefit to both sides;

   taking into consideration 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
   organizat ions-,

   examining ways and means of facilitating trade and eliminating
   barriers to trade, taking into consideration the work of international
   organizat ions.

                   Art icle 7

              Temporary admission of goods

The Contacting Parties undertake to grant each other tax and duty exemption
for temporary import into their territory of goods, in accordance with
their respective laws and taking account, wherever possible, of existing
international agreements in this field.

                   Art icle 8

                    Industry

1. The Contracting Parties shall promote the expansion and
diversification of the Andean countries' production base in the industrial
and service sectors, directing their cooperation activities at small and
medium-sized enterprises in particular and encouraging steps to facilitate
access for those 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;

   increased use of the financial instrument "EC Investment Partners" by,
   inter alia, greater use of Andean Pact financial institutions;

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

   the setting-up of an EC-Andean Pact Business Council and other bodies
   conducive to the expansion of ties between them.

```

**-** **12 -**

```
                   Art icle 9

                   Investment

1. The Contracting Parties agree:

   to promote, so far as their powers, rules and regulations and policies
   permit, an increase in mutually beneficial investment;
   to improve the climate for such investment by seeking agreements on
   investment promotion and protection between the Community's Member
   States and the Andean Pact countries based on the principles of non   discrimination and reciprocity.

2. in pursuit of these objectives, the Contracting Parties shall
endeavour to stimulate investment promotion, inter alia by means of:

   seminars, exhibitions and visits by company directors;

   training businessmen with a view to setting up investment projects;

   technical assistance for joint investment;

   measures under the EC Investment Partners programme.

3. Cooperation in this field may involve public, private, national or
multilateral bodies, including regional financial institutions such as
"Corporacion Andina de Fomento" (CAF) and "Fondo Latinoamericano de
Réservas" (FLAR) [1] .

                   Article 10

          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.

   Unilateral declaration of the Andean Pact concerning the European
   Investment Bank (EIB).

```

```
                    - 13 
                   Article 11

                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 Andean Pact scientists;

   establishing permanent links between their scientific and
   technological communities;

   promoting mutually beneficial transfers of technology;

   encouraging ties between research centres on both sides with a view to
   finding joint solutions to problems affecting both Parties;

   implementing measures with a view to achieving the goals of both
   Parties' research programmes;

   building up research capacities and stimulating technological
   innovât ion;

   creating opportunities for economic, industrial and trade cooperation-,

   promoting relations between academic and research institutions and
   the manufacturing sectors of both Parties;

   facilitating exchanges of information and reciprocal access to

   information networks.

2. The extent of cooperation shall be determined by the desires of the
Parties, which shall Jointly select priority areas.

These shall include:

   advanced scientific and technological research;

   development and management of science and technology policies;

   protection and improvement of the environment;

   rational use of natural resources;

   integration and regional cooperation in science and technology;

   biotechnology;

   new mater ials.

```

```
                    - 14 
3. In order to achieve their chosen objectives, the Contracting Parties
shall encourage and foster measures including:

   Joint research projects involving research centres and other qualified
   institutions on both sides;

   advanced training for scientists, through research projects at the
   other Contracting Party's research centres;

   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 12

                   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:

   establishing links between experts in order to facilitate exchanges of
   information and studies on weights and measures, standards, quality
   control and quality promotion and certification, and to promote the
   development of technical assistance in this field;

   encouraging exchanges and contact between bodies and institutions
   specializing in these fields;

   promoting measures aimed at achieving mutual recognition of quality
   cert ificat ion;

   holding consultations in the fields concerned.

                   Article 13

  Technological development and intellectual and industrial property [1 ]

1. For the purpose of achieving effective collaboration between Andean
Pact and Community enterprises in the fields of the transfer of technology,
licensing, Joint investment and venture capital financing, the Parties,
with due respect for intellectual and industrial property rights,

undertake:

   to identify the branches or sectors of industry on which cooperation
   will centre and the means to promote industrial cooperation having an
   advanced technological bias;

   Unilateral ^laration by the Comn

```

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                    - 15 
   to cooperate in encouraging the mobilization of financial resources to
   support joint projects between Andean Pact and Community enterprises,
   the aim of which is to apply new findings in technology to industry,

   to support the training of qualified technological research personnel;

   to promote innovation by means of an exchange of information on the
   programmes each side is conducting for that purpose, periodic
   exchanges of experience derived from the running of innovation
   programmes and by means of exchange schemes between Andean Pact and
   Community institutions for officials of both Parties responsible for
   promoting innovation.

2. The Contracting Parties undertake to ensure, so far as their laws,
regulations and policies allow, that suitable and effective protection is
provided for intellectual and industrial property rights, including
geographical designations and appellations of origin, reinforcing this
protection where desirable. They also undertake, wherever possible and so
far as their laws, regulations and policies allow, to facilitate access to

the databases and databanks in this field.

                   Article 14

                    Mining

The Contracting Parties agree to promote cooperation in mining, chiefly
through the implementation of operations aimed at:

   encouraging the involvement of enterprises of both Parties in
   exploration, mining and marketing of their mineral resources;

   setting up activities to encourage small and medium-sized enterprises
   operating in the mining sector;

   exchanging experience and technology relating to mining prospecting,
   exploration and exploitation, and performing joint research to
   increase the opportunities for technological development.

                   Article 15

                     Energy

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

```

```
                    - 16 
To these ends, the Parties agree to promote:

   the conduct of Joint studies and research, particularly as regards

   energy forecasts and assessments;

   on-going contacts between energy planners;

   the implementation of joint programmes and projects in this field.

                   Article 16

                    Transport

Recognizing the importance of transport to 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.

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;

   technical assistance, particularly in connection with infrastructure
   modernization programmes.

                   Article 17

         Information technology and telecommunications

1. The Contracting Parties recognize that information technology and
telecommunications are vital to economic and social development, and
declare themselves prepared to promote cooperation in fields of common
interest, chiefly in respect of the following:

   standardization, testing and certification;

   earth and space-based telecommunications such as transmission
   networks, satellites, fibre optics, Integrated Service Digital Network
   (ISDN), data transmission, rural and mobile telephone systems;

   electronics and microelectronics;

   information and automation;

   high-definition television;

   research and development in new information technologies and
   telecommunicat ions-,

   promotion of investment and joint investment.

```

```
                    - 17 
2. Such cooperation shall take place in particular through:

   collaboration between experts;

   expert assessments, studies and exchanges of information;

   training of scientists and technicians;

- formulation and implementation of specific projects of mutual benefit;

   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.

                   Article 18

                    Tourism

Within the bounds of their laws, the Contracting Parties shall contribute
to cooperation on tourism in the Andean Pact countries, which is to be
achieved through specific measures including:

   exchanges of information and forward studies;

   assistance in statistics and data processing-,

   training;

   the organization of events;

   the promotion of investment and joint investment in order to expand

   tour ist travel.

                   Article 19

                  The environment

In instituting cooperation on environmental matters, the Contracting
Parties affirm their will to contribute to sustainable development. They
will endeavour to reconcile the need for economic and social development
with the need for due protection of nature, and will devote particular
attention in their cooperation to the most disadvantaged sections of the
population, to the urban environment and to the protection of ecosystems
such as tropical forests.

To those ends, the Parties shall endeavour to work together on measures
target ing:

   the creation and improvement of public and private-sector
   environmental bodies;

   public information and awareness;

   the implementation of studies, projects and technical assistance;

```

```
                    - 18 
   the organization of meetings, seminars, etc.;

   exchanges of information and experience;

   research projects on disasters and their prevention;

   the development and alternative economic use of protected areas;

   industrial cooperation applied to the environment.

                   Art icle 20

                Biological diversity

The Contracting Parties shall endeavour to establish cooperation,
particularly in the field of biotechnology, aimed at preserving biological
diversity. Cooperation should be based on three criteria, namely.socio-economic utility, ecological conservation and the interests of native
peoples.

                   Article 21

               Development 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 see
development better managed involves giving priority to the poorest sections
of the population and the most deprived regions, and entails ensuring that
environmental issues are integrated into the development process.

                   Article 22

           Agriculture, forestry and rural areas

The Contracting Parties shall establish cooperation in the areas of
agriculture, forestry, agro-industry, agri-foodstuffs and tropical
products.

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

shalI examine:

   opportunities for developing trade in agricultural, forestry, agro   industrial and tropical products;

   measures governing human and plant health and the environment, and any
   obstacles there might be to trade in this field.

```

```
                     - 19 
The Contracting Parties shall furthermore endeavour to promote cooperation

on:

   the development of agriculture;

   the protection and sustainable development of forestry resources;

   the agricultural and rural environments;

   training in the field of rural development;

   contact between the Parties' agricultural producers, in the interests
   of facilitating trade operations and investment;

   agricultural research;

   agricultural statistics.

                   Article 23

                     Health

The Contracting Parties agree to cooperate to improve public health,
concentrating on the needs of the most disadvantaged sections of the
populat ion.

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;

   the development of vocational training programmes;

   the improvement of sanitary conditions (with particular regard to
   combating cholera) and well-being in urban and rural areas;

   the prevention and treatment of Acquired Immuno-Deficiency Syndrome

   (AIDS).

                   Article 24

                 Social development

1. The Contracting Parties shall establish cooperation to further social
development in the Andean Pact, with the particular aim of improving the
living conditions of the poorest sections of the subregion's population.

```

```
                     - 20 
2. Measures and programmes to implement those aims shall include support,
essentially in the form of technical assistance, in the following fields:

   social services administration;

   vocational training and job-creation;

   the improvement of living conditions and hygiene in urban and rural

   areas;

   preventive healthcare;

   protection of children;

   education and assistance programmes for young people;

   the role of women.

                    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 and reduce the production,
distribution and consumption of illegal drugs.

This cooperation shall include the following:

   projects for the benefit of Andean Pact nationals, providing training,
   education, treatment and rehabilitation for addicts;

   research programmes;

   cooperation measures and projects designed to encourage alternative
   opportunities, including alternative crops;

   exchanges of all relevant information, including information
   concerning measures relating to money-laundering;

   monitoring trade in essential chemicals;

   drug-abuse prevention programmes.

The Contracting Parties may by mutual agreement extend their cooperation to

other areas.

```

```
                   Article 26

            Regional integration and cooperation

The Contracting Parties shall take steps to encourage the integration of

the Andean countries.

Priority shall be given to:

   technical assistance with the technical and practical aspects of
   intégrât ion;

   promotion of subregional, regional and international trade;

   development of regional environmental cooperation;

   upgrading regional institutions and supporting the implementation of
   joint policies and activities;

   encouraging the development of regional communications.

                   Article 27

                    Government

The Contracting Parties shall cooperate in administrative matters in
institutional organization and in the administration of justice at
national, regional and municipal levels.

To these ends, they shall take steps aimed at:

   encouraging exchanges of information and training courses for
   national, regional and municipal officials and employees;

   increasing government efficiency.

                    Art icle 28

           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 the Andean Pact;

   encourage Community and Andean Pact Member States to strengthen their

   cultural ties.

```

```
                    - 22 
In particular, these measures shall take the form of:

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

   organization of cultural events and exchanges.

   preparatory studies and technical assistance for the preservation of
   the cultural heritage;

                   Art icle 29

                   Fisheries

The Contracting Parties acknowledge the importance of achieving a
convergence in their interests in the field of fisheries. They shall
therefore endeavour to intensify and develop cooperation in this regard
by:

   drawing up and implementing special programmes;

   encouraging the private sector to participate in developing this

   sector.

                   Art icle 30

                    Training

Wherever it is clear that improved training would strengthen cooperation,
appropriate action may be taken in areas of mutual interest, taking account
of new technologies in the field.

Such cooperation may take the form of:

   steps to improve the training of technicians and professionals;

   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 Andean
   countries, with particular emphasis on the technical, scientific and
   vocational sectors;

   literacy programmes linked to health and social development projects.

```

```
                   Article 31

           Resources for undertaking cooperation

The Contracting Parties undertake to make available, within the limits of
their abilities and through their own channels, the appropriate resources,
including financial resources. In this connection, multiannual programming
will be carried out and priorities determined, taking account of needs and
of the Andean Pact countries' level of development.

In order to facilitate the implementation of the cooperation measures
specified in this Agreement, the Andean Pact countries shall:

   grant Community experts the guarantees and facilities they require to
   carry out their tasks;

   exempt goods and services imported for the purposes of EC/Andean Pact
   cooperation projects from taxes, duties and other contributions.

These principles will be made explicit in subsequent arrangements, in line
with national legislations.

                   Article 32

                  Joint Committee [1 ]

1. The Contracting Parties agree to retain the Joint Committee
established pursuant to the 1983 Cooperation Agreement, together with the
Subcommittee on Science and Technology, the Subcommittee on Industrial
Cooperation and the Subcommittee on Trade Cooperation.

2. The Joint Committee shall:

   see to the proper functioning of the Agreement;

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

   study the development of trade and cooperation between the Parties;

   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
   areas covered by the 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 subsequent meetings, chairmanship, the
establishment of subcommittees additional to those already in existence,

and other issues.

   Unilateral declaration by the Andean Pact concerning the Junta del
   Acuerdo de Cartagena (JUNAC).

```

```
                    - 24 
                   Art icle 33

                 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 Andean Pact countries in the

field of economic cooperation or where appropriate to conclude new economic
cooperation agreements with the Andean Pact 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 Andean Pact countries where such provisions are either incompatible
with or identical to the provisions of this Agreement.

                   Article 34

            European Coal and Steel Community

A separate protocol shall be concluded between the European Coal and Steel
Community and its Member States, on the one hand, and the Cartagena
Agreement and its Member States on the other hand.

                   Article 35

               Territorial application

This Agreement shall apply, on the one hand, to the territories in which
the Treaty establishing the Community is applied and under the conditions
laid down in that Treaty and, on the other, to the territory covered by the
Cartagena Agreement.

                   Article 36

                     Annex

The Annex shall form an integral part of this Agreement.

                   Article 37

            Entry into force and tacit renewal

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. It
is concluded for a period of five years. It shall be renewed tacitly on a
yearly basis unless one of the Contracting Parties denounces it to the
other Party in writing six months before the date of expiry.

```

```
                   Article 38

                  Authentic texts

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.

                   Article 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 to
supplementing it by means of agreements on specific sectors or activities.

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.

```

```
        - 26 
EXCHANGE OF LETTERS ON SHIPPING

      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
Cartagena Agreement and its Member States 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, subject to
observance of 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 my highest consideration.

                           On behalf of the Council

                           of the European Communities

```

```
Sir,

I have the

fol lowing:

```

```
              - 27 
            Letter No 2

honour to acknowledge receipt of your letter and confirm the

```

```
"When the Agreement on cooperation between the European Community and the
Cartagena Agreement and its Member States 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, subject to the
observance of 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 my highest consideration.

                           For the Cartagena Agreement

                             and its Member States

```

```
                      - 28 
                FINANCIAL STATEMENT

               (FINANCIAL IMPLICATIONS)

1. Title of operation: EC-Andean Pact 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-Andean Pact 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 Andean countries, especially

     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.

```

**29** **-**

###### **ISSN 0254-1475**

#### **COM (92) 463 final**

# **DOCUMENTS**

## **EN 11**

### **Catalogue number : CB-CO-92-487-EN-C** **ISBN 92-77-49028-4**

###### **Office fot Official Publications of the European Communities** **L-2985 Luxembourg**