Source: EURLEX
Language: en
Format: md

EUROPEAN COMMISSION

Brussels, 26.7.2011
SEC(2011) 969 final

**RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL**

**on the approval of an Agreement for cooperation in the peaceful uses of nuclear energy**
**between the European Atomic Energy Community (Euratom) and the Government of**
**Canada**

**RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL**

**on the approval of an Agreement for cooperation in the peaceful uses of nuclear energy**
**between the European Atomic Energy Community (Euratom) and the Government of**
**Canada**

**1.** **I** **NTRODUCTION**

The Agreement between Euratom Atomic Energy Community and the Government of Canada
for cooperation in the peaceful uses of atomic energy covers most fields of mutual interest.

The Agreement has been amended five times since it was signed fifty years ago and these
successive modifications make it difficult to implement. The negotiating mandate was
adopted by the Council on 27 July 2009. The aim of the negotiations was to simplify the
Agreement, provided that additional provisions (in particular, on technology transfer) are
incorporated **.**

The Agreement provides for a broad cooperation in the area of peaceful uses of nuclear
energy setting up the overall framework for political, technical and industrial cooperation. It
will create a legal framework both for the governments and the industrial operators of the
Parties which will facilitate the cooperation in this field between the Parties.

**2.** **I** **MPORTANCE OF THE** **A** **GREEMENT**

The importance of concluding this Agreement is mainly based on commercial needs.

Canada has been the world's second largest uranium producer for many years, accounting for
about 22% of world output. Production is expected to increase significantly from 2013 as new
mines will come into operation. With known uranium resources of 572,000 tonnes of U 3 O 8
(485,000 tU), and continued exploration, Canada will have a significant role in meeting future
world demand.

For many years, Canada has been a leader in nuclear research and technology, exporting full
reactor systems. The country also plans to expand its nuclear capacity over the next 10 years
by building nine new reactors.

For Euratom, the interest in signing this Agreement stems from the fact that Canada is one of
its main suppliers of natural uranium. Facilitating trade in the nuclear domain contributes to
the Community's policy of security of energy supply and diversification of energy sources.

Furthermore, the conclusion of the present Agreement reaffirms the non-proliferation
commitment of Canada, the Community and the Governments of the Member States of the
European Union, the strengthening and strict application of safeguards and export control as
well as physical protection arrangements.

# EN 2 EN

**3.** **G** **ENERAL SCHEME OF THE** **A** **GREEMENT**

The Agreement has as its objective cooperation in the peaceful uses of nuclear energy
between Euratom and Canada. The scope of cooperation (Article III) mainly comprises
nuclear safety, the supply of nuclear material, technology transfer, transfer of equipment and
the transfer of tritium and tritium-related equipment.

The Agreement further defines the Items subject to this Agreement (Article IV) – different
forms of nuclear and non-nuclear material, equipment, tritium and tritium-related equipment –
and describes in detail modalities concerning the issue of enrichment (Article VI). The
Agreement contains a series of provisions determining criteria for the transfer of nuclear
material as well as the way of resolving conflicting situations. It is underlined that nuclear
material shall be used for peaceful purposes and in compliance with the safeguards
agreements (for the Community: the Euratom safeguards pursuant to the Euratom Treaty and
to the IAEA safeguards and its Additional Protocols [1] ).

International transfers and trade in nuclear materials are explicated in Article VII. The
Agreement restates the principles of free movement of nuclear materials within the
Community and tackles the issue of Reprocessing in Article VIII. Intellectual property issues
(Article IX) are dealt with in detail, as well as the modalities of Exchange of Information
between the Parties (Article X).

In order to guarantee the smooth implementation of the Agreement, a specific article on
Consultation and Arbitration (Article XII) is inserted to address questions on the correct
application of the Agreement. The duration of the Agreement is set with an initial period of 10
years, thereafter automatically renewed for additional periods of five years (Article XIV).

**4.** **C** **ONCLUSION**

The Commission considers that the Agreement for cooperation in the peaceful uses of nuclear
energy between the European Atomic Energy Community and the Government of Canada, the
adoption of which is proposed:

–
is in conformity with the negotiating directives issued by the Council on 27 July 2009;

–
fulfils the goals of simplifying, updating and extending the current Agreement;

–
confirms the clear commitment of the two Parties in favour of non-proliferation and a high
level of nuclear safety in order to guarantee the peaceful and safe use of nuclear energy;

–
is in line with the Community's policy on energy security of supply;

–
will further strengthen the very good relations between the EU and the Canada in the field
of energy policy cooperation.

The Commission therefore recommends to the Council to approve, pursuant to the second
paragraph of Article 101 of the Treaty establishing the European Atomic Energy Community,

1 INFCIRC/540.

# EN 3 EN

the Agreement for cooperation in the peaceful uses of nuclear energy between the European
Atomic Energy Community and the Government of Canada, in Annex.

# EN 4 EN

**ANNEX**

**AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE**

**EUROPEAN ATOMIC ENERGY COMMUNITY (EURATOM) FOR CO-**
**OPERATION IN THE PEACEFUL USES OF NUCLEAR ENERGY**

_PREAMBLE_

The Government of Canada and the European Atomic Energy Community (Euratom),
hereinafter referred to as "the Community",

CONSIDERING that the Government of Canada and the Community have expressed their
mutual desire for the development of close co-operation in the peaceful and non-explosive
uses of nuclear energy;

DESIRING to collaborate with each other in order to promote and enlarge the contribution
which the development of the peaceful uses of nuclear energy can make to welfare and
prosperity in Canada and within the Community;

RECOGNIZING that the Agreement between Canada and the European Atomic Energy
Community for co-operation in the area of nuclear research signed in 1998 provides for cooperation in the fields of common interest of Parties in the peaceful, non-explosive, nonmilitary uses of nuclear energy;

REAFFIRMING the strong commitment of the Government of Canada, the Community and
the Governments of its Member States to nuclear non-proliferation including the
strengthening and efficient application of the related safeguards and export control regimes
under which co-operation in the peaceful uses of nuclear energy between Canada and the
Community should be carried out;

REAFFIRMING the support of the Government of Canada, the Community and the
Governments of its Member States for the objectives of the International Atomic Energy
Agency (hereinafter referred to as "IAEA") and its safeguards system;

WHEREAS Canada and all Member States of the Community are Parties to the Treaty on the
Non-Proliferation of Nuclear Weapons, hereinafter referred to as "NPT";

NOTING that nuclear safeguards are applied in all Member States of the Community pursuant
both the Treaty establishing the European Atomic Energy Community (hereinafter referred to
as "the Euratom Treaty") and under safeguards agreements concluded between the
Community, its Member States and the IAEA;

NOTING that account should be taken of the commitments made by the Government of
Canada and the Government of each Member State of the Community in the framework of the
Nuclear Suppliers Group;

# EN 5 EN

RECOGNIZING the principle of the free movement of nuclear material, equipment,
non-nuclear material, and technology within the Community;

AGREEING that the Agreement should be in compliance with international obligations of the
European Union and the Government of Canada under the World Trade Organisation;

REITERATING commitments of the Government of Canada and the Governments of

Member States of the Community to their bilateral agreements in the peaceful uses of nuclear

energy;

CONSIDERING that an arrangement providing for co-operation in the peaceful uses of
nuclear energy would reinforce an existing fruitful exchange of experience, provide
opportunities for mutually beneficial action and reinforce solidarity within Europe and across
the Atlantic;

HAVE AGREED AS FOLLOWS:

**Article I**

**Definitions**

For the purpose of this Agreement, except as otherwise specified therein,

1. "Parties" means the Government of Canada on the one hand and the Community on
the other hand; the term "Party" means one of the above "Parties";

"the Community" means both:

(a) the legal person created by the Euratom Treaty; and

(b) the territories to which the Euratom Treaty applies;

2. "persons" means any natural person, undertaking or other entity governed by the
applicable laws and regulations in the respective territorial jurisdiction of the Parties,
but does not include the Parties;

3. "competent authority" means:

(a) for the Government of Canada, the Canadian Nuclear Safety
Commission;

(b) for the Community, the European Commission

or such other authority as the Party concerned may at any time notify in writing to
the other Party;

4. "equipment" means items of machinery or plant, as listed in Annex A.1 to this
agreement, specially suitable for use in nuclear energy projects;

5. "non-nuclear material" means:

# EN 6 EN

Deuterium and heavy water: deuterium, heavy water (deuterium oxide) and any other
deuterium compound in which the ratio of deuterium to hydrogen exceeds 1:5000,
for use in a nuclear reactor,

Nuclear grade graphite: graphite, for use in a nuclear reactor as moderator material,
having a purity level better than 5 parts per million boron equivalent and with a
density greater than 1.50 grams per cubic centimetre;

6. "nuclear material" means any source material or special fissionable material as those
terms are defined in Article XX of the Statute of the IAEA. Any determination by the
Board of Governors of the IAEA under Article XX of the IAEA's Statute that

amends the list of material considered to be "source material" or "special fissionable
material", shall only have effect under this Agreement when the Parties have
informed each other in writing that they accept that determination;

7. "technology" has the meaning defined in Annex A of IAEA Information Circular
INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers);

8. "fusion programme" means the Euratom programme for research and training in the
field of controlled thermonuclear fusion as adopted by Decision of the Council of the
European Union, pursuant to Article 7 of the Euratom Treaty, as well as any further
programme in that field adopted by Council Decision;

9. "tritium" refers to compounds and mixtures that contain tritium in which the ratio of
tritium to hydrogen by atoms is greater than 1 part per 1000;

10. "tritium-related equipment and technology" means equipment especially designed or
prepared for the production, recovery, extraction, concentration or handling of
tritium and its compounds and mixtures in the framework of the specific needs of the
fusion programme or the operation of Pressurized Heavy Water Reactors;

11. "by-product" means special fissionable material derived by one or more processes,
whether successive or not, from nuclear material transferred pursuant to this
Agreement.

**Article II**

**Objective**

1. The objective of this Agreement is to provide a framework for co-operation between
the Parties in the peaceful uses of nuclear energy on the basis of mutual benefit and
reciprocity and without prejudice to the respective competences of each Party.

2. Nuclear material, equipment, non-nuclear material, tritium and tritium-related
equipment transferred pursuant to this Agreement or nuclear material produced as a
by-product shall not be used other than for peaceful purposes; nor shall they be used
for any nuclear explosive device, for research or for development of any such device.

# EN 7 EN

**Article III**

**Scope of co-operation**

The co-operation intended by this Agreement relates to the peaceful uses of nuclear energy
and may include, inter alia:

(a) the supply of information related to:

(i) health and safety,

(ii) equipment, facilities and devices (including the supply of designs, drawings,
and specifications),

(iii) uses of nuclear material, non-nuclear material, equipment, facilities and
devices (including manufacturing processes and specifications); and

(iv) external nuclear assistance programmes of the Parties;

(b) the supply of nuclear material, non-nuclear material, and equipment;

(c) technology transfer, including the supply of information as defined in point (a) of
this article, provided that the individual Member States of the Community involved
accept placing such transfers in the framework of this Agreement;

(d) transfer of equipment which has been designated by the Parties as equipment
designed, constructed or operated on the basis of or by the use of information
obtained from the other Party and which is within the jurisdiction of one of the
Parties at the time of designation;

(e) the procurement of equipment and devices;

(f) the use of intellectual property rights;

(g) access to and use of equipment and facilities;

(h) direct or indirect transfer of tritium for its use in the fusion programme and of
tritium-related equipment and technology for its use in the fusion programme or the
operation of Pressurized Heavy Water Reactors, or its return to the supplying Party;

(i) cooperation in planning and execution of the Parties' external nuclear assistance

programmes;

(j) other areas relevant to the subject of this Agreement.

**Article IV**

**Items subject to the Agreement**

1. Nuclear material, non-nuclear material, equipment, tritium and tritium-related
equipment transferred between the Parties or their respective persons, whether
directly or through a third country, shall become subject to this Agreement upon their

# EN 8 EN

entry into the territorial jurisdiction of the receiving Party, provided that the
supplying Party has notified the receiving Party in writing of the intended transfer
and that the receiving Party has confirmed in writing that such item will be held
subject to this Agreement, and that the proposed recipient, if other than the receiving
Party, will be an authorised person under the territorial jurisdiction of the receiving
Party.

2. Nuclear material, non-nuclear material, equipment, tritium and tritium-related
equipment referred to in paragraph 1 of this Article shall remain subject to the
provisions of this Agreement until it has been determined, in accordance with the
procedures set out in the Administrative Arrangement:

–
that such item has been re-transferred beyond the jurisdiction of the receiving
Party;

–
that nuclear material is no longer usable for any nuclear activity relevant from
the point of view of safeguards referred to in subparagraph a) of paragraph 6 of
Article VII or has become practically irrecoverable;

–
that equipment and non-nuclear material are no longer usable for nuclear

purposes;

–
that tritium and tritium-related equipment are no longer usable for the fusion
programme or the operation of Pressurized Heavy Water Reactors;

–
or that the Parties agree that it should no longer be subject to this Agreement.

3. Technology transfer shall be subject to this Agreement for the Member States of the
Community which agree to place such transfers in the framework of this Agreement.
Technology transferred between the Parties or their respective persons, whether
directly or through a third country, shall become subject to this Agreement upon its
entry into the territorial jurisdiction of the receiving Party, provided that the
supplying Party has notified the receiving Party in writing of the intended transfer
and that the receiving Party has confirmed in writing that such item will be held
subject to this Agreement, and that the proposed recipient, if other than the receiving
Party, will be an authorized person under the territorial jurisdiction of the receiving
Party.

4. Tritium and tritium-related equipment and technology will be used solely for the
Fusion Programme and Pressurized Heavy Water reactors.

5. In addition to the items subject to this Agreement pursuant to paragraph 1 above, the
following material, nuclear material and equipment will be subject to this
Agreement:

i) Non-nuclear material or nuclear material that is produced or processed by the
use of the installations subject to this Agreement listed in Annex A.2;

ii) Nuclear material that is produced or processed by the use of any nuclear
material or non-nuclear material subject to this Agreement; and

# EN 9 EN

iii) Equipment which the recipient Party, or the supplying Party after consultation
and agreement with the recipient Party, has designated as being designed,
constructed, manufactured or operated on the basis of, or by the use of
technology subject to this Agreement, transferred pursuant to paragraph 1
above.

**Article V**

**Implementation arrangements**

1. The provisions of this Agreement shall be implemented in good faith in such a
manner as to avoid hampering, delay or undue interference in the nuclear activities in
Canada and in the Community and so as to be consistent with the prudent
management practices required for the economic and safe conduct of nuclear
activities.

2. The provisions of this Agreement shall not be used for the purpose of seeking
commercial or industrial advantages, nor of interfering with the commercial or
industrial interests, whether domestic or international, of either Party or authorised
persons, nor of interfering with the nuclear policy of either Party or of the
Governments of the Member States of the Community, nor of hindering the
promotion of the peaceful and non-explosive uses of nuclear energy, nor of hindering
the movement of items subject to or notified to be made subject to this Agreement
either within the respective territorial jurisdiction of the Parties or between the
Government of Canada and the Community.

3. In implementing the provisions of this Agreement, Canada, the Community and its
Member States shall act in conformity with the provisions of the Convention on
Nuclear Safety (IAEA Information Circular INFCIRC/449), the Joint Convention on
the Safety of Spent Fuel Management and on the Safety of Radioactive Waste
Management (IAEA Information Circular INFCIRC/546), the Convention on
Assistance in the case of a Nuclear Accident or Radiological Emergency (IAEA
Information Circular INFCIRC/336), and the Convention on Early Notification of a
Nuclear Accident (IAEA Information Circular INFCIRC/335).

4. The competent authorities of both Parties shall establish an administrative
arrangement to ensure the effective implementation of the provisions of this
Agreement and shall consult regularly or at any other time at the request of either
competent authority.

5. Consistent with the laws, regulations and policies of the Parties, the administrative
arrangement may include procedures to, inter alia:

(a) obtain written consent of the other Party prior to the transfer of any nuclear
material, non-nuclear material, equipment or technology subject to the
Agreement as specified in Article VII, paragraph (6)(d);

(b) manage generic retransfers of nuclear material, non-nuclear material,
equipment or technology;

# EN 10 EN

(c) report on and account for holdings of nuclear material subject to this
Agreement according to the principles of equivalence, fungibility, and
proportionality.

(d) determine that an item is no longer subject to the Agreement in accordance
with the provisions of Article IV, paragraph 2.

6. An administrative arrangement established pursuant to paragraph 4 of this Article
may be amended by written agreement between the competent authorities of the
Parties.

**Article VI**

**Enrichment**

Prior to the enrichment of any nuclear material subject to this Agreement to twenty (20)
percent or more in the isotope U 235, the written consent of both Parties shall be obtained and
the IAEA shall be notified. Such consent shall describe the conditions under which the

uranium enriched to twenty (20) percent or more may be used. An agreement to facilitate the
implementation of this provision may be established by the Parties.

**Article VII**

**International transfers and trade in nuclear materials**

1. Any nuclear transfer carried out pursuant to the co-operation activities shall be made
in accordance with the relevant international commitments of the Community, the
Member States of the Community, and the Government of Canada in relation to
peaceful uses of nuclear energy as listed in paragraph 6 of this Article.

2. The Parties shall, to such extent as is practicable, assist each other in the
procurement, by either Party or by persons within the Community or under the
jurisdiction of the Government of Canada, of nuclear material, non-nuclear material,
equipment and other requisites for nuclear energy research, development and
production within the Community or in Canada.

3. The continuation of the co-operation envisaged in the present Agreement shall be
contingent upon the mutually satisfactory application of the system for safeguards
and control established by the Community in accordance with the Euratom Treaty
and of the measures for accounting for the use of nuclear material, non-nuclear
material or equipment established by the Government of Canada.

4. The provisions of this Agreement shall not be used to impede the free movement of
nuclear material, non-nuclear material, equipment, tritium, tritium-related equipment
and technology within the territory of the Community.

5. Transfers of nuclear material and appropriate services shall be carried out under fair
commercial conditions. The implementation of this paragraph shall be without
prejudice to the Euratom Treaty and its derived legislation.

6. a) Transfer of nuclear material shall be subject to the following conditions:

# EN 11 EN

i) In the Community, to the Euratom safeguards pursuant to the Euratom
Treaty and to the IAEA safeguards pursuant to the following safeguards
agreements, as relevant, and as they may be revised and replaced, so long
as coverage as required by the Non-Proliferation Treaty is provided for:

–
The Agreement between the Community's non-nuclear weapon Member
States, European Atomic Energy Community and the International
Atomic Energy Agency, which entered into force on 21 February 1977
(published as INFCIRC/193);

–
The Agreement between France, Euratom Atomic Energy Community
and the International Atomic Energy Agency, which entered into force on
12 September 1981 (published as INFCIRC/290) and constitutes France's
voluntary offer agreement with the Agency. The Agreement between the
United Kingdom, European Atomic Energy Community and the
International Atomic Energy Agency, which entered into force on 14
August 1978 (published as INFCIRC/263) and constitutes United
Kingdom’s voluntary offer agreement with the Agency.

–
The Additional Protocols concluded on 22 September 1998 which
entered into force on 30 April 2004 on the basis of the document
published as INFCIRC/540 (Strengthened Safeguards System, Part II);

ii) In Canada, to the IAEA safeguards pursuant to the Agreement between
Canada and the International Atomic Energy Agency for the Application
of Safeguards in connection with the Treaty on the Non-Proliferation of
Nuclear Weapons, which entered into force on 21 February 1972
(published as INFCIRC/164); supplemented by an Additional Protocol
concluded on 24 September 1998 on the basis of the document published
as INFCIRC/164/Add.1 (Strengthened Safeguards System, Part II) which
entered into force on 8 September 2000.

b) In the event of the application of any of the Agreements with the IAEA
referred to in paragraph 6 a) of this article being suspended or terminated for
any reason within the Community or Canada, the relevant Party shall enter into
an agreement with the IAEA which provides for effectiveness and coverage
equivalent to that provided by the safeguards agreements referred to in
provisions i) or ii) of paragraph 6 a) of this article, or, if that is not possible,

            - the Community, as far as it is concerned, shall apply safeguards based on the
Euratom safeguards system, which provides for effectiveness and coverage
equivalent to that provided by the safeguards agreements referred to in
provision i) of paragraph 6 a) of this article or, if that is not possible,

            - the Parties shall enter arrangements for the application of safeguards, which
provide for effectiveness and coverage equivalent to that provided by the
safeguards agreements referred to in provisions i) or ii) of paragraph 6 a).

c) Application of physical protection measures shall be at all times at levels which
satisfy as a minimum the criteria set out in Annex C to IAEA Information
Circular INFCIRC/254/Rev.9/Part 1 (Guidelines for Nuclear Transfers);

# EN 12 EN

supplementary to this document, the Member States of the Community, the
European Commission, as appropriate, and Canada will refer when applying
physical protection measures to the recommendations in IAEA Information
Circular INFCIRC/225/Rev.5 (Nuclear Security Recommendations on Physical
Protection of Nuclear Material and Nuclear Facilities). International transport
shall be subject to the provisions of the International Convention on the
Physical Protection of Nuclear Material (IAEA Information Circular
INFCIRC/274/Rev.1) and to the IAEA Regulations for the Safe Transport of
Radioactive Materials (IAEA Safety Standards Series No. TS-R-1).

d) Nuclear material, non-nuclear material, equipment and technology subject to
this Agreement shall not be transferred beyond the territorial jurisdiction of the
receiving Party without the prior written consent of the supplier Party, except
in accordance with sub-paragraph (e).

e) Upon entry into force of this agreement, the competent authorities of both
Parties shall exchange lists of third countries to which retransfers of natural
uranium, depleted uranium, other source materials, uranium enriched to less
than 20% in the isotope U235, and non-nuclear materials are authorised by the
other Party. The competent authorities of each Party shall notify the other of
changes to its list of third countries. Procedures acceptable to the Parties
related to such retransfers shall be established.

f) Retransfers of any items subject to this Agreement outside the jurisdiction of
the Parties shall only be made under the framework of the commitments
undertaken by the group of nuclear supplier countries known as the Nuclear
Suppliers Group, as set out in IAEA Information Circular INFCIRC/254/Rev.
9/Part 1.

g) Retransfers of tritium and tritium-related equipment outside the territories of
the Parties are subject to the prior written consent of the relevant Party.

**Article VIII**

**Reprocessing**

The Parties grant their consent to the reprocessing of nuclear fuel containing nuclear material
subject to this agreement provided that such reprocessing takes place in accordance with the
conditions set out in Annex B.

**Article IX**

**Intellectual Property**

The Parties shall ensure the adequate and effective protection of intellectual property created
and technology transferred pursuant to the co-operation under this Agreement in accordance
with the relevant international agreements and the laws and regulations in force in Canada and
in the European Union and Community or their Member States.

**Article X**

**Exchange of information**

# EN 13 EN

1. (a) The Parties may make available to each other and to persons within the
Community or under the jurisdiction of the Government of Canada,
information at their disposal on matters within the scope of this Agreement.

(b) The supply of information received from any third party under terms
preventing such supply shall be excluded from the scope of Agreement.

(c) Information regarded by the supplying Party as being of commercial value
shall be supplied only under the terms and conditions specified by the Parties.

2. (a) The Parties shall encourage and facilitate the exchange of information between
persons under the jurisdiction of the Government of Canada on the one hand
and persons within the Community on the other hand on matters within the
scope of this Agreement.

(b) Information owned by such persons shall be supplied only with the consent of
and under the terms and conditions to be specified by those persons.

3. The Parties shall to such extent as is practicable provide technical advice to each
other or to persons within the Community or under the jurisdiction of the
Government of Canada by the secondment of experts or in such other ways as may
be agreed.

4. Each Party shall, wherever possible, provide in its own schools or facilities, and
assist in obtaining elsewhere in Canada or within the Community, training in subjects
relevant to the peaceful uses of nuclear energy for students and trainees
recommended by the other.

**Article XI**

**Applicable law**

1. The co-operation provided for in this Agreement shall be in accordance with the
laws, regulations in force in Canada and within the European Union and Community
as well as with the international agreements entered into by the Parties. For the
Community, the applicable law includes the Euratom Treaty and its derived
legislation.

2. Each Party shall be responsible toward the other for ensuring that the provisions of
this Agreement are accepted and complied with as to Canada by all of its
governmental enterprises and by all persons under its jurisdiction, and as to the
Community by all persons within the Community to whom authorisation has been
granted pursuant to this Agreement.

3. The revised versions of the IAEA documents and Information Circulars mentioned in

this Agreement will be taken into account and made applicable when agreed by the
Parties.

**Article XII**

**Consultation and arbitration**

# EN 14 EN

1. At the request of either Party, representatives of the Parties shall meet when
necessary to consult with each other on matters arising out of the application of the
present Agreement, to supervise its operation and to discuss arrangements for cooperation additional to those provided in the present Agreement. Such consultations
may take also the form of an exchange of correspondence.

2. Any dispute arising out of the interpretation or application of this Agreement which
is not settled by negotiation or as may otherwise be agreed between the Parties shall,
on the request of either Party, be submitted to an arbitral tribunal which shall be
composed of three arbitrators. Each Party shall designate one arbitrator and the two
arbitrators so designated shall elect a third, not a national of either Party, who shall
be the Chairman. If within thirty days of the request for arbitration either Party has
not designated an arbitrator, the other Party to the dispute may request the President
of the International Court of Justice to appoint an arbitrator to the Party which has
not designated an arbitrator. If within thirty days of the designation or appointment
of arbitrators for both the Parties the third arbitrator has not been elected, either Party
may request the President of the International Court of Justice to appoint the third
arbitrator. A majority of the members of the arbitral tribunal shall constitute a
quorum, and all decisions shall be made by majority vote of all the members of the
arbitral tribunal. The arbitral procedure shall be fixed by the tribunal. The decisions
of the tribunal shall be binding on both Parties and implemented by them. The
remuneration of the arbitrators shall be determined on the same basis as that for ad

hoc judges of the International Court of Justice.

**Article XIII**

**Status of Annexes**

The Annexes to this Agreement form an integral part of this Agreement. They may be
modified by mutual consent in writing of the Government of Canada and the European
Commission without amendment of this Agreement.

**Article XIV**

**Entry into force and duration**

1. This Agreement shall enter into force on the date of the latter written notification that
internal procedures necessary for its entry into force have been completed by the
Parties.

2. This Agreement shall remain in force for a period of ten years. Thereafter this
Agreement shall be automatically renewed for additional periods of five years,
unless, at least six months before the expiration of any such additional period, a Party
notifies the other Party of its intention to terminate the Agreement.

3. If either Party or any Member State of the Community violates any of the material
provisions of the Agreement, the other Party may, on giving written notice to that
effect, suspend or terminate in whole or in part co-operation under this Agreement.
Before either Party takes action to that effect, the Parties shall consult with a view to
reaching agreement on the corrective measures to be taken and on the time-scale
within which such measures shall be taken. Such action shall be taken only if there

# EN 15 EN

has been failure to take agreed measures within the agreed time or, in the event of
failure to reach agreement after the lapse of a period of time defined by the Parties.

4. The present Agreement replaces the Agreement signed by the Parties on the 6th day
of October, 1959 [2] and amended on 1959, 1978, 1981, 1985 and 1991.

This Agreement shall be drawn up in duplicate, in the Bulgarian, Czech, Danish, Dutch,
English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian,
Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages,
all twenty-two texts being equally authentic.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto have signed the
present Agreement.

For the European Atomic Energy Community For the Government of Canada

2 OJ 1165/59

# EN 16 EN

**ANNEX A.1**               - Equipment

1. Nuclear reactors and especially designed or prepared equipment and components
therefor

1.1. Complete nuclear reactors

1.2. Nuclear reactor vessels

1.3. Nuclear reactor fuel charging and discharging machines

1.4. Nuclear reactor control rods and equipment

1.5. Nuclear reactor pressure tubes

1.6. Zirconium tubes

1.7. Primary coolant pumps

1.8. Nuclear reactor internals

1.9. Heat exchangers

1.10. Neutron detection and measuring instruments

2. Plants for the reprocessing of irradiated fuel elements, and equipment especially
designed or prepared therefor

2.1. Irradiated fuel element chopping machines

2.2. Dissolvers

2.3. Solvent extractors and solvent extraction equipment

2.4. Chemical holding or storage vessels

3. Plants for the fabrication of nuclear reactor fuel elements, and equipment especially
designed or prepared therefor

4. Plants for the separation of isotopes of natural uranium, depleted uranium or special
fissionable material and equipment, other than analytical instruments, especially
designed or prepared therefor

4.1. Gas centrifuges and assemblies and components especially designed or prepared for
use in gas centrifuges

4.1.1. Rotating components

4.1.2. Static components

4.2. Especially designed or prepared auxiliary systems, equipment and components for gas
centrifuge enrichment plants

# EN 17 EN

4.2.1. Feed systems/product and tails withdrawal systems

4.2.2. Machine header piping systems

Especially designed or prepared piping systems and header systems for handling UF6 within
the centrifuge cascades.

4.2.3 Special shut-off and control valves

4.2.4. UF6 mass spectrometers/ion sources

4.2.5. Frequency changers

4.3. Especially designed or prepared assemblies and components for use in gaseous diffusion
enrichment

4.3.1. Gaseous diffusion barriers

4.3.2. Diffuser housings

4.3.3. Compressors and gas blowers

4.3.4. Rotary shaft seals

4.3.5. Heat exchangers for cooling UF6

4.4. Especially designed or prepared auxiliary systems, equipment and components for use in
gaseous diffusion enrichment

4.4.1. Feed systems/product and tails withdrawal systems

Especially designed or prepared process systems, capable of operating at pressures of 300kPa
(45psi) or less.

4.4.2. Header piping systems

4.4.3. Vacuum systems

4.4.4. Special shut-off and control valves

4.4.5. UF6 mass spectrometers/ion sources

4.5. Especially designed or prepared systems, equipment and components for use in
aerodynamic enrichment plants

4.5.1. Separation nozzles

4.5.2. Vortex tubes

4.5.3. Compressors and gas blowers

4.5.4. Rotary shaft seals

# EN 18 EN

4.5.5. Heat exchangers for gas cooling

4.5.6. Separation element housings

4.5.7. Feed systems/product and tails withdrawal systems

4.5.8. Header piping systems

4.5.9. Vacuum systems and pumps

4.5.10. Special shut-off and control valves

4.5.11. UF6 mass spectrometers/Ion sources

4.5.12. UF6/carrier gas separation systems

4.6. Especially designed or prepared systems, equipment and components for use in chemical
exchange or ion exchange enrichment plants

4.6.1. Liquid-liquid exchange columns (Chemical exchange)

4.6.2. Liquid-liquid centrifugal contactors (Chemical exchange)

4.6.3. Uranium reduction systems and equipment (Chemical exchange)

4.6.4. Feed preparation systems (Chemical exchange)

4.6.5. Uranium oxidation systems (Chemical exchange)

4.6.6. Fast-reacting ion exchange resins/adsorbents (Ion exchange)

4.6.7. Ion exchange columns (Ion exchange)

4.6.8. Ion exchange reflux systems (Ion exchange)

4.7. Especially designed or prepared systems, equipment and components for use in laserbased enrichment plants

4.7.1. Uranium vaporization systems (AVLIS)

4.7.2. Liquid uranium metal handling systems (AVLIS)

4.7.3. Uranium metal 'product' and 'tails' collector assemblies (AVLIS)

4.7.4. Separator module housings (AVLIS)

4.7.5. Supersonic expansion nozzles (MLIS)

4.7.6. Uranium pentafluoride product collectors (MLIS)

4.7.7. UF6/carrier gas compressors (MLIS)

4.7.8. Rotary shaft seals (MLIS)

# EN 19 EN

4.7.9. Fluorination systems (MLIS)

4.7.10. UF6 mass spectrometers/ion sources (MLIS)

4.7.11. Feed systems/product and tails withdrawal systems (MLIS)

4.7.12. UF6/carrier gas separation systems (MLIS)

4.7.13. Laser systems (AVLIS, MLIS and CRISLA)

4.8. Especially designed or prepared systems, equipment and components for use in plasma
separation enrichment plants

4.8.1. Microwave power sources and antennae

Especially designed or prepared microwave power sources and antennae for producing or
accelerating ions.

4.8.2. Ion excitation coils

4.8.3. Uranium plasma generation systems

4.8.4. Liquid uranium metal handling systems

4.8.5. Uranium metal 'product' and 'tails' collector assemblies

4.8.6. Separator module housings

4.9. Especially designed or prepared systems, equipment and components for use in
electromagnetic enrichment plants

4.9.1. Electromagnetic isotope separators

4.9.2. High voltage power supplies

4.9.3. Magnet power supplies.

5. Plants for the production or concentration of heavy water, deuterium and deuterium
compounds and equipment especially designed or prepared therefor

5.1. Water - Hydrogen Sulphide Exchange Towers

5.2. Blowers and Compressors

5.3. Ammonia-Hydrogen Exchange Towers

5.4. Tower Internals and Stage Pumps

5.5. Ammonia Crackers

5.6. Infrared Absorption Analyzers

5.7. Catalytic Burners

# EN 20 EN

5.8. Complete heavy water upgrade systems or columns therefor

6. Plants for the conversion of uranium and plutonium for use in the fabrication of fuel
elements and the separation of uranium isotopes as defined in sections 4 and 5 respectively,
and equipment especially designed or prepared therefor

6.1. Plants for the conversion of uranium and equipment especially designed or prepared
therefor

6.1.1. Especially designed or prepared systems for the conversion of uranium ore concentrates
to UO3

6.1.2. Especially designed or prepared systems for the conversion of UO3 to UF6

6.1.3. Especially designed or prepared systems for the conversion of UO3 to UO2

6.1.4. Especially designed or prepared systems for the conversion of UO2 to UF4

6.1.5. Especially designed or prepared systems for the conversion of UF4 to UF6

6.1.6. Especially designed or prepared systems for the conversion of UF4 to U metal

6.1.7. Especially designed or prepared systems for the conversion of UF6 to UO2

6.1.8. Especially designed or prepared systems for the conversion of UF6 to UF4

6.1.9. Especially designed or prepared systems for the conversion of UO2 to UCl4

6.2. Plants for the conversion of plutonium and equipment especially designed or prepared
therefor

6.2.1. Especially designed or prepared systems for the conversion of plutonium nitrate to
oxide

6.2.2. Especially designed or prepared systems for plutonium metal production

# EN 21 EN

**ANNEX A.2 -** Complete installations

1. Nuclear reactors;

2. Plants for the reprocessing of irradiated fuel elements;

3. Plants for the fabrication of nuclear reactor fuel elements;

4. Plants for the separation of isotopes of natural uranium, depleted uranium or special
fissionable material;

5. Plants for the production or concentration of heavy water, deuterium and deuterium
compounds;

6. Plants for the conversion of plutonium.

# EN 22 EN

**ANNEX B -** Reprocessing

The guidelines set forth below should cover reprocessing and plutonium storage and use:

(a) an effective commitment to non-proliferation should have been made and should
continue to be maintained by the party envisaging reprocessing and plutonium
storage and use;

(b) all nuclear material subject to a peaceful uses commitment in facilities involved in
reprocessing and the storage and use of plutonium should be subject to IAEA
safeguards;

(c) all nuclear material subject to a peaceful uses commitment in facilities involved in
reprocessing and the subsequent storage and use activities, including related
transport, should be subject to adequate physical protection measures;

(d) mutually satisfactory notification and material reporting procedures should be in
place between the parties ;

(e) a description of the current and planned nuclear energy programme including in
particular a detailed description of the policy, legal and regulatory elements relevant
to reprocessing and plutonium storage and use should be provided by the party
envisaging such activities.,

(f) the parties should agree to periodic and timely consultations at which inter alia the
information provided under guideline (e) should be updated and significant changes
in the nuclear energy programme would receive the fullest possible consideration ;

(g) the reprocessing and plutonium storage envisaged should only take place so long as
the commitment of the party in question to non-proliferation does not change and so
long as the commitment to periodic and timely consultations referred to in guideline
(f) is honoured.

# EN 23 EN

**DRAFT AGREED MINUTES**

In connection with the Agreement between the Government of Canada and the European
Atomic Energy Community (EURATOM) for Co-operation in the Peaceful Uses of Nuclear
Energy, signed at […] (hereinafter referred to as "the Agreement"), the undersigned hereby
record the following understandings:

(1) With reference to the provisions of paragraph 3 of Article IV, it is confirmed that
they are applicable only to technology transfers made between Canada and the
Member States having expressed their willingness to place such transfers in the
framework of the Agreement which are listed in the Annex to these Agreed Minutes.

(2) With reference to the provisions of paragraph 5, sub-paragraph (i), of Article IV, it is
understood that it is the Parties' intent to treat foreign-origin nuclear material and
non-nuclear material produced or processed in a complete installation as per Annex
A.2 supplied by the other Party as being subject to the obligations set out in the
Agreement, notably the accountancy and reporting obligations of Article V,
paragraph 5.c).

(3) For the purpose of paragraph 5, sub-paragraph (ii), of Article IV, the Parties wish to
emphasize that "non-nuclear material" refers to non-nuclear material supplied in
significant quantities to the other Party for the purpose of being used as moderator.

(4) With reference to the list set out in Annex A.2, it is confirmed that this list does not
apply to the transfer of equipment listed in Annex A.1 and that the sole purpose of
the list set out in Annex A.2 is in relation to the application of paragraph 5, subparagraphs i) and iii), of Article IV, which is limited to full installations.

SIGNED at Brussels, […]

For the European Atomic Energy Community For the Government of Canada

**ANNEX**

List of EU Member States that have expressed their willingness to place technology transfer
in the framework of the Agreement.

# EN 24 EN