Source: EURLEX
Language: en
Format: md

8 . 4 . 97 I EN I Official Journal of the European Communities No C 109 / 9

COOPERATION AGREEMENT

between the European Community and the Lao People 's Democratic Republic

THE COUNCIL OF THE EUROPEAN UNION,

of the one part, and

THE GOVERNMENT OF THE LAO PEOPLE 'S DEMOCRATIC REPUBLIC,

of the other part,

hereinafter referred to as ' the Parties ',

WELCOMING the increase in trade and cooperation which has taken place between the European
Community, hereinafter referred to as ' the Community ', and the Lao People 's Democratic Republic, here ­
inafter referred to as ' Laos ';

RECOGNIZING the excellent relations and ties of friendship and cooperation between the Community
and Laos ;

REAFFIRMING the importance of further strengthening ties between the Community and Laos ;

RECOGNIZING the importance the Parties attach to the principles of the United Nations Charter, to the
Universal Declaration of Human Rights, to the 1993 Vienna Declaration and the Plan of action of the
World Conference on Human Rights, to the 1995 Copenhagen Declaration on Social Development and
the associated plan of action, and to the 1995 Beijing Declaration and the plan of action of the 4th World
Conference on Women ;

REAFFIRMING the Parties ' common will to consolidate, deepen and diversify their relations in areas of
mutual interest on a footing of equality, non-discrimination, mutual benefit and reciprocity ;

DESIROUS of creating favourable conditions for the development of trade and investment between the
Community and Laos, and the need to adhere to the principles of international trade, the purpose of which
is to promote trade liberalization in a stable, transparent and non-discriminatory manner which takes
account of the Parties ' economic differences ;

RECOGNIZING the need to support the current process of economic reform in order to guarantee Laos '
transition to a market economy, with due regard for the importance of the social development which
should go hand in hand with economic development and the common commitment to respecting social
rights ;

RECOGNIZING the need to support the Laotian government 's efforts to improve the living conditions of
the poorest and most disadvantaged sections of the population, with a special emphasis on the status of

women ;

CONSIDERING the importance accorded by the Parties to the protection of the environment at all levels
and to the sustainable management of natural resources, taking account of the links between the
environment and development ;

No C 109 / 10 EN Official Journal of the European Communities 8 . 4 . 97

HAVE DECIDED TO CONCLUDE this Agreement and to this end have designated as their plenipoten ­
tiaries :

THE COUNCIL OF THE EUROPEAN UNION,

President

Manuel MARIN
Vice-President of the Commission of the European Communities,

THE GOVERNMENT OF THE LAO PEOPLE 'S DEMOCRATIC REPUBLIC

Somsavath LENGSAVAD

Minister of Foreign Affairs,

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

HAVE AGREED AS FOLLOWS :

Article 1 or free trade areas, trade arrangements with neigh ­
Basis bouring countries or specific obligations under inter ­
national commodity agreements ;

Respect for the democratic principles and fundamental
human rights established by the Universal Declaration on
Human Rights inspires the internal and international
policies of the Community and of the Lao People 's
Democratic Republic and constitutes an essential element
of this Agreement .

Article 2

Objectives

The main objective of the Agreement is to provide a
framework for enhancing cooperation between the
Parties, within their respective areas of jurisdiction, with
the following aims :

( a ) to accord each other most-favoured-nation treatment

on trade in goods in all areas specifically covered by
the Agreement, save as regards advantages accorded
by either Party within the context of customs unions

( b ) to promote and intensify trade between the Parties,

and to encourage the steady expansion of sustainable
economic cooperation, in accordance with the prin ­
ciples of equality and mutual advantage ;

( c ) to strengthen cooperation in fields closely related to

economic progress and benefiting both Parties ;

( d ) to develop lasting trade relations and diversify trade

between the Community and Laos, to achieve a
lasting opening-up of markets to a degree which is
compatible with the Parties ' economic situations and
the assistance which Laos will need in the light of its
application to join the WTO ;

8 . 4 . 97 EN I Official Journal of the European Communities No C 109 / 11

( e ) to contribute to Laos ' efforts to improve the quality training, education, health care and the rehabilitation of
addicts .

of life and standards of living of the poorest sections
of its population, together with measures using rural
development to combat poverty in the countryside
and assistance with achieving the transition to a
market economy and developing human resources in
a number of sectors of the economy ;

( f ) to encourage job creation in both the Community

and Laos, with priority being accorded to
programmes and operations which could have a
favourable effect in this respect . The Parties shall
also exchange views and information on their
respective initiatives in this field, step up and
diversify their economic links and establish
conditions conducive to job creation ;

The Parties acknowledge the importance of human
resources development, social development, the
improvement of living and working conditions, the
development of skills and the protection of the most
vulnerable sections of the population . Human resources

and social development must be an integral part of
economic and development cooperation . Appropriate
consideration shall therefore be given to training
objectives addressing institutional needs and specific
vocational training activities aimed at enhancing the
skills of the local workforce .

In the light of the danger to human life and the obstacles
to development presented by unexploded objects ( UXO ),
the Community will examine initiatives suited to
( g ) to take the requisite measures to protect the world, addressing this problem .

regional and national environments and manage
natural resources sustainably, taking account of the
link between the environment and development . Community cooperation will be concentrated on
mutually agreed priorities to ensure that assistance is
effective and lasting . In the interests of greater effec ­
tiveness, development cooperation activities shall take
account of the need for coordination and cooperation
Article 3 with Laos ' other partners, including the World Bank and

Development cooperation IMF .

Article 4

The Community recognizes Laos ' need for development Trade cooperation
assistance and is prepared to step up its cooperation in
order to contribute to Laos ' own efforts to achieve sus ­
tainable economic development and the social progress
of its people through concrete projects and programmes 1 . The Parties confirm their determination :
in accordance with the priorities set out in Council
Regulation ( EEC ) No 443 / 92 .

( a ) to take all appropriate measures to create favourable

conditions for trade between them ;

In accordance with the abovementioned Regulation on
cooperation with the Asian and Latin American ( ALA )
countries, assistance will be targeted mainly at the
poorest sections of the population . In cooperation,
priority will be given to schemes aimed at alleviating
poverty, and in particular those likely to create jobs,
foster development at grassroots level and promote the
role of women in development . The Parties will also
encourage the adoption of appropriate measures to
prevent and combat AIDS and take steps to increase
grassroots development and education on AIDS and the
operational capacity of the health services .

( b ) to do their utmost to improve the structure of their

trade in order to diversify it further ;

( c ) to work towards the elimination of barriers to trade,

and towards measures to improve transparency, in
particular through the removal at an appropriate
time of non-tariff barriers, in accordance with work
undertaken in this connection by other international
bodies while ensuring that personal data are suitably
protected .

2 . In their trade relations, the Parties shall accord
Cooperation between the Parties will also address each other most-favoured-nation treatment in all matters
the problem of drugs to encourage and enhance regarding :

No C 109 / 12 EN Official Journal of the European Communities 8 . 4 . 97

( a ) customs duties and charges of all kinds, including

the procedures for their collection ;

( b ) the regulations, procedures and formalities governing

customs clearance, transit, warehousing and tran ­
shipment ;

( c ) taxes and other internal charges levied directly or

indirectly on imports or exports ;

( d ) administrative formalities for the issue of import or

export licences .

3 . Paragraph 2 shall not apply to :

( a ) advantages accorded by either Party to states which

are fellow members of a customs union or free trade

area ;

( b ) advantages accorded by either Party to neighbouring

countries with a view to facilitating border trade ;

( c ) measures which either Party may take in order to

meet its obligations under international commodity

agreements .

4 . Within their respective spheres of competence, the
parties shall undertake :

( a ) to improve cooperation between their authorities in

customs matters, in fields including vocational
training, the simplification and harmonization of
customs procedures and administrative assistance to
combat customs fraud ;

( b ) to exchange information on markets likely to provide

mutual advantages, including public procurement,
tourism and statistical cooperation .

5 . Laos shall improve conditions for the adequate and
effective protection and enforcement of intellectual,
industrial and commercial property rights in conformity
with the highest international standards . To this end,

Laos shall accede to the relevant international

conventions on intellectual, industrial and commercial
property (') to which it is not yet a party . In order to
enable Laos to fulfil the abovementioned obligations,
technical assistance could be envisaged .

6 . Within their respective areas of jurisdiction and
insofar as their rules and regulations permit, the Parties
shall agree to consult each other on all questions,
problems, or disputes which may arise in connection with
trade .

Article 5

Environmental cooperation

The Parties recognize that the only way to improve

environmental protection is to introduce appropriate
environmental legislation, implement it effectively and
integrate it into other policy areas .

The main objective of environmental cooperation is to
enhance the prospects of sustainable economic growth
and social development by placing a high priority on
respect for the natural environment including :

( a ) the drafting of an effective environment policy
involving appropriate legislative measures and the
resources needed to implement it . It shall cover areas
including training, capacity building and the transfer
of appropriate environmental technology ;

( b ) cooperation in the development of sustainable and

non-polluting energy sources, as well as solutions to
urban and industrial pollution problems ;

( c ) protection of the environment ( especially in regions

with fragile ecosystems ), while developing tourism as

a sustainable source of revenue ;

( d ) environmental impact assessment as part of the prep ­

aration and implementation of any reconstruction or
development project ;

( e ) close cooperation to achieve the objectives of
environmental agreements to which both Parties are
signatories ;

( f ) conservation of existing primary forests, with the

particular aim of putting an end to illegal logging,
and sustainable development of new forest resources
by raising the profile of forestry bodies and involving
local inhabitants .

Article 6

Economic cooperation

Within the limits of their respective areas of jurisdiction

and the financial resources available, the Parties
undertake to foster economic cooperation to their
mutual advantage .

(') See Declaration ( Annex II ). This cooperation will be aimed at :

8 . 4 . 97 EN Official Journal of the European Communities No C 109 / 13

( a ) developing the economic environment in Laos by

facilitating access to Community know-how and
technology ;

( b ) facilitating contacts between economic operators and

taking other measures to promote trade ;

( c ) encouraging, in accordance with their legislation,
rules and policies, public and private sector
investment programmes in order to strengthen
economic cooperation, including cooperation betwen
enterprises, technology transfers, licences and
subcontracting ;

( d ) facilitating the exchange of information and the
adoption of initiatives, fostering cooperation on
enterprise policy, particularly with regard to
improving the business environment and encouraging
closer contacts ;

Article 7

Agriculture

The Parties undertake, in a spirit of understanding, to
cooperate in the agricultural sector and examine :

( a ) the scope for developing trade in agricultural
products ;

( b ) sanitary, phytosanitary and environmental measures,

and the results thereof, along with assistance to
avoid obstacles to trade, taking into account the
Parties ' legislation ;

( c ) the possibility of assisting the government of Laos in

its efforts to diversify agricultural exports .

Article 8

( e ) reinforcing mutual understanding of the Parties '
Energy
respective economic environments as a basis for
effective cooperation ;

( f ) undertaking activities in the field of standardization,

metrology and quality assurance in order to promote
international standards and quality assessment and to
facilitate trade .

In the above fields the principal objectives shall be :

The Parties recognize the vital importance of the energy
sector for economic and social development, and are
prepared to step up cooperation by means of dialogue in
the field of energy policy . This dialogue will take due
account of the main objective, namely to ensure the
sustainable development of Laos ' energy resources .

Article 9

— to assist Laos in its efforts to restructure its economy Regional cooperation

by creating the conditions for a suitable economic
environment and business climate,

Cooperation between the Parties may extend to activities
under cooperation or integration agreements with other
— to encourage synergies between the Parties ' countries of the same region, provided the said activities
respective economic sectors, and in particular their are compatible with those agreements .
private sectors,

Without excluding any area, special consideration may
— within the Parties ' respective areas of jurisdiction, be given to the following activities :

and in accordance with their legislation, rules and
policies, to establish a climate conducive to private
investment by improving conditions for the transfer
of capital and, where appropriate, by supporting the
conclusion of agreements between the Member States
of the Community and Laos on the promotion and
protection of investment .

The Parties will together determine, to their mutual
advantage, the areas and priorities for economic coop ­
eration programmes and activities .

( a ) technical assistance ( services of outside consultants,
training of technical staff in certain practical aspects
of integration );

( b ) promotion of intra-regional trade ;

( c ) support for regional institutions, projects and
initiatives for which regional organizations bear
responsibility ;

No C 109 / 14 fEN Official Journal of the European Communities 8 . 4 . 97

( d ) studies concerning regional links, transport and
communications .

Article 10

Science and technology

The Parties, according to their respective policies, their
mutuai interest and within their respective areas of juris ­
diction, may promote scientific and technological coop ­
eration .

Cooperation will involve :

cooperate in order to prevent the diversion of chemical
drug precursors, and agree on the need to do all in their
power to prevent money laundering .

The Parties will also consider special measures against
the cultivation, production and trafficking of drugs,
narcotics and psychotropic substances, and measures to
prevent and reduce drug abuse .

This cooperation may include :

— measures to promote other forms of economic devel ­

opment,

— the exchange of information and experience at — the exchange of relevant information, subject to
regional ( Europe-South-East Asia ) level, especially personal data being duly protected .
on the implementation of policies and programmes,

— the promotion of lasting ties between the Parties '

scientific communities,

— the stepping-up of activities aimed at promoting
innovation in industry, including technology
transfers .

Cooperation may involve :

— the joint implementation of regional ( Europe ­
South-East Asia ) research projects in areas of mutual
interest, facilitating, where appropriate, the active
involvement of enterprises,

— the exchange of scientists to promote the preparation

of research projects and high-level training,

— joint scientific meetings to foster exchanges of
information and interaction and to identify areas for
joint research,

— the dissemination of results and the development of

links between the public and private sectors,

— evaluation of the activities concerned .

The Parties ' higher education institutions, research
centres and industries will play an appropriate part in
this cooperation .

Article 11

Chemical drug precursors and money laundering

Within their respective areas of jurisdiction and the legis ­

lation applicable, and taking into account work done by
the relevant international bodies, the Parties agree to

Article 12

Physical infrastructure

The Parties recognize that the present shortcomings of
Laos ' physical infrastructure constitute a serious
constraint to private investment and to economic devel ­
opment in general . The Parties therefore agree to
encourage specific programmes for the rehabilitation,
reconstruction and development of Laos ' infrastructure,
including transport and communications .

Article 13

Information, communication and culture

The Parties, within their respective areas of jurisdiction,

and in the light of their policies and mutual interests, will
cooperate in the fields of information, communication
and culture to improve mutual understanding and
strengthen existing ties between them . Appropriate
support may also be provided for the promotion of new
initiatives in the following areas :

( a ) preparatory studies and technical assistance for the

conservation of the cultural heritage ;

( b ) cooperation in the field of the media and audio ­

visual documentation ;

( c ) the organization of events and exchanges to improve

cultural understanding .

The Parties recognize the importance of cooperation in
the fields of telecommunications, the information society
and multimedia . Such cooperation may include the

8 . 4 . 97 EN 1 Official Journal of the European Communities No C 109 / 15

exchange of information on the Parties ' respective regu ­
lations and policies for telecommunications, mobile
communications, including the promotion of Global
Navigation Satellite Systems ( GNSS ), the information
society, multimedia telecommunications technologies,
networks and telematic applications ( e.g. transport,
health, education and environment ).

Article 14

Institutional aspects

1 . The Parties agree to establish a Joint Committee,
whose tasks are :

Article 15

Future developments

1 . The Parties may, by mutual consent and within
their respective areas of jurisdiction, extend this
Agreement to expand cooperation and add to it by
means of agreements on specific sectors or activities .

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

Article 16

Other agreements
( a ) to ensure the smooth working and proper application

of the Agreement and of the dialogue between the
Parties ;

; Without prejudice to the relevant provisions of the

Treaties establishing the European Communities, neither
this Agreement nor any action taken thereunder shall in

( b ) to make suitable recommendations for promoting the any way affect the powers of the Member States of the

objectives of the Agreement ; European Union to undertake bilateral activities with

Laos in the framework of economic cooperation or to
conclude, where appropriate, new economic cooperation
( c ) to establish priorities for potential operations in agreements with Laos .
pursuit of the Agreement 's objectives .

( b ) to make suitable recommendations for promoting the

objectives of the Agreement ;

Article 17

2 . The Joint Committee shall be composed of Facilities
representatives of sufficient seniority of both Parties . It
shall normally meet every other year, alternately in
Vientiane and in Brussels, on a date fixed by mutual
convened agreement by . agreement Extraordinary between meetings the Parties may . also be To Laotian facilitate authorities cooperation will grant under to

convened agreement by . agreement Extraordinary between, meetings the Parties may . also be To Laotian facilitate authorities cooperation will grant under to Community this Agreement officials, and the

experts the guarantees and facilities necessary for the
performance of their duties . The detailed provisions will
be set out in a separate exchange of letters .
3 . The Joint Committee may set up specialized
sub-groups to assist it in the performance of its tasks and
to coordinate the formulation and implementation of Article 18
projects and programmes under the Agreement .

Territorial application

4 . The agenda for meetings of the Joint Committee
shall be determined by agreement between the Parties . This Agreement shall apply, on the one hand, to the
territories to which the Treaty establishing the European
Community applies and under the conditions laid down
in the Treaty and, on the other, to the territory of Laos .
5 . The Parties agree that it shall also be the task of
the Joint Committee to ensure the proper functioning of
any sectoral agreements concluded, or which may be
concluded, between the Community and Laos . Article 19

Non-execution of the Agreement

Article 18

6 . The organizational structures and the rules of
procedure of the Joint Committee shall be determined
and agreed upon by the Parties .

If either Party considers that the other Party has failed
to fulfil an obligation under this Agreement, it may take

No C 109 / 16 EN Official Journal of the European Communities 8 . 4 . 97

appropriate measures . Before so doing, except in cases of
special urgency, it shall supply the Joint Committee with
all relevant information required for a thorough exam ­
ination of the situation with a view to seeking a solution
acceptable to the Parties .

In the selection of measures, priority must be given to
those which least disturb the functioning of this
Agreement . These measures shall be notified immediately
to the Joint Committee and shall be the subject of
consultations within the Joint Committee if the other

Party so requests .

Article 20

Annexes

The Annexes to this Agreement shall form an integral
part thereof .

Article 21

Entry into force and renewal

1 . This Agreement shall enter into force on the first
dav of the month following the date on which the

Parties notify each other of the completion of the
procedures necessary for this purpose .

2 . This Agreement is concluded for a period of five
years . It shall be renewed automatically from year to
year unless one of the Parties denounces it six months
before its expiry date .

Article 22

Authentic texts

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

Done at Brussels, 8 November 1996 .

The Council of the European Union

The Lao People 's Democratic Republic

The Commission of the European Communities

ANNEX I

Declaration on Article 19 — Non-execution of the Agreement

( a ) The Parties agree, for the purposes of the interpretation and practical application of this Agreement,

that the term ' cases of special urgency ' in Article 19 of the Agreement means a case of the material
breach of the Agreement by one of the Parties . A material breach of the Agreement consists in :

— repudiation of the Agreement not sanctioned by the general rules of international law,

— violation of essential elements of the Agreement set out in Article 1 .

( b ) The Parties agree that the ' appropriate measures ' referred to in Article 19 are measures taken in
accordance with international law . If a Party takes a measure in a case of special urgency as provided
for under Article 19, the other Party may avail itself of the procedure relating to settlement of disputes .

8 . 4 . 97 BN I Official Journal of the European Communities No C 109 / 17

ANNEX II

Joint Declaration on intellectual, industrial and commercial property

The Parties agree for the purposes of this Agreement that ' intellectual, industrial and commercial property '
includes in particular protection of copyright and related rights, patents, industrial designs, software,
brands and trademarks, topographies of integrated circuits, geographical indications, as well as protection
against unfair competition and the protection of undisclosed information .

Joint Declaration on the readmission of citizens

The European Community recalls the importance that its Member States attach to the establishment of
effective cooperation with third countries in order to facilitate the readmission by the latter of its nationals
unlawfully residing on the territory of a Member State .

The Lao People 's Democratic Republic undertakes to conclude agreements for the readmission of Laotian
citizens in such a situation with those Member States of the European Union which request it .