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No C 326 / 10 Official Journal of the European Communities 24 . 11 . 94

PARTNERSHIP AND COOPERATION AGREEMENT

between the European Communities and their Member States, and the Kyrgyz Republic

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE PORTUGUESE REPUBLIC,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the European Economic Community, the Treaty
establishing the European Coal and Steel Community, and the Treaty establishing the
European Atomic Energy Community,

hereinafter referred to as ' Member States ', and

THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY
COMMUNITY and THE EUROPEAN COAL AND STCEL COMMUNITY,

hereinafter referred to as ' the Community *,

of the one part, and

THE KYRGYZ REPUBLIC

of the other part,

CONSIDERING the links between the Community, its Member States and the Kyrgyz Republic
and the common values that they share,

RECOGNIZING that the Community and the Kyrgyz Republic wish to strengthen these links
and to establish partnership and cooperation which would strengthen and widen the relations
established in the past in particular by the Agreement between the European Economic
Community and the European Atomic Energy Community and the Union of Soviet Socialist
Republics on Trade and Commercial and Economic Cooperation, signed on 18 December

1989,

CONSIDERING the commitment of the Community and its Member States and of the Kyrgyz
Republic to strengthening the political and economic freedoms which constitute the very basis
of the partnership,

CONSIDERING the commitment of the Parties to promote international peace and security as
well as the peaceful settlement of disputes and to cooperate to this end in the framework of the
United Nations and the Conference on Security and Cooperation in Europe,

24 . 11 . 94 Official Journal of the European Communities No C 326 / 11

CONSIDERING the firm commitment of the Community and its Member States and of the
Kyrgyz Republic to the full implementation of all principles and provisions contained in the
Final Act of the Conference on Security and Cooperation in Europe ( CSCE ), the concluding
documents of the Madrid and Vienna follow-up meetings, the document of the CSCE Bonn
Conference on Economic Cooperation, the Charter of Paris for a New Europe and the CSCE
Helsinki document 1992 ' The challenges of change ',

CONFIRMING the attachment of the Community and its Member States and of the Kyrgyz
Republic to the European Energy Charter,

CONVINCED of the paramount importance of the rule of law and respect for human rights,
particularly those of minorities, the establishment of a multiparty system with free and demo ­
cratic elections and economic liberalization aimed at setting up a market economy,

BELIEVING that full implementation of this Partnership and Cooperation Agreement will both
depend on and contribute to continuation and accomplishment of the political, economic and
legal reforms in the Kyrgyz Republic, as well as the introduction of the factors necessary for
cooperation, notably in the light of the conclusions of the CSCE Bonn Conference,

DESIROUS of encouraging the process of regional cooperation in the areas covered by this
Agreement with neighbouring countries in order to promote the prosperity and stability of the
region,

DESIROUS of establishing and developing regular political dialogue on bilateral and inter ­
national issues of mutual interest,

TAKING ACCOUNT of the Community 's willingness to provide for economic cooperation and
technical assistance as appropriate,

BEARING IN MIND the economic and social disparities between the Community and the
Kyrgyz Republic and in particular the fact that the Kyrgyz Republic is a developing and land ­
locked country,

RECOGNIZING that one of the major aims of this Agreement should be to facilitate the elim ­
ination of these disparities through Community assistance to the development and restructuring
of the Kyrgyz economy,

BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement
between the Kyrgyz Republic and a wider area of cooperation in Europe and neighbouring
regions and its progressive integration into the open international system,

CONSIDERING the commitment of the Parties to liberalize trade, based on the principles
contained in the General Agreement on Tariffs and Trade,

CONSCIOUS of the need to improve conditions affecting business and investment, and
conditions in areas such as establishment, labour, provision of services and capital movements,

CONVINCED that this Agreement will create a new climate for economic relations between the
Parties and in particular for the development of trade and investment, which are essential to
economic restructuring and technological modernization,

DESIROUS of establishing close cooperation in the area of environment protection taking into
account the interdependence existing between the Parties in this field,

BEARING in mind the intention of the Parties to develop their cooperation in the field of space
research in view of the complementary of their activities in this area,

No C 326 / 12 Official Journal of the European Communities 24 . 11.94

DESIROUS of establishing cultural cooperation and : improving the flow of information,

HAVE AGREED AS FOLLOWS :

Article 1 TITLE II

A partnership is hereby established between the
Community and its Member States of the one part, and
the Kyrgyz Republic of the other part . The objectives of
this partnership are :

— to provide an appropriate framework for the political

dialogue between the Parties allowing the devel ­
opment of political relations,

— to support Kyrgyz efforts to consolidate its
democracy and to develop its economy and to
complete the transition into a market economy .

— to promote trade and investment and harmonious

economic relations between the Parties and so to
foster their sustainable economic development,

— to provide a basis for legislative, economic, social,

financial, civil scientific, technological and cultural
cooperation,

TITLE I

GENERAL PRINCIPLES

POLITICAL DIALOGUE

Article 4

A regular political dialogue shall be established between
the Parties which they intend to develop and intensify . It
shall accompany and consolidate the rapprochement
between the Community and the Kyrgyz Republic,
support the political and economic changes underway in
that country and contribute to the establishment of new
forms of cooperation . The political dialogue :

— will strengthen the links of the Kyrgyz Republic with

the Community and its Member States, and thus with
the Community of democratic nations as a whole .
The economic convergence achieved through this
Agreement will lead to more intense political
relations,

— will bring about an increasing convergence of
positions on international issues of mutual concern
thus increasing security and stability .

Such dialogue may take place on a regional basis .

Article 5

At ministerial level, political dialogue shall take place
within the Cooperation Council established in Article 75
and on other occasions by mutual agreement .

Article 2 Article 6

Respect for democracy, principles of international law
and human rights as defined in particular in the United
Nations Charter, the Helsinki Final Act and the Charter
of Paris for a New Europe, as well as the principles of
market economy, including those enunciated in the
documents of the CSCE Bonn Conference, underpin the
internal and external policies of the Parties and
constitute an essential element of partnership and of the
present Agreement .

Article 3

The Parties consider that it is essential for the future
prosperity and stability of the region of the former Soviet
Union that the newly Independent States which have
emerged from the dissolution of the Union of Soviet
Socialist Republics, hereinafter called ' Independent
States ', should maintain and develop cooperation among
themselves in compliance with the principles of the
Helsinki Final Act and with international law and spirit
of good neighbourly relations and will make every effort
to encourage this process .

Other procedures and mechanisms for political dialogue
shall be set up by the Parties, and in particular in the
following forms :

— regular meetings at senior official level between

representatives of the Community and its Member

States on the one hand, and representatives of the
Kyrgyz Republic on the other hand,

— taking full advantage of diplomatic channels between

the parties including appropriate contacts in the
bilateral as well as the multilateral field such as
United Nations, ECSC meetings and elsewhere,

— any other means, including the possibility of expert

meetings which would contribute to consolidating
and developing this dialogue .

Article 7

Political dialogue at parliamentary level shall take place
within the framework of the Parliamentary Cooperation
Committee established in Article 80 .

24 . 11 . 94 Official Journal of the European Communities No C 326 / 13

TITLE III Article 10

TRADE IN GOODS

Article 8

1 . The Parties shall accord to one another most ­
favoured-nation treatment in all areas in respect of :

— customs duties and charges applied to imports and

exports, including the method of collecting such
duties and charges,

— provisions relating to customs clearance, transit,
warehouses and transhipment,

— taxes and other internal charges of any kind applied

directly or indirectly to imported goods,

— methods of payment and the transfer of such

payments,

— the rules relating to the sale, purchase, transport,

distribution and use of goods on the domestic
market .  

2 . The provisions of paragraph 1 shall not apply to :

( a ) advantages granted with the aim of creating a

customs union or a free-trade area or pursuant to the
creation of such a union or area ;

( b ) advantages granted to particular countries in
accordance with the General Agreement on Tariffs
and Trade and with other international arrangements
in favour of developing countries ;

( c ) advantages accorded to adjacent countries in order

to facilitate frontier traffic .

3 . The provisions of paragraph 1 shall not apply,
during a transitional period expiring on the date of the
Kyrgyz Republic acceding to GATT or on 31 December

1998, whichever is earlier, to advantages defined in
Annex I granted by the Kyrgyz Republic to other States
which have emerged from the dissolution of the USSR .

Article 9

1 . The Parties agree that the principle of free transit is
an essential condition of attaining the objectives of this
Agreement . In this connection each Party shall secure
unrestricted transit via or through its territory of goods
originating in the customs territory or destined for the
customs territory of the other Party .

2 . The rules described in Article 5, paragraphs 2, 3, 4
and 5 of the GATT are applicable between the two
Parties .

3 . The rules contained in this Article are without
prejudice to any special rules relating to specific sectors,
in particular such as transport, or products agreed
between the Parties .

Without prejudice to the rights and obligations stemming
from international conventions on the temporary
admission of goods which bind both Parties, each Party
shall furthermore grant the other Party exemption from
import charges and duties on goods admitted
temporarily, in the instances and according to the
procedures stipulated by any other international
convention on this matter binding upon it, in conformity
with its legislation . Account shall be taken of the
conditions under which the obligations stemming from
such a convention have been accepted by the Party in
question .

Article 11

1 . Goods originating in the Kyrgyz Republic shall be
imported into the Community free of quantitative
restrictions without prejudice to the provisions of Articles

13, 16 and 17 and to the provisions of Articles 77, 81,
244, 249 and 280 of the Act of Accession of Spain and
Portugal to the European Community .

2 . Goods originating in the Community shall be
imported into the Kyrgyz Republic free of all quanti ­
tative restrictions and measures of equivalent effect .

Article 12

Goods shall be traded between the Parties at market ­
related prices

Article 13

1 . Where any product is being imported into the
territory of one of the Parties in such increased
quantities or under such conditions as to cause or
threaten to cause injury to domestic producers of like or
direct competitive products, the Community or the
Kyrgyz Republic, which ever is concerned, may take
appropriate measures in accordance with the following
procedures and conditions .

2 . Before taking any measures, or in cases to which
paragraph 4 applies as soon as possible thereafter, the
Community or the Kyrgyz Republic as the case may be
shall supply the Cooperation Council with all relevant
information with a view to seeking a solution acceptable
to both Parties as provided for in Title IX .

3 . If, as a result of the consultations, the Parties do
not reach agreement within 30 days of referral to the
Cooperation Council on actions to avoid the situation,
the Party which requested consultations shall be free to
restrict imports of the products concerned to the extent
and for such time as is necessary to prevent or remedy
the injury, or to adopt other appropriate measures .

No C 326 / 14 Official Journal of the European Communities 24 . 11 . 94

4 . In critical circumstances where delay would cause Article 17
measures consultations damage difficult before shall the to be consultations repair offered, the immediately Parties may, on the condition after take taking that the lishing 1 . Trade the European in products Coal covered and Steel by Community the Treaty shall estab be ­
such action . governed exception by of Article the provisions 1 1 . of this Title III, with the

5 . In the selection of measures pursuant to this
Article, the Contracting Parties shall give priority to
those which cause least disturbance to the achievement
of the aims of this Agreement .

6 . Nothing in this Article shall prejudice or affect in
any way the taking, by either Party, of anti-dumping or
countervailing measures in accordance with Article VI of
the GATT, the Agreement on implementation of Article
VI of the GATT, the Agreement on interpretation and

application of Articles VI, XVI and XXIII of the GATT
or related internal legislation .

2 . A contact group on coal and steel matters shall be
set up, comprising representatives of the Community on
the one hand, and representatives of the Kyrgyz
Republic on the other .

The contact group shall exchange, on a regular basis,
information on all coal and steel matters of interest to

i:he Parties .

Article 18

Trade in nuclear materials shall be subject to the
provisions of a specific Agreement to be concluded
between the European Atomic Energy Community and
the Kyrgyz Republic .

Article 14
TITLE IV

The Parties undertake to consider development of the
provisions in this Agreement on trade in goods between
them, as circumstances allow, including the situation
arising from the accession of the Kyrgyz Republic to the
General Agreement on Tariffs and Trade . The Coop ­
eration Council referred to in Article 75 may make
recommendations on such developments to the Parties
which could be put into effect, where accepted, by virtue
of agreement between the Parties in accordance with
their respective procedures .

Article 15

The Agreement shall not preclude prohibitions or
restrictions on imports, exports or goods in transit
justified on grounds of public morality, public policy or
public security ; the protection of health and life of
humans, animals or plants ; the protection of natural
resources ; the protection of national treasures of artistic,
historic or archaeological value or the protection of
intellectual, industrial and commercial property or rules
relating to gold and silver . Such prohibitions or
restrictions shall not, however, constitute a means of
arbitrary discrimination or a disguised restriction on
trade between the Parties .

Article 16

PROVISIONS AFFECTING BUSINESS AND

INVESTMENT

CHAPTER I

Labour conditions

Article 19

11 . Subject to the laws, conditions and procedures
applicable in each Member State, the Community and
the Member States shall endeavour to ensure that the
treatment accorded to Kyrgyz nationals, legally
employed in the territory of a Member State shall be free
from any discrimination based on nationality, as regards
working conditions, remuneration or dismissal, as
compared to its own nationals .

2 . Subject to the laws, conditions and procedures
applicable in the Kyrgyz Republic, the Kyrgyz Republic
iihall ensure that the treatment accorded to nationals of a
Member State, legally employed in the territory of the
Kyrgyz Republic shall be free from any discrimination
based on nationality, as regards working conditions,
remuneration or dismissal, as compared to its own
nationals .

Article 20
This Title III shall not apply to trade in textile products
falling within Chapters 50 to 63 of the combined nomen ­ The Cooperation Council shall examine which joint
clature . Trade in these products shall be governed by a efforts can be made to control illegal immigration taking
separate agreement, initialled on 15 October 1993 and into account the principle and the practice of read ­
applied provisionally since 1 January 1994 . mission .

24 . 11 . 94 Official Journal of the European Communities No C 326 / 15

Article 21

The Cooperation Council shall examine which
improvements can be made in working conditions for
business people consistent with the international
commitments of the Parties, including those set out in
the document of the CSCE Bonn Conference .

Article 22

The Cooperation Council shall make recommendations
for the implementation of Articles 19, 20 and 21 .

CHAPTER II

Conditions affecting the establishment and
operation of companies

Article 23

1 . The Community and its Member States shall grant
treatment no less favourable than that accorded to any
third country for the establishment of Kyrgyz companies
as defined in Article 25 by means of the setting up of
subsidiaries and branches and shall grant to subsidiaries
and branches of Kyrgyz companies established in their
territory treatment no less favourable than that accorded
to any third country company or branch respectively, in
respect of their operations, and this in conformity with
their legislation and regulations .

2 . Without prejudice to the provisions of Articles 35
and 84, the Kyrgyz Republic shall grant to Community
companies and their branches treatment no less
favourable than that accorded to Kyrgyz companies and
their branches or to any third country companies and
their branches whichever is the better, in respect of their
establishment and operations, as defined in Article 25, on
its territory and this in conformity with its legislation and
regulations .

Article 24

The provisions of Article 23 shall not apply to air
transport, inland waterways transport and maritime

transport .

Article 25

For the purpose of this Agreement :

( a ) a ' Community company ' or a ' Kyrgyz company '

respectively shall mean a company set up in
accordance with the laws of a Member State or of
the Kyrgyz Republic respectively and having its
registered office or central administration, or
principal place of business in the territory of the

Community or the Kyrgyz Republic respectively .
However, should the company, set up in accordance
with the laws of a Member State or the Kyrgyz
Republic respectively, the company shall be
considered a Community or Kyrgyz company
respectively if its operations possess a real and
continuous link with the economy of one of the
Member States or the Kyrgyz Republic respectively ;

( b ) ' subsidiary ^ of a company shall mean a company

which is effectively controlled by the first company ;

( c ) ' branch ' of a company shall mean a place of business

not having legal personality which has the
appearance of permanency, such as the extension of
a parent body, has a management and is materially
equipped to negotiate business with third parties so
that the latter, although knowing that there will if
necessary be a legal link with the parent body, the
head office of which is abroad, do not have to deal
directly with such parent body but may transact
business at the place of business constituting the
extension ;

( d ) ' establishment ' shall mean the right of Community or

Kyrgyz companies as referred to in Article 23, to
take up economic activities by means of the setting
up and management of subsidiaries and branches in
the Kyrgyz Republic or in the Community
respectively ;

( e ) ' operation ' shall mean the pursuit of economic
activities ;

( f ) ' economic activities ' shall mean activities of an
industrial, commercial and professional character ;

( g ) with regard to international maritime transport,

including inter-modal operations involving a sea leg,
shall also be beneficiaries of the provisions of this

chapter and Chapter III nationals of the Member
States or of the Kyrgyz Republic established outside
the Community or the Kyrgyz Republic respectively,
and shipping companies established outside the
Community or the Kyrgyz Republic and controlled
by nationals of a Member State or Kyrgyz nationals
respectively, if their vessels are registered in that
Member State or in the Kyrgyz Republic respectively
in accordance with their respective legislation .

Article 26

1 . Notwithstanding any other provisions of the
Agreement, a Party shall not be prevented from taking
measures for prudential reasons, including for the
protection of investors, depositors, policy holders or
persons to whom a fiduciary duty is owed by a financial

No C 326 / 16 Official Journal of the European Communities 24 . 11 . 94

service supplier, or to ensure the integrity and stability of
the financial system . Where such measures do not
conform with the provisions of the Agreement, they shall
not be used as a means of avoiding the obligations of a
Party pursuant to the Agreement .

2 . Nothing in the Agreement shall be construed to
require a Party to disclose information relating to the
affairs and accounts of individual customers or any
confidential or proprietary information in the possession
of public entities .

Article 27

The provisions of the present Agreement shall not
prejudice the application by each of any measure
necessary to prevent the circumvention of its measures
concerning third country access to its market, through
the provisions of this Agreement .

Article 28

1 . Notwithstanding the provisions of Chapter I of this
title, a Community company or a Kyrgyz company
established in the territory of the Kyrgyz Republic or the
Community respectively shall be entitled to employ, or
have employed by one of its subsidiaries or branches, in
accordance with the legislation in force in the host
country of establishment, in the territory of the Kyrgyz
Republic and the Community respectively, employees
who are nationals of Community Member States and the

Kyrgyz Republic respectively, provided that such
employees are key personnel as defined in paragraph 2
of this Article, and that they are employed exclusively by
companies, or branches . The residence and work permits
of such employees shall only cover the period of such
employment .

— supervising and controlling the work of other

supervisory, professional or managerial
employees,

— having the authority personally to hire and fire or

recommend hiring, firing or other personnel
actions ;

( b ) persons working within an organization who possess

uncommon knowledge essential to the estab ­
lishment 's service, research equipment, techniques or
management . The assessment of such knowledge
may reflect, apart from knowledge specific to the
establishment, a high level of qualification referring
to a type of work or trade requiring specific
technical knowledge, including membership of an
accredited profession ;

( c ) an ' intra-corporate transferee ' is defined as a natural

person working within an organization in the
territory of a Party, and being temporarily trans ­
ferred in the context of pursuit of economic activities
in the territory of the other Party ; the organization
concerned must have its principal place of business in
the territory of a Party and the transfer be to an
establishment ( branch, subsidiary ) of that organ ­
ization, effectively pursuing like economic activities
in the territory of the other Party .

Article 29

The Parties recognize the importance of granting each
other national treatment with regard to the establishment
a.nd operation of each other 's companies in their terri ­
tories and agree to consider the possibility of movement
towards this end on a mutually satisfactory basis, and in
the light of any recommendations by the Cooperation
Council .

2 . Key personnel of the abovementioned companies Article 30
herein referred to as ' organizations ' are ' intra-corporate
transferees ' as defined in ( c ) of this Article in the 1 . The Parties shall use their best endeavours to avoid
following categories, provided that the organization is a taking any measures or actions which render the
juridical person and that the persons concerned have conditions for the establishment and operation of each
been employed by it or have been partners in it ( other other 's companies more restricitve than the situation
than majority shareholders ), for at least the year existing on the day preceding the date of signature of the
immediately preceding such movement : Agreement .

( a ) persons working in a senior position with an organ ­

ization, who primarily direct the management of the
establishment, receiving general supervision or
direction principally from the board of directors or
stockholders of the business or their equivalent,
including :

— directing the establishment or a department or

subdivision of the establishment,

2 . The provisions of this Article are without prejudice
to those of Article 38 ; the situations covered by such
./ Article 38 shall be solely governed by its provisions to
the exclusion of any other .

3 . Acting in the spirit of partnership and cooperation
and in the light of the provisions of Article 44 the
Government of the Kyrgyz Republic shall inform the
Community of its intentions to submit new legislation or
a dopt new regulations which may render the conditions

24 . 11 . 94 Official Journal of the European Communities No C 326 / 17

for the establishment or operation in the Kyrgyz
Republic of subsidiaries and branches of Community
companies more restrictive than the situation existing on
the day preceding the date of signature of the
Agreement . The Community may request the Kyrgyz
Republic to communicate the drafts of such legislation or
regulations and to enter into consultations about those
drafts .

Non-conference lines will be free to operate in
competition with a conference as long as they adhere
to the principle of fair competition on a commercial
basis .

( b ) the Parties affirm their commitment to . a freely

competitive environment as being an essential feature
of the dry and liquid bulk trade .

2 . In applying the principles of paragraph 1, the
4 . Where new legislation or regulations introduced in Parties shall :
the Kyrgyz Republic would result in rendering the
conditions for operation of subsidiaries and branches of ( a ) not apply, as from entry into force of this
Community companies established in the Kyrgyz Agreement, any cargo sharing provisions of bilateral
Republic more restrictive than the situation existing on agreements between any Member States of the
the day of signature of the Agreement, such respective Community and the former Soviet Union ;
legislation or regulations shall not apply during three
years following the entry into force of the relevant act to ( b ) not introduce cargo sharing clauses into future
those subsidiaries and branches already established in the bilateral agreements with third countries, other than
Kyrgyz Republic at the time of entry into force of the in those exceptional circumstances where liner
relevant act .

( a ) not apply, as from entry into force of this
Agreement, any cargo sharing provisions of bilateral

agreements between any Member States of the
Community and the former Soviet Union ;

( b ) not introduce cargo sharing clauses into future

bilateral agreements with third countries, other than
in those exceptional circumstances where liner
shipping companies from one or other Party to the
present Agreement would not otherwise have an
effective opportunity to ply for trade to and from the
third country concerned ;

CHAPTER III

Cross-border supply of services between the

Community and the Kyrgyz Republic

Article 31

1 . The Parties undertake in accordance with the
provisions of this chapter to take the necessary steps to
allow progressively the supply of services by Community
or Kyrgyz companies who are established in a Party
other than that of the person for whom the services are
intended taking into account the development of the
services sectors in the Parties .

2 . The Cooperation Council shall make recommen ­
dations for the implementation of paragraph 1 of this
Article .

Article 32

The Parties shall cooperate with the aim of developing a

market oriented service sector in the Kyrgyz Republic .

Article 33

( c ) prohibit cargo sharing arrangements in future
bilateral agreements concerning dry and liquid bulk
trade ;

( d ) abolish upon entry into force of this Agreement, all

unilateral measures, administrative, technical and
other obstacles which could have restrictive or
discriminatory effects on the free supply of services
international maritime transport .

Article 34

With a view to assuring a coordinated development of
transport between the Parties, adapted to their
commercial needs, the conditions of mutual market
access and provision of services in transport by road, rail
and inland waterways and, if applicable, in air transport
may be dealt with by specific agreements, where appro ­
priate, negotiated between the Parties after entry into

force of this Agreement .

CHAPTER IV

General provisions

1 . The Parties undertake to apply effectively the
principle of unrestricted access to the international Article 35
maritime market and traffic on a commercial basis .

( a ) the above provision does not prejudice the rights and

obligations arising from the United Nations
Convention and Code of Conduct for Liner
Conferences, as applicable to one or other
Contracting Party to the present Agreement .

1 . The provisions of this title shall be applied subject
to limitations justified on grounds of public policy, public
security or public health .

2 . They shall not apply to activities which in the
territory of either Party are connected, even occasion ­
ally, with the exercise of official authority .

No C 326 / 18 Official Journal of the European Communities 24 . 11 . 94

Article 36 guishing, in the application of the relevant provisions of
their fiscal legislation, between tax payers who are not in
For the purpose of Title IV of this Agreement, nothing identical situations, in particular as regards their place of
their in the laws Agreement and regulations shall prevent regarding the Parties entry from and applying stay, residence .
work, labour conditions and establishment of natural
persons and supply of services, provided that, in so
doing, they do not apply them in a manner as to nullify Article 41
or impair the benefits accruing to any Party under the
terms of a specific provision of the Agreement . The Without prejudice to Article 28, no provision of
above provision does not prejudice the application of Chapters II, III and IV shall be interpreted as giving the
Article 35 . night to :

Article 41

Without prejudice to Article 28, no provision of
Chapters II, III and IV shall be interpreted as giving the
night to :

Article 37

)
Companies which are controlled and exclusively owned
by Kyrgyz companies and Community companies jointly
shall also be beneficiaries of the provisions of Chapters
II, III and IV of this title .

Article 38

Treatment granted by either Party to the other
thereunder shall, as from the day one month prior to the
date of entry into force of the relevant obligations of the
GATS, in respect of sectors or measures covered by the
GATS, in no case be more favourable than that accorded
by such first Party under the provisions of GATS and
this in respect of each service sector, subsector and mode
of supply .

Article 39

For the purposes of Chapters II, III and IV of this title,
no account shall be taken of treatment accorded by the
Community, its Member States or the Kyrgyz Republic
pursuant to commitments entered into in economic inte ­
gration agreements in accordance with the principles of
Article V of the GATS .

Article 40

1 . The most favoured nation treatment granted in
accordance with the provisions of this title shall not
apply to the tax advantages which the Parties are
providing or will provide in the future on the basis of
agreements to avoid double taxation, or other tax

arrangements .

2 . Nothing in this title shall be construed to prevent
the adoption or enforcement by the Parties of any
measure aimed at preventing the avoidance or evasion of
taxes pursuant to the tax provisions of agreements to
avoid double taxation and other tax arrangements, or
domestic fiscal legislation .

3 . Nothing in this title shall be construed to prevent
Member States or the Kyrgyz Republic from distin ­

— nationals of the Member States or of the Kyrgyz

Republic respectively to enter, or stay in, the territory
of the Kyrgyz Republic or the Community
respectively in any capacity whatsoever, and in
particular as a shareholder or partner in a company
or manager or employee thereof or supplier or
recipient of services,

— Community subsidiaries or branches of Kyrgyz
companies to employ or have employed in the
territory of the Community nationals of the Kyrgyz
Republic,

— Kyrgyz subsidiaries or branches of Community
companies to employ or have employed in the
territory of the Kyrgyz Republic nationals of the
Member States,

— Kyrgyz companies or Community subsidiaries or

branches of Kyrgyz companies to supply Kyrgyz
persons to act for and under the control of other
persons by temporary employment contracts,

— Community companies or Kyrgyz subsidiaries or

branches of Community companies to supply workers
who are nationals of the Member States by
temporary employment contracts .

CHAPTER V

Current payments and capital

Article 42

1 . The Parties undertake to authorize in freely
convertible currency, any payments on the current
account of balance of payments between residents of the
Community and of the Kyrgyz Republic connected with
the movement of goods, services or persons made in
accordance with the provisions of the present Agreement .

2 . With regard to transactions on the capital account
of balance of payments, from entry into force of the
Agreement, the free movement of capital relating to

24 . 11 . 94 Official Journal of the European Communities No C 326 / 19

direct investments made in companies formed in
accordance with the laws of the host country and
investments made in accordance with the provisions of
Chapter II of this Title IV, and the liquidation or re ­
patriation of these investments and of any profit
stemming therefrom shall be ensured .

3 . Without prejudice to paragraph 2 or 5, as from
entry into force of this Agreement, no new foreign
exchange restrictions on the movement of capital and
current payments connected therewith between residents
of the Community and the Kyrgyz Republic shall be
introduced and the existing arrangements shall not
become more restrictive .

4 . The Parties shall consult each other with a view to
facilitate the movement of forms of capital other than
those referred to in paragraph 2 between the Community
and the Kyrgyz Republic in order to promote the
objectives of the present Agreement .

5 . With reference to the provisions of this Article,
until a full convertibility of the Kyrgyz currency within
the meaning of Article VIII of the articles of agreement
of the International Monetary Fund is introduced, the
Kyrgyz Republic may in exceptional circumstances apply
exchange restrictions connected with the granting or
taking up of short and medium-term financial credits to
the extent that such restrictions are imposed on the
Kyrgyz Republic for the granting of such credits and are
permitted according to Kyrgyz 's status under the IMF .
The Kyrgyz Republic shall apply these restrictions in a

non-discriminatory manner . They shall be applied in
such a manner as to cause the least possible disruption to
this Agreement . The Kyrgyz Republic shall inform the
Cooperation Council promptly of the introduction of
such measures and of any changes therein .

6 . Without prejudice to paragraphs 1 and 2, where, in
exceptional circumstances, movements of capital between
the Community and the Kyrgyz Republic cause, or
threaten to cause, serious difficulties for the operation of
exchange rate policy or monetary policy in the
Community or the Kyrgyz Republic, the Community
and the Kyrgyz Republic, respectively, may take
safeguard measures with regard to movements of capital
between the Community and the Kyrgyz Republic for a
period not exceeding six months if such measures are
strictly necessary .

commercial property rights in order to provide, by the
end of the fifth year after the entry into force of the
Agreement, for a level of protection similar to that
existing in the Community, including effective means of
enforcing such rights . The Cooperation Council may
decide to extend the above period, in the light of
particular circumstances prevailing in the Kyrgyz
Republic .

2 . By the end of the fifth year after entry into force of
the Agreement, the Kyrgyz Republic shall accede to the
multilateral conventions on intellectual, industrial and
commercial property rights referred to in para ­
graph 1 of Annex III to which Member States are parties
or which are de facto applied by Member States,
according to the relevant provisions contained in these
conventions .

TITLE V

LEGISLATIVE COOPERATION

Article 44

1 . The Parties recognize that an important condition
for strengthening the economic links between the Kyrgyz
Republic and the Community is the approximation of
Kyrgyz Republic 's existing and future legislation to that
of the Community . The Kyrgyz Republic shall
endeavour to ensure that its legislation will be gradually
made compatible with that of the Community .

2 . The approximation of laws shall extend to the
following areas in particular : customs law, company law,
banking law, company accounts and taxes, intellectual
property, protection of workers at the workplace,
financial services, rules on competition, public
procurement, protection of health and life of humans,
animals and plants, the environment, consumer
protection, indirect taxation, technical rules and
standards, nuclear laws and regulations, transport .

3 . The Community shall provide the Kyrgyz Republic
with technical assistance for the implementation of these
measures, which may include :

— the exchange of experts,

CHAPTER VI — the provisions of early information, especially on

relevant legislation,
Intellectual, industrial and commercial

property protection — organization of seminars,

Article 43 — training activities,

1 . Pursuant to the provisions of this Article and of
Annex III, the Kyrgyz Republic shall continue to
improve the protection of intellectual, industrial and

— aid for translation of Community legislation in the

relevant sectors .

No C 326 / 20 Official Journal of the European Communities 24 . 11 . 94

4 . The Parties agree to examine ways to apply their
respective competition laws on a concerted basis in such
cases where trade between them is affected .

— Community participation in Kyrgyzstan 's efforts to

restructure its industry,

— the improvement of management,

TITLE VI — the development of appropriate commercial rules and
practices,

ECONOMIC COOPERATION

Article 45 — environmental protection .

1 . The Community and Kyrgyz Republic shall
establish economic cooperation aimed at contributing to
the process of economic reform and recovery and
sustainable development of the Kyrgyz Republic . Such
cooperation shall strengthen existing economic links, to
the benefit of both parties .

2 . Policies and other measures will be designed to
bring about economic and social reforms and restruc ­
turing in the Kyrgyz Republic and will be guided by the
requirements of sustain ability and harmonious social
development ; they will also fully incorporate en ­
vironmental considerations .

3 . To this end the cooperation will concentrate, in
particular, on economic and social development, human
resources development, support for enterprises ( including
privatization, investment and development of financial
services ), agriculture and food, energy and civil nuclear
safety, transport, tourism, environmental protection and
regional cooperation .

4 . Special attention shall be devoted to measures
capable of fostering cooperation between the Inde ­
pendent States with a view to stimulating a harmonious
development of the region .

5 . Where appropriate, economic cooperation and
other forms of cooperation provided for in this
Agreement may be supported by technical assistance
from the Community, taking into account the
Community 's relevant Council regulation applicable to
technical assistance in the Independent States, the
priorities agreed upon in the indicative programme
related to European Community technical assistance to
the Kyrgyz Republic and its established coordination and
implementation procedures .

2 . The provisions of this Article shall not affect the
enforcement of Community competition rules applicable
to undertakings .

Article 47

Investment promotion and protection

1 . Bearing in mind the respective powers and com ­
petencies of the Community and the Member States,
cooperation shall aim to establish a favourable climate

For private investment, both domestic and foreign,
especially through better conditions for investment
protection, the transfer of capital and the exchange of
iinformation on investment opportunities .

2 . The aims of cooperation shall be in particular :

— the conclusion, where appropriate, between the
Member States and the Kyrgyz Republic of
agreements for the promotion and protection of
investment,

— the conclusion, where appropriate, between the
Member States and the Kyrgyz Republic of
agreements to avoid double taxation,

— the creation of favourable conditions for attracting

foreign investments into the Kyrgyz economy,

— to establish stable and adequate business law and

conditions, and to exchange information on laws,
regulations and administrative practices in the field of
investment,

— to exchange information on investment opportunities

in the form of inter alia trade fairs, exhibitions, trade
Article 46 weeks and other events .

Industrial cooperation

Article 48

1 . Cooperation shall aim at promoting the following Public procurement
in particular :

— the development of business links between economic

operators of both sides,

The Parties shall cooperate to develop conditions for
open and competitive award of contracts for goods and
services in particular through calls for tenders .

24 . 11 . 94 Official Journal of the European Communities No C 326 / 21

Article 49

Cooperation in the field of standards and conformity

assessment

1 . Cooperation between the Parties shall promote
alignment with internationally agreed criteria, principles
and guidelines followed in the field of quality . The
required actions will facilitate progress towards mutual
recognition in the field of conformity assessment, as well
as the improvement of Kyrgyz product quality .

2 . To this end they shall seek to cooperate in technical
assistance projects which will :

— promote appropriate cooperation with organizations

and institutions specialized in these fields,

— promote the use of Community technical regulations

and the application of European standards and
conformity assessment procedures,

— permit the sharing of experience and technical
information in the field of quality management .

Article 50

Mining and raw materials

1 . The Parties shall aim at increasing investment and
trade in mining and raw materials .

2 . The cooperation shall focus in particular on the
following areas :

— exchange of information on the prospects of the

mining and non-ferrous metals sectors,

— the establishment of a legal framework for coop ­

eration,

— trade matters,

— the adoption and implementation of environmental

legislation,

— training,

— safety in the mining industry .

Article 51

Cooperation in science and technology

1 . The Parties shall promote cooperation in civil
scientific research and technological development ( RTD )
on the basis of mutual benefit and, taking into account
the availability of resources, adequate access to their
respective programmes and subject to appropriate levels
of effective protection of intellectual, industrial and
commercial property rights ( IPR ).

2 . Science and technology cooperation shall cover :

— the exchange of scientific and technical information,

— joint RTD activities,

— training activities and mobility programmes for
scientists, researchers and technicians engaged in
RTD in both sides .

Where such cooperation takes the form of activities

involving education and / or training, it should be carried
out in accordance with the provisions of Article 52 .

The Parties, on the basis of mutual agreement, can

engage in other forms of cooperation in science and
technology .

In carrying out such cooperation activities, special
attention shall be devoted to the redeployment of
scientists, engineers, researchers and technicians which
are or have been engaged in research and / or production
of weapons of mass destruction .

3 . The Cooperation covered by this Article shall be
implemented according to specific arrangements to be
negotiated and concluded in accordance with the
procedures adopted by each party, and which shall set
out, inter alia, appropriate IPR provisions .

Article 52

Education and training

1 . The Parties shall cooperate with the aim of raising
the level of general education and professional qualifi ­
cations in the Kyrgyz Republic, both in the public and
private sectors .

2 . The cooperation shall focus in particular on the
following areas :

— updating higher education and training systems in the

Kyrgyz Republic including the system of certification
of higher educational establishments and diplomas of
higher education,

— the training of public and private sector executives

and civil servants in priority areas to be determined,

— cooperation between educational establishments and

between educational establishments and firms,

— mobility for teachers, graduates, administrators,
young scientists and researchers and young people,

— promoting teaching in the field of European studies

within the appropriate institutions,

No C 326 / 22 Official Journal of the European Communities 24 . 11 . 94

— teaching Community languages,

— post-graduate training of conference interpreters,

— training of journalists,

— training of trainers .

3 . The possible participation of one Party in the
respective programmes in the field of education and
training of the other Party could be considered in
accordance with their respective procedures and, where
appropriate, institutional frameworks and plans of coop ­
eration will then be established building on participation
of the Kyrgyz Republic in the Community 's Tempus

programme .

Article 53

Agriculture and the agro-industrial sector

The purpose of cooperation in this area shall be the
pursuance of agrarian reform, the modernization, pri ­
vatization and restructuring of agriculture, the agro ­

industrial and services sectors in the Kyrgyz Republic,
development of domestic and foreign markets for the
Kyrgyz products, in conditions that ensure the
protection of the environment, taking into account the
necessity to improve security of food supply as well as
the development of agri-business, the processing and
distribution of agricultural products . The Parties shall
also aim at the gradual approximation of Kyrgyz
standards to Community technical regulations
concerning industrial and agricultural food products
including sanitary and phytosanitary standards .

Article 54

Energy

1 . Cooperation shall take place within the principles
of the market economy and the European Energy
Charter, against a background of the progressive inte ­
gration of the energy markets in Europe .

2 . The cooperation shall include among others the
following areas :

— the environmental impact of energy production
supply and consumption, in order to prevent or
minimize the environmental damage resulting from
these activities,

— improvement of the quality and security of energy

supply, including diversification of supply, in an
economic and environmentally sound manner,

— improvement in management and regulation of the

energy sector in line with a market economy,

— the introduction of the range of institutional, legal,

fiscal and other conditions necessary to encourage
increased energy trade and investment,

— promotion of energy saving and energy effectiveness,

— modernization of energy infrastructure,

— improvement of energy technologies in supply and

end use across the range of energy types,

— management and technical training in the energy

sector,

— security in energy supply, transportation and transit

of energy and energy materials .

Article 55

Environment

1 . Bearing in mind the European Energy Charter, the
Parties shall develop and strengthen their cooperation on
environment and human health .

2 . Cooperation shall aim at combating the deterio ­
ration of the environment and in particular :

— effective monitoring of pollution levels and
assessment of environment ; system of information on
the state of the environment,

— combating local, regional and transboundary air and

water pollution,

— ecological restoration,

— sustainable, efficient and environmentally effective

production and use of energy ; safety of industrial
plants,

— classification and safe handling of chemicals,

— water quality,

— waste reduction, recycling and safe disposal, im ­

plementation of the Basle Convention,

— the environmental impact of agriculture, soil erosion,

and chemical pollution,

— the protection of forests,

— the conservation of biodiversity, protected areas and

sustainable use and management of biological

resources,

— land-use planning, including construction and urban

— formulation of energy policy, planning,

24 . 11 . 94 Official Journal of the European Communities No C 326 / 23

— use of economic and fiscal instruments,

— global climate change,

— environmental education and awareness,

— technical assistance concerning rehabilitation of
zones affected by radioactivity and addressing related
health and social problems ;

— implementation of the Espoo Convention on En ­

vironmental Impact Assessment in a transboundary

context .

3 . Cooperation shall take place particularly through :

— disaster planning and other emergency situations,

— exchange of information and experts, including
information and experts dealing with the transfer of
clean technologies and the safe and environmentally
sound use of biotechnologies,

— joint research activities,

— improvement of laws ( Community standards ),

— cooperation at regional level ( including cooperation

within the framework of the European Environment
Agency ) and at international level,

— development of strategies, particularly with regard to

global and climatic issues and also in view of
achieving sustainable development,

— environmental impact studies .

Article 56

Transport

The Parties shall develop and strengthen their coop ­
eration in the field of transport .

This cooperation shall, inter alia, aim at restructuring

and modernizing transport systems and networks in the
Kyrgyz Republic, and developing and ensuring, where
appropriate ; compatibility of transportation systems in
the context of achieving a more global transport system .

The cooperation shall include, inter alia :

— the modernizing of management and operations of

road transport, railways, ports and airports,

— modernization and development of railways,
waterways, roads, ports, airports and air navigation
infrastructure including the modernization of major
routes of common interest and the trans-European
links for the above modes,

— promotion and development of multimodal transport,

— the promotion of joint research and development

programmes,

— preparation of the legislative and institutional
framework for policy development and implemen ­
tation including privatization of the transport sector .

Article 5 7

Postal services and telecommunications

Within their respective powers and competences the

Parties shall expand and strengthen cooperation in the
following areas :

— the establishment of policies and guidelines for the

development of the telecommunications sector and
postal services,

— development of principles of a tariff policy and

marketing in telecommunications and postal services,

— carry out transfer of technology and know-how,

including on European technical standards and
certification systems ;

— encourage the development of projects for telecom ­

munications and postal services and attracting
investment,

— enhancing efficiency and quality of the provision of

telecommunications and postal services, amongst
others through liberalization of activities of
subsectors,

— advanced application of telecommunications, notably

in the area of electronic funds transfer,

— management of telecommunications networks and

their ' optimization ',

— an appropriate regulatory basis for the provision of

telecommunication and postal services and for the
use of the radio frequency spectrum,

— training in the field of telecommunications and postal

services for operations in market conditions .

Article 58

Financial services

Cooperation shall in particular aim at facilitating the
involvement of the Kyrgyz Republic in universally
accepted systems of mutual settlements . Technical
assistance shall focus on :

— the development of banking and financial services,

the development of common market of credit
resources, the involvement of the Kyrgyz Republic in
universally accepted systems of mutual settlements,

— the development of fiscal system, institutions in the

Kyrgyz Republic, exchange of experience and
personnel training,

No C 326 / 24 Official Journal of the European Communities 24 . 11 . 94

— the development of insurance services, which would

inter alia create a favourable framework for
Community companies participation in the estab ­
lishment of joint ventures in the insurance sector in
the Kyrgyz Republic, as well as the development of
export credit insurance,

— this cooperation shall in particular contribute to

foster the development of relations between the
Kyrgyz Republic and the EC Member States in the
financial services sector .

Article 59

Money laundering

1 . The Parties agree on the necessity of making
efforts and cooperating in order to prevent the use of
their financial systems for laundering of proceeds from
criminal activities in general and drug offences in
particular .

2 . Cooperation in this area shall include administrative
and technical assistance with the purpose of establishing
suitable standards against money laundering equivalent
to those adopted by the Community and international
fora in this field, including the Financial Action Task
Force ( FATF ).

Article 60

Regional development

1 . The Parties shall strengthen cooperation on
regional development and land-use planning .

2 . To this end, they shall encourage exchange of
information by national, regional and local authorities
on regional and land-use planning policy and on
methods of formulation of regional policies with special
emphasis on the development of disadvantaged areas .

They shall also encourage direct contacts between the

respective regions and public organizations responsible
for regional development planning with the aim, inter
alia, to exchange methods and ways of fostering regional
development .

— development and promotion of preventive measures

to combat work related diseases and other work

related ailments,

— prevention of majoraccidents hazards and the
management of toxic chemicals,

— research to develop the knowledge base in relation to

working environment and the health and safety of
workers .

2 . With regard to employment, the cooperation shall
include notably technical assistance to :

— optimization of the labour market,

— modernization of the job-finding and consulting

services,

— planning and management of the restructuring

programmes,

— encouragement of local employment development,

— exchange of information on the programmes of

flexible employment, including those stimulating self ­
employment and promoting entrepreneurship .

3 . The Parties shall pay special attention to coop ­
eration in the sphere of social protection which, inter
alia, shall include cooperation in planning and
implementing social protection reforms in the Kyrgyz
Republic .

These reforms shall aim to develop in the Kyrgyz
Republic methods of protection intrinsic to market
economies and shall comprise all directions of social
protection .

Article 62

Tourism

The Parties shall increase and develop cooperation
between them, which shall include :

— facilitating the tourist trade,

— increasing the flow of information,

— transferring know-how,

— studying the opportunities for joint operations,

Article 61
— cooperation between official tourism bodies,

Social cooperation

— training for tourism development .
1 . With regard to health and safety, the Parties shall
develop cooperation between them with the aim of
improving the level of protection of the health and safety Article 63
of workers .

Article 63

Small and medium-sized enterprises

The cooperation shall include notably :

The cooperation shall include notably : 1 . The Parties shall aim to develop and strengthen

small and medium-sized enterprises and their
— education and training on health and safety issues associations and cooperation between SMEs in the

with specific attention to high risk sectors of activity, Community and the Kyrgyz Republic .

with specific attention to high risk sectors of activity,

24 . 11 . 94 Official Journal of the European Communities No C 326 / 25

2 . Cooperation shall include technical assistance, in
particular in the following areas :

— the development of a legislative framework for

SMEs,

— the development of an appropriate infrastructure ( an

agency to support SMEs, communications, assistance
to the creation of a fund for SMEs ),

— the development of technology parks .

Article 64

Information and communication

The Parties shall support the development of modern
methods of information handling, including the media,
and stimulate the effective mutual exchange of
information . Priority shall be given to programmes aimed
at providing the general public with basic information
about the Community and the Kyrgyz Republic,
including, where possible, access to databases, in full
respect of intellectual property rights .

Article 65

Consumer protection

The Parties will enter into close cooperation aimed at
achieving between their systems of consumer protection .
This cooperation may include the exchange of
information on legislative work and institutional reform,
establishment of permanent systems of mutual
information on dangerous products, the improvement of
information provided to consumers especially on prices,
characteristics of products and services offered, the
development of exchanges between the consumer interest
representatives, and increasing the compatibility of
consumer protection policies, and the organization of
seminars and training periods .

— simplification of inspections and formalities in respect

of the carriage of goods,

— the support in the introduction of modern customs

information systems,

— the organization of seminars and training periods .

Technical assistance shall be provided where necessary .

3 . Without prejudice to further cooperation foreseen
in this agreement and in particular Article 69 the mutual
assistance between administrative authorities in customs
matters of the Parties shall take place in accordance with
the provisions of Protocol 1 .

Article 67

Statistical cooperation

Cooperation in this area shall have as its aim the devel ­
opment of an efficient statistical system to provide the
reliable statistics needed to support and monitor the
process of economic reform and contribute to the devel ­
opment of private enterprise in the Kyrgyz Republic .

The Parties, in particular, shall cooperate in the
following fields :

— adaptation of Kyrgyz statistical system to inter ­

national methods, standards and classification,

— exchange of statistical information,

— provision of necessary statistical micro - and macro ­

economics information to implement and manage
economic reforms .

. To this end the Community shall contribute through

rendering technical assistance to the Kyrgyz Republic .

Article 66

Customs Article 68

1 . The aim of cooperation shall be to guarantee Economics
compliance with all the provisions scheduled for

The Parties shall facilitate the

adoption in connection with trade and fair trade and to

reform and the coordination of

achieve the approximation of customs system to that of
the Community . cooperating to improve

2 . Cooperation shall include the following in
particular :

— the exchange of information,

— the improvement of working methods,

— the introduction of the combined nomenclature and

the single administrative document,

— the interconnection between the transit systems of the

Community and the Kyrgyz Republic,

The Parties shall facilitate the process of economic
reform and the coordination of economic policies by
cooperating to improve understanding of the funda ­
mentals of their respective economies and the design and
implementation of economic policy in market economies .
To this end, the Parties shall exchange information on
macroeconomic performance and prospects .

The Community shall provide technical assistance as to :

— assist the Kyrgyz Republic in the process of
economic reform by providing expert advisory and
technical assistance,

— encourage cooperation among economists in order to

expedite the transfer of know-how for the drafting of

No C 326 / 26 Official Journal of the European Communities 24 . 11 . 94

economic policies, and provide for wide dissemi ­
nation of policy-relevant research .

programme reflecting established priorities to be agreed
Ibetweenr the two Parties taking into account the Kyrgyz
Republic ^ needs, sectoral absorption capacities and
progress with reform . The Parties shall inform the Coop ­

eration Council thereof .
Article 69

Drugs
Article 74

Within the framework of their respective powers and In order to permit optimum use of the resources
competencies the Parties shall cooperate in increasing the available, the Parties shall ensure that Community
effectiveness and efficiency of policies and measures to technical assistance contributions are made in close coor ­
counter the illicit production, supply and traffic of dination with those from other sources such as the
narcotic the prevention drugs and of diversion psycho tropic of precursor substances chemicals, including, as Member izations States such, other as the countries International, and international Bank for Recon organ ­ ­
well as in promoting drug demand prevention and

struction and Development and the European Bank for

reduction . The cooperation in this area shall be based on
mutual consultation and close coordination between the Reconstruction and Development .
Parties over the objectives and measures on the various
drug-related fields .
TITLE IX

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

TITLE VII

Article 75

CULTURAL COOPERATION

Article 70

The Parties undertake to promote, encourage and
facilitate cultural cooperation . Where appropriate, the
Community 's cultural cooperation programmes or those
of one or more Member States may be the subject coop ­
eration and further activities of mutual interest may be
developed .

TITLE VIII

FINANCIAL COOPERATION IN THE FIELD OF

TECHNICAL ASSISTANCE

Article 71

In order to achieve the objectives of this Agreement and
in accordance with Articles 72, 73 and 74 the Kyrgyz
Republic shall benefit from temporary financial
assistance from the Community by way of technical
assistance in the form of grants to accelerate the
economic transformation of the Kyrgyz Republic .

A Cooperation Council is hereby established which shall
supervise the implementation of this Agreement . It shall
meet at ministerial level once a year . It shall examine any
major issues arising within the framework of the
Agreement and any other bilateral or international issues

of mutual interest for the purpose of attaining the
objectives of this Agreement . The Cooperation Council
may also make appropriate recommendations, by
agreement between the two Parties .

Article 76

1 . The Cooperation Council shall consist of the
members of the Council of the European Communities
and members of the Commission of the European
Communities, on the one hand, and of members of the
Government of the Kyrgyz Republic, on the other .

2 . The Cooperation Council shall establish its rules of
procedure .

3 . The office of President of the Cooperation Council
shall be held alternately by a representative of the
Community and by a member of the Government of the
Kyrgyz Republic .

Article 77

Article 72

This financial assistance shall be covered within the
framework of Tacis foreseen in the Community 's
relevant Council Regulation .

Article 73

The objectives and the areas of the Community 's
financial assistance shall be laid down in an indicative

1 . The Cooperation Council shall be assisted in the
performance of its duties by a Cooperation Committee
composed of representatives of the members of the
Council of the European Communities and of members
of the Commission of the European Communities on the
one hand and of representatives of the Government of
the Kyrgyz Republic on the other, normally at senior
civil servant level . The office of President of the Coop ­
eration Committee shall be held alternately by the
Community and by the Kyrgyz Republic .

24 . 11 . 94 Official Journal of the European Communities No C 326 / 27

In its rules of procedure the Cooperation Council shall Article 83
determine the duties of the Cooperation Committee,
which shall include the preparation of meetings of the 1 . Within the scope of this

undertakes to ensure that natural

Cooperation Council, and how the Committee shall
function . the other Party have access

2 . The Cooperation Council may delegate any of its
powers to the Cooperation Committee, which will ensure
continuity between meetings of the Cooperation Council .

Article 78

The Cooperation Council may decide to set up any other

special committee or body that can assist it in carrying
out its duties and shall determine the composition and
duties of such committees or bodies and how they shall
function .

Article 79

When examining any issue arising within the framework
of this Agreement in relation to a provision referring to
an article of the GATT, the Cooperation Council shall
take into account to the greatest extent possible the
interpretation that is generally given to the article of the
GATT in question by the Contracting Parties to the
General Agreement .

Article 80

A Parliamentary Cooperation Committee is hereby
established . It shall be a forum for Members of the
Kyrgyz Parliament and the European Parliament to meet
and exchange views . It shall meet at intervals which it
shall itself determine .

Article 81

1 . The Parliamentary Cooperation Committee shall
consist of members of the European Parliament, on the
one hand, and of members of the Kyrgyz Parliament, on
the other .

2 . The Parliamentary Cooperation Committee shall
establish its rules of procedure .

3 . The Parliamentary Cooperation Committee shall be
presided in turn by the European Parliament and the
Kyrgyz Parliament respectively, in accordance with the
provisions to be laid down in its rules of procedure .

Article 82

The Parliamentary Cooperation Committee may request
relevant information regarding the implementation of
this Agreement from the Cooperation Council, which
shall then supply the Committee with the requested
information .

The Parliamentary Cooperation Committee shall be
informed of the recommendations of the Cooperation
Council .

The Parliamentary Cooperation Committee may make
recommendations to the Cooperation Council .

1 . Within the scope of this Agreement, each Party
undertakes to ensure that natural and legal persons of
the other Party have access free of discrimination in
relation to its own nationals to the competent courts and
administrative organs of the Parties to defend their
individual rights and their property rights, including
those concerning intellectual, industrial and commercial

property .

2 . Within the limits of their respective powers, the
Parties :

— shall encourage the adoption of arbitration for the

settlement of disputes arising out of commercial and
cooperation transactions concluded by economic
operators of the Community and those of the Kyrgyz
Republic,

— agree that where a dispute is submitted to arbitration,

each party to the dispute may, except where the rules
of the arbitration centre chosen by the parties provide
otherwise, choose its own arbitrator, irrespective of
his nationality, and that the presiding third arbitrator
or the sole arbitrator may be a citizen of a third
State,

— will recommend their economic operators to choose

by mutual consent the law applicable to their

contracts,

— shall encourage recourse to the arbitration rules elab ­

orated by the United Nations Commission on Inter ­
national Trade Law ( Uncitral ) and to arbitration by
any centre of a State signatory to the Convention on
Recognition and Enforcement of Foreign Arbitral
Awards done at New York on 10 June 1958 .

Article 84

Nothing in the Agreement shall prevent a Party from
taking any measures :

( a ) which it considers necessary to prevent the disclosure

of information contrary to its essential security
interests ;

( b ) which relate to the production of, or trade in arms,

munitions or war materials or to research, devel ­
opment or production indispensable for defence
purposes, provided that such measures do not impair
the conditions of competition in respect of products
not intended for specifically military purposes ;

( c ) which it considers essential to its own security in the

event of serious internal disturbances affecting the
maintenance of law and order, in time of war or
serious international tension constituting threat of
war or in order to carry out obligations it has

No C 326 / 28 Official Journal of the European Communities 24 . 11 . 94

accepted for the purpose of maintaining peace and Article 88
international security ;

( d ) which it considers necessary to respect its inter ­

national obligations and commitments in the control
of dual use industrial goods and technology .

Treatment granted to the Kyrgyz Republic thereunder
shall in no case be more favourable than that granted by
the Member States to each other .

Article 89

Article 85 For the purposes of this Agreement, the term ' Parties '
shall mean the Kyrgyz Republic on the one part, and the

by this Agreement and without Community, or the Member States, or the Community
provisions contained therein : and the Member States, in accordance with their

respective powers, on the other part .

1 . In the fields covered by this Agreement and without
prejudice to any special provisions contained therein :

— the arrangements applied by the Kyrgyz Republic in

respect of the Community shall not give rise to any
discrimination between the Member States, their
nationals or their companies or firms,

— the arrangements applied by the Community in

respect of the Kyrgyz Republic shall not give rise to
any discrimination between Kyrgyz nationals, or its
companies or firms .

2 . The provisions of paragraph 1 are without
prejudice to the right of the Parties to apply the relevant
provisions of their fiscal legislation to tax payers who are
not in identical situations as regards their place of
residence .

Article 90

In so far as matters covered by this Agreement are
covered by the Energy Charter Treaty and Protocols
thereto, such Treaty and Protocols shall upon entry into
force apply to such matters but only to the extent that
such application is provided for therein .

Article 91

This Agreement is concluded for an initial period of 10

legislation to tax payers who are
as regards their place of years . The Agreement shall be automatically renewed

year by year provided that neither Party gives the other
Party written notice of denunciation of the Agreement
six months before it expires .
Article 86

1 . Each of the two Parties may refer to the Coop ­ Article 92
eration Council any dispute relating to the application or 1 . The Parties shall take
interpretation of this Agreement .

2 . The Cooperation Council may settle the dispute by
means of a recommendation .

3 . In the event of it not being possible to settle the
dispute in accordance with paragraph 2 of this Article,
either Party may notify the other of the appointment of
a conciliator ; the other Party must then appoint a second
arbitrator within two months . For the application of this
procedure, the Community and the Member States shall
be deemed to be one Party to the dispute .

The Cooperation Council shall appoint a third
conciliator .

The conciliator 's recommendations shall be taken by

majority vote . Such recommendations shall not be
binding upon the Parties .

1 . The Parties shall take any general or specific
measures required to fulfil their obligations under the
Agreement . They shall see to it that the objectives set out
in the Agreement are attained .

2 . If either Party considers that the other Party has
foiled to fulfil an obligation under the Agreement, it may
take appropriate measures . Before so doing, except in
cases of special urgency, it shall supply the Cooperation
Council with all relevant information required for a
thorough examination of the situation with a view to
seeking a solution acceptable to the Parties .

In the selection of these measures, priority must be given
to those which least disturb the functioning of the
Agreement . These measures shall be notified immediately
to the Cooperation Council if the other Party so

requests .

Article 93

Article 87 Annexes I and II together with Protocol 1 shall form an
integral part of this Agreement .

The Parties agree to consult promptly through appro ­
priate channels at the request of either Party to discuss Article 94
any matter concerning the interpretation or implemen ­
tation of this Agreement and other relevant aspects of This Agreement shall not, until
the relations between the Parties .

The provisions of this Article shall in no way affect and
are without prejudice to Articles 13, 86 and 92 .

This Agreement shall not, until equivalent rights for

individuals and economic operators have been achieved
thereunder, affect rights assured to them through
existing Agreements binding one or more Member States
on the one hand and the Kyrgyz Republic on the other

24 . 11 . 94 Official Journal of the European Communities No C 326 / 29

except in areas falling within Community competence Article 98
and without prejudice to the obligations of Member
States resulting from this Agreement in areas falling This Agreement will be approved by the Parties in
within their competence . accordance with their own procedures .

Article 95

This Agreement shall apply, on the one hand, to the
territories in which the Treaties establishing the
European Economic Community, the European Atomic
Energy Community and the European Coal and Steel
Community are applied and under the conditions laid
down in those Treaties and, on the other hand, to the
territory of the Kyrgyz Republic .

Article 96

This Agreement shall enter into force on the first day of
the second month following the date on which the
Parties notify the Secretary-General of the Council of
the European Union that the procedures referred to in
the first paragraph have been completed .

Upon its entry into force, and as far as relations between
the Kyrgyz Republic and the Community are concerned,
this Agreement shall replace the Agreement between the
European Economic Community, the European Atomic
Energy Community and the Union of Soviet Socialist
Republics on trade and economic and commercial coop ­
eration signed in Brussels on 18 December 1989 .

Article 99
The Secretary-General of the Council of the European
Union shall be the depository of this Agreement . In the event that, pending

Article 97

This Agreement is drawn up in the Danish, Dutch,
English, French, German, Italian, Spanish, Greek,
Portuguese, Kyrgyz and Russian languages, each of
these texts being equally authentic .

In the event that, pending the completion of the
procedures necessary for the entry into force of this
Agreement, the provisions of certain parts of this
Agreement are put into effect in 1994 by means of an

Interim Agreement between the Community and the
Kyrgyz Republic, the Contracting Parties agree that, in
such circumstances, the term ' date of entry into force of
the Agreement ' shall mean the date of entry into force of
the Interim Agreement .

No C 326 / 30 Official Journal of the European Communities 24 . 11 . 94

ANNEX I

Indicative list of advantages granted by the Kyrgyz Republic to the Independent States in accordance with

Article 8 ( 3 )

1 . All Independent States :

No import duties are implemented except for alcohol and tobacco products .

No export duties are implemented as regards goods delivered under clearing and interstate agreements
within the volumes stipulated in these agreements .

No VAT is applied on export and import . No excise is applied on export .

No export quotas are implemented .

2 . All Independent States which did not introduce their national currency :

Payments could be made in roubles .

All Independent States :

Special system of non-commercial operations, including payments resulting from these operations .

3 . All Independent States :

Special system of current payments .

4 . All Independent States :

Special conditions of transit .

5 . All Independent States :

Special conditions of customs procedures .

24 . 11.94 Official Journal of the European Communities No C 326 / 31

ANNEX II

Intellectual Property Rights conventions ( Article 43 )

1 . Paragraph 2 of Article 43 concerns the following multilateral conventions :

— Berne Convention for the Protection of Literary and Artistic Works ( Paris Act, 1971 ),

— International Convention for the Protection of Performers, Producers of Phonograms and Broad ­

casting Organizations ( Rome, 1961 ),

— Protocol relating to the Madrid Agreement concerning the International Registration of Marks

( Madrid, 1989 ),

— Nice Agreement concerning the International Classification of Goods and Services for the purposes

of the Registration of Marks ( Geneva 1977 and amended in 1979 ),

— Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the

purposes of Patent Procedures ( 1977, modified in 1980 );

— International Convention for the Protection of New Varieties of Plants ( UPOV ) ( Geneva Act,

1991 ).

2 . The Cooperation Council may recommend that paragraph 2 of Article 43 shall apply to other multi ­

lateral conventions . If problems in the area of intellectual, industrial and commercial property affecting
trading conditions were to occur, urgent consultations will be undertaken, at the request of either
party, with a view to reaching mutually satisfactory solutions .

3 . The Parties confirm the importance they attach to the obligations arising from the following multi ­

lateral conventions ;

— Paris Convention for the Protection of Industrial Property ( Stockholm Act, 1967 and amended in

1979 );

— Madrid Agreement concerning the International Registration of Marks ( Stockholm Act, 1967 and

amended in 1979 );

— Patent Cooperation Treaty ( Washington, 1970, amended in 1979 and modified in 1984 ).

4 . From entry into force of this Agreement, the Kyrgyz Republic shall grant to Community companies

and nationals, in respect of the recognition and protection of intellectual, industrial and commercial
property, treatment no less favourable than that granted by it to any third country under bilateral

agreements .

5 . The provisions of paragraph 3 shall not apply to advantages granted by the Kyrgyz Republic to any

third country on an effective reciprocal basis and to advantages granted by the Kyrgyz Republic to
another country of the former USSR .

No C 326 / 32 Official Journal of the European Communities 24 . 11 . 94

PROTOCOL

on mutual assistance between administrative authorities in customs matters

Article 1

Definitions

For the purposes of this Protocol :

( a ) ' customs legislation ' shall mean provisions applicable

in the territories of the Parties governing the import,
export, transit of goods and their placing under any
customs procedure, including measures of
prohibition, restriction and control and adopted by
the said Parties ;

( b ) ' customs duties ' shall mean all duties, taxes, fees or

any other charges which are levied and collected in
the territories of the Parties, in application of
customs legislation, but not including fees and
charges which are limited in amount to the
approximate costs of services rendered ;

( c ) ' applicant authority ', shall mean a competent admin ­

istrative authority which has been appointed by a
Party for this purpose and which makes a request for
assistance in customs matters ;

( d ) ' requested authority ', shall mean a competent admin ­

istrative authority which has been appointed by a
Party for this purpose and which receives a request
for assistance in customs matters ;

( e ) ' contravention ', shall mean any violation of the

customs legislation as well as any attempted violation
of such legislation .

Article 2

regarding operations noted or planned which contravene
or would contravene such legislation .

2 . At the request of the applicant authority, the
requested authority shall inform it whether goods
exported from the territory of one of the Parties have
been properly imported into the territory of the other
Party, specifying, where appropriate, the customs
procedure applied to the goods .

3 . At the request of the applicant authority, the
requested authority shall take the necessary steps to
ensure that a surveillance is kept on :

( a ) natural or legal persons of whom there are
reasonable grounds for believing that they are
contravening or have contravened customs legis ­
lation ;

( b ) place where stocks of goods have been assembled in

such a way that there are reasonable grounds for
supposing that they are intended as supplies for
operations contrary to the legislation of the other
Party ;

( c ) movements of goods notified as possibly giving rise

to substantial contraventions of customs legislation ;

( d ) means of transport for which there are reasonable

grounds for believing that they have been, are or
may be used in the contravening of customs legis ­
lation .

Article 4
Scope

Spontaneous assistance
1 . The Parties shall assist each other, within their
competences, in the manner and under the conditions The Parties shall provide each other, in accordance with
laid down in this Protocol, in ensuring that customs their laws, rules and other legal instruments, with
legislation is correctly applied, in particular by the assistance if they consider that to be necessary for the
prevention, detection and investigation of contraventions correct application of customs legislation, particularly
of this legislation . when they obtain information pertaining to :

2 . Assistance, in customs matters, as provided for in
this Protocol, applies to any administrative authority of
the Parties which is competent for the application of this
Protocol . It shall not prejudice the rules governing
mutual assistance in criminal matters . Nor shall it cover
information obtained under powers exercised at the
request of the judicial authority, unless those authorities

so agree .

Article 3

— operations which have contravened, contravene or

would contravene such legislation and which may be
of interest to other Parties,

— new means or methods employed in realizing such

operations,

— goods known to be subject to substantial contra ­

vention of customs legislation .

Article 5

Assistance on request

Delivery / notification
1 . At the request of the applicant authority, the
requested authority shall furnish it with all relevant At the request of the applicant
information to enable it to ensure that customs legis ­ authority shall in accordance with its
lation is correctly applied, including information necessary measures

At the request of the applicant authority, the requested
authority shall in accordance with its legislation take all

necessary measures

24 . 11 . 94 Official Journal of the European Communities No C 326 / 33

— in order to deliver all documents,

— to notify all decisions,

falling within the scope of this Protocol to an addressee,
residing or established in its territory . In such a case
Article 6 ( 3 ) is applicable .

Article 6

Form and substance of requests for assistance

1 . Requests pursuant to this Protocol shall be made in
writing . Documents necessary for the execution of such
requests shall accompany the request . When required
because of the urgency of the situation, oral requests
may be accepted, but must be confirmed in writing
immediately .

2 . Requests pursuant to paragraph 1 of this Article
shall include the following information :

3 . Duly authorized officials of a Party may, with the
agreement of the other Party involved and within the
conditions laid down by the latter, obtain from the
offices of the requested authority or other authority for
which the requested authority is responsible, information
relating to the contravention of customs legislation
which the applicant authority needs for the purposes of
this Protocol .

4 . Officials of a Party may, with the agreement of the
other Party involved and within the conditions laid down
by the latter, be present at enquiries carried out in the
latter 's territory .

Article 8

Form in which information is to be communicated

1 . The requested authority shall communicate results
of enquiries to the applicant authority in the form of
documents, certified copies of documents, reports and
the like .

( a ) the applicant authority making the request ; 2 . The documents provided for in paragraph 1 may be

( b ) the measure requested ; replaced by computerized information produced in any
form for the same purpose .

( c ) the object of and the reason for the request ;

( d ) the laws, rules and other legal elements involved ;

( e ) indications as exact and comprehensive as possible

on the natural or legal persons being the target of
the investigations ;

( f ) a summary of the relevant facts and of the enquiries

already carried out, except in cases provided for in
Article 5 .

3 . Requests shall be submitted in an official language
of the requested authority or in a language acceptable to
such authority .

4 . If a request does not meet the formal requirements,
its correction or completion may be demanded ; the
ordering of precautionary measures may, however, take
place .

Article 7

Execution of requests

1 . In order to comply with a request for assistance,
the requested authority or, when the latter cannot act on
its own, the administrative department to which the
request has been addressed by this authority, shall
proceed, within its competence and available resources,
as though it were acting on its own account or at the
request of other authorities of that same Party, by
supplying information already possessed, by carrying out
appropriate enquiries or by arranging for them to be
carried out .

2 . Requests for assistance will be executed in
accordance with the laws, rules and other legal
instruments of the requested Party .

Article 9

Exceptions to the obligation to provide assistance

1 . The Parties may refuse to give assistance as
provided for in this Protocol, where to do so would :

( a ) be likely to prejudice sovereignty, public policy,

security or other essential interests ;

or

( b ) involve currency or tax regulations other than regu ­

lations concerning customs duties ;

or

( c ) violate an industrial, commercial or professional

secret .

2 . Where the applicant authority asks for assistance
which it would itself be unable to provide if so asked, it
shall draw attention to that fact in its request . It shall
then be left to the requested authority to decide how to
respond to such a request .

3 . If assistance is withheld or denied, the decision and
the reasons therefore must be notified to the applicant
authority without delay .

Article 10

Obligation to observe confidentiality

1 . Any information communicated in whatsoever form
pursuant to this Protocol shall be of a confidential
nature . It shall be covered by the obligation of official
secrecy and shall enjoy the protection extended to like
information under the relevant laws of the Party which
received it and the corresponding provisions applying to
the Community authorities .

No C 326 / 34 Official Journal of the European Communities 24 . 11 . 94

2 . Nominative data shall not be transmitted whenever
there are reasonable grounds to believe that the transfer
or the use made of the data transmitted would be
contrary to the basic legal principles of one of the
Parties, and, in particular, if the person concerned would
suffer undue disadvantages . Upon request, the receiving
Party shall inform the furnishing Party of the use made
of the information supplied and of the results achieved .

3 . Nominative data may only be transmitted to
customs authorities and, in the case of need for pros ­
ecution purposes, to public prosecution and judicial
authorities . Other persons or authorities may obtain such
information only upon previous authorization by the
furnishing authority .

4 . The furnishing Party shall verify the accuracy of
the information to be transferred . Whenever it appears
that the information supplied was inaccurate or to be
deleted, the receiving Party shall be notified without
delay . The latter shall be obliged to carry out the
correction or deletion .

5 . Without prejudice to cases of prevailing public
interest, the person concerned may obtain, upon request,
information on the data stores and the purpose of this

storage .

Article 11

Use of information

1 . Information obtained shall be used solely for the
purposes of this Protocol and may be used within each
Party for other purposes only with the prior written
consent of the administrative authority which furnished
the information and shall be subject to any restrictions
laid down by that authority .

2 . Paragraph 1 shall not impede the use of
information in any judicial or administrative proceedings
subsequently instituted for failure to comply with
customs legislation .

3 . The Parties may, in their records of evidence,
reports and testimonies and in proceedings and charges
brought before the courts, use as evidence information
obtained and documents consulted in accordance with
the provisions of this Protocol .

Article 12

Experts and witnesses

An official of a requested authority may be authorized to
appear, within the limitations of the authorization
granted, as expert or witness in judicial or administrative
proceedings regarding the matters covered by this

Protocol in the jurisdiction of another Party, and
produce such objects, documents or authenticated copies
thereof, as may be needed for the proceedings . The
request for an appearance must indicate specifically on
what matters and by virtue of what title or qualification
the official will be questioned .

Article 13

Assistance expenses

The Parties shall waive all claims on each other for the
reimbursement of expenses incurred pursuant to this
Protocol, except, as appropriate, for expenses to experts
and witnesses and to interpreters and translators who are
not dependent upon public services .

Article 14

Implementation

1 . The management of this Protocol shall be entrusted
i;o the central customs authorities of the Kyrgyz Republic
on the one hand and the competent services of the
Commission of the European Communities and, where
appropriate, the customs authorities of the Member
States of the European Union on the other . They shall
decide on all practical measures and arrangements
necessary for its application, taking into consideration
mles in the field of data protection . They may
recommend to the competent bodies amendments which
they consider be made to this Protocol .

1 . The Parties shall consult each other and
subsequently keep each other informed of the detailed
mles of implementation which are adopted in accordance
with the provisions of this Protocol .

Article 15

Complementary

L This Protocol shall complement and not impede the
application of any agreements on mutual assistance
which have been concluded or may be concluded
between individual or several Member States of the

European Union and the Kyrgyz Republic . Nor shall it
preclude more extensive mutual assistance granted under
jiuch agreements .

?.. Without prejudice to Article 11, these agreements
do not prejudice Community provisions governing the
communication between the competent services of the
Commission and the customs authorities of the Member
States of any information obtained in customs matters
which could be of Community interest .

24 . 11 . 94 Official Journal of the European Communities No C 326 / 35

Joint Declaration concerning Article 23

Without prejudice to the provisions of Articles 38 and 41, the Parties agree that the words ' in
conformity with their legislation and regulations ' mentioned in paragraphs 1 and 2 of Article
23 mean that each Party may regulate the establishment and operation of companies on its
territory, provided that these regulations do not create for the establishment and operations of
companies of the other Party any reservations to the treatment no less favourable than that
accorded to their own companies or to companies, branches or subsidiaries of companies of
any third country .

Joint Declaration concerning the notion of ' control ' in Article 25 ( b ) and Article 37

1 . The Parties confirm their mutual understanding that the question of control shall depend on

the factual circumstances of the particular case .

2 . A company shall, for example, be considered as being ' controlled ' by another company, and

thus a subsidiary of such other company if :

— the other company holds directly or indirectly a majority of the voting rights,

or

— the other company has the right to appoint or dismiss a majority of the administrative

organ, of the management organ or of the supervisory organ and is at the same time a
shareholder or member of the subsidiary .

3 . Both Parties consider the criteria in paragraph 2 to be non-exhaustive .

Joint Declaration concerning Article 43

The Parties agree that for the purpose of the Agreement, intellectual, industrial and
commercial property includes in particular copyright, including the copyright in computer
programs, and neighbouring rights, the rights relating to patents, industrial designs,
geographical indications, including appellations of origin, trademarks and service marks, topo ­
graphies of integrated circuits as well as protection against unfair competition as referred to in
Article 10 of the Paris Convention for the protection of industrial property and protection of
undisclosed information on know-how .

Joint Declaration concerning Article 92

The Parties agree, for the purpose of its correct interpretation and its practical application, that
the term ' cases of special urgency ^ included in Article 92 of the Agreement mean cases of
material breach of the Agreement by one of the Parties . A material breach of the Agreement
consists in :

( a ) repudiation of the Agreement not sanctioned by the general rules of international law ;

or

( b ) violation of the essential elements of the Agreement set out in Article 2 .