Source: EURLEX
Language: en
Format: md

No C 14 / 4 EN Official Journal of the European Communities 19 . 1 . 96

INTERREGIONAL FRAMEWORK COOPERATION AGREEMENT

between the European Community and its Member States and the Southern Cone Co mm on

Market and its Member Countries

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 REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Parties to the Treaty establishing the European Community and the Treaty on European Union, here ­
inafter referred to as the ' European Community Member States ', and

THE EUROPEAN COMMUNITY, hereinafter referred to as ' the Community ',

of the one part, and

THE ARGENTINE REPUBLIC,

THE FEDERATTVE REPUBLIC OF BRAZIL,

THE REPUBLIC OF PARAGUAY,

THE EASTERN REPUBLIC OF URUGUAY,

Parties to the Treaty of Asuncion establishing a Southern Cone Common Market and to the Ouro Preto
Additional Protocol, hereinafter referred to as the ' Mercosur member countries ', and

19 . 1 . 96 [ EN ] Official Journal of the European Communities No C 14 / 5

THE SOUTHERN CONE COMMON MARKET, hereinafter referred to as ' Mercosur ',

of the other part,

CONSIDERING the deep historical, cultural, political and economic links which unite them, and taking
inspiration from the values shared by their peoples ;

CONSIDERING their full commitment to the content and principles of the Charter of the United Nations
and to democratic values, the rule of law and promoting and respecting human rights ;

CONSIDERING the importance which both Parties attach to the principles and values set out in the
Declaration of the United Nations Conference on Environment and Development held in Rio de Janeiro in
June 1992 and those set out in the Final Declaration of the World Summit for Social Development held in

Copenhagen in March 1995 ;

MINDFUL of the fact that both Parties consider the process of regional integration to be an instrument of
economic and social development which makes it easier for their economies to become part of the world
economy, promotes closer relations between peoples and contributes to greater international stability ;

REAFFIRMING their desire to uphold and strengthen the tenets of international free trade, in compliance
with World Trade Organization rules, with a particular emphasis on the importance of open regionalism ;

CONSIDERING that both the Community and Mercosur have specific experience of regional integration
which could be of mutual benefit as they forge closer relations determined by their needs ;

MINDFUL of the relations of cooperation which have developed through the bilateral agreements between
the countries of both the regions and through the bilateral framework cooperation Agreements between the
Mercosur member countries and the European Community ;

MINDFUL of the results produced by the interinstitutional cooperation Agreement of 29 May 1992
between the Commission of the European Communities and the Southern Cone Common Market, and
emphasizing the need to continue the activities covered by that Agreement ;

CONSIDERING the political will of both Parties to achieve what will ultimately be a political and
economic interregional association founded on greater political cooperation and progressive and reciprocal
liberalization of all trade, taking account of the sensitivity of certain goods and complying with World
Trade Organization rules, and the promotion of investment and closer cooperation ;

MINDFUL of the terms of the Joint Solemn Declaration in which both Parties propose to agree an inter ­
regional framework Agreement covering commercial and economic cooperation and preparing for gradual
and reciprocal liberalization of trade between the two regions as a prelude to the negotiation of an interre ­
gional association Agreement between them ;

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

No C 14 / 6 1 EN I Official Journal of the European Communities 19 . 1 . 96

FOR THE KINGDOM OF BELGIUM :

FOR THE KINGDOM OF DENMARK :

FOR THE FEDERAL REPUBLIC OF GERMANY :

FOR THE HELLENIC REPUBLIC :

FOR THE KINGDOM OF SPAIN :

FOR THE FRENCH REPUBLIC :

FOR IRELAND :

FOR THE ITALIAN REPUBLIC :

FOR THE GRAND DUCHY OF LUXEMBOURG :

FOR THE KINGDOM OF THE NETHERLANDS :

FOR THE REPUBLIC OF AUSTRIA :

FOR THE PORTUGUESE REPUBLIC :

FOR THE REPUBLIC OF FINLAND :

FOR THE KINGDOM OF SWEDEN :

FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND :

FOR THE EUROPEAN COMMUNITY :

FOR THE ARGENTINE REPUBLIC :

FOR THE FEDERATIVE REPUBLIC OF BRAZIL :

FOR THE REPUBLIC OF PARAGUAY :

FOR THE EASTERN REPUBLIC OF URUGUAY :

FOR THE SOUTHERN CONE COMMON MARKET :

WHO, having exchanged their Full Powers, found in good and due form,

HAVE AGREED AS FOLLOWS :

19 . 1 . 96 | EN Official Journal of the European Communities No C 14 / 7

TITLE I

OBJECTIVES, PRINCIPLES AND SCOPE

Article 1

for subsequent gradual and reciprocal liberalization of
trade and promoting conditions which are conducive to
the establishment of the subsequent interregional
Association, taking into account, in conformity with
WTO rules, the sensitivity of certain goods .

Basis for coopération Article 5

Dialogue on tråde and economic matters
Respect for the democratic principles and fundamental
human rights established by the Universal Declaration of
Human Rights inspires the domestic and external policies 1 . The Parties shall agree on the scope of cooperation
of the Parties and constitutes an essential element of this in trade matters without excluding any aspect from the
Agreement . outset .

Article 2

Objectives and scope

1 . This Agreement shall seek to strengthen existing
relations between the Parties and to lay the groundwork
for interregional association arrangements .

2 . To those ends, the Agreement covers trade and
economic matters, cooperation regarding integration and
other fields of mutual interest in order to bring closer
relations between the Parties and their institutions .

Article 3

Political dialogue

1 . The Parties shall institute regular dialogue to back
up and consolidate closer relations between the
European Union and Mercosur . Such dialogue shall be
conducted in accordance with the Joint Declaration

attached hereto .

2 . The ministerial dialogue provided for in the Joint
Declaration shall take place within the Cooperation
Council established by Article 25 of this Agreement or
within other agreed forums of an equivalent level .

TITLE II

TRÅDE

Article 4

Objectives

The Parties shall undertake to forge closer relations with
the aim of increasing and diversifying trade, preparing

2 . To those ends, the Parties shall undertake to
conduct periodic dialogue on trade and economic
matters, within the institutional framework established by
Title VIII of the Agreement .

3 . Cooperation of this nature shall focus on the
following :

( a ) market access, trade liberalization ( tariff and
non-tariff barriers ) and trade discipline ( anti ­
competitive practices, rules of origin, safeguards and
special customs arrangements, for example );

( b ) the Parties ' trade relations with non-member
countries ;

( c ) the compatibility of trade liberalization with GATT

and WTO rules ;

( d ) the identification of goods which the Parties consider

to be sensitive or of priority importance ;

( e ) cooperation and exchange of information on
services, within the Parties ' spheres of competence .

Article 6

Cooperation on agri-food and
industrial standards and certification

1 . The Parties shall undertake to cooperate in
promoting the approximation of quality standards for
agri-food products and industrial goods and of certifi ­
cation, in conformity with international criteria .

2 . Within the bounds of their spheres of competence,
the Parties shall examine the prospects for beginning
negotiations for mutual recognition agreements .

# No C 14 / 8 run Official Journal of the European Communities 19 . 1 . 96

3 . The primary aim of cooperation shall be to foster 2 . Within the bounds of their laws, regulations and
any activity which is likely to improve the quality of the policies, and in line with the undertakings made within
Parties ' products and business . the TRIPs Agreement, the Parties shall ensure that there

is suitable and genuine protection of intellectual property
rights, if necessary by arranging for such protection to be
Article 7 stepped up .

Coopération in customs matters

1 . The Parties shall promote cooperation in customs
matters in order to improve and consolidate the legal
framework for trade relations between them .

Cooperation in customs matters may also seek to
strengthen the customs infrastructure of the Parties and
improve their operation within the framework of interin ­
stitutional cooperation .

2 . Cooperation may be translated into action by
measures including :

( a ) exchanges of information ;

( b ) the development of new training techniques and

coordination of activities in the relevant international

organizations ;

( c ) exchanges of officials and senior personnel from

customs and tax departments ;

( d ) simplification of customs procedures ;

( e ) technical assistance .

3 . The Parties hereby signal their interest in giving
future consideration, within the institutional framework
established by this Agreement, to the conclusion of a
Customs Cooperation Protocol .

Article 8

Coopération in statistical matters

The Parties shall agree to align statistical methods with
the aim of achieving mutual recognition and making use
of statistics on trade in goods and services and, in
general terms, data relating to any field for which
statistics can be collected .

Article 9

Cooperation regarding intellectual property

1 . The Parties shall agree to cooperate in intellectual
property matters in order to encourage investment, the
transfer of technology, trade and all associated economic
activities, and to prevent distortions of trade .

3 . To the ends described in paragraph 2, intellectual
property matters shall encompass copyright and similar
rights, trademarks or brands, geographical terms and
descriptions of origin, industrial designs and utility
models, patents and integrated circuit topography .

TITLE III

ECONOMIC COOPERATION

Article 10

Objectives and principles

1 . Guided by their mutual interests and their medium ­
and long-term economic objectives, the Parties shall
promote economic cooperation in such a way as to help
to expand their economies, increase their international
competitiveness, foster technical and scientific devel ­
opment, improve their standards of living, establish
conditions conducive to job creation and job quality and
diversify and strengthen economic links between them .

2 . The Parties shall encourage the conferring of a
regional character on any aspect of cooperation which,
by virtue of its scope or economies of scale, results in
what they consider to be a more rational and efficient
use of available resources and a better outcome .

3 . Economic cooperation between the Parties shall
have as wide a basis as possible . No aspect shall be
excluded from the outset, and account shall be taken of
the Parties ' priorities, mutual interest and areas of

competence .

4 . In the light of the foregoing, the Parties shall
cooperate in all areas wich will foster economic and
social links and networks between them and which will

bring their economies closer together, as well as in all

areas in which there is a transfer of specific know-how
relating to regional integration .

19 . 1 . 96 EN Official Journal of the European Communities No C 14 / 9

5 . Within the framework of such cooperation, the
Parties shall promote the exchange of information on
their respective economic indicators .

6 . The Parties shall pay attention to protection of the
environment and the ecological balance in all their coop ­
eration activities .

7 . A regard for social development, particularly the
promotion of fundamental social rights, shall motivate
the steps taken by the Parties in this field .

Article 11

Coopération in business

technical seminars, fact-finding missions, attendance
at general and specialist fairs and business meetings ;

( b ) suitable initiatives to back cooperation between small

and medium-sized enterprises, such as the promotion
of joint ventures, the establishment of information
networks, encouraging the opening of trade offices,
the transfer of specialist know-how, subcontracting,
applied research, licensing and franchising ;

( c ) promoting initiatives to increase cooperation between

Mercosur economic operators and European
associations, with the aim of establishing dialogue
between networks ;

( d ) training schemes, encouraging the establishment of

networks and backing for research .

1 . The Parties shall promote cooperation in business
with the aim of establishing a climate which favours
economic development in their mutual interest . Article 12

Promotion of investment

2 . Such coopération shall focus on :

( a ) increasing the flow of trade, investment, industrial

cooperation projects and the transfer of technology ;

( b ) encouraging modernization and diversification in
industry ;

( c ) identifying barriers to industrial cooperation between

the Parties and eliminating such barriers using
across-the-board measures which promote
compliance with competition rules and foster the
tailoring of those rules to the needs of the market,
giving due attention to the involvement and consul ­
tation of operators ;

( d ) stimulating cooperation between the Parties '
economic operators, especially small and
medium-sized enterprises ;

( e ) promoting industrial innovation by developing an

integrated and decentralized view of cooperation
between operators in the two regions ;

( f ) ensuring that action seeking to produce a positive

influence on cooperation between businesses in the
two regions remains a coherent whole .

1 . Within the bounds of their spheres of competence,
the Parties shall promote an attractive and stable climate
for greater mutually beneficial investment .

2 . Such cooperation shall encompass measures
including the following :

( a ) promoting regular exchanges of information, the
identification and dissemination of information on

legislation and investment opportunities ;

( b ) promoting the development of a legal environment

which is conducive to investment between the
Parties, particularly, where applicable, through the
conclusion between interested Community Member
States and Mercosur member countries of bilateral
agreements for the promotion and protection of
investment and bilateral agreements to prevent
double taxation ;

( c ) promoting joint ventures, particularly between small

and medium-sized enterprises .

Article 13

Coopération regarding energy

3 . Cooperation shall essentially take the following

forms : 1 . Cooperation between the Parties shall focus on
encouraging closer relations between their economies in
energy-related industries, taking into consideration the
( a ) more organized contact between the Parties ' need to use energy rationally and in a manner which
operators and networks, through conferences, respects the environment .

No C 14 / 10 [ ENl Official Journal of the European Communities 19 . 1 . 96

2 . Cooperation regarding energy shall essentially take
the following forms :

( a ) exchanges of information in all appropriate forms,

particularly through joint meetings ;

( b ) transfers of technology ;

( c ) encouraging the involvement of the Parties '
economic operators in joint technological devel ­
opment or infrastructure projects ;

( d ) technical training programmes ;

( e ) to the extent that their spheres of competence allow,

dialogue regarding energy policy .

3 . Where appropriate, the Parties may conclude
spécifié agreements of common interest .

Article 14

Cooperation regarding transport

1 . Cooperation between the Parties regarding
transport shall seek to back the restructuring and
modernization of transport systems and find mutually
acceptable solutions for moving people and goods using
all modes of transport .

2 . Cooperation shall focus on the following :

( a ) exchanges of information on both Parties ' transport

policies and on matters of mutual interest ;

( b ) training programmes for transport system operators .

3 . Within the framework of the dialogue on trade and
economic matters referred to in Article 5, and
considering the prospect of interregional Association,
both Parties shall devote attention to all aspects of inter ­
national transport to ensure that they do not act as a
barrier to the reciprocal expansion of trade .

Article 15

Cooperation in science and technology

1 . The Parties shall agree to cooperate in the field of
science and technology with the aim of promoting a
lasting working relationship between their scientific
communities and exchanging information and know-how
regarding science and technology between the regions .

2 . Cooperation in science and technology between the
Parties shall focus on the following :

( a ) joint research projects in fields of common interest ;

( b ) exchanges of scientists in order to encourage joint

research, prepare projects and provide high-calibre
training ;

( c ) joint scientific conferences to exchange information,

promote interaction and facilitate the selection of
subjects for joint research ;

( d ) publicizing of results and development of links
between the public and private sectors .

3 . Such cooperation shall involve the Parties ' centres
of higher education and research and their industries,
particularly small and medium-sized entreprises .

4 . The Parties shall agree between them the scope,
nature and priorities of cooperation through a multi ­
annual programme which can be adapted to suit the
circumstances .

Article 16

Cooperation in telecommunications and information

technology

1 . The Parties shall agree to establish cooperation
regarding telecommunications and information tech ­
nology, with the aim of fostering economic and social
development, driving the information society forward
and making modernization of society easier .

2 . Cooperation in this field shall seek especially to :

( a ) facilitate the establishment of dialogue on the various

features of the information society and promote the
exchange of information on standards, inspection
and certification in the field of telecommunications
and information technology ;

( b ) disseminate new telecommunications and
information technology, particularly in the fields of
integrated services digital networks, data trans ­
mission and the establishment of new communi ­
cations and information-technology services ;

( c ) stimulate the launching of joint research, industrial

and technological development projects in the field
of new communications technologies, telematics and
the information society .

19 . 1 . 96 EN Official Journal of the European Communities No C 14 / 11

Article 17 4 . The Parties shall cooperate to ensure maximum
efficiency in the use of their resources for the compi ­

environmental protection lation, analysis, publication and dissemination of

information, without prejudice to any steps which might

achieving sustainable development, be necessary to protect the confidential nature of some
awareness of the issues of of that information . They shall also undertake to protect
and the rational use of natural personal data in all instances in which there is provision
. for exchanging information via computer networks .

Cooperation regarding environmental protection

1 . With the aim of achieving sustainable development,
the Parties shall encourage awareness of the issues of
environmental protection and the rational use of natural
resources in all fields of interregional cooperation .

2 . The Parties shall agree to devote special attention
to measures connected with the international dimension
of environmental problems .

3 . Cooperation could cover the following in
particular :

( a ) exchanges of information and know-how regarding

matters including regulations and standards ;

\

( b ) training and education regarding the environment ;

( c ) technical assistance, joint research projects and,
where appropriate, institutional assistance .

TITLE IV

ENCOURAGING INTEGRATION

Article 18

Objectives and scope

1 . Cooperation between the Parties shall seek to
further the objectives of Mercosur's integration process
and shall encompass all the areas of this Agreement .

2 . To those ends, cooperation activities shall be
considered in the context of the specific requirements of
Mercosur .

3 . Cooperation should take any form which is
considered appropriate, and particularly :

( a ) arrangements for the exchange of information in any

suitable manner, including the establishment of
computer networks ;

( b ) training and institutional backing ;

( c ) studies and joint projects ;

( d ) technical assistance .

TITLE V

INSTITUTIONAL COOPERATION

Article 19

Objectives and scope

1 . The Parties shall promote closer cooperation
between their institutions and shall particularly
encourage regular contact .

2 . Such cooperation shall have as wide a basis as
possible and shall focus on :

( a ) any means of fostering regular exchanges of
information, including the joint development of
computer networks for communication ;

( b ) the transfer of know-how ;

( c ) advice and information ;

TITLE VI

OTHER AREAS OF COOPERATION

Article 20

Cooperation regarding training and education

1 . Within the bounds of their spheres of competence,
the Parties shall endeavour to find ways to improve
education and training relating to regional integration,
whether in the form of vocational training and training
for young people or in the form of cooperation between
universities or businesses .

2 . The Parties shall pay particular attention to action
which would promote the establishment of links between
their specialist entities and encourage the use of technical
resources and exchanges of know-how .

3 . The Parties shall encourage the conclusion of
agreements between training centres and the holding of

No C 14 / 12 [ EN Official Journal of the European Communities 19 . 1 . 96

meetings between bodies responsible for education and 2 . With regard to the implementation of this
training in the field of regional integration . Agreement, either of the Parties may put forward

suggestions for widening the scope of cooperation,
taking into account the experiencè gained in its
application .
Article 21

Cooperation regarding information, communication and

culture

1 . Within the bounds of their spheres of competence,
and with the aim of broadening knowledge of their
political, economic and social realities, the Parties shall
agree to strengthen the cultural links between them and
encourage and publicize the nature, objectives and scope
of their processes of integration to promote under ­
standing of them within their societies .

The Parties shall also agree to expand exchanges of
information between them on matters of mutual interest .

2 . Such cooperation should promote contact between
the Parties ' information and communications media in
forms including technical assistance .

TITLE VII

RESOURCES FOR COOPERATION

Article 24

1 . In order to facilitate the achievement of the aims

set out in this Agreement, the Parties shall make
available, within the limits of their abilities and through
their own channels, the appropriate resources, including
financial resources .

2 . Depending on the results obtained, the Parties shall
call on the European Investment Bank to step up its
activities within Mercosur in accordance with its own
procedures and financing criteria .

3 . The provisions of this Agreement shall not affect
bilateral cooperation established by existing cooperation

agreements .

It could include cultural activities if their regional
significance justifies such action . TITLE VIII

INSTITUTIONAL FRAMEWORK

Article 22

Cooperation in combating drug trafficking Article 25

1 . In accordance with their spheres of competence,
the Parties shall promote the coordination and intensifi ­
cation of their efforts to combat drug trafficking and its
many ramifications, including financial ramifications .

2 . Such cooperation shall include the promotion of
consultation and greater coordination between the
Parties at regional level and, where appropriate, between
the relevant regional institutions . '

Article 23

Future developments

1 . A Cooperation Council is hereby established . It
shall supervise the implementation of this Agreement and
shall meet at ministerial level periodically and whenever
circumstances require .

2 . The Cooperation Council shall discuss important
matters arising in connection with the Agreement and
any other bilateral or international issues of common
interest, with the aim of fulfilling the Agreement's
objectives .

3 . The Cooperation Council may also make appro ­
priate proposals, with the agreement of the Parties . In
carrying out its duties, the Cooperation Council shall
undertake in particular to make recommendations which
contribute to the ultimate objective of interregional
association .

1 . The Parties may by mutual consent expand this Article 26
Agreement with a view to enhancing the levels of coop ­
eration and supplementing them, within the bounds of 1 . The Cooperation Council shall be composed of
their respective laws, by means of agreements on specific members of the Council of the European Union and
sectors or activities . members of the European Commission, on the one hand,

19 . 1 . 96 EN Official Journal of the European Communities No C 14 / 13

and members of the Common Market Council and

Common Market Group, on the other .

2 . The Cooperation Council shall adopt its own rules
of procedure .

3 . The Cooperation Council shall be chaired in turn
by a representative of the Community and a represen ­
tative of Mercosur .

Article 27

1 . The Cooperation Council shall be assisted in the
performance of its duties by a Joint Cooperation
Committee composed of representatives of the
Community, on the one hand, and representatives of
Mercosur, on the other .

2 . The Joint Committee shall generally meet once a
year, on a date and with an agenda agreed in advance by
the Parties, alternately in Brussels and in one of the
Mercosur member countries . Special meetings may be
convened by mutual agreement, at the request of either
Party . The office of chairman of the Joint Committee
shall be held alternately by a representative of each of
the Parties .

3 . The Cooperation Council shall set out the
operating procedures of the Joint Committee in its own
rules of procedure .

4 . The Cooperation Council may delegate all or part
of its powers to the Joint Committee . The latter shall
provide continuity between meetings of the Cooperation
Council .

5 . The Joint Committee shall assist the Cooperation
Council in the performance of its duties . In fulfilling its
functions, the Joint Committee shall in particular :

( a ) stimulate trade relations in accordance with the
objectives of this Agreement and in compliance with
provisions of Title II ;

( b ) exchange views on any matter of common interest

which relates to trade liberalization and cooperation,
including future programmes of cooperation and the
resources available for their implementation ;

( c ) make proposals to the Cooperation Council, with the

aim of stimulating preparations for the liberalization
of trade and of intensifying cooperation, while
taking due account of the need for coordination
between the activities proposed ;

( d ) in more general terms, to make proposals to the

Cooperation Council which contribute to achieving
the ultimate aim of EU-Mercosur Interregional
Association .

Article 28

The Cooperation Council may decide to set up any other
body to assist it in the performance of its duties and shall
determine that body's composition, objectives and
operating procedures .

Article 29

1 . In accordance with the procedures laid down in
Article 5 of this Agreement, the Parties shall establish a

Subcommittee on Trade, which shall ensure that the
trade-related objectives of this Agreement are fulfilled
and shall conduct preparatory work for the subsequent
liberalization of trade .

2 . The Subcommittee on Trade shall be composed of
representatives of the Community, on the one hand, and
representatives of Mercosur, on the other . It may
commission any studies or technical analyses which it
deems necessary .

3 . The Subcommittee on Trade shall report once a
year to the Joint Cooperation Committee established
under Article 27 of the Agreement on the progress of its
work, and shall make proposals regarding the subsequent
liberalization of trade .

4 . The Subcommittee on Trade shall submit its rules
of procedure to the Joint Committee for approval .

Article 30

Consultation

Within the bounds of their spheres of competence, the
Parties shall undertake to hold consultations on any issue
referred to in this Agreement .

The procedure for the consultations referred to above
shall be laid down in the rules of procedure of the Joint
Committee .

TITLE IX

FINAL PROVISIONS

Article 31

Other agreements

Without prejudice to the provisions of the Treaties estab ­

lishing the European Communities and Mercosur,
neither this Agreement nor any action taken under it
shall in any way affect the powers of the Member States
of the Community or the member countries of Mercosur
to undertake bilateral activities within their spheres of

No C 14 / 14 EN Official Journal of the European Communities 19 . 1 . 96

competence or where appropriate to conclude new coop ­
eration agreements .

Article 32

Definition of the Parties

For the purposes of this Agreement, the term ' the
Parties ' shall mean the Community, its Member States or
the Community and its Member States, in accordance
with their respective spheres of competence, as deriving
from the Treaty establishing the European Community,
on the one hand, and Mercosur or its member countries,
in accordance with the Treaty establishing the Southern
Cone Common Market, on the other hand .

Article 33

Territorial application

This Agreement shall apply, on the one hand, to the
territories in which the Treaty establishing the European
Community is applied and under the conditions laid
down in that Treaty and, on the other, to the territories
in which the Treaty establishing the Southern Cone
Common Market is applied and under the conditions
laid down in that Treaty and its additional protocols, on
the other hand .

Article 34

Duration and entry into force

1 . This Agreement shall be valid indefinitely .

2 . The Parties shall determine the suitability, timing
and conditions of the start of negotiations for interre ­
gional association in accordance with their own
procedures and in the light of the work carried out and
the proposals made within the institutional framework of
this Agreement .

3 . This Agreement shall enter into force on the first
day of the month following the date on which the
Parties have notified each other of the completion of the
procedures necessary for this purpose .

4 . Notification shall be sent to the Council of the
European Union and the Common Market Group of
Mercosur .

5 . The Secretary - General of the Council shall be the
depositary for the Community . The Government of the
Republic of Paraguay shall be the depositary for
Mercosur .

Article 35

Non-execution

1 . The Parties shall adopt any general or specific
measure required for them to fulfil their obliations under
this Agreement, and they shall ensure that they comply
with the objectives laid down in that Agreement .

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

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

requests .

2 . The Parties agree, for the purpose of the correct
interpretation and practical application of this
Agreement, that the term ' cases of special urgency 5 in
paragraph 1 of this Article means a case 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 ) violations of essential elements of the Agreement,

namely Article 1 .

3 . The Parties agree that the ' appropriate measures '
referred to in this Article are measures taken in
accordance with international law . If a Party takes a
measure in a case of special urgency as provided for
under this Article, the other Party may ask that an
urgent meeting be called to bring both Parties together
within 15 days .

Article 36

Authentic texts

This Agreement is drawn up in duplicate in the Danish,

Dutch, English, Finnish, French, German, Greek, Italian,
Portuguese, Spanish and Swedish languages, each of
these texts being equally authentic .

19 . 1 . 96 I EN I Official Journal of the European Communities No C 14 / 15

JOINT DECLARATION MADE AT THE TIME OF INITIALLING

Pending the completion of the procedures needed for the Agreement to enter into force, the
Parties declare their readiness to agree, before the Agreement is signed, on procedures to bring
about early application of its provisions, particularly those relating to Community competence
regarding the trade cooperation referred to in Title II of the Agreement and those relating to
the institutional framework established for such cooperation .

The Parties emphasize their intention to continue the cooperation provided for in the interin ­
stitutional cooperation Agreement of 29 May 1992 between the Commission of the European
Communities and the Council of Mercosur until the Parties have completed their ratification
procedures .

DECLARATION REGARDING MERCOSUR'S LEGAL PERSONALITY MADE AT THE TIME OF

INITIALLING

The Agreement initialled today may be signed once the Ouro Preto Protocol, through which
Mercosur acquires international legal personality, enters into force .

DECLARATION BY THE COMMISSION

The Commission states that if discussions within the competent Community bodies lead to the
conclusion that the Agreement has the character of a Community Agreement, the appropriate
amendments shall be made to the text, and particularly to the following Articles :

1 . Article 3 : Politicai dialogue ;

2 . Article 25 : Cooperation Council . Other necessary alterations to the wording will also be
made .

DECLARATION BY MERCOSUR

Mercosur states that once the legal nature of the interregional framework Agreement being
initialled on this date has been determined, it will if necessary propose to the other Party that
the necessary legal adjustments be made .

AN N EX

DRAFT JOINT DECLARATION ON POLITICAL DIALOGUE BETWEEN THE EUROPEAN

UNION AND MERCOSUR

Preamble

The European Union and the Member States of Mercosur,

— conscious of their historical, political and economic ties, their common cultural heritage and the bonds

of friendship between their peoples,

No C 14 / 16 [ ENl Official Journal of the European Communities 19 . 1 . 96

— mindful that political and economic freedoms are fundamental to society in the EU and the Mercosur

countries,

— reaffirming human dignity and the promotion of human rights as cornerstones of a democratic society,

in accordance with the United Nations Charter,

— reaffirming the essential role of the principles and democratic institutions based on the rule of law,

respect for which governs the internal and external policies of the parties,

— desiring to strengthen international peace and security in accordance with the principles of the United

Nations Charter,

— sharing an interest in regional integration as a means of enabling their citizens to achieve sustainable

and harmonious development predicated upon social progress and solidarity,

— building upon the preferential relations formalized by the framework cooperation Agreements which

the European Community has signed with each of the Mercosur countries,

— recalling the principles set out in the Solemn Joint Declaration signed by the two parties on 22

December 1994,

have decided to develop relations on a long-term basis .

Objectives

— Mercosur and the European Union solemnly reaffirm their commitment to progressing towards the

establishment of an interregional association and to establishing greater political dialogue for that

purpose .

— Regional integration is one means of achieving sustainable and socially harmonious development, and a

tool for ensuring competitiveness in the world economy .

— This dialogue is also intended to ensure closer consultation on issues affecting both regions and on

multilateral issues, in particular by allowing the positions of the parties to be coordinated in the relevant
multilateral organizations .

Mechanisms of the dialogue

— The parties will conduct this political dialogue by means of contacts, information exchanges and

consultation, especially meetings at the appropriate level between the various Mercosur and European
Union bodies as well as by making full use of diplomatic channels .

— In particular, with the aim of establishing and developing this political dialogue on bilateral and inter ­

national issues of mutual interest, the parties agree to hold :

( a ) regular meetings, the detailed arrangements for which will be decided on by the parties, between

the Heads of State of the countries of Mercosur and the highest authorities of the European
Union ;

( b ) an annual meeting of the Ministers for Foreign Affairs of Mercosur and of the Member States of

the European Union, attended by the European Commission . These meetings will be held at a
venue to be determined on each occasion by the parties ;

( c ) meetings of other Ministers responsible for matters of mutual interest where such meetings are

deemed necessary by the parties in order to strengthen mutual relations ;

( d ) periodic meetings of senior officials from both parties .