Source: EURLEX
Language: en
Format: md

##### `lUi CQÏvMI S S ï ON OF THE EUROPEAN COMMUNITIES`

```
                            C0M(S1) 434 final

                            Brussels, 7 November 1S91

                     Proposal for a

                     COUNCIL DECISION

```

_mmm\_

canoerrdDg the ooqolTisicn of the Fraxoevar*: Agreeraent for cooperation
between the European Eooconic Connconity _&ç&_ the BepuiOic of Paraguay

(presented by the Commission)

```
               Explanatory memorandum

1. By its decision of 18 March. 1991, the Council authorized the Commission
to open negotiations with the Republic of Paraguay with a view to
concluding a framework agreement for cooperation and adopted directives to
this end.

2. Two negotiating sessions took place, the first on 15 July in the
morning, and the second in the afternoon. The second session ended with
the initialling of the agreement between the Community and the Republic of
Paraguay. An exchange of letters concerning shipping and a declaration by
the Gammunity on the Generalized Preferences System are attached to the
Agreement and form an integral part of it.

3. The Commission considers that the text initialled is in line with the

negotiating directives adopted by the Council.

4. Because the legal basis of the Agreement includes Article 235 of the
Treaty of Rome in addition to Article 113, Parliament must be consulted.

5. With a view to the signature and conclusion of this Framework Agreement
for cooperation between the Ctammunlty and the Republic of Paraguay, the
Commission is proposing to the Council that it approve the Agreement and
adopt the attached proposal for a Decision.

```

```
                 Proposal for a

           Council Decision No

  concerning the conclusion of the Framework Agreement f oir*cooperation
  between the European Economic Community and the Republic of Paraguay

THE OUUflULL OF THE EUROPEAN (XfcMJNITIES,

Having regard to the Treaty establishing the European Economic Comunity,
and in particular Articles 113 and 235 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the Community should approve, for the attainment of its aims in the
sphere of external economic relations, the Framework Agreement for trade
and economic cooperation with the Republic of Paraguay;

```

**`HAS`** **`DBCTTW)`** **`AS`** _**FOLIWS:**_

```
                  Article 1

The Framework Agreement for trade and economic cooperation between the
European Economic Oammunity and the Republic of Paraguay is hereby approved
on behalf of the Community.

The text of the Agreement is attached to this Decision.

                  Article 2

The President of the Council shall give the notification provided for in
Article 25 of the Agreement. [1 ]

                  Article 3

The Commission, assisted by representatives of the Member States, shall
represent the Community in the Joint Committee set up by Article 21 of the
Agreement.

                  Article 4

This Decision shall enter into force on the day following its publication
In the Official Journal of the European Communities.

Done at Brussels,

1 The date of entry into force of the AgreementForllhëeOpuhan^hed in the
  Official Journal of the European Communities B^etBeeâèdenil Secretariat
  of the Council.

```

```
           Framework agreement for cooperation

          between the European Economic Qammunity

             and the Republic of Paraguay

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part,

THE GOVERNMENT OF THE REPUBLIC OF PARAGUAY,

of the other part,

CONSIDERING the links of friendship between the Member States of the

European Economic Community, hereinafter referred to as "the Community",

and the Republic of Paraguay, hereinafter referred to as "Paraguay",

REAFFIRMING the iinportance they attach to the principles of the United

Nations Charter, to democratic values and to respecting human rights,

TAKING ACCOUNT of the points reaffirmed in the Rome Declaration of

20 December 1990, and the Luxembourg Communiqué concluded on 27 April 1991

between the Community, its Member States and the countries of the Rio

Group,

CONSIDERING the readiness of the Community and its Member States to help

address the social and economic problems confronting Paraguay as it returns

to democracy,

TAKING ACCOUNT of their mutual interest in establishing contractual links

in order to develop extensive cooperation in areas which are of key

importance to social and economic progress, to step up and diversify trade

and encourage the flow of investment,

TAKING account of the Ctarnmunity's new policy on cooperation with the

developing countries of Latin America,

```

```
                    2 
MINDFUL of the importance of securing the participation in cooperation of

the individuals and bodies with a direct interest in the matter,

particularly economio operators and the bodies which represent them,

WHEREAS Paraguay is engaged in a vast regional integration process together

with Argentina, Brazil and Uruguay in the Southern Cone Common Market,

hereinafter referred to as [ M] Mercosu^ [,] ', and whereas the Community intends to

establish cooperation with each of those countries and with the new

regional entity, aimed at providing support for the said integration

process;

TAKING ACCOUNT of their membership or future membership of the General

Agreement on Tariffs and Trade (GATT) and of the need to uphold and

reinforce the rules for free and unhampered international trade,

HAVE DBGIORD to conclude this Agreement and to this end have designated as

their Plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

SHE REPUBLIC OF PARAGUAY,

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

HAVE AGREED AS FOLLOWS:

```

```
                   - 3 
                  Article 1

            Democratic basis for cooperation

Cooperation ties between the Community and Paraguay and this Agreement in

its entirety shall be based on respect for the democratic principles and

human rights which inspire the domestic and external policies of both the

Community and Paraguay.

                  Article 2

             Support for democratization

1. The Contracting Parties consider the support that the Ctamraunity can

offer towards the consolidation of democracy in Paraguay to be crucial. In

this regard, the Community reaffirms its readiness to help strengthen the

democratic institutions of Paraguay to the extent of its powers and its

ability.

2. The Parties likewise agree to encourage, by appropriate measures, the

return to Paraguay of persons obliged to leave it on political grounds.

                  Article 3

               Economic cooperation

1. The Contracting Parties, taking into account their mutual interest and

long and medium-term economic objectives, undertake to establish economic

cooperation of the widest possible scope. The aims of such cooperation

shall be, in particular:

(a) to promote diversification of the economy of Paraguay;

```

```
              - 4

(b) to strengthen and diversify the economic links between the

     Contracting Parties;

(c) to contribute to the development of their economies and the

    improvement of their standards of living;

(d) to open up new markets and new sources of supply;

(e) to create conditions which favour the development of the employment

    market;

(f ) to encourage industrial and trade cooperation, particularly among

    small and medium-si zed enterprises,

(g) to assist the integration of Paraguay into Mercosur.

2. Without excluding any field from the outset, the Contracting Parties

shall determine in which flelds there will be eœnomic and industrial

cooperation between them, having regard to their respective aims, their

mutual interest and their own ability.

Taking account of the above, cooperation will centre on the following:

(a) services, including financial services, and tourism, transport and

    telecommunications;

(b) intellectual and industrial property, regulations and standards,

(c) the management of natural resources and, in particular, the

    conservation and efficient use of forest resources, including

    reafforestation ;

(d) environmental protection;

```

**- 5 -**

```
(e) agriculture;

(f) industry, mining and energy;

(g) economic and monetary affairs.

3. Provision shall be made for the following, in particular:

(a) conferences and seminars;

(b) trade and industrial missions;

(0) exploratory missions and missions concerned with investment and the

    promotion of joint ventures;

(d) visits and meetings between economic operators;

(e) the organization of business weeks and general and sector-based

    fairs;

(f) the provision of the services of experts;

(g) specific studies;

(h) (consultancy and technical assistance services;

(i) cooperation between financial institutions;

(j) the conclusion between the Member States of the EEC and Paraguay of

    double taxation agreements;

(k) the exchange of appropriate information, particularly access to

    existing or future databases;

(1) the creation of networks of business people, particularly

    industrialists.

```

```
                    6 
                  Article 4

              Agricultural cooperation

1. Paraguay and the Garcraunity shall establish cooperation in agriculture.

To this end they shall examine in a spirit of cooperation and good will :

(a) the opportunities for increasing their trade in agricultural

    products;

(b) health, plant health and environmental measures and their effects,

    to prevent them hindering trade, while taking into account the two

    Parties' legislation in this field.

2. The Community shall contribute to Paraguay's efforts to diversify its

exports of agricultural products.

                  Article 5

               Industrial cooperation

1. The Contracting Parties agree to promote the expansion and

diversification of Paraguay's production in the Industrial and service

sectors, directing their cooperation activities at small and medium-sized

enterprises, in particular, and encouraging steps to facilitate access on

the part of those enterprises to sources of capital, markets and the

appropriate technology. These steps may include the joint establishment of

suitable machinery and Institutions.

2. The Contracting Parties likewise agree to consider the possibility of

promoting projects which could help Paraguayan industry to integrate

smoothly into Mercosur.

```

```
                   - 7 
                  Article 6

          Cooperation regarding the environment

1. The Contracting Parties undertake to cooperate on the ijoprovement and

protection of the environment in order to address the issues of water, soil

and air pollution, erosion, desertification and deforestation, and the

excessive exploitation of natural resources. They shall also encourage the

productive conservation of the forest and aquatic flora and fauna, of

watercourses and the conservation of tropical forests and national parks.

2. To this end, the Contracting Parties shall direct their efforts as

regards the environment towards the following, in particular:

(a) the establishment and iiaprovement of environmental protection

    structures in the public and private sectors;

(b) the development and ijraprovement of laws, regulations and standards;

(c) research, training and information, and alerting public opinion to

    the issues in question;

(d) the execution of studies and projects and the provision of

    technical assistance;

(e) the organization of meetings, seminars, workshops, conferences and

    visits among civil servants, specialists, engineers, business

    people and others fulfilling functions connected with the

    environment.

```

```
                   - 8 
                  Article 7

                  Investment

The Contracting Parties agree:

(a) to promote, so far as their powers, rules and regulations and

     policies permit, an increase in mutually beneficial, investment;

(b) to iinprove further the favourable climate for mutual investment by

     the Ctanmunity Member States and Paraguay, particularly through

    agreements for the promotion and protection of such investment on

    the basis of the principles of non-discri ml nation and reciprocity.

```

**`Article`** _**St**_

```
          Cooperation on science and technology

1. The Contracting Parties agree to support the promotion and development

of Paraguay's scientific and technological capabilities.

This aim will be pursued by fostering and promoting cooperation of the

widest possible scope between specialist bodies or firms of both parties,

in particular by establishing ties between the research centres of both

parties in order to resolve jointly problems of mutual concern.

2. Without excluding any area from the outset, the Contracting Parties

shall together determine the spheres of their cooperation. These shall

include the following, in particular:

(a) stoengthening research capabilities;

```

```
                - 9 
(b) developing and managing policy on science and technology;

(c) protection and improvement of the environment;

(d) promoting efficient use of natural resources, in particular forest

    resources;

(e) promoting regional integration and cooperation in science and

    technology;

(f) disseminating information and expertise in science and technology.

3. The Contracting Parties will facilitate and encourage the introduction

of measures aimed at achieving the objectives of cooperation between them,

in particular:

(a) joint research projects between the parties' research centres and

    other appropriate Institutions;

(b) exchanges of scientific information, particularly through seminars,

    workshops, conferences, etc.

(c) support for the reintegration into Paraguay of scientists,

    engineers and specialists.

                  Article 9

            Most-favoured-nation treatment

1. The Contracting Parties shall grant each other, in respect of their

imports and exports of goods, most-favoured-nation treatment on the basis

of the General Agreement on Tariffs and Trade.

```

```
                   - 10 
                  Article 10

            Temporary importation of goods

The Contracting Parties undertake to give consideration to granting

exemption from duties and taxes for goods temporarily imported into their

territory which are covered by the relevant international agreements and

are intended for re-export.

                  Article 11

                Trade cooperation

1. The Contracting Parties agree to develop and diversify trade to the

highest possible degree, taking into account the economic situation of each

of the parties and facilitating trade transactions between them as far as

possible.

2. The Contracting Parties agree to examine ways and means of eliminating

non-tariff barriers and, taking account of the work done by international

organizations, they will commit themselves to a policy aimed at:

(a) making trade transactions between them as easy as possible;

(b) cooperating bilaterally and multilaterally on issues of common

    concern, Including intellectual and industrial property,

    origin-related designations, commodities and manufactured and

    semi-manufactured products;

(c) facilitating cooperation between their customs services in spheres

    including vocational training, the slmpl 1 fication of procedures and

    detection of infringements of customs rules;

```

```
                                 11 
(d) taking each other's interests into account in relation to access to

     resources, the processing of such resources and market access for

     the products of the Contracting Parties;

(e) bringing economic operators into closer contact in order to

    diversify and Increase current trade flows;

(f) examining, recommending and implementing trade promotion measures

    in the interests of expanding imports and exports;

(g) seeking each other's opinion as far as possible on measures likely

    to have an adverse effect on trade between them.

                  Article 12

           Coopération concerning government

1. The Contracting Parties shall cooperate in contributing to the

rationalization and modernization of government service at national and

regional levels, notably with regard to the restructuring of central

government.

2. To attain these objectives, the Oontracting Parties shall endeavour to

promote, inter alia:

- seminars and training courses for civil servants and the staff of public

  institutions and government departments;

- :Lmprovement of the equipment of public institutions and government

  departments.

```

```
                   - 12 
                  Article 15

      Cooperation on Information, communication and culture

1. Cooperation between the Contracting Parties shall encompass information

and communication, taking account of the cultural dimension of their

relations.

2. Such cooperation shall include the preservation of historic and

cultural objects.

                  Article 14

                  Training

1. Cooperation established within the framework of the Agreement may

include appropriate training.

2. Training will be targeted essentially at instructors and teachers or

supervisory staff already in positions of responsibility in firms,

government departments, public services and other areas of economic and

social activity.

3. The Contracting Parties shall consider the possibility of introducing

specific training programmes which help to strengthen Paraguay's democratic

institutions.

```

```
                   - 13 
                  Article 15

                 Publto health

The extracting Parties agree to cooperate in the field of public health,

with the aim of raising the standard of living and quality of life,

particularly in the most disadvantaged sectors . In the interests of

attaining these aims, the Parties undertake to conduct joint research,

transfers of technology, and interchanges of experience and technical

assistance, notably Including measures relating to the following:

- the management and administration of the departments with responsibility

  for this field;

- the organization of scientific meetings and exchanges of specialists;

- the undertaking of programmes of vocational training;

- programmes and projects for the improvement of health and social welfare

  in urban and rural areas.

                  Article 16

                Drug abuse control

1. The Contracting Parties undertake, in conformity with their respective

legal provisions, to coordinate and step up their efforts to prevent and

reduce the production, trafficking and consumption of drugs.

2. Such cooperation shall include the following:

- projects for training, education, health-promotion and rehabilitation of

  addicts, including projects for the reintegration of addicts into

  working life and society;

- research programmes and projects;

```

```
                - 14 
- measures to encourage alternative economio activities;

- the exchange of all relevant information, including that «relating to

  money laundering.

3. Financing for the operations referred to may be contributed by public

and private institutions and national, regional or international

organizations, in consultation with the Government of Paraguay and the

appropriate authorities of the Community and its Member States.

                  Article 17

                   Tourism

The Contracting Parties shall, in accordance with their laws, promote

coopération on tourism, which is to be achieved through specific measures

focusing on:

- exchanges of officials and experts dealing with tourism, the interchange

  of information and statistics relating to this field and the transfer of

  technology;

- the development of activities to stimulate tourist traffic;

- the advancement of training schemes intended in particular to support

  hotel operation and management;

- joint participation in fairs and exhibitions aimed at increasing tourist

  flows.

```

```
                   - 15 
                  Article 18

           Regional cooperation and integration

1. Cooperation between the Contracting Parties may extend to action

undertaken within the context of cooperation or integration agreements

with third countries in the same region.

2. Without excluding any sphere of action, the following shall be given

particular consideration:

(a) cooperation on environmental issues at regional level;

(b) development of intra-regional trade;

(c) the strengthening of regional institutions and support for the

    introduction of common policies and activities;

(d) regional communications, notably waterways.

                  Article 19

              Development cooperation

1. In order to consolidate and accelerate Paraguay's economio and social

development, the Community will implement assistance operations in the

context of the Community programmes for developing countries.

2. Particular ijoportance shall be attached to rural development, notably

integrated rural development, joint training schemes, action aimed at

ijmoroving self-sufficiency in food, employment, urban and rural housing and

promoting grassroot organizations.

```

```
                    16 
                  Article 20

              Resources for cooperation

In order to facilitate the achievement of the aims set out in this

Agreement, the Contracting Parties shall make available, within the limits

of their abilities and through their own channels, the appropriate

resources, including financial resources.

                  Article 21

             Joint Cooperation Committee

1. A Joint Cooperation Committee shall be established, consisting of

representatives of the Community and of Paraguay. It shall meet once a

year, alternately in Brussels and Asuncion, on a date and with an agenda

fixed by mutual agreement. Extraordinary meetings may be convened with the

consent of both parties.

2. The Joint Committee shall see to the proper functioning of the Agreement

and shall examine all issues arising from its application. In fulfilling

this role, its main functions shall be to:

(a) consider measures for developing and diversifying trade, in

    accordance with the objectives of this Agreement,

(b) exchange views on any points of common interest regarding trade and

    cooperation, including future programmes and the resources for

    them,

(o) make recommendations for promoting the expansion of trade and

    stepping up intensified cooperation, without neglecting the need to

    coordinate the measures planned,

```

```
                   - 17 
(d) in general terms, recommend solutions aimed at helping to attain

     the objectives of this Agreement.

3. The Joint Committee may set up specialized subcommittees and working

parties to assist it in the performance of its duties.

                  Article 22

                Other agreements

1. Without prejudice to the provisions of the Treaties establishing the

European Communities, neither this Agreement nor any action taken under it

shall in any way affect the powers of the Member States of the Communities

to undertake bilateral activities with Paraguay in the field of economic

cooperation with Paraguay or, where appropriate, to conclude new economic

cooperation agreements with Paraguay.

2. Subject to the provisions of paragraph 1 ocax)erning e<x>nomic

cooperation, the provisions of this Agreement shall replace the provisions

of the agreements concluded between the Member States of the Communities

and Paraguay where such provisions are either incompatible with or

identical to the provisions of this Agreement.

                  Article 23

              Territorial application

This Agreement shall apply, on the one hand, to the territories in which

the Treaty establishing the European Economic Community is applicable under

the conditions laid down by that Treaty and, on the other, to the territory

of the Republic of Paraguay.

```

```
                   - 18 
                 Article 24

               Future developments

1. The Contracting Parties may by mutual consent expand this Agreement

with a view to increasing the levels of cooperation and supplementing them,

each in accordance with its laws, by means of agreements on specific

sectors or activities.

2. Within the framework of this Agreement, either of the Contracting

Parties may put forward suggestions for widening the scope of cooperation,

taking into account the experience gained in its application.

                 Article 25

            Entry Into force and duration

1. This Agreement shall enter into force on the first day of the month

following the date on which the Oontraoting Parties have notified each

other of the completion of the pcrocedures necessary for this purpose.

2. This Agreement is ccmcluded for a period of five years. It shall be

renewed on a yearly basis unless one of the Contracting Parties denounces

it six months before the date of expiry.

                 Article 26

                  Annexes

The Annexes shall form an integral part of this Agreement.

```

```
                   - 19 
                  Article 27

               Authentic languages

This Agreement is drawn up in duplicate in the Danish, rxitch, English,

French, German, Greek, Italian, Portuguese and Spanish languages, each text

being equally authentic

Done at Brussels,

```

##### **_Xo_**

```
                          ANNEX I

         EXCHANGE OF LETTERS CN MARITIME TRANSPORT „..

                  Letter 1

Sir,

Please would you confirm your Government's agreement to the following:

When the Agreement on cooperation between the European Economic Community

and Paraguay was signed, the Parties undertook to address in the

appropriate manner issues relating to the operation of shipping,

particularly where the development of trade might be hindered. Mutually

satisfactory solutions on shipping will be sought, with due respect for the

principle of free and fair competition on a commercial basis.

It has likewise been agreed that such issues should also be discussed by

the Joint Committee.

Please accept, Sir, the assurance of our highest consideration.

                      On behalf of the

                 Council of the European Communities

```

**XA**

```
                  Letter 2

Sirs,

I have the honour to confirm my Government's agreement to the following:

"When the Agreement on cooperation between the European Economic Community

and Paraguay was signed, the Parties undertook to address in the

appropriate manner issues relating to the operation of shipping,

particularly where the development of trade might be hindered. Mutually

satisfactory solutions on shipping will be sought, with due respect for the

principle of free and fair competition on a commercial basis.

It has likewise been agreed that such issues should also be discussed by

the Joint Committee. "

Please accept, Sirs, the assurance of my highest consideration.

                      For the

                 Government of the Republic

                      of Paraguay

```

## **_IK,_**

```
                               ANNEX II

       UNILATERAL DECLARATION BY. THE COMMUNITY CN THE gSP

The European Economio Ctommunity hereby confirms the importance which it

attaches to the Generalized System of Preferences, set up by

Resolution 21 (II) of the Second United Nations Conference on Trade and

Development.

The European Community is prepared to examine any suggestions put to it by

Paraguay in order to enable that country to make the best and widest

possible use of the generalized preferences scheme which the Community has

implemented in accordance with the abovementioned Resolution.

In order to ensure that Paraguayan officials and business people are

properly acquainted with the Community scheme, the Commission will arrange

information seminars in Paraguay.

```

#### **_*A_**

```
               Fiche Financière

          Accord de coopération CE - Paraguay

1• Lignes budgétaires concernées

  a) lignes dont l'application est conditionnée par l'existence d'un
    Accord de coopération :

    B7-5020 - Actions dans le cadre d'accords de coopération
          économique et commerciale avec des pays tiers

    B7-3015 - Actions visant la promotion de l'investissement
          communautaire dans les PVD d'Amérique latine dans
          le cadre des accords de coopération économique et
          commerciale

    B6-8200 - Coopération Internationale - actions de recherche
          et de développement dans le cadre des accords de
          coopération avec des pays tiers.

  b) autres I ignés :

    B7-3010 - Coopération financière et technique avec des PVD
          d'Amérique Latine

    B7-3011 - Promotion des relations commerciales des PVD
          d'Amérique latine

    87-3012 - Actions destinées à favoriser les efforts

          d'Intégration régionale ou subrégionale entre
          les PVD d'Amérique latine

    B7-3013 - Coopération avec des PVD d'Amérique latine dans
          le domaine énergétique

    87-3014 - Actions de formation en faveur de ressortissants
          de PVD d'Amérique latine

    B7-5030 - Organisation de séminaires sur le
          SPG communautaire

    B7-5040 - Environnement dans les PVD

    87-5045 - Programme d'actions de coopération Nord-Sud dans le
          domaine de la lutte contre la drogue
          (Budget 1992 : B7-5080 - Programme d'actions de
          coopération Nord-Sud dans le domaine de la lutte
          contre les drogues et la toxicomanie)

```

## **-at**

```
2. Base légale

  Base légale existante

3. ClassifIcat ion

  DNO

4. PeserIptIon

  4.1 Objectif :

     Etablir une coopération dans l'intérêt des deux parties.

  4.2 Personnes concernées :

```

**Opérateurs** **économiques** **et** **instances** **responsables** **des** **deux**
**parties.**

```
5. Nature de la dépense

  5.1 Nature :

     Aide à fonds perdus en faveur de divers projets dans les
     différents domaines de coopération couverts par I'Accords.

  6. Incidence financière de l'action sur les crédits d'intervention

  6.1 Echéancier des crédits d'engagement et de paiement :

     Selon demande et approbation par les services de la Commission
     des actions à développer

  6.2 Part du financement communautaire (en %) dans le coût total de
     l'action

     à décider au cas par cas; dans certains cas Jusqu'à 100%.

  6.3 Modalités du financement de l'action pendant l'année en cours :

     A partir des crédits existants.

7. Observât ions

  Le volume des dépenses dérivées de l'accord de coopération sera
  déterminé, pour les budgets futurs, selon la procédure habituelle.

```

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

**COM(91) 434** **final**

# **DOCUMENTS**

### **EN 11**

###### Catalogue number : CB-CO-91-478-EN-C ISBN 92-77-76887-8

**Office for Official Publications of the European Communities**

**L-2985** **Luxembourg**