Source: EURLEX
Language: en
Format: md

No C 86 / 6 Official Journal of the European Communities 23 . 3 . 94

COOPERATION AGREEMENT

between the European Community and the Democratic Socialist Republic of Sri Lanka on part ­

nership and development

THE COUNCIL OF THE EUROPEAN UNION,

on the one part,

THE GOVERNMENT OF SRI LANKA,

on the other part,

CONSIDERING the excellent relations and traditional links of friendship between the European
Community and its Member States, hereinafter referred to as ' the Community ', and the Democratic
Socialist Republic of Sri Lanka, hereinafter referred to as ' Sri Lanka ';

RECOGNIZING the importance of strengthening the links and enhancing the partnership between the
Community and Sri Lanka ;

RE-AFFIRMING the importance they attach to the principles of the United Nations Charter and the
respect of democratic principles and human rights ;

HAVING REGARD to the foundations for close cooperation between Sri Lanka and the Community laid
by the Agreement between Sri Lanka and the Community signed on 22 July 1975 ;

NOTING with satisfaction the achievements resulting from that Agreement ;

INSPIRED by their common will to consolidate, deepen and diversify their relations in areas of mutual
interest on the basis of equality, non-discrimination and mutual benefit ;

RECOGNIZING the positive consequences of the process of economic reforms for liberalization and
modernization of the economy undertaken in Sri Lanka for enhancing commercial and economic relations
between Sri Lanka and the Community ;

DESIROUS of creating favourable conditions for a substantial development and diversification of trade
and industry between the Community and Sri Lanka, which will further investment flows, commercial and
economic cooperation in areas of mutual interest including science and technology, and foster cultural
cooperation ;

RECOGNIZING the need to support Sri Lankan efforts for economic and social development especially
improving the living standards of the poor and disadvantaged sections of the population ;

CONSIDERING the importance attached by the Commission and Sri Lanka to the protection of the
environment on a global and on a local level and to the sustainable use of natural resources recognizing the
linkage between the environment and development ;

NOTING their common interest in fostering and strengthening regional cooperation and the north south
dialogue ;

TAKING INTO ACCOUNT their membership of the General Agreement on Tariffs and Trade ( GAIT ),
the importance of its principles and of the need to uphold and reinforce the rules which promote free and
unhindered trade in a stable, transparent and non-discriminatory manner ;

BELIEVING that relations between them have developed beyond the scope of the Agreement concluded in

1975 ;

HAVE DECIDED, as Contracting Parties, to conclude this Agreement and to this end have designated as
their plenipotentiaries :

23 . 3 . 94 Official Journal of the European Communities No C 86 / 7

THE COUNCIL OF THE EUROPEAN UNION,

THE GOVERNMENT OF SRI LANKA,

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

HAVE AGREED AS FOLLOWS :

Article 1

Democratic basis of the cooperation

Cooperation ties between the Community and Sri Lanka
and this Agreement in its entirety are based on respect
for democratic principles and human rights which inspire
the domestic and external policies of both the
Community and Sri Lanka and which constitute an
essential element of the Agreement .

— support of environmental protection and sustainable

management of natural resources .

2 . The Contracting Parties acknowledge the value in
the light of the objectives of this Agreement, of
consulting each other on international issues of mutual
interest .

Article 3

Trade and commercial cooperation
Article 2

General objectives

1 . The general objectives of this Agreement are to
enhance and develop, through dialogue and partnership,
the various aspects of cooperation between the
Contracting Parties in order to achieve a closer and
upgraded relationship .

This cooperation will focus in particular on :

— further development and diversification of trade and

investment in their mutual interest, taking into
account their respective economic situations,

— development in their mutual interest of existing and

new forms of economic cooperation directed at
promoting and facilitating exchanges and connections
between their business communities, taking into
account the implementation of Sri Lankan economic
reforms and opportunities for the creation of a
suitable environment for investment,

— facilitation of better mutual understanding and
strengthening of ties is respect of technical, economic
and cultural matters,

— building up of Sri Lanka 's economic capability to

interact more effectively with the Community,

— acceleration of the pace of Sri Lanka 's development,

supporting Sri Lanka 's efforts in building up its
economy and in particular to improve the living
conditions of the poorer sections of the population,

1 . The Community and Sri Lanka shall continue to
grant each other most-favoured-nation treatment in their
trade in accordance with the provisions of the General
Agreement on Tariffs and Trade .

2 . In the interest of strengthening new relations in a
dynamic and complementary way, thereby providing
mutual benefits, the Contracting Parties undertake to
develop and diversify their commercial exchanges and to
improve market access, to the highest possible degree, in
a manner compatible with their economic situations .

3 . The Contracting Parties are committed to a policy
of improving the terms of access for their products to
each other 's markets . They shall grant each other the
highest degree of liberalization of imports and exports
which they generally apply to third countries and they
agree to examine ways and means of progressively elim ­
inating barriers to trade between them, notably
non-tariff barriers, taking account of the work already
done in this connection by international organizations .

4 . The Contracting Parties agree to promote the
exchange of information about mutually beneficial
market opportunities and to hold consultations in a
constructive spirit on the issues of tariff, non-tariff,
services, health, safety or environmental measures, and
technical requirements .

5 . The Contracting Parties agree to improve
cooperation in customs matters between the respective
authorities, especially in professional training, the simpli ­
fication and harmonization of customs procedures, and
the prevention, investigation and suppression of
infractions of customs regulations .

6 . The Contracting Parties also undertake to give
consideration, each in accordance with its laws, to

No C 86 / 8 Official Journal of the European Communities 23 . 3 . 94

exempting from duty, tax and other charges, goods
admitted temporarily to their territories for subsequent
re-export unaltered or for goods which re-enter their
territories after processing in the other Contracting Party
which is not sufficient for the goods to be treated as
originating from the territory of that Contracting Party .

7 . The Contracting Parties agree to consult each
other, without prejudice to their rights and obligations
under GATT, on any dispute which may arise in
connection with trade . If the Community or Sri Lanka
request such consultation, it shall take place at the
earliest opportunity . The Contracting Party making the
request shall provide the other Party with all information
necessary for a detailed examination of the situation .
Attempts shall be made through such consultations to

resolve trade disputes as rapidly as possible .

Article 4

Economic cooperation

1 . The Contracting Parties undertake, in accordance
with their respective policies and objectives and within
their financial means available, to foster economic
cooperation for mutual benefit .

2 . The Contracting Parties agree that economic
cooperation will involve three broad fields of action :

( a ) improving the economic environment in Sri Lanka by

facilitating access to Community know-how, tech ­
nology and capital ;

( b ) facilitating contacts between economic operators and

other measures designed to promote commercial
exchanges and investments ;

( c ) reinforcing mutual understanding of their respective

economic, social and cultural environment as a basis
for effective cooperation .

3 . In the broad fields described above, and without
excluding any area from the outset, the aims of the
Contracting Parties shall be in particular to :

— improve the economic environment and business

climate,

— cooperate in the protection of the environment and

natural resources,

— cooperate in the field of energy, including
non-conventional sources and energy efficiency,

— cooperate in the field of telecommunications, infor ­

mation technology, and related matters,

— cooperate in the field of metrology and industrial

standards,

— cooperate in the field of intellectual property,

— cooperate in the area of regional integration, through

transfer of experience,

— encourage technology transfer in other sectors of

mutual benefit,

— exchange information on monetary matters and the

macro-economic environment,

— reinforce and diversify economic links between them,

— encourage, by means of a favourable climate, the

two-way flow of Community-Sri Lanka trade and
investments,

— promote cooperation in order to develop agriculture,

fisheries, mining, transport and communication,
health, drug abuse control, banking and insurance,
tourism and other services,

— facilitate the establishment of conditions conducive to

job creation,

— encourage close cooperation between their private

sectors,

— promote cooperation between small and
medium-size4 enterprises,

— activate cooperation in the industrial sector, including

agro-industry and industry with a heavy techno ­
logical bias,

— promote cooperation in industrial and urban ecology,

— support Sri Lankan efforts in the field of trade

promotion and market development,

— promote cooperation between education and training

institutions,

— promote scientific and technological cooperation,

— encourage cooperation in the field of privatization in

Sri Lanka,

— cooperate in the field of information and culture .

Cooperation in certain of the abovementioned sectors is
set out in more detail in Articles 5 to 12 of this

Agreement .

23 . 3 . 94 Official Journal of the European Communities No C 86 / 9

4 . The Contracting Parties shall consider, each in
their mutual interests and in accordance with their
respective policies and objectives, the following means to
achieve these aims :

— exchange of information and ideas,

— preparation of studies,

— provision of technical assistance,

— training programmes including vocational training,

— establishment of links between research and training

centres, specialized agencies, business organizations,

— promotion of investment and joint ventures,

— institutional development of public and private
agencies and administrations,

— access to each other 's existing data bases and creation

of new ones,

— workshops and seminars,

Article 6

Private sector

1 . The Contracting Parties agree to promote the
involvement of the private sector in their cooperation
programmes in order to strengthen economic and
industrial cooperation between themselves .

The Contracting Parties shall take measures to :

( a ) encourage the private sectors of both geographical

regions to find effective ways of joint consultations,
results of which could then be transmitted to the

Joint Commission, referred to in Article 20 of this
Agreement, for the required follow-up action ;

( b ) involve the private sectors of the Contracting Parties

in activities developed within the framework of this
Agreement .

2 . The Contracting Parties shall facilitate within the
relevant rules, access to available information and capital
facilities in order to encourage projects and operations
promoting cooperation between firms, such as joint
ventures, sub-contracting transfer of technology,
licences, applied research and franchises .

— exchanges of experts . Article 7

Standards

5 . The Contracting Parties will determine together
and to their mutual advantage the areas and priorities to
be covered by concrete actions of economic cooperation,
in conformity with their long-term objectives .

Article 5

Investment

1 . The Contracting Parties shall encourage an
increase in mutually beneficial investment by establishing
a more favourable climate for private investments
including better conditions for the transfer of capital and
exchange of information on investment opportunities .

2 . Taking into account work done in this area in
relevant international fora, recognizing the bilateral
investment treaties concluded between Sri Lanka and a
number of Member States of the Community, that Sri
Lanka is a Contracting Party to the Multilateral
Investment Guarantee Agency ( MIGA ) Convention, and
a signatory to the International Convention for the
settlement of investment disputes ( Icsid ), the Contracting
Parties will support further agreements on the promotion
and protection of investments between the Member
States of the Community and Sri Lanka on the basis of
the principles of non-discrimination and reciprocity .

3 . The Contracting Parties undertake to encourage
cooperation between their respective financial
institutions .

\

Without prejudice to their international obligations,
within the scope of their responsibilities and in
accordance with their laws, the Contracting Parties shall
take steps to reduce differences in respect of metrology,
standardization and certification by promoting the use of
compatible systems of standards and certification . To
that end, they shall encourage the following in
particular :

— establishing links between experts in order to
facilitate exchanges of information and studies on
metrology, standards, quality control and promotion
and certification,

— encouraging interchange and contact between bodies

and institutions specializing in these fields including
consultations to ensure that standards do not

constitute a barrier to trade,

— promoting measures aimed at achieving mutual
recognition of systems of quality certification,

— developing technical assistance in connection with

metrology, standards and certification, and in
connection with quality promotion programmes,

— providing technical assistance for institutional devel ­

opment to upgrade standards and quality certification
organizations as well as for the setting up of a
national accreditation scheme for   - conformity
assessment in Sri Lanka .

No C 86 / 10 Official Journal of the European Communities 23 . 3 . 94

Article 8

Intellectual property

1 . In so far as their competences, regulations and
policies permit, the Contracting Parties will :

( a ) aim to improve the conditions for adequate and

effective protection and reinforcement of intellectual,
industrial and commercial property rights in
conformity with the highest international standards ;

( b ) cooperate to secure these objectives .

2 . The Contracting Parties agree that they shall avoid
discriminatory treatment in relation to intellectual
property rights and to engage, if necessary, in consul ­
tations if intellectual property problems affecting trading
relations arise .

( c ) the linkage between agriculture and the rural
environment :

( d ) agricultural and fishery research .

Article 11

Tourism

The Contracting Parties agree to cooperate on tourism,
through measures, which will take account of environ ­
mental issues and which include interchange of infor ­
mation, undertaking studies, training and promotion of
investment including joint ventures .

Article 12

Information, culture and communication

Article 9

The Contracting Parties will cooperate in the fields of

Science and technology

1 . The Contracting Parties will, in accordance with
their mutual interest and the aims of their development
strategy in this area, promote scientific and technological
cooperation with a view to :

( a ) fostering the transfer of know-how and stimulating

innovation ;

( b ) disseminating information and expertise in science

and technology ;

( c ) opening up opportunities for future economic,
industrial and trade cooperation .

2 . The Contracting Parties undertake to establish
appropriate procedures to facilitate the greatest possible
degree of participation by their scientists and research
centres in cooperation between them .

Article 10

Agriculture and fisheries

The Contracting Parties agree to promote cooperation in
agriculture, including horticulture and food processing
and in fisheries, including fish processing . To this end in
a spirit of cooperation and goodwill and taking into
account the laws of both Parties on such issues, they
undertake to examine in particular :

( a ) the opportunities for increasing trade in agricultural

and fishery products ;

( b ) health, plant and animal health and environmental

measures to prevent them hindering trade ;

information, culture and communication, both to create
better mutual understanding and to strengthen cultural
ties between them, such as preparatory studies and
technical assistance for the preservation of cultural
heritage .

Article 13

Development cooperation

1 . The Community recognizes Sri Lanka 's need for
development assistance and is prepared to strengthen its
cooperation and enhance its efficiency in order to
contribute to Sri Lanka 's own efforts in achieving
sustainable economic development and social progress of
its people through concrete projects and programmes .
Community support will be in accordance with
Community policies, regulations and the limits of the
financial means available for cooperation .

2 . Projects and programmes will continue to be
targeted towards the poorer sections of the population .
Particular attention will be given to rural development
with participation of the groups to be targeted and,
where appropriate, the involvement of qualified
non-governmental organizations mutually acceptable to
the Contracting Parties . Cooperation in this area will
also cover policies on population and for the promotion
of employment in rural towns, and of the role of women
in development and training and institution building for
the protection and promotion of human rights .

3 . The cooperation will concentrate on mutually
agreed priorities, including povferty alleviation as defined
in Article 14, which will ensure programme efficiency
and sustainability .

23 . 3 . 94 Official Journal of the European Communities No C 86 / 11

Article 14 Article 18

Poverty alleviation Regional cooperation

The Contracting Parties undertake to direct their
cooperation activities, wherever possible, towards alle ­
viation of poverty in Sri Lanka . In this regard the

Community may support under development cooperation
measures launched by the Government of Sri Lanka .

Article 15

Environment

1 . The Contracting Parties recognize that respect for
environmental issues will form an integral part of
economic and development cooperation . Moreover, they
underline the importance of environmental issues and
their will to establish, within the framework of this
Agreement, cooperation in protecting and improving the
environment taking into account the work done in inter ­
national fora .

2 . Particular attention will be paid to :

( a ) the sustainable management of natural eco-systems ;

( b ) protection and conservation of natural forests ;

( c ) the strengthening of forestry institutes ;

( d ) the finding of practical solutions to rural and urban

energy problems ;

( e ) prevention of industrial pollution ;

( f ) protection of the urban environment .

Article 16

Human resource development

The cooperation between the Contracting Parties will
extend to action undertaken within the context of

cooperation or integration agreements with other
countries in the same region, provided that such action is
compatible with those agreements .

Without excluding any area the following could be given
particular consideration :

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

( b ) promotion of inter-regional trade ;

( c ) support for regional institutions and for joint
projects and initiatives established under regional
organizations such as the South Asian Agreement on
Regional Cooperation ( Saarc );

( d ) studies concerning regional links and communi ­
cations .

Article 19

Resources for undertaking cooperation

The Contracting Parties will, within the limits of their

available financial means and within the framework of
their respective procedures and instruments, make
available funds to facilitate the achievement of the aims

set out in this Agreement especially as concerns
economic cooperation .

Concerning development aid, and within the framework
of its programme in favour of Asian and Latin American
( ALA ) countries, the Community will support Sri
Lanka 's development programmes, through direct
concessional transfers, as well as through institutional
and other sources of finance in accordance with the rules
and practices of such European Community institutions .

The Contracting Parties recognize the importance of
human resource development in improving economic concessional and other sources transfers of finance, as well in
development and the living conditions of the disad ­

and practices of such European

vantaged sections of the population . They agree that
human resource development should constitute an
integral part of both economic and development Article 20
cooperation .

Article 17

Drug abuse control

The Contracting Parties affirm their resolve, in
conformity with their respective competences, to increase
the efficiency of policies and measures, to counter the
supply and distribution of narcotics as well as preventing
drug abuse, where necessary by offering technical
assistance, taking into account work done in this
connection by international bodies .

Joint commission

1 . The Contracting Parties agree to maintain the Joint
Commission set up under Article 8 of the Commercial
Cooperation Agreement between the Community and Sri
Lanka of 1975 .

2 . The Joint Commission is in particular required to :

( a ) ensure the proper functioning and implementation of

the Agreement ;

No C 86 / 12 Official Journal of the European Communities 23 . 3 . 94

( b ) make suitable recommendations for promoting the

objectives of the Agreement ;

( c ) establish priorities in relation to the aims of the

Agreement ;

( d ) examine ways and means of enhancing the
cooperation in the areas covered under the
provisions of this Agreement .

3 . The Joint Commission shall be composed of repre ­
sentatives of both Contracting Parties, at an appro ­
priately high level . The Joint Commission shall normally
meet every year, alternately in Brussels and Colombo, on
a date fixed by mutual agreement . Extraordinary
meetings may be convened by agreement between the
Contracting Parties .

expanding the scope of the cooperation, taking into
account the experience gained in its application .

Article 22

Other agreements

1 . Without prejudice to the relevant provisions of the
Treaties establishing the European Communities neither
this Agreement nor any action taken thereunder shall in
any way affect the powers of the Member States of the
Communities to undertake bilateral activities with Sri
Lanka in the framework of economic cooperation or to
conclude, where appropriate, new economic cooperation
agreements with Sri Lanka .

meetings may be convened by agreement between the 2 . Subject to the provisions of paragraph 1 concerning
Contracting Parties . economic cooperation, the provisions of this Agreement

shall replace provisions of Agreements concluded
between Member States of the Communities and Sri
Lanka where such provisions are either incompatible
4 . The Joint Commission may set up specialized with or identical to the provisions of this Agreement .
sub-groups to assist in the performance of its tasks and
to coordinate the formulation and implementation of
projects and programmes within the framework of this
Agreement . Article 23

Facilities

5 . The agenda for meetings of the Joint Commission To facilitate cooperation within the framework of this
shall be determined by agreement between the Agreement, the Sri Lankan authorities will grant to
Contracting Parties . European Community officials and experts the normal

guarantees and facilities necessary for the performance
of their functions . The detailed provisions will be set out
6 . The Contracting Parties agree that it shall be the by way of a separate exchange of letters .
task of the Joint Commission to ensure the proper func ­
tioning of any sectoral agreements concluded or which
may be concluded between the Community and Sri Article 24
Lanka .

7 . Consultations in the fields covered by the
Agreement may be held if any problem arises in the
intervals between the meetings of the Joint Commission .
These consultations shall be dealt with by the specialized
sub-groups according to their responsibilities or be the
subject of ad hoc consultations .

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 the Treaty and, on the other, to the territory of
Sri Lanka .

Article 25

Article 21 Annexes

The Annexes attached to this Agreement shall form an

Future developments The Annexes attached to this
integral part of the Agreement .

1 . The Contracting Parties may, by mutual consent, .
expand this Agreement in order to enhance the level of
cooperation and add to it by means of agreements on
specific sectors or activities . Article 26

Entry into force and renewal

2 . Within the framework of this Agreement, either of This Agreement shall enter into force on the first day of
the Contracting Parties may put forward suggestions for the month following the date on which the Contracting

23 . 3 . 94 Official Journal of the European Communities No C 86 / 13

Parties have notified each other of the completion of the
procedures neicessary for this purpose . Upon entry into
force, it shall replace the Commercial Cooperation
Agreement signed on 22 July 1975 .

This Agreement is concluded for a period of five years .
It shall be automatically renewed on a yearly basis unless
one of the Contracting Parties denounces it six months
before its expiry date .

Article 27

Authentic texts

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

In witness whereof the undersigned plenipotentiaries have signed this Agreement .

For the Council of the European Union For the Government of Sri Lanka

ANNEX 1

Declaration of the Community concerning tariff adjustments

The Community reaffirms its declaration annexed to the Cooperation Agreement signed on 22 July 1975
on the Generalized Scheme of Preferences ( GSP ) autonomously put into force by the European Economic
Community on 1 July 1971 on the basis of resolution 21 ( II ) of the second United Nations Conference on
Trade and Development held in 1968 .

The Community also undertakes to examine proposals or issues related to origin rules raised by Sri Lanka
which aim at enabling Sri Lanka to make best use of the opportunities afforded by the system .

The Community is also willing to organize workshops in Sri Lanka for public and private users of the
system with a view to ensuring maximum use of it .

ANNEX 2

Declarations of the Community and Sri Lanka

1 . In the course of the negotiations on the Cooperation Agreement between the European Community and

Sri Lanka on Partnership and Development, the Contracting Parties declared that the provisions of the
Agreement should be without prejudice to their rights and obligations under the GATT, and that, in

accordance with Article 30 ( 4 ) of the Vienna Convention on the Law of Treaties of 1969, any
subsequent agreements which form part of the final outcome of the Uruguay Round of Multilateral
Trade Negotiations and to which they both become Parties shall prevail in the event of any incon ­
sistency .

2 . The Contracting Parties agree that for the purpose of this Agreement ' intellectual, industrial and

commercial property ' includes in particular protection of copyright ( including computer software ) and
related rights ; trade and service marks ; geographical indications, including indications of origin ;
industrial designs ; patents ; layout designs of integrated circuits as well as protection of undisclosed
information and protection against unfair competition .