Source: EURLEX
Language: en
Format: md

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COMMISSION OF THE EUROPEAN COMMUNITIES

```

C0M(94) 477 f i n a l

B r u s s e l s, 03.11.1994

9 4 / 0249CAVC)

Proposal

for a Council and Commission Decision

**on** the conclusion of the Partnership and Cooperation Agreement

between the European Communities and their Member States

**of the one** **part,** **and the Republic of** **Moldova,** **of** **the** other part

```
             (presented by the Commission)

```

**Explanatory memorandum**

**1.** **The attached proposal for a Council and Commission Decision constitutes the legal**

**instrument for the conclusion of** **the** **Partnership and Cooperation Agreement between**

**the European Communities and their Member States, on the one hand, and the**

**Republic of** **Moldova,** **on the other.**

**2.** **Following the Council's adoption of the negotiating directives on 5 October 1992,**

**negotiations with the Republic of Moldova were held in the course of 1994. After two**

**rounds of negotiations, the Agreement was initialed on 26 July 1994.**

**3.** **The Agreement is a mixed Agreement covering areas for which both the Communities**

**and the Member States are competent, and is concluded for an initial** **period** **of ten**

**years.**

**It establishes a political dialogue. The Agreement covers also trade in goods, labour**

**conditions, establishment and operation of companies, cross-border supply of services,**

**payments and capital, competition, intellectual, industrial and commercial property**

**protection,** **legislative** **cooperation,** **economic cooperation, cultural cooperation and**

**financial cooperation.**

**The Agreement contains a clause which allows it to be suspended, even unilaterally, if**

**it is considered that there has been a breach of the essential elements underlying the**

**Agreement i.e. respect for democracy, human rights and the principles of the market**

**economy.**

**The Agreement sets out an institutional framework for its implementation with a**

**Cooperation Council, a Cooperation** **Committee** **and a Parliamentary Cooperation**

**Committee.**

**The** **Agreement refers to the prospect of a future free trade area.** **In** **1998,**

**circumstances** **wil** **be assessed in order** **to** **see whether negotiations can begin in view of**

**a free trade agreement.**

**Customs cooperation is covered by a separate** **protocol.**

**4.** **The** **Agreement** **will, as far as relations** **between** **the Community and the Republic of**

**Moldova are concerned, replace the Agreement on Trade and Commercial and**

_**4a_**_

**Economie.** **Cooperation** **between the European** **Economic Community and the**

**European Atomic Energy Community, and the USSR, signed on 18 December 1989.**

**5. The procedures of the three Communities (EC, EAEC and ECSC) for signing and**

**concluding the Agreement differ.**

**For the purpose of concluding the Agreement :**

**the** **Council** **will conclude the Agreement, with the assent of the European**

**Parliament,** **on behalf of the European Community in accordance with Articles** **113 and**

**235 and in conjuction with Article 228 (2 and 3,** **second** **sub paragraph) of the EC**

**Treaty by adopting the attached decisions;**

**the Commission will** **conclude** **the Agreement on behalf of the ECSC in**

**accordance with Article 95 of the ECSC, after consulting the Consultative Committee**

**and with the unanimous assent of** **the** **Council;**

**the Commission will conclude the Agreement (on behalf of** **the** **European Atomic**

**Energy** **Community) after the Council has approved it in accordance with the second**

**paragraph of** **Article** **101 of the Euratom Treaty.**

**The conclusion of the Agreement will have to be ratified by all the Member States**

**given the mixed nature of the Agreement.**

**6. In view of the above, the Commission asks the Council to adopt the annexed decision.**

**/H**

**Proposal**

**for a Council and Commission Decision**

**on the conclusion of the Partnership and Cooperation Agreement**

**between the European Communities and their Member States**

**of the one part, and the Republic of Moldova, of the other part**

**(presented to the** **Council by the** **Commission)**

_**AC**_

**COUNCIL AND COMMISSION DECISION**

**r**

**OF..........**

**on the conclusion of the Partnership and Cooperation Agreement**

**between the European Communities and their Member States**

**of the one part, and the Republic of Moldova, of the other part**

**(../.../ECSC,** **EC, EURATOM)**

**THE COUNCIL OF THE EUROPEAN UNION,**

**THE COMMISSION, of the European Communities**

**Having regard to the Treaty establishing the European Coal and Steel** **Commumty,**

**Having regard to the Treaty establishing the European Community, and in particular**

**Articles 113 and 235 in conjunction with Article 228 (2 and 3, second sub** **paragraph)**

**thereof**

**Haying regard to the Treaty establishing the European Atomic Energy Commumty, and in**

**particular the second paragraph of Article 101** **thereof**

**Having regard to the assent of the European Parliament,**

**Whereas, the Partnership and Cooperation Agreement between the European**

**Communities and their Member States, of the one** **part,** **and the Republic of Moldova, of**

**the other part, signed** **, should be approved,**

**Having consulted the Consultative Committee and with** **the** **unanimous agreement of the**

**Council,**

**HAVE DECIDED AS FOLLOWS :**

_**JcH**_

**Article 1**

**The Partnership and Cooperation Agreement between the European Communities and**

**their Member States of the one part, and the Republic of** **Moldova,** **of the other part,**

**together with the Protocol, the exchange of letters and the declarations are hereby**

**approved on** **behalf of the European Commumty, the European Coal and Steel**

**Commumty, and the European Atomic Energy Commumty.**

**These texts are attached to this Decision.**

**Article 2**

**1.** **The position to be adopted by the Commumty in the Cooperation Council shall be**

**determined by the Council, on a proposal** **from** **the** **Commission,** **or, where appropriate,**

**by the** **Commission,** **in each case in accordance with the relevant provisions of the**

**Treaties establishing the European Community, the European Coal** **and** **Steel**

**Commumty and the European Atomic Energy Community.**

**2.** **In** **accordance with Article 72 of the Partnership and Cooperation Agreement, the**

**President of** **the** **Council shall preside over the Cooperation Council and shall present**

**the** **Community's** **position. A representative of** **the** **Commission shall** **préside** **over the**

**Cooperation Committee** **in** **accordance with its rules of** **procedure** **and shall present the**

**Community's position.**

**Article 3**

**The President of the Council shall give the notification provided for in Article 87a of the**

**Agreement on behalf of the European Commumty. The President of** **the** **Commission shall**

**give such notification on behalf of the European Coal and Steel Commumty and the**

**European Atomic Energy Committee.**

**Done at Brussels,**

**^ • e**

**Final act**

**The plenipotentiaries of** **:**

**THE** **KINGDOM** **OF** **BELGIUM,**

**THE** **KINGDOM OF DENMARK,**

**THE REPUBLIC OF GERMANY,**

**THE** **HELLENIC REPUBLIC,**

**THE** **KINGDOM OF** **SPAIN,**

**THE** **FRENCH REPUBLIC,**

**IRELAND,**

**THE ITALIAN REPUBLIC,**

**THE GRAND DUCHY** **OF** **LUXEMBOURG,**

**THE** **KINGDOM** **OF** **THE NETHERLANDS,**

**THE** **PORTUGUESE REPUBLIC,**

**THE** **UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,**

**Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY, the**

**Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the**

**Treaty establishing the EUROPEAN ATOMIC ENERGY** **COMMUNITY,**

**hereinafter referred to as** **"the** **Member States", and** **of**

**the** **EUROPEAN** **COMMUNITY,** **THE** **EUROPEAN** **ATOMIC** **ENERGY**

**COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter**

**referred to as "the Community",**

**of the one part, and**

**the plenipotentiaries of the Republic of** **Moldova,** **"** **. •**

**of the other part,**

**meeting** **.......** **in the year one thousand nine hundred and ninety-four for the signature of**

**the** **Partnership** **and** **Cooperation** **Agreement establishing a** **partnership** **between the**

**European Communities and their Members States, of the one part, and the Repubhc of**

**Moldova,** **of the other part, hereinafter referred to as the Partnership and** **Cooperation**

**Agreement, have adopted the following text** **:**

_**/I**_
**/**

**the Partnership and Cooperation Agreement and the Protocol on mutual assistance in**

**customs** **matters.** **,**

**The plempotentiaries of the Member States and of the Commumty and the**

**plenipotentiaries of the Republic of Moldova have adopted the texts of the Joint**

**declarations listed below and annexed to this Final Act :**

**Joint Declaration concerning Article 3bis of the Agreement**

**Joint Declaration concerning Article** **13** **of the Agreement**

**Joint Declaration concerning Article 14 of the Agreement**

**Joint Declaration concerning Article 23 of the Agreement**

**Joint Declaration concerning Article 24 of the Agreement**

**Joint Declaration concerning the notion of** **"control"** **in Article 25(b) and** **Article** **36 of**
**the Agreement**

**Joint Declaration concerning Article** **38** **of the Agreement**

**Joint Declaration concerning Article 87a of the Agreement**

**The plenipotentiaries of the Member States and of the Commumty and the**

**plenipotentiaries of the** **Repubhc** **of Moldova have also taken note of the following**

**exchange of letters annexed to this Final Act :**

**Exchange of** **letters** **between the Community and the Repubhc of Moldova** **in** **relation**
**to the establishment of companies**

**The plempotentiaries of the Member States and of the Commumty** **and** **the**

**plenipotentiaries of the Repubhc of Moldova have also taken** **note** **of the following**

**exchange of** **letters** **outside the Partnership and Cooperation Agreement and annexed to**

**this Final Act :**

**Exchange of letters on the consequences of enlargement**

**The plenipotentiaries of the Repubhc of Moldova have also taken note of the declarations**

**listed below annexed to this Final Act :**

**Unilateral Declaration by the French Repubhc on PTOM territories**

**10**

_***i**_

**The plenipotentiaries of the Member States and of the Community** **have,** **also taken note of**

**the following declaration outside the Partnership and Cooperation Agreement** **and**

**annexed to this Final Act :**

**Unilateral Declaration by Moldova on the wine sector**

**The plempotentiaries of the Repubhc of Moldova have also taken note of** **the** **following**

**declaration outside the Partnership and Cooperation Agreement and annexed to this Final**

**Act:**

**Unilateral Declaration by the Community concerning technical assistance on GSP**

**Done at** **in the year one thousand nine hundred and**

**ninety four.**

**For the Council and the Commission of the European Communities.**

**For the Republic of Moldova.**

**11**

**PARTNERSHIP AND COOPERATION AGREEMENT BETWEEN** **THE EUROPEAN**

**COMMUNITIES AND** **THEIR** **MEMBER STATES, OF THE ONE PART, AND** **THE**
**REPUBLIC OF** **MOLDOVA,** **OF THE OTHER** **PART.**

**THE KINGDOM OF BELGIUM,**

THE **KINGDOM OF DENMARK,**

THE **FEDERAL REPUBLIC OF GERMANY,**

THE **HELLENIC REPUBLIC,**

THE **KINGDOM OF SPAIN,**

THE **FRENCH REPUBLIC,**

**IRELAND,**

THE **ITALIAN REPUBLIC,** . .

THE GRAND DUCHY OF LUXEMBOURG,

THE **KINGDOM** **OF** **THE NETHERLANDS,**

THE **PORTUGUESE REPUBLIC,**

THE **UNITED KINGDOM OF** **GREAT** **BRITAIN AND NORTHERN IRELAND,**

contracting parties to the Treaty establishing **the European Economic Community, the Treaty**
**establishing the European Coal and Steel Community, and the Treaty establishing the** **European**
**Atomic Energy Commumty,**

hereinafter referred to as "Member States", and

the **EUROPEAN** **ECONOMIC COMMUNITY, the EUROPEAN ATOMIC ENERGY**
**COMMUNITY** **and** **me EUROPEAN** **COAL** **AND STEEL COMMUNITY,**

hereinafter referred to as "the Community",

of the one part,

and

THE REPUBLIC **OF** MOLDOVA

of the other part,

hereinafter referred to as "the Parties",

V
**0 .** _**J?/.**_ **/ *** **> a**

**CONSIDERING the links between the Community, its Member States and the Repubhc of**
**Moldova** **and the common values mat they** **share,** **,**
**RECOGNIZING** **that** **the** **Oxmnumty and** **the Republic of Moldova** **wish** **to strengthen these links**
**and to** **establish** **partnership and cooperation which** **'would** **strengthen and widen** **the** **relations**
**established in the past in particular by the Agreement between the European Economic**
**Commumty and the European Atomic Energy Commumty and the Union of Soviet** **Socialist**
**Republics** **on Trade** **and Commercial and Economic** **Cooperation,** **signed on** **18 December 1989.**

**CONSIDERING the** **commitment** **of the Commumty and its Member States and of the Repubhc**
**of Moldova to strengthening the political and economic freedoms which constitute the very**
**basis of the partnership,**

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

**CONSIDERING the firm commitment of the Commumty and its Member States and of the**
**Republic of Moldova to the full implementation of all principles and provisions contained in the**
**Final Act of the Conference on Security and Cooperation in Europe** **(CSCE),** **the Concluding**
**Documents of** **the** **Madrid and Vienna Follow Up Meetings, the Document of the CSCE Bonn**
**Conference on Economic** **Cooperation,** **the Charter of** **Paris** **for a New Europe and the CSCE**
**Helsinki Document 1992,** **"the** **Challenges of Change",**

**RECOGNIZING in that context that support of** **independence,** **sovereignty** **and** **territorial integrity**
**of the Republic of Moldova will contribute to safeguarding of peace and stability in the region of**
**Central** **and Eastern Europe and on** **the European Continent** **as** **a** **whole,**

**CONFIRMING the attachment of the Community and its Member States and of the Republic of**
**Moldova to the European Energy Charter, and to the Declaration of** **the Lucera** **Conference of**
**April 1993,**

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

**RECOGNIZING the efforts of the Repubhc of Moldova to create political and economic**
**systems, which respect** **the** **rule of law** **and human** **rights,** **including the rights of persons belonging**
**to** **minorities and that the Repubhc of Moldova operates a multi-party system with free and**
**democratic elections,** **and** **provides for economic** **liberalisation,**

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

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

**DESIROUS of establishing and developing regular political** **dialogue** **on bilateral and**
**international issues of mutual interest,**

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

»

BEARING IN MIND the utility of the Agreement in favouring **a** gradual rapprochement between
Moldova and a wider area of cooperation in Europe and neighbouring regions **and** Moldova's
progressive integration into **the** open international trading system,

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

WELCOMING AND RECOGNISING the importance of Moldova's efforts, aimed at transition
of its economy away from a state trading country with centrally planned economy into **a** market

economy,

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

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

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

**DESIROUS of developing cultural cooperation** **and** **improving** **the** **flow of** **information,**

Have **agreed as** follows **:**

**Article 1**

**A Partnership is hereby established between the Community and its Member States of the one**
**part,** **and the Repubhc of Moldova of the other part The objectives of this partnership are:**

**to provide an appropriate** **framework** **for the political dialogue between the Parties**

**allowing the development of political relations,**
**to promote trade and investment and harmonious economic relations between the Parties**

**and so to** **foster** **their sustainable economic** **development,**
**to provide a basis for** **legislative,** **economic,** **social,** **financial,** **and** **cultural** **cooperation,**
**to support efforts of the Repubhc of** **Moldova** **to consolidate its democracy and to develop**

**its** **economy and to complete the transition into a market** **economy.**

**k.**

**TITLE I : GENERAL PRINCIPLES**

**Article 2**

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

**Article 3**

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

**Article 3 bis**

**The Parties undertake to consider, in particular when Moldova has further advanced in the**
**process of economic** **reform,** **developments of the relevant Tides of this** **Agreement,** **in particular**
**Title III and Article** **37a,** **with a view to the establishment of a** **free** **trade area between them. The**
**Cooperation Council may make recommendations on** **such** **developments to** **the** **Parties. Such**
**developments** **shall only be put into effect by virtue of an agreement between the Parties in**
**accordance with their respective** **procedures.** **The Parties shall consult** **each** **other in the year** **1998**
**as to whether circumstances, and in particular Moldova's advances in market oriented economic**
**reforms and the economic conditions prevailing there at that time, allow the beginning of**
**negotiations** **on the** **establishment of a** **free** **trade** **area.**

**Article 3 ter**

**The Parties undertake to examine together, by mutual** **consent,** **amendments** **which it may be**
**appropriate to make to any part of** **the** **Agreement in view of changes in** **circumstances,** **and in**
**particular of the situation arising** **from** **the Repubhc of Moldova's accession to GATT. The first**
**examination shall take place three years after the** **entry,** **into force of the Agreement or when the**
**Republic of Moldova becomes a Contracting** **Party** **of** **GATT,** **whichever is earlier.**

**TITLE II : POLITICAL DIALOGUE**

**Article 4**

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

**shall strengthen the links of the Republic of Moldova with the Commumty, and thus with**
**the community of democratic nations. The economic convergence achieved through this**

**Agreement will** **lead** **to more intense political relations;**
**shall bring about an increasing convergence of positions on international issues of mutual**
**concern,** **thus** **increasing security** **and** **stability;**
**shall foresee that** **the** **Parties endeavour** **to co-operate** **on matters pertaining to the strengthening of**
**stability and security in Europe, the observance of** **the** **principles of democracy, the respect and**
**promotion of human rights, particularly those of minorities and shall hold consultations, if**
**necessary,** **on** **the relevant** **matters.**

**Article 5**

**At ministerial** **level,** **political dialogue shall** **take** **place within the Cooperation council established**
**in Article** **71 and on** **other occasions** **by** **mutual agreement**

**Article 6**

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

**regular meetings at the level of senior officials between representatives of the Repubhc of**
**Moldova,** **and representatives** **of** **the Commumty;**
**taking** **full** **advantage of diplomatic channels between the parties including appropriate**
**contacts in the bilateral as well as the multilateral field, such as the United Nations, CSCE**
**meetings** **and** **elsewhere;**
**exchanging information on matters of mutual interest concerning pohtical cooperation in**
**Europe;**
**any other means,** **which would-contribute** **to consolidating and developing this political**
**dialogue.**

**Article 7**

**Pohtical** **dialogue at parliamentary level shall take place within the framework of the**
**Parliamentary** **Cooperation** **Committee established** **in** **Article** **76.**

###### **_J_**

**TITLE III; TRADE IN GOODS**

**»**

**Article 8**

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

**respect of.**

**customs duties and charges applied to imports and exports, including the method of**
**collecting such duties and charges,**
**provisions relating to customs clearance,** **transit,** **warehouses** **and** **transhipment,**
**taxes and other internal charges of** **any** **kind applied directly or indirectly to imported**

**goods,**
**methods** **of** **payment** **and the transfer of such** **payments,**
**the rules relating to the sale,** **purchase,** **transport,** **distribution,** **and use of goods on the**

**domestic market**

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

**(a)** **advantages granted with the aim of creating a customs union or a free-trade area or**
**pursuant** **to** **the creation** **of** **such a** **union or** **area;**

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

**(c)** **advantages accorded to adjacent countries in order to facilitate** **frontier** **traffic.**

**3.** **The provisions of paragraph 1 and Article 9 paragraph 2 shall not apply,** **during** **a**
**transitional period** **expiring** **on the date of the Repubhc of** **Moldova acceding to GATT** **or** **on**
**31/12/1998,** **whichever is** **earlier,** **to advantages defined** **in** **Annex I granted by the Repubhc of**
**Moldova to** **other** **independent** **states** **as** **from** **the** **day** **preceding** **the** **date of entry into force of**
**the Agreement**

**Article 9**

**• • • - • •** **• « •** **•** **' •** **/**

**1.** **The parties agree that the principle of free transit of goods is an essential** **condition** **of**
**attaining the** **objectives** **of** **this Agreement**

**2.** **In this connection each Party shall provide for unrestricted transit via or through its**
**territory of goods originating** **in** **the customs territory or destined** **for** **the customs territory of**
**the other Party.**

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

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

_**i,**_

_**"•^i**_

**Article 10**

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

**Article 11**

**Goods originating in Moldova and the Community respectively shall be imported into the**
**Community and Moldova respectively free of quantitative restrictions without prejudice to**
**Articles 13, 16, 17, to the provisions of annex II of this** **Agreement,** **and to the provisions of**
**Articles** **77,** **81,244,249 and** **280 of the Acts of Accession of Spain** **and** **Portugal to the European**
**Community.**

**Article 11 bis**

**1.** **The** **products** **of** **the** **territory of one Party imported into the territory of the other Party shall**
**not be** **subject,** **directly or** **indirectly,** **to** **internal taxes or other internal charges of any kind in**
**excess of those** **applied,** **directly or indirectly, to like domestic products.**

**2.** **Moreover, these products shall be accorded treatment no less** **favourable** **than that accorded**
**to like products of national origin in respect of all laws, regulations and requirements**
**affecting their internal sale, offering for** **sale,** **purchase,** **transportation,** **distribution or** **use.**
**The provision of this paragraph shall not** **prévent** **the application of differential internal**
**transportation charges which are based exclusively on the economic operation of the means**
**of transport and not on the** **nationality** **of the product**

**Article 11 ter**

**The following Articles of the GATT shall be applicable mutatis mutandis between the two**
**Parties.**

**(i) Article** **VII,** **paragraphs** **1,2,3,4a,** **4b,** **4d,** **5;**

**(ii)** **Article** **VIII;**

**(hi) Article** **IX;**

**(iv)** **Article** **X.**

**Article 12**

**Goods shall be traded between** **the** **Parties at market-related prices.**

_**4**_

Article 13

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

2. Before taking any measures, or in cases to which paragraph 4 applies as soon as possible
thereatter, the Community or the Republic of Moldova as the case may be shall supply the
Cooperation Committee with all relevant information with a view to seeking a solution
acceptable to both Parties.

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

4. In critical circumstances where delay would cause damage difficult to repair, the Parties
may take the measures before the consultations, on the condition that consultations shall be
offered immediately after taking such action.

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

J5"""S_z'-f_
_**M**_

**> - •** **-1"**

**Article 14**

**Nothing in this** **Title,** **and in Article 13 in particular shall** **prejudice** **or affect in any way the**
**taking,** **by** **either** **Party,** **of** **anti-dumping** **or countervailing measures in accordance with Article VI**
**of the GATT, the Agreement on implementation of Article VI of** **the** **GATT, the Agreement on**
**interpretation and application of Articles** **VI,** **XVI and** **XXHI** **of the GATT or related internal**
**legislation.**

**In respect of** **anti-dumping** **or subsidies investigations, each Party agrees to examine submissions**
**by the other Party and to inform the interested parties concerned of the essential facts and**
**considerations on the basis of which a final decision is to be made. Before definitive anti-**
**dumping and countervailing duties are imposed, the Parties shall do the utmost to bring about a**
**constructive** **solution** **to the problem.**

**Article 15**

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

**Article 16**

**This Title III shall not apply to trade in textile products falling under chapters 50 to 63 of the**
**Combined Nomenclature. Trade in these products shall be governed by a separate agreement,**
**initialed on** **14th** **May 1993 and applied provisionally since** **1st January** **1993.**

**Article 17**

**Trade in products covered by the Treaty establishing** **the European** **Coal and Steel**
**Community shall be governed by** **the provisions** **of this Title** **HI,** **with the** **exception of**
**Article 11.**

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

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

**Article 18**

**Trade in nuclear items will be conducted in accordance** **with.the** **provisions of the Treat**
**establishing** **the** **European** **Atomic Energy** **Community.** **T.P** **wta/»,)©^** _**f**_ **-tr^cCj^** **•**.** **AWUC«A**
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**TITLE** **IV:** **PROVISIONS AFFECTING BUSINESS** **AND** **INVESTMENT**

**Chapter I: Labour conditions**

**Article 19**

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

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

**Article 19 bis**

**Coordination of Social Security**

**The Parties shall conclude agreements in** **order:**

**(i)** **to** **adopt,** **subject to the conditions and modalities applicable in each Member** **State,,** **the**
**provisions necessary for the coordination of Social Security systems for workers of**
**Moldovan nationality, legally employed in. the territory of a Member State.** **These**
**provisions will in particular ensure that**

**-** **all periods of** **insurance,** **employment or residence completed by such workers in the**
**various Member States shall be** **added** **together for the purpose of pensions in respect of old**
**age,** **invalidity** **and death and** **for** **the purpose** **of medical care for** **such** **workers;**

**any pensions in respect of** **old** **age,** **death,** **industrial accident or occupational disease,**
**or of invahdity resulting** **therefrom,** **with the. exception of the special** **non-contributory**
**benefits, shall be freely transferable at the rate applied by virtue of** **the** **law of the debtor**
**Member state or states;**

**(ii) to adopt, subject to the conditions and modalities applicable in Moldova, the provisions**
**necessary** **to** **accord to workers who** **are** **nationals of a Member State** **and** **legally employed in**
**Moldova,** **treatment similar to that specified** **in** **the second** **indent** **of paragraph (i).**

**Article 19 ter**

**The measures to be taken in accordance with Article 19 bis shall not affect any rights or**
**obligations arising** **from** **bilateral agreements linking Moldova** **and the** **Member States where** **those**
**agreements provide for more favourable treatment of nationals of Moldova or of the Member**
**States.**

**Article 20**

**The Cooperation Council shall examine which joint efforts can be made to control illegal**
**<** **irnmigration,** **taking into** **account the principle and** **practice of readmission.**

**10**

**->**

**Article 21**

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

**Article 22**

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

**Chapter II: Conditions** **affecting** **the establishment and operation of companies**

**Article 23**

**1.** **a)** **The Community and its Member States shall grant for the establishment of Moldovan**

**companies in their territories treatment no less favourable than that accorded to**
**companies of any third country,** **and** **this in conformity with their legislation** **and**
**regulations.**

**b)** **Without prejudice to the reservations listed in Annex** **IV,** **the Community and its Member**
**States shall** **grant** **to subsidiaries of Moldovan companies established in their territories a**
**treatment no less favourable** **than** **that granted to any Commumty companies, in respect of**
**their** **operation,** **and this in conformity with their legislation** **and** **regulations.**

**c)** **The Community and its Member States shall grant to branches of** **Moldovan** **companies**
**established in their territories a treatment no less favourable than that accorded to**

**branches of companies of any third country, in respect of their** **operation,** **and this in**
**conforinity with their legislation** **and** **regulations.**

**2.** **a)** **Without prejudice to the reservations listed** **in** **Annex V,** **Moldova** **shall grant for the**

**establishment** **of Community companies in its territory, a treatment no less favourable**
**than that accorded to its own** **companies or** **to companies of any third country whichever**
**is** **the** **better,** **and** **this** **in** **conformity** **with its legislation and** **regulations.**

**b)** **Moldova shall grant to subsidiaries and branches of Commumty** **companies,** **established**
**in its territory, treatment no less favourable** **than** **that accorded to its own companies or**
**branches respectively or to companies or branches of any third country respectively,**
**whichever is the better, in respect of** **their** **operations,** **and this in conformity with its**
**legislation and regulations.**

**3.** **The** **provisions** **of paragraphs 1 and 2 cannot be used so as to circumvent a Party's**

**legislation and regulations applicable to access to specific sectors or activities by**
**subsidiaries of companies of the other Party established in the** **territory** **of such first Party.**

**The treatment referred to in paragraph** **1** **and 2 shall benefit companies established in the**
**Community and Moldova respectively at the date of entry into force of this Agreement**
**and companies established after** **that** **date once they** **are** **established.**

**11**

_**4**_

**Article 24**

**1.** **The provisions of Article 23 shall not apply to air** **transport,*** **inland waterways transport and**
**maritime** **transport,** **without prejudice to Ac** **provisions** **of** **Article 89.** **,**

**2.** **However, in respect of activities undertaken by shipping agencies for the provision of**
**international** **maritime** **transport services, including intermodal activities involving a sea leg,**
**each Party shall permit to the companies of** **the** **other Party their commercial presence in its**
**territory in the form of subsidiaries or branches, under conditions of establishment and**
**operation no less favourable than those accorded to its own companies or to subsidiaries or**
**branches of companies of any** **third** **country, whichever** **are** **the better.**

**Such activities include, but are not limited** **to:**

**(a) marketing and sales of maritime transport and related services through direct contact with**
**customers,** **from** **quotation to invoicing, whether these services are operated or** **offered** **by the**
**service** **supplier** **itself or by service** **suppliers** **with which the service seller has established**
**standing business arrangements;**
**(b) purchase** **and** **use,** **on their own account** **or on** **behalf of their customers (and the resale to their**
**customers) of any transport and related services, including** **inward** **transport services by any**
**mode, particularly inland waterways, road and rail, necessary for the supply of** **an** **integrated**
**service;**
**(c) preparation of documentation concerning transport documents, customs documents, or other**
**documents** **related to the origin and character of the goods** **transported;**
**(d) provision of business information of any** **means,** **including computerised information systems**
**and electronic data interchange (subject to any** **nondiscriminatory** **restrictions concerning**
**telecommunications);**
**(e) setting** **up** **of any business** **arrangement,** **including participation** **in the** **company's stock and the**
**appointment of personnel recruited locally (or, in the case of foreign personnel, subject to the**
**relevant provisions of this Agreement),** **with any** **locally established shipping agency;**
**(f) acting on behalf of the companies, organising** **the** **call of the ship or taking over cargoes when**
**required.**

**Article 25**

**For** **the purposes of this Agreement:**

**a)** **A** **"Community** **company"** **or a** **"Moldovan** **company"** **respectively shall mean a company set**
**up in accordance with the laws of a Member State or of Moldova respectively and having its**
**registered office or central administration** **or** **principal place of business in the territory of the**
**. Community or Moldova respectively. However, should the company, set up in accordance**
**with the laws of a Member State or Moldova respectively, have only its** **registered** **office in**
**the territory of the Community or Moldova respectively, the company shall be considered a**
**Community or Moldovan company respectively if its operations possess a real and**
**continuous** **link with the** **economy of** **one** **of** **the** **Member States or Moldova respectively.**
**b)** **"Subsidiary"** **of a company shall mean a company which is effectively controlled by the first**

**company.**
**. c)** **"Branch"** **of a company shall** **mean** **a** **place** **of business not having legal personality** **which** **has**
**the appearance of permanency, such as the extension of a parent body, has** **a.** **management**
**and is materially equipped to negotiate business with** **third** **parties so that the latter, although**
**knowing that there will if necessary be a legal link with the parent body, the head office of**

**12**

**which is** **abroad,** **do not have to deal directly with such parent body but may transact**
**business at the place of business constituting the** **extension.**
**d)** **"Establishment"** **shall** **mean the right** **of Community or Moldovan companies as referred to in**
**Article 25 a) to take up economic activities by means of** **the** **setting up of subsidiaries and'**
**branches** **in** **Moldova** **or** **in** **the** **Community respectively.**
**e)** **"Operation"** **shall mean the pursuit of economic** **activities.**
**f)** **"Economic** **activities" shall mean activities of an** **industrial,.commercial** **and professional**
**character.**

**(g) With regard to international maritime** **transport,** **including intermodal operations involving a**
**sea** **leg,** **shall also be beneficiaries of** **the** **provisions of this Chapter and Chapter** **III,** **nationals**
**of the Member States or of Moldova established outside the Community or Moldova**
**respectively, and shipping companies established outside the Community or Moldova and**
**controlled by nationals of a Member State or Moldovan nationals respectively, if their**
**vessels are registered in that Member State or in Moldova respectively in accordance with**
**their respective legislations.**

**Article 26**

**1.** **Notwithstanding any other provisions of the** **Agreement,** **a** **Parry** **shall not be prevented from**
**taking measures for prudential reasons, including for the protection of investors, depositors,**
**policy** **holders** **or persons to** **whom** **a** **fiduciary** **duty is owed by a** **financial** **service supplier, or**
**to ensure the integrity and stability of** **the** **financial system. Where such measures do not**
**conform with the** **provisions of** **the** **Agreement,** **they shall not be used as a means of avoiding**
**the obligations of a** **Party under the** **Agreement**

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

**Article** **27**

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

**Article 28**

**1.** **Notwithstanding the provisions of Chapter I of this** **Title,** **a Community company or a**
**Moldovan company established in the territory of Moldova or the Community respectively**
**shall** **be** **entitled to employ, or have employed by one of its subsidiaries or branches, in**
**accordance with the legislation in** **force** **in the host country of** **establishment,** **in the territory**
**of Moldova and the Community respectively, employees who are nationals of Community .**
**Member States** **and** **Moldova respectively, provided that such employees** **are** **key personnel as**
**defined** **in paragraph** **2 of this** **Article,** **and mat** **they are employed exclusively by companies,**
**subsidiaries or branches. The residence and work permits of such employees shall only**
**cover** **the period** **of such employment**

**2.** **Key personnel of** **the** **above mentioned companies herein referred to as "organisations" are**
**"intra-corporate** **transferees"** **as defined in (c) of** **this** **Article in the following categories,**

**13**

**provided that the organisation is a juridical person and that the persons concerned have been**
**employed by it or have been partners in ft** **(other than as** **majority shareholders), for at least**
**the year** **immediately** **preceding such** **movement:** **'**

**(a) Persons** **working in a senior position with an** **organisation,** **who primarily direct the**
**management of the** **establishment,** **receiving general supervision or direction** **principally.**
**from** **the board** **of directors or stockholders of the business or their** **equivalent,** **including:**

**- directing** **the** **establishment** **or** **a department or** **sub-division** **of the** **establishment;**

**- supervising and** **.controlling** **the work of other supervisory, professional or managerial**
**employees;**

**-**
**having** **the authority personally to hire and fire or recommend hiring, firing or other**
**personnel actions.**
**(b)** **Persons working within an organisation who possess uncommon knowledge essential to**
**the establishment's service, research** **equipment,** **techniques or management** **The**
**assessment of such knowledge may** **reflect,** **apart from knowledge specific to the**
**establishment,** **a high level of qualification referring to a type of work or trade requiring**
**specific technical knowledge, including** **membership** **of an accredited profession.**
**(c)An** **"intra-corporate** **transferee" is defined as a natural person working within an**
**organisation** **in the territory** **of a Party, and being temporarily transferred in the context of**
**pursuit of economic activities in the territory of the other Party;** **the** **organisation**
**concerned must have its principal place of business in the territory of a Party** **and** **the**
**transfer be to an establishment** **(branch,** **subsidiary) of that** **organisation,** **effectively**
**pursuing** **like** **economic activities** **in the territory of theMother** **Party. .**

**Article 30**

**1.** **The Parties shall use their best endeavours to avoid taking any measures or** **actions which**
**render the conditions for the establishment and operation of** **each other's** **companies more**
**restrictive than the situation** **existing** **on the day preceding the date of signature of the**
**Agreement**

**2.** **The provisions of this Article are without prejudice to those of Article 36 (a) : the** **situations**
**covered by such Article 36 (a) shall be solely governed by its provisions to the exclusion of**
**any other.**

**3.** **Acting in the spirit of partnership and cooperation and in light of provisions contained in**
**Article 39, the Government of Moldova shall inform** **the** **Community of its intentions to**
**submit new legislation or adopt new regulations which may render the conditions for the**
**establishment or operation in Moldova of subsidiaries and branches of Community**
**companies more restrictive than the situation existing on the day preceding the date of**
**signature of the Agreement The Community may request Moldova to communicate the**
**drafts of such legislation or regulations** **and** **to enter into consultations** **about** **those drafts.**

**4.** **Where new legislation or regulations introduced in Moldova would result in rendering the**
**conditions for establishment of Community companies into its territory and for the operation**
**of subsidiaries and** **branches** _**t**_ **of Community companies established in Moldova more**
**restrictive than the situation existing on the day of signature of the** **Agreement,** **such**
**respective legislation or regulations shall** **not** **apply** **during three years** **following the entry into**
**force** **of the relevant act to** **those** **subsidiaries** **and** **branches already established in Moldova at**
**the time of entry into force of the relevant act.**

**14**

_**J**_

**Chapter HI: Cross-border supply of services between**
**the Community and** **Moldqya**

**Article 31**

**1.** **The Parties undertake in accordance** **with the** **provisions of this** **Chapter** **to take the necessary**
**steps to allow progressively the** **cross-border** **supply of services by Community or Moldovan**
**companies which are established in a Party other than that of the person for whom the**
**services are** **intended,** **taking into account the development of the services sectors in the**
**Parties.**

**2.** **The Cooperation Council shall make recommendations for the implementation of** **paragraph**
**T of this Article.**

**Article 32**

**The Parties shall cooperate** **with** **the aim of developing a** **market-oriented** **service sector in**
**Moldova.**

**Article 33**

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

**a)** **The above provision does not prejudice the rights** **and** **obligations arising from the**
**United Nations Code of Conduct for Liner** **Conferences,** **as applicable to one or other**
**Contracting Party to the present Agreement** **Non-conference** **lines** **will** **be free to**
**operate in competition with a conference as long as they adhere to the principle of fair**
**competition on a commercial basis.**

**b)** **The Parties affirm their commitment to a** **freely** **competitive** **environment** **as being an**
**essential** **feature** **of** **the dry** **and liquid bulk** **trade.**

**2.** **In applying** **the** **principles of paragraph** **1,** **the** **Parties** **shall:**

**a)** **not apply, as from entry into force of this** **agreement,** **any cargo sharing provisions of**
**bilateral agreements between any Member State of the Community and the former**
**Soviet Union;**

**b)** **not introduce cargo sharing clauses in future bilateral agreements with third** **countries,**
**.** **other than** **in** **those exceptional circumstances where liner shipping** **companies** **from one**

**or other Party to the present agreement would not** **otherwise have** **an effective**
**opportunity to ply for** **trade** **to** **and** **from** **the third** **country** **concerned;**

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

**d)** **abolish,** **upon** **entry** **into force of mis** **Agreement,** **all** **unilateral measures,**
**adiTiinistrative,** **technical and** **other** **obstacles which could have restrictive or**
**discriminatory effects on the** **free** **supply of** **services in** **international maritime transport**

**Each Party shall** **grant,** **inter alia, no less favourable treatment for the ships operated**

**15**

by nationals or companies of the other party, than that accorded to a Party's own ships
with regard to access to ports open to international trade, the use of infrastructure and
auxiliary maritime services of the ports, as well as related fees and charges, customs
facilities and the assignment of berths and facilities for loading and unloading. .

Nationals and companies of the Community providing international-maritime transport
services shall be free to provide international sea-river services in the inland waterways of
Moldova and vice versa..

Article 33 bis

With a view to assuring a coordinated development of transport between the Parties, adapted to
their commercial needs, the conditions of mutual market access and provision of services in
transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with
by specific agreements where appropriate negotiated between the Parties as defined in Article 85
after entry into force of this Agreement.

Chapter IV: General Provisions

Article 34

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

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

Article 35

For the purpose of this Title IV, nothing in this Agreement shall prevent the Parties from
applying their laws and'regulations regarding entry and stay, work, labour conditions and
establishment of natural persons and supply of services, provided that - in so doing - they do not
apply them in a manner as to nullify or impair the benefits accruing to any Party under the terms
of a specific provision of the Agreement The above provision does not prejudice the application
of Article 34.

Article 36

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

Article 36a

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

16

**/**

**Article 36b**

**For the purposes of Chapters** **H,** **HI and IV of this Title, no account** **shall** **be taken of treatment**
**accorded by the Community, its Member States or Moldova pursuant to commitments entered**
**into** **in** **economic integration agreements in accordance with the prmciples of Article V of the**
**GATS.**

**Article 36c**

**1.** **The Most Favoured Nation treatment granted in accordance** **with the** **provisions of this Title**
**shall not apply to the tax advantages which the Parties are providing or will provide in the**
**future** **on the** **basis of agreements to avoid double** **taxation,** **or** **other tax** **arrangements.**

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

**3.** **Nothing in this Title shall be construed to prevent Member States or Moldova from**
**distinguishing,** **in the** **application of the relevant provisions of their fiscal** **legislation,** **between**
**taxpayers** **who are** **not in identical situations,** **in** **particular** **as regards** **their place of residence.**

**Article 36d**

**Without** **prejudice to** **Article 28, no provision of Chapters II,** **in** **and IV hereof shall be interpreted**
**as giving** **the** **right** **to:**

**- nationals** **of** **the** **Member States or of Moldova respectively to enter, or stay in, the territory of**
**Moldova** **or the Community respectively in any capacity whatsoever, and in** **particular,** **as a**
**shareholder** **or partner** **in a company or manager** **or** **employed thereof or supplier or recipient of**
**services;**

**-**
**Community subsidiaries or branches of Moldovan companies to employ or have employed in**
**the territory of the Community** **nationals** **of** **Moldova;** **»**

**-**
**Moldovan subsidiaries or branches of Community** **companies** **to employ or have employed in**
**the territory of Moldova nationals of the Member** **States;**

**-**
**Moldovan companies or Community subsidiaries or branches of Moldovan companies to**
**supply Moldovan persons to act for and under the control of other** **persons** **by temporary**
**employment** **contracts;**

**-**
**Community companies or Moldovan subsidiaries or branches of Community companies to**
**supply workers who are nationals of the Member States by temporary employment contracts.**

**17**

TITLE V: CURRENT PAYMENTS AND CAPITAL

Article 37

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

2. With regard to transactions on the capital account of balance of payments, from entry into
force of the Agreement, the free movement of capital relating to direct investments made
in companies formed in accordance with the laws of the host country and investments
made in accordance with the provisions of Chapter II of Title IV, and the liquidation
or repatriation of these investments and of any profit stemming therefrom, shall be ensured.

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

4. The Parties shall consult each other with a view to facilitate the movement of forms of

capital other than those referred to in paragraph 2 between the Community and the Republic
of Moldova, in order to promote the objectives of the present Agreement

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

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

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

18

**v***

**TITLE VI:**

**COMPETITION.** **INTELLECTUAL,** **INDUSTRIAL AND COMMERCIAL**
**PROPERTY** **PROTECTION AND** **LEGISLATIVE COOPERATION**

**Article 37a**

**1.** **The parties agree to work to remedy or remove through the application of their competition**
**laws or otherwise, restrictions on competition by enterprises or caused by State intervention**
**insofar as they may affect** **trade** **between** **the** **Community** **and the** **Moldova.**

**2.** **In** **order** **to attain the objectives mentioned** **in** **paragraph 1:**

**2.1 The Parties shall ensure that they have and enforce laws addressing restrictions on**
**competition by enterprises within their jurisdiction.**

**2.2.** **The Parties shall** **refrain** **from granting State aids** **favouring** **certain undertakings or the**
**production** **of goods other than primary products as defined in the General Agreement on**
**Tariffs and Trade, or the provision of services, which distort or threaten to distort**
**competition** **insofar** **as** **they affect trade between the Community** **and** **the** **Moldova.**

**2.3 Upon request by one Party, the other Party shall provide information on its aid schemes**
**or on particular individual cases of State** **aid.** **No information needs to be provided which is**
**covered by legislative requirements of** **the Parties** **on professional or commercial secrets.**

**2.4 In the case of State monopolies of a commercial** **character,** **the Parties declare their**
**readiness,** **as from the fourth year from the date of** **entry** **into force of** **their** **Agreement,** **to**
**ensure that there is no discrimination between nationals of the Parties regarding the**
**conditions under which goods are procured** **or** **marketed.**

**2.5 In** **the case** **of public undertakings or undertakings to which Member States of the**
**European Union or the Moldova grant exclusive** **rights,** **the** **Parties declare their readiness, as**
**from the fourth year** **from** **the date of entry into force of this** **Agreement,** **to ensure that there**
**is neither enacted nor maintained any measure distorting trade between the Community and**
**the Moldova to an extent contrary to the** **Parties'** **respective interests. This provision** **shall-**
**not obstruct the performance, in law or** **fact,** **of the particular tasks assigned to such**
**undertakings.**

**2.6 The period defined in paragraphs 2.4 and 2.5 may be extended by** **agreement** **of the**
**Parties.**

**3.** **Consultations may take place within the Cooperation Committee at the request of the**
**Community or Moldova on the restrictions or distortions of competition referred to in**
**paragraphs 1 and 2 and on the enforcement of their competition rules, subject to limitations**
**imposed by laws regarding** **disclosure** **of information, confidentiality and business secrecy.**
**Consultations may** **also** **comprise questions** **on the** **interpretation of paragraphs** **1** **and** **2.**

_**t**_ _**-**_ _**.**_

**4.** **The Parties with experience in applying competition rules shall give full consideration to**
**providing other Parties, upon request and within available resources, technical assistance for**
**the development** **and** **implementation of competition** **rules.**

**5. The above provisions** **in** **no way affect** **the** **Parties'** **rights** **to apply adequate measures, notably**
**those** **referred** **to in Article 14, in order to** **address** **distortions of trade in goods or services.**

**19**

**./**

**Article 38**

**Pursuant to the provisions of this Article and of Annex** **III,** **Moldova shall continue to**
**improve the protection of intellectual, industrial and commercial property** **rights** **in order to**
**provide, by the end of the** **fifth** **year after** **the** **entry into force of the Agreement for a level of.**
**protection similar to that existing in the Community, including effective means of enforcing**
**such rights.**

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

**Article 39**

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

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

**3.** **The Commumty shall provide Moldova with technical assistance as appropriate for the**
**implementation of these** **measures,** **which may** **include** **i.e.** **:**

**the exchange of experts;**

**the provision of early information especially on relevant legislation;**

**organization of seminars;**

**training activities;**

**aid.for translation of** **Commumty legislation** **in the relevant** **sectors.**

**20**

**TITLE VU: ECONOMIC COOPERATION**

**Article 41**

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

**2.** **Policies and other measures will be designed to bring about economic and social reforms and**
**restructuring of the economic system in the Republic of Moldova and will be** **guided** **by the**
**requirements of sustainability and harmonious social** **development;** **they will also** **fully**
**incorporate environmental considerations.**

**3.** **To this** **end** **the cooperation will concentrate on industrial** **cooperation,** **investment promotion**
**and** **protection,** **public** **procurement,** **standards and conformity** **assessment,** **mining and raw**
**materials,** **science** **and** **technology, education and** **training,** **agriculture and the** **agro-industrial**
**sector, energy,** **environment,** **transport,** **telecommunications, financial services, money**
**laundering,** **monetary policy, regional** **development,** **social** **cooperation,** **tourism,** **small and**
**medium sized entreprises, information and** **communication,** **consumer** **protection,** **customs,**
**statistical** **cooperation,** **economics** **and** **drugs.**

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

**5.** **Where appropriate, economic cooperation and other forms of cooperation provided for in**
**this Agreement** **may** **be supported by technical assistance from the Community, taking**
**into account the** **Community's** **relevant Council** **regulation** **applicable to technical assistance**

**- in the Independent States, the priorities agreed upon in the indicative programme related to**
**European Community technical assistance to the Republic of Moldova and its established**
**co-ordination and** **implementation** **procedures.**

**6. . The Cooperation Council shall make recommendations as to the development of cooperation**

**in fields identified** **in paragraph** **3 of** **this** **Article.**

**Article 42**

**Industrial** **cooperation**

**1.** **Cooperation shall aim at promoting** **the** **following in particular**

**the** **development** **of business links between economic operators of both sides, e.g. in view of**

**the transfer of technologies** **and** **know-how;**

**Community participation in the Republic of Moldova's efforts to restructure and technically**
**upgrade its industry;**
**the improvement of** **management;**
**the development of** **appropriate** **commercial rules and practices, including product**

**marketing;**
**environmental protection.**
**adaptation of the structure of industrial production to the standards of an advanced market**

**economy;**

**21**

**-/'**

**the conversion** **of** **the military-industrial complex**

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

**Article 43**

**Investment promotion and protection**

**1.** **. Bearing in mind the respective powers and competences of the Community and the** **Member**

**States, cooperation shall** **aim** **to establish a favourable climate for** **investment,** **both domestic**
**and** **foreign,** **especially through better conditions for investment** **protection,** **the transfer of**
**capital** **and** **the exchange of information** **on** **investment opportunities.**

**2.** **The particular** **aims** **of cooperation shall be:**

**-** **the** **conclusion,** **where appropriate, between the Member States** **and the** **Republic of**
**Moldova,** **of agreements for the** **promotion and** **protection of** **investment;**

**- the** **conclusion,** **where appropriate,** **between the** **Member States and the Republic of**
**Moldova,** **of agreements to avoid** **double** **taxation;**

**- the creation of favourable conditions for** **attracting** **foreign investments into the**
**Moldovan** **economy;**

**- to establish stable** **and** **adequate business law** **and** **conditions,** **and** **to exchange**
**information** **on** **laws,** **regulations** **and administrative** **practices in the field of**
**.investment;**

**-** **to exchange information** **on** **investment** **opportunities in the** **form of** **inter** **alia trade**
**fairs,** **exhibitions,** **trade** **weeks** **and other** **events.**

**Article 44**

**Public** **Procurement**

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

**Article 45**

**Cooperation in the field of standards and conformity assessment**

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

**22**

**2.** **To this** **end** **they shall** **seek:**

**to promote appropriate cooperation with organisations and institutions specialised in these**

**fields;**
**to promote the use of Commumty technical regulations and** **thé** **application of European**

**standards and** **conformity assessment** **procedures;**
**to permit the sharing of experience and technical information in the field of quality**

**management.**

**Article 46**

**Mining and raw materials**

**1.** **The** **Parties shaU aim at mcreasmgmvestment and trade m**

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

**-exchange of information on** **the** **developments in the mining and non-ferrous** **metals**

**sectors,**
**the establishment of a legal** **framework** **for** **cooperation,**
**trade** **matters,**
**the development of legislative and other measures in the field of environmental**

**protection**
**training**

**6afety** **in the** **mining industry**

**Article 47**

**Cooperation in science and technology**

**i. The Parties shall promote** **cooperation in** **civil scientific research and technological**

**development (RTD)** **on** **the basis of mutual benefit** **and,** **taking** **into** **account** **the** **availability** **of**
**resources, adequate access to their respective programmes** **and** **subject to appropriate levels of**
**effective protection of** **intellectual,** **industrial** **and** **commercial property rights** **(IPR).**

**2.** **Science** **and** **technology** **cooperation shall** **cover.**

**the exchange of scientific and technical information;**

**-** **. joint RTD activities,**

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

**Where such cooperation takes the form of activities involving education** **and/or** **training,** **it should**
**be carried out in accordance with the provisions of article 48.**

**The Parties, on the basis of** **mutual** **agreement,** **can engage in** **other** **forms of cooperation in**
**science** **and** **technology**

**23**

***?**

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

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

Article 48

Education and training

1. The Parties shall co-operate with the aim of raising the level of general education and
professional qualifications in the Republic of Moldova, both in the public and private

sectors.

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

updating higher education and training systems in the Republic of Moldova including

       the system of certification of higher educational establishments and diplomas of higher
education;
the training of public and private sector executives and civil servants in priority areas
to be determined;

cooperation between educational establishments and between educational
establishments and firms;
mobility for teachers, graduates, administrators, young scientists and researchers, and
young people;
promoting teaching in the field of European Studies within the appropriate institutions;
teaching Community languages;
training of trainers.

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

Article 49

Agriculture and the agro-industrial sector

The purpose of cooperation in this area shall be the pursuance of agrarian reform; the
modernisation, privatisation and restructuring of agriculture, the agro-industrial and services
sectors in the Republic of Moldova; and the development of domestic and foreign markets for
Moldovan products, in conditions that ensure the protection of the environment, and taking into
account the necessity to improve security of food supply. The Parties shall also aim at the
gradual approximation of Moldovan standards to Community technical regulations concerning
industrial and agricultural food products including sanitary and phytosanitary standards.

**24**

**Article 50**

**Energy**

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

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

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

**improvement of the quality and security of energy supply, including diversification of**
**suppliers, in an economic** **and** **environmentally sound manner,**
**formulation of energy policy;**
**improvement in management and regulation of the energy sector in line with a market**

**economy;**
**the introduction of** **the** **range of institutional, legal, fiscal and other** **conditions**
**necessary to encourage increased energy trade and investment;**

**promotion of energy saving** **and** **energy effectiveness;**
**modernisation,** **development** **and diversification** **of energy infrastructure;**
**improvement of energy technologies in supply and end use across the range of energy**
**types;**
**management** **and** **technical** **training in** **the energy sector.**

**Article 51**

**Environment**

**1.** **Bearing in** **mind** **the European Energy Qiarter** **and the** **Declaration of the** **Luzem** **Conference**
**.1993,** **the Parties shall develop and strengthen their cooperation** **on** **environment** **and** **human**
**health.**

**2.** **Cooperation shall aim at combating** **the** **deterioration of the environment and in particular :**

**- effective monitoring of pollution levels** **and** **assessment of** **environment;** **system of**
**information** **on the** **state** **of** **the** **environment;**

**- combatting local, regional** **and** **transboundary air** **and** **water pollution;**

**-**
**ecological** **restoration;**
**-** **sustainable, efficient and environmentally effective production** **and** **use of energy;** **safety**
**of industrial plants;**

**- classification and safe handling of chemicals;**

**- water** **quality;**
**-waste** **reduction,** **recycling** **and** **safe** **disposal,** **implementation of the Basle Convention;**
**-the environmental impact of** **agriculture,** **soil** **erosion,** **and** **chemical** **pollution;**

**- the protectionof** **forests;**

**- the conservation of biodiversity, protected areas and sustainable use** **and** **management**
**of biological resources;**

**- land-use** **planning,** **including construction** **and urban** **planning;**

**25**

**•** _**rt**_

   - use of economic and fiscal instruments;

   - global climate change;

   - environmental education and awareness;

   - implementation of the Espoo Convention on Environmental Impact Assessment in a
transboundary context.

3. Cooperation shall take place particularly through :

   - planning for the handling of disasters and other emergency situations;

   - exchange of information and experts, including information and experts dealing with the
transfer of clean technologies and the safe and environmentally sound use of
biotechnologies;
-joint research activities;

   - improvement of laws towards Community standards;

   - cooperation at regional level, including cooperation within the framework of the European
Environment Agency, and at international level;

   - development of strategies, particularly with regard to global and climatic issues and also
m view of achieving sustainable development;

   - environmental impact studies.

Article 52

Transport

1. The Parties shall develop and strengthen their cooperation in the field of transport

2. This cooperation shall, inter alia, aim at restructuring and modernising transport systems and
networks in the Republic of Moldova and developing and ensuring, where appropriate,
compatibility of transportation systems in the context of achieving a more global transport
system.

26

**/;**

The cooperation shall include, inter alia :

- the modernising of management and operations of road transport, railways-, ports and airports

- modernisation and development of railways, waterways, road, port, airport and air navigation
infrastructure including the modernisation of major routes of common interest and the transEuropean links for the above modes;

- promotion and development of multi-modal transport;

- the promotion of joint research and development programmes;

 preparation of the legislative and institutional framework for policy development and
implementation including privatisation of the transport sector.

**Article 53**

**Postal services and Telecommunications**

Within their respective powers and competences the Parties shall expand and strengthen
cooperation in the following areas:

the establishment of policies and guidelines for the development of the telecommunications

sector and postal services;
development of principles of **a** tariff policy and marketing in telecommunications and postal
services;
**encourage the development of projects for telecommunications and postal services and**
**attracting** **investment;**

**enhancing** efficiency **and** quality **of the provision of telecommunications and postal** services,
**amongst** **others** **through liberalization of activities of** **sub-sectors;**
**advanced application of telecommunications, notably in the** **area** **of electronic funds transfer,**
**management of** **telecommunications networks** **and their** **"optimization";**
**an appropriate regulatory basis for the provision of telecommunications and postal services**
**and for the use of a** **radio** **frequency** **spectrum;**

**training in the field of telecommunications and postal services for operations in market**

**conditions.**

**Article 54**

**Financial Services**

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

**the development of banking and** **financial** **services,** **the development of** **common** **market of**
**credit** **resources,** **the involvement of the Republic of Moldova in universally accepted**
**systems of mutual settlements;**

**the development of the fiscal** **system,** **fiscal institutions in the Republic of Moldova and the**
**exchange of experience and personnel training on** **fiscal** **matters;**

**the development of insurance** **services,** **which would** **inter** **alia** **create** **a favourable** **framework**
**for the** **Community's** **companies'** **participation** **in the** **establishment of joint** **ventures** **in the**

**.** **2** **7**

**/**

insurance sector in the Republic of Moldova, as well as the development of export credit
insurance.

This cooperation shall in particular contribute to foster the development of relations between the
Republic of Moldova and the EC Member States in the financial services sectqr.

Article 54a

Monetary policy

At the request of the Moldovan authorities, the Community shall provide technical assistance
designed to support the efforts of Moldova towards the strengthening of its own monetary system,
achieving the eventual convertibility of its currency and the gradual adjustment of its policies to
those of the European Monetary System. This will include informal exchange of views concerning
the principles and the functioning of the European Monetary System.

Article 55

Money laundering

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

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

Article 56

Regional development

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

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

They shall also encourage direct contacts between the respective regions and public
organizations responsible for regional development planning with the aim, inter alia, to
exchange methods and ways of fostering regional development

**28**

**c X** _**4**_

Article 57

Social cooperation

1. With regard to health and safety, the parties shall develop cooperation between them with the
aim of improving the level of protection of the health and safety of workers.

The cooperation shall include notably:

education and training on health and safety issues with specific attention to high risk
sectors of activity;
development and promotion of preventive measures to combat work related diseases

and other work related ailments;
prevention of major accident hazards and the management of toxic chemicals;

research to develop the knowledge base in relation to working environment and the
health and safety of workers.

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

optimization of the labour market;
   - modernisation of the job-finding and consulting services;

   planning and management of the restructuring programmes;
   - **encouragement** **of local** employment development;
   - **exchange of** **information on** **the** **programmes** **of** **flexible** **employment,** **including those**
stimulating self-employment and promotirit, entrepreneurship.

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

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

**Article 58**

**Tourism**

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

facilitating the tourist trade;

cooperation between official tourism bodies
increasing the **flow** of information;
transferring **know-how;**

**studying the opportunities for joint** operations;
**training** **for** **tourism** **development;**

**29**

##### **_J_**

Article 59

Small and medium-sized enterprises

1. The Parties shall aim to develop and strengthen small and medium-sized enterprises and
their associations and cooperation between SMEs in the Community and the Republic of
Moldova.

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

the development of a legislative framework for SMEs;
the development of an appropriate infrastructure (an agency to support SMEs,
communications, assistance to the creation of a fund for SMEs);
the development of technology parks.

Article 60

Information and communication

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

Article 61

Consumer Protection

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

Article 62

Customs

The aim of cooperation shall be to guarantee compliance with all the provisions scheduled
for adoption in connection with trade and fair trade and to achieve the approximation of
Moldova's customs system to that of the Community.

**30**

_**-A**_

2. Cooperation shall include the following in particular:

the exchange of information
**the improvement** of working methods
    - **the** **implementation of** **the combined nomenclature** **and** **the single**
**administrative document**

**the interconnection** between **the transit** systems **of** the Community **and**
Moldova

the simplification of inspections and formalities in respect of the carriage of goods
the support in the introduction of modern customs information systems
the organisation of seminars and training periods.

3. Without prejudice to further cooperation foreseen in this Agreement and in particular
**Article 65 the mutual assistance between administrative authorities in customs**

**matters of the Parties shall take place** **in** **accordance with the provisions** **of** **the**
**Protocol attached to** **this** **Agreement.**

**Article 63**

**Statistical cooperation**

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

**The Parties, in particular, shall cooperate** **in** **the following fields:**
**adaptation of Moldovan statistical system to international, methods, standards and**
**classification;**
**exchange of statistical information;**
**provision of necessary statistical macro and microeconomic information to implement and**
**manage economic reforms.**

**To** **this end** **the Commumty shall contribute by** **rendering** **technical assistance to the Republic**
**of** **Moldova.**

**Article 64**

**Economics**

**The Parties shall facilitate the process of economic reform and the co-ordination of economic**
**pohcies by** **co-operating** **to improve understanding of the** **fundamentals** **of their respective**
**economies and the design and implementation of economic policy in market** **economies.** **To** **this**
**end** **the Parties shall exchange information on macro economic performance and prospects.**

**31**

The Community shall provide technical assistance so as to;

assist the Republic of Moldova in the process of economic reform by providing expert
advisory and technical assistance, »
encourage cooperation among economists in order to expedite the transfer of know-how for
the drafting of economic policies, and provide for wide dissemination of policy-relevant

research.

Article 65

Drugs

Within the framework of their respective powers and competences the Parties shall cooperate in
increasing the effectiveness and efficiency of policies and measures to counter the illicit
production, supply and traffic of narcotic drugs and psychotropic substances, including the
prevention of diversion of precursor chemicals, as well as in promoting drug demand prevention
and reduction. The cooperation in this area shall be based on mutual consultation and close
coordination between the Parties over the objectives and measures on the various drug-related
fields.

**32**

_**J**_

TITLE VIII: CULTURAL COOPERATION

Article _66_                      

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

**- 33**

_/?_

TITLE IX: FINANCIAL COOPERATION

Article 67                       

In order to achieve the objectives of this Agreement and in accordance with Articles 68, 69 and
70 the Republic of Moldova shall benefit from temporary financial assistance from the
Community by way of technical assistance in the form of grants to accelerate the economic
transformation of the Republic of Moldova .

Article 68

This financial assistance shall be covered within the framework of TACIS foreseen in the

Community's relevant Council Regulation.

Article 69

The objectives and the areas of the Community's financial assistance shall be laid down in an
indicative programme reflecting established priorities to be agreed between the two Parties taking
into account the Republic of Moldova's needs, sectoral absorption capacities and progress with
reform. The Parties shall inform the Cooperation Council thereof.

Article 70

In order to permit optimum use of the resources available, the Parties shall ensure that
Community technical assistance contributions are made in close co-ordination with those from
other sources such as the Member States, other countries, and international organisations
such as the International Bank for Reconstruction and Development and the European Bank for
Reconstruction and Development, as well as the United Nations Development Programme
(UNDP) and the IMF

**34**

TITLE X : INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 71

A Cooperation Council is hereby established- which shall supervise the implementation of this
Agreement. It shall meet at ministerial level once **a** year. It shall examine any major issues
arising within the framework of the Agreement and any other bilateral or international issues of
mutual interest for the purpose of attaining the objectives of this Agreement. The Cooperation
Council may also make appropriate recommendations, by agreement between the two Parties.

Article 72

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

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

**3.** **The office of President of the Cooperation Council shall** **be held alternately by** **a**

   - representative of **the** Community and by **a** member of the Government of the Republic of

Moldova.

**Article 73 .**

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

**In its rules of procedure the Cooperation Council shall determine the duties of the**
**Cooperation Committee, which shall include the preparation** **of** **meetings** **of the**
**Cooperation** **Council,** **and how** **the Committee shall function.**

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

**Article 74**

**The Cooperation Council may decide to set up any other special committee or body that can**
**assist it in carrying out its duties and shall determine the composition and duties of such**
**committees or bodies and** **how** **they shall** **function.**

**35**

**Article 75**

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

**Article 76**

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

**Article 77**

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

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

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

**Article 78**

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

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

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

**Article 79**

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

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

**shall encourage the adoption of arbitration for the settlement of disputes arising out of**
**commercial and cooperation transactions concluded by economic operators of the**
**Community** **and** **those of Moldova;**

**36**

_**,4**_

agree that where a dispute is submitted to arbitration, each Party to the dispute may, except
where the rules of the arbitration centre chosen by the Parties provide otherwise, choose its
own arbitrator, irrespective of his nationality, and that the presiding third arbitrator or the
sole arbitrator may be a citizen of a third state;   will recommend their economic operators to choose by mutual consent the law applicable to
their contracts;

shall encourage recourse to the arbitration rules elaborated by the United Nations
Commission on International Trade Law (Uncitral) and-to arbitration by any centre of a state
signatory to the Convention on Recognition and Enforcement of Foreign Arbitral Awards
done at New York on 1 Oth June 195 8.

Article 80

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

(a) which it considers necessary to prevent the disclosure of information contrary to its essential
security interests;

(b) which **relate to the** production o£ **or trade in** arms, munitions or war materials or to
research, development or production indispensable for defence purposes, provided that such
measures do not impair the conditions of competition in respect of products not intended for
specifically military purposes;

**(c) which it considers essential to its own security in the event of** **serious internal** **disturbances**
**affecting the** **maintenance** **of law and order, in time of war or serious international tension**
**constituting threat of war or in order to carry out** obligations **it has accepted** for **the purpose**
**of** **maintaining peace** **and** **international security;**

(d) which **it** considers necessary **to respect its international** obligations and commitments in the
**control of dual** use industrial goods and technology.

**Article 81**

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

**the arrangements applied by the Republic of** **Moldova** in **respect of the** Community **shall not**
**give rise to any discrimination between the Member States, their** **nationals or their**
**companies or firms;**

**the arrangements applied by** **the** **Community in respect of the Republic of Moldova shall not**
**give rise to any Discrimination between** **Moldovan** **nationals,** **or** **its companies or firms.**

**2.** **The provisions of Paragraph I are without prejudice to the** **right** **of the Parties to apply the-**
**relevant provisions of their legislation to tax payers who are not in identical situations as**
**regards** **their place of residence.**

**37**

_**-Jt**_

Article 82

1. Each of the two Parties may refer to the.Cooperation Council any dispute relating to the
application or interpretation of this Agreement

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

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

**The** Cooperation **Council** shall **appoint** **a third** **conciliator.**

The conciliator's recommendations shall be taken by majority vote. Such recommendations
**shall** not **be** **binding upon the Parties.**

**Article 83**

**The Parties** **agree** **to consult promptly** **through** **appropriate channels at the request of either party**
**to discuss** **any matter** **concerning** **the** **interpretation or implementation of this** **Agreement** **and other**
**relevant aspects of the relations** **between the** **Parties.**

**The** provisions **of this Article shall** **in no** **way affect** **and are** **without prejudice to Articles 13, 14,**
**82** and **87a.**

**Article 84** _**t**_ _**.**_

**Treatment granted to the Republic of Moldova hereunder shall in no case be more favourable**
**than** **that granted by the Member States to each other.**

**Article 85**

**For the purposes of this** **Agreement,** **the term** **[ M]** **Parties** **[M]** **shall mean the Republic of Moldova on**
**the one** **part,** **and the Community, or the Member States, or the Community and the Member**
**States, in accordance with** **their** **respective** **powers,** **on** **the** **other** **part**

**Article 86**

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

**38**

Article 87

This Agreement is concluded for an initial period of 10, years. The Agreement shall be
automatically renewed year by year provided that neither Party gives the other Party written
notice of denunciation of the Agreement six months before it expires.

Article 87a

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

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

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

**Article 88**

**Annexes** **I,** **H,** **HI,** **IV, and V** **together** **with the Protocol on mutual assistance between**
administrative authorities in customs **matters shall form an** integral **part of this Agreement.**

**Article 89**

**This Agreement shall not, until equivalent** **rights** **for individuals and economic operators have**
**been achieved hereunder, affect rights assured to them through existing Agreements binding one**
**or more Member States on the one hand and the Republic of Moldova on the other except in**
**areas falling within Community competence and without** **prejudice'to** **the obligations of Member**
**States resulting** **from** **this Agreement in areas** **felling** **within their** **competence.**

**Article 90**

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

**39**

### **_J_**

Article 90a

The Secretary-General of the Council of the European Union shall be the depository of this
Agreement. . ' - - . '

Article 91

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

Article 92

This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on
which the Parties notify each other that the procedures referred to in the first paragraph have been
completed.

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

Article 93

In the event that, pending the completion of the procedures necessary for the entry into force of
this Agreement, the provisions of certain parts of this Agreement are put into effect in 1994 by
means of an interim agreement between the Community and Moldova, the Contracting Parties
agree that, in such circumstances, the term "date of entry into force of the Agreement" shall mean
the date of entry mto force of the interim Agreement

40

_**J**_
_**r**_

LIST OF ANNEXES

Annex I Indicative list of advantages granted by the Republic of Moldova to the other

Indepedent States in accordance with Article 8

Annex II Exceptional measures which derogate from the provisions of Article 11.

Annex III IPR conventions (Article 38).

Annex IV Community reservations in accordance with Article 23 paragraph lb

Annex V Moldovan Reservations in accordance with Article 23 paragraph 2a

PROTOCOL

Protocol on mutual assistance in customs matters.

41

**1**

ANNEX I

Indicative list of advantages granted by the Republic of Moldova to the Independent States in
accordance with Article 8.3.

1. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
Russia, Ukraine, Uzbekistan.
No import duties are implemented.
No export duties are implemented as regards goods delivered under clearing and interstate
agreements within the volumes stipulated in these agreements.
No VAT is applied on export and import. No excise is applied on export.
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
Russia, Ukraine, Uzbekistan - export quotas for deliveries of products under annual interstate
trade and cooperation agreements are opened in the same way as for deliveries for state needs.

2. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
Russia, Ukraine, Uzbekistan - .
Payments could be made in national currency of these countries or any other currencies
accepted by Moldova or these countries.
*2*"3T _'_ RuBsjaaqplamentJ mulil lu m nlo in iuublca-or lei- ^
Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Ukraine, Turkmenistan - special ^c
system of non-commercial operations, including payments resulting from these operations.

**•>":***

**X<2**

**>** _***r**_

3. Armenia, Belarus, E^eata, Georgia, Kazakhstan, Litfrtfania, Ukraine, Turkmenistan - specially
system of current payments.   

4. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania» Ukraine, Turkmenistan - special**^
price system in trade with some raw materials and semi-finished products. _j_

5. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Litiuiama, Ukraine, Turkmenistan - special _>_ _Jr'_
conditions of transit. _£_

6. Armenia, Belarus, Es^enw, Georgia, Kazakhstan, -Littaama, Ukraine, Turkmenistan - special ' _J_
conditions of customs procedures. ^*y

**42**

_**J**_

ANNEX II

Exceptional measures which derogate from the provisions of Article 11

1. Exceptional measures which derogate from the provisions of Article 11 may be taken by
Moldova in the form of quantitative restrictions on a non-discriminatory basis.

2. Thèse measures may only concern infant industries, or certain sectors undergoing
restjnictiiring or facing serious difficulties, particularly where these difficulties produce
important social problems.

3. The total value of imports of the products which are subject to these measures may not
exceed 15 % of total imports from the Community during the last year, prior to the
introduction of any quantitative restrictions for which statistics are available.

These provisions shall not be circumvented by increased tariff protection on the imported goods concerned.

4. These measures may only be apphed during a transitional period ending 31st December
1998 unless parties agree otherwise, or when Moldova becomes a contracting Party to
GATT whichever is earlier.

5. Moldova shall inform the Cooperation Council of any measures it intends to take under the
terms of this present Annex, and, at the request of the Community, consultations shall be
held in the Cooperation Council on such measures and the sectors to which they apply
before they enter into force.

**43**

_**^ \**_

ANNEX III

IPR conventions (Article 3 §)

1. Paragraph 2 of Article 38 concerns the following multilateral conventions:

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

International Convention for the Protection of Performers, Producers of
Phonograms and Broadcasting Organizations (Rome, 1961);

Protocol relating to the Madrid Agreement conœming the International
Registration of Marks (Madrid, 1989);

Nice Agreement conœrning the International Classification of Goods and Services for
the purposes of the Registration of Marks (Geneva 1977, amended 1979);

the 1991 Act of the International Convention for the Protection of New

Varieties of Plants (UPOV).

2. The Cooperation Council may recommend that paragraph 2 of Article 38 shall apply to
other multilateral conventions. If problems in the area of intellectual, industrial, and
commercial property affectmg trading conditions were to occur, urgent consultation shall be
undertaken, at the request of either Party, with a view to reaching mutually satisfactory
solutions.

3. The Parties confirm the importance they attach to the obligations arising form the following
multilateral conventions:

Budapest Treaty on the International Recognition of the Deposit of Micro-organisms
for the purposes of Patent Procedures (1977, modified in 1980);
Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967 and
amended in 1979);
Madrid Agreement concerning the International Registration of Marks (Stockholm
Act, 1967, and amended in 1979);

Patent Cooperation Treaty (Washington 1970, amended and modified in 1984);

4. From the entry into force of this Agreement Moldova shall grant to Community companies
and nationals, in respect of the recognition and protection of intellectual, industrial and
commercial property, treatment no less favourable than that granted by it to any third
country under bilateral agreements.

5. The provisions of paragraph 4 shall not apply to advantages granted by Moldova to any
third country on an effective reciprocal basis or to advantages granted by Moldova to
another country of the former USSR.

**44**

_**Jf**_

ANNEX IV

Community reservations in accordance with Article 23 paragraph lb

Mining

In some Member States, a concession may be required for ruining and mineral rights for non-EC
controlled companies. v

Fishing

Access to and use of the biological resources and fishing grounds situated in the maritime waters
coming under the sovereignty or within the jurisdiction of Member States of the Community is
restricted to fishing vessels flying the flag of a Community Member State and registered in
Commumty territory unless otherwise provided for.

Real estate purchase

In some Member States, the purchase of real estate by non-EC companies is subject to
restrictions.

Audiovisual services including radio

National treatment concerning production and distribution, including broadcasting and other
forms of transmission to the public, may be reserved to audiovisual works meeting certain origin
criteria.

Telecommunications services including mobile and satellite services

Reserved services

hi some Member States market access concerning complementary services and infrastructures is
restricted.

Professional services

**i.**
**Services reserved to natural persons nationals of Member** **States.** **Under certain conditions** **those**
**persons may create compames.**

**Agriculture**

**In some Member** **States** **national** **treatment is no** **apphcable to non-EC controlled companies** **which**
**wish to undertake an agricultural enterprise. The acquisition of vineyards by non-EC controlled**
**compames is subject to** **notification,** **or, as necessary, authorisation.**

**News agency services**

**In some Member States limitations of foreign participation in publishing companies and**
**broadcasting companies.**

**45**

_**I**_

ANNEX V

Moldovan reservations to national treatment

Some aspects of the privatisation process are subject to conditions or restrictions.

Acquisition and sale of agriculture lands and forests

Organisation of gambling, betting, lotteries and other similar activities

Banking services:
The minimum capital requirement for a Moldovan subsidiary of a company from third countries
amounts to two million US dollars.

46

**PROTOCOL**

**ON MUTUAL ASSISTANCE**

**BETWEEN ADMINISTRATIVE AUTHORITIES**

**IN CUSTOMS MATTERS**

**47**

##### **_J_**

Article **1**

**Definitions**

**For** the purposes of this Protocol :

a) "customs legislation" shall mean provisions applicable in the territories of thé Parties amrgoveming the import, export, transit of goods and their placing under any customs procedure,
including measures of prohibition, restriction and control and adopted by the said Parties;

b) "customs duties" shall mean all duties, taxes, fees or any other charges which are levied and
collected in the territories of the Parties, in application of customs legislation, but not including
fees **and** charges **which are limited** in amount **to** **the approximate** costs **of** services rendered;

c) **"applicant authority", shall mean a competent administrative authority which has been**
**appointed by a Party for this purpose and which makes a request for** assistance in customs

matters;

**d) "requested authority", shall** mean **a** competent **administrative authority which** has been
appointed by **a Party for this** purpose and which receives **a request** for assistance in customs

matters;

**e)** **"contravention",** **shall mean any** **violation** **of the** **customs** **legislation as well as any attempted**
**violation of such legislation.**

**Article 2**

**Scope**

**The Parties shall assist each other, within their competences, in the manner and under the**
**conditions laid down in this Protocol, in ensuring that customs legislation is correctly apphed,**
**in particular by the** **prevention,** **detection** **and** **investigation of contraventions of this** **legislation.**

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

**Article** **3**

**Assistance on request**

**1.** **At the request of the applicant authority, the requested authority shall furnish it with all**
**relevant information to enable it to ensure that customs legislation is correctly** **apphed,**
**including information regarding** **operations** **noted or planned** **which** **contravene or would**
**contravene such legislation.**

**48**

_**-3L**_

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

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

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

(b) movements of goods notified as possibly giving rise to substantial contraventions of
customs legislation; .

(c) means of transport for which there are reasonable grounds for believing that they have
been, are or may be used in the contravening of customs legislation.

CcC~ _'_ C ^/o>v -ÎHÔV*- ivvfro _&JL_ _J_ 'U-cPi^t>v4&_ _sy**~~*^_ Parv. -Oprtor^jfr CueJ

Spontaneous assistance

**J7K,>/-** **ifUA-x'v** _**IJO^~.**_ _**f\îÀr-&^CM^**_ _**j**_ _**L**_
**ccordance** **with their laws, rules and other legal** **<4**
**'that to be necessary for the correct application of** _**J(.**_
**customs** **legislation,** **particularly when they obtam** **information pertaining to** **:** **\**

**-**
**operations which have** **contravened,** **contravene or would contravene such legislation and**
**which** **may** **be of interest to** **other** **Parties;**

**-** **new means** **or** **methods** **employed** **m** **realizing such** **operations;**

**- goods** **known** **to** **be subject to substantial contravention of customs legislation.**

**Article 5**

**Delivery/Notification**

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

**in order** **to** **deliver all documents,**
**to notify all decisions,**

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

**49** **.**

**/**
###### **_A_**

Article 6

**Form and substance of requests for assistance**

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

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

(a) the applicant authority making the request;
(b) the measure requested;
(c) **the** object of and **the** reason for the request;

**(d) the** laws, **rules and** other legal elements involved;
**(e) indications as exact** **and** **comprehensive as possible on the natural or legal** **persons**
being the target **of the investigations;**
**(f) a summary of the relevant** facts and of the enquiries already carried out, except in
cases provided **for in** Article 5.

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

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

**Article 7**

**Execution of requests**

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

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

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

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

**50,**

**; >** _**J**_

**Article 8**

**Form in which information is to be communicated** *****

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

**2.** **The documents provided for in paragraph 1 may be replaced by computerized information**
**produced in any form for the same purpose.**

**Article 9**

**Exceptions to the obligation to provide assistance**

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

**(a) be likely to prejudice sovereignty, public policy, security or other essential •**
**interests;** **or**
**(b) involve currency or tax regulations** **other than** **regulations concerning customs**
**duties; or**
**(c) violate an** **industrial,** **commercial or** **professional secret**

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

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

**Article 10**

**Obligation to observe confidentiality**

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

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

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

_**si**_

**-*-v**

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

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

Article 11

Use of information

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

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

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

Article 12

Experts and witnesses

An official of a requested authority may be authorized to appear, within the limitations of the
authorization granted, as expert or witness injudicial or administrative proceedings regarding the
matters covered by this Protocol in the jurisdiction of another Party, and produce such objects,
documents or authenticated copies thereof^ as may be needed for the proceedings. The request for
an appearance must indicate specifically on what matters and by virtue of what title or
qualification the official will be questioned.

Article 13

Assistance expenses

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

52,

_**J**_
**v-Pt**

_**X-**_ _**JZ**_

Article 14

Implementation

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

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

Article 15

Complementarity

1. This Protocol shall complement and not impede the application of any agreements on mutual
assistance which have been concluded or may be concluded between individual or several
Member States of the European Union and Moldova. Nor shall it preclude more extensive _;_ _[. ]_
**raiQtnmn.pnnner^^go** **granted iinrter gnrh** **agreement»;** _**^ff**_

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

53

_/>_

**JOINT DECLARATION CONCERNING ARTICLE 3 bis**

**It is the understanding of the Parties that should they proceed to the negotiation of a Free Trade**
**Area in accordance with article 3 bis, such negotiations should cover all products traded between**
**the Parties.**

**54**

_**J***_ **•** **•**

**JOINT DECLARATION** **CONCERNING** **ARTICLE 13**

**The Community and the Repubhc of Moldova declare that the text of the safeguard clause does**
**not** **grant** **GATT safeguard treatment**

**55**

## **_A_**

**JOINT DECLARATION CONCERNING ARTICLE 14**

**It is understood that the provisions of Article 14 are neither intended to, nor** **shall** **slow** **down,**
**hinder or** **impede** **the procedures provided for** **in the** **respective legislations of the Parties regarding**
**anti-dumping** **and subsidies investigations.**

**56**

_**J**_

JOINT DECLARATION CONCERNING A R ^ O y i ; 23

Without prejudice to the reservations listed in Annexes IV and V **aaè** tq the provisions of Articles
36a and 36d, the Parties agree that the words "in conformity v/ith thw legislation and regulations"
mentioned in paragraphs 1 and 2 of Article 23 mean that each;Party may regulate the
establishment and operation of companies, on its territory, provided that these regulations do not
create for the establishment and operations of companies of l|ie |l|«^Party any new reservations
resulting in a less favourable treatment than that accorded to th<*r **own:** companies or to companies
or branches or subsidiaries of companies of any third country. - ù

_:_ _k-h"_ _[r]_ _'"-_ ' . * • ' • "

**&•*''** **'3-**

_**ê.**_

_**h**_ **fi**

**V**

**F** _**;**_ _**.4**_

_- • & *_

**57**

**•** _**4**_ _**~**_ _**v**_ _**•**_ _**•-,**_ _***k**_ **',.** _**4**_

**«*•&**

***•** _**'4-**_ **,** **„,.** ******

**7**

JOINT DECLARATION CONCERNING ARTICLE 24

Commercial presence of a Party's internal waterways transport companies in the other Party's
territory shall be governed in accordance with legislation applicable within Member States or
Moldova, until specific more favourable provisions governing such commercial presence can be
agreed upon,-and if such presence is not governed by other legislative instruments binding on the
Parties.

It is understood that a commercial presence shall take the form of subsidiaries or branches as
defined in Article 25.

58

_//_

**JOINT** **DECLARATION** **CONCERNING THE** **NOTION** **OF** **"CONTROL"**
IN ARTICLE 25(b) **AND** ARTICLE 36

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

2. A company shall, for example, be considered as being "controlled" by another company, and
thus a subsidiary of such other company if :

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

the other company has the right to appoint or dismiss a majority of the administrative
organ, of the management organ or of the supervisory organ and is at the same time a
shareholder or member of the subsidiary.

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

59

_**tO***_ _**^i**_

_**J**_

**•• JOINT DECLARATION** **CONCERNING ARTICLE 38**

**»** ***** **»**

**The Parties agree that for** **tW"purpose** **of the** **Agreement,** **intellectual, industrial and** **commercial**
**property includes** **in** **partifcuia*** **copyright,** **including the copyright** **in computer** **programs, and**
**neighbouring rights, the** **rights** **relating** **to patents, industrial designs, geographical indications,**
**including** **appellations of** **orçjm,** **trademarks and service marks, topographies of integrated circuits**
**as well as** **protection** **against** **unfair** **competition as referred to in Article 10 bis of the Paris**
**Convention for the** **protection df Industrial** **Property and protection of undisclosed information on**
**know-how.** _**\**_ _*****_ _**t**_ **-**** _**'**_ **'** _**'**_

**îM**

**>,-_** **.)**

***'** **V** *****

*** *** **I*** **I**

**60**

**•** **„ *** _**f**_

**y**

**JOINT** **DÉCLARATION** **CONCERNING ARTICLE 87a**

**The Parties agree, for the purpose of** **its** **correct interpretation and its practical** **apphcation,** **that**
**the term "cases of special** **urgency"** **included in** **Article** **87a of the Agreement mean cases of**
**material breach of the Agreement by one of the Parties. A material breach of the** **Agreement**

consists in

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

**or**

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

**61**

_**J**_

UNILATERAL DECLARATION BY THE FRENCH REPUBLIC

"La République française note que l'accord de partenariat et coopération avec la République de
Moldavie ne s'applique par aux pays et territoires d'Outre-mer associés à la Communauté
européenne en vertu du traité instituant la Communauté Européenne."

62

**/•'**

**EXCHANGE OF LETTERS**
**BETWEEN THE COMMUNITY** **AND THE** **REPUBLIC OF MOLDOVA**

**IN RELATION** **TO** **THE ESTABLISHMENT OF COMPANIES**

**63**

_**J**_

A. Letter from Moldova

Dear Sir,

I refer to the Partnership and Cooperation Agreement initialled on 1994.

As I underlined during the negotiations, the Republic of Moldova grants to Community companies
establishing and operating in the Republic of Moldova in certain respects a privileged treatment. I
explained that this reflects the Moldovan policy to promote by all means the establisliment of
Community companies in the Republic of Moldova.

With this in mind, it is my understanding that during the period between the date of initialling of
this agreement and the entry into force of the relevant articles on establishment of compimies, the
Republic of Moldova shall not adopt measures or regulations which would introduce or worsen
discrimination of Community companies vis-à-vis Moldovan companies or companies from any
third country as compared to the situation existing on the date of initialling of this agreement.

I would be obliged if you could acknowledge receipt of this letter.

For the Government of the Republic of Moldova

64

_**•A**_

**B.** **Letter from the Community**

**Dear** **Sir,**

**Thank you for letter of today's** **date,** **which** **reads** **as follows :**

**"Dear Sir,**

**I refer to the Partnership and Cooperation Agreement initialled on** **1994.**

**As I underlined** **during the** **negotiations,** **the Republic** **of Moldova** **grants** **to Commumty compames**
**establishing** **and** **operating** **in** **the Republic of Moldova in certain respects a privileged** **treatment.** **I**
**explained that this reflects the Moldovan pohcy to promote by all means the** **establishment** **of**
**Community companies in** **the** **Republic of Moldova.**

**With this in** **mind,** **it is my understanding** **that** **during the period between the date of initialling of**
**this agreement and the** **entry,** **into force of the relevant articles on establishment of companies, the**
**Republic of** **Moldova** **shall not adopt measures or regulations which would introduce or worsen**
**discrimination of Commumty companies vis-à-vis Moldovan companies or compames from any**
**third country as compared to the situation existing** **on** **the date of initialling of this agreement.**

**I would** **be** **obliged if you could acknowledge receipt of this** **letter."**

**I can acknowledge receipt of this letter.**

**Please** **accept,** **Sir, the assurance of my highest consideration.**

**On** **behalf of the European Communities**

**65**

_**Ji**_

**Outside the Agreement:**

**Exchange of letters** **on** **the consequences of enlargement**

**Letter** **from** **the Community**

**Dear Sir, I refer to the Agreement on Partnership and Cooperation signed today and** **confirm** **that**
**if** **any** **amendment to this agreement might become necessary as a result of** **an** **enlargement of** **the**
**Community,** **this** **would become the subject of consultations between the Parties pursuant to**
**Article** **71** **and in this context account would be** **taken,** **to the extent possible, of the character of**
**bilateral trade and economic relations between Moldova** **and** **acceding States.**

**I would be obliged** **if** **you could confirm** **the** **agreement of Moldova** **to the** **content of this letter.**

**66**

**Outside the agreement**

**Unilateral Declaration bv Moldova**

**Given the importance of the wine sector for** **the** **Moldovan economy, Moldova expresses its wish**
# **^V?- fc> negotiate with the Community a bilateral agreement/ on trade in wine. A /**

**67**

#### **_.J_**

Outside the agreement

Declaration bv the Community

The Community undertakes to provide technical assistance in the form of seminars oifother _~&4_
appropriate means in order to help Moldovan authorities and economic operators to benefit in full _j>_
from the advantages agreed under the Community GSP as currently applied to Moldova. _Jj_
**cT<**

**68**

**ISSN 0254-1475**

**COM** **(94) 477** **final**

**DOCUMENTS**

**EN** **11** **02**

**Catalogue number : CB-CO-94-514-EN-C**

**ISBN 92-77-81765-8**

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

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