Source: EURLEX
Language: en
Format: md

16 . 12 . 95 EN Official Journal of the European Communities No C 338 / 11

COOPERATION AGREEMENT

between the European Community and the Kingdom of Nepal

THE COUNCIL OF THE EUROPEAN UNION,

on the one part,

HIS MAJESTY 'S GOVERNMENT OF NEPAL

on the other part,

CONSIDERING the excellent relations and traditional links of friendship between the European
Community and its Member States, hereinafter referred to as ' the Community ', and the Kingdom of
Nepal, hereinafter referred to as ' Nepal ';

RECOGNIZING the importance of strengthening the links and enhancing the relations between the
Community and Nepal ;

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

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

DESIROUS of creating favourable conditions for a substantial development and diversification of trade
between the Community and Nepal ;

HAVING REGARD to the need to create favourable conditions for direct investment ;

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

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

NOTING their common interest in fostering and strengthening regional cooperation and the North-South
dialogue ;

TAKING INTO ACCOUNT the need to uphold and reinforce the rules which promote free and
unhindered trade in a stable, transparent and non-discriminatory manner ;

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

THE COUNCIL OF THE EUROPEAN UNION ;

HIS MAJESTY'S GOVERNMENT OF NEPAL ;

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

No C 338 / 12 ΓΕΝΙ Official Journal of the European Communities 16 . 12 . 95

HAVE AGREED AS FOLLOWS :

Article 1 customs union, a free trade area or a preferential

treatment area .

Basis

Respect for human rights and democratic principles is
the basis for the cooperation between the Parties and for
the provisions of this Agreement, and it constitutes an
essential element of the Agreement .

Article 2

Objectives

The principal objectives of this Agreement are to
enhance and develop the various aspects of cooperation
between the Parties, in particular :

( a ) to secure the conditions and to promote the increase

and development of two-way trade and investment
between the two Parties ;

( b ) to support the sustainable economic development of

Nepal, taking into account its current least
developed status ;

( c ) to promote economic, technical and cultural links in

their mutual interest ;

( d ) to support environmental protection and the
sustainable management of natural resources ;

2 . The Parties undertake to develop and diversify
their commercial exchanges and to improve market
access, to the highest possible degree in a manner
compatible with their economic situations .

3 . The Parties are committed to improving the terms
of access for their products to each other 's markets . In
this context, they shall grant each other the most
favourable conditions for imports and exports and they
agree to examine ways and means of eliminating barriers
to trade between them, notably non-tariff barriers,
taking account of the work already done in this
connection by international fora .

4 . The Parties agree to promote the exchange of
information concerning mutually beneficial market
opportunities .

5 . The Parties agree to improve cooperation in
customs matters between the respective authorities,
especially with regard to the possibility of professional
training, the simplification and harmonization of customs
procedures, and the prevention, investigation and
repression of customs offences .

developing its trading capacity, 6 . The Parties also undertake to give consideration,

land-locked nature . each duty in, tax accordance and other charges with its, goods laws admitted, to exempting temporarily from

to their territories for subsequent re-export unaltered or
for goods which re-enter their territories after processing
Article 3 in the other Party which is not sufficient for the goods to
be treated as originating from the territory of that Party .

( e ) to assist Nepal in developing its trading capacity,

taking into account its land-locked nature .

Trade and commercial cooperation

1 . The Community in conformity with the provisions
of Article 1 of the General Agreement on Trade and
Tariffs ( GATT 1994 ) and Nepal shall grant each other

most-favoured-nation treatment with respect to tariffs .

These provisions shall not apply to preferences accorded
by either Party under any arrangement establishing a

7 . In so far as their competences, regulations and
policies permit, the Parties agree to inform and consult
each other in connection with trade or trade-related
matters, including property rights and public
procurement, on any dispute which may arise . They will

also hold consultations in a constructive spirit on the
issues of tariff, non-tariff, services, health, safety or
environmental measures and technical requirements .

16 . 12 . 95 r EN 1 Official Journal of the European Communities No C 338 / 13

Article 4

Intellectual property

Article 6

Economic cooperation

1 . In so far as their competences, regulations and 1 . The Parties undertake, in accordance with their
policies permit, the Parties will : respective policies and objectives and within their

available resources, to foster economic cooperation for
mutual benefit .
( a ) aim to improve the conditions for adequate and

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

( b ) cooperate to secure these objectives .

( a ) improving the economic environment and the
business climate in Nepal by facilitating access to
Community know-how and technology, including,

2 . The Parties agree that economic cooperation will
involve the following broad fields of action :

2 . The Parties agree that they shall avoid discrimi ­ inter alia, telecommunications, transport and, energy ;,
natory treatment in relation to intellectual property
rights and to engage, if necessary, in consultations if
intellectual property problems affecting trading relations
arise . ( b ) facilitating efficient business contacts links between and promoting economic viable operators and
and other measures designed to promote commercial
exchanges and investments, including tourism ;

Article 5

Development cooperation ( c ) facilitating exchange of information on enterprise

1 . The Community recognizes Nepal 's need for devel ­
opment assistance, taking into account its current least
developed status and its land-locked situation . The
Community is prepared to enhance its cooperation in
order to contribute to Nepal 's own efforts in achieving
sustainable economic development and social progress of
its people through specific projects and programmes .
Support will be in accordance with Community policies,
regulations and the limits of the financial means available
for cooperation .

2 . Projects and programmes will particularly aim to
improve the quality and standard of living of the poorest
sections of the population . Cooperation will give priority
to balanced agricultural development, including the
creation of non-agricultural and off-farm employment in
rural areas .

and small and medium enterprises ( SME ) policies,
particularly in respect of improving the business
environment and encouraging closer contacts
between SMEs, with a view to promoting trade and
industrial cooperation opportunities ;

( d ) reinforcing mutual understanding of their respective

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

3 . In particular, the Parties will :

( a ) establish cooperation in information and communi ­

cation ;

( b ) promote, in the framework of their respective
strategies, science, technology and energy, as defined
Cooperation will also support policies on primary health in Articles 7 and 8 ;
care, population and the role of women . It will, as far as
possible, be established with the participation of the
targeted groups and, where appropriate, will involve ( c ) promote practical areas, such as standards and
qualified mutually acceptable non-governmental organ ­ quality control .
izations .

3 . Community development cooperation activities and
priorities will be mutually agreed on the basis of Nepal 's
development objectives and will pursue efficiency and
substainability .

4 . The Parties, within the limits of their resources and
in accordance with their respective procedures, will
determine together and to their mutual advantage, the
areas and priorities for economic cooperation
programmes and activities .

No C 338 / 14 lENl Official Journal of the European Communities 16 . 12 . 95

Article 7 Article 11

Science and technology Human resource development

The Parties will promote scientific and technological The Parties recognize the importance of human resource
cooperation and untertake to encourage inter-institu ­ development, both primary education and skills devel ­
tional relationships in fields of mutual interest . opment as well as improving the living conditions of the

disadvantaged sections of the population . They agree
human resource development should constitute an
integral part of both economic and development coop ­
Article 8
eration .

Energy

The Parties recognize the importance of the energy
sector to economic and social development and
undertake to encourage cooperation relating to the
generation, saving and efficient use of energy .

Article 9

Agriculture

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

( a ) the opportunities for increasing trade in agricultural

products ;

( b ) health, plant and animal health and environmental

measures to prevent them hindering trade ;

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

( d ) agricultural research .

Article 10

Investments

Specific projects may be funded by the Community with
the objective of improving human resources devel ­
opment, including training to ameliorate workers '
conditions .

Article 12

Environmental cooperation

1 . The Parties recognize the need to take full account
of environmental protection as an integral part of
economic and development cooperation . Moreover, they
underline the importance of environmental issues and
sustainable development and assert their will to establish
cooperation in protecting and improving the
environment with particular emphasis on water, soil and
air pollution, erosion, deforestation and sustainable
management of natural resources, taking into account
the work done in international fora .

2 . Particular attention will be paid to :

( a ) the protection and conservation of natural forests

and their sustainable management development and
measures against soil erosion ;

( b ) the importance of the energy / environment linkage ;

( c ) the finding of practical and efficient solutions to

rural energy problems ;

The Parties will undertake to encourage an increase in ( d ) the protection of the urban environment ;
mutually beneficial investment by establishing a more
favourable climate for private investment through better
conditions for the transfer of capital and by supporting
agreements on the promotion and protection of ( e ) the prevention and mitigation of industrial
investments between the Member States of the European
Union and Nepal on the basis of the principles of
non-discrimination and reciprocity . ( f ) the impact of tourism on the environment

( e ) the prevention and mitigation of industrial pollution ;

( f ) the impact of tourism on the environment .

16 . 12 . 95 PEN Official Journal of the European Communities No C 338 / 15

Article 13

Drugs and AIDS

The Parties affirm their resolve to cooperate in the field
of prevention and reduction of drug abuse and AIDS, in
particular through the strengthening of health services
capabilities and support to key health education
activities .

Article 14

Regional cooperation

The cooperation between the Parties may extend to

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

Without excluding any area, the following may be given
particular consideration :

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

( b ) promotion of intra-regional trade ;

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

( d ) studies concerning regional links and communi ­
cations .

2 . The joint commission shall be composed of
representatives of both sides, at the senior official level .
The joint commission shall normally meet every other
year, alternately in Brussels and in Kathmandu, on a
date fixed by mutual agreement . Extraordinary meetings
may also be convened by agreement between the Parties .

3 . The joint commission may set up specialized
sub-groups to assist in the performance of its tasks and
to coordinate the formulation and implementation of
projects and programmes within the framework of the
Agreement .

4 . The agenda for meetings of the joint commission
shall be determined by agreement between the Parties .

5 . The Parties agree that it : shall also be the task of
the joint commission to ensure the proper functioning of
any sectoral agreements which may be concluded
between the Community and Nepal .

Article 16

Future developments

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

2 . Within the framework of this Agreement, either of
the Parties may put forward suggestions for expanding
the scope of the cooperation, taking into account the
experience gained in its application .

Article 17

Article 15 Other agreements

Joint commission

1 . The Parties agree to set up a joint commission
whose tasks shall be to :

( a ) ensure the proper functioning and implementation of

the Agreement ;

( b ) establish priorities in relation to the possible actions

including projects and programmes necessary to
achieve the aims of the Agreement ;

( c ) make suitable recommendations for promoting the

objectives of the Agreement .

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

2 . Subject to the provisions of paragraph 1, the
provisions of this Agreement shall replace provisions of
agreements concluded between Member States of the
European Union and Nepal where such provisions are
either incompatible with or identical to the provisions of
this Agreement .

No C 338 / 16 EN Official Journal of the European Communities 16 . 12 . 95

Article 18

Non-execution of the Agreement

If either Party considers that the other Party has failed
to fulfil any of its obligations under the Agreement, it
may take appropriate measures .

Before doing so, except in cases of special urgency, it
shall supply the other Party 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 measures, priority must be given to
those which least disturb the functioning of this
Agreement . The measures shall be notified immediately
to the other Party and consultations shall be held on
them if the other Party so requests .

Article 19

Article 21

Annex

The Annex attached to this Agreement shall form an
integral part of the Agreement .

Article 22

Entry into force and renewal

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

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

its expiry date .

Article 23
Facilities

Authentic texts
To facilitate cooperation withing the framework of this
Agreement officials and, the experts Nepalese involved authorities in implementing will grant to coop EC ­ This Dutch Agreement, English, Finnish is drawn, French up in, duplicate German, Greek in the Danish, Italian,,
eration the guarantees and facilities necessary for the Portuguese, Spanish, Swedish and Nepali languages,
performance of their functions . The detailed provisions each text being equally authentic .
will be set out by way of a separate Exchange of Letters .

In Witness whereof the undersigned Plenipotentiaries
Article 20 have signed this Agreement .

Territorial application For the Council of the European Union

This Agreement shall apply, on the one hand, to the
territories in which the Treaty establishing the European
Community is applied and under the conditions laid
down in the Treaty and, on the other, to the territory of
Nepal . For His Majesty 's Government of Nepal

16 . 12 . 95 fENl Official Journal of the European Communities No C 338 / 17

ANNEX

Joint Declarations of the European Community and His Majesty 's Government of Nepal

1 . The Parlies agree that for the purpose of this Agreement ' intellectual, industrial and commercial

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

2 . ( a ) For the purposes of the interpretation and practical application of this Agreeement, the Parties agree

that the cases of special urgency referred to in Article 18 of the Agreement mean cases of material
breach of the Agreement by one of the two Parties . A material breach of the Agreement consists in :

— repudiation of the Agreement not sanctioned by the general rules of international law,

— violation of the essential elements of the Agreement set out in Article 1 .

( b ) The Parties agree that ' appropriate measures ' referred to in Article 18 are measures taken in
accordance with international law . If a Party takes a measure in a case of special urgency pursuant
to Article 18, the other Party may request consultations on that measure .

Declaration by the European Community on Generalized Preferences

The European Community is prepared to assist Nepal to enable them to make the best use of the
advantages afforded by the Generalized System of Preferences ( GSP ), put into force on 1 January 1995 .

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