Source: EURLEX
Language: en
Format: md

No C 258 / 6 EN Official Journal of the European Communities 5 . 9 . 96

DRAFT FRAMEWORK COOPERATION AGREEMENT

in preparation for the eventual establishment of a political and economic association between the
European Community and its Member States, of the one part, and the Republic of Chile, 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 REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SPAIN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

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

THE EUROPEAN COMMUNITY,

hereinafter referred to as the ' Community ',

of the one part, and

THE REPUBLIC OF CHILE,

hereinafter referred to as ' Chile ',

of the other part,

CONSIDERING their common cultural heritage and the deep historical, political and economic ties which
unite them ;

CONSIDERING the significant contribution made by the Framework Agreement for Cooperation
between the Community and Chile signed on 20 December 1990 (') to strengthening all these ties ;

(') OJ No L 79, 26 . 3 . 1991 .

5 . 9 . 96 [ EN Official Journal of the European Communities No C 258 / 7

CONSIDERING their full commitment to respect for democratic principles and fundamental human rights
as set out in the Universal Declaration of Human Rights ;

CONSIDERING the importance which both Parties attach to the principles and values set out in the final
Declaration of the World Summit for Social Development in Copenhagen in March 1995 ;

MINDFUL of both Parties ' desire to ensure sustainable development and also to conserve and protect the
environment ;

CONSIDERING their attachment to the market economy and reaffirming their willingness to maintain
and strengthen the rules of free international trade in compliance with the rules of the World Trade
Organization ( WTO ) and emphasizing, in particular, the importance of open regionalism ;

CONSIDERING their mutual interest in establishing new contractual links in order to develop closer and
more extensive cooperation, to expand and diversify trade and to increase investment ;

CONSIDERING the political will of both Parties to achieve the ultimate objective of a political and
economic association between the European Community and its Member States and Chile founded on
greater political cooperation and progressive and reciprocal liberalization of all trade, with due allowance
for the sensitivity of certain products and in compliance with the rules of the World Trade Organization,
and on investment promotion and closer cooperation ;

MINDFUL of the terms of the Joint Solemn Declaration on political dialogue in which both Parties have
agreed on closer political dialogue to promote more intensive consultation on matter of mutual interest,
with a view to basing their relations on the above long-term aim,

HAVE DECIDED to conclude this Agreement :

TITLE I

NATURE AND SCOPE

Article 1

Basis of the Agreement

2 . To this end, the Agreement covers political
dialogue, trade and economic matters, cooperation and
other matters of mutual interest, its objective being to
forge closer relations between the Parties and their
respective institutions .

Respect for democratic principles and fundamental
human rights as set out in the Universal Declaration of
Human Rights is at the heart of both Parties ' domestic
and external policies and constitutes an essential element TITLE II
of this Agreement .

POLITICAL DIALOGUE

Article 3

1 . The Parties agree to institute regular political

Article 2 dialogue on bilateral and international matters of mutual

interest . Such dialogue shall be conducted in accordance

Nature and scope with the Joint Declaration, which shall form an integral

part of the Agreement .
1 . This Agreement shall be aimed at strengthening
existing relations between the Parties on the basis of
reciprocity and mutual interest, paving the way for the
progressive and reciprocal liberalization of trade,
ultimately leading to the establishment of a political and
economic association between the European Community 2 . The ministerial dialogue provided for in the Joint
and its Member States and Chile in conformity with the Declaration shall take place within the Council estab ­
rules of the World Trade Organization ( WTO ) and with lished by Article 33 of this Agreement or within other
due allowance for the sensitivity of certain products . agreed forums of an equivalent level .

Article 2

Nature and scope

2 . The ministerial dialogue provided for in the Joint
Declaration shall take place within the Council estab ­
lished by Article 33 of this Agreement or within other
agreed forums of an equivalent level .

No C 258 / 8 [ EN Official Journal of the European Communities 5 . 9 . 96

TITLE III

TRADE COOPERATION AND PREPARATION FOR

LIBERALIZATION OF TRADE

Article 4

Objectives

The Parties undertake to forge closer relations with the
aim of increasing and diversifying trade, preparing for
progressive and reciprocal liberalization of trade and
creating conditions conducive to the eventual estab ­
lishment of a political and economic association, in
conformity with WTO rules and with due allowance for
the sensitivity of certain products .

Article 5

Dialogue on trade and economic matters

( g ) cooperation and exchange of information, within the

Parties ' respective areas of responsibility on
transport, insurance and financial services ;

( h ) monitoring of restrictive practices ;

( i ) rules of origin which promote the use of regional

inputs with a view to encouraging integration .

Article 6

Cooperation on standardization, accreditation, certifi ­
cation, metrology and conformity evaluation

The Parties agree to cooperate on standardization,
accreditation, certification, metrology and conformity
evaluation . Such cooperation shall take the form in
particular of :

( a ) provision of technical assistance for Chile on stan ­

1 . The Parties undertake to hold regular dialogue on ( a ) provision
trade and economic matters, within the institutional dardization, accreditation,
framework established by Title VII of the Agreement, in metrology to develop an
order to meet the Agreement 's trade objectives and structures compatible :
prepare the ground for the eventual liberalization of
trade . — with international standards,

dardization, accreditation, certification and
metrology to develop an appropriate system and
structures compatible :

2 . The Parties shall agree on the areas to be covered
by trade cooperation without excluding any sector .

3 . Such cooperation shall in particular focus on the
following :

( a ) market access and liberalization of trade, the study

and establishment of programmes for the reciprocal
liberalization of trade ( timetable and structure of
negotiations, transitional periods, etc .);

Cb ) tariff and non-tariff barriers, quantitative restrictions

on imports and exports and measures having
equivalent effect : analyses, studies and management,
including quotas, administrative standards applied to
external trade, anti-dumping duties, safeguard
clauses, technical standards, health and plant health
legislation, mutual recognition of certification

systems, etc ;

( c ) the Parties ' tariff structure ;

( d ) compatibility of trade liberalization with WTO rules ;

( e ) identification of potential tariff reductions and elimi ­

nation of quasi-tariff measures ;

( f ) definition of sensitive products and products given

priority by the Parties ;

— with the basic requirements of health and safety

protection, plant and animal protection,
consumer protection and environmental conser ­
vation ;

( b ) negotiation of a mutual recognition framework
agreement once an appropriate level of technology
has been reached in the sectors concerned ;

( c ) cooperation between the Parties on technical
standards to facilitate market access .

Article 7

Customs cooperation

1 . The Parties shall promote customs cooperation,
acting within their respective areas of responsibility, with
a view to improving and consolidating the legal
framework for their trade relations .

A further objective of customs cooperation shall be to
strengthen the Parties ' customs arrangements and
improve their operation within the framework of interin ­
stitutional cooperation .

2 . Such cooperation may take the form in particular
of :

( a ) exchanges of information, taking into account the

need to protect personal data ;

5 . 9 . 96 EN Official Journal of the European Communities No C 258 / 9

( b ) development of new training techniques and coordi ­

nation of activities within the relevant international

organizations ;

( c ) exchanges of officials and senior personnel from

customs and tax departments ;

( d ) simplification of customs procedures ;

( e ) technical assistance .

3 . The Parties affirm their intent to give future
consideration, within the institutional framework estab ­
lished by this Agreement, to the conclusion of a customs
mutual assistance protocol .

Article 8

Temporary importation of goods

The Contracting Parties undertake to take account of
relief from duties and taxes on temporary importation
into their territory of goods covered international
agreements on such matters .

Article 9

Cooperation on statistics

The Parties agree to promote the approximation of stat ­
istical methods with a view to using, on a mutually
acceptable basis, statistics on trade in goods and services
and, in general, statistics in any area which lends itself to
statistical processing .

Article 10

Cooperation on intellectual property

1 . The Parties agree to cooperate on intellectual
property matters in order to promote trade in goods and
services, investment, technology transfer, dissemination
of information, cultural and creative activities and
related economic activities .

2 . For the purposes of this Article, intellectual
property shall in particular encompass copyright,
including copyright for computer programmes and
databases, and related rights, trade or service marks,
geographical indications, including designations of
origin, industrial designs and models, patents and inte ­
grated circuit topographies, data protection and
prevention of unfair competition as defined in Article

lObis of the Paris Convention for the Protection of

Industrial Property .

3 . The Parties agree to guarantee, within their
respective laws, regulations and policies, adequate and
effective protection of intellectual property rights in

accordance with the highest international standards laid
down in the Agreement on aspects of trade-related intel ­
lectual property rights ( Trips ) concluded in the
framework of the WTO, and, where necessary, to
consider strengthening it, for example by concluding an
agreement on the reciprocal protection and recognition
of geographical indications and designations of origin .

4 . Cooperation in this area may include technical
assistance between the Parties in the form of joint
programmes and projects .

5 . In the event of trade disputes connected with the
protection of intellectual property, the Parties may hold
consultations in order to settle any doubt or difficulty
relating to the application of their respective rules on the
protection of intellectual property rights .

6 . In research and other joint scientific activities
undertaken in the field of science and technology, the
Parties shall agree on the intellectual property rules to be
applied to their results .

Article 11

Cooperation on public procurement

1 . The Parties agree to cooperate to ensure, on a
reciprocal basis, open, non-discriminatory and trans ­
parent procedures for their respective government and
public sector procurement at central, federal, regional,
provincial and local level .

2 . In order to attain this objective, the Parties agree to
consider the possibility of concluding an agreement on
access in these sectors of procurement, generating trans ­
parent, fair conditions subject to clear complaint
procedures .

3 . Cooperation between the Parties in this area shall
include technical assistance in matters connected with the

Agreement on Government Procurement .

4 . The Parties shall consider the possibility of holding
annual consultations on this sector .

TITLE IV

ECONOMIC COOPERATION

Article 12

Objectives

1 . In the light of the achievements of the Framework
Agreement for Cooperation between the Community and

No C 258 / 10 UN Official Journal of the European Communities 5 . 9 . 96

Chile of December 1990, both Parties undertake, under
this Agreement, to consolidate and expand all areas of
economic cooperation by cultivating synergies in
productive activities, creating new opportunities and
increasing economic competitiveness .

2 . Economic cooperation between the Parties shall be
as broad-based as possible . No sector shall be excluded
from the outset, and account shall be taken of the
Parties ' respective priorities, mutual interests and areas
of responsibility .

3 . The Parties shall focus on cooperation which will
foster economic and social relations and networks
between companies ( trade, investment, technology,
information or communication systems ).

4 . Within the framework of this cooperation the
Parties shall promote the exchange of information which
will serve as a basis for the regular monitoring of macro ­
economic policies and balances and efficient market
operation .

5 . In view of the degree of liberalization achieved by
Chile in the area of services, investment and scientific,
technological and industrial cooperation, the Parties
undertake to make a special effort to expand and
consolidate cooperation in these areas .

6 . The need to conserve the environment and
ecological balances shall be taken into account by the
Parties in any economic cooperation measures they
undertake .

7 . Any measures sponsored by the Parties in this field
shall be guided by the principle of social development,
and the promotion of fundamental social rights in
particular .

Article 13

Industrial and business cooperation

1 . The Parties shall promote industrial and business
cooperation with the aim of establishing a climate
conducive to economic development taking account of
their mutual interests .

2 . Such cooperation shall focus in particular on :

( a ) increasing trade flows, investment, industrial coop ­

eration and technology transfer ;

( b ) supporting industrial modernization and diversifi ­
cation ;

( c ) identifying and eliminating obstacles to industrial

cooperation between the Parties by means of
measures which encourage respect for competition
laws and help gear industry to market requirements,
allowing for the participation and consultation of

operators ;

( d ) encouraging cooperation between economic
operators on both sides, particularly small and
medium-sized enterprises ( SME );

( e ) promoting industrial innovation by developing an

integrated and decentralized approach to coop ­
eration among operators on both sides ;

( f ) ensuring the overall consistency of measures which

may have a positive influence on cooperation
between businesses on both sides .

3 . Such cooperation, which shall be based on a
dynamic, integrated and decentralized approach, shall
take the from in particular of :

( a ) encouraging closer organized contracts between
businesses, particularly small and medioum-sized
enterprises ( SMEs ), and economic operators on both
sides which will provide them with an opportunity to
identify and exploit areas of mutual interest, paving
the way for increased trade, investment and
industrial and business cooperation projects in
general, particularly by promoting joint ventures ;

( b ) promoting business initiatives and cooperation
projects which shall be identified through closer
dialogue between Chilean and European operators '
networks ;

( c ) undertaking measures to support business coop ­
eration, notably regarding industrial quality policies
and industrial innovation, training and applied
research, development and technology transfer .

Article 14

Cooperation on services

1 . The Parties recognize the growing importance of
services for their economic development . To this end
they shall consolidate and step up cooperation in this
sector, within their respective areas of responsibility and
in accordance with the rules of the General Agreement
on Trade in Services ( GATS ).

5 . 9 . 96 EN Official Journal of the European Communities No C 258 / 11

2 . In terms of practical implementation the Parties
shall identify the priority sectors in this area in order to
ensure efficient use of available instruments .

Measures shall focus mainly on :

( a ) helping SMEs gain access to capital resources and

market technologies ;

( b ) promoting trade between the Parties and with the

markets of third countries ;

( c ) encouraging better and diversified productivity and

competitiveness in this sector ;

( d ) exchanging information on the rules, laws and regu ­

lations which govern trade in services ;

( e ) exchanging information on the procedure for
granting :

— licences and certificates to professional service

providers and

— recognition of professional qualifications .

( f ) developing the tourism sector, with a view to
improving the exchange of information and
know-how in order to promote a sustainable and
ordered development of the tourist amenity . To this
end human resources development and joint
operations in the tourist promotion and marketing
fields will be encouraged .

Article 15

Investment promotion

The Parties shall help create, within their respective areas
of responsibility, an attractive and stable environment for
reciprocal investment .

Such cooperation shall take the form inter alia of :

( a ) arrangements for information, identification and
dissemination relating to investment legislation and
opportunities ;

( b ) promoting the development of a legal environment

conducive to investment between the Parties ; if
necessary, Chile and the Community Member States
could conclude bilateral agreements to promote and
protect investment and bilateral agreements to
prevent double taxation ;

( c ) developing harmonized and simplified administrative

procedures ;

( d ) developing joint investment, in particular with SMEs

on both sides .

Article 16

Scientific and technical cooperation

1 . The Parties agree to cooperate in the field of
science and technology in areas of mutual interest,
taking account of their respective policies .

2 . The aims of such cooperation shall be :

( a ) to encourage exchanges of information and
know-how on science and technology, especially on
the implementation of policies and programmes ;

( b ) to promote sustainable relations between the two

Parties ' scientific communities ;

( c ) to foster innovation in Chilean and European busi ­

nesses ;

( d ) to promote technology transfer ;

3 . Cooperation shall take the form in particular of :

( a ) joint research projects in areas of mutual interest,

with the active participation of business where
appropriate ;

( b ) exchanges of scientists to promote research, project

preparation and high-level training ;

( c ) joint scientific meetings to promote the exchange of

information, encourage interaction and identify areas
where joint research might be undertaken ;

( d ) dissemination of results and development of links

between the public and private sectors ;

( e ) exchanges of know-how on standardization ;

( f ) evaluation of the activities concerned .

4 . In terms of practical implementation, the Parties
shall encourage their respective higher education insti ­
tutions, research centres and industrial sectors, in
particular SMEs, to play an active role .

5 . The Parties shall agree, without excluding any
sector from the outset, on the areas, scope, nature and
priorities of this cooperation, by establishing a multi ­
annual programme which can be adapted to circum ­

stances .

Article 17

Energy cooperation

Cooperation between the Parties shall focus on fostering
closer links between their economies in the sectors of

renewable and non-renewable, conventional and

No C 258 / 12 \ EN \ Official Journal of the European Communities 5 . 9 . 96

non-conventional energies, and energy-saving techno ­ the maintenance of unrestricted access to markets on a
logies . commercial and non-discriminatory basis .

Cooperation shall in particular take the following forms :

Article 19

( a ) exchanges of information in all appropriate forms,

including the development of databanks to be shared
by economic operators on both sides, training and
joint conferences ;

( b ) technology transfer ;

( c ) preparatory studies and project implementation by

the relevant institutions of both Parties ;

( d ) the participation of economic operators from the two

Parties in joint technological development or infra ­
structure projects ;

( e ) where appropriate the conclusion of specific
agreements in key areas of mutual interest ;

( f ) aid for Chilean institutions dealing with energy
matters and the formulation of energy policy ;

( g ) technical training programmes .

Article 18

Cooperation on transport

1 . Cooperation in this area shall be aimed essentially

at :

( a ) support for the modernization of Chile 's transport

systems ;

( b ) efforts to increase personal mobility, the movement

of goods and access to the transport market ;

( c ) promotion of operating standards .

2 . Cooperation shall take the from in particular of :

( a ) exchanges of information on respective transport
policies and on other topics of mutual interest ;

( b ) training programmes for economic operators and

senior public officials ;

( c ) exchange of information on the installation of moni ­

toring stations forming part of the infrastructure of
the Global Navigation Satellite System ( GNSS ).

3 . Acting within their respective areas of responsi ­
bility, laws and international undertakings, the Parties
shall look at all aspects relating to international maritime
transport services to ensure that they do not hamper the
mutual expansion of trade, paying particular attention to

Cooperation on the information society and telecom ­

munications

1 . The Parties recognize that advanced information
and communication technologies are a key sector in
modern society and are vital to economic and social
development and the smooth transition to an information
society .

2 . Cooperation between the Community and Chile in
this area shall focus in particular on :

( a ) dialogue on all aspects of the information society

including telecommunications policy ;

( b ) exchanges of information and any technical
assistance required on regulations and standard ­
ization, conformity testing and certification for
information and telecommunication technologies ;

( c ) dissemination of new telecommunications and
information technology and development of new
advanced communication, services and information
technology facilities ;

( d ) promoting and undertaking joint research and tech ­

nological or industrial development projects in the
field of new information, communication, telematics
and information society technologies ;

( e ) providing an opportunity for Chilean institutions to

take part in pilot projects and Community
programmes, especially in the regional field, under
the arrangements pertaining to the areas concerned ;

( f ) interconnection and interoperability of telematic
networks and services in the Community and Chile .

Article 20

Cooperation on environmental protection

1 . The Parties undertake to develop cooperation to
protect, improve and prevent degradation of the
environment, control pollution and encourage the
rational use of natural resources, in the interests of
sustainable development .

The emphasis shall be on conservation of ecosystems, the
integrated management of natural resources, the

5 . 9 . 96 | EN | Official Journal of the European Communities No C 258 / 13

environmental impact of economic activities, the urban
environment and depollution programmes .

2 . Cooperation shall focus on :

( a ) projects to strengthen environmental structures and

policies in Chile ;

( b ) exchange of information and know-how covering

various areas including the Parties ' respective rules
and standards ;

( c ) environmental training and education ;

( d ) technical assistance and the establishment of joint

research programmes .

Article 21

Cooperation on the agricultural and rural sector

1 . The Parties shall promote mutual cooperation in
the agricultural and rural sector . To this end they shall
examine :

geared towards combating extreme poverty and generally
assisting the most deprived sections of the community .

2 . Such cooperation may take the form of pilot
programmes in the following areas :

( a ) job creation and vocational training ;

( b ) management and administration of social services ;

( c ) rural development and housing and regional
planning ;

( d ) health and primary education ;

( e ) support for the grassroots organizations in civil
society ;

( f ) programmes and projects to create business and

employment opportunities and thereby help to
combat poverty ;

( g ) programmes to improve the quality of life, notably of

the most deprived sections of the community .

( a ) measures to promote mutual trade in agricultural Article 24

products ;

( b ) environmental health and plant health measures and

other related aspects, taking account of the legis ­
lation in force for both parties, in compliance with
WTO rules .

2 . The Parties shall take measures such as the mutual

exchange of information, technical assistance and
scientific and technological experiments to promote agri ­
cultural development cooperation .

TITLE V

OTHER AREAS OF COOPERATION

Article 22

Objectives and scope

The Parties will maintain cooperation on social devel ­
opment, public administration, information and
communication, training and regional integration with
particular emphasis on areas likely to contribute to the
process of cooperation and to the eventual establishment
of a political and economic association between the
Parties .

Article 23

Financial and technical cooperation and cooperation on

social development

1 . The Parties reaffirm the importance of their
financial and technical cooperation, which should be

Cooperation on public administration and regional inte ­

gration

1 . The Parties shall support cooperation on public
administration to promote the adjustment of Chilean
administrative systems to open trading in goods and
services with Europe .

2 . In this context the Parties shall work together to
promote the administrative changes deriving from Latin
American integration .

3 . To this end, in support of Chile 's objectives of
administrative modernization, decentralization and
regionalization, the Parties shall encourage cooperation
within all institutions, drawing lessons from the
instruments and policies of the European Community .

4 . Cooperation chall be undertaken in particular
through :

( a ) technical assistance to Chilean policy-making and

executive bodies, including contacts between staff of
the European institutions and their Chilean

counterparts ;

( b ) regular exchange of information taking whatever

form is appropriate, including the use of computer
networks ; personal data protection shall be
guaranteed in all areas where data are to be
exchanged ;

( c ) transfers of know-how ;

( d ) preliminary studies and implementation of joint
projects ;

No C 258 / 14 EN Official Journal of the European Communities 5 . 9 . 96

( e ) training and institutional support .

Article 25

Inter-institutional cooperation

1 . The Parties agree on the need to promote closer
administrative cooperation between the institutions
concerned .

2 . Such cooperation shall be as broad-based as
possible and shall focus in particular on :

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

2 . The Parties shall place emphasis on measures
designed to create permanent links between Community
and Chilean specialized agencies which will encourage
the pooling of technical resources and exchanges of
know-how .

3 . These projects hall be undertaken mainly through :

( a ) agreements between educational and training insti ­

tutions ;

( b ) meetings between bodies responsible for education

and training .

computerized communication networks ; 4 . A further objective of cooperation in this area shall

be the conclusion of sectoral agreements on education,
( b ) advice and information ; training and youth-related matters .

( c ) transfer of know-how .

Article 28

Cooperation on combating drug trafficking
Article 26

Cooperation on communication, information and culture

1 . In view of Chile 's very close cultural ties with
Community Member States, the Parties will intensify
cooperation in this area and on communication and
information .

2 . Within the Parties ' respective areas of responsi ­
bility, the aim of such cooperation shall be to promote :

( a ) meetings between senior information and communi ­

cation representatives and, where appropriate,
technical assistance ;

( b ) greater exchanges of information on matters of
mutual interest ;

1 . Within their respective areas of responsibility, the
Parties shall coordinate their efforts and intensify their
cooperation to prevent drug abuse and illegal trafficking
in drugs, the misuse of chemical precursors and the laun ­
dering of profits from drug-trafficking . To this end the
Parties shall coordinate their cooperation activities and
areas at bilateral level and in international organizations
and forums .

2 . Such cooperation, which shall make use of
specialized agencies, shall focus on :

( a ) projects to train, educate, treat and rehabilitate drug

addicts and programmes to prevent the illegal
consumption of drugs ;

( b ) joint research programmes ;
( c ) organization of cultural events ;

( d ) activities — studies and training schemes — aimed at

protecting the cultural heritage .

3 . The Parties agree to promote the broadest possible
cooperation in the audiovisual and press sector .

Article 27

Cooperation on training and education

1 . The Parties shall identify, within their respective
areas of responsibility, ways of improving primary
education, youth training, vocational training and inter ­
university and inter-business cooperation . Particular
emphasis shall be given to vocational training for the
most deprived sections of the community .

( c ) training programmes for public officials on
preventing and controlling drug trafficking, money
laundering and on monitoring trade in essential
chemical precursors etc ;

( d ) exchange of relevant information and adoption of

appropriate measures to combat drug trafficking and
money laundering, in the framework of mulitilateral
agreements in force and the recommendations of the
Financial Action Task Force on Money Laundering
( FATF );

( e ) prevention of the diversion of chemical precursors

and other essential substances used for the illegal
production of drugs and psychotropic substances .
This prevention is based on the 1988 United Nations
Convention, the principles adopted by the

5 . 9 . 96 | EN 1 Official Journal of the European Communities No C 258 / 15

Community and the relevant international authorities
and on the recommendations of the Chemical Action

Task Force ( CATF ).

3 . The Parties may agree to extend such cooperation
to other areas .

2 . The Parties shall call on the European Investment
Bank to step up its activities in Chile in accordance with
its own procedures and financing criteria .

TITLE VII

INSTITUTIONAL FRAMEWORK

Article 29 Article 33

Cooperation on consumer protection

1 . The Parties agree that cooperation in this area
should be aimed at refining their consumer protection
systems and seeking, within their respective legislations,
to make their systems compatible .

2 . Cooperation shall focus mainly on :

( a ) exchange of information and experts ;

( b ) organization of training schemes and provision of

technical assistance .

Article 30

1 . A Joint Council of the Framework Cooperation
Agreement, hereinafter referred to as the Joint Council,
is hereby established . It shall supervise the implemen ­
tation of this Agreement and shall meet at ministerial
level periodically and whenever circumstances require .

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

3 . The Council may also make appropriate proposals
by agreement with both Parties .

In carrying out its duties, the Joint Council shall be
responsible in particular for making recommendations
which contribute to the ultimate objective of political
and economic association .

Cooperation on fishing Article 34

The Parties agree that, acting in compliance with inter ­
national trade and environmental undertakings, coop ­
eration in this area shall take the form of a regular
dialogue to examine the possibility of establishing closer
cooperation in the fisheries sector which could lead to a
fisheries agreement .

1 . The Joint Council shall be composed of members
of the Council of the European Union and Members of
the European Commission on the one hand, and Chilean
representatives, on the other .

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

3 . The Council shall be chaired in turn by a
Article 31 Community representative and a Chilean representative .

Triangular cooperation
Article 35
The Parties, acknowledging the value of international 1 . The Joint Council shall be assisted in the
cooperation for promoting equitable and sustainable performance of its duties by a Joint Committee
development, agree to encourage triangular cooperation composed of members of the Council of the European
programmes mutual interest with . other countries in areas and sectors of Union the one and hand Members, and of of Chilean the European representatives Commission, on the, on

other .

TITLE VI

MEANS

Article 32

1 . In order to help attain the cooperation aims set out
in this Agreement, the Parties undertake to make
available, within the limit of their abilities and through
their own channels, the appropriate resources, including
financial resources .

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

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

No C 258 / 16 EN Official Journal of the European Communities 5 . 9 . 96

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

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

( a ) foster trade relations in accordance with the
objectives of this Agreement and in accordance with
the provisions of Title III ;

( b ) exchange opinions on future cooperation
programmes and the resources available for their
implementation and on any matter of mutual interest
which relates to progressive and reciprocal liberal ­
ization of trade ;

( c ) submit to the Joint Council proposals made by the

Subcommittee on Trade with the aim of cultivating
preparations for the progressive and reciprocal
liberalization of trade and proposals intended to
bring about closer cooperation in this area ; and

( d ) in general, make proposals to the Joint Council

which will contribute to the ultimate aim of an

EU-Chile political and economic association .

Article 36

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

Article 38

Consultation

Within their respective areas of responsiblity, the Parties
undertake to hold consultations on any matter covered
by this Agreement .

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

TITLE VIII

FINAL PROVISIONS

Article 39

Definition of the Parties

For the purposes of this Agreement, ' the Parties ' shall
mean the Community, its Member States or the
Community and its Member States, within their
respective areas of responsibility, as defined in the Treaty
establishing the European Community, on the one hand,
and Chile, on the other .

Article 40

Future developments

The Parties may agree to extend the Agreement with the

composition, objectives and aim of broadening and supplementing the scope and

level of cooperation in accordance with their respective
legislation, by concluding agreements on specific sectors
or activities in the light of the experience gained during
Article 37 its implementation .

1 . The Parties agree to establish a Joint Subcommittee
on Trade which shall ensure that the trade-related
objectives set out in Article 5 of the Agreement are
fulfilled and shall undertake the preparatory work for
the progressive and reciprocal liberalization of trade .

2 . The Joint Subcommittee on Trade shall be
composed of members of the Council of the European
Union and Members of the European Commission, on
the one hand, and Chilean representatives, on the other .

3 . It may commission any studies or technical analyses
which it deems necessary .

4 . The Joint Subcommittee on Trade shall report at
least once a year to the Joint Committee set up under
Article 35 of the Agreement on the development of its
work, and shall make proposals regarding the subsequent
liberalization of trade .

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

Article 41

Territorial application

This Agreement shall apply to the territories in which the
Treaty establishing the European Community is applied
under the conditions laid down in that Treaty, on the
one hand, and to the territory of the Republic of Chile,
on the other .

Article 42

Duration and entry into force

1 . This Agreement shall be valid indefinitely .

2 . The Parties shall determine the suitability and
timing of transition to political and economic association
in the light of progress made under the Agreement in
accordance with their own procedures and in the light of
the work carried out and the proposals made within the
institutional framework of this Agreement .

5 . 9 . 96 EN Official Journal of the European Communities No C 258 / 17

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

4 . Notification shall be sent to the Secretariat-General
of the Council of the European Union which shall be the
depositary for the Agreement .

5 . On its entry into force the Agreement shall replace
the Framework Agreement for Cooperation between the
European Community and the Republic of Chile signed
on 20 December 1990 .

Article 43

Non-execution

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

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

In this selection of measures, priority must be given to
those which least disturb the functioning of this

Agreement . These measures shall be notified immediately
to the Joint Committee and shall be the subject of
consultation in the Committee if the other Party so

requests .

2 . The Parties agree that the term ' cases of special
urgency ' in paragraph 1 of this Article means a case of
material breach of the Agreement by one of the Parties .
A material breach of the Agreement consists of :

( a ) repudiation of the Agreement not sanctioned by the

general rules of international law ;

( b ) violation of the essential elements of the Agreement

referred to in Article 1 .

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

Article 44

Authentic text

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

ANNEX /

JOINT DECLARATION ON POLITICAL DIALOGUE BETWEEN THE EUROPEAN UNION

AND CHILE

1 . Preamble

THE EUROPEAN UNION AND CHILE,

Conscious of their common cultural heritage and the deep historical, political and economic ties which
unite them ;

Guided by their attachment to democratic values, and reiterating the fact that respect for human rights, the
freedom of the individual and the principles of the rule of law, as the foundations of a democratic society,
lie at the root of their domestic and foreign policies and of their joint undertaking ;

Wishing to consolidate international peace and security in accordance with the prinicples set out in the
United Nations Charter, and determined to apply the principles of preventing and peacefully resolving
international disputes ;

No C 258 / 18 fENl Official Journal of the European Communities 5 . 9 . 96

Declaring their interest in using regional integration to promote sustainable and harmonious development
for their inhabitants, using as a foundation the principles of social progress and solidarity between their
members ;

Taking as a basis the special ties established by the Framework Cooperation Agreement between the
European Community and Chile ;

Have decided to give relations between them a long-term perspective .

2 . Aims

Mindful of the conclusions adopted by the Council of the European Union on 17 July 1995 in the wake of
the communication on the strengthening of relations between the European Union and Chile, the Parties
reiterate their intention to enter into an agreement which will express their political will to achieve their
ultimate goal of political and economic association .

To that end, the Parties ' have agreed to step up political dialogue in order to ensure that there is closer
consultation in areas of common interest, primarily through coordination of the Parties ' positions in the
appropriate multilateral forums .

Such dialogue could include other participants from the region or, where possible, be conducted simul ­
taneously with other established forms of political dialogue .

3 . Procedures

The Parties have agreed that political dialogue on bilateral and international issues of common interest
should take the form of :

( a ) periodic meetings between the President of Chile and the highest authorities of the European Union ;

the Parties should decide on the procedure to be used ;

( b ) periodic meetings between Foreign Ministers ; the Parties should decide on the procedure to be used ;

( c ) periodic meetings between other ministers to discuss matters of common interest in cases in which the

Parties consider that such meetings will result in closer relations ;

( d ) periodic meetings between senior officials of both Parties .

4 .

The European Union and Chile agree that this Joint Declaration should signal the beginning of closer and
deeper relations .

ANNEX II

JOINT DECLARATION ON THE DIALOGUE AT PARLIAMENTARY LEVEL

The Parties support the initiative put forward by the European Parliament and the Chilean Parliament to
institutionalize a dialogue between them and state their willingness to foster the establishment and devel ­
opment of this parliamentary dialogue .

5 . 9 . 96 EN Official Journal of the European Communities No C 258 / 19

ANNEX III

JOINT DECLARATION ON INTER-REGIONAL ECONOMIC COOPERATION

1 . By common accord the Parties will seek ways of linking their methods of preparing for the liberal ­
ization of trade with the methods they employ in connection with other individual countries or regional
entities, and particularly with the Southern Cone Common Market ( Mercosur ). Such activities will depend
on how regional integration has progressed and on the degree to which they help to achieve the aims of
the Agreement .

2 . In that connection, the Parties will examine the possibility of Chile becoming involved in the coop ­
eration programmes provided for in the Agreement between the European Community and its Member
States and the Southern Cone Common Market and its member countries, and of Mercosur becoming
involved in the cooperation programmes provided for in this Agreement . Procedures will be determined on
a case-by-case basis by all interested Parties .

Proposal for a Council Decision on the Exchange of Letters between the European Community
and Chile concerning the provisional application of certain provisions of the Framework Coop ­
eration Agreement in preparation for the eventual establishment of a political and economic
association between the European Community and its Member States, of the one part, and the

Republic of Chile, of the other part

( 96 / C 258 / 06 )

COM ( 96 ) 259 final — 96 / 01 5 0 ( ACQ

( Submitted by the Commission on 12 June 1996 )

THE COUNCIL OF THE EUROPEAN UNION, HAS DECIDED AS FOLLOWS :

Having regard to the Treaty establishing the European
Community, and in particular Articles 113 thereof, in
conjunction with the first sentence of Article 228 ( 2 )
thereof,

Having regard to the proposal from the Commission,

Whereas the Framework Cooperation Agreement in
preparation for the eventual establishment of a political
and economic association between the European
Community and its Member States, of the one part, and
the Republic of Chile, of the other part, was signed by
the Community and its Member States on . . .,

Whereas the European Community and Chile undertook
to establish procedures for the early application of
certain provisions of that Agreement which deal with
trade cooperation between the parties and the institu ­
tional framework for such cooperation,

Whereas the provisional application of the provisions in
question will facilitate and promote closer trade relations
between the European Community and Chile, pending
the completion of the procedures required to bring the
Agreement into force,

Article 1

The attached Exchange of Letters between the
Community and Chile, which provides for the
provisional application of certain provisions of the
Framework Cooperation Agreement in preparation for
the eventual establishment of a political and economic
association between the European Community and its
Member States, of the one part, and the Republic of
Chile, of the other part, is hereby approved on behalf of
the European Community .

Article 2

The Commission shall represent the Community within

the bodies referred to in Articles 35 and 37 of the

Agreement .

Article 3

This Decision shall be published in the Official Journal of

the European Communities .