CELEX: 51992PC0179(02)
Language: en
Date: 1992-05-04
Title: Proposal for a COUNCIL DECISION approving the Agreement between the European Economic Community and the European Atomic Energy Community and Lithuania for the purpose of final conclusion by the Commission on behalf of the European Atomic Energy Community

COMMISSION OF THE EUROPEAN                            COMMUNITIES
                                               C0M(92) 179 final
                                               Brussels, 4 May 1992
                             Proposal for a
                            COUNCIL DECISION
      on the conclusion by the European Economic Community of an
       Agreement between the European Economic Community and the
           European Atomic Energy Community and Lithuania on
             trade and commercial and economic cooperation
                             Proposal for a
                            COUNCIL PEC IS ION
    approving the Agreement between the European Economic Community
                and the European Atomic Energy Community
          and Lithuania for the purpose of final conclusion by
   the Commission on behalf of the European Atomic Energy Community
                     (presented by the Commission)
 ---pagebreak---                                                                     z
                         EXPLANATORY MEMORANDUM
1. The attached proposal for a Council Decision (I) is the legal
instrument for the conclusion of the Agreement on Trade and Commercial
and Economic Cooperation between the European Economic Community and
the European Atomic Energy Community and the Republic of Lithuania.
2. The attached proposals Council (II) and Commission (III) Decisions
constitute the legal instrument for the conclusion of the Agreement on
Trade and Commercial and Economic Cooperation between the European
Economic Community and the European Atomic Energy Community and the
Republic of Lithuania on behalf of the European Atomic Energy
Community.
3. Exploratory talks between Commission and Lithuanian experts took
place between November 1991 and January this year in Brussels.
4. On the basis of directives adopted by the Council on 4 November 1991
there were a number of informal meetings between Community and
Lithuanian representatives, which resulted in a formal negotiating
session in Brussels on 31 February this year, at which the Agreement
was initialled.
Regarding the initialled text, which is attached to the proposal for a
Decision, the following should be noted:
(a)  it contains no financial protocol or financial undertakings;
(b)  the respect for democratic principles and human rights is an
     essential aspect of the Agreement (Article 1 ) ;
(c)  ECSC products and textile and clothing products falling within
     Section XI of the Harmonized System are not covered by the
     Agreement (Article 3 ) ;
(d)  the Community and Lithuania reaffirm their undertaking to accord
     each other most-favoured-nation treatment under the GATT, and the
     Community also undertakes to abolish quantitative restrictions
     specific to Lithuania (Article 8 ) ;
(e)  as regards commercial cooperation, Lithuania also undertakes to
     guarantee effective, suitable protection of intellectual and
     commercial property and to accede to the relevant international
     conventions (Article 13(3));
(f)  economic cooperation is focused on the sectors listed non-
     exhaustively in Article 15 with a view to establishing economic
     links and increasing trade between the two parties: it is also
     designed to support structural changes in the Lithuanian economy;
(g)  the Community undertakes to support Lithuania's applications to
     accede to international organizations and conventions
     (Article 17);
(h)  Article 18 sets up a Joint Committee and lays down its
     responsibilities: the Committee will monitor the proper working of
     the Agreement and recommend measures that it deems appropriate to
     achieve the aims of the Agreement.
 ---pagebreak---                                                               3
                                   - 2 -
(i)   the Agreement is concluded for an initial period of ten years,
      tacitly renewable each year: it may be denounced by means of the
      usual procedure, and suspended with immediate effect, totally or
      partially, should there be serious infringement of essential
      provisions of the Agreement.
5. Since Articles 113 and 235 of the Treaty provide the legal basis for
the Agreement for the EEC, Parliament must be consulted.
6. The two Communities (EEC and EAEC) have different procedures for the
conclusion and signing of agreements.
Signing: The Council, acting for the EEC, authorizes the competent
persons to sign the Agreement.
The Commission of the European Communities, acting for the EAEC,
authorizes the competent persons to sign the Agreement.
Conclusion:
   the Council, having consulted Parliament, concludes the Agreement on
   behalf of the EEC in accordance with Articles 113 and 235 of the EEC
   Treaty by adopting the Decision set out in I;
-   the Council approves the Agreement on behalf of the European Atomic
   Energy Community in accordance with Article 101, second paragraph,
   of the EAEC Treaty (the Agreement then being concluded by the
   Commission) by adopting the Decision set out in II;
7. It is proposed to sign a joint declaration on political dialogue
when the Agreement is signed.
8. The Council is asked to adopt the attached proposals for
Council Decisions on the conclusion of an Agreement on Trade and
Commercial and Economic Cooperation between the Community and
Lithuania.
 ---pagebreak---                                   U)
                               PROPOSAL FOR A
                              COUNCIL DECISION
                             of
       on the conclusion by the European Economic Community of an
        Agreement between the European Economic Community and the
            European Atomic Energy Community and Lithuania on
              trade and commercial and economic cooperation
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard    to the Treaty establishing      the European    Economic
Community, and in particular Articles 113 and 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas the conclusion of the Agreement between the European Economic
Community and the European Atomic Energy Community and on trade and
commercial and economic cooperation is necessary for the achievement of
the Community's objectives in the field of external economic relations;
whereas this Agreement should be approved on behalf of the European
Economic Community;
Whereas it appears that certain measures of economic cooperation
provided for by the Agreement exceed the powers of action provided for
in the Treaty, and in particular those specified in the field of the
common commercial policy,
HAD DECIDED AS FOLLOWS:
                                 Article 1
The Agreement between the European Economic Community and the European
Atomic Enegy Community and Lithuania on trade and commercial and
economic cooperation is hereby approved on behalf of the European
Economic Community.
The text of that Agreement is attached to this decision.
                                 Article 2
The President of the Council shall give the notification provided for in
Article 21 of the Agreement.
 ---pagebreak---                                                                 J"
                               Article 3
The Commission assisted by representatives of the Member States, shall
represent the Community in the joint committee set up by Article 18 of
the Agreement.
Done at Brussels,
                                      For the Council
                                       The President
 ---pagebreak---                                      (II)
                      Proposal lor a Council Decision
     approving the Agreement between the European Economic Community
                 and the European Atomic Energy Community
           and Lithuania for the purpose of final conclusion by
    the Commission on behalf of the European Atomic Energy Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Atomic Energy
Community, and    in particular the second paragraph of Article       101
thereof,
Having regard to the proposal    from the Commission,
Whereas the Commission has negotiated the Agreement between the European
Economic   Community  and   the European Atomic     Energy Community, and
Lithuania in accordance with the directives of the Council, and proposes
to conclude the said agreement on behalf of the European Atomic Energy
Community.
Whereas approval should be given for conclusion by the Commission of the
said agreement on behalf of the said Community,
HAS DECIDED AS FOLLOWS :
                                 Sole Article
The conclusion by the Commission of the Agreement between the European
Economic   Community  and   the European Atomic     Energy Community, and
Lithuania on behalf of the European Atomic Energy Community is hereby
approved.
The text of the agreement   ir. attached to this Decision.
Done at Brussels
for the Council
The President
 ---pagebreak---                                    (-aO                                1
                                    Draft
                             COLUISSION DECISION
                              of
    concerning the conclusion on behalf of the European Atomic Energy
         Community of the Agreement between the European Economic
            Community and the European Atomic Energy Community
                 and Lithuania on trade and commercial and
                            economic cooperation
THE COMMISSION OF THE EUROPEAN COMMUNITIES,    HAD DECIDED AS FOLLOWS
Having regard to the Treaty establishing the European Atomic Energy
Community, and in particular the second paragraph of Article 101
thereof,
Whereas the Agreement between the European Economic Community and the
European Atomic Energy Community and Lithuania on trade and commercial
and econom ic cooperat ion was signed on
Whereas by Decision of                     the Council approved the said
Agreement for the purposes of conclusion by the Commission on behalf of
the European Atomic Energy Community;
Whereas the said Agreement should be concluded on behalf of the European
Atomic Energy Community.
                                 Article 1
The Agreement between the European Economic Community and the European
Atomic Energy Community and Lithuania on trade and commercial and
economic cooperation is hereby concluded on behalf of the European
Atomic Enregy* Community.
 ---pagebreak---                                 Article 2
                                                                    if
the President of the Commission shall give the notification provided for
in Article 21 of the Agreement on behalf of the European Atomic Energy
Community.
Done at Brussels,
                                        For the Commission
                                          The President
                                          Jacques DELORS
 ---pagebreak---                    GROUPE
                                                                            9
              EUROPE ORIENTALE         _ 1 -
                 DOC. SEANCE    *itf
                                            Brussels, 31 January 199^
                              DRAFT AGREEMENT
between the European Economic community and the Republic of Lithuania on
trade and commercial and economic cooperation
THE EUROPEAN ECONOMIC COMMUNITY
AND
THE EUROPEAN ATOMIC ENERGY COMMUNITY,
hereinafter together called the "community", of the one part, and
THE REPUBLIC OF LITHUANIA,
hereinafter called "Lithuania", of the other part,
CONSIDERING the importance of establishing and expanding trade links
between the Community and Lithuania,
DESIROUS of creating favourable conditions for a substantial and
harmonious development and diversification of trade and the promotion of
commercial and economic cooperation in areas of mutual interest on the
basis of equality, non-discrimination, mutual benefit and reciprocity,
AWARE of the particular importance of foreign trade and other forms of
international economic cooperation for the economic and social
development of each of the Contracting Parties,
AWARE of the importance of giving full effect to all the provisions and
principles of the CSCE process, and in particular those set out in the
Helsinki Final Act, the concluding documents of the Madrid, Vienna and
Copenhagen meetings, and those of the Charter of Paris for a new Europe,
particularly with regard to the rule of law, democracy and human rights,
as well as those of the Bonn CSCE Conference on Economic Co-operation,
RECOGNIZING the importance of guaranteeing the rights of ethnic and
national groups and -minorities, in accordance with the undertakings made
within the context of the CSCE,
AWARE of the importance of strengthening their democratic institutions
and of supporting the. process of economic reform in Lithuania,
BELIEVING that a further impetus should be given to the trading and
economic relationship between the Community and Lithuania by
establishing contractual links which will contribute to progress towards
the objective of an association agreement in due course, when conditions
are met, and to further development of relations between them.
TAKING INTO ACCOUNT the favourable implications for trade and economic
cooperation between the Contracting Parties of reform under way in
T,3.thuani* ,
                                                                         i/
 ---pagebreak---                                                              1 v3
                                     -2-
HAVE DECIDED to conclude this Agreement and to this end have designated as
their Plenipotentiaries:
THE EUROPEAN ECONOMIC COMMUNITY:
THE fcUKOPEAN ATOMIC bNERGY COMMUNITY:
THE REPUBLIC OF LITHUANIA:
WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
                                   TITLE I
                                   General
                                  Article 1
Respect for the democratic principles    and human rights established by the,
Helsinki. Final Act and the Charter of    Paris for a New Europe inspire^the
domestic and external policies of         the Community and Lithuania and^/0
constitute^an essential element of the   present agreement.                'vt/Ul
                                  Article 2
                                                                          &
Within the framework of their respective- laws and          regulations, the
contracting Parties undertake to facilitate and promote:
-  the harmonious development and diversification of trade between them;
-  the development of various types of commercial and economic cooperation.
They therefore confirm their resolve to consider favourably, each for its
own part, suggestions made by the other Party with a view to attaining
these aims.
 ---pagebreak---                                                                 44
                                       -3-
                                    TITLE II
                       Trade and commercial cooperation
                                   Article 3
1. This Agreement shall apply to trade in. all products originating in the
Community and in Lithuania with the exception of products covered by the
Treaty establishing the European coal and steel Community and of the
textiles and apparel covered by Section XI of the Harmonized System.
2. The provisions of this Agreement may be supplemented if necessary by
sectoral agreements or arrangements concluded between the Community and
Lithuania. In particular, a separate agreement for textile products will be
negotiated.
                                   Article 4
Unless otherwise specified in this Agreement, trade and other commercial
cooperation between the Contracting Parties shall be conducted in
accordance with their respective regulations.
                                   Article 5
1. The Contracting Parties shall accord       each other   most-favoured-nation
treatment in all matters regarding:
-   customs duties and charges of any kind imposed on or in connection with
    importation or exportation,
-   the method of levying such duties and charges,
-   all   rules  and   formalities    in connection     with   importation   and
   exportation,    including provisions     relating   to customs clearance,
   transit, warehousing and transhipment,
-   taxes and other internal     charges   levied  directly  or   indirectly  on
   imported products,
-  methods of payment and the transfer of such payments,
-   the regulations affecting 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 accorded to adjacent countries      in order to facilitate
         frontier traffic;
(b)      advantages accorded with the aim of creating a customs union or a
         free trade area or pursuant to the creation of such a union or
         area;
;c)      advantages accorded to particular couutriot, i;i accordance with the
         General Acr^er^nt on Tariffs and Tr?de ?v3 rt>or *nternation^l
         arrangements in favour of developing countries.
      -4,                                                            si/I O.Jf
 ---pagebreak---                                                             *L
                                     -4-
                                  Article 6
Without prejudice to the rights and obligations stemming from international
conventions on the temporary admission of goods which bind both contracting
Parties, the Contracting Parties shall furthermore grant each other
i.ecipiocal extsiapcion 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 only one of them.
Account shall be taken of the conditions under which the obligations
stemming from such a convention have been accepted by the Contracting Party
in question.
                                  Article 7
Lithuania shall grant imports of products originating in the Community
treatment which is non-discriminatory in relation to products originating
in other countries, as regards the application of quantitative restrictions A iri
the granting of licences and access to the foreign currency needed to pay j~-j(
for such imports.                                                            \J
                                  Article 8
1. Without prejudice to Article *fcv each of the Contracting Parties shall-^V^L
grant imports of products originating in the other the highest degree of
liberalization generally extended to third countries. To that end, the
specific quantitative restrictions applying to imports from Lithuania into
the Community shall be eliminated.
2. For the purposes of this Agreement, "specific quantitative restrictions"
shall mean those quantitative restrictions applied by the Community to
imports originating in Lithuania under Regulation (EEC) No 3420/83, which
concerns products other than those to which quantitative restrictions are
applied under Regulation (EEC) No 288/82.
                                  Article 9
The Parties shall inform each other of any changes in their tariff or
statistical nomenclature or of any decision taken in accordance with the
procedures in force concerning the classification of products covered by
this Agreement.
                                 Article 10
Goods shall be traded between the Contracting Parties at market-related
prices.
                                 Article 11
1. The Contracting Parties shall consult each other if any product is being
imported into the territory of one of them in such increased quantities or
on such terms as to cause or threaten to cause serious injury to domestic
producers of like or directly competing products.
                                                                  AMP, J
 ---pagebreak---                                                                  13>
                                      -5-
2. The Contracting Party claiming serious injury or threat thereof shall
request consultations by notification in writing and shall provide the
other Party with all the relevant information required for a detailed
examination of the situation.
3. The consu.1 tatjons requested pursu-nt tc *---r^c-or>h 3 r}^U    be held ^-ith a
view to seeking mutually satisfactory solutions and with due       regard for the
fundamental aims of the Agreement; they shall be completed         not later than
30 days from the date of notification of the request                by the Party
concerned, unless the Parties agree otherwise.
4. If, as a result of such consultations, it is agreed that the situation
referred to in paragraph 1 exists, exports shall be limited or such other
action taken, possibly with regard to the price at which these exports are
sold, as will prevent or remedy the injury.
5. If, following action under paragraphs 1 to 4, agreement is not reached
between the Contracting Parties, the Contracting Party which requested the
consultations shall be free to restrict the imports of the products
concerned to the extent and for such time as is necessary to prevent or
remedy the injury. The other Contracting Party shall then be free to
deviate from its obligations towards the first Party in respect of
substantially equivalent trade.
6. In critical circumstances, where delay would cause damage difficult to
repair, such preventive or remedial action may be taken provisionally
without prior consultation, provided consultations are held immediately
after such action is taken.
7. In the selection of measures under this Article, the Contracting Parties
shall give priority to those which cause the least disturbance to the
functioning of this Agreement.
8. Where necessary the Contracting Parties may hold consultations to
determine when the measures adopted pursuant to paragraphs 4 to 6 shall
cease to apply.
                                  Article 12
1. This Agreement shall not preclude prohibitions or restrictions on
imports, exports or goods in transit justified on grounds of public
morality, public policy or public security, the protection of life and
health of humans, animals or plants, the protection of industrial,
commercial and intellectual property, or rules relating to gold or silver
or imposed-for the protection of national treasures of artistic, historic
or archaeological value.
such prohibitions and restrictions must not, however, constitute a means of
arbitrary discrimination or disguised restrictions on trade between the
contracting Parties.
2. This Agreement shall not preclude the taking of action            justified on
grounds of protection of essential security interests:
(a)     relating to fissionable materials or the materials from which they
        are derived;
                                                                                    t
                                                                         /O AJP„,
 ---pagebreak---                                                                iy
                                      -6-
(b)      relating to traffic in arms, ammunition and implements of war and
         to such traffic in other goods and materials as is carried on
         directly or indirectly for the purpose of supplying a military
         establishment;
(c)      taken in time of war or other emergency in international relations
         or to allow it to comply with obligations it has accepted in
         connection with the maintenance of         international peace and
         security.
                                 Article 13
1. The contracting Parties shall make every effort to promote, expand and
diversify their trade on the basis of non-discrimination and reciprocity.
In the spirit of this Article, the Joint Committee established under
Title V of this Agreement will attach special importance to examining ways
of encouraging the reciprocal and harmonious expansion of trade.
2. In furtherance of the aims of this Article and within the limits of
their respective powers, the Contracting Parties agree on the necessity to
improve favourable business regulations and facilities for each other's
firms or companies on their respective markets, inter alia by taking steps:
   to ensure the publication and facilitate exchanges of commercial and
   economic information on all matters which would assist the development
   of commercial and economic cooperation, for example:
   -     general and sectoral import arrangements,
   -     economic and commercial law,     including  regulations  on markets,
         companies and investment,
   -     macroeconomic information and statistics,      including  production,
         consumption and foreign trade statistics,
-   to facilitate the establishment and operation of each other's companies,
-   to encourage trade promotion activities,
-   to provide natural and legal persons of the other Party with guarantees
   of their individual and property rights, such as non-discriminatory
    access for that purpose to courts and appropriate administrative bodies
    of the community and Lithuania.
 ---pagebreak---                                                                  1s
                                     -7-
3. Lithuania will take measures guaranteeing an effective and adequate
protection of intellectual, industrial and commercial property, at a level
similar to that which exists in the Community, and will adhere to
International Conventions on intellectual, industrial and commercial
property.
4. The Contracting Parties undertake to facilitate, within the limits of
their respective powers, administrative cooperation between the appropriate
authorities in matters relating to customs, in particular in the following
areas:
-  vocational training,
-  simplification of customs documentation and procedures, and
-  prevention and detection of infringements of the       rules  on  customs
   matters, including the rules governing import quotas.
                                 Article 14
within the limits of their respective powers, the Contracting Parties:
-  shall encourage the adoption of arbitration for the settlement of
   disputes arising out of commercial and cooperation           transactions
   concluded by companies, enterprises or economic organizations of the
   Community and those of Lithuania,
-  agree that when a dispute is submitted to arbitration, each party to the
   dispute  may freely choose      its own arbitrator,     irrespective of
   nationality, and that the presiding third arbitrator or the sole
   arbitrator may be a citizen of a third State,
-  shall encourage recourse to the arbitration rules developed 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 concluded       in
   New York on 10 June 1958.
 ---pagebreak---                                                               1G
                                     -8-
                                  TITLE III
                            Economic cooperation
                                 Article 15
1. In die light of v.heir respective economic policies ana objectives.,, the
Contracting Parties, within the limits of their respective powers\\ioster
economic cooperation on as broad a base as possible in all fields deemed to
be in their mutual interest.
The objectives of such cooperation shall be, inter alia:
-  to reinforce   and  diversify   economic links  between  the  Contracting
   Parties,
-  to contribute to the development      of their respective  economies  and
   standards of living,
-  to open up new sources of supply and new markets,
-  to encourage cooperation between economic operators with a view to
   promoting joint ventures, licensing agreements, and other forms of
   industrial cooperation to develop their respective industries,
-  to encourage scientific and technological progress,
-  to support structural changes in the Lithuanian economy which will
   increase and diversify trade in goods and services with the Community,
-  to encourage the participation of small and medium-sized enterprises in
   trade and industrial cooperation.
2. In order to achieve these objectives, the Contracting Parties shall make
efforts to encourage and promote economic cooperation in areas of mutual
interest, in particular in the following sectors:
-  industry,
-  mining,
-  agriculture, including agro-industry,
-  fisheries,
-  science and technology in areas in which the Contracting Parties are
   active and which they consider to be of mutual interest, including
   nuclear research,
-  telecommunications,
-  energy, including nuclear energy and nuclear safety (physical safety and
   radiation protection), the prevention and notification of accidents and
   the management of radioactive waste.
 ---pagebreak---                                                                ^   >
                                     -9
-   environmental protection, including protection from water and air
   pollution and industrial accidents, and the management of natural
  . resources; also taking into account environmental requirements in other
   policy areas such as industry, agriculture, energy, transport.
-   transport, communications and the running of ports,
-   tourism and other service activities,
-   economic, monetary, banking, insurance and financial services,
-   development of human resources and training,
-   health,
-   economic policy,
-   standards,
-   statistics.
3. To give effect to the objectives of economic cooperation and within the
limits of their respective powers, the Contracting Parties shall encourage
the adoption of measures aimed at creating favourable conditions for
economic and industrial cooperation, including:
-  the facilitation of exchanges of commercial and economic information,
-  the development of a favourable climate for investment, notably by the
   extension by the Member States of the Community and Lithuania of
   arrangements for investment promotion and protection, in particular for
   the transfer of profits and the repatriation of invested capital and
   also of agreements on the avoidance of double taxation,
-  exchanges and contacts between persons and delegations       representing
   commercial or other appropriate organizations,
-  the organization    of  seminars,  fairs  or  exhibitions,  symposia and         ^
   business weeks..                                                  __t_-^Jy./^/jJCo,
-  \he encouragement of activities contributing to technical competence        in'^-fc
   specific fields, notably commercialization.
                                 Article 16
Without prejudice to the relevant provisions of the Treaties establishing
the European communities, this Agreement and any action taken pursuant to
it shall in no way affect the powers of the Member States of the community
to undertake bilateral activities with Lithuania in the field of economic
cooperation and to conclude, where appropriate, new economic cooperation
agreements with Lithuania.
 ---pagebreak---                                       -10-
                                                              1?
                                   TITLE IV
          Accession to international organizations and conventions
                                  Article 17
The Community undertakes, within the limits of its powers, to support the
accession of Lithuania to international organizations and conventions to
which the Community is a party, in order to enable Lithuania to become more
active in the world economic system.
                                    TITLE V
                               Joint Committee
                                  Article 18
1. A Joint committee shall be set up, comprising representatives of th-
   Community, on the one hand, and representatives of Lithuania, on the
   other.
   The Joint Committee shall formulate recommendations by mutual agreement
   between the contracting Parties.
   The Joint Committee shall, as        necessary, adopt its  own  rules   of
   procedure and programme of work.
   The Joint Committee shall meet once a year in Brussels and Vilnius
   alternately. Special meetings may be convened by mutual agreement, at
   the request of either contracting Party. The Joint Committee shall be
   chaired alternately by each of the Contracting Parties. Wherever
   possible, the agenda for meetings of the Joint Committee shall be agreed
   beforehand.
   The Joint Committee may decide to set up working parties to assist it in
   carrying out its duties.
2. The Joint Committee shall ensure the proper functioning of this
   Agreement and shall devise and recommend practical measures for
   achieving its objectives, keeping in view the economic and social
   policies of the Contracting Parties.
3. The Joint Committee shall endeavour to find ways of encouraging the
   development of trade and commercial and economic cooperation between the
   Contracting Parties. In particular, it shall:
        -        examine the various aspects of trade between the Parties,
                 notably its overall pattern, rate of growth, structure and
                 diversification, the trade balance and the various fonr.s of
                 trade and trade promotion.
 *  &   -
 ---pagebreak---                                                             19
                                     -ll-
                make recommendations on any trade or economic cooperation
                problem of mutual concern;
                seek appropriate means of avoiding possible difficulties in
                the fields of trade and cooperation and encourage various
                forms of commercial and economic cooperation in areas of
                mutual interest;
                consider measures likely to develop and diversify trade and
                economic    cooperation,   notably   by  improving   import
                opportunities in the Community and in Lithuania;
                exchange information on macroeconomic plans and forecasts
                for the economies of the two Parties which have an impact
                on trade and cooperation and, by extension, on the scope
                for developing complementarity between their respective
                economies and also on proposed programmes of economic
                reform;
                examine the situation concerning procedure^ f or the award (/T\_£
                of contracts for supplying goods and services following an
                international invitation to tender;
                exchange information on amendments to and developments in
                the laws, regulations and formalities of the Contracting
                Parties in the areas covered by this Agreement;
                examine favourably ways of improving conditions for the
                development of direct contacts between firms established in
                the Community and those established in Lithuania;
                formulate and submit to the authorities of both Contracting
                Parties recommendations for resolving any problems that
                arise, where appropriate by means of the conclusion of
                arrangements or agreements.
                                  TITLE VI
                        General and final provisions
                                 Article 19
Subject to the provisions of Article 16, the provisions of this Agreement
shall replace the provisions of agreements concluded between Member States
of the Community and Lithuania where the latter provisions are either
incompatible with or identical to the former.
                                 Article 20
This Agreement shall apply, on the one hand, to the territories in which
the Treaties establishing the European Economic Community and the European
Atomic Energy Community are applied and under the conditions laid down in
those Treaties and, on the other, to the territory of the Republic of
Lithuania.
 V
 ---pagebreak---                                     -12-
                                                               2
                                 Article 21
This Agreement shall enter into force on the first day of the second month
following the date on which the Contracting Parties notify each other that
the legal procedures necessary to this end have been completed. The
Agreement is concluded for an initial period of ten years. The Agreement
shall be automatically renewed year by year provided that neither
Contracting Party gives the other Party written notice of denunciation of
the Agreement six months before it expires.
However, the two Contracting Parties may amend the Agreement by mutual
consent in order to take account of new developments, notably the situation
which would arise from the accession of Lithuania to the General Agreement
on Tariffs and Trade. In the latter case, the Contracting Parties shall
prepare together the amendments to this Agreement necessary to take account
of the protocol of accession of Lithuania to the General Agreement. if the
Parties are unable to agree on this subject they reserve the right to
denounce this Agreement.
The parties reserve the right to suspend this Agreement^ with immediate
effect /in whole or in part/if a serious violation occurs of the essenti
provisions of the present agreement.
                                 Article 22
This Agreement is drawn up in duplicate in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese, Spanish and Lithuanian
languages, each text being equally authentic.
 ---pagebreak---                                                                    z^
                             FICHE D'INCIDENCE
                 IMPACT DE LA PROPOSITION SUR LES P.M.E
                       ET SUR LE MARCHE DE L'EMPLOI
L'incidence économique éventuelle du présent accord ne saurait être
qu'indirecte et tributaire des recommandations du Comité Mixte institué
dans le cadre de celui-ci.   Il n'est donc pas possible de procéder à une
évaluation précise des effets économiques de l'accord.
                             FICHE FINANCIERE
Le présent accord n'a pas d'implications budgétaires directes.
 ---pagebreak---  ---pagebreak---                                                                     ^    <J
                                                                      ISSN 0254-1475
                                                              COM(92) 179 final
                                                      DOCUMENTS
EN                                                                           02 11
                                Catalogue number: CB-CO-92-194-EN-C
                                                             ISBN 92-77-43826-6
Office for Official Publications of the European Communities
L-2985 Luxembourg