CELEX: 51991PC0223
Language: en
Date: 1991-06-12
Title: PROPOSAL FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA IN THE FIELD OF TRANSPORT

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0M(91) 223 final
                                           Brussels, 12 June 1991
                         Proposal for a
                        COUNCIL DECISION
          concerning the conclusion of the Agreement
           between the European Economic Community
       and the Socialist Federal Republic of Yugoslavia
                   in the field of transport
                  (presented by the Commission)
 ---pagebreak---                            ECTLANATORY MEMORANDUM
1.   The Commission was authorized to open negotiations with a view to
     oonclnding an Agreement with Yugoslavia by Council Decisions of
     7 December 1987 and 19 December 1988 on the first and second phases of
     negotiations between the EEC and that country1 in the field of
     transport.
     The objective assigned to the negotiations with Yugoslavia in the
     negotiating directives attached to these Decisions was the conclusion
     of an agreement with the following aims in particular:
     -  to resolve difficulties encountered by Community traffic transiting
        Yugoslav territory, and
     -  to facilitate that transit traffic by removing various obstacles
        and by cooperation on infrastructure for the main rail and road
        route across Yugoslavia.
2.   On the basis of the abovementioned Council Decisions, the Commission
     opened negotiations with Yugoslavia on 5 January 1988 (Phase 1) and on
     16 and 17 February 1989 (Phase 2).
     Several full meetings and a variety of technical meetings have been
     held since. The Member States have been kept informed on each
     occasion - either in advance or afterwards - and/or were consulted;
     they were also invited to send observers to the full and technical
     meetings. The Commission also gave regular progress reports to the
     Council (Transport).
     The negotiations were brought to a successful conclusion by the
     delegations, a process which culminated in the initialling of a draft
     Agreement on 25 March 1991.
1  These Decisions also relate to Switzerland and Austria, but these
   countries are not covered by this proposal for a Decision, which is
   concerned solely with Yugoslavia.
 ---pagebreak---                                   - 2-
3. The aim of the Agreement is to promote cooperation between the EEC and
   Yugoslavia in the field of transport, with particular reference to
   transit traffic and, to that end, to ensure the coordinated
   development of transport between and through the territory of the two
   Contracting Parties.
   It will provide a lasting solution to the problems which have arisen
   in transport between Miember States in transit via Yugoslav territory.
   This will be achieved in particular by:
   -  an annual, cumulative 5% increase in road capacity;
   -  a commitment on Yugoslavia's part to develop in its territory,
      co-financed by the EEC, the main rail and road route linking Greece
      with the other Member States; and
   -  promotion of rail transport and combined transport (enhanced
      cooperation between railways and inclusion of Yugoslav Railways in
      the Community railways' computer system, improved organization of
      combined transport, etc.).
   The Agreement consists of seven titles, the contents of which are
   summarized below.
4. Title I - Objective, scope and definitions (Articles 1 to 3)
   It must be pointed out, with regard to the scope, that the Agreement
   covers the carriage of goods by inland modes of transport, in
   particular road, rail and combined transport, performed between and in
   transit via the territory of the Contracting Parties, and to the
   related infrastructure. This is in accordance with the negotiating
   directives adopted by the Council.
 ---pagebreak---                                  -3
5. Title II - Infrastructure (Articles 5 to 7)
   This Title defines the main rail and road route from the Austrian
   frontier to the Greek frontier, which is regarded as being of
   particular interest to the Community.  It is envisaged that the
   Community will make a financial contribution to this infrastructure
   work. The financial contribution comes under the Third Financial
   Protocol between the EEC and Yugoslavia;  the amounts are as follows:
   *  ECU 580 million in loans from the European Investment Bank for
      transport infrastructure;
   *  a two-point interest rate subsidy, up to a maximum of
      ECU 77 million of budget funds, for interest-rate subsidies on
      loans for transport infrastructure.
   This point in the Agreement is in compliance with the Council's
   conclusions adopted on 5 June and confirmed on 4 and 5 December 1989,
   according to which the negotiations had to cover matters relating to
   the financial impact of transport infrastructure needed to carry
   transit traffic.
6. Title III - Railways and combined transport (Articles 8 to 11)
   Generally speaking, the Agreement requires the Contracting Parties to
   take, and to coordinate between them, the measures needed to develop
   and promote carriage by rail and combined transport. These measures
   relate in particular to:
   *  modernization of Yugoslav Railways (terminals, gauge of tunnels and
      rail capacity);
   *  fostering of combined transport; and
   * defining of the tasks incumbent upon railway managements.
 ---pagebreak---                                   -4
7.  Title IV - Road transport (Articles 12 to 18)
    This Title covers the aspects of road transport referred to in the
    negotiating directives (quotas and market access, ncn-discriminatory
    taxation, vehicle weights and dimensions, road safety, the
    environment, social matters, exchange of information, etc.). It also
    sets up an appropriate general framework for the development of
    relations between the EBC and Yugoslavia in the field of road
    transport. As regards reciprocal or mutual market access the
    Agreement lays down:
    * that where the Contracting Parties' road carriers are concerned,
       all 1991 rights shall at least be upheld;1
    * that these rights must be adapted having regard to the needs of
       trade; and
    * that the Contracting Parties shall refrain from any measure likely
       to cause discrimination.
8.  Title V - Salification of formalities (Articles 19 to 21)
    Agreement has been reached on the provision of the technical
    assistance required for the simplification of customs documentation
    and for facilitating controls and formalities on the carriage of goods
    through the adoption of measures to streamline certain customs
    regulations.
9.  Title VI - Transitional provisions (Articles 22 to 24)
    This Title constitutes the core of the Agreement. With regard to
    transit authorizations for 1991 Yugoslavia has agreed, at the pressing
    request of the Commission, to increase the number of transit
    authorizations granted to Greece by 10 000 (the number rising from
    30 000 in 1990 to 40 000 in 1991, i.e. a 33% increase in one year).
    Other Member States' transit rights in 1991 are such as result from
    bilateral arrangements between them and Yugoslavia.
1 See also Title VT of the Agreement.
 ---pagebreak---                                   - 5
 9. From 1992 onwards these authorizations will be increased in number by
    5% per annum. Yugoslavia will issue them to the Community, and the
    Council will decide annually, acting on a proposal from the
    Commission, on how these additional transit authorizations are to be
    distributed among the Member States. The decisions will, in
    principle, be based on the existing distribution except where it has
    to be changed to take account of market requirements.
    Any increase in the number of transit authorizations issued to
    Yugoslavia, and any changes in their distribution, must be decided by
    common consent of the Contracting Parties.
    It has been agreed that Community standards of vehicle weights
    (11.5 tonnes axle load and 40 tonnes gross laden weight) are to be
    recognized by Yugoslavia not later than 1 January 1998, or earlier if
    the condition of the road network permits.
10. Title VII - Final provisions (Articles 25 to 30)
    A joint committee will be set up to ensure that the Agreement is
    properly executed.
    The Agreement is to be concluded for a period of ten years with
    automatic renewal for a period of one year, subject to termination on
    twelve months' notice.
11. The following are annexed to the Agreement:
    -  a Protocol on the opening of negotiations between the EEC and
       Yugoslavia on combined transport;
    -  two Protocols on the situation relating to rights of access to road
       transport in transit via the Contracting Parties' territory;
    -  a declaration by the EEC on the essential points of the Third
       Financial Protocol on transport infrastructure in Yugoslavia.
 ---pagebreak---    a Yugoslav declaration containing an estimate of the total amount needed
   to complete the transport infrastructure covered by the Agreement;
and
-   Yugoslav declarations on the need to open negotiations on maritime, air
   and inland-waterway transport.
12.   dearly, therefore, the text of the draft agreement is in accordance
with the Negotiating Directives adopted by the Council.
The Commission accordingly proposes that the Council:
-   approve the results of the negotiations,
-   sign the Agreement and authorize its President to designate the persons
   entitled to sign,
-   approve the Agreement in the name of the Community.
The text of the Agreement is annexed to the attached Proposal for a Council
Decision concerning the conclusions of the Agreement in the field of
transport between the European Economic Community and the Federal Socialist
Republic of Yugoslavia.
 ---pagebreak---                                  -7--
                       PROPOSAL FOR A OCUNCIL DECISION
                               Of
concerning the conclusion of the Agreement between the European Economic
Comraunity and the Socialist Federal Republic of Yugoslavia in the field of
transport
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 75 thereof,
Having regard to the proposal from the Commission,1
Having regard to the opinion of the European Parliament,2
Having regard to the opinion of the Economic and Social Committee,3
Whereas the Agreement between the European Economic Community and
Yugoslavia in the field of transport provides an appropriate means for the
lasting removal of various major obstacles to Community transit traffic
through Yugoslav territory;
whereas it would therefore seem necessary to ensure the coordinated
development of transport flows between and through the territories of the
Contracting Parties, particularly by developing appropriate infrastructure
in Yugoslavia with financial help from the Community and promoting carriage
by rail and in the combined mode with a view to protecting the environment:
Whereas, furthermore, the Agreement contributes to the completion of the
internal market because, through an annual increase in the number of
authorizations it facilitates transit through Yugoslavia for inland
transport between the Member States and Greece;
Whereas, therefore, the Agreement also includes provisions intended to
simplify customs formalities;
Whereas consequently it is necessary to approve the Agreement on behalf of
the European Economic Community;
HAS DECIDED AS FOLLOWS:
 ---pagebreak---                                    -<y-
                                Article One
The Agreement between the European Economic Community and the Socialist
Federal Republic of Yugoslavia in the field of transport is hereby approved
on behalf of the Community.
The text of the Agreement and the Protocols and Declarations annexed to
that Agreement are attached to this Decision.
                                 Article 2
The President of the Council shall carry out the communication provided for
in Article 30 of the Agreement.
Done at Brussels,                               For the Council
                                                The President
 ---pagebreak---                       -s-
                   Agreement
    between the European Economic Community
and the Socialist Federal Republic of Yugoslavia
           in the field of transport
 ---pagebreak---                                     - 10 -
                                  CONTENTS
        Preamble
I       Aim, scope and definitions
II      Infrastructure
III     Bail and combined transport
IV      Road transport
V       Simplification of formalities
VT      Transitional provisions
VII     General and final provisions
Annexes:        PROTOCOLS AND DECLARATIONS on:
                1. Combined transport
                2. Articles 13 and 22 of the Agreement
                3. Articles 13 and 22 of the Agreement
                4. Article 7 of the Agreement
                5. The resources needed for infrastructure of common
                   interest
                6. Sea transport
                7. Air and inland waterway transport
 ---pagebreak---                                   --H
THE COUNCIL OF THE EUROPEAN COMMUNITIES
                              of the one part,
THE FEDERAL EXECUTIVE COUNCIL OF THE SOCIALIST FEDERAL REPUBLIC OF
YUGOSLAVIA,
                             of the other part,
Having regard to the Cooperation Agreement between the European Economic
Community and the Socialist Federal Republic of Yugoslavia, and in
particular Article 8 thereof,
CONSIDERING THAT it is essential for the Community, in the context of the
completion of the internal market and the implementation of the common
transport policy, to ensure that Community goods in transit through certain
third countries, and in particular Yugoslavia, can flow as quickly and
efficiently as possible without hindrance or discrijaination;
CONSIDERING THAT Yugoslavia is willing to continue in its role as a transit
country on the basis of the existing mutual rights and obligations
regarding access to the market and transit, which must be further
developed;
CONSIDERING THAT the Contracting Parties recognize that an essential part
of an agreement must be the creation of transport infrastructure suited to
their mutual requirements and equitable rules governing market access for
their carriers;
CONSIDERING THAT an overall solution to the problems in question may be
provided by close cooperation between the Contracting Parties, in
particular in introducing and developing a package of coordinated measures
on transport so as to ensure reciprocal access to the Community and
Yugoslav markets and to facilitate road and fail traffic by appropriate
means on a competitive basis;
 ---pagebreak---                                   -M-
CONSIDERED THAT this package of measures must also aim to protect the
environment;
CONSIDERING THAT an appropriate transitional period will allow time for
adjustment to any new provisions which may prove necessary,
HAVE AGREED AS FOLLOWS:
                    TITLE I - AIM. SCOPE AND DEFINITIONS
                              Article 1 - Aim
The aim of this Agreement between the European Economic Community and the
Socialist Federal Republic of Yugoslavia is to promote cooperation between
the Parties on transport, and in particular transit traffic, and to ensure
for this purpose that transport between and through the territories of the
Contracting Parties is developed in a coordinated manner by means of the
complete and interdependent application of all the provisions of this
Agreement.
                             Article 2 - Scope
1. Cooperation shall cover transport, and in particular road, rail and
combined transport, and shall include the relevant infrastructure.
2. In this connection, the scope of this Agreement shall cover in
particular:
-  transport infrastructure in the territory of one or other Party to the
   extent necessary to achieve the objective of this Agreement;
-  market access, on a reciprocal basis, in the field of road transport;
 ---pagebreak---                                  -   tt  -
-   essential legal and administrative supporting measures including
    commercial, taxation, social and technical measures;
- cooperation in developing a transport system which meets environmental
    needs;
- a regular exchange of information on the development of the transport
    policies of both Parties, with particular regard to transport
    infrastructure.
3. Combined, sea, air and inland waterway transport are governed by the
particular provisions of Protocol 1 (Annex 1) and the Declarations
 (Annexes 6 and 7) attached to this Agreement.
                           Article 3 - Definitions
For the purposes of this Agreement, the following definitions shall apply:
 (a) Community transit traffic: the carriage, by a carrier established in
      the Community, of goods in transit through Yugoslav territory en route
      to or from a Member State of the Community.
 (b) Combined transport: the carriage of goods by road vehicles or loading
      units which, without unloading of the goods, travel by road for a part
      of the journey between the point of departure and the point of arrival
      and by rail for another part of that journey.
 ---pagebreak---                                       \u
                          TITLE II - INFRASTRUCTURE
                        Article 4 - General provision
Hie Contracting Parties hereby agree to adopt mutually coordinated measures
to develop transport infrastructure as a vital means of solving the
problems affecting the carriage of goods through Yugoslavia, in particular
on the North-West/South-East route.
                            Article 5 - Planning
1. Using its own resources and with co-financing from the
   European Community, Yugoslavia shall develop, as a matter of priority,
   the main road and rail transit route from the Austrian border to the
   border with Greece, and any other communication routes which may later
   be determined by both Parties.
2. The abovementioned route, which the Community considers to be of
   particular interest, shall comprise:
   - the trans-Yugoslavia motorway, with a branch leading to the Italian
     frontier, which runs from the Karavanken tunnel on the Austrian border
     to Djevdjelija on the border with Greece, passing by Ljubljana,
     Zagreb, Belgrade, Nis and Skopje;
   - the Trans-Yugoslavia railway running from Jesenice/Sezana via
     Ljubljana, Zagreb, Belgrade, Nis (with a branch line leading to
     Edinitrovgrad) and Skopje to Djevdjelija on the border between Greece
     and Yugoslavia. The modernization of this railway line shall be such
     as to make it suitable for the introduction of combined transport
     technology.
 ---pagebreak---                                      - 1 - y -
    3. The Parties have agreed that their common aim shall be to complete
       construction of the two major transport routes referred to in
       paragraph 2 before 31 December 1996 if possible and that the completion
       date shall determine the rate at which liberalization takes place during
       the transitional period.
                           Article 6 - Financial aspects
    1. The European Economic Community shall contribute financially to the
       necessary infrastructure work referred to in Article 5. This financial
       contribution shall take the form of credit from the European Investment
       Bank and any other form of financing which can provide further
       resources.
    2. In order to speed up the work the Commission shall endeavour, as far as
       possible, to encourage the use of additional resources such as -
       investment by certain Member States on a bilateral basis or from public
       or private funds.
                                     Article 7
    In order to achieve the objectives set out in Article 5, the Community
    shall make finances available to Yugoslavia under the Third Protocol on
    financial cooperation between the European Economic Community and
    Yugoslavia for the period from 1 July 1991 to 30 June 1996.
(3)
 ---pagebreak---                                    -il
                   TITLE III - RAIL AND COMBINED TRANSPORT
                        Article 8 - General provisions
The Contracting Parties shall adopt the mutually coordinated measures
necessary for the development and promotion of rail and combined transport
as a future means of ensuring a large proportion of their bilateral and
transit transport through Yugoslavia is performed under more
envircinment-friendly conditions.
         Article 9 - Particular aspects relating to infrastructure
As part of the modernization of the Yugoslav railways, the necessary steps
shall be taken to adapt the system for combined transport, with particular
regard to the development or building of terminals, and to tunnel gauges
and to capacity, which require substantial investment.
                       Article 10 - Supporting measures
Both Parties shall take all the steps necessary to encourage the
development of comhined transport.
The purpose of such measures shall be:
-  to encourage users and consignors to use combined transport;
-  to make combined transport competitive with road transport, in
   particular by granting financial aid;
-  to encourage the use of combined transport over long distances and to
   promote, in particular, the use of swap bodies, containers and
   unaccompanied transport in general;
 ---pagebreak---                                     n-
-  to improve the speed and reliability of combined transport and in
   particular:
   - to increase the frequency of convoys in accordance with the needs of
     consignors and users;
   - to reduce waiting time at terminals and increase their productivity;
- to remove all obstacles from the approach routes so as to improve access
   to combined transport;
- to harmonize, where necessary, the weights, dimensions and technical
   characteristics of specialized equipment, in particular so as to ensure
   the necessary compatibility of gauges, and to take coordinated action to
   order and put into service such equipment as is required by the level of
   traffic;
- and, in general, to take any other appropriate action.
                   Article 11 - The role of the Railways
In connection with the respective powers of the States and the Railways,
the Contracting Parties shall, in respect of both passenger and goods
transport, recommend that their Railways:
- step up cooperation, whether bilateral, multilateral or within
   international railway organizations, in all fields, with particular
   regard to the improvement of the quality of transport services;
- try to establish in comraon a system of organizing the railways so as to
   encourage consignors to send freight by rail rather than road, in
   particular for transit purposes, within the framework of healthy
   competition and while leaving the user freedom of choice in the matter;
 ---pagebreak---                                    i#
- agree on measures to integrate the Yugoslav railways in traffic
  management by using the Docimel electronic consignment note system and
  the Hermes computerized system for passenger reservations as well as
  other purposes;
- harmonize their arrangements for railway staff training.
 ---pagebreak---                                   -n-
                         TITLB IV - ROAD TRANSPORT
                      Article 12 - General provision
1. With regard to mutual access to transport markets, both Contracting
   Parties agree, initially, to maintain all the existing rights arising
   from bilateral agreements or other international bilateral instruments
   concluded between each Member State of the Community and Yugoslavia or,
   where there are no such agreements or instruments, arising from the
   de facto situation in 1991.
2. However, should the situation prove unsatisfactory to either Party,
   quotas shall be adjusted as necessary and without delay in accordance
   with the requirements of trade between both Parties.
3. The Contracting Parties shall refrain from taking any unilateral action
   which might lead to discrimination betv.een Community and Yugoslav
   hauliers or vehicles. Each Party shall take all steps necessary to
   facilitate road transport to or through the territory of the other
   Party.
                     Article 13 - Access to the market
Both Parties shall undertake to work together to seek, in respect of the
period before and after 1 January 1993, and in particular once Comraunity
rules have been adopted for negotiations with non-Community countries:
-  courses of action likely to favour the development of a transport system
   which meets the needs of both Parties, which is compatible, on the one
   hand, with the completion of the internal Community market and the
   implementation of the common transport policy, particularly with regard
   to the objective of freedom of transit, and, on the other hand, with
   Yugoslavia's economic and transport policy;
 ---pagebreak---                                    -H'-
-  a definitive system for regulating future road transport relations
   between the two Parties on the basis of reciprocity.
                            Article 14 - Taxation
1. The Contracting Parties accept that the taxation of road vehicles on
   either side must be non-discriminatory.
2. The Contracting Parties shall enter into negotiations with a view to
   reaching an agreement on road taxation as soon as rules on this matter
   have been adopted by the Ctammunity. The purpose of the agreement shall
   be, in particular, to ensure the free flow of trans-frontier traffic, to
   reduce the differences between the road taxation systems applied by the
   two Parties GJEL to eliminate distortions of competition arising from
   such differences.
                     Article 15 - Weights and dimensions
Yugoslavia accepts that road vehicles complying with Community standards on
weights and dimensions may circulate freely and without hindrance in this
respect on the trans-Yugoslav motorway, taking into account the provisions
of Article 23 of this Agreement.
                        Article 16 - The Environment
1. In order to protect the environment, the Contracting Parties shall seek
   to introduce the most rigorous standards possible on gaseous and
   particulate emissions and noise levels for heavy goods vehicles.
2. In order to provide the industry with clear information and to encourage
   coordinated research, programming and production, exceptional national
   standards shall be avoided in this field.
 ---pagebreak---                                   -2 1-
   Vehicles which comply with standards laid down by international
   agreements also relating to the environment may operate in the territory
   of the Contracting Parties without restriction arising from national
   environmental standards.
3. For the purpose of introducing new standards, the Contracting Parties
   shall work together to achieve the abovementioned objectives.
                        Article 17 - Social aspects
1. The Contracting Parties shall harmonize their legislation on the
   training of road haulage personnel, particularly with respect to the
   carriage of dangerous goods.
2. The Contracting Parties shall also endeavour to harmonize their
   legislation on driving time, drivers' rest periods and crew composition
   and shall cooperate in bringing AETR and Community rules into line.
3. Pending harmonization in this field, the Contracting Parties shall
   mutually recognize the recording methods used to monitor implementation
   of their respective social legislation in the field of road transport.
4. The Contracting Parties shall ensure the equivalence of their respective
   laws on admission to the occupation of road haulage operator, with a
   view to their mutual recognition.
                Article 18 - Provisions relating to traffic
1. The Contracting Parties shall pool their experience and endeavour to
   harmonize their legislation so as to improve the flow of traffic during
   peak periods (weekends; public holidays; the tourist season).
 ---pagebreak---                                    -Il-
2. In general, the Contracting Parties shall encourage the introduction,
   development and coordination of a system of information on road traffic.
3. They shall endeavour to harmonize their legislation on the carriage of
   perishable goods, live animals and dangerous substances.
4. The Contracting Parties shall also endeavour to harmonize the technical
   assistance to be provided to drivers, the dissemination of essential
   information on traffic and other matters of concern to tourists, and
   emergency services including ambulance services.
5. Both Parties shall seek jointly to determine what temporary restrictions
   and interruptions to traffic may be necessary for health reasons or in
   order to protect the environment.
 ---pagebreak---                                       a ^
                  TITLE V - SIMPLIFICATICN OF K3RMALITTES
                Article 19 - Simplification of formalities
1. The Contracting Parties agree to simplify the flow of goods by rail and
   road, whether bilateral or in transit.
2. The Contracting Parties agree to begin negotiations with a view to
   concluding an agreement on the facilitation of controls and formalities
   relating to the carriage of goods.
3. The Contracting Parties agree, to the extent necessary, to take joint
   action on, and to encourage, the adoption of further sionpllfication
   measures.
                Article 20 - Single administrative document
1. The introduction by the Community of a single administrative document
   has been shown to reduce and simplify the formalities required in the
   course of international trade, particularly within the Ctommunity.
2. The Contracting Parties agree to use this document in trade between them
   so as to facilitate the task of economic operators and of the
   authorities.
3. To this end, the Community dec!ares its willingness to provide
   Yugoslavia with the necessary technical assistance to introduce the
   document in its territory.
                                 Article 21
The Contracting Parties undertake to simplify the flow of goods by
establishing a link between the transit regime used by Yugoslavia and the
Community transit regime.
 ---pagebreak---                                        Ik-
                    TITLE VI - TRANSITIONAL ARRANGEMENTS
                                 Article 22
1. On the basis of the total number of authorizations referred to in
   Annex 2 granted for 1991 to the Member States under their most recent
   agreement or International legal instrument concluded bilaterally with
   Yugoslavia or, in the absence of such agreements or international
   instruments, arising from the de facto situation, Yugoslavia shall grant
   the Community a number of further transit authorizations to be
   distributed by the Comraunity, with effect from 1992, at its convenience
   to road haulage operators established in the Community.
   The decisions adopted by the Community with respect to the distribution
   of these further authorizations shall be notified by the Commission to
   Yugoslavia.  This notification shall state which Member States have
   obtained additional transit authorizations and their respective quotas.
   On the basis of this information, Yugoslavia and the said Member States
   shall undertake the usual formalities with regard to the provision and
   use of those authorizations.
2. The total number of authorizations valid for 1991 and referred to in
   paragraph 1 shall, with effect from 1 January 1992, be increased
   annually by 5% over the previous year (cumulative annual increase).
   This shall apply throughout the period of validity of this Agreement or
   until the introduction of the arrangements referred to in Article 13
   where this occurs before the end of the period of validity of the
   Agreement.
3. On the basis of the total number of authorizations referred to in
   Annex 3, granted to Yugoslavia for 1991 under its most recent bilateral
   agreements or international legal instruments concluded with the
   Member States or, in the absence of such agreements or international
   instruments, arising from the de facto situation, the Contracting
   Parties shall decide by common consent on the increase and
 ---pagebreak---                                    _ ;>c -
   distribution of those transit authorizations to be granted, where
   appropriate, to Yugoslavia.
                                 Article 23
1. The Contracting Parties have agreed that, from 1 January 1998, vehicles
   with an axle load of 11.5 tonnes and a gross permitted weight of
   40 tonnes may use the trans-Yugoslavia motorway.
2. Meanwhile, the Contracting Parties have decided to study the present
   condition of this motorway in order to decide whether and under what
   conditions it is possible to allow vehicles with an axle load of
   11.5 tonnes to use the road before 1 January 1998.
                                 Article 24
Yugoslavia and the Community shall continue their discussions on the
possibility of Yugoslavia becoming a signatory to the Agreement on the
International Carriage of Passengers by Road by means of Occasional Coach
and Bus Services (ASOR).
 ---pagebreak---                                      2 b-
                        TITLB VII - FINAL PROVISIONS
                     Article 25 - Widening of the scope
If one of the Contracting Parties concludes, on the basis of experience in
the application of this Agreement, that other measures which do not fall
within the scope of this Agreement are in the interest of a coordinated
European transport policy and, in particular, may help to solve the problem
of transit traffic, it shall present the other Contracting Party with
suggestions in this respect.
                        Article 26 - Joint Committee
The body responsible for cooperation shall, be a Joint Committee to be known
as the "Community/Yugoslavia Transport Committee". The Committee:
-  shall be made up of representatives appointed by the European Economic
   Community and the Socialist Federal Republic of Yugoslavia;
-  shall meet alternately in the Community or in Yugoslavia at least once a
   year and more frequently where necessary at the request of one of the
   Contracting Parties;
-  shall establish its own rules of procedure;
-  shall ensure the proper implementation of the Agreement and, in
   particular:
   (a) shall draw up plans for cooperation on rail and combined transport,
        transport research and the environment;
   (b) shall analyse the application of the decisions contained in the
        Agreement regarding access to the road haulage market and in
        particular transit quotas;
 ---pagebreak---                                    -n
   (c) shall, in 1996, undertake an assessment of the situation as regards
        infrastructure improvement and quota authorizations for road
        transport Including the possibility of augmenting the 5% annual
        increase referred to in Article 22(2) according to the progress of
        infrastructure development;
   (d) shall organize the work on transport infrastructure, including the
        planning and implementation of investments and, where appropriate,
        their development, if necessary by setting up an ad hoc group of
        experts specifically responsible for this task;
   (e) shall resolve any disputes which may arise over the application and
        interpretation of this Agreement;
   (f) shall coordinate the monitoring, forecasting and other statistical
        work relating to international transport and in particular ' transit
        traffic;
   (g) shall coordinate transport research activities.
                    Article 27 - Review and termination
This Agreement is concluded for a period of ten years. It shall be
extended automatically for one year unless one of the Contracting Parties
terminates it by giving 12 months' notice taking effect at the end of the
following year.
                            Article 28 - Annexes
Annexes 1 to 7 shall be an integral part of this Agreement.
                  Article 29 - Languages (for the record)
 ---pagebreak---                                   -2#-
                       Article 50 - Entry Into force
This Agreement shall be concluded in accordance with the Contracting
Parties' own procedures. It shall enter into force as soon as the
Contracting Parties have notified one another of the completion of the
procedures necessary for that purpose.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set
their hands.
Done at
For the Council of the European         For the Federal Executive
Communities                             Council of the Assembly of
                                        the Socialist Federal Republic
                                        of Yugoslavia
 ---pagebreak---                                     •z s
                                                 Annex 1
                       PROTOCOL CN COMBINED TRANSPORT
THE CONTRACTING PARTIES:
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
and
THE FEDERAL EXECUTIVE COUNCIL OF THE ASSEMBLY OF THE SOCIALIST FEDERAL
REPUBLIC OF YUGOSLAVIA,
Referring to the Cooperation Agreement between the European Economic
Community and the Socialist Federal Republic of Yugoslavia, signed in
Belgrade on 2 April 1980, and in particular Article 8 thereof, hereby agree
to make preparations as soon as possible for the opening of negotiations
on combined transport and in particular on rai 1 /road technology.
 ---pagebreak---                                    -10
                                                Annex 2
              PROTOCOL ON ARTICLES 13 AND 22 OF THE AGREEMENT
The Contracting Parties note that the situation with regard to access to
road transport in transit through Yugoslavia granted to the Member States
of the Community in 1991 (and referred to in Article 22(1)) is as follows
Member State       Bilateral and transit        Transit authorization
                      authorizations
     B                  -                                3 000
     EK                                                  1 600
     D                  52 000
     GR                 -                               40 000
     ESP                -                                  500
     F                  11 800
     IT                 62 000
     IRL                -                                  100
     L                  -                                  100
     NL                                                  7 000
     P                                                     200
     UK                                                  4 600
                       125 800 +                        57 100
                                        TOTAL 182 900
 ---pagebreak---                                    -ri-
                                                Annex 3
           SBOOND PROTOCOL CN ARTICLES 13 AND 22 OF THE AGREEMENT
The Contracting Parties take note of the fact that the situation with
regard to access to road transport in transit through the Member States of
the Community granted to Yugoslavia in 1991 (and referred to in
Article 22(3)) is as follows:
Member State    Bilateral and transit           Transit authorizations
                   authorizations
B                   -                                     4 000
EK                  1 100
D                  52 000
GR                                                       16 000
ESP                                                         500
F                  11 800
IT                 62 000
IRL                 -                                       100
L                     250
NL                  -                                     2 500
P                   -                                       200
UK                  7 000
                  134 150        +                       23 300
                                 TOTAL 157 450
 ---pagebreak---                                 -32-
                                                Annex 4
                  DECLARATION BY THE COMMUNITY DELEGATION
                       CN ARTICLE 7 OF THE AGREEMENT
The Community delegation hereby confirms to the Yugoslav delegation that,
on 18 December 1990, the Council reached agreement on the negotiating
directives for the Third Financial Protocol and the amounts Indicated below
were adopted:
-  ECU 730 million of loans from the EEB's own resources, including some
   ECU 580 million for transport infrastructure;
-  a subsidy of two percentage points on up to ECU 77 million of budgetary
   funds for interest rate subsidies on loans for transport infrastructure.
 ---pagebreak---                                     K-
                                        o»
                                                 Annex 5
                   DBCLARATICN BY THE YUGOSLAV DELEGATION
        ON THE RESOURCES NEEDED FOR INFRASTRUCTURE OF COMMON INTEREST
IXiring negotiations on the Agreement between the Social 1st Federal Republic
of Yugoslavia and the European Economie Community in the field of
transport, the Yugoslav delegation expressed the opinion that, in order to
complete contraction of the trans-Yugoslavia motorway referred to in the
first indent of Article 5(2) of the Agreement, the sum of USD 1.8 billion
would have to be provided and that for the construction and reconstruction
of the Trans-Yugoslavia railway referred to in the second indent of
Article 5(2) of the Agreement, the sum required would be approximately
USD 1.6 billion.
The Yugoslav Party stressed that it was expecting the Community to
contribute about 50% of the necessary funding and to do so on the most
favourable terms.
Should the resources granted under the Third Financial Protocol be
exhausted before the end of the period under consideration, the Yugoslav
Party would expect negotiations to be started to ensure Community financing
for the continued construction of the major transport routes referred to in
Article 5 of the Agreement.
The Community delegation took note of the declaration by the Yugoslav
delegation.
 ---pagebreak---                                     y,-
                                                 Annex 6
                   DECLARATICN BY THE YUGOSLAV DELEGATION
                              CN SEA TRANSPORT
IXiring negotiations on the Agreement between the Socialist Federal Republic
of Yugoslavia and the European Economic Community in the field of
transport, the Yugoslav delegation expressed its opinon that:
-   sea transport in the Socialist Federal Republic of Yugoslavia should be
    encouraged with reference to the Cooperation Agreement between the
    Socialist Federal Republic of Yugoslavia and the Community, signed in
   Belgrade on 2 April 1980, and in particular Article 8 thereof;
-   that negotiations should be started as soon as possible with a view to
    concluding a Agreement on sea transport between the Federal Executive
    Council of the Socialist Federal Republic of Yugoslavia and the European
    Economic Community.
The Yugoslav Party stated its willingness to take Into consideration
(immunity legislation on sea transport during negotiations for the
conclusion of a Agreement on sea transport between the SFRY and the EEC.
 ---pagebreak---                                      35-
The Community delegation took careful note of the interest expressed by
the Yugoslav Party and observes that the matter may be examined in
meetings of the Joint Committee referred to in Article 26.
 ---pagebreak---                                       u
                                                 Annex 7
                   DBCLARAnCN BY THE YUGOSLAV DELEGATION
                    ON AIR AND INLAND WATERWAY TRANSPORT
IXiring negotiations on the Agreement between the Socialist Federal Republic
of Yugoslavia and the European Economie Community in the field of
transport, the Yugoslav delegation expressed the opinion that international
cooperation on transport, and In particular air and inland waterway
transport, should be improved, where appropriate, by means of specific
agreements based on the principles of this Agreement and having due regard
to existing international rules and the Community "acquis" in each field.
 ---pagebreak---                                      n
The Community delegation took careful note of the interest expressed by
the Yugoslav Party and observes that the matter may be examined in
meetings of the Joint Committee referred to in Article 26.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(91) 223 final
                                                      DOCUMENTS
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                                 Catalogue number : CB-CO-91-273-EN-C
                                                             ISBN 92-77-73587-2
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