CELEX: 52004PC0808(02)
Language: en
Date: 2004-12-17
Title: Proposal for a Council Decision on the conclusion of a Euro-Mediterranean Association Agreement between the European Community and its Member States of the one part, and the Syrian Arab Republic, of the other part

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     Brussels, 17.12.2004
                                                     COM(2004) 808 final
                                                     2004/0281 (AVC)
                                        Proposal for a
                                   COUNCIL DECISION
   On the signature on behalf of the European Community and provisional application of
     certain provisions of a Euro-Mediterranean Association Agreement between the
        European Community and its Member States and the Syrian Arab Republic
                                        Proposal for a
                                   COUNCIL DECISION
     On the conclusion of a Euro-Mediterranean Association Agreement between the
    European Community and its Member States of the one part, and the Syrian Arab
                                 Republic, of the other part
                               (presented by the Commission)
EN                                                                                     EN
 ---pagebreak---                             EXPLANATORY MEMORANDUM
   1.   The attached proposals constitute the legal instruments for the signature and
        conclusion of a Euro-Mediterranean Association Agreement between the European
        Community and its Member States, of the one part, and the Syrian Arab Republic, of
        the other part.
      (a)      Proposal for a Council Decision for the signature of the Agreement;
      (b)      Proposal for a Council Decision for the conclusion of the Agreement.
   2.   Syria’s relations with the European Community are presently covered by the Co-
        operation Agreement signed on 18 July 1977 (entered into force on 1 January 1978),
        as modified by subsequent protocols. The Council adopted its negotiating directives
        on 18 December 1997 and the Commission formally launched the negotiations for an
        Association Agreement on 14-15 May 1998. Progress was very slow in the first four
        years. The pace of negotiations changed after the Syrian government reshuffle in
        December 2001 and at the eighth session on 5-6 June 2002 the first chapters of the
        text could be agreed. After the submission of a comprehensive Syrian tariff schedule,
        intensive negotiations on tariff dismantlement could start in September 2003 leading
        to conclusion of the negotiations at the twelfth and final round on 8-9 December
        2003, followed by a series of technical discussions, leading to the initialling of the
        text by the Commission and by the Government of Syria in Brussels on 19 October
        2004.
   3.   The proposed Association Agreement between the EU and Syria will establish a new,
        closer relationship within the context of the Euro-Mediterranean partnership
        launched by the 1995 Barcelona Declaration. It will contribute to peace and security
        in the region and will stimulate trade and economic relations between Syria and the
        EU, and Syria and its Mediterranean partners. The proposed agreement would be the
        last missing piece in building the Euro-Mediterranean Free Trade Area in 2010 as set
        up in the Barcelona Declaration. The Barcelona Declaration underlines the EU’s
        priority to strengthen its security, economic and social relations with the partners of
        the southern Mediterranean Basin. Agreements with Tunisia, Morocco, Algeria,
        Egypt, Israel, the Palestinian Territories (PLO), Jordan and Lebanon have already
        been signed; only Syria remains.
   4.   The EU-Syria Association Agreement will have an unlimited duration and will open
        the way to deepen relations in a wide number of fields, based on reciprocity and
        partnership. Respect for the principles of democracy and human rights will constitute
        an essential element of the Agreement. In line with the Council Decision of
        17 November 2003 on the fight against the proliferation of weapons of mass
        destruction, the Agreement also contains as an essential element a commitment to
        fulfilling existing obligations under disarmament and non-proliferation instruments.
   5.   The EU-Syria Association Agreement is similar in pattern to other Euro-
        Mediterranean Association Agreements, but contains more far-reaching and
        substantial provisions in a number of areas: non-proliferation, counter-terrorism,
        comprehensive tariff dismantlement on agricultural products, technical barriers to
        trade, sanitary and phyto-sanitary measures, trade facilitation, right of establishment
        and services, government procurement, intellectual property rights and trade dispute
EN                                              2                                               EN
 ---pagebreak---       settlement mechanisms. The provisional application of trade and trade related
      provisions is also foreseen.
   6. The Agreement focuses on the following main elements:
      – regular political dialogue, including co-operation on non-proliferation;
      – economic, social, and cultural dialogue and co-operation in a wide range of fields;
      – the progressive establishment of a free-trade area between the European
         Community and Syria over a maximum period of twelve years. Both Parties
         recognise the importance of free trade, as guaranteed by the General Agreement
         on Tariffs and Trade of 1994 (GATT) and by the other multilateral agreements
         annexed to the Treaty establishing the WTO;
      – for industrial products, free access granted to Syrian exports to the Community o
         under the 1978 Co-operation Agreement is reconfirmed. Reciprocally, Syria will
         liberalise its imports regime for Community products so that all tariffs are reduced
         to zero by the end of the twelve year transition period after entry into force of the
         Agreement;
      – for processed agricultural products, specific reciprocal concessions are foreseen;
      – agricultural products from Syria to the Community will be liberalised conforming
         to Barcelona Process objectives (gradual liberalisation with review clause). For a
         list of sensitive products tariff quotas shall be applied. Tariffs on products from
         the Community exported to Syria will be dismantled in a linear manner so as to
         reach zero by the end of the twelve year transition period after entry into force of
         the Agreement;
      – trade in fish and fishery products imported from Syria into the Community, with
         the exception of a limited number of products, will be liberalised over a two-year
         period. For those products where liberalisation is not foreseen, tariff quotas will
         be provided under the Agreement. Tariffs on fish and fishery products exported
         from the Community to Syria will be dismantled in a linear manner over a
         maximum period of 12 years after the entry into force of the Agreement;
      – right of establishment and services granting European investors MFN or national
         treatment (whichever is better) for establishment in Syria and opening almost all
         sectors for investment, with the exception of some reserved currently for state
         monopolies. The area of telecommunications will be opened at the latest six years
         after entry into force;
      – dispute settlement provisions to resolve trade disputes in line with the WTO
         Dispute Settlement Mechanism;
      – provisions on the movement of persons;
      – on payments and capital movements, competition, government procurement,
         intellectual, industrial and commercial property rights, and on standards, technical
         regulation and conformity assessment procedures;
EN                                           3                                                 EN
 ---pagebreak---              – commitments and co-operation in the areas of migration (including re-admission),
                rule of law, combating drugs and organised crime, money-laundering, and
                counter-terrorism;
             – institutional provisions for the management of the Agreement, which will include
                the establishment of an Association Council to meet at ministerial level to
                supervise the implementation of the Agreement, and of an Association
                Committee;
             – the Association Council shall take all appropriate measures to facilitate co-
                operation and contacts between the European Parliament and the Syrian People’s
                Assembly.
   It is aimed at supporting economic and political reform in Syria, preparing Syria for
   integration into the world economy and promoting regional integration. Through a regular
   political dialogue, it will also enable the EU to engage into discussions with Syria on all
   topics of mutual concern, in particular human rights and democratic principles, terrorism and
   non-proliferation.
EN                                                4                                              EN
 ---pagebreak---                                              Proposal for a
                                        COUNCIL DECISION
     On the signature on behalf of the European Community and provisional application of
        certain provisions of a Euro-Mediterranean Association Agreement between the
          European Community and its Member States and the Syrian Arab Republic
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community and in particular Article
   310 in conjunction with the first sentence of the first subparagraph of Article 300, paragraph 2
   thereof,
   Having regard to the proposal from the Commission1,
   Whereas:
   (1)     The Council adopted the directives on 18 December 1997 for the Commission to open
           negotiations for a Euro-Mediterranean Association Agreement between the European
           Community and its Member States, of the one part, and the Syrian Arab Republic of
           the other part;
   (2)     These negotiations have been concluded and the Agreement has been initialled on
           19 October 2004;
   (3)     The European Commission and the Syrian Arab Republic have undertaken to apply
           provisionally certain provisions of the Association Agreement pending its entry into
           force.
   (4)     The measures necessary for the implementation of the provisional application should
           be adopted un accordance with Council Decision 1999/468/EC of 28 June 1999 laying
           down the procedures for the exercise of implementing powers conferred on the
           Commission2.
   (5)     The Association Agreement should be signed on behalf of the Community and the
           provisional application of its provisions should be adopted.
   1
           OJ C
   2
           OJ L 184, 17.7 1999 p. 23.
EN                                                 5                                                EN
 ---pagebreak---    HAS DECIDED AS FOLLOWS:
                                                    Article 1
   Subject to its conclusion at a later date, the President of the Council is hereby authorised to
   designate the person(s) empowered to sign, on behalf of the European Community, the Euro-
   Mediterranean Association Agreement between the European Community and its Member
   States, of the one part, and the Syrian Arab Republic, of the other part.
                                                    Article 2
   The following provisions of the Association Agreement shall be applied on a provisional
   basis pending its entry into force: Article 2, Articles 7 to 42, Article 61, Articles 63 to 89,
   Article 97, Articles 99 to 102, Article 107, Article 120, Articles 132 to 138, and Articles 140
   and 141.
                                                    Article 3
   The measures necessary for the implementation of the provisional application of the
   Agreement shall be adopted in accordance with the procedure referred to in Article 4.
                                                    Article 4
   (1)     The Commission shall be assisted by a Committee on horizontal questions concerning
           trade in processed agricultural products not listed in Annex I to the Treaty, established
           by Article 16 of Council Regulation (EC) No 3448/1993 of 6th December 1993 laying
           down the trade arrangements applicable to certain goods resulting from the processing
           of agricultural products3, by the Management Committee for Sugar established by
           Article 42 of Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common
           organisation of the market in sugar4, modified by Commission Regulation (EC) No
           680/2002 of 19 April 20025 or, where appropriate, by the committees established by
           the corresponding provisions of other regulations on the common organisation of
           markets or by the Customs Code Committee established by Article 248a of Regulation
           (EEC) No 2913/92 of 12th October 1992 establishing the Community Customs Code6.
           Where reference is made to this paragraph, Article 4 and 7 of Decision 1999/468/EC
           shall apply. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set
           at one month.
   3
           OJ L 318, 20.12.1993, p.18.
   4
           OJ L 178, 30.6.2001, p. 1.
   5
           OJ L 104, 20.4.2002, p. 26.
   6
           OJ L 302, 19.10.1992, p. 1, Regulation as last amended by Regulation (EC) No 2700/2000 (OJ L 311,
           12.12.2000 p. 17).
EN                                                       6                                                   EN
 ---pagebreak---    (2)   The Committee shall adopt its rules of procedure.
   Done at Brussels,
                                              For the Council
                                              The President
EN                                              7             EN
 ---pagebreak---                                                          2004/0281 (AVC)
                                            Proposal for a
                                      COUNCIL DECISION
        On the conclusion of a Euro-Mediterranean Association Agreement between the
       European Community and its Member States of the one part, and the Syrian Arab
                                     Republic, of the other part
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community and in particular Article
   310 in conjunction with the second phrase of Article 300, paragraph 2, and the second sub-
   paragraph of paragraph 3,
   Having regard to the proposal from the Commission,
   Having regard to the assent of the European Parliament7
   Whereas:
   (1)    The Euro-Mediterranean Association Agreement between the European Community
          and its Member States, of the one part, and the Syrian Arab Republic of the other part;
          has been signed on behalf of the European Community, in […] on […], subject to the
          reserve of an eventual conclusion at a later date, in conformity with the decision
          …./………./CE of the Council of ….
   (2)    The Agreement should be approved,
   HAS DECIDED AS FOLLOWS:
                                              Article 1
   The Euro-Mediterranean Association Agreement between the European Community and its
   Member States, of the one part, and the Syrian Arab Republic, of the other part, the annexes
   and protocols to the Agreement, as well as the joint declarations and the declarations of the
   European Community included in the final act, are approved on behalf of the European
   Community.
   The initialled texts mentioned in paragraph 1 form part of this Decision.
   7
          OJ C […], […], p
EN                                                8                                               EN
 ---pagebreak---                                               Article 2
   The Position to be taken by the Community in the context of the Association Council and of
   the Association Committee, is to be defined by the Council, on the proposal of the
   Commission, or, if the case arises, by the Commission, in conformity with the relevant
   components of the Treaties.
   In conformity with article 124 and article 127 of the Agreement, the President of the Council
   will chair the Association Council. A representative of the Commission will chair the
   Association Committee, according to the agreed procedural rules.
   The decision to publish the decisions of the Association Council and of the Association
   Committee in the Official Journal of the European Union will be taken in each case
   respectively by the Council and the Commission.
                                              Article 3
   The President of the Council is authorised to designate the person(s) empowered to proceed,
   on behalf of the European Community, to deposit the act of notification foreseen in article
   142 of the Agreement.
   Done at Brussels,
   For the Council
   The President
EN                                                9                                              EN
 ---pagebreak---                         ANNEX
          EURO-MEDITERRANEAN AGREEMENT
             ESTABLISHING AN ASSOCIATION
         BETWEEN THE EUROPEAN COMMUNITIES
      AND THEIR MEMBER STATES ON THE ONE PART,
   AND THE SYRIAN ARAB REPUBLIC ON THE OTHER PART
EN                        10                      EN
 ---pagebreak---                                  THE KINGDOM OF BELGIUM
                                       CZECH REPUBLIC
                                THE KINGDOM OF DENMARK
                          THE FEDERAL REPUBLIC OF GERMANY
                                    REPUBLIC OF ESTONIA
                                  THE HELLENIC REPUBLIC
                                   THE KINGDOM OF SPAIN
                                   THE FRENCH REPUBLIC
                                             IRELAND
                                   THE ITALIAN REPUBLIC
                                    REPUBLIC OF CYPRUS
                                     REPUBLIC OF LATVIA
                                  REPUBLIC OF LITHUANIA
                           THE GRAND DUCHY OF LUXEMBOURG
                                    HUNGARIAN REPUBLIC
                                     REPUBLIC OF MALTA
                           THE KINGDOM OF THE NETHERLANDS
                                  THE AUSTRIAN REPUBLIC
                                    REPUBLIC OF POLAND
                                THE PORTUGUESE REPUBLIC
                                   REPUBLIC OF SLOVENIA
                                     SLOVAKIA REPUBLIC
                                 THE REPUBLIC OF FINLAND
                                 THE KINGDOM OF SWEDEN
       THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
   contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY, hereinafter
   referred to as the "Member States", and
EN                                               11                                   EN
 ---pagebreak---    the EUROPEAN COMMUNITY, hereinafter referred to as "the Community", on the one
   part,
   and the SYRIAN ARAB REPUBLIC, hereinafter referred to as "Syria", on the other part,
   CONSIDERING the importance of the existing traditional links between the Community and
   its Member States on the one hand, and Syria on the other, and the common values that they
   share,
   CONSIDERING that the Community and its Member States on the one hand and Syria on the
   other wish to strengthen those links and establish lasting relations based on reciprocity,
   partnership and joint development,
   CONSIDERING the importance which the Parties attach to the purposes and principles of the
   Charter of the United Nations, the observance of human rights, democratic principles and
   political and economic freedoms, which form the very basis of the Association,
   CONSIDERING the political and economic developments that have taken place in Europe
   and in Syria in the past years, and conscious of the need to associate their efforts to strengthen
   political stability and economic development through the encouragement of cooperation both
   within a comprehensive Euro- Mediterranean framework and at the sub- regional level;
   CONSCIOUS of Syria’s determination to develop the interaction of its economy with the
   world economy and its cooperation in this context with the Community and its Member
   States;
   CONSCIOUS of the importance of this Agreement based on co-operation and dialogue in
   order to achieve permanent security and stability in the Euro-Mediterranean region;
   CONSIDERING that the proliferation of weapons of mass-destruction (WMD) and their
   means of delivery, both to state and non-state actors, represents one of the most serious threats
   to international stability and security;
   DESIROUS of co-operating to counter the threat of illicit use and trafficking of WMD-related
   goods and technologies, and recognizing that setting up an effective national system of export,
   transit and end-use controls will also facilitate the acquisition of goods and technologies for
   the development of Syria;
   CONSCIOUS that international crime and terrorism represent a threat to the fulfilment of the
   objectives of the agreement and stability of the region;
   DESIROUS of establishing and developing regular political dialogue on bilateral and
   international issues of mutual interest;
   TAKING INTO ACCOUNT the will of the Community to provide Syria with support in its
   endeavours to pursue economic reform and social development through effective cooperation
   mechanisms;
   BEARING IN MIND the difference in the level of economic and social development between
   the Community and Syria, and desirous of working together to overcome these differences
   and achieve the objectives of this Association through the appropriate provisions of this
   Agreement;
EN                                                 12                                                 EN
 ---pagebreak---    DESIROUS of strengthening cooperation, supported by a regular dialogue, in economic,
   scientific, environmental, technological, audio-visual, social and cultural matters with a view
   to improving mutual knowledge and reaching a better mutual understanding;
   CONSIDERING the importance for the Community and for Syria of free trade, as guaranteed
   by the General Agreement on Tariffs and Trade of 1994 (GATT) and by the other multilateral
   agreements annexed to the Treaty establishing the World Trade Organization (WTO);
   CONVINCED that this Association Agreement will create an environment appropriate for the
   further development of their economic relations, in particular in the fields of trade,
   investment, technological modernisation, co-operation, including appropriate economic
   restructuring;
   CONFIRMING that the provisions of this agreement that fall within the scope of Part III,
   Title IV of the Treaty establishing the European Community bind the United Kingdom and
   Ireland as separate Contracting Parties, and not as part of the European Community, until the
   United Kingdom and Ireland (as the case may be) notifies Syria that it has become bound as
   part of the European Community in accordance with the Protocol on the position of the
   United Kingdom and Ireland annexed to the Treaty on the European Union and the Treaty
   establishing the European Community. The same applies to Denmark, in accordance with the
   Protocol annexed to those Treaties on the position of Denmark;
   have agreed as follows:
                                                 Article 1
   1.        An Association is hereby established between the Community and its Member States
             on the one part and Syria on the other part.
   2.        The aims of this Agreement are:
             (a)   To provide an appropriate framework for the political dialogue between the
                   Parties, allowing the development of close political relations in all fields they
                   consider to be of interest to such dialogue;
             (b)   to establish the conditions for the progressive liberalisation of trade in goods,
                   services and capital;
             (c)   to develop exchanges and foster balanced economic and social relations
                   between the Parties, in particular through dialogue and cooperation intended to
                   enhance the prosperity and economic and social development in Syria;
             (d)   to encourage cooperation both within a comprehensive Euro-Mediterranean
                   framework and at the sub-regional level through integration between Syria and
                   its regional partners;
             (e)   to promote cooperation in the economic, social, cultural and financial fields, as
                   well as other areas which might be of mutual interest.
EN                                                  13                                               EN
 ---pagebreak---                                                 Article 2
   Respect for the democratic principles and fundamental human rights established by the
   Universal Declaration of Human Rights shall inspire the domestic and external policies of the
   Parties and shall constitute an essential element of this Agreement.
EN                                                 14                                            EN
 ---pagebreak---                                                 TITLE I
                           POLITICAL DIALOGUE AND COOPERATION
                                                Article 3
   Regular political dialogue and co-operation shall be established between the Parties in order
   to foster permanent relations of cooperation between them and to contribute to the prosperity,
   the stability and security of the Mediterranean region, and create a climate of intercultural
   understanding and tolerance.
                                                Article 4
   The Parties reiterate their shared objective to pursue a mutually and effectively verifiable
   Middle East zone free of weapons of mass destruction, nuclear, biological and chemical and
   their delivery systems. They agree to promote jointly the signature, ratification and
   implementation by all Mediterranean partners of all non-proliferation instruments, including
   the Non-Proliferation Treaty (NPT), the Comprehensive Test Ban Treaty (CTBT), the
   Biological Weapons Convention (BWC), and the Chemical Weapons Convention (CWC).
                                                Article 5
   1.        The Parties agree to cooperate and to contribute to countering the proliferation of
             weapons of mass-destruction, nuclear, biological and chemical and their means of
             delivery through full compliance with their existing obligations under international
             disarmament and non-proliferation treaties and agreements and their other existing
             relevant international obligations, as well as United Nations Security Council
             resolutions and ensuring their effective implementation. The Parties agree that this
             provision constitutes an essential element of this Agreement.
   2.        They also agree to cooperate and contribute to this end by:
             taking action towards the signature, ratification or accession, as appropriate, and full
             implementation of all other relevant international instruments;
             setting up effective national systems of export, transit and end-use controls of WMD-
             related goods and technologies, including dual use, and containing enforcement
             procedures with appropriate penalties.
   3.        The political dialogue as set out in Article 6 will accompany and consolidate the
             elements in articles 4 and 5.
                                                Article 6
   1.        The political dialogue shall cover subjects of common interest, and in particular
             peace, respect for international law and territorial integrity, regional stability and
             security, human rights, democracy and regional development, and shall aim to open
             the way to new forms of cooperation with a view to common goals, in these areas.
EN                                                 15                                                 EN
 ---pagebreak---    2. The political dialogue and co-operation will in particular:
      (a)   facilitate the process of rapprochement between the Parties, through the
            development of a better mutual understanding and the promotion of
            convergence of views through regular consultations on international issues of
            mutual interest;
      (b)   give each party the opportunity to gain a better understanding of the positions
            and interests of the other party, and give them due consideration;
      (c)   strengthen international non-proliferation and enhance mutual security and
            stability in the Euro-Mediterranean region;
      (d)   help develop joint initiatives on the basis of the principles which inspire this
            Agreement.
   3. The political dialogue shall take place at regular intervals and whenever necessary, in
      particular :
      (a)   at ministerial level, mainly in the framework of the Association Council;
      (b)   at senior official level of Syria on the one part, and of the Presidency of the
            Council, assisted by the Secretary-General/High Representative, and the
            European Commission on the other;
      (c)   by taking full advantage of all diplomatic channels including regular briefings
            by officials, consultations on the occasion of international meetings and
            contacts between diplomatic representatives in third countries;
      (d)   whenever necessary, by any other means which would make a useful
            contribution to consolidating, developing and stepping up this dialogue.
EN                                           16                                               EN
 ---pagebreak---                                                 TITLE II
                                    FREE MOVEMENT OF GOODS
                                          BASIC PRINCIPLES
                                                 Article 7
   The Community and Syria shall gradually establish a free trade area over a transitional period
   lasting a maximum of 12 years starting from the date of the entry into force of this Agreement
   in accordance with the provisions of this Agreement and in conformity with those of the
   General Agreement on Tariffs and Trade 1994 and its subsequent revisions, hereinafter
   referred to as the GATT.
                                               CHAPTER I
                                ELIMINATION OF CUSTOMS DUTIES
                                                 Article 8
   A customs duty includes any duty or charge of any kind imposed in connection with the
   importation or exportation of a good, including any form of surtax or surcharge in connection
   with such importation or exportation, but does not include any:
   (a)       internal taxes or other internal charges imposed consistently with Article 24 (1);
   (b)       antidumping or countervailing duties applied consistently with Articles 28 and 29;
   (c)       fees or other charges imposed consistently with GATT Article VIII, most notably
             these fees and other charges shall be limited in amount to the approximate cost of
             services rendered and shall not represent an indirect protection for domestic products
             or a taxation of imports or exports for fiscal purposes. They shall be based on
             specific rates that correspond to the real value of the service rendered.
                                                 Article 9
   1.        Customs duties on imports between the Parties shall be eliminated in accordance
             with the provisions of sections 1 and 2 below.
   2.        Customs duties on exports between the Parties shall be eliminated as from the date of
             entry into force of this Agreement.
   3.        For each product, the basic customs duty to which the tariff elimination provisions
             are to be applied shall be :
EN                                                  17                                              EN
 ---pagebreak---              a)     the European Community Common Customs Tariff actually applied erga
                    omnes on the day of the signature of this Agreement;8
             b)     the Syrian tariff set out in Annex I.
   4.        If a Party reduces its applied customs duty rate from that mentioned in paragraph 3
             and prior to the ending of the transitional period, the Tariff elimination provisions of
             that Party shall apply from the date of that reduction, to the reduced rates.
   5.        In the event of the accession of Syria to the WTO, the basic customs duty to which
             the tariff elimination provisions are to be applied shall be the WTO bound rate or
             other, if lower, effectively applied rate erga omnes as of the date of the accession. If,
             after the accession to the WTO, a tariff reduction is applied on a erga omnes basis,
             the reduced rate shall apply as the basic customs duty from the date of application of
             that reduction.
                                                  Article 10
   No new customs duties shall be introduced nor shall those already applied be increased in
   trade between the Parties as from the date of signature of this Agreement.
                                                  Section 1
                                        INDUSTRIAL PRODUCTS
                                                  Article 11
   The provisions of this Section shall apply to products originating in the Community and Syria
   falling within Chapters 25 to 97 of the Combined Nomenclature and of the Syria customs
   tariff with the exception of the products listed in Annex II.
                                                  Article 12
   Imports into the Community of products originating in Syria shall be allowed free of customs
   duties as defined in article 8.
                                                  Article 13
   (1)       Customs duties as defined in Article 8 applicable to imports into Syria of products
             originating in the Community shall be submitted to a linear dismantling to zero
             according to the following scheme and schedule:
             1.     All duties at 1%, 1,5%, 1,7%, 3% and 3,5% listed in Annex I shall be abolished
                    at the date of the entry into force of this Agreement.
   8
           Council Regulation (EEC) N° 2658/87 OJCE L256 07/09/1987; Commission Regulation (EC)
           N°1789/2003 L281 30/10/2003 (annual update of annex I: nomenclature).
EN                                                    18                                               EN
 ---pagebreak---        2.    Except for products covered by paragraphs 7 and 8, all duties at 5% and 7%
             listed in Annex I shall be abolished in three years after the date of the entry into
             force of this Agreement.
       3.    Except for products covered by paragraphs 7 and 8, all duties at 10%, 11,75%
             and 14,5% listed in Annex I shall be abolished in six years after the date of the
             entry into force of this Agreement.
       4.    Except for products covered by paragraphs 7 and 8, all duties at 20% and
             23,5% listed in Annex I shall be abolished in nine years after the date of the
             entry into force of this Agreement.
       5.    Except for products covered by paragraphs 7 and 8, all duties at 29%, 35% and
             47% listed in Annex I shall be abolished in twelve years after the date of the
             entry into force of this Agreement.
       6.    Except for products 8703.23.91 and 8703.23.92, all duties above 50% listed in
             Annex I shall be brought down to 50% at the entry into force of this Agreement
             and shall be abolished in twelve years after the date of the entry into force of
             this Agreement.
       7.    For products covered by the Information Technology Agreement of the World
             Trade Organisation as listed in Protocol 8, all duties shall be abolished at the
             date of the entry into force of this Agreement.
       8.    For products of the categories HS 28, 29, 30, 31, 35, 36, 37 and 38, all duties
             shall be abolished at the date of the entry into force of this Agreement.
       9.    For product 8703.23.91 as specified in Annex I, the duty shall be brought down
             in a linear manner from 145% to 65% in three years after the date of the entry
             into force of this Agreement, and then be abolished in the nine remaining years
             of the transition period.
       10.   For product 8703.23.92 as specified in Annex I, the duty shall be brought down
             in a linear manner from 255% to 150% in three years after the date of the entry
             into force of this Agreement, and then be abolished in the nine remaining years
             of the transition period.
   (2) In the event of serious difficulties for a given product, the schedule applicable under
       paragraph (1) above may be reviewed by the Association Committee by common
       accord on the understanding that the schedule may not be extended in respect of the
       product concerned beyond the maximum transitional period of 12 years. If the
       Association Committee has not taken a decision within thirty days of an application
       by Syria to review the schedule for a given product, Syria may suspend the
       concerned schedule provisionally for a period that may not exceed one year.
EN                                            19                                                  EN
 ---pagebreak---                                               Article 14
   The provisions regarding the abolition of customs duties on imports shall also apply to
   customs duties of a fiscal nature.
                                              Article 15
   1.      Exceptional measures of limited duration that derogate from the provisions of Article
           12 may be taken by Syria in the form of an increase or reintroduction of customs
           duties during the transition period.
           a)     These measures may only concern infant industries, or certain sectors
                 undergoing restructuring or facing serious difficulties, particularly where these
                 difficulties produce major social problems.
           b)    Customs duties applicable on import into Syria of products originating in the
                 Community introduced by these measures may not exceed 25% ad valorem and
                 shall maintain an element of preference for products originating in the
                 Community. The total yearly average value of imports of the products that are
                 subject to these measures may not exceed 20% of the total yearly average value
                 of imports of industrial products originating in the Community during the last
                 three years for which statistics are available.
           c)     These measures shall be applied for a period not exceeding five years unless a
                 longer duration is authorised by the Association Committee. They shall cease
                 to apply at the latest on the expiry of the maximum transitional period of
                 twelve years.
           d)    No such measures may be introduced in respect of a product if more than three
                 years have elapsed since the elimination of all duties and quantitative
                 restrictions or charges or measures having equivalent effect concerning that
                 product.
           e)     Syria shall inform the Association Committee of any exceptional measures it
                 intends to take. Within thirty days after this notification, the Community may
                 request consultations on such measures and the sectors to which they apply
                 before they are implemented. When taking such measures Syria shall provide
                 the Committee with a timetable for the elimination of the customs duties
                 introduced under this Article. This timetable shall provide for a phasing out of
                 these duties in equal annual instalments starting at the latest two years after
                 their introduction. The Association Committee may decide on a different
                 timetable.
   2.      By way of derogation from the fourth subparagraph of paragraph 1, the Association
           Committee may exceptionally, in order to take account of the difficulties involved in
           setting up a new industry, authorise Syria to maintain the measures already taken
           pursuant to paragraph 1 for a maximum period of three years beyond the twelve-year
           transitional period.
EN                                                20                                               EN
 ---pagebreak---                                                 Section 2
       AGRICULTURAL, FISHERIES AND PROCESSED AGRICULTURAL PRODUCTS
                                                Article 16
   The provisions of this Section shall apply to products originating in the Community and Syria
   listed in chapters 1 to 24 of the Combined Nomenclature and of the Syria customs tariff and to
   the products listed in Annex II.
                                                Article 17
   The Community and Syria shall progressively establish a greater liberalisation of their
   reciprocal trade in agriculture, fisheries and processed agricultural products.
                                                Article 18
   1.        Agricultural products originating in Syria shall benefit on import into the Community
             from the provisions set out in Protocol No. 1.
   2.        Agricultural products originating in the Community shall benefit on import into Syria
             from the provisions set out in Protocol No. 2.
   3.        Fisheries products originating in Syria shall benefit on import into the Community
             from the provisions set out in Protocol No. 3.
   4.        Fisheries products originating in the Community shall benefit on import into Syria
             from the provisions set out in Protocol No. 4.
                                                Article 19
   Trade in Processed Agricultural Products falling under this section shall be subject to the
   arrangements set out in Protocol No. 5.
                                                Article 20
   1.        During the third year of implementation of the Agreement, the Community and Syria
             shall examine the situation in order to determine the measures to be applied by the
             Community and Syria from the beginning of the fourth year after the entry into force
             of the agreement, in accordance with the objective set out in Article 17.
   2.        Without prejudice to the provisions of the preceding paragraph and taking account of
             the volume of trade in agricultural products, fisheries products and processed
             agricultural products between the Parties and the particular sensitivity of such
             products, the Community and Syria shall examine in the Association Council,
             product by product and on a reciprocal and orderly basis, the possibilities of granting
             each other further concessions.
EN                                                  21                                               EN
 ---pagebreak---                                                 Article 21
   1.      The Parties shall co-operate in the area of sanitary and phytosanitary measures with
           the objectives of facilitating trade. The Parties will be bound by the principles set out
           in the WTO Agreement on the Application of Sanitary and Phytosanitary Measures,
           when applying SPS-measures.
   2.      On request the Parties shall identify and address problems that may arise from the
           application of specific SPS-measures with a view to reaching mutually acceptable
           solutions.
                                                Article 22
   1.      In the event of specific rules being introduced as a result of the implementation of its
           agricultural policy or of any alteration of the current rules or in the event of any
           alteration or extension of the provisions relating to the implementation of its
           agricultural policy, the Party concerned may amend the arrangements resulting from
           the Agreement in respect of the products concerned.
   2.      In such cases the Party concerned shall inform the Association Committee. At the
           request of the other Party, the Association Committee shall meet to take due account
           of the interests of the other Party.
   3.      If the Community or Syria, in applying paragraph 1, modifies the arrangements made
           by this Agreement for agricultural products, they shall accord imports originating in
           the other Party an advantage comparable to that provided for in this Agreement.
   4.      The application of this Article should be the subject of consultations in the
           Association Council.
                                             CHAPTER 2
                                      COMMON PROVISIONS
                                                Article 23
   All import or export prohibitions or restrictions in trade between the Parties, other than
   customs duties and taxes, whether made effective through quotas, import or export licenses or
   other measures, shall be eliminated upon the entry into force of this Agreement. No new such
   measures shall be introduced. This provision is without prejudice to the application of Articles
   28 and 29.
                                                Article 24
   1.      Imported products of the territory of the other Party shall not be subject, either
           directly or indirectly, to internal taxes or other internal charges of any kind in excess
           of those applied, directly or indirectly, to like domestic products. Moreover, the
           Parties shall not otherwise apply internal taxes or other internal charges so as to
           afford protection to domestic production.
EN                                                  22                                               EN
 ---pagebreak---    2.       Imported products of the territory of the other Party shall be accorded treatment no
            less favourable than that accorded to like domestic products in respect of all laws,
            regulations and requirements affecting their internal sale, offering for sale, purchase,
            transportation, distribution or use. The provisions of this paragraph shall not prevent
            the application of differential internal transportation charges which are based
            exclusively on the economic operation of the means of transport and not on the
            origin of the product.
   3.       Neither Party shall establish or maintain any internal quantitative regulation relating
            to the mixture, processing or use of products in specified amounts or proportions
            which requires, directly or indirectly, that any specified amount or proportion of any
            product which is the subject of the regulation must be supplied from domestic
            sources. Moreover, neither Party shall otherwise apply internal quantitative
            regulations so as to afford protection to domestic production.
   4.       The provisions of this Article shall not apply to laws, regulations, procedures or
            practices governing Government procurement as covered in articles 67 to 71.
                                               Article 25
                                        Anti-fraud cooperation
   1.       The Parties agree that administrative co-operation is essential for the implementation
            and the control of the preferential treatment granted under this Title and underline
            their commitment to combat irregularities and fraud in customs and related matters.
   2.       Where a Party has made a finding, on the basis of objective information, of a failure
            to provide administrative co-operation and/or of irregularities or fraud under this
            Title, the Party concerned may temporarily suspend the relevant preferential
            treatment of the product(s) concerned in accordance with this Article.
   3.       For the purpose of this Article a failure to provide administrative co-operation shall
            mean, inter alia :
            a)     a repeated failure to respect the obligations to verify the originating status of
                   the product(s) concerned;
            b)     a repeated refusal or undue delay in carrying out and/or communicating the
                   results of subsequent verification of the proof of origin;
            c)     a repeated refusal or undue delay in obtaining authorisation to conduct
                   administrative co-operation missions to verify the authenticity of documents or
                   accuracy of information relevant to the granting of the preferential treatment in
                   question.
   For the purpose of this Article a finding of irregularities or fraud may be made, inter alia,
   where there is a rapid increase, without satisfactory explanation, in imports of goods
   exceeding the usual level of production and export capacity of the other Party that is linked to
   objective information concerning irregularities or fraud.
EN                                                 23                                                EN
 ---pagebreak---    4.      The application of a temporary suspension shall be subject to the following
           conditions:
           a)     The Party which has made a finding, on the basis of objective information, of a
                  failure to provide administrative co-operation and/or of irregularities or fraud
                  in customs and related matters, the Party concerned shall without undue delay
                  notify the Association Committee of its finding together with the objective
                  information and enter into consultations within the Association Committee, on
                  the basis of all relevant information and objective findings, with a view to
                  reaching a solution acceptable to both Parties.
           b)     Where the Parties have entered into consultations within the Association
                  Committee as above and have failed to agree on an acceptable solution within
                  3 months following the notification, the Party concerned may temporarily
                  suspend the relevant preferential treatment of the product(s) concerned. A
                  temporary suspension shall be notified to the Association Committee without
                  undue delay.
           c)     Temporary suspensions under this article shall be limited to that necessary to
                  protect the financial interests of the Party concerned. They shall not exceed a
                  period of six months, which may be renewed. Temporary suspensions shall be
                  notified immediately after their adoption to the Association Committee. They
                  shall be subject to periodic consultations within the Association Committee in
                  particular with a view to their termination as soon as the conditions for their
                  application are no longer given.
   5.      At the same time as the notification to the Association Committee under paragraph
           4 (a) of this Article, the Party concerned should publish a notice to importers in its
           Official Journal. The notice to importers should indicate for the product concerned
           that there is a finding, on the basis of objective information, of a failure to provide
           administrative co-operation and/or of irregularities or fraud.
                                               Article 26
   Application of the provisions of this Agreement shall be without prejudice to Council
   Regulation (EEC) N° 1911/91 of 26 June 1991 and Council Regulation (EC) N° 704/2002 of
   25 March 2002 on the application of the provisions of Community law to the Canary Islands.
                                               Article 27
   1.      The Agreement shall not preclude the maintenance or establishment of customs
           unions, free trade areas or arrangements for frontier trade, except insofar as they alter
           the trade arrangements provided for in the Agreement.
   2.      Consultation between the Community and Syria shall take place within the
           Association Council concerning agreements establishing customs unions or free trade
           areas and, where appropriate, on other major issues related to their respective trade
           policy with third countries. In particular, in the event of a third country acceding to
           the Union, such consultation shall take place so as to ensure that account may be
           taken of the mutual interests of the Community and Syria.
EN                                                 24                                                EN
 ---pagebreak---                                         Article 28
   1. If one of the Parties finds that dumping is taking place in trade with the other Party
      within the meaning of Article VI of the General Agreement on Tariffs and Trade, it
      may take appropriate measures against this practice in accordance with the WTO
      Agreement on the implementation of Article VI of the General Agreement on Tariffs
      and Trade and related internal legislation.
   2. This Article will not be subject to the provisions of Title V (Dispute Settlement) of
      this Agreement.
                                        Article 29
   1. The WTO Agreement on Subsidies and Countervailing Measures shall be applicable
      between the Parties.
   2. If either Party finds that subsidy is taking place in trade with the other party within
      the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate
      measures against this practice in accordance with the WTO Agreement on Subsidies
      and Countervailing Measures and related internal legislation.
   3. This Article will not be subject to the provisions of Title V (Dispute Settlement) of
      this Agreement.
                                        Article 30
   1. The provisions of the Article XIX GATT 1994 and the WTO Agreement on
      Safeguards are applicable between the Parties.
   2. Before applying safeguard measures pursuant to the provisions of the Article XIX
      GATT 1994 and the WTO Agreement on Safeguards, the Party intending to apply
      such measures shall supply the Association Committee with all relevant information
      required for a thorough examination of the situation with a view to seeking a solution
      acceptable to the Parties.
      In order to find such a solution, the Parties shall immediately from the date of
      receiving the request from the requesting party hold consultations within the
      Association Committee. If, as a result of the consultations, the Parties do not reach an
      agreement within thirty days of the initiation of the consultations on a solution to
      avoid the application of the safeguard measures, the Party intending to apply
      safeguard measures may apply the provisions of the Article XIX GATT 1994 and the
      WTO Agreement on Safeguards.
   3. In the selection of safeguard measures pursuant this article, the Parties shall give
      priority to those, which cause least disturbance to the achievement of the objectives
      of this Agreement. Such measures shall not exceed what is necessary to remedy the
      serious injury, and shall preserve the level of preference granted under this
      Agreement.
EN                                           25                                                EN
 ---pagebreak---    4. Safeguard measures shall be notified immediately to the Association Committee and
      shall be the subject of periodic consultations within the Committee, particularly with
      a view to their abolition as soon as circumstances permit.
   5. This Article will not be subject to the provisions of Title V (Dispute Settlement) of
      this Agreement.
                                         Article 31
   1. Where compliance with the provisions of this title leads to:
      re-export towards a third country of a product against which the exporting party
      maintains quantitative export restrictions, export duties, or measures having
      equivalent effect, or
      a serious shortage, or threat thereof, of foodstuffs or of a product essential to the
      exporting Party;
      and where the situations above referred to give rise, or are likely to give rise to major
      difficulties for the exporting Party, that Party may take appropriate measures under
      the conditions and in accordance with the procedures laid down in paragraph 2.
   2. In the selection of measures, priority must be given to those which least disturb the
      functioning of the arrangements in this Agreement. The measures shall be non
      discriminatory nor a disguised restriction on trade, and shall be eliminated when the
      conditions no longer justify their maintenance. In addition, the measures which may
      be adopted shall not operate to increase the exports of or the protection afforded to
      domestic industry processing the goods concerned by the measures.
   3. Before taking the measures provided for in paragraph 1 and 2 of this Article or, as
      soon as possible in cases to which paragraph 4 of this Article applies, the Community
      or Syria, as the case may be, shall supply the Association Committee with the
      relevant information, with a view to seeking a solution acceptable to the parties. The
      difficulties arising from the situations referred to in paragraph 1 shall be submitted
      for examination to the Association Committee. The Committee may take any
      decision needed to put an end to the difficulties. If it has not taken such a decision
      within thirty days of the matter being referred to it, the exporting Party may apply
      appropriate measures on the exportation of the product concerned.
   4. Where exceptional and critical circumstances requiring immediate action make prior
      information or examination, as the case may be impossible, the Community or Syria,
      whichever is concerned, may apply forthwith the precautionary measures necessary
      to deal with the situation and shall inform the other Party immediately thereof.
   5. Any measures applied pursuant to this Article shall be immediately notified to the
      Association Committee and shall be subject of period of consultations within that
      body, particularly with a view to establish a timetable for their elimination as soon as
      circumstances permit.
EN                                           26                                                 EN
 ---pagebreak---                                                 Article 32
   Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or
   goods in transit justified on grounds of public morality, public policy or public security, of the
   protection of health and life of humans, animals or plants; the protection of national treasures
   possessing artistic, historic or archaeological value; the conservation of exhaustible natural
   resources; the protection of intellectual, industrial and commercial property or regulations
   concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a
   means of arbitrary discrimination or a disguised restriction on trade between the Parties.
                                                Article 33
   The concept of "originating products" for the application of the provisions of the present Title
   and the methods of administrative co-operation relating to them are set out in Protocol 6.
                                                Article 34
   The Combined Nomenclature shall be used for the classification of goods for imports into the
   Community. The Syrian customs tariff shall be applied to the classification of goods for
   imports into Syria.
                                                Article 35
   Syria shall aim at entering into negotiations with the countries having a customs union with
   the EU in view of establishing with these countries the same trade regime as in this
   Association Agreement for all areas covered by the customs union.
                                              CHAPTER 3
                               CUSTOMS AND RELATED MATTERS
                                                Article 36
                                               Objectives
   Parties recognise that the full implementation of the trade provisions and the consequent
   mutual benefits of enhanced trade flows resulting from tariff liberalisation should be flanked
   by efficient customs services. To this end, Parties agree that customs legislation and
   procedures shall be based upon simplification, harmonisation and computerisation, as well as
   upon the principles of non-discrimination, transparency and the need to avoid unnecessary
   procedural obstacles to trade. By these means parties commit themselves to facilitating
   legitimate trade, and effective controls to combat fraud and illicit trade.
EN                                                  27                                                EN
 ---pagebreak---                                           Article 37
                          Customs and administrative cooperation
   1. In order to ensure compliance with the provisions of this Title, and effectively
      respond to the objectives laid down in Article 1, the Parties shall base their
      cooperation upon the following principles and undertake to :
      a)    exchange information concerning customs legislation and procedures;
      b)    ensure the correct application of customs rules and procedures agreed by the
            Parties at a bilateral or multilateral level;
      c)    collaborate on legislative and operational initiatives relating to import, export
            and customs procedures, as well as towards ensuring an effective service to the
            business community;
      d)    cooperate on the computerisation of customs procedures and collaborate, where
            appropriate towards the establishment of common standards;
      e)    provide and ensure the freedom of transhipment operations and transit
            movements through their respective territories, in accordance with Article V of
            the GATT (1994) and implement agreed relevant international and/or regional
            standards and instruments applicable to transit;
      f)    ensure that all administrative fees and charges levied in respect of importation
            and exportation, are published in advance and are commensurate with services
            given, in accordance with Article VIII of GATT (1994);
      g)    establish as far as possible, common positions in international organisations in
            the field of customs such as the WTO, WCO, UN and UNCTAD; and
      h)    cooperate where appropriate on technical assistance, including the organisation
            of seminars and placements.
   2. Notwithstanding paragraph 1, the administrations of both Parties shall provide
      mutual administrative assistance in customs matters in accordance with the
      provisions of Protocol 7.
                                          Article 38
                            Customs and legislative procedures
   1. The Parties agree that their respective trade and customs provisions and procedures
      shall be based upon:
      a)    the protection of legitimate trade through effective enforcement and
            compliance of legislative requirements;
EN                                            28                                              EN
 ---pagebreak---       b)    legislation that avoids unnecessary burdens on economic operators, safeguards
            against fraud, and provides further facilitation for high levels of compliance;
      c)    each Party having a uniform Customs Code, applicable throughout its
            respective territory;
      d)    the application of modern customs techniques, including risk assessment,
            simplified procedures for entry and release of goods, post release controls, and
            company audit methods;
      e)    procedures that are transparent, efficient and simplified, in order to reduce
            costs and increase predictability for economic operators, including small and
            medium sized companies;
      f)    the development of Information Technology-based systems, drawing upon
            international standards, for both export and import operations, to replace paper-
            based procedures and to enable the electronic exchange of all official data
            between traders and customs administrations, as well as between customs and
            other agencies, in order to facilitate the provision of rapid release procedures.
            Such systems may also provide for the payment of duties, taxes and other fees
            by electronic transfer;
      g)    rules and procedures that provide for advance binding rulings on customs
            matters, notably on tariff classification and rules of origin. A ruling may be
            modified or revoked at any time but only after notification to the affected
            operator and without retroactive effect unless the ruling has been made on the
            basis of incorrect or incomplete information being provided;
      h)    simplified procedures for authorised traders according to objective and non-
            discriminatory criteria, and which can be met by compliant small and medium
            sized enterprises as well as larger operators;
      i)    import provisions that do not include any requirements for pre-shipment
            inspections as defined by the WTO Agreement on Pre-shipment Inspection;
            and
      j)    rules that ensure that any penalties imposed for minor breaches of customs
            regulations or procedural requirements be proportionate and non-
            discriminatory and, in their application, do not result in unwarranted delays,
            pursuant to Article VIII of the GATT (1994).
   2. In order to improve working methods, avoid unnecessary procedural obstacles to
      trade, as well as to ensure non-discrimination, transparency, efficiency, integrity and
      accountability of operations, the Parties shall :
      a)    simplify requirements and formalities in respect of the release and clearance of
            goods; this shall include collaboration on the development of procedures
            enabling the submission of import or export data to a single agency; and co-
            ordination between customs and other control agencies so as to enable official
            controls upon import or export to be carried out, as far as possible, by a single
            agency.
EN                                           29                                               EN
 ---pagebreak---            b)     take further steps towards the reduction, simplification and standardisation of
                  data and documentation required by customs and other agencies, including the
                  use of a Single Administrative Document (SAD) and data message, based on
                  international standards and relying as far as possible on commercially available
                  information.
           c)     apply the international rules and standards in the field of customs, including the
                  substantive elements of the revised Kyoto Convention on the simplification and
                  harmonisation of customs procedures.
           d)     provide effective, prompt and non-discriminatory procedures enabling the right
                  of appeal, against customs and other agency administrative actions, rulings and
                  decisions affecting import or export of goods, in conformity with Article X of
                  the GATT (1994).
           e)     ensure that the highest standards of integrity be maintained, through
                  application of measures reflecting the principles of the relevant international
                  conventions and instruments in this field.
                                              Article 39
                               Relations with the Business Community
   The Parties agree :
   1)      on the need for timely consultation with trade representatives on legislative proposals
           and general procedures related to customs and trade issues. To that end, appropriate
           consultation mechanisms between administrations and the business community, shall
           be established by each Party;
   2)      to publish, as far as possible through electronic means, and publicise new legislation
           and general procedures related to customs and trade issues prior to the introduction
           of any such legislation and procedures, as well as changes to and interpretations of
           such legislation and procedures. They shall also make publicly available relevant
           notices of an administrative nature, including agency requirements and entry
           procedures, hours of operation and operating procedures for customs offices at ports
           and border crossing points, and points of contact for information enquiries;
   3)      to foster co-operation between operators and relevant administrations via the use of
           non-arbitrary and publicly accessible Memoranda of Understanding, based on those
           promulgated by the WCO;
   4)      to ensure that their respective customs and related requirements and procedures
           continue to meet the needs of the trading community, follow best practices, and
           where changes in circumstances allow the objectives of those requirements or
           procedures to be achieved in a less burdensome or trade restrictive manner, to adjust
           those procedures accordingly.
EN                                                30                                                 EN
 ---pagebreak---                                                Article 40
                                          Customs valuation
   1.      The WTO Customs Valuation Agreement, without reserves and options, shall govern
           customs valuation rules applied to reciprocal trade between the Parties.
   2.      The Parties shall cooperate with a view to reaching a common approach to issues
           relating to customs valuation, in particular the elaboration of a "code of good
           practice" in relation to working methods and operational aspects, the use of
           indicative or reference indices, appropriate documentation to certify the accuracy of
           the customs value and the use of securities.
                                               Article 41
                                                Review
   Provisions laid down in articles 38 to 40 will be subject to yearly stocktaking by the
   Association Committee.
                                               Article 42
                                    Special committee on customs
   1.      The Parties hereby establish a Special Committee on Customs Cooperation and Rules
           of Origin, composed of representatives of the Parties. The Committee shall meet on a
           date and with an agenda agreed in advance by the Parties. The office of chairperson
           of the Committee shall be held alternately by each of the Parties. The Committee
           shall report to the Association Committee.
   2.      The functions of the Committee shall include :
           a)     monitoring the implementation and administration of this section and of the
                  Protocol on rules of origin;
           b)     providing a forum to consult and discuss on all issues concerning customs,
                  including in particular customs procedures, customs valuation, tariff regimes,
                  customs nomenclature, customs cooperation and mutual administrative
                  assistance in customs matters;
           c)     providing a forum to consult and discuss on issues relating to rules of origin
                  and administrative cooperation;
           d)     enhancing cooperation on the development, application and enforcement of
                  customs procedures, mutual administrative assistance in customs matters, rules
                  of origin and administrative cooperation.
   3.      The Parties may agree to hold ad hoc meetings for customs cooperation or for rules
           of origin and mutual administrative assistance.
EN                                                 31                                            EN
 ---pagebreak---                                         TITLE III
                     RIGHT OF ESTABLISHMENT AND SERVICES
                                       CHAPTER 1
                              RIGHT OF ESTABLISHMENT
                                         Article 43
   1. a)     The Community and its Member States shall grant for the establishment of
             Syrian companies treatment no less favourable than that accorded to like
             companies of any third country;
      b)     without prejudice to the reservations listed in Annex III, the Community and its
             Member States shall grant to subsidiaries of Syrian companies established in a
             Member State treatment no less favourable than that accorded to any like
             Community company, in respect of their operations;
      c)     the Community and its Member States shall grant to branches of Syrian
             companies, established in a Member State, treatment no less favourable than
             that accorded to like branches of companies of any third country, in respect of
             their operations.
   2. (a)    without prejudice to the reservations listed in Annex IV, Syria shall grant for
             the establishment of Community companies in its territory treatment no less
             favourable than that accorded to like Syrian companies or to companies of any
             third country, whichever is the better;
      b)     Syria shall grant to subsidiaries of Community companies established in its
             territory, treatment no less favourable than that accorded to like Syrian
             companies, in respect of their operations;
      c)     Syria shall grant to branches of Community companies established in its
             territory, treatment no less favourable than that accorded to like branches of
             companies of any third country, in respect of their operations.
   3. The provisions of paragraphs 1(b) and 2(b) cannot be used so as to circumvent a
      Party's legislation and regulations applicable to access to specific sectors or activities
      by subsidiaries or branches of companies of the other Party established in the
      territory of such first Party.
      The treatment referred to in paragraphs 1(b), 1(c) and 2(b) shall benefit companies,
      subsidiaries, and branches established in the Community and Syria respectively at
      the date of entry into force of this Agreement and companies, subsidiaries and
      branches established after that date once they are established.
EN                                           32                                                  EN
 ---pagebreak---                                                Article 44
   1.       The provisions of Article 43 shall not apply to air transport, inland waterways
            transport and maritime transport.
   2.       However, in respect of activities undertaken by shipping agencies for the provision
            of international maritime transport services, including multi-modal activities
            involving a sea leg, each Party shall permit to the companies of the other Party their
            commercial presence in its territory in the form of subsidiaries or branches, under
            conditions of establishment and operation no less favourable than those accorded to
            its own companies or to subsidiaries or branches of companies of any third country
            whichever are the better. Such activities include, but are not limited to:
            a)    marketing and sales of maritime transport and related services through direct
                  contact with customers, from quotation to invoicing, whether these services are
                  operated or offered by the service supplier itself or by service suppliers with
                  which the service seller has established standing business arrangements;
            b)    purchase and use, on their own account or on behalf of their customer (and the
                  resale to their customers) of any transport and related services, including
                  inward transport services by any mode, particularly inland waterways, road and
                  rail, necessary for the supply of an integrated service;
            c)    preparation of documentation concerning transport documents, customs
                  documents, or other documents related to the origin and character of the goods
                  transported;
            d)    provision of business information of any means, including computerised
                  information systems and electronic data interchange (subject to any
                  non-discriminatory restrictions concerning telecommunications);
            e)    setting up of any business arrangement, including participation in the
                  company's stock and the appointment of personnel recruited locally (or, in the
                  case of foreign personnel, subject to the relevant provisions of this Agreement),
                  with any locally established shipping agency;
            f)    acting on behalf of the companies, organising the call of the ship or taking over
                  cargoes when required.
                                               Article 45
   For the purpose of this Agreement:
            a)    a "Community company" or "Syrian company" respectively shall mean a
                  company set up in accordance with the laws of a Member State or of Syria
                  respectively and having its registered office or central administration or
                  principal place of business in the territory of the Community or Syria
                  respectively.
                  However, should the company, set up in accordance with the laws of a Member
                  State or Syria respectively, have only its registered office in the territory of the
EN                                                 33                                                  EN
 ---pagebreak---              Community or Syria respectively, the company shall be considered a
             Community or Syrian company respectively if its operations possess a real and
             continuous link with the economy of one of the Member States or Syria
             respectively;
      b)     "subsidiary" of a company shall mean a company which is controlled by the
             first company;
      c)     "branch" of a company shall mean a place of business not having legal
             personality which has the appearance of permanency, such as the extension of
             a parent body, has a management and is materially equipped to negotiate
             business with third parties so that the latter, although knowing that there will if
             necessary be a legal link with the parent body, the head office of which is
             abroad, do not have to deal directly with such parent body but may transact
             business at the place of business constituting the extension;
      d)     "establishment" shall mean the right of Community or Syrian companies as
             referred to in point (a) to take up economic activities by means of the setting up
             of subsidiaries and branches in Syria or in the Community respectively;
      e)     "operation" shall mean the pursuit of economic activities;
      f)     "economic activities" shall mean activities of an industrial, commercial and
             professional character;
      g)     "national of a Member State or of Syria" shall mean a physical person who is a
             national of one of the Member States or of Syria respectively;
      h)     with regard to international maritime transport, including inter-modal
             operations involving a sea leg, nationals of the Member States or of Syria
             established outside the Community or Syria respectively, and shipping
             companies established outside the Community or Syria and controlled by
             nationals of a Member State or Syrian nationals respectively, shall also be
             beneficiaries of the provisions of this Chapter and Chapter 2 if their vessels are
             registered in that Member State or in Syria respectively in accordance with
             their respective legislation.
                                           Article 46
   1. The Parties shall use their best endeavours to avoid taking any measures or actions
      which render the conditions for the establishment and operation of each other's
      companies more restrictive than the situation existing on the day preceding the date
      of signature of the Agreement.
   2. The provisions of this Article are without prejudice to those of Article 57. The
      situations covered by Article 57 shall be solely governed by its provisions to the
      exclusion of any other.
EN                                             34                                                EN
 ---pagebreak---                                          Article 47
   1. A Community company or Syrian company established in the territory of Syria or the
      Community respectively shall be entitled to employ, or have employed by one of its
      subsidiaries or branches, in accordance with the legislation in force in the host
      country of establishment, in the territory of Syria and the Community respectively,
      employees who are nationals of Community Member States and Syria respectively,
      provided that such employees are key personnel as defined in paragraph 2, and that
      they are employed exclusively by such companies, subsidiaries or branches. The
      residence and work permits of such employees shall only cover the period of such
      employment.
   2. Key personnel of the above mentioned companies herein referred to as
      "organisations" are "intra-corporate transferees" as defined in (c) in the following
      categories, provided that the organisation is a legal person and that the persons
      concerned have been employed by it or have been partners in it (other than as
      majority shareholders), for at least the year immediately preceding such movement :
      a)    persons working in a senior position with an organisation, who primarily direct
            the management of the establishment, receiving general supervision or
            direction principally from the board of directors or stockholders of the business
            or their equivalent, including :
            directing the establishment or a department or sub-division of the
                  establishment;
            supervising and controlling the work of other supervisory, professional or
                  managerial employees;
            having the authority personally to recruit and dismiss or recommend recruiting,
                  dismissing or other personnel actions;
      b)    persons working within an organisation who possess uncommon knowledge
            essential to the establishment's service, research equipment, techniques or
            management. The assessment of such knowledge may reflect, apart from
            knowledge specific to the establishment, a high level of qualification referring
            to a type of work or trade requiring specific technical knowledge, including
            membership of an accredited profession;
      c)    an "intra-corporate transferee" is defined as a natural person working within an
            organisation in the territory of a Party, and being temporarily transferred in the
            context of pursuit of economic activities in the territory of the other Party; the
            organisation concerned must have its principal place of business in the territory
            of a Party and the transfer be to an establishment (branch, subsidiary) of that
            organisation, effectively pursuing like economic activities in the territory of the
            other Party.
   3. The entry into and the temporary presence within the respective territories of Syria
      and the Community of nationals of the Member States or of Syria respectively, shall
      be permitted, when these representatives of companies are persons working in a
      senior position, as defined in paragraph 2(a) above, within a company, and are
EN                                           35                                                 EN
 ---pagebreak---              responsible for the establishment of a Syrian or a Community company, in the
             Community or Syria respectively, when :
             a)    those representatives are not engaged in making direct sales or supplying
                   services, and
             b)    the company has no other representative, office, branch or subsidiary in a
                   Community Member State or Syria respectively.
                                               Article 48
   In order to make it easier for Community nationals and Syrian nationals to take up and pursue
   regulated professional activities in Syria and the Community respectively, the Association
   Council shall examine what steps are necessary to be taken to provide for the mutual
   recognition of qualifications.
                                               Article 49
   The provisions of Article 43 do not preclude the application by a Party of particular rules
   concerning the establishment and operation in its territory of branches of companies of
   another Party not incorporated in the territory of the first Party, which are justified by legal or
   technical differences between such branches as compared to branches of companies
   incorporated in its territory or, as regards financial services, for prudential reasons. The
   difference in treatment shall not go beyond what is strictly necessary as a result of such legal
   or technical differences or, as regards financial services, for prudential reasons.
                                              CHAPTER 2
                              CROSS-BORDER SUPPLY OF SERVICES
                                               Article 50
   1.        The Parties shall use their best endeavours to allow progressively the supply of
             services by Community or Syrian companies who are established in the territory of a
             Party other than that of the person for whom the services are intended, taking into
             account the development of the services sectors in the Parties.
   2.        The Association Council shall make recommendations for the implementation of the
             objective mentioned in paragraph 1.
                                               Article 51
   With a view to assuring a co-ordinated development of transport between the Parties, adapted
   to their commercial needs, the conditions of mutual market access and provision of services in
   transport by air, road, rail and inland waterways may be dealt with by specific agreements
   where appropriate negotiated between the Parties after the entry into force of this Agreement.
EN                                                 36                                                  EN
 ---pagebreak---                                                 Article 52
   1.       With regard to maritime transport the Parties undertake to apply effectively the
            principle of unrestricted access to the international market and traffic on a
            commercial basis.
            a)     The Parties shall continue to effectively apply the principle of unrestricted
                   access to the international maritime market and trade on a commercial and non-
                   discriminatory basis;
            b)     the Parties affirm their commitment to a freely competitive environment as
                   being an essential feature of the dry and liquid bulk trade.
   2.       In applying the principles of paragraph 1, the Parties shall :
            a)     not introduce cargo-sharing arrangements in future bilateral Agreements with
                   third countries concerning dry and liquid bulk and liner trade. However, this
                   does not exclude the possibility of such arrangements concerning liner cargo in
                   those exceptional circumstances where liner shipping companies from one or
                   other Party to this Agreement would not otherwise have an effective
                   opportunity to apply for trade to and from the third country concerned;
            b)     upon entry into force of this Agreement, abolish and abstain from introducing
                   any unilateral measures and administrative, technical and other obstacles which
                   could have restrictive or discriminatory effects on the free supply of services in
                   international maritime transport.
   Each Party shall grant, inter-alia, a treatment no less favourable than that accorded to its own
   ships, for the ships used for the transport of goods, passengers or both, flying the Flag of, or
   operated by nationals or companies of the other Party, with respect to access to ports, the use
   of infrastructure and auxiliary maritime services of those ports, as well as related fees and
   charges, customs facilities and the assignment of berths and facilities for loading and
   unloading.
                                              CHAPTER 3
                                       GENERAL PROVISIONS
                                                Article 53
   1.       The Parties undertake to consider development of this Title with a view to the
            establishment of an "economic integration agreement" as defined in Article V of the
            General Agreement on Trade in Services (GATS).
   2.       The objective provided for in paragraph 1 shall be subject to a first examination by
            the Association Council at the latest five years after the entry into force of this
            Agreement.
   3.       The Association Council shall, when making such examination, take into account
            progress made in the approximation of laws between the Parties in the relevant
            activities.
EN                                                  37                                                EN
 ---pagebreak---                                                Article 54
   1.       The provisions of this Title shall be applied subject to limitations justified on
            grounds of public policy, public security or public health.
   2.       They shall not apply to activities which in the territory of either Party are connected,
            even occasionally, with the exercise of official authority.
                                               Article 55
   For the purpose of this Title, nothing in this Agreement shall prevent the Parties from
   applying their laws and regulations regarding entry and stay, work, labour conditions and
   establishment of natural persons and supply of services, provided that, in so doing, they do
   not apply them in a manner as to nullify or impair the benefits accruing to any Party under the
   terms of a specific provision of the Agreement. This provision does not prejudice the
   application of Article 54.
                                               Article 56
   Companies which are controlled and exclusively owned by Syrian companies and Community
   companies jointly shall also be beneficiaries of the provisions of this Title.
                                               Article 57
   Treatment granted by either Party to the other hereunder shall, in respect of sectors or
   measures covered by the GATS, in no case be more favourable than that accorded by such
   first Party under the provisions of the GATS and this in respect of each service sector,
   sub-sector and mode of supply.
                                               Article 58
   For the purpose of this Title, no account shall be taken of treatment accorded by the
   Community, its Member States or Syria pursuant to commitments entered into in economic
   integration agreements in accordance with the principles of Article V of the GATS.
                                               Article 59
   1.       Notwithstanding any other provisions of the Agreement, a Party shall not be
            prevented from taking measures for prudential reasons, including for the protection
            of investors, depositors, policy holders or persons to whom a fiduciary duty is owed
            by a financial service supplier, or to ensure the integrity and stability of the financial
            system. Where such measures do not conform with the provisions of the Agreement,
            they shall not be used as a means of avoiding the obligations of a Party under the
            Agreement.
EN                                                 38                                                  EN
 ---pagebreak---    2.       Nothing in the Agreement shall be construed to require a Party to disclose
            information relating to the affairs and accounts of individual customers or any
            confidential or proprietary information in the possession of public entities.
                                              Article 60
   The provisions of this Agreement shall not prejudice the application by each Party of any
   measures necessary to prevent the circumvention of its measures concerning third country
   access to its market, through the provisions of this Agreement.
EN                                                39                                         EN
 ---pagebreak---                                               TITLE IV
          PAYMENTS, CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS
                                             CHAPTER 1
                             PAYMENTS AND CAPITAL MOVEMENTS
                                               Article 61
   Subject to the provisions of Article 63, the Parties undertake to allow all current payments for
   current transactions to be made in a freely convertible currency.
                                               Article 62
   1.        With regard to transactions on the capital account of balance of payments, the
             Community and Syria shall ensure, from the entry into force of this agreement, that
             capital relating to foreign direct investments in Syria in companies formed in
             accordance with current laws and investments made in accordance with the
             provisions of the Title on Establishment and Services can move freely, and that the
             yield from such investments and any profit stemming therefrom can be freely
             liquidated and repatriated.
   2.        The Parties shall consult each other with a view to facilitating, and further
             liberalising, the movement of capital between the Community and Syria.
                                               Article 63
   Where one or more Member States of the Community or Syria face or risk facing serious
   difficulties concerning balance of payments, the Community and Syria respectively may, in
   conformity with the conditions laid down within the framework of the GATT and with
   Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, take
   restrictive measures with regard to current payments if such measures are strictly necessary.
   The Community or Syria, as appropriate, shall inform the other Party immediately thereof and
   shall provide as soon as possible a timetable for the removal of such measures.
                                             CHAPTER 2
                                            COMPETITION
                                               Article 64
   1.        The following are incompatible with the proper functioning of the Agreement, in so
             far as they may affect trade between the Community and Syria:
EN                                                 40                                               EN
 ---pagebreak---              a)     all agreements between undertakings, decisions by associations of undertakings
                    and concerted practices between undertakings which have as their object or
                    effect the prevention, restriction or distortion of competition;
             b)     abuse by one or more undertakings of a dominant position in the territories of
                    the Community or Syria as a whole or in a substantial part thereof.
   2.        The Parties will co-operate in the enforcement of their respective competition
             legislation and shall exchange information taking into account the limitations
             imposed by the requirements of professional and business secrecy. The modalities
             for this co-operation are set out in Annex V.
   3.        If the Community or Syria considers that a particular practice is incompatible with
             the terms of the first paragraph of this Article, and if such practice causes or
             threatens to cause serious prejudice to the other Party it may take appropriate
             measures after consultation within the Association Committee or after thirty working
             days following referral for such consultation.
                                                 Article 65
   The Member States and Syria shall progressively adjust, without prejudice to their
   commitments respectively taken or to be taken under the GATT, any State monopolies of a
   commercial character, so as to ensure that, by the end of the fifth year following the entry into
   force of this Agreement, no discrimination regarding the conditions under which goods are
   procured and marketed exists between nationals of the Member States and Syria. The
   Association Committee will be informed about the measures adopted to implement this
   objective.
                                                 Article 66
   With regard to public enterprises and enterprises to which special or exclusive rights have
   been granted, the Association Council shall ensure that as from the fifth year following the
   date of entry into force of this Agreement there is neither enacted nor maintained any measure
   distorting trade between the Community and Syria to an extent contrary to the Parties'
   interests. This provision should not obstruct the performance in law or in fact of the particular
   tasks assigned to these enterprises.
                                               CHAPTER 3
                                   GOVERNMENT PROCUREMENT
                                                 Article 67
                                        Government Procurement
   1.        The Parties shall set as their objective the effective, reciprocal and gradual opening
             of the government procurement markets.
EN                                                   41                                              EN
 ---pagebreak---    2. Each Party shall ensure that the procurement of its entities covered in Annex VII
      takes place in a transparent, reasonable and non-discriminatory manner, according to
      the definition provided in Annex VII, treating any supplier of either Party equally
      and ensuring the principle of open and effective competition.
   3. With respect to any laws, regulations, procedures, and practices regarding
      government procurement, as well as specific procurements, covered by this
      Agreement, each Party shall grant the goods, services and suppliers of the other Party
      a treatment no less favourable than that accorded by it to domestic goods, services
      and suppliers.
   4. With respect to any laws, regulations, procedures and practices regarding
      government procurement, as well as specific procurements, covered by this
      Agreement, each Party shall ensure that its entities listed in Annex VII:
      a)     do not treat a locally-established supplier less favourably than any other
             locally-established supplier on the basis of the degree of foreign affiliation to,
             or ownership by, a person of the other Party; and
      b)     do not discriminate against a locally-established supplier on the basis that the
             goods or services offered by that supplier for a particular procurement are
             goods or services of the other Party.
   5. With respect to any laws, regulations, procedures and practices regarding
      government procurement, as well as specific procurements, opened to goods,
      services and suppliers of third countries, Syria shall provide to the goods and
      suppliers of the other Party treatment no less favourable than that accorded to foreign
      goods, services and suppliers of any third country.
      With respect to all laws, regulations, procedures and practices regarding government
      procurement covered by the Government Procurement Agreement (GPA), the
      European Communities shall provide immediately and unconditionally to the goods,
      services and suppliers from Syria treatment no less favourable than that accorded to
      goods, services and suppliers of the Parties to the GPA.
   6. The Parties will regularly review the effective opening of procurement markets and
      in no later than three years will enter into negotiations aiming at extending the list of
      covered entities in Annex VII.
   7. Nothing in this article shall be construed:
      to require a Party to furnish any information the disclosure of which it considers
      contrary to its essential security interest;
      to prevent a Party from taking any action it considers necessary for the protection of
      its essential security interests relating to government procurement indispensable for
      national security or for national defence purposes.
   8. This article shall not be applicable to contracts awarded pursuant to:
      an international agreement intended for the joint implementation or exploitation of a
      project by the contracting parties;
EN                                            42                                                EN
 ---pagebreak---       an international agreement relating to the stationing of troops;
      the particular procedures of an international organization;
      a non-contractual agreement or any form of government assistance and procurement
      made in the framework of assistance or co-operation programmes.
                                          Article 68
                        Transparency of Government Procurement
   1. Each Party shall promptly publish any law, regulation, judicial decision and
      administrative ruling of general application and procedure, including standard
      contract clauses, regarding procurement covered by this Title in the appropriate
      publications referred to in Annex VII including officially designated electronic
      media.
   2. Each Party shall promptly publish in the same manner all modifications to such
      measures.
   3. Each Party shall ensure that its entities provide for effective dissemination of the
      tendering opportunities generated by the relevant government procurement
      processes, providing suppliers of the other Party with all the information required to
      take part in such procurement.
   4. Dissemination of procurement opportunities shall contain the information as set out
      in Annex VII and shall be published in a timely manner through means which offer
      the widest possible and non-discriminatory access to the interested suppliers of the
      Parties. These means are specified in Annex VII.
                                          Article 69
                         Time limits of Government Procurement
   1. All time-limits established by the entities for the receipt of tenders and requests to
      participate shall be adequate to allow suppliers of the other Party, as well as domestic
      suppliers, to prepare and to submit tenders, and where appropriate, requests for
      participation or applications for qualifying. In determining any such time-limit,
      entities shall, consistent with their own reasonable needs, take into account such
      factors as the complexity of the intended procurement and the normal time for
      transmitting tenders from foreign as well as domestic points.
   2. Each Party shall ensure that its entities shall take due account of publication delays
      when setting the final date for receipt of tenders or of request for participation or for
      qualifying for the supplier's list.
   3. The minimum time-limits for the receipt of tenders are specified in Annex VII.
EN                                            43                                                EN
 ---pagebreak---                                                  Article 70
                                              Bid challenges
   1.   Each Party shall provide non-discriminatory, timely, transparent and effective
        procedures enabling suppliers to challenge alleged breaches of this Agreement in the
        context of procurements in which they have, or have had, an interest.
   2.   Challenges shall be heard by an impartial and independent reviewing authority. A
        reviewing authority which is not a court shall either be subject to judicial review or
        shall have procedural guarantees similar to those of a court.
                                                 Article 71
                    Co-operation and assistance in Government Procurement
   1.   The Parties will co-operate in the area of government procurement by exchanging
        experience and information about best practices and regulatory frameworks.
   2.   The Parties shall endeavour to co-operate with a view to achieve a better
        understanding of their respective government procurement systems, as well as a
        better access to their respective markets.
   3.   Technical assistance shall be provided upon duly motivated request, in particular
        through jointly developed training programmes.
                                               CHAPTER 4
                                  OTHER ECONOMIC MATTERS
                                                 Article 72
                     Intellectual, Industrial and Commercial Property Rights
   1.   Pursuant to provisions of this article and of Annex VI, the parties shall grant and
        ensure adequate and effective protection of intellectual, industrial and commercial
        property rights∗ in accordance with the highest international standards including the
        rules set by the Agreement on Trade-Related Aspects of Intellectual Property Rights
        (TRIPS), Annex IC to the agreement establishing the World Trade Organization, as
        well as effective means of enforcing such rights.
   ∗
      For the purpose of this Agreement, intellectual, industrial and commercial property rights embody
      copyright, including copyright in computer programs and in databases, and neighbouring rights, the
      rights related to patents, industrial designs, geographical indications, including appellations of origin,
      indications of source, trademarks, service marks, trade names, layout- designs (topographies) of
      integrated circuits, plant varieties, protection of undisclosed information and the protection against
      unfair competition as referred to in Article 10 bis of the Paris Convention for the Protection of
      Industrial Property (Stockholm Act 1967), as well as any other rights protected by the multilateral
      conventions listed in Annex VI.
EN                                                    44                                                         EN
 ---pagebreak---    2. The implementation of this Article and Annex VI shall be regularly reviewed by the
      Parties.
                                        Article 73
       Standards, Technical Regulations, and Conformity Assessment Procedures
   1. The rights and obligations relating to standards, technical regulations and conformity
      assessment procedures under the WTO Agreement on Technical Barriers to Trade,
      including the provision according to which "members shall ensure that technical
      regulations are not prepared, adopted or applied with a view to or with the effect of
      creating unnecessary obstacles to international trade", shall apply.
   2. The Parties shall take appropriate steps to encourage the use by Syria of Community
      technical rules and European standards for industrial products and certification
      procedures.
   3. Using the principles set out in paragraph 2 as a basis, the Parties shall, when the
      circumstances are right, conclude agreements on conformity assessment.
   4. Co-operation shall be aimed at helping Syria to bring its legislation closer to that of
      the Community in this area.
EN                                          45                                                EN
 ---pagebreak---                                                 TITLE V
                                       DISPUTE SETTLEMENT
                                               CHAPTER I
                                      OBJECTIVE AND SCOPE
                                                Article 74
                                                Objective
   The objective of this Title is to settle trade disputes between the Parties with a view to arrive
   at, where possible, mutually agreed solutions.
                                                Article 75
                                                  Scope
   The provisions of this Title shall apply with respect to any differences concerning the
   interpretation and application of Titles II to V, including where a Party considers that a
   measure of the other Party is in breach of these Titles, except where otherwise expressly
   provided.
                                               CHAPTER II
                                       DISPUTE AVOIDANCE
                              CONSULTATIONS AND MEDIATION
                                                Article 76
                                              Consultations
   1.       The Parties shall endeavour to resolve any differences on the interpretation and
            application of Titles II to V by entering into good faith consultations with the aim of
            reaching a mutually agreed solution.
   2.       A Party shall seek consultations through written request to the other Party, copied to
            the Trade Committee, stating how a measure adversely affects its rights. The relevant
            provisions of these Titles must also be cited.
   3.       Consultations shall be held within 30 days of the request being delivered and will,
            unless the Parties agree otherwise, be held on the territory of the defending Party.
            The consultations shall be deemed concluded within 60 calendar days from the date
            of the consultation request, unless both Parties agree to continue consultations. All
            information disclosed during the consultations shall remain confidential.
EN                                                  46                                               EN
 ---pagebreak---    4. If consultations are not held within the timeframe laid down in paragraph 3, and no
      agreement has been reached on a mutually agreed solution, then the complaining
      Party may proceed directly to request the establishment of an arbitration panel in
      accordance with Article 78.
                                         Article 77
                                         Mediation
   1. If consultations fail to produce a mutually agreed solution, the Parties may, by
      mutual agreement, seek recourse to mediation by a mediator appointed by the Trade
      Committee. Any request for mediation must be made in writing, and state the
      measure which has been the subject of consultations, as well as the mutually agreed
      terms of reference for the mediation.
   2. The Chairperson of the Trade Committee will appoint within 10 days of receipt of
      the request a mediator selected by lot from the persons included in the list referred to
      in Article 79 paragraph 2 who is not a national of either of the Parties. The mediator
      will convene a meeting with the Parties no later than 30 days after being appointed.
      The mediator will be supplied with the submissions of both parties no later than 15
      days before the meeting and will issue an opinion no later than 45 days after having
      been appointed. The mediator’s opinion may include a recommendation on the steps
      that are consistent with these Titles by which the dispute could be resolved. The
      mediator’s opinion will be non-binding.
   3. The time-frames referred to in paragraph 2 above may be amended, should
      circumstances so demand, with the agreement of both Parties. Any amendment must
      be notified in writing by both Parties to the Trade Committee.
   4. In the event that mediation produces a mutually agreed solution to the dispute, both
      Parties must notify the Trade Committee in writing.
                                       CHAPTER III
                       DISPUTE SETTLEMENT PROCEDURES
                                         Article 78
                             Initiation of the arbitration panel
   1. Where the Parties have failed to resolve the dispute by recourse to consultations as
      detailed in Article 76, or where the Parties have had recourse to mediation as detailed
      in Article 77 and no mutually agreed solution has been notified within 15 days of the
      issuance of the mediator’s opinion, or if a Party fails to comply with the mutually
      agreed solution, the complaining Party may seek the establishment of an arbitration
      panel upon written request to the defending Party and simultaneously to the Trade
      Committee.
   2. The complaining party shall state in its request the measure it considers to be in
      breach of these Titles and indicate the provisions considered relevant.
EN                                            47                                               EN
 ---pagebreak---                                                 Article 79
                                      Appointment of arbitrators
   1.   An arbitration panel shall be composed of three arbitrators.
   2.   The Trade Committee shall, no later than six months after the entry into force of this
        Agreement, establish a list of 15 individuals who are willing and able to serve as
        arbitrators. Each of the Parties may select 5 individuals to serve as arbitrators. The
        two Parties shall agree on 5 individuals that are not nationals of either Party. The
        Trade Committee will ensure that the list is always maintained at this level.
   3.   Arbitrators should have specialised knowledge or experience in law and/or
        international trade. They should be independent, serve in their individual capacities
        and not be affiliated with, or take instructions from, any organisation or government9,
        and shall comply with the Code of Conduct set out in Annex VIII.
                                                Article 80
                                Composition of the arbitration panel
   1.   Within 10 days from the request for a panel being submitted to the Trade Committee
        the Parties will consult in order to reach agreement on the composition of the
        arbitration panel. In the event that the Parties are unable to agree on its composition
        within this timeframe, either party may request the chairperson of the Trade
        Committee, or their delegate, to select all three members by lot, drawing one name
        from each of the three categories of panellists (i.e. the list supplied by each Party
        composed of their own nationals, and the combined list of non-nationals of either
        Party). In case the Parties agree on one or more of the members of the arbitration
        panel, any remaining members shall be appointed by lot from the relevant lists. The
        arbitration panel will always be composed of a national from each of the parties and
        a non-national of either party, the latter acting as chairperson.
   2.   The date of establishment of the arbitration panel shall be the date on which the three
        arbitrators are selected.
   3.   Where a Party considers that an arbitrator does not comply with the requirements of
        the Code of Conduct, the Parties shall consult, and if so agreed, they shall replace the
        arbitrator and select a replacement pursuant to paragraph 4. In the event that the
        parties fail to agree on the need to replace an arbitrator, the matter will be referred to
        the chairperson10 of the arbitration panel whose decision will be final.
   9
      This does not preclude Government or Civil Servants from being arbitrators. However they should act
      strictly in an ad personam basis and therefore must not take instructions from either their own National
      Government or its agencies. The same applies to instructions from any source be it an non-
      governmental organisation or government of a third country.
   10
      Where a Party considers that the chairman of the arbitration panel does not comply with the Code of
      Conduct, then the matter will be referred to one of the remaining members of the pool of third country
      nationals, their name being drawn by lot by the Trade Committee, unless agreed between the Parties.
EN                                                  48                                                         EN
 ---pagebreak---    4.       If an arbitrator is unable to participate in the proceeding, withdraws or is replaced
            pursuant to paragraph 3, a replacement shall be selected within 5 days in accordance
            with the selection procedures followed to appoint the original arbitrator. The panel
            proceedings will be suspended for the period during which this procedure is
            undertaken.
                                                Article 81
                                           Rules of Procedure
   1.       The Trade Committee shall apply the Rules of Procedure, agreed between the Parties
            and annexed to this Agreement, for the conduct of the arbitration panel proceedings.
   2.       The sessions of the arbitration panel shall be open to the public in accordance with
            the Rules of Procedure, unless the arbitration panel of its own motion, or on
            application of the parties, decides otherwise.
                                                Article 82
                                    Information and Technical advice
   At the request of a Party, or upon their own initiative, the panel may obtain information from
   any source it deems appropriate for the panel proceeding. The panel will also have the right to
   seek the opinion of experts as it deems appropriate. Any information obtained in this manner
   must be disclosed to both Parties. Interested parties shall be authorised to submit amicus
   curiae briefs to the arbitration panels in accordance with the Rules of Procedure.
                                                Article 83
                                             Applicable Law
   The arbitration panel shall interpret the provisions of these Titles in accordance with
   customary rules of interpretation of public international law including the Vienna Convention
   on the Law of Treaties.
                                                Article 84
                                         Arbitration panel ruling
   1.       The arbitration panel shall transmit its ruling to the Parties and the Trade Committee
            within ninety days following the establishment of the panel. Where it considers that
            this deadline cannot be met, the chairperson of the panel must notify the Trade
            Committee and Parties in writing, stating the reasons for the delay. Under no
            circumstances should the ruling be issued later than one hundred and twenty days
            following the establishment of the panel.
EN                                                  49                                             EN
 ---pagebreak---    2. The ruling shall set out the findings of fact, the applicability of the relevant
      provisions of these Titles and the basic rationale behind any findings and conclusions
      that it makes.
   3. In cases of urgency, including those involving perishable goods, the arbitration panel
      shall make every effort to issue its ruling within seventy-five days from the
      establishment of the panel. Under no circumstance should it take longer than one
      hundred days from the establishment of the panel. The arbitration panel may give a
      preliminary ruling within ten days from its establishment on whether it deems the
      case to be urgent.
   4. All decisions of the arbitration panel, including the adoption of the ruling, shall be
      taken by majority vote.
   5. The complaining Party may withdraw its complaint by written notification to the
      chairpersons of the arbitration panel and the Trade Committee, as well as the other
      Party, at any time before the ruling is transmitted to the Parties and the Trade
      Committee. Such withdrawal is without prejudice to its right to introduce a new
      complaint regarding the same matter at a later point in time.
   6. The arbitration panel may, at the request of both Parties, suspend its work at any time
      for a period not exceeding twelve months. Once the period of twelve months has
      been exceeded, the authority for the establishment of the panel will lapse, without
      prejudice to the right of the complaining Party to request at a later stage the
      establishment of a panel on the same subject matter.
                                         Article 85
                                 Compliance with Ruling
   1. Each Party shall take the measures necessary to comply with the ruling of the
      arbitration panel, and the Parties will endeavour to agree on the time required in
      order to implement the ruling.
   2. No later than 30 days after the issuance of the ruling to the Parties, the defending
      Party shall notify the complaining Party of the time-frame (hereinafter "reasonable
      period of time") it will require for implementation. Both parties should aim to agree
      on the reasonable period of time.
   3. In the event that there is disagreement between the Parties on the reasonable period
      of time to implement the arbitration panel’s ruling, the complaining Party shall
      request the Trade Committee to reconvene the original arbitration panel to determine
      its length. Once convened by the Trade Committee, the arbitration panel will issue its
      ruling within 20 days from the date of its re-establishment. In the event the original
      panel, or some of its members, is unable to reconvene, then the procedures detailed
      in Article 80 apply. The period for issuing its ruling in this instance remains 20 days
      from the date of the panel's establishment.
   4. The Party concerned shall notify to the other Party and to the Trade Committee
      before the end of the reasonable period of time the implementing measures that it has
EN                                           50                                               EN
 ---pagebreak---        adopted or intends to adopt in order to comply with the ruling of the arbitration
       panel.
   5.  In the event that there is disagreement between the Parties as to the consistency of
       the measure in relation to these Titles and as notified under paragraph 4 then the
       complaining Party may seek recourse to the original arbitration panel to rule on the
       matter upon written application to the Trade Committee stating how the measure is
       inconsistent with these Titles. Once convened by the Trade Committee the arbitration
       panel will issue its ruling within 45 days from the date of its re-establishment.
   6.  In the event the original arbitration panel, or some of its members, is unable to
       reconvene, then the procedures detailed in Article 80 apply. The period for issuing its
       ruling in this instance remains 45 days from the date of the panel's establishment.
   7.  If the Party concerned fails to notify the implementing measures before the expiry of
       the reasonable period of time the defending Party shall if so requested by the
       complaining Party, present an offer for temporary compensation. If no agreement on
       compensation has been reached within 30 days of the end of the reasonable period of
       time, the complaining Party shall be entitled, upon notification to the Trade
       Committee, to suspend the application of benefits granted under Titles II to V
       equivalent to the nullification and impairment caused by the measure that has been
       found to violate these Titles. The notification shall be delivered simultaneously to the
       other Party. The complaining Party may implement the suspension ten days after the
       date of the notification, unless the defending Party has requested arbitration under
       paragraph 8.
   8.  If the defending Party considers that the level of suspension is not equivalent to the
       nullification and impairment caused by the measure, then a written request shall be
       made to the Trade Committee before the expiry of the ten day period mentioned in
       paragraph 7 for the reconvening of the original arbitration panel. The Trade
       Committee shall be informed of the ruling by the arbitration panel on the level of the
       suspension of benefits within 30 days from the date of the request for its
       establishment. Benefits shall not be suspended until the arbitration panel has issued
       its ruling and any suspension shall be consistent with the ruling of the arbitration
       panel.
   9.  The suspension of benefits shall be temporary and shall only be applied until the
       measure found to violate this Title II to V has been withdrawn or amended so as to
       bring it into conformity with these Titles, or in the case where the Parties have
       agreed on a resolution of the dispute. If the defending Party considers that it has
       taken measures to implement the ruling, yet the suspension of benefits is maintained,
       the defending party may seek recourse to the original arbitration panel for a ruling on
       whether such suspension should be terminated or modified. The ruling shall be
       issued within 45 days of the written request for its re-establishment.
   10. In the event the original arbitration panel, or some of its members, is unable to
       reconvene, then the procedures detailed in Article 80 apply. The period for issuing its
       ruling in this instance remains 45 days from the date of the panel's establishment.
EN                                            51                                                EN
 ---pagebreak---    11. All rulings provided for in this Article shall be final and binding and shall be made
       available to the Trade Committee which will make them publicly available unless it
       decides by consensus not to do so.
   12. Upon the accession of the Syrian Arab Republic to the World Trade Organisation,
       nothing in this Agreement shall preclude a party from implementing the suspension
       of benefits that have been authorised by the Dispute Settlement Body of the World
       Trade Organisation.
                                       CHAPTER IV
                                 GENERAL PROVISIONS
                                          Article 86
   1.  Arbitration proceedings established under this Title will not consider issues relating
       to each Party’s rights and obligations under the Agreement establishing the World
       Trade Organisation (WTO).
   2.  Recourse to the Dispute Settlement Provisions of these Titles shall be without
       prejudice to any possible action in the WTO framework, including dispute settlement
       action. However where a Party has, with regard to a particular measure, instituted a
       dispute settlement proceeding under either Article 78 paragraph 1 of this Title or the
       WTO Agreement, it shall not institute a dispute settlement proceeding regarding the
       same measure under the other forum until such time as the first proceeding has
       ended. For purposes of this paragraph, dispute settlement proceedings under the
       WTO Agreement are deemed to be initiated by a Party’s request for a panel under
       Article 6 of the Understanding on Rules and Procedures Governing the Settlement of
       Disputes of the WTO.
   3.  Until the Syrian Arab Republic accedes to the World Trade Organisation, arbitration
       panels shall adopt an interpretation that is fully consistent with the relevant decisions
       of the Dispute Settlement Body of the World Trade Organisation when ruling on an
       alleged violation of a provision contained in Titles II to V of this Agreement that
       incorporates or refers to a provision under the Agreement establishing the World
       Trade Organisation. Upon the accession of the Syrian Arab Republic to the World
       Trade Organisation, arbitration panels shall suspend proceedings if they consider
       they cannot rule on a dispute without interpreting a WTO provision, where such a
       provision is referred to in Titles II to V of this Agreement. In the event of such a
       suspension of proceedings, any party may have recourse to dispute settlement
       proceedings under the WTO.
                                          Article 87
   1.  All terms established under this Title shall be counted in calendar days from the day
       following the act or fact to which they refer.
   2.  Any deadline mentioned in this Title may be extended by mutual agreement of the
       Parties.
EN                                            52                                                 EN
 ---pagebreak---                                                 Article 88
   The documents presented in the framework of the proceedings provided under this Title shall
   be considered as confidential, with the exception of arbitration awards.
                                                Article 89
   The written and oral submissions of the Syrian Arab Republic shall be made in Arabic, and
   for the European Communities, in any of the official languages of the European Union.
                                               TITLE VI
                                    ECONOMIC CO-OPERATION
                                                Article 90
                                               Objectives
   1.       The Parties undertake to intensify economic co-operation in their mutual interest and
            in accordance with the overall objectives of the Agreement.
   2.       The aim of economic co-operation shall be to support Syria's own efforts to achieve
            sustainable economic and social development.
                                                Article 91
                                                  Scope
   1.       Co-operation shall focus primarily on sectors suffering from internal difficulties or
            affected by the overall process of liberalisation of the Syrian economy, and in
            particular by the liberalisation of trade between Syria and the Community.
   2.       Similarly, co-operation shall focus on areas likely to bring the economies of the
            Community and Syria closer together, particularly those which will generate growth
            and employment.
   3.       The Parties will encourage economic co-operation between Syria and other countries
            of the region.
   4.       Conservation of the environment and ecological balance shall be taken into account
            in the implementation of the various sectors of economic co-operation to which it is
            relevant bearing in mind the difference in the level of economic and social
            development between the Parties.
   5.       The Parties may agree to extend economic co-operation to other sectors not covered
            by the provisions of this Title.
EN                                                  53                                            EN
 ---pagebreak---                                                 Article 92
                                        Methods and Modalities
   Economic co-operation shall be implemented in particular through:
   a)       a regular economic dialogue between the Parties, which covers all areas of macro-
            economic policy;
   b)       regular exchange of information and ideas in every sector of co-operation including
            meetings of officials and experts;
   c)       transfer of advice, expertise and training;
   d)       implementation of joint actions such as seminars and workshops;
   e)       technical, administrative and regulatory assistance;
   f)       encouragement of joint ventures; the use of scientific research results for
            technological applications, innovation and development.
                                                Article 93
                                         Regional Co-operation
   The Parties will encourage operations having a regional impact or associating other countries
   of the region, with a view to promoting regional co-operation.
   Such operations may include:
   a)       trade at intra-regional level;
   b)       investment;
   c)       environmental issues;
   d)       development of economic infrastructures;
   e)       scientific and technological research;
   f)       cultural matters;
   g)       customs matters;
   h)       Information Technology;
   i)       water issues, including irrigation.
EN                                                  54                                           EN
 ---pagebreak---                                                 Article 94
                                          Education and Training
   The Parties shall co-operate with the objective of identifying and employing the most
   effective means to improve significantly the education and vocational training situation in
   Syria, in particular with regard to public and private enterprises, trade-related services, public
   administrations and authorities, technical agencies, scientific and technological academic
   facilities, standardisation and certification bodies and other relevant organisations. In this
   context, vocational, technical and administrative training for industrial restructuring will
   receive special attention.
   Co-operation shall also encourage the establishment of links between specialised bodies in the
   Community and in Syria and shall promote the exchange of information, and experiences and
   the pooling of technical resources.
                                                Article 95
                                Scientific and Technological co-operation
   Co-operation has the objective of:
   a)        encouraging the establishment of durable links between the scientific and
             technological communities of the Parties, notably through :
             the access of Syria to Community R&D programmes, in conformity with the existing
             provisions concerning the participation of third countries;
             the participation of Syria in the networks of decentralised co-operation;
             the promotion of training in research and development sectors.
   b)        strengthening the scientific and applied research and development capacity of Syria,
             through capacity building in human resources and providing scientific, technical and
             material support to research bodies.
   c)        stimulating technological innovation, transfer of new technologies and knowledge,
             and dissemination of know-how, in particular with a view to promoting
             environmentally-friendly practices and accelerating the adjustment and development
             of Syria's industrial capability.
                                                Article 96
                                               Environment
   1.        Co-operation is aimed at preventing deterioration of the environment, improving its
             quality, controlling pollution, protecting human health and ensuring the rational use
             of natural resources, with a view to ensuring sustainable development.
EN                                                  55                                                EN
 ---pagebreak---    2.       Co-operation, which will also promote regional environmental projects, shall focus
            on the following fields with emphasis on harmonisation of legislation including
            implementation of UN-related agreements:
            a)    combating desertification;
            b)    protection of bio-diversity;
            c)    integrated water resources management including irrigation and control of
                  pollution or salinisation of surface and groundwater;
            d)    use of renewable sources of energy;
            e)    promotion of clean production and prevention of environmental impacts and
                  risks on safety due to industrial activities;
            f)    trade and environment;
            g)    control of the air quality;
            h)    prevention and control of marine pollution;
            i)    waste management;
            j)    the impact of agriculture on soil and water quality;
            k)    environmental education and awareness;
            l)    use of advanced tools of environmental management and decision-making,
                  environmental monitoring methods, including in particular the use of the
                  Environmental Information System (EIS) and Environmental Impact
                  Assessment (EIA);
            (m) environmental crisis management.
                                               Article 97
                                        Industrial Co-operation
   Industrial Co-operation shall promote and encourage:
   a)       industrial co-operation between economic operators in the Community and in Syria,
            including access for Syria to the Community's networks for the rapprochement of
            businesses and to networks created in the context of decentralised co-operation;
   b)       the modernisation and restructuring of Syrian industry, including its infrastructure
            and support institutions in relevant areas such as standards, quality assurance or
            industrial design;
   c)       the establishment and promotion of an environment favourable to the development of
            private enterprise, in order to stimulate the growth and the diversification of
            industrial production in a sustainable development perspective;
EN                                                 56                                            EN
 ---pagebreak---    d)       co-operation between small and medium-sized enterprises in the Community and in
            Syria;
   e)       innovation, R&D and acquisition of technology and products to contribute to Syria's
            economic development;
   f)       diversification of industrial output in Syria;
   g)       the enhancement of human resources;
   h)       improvement of access to investment finance;
   i)       stimulation of innovation;
   j)       improvement of information support services;
   k)       or any other co-operation area as agreed between Parties.
                                               Article 98
                              Investments and Promotion of Investments
   The objective of co-operation will be the promotion of a favourable and stable environment
   for investment in Syria. The co-operation will entail in particular the development of :
   a)       harmonised and simplified administrative procedures; co-investment machinery,
            especially for small and medium-sized enterprises of both Parties; and information
            channels and means of identifying investment opportunities;
   b)       a legal environment conducive to investment between the two parties, where
            appropriate through the conclusion by the Member States and Syria of investment
            protection agreements and agreements to prevent double taxation;
   c)       access to the capital market for the financing of productive investments in Syria;
   d)       joint ventures between business in Syria and in the Community.
                                               Article 99
             Standards, Technical Regulations and Conformity Assessment Procedures
   Co-operation in this field will be aimed in particular at:
   a)       increasing the application of Community rules in the field of technical regulations,
            metrology, accreditation, standardisation and conformity assessment;
   b)       Developing Syrian laboratories and conformity assessment bodies, with a view to the
            establishment, in due time and to the extent feasible, of agreements on conformity
            assessment;
   c)       developing structures and bodies for standardisation and quality in Syria.
EN                                                  57                                           EN
 ---pagebreak---                                                 Article 100
                        Intellectual, Industrial and Commercial Property Rights
   Co-operation in the field of intellectual, industrial and commercial property rights shall, upon
   request and on mutually agreed terms and conditions, inter alia, extend to the following areas :
   a)       the preparation of laws and regulations for the protection and enforcement of
            intellectual, industrial and commercial property rights;
   b)       the prevention of abuses of such rights by right-holders and the infringement of such
            rights by competitors;
   c)       the establishment and reinforcement of national organizations involved in
            enforcement and protection against counterfeiting and piracy, including the training
            of personnel, awareness building activities and knowledge-based, capacity building
            related activities in view of strengthening Syria's ability to implement intellectual,
            industrial and commercial property rights protection.
                                                Article 101
                                            Financial Services
   The Parties shall co-operate with a view to the rapprochement of their standards and rules, in
   particular :
   a)       to strengthen and restructure the financial sector in Syria;
   b)       to improve accounting and supervisory and regulatory systems of banking, insurance
            and other financial sectors in Syria.
                                                Article 102
                                        Agriculture and Fisheries
   1.       The Parties shall focus co-operation on :
            a)     support for policies implemented by them to diversify production;
            b)     encouraging the development of the private sector to reduce food dependency;
            c)     promotion of environment-friendly agriculture;
            d)     conservation and rational management of fish stocks;
            e)     closer relations between businesses, groups and organisations representing
                   trades and professions in Syria and in the Community on a voluntary basis;
            f)     support and promotion of private investments;
            g)     technical assistance and training;
EN                                                  58                                              EN
 ---pagebreak---            h)     agronomic research, the use of new technologies;
           i)     co-operation on phyto-sanitary and veterinary standards;
           j)     modernisation of infrastructures and of distribution operations;
           k)     integrated rural development including improvement in basic services and
                  development of associated economic activities;
           l)     co-operation among rural regions, exchange of experience and know-how
                  concerning rural development;
           m)     or any other cooperation area as agreed between Parties.
   2.      The cooperation may take the form of i.a. transfer of know-how, the establishment of
           joint ventures or training schemes.
                                              Article 103
                                              Transport
   Co-operation and technical support will focus on the following priority areas :
   a)      the restructuring and modernisation, in a sustainable development perspective, of
           road, railways, port and airport infrastructures of common and regional interest
           linked to the development of a Trans-Euro-Mediterranean Transport Network, in
           particular interconnections;
   b)      the establishment and enforcement of operating standards comparable to those
           prevailing in the Community;
   c)      the upgrading of technical equipment to bring it up to Community standards for all
           modes of transport, in particular container traffic and trans-shipment;
   d)      the gradual easing of transit requirements;
   e)      the improvement of institutional capacity and management of ports, airports,
           railways and air traffic control, including co-operation between the relevant national
           bodies;
   f)      the reinforcement of shipping safety and the prevention of maritime pollution, with
           specific attention to the maritime transport of hydrocarbons, as well as the
           implementation of maritime security related measures;
   g)      development in the field of urban transports.
EN                                                59                                              EN
 ---pagebreak---                                               Article 104
                         Information Society and Electronic Communications
   Co-operation shall focus on :
   a)      a dialogue on issues related to the different aspects of the information society,
           including e-strategy, electronic communications policies and regulation;
   b)      standardisation, conformity testing         and  certification  of   information  and
           communications technologies;
   c)      interconnection and interoperability of European Union and Syrian networks and
           services;
   d)      planning and management of the radio frequency spectrum with a view to co-
           ordinated and effective use of radio communications in the Euro-Mediterranean
           region;
   e)      dissemination of new information and communications technologies including
           satellite technology and information services;
   f)      promotion and implementation of joint projects for research, technical development
           or industrial applications in electronic communications and the information society;
   g)      giving Syrian bodies the opportunity to participate in pilot projects and European
           programmes under the specific arrangements pertaining to them in the sectors
           concerned.
                                              Article 105
                                                Energy
   Co-operation and technical support will focus on the following priority areas :
   a)      development of new gas and electricity interconnections with a view to improving
           the security of supplies within the Mashreq region and further developing Trans-
           Euro-Mediterranean energy networks;
   b)      co-operation for improvement of safety and security of energy infrastructures and
           transmission networks including management of underground oil and gas reservoirs;
   co-operation for the upstream development of petroleum resources;
   technological co-operation in the refining sector and harmonisation of petroleum products
           quality norms;
   c)      opening of energy markets and development of effective regulatory frameworks
           including unbundling, independent regulatory bodies with a view to ensuring the
           well-functioning of the market and cost reflective energy pricing;
EN                                                60                                             EN
 ---pagebreak---    d)        technological co-operation in the field of international standards and procedures,
             energy policy analysis and energy balances as well as improvement of energy data
             collection and management;
   e)        promotion of renewable energies and indigenous energy sources as well as
             promotion of energy saving and energy efficiency measures, with specific emphasis
             on the building and transport sectors;
   f)        co-operation on updated technologies for energy production, transmission and
             distribution in order to reduce technical losses and increase efficiency.
                                                Article 106
                                                  Tourism
   Priorities for co-operation in this sphere shall be:
   a)        improving the knowledge of the tourist industry and ensuring greater consistency of
             policies affecting tourism;
   b)        promoting co-operation between regions and cities of neighbouring countries;
   c)        improving information for tourists and the protection of their interests;
   d)        highlighting the importance of the cultural heritage for tourism;
   e)        ensuring that the interaction between tourism and the environment is maintained in a
             sustainable manner;
   f)        making tourism more competitive through support for increased professionalism, in
             particular with regard to hotel management;
   g)        exchanging information on planned tourism development and promotion of planned
             developments in the Tourism sector, including on tourism marketing projects,
             tourism shows, exhibitions, conventions and publications.
                                                Article 107
                                                 Customs
   1.        The Parties shall promote and facilitate cooperation between their respective customs
             services in order to ensure that the objectives set out in Article 36 are attained,
             particularly in order to guarantee the simplification of customs procedures and to
             facilitate legitimate trade while retaining effective control capabilities.
   2.        Without prejudice to the cooperation established by this Agreement, mutual
             assistance between the administrative authorities in customs matters will be given in
             conformity with Protocol 7: Mutual Assistance between Administrative Authorities
             on customs matters.
EN                                                   61                                            EN
 ---pagebreak---    3.        The cooperation shall give rise among other things, to:
             a)    the provision of technical assistance, including where appropriate, the
                   organisation of seminars and the placement of trainees;
             b)    the development and sharing of best practices; and
             c)    the improvement and simplification of customs matters relating to market
                   access and rules of origin and the customs procedures related to them.
                                               Article 108
                                       Co-operation on statistics
   The main objective of co-operation in this field will be to harmonise methodology in order to
   create a reliable basis for handling statistics on trade, population, migration and generally all
   the fields which are covered by this agreement and lend themselves to the establishment of
   statistics.
                                               TITLE VII
                    CO-OPERATION IN SOCIAL AND CULTURAL MATTERS
                                              CHAPTER 1
                                         SOCIAL DIALOGUE
                                               Article 109
   1.        A regular dialogue shall be established between the Parties on all social issues of
             mutual interest.
   2.        This dialogue shall be used to seek ways and means to further progress as regards the
             movement of workers and the equal treatment and social integration of Syrian and
             EU citizens legally residing in their host countries.
   3.        The dialogue shall focus on problems related to :
             a)    migrant communities' living and working conditions;
             b)    migration;
             c)    projects and programmes on equality of treatment for Syrian and Community
                   nationals, reciprocal awareness of cultures and civilisations, the development
                   of tolerance and the elimination of discrimination.
EN                                                  62                                               EN
 ---pagebreak---                                               CHAPTER 2
                                SOCIAL CO-OPERATION ACTIONS
                                               Article 110
   1.       The Parties acknowledge the importance of social development which should go
            hand in hand with any economic development. They give particular priority to
            respect of basic social rights.
   2.       To consolidate social co-operation between the parties, actions and programmes shall
            be undertaken on any issue of interest to them.
            Priority shall be given to the following actions :
            a)    reduction of migratory pressures through job creation and the development of
                  training in areas with a high emigration rate;
            b)    reintegration of repatriated illegal immigrants;
            c)    promotion of the role of women in social and economic development;
            d)    developing Syrian family planning and mother and child protection
                  programmes;
            e)    improving the social security system;
            f)    improving the healthcare system;
            g)    improving living conditions in underprivileged, densely populated areas;
            h)    exchange programmes for mixed groups of young Syrians and Europeans, with
                  a view to promoting mutual cultural understanding and tolerance.
                                               Article 111
   Co-operation projects may be co-ordinated with the Member States and the appropriate
   international organisations.
                                               Article 112
   A working group may be set up by the Association Council by the end of the first year
   following entry into force of this Agreement. Its brief shall be to evaluate the implementation
   of the provisions of chapters 1 and 2 on an ongoing basis.
EN                                                 63                                              EN
 ---pagebreak---                                                CHAPTER 3
                                      CULTURAL CO-OPERATION
                                                Article 113
   1.        To foster mutual knowledge and understanding, and in line with projects that have
             already been developed along these lines, the Parties shall undertake, in a spirit of
             mutual cultural respect, to establish firm foundations for a continuing cultural
             dialogue and to promote long-term cultural co-operation in any appropriate field of
             activity.
   2.        The Parties shall, in identifying co-operation projects and programmes and joint
             activities, give special attention to young people, to self-expression and
             communication skills using written and audio-visual media, to heritage conservation
             issues and to the dissemination of culture.
   3.        The Parties shall seek ways to encourage Syrian participation in Community
             initiatives in this sector.
   4.        The Parties shall promote activities of mutual interest in the field of information and
             communications.
                                               TITLE VIII
        COOPERATION IN THE FIELDS OF JUSTICE, MIGRATION, AND THE FIGHT
                                     AGAINST ORGANISED CRIME
                                                Article 114
                              Reinforcement of Institutions and Rule of Law
   In their co-operation in the areas addressed under this title, the Parties will attach particular
   importance to the consolidation of the rule of law and the reinforcement of institutions at all
   levels in the areas of administration in general, and law enforcement and the working of the
   justice system in particular.
   Co-operation in the field of Justice will focus in particular on the independence of the
   judiciary, the improvement of its effectiveness and training in the legal professions.
                                                Article 115
                                         Co-operation on Migration
   1.        The Parties reaffirm the importance, which they attach to a joint management of
             migration flows between their territories. With a view to strengthening co-operation
             between them, they shall establish a comprehensive dialogue on all migration-related
             issues, including illegal migration, smuggling and trafficking in human beings, as
EN                                                  64                                               EN
 ---pagebreak---             well as the inclusion of the migration concerns in the national strategies for economic
            and social development of the areas from which migrants originate.
   2.       Co-operation shall be based on a specific needs assessment conducted in mutual
            consultation between the Parties and be implemented in accordance with the relevant
            legislation in force in the Community, in Member States and in Syria. It will, in
            particular, focus on:
            a)     the root causes of migration;
            b)     the admission rules and rights and status of persons admitted, fair treatment of
                   lawfully residing non-nationals, education and training and measures against
                   racism and xenophobia;
            c)     the field of visas, on issues identified as being of mutual interest;
            d)    the field of border controls, on issues related to organisation, training, best
                   practices and other operational measures on the ground and where relevant,
                   equipment, while being aware of the potential dual use of such equipment;
            e)     the establishment of an effective and preventive policy against illegal
                   immigration, smuggling of migrants and trafficking in human beings including
                   the issue of how to combat networks of smugglers and traffickers and how to
                   protect the victims of such trafficking;
            f)     the development and implementation of national legislation and practices with
                   regard to persons in need of international protection, with a view to satisfying
                   the provisions of applicable international instruments;
            g)     the return, under humane and dignified conditions, of persons residing illegally
                   including the promotion of their voluntary return, and the readmission of such
                   persons , in accordance with paragraph 3.
   3.       In the framework of the cooperation to prevent and control illegal immigration, the
            Parties also agree to readmit their illegal migrants. To this end :
            Syria shall readmit any of its nationals illegally present on the territory of a Member
            State of the European Union, upon request by the latter and without further
            formalities, after the accomplishment of the necessary identification procedures;
            and each Member State of the European Union shall readmit any of its nationals
            illegally present on the territory of Syria, upon request by the latter and without
            further formalities, after the accomplishment of the necessary identification
            procedures.
   The Member States of the European Union and Syria will provide their nationals with
   appropriate identity documents and will extend to them the administrative facilities necessary
   for such purposes.
   The Parties agree to conclude, upon request and as soon as possible, an agreement regulating
   specific obligations for Member States of the European Union and Syria on readmission,
   including the readmission of nationals of other countries and stateless persons.
EN                                                  65                                              EN
 ---pagebreak---    For this purpose, the term “Parties” shall mean the Community, any of its Member States and
   Syria.
                                                 Article 116
                                             Money-laundering
   1.       The Parties agree on the necessity of making every effort and co-operating in order
            to prevent the use of their financial systems for laundering of proceeds from criminal
            activities in general and from offences related to illicit drugs and psychotropic
            substances in particular.
   2.       Co-operation in this area may include administrative and technical assistance with
            the purposes to develop the implementation of regulations and efficient functioning
            of mechanisms to combat money laundering in line with accepted international
            standards, including the recommendations of the Financial Action Task Force
            (FATF).
                                                 Article 117
                                       Cooperation on Illicit Drugs
   1.       Within their respective powers and competences, the Parties shall co-operate to
            ensure a balanced approach through effective co-ordination between the competent
            authorities including from the health, justice and interior sectors, with the aim of
            reducing the supply, trafficking and demand of illicit drugs as well as a more
            effective control of illicit trafficking in chemical precursors.
   2.       The Parties shall agree on means of co-operation to attain these objectives. Actions
            shall be based on commonly agreed principles along the lines of the relevant
            international conventions, the political declaration and the Special Declaration on the
            guidelines to reduce drugs demand, approved by the United Nations General
            Assembly Special Session on Drugs 1998.
   3.       The co-operation between the Parties shall comprise technical and administrative
            assistance in particular in the following areas: drafting of national legislation and
            policies; establishment of national institutions and information centres; training of
            personnel; drug related research; and the prevention of diversion of precursors used
            for the illicit manufacture of drugs and psychotropic substances. The Parties may
            agree to include other areas.
                                                 Article 118
                                    Cooperation on Organised Crime
   1.       The Parties agree to cooperate in order to prevent and fight organised crime, in
            particular in the following fields: human trafficking; falsification of documents;
            exploitation for sexual purposes; corruption; the counterfeit of financial instruments;
            the illicit traffic of prohibited, counterfeited or pirated products and of illegal
EN                                                   66                                             EN
 ---pagebreak---              transactions concerning in particular industrial refuse or radioactive material; the
             trafficking of firearms and explosives; computer criminality; stolen cars.
   2.        The Parties shall cooperate closely in order to establish appropriate mechanisms and
             standards.
   3.        Technical and administrative co-operation in this field will include training and the
             strengthening of the effectiveness of the authorities and structures responsible for
             fighting and for preventing criminality and the formulation of measures for crime
             prevention.
                                               TITLE IX
                            COOPERATION ON COUNTER-TERRORISM
                                               Article 119
   The Parties agree to co-operate in the prevention and suppression of acts of terrorism in
   accordance with international conventions, relevant UN resolutions and with their respective
   legislation and regulations. They shall do so in particular:
   1.        in the framework of the full implementation of Resolution no. 1373 of the UN
             Security Council and other relevant UN resolutions, and applicable international
             conventions and instruments;
   2.        by exchange of information on terrorist groups and their support networks, by mutual
             agreement and in accordance with international and national law;
   3.        by exchange of views on means and methods used to counter terrorism, including in
             technical fields and training, and by exchange of experiences in respect of terrorism
             prevention.
                                               TITLE X
                                    FINANCIAL CO-OPERATION
                                               Article 120
   In order to achieve the objectives of this Agreement and to support Syria in the
   implementation of reforms necessary to take full advantage of this new framework, financial
   co-operation for Syria will be implemented in accordance with the appropriate Community
   financial procedures and resources.
   These procedures shall be agreed by both Parties using the most appropriate instruments.
   In addition to the areas covered by Titles VI and VIII of the Agreement, financial co-
   operation shall focus on :
   a)        promoting reforms designed to modernise the economy and the administration;
   b)        upgrading economic infrastructure;
EN                                                 67                                              EN
 ---pagebreak---    c)        promoting private investment and job-creating activities;
   d)        responding to the economic repercussions of the gradual introduction of a free trade
             area, notably by upgrading and restructuring industry;
   e)        accompanying the policies implemented in the social sector.
                                              Article 121
   In the framework of the existing Community financial instruments aimed at supporting the
   structural adjustment programmes in the Mediterranean countries, and in close co-operation
   with the Syrian authorities and other donors, particularly with other international financial
   institutions, the Community shall examine suitable ways of supporting structural policies
   carried out by Syria to restore financial equilibrium in the main financial aggregates and
   encourage the creation of an economic environment conducive to increased growth, while at
   the same time improving the social well-being of the population.
                                              Article 122
   In order to ensure that a co-ordinated approach is adopted to any extraordinary macro-
   economic and financial problems that might arise as a result of the implementation of this
   Agreement, the Parties shall use the regular economic dialogue provided for in Title VI to
   give particular attention to monitoring trade and financial trends in relations between the
   Community and Syria.
                                              TITLE XI
                     INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
                                              Article 123
   An Association Council is hereby established which as a rule shall meet at Ministerial level
   every second year and when circumstances require, at the initiative of its President and in
   accordance with the conditions laid down in its rules of procedure.
   It shall review the progress made in the implementation of this Agreement and in the
   cooperation to support Syrian reform and development efforts. It shall also examine any
   major issues arising within the framework of this Agreement including its economic and
   social impact and any other bilateral or international issues of mutual interest.
                                              Article 124
   1.        The Association Council shall consist of the members of the Council of the European
             Union and members of the European Commission, on the one hand, and members of
             the Government of Syria, on the other.
   2.        Members of the Association Council may arrange to be represented in accordance
             with the provisions laid down in its rules of procedure.
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 ---pagebreak---    3. The Association Council shall establish its rules of procedure.
   4. The Association Council shall be presided in turn by a member of the Council of the
      European Union and a member of the Government of Syria, in accordance with the
      provisions laid down in its rules of procedure.
                                        Article 125
   1. The Association Council shall, for the purpose of attaining the objectives of the
      Agreement, have the power to take decisions in the cases provided for therein.
   2. The decisions taken shall be binding on the Parties which shall take the measures
      necessary to implement the decisions taken. The Association Council may also make
      appropriate recommendations.
   3. It shall draw up its decisions and recommendations by agreement between the two
      Parties.
                                        Article 126
   1. Subject to the powers of the Council, an Association Committee is hereby
      established which shall be responsible for the implementation of the Agreement.
   2. The Association Council may delegate to the Association Committee, in full or in
      part, any of its powers.
                                        Article 127
   1. The Association Committee, which shall meet at official level, shall consist of
      representatives of the Council of the European Union and of the Commission of the
      European Communities, on the one hand, and of representatives of the Government
      of Syria, on the other.
   2. The Association Committee shall establish its rules of procedure.
   3. The Association Committee shall be presided in turn by a representative of the
      European Commission and by a representative of the Government of Syria.
                                        Article 128
   1. The Association Committee shall have the power to take decisions for the
      management of the Agreement as well as in the areas in which the Council has
      delegated its powers to it.
   2. It shall draw up its decisions by agreement between the two Parties. These decisions
      shall be binding on the Parties which shall take the measures necessary to implement
      the decisions taken.
EN                                           69                                            EN
 ---pagebreak---                                                Article 129
   The Association Council will establish any Working Group or Body necessary for the
   implementation of the Agreement, and no later than six months after the application of Titles
   II to V, establish a Body as referred to in Title V, Chapter II, Article 76.
                                               Article 130
   The Association Council shall take all appropriate measures to facilitate co-operation and
   contacts between the European Parliament and the Syrian People's Assembly.
                                               Article 131
   Each of the Parties may refer any question on the interpretation and application of this
   Agreement to the Association Council except for matters covered by Title V relating to the
   Settlement of Trade Disputes for Titles II to IV.
                                               Article 132
   Nothing in the Agreement shall prevent a Party from taking any measures:
   a)        which it considers necessary to prevent the disclosure of information contrary to its
             essential security interests;
   b)        which relate to the production of, or trade in, arms, munitions or war materials or to
             research, development or production indispensable for defence purposes, provided
             that such measures do not impair the conditions of competition in respect of products
             not intended for specifically military purposes;
   c)        which it considers essential to its own security in the event of serious internal
             disturbances affecting the maintenance of law and order, in time of war or serious
             international tension constituting threat of war or in order to carry out obligations it
             has accepted for the purpose of maintaining peace and international security.
                                               Article 133
   In the fields covered by this Agreement and without prejudice to any special provisions
   contained therein:
   a)        the arrangements applied by Syria in respect of the Community shall not give rise to
             any discrimination between the Member States, their nationals or their companies or
             firms;
   b)        the arrangements applied by the Community in respect of Syria shall not give rise to
             discrimination between Syrian nationals or its companies or firms.
EN                                                  70                                                EN
 ---pagebreak---                                                Article 134
   As regards direct taxation, nothing in the Agreement shall have the effect of:
   a)        extending the fiscal advantages granted by either Party in any international
             agreement or arrangement by which it is bound;
   b)        preventing the adoption or application by either Party of any measure aimed at
             preventing the avoidance or evasion of taxes;
   c)        opposing the right of either Party to apply the relevant provisions of its tax
             legislation to taxpayers who are not in identical situations, in particular as regards
             their place of residence.
                                               Article 135
   1.        The Parties shall take any general or specific measures required to fulfil their
             obligations under the Agreement. They shall see to it that the objectives set out in the
             Agreement are attained.
   2.        If either Party considers that the other Party has failed to fulfil an obligation under
             the Agreement, it may take appropriate measures. Before so doing, except in cases of
             special urgency, it shall supply the Association Council with all relevant information
             required for a thorough examination of the situation with a view to seeking a solution
             acceptable to the Parties.
             In the selection of measures priority must be given to those which least disturb the
             functioning of the Agreement. These measures shall be notified immediately to the
             Association Council and shall be the subject of consultations within the Association
             Council if the other Party so requests.
                                               Article 136
                                         Approximation of laws
   The Parties shall use their best endeavours to approximate their respective legislation in order
   to facilitate the implementation of this Agreement.
                                               Article 137
   Protocols 1 to 8 and Annexes I to VIII shall form an integral part of this Agreement.
   Declarations and exchanges of letters shall appear in the Final Act, which shall form an
   integral part of this Agreement.
EN                                                 71                                                 EN
 ---pagebreak---                                                Article 138
   For the purpose of this Agreement the term "Parties" shall mean Syria on the one part and the
   Community, or the Member States, or the Community and the Member States, in accordance
   with their respective powers, on the other part.
                                               Article 139
   The Agreement is concluded for an unlimited period.
   Each of the Parties may denounce the Agreement by notifying the other Party. The Agreement
   shall cease to apply six months after the date of such notification.
                                               Article 140
   This Agreement shall apply, on the one hand, to the territories in which the Treaties
   establishing the European Community are applied and under the conditions laid down in those
   Treaties and, on the other hand, to the territory of Syria.
                                               Article 141
   This Agreement, drawn up in duplicate in the Arabic, Spanish, Czech, Danish, German,
   Estonian, Greek, English, French, Italian, Latvian, Lithuanian, Hungarian, Maltese, Dutch,
   Polish, Portuguese, Slovak, Slovene, Finnish, and Swedish languages, each of these texts
   being equally authentic, shall be deposited with the General Secretariat of the Council of the
   European Union.
                                               Article 142
   1.       This Agreement will be approved by the Parties in accordance with their own
            procedures. This Agreement shall enter into force on the first day of the second
            month following the date on which the Parties notify each other that the procedures
            referred to in this paragraph have been completed.
   2.       Upon its entry into force this Agreement shall replace the Agreement between the
            European Economic Community and Syria, and the Agreement between the
            European Coal and Steel Community and Syria, signed in Brussels on 18.1.1977.
                                               Article 143
                                        Provisional Application
   1.       Notwithstanding article 142, the Community and Syria agree to apply Article 2,
            Articles 7 to 42 (Title II: Free movement of goods), Articles 61 and 63 (Payments
            and capital movements), Articles 64 to 73 (Competition, Government procurement,
            and Other Economic Matters), Articles 74 to 89 (Title V: Dispute settlement), Article
            97 (Industrial co-operation), Article 99 (Standards, Technical Regulation, and
            Conformity Assessment Procedures), Article 100 (Cooperation on intellectual,
EN                                                 72                                             EN
 ---pagebreak---       industrial and commercial property rights), Article 101 (Financial Services), Article
      102 (Agricultural and fisheries), Article 107 (Customs co-operation), Article 120,
      Articles 132 to 138, and Articles 140 and 141 (Title XI: Institutional, General, and
      Final Provisions), from the first day of the third month following the date on which
      the Community and Syria have notified each other of the completion of the
      procedures necessary for this purpose. Notifications shall be sent to the Secretary
      General of the Council of the European Union, who shall be the depository of this
      agreement.
   2. The Co-operation Council set up under the Co-operation Agreement between the
      European Economic Community and the Syrian Arab Republic signed on 18 January
      1977 shall perform mutatis mutandis its duties until the Association Council and the
      Association Committee provided for in Title XI of the Association Agreement are
      created.
      During the provisional application of the above-mentioned Articles, and where
      appropriate, reference to the “Association Council” and to “the Association
      Committee” shall be construed as reference to the Co-operation Council and the
      Committees established by it.
   3. Where in accordance with paragraph 1, a provision of this Agreement is applied by
      the Parties pending its entry into force, any reference in such provision to the date of
      entry into force of this Agreement shall be understood to be made to the date from
      which the Parties agree to apply that provision in accordance with paragraph 1.
EN                                           73                                                EN
 ---pagebreak---    Joint Declaration pertaining to the entire Agreement
   The Parties, while developing their relations on the basis of this Agreement, reiterate their full
   commitment to respect the principles and purposes of the Charter of the United Nations, and
   agree to work together in order to achieve a just and comprehensive peace in the Middle East
   in accordance with the Madrid Terms of Reference and United Nations Security Council
   resolutions 242 and 338, and to pursue the creation in the region of a zone free of all weapons
   of mass destruction, nuclear, biological and chemical, and turn it into a region of stability and
   prosperity.
   Declaration by the European Community relating to Article 64
   The Community declares that, in the context of the interpretation of Article 64(1), it will
   assess any practice contrary to that Article on the basis of the criteria resulting from the rules
   contained in Articles 81 and 82 of the Treaty establishing the European Community,
   including secondary legislation.
   Joint Declaration on Article 64
   The Parties recognise that Syria plans to write its own competition law. While writing its law,
   Syria will take into consideration the rules of competition developed within the European
   Union. The implementation of the administrative methods of co-operation mentioned in
   Article 64 paragraph 2 is conditioned at the entry into force of the Syrian competition law and
   of the taking up of the duties of the authority responsible for its application.
   Declaration of the European Commission and the Council of the European Union on
   article concerning Cooperation on Migration, (Article 115)
   Article 115 shall be without prejudice to the internal division of powers between the European
   Community and its Member States for the conclusion of readmission agreements.
   Joint Declaration concerning Cooperation on Migration (Article 115 (f))
   The Parties agree that in implementing Article 115 (f) of Title VIII, they will ensure the
   respect of the principle of “non-refoulement” without prejudice to the provisions of United
   Nations General Assembly Resolution 194 (1948).
   Joint Declaration on Article 113
   The Parties declare that special attention will be given to the protection, conservation and
   restoration of archeological sites and monuments.
   The Parties agree to cooperate in seeking to ensure the return of archeological artifacts related
   to the Syrian cultural heritage unlawfully removed from the country in line with the
   International Convention on the Means of Prohibition and Prevention of the Illicit Import,
   Export and Transfer of Ownership of Cultural Property (UNESCO 1970).
EN                                                  74                                                EN
 ---pagebreak---    Joint Declaration on the EC Generalised System of Preferences
   The preferences granted under this Agreement include the preferences granted under the
   European Community Generalised System of Preferences (GSP) as in Council Regulation
   (EC) No 2501/2001 of 10 December 2001 applying a scheme of generalised tariff preferences
   for the period from 1 January 2002 to 31 December 2004, as extended in 2005 by Council
   Regulation (EC) No 2211/2003 of 15 December 2003. As a consequence, the European
   Community will take in due time the appropriate measures to withdraw Syria from the list of
   GSP beneficiary countries.
EN                                            75                                               EN
 ---pagebreak---    LIST OF PROTOCOLS AND ANNEXES
   Protocol 1 :  Arrangements applicable to imports into the Community of agricultural
                 products originating in Syria.
   Protocol 2 :  Arrangements applicable to imports into Syria of agricultural products
                 originating in the Community.
   Protocol 3 :  Arrangements applicable to imports into the Community of fisheries
                 products originating in Syria.
   Protocol 4 :  Arrangements applicable to imports into Syria of fisheries products
                 originating in the Community.
   Protocol 5 :  Arrangements applicable to Processed Agricultural Products.
   Protocol 6 :  Definition of 'originating products' and methods of administrative co-
                 operation.
   Protocol 7 :  Mutual assistance between administrative authorities on custom matters.
   Protocol 8 :  List of Products covered by Article 13.7.
   Annex I :     Syrian tariff schedule referred to in article 9.3.
   Annex II :    List of products referred to in articles 11 and 16.
   Annex III :   Community reservation list referred to in Article 43.1.b (Right of
                 establishment).
   Annex IV :    Syrian reservation list referred to in Article 43.2.a (Right of
                 establishment).
   Annex V :     Modalities for cooperation referred to in Article 64.2 (Competition).
   Annex VI :    Intellectual, industrial and commercial property rights.
   Annex VII :   Government Procurement: Rules of Procedure, List of Entities and other
                 documents.
   Annex VIII :  Dispute Settlement (Title V): Rules of Procedure and Code of Conduct.
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 ---pagebreak---                                                                                                (fichefin/04/32780)
                FINANCIAL STATEMENT
                                                                                               DATE: 25/10/2004
   1.    BUDGET HEADING:                                                                       APPROPRIATIONS:
         Chapter 10 – Agricultural Duties                                                      Budget 2004:
                                                                                               € 858,975 million
   2.    TITLE:
         Euro-Mediterranean Agreement establishing an association between the European Community and its
         Member States of the one part, and the Syrian Arab Republic of the other part
   3.    LEGAL BASIS:
         Article 310 of the Treaty, in conjunction with Article 300 (2) and Article 300 (3)
   4.    AIMS:
         To establish an association between the Community and the Syrian Arab Republic
   5.    FINANCIAL IMPLICATIONS                              12 MONTH              CURRENT            FOLLOWING
                                                               PERIOD             FINANCIAL            FINANCIAL
                                                                                      YEAR                YEAR
                                                                                       2004                2005
                                                            (EUR million)        (EUR million)        (EUR million)
   5.0   EXPENDITURE                                              0,024                  -                0,024
         -         CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)
         -         NATIONAL AUTHORITIES
         -         OTHER
   5.1   REVENUE                                                 -1.336                  -                -1.336
         -         OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
         -         NATIONAL
                                                                 2006              2007          2208
   5.0.1 ESTIMATED EXPENDITURE                                   0,024             0,024         0,024
   5.1.1 ESTIMATED REVENUE                                      -1.336            -1.336        -1.336         […]
   5.2   METHOD OF CALCULATION:
         Expenditure:        12 man-missions per year x €2000 per mission
         Revenue:
         Revenue loss is based on current trade levels, and is estimated at an annual € 11.000 for processed
         agricultural products and at € 1,77 million for agricultural products. This amount will not be affected by
         increases in trade volumes within the tariff quotas, since this is unlikely to exceed quota levels in the
         coming few years. The amount is reduced by 25% for collection costs.
   6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
         RELEVANT CHAPTER OF THE CURRENT BUDGET?                                                              YES
   6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
         THE CURRENT BUDGET?                                                                                  YES
   6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                             NO
   6.3   WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?                                             NO
   OBSERVATIONS:
   The yearly gross loss in own resources in 2005 and later is estimated at € 1,781 million (before deduction of
   25% for collection costs) yearly.
EN                                                        77                                                        EN