CELEX: 52015JC0024
Language: en
Date: 2015-05-21
Title: Joint Proposal for a COUNCIL DECISION on the signing, on behalf of the European Union, and provisional application of the Enhanced Partnership and Cooperation Agreement between the European Union and the Republic of Kazakhstan

HIGH REPRESENTATIVE OF THE
                                                                   EUROPEAN UNION FOR
                           EUROPEAN                                FOREIGN AFFAIRS AND
                           COMMISSION                                   SECURITY POLICY
                                                      Brussels, 21.5.2015
                                                      JOIN(2015) 24 final
                                                      2015/0110 (NLE)
                                      Joint Proposal for a
                                   COUNCIL DECISION
    on the signing, on behalf of the European Union, and provisional application of the
   Enhanced Partnership and Cooperation Agreement between the European Union and
                                 the Republic of Kazakhstan
EN                                                                                      EN
 ---pagebreak---                                EXPLANATORY MEMORANDUM
   1.        CONTEXT OF THE PROPOSAL
   The attached proposal constitutes the legal instrument for authorising the signature and
   provisional application of the Enhanced Partnership and Cooperation Agreement between the
   European Union and the Republic of Kazakhstan (hereinafter referred to as ‘the Agreement’).
   Relations between the European Union (EU) and the Republic of Kazakhstan (Kazakhstan)
   are currently based on the Partnership and Cooperation Agreement signed in Brussels on 23
   January 1995, which entered into force in June 1999.
   On 13 April 2011, the Council adopted a Decision authorising the European Commission to
   negotiate the Enhanced Partnership and Cooperation Agreement between the European Union
   and Kazakhstan. Negotiation of the Agreement began in June 2011, but Kazakhstan halted
   talks between September 2012 and October 2013, most likely as a result of its membership of
   the Customs Union with Russia and Belarus. Following the eighth round of negotiations held
   on 12 September 2014, the EU and Kazakhstan finalised the text of the Agreement. Both
   parties initialled the Agreement on 20 January 2015.
   For the EU, the Agreement constitutes an important step towards increased political and
   economic involvement in Central Asia. By strengthening political dialogue and improving
   cooperation in a broad range of areas, it will provide the basis for more effective bilateral
   engagement with Kazakhstan.
   The Agreement includes the EU’s standard political clauses on human rights, the International
   Criminal Court, weapons of mass destruction, small arms and light weapons and counter-
   terrorism. It also contains provisions on cooperation in the areas of health, the environment,
   climate change, energy, taxation, education and culture, employment and social affairs,
   science and technology and transport. In addition, it covers legal cooperation, the rule of law,
   money laundering and terrorist financing, organised crime and corruption. Provisions on trade
   are also included in the Agreement. These will ensure a better regulatory environment for
   businesses in Kazakhstan, and thus bring substantial economic benefits for EU businesses.
   2.        RESULTS OF CONSULTATIONS WITH INTERESTED PARTIES AND OF
             IMPACT ASSESSMENTS
   The Council has been kept informed at all stages of the negotiations. It has been consulted in
   the Working Party on Eastern Europe and Central Asia and in the Trade Policy Committee.
   The European Parliament has also been kept immediately and fully informed throughout the
   negotiations.
   The European External Action Service and the Commission consider that the objectives set by
   the Council in its negotiating directives have been met, and that the draft Agreement can be
   submitted for signature.
   3.        LEGAL ELEMENTS OF THE PROPOSAL
   Legal basis
EN                                                2                                                 EN
 ---pagebreak---    The choice of the legal basis ‘must rest on objective factors amenable to judicial review,
   which include the aim and content of that measure’1. The legal basis of a measure depends on
   its predominant purpose. Provisions that are ancillary to a principal purpose do not require a
   separate legal basis. Measures that do not have a single predominant purpose may, however,
   be founded on multiple legal bases2, provided that the decision-making procedures entailed
   under each legal basis are compatible with one another.
   As described in Article 2 ‘Aims of this Agreement’, the Agreement aims to establish a
   partnership involving more extensive cooperation between the parties, on the basis of
   common interest. It is designed to develop the relationship between the two parties in all areas
   of its application. Such cooperation is described as a "process between the Parties that
   contributes to international and regional peace and stability, and economic development and is
   structured around principles that the Parties reaffirm also by their international commitments
   notably under the UN and the OSCE".
   As regards its content, the Agreement builds essentially on a three-pillar structure:
   –         Political dialogue and cooperation in the field of foreign and security policy: Title I
             ‘General principles and aims of this Agreement’ and Title II ‘Political dialogue:
             cooperation in the field of foreign and security policy’. Title II contains provisions
             on political dialogue, democracy and the rule of law, foreign and security policy,
             space security, serious crimes of international concern, conflict prevention and crisis
             management and counter-terrorism .
   –         Trade and business: Title III ‘Trade and business’ includes provisions on trade in
             goods, customs, technical barriers to trade, sanitary and phytosanitary matters,
             services and establishment, capital movement and payments, intellectual property,
             government procurement, raw materials and energy, trade and sustainable
             development, competition and trade dispute settlement.
   –         Sectoral cooperation: Title IV ‘Cooperation in the area of economic and sustainable
             development’, Title V ‘Cooperation in the area of justice, freedom and security’,
             Title VI ‘Other cooperation policies’, Title VII ‘Financial and technical cooperation’.
             These Titles include provisions on cooperation in a wide range of areas such as
             migration, the environment, taxation, transport, education, the information society,
             agriculture and rural development.
   The aim and content of the Agreement indicates that the provisions of the Agreement fall
   within the scope of Article 37 TEU and Articles, 207 and 2093 TFEU.
   1
           Case C-155/07, Parliament v Council, EU:C:2008:605, paragraph 34.
   2
           Case C-490/10, Parliament v Council, paragraph 46 ‘With regard to a measure that simultaneously
           pursues a number of objectives, or that has several components, which are inseparably linked without
           one being incidental to the other, the Court has held that, where various provisions of the Treaty are
           therefore applicable, such a measure will have to be founded, exceptionally, on the various
           corresponding legal bases’.
   3
           The Republic of Kazakhstan is classified as an upper middle income country in the most recent
           Development Assistance Committee’s list of Official Development Assistance recipients (to be used for
           reporting on 2014, 2015 and 2016 flows), as mentioned in Article 1(1) of Regulation (EU) No 233/2014
EN                                                       3                                                        EN
 ---pagebreak---    Legal nature:
   The High Representative and the Commission note that the legal bases for signing the
   Agreement confer power on the EU to enter into agreements with third parties in the areas
   covered by the Agreement. In particular:
   –          Article 37 TEU grants the EU the power to conclude agreements with third parties in
              the area of common foreign and security policy.
   –          Article 207 TFEU grants the EU the power to enter into agreements in the area of
              common commercial policy. In accordance with Article 3(1) TFEU, the EU has
              exclusive competence in this area.
   –          Article 209 TFEU grants the EU the power to conclude agreements with non-EU
              countries in the area of development cooperation policy.
   Pursuant to the case law, the question whether a provision of an agreement “comes within the
   competence of the [Union] is one which relates to the attribution and, thus, the very existence
   of that competence, and not to its exclusive or shared nature."4 Therefore, to the extent that
   the Treaties have attributed competence to the Union in a policy area, the Union may exercise
   such competence externally.
   It is necessary to note that, pursuant to Article 3(2) TFEU, the Union shall also have exclusive
   competence for the conclusion of an international agreement “in so far as its conclusion may
   affect common rules or alter their scope.'’ The Court of Justice has held in a recent ruling that
   negotiations '‘may affect common rules or alter their scope'’ to the extent that '‘the content of
   the negotiations … falls within an area covered to a large extent by common EU rules...
   Therefore those negotiations fall within the exclusive competence of the European Union'’5.
   Recent case-law also clarifies that an analysis of competence, especially exclusive
   competence, must take into account not only the existing Union rules but also the
   '‘foreseeable future development […] of those rules'’.6
   The Treaties have thus conferred power on the EU to act in all the areas covered by the
   Agreement.
            of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument
            for development cooperation for the period 2014-20 (OJ L 77, 15.3.2014, p. 44).
   4
            Case C-459/03 Commission v. Ireland, paragraph 93
   5
            Case C-114/12 Commission v Council, paragraph 102.
   6
            Opinion 1/13, paragraph 74 and Case C-66/13 Green Network, paragraph 33.
EN                                                        4                                                    EN
 ---pagebreak---    Other legal considerations
   The Agreement sets up an institutional framework composed of the Cooperation Council, the
   Cooperation Committee and the Parliamentary Cooperation Committee (see Title VIII
   ‘Institutional framework’ and Title IX ‘General and final provisions’). It also introduces a
   procedure for settling disputes, to be used should one of the parties fail to fulfil its obligations
   under the Agreement.
   Article 281 of the Agreement stipulates that the EU and Kazakhstan may provisionally apply
   the Agreement in whole or in part, in accordance with their respective internal procedures and
   legislation.
   The Agreement is concluded for an unlimited period, and can be terminated at six months’
   notice.
   As of its entry into force, the Agreement supersedes the Partnership and Cooperation
   Agreement between the European Communities and their Member States, of the one part, and
   the Republic of Kazakhstan, of the other part, signed on 23 January 1995.
EN                                                5                                                     EN
 ---pagebreak---                                                           2015/0110 (NLE)
                                          Joint Proposal for a
                                       COUNCIL DECISION
       on the signing, on behalf of the European Union, and provisional application of the
     Enhanced Partnership and Cooperation Agreement between the European Union and
                                    the Republic of Kazakhstan
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on European Union, in particular Article 37 thereof,
   Having regard to the Treaty on the Functioning of the European Union, in particular Articles
   207 and 209, in conjunction with Article 218(5) and the second paragraph of Article 218(8)
   thereof,
   Having regard to the proposal from the European Commission and the High Representative of
   the Union for Foreign Affairs and Security Policy,
   Whereas:
   (1)     On 13 April 2011, the Council authorised the Commission to open negotiations with
           the Republic of Kazakhstan on an Enhanced Partnership and Cooperation Agreement.
   (2)     Negotiations on the Enhanced Partnership and Cooperation Agreement were
           successful, and the Agreement was initialled on 20 January 2015
   (3)     Article 281 of the Agreement provides for the provisional application in whole or in
           part of the Agreement before its entry into force.
   (4)     The Agreement should therefore be signed on behalf of the EU and applied on a
           provisional basis, pending its conclusion at a later date,
   HAS ADOPTED THIS DECISION:
EN                                                 6                                            EN
 ---pagebreak---                                                Article 1
   1.      The signing of the Enhanced Partnership and Cooperation Agreement between the
           European Union and the Republic of Kazakhstan is hereby approved on behalf of the
           European Union, subject to the conclusion of the said Agreement.
   2.      The text of the Agreement to be signed is attached to this Decision.
                                               Article 2
   The Council Secretariat General shall establish the instrument of full powers to sign the
   Agreement, subject to its conclusion, for the person(s) indicated by the negotiators of the
   Agreement.
                                               Article 3
   1.      In accordance with Article 281 of the Agreement and subject to the notifications
           provided for therein, the Agreement shall be applied provisionally in whole between
           the Union and the Republic of Kazakhstan, pending its entry into force.
   2.      The date from which the Agreement is to be provisionally applied shall be published
           in the Official Journal of the European Union by the General Secretariat of the
           Council.
                                               Article 4
   This Decision shall enter into force on the day following that of its adoption.
   Done at Brussels,
                                                For the Council
                                                The President
EN                                                 7                                           EN
 ---documentbreak---                                                      HIGH REPRESENTATIVE OF THE
                                                                EUROPEAN UNION FOR
                          EUROPEAN                              FOREIGN AFFAIRS AND
                          COMMISSION                                 SECURITY POLICY
                                                   Brussels, 21.5.2015
                                                   JOIN(2015) 24 final
                                                   ANNEX 1
                                         ANNEX
   Enhanced Partnership and Cooperation Agreement between the European Union and
                               the Republic of Kazakhstan
                                           to the
   Joint Proposal for a COUNCIL DECISION on the signing, on behalf of the European
     Union, and provisional application of the Enhanced Partnership and Cooperation
         Agreement between the European Union and the Republic of Kazakhstan
EN                                                                                   EN
 ---pagebreak---                              TABLE OF CONTENTS
PREAMBLE
TITLE I            GENERAL PRINCIPLES AND AIMS OF THIS AGREEMENT
TITLE II           POLITICAL DIALOGUE; COOPERATION IN THE FIELD OF
                   FOREIGN AND SECURITY POLICY
TITLE III          TRADE AND BUSINESS
    CHAPTER 1          TRADE IN GOODS
    CHAPTER 2          CUSTOMS
    CHAPTER 3          TECHNICAL BARRIERS TO TRADE
    CHAPTER 4          SANITARY AND PHYTOSANITARY MATTERS
    CHAPTER 5          SERVICES AND ESTABLISHMENT
          SECTION 1        GENERAL PROVISIONS
          SECTION 2        ESTABLISHMENT AND CROSS-BORDER SUPPLY OF
                           SERVICES
              SUB-SECTION 1     ALL ECONOMIC ACTIVITIES
              SUB-SECTION 2     ECONOMIC ACTIVITIES OTHER THAN SERVICES
          SECTION 3        TEMPORARY PRESENCE OF NATURAL PERSONS FOR
                           BUSINESS PURPOSES
                                 EU/KZ/L/en 1
 ---pagebreak---    SECTION 4     DOMESTIC REGULATION
   SECTION 5     SECTOR SPECIFIC PROVISIONS
   SECTION 6     EXCEPTIONS
   SECTION 7     INVESTMENT
CHAPTER 6    CAPITAL MOVEMENTS AND PAYMENTS
CHAPTER 7    INTELLECTUAL PROPERTY
   SECTION 1     PRINCIPLES
   SECTION 2     STANDARDS CONCERNING INTELLECTUAL PROPERTY
                 RIGHTS
   SECTION 3     ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS
   SECTION 4     LIABILITY OF INTERMEDIARY SERVICE PROVIDERS
CHAPTER 8    GOVERNMENT PROCUREMENT
CHAPTER 9    RAW MATERIALS AND ENERGY
CHAPTER 10   TRADE AND SUSTAINABLE DEVELOPMENT
CHAPTER 11   COMPETITION
CHAPTER 12   STATE-OWNED ENTERPRISES, STATE-CONTROLLED
             ENTERPRISES AND ENTERPRISES GRANTED SPECIAL OR
             EXCLUSIVE RIGHTS OR PRIVILEGES
                       EU/KZ/L/en 2
 ---pagebreak---     CHAPTER 13        TRANSPARENCY
    CHAPTER 14        DISPUTE SETTLEMENT
         SECTION 1        OBJECTIVE AND SCOPE
         SECTION 2        CONSULTATIONS AND MEDIATION
         SECTION 3        DISPUTE SETTLEMENT PROCEDURES
             SUB-SECTION 1     ARBITRATION PROCEDURE
             SUB-SECTION 2     COMPLIANCE
             SUB-SECTION 3     COMMON PROVISIONS
         SECTION 4        GENERAL PROVISIONS
TITLE IV          COOPERATION IN THE AREA OF ECONOMIC AND SUSTAINABLE
                  DEVELOPMENT
    CHAPTER 1         ECONOMIC DIALOGUE
    CHAPTER 2         COOPERATION IN PUBLIC FINANCE MANAGEMENT,
                      INCLUDING PUBLIC AUDIT AND INTERNAL CONTROL
    CHAPTER 3         COOPERATION IN THE AREA OF TAXATION
    CHAPTER 4         COOPERATION IN THE AREA OF STATISTICS
    CHAPTER 5         COOPERATION IN THE AREA OF ENERGY
                                EU/KZ/L/en 3
 ---pagebreak---     CHAPTER 6      COOPERATION IN THE AREA OF TRANSPORT
    CHAPTER 7      COOPERATION IN THE AREA OF ENVIRONMENT
    CHAPTER 8      COOPERATION IN THE AREA OF CLIMATE CHANGE
    CHAPTER 9      COOPERATION IN THE AREA OF INDUSTRY
    CHAPTER 10     COOPERATION IN THE AREA OF SMALL AND MEDIUM
                   SIZED ENTERPRISES
    CHAPTER 11     COOPERATION IN THE AREA OF COMPANY LAW
    CHAPTER 12     COOPERATION IN THE AREA OF BANKING, INSURANCE
                   AND OTHER FINANCIAL SERVICES
    CHAPTER 13     COOPERATION IN THE AREA OF INFORMATION SOCIETY
    CHAPTER 14     COOPERATION IN THE AREA OF TOURISM
    CHAPTER 15     COOPERATION IN THE AREA OF AGRICULTURE AND
                   RURAL DEVELOPMENT
    CHAPTER 16     COOPERATION ON EMPLOYMENT, LABOUR RELATIONS,
                   SOCIAL POLICY AND EQUAL OPPORTUNITIES
    CHAPTER 17     COOPERATION IN THE AREA OF HEALTH
TITLE V        COOPERATION IN THE AREA OF JUSTICE, FREEDOM AND
               SECURITY
TITLE VI       OTHER COOPERATION POLICIES
    CHAPTER 1      COOPERATION ON EDUCATION
                             EU/KZ/L/en 4
 ---pagebreak---     CHAPTER 2      COOPERATION IN THE FIELD OF CULTURE
    CHAPTER 3      COOPERATION IN RESEARCH AND INNOVATION
    CHAPTER 4      COOPERATION IN THE MEDIA AND AUDIOVISUAL FIELDS
    CHAPTER 5      CIVIL SOCIETY COOPERATION
    CHAPTER 6      COOPERATION IN THE FIELD OF SPORT AND PHYSICAL
                   ACTIVITY
    CHAPTER 7      COOPERATION INT HE AREA OF CIVIL PROTECTION
    CHAPTER 8      COOPERATION IN SPACE ACTIVITIES
    CHAPTER 9      COOPERATION IN THE AREA OF CONSUMER PROTECTION
    CHAPTER 10     REGIONAL COOPERATION
    CHAPTER 11     COOPERATION IN THE FIELD OF CIVIL SERVICE
TITLE VII      FINANCIAL AND TECHNICAL COOPERATION
TITLE VIII     INSTITUTIONAL FRAMEWORK
TITLE IX       GENERAL AND FINAL PROVISIONS
                             EU/KZ/L/en 5
 ---pagebreak--- ANNEX I        RESERVATIONS IN ACCORDANCE WITH ARTICLE 46
ANNEX II       LIMITATIONS APPLIED BY THE REPUBLIC OF KAZAKHSTAN IN
               ACCORDANCE WITH ARTICLE 48(2)
ANNEX III      SCOPE OF CHAPTER 8 (GOVERNMENT PROCUREMENT) OF TITLE
               III (TRADE AND BUSINESS)
ANNEX IV       MEDIA FOR PUBLICATION OF PROCUREMENT INFORMATION
               AND NOTICES OF CHAPTER 8 (GOVERNMENT PROCUREMENT)
               OF TITLE III (TRADE AND BUSINESS)
ANNEX V        RULES OF PROCEDURE FOR ARBITRATION OF CHAPTER 14
               (DISPUTE SETTLEMENT) OF TITLE III (TRADE AND BUSINESS)
ANNEX VI       CODE OF CONDUCT FOR MEMBERS OF ARBITRATION PANELS
               AND MEDIATORS OF CHAPTER 14 (DISPUTE SETTLEMENT) OF
               TITLE III (TRADE AND BUSINESS)
ANNEX VII      MEDIATION MECHANISM OF CHAPTER 14 (DISPUTE
               SETTLEMENT) OF TITLE III (TRADE AND BUSINESS)
PROTOCOL ON MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS
                               EU/KZ/L/en 6
 ---pagebreak---                ENHANCED
PARTNERSHIP AND COOPERATION AGREEMENT
     BETWEEN THE EUROPEAN UNION
    AND THE REPUBLIC OF KAZAKHSTAN
               EU/KZ/en 1
 ---pagebreak---                                                PREAMBLE
THE EUROPEAN UNION
and
THE REPUBLIC OF KAZAKHSTAN,
hereinafter jointly referred to as “the Parties”,
CONSIDERING the strong links between the Parties and their common values, and their wish to
further strengthen and extend links established in the past through the implementation of the
Partnership and Cooperation Agreement between the European Communities and their
Member States and the Republic of Kazakhstan signed in Brussels on 23 January 1995 and the
European Union -Central Asia Strategy for a New Partnership adopted by the European Council
in June 2007 as well as the Republic of Kazakhstan’s state programme “Path to Europe” adopted
in 2008;
CONSIDERING the commitment of the Parties to the full implementation of the principles and
provisions of the Charter of the United Nations (“the UN Charter”), of the Universal Declaration of
Human Rights, and of the Organisation for Security and Cooperation in Europe (OSCE), in
particular of the Helsinki Final Act as well as other generally recognised norms of international law;
                                               EU/KZ/en 2
 ---pagebreak--- CONSIDERING the strong commitment of the Parties to strengthen the promotion, protection and
implementation of fundamental freedoms, human rights, and the respect for democratic principles,
the rule of law, and good governance;
RECOGNISING the strong adherence of the Parties to the following principles in their cooperation
in human rights and democracy: the promotion of shared goals, open and constructive political
dialogue, transparency, and respect for international human rights standards;
CONSIDERING the commitment of the Parties to adhere to the principles of a free market
economy;
RECOGNISING the growing importance of trade and investment relations between the European
Union and the Republic of Kazakhstan;
CONSIDERING that the Agreement will further strengthen their close economic relationship and
create a new climate and better conditions for the further development of trade and investment
between the Parties, including in the field of energy;
CONSIDERING the objective of enhancing trade and investment, in all sectors, on an enhanced
legal basis, in particular this Agreement and the Agreement establishing the World Trade
Organisation (WTO);
                                              EU/KZ/en 3
 ---pagebreak--- CONSIDERING the commitment of the Parties to promote international peace and security and the
peaceful settlement of disputes, notably by cooperating in an effective manner to that end within the
framework of the UN and the OSCE;
CONSIDERING the willingness of the Parties to further develop regular political dialogue on
bilateral and international issues of mutual interest;
CONSIDERING the commitment of the Parties to international obligations to fight against the
proliferation of weapons of mass destruction and their means of delivery and to cooperate in the
areas of non-proliferation, and nuclear safety and security;
CONSIDERING the commitment of the Parties to combat the illicit trade and the accumulation of
small arms and light weapons and bearing in mind the adoption of the Arms Trade Treaty (ATT) by
the UN General Assembly;
CONSIDERING the importance of the active participation of the Republic of Kazakhstan in the
implementation of the European Union -Central Asia Strategy for a New Partnership;
CONSIDERING the commitment of the Parties to combat organised crime and trafficking in human
beings and to step up cooperation on counter-terrorism;
                                              EU/KZ/en 4
 ---pagebreak--- CONSIDERING the commitment of the Parties to step up their dialogue and cooperation on
migration-related issues, with a comprehensive approach aiming at cooperation on legal migration
and tackling irregular migration and trafficking in human beings, and recognising the importance of
the readmission clause of this Agreement;
DESIROUS of ensuring balanced conditions in the European Union - Republic of Kazakhstan
bilateral trade relations;
CONSIDERING the commitment of the Parties to the compliance with the rights and obligations
arising from the membership in the WTO, and to the transparent and non-discriminatory
implementation of those rights and obligations;
CONSIDERING the commitment of the Parties to respect the principle of sustainable development,
including by promoting the implementation of multilateral international agreements and regional
cooperation;
DESIROUS of enhancing mutually beneficial cooperation in all fields of mutual interest and
strengthening its framework as appropriate;
                                             EU/KZ/en 5
 ---pagebreak--- RECOGNISING the need for enhanced energy cooperation, security of energy supply and
facilitating the development of appropriate infrastructure, building on the Memorandum of
Understanding on cooperation in the field of energy between the European Union and the Republic
of Kazakhstan done in Brussels on 4 December 2006, and in the context of the Energy Charter
Treaty;
RECOGNISING that all cooperation in the peaceful uses of nuclear energy is governed by the
Cooperation Agreement between the European Atomic Energy Community and the Republic of
Kazakhstan in the field of nuclear safety signed in Brussels on 19 July 1999 and does not fall under
this Agreement;
CONSIDERING the commitment of the Parties to improve the level of public health safety and
protection of human health as a precondition for sustainable development and economic growth;
CONSIDERING the commitment of the Parties to enhanced people-to-people contacts, including
through cooperation and exchanges in the fields of science and technology, innovation,
development, education and culture;
CONSIDERING that the Parties shall promote mutual understanding and convergence of their
legislation and regulatory framework, in order to strengthen further mutually beneficial links and
sustainable development;
                                             EU/KZ/en 6
 ---pagebreak--- NOTING that in case the Parties decided, within the framework of this Agreement, to enter into
specific agreements in the area of freedom, security and justice which were to be concluded by the
European Union pursuant to Title V of Part Three of the Treaty on the Functioning of the European
Union, the provisions of such future agreements would not bind the United Kingdom and/or Ireland
unless the European Union, simultaneously with the United Kingdom and/or Ireland as regards their
respective previous bilateral relations, notifies the Republic of Kazakhstan that the United Kingdom
and/or Ireland has/have become bound by such agreements as part of the European Union in
accordance with Protocol (No 21) on the position of the United Kingdom and Ireland in respect of
the area of Freedom, Security and Justice annexed to the Treaty on European Union and the Treaty
on the Functioning of the European Union. Likewise, any subsequent EU-internal measures which
were to be adopted pursuant to the above mentioned Title V to implement this Agreement would
not bind the United Kingdom and/or Ireland unless they have notified their wish to take part or
accept such measures in accordance with Protocol No 21. Also noting that such future agreements
or such subsequent EU-internal measures would fall within Protocol (No 22) on the position of
Denmark annexed to the said Treaties.
HAVE AGREED AS FOLLOWS:
                                               EU/KZ/en 7
 ---pagebreak---                                                 TITLE I
                  GENERAL PRINCIPLES AND AIMS OF THIS AGREEMENT
                                              ARTICLE 1
                                           General principles
Respect for democratic principles and human rights as laid down in the Universal Declaration of
Human Rights, the Helsinki Final Act and the Charter of Paris for a New Europe, and relevant
international human rights instruments, and for the principle of the rule of law, underpins the
internal and international policies of both Parties and constitutes an essential element of this
Agreement.
The Parties reiterate their commitment to the principles of a free market economy, promoting
sustainable development and economic growth.
The implementation of this Agreement shall be based on the principles of dialogue, mutual trust and
respect, equal partnership, and mutual benefit and full respect for the principles and values
enshrined in the UN Charter.
                                              EU/KZ/en 8
 ---pagebreak---                                                 ARTICLE 2
                                          Aims of this Agreement
1.     This Agreement establishes an enhanced partnership and cooperation between the Parties
within the limits of their respective competences, based on common interest and on the deepening
of the relationship in all areas of its application.
2.     This cooperation is a process between the Parties that contributes to international and regional
peace and stability, and economic development and is structured around principles that the Parties
reaffirm also by their international commitments notably under the UN and the OSCE.
                                                ARTICLE 3
                        Cooperation in regional and international organisations
The Parties agree to cooperate and exchange views in the framework of regional and international
fora and organisations.
                                                EU/KZ/en 9
 ---pagebreak---                                                 TITLE II
                                      POLITICAL DIALOGUE;
             COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY
                                              ARTICLE 4
                                           Political dialogue
The Parties shall further develop and strengthen effective political dialogue in all areas of mutual
interest in order to promote international peace, stability and security, including in the Eurasian
continent, on the basis of international law, effective cooperation within multilateral institutions and
shared values.
The Parties shall cooperate with a view to strengthening the role of the UN and the OSCE, and to
improve the efficiency of the relevant international and regional organisations.
The Parties shall deepen cooperation and dialogue on issues of international security and crisis
management in order to respond to the current global and regional challenges and major threats.
                                             EU/KZ/en 10
 ---pagebreak--- The Parties undertake to strengthen cooperation on all subjects of common interest and in particular
the observance of international law, strengthening respect for democratic principles, the rule of law,
human rights and good governance. The Parties agree to work towards improving the conditions for
further regional cooperation, notably with regard to Central Asia and beyond.
                                             ARTICLE 5
                                    Democracy and the rule of law
The Parties agree to cooperate in the promotion and effective protection of human rights and the
rule of law, including through the relevant international human rights instruments.
Such cooperation shall be achieved through activities mutually agreed upon by the Parties,
including by strengthening respect for the rule of law, further enhancing the existing human rights
dialogue, further developing democratic institutions, promoting human rights awareness, and
enhancing cooperation within the human rights bodies of the UN and the OSCE.
                                             EU/KZ/en 11
 ---pagebreak---                                               ARTICLE 6
                                       Foreign and security policy
The Parties shall intensify their dialogue and cooperation in the area of foreign and security policy
and shall address in particular issues of conflict prevention and crisis management, regional
stability, non-proliferation, disarmament and arms control, nuclear security and export control of
arms and dual-use goods.
Cooperation shall be based on common values and mutual interests, aiming to increase
effectiveness and rapprochement of policy and make use of bilateral, regional and international
fora.
The Parties reaffirm their commitment to the principles of respect for territorial integrity,
inviolability of borders, sovereignty and independence, as established in the UN Charter and the
OSCE Helsinki Final Act, and their commitment to promote those principles in their bilateral and
multilateral relations.
                                             EU/KZ/en 12
 ---pagebreak---                                               ARTICLE 7
                                             Space security
The Parties shall promote the enhancement of safety, security and sustainability of all space-related
activities, and agree to work together at bilateral, regional and international levels with the aim of
safeguarding peaceful uses of outer space. Both Parties note the importance of preventing an arms
race in outer space.
                                              ARTICLE 8
                                Serious crimes of international concern
The Parties reaffirm that the most serious crimes of concern to the international community as a
whole should not go unpunished and that their prosecution should be ensured by taking measures at
the domestic or international level, including through the International Criminal Court.
Giving due regard to preserving the integrity of the Rome Statute, the Parties agree to conduct a
dialogue on and shall seek to take steps towards universal adherence to the Rome Statute in
accordance with their respective laws, including provision of assistance for capacity building.
                                              EU/KZ/en 13
 ---pagebreak---                                                 ARTICLE 9
                              Conflict prevention and crisis management
The Parties shall enhance cooperation on conflict prevention, the settlement of regional conflicts
and crisis management in order to create an environment of peace and stability.
                                               ARTICLE 10
                                            Regional stability
The Parties shall intensify their joint efforts to promote stability and security in Central Asia as well
as to improve the conditions for further regional cooperation, on the basis of the principles
established by the UN Charter, the OSCE Helsinki Final Act and other relevant multilateral
documents, to which both Parties adhere.
                                               EU/KZ/en 14
 ---pagebreak---                                              ARTICLE 11
                      Countering the proliferation of weapons of mass destruction
The Parties consider 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.
The Parties shall cooperate and contribute to countering the proliferation of WMD and their means
of delivery through full compliance with and implementation of their respective international treaty
obligations and other relevant international obligations in the field of disarmament and
non-proliferation. The Parties agree that this provision constitutes an essential element of this
Agreement.
Cooperation in this area is implemented, including by:
–     further developing export control systems in respect of military and dual-use goods and
      technologies;
–     establishing a regular political dialogue on the issues covered by this Article.
                                             EU/KZ/en 15
 ---pagebreak---                                                ARTICLE 12
                                      Small arms and light weapons
The Parties shall cooperate and ensure coordination, complementarity and synergy in their efforts to
fight against the illicit trade in small arms and light weapons, including their ammunition, at all
relevant levels, and agree to continue a regular political dialogue, including in the multilateral
framework.
This cooperation shall be implemented by the Parties in full compliance with the existing
international agreements and UN Security Council resolutions, as well as their commitments within
the framework of other international instruments applicable in this area to which the Parties adhere.
Both Parties are convinced in this regard of the value of the ATT.
                                               EU/KZ/en 16
 ---pagebreak---                                              ARTICLE 13
                                           Counter-terrorism
The Parties agree to work together at bilateral, regional and international levels to prevent and
combat terrorism in full accordance with the rule of law, international law, international human
rights standards, humanitarian law and relevant UN decisions, including the UN Global
Counter-Terrorism Strategy.
Cooperation between the Parties shall aim to:
(a)   implement, as appropriate, UN resolutions, the UN global counter-terrorism strategy, and
      their commitments under other international conventions and instruments on countering
      terrorism;
(b)   exchange information on planned and committed acts of terrorism, forms and methods of
      carrying these out, and terrorist groups that plan, commit or have committed a crime in the
      territory of another Party, in accordance with international law and domestic legislation;
                                             EU/KZ/en 17
 ---pagebreak--- (c) exchange experience in the prevention of all forms of terrorism, including public provocation
    on the internet to commit a terrorist offence, as well as experience with the means and
    methods of combating terrorism, experience in technical areas, and training, offered or paid
    by institutions, bodies and agencies of the European Union;
(d) intensify common efforts against terrorist financing and exchange views about processes of
    radicalisation and recruitment; and
(e) exchange best practices in the area of protection of human rights in the fight against terrorism.
                                           EU/KZ/en 18
 ---pagebreak---                                                TITLE III
                                      TRADE AND BUSINESS
                                             CHAPTER 1
                                         TRADE IN GOODS
                                             ARTICLE 14
                                    “Most favoured nation” treatment
1.    Each Party shall accord "most favoured nation" treatment to goods of the other Party in
accordance with Article I of the General Agreement on Tariffs and Trade 1994 (GATT 1994),
including its interpretative notes, which are incorporated into and made part of this Agreement,
mutatis mutandis.
2.    Paragraph 1 shall not apply in respect of preferential treatment accorded by either Party to
goods of another country in accordance with the GATT 1994.
                                             EU/KZ/en 19
 ---pagebreak---                                             ARTICLE 15
                                         National treatment
Each Party shall accord national treatment to goods of the other Party in accordance with Article III
of the GATT 1994, including its interpretative notes, which are incorporated into and made part of
this Agreement, mutatis mutandis.
                                            ARTICLE 16
                                  Import and export customs duties
Each Party shall apply import and export customs duties in accordance with its WTO tariff
commitments.
                                            EU/KZ/en 20
 ---pagebreak---                                               ARTICLE 17
                                      Import and export restrictions
Neither Party may institute or maintain any prohibition or restriction other than duties, taxes or
other charges, whether made effective through quotas, import or export licences or other measures,
on the importation of any good of the other Party or on the exportation or sale for export of any
good destined for the territory of the other Party, in accordance with Article XI of the GATT 1994
and its interpretative notes. To this end, Article XI of the GATT 1994 and its interpretative notes
are incorporated into and made part of this Agreement, mutatis mutandis.
                                              ARTICLE 18
                                     Temporary admission of goods
Each Party shall grant the other Party exemption from import charges and duties on goods admitted
temporarily, in the instances and according to the procedures stipulated by any international
convention on the temporary admission of goods binding upon it. This exemption shall be applied
pursuant to the legislation of each Party.
                                              EU/KZ/en 21
 ---pagebreak---                                              ARTICLE 19
                                                Transit
The Parties agree that the principle of freedom of transit is an essential condition of attaining the
objectives of this Agreement. In this connection, each Party shall provide for freedom of transit
through its territory of goods consigned from or destined for the customs territory of the other Party
in accordance with Article V of the GATT 1994 and its interpretative notes, which are incorporated
into and made part of this Agreement, mutatis mutandis.
                                             ARTICLE 20
                                          Safeguard measures
Nothing in this Agreement shall prejudice or affect the rights and obligations of each Party under
Article XIX of the GATT 1994 and the WTO Agreement on Safeguards.
                                             EU/KZ/en 22
 ---pagebreak---                                             ARTICLE 21
                                    Special agriculture safeguard
Nothing in this Agreement shall prejudice or affect the rights and obligations of each Party under
Article 5 of the WTO Agreement on Agriculture on special safeguard provisions.
                                            ARTICLE 22
                            Anti-dumping and countervailing measures
1.    Nothing in this Agreement shall prejudice or affect the rights and obligations of each Party
under Article VI of the GATT 1994, the WTO Agreement on Implementation of Article VI of the
GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures (SCM
Agreement).
2.    Before final determination is made, the Parties shall ensure the disclosure of all essential facts
under consideration which form the basis for the decision to apply measures, without prejudice to
Article 6.5 of the WTO Agreement on Implementation of Article VI of the GATT 1994 and
Article 12.4 of the SCM Agreement. Disclosures shall allow interested parties sufficient time to
make their comments.
                                            EU/KZ/en 23
 ---pagebreak--- 3.    Provided it does not unnecessarily delay the conduct of the investigation, each interested party
shall be granted the possibility to be heard in order to express their views during anti-dumping or
countervailing investigations.
4.    The provisions of this Article shall not be subject to the Dispute Settlement provisions of this
Agreement.
                                              ARTICLE 23
                                                 Pricing
Each Party shall ensure that undertakings or entities to which it grants special or exclusive rights or
which it controls, and which sell goods on the domestic market and which also export the same
product, maintain separate accounts so that the following shall be clearly ascertained:
(a)   the costs and revenues associated with domestic and international activities; and
(b)   full details of the methods by which costs and revenues are assigned or allocated to domestic
      and international activities.
                                              EU/KZ/en 24
 ---pagebreak--- These separate accounts should be based on accounting principles of causality, objectivity,
transparency and consistency, according to internationally recognised accounting standards and be
based on audited data.
                                              ARTICLE 24
                                               Exceptions
1.    The Parties affirm that their existing rights and obligations under Article XX of the
GATT 1994 and its interpretative notes shall apply to trade in goods covered by this Agreement,
mutatis mutandis. To this end, Article XX of the GATT 1994 and its interpretative notes are
incorporated into and made part of this Agreement, mutatis mutandis.
                                              EU/KZ/en 25
 ---pagebreak--- 2.     The Parties understand that before taking any measures provided for in subparagraphs (i) and
(j) of Article XX of the GATT 1994, the Party intending to take the measures shall supply the other
Party with all relevant information, with a view to seeking a solution acceptable to the Parties. The
Parties may agree on any means needed to put an end to the difficulties. If no agreement is reached
within 30 days of supplying such information, the Party may apply measures under this Article on
the good concerned. Where exceptional and critical circumstances requiring immediate action make
prior information or examination impossible, the Party intending to take the measures may apply
forthwith the precautionary measures necessary to deal with the situation and shall inform the other
Party immediately thereof.
3. The Republic of Kazakhstan may maintain certain measures inconsistent with Articles 14, 15 and
17 of this Chapter identified in the Protocol on the Accession of the Republic of Kazakhstan to the
WTO until the expiration of the transition periods provided for those measures in that Protocol.
                                             EU/KZ/en 26
 ---pagebreak---                                              CHAPTER 2
                                              CUSTOMS
                                             ARTICLE 25
                                          Customs cooperation
1.     The Parties shall strengthen cooperation in the area of customs in order to ensure a transparent
trade environment, facilitate trade, enhance supply chain security, promote safety of consumers,
stem the flows of goods infringing intellectual property rights and fight smuggling and fraud.
2.     In order to implement these objectives and within the limits of available resources, the Parties
shall cooperate inter alia to:
(a)    improve customs law, harmonise and simplify customs procedures, in accordance with
       international conventions and standards applicable in the field of customs and trade
       facilitation, including those developed by the European Union (including Customs
       Blueprints), the World Trade Organisation and the World Customs Organisation (in particular
       the Revised Kyoto Convention);
                                             EU/KZ/en 27
 ---pagebreak--- (b) establish modern customs systems, including modern customs clearance technologies,
    provisions for authorised economic operators, automated risk-based analysis and controls,
    simplified procedures for the release of goods, post-clearance controls, transparent customs
    valuation, provisions for customs-to-business partnerships;
(c) encourage the highest standards of integrity in the area of customs, in particular at the border,
    through the application of measures reflecting the principles set out in the World Customs
    Organisation’s Arusha Declaration;
(d) exchange best practice, and provide training and technical support for planning and capacity
    building and for ensuring the highest standards of integrity;
(e) exchange, where appropriate, relevant information and data whilst respecting the rules on the
    confidentiality of sensitive data and on personal data protection of the Parties;
(f) engage in coordinated customs actions between the customs authorities of the Parties;
(g) establish, where relevant and appropriate, mutual recognition of authorised economic
    operators' programmes and customs controls including equivalent trade facilitation measures;
                                           EU/KZ/en 28
 ---pagebreak--- (h)   pursue, where relevant and appropriate, possibilities for interconnectivity of the respective
      customs transit systems.
3.    The Cooperation Council shall establish a Sub-committee on Customs Cooperation.
4.    A regular dialogue will take place on the issues covered by this Chapter. The Cooperation
Committee may establish rules for the conduct of such dialogue.
                                            ARTICLE 26
                                  Mutual administrative assistance
Without prejudice to other forms of cooperation envisaged in this Agreement, in particular in
Article 25 (Customs Cooperation), the Parties shall provide each other with mutual administrative
assistance in customs matters in accordance with the provisions of the Protocol to this Agreement
on Mutual Administrative Assistance in Customs Matters.
                                            EU/KZ/en 29
 ---pagebreak---                                               ARTICLE 27
                                            Customs valuation
The Agreement on the Implementation of Article VII of the GATT 1994 shall govern the customs
valuation of goods in the trade between the Parties. Its provisions are hereby incorporated into and
made part of this Agreement, mutatis mutandis.
                                              CHAPTER 3
                                TECHNICAL BARRIERS TO TRADE
                                              ARTICLE 28
                                Technical Barriers to Trade Agreement
The Parties affirm that in their relations they will respect the rights and obligations of the WTO
Agreement on Technical Barriers to Trade (TBT Agreement) which is incorporated into and made
part of this Agreement, mutatis mutandis.
                                              EU/KZ/en 30
 ---pagebreak---                                              ARTICLE 29
                           Technical regulation, standardisation, metrology,
                               accreditation and conformity assessment
1.    The Parties agree:
(a)   to reduce the differences which exist between them in the fields of technical regulations, legal
      metrology, standardisation, market surveillance, accreditation and conformity assessment,
      including by encouraging the use of internationally agreed instruments in those fields;
(b)   to promote the use of accreditation in accordance with international rules in support of
      conformity assessment bodies and their activities; and
(c)   to promote the participation and where possible the membership of the Republic of
      Kazakhstan and its relevant bodies in the European organisations the activity of which relates
      to standards, conformity assessment, metrology and related functions.
2.    The Parties aim to set up and maintain a process through which gradual alignment of their
technical regulations, standards and conformity assessment procedures will be achieved.
                                             EU/KZ/en 31
 ---pagebreak--- 3.     For areas in which alignment has been achieved, the Parties may consider the negotiation of
agreements of conformity assessment and acceptance of industrial products.
                                             ARTICLE 30
                                             Transparency
1.     Without prejudice to the provisions of Chapter 13 (Transparency) of this Title, each Party
shall ensure that its procedures for the development of technical regulations and conformity
assessment procedures allow for public consultation of interested parties at an early appropriate
stage when comments resulting from the public consultation can still be introduced and taken into
account, except where this is not possible because of an emergency or threat thereof related to
safety, health, environmental protection or national security.
                                             EU/KZ/en 32
 ---pagebreak--- 2.    In accordance with Article 2.9 of the TBT Agreement, each Party shall allow a period for
comments at an early appropriate stage following the notification of proposed technical regulations
or conformity assessment procedures. Where a consultation process on proposed drafts of technical
regulations or conformity assessment procedures is open to the public, each Party shall permit the
other Party, or natural or legal persons located in the territory of the other Party, to participate on
terms no less favourable than those accorded to natural or legal persons located in the territory of
that Party.
3.    Each Party shall ensure that its adopted technical regulations and conformity assessment
procedures are publicly available.
                                             EU/KZ/en 33
 ---pagebreak---                                               CHAPTER 4
                         SANITARY AND PHYTOSANITARY MATTERS
                                              ARTICLE 31
                                                Objective
The objective of this Chapter is to set out principles applicable to sanitary and phytosanitary (SPS)
measures and animal welfare issues in trade between the Parties. These principles shall be applied
by the Parties in a manner to facilitate trade further, while preserving each Party's level of
protection of human, animal or plant life or health.
                                              ARTICLE 32
                                                Principles
1.    The Parties shall ensure that SPS measures are developed and applied on the basis of the
principles of proportionality, transparency, non-discrimination and scientific justification.
                                              EU/KZ/en 34
 ---pagebreak--- 2.    A Party shall ensure that its SPS measures do not arbitrarily or unjustifiably discriminate
between its own territory and the territory of the other Party to the extent that identical or similar
conditions prevail. SPS measures shall not be applied in a manner which would constitute a
disguised restriction on trade.
3.    The Parties shall ensure that SPS measures, procedures or controls are implemented and
requests of information are addressed by the relevant authorities of each Party without undue delay,
and in a manner no less favourable to imported products than to like domestic products.
                                             EU/KZ/en 35
 ---pagebreak---                                              ARTICLE 33
                                         Import Requirements
1.     The import requirements of the importing Party shall be applicable to the entire territory of
the exporting Party, subject to the provisions of Article 35. The import requirements set out in
certificates are based on Codex Alimentarius Commission (Codex), the World Organisation of
Animal Health (OIE) and the International Plant Protection Convention (IPPC) principles, unless
the import requirements are supported by a science-based risk assessment conducted in accordance
with the applicable international rules as provided for in the WTO Agreement on the Application of
Sanitary and Phytosanitary Measures (SPS Agreement).
2.     The requirements set out in import permits shall not contain more stringent sanitary and
veterinary conditions than the conditions laid down in the certificates under paragraph 1.
                                             EU/KZ/en 36
 ---pagebreak---                                              ARTICLE 34
                                              Equivalence
Upon request by the exporting Party and subject to a satisfactory evaluation by the importing Party,
equivalence shall be recognised by the Parties, following the relevant international procedures, in
relation to an individual measure and/or groups of measures and/or systems applicable in general or
to a sector or part of a sector.
                                             ARTICLE 35
                               Measures linked to animal and plant health
1.     The Parties shall recognise the concept of pest- or disease-free areas and areas of low pest or
disease prevalence in accordance with the SPS Agreement and the relevant Codex, OIE and IPPC
standards, guidelines or recommendations.
2.     When determining pest- or disease-free areas and areas of low pest or disease prevalence, the
Parties shall consider factors such as geographical location, ecosystems, epidemiological
surveillance, and the effectiveness of sanitary or phytosanitary controls in such areas.
                                             EU/KZ/en 37
 ---pagebreak---                                               ARTICLE 36
                                            Trade facilitation
1.    The Parties shall develop and apply trade facilitation tools on the basis of the recognition by
the importing Party of the inspection and certification systems of the exporting Party.
2.    Such trade facilitation tools aim at avoiding the inspection by the importing Party of each
consignment or each exporting establishment in the territory of the exporting Party according to the
existing legislation. They may include an approval of an exporting establishment and the
establishment of lists of the exporting establishments in the territory of the exporting Party based on
guaranties given by the exporting Party.
                                              ARTICLE 37
                                         Inspections and Audits
Inspections and audits carried out by the importing Party in the territory of the exporting Party to
evaluate the latter’s inspection and certification systems are performed in accordance with the
relevant international standards, guidelines and recommendations. The costs of inspections and
audits shall be borne by the Party carrying out the audits and the inspections.
                                              EU/KZ/en 38
 ---pagebreak---                                              ARTICLE 38
                               Exchange of information and cooperation
1.    The Parties shall discuss and exchange information on existing SPS and animal welfare
measures and on their development and implementation. Such discussions and exchange of
information shall, as appropriate, consider the SPS Agreement and the standards, guidelines or
recommendations of the IPPC, the OIE, and the Codex.
2.    The Parties agree to cooperate on animal and plant welfare through the exchange of
information, expertise and experience with the objective to build up capacity in this field. Such
cooperation shall be specific to the needs of a Party and be conducted with the aim to assist each
Party in complying with the other Party’s legal framework.
3.    The Parties shall establish a timely dialogue on SPS issues upon request by either Party to
consider matters relating to SPS and other urgent issues covered by this Chapter. The Cooperation
Committee may adopt rules for the conduct of such dialogues.
4.    The Parties shall designate and update regularly contact points for communication on matters
covered by this Chapter.
                                             EU/KZ/en 39
 ---pagebreak---                                              CHAPTER 5
                               SERVICES AND ESTABLISHMENT
                                             SECTION 1
                                      GENERAL PROVISIONS
                                             ARTICLE 39
                                    Objective, scope and coverage
1.    The Parties, reaffirming their respective commitments under the WTO Agreement, hereby lay
down the necessary arrangements in view of improving reciprocal conditions for trade in services
and establishment.
2.    Nothing in this Chapter shall be construed to impose any obligation with respect to
government procurement subject to the provisions of Chapter 8 of this Title.
3.    The provisions of this Chapter shall not apply to subsidies granted by the Parties.
                                             EU/KZ/en 40
 ---pagebreak--- 4.     Consistent with the provisions of this Agreement, each Party retains the right to regulate and
to introduce new regulations to meet legitimate policy objectives.
5.     This Chapter shall not apply to measures affecting natural persons seeking access to the
employment market of the European Union or the Republic of Kazakhstan, nor shall it apply to
measures regarding citizenship, residence or employment on a permanent basis.
6.     Nothing in this Chapter shall prevent the Parties from applying measures to regulate the entry
of natural persons into, or their temporary stay in, their territory, including those measures
necessary to protect the integrity of, and to ensure the orderly movement of natural persons across
their borders, provided that such measures are not applied in such a manner as to nullify or impair
the benefits accruing to any Party under the terms of this Chapter1.
7.     This Chapter does not apply to measures adopted or maintained by the Parties affecting trade
in services and establishment in the audio-visual sector.
1
       The sole fact of requiring a visa for natural persons of certain countries and not for those of
       others shall not be regarded as nullifying or impairing benefits under this Agreement.
                                              EU/KZ/en 41
 ---pagebreak---                                              ARTICLE 40
                                              Definitions
For the purposes of this Chapter:
(a)   “measure” means any measure by a Party, whether in the form of a law, regulation, rule,
      procedure, decision, administrative action or any other form;
(b)   “measures adopted or maintained by a Party” mean measures taken by:
      (i)   central, regional or local governments and authorities of a Party; and
      (ii)  non-governmental bodies of a Party in the exercise of powers delegated by central,
            regional or local governments or authorities of a Party;
(c)   “natural person of the European Union” or “natural person of the Republic of Kazakhstan”
      means a national of one of the Member States of the European Union or of the Republic of
      Kazakhstan according to their respective legislation;
                                             EU/KZ/en 42
 ---pagebreak--- (d) “juridical person” means any legal entity duly constituted or otherwise organised under
    applicable law, whether for profit or otherwise, and whether privately-owned or
    governmentally-owned, including any corporation, trust, partnership, joint venture, sole
    proprietorship or association;
(e) “juridical person of a Party” means a juridical person of the European Union or the Republic
    of Kazakhstan set up in accordance with the law of a Member State of the European Union or
    of the Republic of Kazakhstan respectively, and having its registered office, its central
    administration, or its principal place of business in the territory to which the Treaty on the
    Functioning of the European Union applies or in the territory of the Republic of Kazakhstan
    respectively;
    Should the juridical person set up in accordance with the law of a Member State of the
    European Union or of the Republic of Kazakhstan respectively, have only its registered office
    or central administration in the territory to which the Treaty on the Functioning of the
    European Union applies or in the territory of the Republic of Kazakhstan respectively, it shall
    not be considered as a juridical person of the European Union or of the Republic of
    Kazakhstan respectively, unless it engages in substantive business operations in the territory
    to which the Treaty on the Functioning of the European Union applies or in the territory of the
    Republic of Kazakhstan, respectively;
                                            EU/KZ/en 43
 ---pagebreak--- (f) Notwithstanding paragraph (e), with regard to international maritime transport, including
    intermodal operations involving a sea leg, shipping companies established outside the
    European Union or the Republic of Kazakhstan and controlled by nationals of a Member State
    of the European Union or of the Republic of Kazakhstan respectively, shall also be
    beneficiaries of the provisions of this Chapter, if their vessels are registered in accordance
    with their respective legislation in that Member State of the European Union or in the
    Republic of Kazakhstan and fly the flag of a Member State of the European Union or of the
    Republic of Kazakhstan;
(g) an “economic integration agreement” means an agreement substantially liberalising trade in
    services including establishment in accordance with the General Agreement on Trade in
    Services (GATS) in particular Articles V and V bis of the GATS, and/or containing
    provisions substantially liberalising establishment in other economic activities meeting,
    mutatis mutandis, the criteria of Articles V and V bis of the GATS in respect of such
    activities;
(h) “economic activities” shall include activities of an economic nature except economic
    activities performed in the exercise of governmental authority;
                                            EU/KZ/en 44
 ---pagebreak--- (i) “economic activities performed in the exercise of governmental authority” mean activities
    carried out neither on a commercial basis nor in competition with one or more economic
    operators;
(j) “operations” means the pursuit and the maintenance of economic activities;
(k) “subsidiary” of a juridical person means a juridical person which is effectively controlled by
    another juridical person of that Party;1
(l) “branch” of a juridical person means 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 such third parties,
    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;
1
    A juridical person is controlled by another juridical person if the latter has the power to
    appoint a majority of its directors or otherwise to legally direct its actions.
                                            EU/KZ/en 45
 ---pagebreak--- (m) “establishment” means any type of business or commercial presence, including
    (i)   the constitution, acquisition or maintenance of a juridical person;1 or
    (ii)  the creation or maintenance of a branch or representative office2 within the territory of a
          Party for the purpose of performing an economic activity;
(n) “investor” of a Party means a juridical or natural person that seeks to perform or performs an
    economic activity through setting up an establishment;
(o) “services” includes any service3 in any sector except services supplied in the exercise of
    governmental authority;
(p) “service supplied in the exercise of governmental authority” means any service which is
    supplied neither on a commercial basis, nor in competition with one or more service suppliers;
(q) “services supplier” means any natural or juridical person that supplies a service;
1
    The terms “constitution” and “acquisition” of a juridical person shall be understood as
    including capital participation in a juridical person with a view to establishing or maintaining
    lasting economic links.
2
    Representative offices of a juridical person of the other Party are not allowed to carry out an
    economic activity on a commercial basis in the territory of the Republic of Kazakhstan. The
    European Union reserves the right to reciprocate in this regard.
3
    For greater clarity, for the purpose of this chapter, services shall be deemed to be those listed
    in the WTO document MTN.GNS/W/120 in its up to date version.
                                            EU/KZ/en 46
 ---pagebreak--- (r)    “supply of a service” includes the production, distribution, marketing, sale and delivery of a
       service.
                                             SECTION 2
                ESTABLISHMENT AND CROSS-BORDER SUPPLY OF SERVICES
                                           SUB-SECTION 1
                                   ALL ECONOMIC ACTIVITIES
                                             ARTICLE 41
                                          Coverage and scope
1.     This Sub-Section applies to measures by the Parties affecting establishment in all economic
activities and cross-border supply of services.
                                             EU/KZ/en 47
 ---pagebreak--- 2.    The Parties confirm their respective rights and obligations arising from their commitments
under the GATS.
For greater certainty, in regard to services, the Parties’ respective GATS schedules of specific
commitments,1 including the reservations and lists of MFN exemptions shall be incorporated into
and made part of this agreement and shall apply.
                                               ARTICLE 42
                       Progressive improvement of conditions for establishment
1.    The Cooperation Committee meeting in trade configuration shall make recommendations to
the Parties for the further liberalisation of establishment in the context of the present Agreement.
2.    The Parties shall endeavour to avoid the adoption of any measure which renders the
conditions for establishment more restrictive than the situation existing on the day preceding the
date of signature of this Agreement.
1
      For the Republic of Kazakhstan the reference includes the Chapter on Services of the Protocol
      on the Accession of the Republic of Kazakhstan to the WTO
                                               EU/KZ/en 48
 ---pagebreak---                                                ARTICLE 43
               Progressive improvement of conditions for cross-border trade in services
1.    The Parties fully recognise the importance of liberalising the cross-border supply of services
between the Parties.
2.    The Cooperation Committee meeting in trade configuration shall make recommendations to
the Parties for the further liberalisation of cross-border supply of services in the context of the
present Agreement.
                                               EU/KZ/en 49
 ---pagebreak---                                             SUB-SECTION 2
                        ECONOMIC ACTIVITIES OTHER THAN SERVICES
                                              ARTICLE 44
                                           Coverage and scope
This Sub-Section applies to measures by the Parties affecting establishment in all economic
activities other than services.
                                              ARTICLE 45
                                     Most favoured nation treatment
1.     Each Party shall grant to juridical persons of the other Party treatment no less favourable than
that it accords to juridical persons of any third country with regard to their establishment.
                                              EU/KZ/en 50
 ---pagebreak--- 2.     Each Party shall grant to juridical persons of the other Party treatment no less favourable than
that it accords to juridical persons of any third country with regard to the operation of juridical
persons of the other Party established in the former Party's territory.
3.     Any advantage, favour, privilege or immunity granted by the Republic of Kazakhstan to
juridical persons of a WTO member established in the form of juridical persons of the Republic of
Kazakhstan in relation with local content requirements shall be accorded immediately and
unconditionally to juridical persons of the European Union established in the form of juridical
persons of the Republic of Kazakhstan.
4.     The treatment granted in accordance with the provisions of paragraphs 1 and 2 shall not apply
to treatment accorded by a Party pursuant to economic integration agreements, free trade
agreements, agreement for the avoidance of double taxation and agreements primarily governing
taxation matters nor shall it be construed to extend to investment protection, other than the
treatment deriving from Article 46, including investor-to-state dispute settlement procedures.
                                              EU/KZ/en 51
 ---pagebreak--- 5.    Notwithstanding the preceding paragraph, as regards strategic resources and objects, the
Republic of Kazakhstan shall in no case accord to subsidiaries of juridical persons of the European
Union established in the Republic of Kazakhstan in the form of a juridical person, less favourable
treatment than that accorded after the date on which this Title starts applying to subsidiaries of
juridical persons of any third country established in the Republic of Kazakhstan in the form of a
juridical person.
                                              ARTICLE 46
                                           National treatment
Subject to the Parties’ reservations set out in Annex I,
1.    Each Party shall grant to subsidiaries of juridical persons of the other Party established in the
former Party’s territory treatment no less favourable than that granted to that Party’s own juridical
persons with respect to their operations.
                                              EU/KZ/en 52
 ---pagebreak--- 2.    The Republic of Kazakhstan shall grant to European Union juridical persons and branches
treatment no less favourable than that accorded to juridical persons of the Republic of Kazakhstan
and branches, respectively, in respect of their establishment and operations for economic activities
other than services. National treatment granted by the Republic of Kazakhstan is without prejudice
to the terms of the Protocol on the Accession of the Republic of Kazakhstan to the WTO.
                                                 SECTION 3
                         TEMPORARY PRESENCE OF NATURAL PERSONS
                                       FOR BUSINESS PURPOSES
                                                ARTICLE 47
                                          Coverage and definitions
1.    This Section applies to measures by the Parties concerning the entry into and temporary stay
in their territories of business visitors for establishment purposes, intra-corporate transferees, and
contractual services suppliers in accordance with paragraphs 5 and 6 of Article 39.
                                                EU/KZ/en 53
 ---pagebreak--- 2.  For the purposes of this Section:
(a) “business visitors” for establishment purposes means natural persons, employed in a senior
    position by a juridical person of a Party, who are responsible for setting up an establishment
    in the territory of the other Party. They do not offer or provide services or engage in any other
    economic activities than required for establishment purposes. They do not receive
    remuneration from a source located within the host Party;
(b) “intra-corporate transferees” means natural persons who have been employed by a juridical
    person of a Party or have been partners in it1 for at least one year and who are temporarily
    transferred to an establishment that may be a subsidiary, branch or head company of the
    juridical person of a Party in the territory of the other Party.
    The natural person concerned must belong to one of the categories as defined in the Parties’
    respective GATS schedules, which for the purpose of this section shall apply to all economic
    activities;
1
    For greater clarity, the partners shall be part of the same juridical person.
                                             EU/KZ/en 54
 ---pagebreak--- (c)   “contractual service supplier” means a natural person employed by a juridical person of one
      Party which itself is not an agency for placement and supply services of personnel nor acting
      through such agencies and which has no establishment in the territory of the other Party and
      which has concluded a bona fide contract1 to supply services with a final consumer in the
      latter Party, requiring the presence on a temporary basis of its employees in that Party, in
      order to fulfil the contract to provide services;
(d)   “qualifications” means diplomas, certificates and other evidence (of formal qualification)
      issued by an authority, designated pursuant to legislative, regulatory or administrative
      provisions, certifying successful completion of professional training.
                                              ARTICLE 48
                            Intra-corporate transferees and business visitors
1.    For services, the Parties reaffirm their respective obligations arising from their commitments
under the GATS as regards the entry and temporary stay of intra-corporate transferees or business
visitors. The reservations listed therein apply2.
1
      The service contract shall comply with the laws, regulations and legal requirements of the
      Party where the contract is executed.
2
      For greater clarity, the reservations include also the reservations in the definitions of the
      categories of intra-corporate transferees and business visitors.
                                              EU/KZ/en 55
 ---pagebreak--- 2.    For economic activities other than services and subject to the reservations set out in Annex II,
each Party:
(a)   shall allow investors engaged in production of goods on the territory of the other Party to
      transfer intra-corporate transferees, as defined in Article 47(2) (b) and business visitors for
      establishment purposes, as defined in Article 47(2) (a). The entry and temporary stay shall be
      permitted for a period of up to three years for intra-corporate transferees, and 90 days in
      any 12-month period for business visitors for establishment purposes;
(b)   shall not maintain or adopt measures defined as limitations on the total number of natural
      persons that an investor may transfer as intra-corporate transferees or business visitors in the
      form of numerical quotas or a requirement of an economic needs test and as discriminatory
      limitations.
                                              EU/KZ/en 56
 ---pagebreak---                                             ARTICLE 49
                                     Contractual service suppliers
1.   The Republic of Kazakhstan shall allow the supply of services in its territory by juridical
persons of the European Union through the presence of natural persons who are citizens of the
Member States of the European Union, subject to the following conditions:
(a)  The natural persons entering the Republic of Kazakhstan must possess (i) a university degree
     or an advanced technical qualification demonstrating knowledge of an equivalent level and
     (ii) professional qualifications where this is required to exercise an activity in the sector
     concerned pursuant to the law, regulations or requirements of the Republic of Kazakhstan.
(b)  The natural persons shall not receive remuneration for the provision of services other than the
     remuneration paid by the juridical person of the European Union, during their stay in the
     Republic of Kazakhstan.
                                            EU/KZ/en 57
 ---pagebreak--- (c) The natural persons entering the Republic of Kazakhstan must have been employed by the
    juridical person of the European Union for at least the year preceding the date of submission
    of an application for entry into the Republic of Kazakhstan. In addition, the natural persons
    must possess, at the date of submission of an application for entry into the Republic of
    Kazakhstan, at least five years professional experience in the sector of activity which is the
    subject of the contract.
(d) The Republic of Kazakhstan may apply the economic needs test and an annual quota for work
    permits reserved for European Union contractual service suppliers gaining access to the
    services market of the Republic of Kazakhstan. The total number of European Union
    contractual service suppliers entering the Republic of Kazakhstan’s services market shall not
    exceed 800 persons per year.
                                           EU/KZ/en 58
 ---pagebreak--- (e) Upon expiration of a five-year period upon accession of the Republic of Kazakhstan to the
    WTO, the economic needs test shall not be applied1. During the period when the Republic of
    Kazakhstan applies the economic needs test2, the entry and temporary stay of natural persons
    within the Republic of Kazakhstan pursuant to the fulfillment of the contract shall be for a
    cumulative period of not more than four months in any 12-month period or for the duration of
    the contract, whichever is less. After the expiration of a five-year period upon accession to the
    WTO, the entry and temporary stay shall be for a cumulative period of not more than six
    months in any 12-month period or for the duration of the contract, whichever is less. The
    juridical persons of the European Union shall be responsible for timely departure of their
    employees from the territory of the Republic of Kazakhstan.
1
    All other requirements, laws and regulations regarding entry, stay and work shall continue to
    apply.
2
    For greater clarity, for the Republic of Kazakhstan, “economic needs test” means procedures
    undertaken by a juridical person of the Republic of Kazakhstan when attracting contractual
    service suppliers, whereby account must be taken of the admission of a foreign labour force
    based on the national labour market conditions. These are when after the publication of a
    vacancy announcement in the mass media and after a search for a competent person in the
    database of the competent authority, none of the applicants meets the requirements described
    in the vacancy. This should not take longer than one month. Only after this procedure the
    juridical person can finalise the procedure for hiring contractual service suppliers.
                                           EU/KZ/en 59
 ---pagebreak--- 2.     The Republic of Kazakhstan shall allow the supply of services into its territory by juridical
persons of the European Union through the presence of natural persons if the service contract
fulfills the following conditions:
(a)    The contract to provide services:
       (i)    has been concluded directly between the juridical person of the European Union and the
              final consumer, which is a juridical person of the Republic of Kazakhstan; and
       (ii)   requires the temporary presence on the territory of the Republic of Kazakhstan of
              employees of that juridical person to provide the service; and
       (iii) complies with the laws, regulations and requirements of the Republic of Kazakhstan.
(b)    The contract to provide services has to be obtained in one of the following sectors of activity
       which are included and defined in the Republic of Kazakhstan’s GATS schedule of
       commitments:
       1.     Legal services
       2.     Accounting and bookkeeping services
       3.     Taxation services
                                              EU/KZ/en 60
 ---pagebreak---     4.      Architectural services
    5.      Engineering services
    6.      Integrated Engineering services
    7.      Urban planning and landscape architecture services
    8.      Computer and related services
    9.      Advertising services
    10.     Market research services
    11.     Management consulting services
    12.     Services related to management consulting
    13.     Technical testing and analysis services
    14.     Advisory and consulting services incidental to mining
    15.     Related scientific and technical consulting services
    16.     Translation and interpretation services
    17.     Maintenance and repair of equipment, including transportation equipment, in the
            context of an after-sales services contract
    18.     Environmental services
(c) Access accorded under the provisions of this paragraph relates only to the service activity
    which is the subject of the contract; it does not confer entitlement to exercise the professional
    title in the territory of the Republic of Kazakhstan.
                                             EU/KZ/en 61
 ---pagebreak--- 3.     The European Union reaffirms its respective obligations arising from the commitments under
the GATS as regards the entry and temporary stay of contractual service suppliers. The reservations
listed therein apply.1
                                              ARTICLE 50
                                    “Most favoured nation” treatment
1.     Treatment accorded by the European Union to contractual service suppliers of the Republic of
Kazakhstan shall be no less favourable than that accorded to contractual service suppliers of any
third country.
2.     Treatment granted under other agreements concluded by the European Union with a third
country which have been notified under Article V of the GATS or which benefit from the coverage
of the European Union GATS list of “most favoured nation” exemptions, shall be excluded from
this provision. Treatment deriving from the harmonisation of regulations based on agreements
concluded by the European Union providing for mutual recognition in accordance with Article VII
of the GATS shall also be excluded from this provision.
1
       For greater clarity, reservations include also the reservations in the definitions of the
       categories.
                                              EU/KZ/en 62
 ---pagebreak--- 3.    In case the Republic of Kazakhstan grants more favorable treatment than that stipulated in this
Agreement to contractual service suppliers of any other WTO member, except to countries of the
Commonwealth of Independent States (CIS) and countries which are parties to the economic
integration agreements with the Republic of Kazakhstan, this treatment shall be applied to
contractual service suppliers of the European Union. Treatment deriving from the harmonization of
regulations based on agreements concluded by the Republic of Kazakhstan providing for mutual
recognition in accordance with Article VII of the GATS shall also be excluded from this provision.
                                               ARTICLE 51
                    Progressive improvement of conditions for temporary presence
                                 of natural persons for business purposes
The Cooperation Committee meeting in trade configuration shall make recommendations to the
Parties for the further liberalisation of the temporary presence of natural persons for business
purposes.
                                                EU/KZ/en 63
 ---pagebreak---                                              SECTION 4
                                    DOMESTIC REGULATION
                                             ARTICLE 52
                                          Scope and coverage
1.   The disciplines set out in Article 53 shall apply to measures of the Parties relating to licensing
and qualification procedures that affect:
(a)  cross-border supply of services;
(b)  establishment;
(c)  the supply of a service through the presence of a natural person in the territory of the other
     Party in accordance with Section 3 of this Chapter.
                                             EU/KZ/en 64
 ---pagebreak--- 2.     The disciplines set out in Article 53 shall apply to all economic activities falling under the
scope of this Chapter. For services, they shall apply to the extent of the relevant Party’s specific
commitments under the GATS1. The disciplines do not apply to measures to the extent that they
constitute limitations subject to scheduling under Article XVI or XVII of the GATS.
                                              ARTICLE 53
                                       Licensing and qualification
1.     Each Party shall ensure that licensing and qualification procedures for the purpose of
obtaining an authorisation to supply a service or to establish are reasonable, clear and relevant to the
underlying policy objectives, taking into account the nature of the requirements to be met and the
criteria to be assessed, and do not in themselves constitute a restriction on the supply of services or
the establishment.
2.     Where specific time periods for applications exist, an applicant shall be allowed a reasonable
period for the submission of an application. The competent authority shall initiate the processing of
an application without undue delay. Where possible, applications should be accepted in electronic
format under the same conditions of authenticity as paper submissions.
1
       For the Republic of Kazakhstan the reference includes the Section on Services of the Protocol
       on the Accession of the Republic of Kazakhstan to the WTO.
                                              EU/KZ/en 65
 ---pagebreak--- 3.    Authenticated copies should be accepted, where possible, in place of original documents.
4.    Each Party shall ensure that the processing of an application, including reaching a final
decision is completed within a reasonable period specified in its legislation or, in any event without
undue delay. Each Party shall endeavour to establish the normal timeframe for the processing of an
application. Each Party shall ensure that a licence or an authorisation, once granted, enters into
effect without undue delay in accordance with the terms and conditions specified therein.
5.    Each Party shall ensure that licensing fees1 are reasonable in terms of the costs incurred by the
competent authority, and do not in themselves restrict the supply of the service or the establishment.
6.    Where the competent authority considers that an application is incomplete or determines that
it needs additional information, it shall, within a reasonable period of time:
(a)   inform the applicant;
(b)   to the extent practicable identify the information required; and
(c)   to the extent practicable provide the opportunity to correct deficiencies.
1
      Licensing fees do not include fees for the use of natural resources, payments for auction,
      tendering or other non-discriminatory means of awarding concessions, or mandated
      contributions to universal service provision.
                                              EU/KZ/en 66
 ---pagebreak--- 7.    If the competent authority rejects an application, it shall inform the applicant without undue
delay, and to the extent practicable, in writing. The competent authority should inform the
applicant, upon request, of the reasons for rejection of the application and where possible, any
deficiencies that have been identified. It should inform the applicant of the procedures for appeal
against the decision in accordance with the relevant legislation. The competent authority should
permit an applicant to submit a new application in accordance with the relevant authority’s
established procedures, except where the relevant authority limits the number of licences or
qualification determinations.
8.    Each Party shall ensure that the procedures used by, and the decisions of, the competent
authority in the licensing or authorisation process are impartial with respect to all applicants. The
competent authority should reach its decision in an independent manner and not be accountable to
any services supplier or investor for which the licence or authorisation is required.
                                              EU/KZ/en 67
 ---pagebreak---                                                SECTION 5
                                  SECTOR SPECIFIC PROVISIONS
                                              ARTICLE 54
                                    International maritime transport
1.     This Section sets out the principles for the liberalisation of international maritime transport
services. The provisions below are without prejudice to the rights and obligations deriving from
each Party’s GATS commitments.
2.     For the purposes of this section, “international maritime transport” includes door to door and
multi-modal transport operations, which is the carriage of goods using more than one mode of
transport, involving a sea leg, under a single transport document, and to this effect including the
right for international maritime transport suppliers to directly contract with providers of other
modes of transport.
                                              EU/KZ/en 68
 ---pagebreak--- 3.    With respect to activities, as indicated in paragraph 4, undertaken by shipping agencies for the
provision of services to international maritime transport, each Party shall permit to juridical persons
of the other Party to establish subsidiaries or branches in its territory, under conditions of
establishment and operation no less favourable than those accorded to its own subsidiaries or
branches or to subsidiaries or branches of any third country, whichever are the better.
This paragraph does not apply to the establishment for the purpose of operating a fleet under the
national flag of the Republic of Kazakhstan or one of the Member States of the European Union.
4.    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 agreements;
(b)   purchase and use, on their own account or on behalf of their customers (and to resale to their
      customers) of any transport and related services, including transport services by any inland
      mode, necessary for the supply of an intermodal service;
                                              EU/KZ/en 69
 ---pagebreak--- (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 by 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 with other shipping agencies; including participation
     of 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 juridical persons, inter alia in organising the call of the vessel or
     taking over cargoes when required.
5.   In view of the existing level of liberalisation concerning the cross-border supply of services
between the Parties in international maritime transport:
(a)  The Parties shall apply effectively the principle of unrestricted access to the international
     markets and trades on a commercial and non-discriminatory basis.
                                             EU/KZ/en 70
 ---pagebreak--- (b) Each Party shall grant to ships operated by service suppliers of the other Party treatment no
    less favourable than that accorded to its own ships or those of any third country, whichever
    are the better with regard to, inter alia, access to ports, the use of infrastructure and services
    of the ports, and the use of maritime auxiliary services, as well as related fees and charges,
    customs facilities and the assignment of berths and facilities for loading and unloading.
6.  In applying the principles set out in paragraph 5, the Parties shall:
(a) not apply, as from entry into force of this agreement, any cargo sharing provisions of bilateral
    agreements between any Member State of the European Union and the Republic of
    Kazakhstan;
(b) not introduce cargo sharing clauses into future bilateral agreements with third countries, other
    than in those exceptional circumstances where liner shipping companies from one or other
    Party to this Agreement would not otherwise have an effective opportunity to ply for trade to
    and from the third country concerned;
(c) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and liquid
    bulk trade;
                                            EU/KZ/en 71
 ---pagebreak--- (d)   upon entry into force of this Agreement, abolish and abstain from introducing any unilateral
      measures and administrative, technical and other obstacles which could constitute a disguised
      restriction or have discriminatory effects on the free supply of services in international
      maritime transport.
7.    Natural and juridical persons of the European Union providing international maritime
transport services shall be free to provide international sea-river services in the inland waterways of
the Republic of Kazakhstan and vice versa.
8.    The Parties shall make available to international maritime transport suppliers of the other
Party on reasonable and non-discriminatory terms and conditions the following services at port:
pilotage, towing and tug assistance, provisioning, fuelling and watering, garbage collecting and
ballast water disposal, port captain’s services, navigation aids, shore based operational services
essential to ship operations, including communications, water and electricity supplies, emergency
repair facilities, anchorage, berth and berthing services.
9.    In case the Republic of Kazakhstan grants more favourable treatment for maritime transport to
any other WTO member, except for Caspian Sea Coastal States and CIS countries, then those terms
shall be applied to the natural and juridical persons of the European Union.
                                              EU/KZ/en 72
 ---pagebreak---                                           ARTICLE 54 bis
                           Road, rail, inland waterways and air transport
With a view to assuring coordinated development of transport between the Parties adapted to their
reciprocal commercial needs, the conditions of mutual market access in road, rail and inland
waterways and, if applicable in air transport, may be dealt with by future possible specific
agreements negotiated between the Parties after the entry of force of this Agreement.
                                            EU/KZ/en 73
 ---pagebreak---                                               SECTION 6
                                             EXCEPTIONS
                                              ARTICLE 55
                                           General exceptions
1.    Subject to the requirement that such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between countries where like
conditions prevail, or a disguised restriction on establishment, including operations, or the
cross-border supply of services, nothing in this Chapter shall be construed to prevent the adoption
or enforcement by any Party of measures:
(a)   necessary to protect public security or public morals or to maintain public order;1
(b)   necessary to protect human, animal or plant life or health;
1
      The public order exception may be invoked only where a genuine and sufficiently serious
      threat is posed to one of the fundamental interests of society.
                                              EU/KZ/en 74
 ---pagebreak--- (c) relating to the conservation of exhaustible natural resources if such measures are applied in
    conjunction with restrictions on domestic investors or on the domestic supply or consumption
    of services;
(d) necessary for the protection of national treasures of artistic, historic or archaeological value;
(e) necessary to secure compliance with laws or regulations which are not inconsistent with the
    provisions of this Title including those relating to:
    (i)    the prevention of deceptive and fraudulent practices or to deal with the effects of a
           default on contracts;
    (ii)   the protection of the privacy of individuals in relation to the processing and
           dissemination of personal data and the protection of confidentiality of individual records
           and accounts;
    (iii) safety;
                                            EU/KZ/en 75
 ---pagebreak--- (f) inconsistent with Article 46 on national treatment, provided that the difference in treatment is
    aimed at ensuring the effective or equitable imposition or collection of direct taxes in respect
    of economic activities, investors or services suppliers of the other Party1.
1
    Measures that are aimed at ensuring the equitable or effective imposition or collection of
    direct taxes include measures taken by a Party under its taxation system which:
    (i) apply to non-resident investors and services suppliers in recognition of the fact that the
          tax obligation of non-residents is determined with respect to taxable items sourced or
          located in the Party’s territory; or
    (ii) apply to non-residents in order to ensure the imposition or collection of taxes in the
          Party’s territory; or
    (iii) apply to non-residents or residents in order to prevent the avoidance or evasion of taxes,
          including compliance measures; or
    (iv) apply to consumers of services supplied in or from the territory of another Party in order
          to ensure the imposition or collection of taxes on such consumers derived from sources
          in the Party’s territory; or
    (v) distinguish investors and service suppliers subject to tax on worldwide taxable items
          from other investors and service suppliers, in recognition of the difference in the nature
          of the tax base between them; or
    (vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of
          resident persons or branches, or between related persons or branches of the same
          person, in order to safeguard the Party’s tax base.
    Tax terms or concepts in paragraph (f) of this Article and in this footnote are determined
    according to tax definitions and concepts, or equivalent or similar definitions and concepts,
    under the domestic law of the Party taking the measure.
                                            EU/KZ/en 76
 ---pagebreak--- 2.     The provisions of this Chapter shall not apply to the Parties’ respective social security
systems or to activities in the territory of each Party, which are connected, even occasionally, with
the exercise of governmental authority.
                                                SECTION 7
                                              INVESTMENT
                                               ARTICLE 56
                                         Review and consultations
The Parties shall jointly review the investment legal framework no later than three years after the
date on which this Title starts applying in order to identify any barriers to investment. On the basis
of this review, they shall consider the opportunity to start negotiations to address such barriers, with
a view to supplementing this Agreement, including with respect to general principles of investment
protection.
                                               EU/KZ/en 77
 ---pagebreak---                                              CHAPTER 6
                           CAPITAL MOVEMENTS AND PAYMENTS
                                            ARTICLE 57
                                           Current account
Each Party shall authorise, in a freely convertible currency and in accordance with the Articles of
Agreement of the International Monetary Fund (IMF), as applicable, all payments and transfers on
the current account of the balance-of-payments between the Parties.
                                            EU/KZ/en 78
 ---pagebreak---                                              ARTICLE 58
                                           Movement of capital
1.     Without prejudice to other provisions in this Agreement, with regard to transactions on the
capital and financial account of balance-of-payments, the Parties undertake not to impose
restrictions on the free movement of capital relating to direct investments made in accordance with
the laws of the host country, to economic activities covered by Chapter 5 (Trade in Services and
Establishment) of this Title and to the liquidation and repatriation of such invested capital and of
any profit generated therefrom.
2.     Without prejudice to other provisions in this Agreement, with regard to transactions on the
capital and financial account of balance-of-payments not covered by paragraph 1 each Party shall
ensure, in accordance with its laws, the free movement of capital relating to, inter alia:
(a)    credits related to commercial transactions including the provision of services in which a
       resident of a Party is participating;
(b)    financial loans and credits; or
                                             EU/KZ/en 79
 ---pagebreak--- (c)   capital participation in a juridical person with no intention of establishing or maintaining
      lasting economic links.
3.    Without prejudice to other provisions in this Agreement, the Parties shall not introduce any
new restrictions on the movement of capital between residents of the Parties and shall not make the
existing arrangements more restrictive.
4.    The Parties may hold consultations with a view to further facilitating the movement of capital
between them.
                                              ARTICLE 59
                                                Exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a
means of arbitrary or unjustifiable discrimination between countries where like conditions prevail,
or a disguised restriction on capital movements, nothing in this Chapter shall be construed to
prevent the adoption or enforcement by either Party of measures:
(a)   necessary to protect public security and public morals or to maintain public order; or
                                               EU/KZ/en 80
 ---pagebreak--- (b) necessary to secure compliance with laws or regulations which are not inconsistent with the
    provisions of this Title including those relating to:
    (i)   the prevention of criminal or penal offences, deceptive and fraudulent practices or to
          deal with the effects of a default on contracts (bankruptcy, insolvency and protection of
          the right of creditors);
    (ii)  measures adopted or maintained to ensure the integrity and stability of a Party’s
          financial system;
    (iii) issuing, trading or dealing in securities, options, futures or other derivatives;
    (iv) financial reporting or record keeping of transfers when necessary to assist law
          enforcement or financial regulatory authorities; or
    (v)   ensuring compliance with orders or judgements in juridical or administrative
          proceedings.
                                           EU/KZ/en 81
 ---pagebreak---                                             ARTICLE 60
                             Temporary safeguard measures with regard to
                               capital movements, payments or transfers
In exceptional circumstances of serious difficulties for the operation of monetary and exchange rate
policy, in the case of the Republic of Kazakhstan, or for the operation of the economic and
monetary union, in the case of the European Union, or threat thereof, safeguard measures that are
strictly necessary may be taken by the concerned Party with regard to capital movements, payments
or transfers for a period not exceeding one year. The Party which maintains or adopts such
measures shall inform the other Party forthwith and present, as soon as possible, of a time schedule
for their removal.
                                            EU/KZ/en 82
 ---pagebreak---                                           CHAPTER 7
                                   INTELLECTUAL PROPERTY
                                          ARTICLE 61
                                            Objectives
The objectives of this Chapter are to:
(a)  facilitate the production and commercialisation of innovative and creative products between
     the Parties; and
(b)  achieve an adequate and effective level of protection and enforcement of intellectual property
     rights.
                                          EU/KZ/en 83
 ---pagebreak---                                                 SECTION 1
                                               PRINCIPLES
                                               ARTICLE 62
                                     Nature and scope of obligations
1.     The Parties recall their obligation to ensure the adequate and effective implementation of the
international agreements dealing with intellectual property to which they are parties including the
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement).
The provisions of this Chapter shall complement and further specify the rights and obligations
between the Parties under the TRIPS Agreement and other international agreements in the field of
intellectual property.
2.     For the purposes of this Agreement, the term "intellectual property" refers at least to all
categories of intellectual property that are the subject of Articles 65 (Protection granted) to 96
(Plant varieties).
                                               EU/KZ/en 84
 ---pagebreak--- 3.    Protection of intellectual property includes protection against unfair competition as referred to
in Article 10bis of the Paris Convention for the Protection of Industrial Property of 1883, as revised
in 1967 and amended in 1979 (Paris Convention).
4.    This Chapter shall not prevent the Parties from applying provisions in their law providing for
higher standards of intellectual property protection and enforcement provided that they do not
contravene the provisions of this Chapter.
                                             ARTICLE 63
                                         Transfer of technology
1.    The Parties agree to exchange views and information on their law and international practices
on the protection and enforcement of intellectual property rights, affecting transfer of technology.
This shall in particular include exchanges on measures to facilitate information flows, business
partnerships, and voluntary licensing and subcontracting agreements. Particular attention shall be
paid to the conditions necessary to create an adequate enabling environment for technology transfer
in the host countries, including issues such as the domestic legal framework and the development of
human capital.
                                             EU/KZ/en 85
 ---pagebreak--- 2.     When measures are taken with regard to technology transfer, the legitimate interests of the
intellectual property right holders shall be protected.
                                              ARTICLE 64
                                               Exhaustion
Each Party shall apply a national or regional1 exhaustion regime of intellectual property rights, in
accordance with domestic law in respect of the following rights: copy rights- and related rights,
designs, and trademarks.
1
       The term “regional” refers to Regional Economic Integration Organisations that set up an
       internal market ensuring the free movement of goods and services.
                                              EU/KZ/en 86
 ---pagebreak---                                             SECTION 2
             STANDARDS CONCERNING INTELLECTUAL PROPERTY RIGHTS
                             COPYRIGHT AND RELATED RIGHTS
                                           ARTICLE 65
                                         Protection granted
Each Party shall comply with the rights and obligations set out in the following international
agreements:
(a)  the Berne Convention for the Protection of Literary and Artistic Works (Berne Convention);
(b)  the International Convention for the Protection of Performers, Producers of Phonograms and
     Broadcasting Organizations (Rome Convention);
(c)  the World Intellectual Property Organization (WIPO) Copyright Treaty;
                                           EU/KZ/en 87
 ---pagebreak--- (d)  the WIPO Performances and Phonograms Treaty;
(e)  the TRIPS Agreement.
                                            ARTICLE 66
                                              Authors
Each Party shall provide for authors the exclusive right to authorise or prohibit:
(a)  the direct or indirect, temporary or permanent reproduction by any means and in any form, in
     whole or in part of their works;
(b)  any form of distribution to the public by sale or otherwise of the original of their works or of
     copies thereof;
(c)  any communication to the public of their works, by wire or wireless means, including the
     making available to the public of their works in such a way that members of the public may
     access them from a place and at a time individually chosen by them.
                                            EU/KZ/en 88
 ---pagebreak---                                              ARTICLE 67
                                              Performers
Each Party shall provide for performers the exclusive right to authorise or prohibit:
(a)  the fixation1 of their performances;
(b)  the direct or indirect, temporary or permanent reproduction by any means and in any form, in
     whole or in part, of fixations of their performances;
(c)  the distribution to the public, by sale or otherwise, of fixations of their performances;
(d)  the making available to the public, by wire or wireless means, in such a way that members of
     the public may access them from a place and at a time individually chosen by them, of
     fixations of their performances;
(e)  the broadcasting by wireless means and the communication to the public of their
     performances, except where the performance is itself already a broadcast performance or is
     made from a fixation.
1
     For the purposes of this Chapter, “fixation” means the embodiment of sounds, or of the
     representations thereof, from which they can be perceived, reproduced or communicated
     through a device.
                                             EU/KZ/en 89
 ---pagebreak---                                             ARTICLE 68
                                      Producers of phonograms
Each Party shall provide for phonogram producers the exclusive right to authorise or prohibit:
(a)  the direct or indirect, temporary or permanent reproduction by any means and in any form, in
     whole or in part, of their phonograms;
(b)  the distribution of their phonograms to the public, by sale or otherwise, including copies
     thereof;
(c)  the making available of their phonograms to the public, by wire or wireless means, in such a
     way that members of the public may access them from a place and at a time individually
     chosen by them.
                                            EU/KZ/en 90
 ---pagebreak---                                             ARTICLE 69
                                     Broadcasting organisations
Each Party shall provide for broadcasting organisations the exclusive right to authorise or prohibit:
(a)  the fixation of their broadcasts;
(b)  the reproduction of fixations of their broadcasts;
(c)  the making available to the public, by wire or wireless means, of fixations of their broadcasts
     in such a way that members of the public may access them from a place and at a time
     individually chosen by them; and
(d)  the rebroadcasting of their broadcasts by wireless means, as well as the communication to the
     public of their broadcasts if such communication is made in places accessible to the public
     against payment of an entrance fee.
                                            EU/KZ/en 91
 ---pagebreak---                                               ARTICLE 70
                            Broadcasting and communication to the public
Each Party shall provide a right in order to ensure that a single equitable remuneration is paid by the
user, if a phonogram published for commercial purposes, or a reproduction of such phonogram, is
used for broadcasting by wireless means or for any communication to the public, and to ensure that
that remuneration is shared between the relevant performers and phonogram producers. Each Party
may, in the absence of agreement between the performers and phonogram producers, lay down the
conditions as to the sharing of that remuneration between them.
                                              ARTICLE 71
                                            Term of protection
1.     The rights of an author of a literary or artistic work within the meaning of Article 2 of the
Berne Convention shall run for the life of the author and for no less than 70 years after their death.
2.     In the case of a work of joint authorship, the term referred to in paragraph 1 shall be
calculated from the death of the last surviving author.
                                               EU/KZ/en 92
 ---pagebreak--- 3.     The rights of performers shall expire no less than 50 years after the date of the performance.
However, if a fixation of the performance is lawfully published or lawfully communicated to the
public within this period, the rights shall expire no less than 50 years from the date of the first such
publication or the first such communication to the public, whichever is the earlier,
4.     The rights of producers of phonograms shall expire no less than 50 years after the fixation is
made. However, if the phonogram has been lawfully published within this period, the said rights
shall expire no less than 50 years from the date of the first lawful publication. If no lawful
publication has taken place within the period mentioned in the first sentence, and if the phonogram
has been lawfully communicated to the public within this period, the said rights shall expire no less
than 50 years from the date of the first lawful communication to the public.
5.     The rights of broadcasting organisations shall expire no less than 50 years after the first
transmission of a broadcast, whether that broadcast is transmitted by wire or wireless means,
including by cable or satellite.
6.     The terms laid down in this Article shall be calculated from the first of January of the year
following the event which gives rise to them.
7.     The terms of protection can exceed the terms laid down in this Article.
                                              EU/KZ/en 93
 ---pagebreak---                                                ARTICLE 72
                                   Protection of technological measures
1.     Each Party shall provide adequate legal protection against the circumvention of any effective
technological measures, which the person concerned carries out in the knowledge, or with
reasonable grounds to know, that they are pursuing that objective.
2.     Each Party shall provide adequate legal protection against the manufacture, import,
distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of
devices, products or components or the provision of services which are mainly directed at or enable
circumvention of any effective technological measures.
3.     For the purposes of this Agreement, the expression “technological measures” means any
technology, device or component that, in the normal course of its operation, is designed to prevent
or restrict acts, in respect of works or other subject-matter, which are not authorised by the right
holder of any copyright or related right as provided for by domestic law. Technological measures
shall be deemed “effective” where the use of a work or other subject matter is controlled by the
right holders through the application of an access control or protection process, such as encryption,
scrambling or other transformation of the work or other subject-matter or a copy control
mechanism, which achieves the protection objective.
                                               EU/KZ/en 94
 ---pagebreak---                                                ARTICLE 73
                              Protection of rights management information
1.     Each Party shall provide adequate legal protection against any person performing without
authority any of the following acts:
(a)    the removal or alteration of any electronic rights-management information;
(b)    the distribution, importation for distribution, broadcasting, communication or making
       available to the public of works or other subject-matter protected under this Agreement from
       which electronic rights-management information has been removed or altered without
       authority,
if that person knows, or has reasonable grounds to know, that by so doing he is inducing, enabling,
facilitating or concealing an infringement of any copyright or any related rights as provided by
domestic law.
                                               EU/KZ/en 95
 ---pagebreak--- 2.    For the purposes of this Chapter, the expression “rights-management information” means any
information provided by right holders which identifies the work or other subject-matter protected by
copyright and related rights, the author or any other right holder, or information about the terms and
conditions of use of the work or other subject-matter, and any numbers or codes that represent such
information.
3.    Paragraph 1 shall apply when any of those items of information is associated with a copy of,
or appears in connection with the communication to the public of, a work or other subject matter
protected by copyright and related rights.
                                             ARTICLE 74
                                      Exceptions and limitations
1.    In accordance with the conventions and international agreements to which they are parties,
each Party may provide for limitations or exceptions to the rights set out in Articles 66 to 70 only in
certain special cases which do not conflict with a normal exploitation of the works or other subject
matter and do not unreasonably prejudice the legitimate interests of the right holders.
                                             EU/KZ/en 96
 ---pagebreak--- 2.    Each Party shall provide that temporary acts of reproduction referred to in Articles 66 to 70,
which are transient or incidental, which are an integral and essential part of a technological process
and the sole purpose of which is to enable
(a)   a transmission in a network between third parties by an intermediary, or
(b)   a lawful use
of a work or other subject-matter to be made, and which have no independent economic
significance, shall be exempted from the reproduction right provided for in Articles 66 to 69.
                                            EU/KZ/en 97
 ---pagebreak---                                              ARTICLE 75
                                               Resale right
1.     Each Party shall provide, for the benefit of the author of an original work of art who is a
national of the other Party and its successor in title, a resale right, to be defined as an inalienable
right, which cannot be waived, even in advance, to receive a royalty based on the sale price
obtained for the resale of the work subsequent to the first transfer of the work by the author. The
thresholds and the rates of the collection of the royalties are established according to the domestic
law of the Party where the resale takes place1.
1
       A Party may in accordance with domestic law limit the resale right to acts of resale involving
       dealers in works of art.
                                              EU/KZ/en 98
 ---pagebreak---                                               ARTICLE 76
                            Cooperation on collective management of rights
The Parties shall take such reasonable measures as may be available to them to facilitate the
establishment of arrangements between their respective collective management societies for the
purpose of ensuring easier mutual access and delivery of works and other protected subject matter
between the territories of the Parties, as well as the transfer of royalties between them for the use of
such works or other protected subject matter. The Parties shall also take such reasonable measures
as may be available to them to achieve a high level of rationalisation and transparency with regard
to the execution of the tasks of their respective collecting societies.
                                              EU/KZ/en 99
 ---pagebreak---                                           TRADEMARKS
                                            ARTICLE 77
                                      International agreements
Each Party shall:
(a)  comply with the Protocol relating to the Madrid Agreement Concerning the International
     Registration of Marks, the WIPO Trademark Law Treaty, and
(b)  make all reasonable efforts to accede to the Singapore Treaty on the law of trademarks.
                                           EU/KZ/en 100
 ---pagebreak---                                             ARTICLE 78
                                       Registration procedure
1.    Each Party shall provide for a system for the registration of trademarks in which each final
decision taken by the relevant competent trademark authority shall be duly reasoned and
communicated in writing to the applicant who will have the opportunity to contest it before the
competent trademark authority and to appeal it before a court.
2.    Each Party shall provide for the possibility for right holders to oppose trademark applications
or registrations. The proceedings in case of opposition shall be adversarial.
3.    Each Party shall provide a publicly available electronic database of trademark registrations.
                                            EU/KZ/en 101
 ---pagebreak---                                               ARTICLE 79
                                         Well-known trademarks
The Parties shall cooperate with the aim of making protection of well-known trade-marks, as
referred to in Article 6bis of the Paris Convention and in Article 16(2) and 16(3) of the TRIPS
Agreement, effective.
                                              ARTICLE 80
                           Exceptions to the rights conferred by a trademark
Each Party shall provide for limited exceptions to the rights conferred by a trademark, such as the
fair use of descriptive terms, the use of geographical indications, or other limited exceptions, that
take account of the legitimate interests of the owner of the trademark and of third parties.
                                             EU/KZ/en 102
 ---pagebreak---                                    GEOGRAPHICAL INDICATIONS
                                               ARTICLE 81
                                                 Definition
Geographical indications are, for the purposes of this Agreement, indications which identify a good
as originating in the territory of a Party, or a region or locality in that territory, where a given
quality, reputation or other characteristic of the good is essentially attributable to its geographical
origin.
                                               ARTICLE 82
                        Principles of the Protection of Geographical Indications
1.    Each Party shall ensure adequate and indefinite protection of geographical indications, by way
of a sui generis system of protection and in accordance with domestic law as long as the
geographical indication enjoys legal protection in the country of origin.
                                               EU/KZ/en 103
 ---pagebreak--- 2.    To this end, the Parties shall co-operate in the area of geographical indications on the basis of
the provisions stipulated in this Article, which complement the minimum standards set in the
relevant provisions of the TRIPS Agreement.
3.    Each Party shall ensure that their geographical indications protection system is open to
registration of geographical indications of the other Party. Each Party shall provide for a publicly
available electronic database of registered geographical indications.
4.    In respect of the geographical indications protected in each territory, each Party shall prohibit
and prevent:
(a)   any direct or indirect commercial use of a registered name in respect of the products not
      covered by the registration in so far as
      (i)    those products are comparable to the products protected under that name, or
      (ii)   such use exploits the reputation of the protected name;
(b)   any misuse, imitation or evocation, even if the true origin of the product is indicated or if the
      protected name is translated, transcripted, transliterated or accompanied by an expression such
      as “style”, “type”, “method”, “as produced in”, “kind”, “imitation” or similar;
                                             EU/KZ/en 104
 ---pagebreak--- (c)   any other false or misleading indication as to the provenance, origin, nature or essential
      qualities of the product, on the inner or outer packaging, advertising material or documents
      relating to the product concerned, and the packing of the product in a container liable to
      convey a false impression as to its origin; or
(d)   any other practice liable to mislead the consumer as to the true origin of the good.
5.    Each Party shall enforce the protection provided for in Articles 81 to 83 including upon
request from an interested party by appropriate administrative enforcement in accordance with
domestic law.
6.    Each Party shall ensure that the protected geographical indications may be used by any
operator marketing a good conforming to the corresponding specification.
7.    Each Party shall ensure that the names that they have protected according to domestic law do
not become generic.
8.    The Parties shall have no obligation to register a geographical indication where, in the light of
a reputed or well-known trademark, registration is liable to mislead consumers as to the true identity
of the good.
                                             EU/KZ/en 105
 ---pagebreak--- 9.    Without prejudice to this Article, each Party shall protect geographical indications also where
a prior trademark exists. A “prior trademark” shall mean a trademark the use of which corresponds
to one of the situations referred to in paragraph 4, which has been applied for, registered or
established by use, if that possibility is provided for by domestic law, before the date on which the
application for registration of the geographical indication is filed with the competent authority of
that Party. Such prior trademark may continue to be used and renewed notwithstanding the
protection of the geographical indication, provided that no grounds for the trademark’s invalidity or
revocation exist in the trademark law of the Party where it is registered or used.
                                               ARTICLE 83
                                               Negotiations
The Parties shall no later than seven years after the date on which this Title starts applying,
commence negotiations aimed at an agreement on protection of geographical indications in their
respective territories.
                                              EU/KZ/en 106
 ---pagebreak---                                                DESIGNS
                                              ARTICLE 84
                                        International agreements
The European Union reaffirms its commitment to the Geneva Act to the Hague Agreement
Concerning the International Registration of Industrial Designs (1999). The Republic of Kazakhstan
shall make reasonable efforts to accede to it.
                                              ARTICLE 85
                           Requirements for protection of registered designs
1.    Each Party shall provide for the protection of independently created designs that are new and
are original. This protection shall be provided by registration and shall confer an exclusive right
upon the holder of a registered design in accordance with domestic law. For the purpose of this
Article, a Party may consider that a design having individual character is original.
                                             EU/KZ/en 107
 ---pagebreak--- 2.    A design applied to or incorporated in a product which constitutes a component part of a
complex product shall only be considered to be new and to have individual character:
(a)   if the component part, once it has been incorporated into the complex product, remains visible
      during normal use of the latter, excluding maintenance, servicing or repair work, and
(b)   to the extent that those visible features of the component part fulfil in themselves the
      requirements as to novelty and individual character.
                                              ARTICLE 86
                                    Rights conferred by registration
The holder of a registered design shall have the exclusive right to use it and to prevent any third
party not having the holder’s consent from, at least, making, offering for sale, selling, importing,
exporting, stocking or using a product bearing or embodying the protected design when such acts
are undertaken for commercial purposes.
                                             EU/KZ/en 108
 ---pagebreak---                                             ARTICLE 87
                             Protection conferred to unregistered designs
The Republic of Kazakhstan shall no later than seven years after the date on which this Title starts
applying effectively, introduce legal protection against copying unregistered designs, on the
condition that the European Union has no later than two years before the end of this seven year
period provided adequate training for representatives of the authorised bodies, organisations and
judges.
                                            ARTICLE 88
                                          Term of protection
The duration of protection as from the date of the filing of the application shall amount to at least 10
years. Each Party may foresee that the holder may have the term of protection renewed for one or
more periods of five years each, up to the maximum term of protection established according to
domestic law.
                                            EU/KZ/en 109
 ---pagebreak---                                               ARTICLE 89
                                               Exceptions
1.    Each Party may provide limited exceptions to the protection of designs, provided that such
exceptions do not unreasonably conflict with the normal exploitation of protected designs and do
not unreasonably prejudice the legitimate interests of the owner of the protected design, taking
account of the legitimate interests of third parties.
2.    Design protection shall neither extend to features of appearance dictated solely by technical
functions of the product nor to features of appearance of a product that are necessary to ensure
interoperability with another product1.
3.    A design right shall not subsist in a design which is contrary to public policy or to accepted
principles of morality.
1
      In the European Union this provision does not apply to modular products.
                                             EU/KZ/en 110
 ---pagebreak---                                                ARTICLE 90
                                        Relationship to copyright
A design protected by a design right registered in a Party shall also be eligible for protection under
the copyright law of that Party as from the date on which the design was created or fixed in any
form. The extent to which, and the conditions under which, such a protection is conferred, including
the level of originality required, shall be determined by each Party.
                                                PATENTS
                                               ARTICLE 91
                                         International agreements
Each Party shall make all reasonable efforts to comply with Articles 1 to 16 of the Patent Law
Treaty.
                                              EU/KZ/en 111
 ---pagebreak---                                              ARTICLE 92
                                      Patents and public health
1.    The Parties recognise the importance of the Declaration of the Ministerial Conference of the
WTO on the TRIPS Agreement and Public Health, adopted on 14 November 2001. In interpreting
and implementing the rights and obligations under this Chapter, Each Party ensures consistency
with the Declaration.
2.    Each Party shall respect the Decision of the WTO General Council of 30 August 2003 on
Paragraph 6 of the declaration referred to in paragraph 1.
                                            EU/KZ/en 112
 ---pagebreak---                                                ARTICLE 93
                                  Supplementary protection certificates
1.     The Parties recognise that medicinal and plant protection products protected by a patent on
their respective territory may be subject to an administrative authorisation procedure before being
put on the market. They recognise that the period that elapses between the filing of the application
for a patent and the first authorisation to place the product on the market, as defined for that purpose
by the relevant domestic law, may shorten the period of effective protection under the patent.
2.     Each Party shall provide for a further period of protection for a medicinal or plant protection
product which is protected by a patent and which has been subject to an administrative authorisation
procedure, that period being equal to the period referred to in second sentence of paragraph 1,
reduced by a period of five years.
3.     Notwithstanding paragraph 2, the duration of the further period of protection may not exceed
five years.
                                              EU/KZ/en 113
 ---pagebreak---                                             ARTICLE 94
                       Protection of data submitted to obtain an authorisation
                           to put a pharmaceutical product1 on the market
1.    Each Party shall implement a comprehensive system to guarantee the confidentiality,
non-disclosure and non-reliance of data submitted for the purpose of obtaining an authorisation to
put a pharmaceutical product on the market.
2.    Each Party shall ensure that any information submitted to obtain an authorisation to put a
pharmaceutical product, as referred to in Article 39(3) of the TRIPS Agreement, on the market
remains undisclosed to third parties and benefits from a period of at least six years of protection
against unfair commercial use starting from the date of the grant of a marketing authorisation in
either of the Parties.
1
      The term “pharmaceutical product” in this Chapter refers, in the case of the European Union,
      to medicinal products as defined in Directive 2001/83/EC of the European Parliament and of
      the Council of 6 November 2001 on the Community code relating to medicinal products for
      human use.
                                           EU/KZ/en 114
 ---pagebreak--- To this end,
(a)   during a period of at least six years starting from the date of the grant of a marketing
      authorisation, no person or entity (public or private), other than the person or entity who
      submitted such undisclosed data, shall be allowed to rely directly or indirectly on such data,
      without the explicit consent of the person or entity who submitted this data, in support of an
      application for the authorisation to put a pharmaceutical product on the market;
(b)   during a period of at least six years starting from the date of the grant of a marketing
      authorisation, any subsequent application for the authorisation to put a pharmaceutical
      product on the market shall not be granted, unless the subsequent applicant submits his/her
      own data (or data used with authorisation of the holder of the first authorisation) meeting the
      same requirements as the first applicant. During this 6 year period, products registered
      without submission of such data shall be removed from the market until the requirements are
      met.
                                             EU/KZ/en 115
 ---pagebreak---                                               ARTICLE 95
                              Data protection on plant protection products
                             and rules on avoidance of duplicative testing
1.    The Parties shall determine safety and efficacy requirements before authorising the placing on
the market of plant protection products.
2.    Each Party shall recognise a temporary data protection right to the owner of a test or study
report submitted for the first time to obtain a marketing authorisation for a plant protection product.
During the period of validity of the data protection right, the test or study report shall not be used
for the benefit of any other person aiming to achieve a marketing authorisation for a plant protection
product, except when the explicit consent of the owner is proved. This right shall be hereinafter
referred to as “data protection”.
                                             EU/KZ/en 116
 ---pagebreak--- 3.     The test or study report shall fulfil the following conditions:
(a)    be necessary for the authorisation or for an amendment of an authorisation in order to allow
       the use on other crops, and
(b)    be certified as compliant with the principles of good laboratory practice or of good
       experimental practice.
4.     The term of data protection for plant protection products in a Party shall be 10 years starting
on the date of the first authorisation in that Party. Longer periods may be granted by each Party in
order to encourage the authorisation of, for instance, low risk plant protection products or minor
uses.
5.     A test or study shall also be protected if it was necessary for the renewal or review of an
authorisation.
6.     Rules to avoid duplicative testing on vertebrate animals will be laid down by the Parties. Any
applicant intending to perform tests and studies involving vertebrate animals shall take the
necessary measures to verify that those tests and studies have not already been performed or
initiated.
                                               EU/KZ/en 117
 ---pagebreak--- 7.     The prospective applicant and the holder or holders of the relevant authorisations shall make
every effort to ensure that they share tests and studies involving vertebrate animals. The costs of
sharing the test and study reports shall be determined in a fair, transparent and non-discriminatory
way. The prospective applicant shall only be required to share in the costs of information he is
required to submit to meet the authorisation requirements.
8.     Where the prospective applicant and the holder or holders of the relevant authorisations of
plant protection products cannot reach agreement on the sharing of test and study reports involving
vertebrate animals, the prospective applicant shall inform the competent authority of the Party
concerned.
9.     The failure to reach agreement shall not prevent the competent authority of the Party
concerned from using the test and study reports involving vertebrate animals for the purpose of the
application of the prospective applicant.
The holder or holders of the relevant authorisation shall have a claim on the prospective applicant
for a fair share of the costs incurred by him. The Party may direct the parties involved to resolve the
matter by formal and binding arbitration administered under domestic law.
                                             EU/KZ/en 118
 ---pagebreak---                                          ARTICLE 96
                                        Plant varieties
The European Union reaffirms its commitment to the International Convention for the Protection of
New Varieties of Plants (UPOV), to which the Republic of Kazakhstan shall make reasonable
efforts to accede.
                                        EU/KZ/en 119
 ---pagebreak---                                                 SECTION 3
                     ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS
                                              ARTICLE 97
                                            General obligations
1.     The Parties reaffirm their commitments under the TRIPS Agreement, in particular Part III
thereof, and shall provide for the complementary measures, procedures and remedies set out in this
sub-section, which are necessary to ensure the enforcement of the intellectual property rights1.
2.     Those measures, procedures and remedies shall be fair and equitable, and shall not be
unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted delays. They
shall also be effective, proportionate and dissuasive and shall be applied in such a manner as to
avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse.
1
       For the purposes of Articles 98 to 110, the term “intellectual property rights” shall include at
       least the following rights: copyright; rights related to copyright; sui generis right of a database
       maker; rights of the creator of the topographies of a semiconductor product; trademark rights;
       design rights; patent rights, including rights derived from supplementary protection
       certificates; geographical indications; utility model rights; plant variety rights; trade names in
       so far as these are protected as exclusive rights by domestic law.
                                              EU/KZ/en 120
 ---pagebreak---                                              ARTICLE 98
                                          Entitled applicants
Each Party shall recognise as persons entitled to seek application of the measures, procedures and
remedies referred to in this sub-section and in Part III of the TRIPS Agreement:
(a)  the holders of intellectual property rights in accordance with the provisions of domestic law,
(b)  all other persons authorised to use those rights, in particular licensees, in so far as permitted
     by and in accordance with the provisions of domestic law,
(c)  intellectual property collective rights management bodies which are regularly recognised as
     having a right to represent holders of intellectual property rights, in so far as permitted by and
     in accordance with the provisions of domestic law,
(d)  professional defence bodies or other persons which are recognised as having a right to
     represent holders of intellectual property rights, in so far as permitted by and in accordance
     with the provisions of domestic law.
                                            EU/KZ/en 121
 ---pagebreak---                                              ARTICLE 99
                                                Evidence
1.    The judicial authorities of each Party shall have the authority, where a party has presented
reasonably available evidence sufficient to support its claims and has in substantiating its claims,
specified evidence which lies in the control of the opposing party, to order that this evidence be
produced by the opposing party, subject to conditions which ensure the protection of confidential
information.
2.    Under the same conditions, each Party shall take such measures as are necessary, in the case
of an infringement of an intellectual property right committed on a commercial scale, to enable the
competent judicial authorities to order, where appropriate and following an application, the
communication of banking, financial or commercial documents under the control of the opposing
party, subject to the protection of confidential information.
                                            EU/KZ/en 122
 ---pagebreak---                                              ARTICLE 100
                                   Measures for preserving evidence
1.    Each Party shall ensure that even before the commencement of proceedings on the merits of
the case, the competent judicial authorities may, on application by a right holder who has presented
reasonably available evidence to support their claims that their intellectual property right has been
infringed or is about to be infringed, order prompt and effective provisional measures to preserve
relevant evidence in respect of the alleged infringement, subject to the protection of confidential
information.
2.    Such measures may include the detailed description, with or without the taking of samples, or
the physical seizure of the alleged infringing goods, and, in appropriate cases, the materials and
implements used in the production and/or distribution of those goods and the documents relating
thereto. Those measures shall be taken, if necessary without the other party being heard, in
particular where any delay is likely to cause irreparable harm to the right holder or where there is a
demonstrable risk of evidence being destroyed.
                                             EU/KZ/en 123
 ---pagebreak---                                              ARTICLE 101
                                          Right of information
1.     Each Party shall ensure that, in the context of proceedings concerning an infringement of an
intellectual property right and in response to a justified and proportionate request of the claimant,
the competent judicial authorities may order that information on the origin and distribution
networks of the goods or services which infringe an intellectual property right be provided by the
infringer and/or any other person who:
(a)    was found in possession of the infringing goods on a commercial scale;
(b)    was found to be using the infringing services on a commercial scale;
(c)    was found to be providing on a commercial scale services used in infringing activities; or
(d)    was indicated by the person referred to in subparagraph (a), (b) or (c) of this paragraph as
       being involved in the production, manufacture or distribution of the goods or the provision of
       the services.
                                             EU/KZ/en 124
 ---pagebreak--- 2.  The information referred to in paragraph 1 shall comprise:
(a) the names and addresses of the producers, manufacturers, distributors, suppliers and other
    previous holders of the goods or services, as well as the intended wholesalers and retailers;
(b) information on the quantities produced, manufactured, delivered, received or ordered, as well
    as the price obtained for the goods or services in question.
3.  Paragraphs 1 and 2 shall apply without prejudice to other statutory provisions which:
(a) grant the right holder rights to receive fuller information;
(b) govern the use in civil or criminal proceedings of the information communicated pursuant to
    this Article;
(c) govern responsibility for misuse of the right of information;
                                           EU/KZ/en 125
 ---pagebreak--- (d)    afford an opportunity for refusing to provide information which would force the person
       referred to in paragraph 1 to admit to their own participation or that of their close relatives in
       an infringement of an intellectual property right; or
(e)    govern the protection of confidentiality of information sources or the processing of personal
       data.
                                             ARTICLE 102
                                Provisional and precautionary measures
1.     Each Party shall ensure that the judicial authorities may, at the request of the applicant, issue
against the alleged infringer an interlocutory injunction intended to prevent any imminent
infringement of an intellectual property right, or to forbid, on a provisional basis and subject, where
appropriate, to a recurring penalty payment where provided for by domestic law, the continuation of
the alleged infringements of that right, or to make such continuation subject to the lodging of
guarantees intended to ensure the compensation of the right holder. An interlocutory injunction may
also be issued, under the same conditions and in accordance with domestic law, against an
intermediary whose services are being used by a third party to infringe an intellectual property right.
                                             EU/KZ/en 126
 ---pagebreak--- 2.     An interlocutory injunction may also be issued to order the seizure or delivery of goods
suspected of infringing an intellectual property right so as to prevent their entry into or movement
within the channels of commerce.
3.     In the case of an infringement committed on a commercial scale, each Party shall ensure that,
if the applicant demonstrates circumstances likely to endanger the recovery of damages, the judicial
authorities may in accordance with domestic law order the precautionary seizure or arrest of the
movable and/or immovable property of the alleged infringer, including the blocking of their bank
accounts and other assets. To that end, the judicial authorities may order the provision of bank,
financial or commercial documents, or appropriate access to the relevant information.
                                            EU/KZ/en 127
 ---pagebreak---                                               ARTICLE 103
                                           Corrective measures
1.     Each Party shall ensure that the competent judicial authorities may order, at the request of the
applicant and without prejudice to any damages due to the right holder by reason of the
infringement, and without compensation of any sort, the recall, definitive removal from the
channels of commerce or the destruction of goods that they have found to be infringing an
intellectual property right. If appropriate, the competent judicial authorities may also order the
destruction of materials and implements predominantly used in the creation or manufacture of those
goods.
2.     The judicial authorities of each Party shall have the power to order that those measures shall
be carried out at the expense of the infringer, unless particular reasons are invoked for not doing so.
                                              EU/KZ/en 128
 ---pagebreak---                                               ARTICLE 104
                                                Injunctions
Each Party shall ensure that, where a judicial decision is taken finding an infringement of an
intellectual property right, the judicial authorities may issue against the infringer an injunction
aimed at prohibiting the continuation of the infringement. Where provided for by domestic law,
non-compliance with an injunction shall, where appropriate, be subject to a recurring penalty
payment, with a view to ensuring compliance. Each Party shall also ensure that right holders are in
a position to apply for an injunction against intermediaries whose services are used by a third party
to infringe an intellectual property right.
                                              EU/KZ/en 129
 ---pagebreak---                                              ARTICLE 105
                                         Alternative measures
Each Party, in accordance with domestic law, may provide that, in appropriate cases and at the
request of the person liable to be subject to the measures provided for in Article 103 and/or
Article 104, the competent judicial authorities may order pecuniary compensation to be paid to the
injured party instead of applying the measures provided for in Article 103 and/or Article 104 if that
person acted unintentionally and without negligence, if execution of the measures in question would
cause him disproportionate harm and if pecuniary compensation to the injured party appears
reasonably satisfactory.
                                             EU/KZ/en 130
 ---pagebreak---                                              ARTICLE 106
                                               Damages
1.    Each Party shall ensure that when the judicial authorities set the damages:
(a)   they shall take into account all appropriate aspects, such as the negative economic
      consequences, including lost profits, which the injured party has suffered, any unfair profits
      made by the infringer and, in appropriate cases, elements other than economic factors,
      including the moral prejudice caused to the right holder by the infringement ; or
(b)   as an alternative to subparagraph (a) of this paragraph, they may, in appropriate cases, set the
      damages as a lump sum on the basis of elements such as at least the amount of royalties or
      fees which would have been due if the infringer had requested authorisation to use the
      intellectual property right in question.
2.    Where the infringer did not knowingly, or with reasonable grounds to know, engages in the
infringing activity, each Party may lay down that the judicial authorities may order the recovery of
profits or the payment of damages to the injured party which may be pre-established.
                                             EU/KZ/en 131
 ---pagebreak---                                              ARTICLE 107
                                               Legal costs
Each Party shall ensure that reasonable and proportionate legal costs and other expenses incurred by
the successful party shall as a general rule be borne by the unsuccessful party, unless equity does
not allow this.
                                             ARTICLE 108
                                    Publication of judicial decisions
Each Party shall ensure that, in legal proceedings instituted for infringement of an intellectual
property right, the judicial authorities may order, at the request of the applicant and at the expense
of the infringer, appropriate measures for the dissemination of the information concerning the
decision, including displaying the decision and publishing it in full or in part.
                                             EU/KZ/en 132
 ---pagebreak---                                                ARTICLE 109
                                Presumption of authorship or ownership
For the purposes of applying the measures, procedures and remedies provided for in this
sub-section:
(a)   for the author of a literary or artistic work, in the absence of proof to the contrary, to be
      regarded as such, and consequently to be entitled to institute infringement proceedings, it shall
      be sufficient for their name to appear on the work in the usual manner;
(b)   subparagraph (a) of this paragraph shall apply mutatis mutandis to the holders of rights related
      to copyright with regard to their protected subject matter.
                                               EU/KZ/en 133
 ---pagebreak---                                              ARTICLE 110
                                       Administrative procedures
To the extent that any civil remedy may be ordered as a result of administrative procedures on the
merits of a case, such procedures shall conform to principles equivalent in substance to those set
forth in the relevant provisions of this sub-section.
                                             ARTICLE 111
                                            Border measures
1.     When implementing border measures for the enforcement of intellectual property rights each
Party shall ensure the consistency with its obligations under the GATT 1994 and the TRIPS
Agreement.
                                             EU/KZ/en 134
 ---pagebreak--- 2.     To ensure protection of intellectual property rights in the customs territory of each of the
Parties, the customs authorities, within the limits of their authority, shall adopt a range of
approaches to identify shipments containing goods suspected of infringing intellectual property
rights referred to in paragraphs 3 and 4. These approaches include risk analysis techniques based,
inter alia, on information provided by rights holders, intelligence gathered and cargo inspections.
3.     The customs authorities shall have the power to take measures, upon application by the right
holder, to detain or suspend the release of goods under customs control which are suspected of
infringing trademarks, copyright and related rights, or geographical indications.
4.     The customs authorities of the Republic of Kazakhstan shall, no later than three years after the
date on which this Title starts applying, have the power to take measures, upon application by the
right holder, to detain or suspend the release of goods under customs control which are suspected of
infringing patents, utility models, industrial designs, topographies of integrated circuits or plant
variety rights, on the condition that the European Union provides, before the end of the second year
of this three-year period, adequate training for representatives of the authorized bodies, such as
customs officials, prosecutors, judges and other personnel as appropriate.
                                             EU/KZ/en 135
 ---pagebreak--- 5.     The customs authorities shall have the power to detain or suspend, upon their own initiative,
the release of goods under customs control which are suspected of infringing trademarks, copyright
and related rights, or geographical indications.
6.     The customs authorities of the Republic of Kazakhstan shall, no later than five years after the
date on which this Title starts applying, have the power to detain or suspend, upon their own
initiative, the release of goods under customs control which are suspected of infringing patents,
utility models, industrial designs, topographies of integrated circuits or plant variety rights, on the
condition that the European Union provides, no later than two years before the end of this five-year
period, adequate training for representatives of authorized bodies, such as customs officials,
prosecutors, judges and other personnel as appropriate.
7.     Notwithstanding paragraphs 3, 4, 5 and 6, there shall be no obligation to apply detention or
suspension measures to imports of goods that have been put on the market in another country by or
with the consent of the right holder.
                                            EU/KZ/en 136
 ---pagebreak--- 8.    The Parties agree to effectively implement Article 69 of the TRIPS Agreement in respect of
international trade in goods suspected of infringing intellectual property rights. For that purpose,
each Party shall be ready to establish and notify to the other Party a contact point in its customs
administration in order to facilitate cooperation. Such cooperation may include exchanges of
information regarding mechanisms for receiving information from right holders, best practices, and
experiences with risk management strategies, as well as information to aid in the identification of
shipments suspected of containing infringing goods.
9.    The customs authorities of each Party shall be ready to cooperate, upon request from the other
Party or upon their own initiative, to provide relevant available information to the customs
authorities of the other Party, in particular with regard to goods in transit through the territory of a
Party destined for, or originating in, the other Party.
10.   Without prejudice to other forms of cooperation, the Protocol on Mutual Administrative
Assistance in Customs Matters shall be applicable with regard to paragraphs 8 and 9 of this Article
with respect to breaches of customs law related to intellectual property rights.
11.   Without prejudice to the powers of the Cooperation Council, the Sub-committee on Customs
Cooperation referred to in Article 25(3) shall be responsible for ensuring the proper functioning and
implementation of this Article. The Sub-committee on Customs Cooperation shall set the priorities
and provide for adequate procedures for cooperation between the competent authorities of the
Parties.
                                              EU/KZ/en 137
 ---pagebreak---                                                SECTION 4
                    LIABILITY OF INTERMEDIARY SERVICE PROVIDERS
                                              ARTICLE 112
                                     Use of intermediaries’ services
The Parties recognise that the services of intermediaries could be used by third parties for infringing
activities. To ensure the free movement of information services and at the same time enforce
intellectual property rights in the digital environment, each Party shall provide for the measures
described in this Sub-section concerning intermediary service providers, where those providers are
in no way involved with the information transmitted.
                                              EU/KZ/en 138
 ---pagebreak---                                              ARTICLE 113
                      Liability of intermediary service providers: “mere conduit”
1.    Where an information society service is provided that consists of the transmission in a
communication network of information provided by a recipient of the service, or the provision of
access to a communication network, each Party shall ensure that the service provider is not liable
for the information transmitted, on condition that the provider:
(a)   does not initiate the transmission;
(b)   does not select the receiver of the transmission; and
(c)   does not select or modify the information contained in the transmission.
2.    The acts of transmission and of provision of access referred to in paragraph 1 include the
automatic, intermediate and transient storage of the information transmitted in so far as this takes
place for the sole purpose of carrying out the transmission in the communication network, and
provided that the information is not stored for any period longer than is reasonably necessary for the
transmission.
                                             EU/KZ/en 139
 ---pagebreak--- 3.    This Article shall not affect the possibility for a court or administrative authority, in
accordance with domestic law, of requiring the service provider to terminate or prevent an
infringement.
                                             ARTICLE 114
                        Liability of intermediary service providers: “caching”
1.    Where an information society service is provided that consists of the transmission in a
communication network of information provided by a recipient of the service, each Party shall
ensure that the service provider is not liable for the automatic, intermediate and temporary storage
of that information, performed for the sole purpose of making more efficient the information’s
onward transmission to other recipients of the service upon their request, on condition that:
(a)   the provider does not modify the information;
(b)   the provider complies with conditions on access to the information;
                                             EU/KZ/en 140
 ---pagebreak--- (c)   the provider complies with rules regarding the updating of the information, specified in a
      manner widely recognised and used by industry;
(d)   the provider does not interfere with the lawful use of technology, widely recognised and used
      by industry, to obtain data on the use of the information; and
(e)   the provider acts expeditiously to remove or to disable access to the information it has stored
      upon obtaining actual knowledge of the fact that the information at the initial source of the
      transmission has been removed from the network, or access to it has been disabled, or that a
      court or an administrative authority has ordered such removal or disablement.
2.    This Article shall not affect the possibility for a court or an administrative authority, in
accordance with domestic law, of requiring the service provider to terminate or prevent an
infringement.
                                             EU/KZ/en 141
 ---pagebreak---                                              ARTICLE 115
                          Liability of intermediary service providers: hosting
1.    Where an information society service is provided that consists of the storage of information
provided by a recipient of the service, each Party shall ensure that the service provider is not liable
for the information stored at the request of a recipient of the service, on condition that:
(a)   the provider does not have actual knowledge of illegal activity or information and, as regards
      claims for damages, is not aware of facts or circumstances from which the illegal activity or
      information is apparent; or
(b)   the provider, upon obtaining such knowledge or awareness, acts expeditiously to remove or to
      disable access to the information.
2.    Paragraph 1 shall not apply when the recipient of the service is acting under the authority or
the control of the provider.
                                             EU/KZ/en 142
 ---pagebreak--- 3.    This Article shall not affect the possibility for a court or an administrative authority, in
accordance with domestic law, of requiring the service provider to terminate or prevent an
infringement, nor does it affect the possibility for a Party of establishing procedures governing the
removal or disabling of access to information.
                                             ARTICLE 116
                                    No general obligation to monitor
1.    The Parties shall not impose a general obligation on providers, when providing the services
covered by Articles 113 to 115, to monitor the information which they transmit or store, nor shall
they impose a general obligation to actively seek facts or circumstances indicating illegal activity.
2.    A Party may establish obligations for information society service providers to promptly
inform the competent public authorities of alleged illegal activities undertaken or information
provided by recipients of their service. A Party may also establish an obligation for information
society service providers to communicate to the competent authorities, at their request, information
enabling the identification of recipients of their service with whom they have storage agreements.
                                             EU/KZ/en 143
 ---pagebreak---                                             ARTICLE 117
                      Date of application of Articles 112 to 116 of this Chapter
The Republic of Kazakhstan shall fully implement the obligations of Articles 112 to 116 within five
years from the date on which this Title starts applying.
                                            ARTICLE 118
                                             Cooperation
1.    The Parties shall encourage the development of cooperation among trade or professional
associations or organisations aimed at the protection and enforcement of intellectual property rights.
                                            EU/KZ/en 144
 ---pagebreak--- 2.    The Parties agree to cooperate with a view to supporting the implementation of the
obligations undertaken under this Chapter. Areas of cooperation include, but are not limited to, the
following activities:
(a)   exchange of information on their respective legal frameworks concerning intellectual property
      rights and relevant rules of protection and enforcement; exchange of experiences on
      legislative progress in those areas;
(b)   exchange of experiences on protection and enforcement of intellectual property rights;
(c)   exchange of experiences on protection and enforcement among customs, police,
      administrative and judiciary bodies and interested organisations; coordination to prevent
      exports of counterfeit goods;
(d)   capacity-building; and
(e)   promotion and dissemination of information and knowledge on intellectual property rights in,
      inter alia, business circles and civil society; promotion of public awareness and knowledge of
      consumers and right holders.
                                              EU/KZ/en 145
 ---pagebreak---                                           CHAPTER 8
                               GOVERNMENT PROCUREMENT
                                          ARTICLE 119
                                           Definitions
For purposes of this Chapter:
(a)  “commercial goods or services” means goods or services of a type generally sold or offered
     for sale in the commercial marketplace to, and customarily purchased by, non-governmental
     buyers for non-governmental purposes;
(b)  “construction service” means a service that has as its objective the realisation by whatever
     means of civil or building works, based on Division 51 of the United Nations Provisional
     Central Product Classification (“CPCprov”);
(c)  “days” means calendar days;
                                          EU/KZ/en 146
 ---pagebreak--- (d) “electronic auction” means a repetitive process involving an electronic device for the
    presentation of new prices, revised downwards, and/or new values concerning certain
    elements of tenders, which occurs after an initial full evaluation of the tenders, enabling them
    to be ranked using automatic evaluation methods. Consequently, certain service contracts and
    certain works contracts having as their subject matter intellectual performances, such as the
    design of works, may not be the object of electronic auctions.
(e) “in writing” or “written” means any worded or numbered expression that can be read,
    reproduced and later communicated. It may include electronically transmitted and stored
    information;
(f) “limited tendering” means a procurement method whereby the procuring entity contacts a
    supplier or suppliers of its choice;
(g) “measure” means any law, regulation, procedure, administrative guidance or practice, or any
    action of a procuring entity relating to a covered procurement;
(h) “multi-use list” means a list of suppliers that a procuring entity has determined satisfy the
    conditions for participation in that list, and that the procuring entity intends to use more than
    once;
                                            EU/KZ/en 147
 ---pagebreak--- (i) “notice of intended procurement” means a notice published by a procuring entity inviting
    interested suppliers to submit a request for participation, a tender, or both;
(j) “open tendering” means a procurement method whereby all interested suppliers may submit a
    tender;
(k) “person” means a natural person or a juridical person;
(l) “procuring entity” means an entity covered under Parts 1 to 3 of Annex III;
(m) “qualified supplier” means a supplier that a procuring entity recognises as having satisfied the
    conditions for participation;
(n) “selective tendering” means a procurement method whereby only qualified suppliers are
    invited by the procuring entity to submit a tender;
(o) “services” includes construction services, unless otherwise specified;
                                          EU/KZ/en 148
 ---pagebreak--- (p) “standard” means a document approved by a recognised body that provides for common and
    repeated use, rules, guidelines or characteristics for goods or services, or related processes and
    production methods, with which compliance is not mandatory. It may also include or deal
    exclusively with terminology, symbols, packaging, marking or labelling requirements as they
    apply to a good, service, process or production method;
(q) “supplier” means a person or group of persons that provides or could provide goods or
    services;
(r) “technical specification” means a tendering requirement that:
    (i)   lays down the characteristics of goods or services to be procured, including quality,
          performance, safety and dimensions, or the processes and methods for their production
          or provision; or
    (ii)  addresses terminology, symbols, packaging, marking or labelling requirements, as they
          apply to a good or service.
                                          EU/KZ/en 149
 ---pagebreak---                                            ARTICLE 120
                                         Scope and coverage
Application of Chapter
1.   This Chapter applies to any measure regarding covered procurement, whether or not it is
conducted exclusively or partially by electronic means.
2.   For the purposes of this Chapter, “covered procurement” means procurement for
governmental purposes:
(a)  of goods, services, or any combination thereof:
     (i)   as specified in Annex III; and
     (ii)  not procured with a view to commercial sale or resale, or for use in the production or
           supply of goods or services for commercial sale or resale;
(b)  by any contractual means, including: purchase; lease; and rental or hire purchase, with or
     without an option to buy;
                                           EU/KZ/en 150
 ---pagebreak--- (c)    for which the value equals or exceeds the relevant threshold specified in Annex III, at the time
       of publication of a notice in accordance with Article 124;
(d)    by a procuring entity; and
(e)    that is not otherwise excluded from coverage in paragraph 3 of this Article or in Annex III.
If the value of a procurement is uncertain, it shall be estimated in accordance with paragraphs 6
through 8.
3.     Except where provided otherwise in Annex III, this Chapter does not apply to:
(a)    the acquisition or rental of land, existing buildings or other immovable property or the rights
       thereon;
(b)    non-contractual agreements or any form of assistance that a Party provides, including
       cooperative agreements, grants, loans, equity infusions, guarantees and fiscal incentives;
                                              EU/KZ/en 151
 ---pagebreak--- (c) the procurement or acquisition of fiscal agency or depository services, liquidation and
    management services for regulated financial institutions or services related to the sale,
    redemption and distribution of public debt, including loans and government bonds, notes and
    other securities;
(d) public employment contracts;
(e) procurement conducted:
    (i)   for the specific purpose of providing international assistance, including development
          aid;
    (ii)  under the particular procedure or condition of an international agreement relating to the
          stationing of troops or relating to the joint implementation by the signatory countries of
          a project; or
    (iii) under the particular procedure or condition of an international organisation, or funded
          by international grants, loans or other assistance where the applicable procedure or
          condition would be inconsistent with this Chapter.
                                           EU/KZ/en 152
 ---pagebreak--- 4.   Annex III specifies for each party the following information:
(a)  in Part 1, the central government entities whose procurement is covered by this Chapter;
(b)  in Part 2, the sub-central government entities whose procurement is covered by this Chapter;
(c)  in Part 3, all other entities whose procurement is covered by this Chapter;
(d)  in Part 4, the goods covered by this Chapter;
(e)  in Part 5, the services, other than construction services, covered by this Chapter;
(f)  in Part 6, the construction services covered by this Chapter; and
(g)  in Part 7, any General Notes.
5.   Where a procuring entity, in the context of covered procurement, requires persons not covered
under Annex III to procure in accordance with particular requirements, Article 122 shall apply
mutatis mutandis to such requirements.
                                            EU/KZ/en 153
 ---pagebreak--- Valuation
6.   In estimating the value of a procurement for the purpose of ascertaining whether it is a
covered procurement, a procuring entity shall:
(a)  neither divide a procurement into separate procurements nor select or use a particular
     valuation method for estimating the value of a procurement with the intention of totally or
     partially excluding it from the application of this Chapter; and
(b)  include the estimated maximum total value of the procurement over its entire duration,
     whether awarded to one or more suppliers, taking into account all forms of remuneration,
     including:
     (i)    premiums, fees, commissions and interest; and
     (ii)   where the procurement provides for the possibility of options, the total value of such
            options.
                                           EU/KZ/en 154
 ---pagebreak--- 7.    Where an individual requirement for a procurement results in the award of more than one
contract, or in the award of contracts in separate parts (hereinafter referred to as “recurring
contracts”), the calculation of the estimated maximum total value shall be based on:
(a)   the value of recurring contracts of the same type of good or service awarded during the
      preceding 12 months or the procuring entity’s preceding fiscal year, adjusted, where possible,
      to take into account anticipated changes in the quantity or value of the good or service being
      procured over the following 12 months; or
(b)   the estimated value of recurring contracts of the same type of good or service to be awarded
      during the 12 months following the initial contract award or the procuring entity’s fiscal year.
8.    In the case of procurement by lease, rental or hire purchase of goods or services, or
procurement for which a total price is not specified, the basis for valuation shall be:
(a)   in the case of a fixed-term contract:
      (i)    where the term of the contract is 12 months or less, the total estimated maximum value
             for its duration; or
                                             EU/KZ/en 155
 ---pagebreak---       (ii)  where the term of the contract exceeds 12 months, the total estimated maximum value,
            including any estimated residual value;
(b)   where the contract is for an indefinite period, the estimated monthly instalment multiplied
      by 48; and
(c)   where it is not certain whether the contract is to be a fixed-term contract, subparagraph (b) of
      this paragraph shall be used.
                                            ARTICLE 121
                                          General exceptions
Subject to the requirement that such measures are not applied in a manner that would constitute a
means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on
international trade, nothing in this Chapter shall be construed to prevent a Party from imposing or
enforcing measures:
(a)   necessary to protect public morals, order or safety;
                                            EU/KZ/en 156
 ---pagebreak--- (b)    necessary to protect human, animal or plant life or health;
(c)    necessary to protect intellectual property; or
(d)    relating to goods or services of persons with disabilities, philanthropic institutions or prison
       labour.
                                             ARTICLE 122
                                            General principles
Non-discrimination
1.     With respect to any measure regarding covered procurement, each Party, including its
procuring entities, shall accord unconditionally to the goods and services of the other Party and to
the suppliers of the other Party offering such goods or services, treatment no less favourable than
the treatment the Party, including its procuring entities, accords to its own goods, services and
locally established suppliers.
                                             EU/KZ/en 157
 ---pagebreak--- 2.     With respect to any measure regarding covered procurement, a Party, including its procuring
entities, shall not:
(a)    treat a locally established supplier less favourably than another locally established supplier on
       the basis of the degree of foreign affiliation or ownership; or
(b)    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.
Use of Electronic Means
3.     When conducting covered procurement by electronic means, a procuring entity shall:
(a)    ensure that the procurement is conducted using information technology systems and software,
       including those related to authentication and encryption of information, that are generally
       available and interoperable with other generally available information technology systems and
       software; and
(b)    maintain mechanisms that ensure the integrity of requests for participation and tenders,
       including establishment of the time of receipt and the prevention of inappropriate access.
                                              EU/KZ/en 158
 ---pagebreak--- Conduct of Procurement
4.    A procuring entity shall conduct covered procurement in a transparent and impartial manner
that:
(a)   is consistent with this Chapter, using methods such as open tendering, selective tendering,
      limited tendering and electronic auctions;
(b)   avoids conflicts of interest; and
(c)   prevents corrupt practices.
Rules of Origin
5.    For purposes of covered procurement, a Party shall not apply rules of origin to goods or
services imported from or supplied from the other Party that are different from the rules of origin
the Party applies at the same time in the normal course of trade to imports or supplies of the same
goods or services from the same Party.
                                            EU/KZ/en 159
 ---pagebreak--- Measures Not Specific to Procurement
6.    Paragraphs 1 and 2 shall not apply to: customs duties and charges of any kind imposed on, or
in connection with, importation; the method of levying such duties and charges; other import
regulations or formalities and measures affecting trade in services other than measures governing
covered procurement.
                                            ARTICLE 123
                                Information on the procurement system
1.    Each Party shall:
(a)   promptly publish any law, regulation, judicial decision, administrative ruling of general
      application, standard contract clause mandated by law or regulation and incorporated by
      reference in notices or tender documentation and procedure regarding covered procurement,
      and any modifications thereof, in an officially designated electronic or paper medium that is
      widely disseminated and remains readily accessible to the public; and
(b)   provide an explanation thereof to the other Party, on request.
                                            EU/KZ/en 160
 ---pagebreak--- 2.    Part 1 of Annex IV lists:
(a)   the electronic or paper media in which each Party publishes the information described in
      paragraph 1 of this Article;
(b)   the electronic or paper media in which each Party publishes the notices required by
      Articles 124, 126(7) and 133(2); and
(c)   the website address or addresses where each Party publishes its notices concerning awarded
      contracts pursuant to Article 133(2).
3.    Each Party shall promptly notify the Cooperation Committee of any modification to the
Party’s information listed in Part 1 of Annex IV. The Cooperation Committee shall adopt decisions
reflecting the modifications to Part 1 of Annex IV regularly.
                                            EU/KZ/en 161
 ---pagebreak---                                              ARTICLE 124
                                                 Notices
Notice of Intended Procurement
1.     For each covered procurement, a procuring entity shall publish a notice of intended
procurement in the appropriate paper or electronic medium listed in Part 2 of Annex IV, except in
the circumstances described in Article 130. Such medium shall be widely disseminated and such
notices shall remain readily accessible to the public, at least until expiration of the time-period
indicated in the notice. The notices shall, for procuring entities covered under Parts 1, 2 or 3 of
Annex III, be accessible by electronic means free of charge through a single point of access, for at
least any minimum period of time specified in Part 2 of Annex IV.
2.     Except as otherwise provided in this Chapter, each notice of intended procurement shall
include:
(a)    the name and address of the procuring entity and other information necessary to contact the
       procuring entity and obtain all relevant documents relating to the procurement, and their cost
       and terms of payment, if any;
                                             EU/KZ/en 162
 ---pagebreak--- (b) a description of the procurement, including the nature and the quantity of the goods or
    services to be procured or, where the quantity is not known, the estimated quantity;
(c) for recurring contracts, an estimate, if possible, of the timing of subsequent notices of
    intended procurement;
(d) a description of any options;
(e) the time frame for delivery of goods or services or the duration of the contract;
(f) the procurement method that will be used and whether it will involve negotiation or electronic
    auction;
(g) where applicable, the address and any final date for the submission of requests for
    participation in the procurement;
(h) the address and the final date for the submission of tenders;
(i) the language or languages in which tenders or requests for participation may be submitted, if
    they may be submitted in a language other than an official language of the Party of the
    procuring entity;
                                           EU/KZ/en 163
 ---pagebreak--- (j)   a list and brief description of any conditions for participation of suppliers, including any
      requirements for specific documents or certifications to be provided by suppliers in
      connection therewith, unless such requirements are included in tender documentation that is
      made available to all interested suppliers at the same time as the notice of intended
      procurement; and
(k)   where, pursuant to Article 126, a procuring entity intends to select a limited number of
      qualified suppliers to be invited to tender, the criteria that will be used to select them and,
      where applicable, any limitation on the number of suppliers that will be permitted to tender.
Summary Notice
3.    For each case of intended procurement, a procuring entity shall publish a summary notice that
is readily accessible, at the same time as the publication of the notice of intended procurement, in
English or French. The summary notice shall contain at least the following information:
(a)   the subject matter of the procurement;
                                             EU/KZ/en 164
 ---pagebreak--- (b)    the final date for the submission of tenders or, where applicable, any final date for the
       submission of requests for participation in the procurement or for inclusion on a multi-use list;
       and
(c)    the address from which documents relating to the procurement may be requested.
Notice of Planned Procurement
4.     Procuring entities are encouraged to publish in the appropriate paper or electronic medium
listed in Part 2 of Annex IV as early as possible in each fiscal year a notice regarding their future
procurement plans (hereinafter referred to as “notice of planned procurement”). The notice of
planned procurement should include the subject matter of the procurement and the planned date of
the publication of the notice of intended procurement.
5.     A procuring entity covered under Part 3 of Annex III may use a notice of planned
procurement as a notice of intended procurement provided that the notice of planned procurement
includes as much of the information referred to in paragraph 2 of this Article as is available to the
entity and a statement that interested suppliers should express their interest in the procurement to
the procuring entity.
                                              EU/KZ/en 165
 ---pagebreak---                                               ARTICLE 125
                                       Conditions for participation
1.    A procuring entity shall limit any conditions for participation in a procurement to those that
are essential to ensure that a supplier has the legal and financial capacities and the commercial and
technical abilities to undertake the relevant procurement.
2.    In establishing the conditions for participation, a procuring entity:
(a)   shall not impose the condition that, in order for a supplier to participate in a procurement, the
      supplier has previously been awarded one or more contracts by a procuring entity of a Party;
(b)   may require relevant prior experience where essential to meet the requirements of the
      procurement; and
(c)   shall not impose the condition that, in order for a supplier of a Party to participate in a
      procurement or be awarded a contract, the supplier has previously been awarded one or more
      contracts by a procuring entity of the other Party or that the supplier has prior experience in
      the territory of that Party, except when prior experience is essential to meet the requirements
      of the procurement.
                                              EU/KZ/en 166
 ---pagebreak--- 3.    In assessing whether a supplier satisfies the conditions for participation, a procuring entity:
(a)   shall evaluate the financial capacity and the commercial and technical abilities of a supplier
      on the basis of that supplier’s business activities both inside and outside the territory of the
      Party of the procuring entity; and
(b)   shall base its evaluation on the conditions that the procuring entity has specified in advance in
      notices or tender documentation.
4.    Where there is supporting evidence, a Party, including its procuring entities, may exclude a
supplier on grounds such as:
(a)   bankruptcy;
(b)   false declarations;
(c)   significant or persistent deficiencies in performance of any substantive requirement or
      obligation under a prior contract or contracts;
(d)   final judgments in respect of serious crimes or other serious offences;
                                             EU/KZ/en 167
 ---pagebreak--- (e)  professional misconduct or acts or omissions that adversely reflect on the commercial
     integrity of the supplier; or
(f)  failure to pay taxes.
                                            ARTICLE 126
                                      Qualification of suppliers
Registration Systems and Qualification Procedures
1.   A Party, including its procuring entities, may maintain a supplier registration system under
which interested suppliers are required to register and provide certain information.
2.   Each Party shall ensure that:
(a)  its procuring entities make efforts to minimise differences in their qualification procedures;
     and
                                            EU/KZ/en 168
 ---pagebreak--- (b)   where its procuring entities maintain registration systems, the entities make efforts to
      minimise differences in their registration systems.
3.    A Party, including its procuring entities, shall not adopt or apply any registration system or
qualification procedure with the purpose or the effect of creating unnecessary obstacles to the
participation of suppliers of the other Party in its procurement.
Selective Tendering
4.    Where a procuring entity intends to use selective tendering, the entity shall:
(a)   include in the notice of intended procurement at least the information specified in
      Article 124(2), subparagraphs (a), (b), (f), (g), (j) and (k) and invite suppliers to submit a
      request for participation; and
(b)   provide, by the commencement of the time-period for tendering, at least the information in
      Article 124(2), subparagraphs (c), (d), (e), (h) and (i) to the qualified suppliers that it notifies
      as specified in Article 128(3), subparagraph (b).
                                             EU/KZ/en 169
 ---pagebreak--- 5.    A procuring entity shall allow all qualified suppliers to participate in a particular procurement,
unless the procuring entity states in the notice of intended procurement any limitation on the
number of suppliers that will be permitted to tender and the criteria for selecting the limited number
of suppliers.
6.    Where the tender documentation is not made publicly available from the date of publication
of the notice referred to in paragraph 4, a procuring entity shall ensure that those documents are
made available at the same time to all the qualified suppliers selected in accordance with
paragraph 5.
Multi-Use Lists
7.    A procuring entity may maintain a multi-use list of suppliers, provided that a notice inviting
interested suppliers to apply for inclusion on the list is:
(a)   published annually; and
(b)   where published by electronic means, made available continuously,
in the appropriate medium listed in Part 2 of Annex IV.
                                             EU/KZ/en 170
 ---pagebreak--- 8.  The notice provided for in paragraph 7 shall include:
(a) a description of the goods or services, or categories thereof, for which the list may be used;
(b) the conditions for participation to be satisfied by suppliers for inclusion on the list and the
    methods that the procuring entity will use to verify that a supplier satisfies the conditions;
(c) the name and address of the procuring entity and other information necessary to contact the
    entity and obtain all relevant documents relating to the list;
(d) the period of validity of the list and the means for its renewal or termination, or where the
    period of validity is not provided, an indication of the method by which notice will be given
    of the termination of use of the list;
(e) an indication that the list may be used for procurement covered by this Chapter.
                                            EU/KZ/en 171
 ---pagebreak--- 9.     Notwithstanding paragraph 7, where a multi-use list will be valid for three years or less, a
procuring entity may publish the notice referred to in paragraph 7 only once, at the beginning of the
period of validity of the list, provided that the notice:
(a)    states the period of validity and that further notices will not be published; and
(b)    is published by electronic means and is made available continuously during the period of its
       validity.
10.    A procuring entity shall allow suppliers to apply at any time for inclusion on a multi-use list
and shall include on the list all qualified suppliers within a reasonably short time.
11.    Where a supplier that is not included on a multi-use list submits a request for participation in a
procurement based on a multi-use list and all required documents, within the time-period provided
for in Article 128(2), a procuring entity shall examine the request. The procuring entity shall not
exclude the supplier from consideration in respect of the procurement on the grounds that the entity
has insufficient time to examine the request, unless, in exceptional cases, due to the complexity of
the procurement, the entity is not able to complete the examination of the request within the
time-period allowed for the submission of tenders.
                                               EU/KZ/en 172
 ---pagebreak--- Entities covered under Part 3 of Annex III
12.    A procuring entity covered under Part 3 of Annex III may use a notice inviting suppliers to
apply for inclusion on a multi-use list as a notice of intended procurement, provided that:
(a)    the notice is published in accordance with paragraph 7 of this Article and includes the
       information required under paragraph 8 of this Article, as much of the information required
       under Article 124(2) as is available and a statement that it constitutes a notice of intended
       procurement or that only the suppliers on the multi-use list will receive further notices of
       procurement covered by the multi-use list; and
(b)    the entity promptly provides, to suppliers that have expressed an interest in a given
       procurement to the entity, sufficient information to permit them to assess their interest in the
       procurement, including all remaining information required in Article 124(2), to the extent
       such information is available.
13.    A procuring entity covered under Part 3 of Annex III may allow a supplier that has applied for
inclusion on a multi-use list in accordance with paragraph 10 of this Article to tender in a given
procurement, where there is sufficient time for the procuring entity to examine whether the supplier
satisfies the conditions for participation.
                                              EU/KZ/en 173
 ---pagebreak--- Information on Procuring Entity Decisions
14.   A procuring entity shall promptly inform any supplier that submits a request for participation
in a procurement or application for inclusion on a multi-use list of the procuring entity’s decision
with respect to the request or application.
15.   Where a procuring entity rejects a supplier’s request for participation in a procurement or
application for inclusion on a multi-use list, ceases to recognise a supplier as qualified, or removes a
supplier from a multi-use list, the entity shall promptly inform the supplier and, on request of the
supplier, promptly provide the supplier with a written explanation of the reasons for its decision.
                                             ARTICLE 127
                          Technical specifications and tender documentation
Technical Specifications
1.    A procuring entity shall not prepare, adopt or apply any technical specification or prescribe
any conformity assessment procedure with the purpose or the effect of creating unnecessary
obstacles to international trade.
                                             EU/KZ/en 174
 ---pagebreak--- The technical specifications must allow equal access of suppliers and must not have the effect of
creating unjustified obstacles to the opening of procurement markets to competition.
2.    In prescribing the technical specifications for the goods or services being procured, a
procuring entity shall, where appropriate:
(a)   set out the technical specification in terms of performance and functional requirements, rather
      than design or descriptive characteristics; and
(b)   base the technical specification on international standards, where such exist; otherwise, on
      national technical regulations, recognised national standards or building codes.
3.    Where design or descriptive characteristics are used in the technical specifications, a
procuring entity should indicate, where appropriate, that it will consider tenders of equivalent goods
or services that demonstrably fulfil the requirements of the procurement by including words such as
“or equivalent” in the tender documentation.
                                              EU/KZ/en 175
 ---pagebreak--- 4.    A procuring entity shall not prescribe technical specifications that require or refer to a
particular trademark or trade name, patent, copyright, design, type, specific origin, producer or
supplier, unless there is no other sufficiently precise or intelligible way of describing the
procurement requirements and provided that, in such cases, the entity includes words such as “or
equivalent” in the tender documentation.
5.    A procuring entity shall not seek or accept, in a manner that would have the effect of
precluding competition, advice that may be used in the preparation or adoption of any technical
specification for a specific procurement from a person that may have a commercial interest in the
procurement.
6.    For greater certainty, a Party, including its procuring entities, may, in accordance with this
Article, prepare, adopt or apply technical specifications to promote the conservation of natural
resources or protect the environment.
                                              EU/KZ/en 176
 ---pagebreak--- Tender Documentation
7.    A procuring entity shall make available to suppliers tender documentation that includes all
information necessary to permit suppliers to prepare and submit responsive tenders. Unless already
provided in the notice of intended procurement, such documentation shall include a complete
description of:
(a)   the procurement, including the nature and the quantity of the goods or services to be procured
      or, where the quantity is not known, the estimated quantity and any requirements to be
      fulfilled, including any technical specifications, conformity assessment certification, plans,
      drawings or instructional materials;
(b)   any conditions for participation of suppliers, including a list of information and documents
      that suppliers are required to submit in connection with the conditions for participation;
(c)   all evaluation criteria the entity will apply in the awarding of the contract, and, except where
      price is the sole criterion, the relative importance of such criteria;
(d)   where the procuring entity will conduct the procurement by electronic means, any
      authentication and encryption requirements or other requirements related to the submission of
      information by electronic means;
                                               EU/KZ/en 177
 ---pagebreak--- (e)   where the procuring entity will hold an electronic auction, the rules, including identification
      of the elements of the tender related to the evaluation criteria, on which the auction will be
      conducted;
(f)   where there will be a public opening of tenders, the date, time and place for the opening and,
      where appropriate, the persons authorised to be present;
(g)   any other terms or conditions, including terms of payment and any limitation on the means by
      which tenders may be submitted, such as whether on paper or by electronic means; and
(h)   any dates for the delivery of goods or the supply of services.
8.    In establishing any date for the delivery of goods or the supply of services being procured, a
procuring entity shall take into account such factors as the complexity of the procurement, the
extent of subcontracting anticipated and the realistic time required for production, de-stocking and
transport of goods from the point of supply or for supply of services.
9.    The evaluation criteria set out in the notice of intended procurement or tender documentation
may include, among others, price and other cost factors, quality, technical merit, environmental
characteristics and terms of delivery.
                                             EU/KZ/en 178
 ---pagebreak--- 10.   A procuring entity shall promptly:
(a)   make available tender documentation to ensure that interested suppliers have sufficient time
      to submit responsive tenders;
(b)   provide, on request, the tender documentation to any interested supplier; and
(c)   reply to any reasonable request for relevant information by any interested or participating
      supplier, provided that such information does not give that supplier an advantage over other
      suppliers.
Modifications
11.   Where, prior to the award of a contract, a procuring entity modifies the criteria or
requirements set out in the notice of intended procurement or tender documentation provided to
participating suppliers, or amends or reissues a notice or tender documentation, it shall transmit in
writing all such modifications or amended or re-issued notice or tender documentation:
(a)   to all suppliers that are participating at the time of the modification, amendment or
      re-issuance, where such suppliers are known to the entity, and in all other cases, in the same
      manner as the original information was made available; and
                                              EU/KZ/en 179
 ---pagebreak--- (b)   in adequate time to allow such suppliers to modify and re-submit amended tenders, as
      appropriate.
                                            ARTICLE 128
                                             Time periods
General
1.    A procuring entity shall, consistent with its own reasonable needs, provide sufficient time for
suppliers to prepare and submit requests for participation and responsive tenders, taking into
account such factors as:
(a)   the nature and complexity of the procurement;
(b)   the extent of subcontracting anticipated; and
(c)   the time necessary for transmitting tenders by non-electronic means from foreign as well as
      domestic points where electronic means are not used.
                                            EU/KZ/en 180
 ---pagebreak--- Such time periods, including any extension of the time periods, shall be the same for all interested
or participating suppliers.
Deadlines
2.     A procuring entity that uses selective tendering shall establish that the final date for the
submission of requests for participation shall not, in principle, be less than 25 days from the date of
publication of the notice of intended procurement. Where a state of urgency duly substantiated by
the procuring entity renders this time-period impracticable, the time-period may be reduced to not
less than 10 days.
3.     Except as provided for in paragraphs 4, 5, 7 and 8 a procuring entity shall establish that the
final date for the submission of tenders shall not be less than 40 days from the date on which:
(a)    in the case of open tendering, the notice of intended procurement is published; or
(b)    in the case of selective tendering, the entity notifies suppliers that they will be invited to
       submit tenders, whether or not it uses a multi-use list.
                                              EU/KZ/en 181
 ---pagebreak--- 4.   A procuring entity may reduce the time-period for tendering established in accordance with
paragraph 3 to not less than 10 days where:
(a)  the procuring entity has published a notice of planned procurement as described in
     Article 124(4) at least 40 days and not more than 12 months in advance of the publication of
     the notice of intended procurement, and the notice of planned procurement contains:
     (i)   a description of the procurement;
     (ii)  the approximate final dates for the submission of tenders or requests for participation;
     (iii) a statement that interested suppliers should express their interest in the procurement to
           the procuring entity;
     (iv) the address from which documents relating to the procurement may be obtained; and
     (v)   as much of the information that is required for the notice of intended procurement under
           Article 124(2), as is available;
                                            EU/KZ/en 182
 ---pagebreak--- (b)   the procuring entity, for procurements of a recurring nature, indicates in an initial notice of
      intended procurement that subsequent notices will provide time periods for tendering based
      on this paragraph; or
(c)   a state of urgency duly substantiated by the procuring entity renders the time-period for
      tendering established in accordance with paragraph 3 impracticable.
5.    A procuring entity may reduce the time-period for tendering established in accordance with
paragraph 3 by seven days for each one of the following circumstances:
(a)   the notice of intended procurement is published by electronic means;
(b)   all the tender documentation is made available by electronic means from the date of the
      publication of the notice of intended procurement; and
(c)   the entity accepts tenders by electronic means.
6.    The use of paragraph 5, in conjunction with paragraph 4, shall in no case result in the
reduction of the time-period for tendering established in accordance with paragraph 3 to less
than 7 days from the date on which the notice of intended procurement is published.
                                            EU/KZ/en 183
 ---pagebreak--- 7.    Notwithstanding any other provision in this Article, where a procuring entity purchases
commercial goods or services, or any combination thereof, it may reduce the time-period for
tendering established in accordance with paragraph 3 to not less than 13 days, provided that it
publishes by electronic means, at the same time, both the notice of intended procurement and the
tender documentation. In addition, where the entity accepts tenders for commercial goods or
services by electronic means, it may reduce the time-period established in accordance with
paragraph 3 to not less than 7 days.
8.    Where a procuring entity covered under Part 3 of Annex III has selected all or a limited
number of qualified suppliers, the time-period for tendering may be fixed by mutual agreement
between the procuring entity and the selected suppliers. In the absence of agreement, the period
shall not be less than 7 days.
                                           EU/KZ/en 184
 ---pagebreak---                                            ARTICLE 129
                                            Negotiation
1.  A Party may provide for its procuring entities to conduct negotiations:
(a) where the entity has indicated its intent to conduct negotiations in the notice of intended
    procurement required under Article 124(2); or
(b) where it appears from the evaluation that no tender is obviously the most advantageous in
    terms of the specific evaluation criteria set out in the notice of intended procurement or tender
    documentation.
2.  A procuring entity shall:
(a) ensure that any elimination of suppliers participating in negotiations is carried out in
    accordance with the evaluation criteria set out in the notice of intended procurement or tender
    documentation; and
(b) where negotiations are concluded, provide a common deadline for the remaining participating
    suppliers to submit any new or revised tenders.
                                           EU/KZ/en 185
 ---pagebreak---                                             ARTICLE 130
                                           Limited tendering
1.    Provided that it does not use this provision for the purpose of avoiding competition among
suppliers or in a manner that discriminates against suppliers of the other Party or protects domestic
suppliers, a procuring entity may use limited tendering and may choose not to apply Articles 124,
125, 126, 127 (paragraphs 7 to 11), 128, 129, 131 and 132 only under any of the following
circumstances:
(a)   provided that the requirements of the tender documentation are not substantially modified,
      where:
      (i)    no tenders were submitted or no suppliers requested participation;
      (ii)   no tenders that conform to the essential requirements of the tender documentation were
             submitted;
      (iii) no suppliers satisfied the conditions for participation; or
      (iv) the tenders submitted have been collusive;
                                            EU/KZ/en 186
 ---pagebreak--- (b) where the goods or services can be supplied only by a particular supplier and no reasonable
    alternative or substitute goods or services exist for any of the following reasons:
    (i)   the requirement is for a work of art;
    (ii)  the protection of patents, copyrights or other exclusive rights; or
    (iii) due to an absence of competition for technical reasons;
(c) for additional deliveries by the original supplier of goods or services that were not included in
    the initial procurement where a change of supplier for such additional goods or services:
    (i)   cannot be made for economic or technical reasons such as requirements of
          inter-changeability or interoperability with existing equipment, software, services or
          installations procured under the initial procurement; and
    (ii)  would cause significant inconvenience or substantial duplication of costs for the
          procuring entity;
                                           EU/KZ/en 187
 ---pagebreak--- (d) insofar as is strictly necessary where, for reasons of extreme urgency brought about by events
    unforeseeable by the procuring entity, the goods or services could not be obtained in time
    using open tendering or selective tendering;
(e) for goods purchased on a commodity market;
(f) where a procuring entity procures a prototype or a first good or service that is developed at its
    request in the course of, and for, a particular contract for research, experiment, study or
    original development. Original development of a first good or service may include limited
    production or supply in order to incorporate the results of field testing and to demonstrate that
    the good or service is suitable for production or supply in quantity to acceptable quality
    standards, but does not include quantity production or supply to establish commercial viability
    or to recover research and development costs;
(g) for purchases made under exceptionally advantageous conditions that only arise in the very
    short term in the case of unusual disposals such as those arising from liquidation, receivership
    or bankruptcy, but not for routine purchases from regular suppliers; or
                                           EU/KZ/en 188
 ---pagebreak--- (h)   where a contract is awarded to a winner of a design contest provided that:
      (i)   the contest has been organised in a manner that is consistent with the principles of this
            Chapter, in particular relating to the publication of a notice of intended procurement;
            and
      (ii)  the participants are judged by an independent jury with a view to a design contract
            being awarded to a winner.
2.    A procuring entity shall prepare a report in writing on each contract awarded under
paragraph 1. The report shall include the name of the procuring entity, the value and kind of goods
or services procured and a statement indicating the circumstances and conditions described in
paragraph 1 that justified the use of limited tendering.
                                             ARTICLE 131
                                           Electronic auctions
1.    Procuring entities may use electronic auctions.
                                             EU/KZ/en 189
 ---pagebreak--- 2.    In open, limited or negotiated procedures, a procuring entity may decide that the award of a
contract shall be preceded by an electronic auction when the contract specifications can be
established with precision.
The electronic auction shall be based:
–     either solely on prices when the contract is awarded to the lowest price,
–     or on prices and/or on the new values of the features of the tenders indicated in the
      specification when the contract is awarded to the most advantageous tender.
3.    A procuring entity which decides to hold an electronic auction shall state that fact in the
notice of intended procurement.
The specifications shall include, inter alia, the following details:
(a)   the features, the values for which will be the subject of electronic auction, provided that such
      features are quantifiable and can be expressed in figures or percentages;
(b)   any limits on the values which may be submitted, as they result from the specifications
      relating to the subject of the procurement;
                                             EU/KZ/en 190
 ---pagebreak--- (c)   the information which will be made available to tenderers in the course of the electronic
      auction and, where appropriate, when it will be made available to them;
(d)   the relevant information concerning the electronic auction process;
(e)   the conditions under which the tenderers will be able to bid and, in particular, the minimum
      differences which will, where appropriate, be required when bidding;
(f)   the relevant information concerning the electronic equipment used and the arrangements and
      technical specifications for connection.
4.    Before proceeding with an electronic auction, a procuring entity shall make a full initial
evaluation of the tenders in accordance with the award criterion or criteria set and with the
weighting fixed for them. All tenderers who have submitted admissible tenders shall be invited
simultaneously by electronic means to submit new prices and/or new values; the invitation shall
contain all relevant information concerning individual connection to the electronic equipment being
used and shall state the date and time of the start of the electronic auction. The electronic auction
may take place in a number of successive phases. The electronic auction may not start sooner than
two working days after the date on which invitations are sent out.
                                            EU/KZ/en 191
 ---pagebreak--- 5.     When the contract is to be awarded on the basis of the most advantageous tender, the
invitation shall be accompanied by the outcome of a full evaluation of the relevant tenderer. The
invitation shall also state the mathematical formula to be used in the electronic auction to determine
automatic re-rankings on the basis of the new prices and/or new values submitted. That formula
shall incorporate the weighting of all the criteria fixed to determine the most advantageous tender,
as indicated in the contract notice or in the specifications; for that purpose, any ranges shall,
however, be reduced beforehand to a specified value.
6.     Throughout each phase of an electronic auction the contracting authorities shall
instantaneously communicate to all tenderers at least sufficient information to enable them to
ascertain their relative rankings at any moment. They may also communicate other information
concerning other prices or values submitted, provided that that is stated in the specifications. They
may also at any time announce the number of participants in that phase of the auction. In no case,
however, may they disclose the identities of the tenderers during any phase of an electronic auction.
7.     A procuring entity shall close an electronic auction in one or more of the following manners:
(a)    in the invitation to take part in the auction it shall indicate the date and time fixed in advance;
                                               EU/KZ/en 192
 ---pagebreak--- (b)   when it receives no more new prices or new values which meet the requirements concerning
      minimum differences. In that event, the procuring entity shall state in the invitation to take
      part in the auction the time which it will allow to elapse after receiving the last submission
      before it closes the electronic auction;
(c)   when the number of phases in the auction, fixed in the invitation to take part in the auction,
      has been completed.
8. When the procuring entity has decided to close an electronic auction in accordance with
subparagraph (c) of paragraph 7, possibly in combination with the arrangements laid down in
subparagraph (b) of paragraph 7, the invitation to take part in the auction shall indicate the timetable
for each phase of the auction.
9.    After closing an electronic auction a procuring entity shall award the contract in accordance
with Article 132 on the basis of the results of the electronic auction.
10. Procuring entities may not have improper recourse to electronic auctions nor may they use them
in such a way as to prevent, restrict or distort competition or to change the subject matter of the
contract, as put up for tender in the published notice of intended procurement and defined in the
specification.
                                             EU/KZ/en 193
 ---pagebreak---                                              ARTICLE 132
                           Treatment of tenders and awarding of contracts
Treatment of Tenders
1.    A procuring entity shall receive, open and treat all tenders under procedures that guarantee the
fairness and impartiality of the procurement process, and the confidentiality of tenders.
2.    A procuring entity shall not penalise any supplier whose tender is received after the time
specified for receiving tenders if the delay is due solely to mishandling on the part of the procuring
entity.
3.    Where a procuring entity provides a supplier with an opportunity to correct unintentional
errors of form between the opening of tenders and the awarding of the contract, the procuring entity
shall provide the same opportunity to all participating suppliers.
                                             EU/KZ/en 194
 ---pagebreak--- Awarding of Contracts
4.     To be considered for an award, a tender shall be submitted in writing and shall, at the time of
opening, comply with the essential requirements set out in the notices and tender documentation
and be from a supplier that satisfies the conditions for participation.
5.     Unless a procuring entity determines that it is not in the public interest to award a contract, the
entity shall award the contract to the supplier that the entity has determined to be capable of
fulfilling the terms of the contract and that, based solely on the evaluation criteria specified in the
notices and tender documentation, has submitted:
(a)    the most advantageous tender; or
(b)    where price is the sole criterion, the lowest price.
6.     Where a procuring entity receives a tender with a price that is abnormally lower than the
prices in other tenders submitted, it may verify with the supplier that it satisfies the conditions for
participation and is capable of fulfilling the terms of the contract.
7.     A procuring entity shall not use options, cancel a procurement or modify awarded contracts in
a manner that circumvents the obligations under this Chapter.
                                               EU/KZ/en 195
 ---pagebreak---                                              ARTICLE 133
                               Transparency of procurement information
Information Provided to Suppliers
1.    A procuring entity shall promptly inform participating suppliers of the entity’s contract award
decisions and, at the request of a supplier, shall do so in writing. Subject to paragraphs 2 and 3 of
Article 134, a procuring entity shall, on request, provide an unsuccessful supplier with an
explanation of the reasons why the entity did not select its tender and the relative advantages of the
successful supplier’s tender.
Publication of Award Information
2.    Not later than 72 days after the award of each contract covered by this Chapter, a procuring
entity shall publish a notice in the appropriate paper or electronic medium listed in Part 2 of Annex
IV. Where the entity publishes the notice only in an electronic medium, the information shall
remain readily accessible for a reasonable period of time. The notice shall include at least the
following information:
(a)   a description of the goods or services procured;
                                             EU/KZ/en 196
 ---pagebreak--- (b) the name and address of the procuring entity;
(c) the name and address of the successful supplier;
(d) the value of the successful tender or the highest and lowest offers taken into account in the
    award of the contract;
(e) the date of award; and
(f) the type of procurement method used, and in cases where limited tendering was used in
    accordance with Article 130, a description of the circumstances justifying the use of limited
    tendering.
                                          EU/KZ/en 197
 ---pagebreak--- Maintenance of Documentation, Reports and Electronic Traceability
3.    Each procuring entity shall, for a period of at least three years from the date it awards a
contract, maintain:
(a)   the documentation and reports of tendering procedures and contract awards relating to
      covered procurement, including the reports required under Article 130; and
(b)   data that ensure the appropriate traceability of the conduct of covered procurement by
      electronic means.
                                            EU/KZ/en 198
 ---pagebreak---                                             ARTICLE 134
                                       Disclosure of information
Provision of Information to Parties
1.    On request of the other Party, a Party shall provide promptly any information necessary to
determine whether a procurement was conducted fairly, impartially and in accordance with this
Chapter, including information on the characteristics and relative advantages of the successful
tender. In cases where release of the information would prejudice competition in future tenders, the
Party that receives the information shall not disclose it to any supplier, except after consulting with,
and obtaining the agreement of, the Party that provided the information.
Non-Disclosure of Information
2.    Notwithstanding any other provision of this Chapter, a Party, including its procuring entities,
shall not provide to any particular supplier information that might prejudice fair competition
between suppliers.
                                             EU/KZ/en 199
 ---pagebreak--- 3.   Nothing in this Chapter shall be construed to require a Party, including its procuring entities,
authorities and review bodies, to disclose confidential information where disclosure:
(a)  would impede law enforcement;
(b)  might prejudice fair competition between suppliers;
(c)  would prejudice the legitimate commercial interests of particular persons, including the
     protection of intellectual property; or
(d)  would otherwise be contrary to the public interest.
                                            EU/KZ/en 200
 ---pagebreak---                                            ARTICLE 135
                                     Domestic review procedures
1.   Each Party shall provide a timely, effective, transparent and non-discriminatory
administrative or judicial review procedure through which a supplier may, in the context of a
covered procurement, in which that supplier has, or has had, an interest, challenge:
(a)  a breach of this Chapter; or
(b)  where the supplier does not have a right to challenge directly a breach of the Chapter under
     the domestic law of a Party, a failure to comply with a Party’s measures implementing this
     Chapter.
2.   The procedural rules for all challenges pursuant to paragraph 1 shall be in writing and made
generally available.
                                           EU/KZ/en 201
 ---pagebreak--- 3.    In the event of a complaint by a supplier, arising in the context of covered procurement in
which the supplier has, or has had, an interest, that there has been a breach or a failure as referred to
in paragraph 1, the Party of the procuring entity conducting the procurement shall encourage the
entity and the supplier to seek resolution of the complaint through consultations. The entity shall
accord impartial and timely consideration to any such complaint in a manner that is not prejudicial
to the supplier’s participation in ongoing or future procurement or its right to seek corrective
measures under the administrative or judicial review procedure.
4.    Each supplier shall be allowed a sufficient period of time to prepare and submit a challenge,
which in no case shall be less than 10 days from the time when the basis of the challenge became
known or reasonably should have become known to the supplier.
5.    Each Party shall establish or designate at least one impartial administrative or judicial
authority that is independent of its procuring entities to receive and review a challenge by a supplier
arising in the context of a covered procurement.
6.    Where a body other than an authority referred to in paragraph 5 initially reviews a challenge,
the Party shall ensure that the supplier may appeal the initial decision to an impartial administrative
or judicial authority that is independent of the procuring entity whose procurement is the subject of
the challenge.
                                             EU/KZ/en 202
 ---pagebreak--- 7.    Each Party shall ensure that a review body that is not a court shall have its decision subject to
judicial review or have procedures that provide that:
(a)   the procuring entity shall respond in writing to the challenge and disclose all relevant
      documents to the review body;
(b)   the participants to the proceedings (hereinafter referred to as “participants”) shall have the
      right to be heard prior to a decision of the review body being made on the challenge;
(c)   the participants shall have the right to be represented and accompanied;
(d)   the participants shall have access to all proceedings;
(e)   the participants shall have the right to request that the proceedings take place in public and
      that witnesses may be presented; and
(f)   the review body shall make its decisions or recommendations in a timely fashion, in writing,
      and shall include an explanation of the basis for each decision or recommendation.
                                             EU/KZ/en 203
 ---pagebreak--- 8.    Each Party shall adopt or maintain procedures that provide for:
(a)   rapid interim measures to preserve the supplier’s opportunity to participate in the
      procurement; and
(b)   where a review body has determined that there has been a breach or a failure as referred to in
      paragraph 1, corrective action or compensation for the loss or damages suffered, which may
      be limited to either the costs for the preparation of the tender or the costs relating to the
      challenge, or both.
9.    The rapid interim measures referred to in subparagraph (a) of paragraph 8 may result in
suspension of the procurement process. The procedures referred to in paragraph 8 may provide that
overriding adverse consequences for the interests concerned, including the public interest, may be
taken into account when deciding whether such measures should be applied. Just cause for not
acting shall be provided in writing.
                                              EU/KZ/en 204
 ---pagebreak---                                              ARTICLE 136
                             Modifications and Rectifications to Coverage
1.    A Party may propose a modification or rectification of the elements in Annex III which relate
to that Party.
Modifications
2.    When a Party proposes a modification, that Party shall:
(a)   notify the other Party in writing; and
(b)   include in the notification a proposal for appropriate compensatory adjustments to the other
      Party to maintain a level of coverage comparable to that existing prior to the modification.
                                             EU/KZ/en 205
 ---pagebreak--- 3.    Notwithstanding subparagraph (b) of paragraph 2, a Party need not provide compensatory
adjustments if:
(a)   the modification in question is negligible in its effect; or
(b)   the modification covers an entity over which the Party has effectively eliminated its control or
      influence.
4.    The other Party shall be deemed to have accepted the modification, including for the purposes
of Chapter 14 (Dispute Settlement) of this Title, unless it objects in writing within 45 days of
receipt of the notification referred to in subparagraph (a) of paragraph 2 that:
(a)   an adjustment proposed under subparagraph (b) of paragraph 2 is adequate to maintain a
      comparable level of mutually agreed coverage;
(b)   the modification is negligible in its effect under subparagraph (a) of paragraph 3; or
(c)   the modification covers an entity over which the Party has effectively eliminated its control or
      influence under subparagraph (b) of paragraph 3.
                                              EU/KZ/en 206
 ---pagebreak--- Rectifications
5.    The following changes to Parts 1 to 3 of Annex III shall be considered a rectification,
provided that they do not affect the mutually agreed coverage provided for in this Chapter:
(a)   a change in the name of an entity;
(b)   a merger of two or more entities listed within the same Part of Annex III; and
(c)   the separation of an entity into two or more entities, provided that all new entities are added to
      the same Part of Annex III as the original entity.
6.    The Party proposing a rectification shall notify the other Party every two years, following the
date on which this Title starts applying.1
1
      The European Union shall be deemed to have complied with this obligation if it notifies any
      rectifications to the Republic of Kazakhstan in parallel to the cycle of notifications in the
      framework of the WTO Agreement on Government Procurement.
                                            EU/KZ/en 207
 ---pagebreak--- 7.    A Party may notify the other Party of an objection to a proposed rectification within 45 days
from having received the notification referred to in paragraph 6. Where a Party submits an
objection, it shall set out the reasons why it believes the proposed rectification is not a change
provided for in paragraph 5, and describe the effect of the proposed rectification on the mutually
agreed coverage provided for in the Agreement. If no such objection is submitted in writing
within 45 days after having received the notification, the Party shall be deemed to have agreed to
the proposed rectification.
The Cooperation Committee
8.    If no objection is submitted regarding a proposed modification or rectification within the
period provided for in paragraphs 4 and 7, the Cooperation Committee shall amend Annex III to
reflect any such modification or rectification. The modification or rectification shall be effective
from the day following the date of expiry of the period referred to in paragraphs 4 and 7.
9.    If an objection to a proposed modification or rectification has been submitted, the
Cooperation Committee shall discuss the matter. The Cooperation Committee may decide to
approve a modification or rectification and amend Annex III accordingly.
                                             EU/KZ/en 208
 ---pagebreak---                                             ARTICLE 137
                                          Transitional period
This Chapter shall start applying five years after the date on which this Title starts applying. For the
goods listed in Part 4 of Annex III and for the services covered under Part 6 of Annex III, this
Chapter shall start applying eight years after the date on which this Title starts applying.
                                            EU/KZ/en 209
 ---pagebreak---                                               CHAPTER 9
                                 RAW MATERIALS AND ENERGY
                                             ARTICLE 138
                                               Definitions
For the purposes of this Chapter:
(a)   “raw materials” means substances used in the manufacture of industrial products, excluding
      energy goods, processed fishery products or agricultural products, but including natural
      rubber, raw hides and skins, wood and wood pulp, silk, wool, cotton and other vegetable
      textile inputs;
(b)   “energy goods” means, based on the Harmonised System of the Customs Co-operation
      Council and the Combined Nomenclature of the European Communities, natural gas,
      liquefied natural gas, liquefied petroleum gas (LPG) (HS 27.11), electricity (HS 27.16), crude
      oil and oil products (HS 27.09-27.10 and 27.13-27.15) and coal and other solid fuels
      (HS 27.01-27.04);
                                             EU/KZ/en 210
 ---pagebreak--- (c) “partnership” means any legal entity which is a commercial organisation under the
    jurisdiction or control of either Party such as, and not limited to a corporation, trust,
    partnership, joint venture, association;
(d) “service supplier” means a service supplier as defined in Article 40(q).
(e) “measure” means a measure as defined in Article 40(a);
(f) “transport” means transmission and distribution of energy goods through the transmission
    pipelines for oil and oil products and high-pressure natural gas, high-voltage electricity
    transmission grids and lines, railways, roadways and other facilities handling the transport of
    energy goods;
(g) “unauthorised taking” means any activity consisting of unlawful taking of energy goods from
    the transmission pipelines for oil and oil products and high-pressure natural gas, high-voltage
    electricity transmission grids and lines, railways, roadways and other facilities handling the
    transport of energy goods;
                                           EU/KZ/en 211
 ---pagebreak--- (h) “emergency situation” means a situation causing a significant disruption or a physical
    interruption of supply of natural gas, oil or electric energy between the Republic of
    Kazakhstan and the European Union, including supply transiting through third countries or a
    situation of an exceptionally high demand for energy goods within the European Union or the
    Republic of Kazakhstan in which market measures are not sufficient and non-market
    measures have to be additionally introduced;
(i) “local content requirement” means (i) with respect to goods, a requirement for an enterprise to
    purchase or use goods of domestic origin or from a domestic source, whether specified in
    terms of particular products, in terms of volume or value of products, or in terms of a
    proportion of volume or value of its local production; (ii) with respect to services, a
    requirement which restricts the choice of the service supplier or the service supplied to the
    detriment of services or service suppliers of the other Party;
(j) “state owned enterprise” means any enterprise involved in a commercial activity over which a
    Party at central or sub-central level directly or indirectly owns more than 50 % of the
    enterprise’s subscribed capital or of the votes attached to the shares issued by the enterprise;
(k) “juridical person” means a juridical person as defined in Article 40(d);
                                           EU/KZ/en 212
 ---pagebreak--- (l)   “juridical person of a Party” means a juridical person of a Party as defined in Article 40(e).
                                            ARTICLE 139
                                            Price regulation
1.    The Parties aim that the price for supply of raw materials or energy goods for industrial users,
if regulated by the Government, should recover costs and provide for reasonable profit.
2.    If the price for raw materials or energy goods sold on the domestic market differs from the
export price for the same product, the exporting Party shall, upon request of the other Party, provide
information on such difference, excluding transportation costs and export taxes.
                                            EU/KZ/en 213
 ---pagebreak---                                              ARTICLE 140
                                    Trading and export monopolies
The Parties shall not maintain or establish a trading or export monopoly for raw materials or energy
goods except when a Party exercises its priority (pre-emption) right to purchase raw and dry gas and
gold.
                                             ARTICLE 141
                   Access and rights to prospect, explore and produce hydrocarbons
                                       (crude oil and natural gas)
1.    Nothing in this Agreement shall affect the full sovereignty of states in accordance with
international law over hydrocarbon resources located in their territory and their inland, archipelagic
and territorial waters as well as sovereign rights for the purposes of exploring and exploiting
hydrocarbon resources located in their Exclusive Economic Zones and continental shelf.
                                             EU/KZ/en 214
 ---pagebreak--- 2.     States retain the right to determine the areas within their territory, inland, archipelagic and
territorial waters, Exclusive Economic Zones and continental shelf to be made available for the
exercise of the activities of prospecting, exploring for and producing hydrocarbons.
3.     Whenever a sovereign decision of a state described in paragraph 2 is taken, each Party shall
ensure that the enterprises of the other Party are not discriminated as regards the access and exercise
of the rights to prospect, explore for and produce hydrocarbons, provided the enterprise in question
is established as a juridical person in the territory of the host Party granting the access.
4.     Each Party may require an enterprise, which has been granted an authorisation for the exercise
of the activities of prospecting, exploring for and producing hydrocarbons, to pay a financial
contribution or a contribution in hydrocarbons.
5.     The Parties shall take the necessary measures to ensure that licences or other authorisations,
through which an enterprise is entitled to exercise the right to prospect or explore for or produce
hydrocarbons, are granted following a published procedure or an invitation to potentially interested
applicants of the Parties to submit applications by means of a notice. The notice shall specify the
type of licence or other authorisation, the relevant geographical area and the proposed date or
time-limit for granting a licence or other forms of authorisation.
                                              EU/KZ/en 215
 ---pagebreak--- 6.     Paragraphs 3 to 5 are without prejudice to the right of a state owned enterprise to obtain
access and rights to prospect, explore for and produce hydrocarbons by means of direct negotiations
with its Party. When such state owned enterprise decides to transfer fully or partially its right to
prospect, explore for and produce hydrocarbons, the obligations stipulated in paragraphs 3 and 5
shall apply.
7.     As to the licensing conditions and the licensing authorisation procedure, Article 53 shall also
apply.
                                             ARTICLE 142
                     Conditions for investment in energy goods and raw materials
In order to foster investment in the activities of prospecting, exploring for, extracting and mining of
raw materials and energy goods, neither Party shall:
(a)    maintain or adopt measures providing for local content requirements affecting the other
       Party’s products, service suppliers, investors or investments except as otherwise provided for
       in the Protocol on the Accession of the Republic of Kazakhstan to the WTO and the GATS
       schedules of specific commitments of the European Union and its Member States;
                                              EU/KZ/en 216
 ---pagebreak--- (b)   maintain or adopt measures whereby an enterprise from the other Party is obliged to transfer
      or to share intellectual property rights in order to sell products, services or to invest on that
      Party’s territory. The Parties are not precluded from negotiating contracts with investors
      seeking rights to prospect, explore for, extract and mine raw materials and energy goods for
      such transfers on a voluntary basis, provided that they are made under market conditions and
      at a market price.
                                             ARTICLE 143
                                                  Transit
1.    The Parties shall take all necessary measures to facilitate the transit of energy goods,
consistent with the principle of freedom of transit, and in accordance with Articles 7.1 and 7.3 of
the Energy Charter Treaty.
2.    Each Party shall prohibit the unauthorized taking of raw materials and energy goods transited
or transported through its territory by any entity subject to its control or jurisdiction and shall take
all appropriate measures to address such an unauthorised taking.
                                             EU/KZ/en 217
 ---pagebreak---                                             ARTICLE 144
                                             Interruption
1.    Each Party shall take all possible measures to ensure that operators of main-line energy transit
or transport pipelines and grids:
(a)   minimise the risk of accidental interruption, reduction or stoppage of transit and/or transport;
(b)   expeditiously restore the normal operation of such transit or transport, which has been
      accidentally interrupted, reduced or stopped.
                                            EU/KZ/en 218
 ---pagebreak--- 2.    A Party through the territory of which the energy goods are in transit, transport, receipt and
storage as part of the transport/transit route, shall not, in the event of a dispute over any matter
involving the Parties or one or more entities subject to the control or the jurisdiction of a Party,
interrupt or reduce, or permit any entity subject to its control or jurisdiction to interrupt or reduce,
the existing transit, transport, receipt and storage as part of the transport/transit route of energy
goods, except where this is specifically provided for in a contract or other agreement governing
such transit, transport, receipt and storage as part of the transport/transit route, prior to the
conclusion of a dispute resolution procedure under the relevant contract or the dispute settlement
procedure set out in Chapter 14 of this Title concerning emergency situations defined in
Article 138(h).
3.    A Party shall not be held liable for an interruption or reduction pursuant to this Article in
force majeure situations or where that Party is unable to supply or to transit energy goods as a result
of actions attributable to a third country or an entity under the control or the jurisdiction of a third
country.
                                              EU/KZ/en 219
 ---pagebreak---                                               ARTICLE 145
                    Access to high-voltage electric energy transmission grids and lines
1.     Each Party shall provide the enterprises of the other Party established as juridical persons in
the territory of the Party granting the access, a non-discriminatory access to high-voltage electric
energy transmission grids and lines, which are partly or fully owned and regulated by the Party
granting the access within the available capacities of such grids and lines. The access shall be
allocated in a fair and equitable manner.
2.     When applying measures relating to such transmission grids and lines, the Party shall ensure
that the following principles are respected:
(i)    all legal and regulatory measures on access and the transportation tariffs are fully transparent;
(ii)   the measures do not discriminate with respect to the origin of the electricity production within
       its territory and with respect to the destination of the electricity; and
(iii) the application of non-discriminatory transportation tariffs with respect to enterprises of the
       European Union and the Republic of Kazakhstan.
                                               EU/KZ/en 220
 ---pagebreak---                                               ARTICLE 146
                              Regulatory authorities for electricity and gas
1.    The Parties shall ensure that regulatory authorities are designated and empowered by the State
to regulate the markets for electricity and gas on their respective territories. These regulatory
authorities shall be legally distinct and functionally independent from any other public authorities or
market participants.
2.    The decisions of and the procedures used by a regulatory authority shall be impartial with
respect to all market participants.
3.    A market participant affected by any decision of a regulatory authority shall have the right to
appeal against that decision to an appeal body. If the appeal body is not independent of the parties
involved or is not judicial in character, the decisions of the appeal body shall be subject to a review
by an impartial and independent judicial authority. The decisions of the appeal body and the judicial
authority shall provide reasons in writing. The Parties shall ensure that the final decision of the
appeal body or the judicial authority, whichever decides last, is enforced effectively.
                                              EU/KZ/en 221
 ---pagebreak---                                              ARTICLE 147
                                        Renewable energy sector
1.    This Article shall apply to measures which may affect trade and investment between the
Parties related to the generation of energy from renewable non-fossil sources, inter alia, wind, solar
and hydropower, but not to the products from which such energy is generated.
2.    Each Party shall:
(a)   not maintain or adopt measures requiring the formation of partnerships with local companies,
      unless such partnerships are deemed necessary for technical reasons and the Party maintaining
      or adopting such measures can demonstrate such technical reasons upon request by the other
      Party;
(b)   ensure that any rules concerning authorisation, certification and licensing procedures, if
      applicable, in particular with regard to equipment, plants and associated transmission network
      infrastructures, are objective, transparent, non-arbitrary and do not discriminate against
      applicants from the other Party;
                                             EU/KZ/en 222
 ---pagebreak--- (c) ensure that administrative charges in renewable energy sector, such as those paid by
    consumers, planners, architects, builders, equipment installers and suppliers, are transparent
    and limited in amount to the approximate cost of services rendered;
(d) ensure that the importation and the use of goods originating in the other Party, or the
    provision of goods by the other Party’s suppliers, are subject to the provisions of Chapter 1 of
    this Title;
(e) ensure that provision of services by the suppliers of the other Party are subject to Article 53;
(f) ensure that the terms, conditions and procedures for the connection and access to electric
    energy transmission grids are transparent and do not discriminate against suppliers of the
    other Party or against electric energy from renewable sources; the Parties shall ensure that
    appropriate grid and market-related measures are taken to minimise the curtailment
    (limitations) of electric energy produced from renewable energy sources;
                                          EU/KZ/en 223
 ---pagebreak--- (g)    not to impose or maintain a requirement (i) for an enterprise of the other Party to purchase or
       use products of domestic origin or from any domestic source of the Party imposing the
       requirement, whether specified in terms of particular products, in terms of volume or value of
       products, or in terms of a proportion of volume or value of its local production; or (ii) that the
       enterprise’s purchases or use of imported products be limited to the amount related to the
       volume or value of local products that it exports.
3.     Where international or regional standards exist with respect to equipment and systems for the
generation of energy from renewable and non-fossil sources, the Parties shall use these standards, or
their relevant parts, as a basis for their technical regulations except when such international
standards or relevant parts would be an ineffective or inappropriate means for the fulfilment of the
legitimate objectives pursued. For the purposes of applying this paragraph, the International
Organization for Standardization (ISO) and the International Electro technical Commission (IEC)
shall be considered relevant international standard-setting bodies.
4.     Where appropriate, the Parties shall specify technical regulations based on product
requirements in terms of performance, including environmental performance, rather than on product
design or description.
                                               EU/KZ/en 224
 ---pagebreak--- 5.    Nothing in this Article shall be construed to prevent the adoption or enforcement by either
Party of measures necessary for the safe operation of the energy networks concerned, or the safety
of energy supply, subject to the requirement that such measures are not applied in a manner which
would constitute a means of arbitrary or unjustifiable discrimination between the products, service
suppliers or investors of the Parties where the same conditions prevail, or a disguised restriction on
trade and investment between the Parties.
                                             ARTICLE 148
                               Cooperation in raw materials and energy
1.    Without prejudice to Articles 204 to 208, the Parties agree to strengthen cooperation and
promotion of mutual understanding between the Parties in the field of trade in raw materials and
energy goods.
2.    The Parties recognise that respecting the principles of transparency and non-discrimination
and ensuring that rules are not trade distortive is the best way to create an environment favourable
to foreign direct investment in the production and trade of raw materials and energy goods. More
generally, such an environment fosters the efficient allocation and efficient use of raw materials and
energy goods.
                                             EU/KZ/en 225
 ---pagebreak--- 3.    The cooperation and the promotion of mutual understanding cover bilateral trade issues as
well as issues of common interest stemming from international trade. Such issues include trade
distortions impacting global markets, environment and development issues specifically linked to
trade in raw materials and energy goods as well as corporate social responsibility in accordance
with internationally recognized standards such as the OECD Guidelines for Multinational
Enterprises and Due Diligence Guidance. The cooperation and the promotion of mutual
understanding include exchange of data and information on the regulatory framework of the raw
materials and energy sectors. This shall not be construed as requiring the Parties to furnish any
information, the disclosure of which they consider contrary to their respective security interest.
4.    Either Party may request the organisation of an ad hoc meeting related to raw materials and
energy goods or an ad hoc session on raw materials and energy goods during the Cooperation
Committee meetings. The bilateral cooperation could additionally, if appropriate, be extended to the
relevant plurilateral or multilateral fora in which both Parties participate.
                                              EU/KZ/en 226
 ---pagebreak---                                             ARTICLE 149
                                       Early warning mechanism
1.    The Parties establish an early warning mechanism to adopt practical measures aimed at
preventing and rapidly reacting to an emergency situation or to a threat of an emergency situation.
2.    The Parties shall jointly undertake actions (i) for an early evaluation of potential risks and
problems related to the supply and demand of natural gas, oil or electric energy and (ii) for the
prevention or rapid reaction in case of an emergency situation or a threat of an emergency situation.
3.    If either Party becomes aware of an emergency situation or of a situation which in its opinion
could lead to an emergency situation, that Party shall notify the other Party within the shortest
possible time.
4.    For the purpose of this Article, the Parties agree that the responsible bodies are the Minister of
the Republic of Kazakhstan in charge of the respective energy matters and the Member of the
European Commission in charge of energy.
5.    Upon notification, the Parties shall provide each other with an assessment of the situation.
                                            EU/KZ/en 227
 ---pagebreak--- 6.     Either Party may request consultations within three calendar days of the notification to:
(a)    elaborate a common evaluation of the situation;
(b)    develop recommendations to eliminate the emergency situation and to minimise the impact of
       the emergency situation;
(c)    create a Special Monitoring Group inter alia to monitor energy flows at the relevant points of
       the concerned infrastructure.
7.     The Parties shall, if appropriate, cooperate with third countries to eliminate the threat of an
emergency situation or to overcome the emergency situation.
8.     In case the emergency situation persists, either Party may start an emergency dispute
settlement procedure, in accordance with the special mechanism provided for in Chapter 14
(Dispute Settlement) of this Title.
9.     The Parties shall refrain from any actions that may deepen or reinforce the emergency
situation, as appropriate in a given situation, from the moment of the notification.
                                             EU/KZ/en 228
 ---pagebreak--- 10.   A Party shall not rely on or introduce as evidence in dispute settlement procedures under this
agreement
(a)   positions taken or proposals made by the other Party in the course of a procedure under this
      Article; or,
(b)   the fact that the other Party has indicated its willingness to accept a solution to the emergency
      situation subject to this Article.
11.   The Cooperation Committee may develop, as necessary, detailed implementation provisions
for the application of this Article.
                                             ARTICLE 150
                                               Exceptions
1.    This Chapter is without prejudice to any exceptions, reservations or restrictions stipulated in
this Agreement.
                                             EU/KZ/en 229
 ---pagebreak--- 2.    The provisions of this Chapter shall neither apply to research and development projects, nor to
demonstration projects carried out on a non-commercial scale.
3.    Nothing in this Chapter shall be construed to prevent the adoption or enforcement by either
Party of measures necessary for the safe operation of the energy infrastructure, including energy
transport and production facilities concerned in the interest of national security or public safety,
including the prevention of and reaction to an emergency situation, subject to the requirement that
such measures are not applied in a manner which would constitute a means of arbitrary or
unjustifiable discrimination between the products, service suppliers or investors of the Parties where
the same conditions prevail, or a disguised restriction on trade and investment between the Parties.
                                           EU/KZ/en 230
 ---pagebreak---                                             CHAPTER 10
                          TRADE AND SUSTAINABLE DEVELOPMENT
                                            ARTICLE 151
                                        Context and objectives
1.    The Parties recall the Agenda 21 of the United Nations Conference on Environment and
Development of 1992, the International Labour Organisation’s (ILO) Declaration on Fundamental
Principles and Rights at Work of 1998, the Johannesburg Plan of Implementation on Sustainable
Development of 2002, the Ministerial Declaration of the UN Economic and Social Council on
Generating Full and Productive Employment and Decent Work for All of 2006, the ILO Declaration
on Social Justice for a Fair Globalisation of 2008 and the Outcome Document of the UN
Conference on Sustainable Development of 2012 incorporated in Resolution 66/288 adopted by the
General Assembly on 27 July 2012, entitled “The Future We Want”.
                                            EU/KZ/en 231
 ---pagebreak--- 2.     The Parties reaffirm their commitment to promote the development of international trade in
such a way as to contribute to the objective of sustainable development, for the welfare of present
and future generations. The Parties will strive to ensure that this objective is integrated and reflected
at every level of their trade relationship.
                                               ARTICLE 152
                    Multilateral environmental and labour standards and agreements
1.     The Parties recognise the value of international environmental governance and agreements as
a response of the international community to global or regional environmental problems.
2.     The Parties recognise the full and productive employment and decent work for all as a key
element of sustainable development for all countries and as a priority objective of international
cooperation.
3.     In this context, the Parties reaffirm their commitment to effectively implement in their law
and practice the multilateral environmental agreements they are a Party to and the ILO conventions
ratified by the Republic Kazakhstan and the European Union Member States respectively.
                                               EU/KZ/en 232
 ---pagebreak---                                               ARTICLE 153
                                Right to regulate and levels of protection
1.    The Parties recognise the right of each Party to establish its own levels of domestic
environmental and labour protection, and to adopt or modify its relevant law and policy
accordingly, consistently with the internationally recognised standards and agreements referred to in
Article 152. The Parties shall aim at high levels of environmental and labour protection.
2.    The Parties recognise that it is inappropriate to encourage trade or investment by weakening
or reducing the levels of protection afforded in domestic environmental or labour law.
3.    A Party shall not derogate from or, through a sustained or recurring course of action or
inaction, fail to enforce effectively its environmental and labour law, in order to encourage trade or
investment.
                                              EU/KZ/en 233
 ---pagebreak---                                              ARTICLE 154
                       Trade and investment promoting sustainable development
1.     The Parties reaffirm their commitment to enhance the contribution of trade to the goal of
sustainable development in its economic, social and environmental dimensions. Accordingly, they
agree to promote
(a)    trade and investment in environmental goods and services and in climate friendly products
       and technologies;
(b)    the use of sustainability assurance schemes, such as fair and ethical trade or eco-labelling; and
(c)    Corporate Social Responsibility practices.
2.     The Parties shall exchange information and share experience on their actions to promote
coherence and mutual supportiveness between trade, social and environmental objectives.
Furthermore, the Parties shall enhance their cooperation and dialogue on sustainable development
issues that may arise in the context of their trade relations including on relevant aspects set out in
Title IV (Cooperation in the area of economic and sustainable development).
                                             EU/KZ/en 234
 ---pagebreak--- 3.    Such cooperation and dialogue shall involve relevant stakeholders, in particular social
partners, as well as other civil society organisations, through the civil society cooperation
established under Article 251.
4.    The Cooperation Committee may adopt rules for such cooperation and dialogue.
                                             ARTICLE 155
                                           Dispute Settlement
Sub-section 2 of section 3 of Chapter 14 of this Title does not apply to disputes under this Chapter.
For any such dispute, after the arbitration panel has delivered its final report pursuant to
Articles 180 and 182, the Parties, taking the report into account, shall discuss suitable measures to
be implemented. The Cooperation Committee shall monitor the implementation of any such
measures and shall keep the matter under review, including through the mechanism referred to in
Article 154(3).
                                             EU/KZ/en 235
 ---pagebreak---                                               CHAPTER 11
                                            COMPETITION
                                             ARTICLE 156
                                                Principles
The Parties recognise the importance of free and undistorted competition in their trade relations.
The Parties acknowledge that anti-competitive business practices and state interventions (including
subsidies) have the potential to distort the proper functioning of markets and undermine the benefits
of trade liberalisation.
                                             EU/KZ/en 236
 ---pagebreak---                                              ARTICLE 157
                       Antitrust and mergers legislation and its implementation
1.    Each party shall maintain in its territory comprehensive competition law which effectively
addresses anti-competitive agreements, concerted practices and anti-competitive unilateral conduct
of enterprises with dominant market power, and which provide effective control of concentrations.
2.    Each Party shall maintain operationally independent authorities responsible and appropriately
equipped for the effective enforcement of the above-mentioned competition law.
3.    The Parties recognise the importance of applying their respective competition law in a
transparent and non-discriminatory manner, respecting the principles of procedural fairness and
rights of defence of the enterprises concerned.
                                             EU/KZ/en 237
 ---pagebreak---                                               ARTICLE 158
                      State monopolies, state enterprises and enterprises entrusted
                              with special or exclusive rights or privileges
1.     Nothing in this Chapter prevents a Party from designating or maintaining state monopolies,
state enterprises or from entrusting enterprises with special or exclusive rights or privileges
according to its law.
2.     With regard to state monopolies, state enterprises and enterprises entrusted with special or
exclusive rights or privileges involved in economic activities, each Party shall ensure that such
enterprises are subject to the competition law referred to in Article 157. An economic activity
consists in offering goods and services on a market. For the purpose of this Chapter, an economic
activity does not include activities performed in the exercise of governmental authority, namely
activities carried out neither on a commercial basis nor in competition with one or more economic
operators.
3.     The application of the competition law should not obstruct the performance, in law or in fact,
of the particular tasks of public interest assigned to the enterprises in question. Exceptions should be
limited and transparent. Trade and investment should not be affected to such an extent that would
undermine the objective of this agreement.
                                              EU/KZ/en 238
 ---pagebreak---                                             ARTICLE 159
                                               Subsidies
1.    For the purpose of this Article, a “subsidy” is a measure which fulfils the conditions of
Article 1 of the SCM Agreement irrespective whether it is granted to an enterprise for the
production of goods or the supply of services and which is specific within the meaning of Article 2
of that Agreement.
2.    Each Party shall ensure transparency in the area of subsidies. To this end, each Party shall
report every two years from the date of application of this Title to the other Party on the legal basis,
including the policy objective or the purpose of the subsidy, the duration or any other time limits,
the form and where possible the amount or the budget and the recipient of the subsidy granted by its
government or a public body. Such report is deemed to have been provided if the relevant
information is made available on a publicly accessible website or through the WTO notification
mechanism.
                                            EU/KZ/en 239
 ---pagebreak--- 3.    If a Party considers that a subsidy granted by the other Party is negatively affecting the first
Party’s interests, the first Party may request consultations on the matter. The requested Party shall
accord due consideration to such a request. The consultations should in particular aim at specifying
the policy objective of the subsidy, whether the subsidy has an incentive effect and is proportionate
and any measures taken to limit the potential distortive effect on trade and investment of the
requesting Party.1
4.    In order to facilitate the consultations, the requested Party shall provide information on the
subsidy in question within no more than 90 days from the date of receipt of the request. If the
requesting Party, after receiving information on the subsidy in question, considers that the subsidy
concerned by the consultations negatively affects or may negatively affect in a disproportionate
manner, the requesting Party’s trade or investment interests, the requested Party will use its best
endeavours to address the negative effects on the requesting Party’s trade interests caused by the
subsidy in question.
5.    Paragraphs 3 and 4 shall not apply to subsidies related to fisheries and trade in goods covered
by Annex 1 of the WTO Agreement on Agriculture.
1
      A subsidy is proportionate if its amount is limited to what is necessary to achieve the
      objective.
                                             EU/KZ/en 240
 ---pagebreak---                                            ARTICLE 160
                                         Dispute settlement
The provisions on dispute settlement set out in Chapter 14 of this Title shall not apply to
Articles 156 to 158 and paragraphs 3 and 4 of Article 159.
                                           ARTICLE 161
                                    Relationship with the WTO
The provisions of this Chapter are without prejudice to the rights and obligations of a Party under
the WTO Agreement, in particular the SCM Agreement and the Understanding on Rules and
Procedures Governing the Settlement of Disputes.
                                           EU/KZ/en 241
 ---pagebreak---                                          ARTICLE 162
                                         Confidentiality
When exchanging information under this Chapter, the Parties shall take into account the limitations
imposed by the requirements of professional and business secrecy.
                                         EU/KZ/en 242
 ---pagebreak---                                              CHAPTER 12
                                  STATE-OWNED ENTERPRISES,
                               STATE-CONTROLLED ENTERPRISES
                             AND ENTERPRISES GRANTED SPECIAL
                             OR EXCLUSIVE RIGHTS OR PRIVILEGES
                                             ARTICLE 163
                                               Definitions
For the purposes of this Chapter, the following definitions shall apply:
(a)   “State-owned enterprise” means any enterprise involved in a commercial activity over which
      a Party at central or sub-central level owns more than 50 % of the enterprise’s subscribed
      capital or the votes attached to the shares issued by the enterprise.
                                             EU/KZ/en 243
 ---pagebreak--- (b) “State-controlled enterprise” means any enterprise involved in a commercial activity over
    which a Party at central or sub-central level exercises or has the possibility of exercising
    decisive influence directly or indirectly by virtue of its financial participation therein or by the
    rules or practices on its functioning, or by any other means relevant to establish such decisive
    influence. Decisive influence on the part of a Party shall be presumed when a Party, directly
    or indirectly, can appoint more than half of the members of the enterprise’s administrative,
    managerial or supervisory body.
(c) “Enterprise granted special or exclusive rights or privileges” means any enterprise, public or
    private involved in a commercial activity, that has been granted by a Party, at central or
    sub-central level, in law or in fact, exclusive or special rights or privileges. Such rights or
    privileges may include the right to act as a distributor, a network provider or another
    intermediary for the purchase or sale of a good or the provision or receipt of a service.
    Enterprises granted exclusive rights covers monopolies involved in a commercial activity.
(d) A “monopoly” means an entity involved in a commercial activity, including a consortium,
    that in a relevant market in the territory of a Party is designated at central or sub-central level
    as the sole supplier or purchaser of a good or service, but does not include an entity that has
    been granted an exclusive intellectual property right solely by reason of such grant.
                                            EU/KZ/en 244
 ---pagebreak--- (e) “Special rights” means rights granted by a Party at central or sub-central level to a limited
    number of enterprises within a given geographical area or a product or service market the
    effect of which is to substantially limit the ability of any other enterprise to carry out its
    activity in the same geographical area under substantially equivalent conditions. The granting
    of a licence or a permit to a limited number of enterprises in allocating a scarce resource
    through objective, proportional and non-discriminatory criteria is not in and of itself a special
    right.
(f) “Non-discriminatory treatment” means national treatment or “most favoured nation”
    treatment as set out in this Agreement, whichever is the better.
(g) “In accordance with commercial considerations” means consistent with customary business
    practices of a privately held enterprise operating according to market economy principles in
    the international trade.
(h) “Designate” means to establish or authorise a monopoly, or to expand the scope of a
    monopoly, whether in law or in fact.
                                           EU/KZ/en 245
 ---pagebreak---                                             ARTICLE 164
                                                Scope
1.    The Parties confirm their rights and obligations under Article XVII, paragraphs 1 through 3,
of the GATT 1994, the Understanding on the Interpretation of Article XVII of the GATT 1994, as
well as under Article VIII of the GATS, paragraphs 1, 2 and 5 and the Chapter on state-owned and
state-controlled Enterprises, Enterprises with Special and Exclusive Privileges of the Protocol on
the Accession of the Republic of Kazakhstan to the WTO, which are hereby incorporated into and
made part of this Agreement and shall apply.
2.    This Chapter does not apply to “covered procurement” by a Party or its procuring entities
within the meaning of Article 120.
3.    This Chapter shall apply to all economic activities covered by this Agreement. Services which
are not listed in a Party’s GATS schedule of specific commitments shall not be subject to the
provisions of Articles 166 and 167.
                                            EU/KZ/en 246
 ---pagebreak---                                             ARTICLE 165
1.    Without prejudice to the Parties’ rights and obligations under this Chapter, nothing in this
Chapter prevents the Parties from establishing or maintaining state-owned or controlled enterprises
or designating or maintaining monopolies or from granting enterprises special or exclusive rights or
privileges.
2.    Where an enterprise falls within the scope of application of this Chapter, the Parties shall not
require or encourage such an enterprise to act in a manner inconsistent with this Agreement.
                                            EU/KZ/en 247
 ---pagebreak---                                                ARTICLE 166
                                            Non-discrimination
Unless otherwise provided for in Article 142 or in a Party’s GATS schedule of specific
commitments or in a Party’s reservations to national treatment set out in Annex I (Reservations in
accordance with Article 46 of Chapter 5 on Services and Establishment), each Party shall ensure in
its territory that any enterprise satisfying the conditions set out in Article 163(c) in its purchase or
sale of a good or a service accords non-discriminatory treatment to a good of the other Party and/or
to a service or a service supplier of the other Party.
                                               EU/KZ/en 248
 ---pagebreak---                                              ARTICLE 167
                                       Commercial considerations
Except to fulfil the purpose1 for which special or exclusive rights or privileges have been granted,
or in the case of a state-owned or controlled enterprise to fulfil its public mandate, and provided that
the enterprise’s conduct in fulfilling that purpose or mandate is consistent with the provisions in
Article 166 of this Chapter and the Chapter on Competition, each Party shall ensure that any
enterprise referred to in Article 163(a) to 163(c) acts in accordance with commercial considerations
in the relevant territory in its purchases and sales of goods, including with regard to price, quality,
availability, marketability, transportation and other terms and conditions of purchase or sale, as well
as in its purchases or supply of services, including when these goods or services are supplied to or
by an investment of an investor of the other Party.
1
       Such as a public service obligation.
                                              EU/KZ/en 249
 ---pagebreak---                                               ARTICLE 168
                                                 Pricing
For greater clarity, charging different prices in different markets, or within the same market, where
such differences are based on normal commercial considerations, such as supply and demand
conditions, is not in itself inconsistent with Articles 166 and 167.
                                              ARTICLE 169
                                          Corporate governance
1.    The Parties shall ensure that enterprises referred to in Article 163(a) to 163(c) observe high
standards of transparency and corporate governance in accordance with the 2005 OECD Guidelines
on Corporate Governance of State-Owned Enterprises. Further development of the policy of
corporate governance in enterprises referred to in Article 163(a) to 163(c) should be conducted in
accordance with these Guidelines.
                                              EU/KZ/en 250
 ---pagebreak--- 2.     Each Party shall ensure that any regulatory body responsible for regulating enterprises
referred to in Article 163(a) to 163(c) is legally distinct and functionally independent from, and not
accountable to, any of the enterprises referred to in Article 163(a) to 163(c).
3.     Each Party shall ensure the enforcement of laws and regulations in a consistent and
non-discriminatory manner at all levels of government, be it central or local, and including on
enterprises referred to in Article 163(a) to 163(c). Exemptions must be limited and transparent.
                                              ARTICLE 170
                                         Exchange of information
1.     A Party which has a reason to believe that its interests under this Agreement are being
adversely affected by the operations of an enterprise or enterprises referred to in Article 163(a)
to 163(c) of the other Party, may request that latter Party to supply information about the operations
of its enterprise related to the carrying out of the provisions of this Agreement. Such information
may include organisational, corporate and financial information.
                                              EU/KZ/en 251
 ---pagebreak--- 2.    Each Party shall, at the request of the other Party, make available information concerning
specific enterprises referred to in Article 163(a) to 163(c) which do not qualify as small and
medium-sized enterprises as defined in each Party’s law. Requests for such information shall
indicate the enterprise, the products/services and markets concerned, and include indications that
the enterprise is engaging in practices that hinder trade or investment between the Parties.
3.    Each Party shall, at the request of the other Party, make available information concerning
exemptions, non-conforming measures, immunities and any other measures, including more
favourable treatment, applicable in the territory of the requested Party to any enterprise referred to
in Article 163(a) to 163(c).
4.    The provisions of paragraphs 1 to 3 shall not require any Party to disclose confidential
information which would impede law enforcement or otherwise be contrary to the public interest or
would prejudice the legitimate commercial interests of particular enterprises.
                                             EU/KZ/en 252
 ---pagebreak---                                              CHAPTER 13
                                          TRANSPARENCY
                                             ARTICLE 171
1.    Each Party shall respond promptly to all requests by the other Party for specific information
on any of its measures of general application or international agreements which pertain to or affect
this Title. Each Party shall establish one or more enquiry points to provide to interested persons of
the other Party, upon request, specific information on all such matters.1 The Parties shall notify each
other enquiry points within 3 months after the start of the application of this Title. Enquiry points
need not be depositories of laws and regulations.
1
      The enquiry point for the Republic of Kazakhstan is the enquiry point set up under the WTO
      GATS Agreement.
                                             EU/KZ/en 253
 ---pagebreak--- 2.     All laws, regulations, decrees, decisions and administrative rulings of general application of
the Parties pertaining to or affecting any matter governed by this Title shall be published promptly
in a manner that fulfils the applicable requirements of the WTO Agreement, including those of
Article X of the GATT 1994, Article III of the GATS, and Article 63 of the WTO TRIPS
Agreement. The Parties shall update published resources, including websites, containing such
measures, on a regular basis and make them readily available to interested persons. Such measures
shall be available while they are in effect and for a reasonable period after they are no longer in
effect.
3.     The Parties shall publish all laws, regulations, decrees, decisions and administrative rulings of
general application pertaining to or affecting any matter governed by this Title, prior to their
adoption. The Parties shall provide a reasonable period of time, normally not less than 30 calendar
days, for interested persons to comment to the responsible authorities before the relevant measure is
finalised or submitted to the authorities responsible for its adoption. Any comments received during
the period for comments will be taken into account.
4.     No law, regulation, decree, decision or administrative ruling of general application of the
Parties pertaining to or affecting any matter governed by this Title shall become effective prior to
publication.
                                              EU/KZ/en 254
 ---pagebreak--- 5.    Nothing in this Agreement shall require any Party to provide confidential information, the
disclosure of which would impede law enforcement, or otherwise be contrary to the public interests,
or which would prejudice legitimate commercial interests of particular enterprises, public or private.
6.    Article 55 shall apply with respect to this Chapter.
                                            EU/KZ/en 255
 ---pagebreak---                                              CHAPTER 14
                                      DISPUTE SETTLEMENT
                                              SECTION 1
                                      OBJECTIVE AND SCOPE
                                            ARTICLE 172
                                               Objective
The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and
settling any dispute between the Parties concerning the interpretation and application of this
Agreement with a view to arriving, where possible, at a mutually agreed solution.
                                             EU/KZ/en 256
 ---pagebreak---                                             ARTICLE 173
                                         Scope of application
This Chapter shall apply with respect to any dispute concerning the interpretation and application of
Title III (Trade and Business) of this Agreement, except as otherwise provided.
                                             SECTION 2
                              CONSULTATIONS AND MEDIATION
                                            ARTICLE 174
                                            Consultations
1.     The Parties shall endeavour to resolve any dispute referred to in Article 173 by entering into
consultations in good faith with the aim of reaching a mutually agreed solution.
                                            EU/KZ/en 257
 ---pagebreak--- 2.    A Party shall seek consultations by means of a written request delivered to the other Party,
copied to the Cooperation Committee, identifying the measure at issue and the provisions referred
to in Article 173 that it considers applicable.
3.    The Party to which the request is made shall respond to the request for consultations within 10
days of the date of its receipt, unless otherwise provided for in this Agreement or agreed between
the Parties.
4.    The consultations shall be held within 30 days of the date of receipt of the request and take
place, unless the Parties agree otherwise, in the territory of the Party to which the request is made.
The consultations shall be deemed concluded within 30 days of the date of receipt of the request,
unless both Parties agree to continue consultations. Consultations, and in particular all information
disclosed and positions taken by the Parties during the consultations, shall be confidential, and
without prejudice to the rights of either Party in any further proceedings.
5.    Consultations on matters of urgency shall be deemed concluded within 15 days of the date of
receipt of the request by the requested Party unless both Parties agree to continue consultations.
                                             EU/KZ/en 258
 ---pagebreak--- 6.     If the Party to which the request is made does not respond to the request for consultations
within 10 days of the date of its receipt, or if consultations are not held within the timeframes laid
down in paragraph 3 or in paragraph 4 respectively, or if the Parties agree not to have consultations,
or if consultations have been concluded and no mutually agreed solution has been reached, the Party
that sought consultations may have recourse to Article 176.
7.     During consultations each Party shall provide sufficient factual information, so as to allow a
complete examination of the manner in which the measure at issue could affect the operation and
application of this Agreement.
8.     The consultations shall be deemed concluded within five working days after the date of
receipt of the request for consultations, unless the Parties agree otherwise, when they concern
emergency situations as defined in Article 138(h).
                                              EU/KZ/en 259
 ---pagebreak---                                            ARTICLE 175
                                            Mediation
Any Party may request the other Party to enter into a mediation procedure with respect to any
measure adversely affecting trade or investment between the Parties pursuant to Annex VII
(Mediation Mechanism).
                                           EU/KZ/en 260
 ---pagebreak---                                                SECTION 3
                              DISPUTE SETTLEMENT PROCEDURES
                                            SUB-SECTION 1
                                    ARBITRATION PROCEDURE
                                             ARTICLE 176
                                 Initiation of the arbitration procedure
1.     Where the Parties have failed to resolve the dispute by recourse to consultations as provided
for in Article 174, the Party that sought consultations may request the establishment of an
arbitration panel in accordance with this Article.
                                             EU/KZ/en 261
 ---pagebreak--- 2.    The request for the establishment of an arbitration panel shall be made by means of a written
request delivered to the other Party and the Cooperation Committee. The complaining Party shall
identify in its request the measure at issue, and it shall explain how such measure constitutes a
breach of the provisions referred to in Article 173 in a manner sufficient to present the legal basis
for the complaint clearly.
                                             ARTICLE 177
                                 Establishment of the arbitration panel
1.    An arbitration panel shall be composed of three arbitrators.
2.    Within 10 days of the date of delivery of the written request for the establishment of an
arbitration panel to the Party complained against, the Parties shall consult in order to reach an
agreement on the composition of the arbitration panel.
                                              EU/KZ/en 262
 ---pagebreak--- 3.    In the event that the Parties are unable to agree on the composition of the arbitration panel
within the time frame laid down in paragraph 2, each Party may appoint an arbitrator from the
sub-list of that Party established under Article 196 within 5 days from the expiry of the timeframe
established in paragraph 2. If either of the Parties fails to appoint the arbitrator, the arbitrator shall,
upon request of the other Party, be selected by lot by the chair of the Cooperation Committee, or the
chair’s delegate, from the sub-list of that Party contained in the list established under Article 196.
4.    Unless the Parties reach an agreement concerning the chairperson of the arbitration panel
within the timeframe established in paragraph 2, the chair of the Cooperation Committee or the
chair’s delegate, shall, upon request of either of the Parties, select by lot the chairperson of the
arbitration panel from the sub-list of chairpersons contained in the list established under
Article 196.
5.    The chair of the Cooperation Committee, or the chair’s delegate, shall select the arbitrators
within five days of the request by either party referred to in paragraph 3 or paragraph 4.
6.    The date of establishment of the arbitration panel shall be the last date on which all three
selected arbitrators have accepted their appointment according to the Rules of Procedure set out in
Annex V.
                                             EU/KZ/en 263
 ---pagebreak--- 7.     Should any of the lists provided for in Article 196 not be established or not contain sufficient
names at the time a request is made pursuant to paragraph 3 or paragraph 4 of this Article, the
arbitrators shall be drawn by lot from the individuals who have been formally proposed by one or
both of the Parties.
9.     Unless the Parties agree otherwise, in respect of a dispute concerning emergency situations as
defined in Article 138(h) between the Parties, the second sentence of paragraph 3 and paragraph 4
shall apply without recourse to paragraph 2, and the period in paragraph 5 shall be two days.
                                              ARTICLE 178
                                      Preliminary ruling on urgency
If a Party so requests, the arbitration panel shall give, within 10 days of its establishment, a
preliminary ruling on whether it deems the case to be urgent.
                                              EU/KZ/en 264
 ---pagebreak---                                              ARTICLE 179
                                 Conciliation for urgent energy disputes
1.    In respect of a dispute concerning emergency situations as defined in Article 138(h) either
Party may request the chair of the panel to act as conciliator concerning any matter related to the
dispute by making a request to the panel.
2.    The conciliator shall seek an agreed resolution of the dispute or seek to agree a procedure to
achieve such resolution. If within 15 days of the date of their appointment the conciliator has failed
to secure such agreement, they shall recommend a resolution to the dispute or a procedure to
achieve such resolution and shall decide on the terms and conditions to be observed from a date
which they shall specify until the dispute is resolved.
3.    The Parties and the entities under their control or jurisdiction shall respect recommendations
made under paragraph 2 on the terms and conditions for three months following the date of the
conciliator’s decision or until resolution of the dispute, whichever is earlier.
4.    The conciliator shall respect the Code of Conduct for Arbitrators as set out in Annex VI.
                                             EU/KZ/en 265
 ---pagebreak---                                               ARTICLE 180
                                        Arbitration Panel Reports
1.     The arbitration panel shall deliver an interim report to the Parties setting out the findings of
fact, the applicability of relevant provisions and the basic rationale behind any findings and
recommendations that it makes.
2.     Any Party may deliver a written request to the arbitration panel to review precise aspects of
the interim report within 14 days of its receipt.
3.     After considering any written comments by the Parties on the interim report, the arbitration
panel may modify its interim report and make any further examination it considers appropriate.
4.     The final panel report shall set out the findings of fact, the applicability of the relevant
provisions referred to in Article 173 and the basic rationale behind any findings and conclusions
that it makes. The final panel report shall include a sufficient discussion of the arguments made at
the interim review stage, and shall answer clearly to the questions and observations of the two
Parties.
                                              EU/KZ/en 266
 ---pagebreak---                                               ARTICLE 181
                                     Arbitration Panel Interim Report
1.     The arbitration panel shall deliver an interim report to the Parties not later than 90 days from
the date of establishment of the arbitration panel. When the arbitration panel considers that this
deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the
Cooperation Committee in writing, stating the reasons for the delay and the date on which the panel
plans to deliver its interim report. Under no circumstances should the interim report be delivered
later than 120 days after the date of establishment of the arbitration panel.
2.     In cases of urgency the arbitration panel shall make every effort to deliver its interim report
within 45 days and, in any case, no later than 60 days after the date of establishment of the
arbitration panel. Any Party may deliver a written request to the arbitration panel to review precise
aspects of the interim report pursuant to Article 180(2) within 7 days of the delivery of the interim
report.
                                              EU/KZ/en 267
 ---pagebreak--- 3.     In respect of a dispute concerning emergency situations as defined in Article 138(h) between
the Parties, the interim report shall be delivered within 20 days after the date of establishment of the
arbitration panel and any request pursuant to Article 180(2) shall be delivered within five days of
delivery of the interim report. The arbitration panel may also decide to dispense with the interim
report.
                                              ARTICLE 182
                                      Arbitration Panel Final Report
1.     The arbitration panel shall deliver its final report to the Parties and to the Cooperation
Committee within 120 days of the date of establishment of the arbitration panel. When the
arbitration panel considers that this deadline cannot be met, the chairperson of the arbitration panel
shall notify the Parties and the Cooperation Committee in writing, stating the reasons for the delay
and the date on which the panel plans to deliver its final report. Under no circumstances should the
final report be delivered later than 150 days after the date of establishment of the arbitration panel.
                                              EU/KZ/en 268
 ---pagebreak--- 2.     In cases of urgency, the arbitration panel shall make every effort to deliver its report within 60
days of the date of its establishment. Under no circumstances should the final report be delivered
later than 75 days after the date of establishment of the arbitration panel.
3.     In respect of a dispute concerning emergency situations as defined in Article 138(h) between
the Parties, the arbitration panel shall deliver its final report within 40 days of the date of
establishment of the arbitration panel.
                                            SUB-SECTION 2
                                             COMPLIANCE
                                              ARTICLE 183
                            Compliance with the arbitration panel final report
The Party complained against shall take measures necessary to comply promptly and in good faith
with the arbitration panel final report.
                                              EU/KZ/en 269
 ---pagebreak---                                                ARTICLE 184
                               Reasonable period of time for compliance
1.    If immediate compliance is not possible, the Parties shall endeavour to agree on the period of
time to comply with the final report. In such a case, the Party complained against shall, no later
than 30 days after receipt of the arbitration panel final report, deliver a notification to the
complaining Party and the Cooperation Committee of the time it will require for compliance
(“reasonable period of time”).
2.    If there is disagreement between the Parties on the duration of the reasonable period of time,
the complaining Party may, within 20 days of receipt of the notification referred to in paragraph 1,
deliver a request in writing that the arbitration panel established initially pursuant to Article 177
(“original arbitration panel”) determine the length of the reasonable period of time. Such request
shall be delivered simultaneously to the other Party and to the Cooperation Committee. The
arbitration panel shall deliver its report to the Parties and to the Cooperation Committee within 20
days of the date of receipt of the request.
3.    The Party complained against shall notify the complaining Party in writing of its progress in
complying with the arbitration panel final report. This notification shall be provided in writing and
delivered at least one month before the expiry of the reasonable period of time.
                                               EU/KZ/en 270
 ---pagebreak--- 4.     The reasonable period of time may be extended by mutual agreement of the Parties.
                                             ARTICLE 185
             Review of any measure taken to comply with the arbitration panel final report
1.     The Party complained against shall notify the complaining Party and the Cooperation
Committee of any measure that it has taken to comply with the arbitration panel final report. This
notification shall be delivered before the end of the reasonable period of time.
2.     In the event that there is disagreement between the Parties concerning the existence or the
consistency of any measure notified under paragraph 1 of this Article with the provisions referred to
in Article 173, the complaining Party may deliver a written request to the original arbitration panel
to rule on the matter. Such request shall identify the specific measure at issue and explain how such
measure is inconsistent with the provisions referred to in Article 173, in a manner sufficient to
present the legal basis for the complaint clearly. The arbitration panel shall deliver its report to the
Parties and to the Cooperation Committee within 45 days of the date of the receipt of the request.
                                             EU/KZ/en 271
 ---pagebreak---                                              ARTICLE 186
                            Temporary remedies in case of non-compliance
1.    If the Party complained against fails to notify any measure taken to comply with the
arbitration panel final report before the expiry of the reasonable period of time, or if the arbitration
panel rules that no measure taken to comply exists or that the measure notified under Article 185(1)
is inconsistent with that Party’s obligations under the provisions referred to in Article 173, the Party
complained against shall, if so requested by the complaining Party and after consultations with that
Party, present an offer for compensation.
                                             EU/KZ/en 272
 ---pagebreak--- 2.     If the complaining Party decides not to request an offer for compensation under paragraph 1,
or, in case such request is made, if no agreement on compensation is reached within 30 days of the
date of expiry of the reasonable period of time or of the delivery of the arbitration panel report
under Article 185(2), the complaining Party shall be entitled, upon notification to the other Party
and to the Cooperation Committee, to take appropriate measures at a level equivalent to the
nullification or impairment1 caused by the violation. The notification shall specify such measures.
The complaining Party may implement the measures at any moment after the expiry of 10 days
from the date of receipt of the notification by the Party complained against, unless the Party
complained against has requested arbitration under paragraph 3.
1
       “Nullification and impairment” is interpreted as “nullification and impairment” pursuant to
       the Understanding on Rules and Procedures Governing the Settlement of Disputes of the
       WTO.
                                             EU/KZ/en 273
 ---pagebreak--- 3.    If the Party complained against considers that the appropriate measures are not at a level
equivalent to the nullification or impairment caused by the violation of that Party’s obligations
under the provisions referred to in Article 173, the Party complained against may deliver a written
request to the original arbitration panel to rule on the matter. Such request shall be notified to the
complaining Party and to the Cooperation Committee before the expiry of the 10 day period
referred to in paragraph 2. The original arbitration panel shall deliver its report on the measures
notified by the complaining Party to the Parties and to the Cooperation Committee within 30 days
of the date of the delivery of the request. The complaining Party shall not make the notified
measures effective until the original arbitration panel has delivered its report. Such measure made
effective after the delivery of the report shall be consistent with the arbitration panel report.
4.    The measures made effective by the complaining Party and the compensation foreseen in this
Article shall be temporary and shall not be applied after:
(a)   the Parties have reached a mutually agreed solution pursuant to Article 191; or
                                              EU/KZ/en 274
 ---pagebreak--- (b)   the Parties have agreed that the measure notified under Article 185(1) brings the Party
complained against into conformity with the provisions referred to in Article 173; or
(c)   any measure that the arbitration panel under Article 185(2) has found to be inconsistent with
the provisions referred to in Article 173 has been withdrawn or amended so as to bring it into
conformity with those provisions.
                                            EU/KZ/en 275
 ---pagebreak---                                              ARTICLE 187
                                 Review of any measure taken to comply
                     after the adoption of temporary remedies for non-compliance
1.    The Party complained against shall notify the complaining Party and the Cooperation
Committee of the measure it has taken to comply with the final report of the arbitration panel
following the application of compensation or the taking of an appropriate measure by the
complaining Party pursuant to Article 186, as the case may be. With the exception of cases under
paragraph 2, the complaining party shall terminate the measure within 30 days from the receipt of
the notification. In cases where compensation has been applied, and with the exception of cases
under paragraph 2, the Party complained against may terminate the application of such
compensation within 30 days from receipt of the notification that it has complied with the final
report of the arbitration panel.
                                             EU/KZ/en 276
 ---pagebreak--- 2.     If the Parties do not reach an agreement on whether the Party complained against has
complied with the final report of the arbitration panel within 30 days of the date of receipt of the
notification under paragraph 1, the complaining Party shall deliver a written request to the original
arbitration panel to rule on the matter. Such a request shall be delivered simultaneously to the other
Party and to the Cooperation Committee. The arbitration panel report shall be delivered to the
Parties and to the Cooperation Committee within 45 days of the date of the submission of the
request. If the arbitration panel rules that the Party complained against has complied with the final
report of the arbitration panel, the complaining Party shall terminate the appropriate measure taken
under Article 186 or the Party complained against shall terminate the compensation, as the case may
be. If the arbitration panel rules that the Party complained against has not fully complied with the
final report of the arbitration panel, the compensation or the appropriate measure taken pursuant to
Article 186 shall be adapted in light of the arbitration panel report.
                                               EU/KZ/en 277
 ---pagebreak---                                              ARTICLE 188
                                  Remedies for urgent energy disputes
1.     In respect of a dispute concerning emergency situations as defined in Article 138(h) between
the Parties, the provisions of this Article on remedies shall apply.
2.     By way of derogation from Articles 184, 185 and 186, the complaining Party may take
appropriate measures to a level equivalent to the nullification or impairment caused by a Party
failing to bring itself into compliance with the arbitration panel final report within 15 days of its
release. Those measures may take effect immediately. Such measures may be maintained as long as
the Party complained against has not complied with the arbitration panel final report.
3.     Should the Party complained against dispute the existence of a failure to comply or the
proportionality of the measure made effective by the complaining Party or its failure to comply, it
may initiate proceedings under Articles 186(3) and 187 which shall be examined expeditiously. The
complaining party shall be required to remove or adjust the measures only once the Panel has ruled
on the matter, and may maintain the measures pending the proceedings.
                                             EU/KZ/en 278
 ---pagebreak---                                            SUB-SECTION 3
                                      COMMON PROVISIONS
                                            ARTICLE 189
                                     Replacement of Arbitrators
If in an arbitration proceeding under this Chapter, the original arbitration panel, or some of its
members, are unable to participate, withdraw, or need to be replaced because they do not comply
with the requirements of the Code of Conduct set out in Annex VI, the procedure set out in
Article 177 shall apply. The time limit for the delivery of the report may be extended for the time
necessary for the appointment of a new arbitrator but for no more than 20 days.
                                            EU/KZ/en 279
 ---pagebreak---                                              ARTICLE 190
                Suspension and termination of Arbitration and Compliance Procedures
The arbitration panel shall, at the request of both Parties, suspend its work at any time for a period
agreed by the Parties not exceeding 12 consecutive months. The arbitration panel shall resume its
work before the end of that period at the written request of both Parties or at the end of that period
at the written request of either Party. The requesting Party shall notify the Chairperson of the
Cooperation Committee and the other Party accordingly. If a Party does not request the resumption
of the arbitration panel’s work at the expiry of the agreed suspension period, the procedure shall be
terminated. The suspension and termination of the arbitration panel’s work are without prejudice to
the rights of either Party in another proceeding subject to Article 192.
                                             EU/KZ/en 280
 ---pagebreak---                                              ARTICLE 191
                                       Mutually Agreed Solution
The Parties may reach a mutually agreed solution to a dispute under this Chapter at any time. They
shall jointly notify the Cooperation Committee and the chairperson of the arbitration panel, where
applicable, of any such solution. If the solution requires approval pursuant to the relevant domestic
procedures of either party, the notification shall refer to this requirement, and the dispute settlement
procedure shall be suspended. If such approval is not required, or if the completion of any such
domestic procedures is notified, the dispute settlement procedure shall be terminated.
                                             ARTICLE 192
                                           Rules of Procedure
1.     Dispute settlement procedures under this Chapter shall be governed by the Rules of Procedure
set out in Annex V and by the Code of Conduct set out in Annex VI.
                                             EU/KZ/en 281
 ---pagebreak--- 2.    Any hearing of the arbitration panel shall be open to the public unless otherwise provided in
the Rules of Procedure set out in Annex V.
                                            ARTICLE 193
                                    Information and technical advice
At the request of a Party, or upon its own initiative, the arbitration panel may request any
information it deems appropriate for the arbitration panel proceeding from any source, including the
Parties involved in the dispute. The arbitration panel also has the right to seek the opinion of
experts, as it deems appropriate. The arbitration panel shall consult the Parties before choosing such
experts. Natural or legal persons established in the territory of a Party may submit amicus curiae
briefs to the arbitration panel in accordance with the Rules of Procedure. Any information obtained
under this Article shall be disclosed to each of the Parties and submitted for their comments.
                                             EU/KZ/en 282
 ---pagebreak---                                              ARTICLE 194
                                         Rules of interpretation
Any arbitration panel shall interpret the provisions referred to in Article 173 in accordance with
customary rules of interpretation of public international law, including those codified in the 1969
Vienna Convention on the Law of Treaties. The panel shall also take into account relevant
interpretations of WTO panels and the Appellate body adopted by the WTO Dispute Settlement
Body (hereinafter referred to as the “DSB”). The reports of the arbitration panel cannot add to or
diminish the rights and obligations of the Parties under this Agreement.
                                             ARTICLE 195
                           Decisions and Reports of the Arbitration Panel
1.    The deliberations of the arbitration panel shall be confidential. The arbitration panel shall
make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be
arrived at by consensus, the matter at issue shall be decided by majority vote. However, in no case
shall dissenting opinions of arbitrators be disclosed.
                                             EU/KZ/en 283
 ---pagebreak--- 2.    The reports of the arbitration panel shall be drafted without the presence of the Parties. The
reports shall set out the findings of fact, the applicability of the relevant provisions referred to in
Article 173 and the basic rationale behind any findings and conclusions that it makes.
3.    The reports of the arbitration panel shall be unconditionally accepted by the Parties. They
shall not create any rights or obligations for natural or legal persons.
4.    The Parties shall make the arbitration panel report publicly available, subject to the protection
of confidential information as provided for in the Rules of Procedure set out in Annex V.
                                              EU/KZ/en 284
 ---pagebreak---                                               SECTION 4
                                      GENERAL PROVISIONS
                                             ARTICLE 196
                                           Lists of arbitrators
1.    The Cooperation Committee, on the basis of proposals made by the Parties, shall, no later
than six months after the entry into force of this Agreement, establish a list of at least 15 individuals
who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one
sub-list for each Party and one sub-list of individuals that are not nationals of either Party and who
may serve as chairperson to the arbitration panel. Each sub-list shall include at least five
individuals. The Cooperation Committee will ensure that the list is always maintained at that level.
2.    Arbitrators shall have specialised knowledge and experience of law and international trade.
They shall be independent, serve in their individual capacities and not take instructions from any
organisation or government, or be affiliated with the government of any of the Parties, and shall
comply with the Code of Conduct set out in Annex VI.
                                             EU/KZ/en 285
 ---pagebreak--- 3.     The Cooperation Committee may establish additional lists of 15 individuals with knowledge
and experience in specific sectors covered by this Agreement. Subject to the agreement of the
Parties, such additional lists shall be used to compose the arbitration panel in accordance with the
procedure set out in Article 177.
                                              ARTICLE 197
                                     Relation with WTO obligations
1.     Recourse to the dispute settlement provisions of this Title shall be without prejudice to any
action in the WTO framework, including dispute settlement action.
2.     However, a Party shall not, for a particular measure, seek redress for the breach of a
substantially equivalent obligation under both this Agreement and the WTO Agreement in both
fora. In such case, once a dispute settlement proceeding has been initiated, the Party shall not bring
a claim seeking redress for the breach of the substantially equivalent obligation under the other
agreement to the other forum, unless the forum selected first fails for procedural or jurisdictional
reasons to make findings on the claim seeking redress of that obligation.
                                              EU/KZ/en 286
 ---pagebreak--- 3.    For the purposes of this Article,
-     dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a
      Party’s request for the establishment of a panel under Article 6 of the Understanding on Rules
      and Procedures Governing the Settlement of Disputes of the WTO ;
-     dispute settlement proceedings under this Chapter are deemed to be initiated by a Party’s
      request for the establishment of an arbitration panel under Article 176(1).
4.    Nothing in this Agreement shall preclude a Party from implementing the suspension of
obligations authorised by the DSB of the WTO. The WTO Agreement shall not be invoked to
preclude a Party from applying temporary remedies for non-compliance under this Chapter.
                                            EU/KZ/en 287
 ---pagebreak---                                               ARTICLE 198
                                               Time limits
1.    All time limits laid down in this Chapter, including the limits for the arbitration panels to
deliver their reports, shall be counted in calendar days the first day being the day following the act
or the fact to which they refer, unless otherwise specified.
2.    Any time limit referred to in this Chapter may be modified by mutual agreement of the Parties
to the dispute. The arbitration panel may at any time propose to the Parties to modify any time-limit
referred to in this Chapter, stating the reasons for the proposal.
                                              EU/KZ/en 288
 ---pagebreak---                                                TITLE IV
                         COOPERATION IN THE AREA OF ECONOMIC
                              AND SUSTAINABLE DEVELOPMENT
                                              CHAPTER 1
                                      ECONOMIC DIALOGUE
                                             ARTICLE 199
The Parties adhere to the principles of the free market economy ensuring sound macroeconomic
policies and shall develop and strengthen regular economic dialogue aimed at further expanding and
deepening mutually beneficial economic ties, as well as sustainable development and economic
growth.
                                             EU/KZ/en 289
 ---pagebreak---                                             ARTICLE 200
The Parties shall regularly review the status of bilateral cooperation and conduct regular exchange
of information, expertise and best practice in the field of economic policies, economic and financial
development and statistics.
                                             CHAPTER 2
                    COOPERATION IN PUBLIC FINANCE MANAGEMENT,
                   INCLUDING PUBLIC AUDIT AND INTERNAL CONTROL
                                            ARTICLE 201
The Parties shall cooperate in the area of public finance management, including public audit and
internal control with the aim of further development of a sound public finance management system,
compatible with the principles of economy, efficiency and effectiveness as well as transparency and
accountability.
                                            EU/KZ/en 290
 ---pagebreak--- Cooperation shall include:
(a)    promoting the implementation of acceptable and generally recognised international standards
       as well as convergence with good practice of the European Union in this area;
(b)    exchange of information and experiences in this area.
                                               CHAPTER 3
                           COOPERATION IN THE AREA OF TAXATION
                                              ARTICLE 202
The Parties shall strive to improve international cooperation in the tax area, notably in the area of
facilitating the collection of legitimate tax revenues, and to develop measures in line with
international standards for the effective implementation of the principles of good governance in the
tax area, including transparency and exchange of information. The Parties shall strengthen dialogue
and exchange experience with a view to avoiding harmful tax practices.
                                              EU/KZ/en 291
 ---pagebreak---                                              CHAPTER 4
                        COOPERATION IN THE AREA OF STATISTICS
                                            ARTICLE 203
The Parties shall promote the harmonisation of statistical methods and practice including the
gathering and dissemination of statistics. The statistical cooperation shall focus on exchange of
knowledge, fostering good practice and respect for the UN Fundamental Principles of Official
Statistics and the European Statistics Code of Practice.
The European Union shall contribute to this end by rendering technical assistance to the Republic of
Kazakhstan.
                                            EU/KZ/en 292
 ---pagebreak---                                               CHAPTER 5
                            COOPERATION IN THE AREA OF ENERGY
                                             ARTICLE 204
The Parties shall continue and intensify their current cooperation on energy matters with the
objective to enhance energy security, efficiency, sustainability, and competitiveness. The
cooperation shall be based on a comprehensive partnership and shall be guided by the principles of
mutual interest, reciprocity, transparency and predictability according to the principles of market
economy and existing related multilateral and bilateral agreements.
                                             ARTICLE 205
Cooperation shall include, inter alia, the following areas:
(a)   implementation of energy strategies and policies, elaboration of forecasts and scenarios,
      including global market conditions for energy products, as well as improvement of the
      statistical system in the energy sector;
                                             EU/KZ/en 293
 ---pagebreak--- (b) creation of an attractive and stable investment climate and the encouragement of mutual
    investments in the energy field on a non-discriminatory and transparent basis;
(c) effective cooperation with the European Investment Bank, the European Bank for
    Reconstruction and Development and other international financial institutions and instruments
    to support the energy cooperation between the Parties;
(d) enhancement of scientific and technical cooperation and exchange of information for the
    development of energy technologies with particular attention to energy efficient and
    environmentally friendly technologies, in accordance with Chapter 3 (Cooperation in
    Research and Innovation) of Title VI of this Agreement;
(e) management and technical training in the energy sector through inter alia, through facilitating
    exchange of trainees of specialised courses in higher education institutes in the European
    Union and the Republic of Kazakhstan as well as development of joint training programmes
    in accordance with good practice;
(f) extension of cooperation in multilateral energy fora, initiatives and institutions;
(g) cooperation in exchange of knowledge and experience as well as technology transfer in
    innovation, including in the areas of management and energy technologies.
                                           EU/KZ/en 294
 ---pagebreak---                                           ARTICLE 206
                                       Hydrocarbon energy
Cooperation in the field of hydrocarbon energy shall cover the following areas:
(a) modernisation and enhancement of existing and development of future energy infrastructures
    of common interest according to market principles, including those aimed at diversification of
    energy sources, suppliers and transportation routes and transport methods, as well the
    establishment of new generation capacity and the integrity, efficiency, safety and security of
    energy infrastructures, including electric power infrastructures;
(b) development of competitive, transparent and non-discriminatory energy markets in line with
    best practice through regulatory reforms;
(c) enhancement and strengthening of long-term stability and security of energy trade, including
    ensuring the predictability and stability of energy demand, on a non-discriminatory basis,
    while minimising environmental impacts and risks;
(d) promotion of a high level of environmental protection and sustainable development in the
    energy sector, including extraction, production, distribution and consumption;
                                           EU/KZ/en 295
 ---pagebreak--- (e) strengthening the safety of offshore hydrocarbon exploration and production activities, by
    means of exchange of experience on accident prevention, post-accident analysis, response and
    remediation policies, as well as best practice on liability and legal practice in case of a
    disaster.
                                           ARTICLE 207
                                     Renewable energy sources
Cooperation shall be pursued in the fields of:
(a) the development of renewable energy sources in an economic and environmentally sound
    manner, including cooperation on regulatory issues, certification and standardisation as well
    as on technological development;
(b) facilitating exchanges between the Republic of Kazakhstan and European institutions,
    laboratories and private sector entities including through joint programmes with the aim of
    implementing best practice towards creating the energy of the future and green economy;
                                           EU/KZ/en 296
 ---pagebreak--- (c)   conduction of joint seminars, conferences, training programmes and exchange of information
      and open statistical data on regular basis as well as information on development of renewable
      energy sources.
                                             ARTICLE 208
                                 Energy efficiency and energy savings
Cooperation in the promotion of energy efficiency and energy savings, including in the coal sector,
gas flaring (and the use of associated gas), buildings, appliances and transport, shall be pursued
inter alia, through:
(a)   exchanging information about energy efficiency policies and legal and regulatory frameworks
      and action plans;
(b)   facilitating the exchange of experiences, know-how in the field of energy saving and energy
      efficiency;
(c)   initiating and implementing projects, including demonstration projects, for the introduction of
      innovative technologies and solutions in the field of energy saving and energy efficiency;
                                             EU/KZ/en 297
 ---pagebreak--- (d)  training programmes and training courses in the field of energy efficiency in order to achieve
     the objectives of this Article.
                                            CHAPTER 6
                        COOPERATION IN THE AREA OF TRANSPORT
                                          ARTICLE 209
The Parties shall cooperate on :
(a)  expanding and strengthening their transport cooperation in order to contribute to the
     development of sustainable transport systems;
(b)  focusing on the social and environmental aspects of the transport systems;
(c)  promoting efficient, safe and secure transport operations;
(d)  enhancing the main transport links between their territories.
                                           EU/KZ/en 298
 ---pagebreak---                                            ARTICLE 210
This cooperation shall cover, among others, the following areas:
(a)   exchange of best practice on transport policies;
(b)   improvement of the movement of passengers and goods, increasing fluidity of transport flows
      by removing administrative, technical and other obstacles, aiming at closer market
      integration, improving transport networks and upgrading the infrastructure;
(c)   information exchange and joint activities at regional and international level and
      implementation of applicable international agreements and conventions;
(d)   exchange of best practice on safety and sustainable development of maritime transport.
The Republic of Kazakhstan shall bring its bilateral aviation agreements with the Member States of
the European Union in accordance with the legislation of the European Union.
                                           EU/KZ/en 299
 ---pagebreak---                                             ARTICLE 211
A regular dialogue shall take place on the issues covered by this Chapter.
                                             CHAPTER 7
                       COOPERATION IN THE AREA OF ENVIRONMENT
                                            ARTICLE 212
The Parties shall develop and strengthen their cooperation on environmental issues, thereby
contributing to sustainable development and good governance in environmental protection.
Cooperation shall be pursued in the fields of:
(a)   environmental assessments, monitoring and control;
(b)   environmental education and awareness raising, improving access to information, enhancing
      public participation in decision-making and access to justice in environmental matters;
                                            EU/KZ/en 300
 ---pagebreak--- (c) legislation in the field of environmental protection;
(d) air quality;
(e) waste management;
(f) water quality management, including marine environment;
(g) integrated water resource management, including promotion of advanced water saving
    technologies;
(h) conservation and protection of biological and landscape diversity;
(i) sustainable forest management;
(j) industrial pollution and industrial emissions;
(k) classification and safe management of chemicals;
                                          EU/KZ/en 301
 ---pagebreak--- (l)   initiatives of the European Union and the Republic of Kazakhstan in the area of green
      economy; and
(m) mutual exchange of experience regarding the policies for sustainable development of
      fisheries.
                                           ARTICLE 213
Cooperation in the field of environmental protection shall be carried out by mutual consent of the
Parties in, among others, the following forms:
(a)   exchange of technologies, scientific and technical information, research activities in the field
      of environmental protection;
(b)   exchange of experience on improvement of environmental legislation and methodologies.
                                           EU/KZ/en 302
 ---pagebreak---                                              ARTICLE 214
The Parties shall pay special attention to the implementation of, and cooperation in environmental
issues in the framework of relevant multilateral environmental agreements and agree to intensify
cooperation at regional level.
The Parties shall exchange experience in promoting integration of the environment into other
sectors, including exchanging best practices, increasing knowledge and competence, environmental
education and awareness raising in the areas referred to in this Chapter.
                                             EU/KZ/en 303
 ---pagebreak---                                             CHAPTER 8
                    COOPERATION IN THE AREA OF CLIMATE CHANGE
                                           ARTICLE 215
The Parties shall develop and strengthen their cooperation to combat and to adapt to climate change.
Cooperation shall be conducted considering the interests of the Parties on the basis of equality and
mutual benefit and taking into account the interdependence existing between bilateral and
multilateral commitments in this field.
                                           ARTICLE 216
Cooperation shall promote measures at domestic and international level including in the areas of:
(a)   mitigation of climate change;
(b)   adaptation to climate change;
                                           EU/KZ/en 304
 ---pagebreak--- (c)   market and non-market approaches to addressing climate change;
(d)   research, development, demonstration, deployment and diffusion of new, safe and sustainable
      low-carbon and adaptation technologies;
(e)   exchange climate expertise and support for other sectors;
(f)   awareness raising, education and training.
                                            ARTICLE 217
The Parties shall, inter alia, exchange information and expertise, implement joint research activities
and exchanges of information on cleaner technologies, implement joint activities at regional and
international level, including with regard to multilateral environmental agreements applicable to the
Parties, such as the UN Framework Convention on Climate Change, and joint activities in the
framework of relevant agencies, as appropriate.
                                            EU/KZ/en 305
 ---pagebreak---                                              CHAPTER 9
                          COOPERATION IN THE AREA OF INDUSTRY
                                             ARTICLE 218
The Parties shall develop and strengthen their cooperation on industry, including issues of
development of effective incentives and favourable conditions for the further diversification and
increasing competitiveness of the manufacturing industry.
The Parties shall cooperate to this end, including by exchange of best practice and experience, in the
following sectors:
(a)   productivity and efficiency of resource use;
(b)   public supporting measures for industry sectors, based on WTO requirements and other
      applicable rules of the Parties;
(c)   implementation of the industrial policy within a context of deepening integration;
                                             EU/KZ/en 306
 ---pagebreak--- (d)   tools to enhance the efficiency of the industrial policy implementation;
(e)   investment activity in the manufacturing industry, reducing its energy consumption, as well as
      the exchange of experiences of labour productivity policies implementation;
(f)   conditions for development of the new production technologies, high-tech industries
      formation, knowledge and technology transfer, as well as further development of basic
      infrastructure and favourable environment for innovation clusters;
(g)   in the area of investment and trade in mining and production of raw materials, with the
      objectives of promoting mutual understanding and transparency, improving the business
      environment, and promoting the exchange of information and cooperation in the area of
      non-energy mining, in particular metallic ores and industrial minerals;
(h)   human resource capacity development in the manufacturing industry;
(i)   promotion of business initiatives and industrial cooperation between enterprises of the
      European Union and of the Republic of Kazakhstan.
This Agreement does not exclude greater industrial cooperation between the Parties, and separate
arrangements may be concluded.
                                            EU/KZ/en 307
 ---pagebreak---                                             CHAPTER 10
      COOPERATION IN THE AREA OF SMALL AND MEDIUM-SIZED ENTERPRISES
                                            ARTICLE 219
The Parties shall develop and strengthen their cooperation in the area of small and medium-sized
enterprises (SMEs) to foster a business environment conducive to the successful development and
creation of SMEs.
To these ends, the Parties shall cooperate on:
(a)   exchange of information on SME development policy;
(b)   exchange of best practice on initiatives strengthening entrepreneurship as a key competence;
(c)   promoting better contacts between business associations on both sides through closer
      dialogue;
(d)   sharing experience in supporting SMEs capacity to access international markets;
                                            EU/KZ/en 308
 ---pagebreak--- (e)  exchange of experience in the area of improving the regulatory framework impact on SMEs;
(f)  exchange of best practice on access to financing for SMEs.
                                          CHAPTER 11
                      COOPERATION IN THE AREA OF COMPANY LAW
                                          ARTICLE 220
The Parties recognise the importance of an effective set of rules and practices in the areas of
company law and corporate governance, as well as in accounting and auditing, in a functioning
market economy with a predictable and transparent business environment, and underline the
importance of promoting regulatory convergence in this field.
The Parties shall cooperate on:
(a)  exchange of best practice on ensuring availability of and access to information regarding the
     organisation and representation of registered companies in a transparent and easily accessible
     way;
                                          EU/KZ/en 309
 ---pagebreak--- (b) further development of corporate governance policy in line with international and particularly
    OECD standards;
(c) fostering the implementation and consistent application of International Financial Reporting
    Standards (IFRS) for the consolidated accounts of listed companies;
(d) the approximation of accounting rules and financial reporting, including as regards small and
    medium-sized companies;
(e) the regulation of the auditor and accountant professions and oversight;
(f) international auditing standards and the International Federation of Accountants (IFAC) Ethic
    code, with the aim to improve the professional level of auditors by means of observance of
    standards and ethical norms by professional organisations, audit organisations and auditors.
                                          EU/KZ/en 310
 ---pagebreak---                                              CHAPTER 12
    COOPERATION IN THE AREA OF BANKING, INSURANCE AND OTHER FINANCIAL
                                               SERVICES
                                             ARTICLE 221
The Parties agree on the importance of an effective legislation and practices and to cooperate in the
area of financial services with the objectives of:
(a)   improving financial services regulation;
(b)   ensuring effective and adequate protection of investors and consumers of financial services;
(c)   contributing to the stability and integrity of the global financial system;
(d)   promoting cooperation between different actors of the financial system, including regulators
      and supervisors;
(e)   promoting independent and effective supervision.
                                             EU/KZ/en 311
 ---pagebreak--- The Parties shall promote regulatory convergence with recognised international standards for sound
financial systems.
                                          CHAPTER 13
                 COOPERATION IN THE AREA OF INFORMATION SOCIETY
                                          ARTICLE 222
The Parties shall promote cooperation on the development of the information society to benefit
citizens and businesses through the widespread availability of information and communication
technologies (ICT) and through better quality of services at affordable prices. This cooperation
should aim at promoting the development of competition in and openness of ICT markets as well as
encouraging investments in this sector.
                                          EU/KZ/en 312
 ---pagebreak---                                            ARTICLE 223
Cooperation shall cover, inter alia, exchange of information and best practice on the
implementation of information society initiatives, focusing notably on:
(a)   developing an effective regulatory framework for the ICT sector;
(b)   promoting broadband access;
(c)   developing interoperable electronic services;
(d)   ensuring data protection; and
(e)   developing roaming services.
                                           ARTICLE 224
The Parties shall promote cooperation between the regulators in the field of ICT, including
electronic communications, in the Republic of Kazakhstan and the European Union.
                                           EU/KZ/en 313
 ---pagebreak---                                              CHAPTER 14
                          COOPERATION IN THE AREA OF TOURISM
                                             ARTICLE 225
The Parties shall cooperate in the field of tourism, with the aim of strengthening the development of
a competitive and sustainable tourism industry as a generator of economic growth, empowerment,
employment and exchanges in the tourism sector.
                                             ARTICLE 226
Cooperation shall be based on the following principles:
a)   respect for the integrity and interests of local communities, particularly in rural areas;
b)   the importance of preserving cultural and historical heritage; and
c)   positive interaction between tourism and environmental preservation.
                                             EU/KZ/en 314
 ---pagebreak---                                            ARTICLE 227
Cooperation shall focus on the following topics:
a)  exchange of information, best practice, experience and “know-how” transfer, including on
    innovative technologies;
b)  establishment of a strategic partnership between public, private and community stakeholders
    in order to support the sustainable development of tourism;
c)  promotion and development of tourism products and markets, infrastructure, human resources
    and institutional structures as well as identifying and eliminating the barriers to travel
    services;
d)  development and implementation of efficient policies and strategies including appropriate
    legal, administrative and financial aspects;
e)  tourism training and capacity building in order to improve service standards; and
f)  development and promotion of tourism involving local population and other types of tourism
    in a sustainable manner.
                                           EU/KZ/en 315
 ---pagebreak---                                            CHAPTER 15
     COOPERATION IN THE AREA OF AGRICULTURE AND RURAL DEVELOPMENT
                                           ARTICLE 228
The Parties shall cooperate to promote agricultural and rural development, in particular through
progressive convergence of policies and legislation.
                                           ARTICLE 229
Cooperation shall cover, among others, the following areas:
a)   facilitating the mutual understanding of agricultural and rural development policies;
b)   exchanging best practice in the planning, evaluation and implementation of agricultural and
     rural development policies;
                                           EU/KZ/en 316
 ---pagebreak--- c) sharing knowledge and best practice of rural development policies to promote social and
   economic well-being for rural inhabitants;
d) promoting the modernisation and the sustainability of the agricultural production;
e) improving the competitiveness of the agricultural sector and the efficiency and transparency
   of the markets;
f) exchanging experience on geographical indications for agricultural products and foodstuffs,
   on quality policies and their control mechanisms, on ensuring food safety and on developing
   of the production of organic agricultural products;
g) disseminating knowledge and promoting extension services to agricultural producers;
h) promoting cooperation in agro-industrial investments projects, in particular in the
   development of livestock and crop sectors;
i) exchanging experience in policies related to sustainable development of agribusiness, the
   processing and distribution of agricultural products.
                                         EU/KZ/en 317
 ---pagebreak---                                              CHAPTER 16
                  COOPERATION ON EMPLOYMENT, LABOUR RELATIONS,
                        SOCIAL POLICY AND EQUAL OPPORTUNITIES
                                             ARTICLE 230
The Parties shall promote the development of dialogue and cooperate on promoting the Decent
Work Agenda, employment policy, living and working conditions and health and safety at work,
social dialogue, social protection, social inclusion and anti-discrimination as well as fair treatment
of workers legally residing and working in the other Party.
                                             ARTICLE 231
The Parties shall pursue the goals covered by Article 230, including through cooperation and
exchange of practices in the following areas:
(a)   improving the quality of life and ensuring a better social environment;
                                             EU/KZ/en 318
 ---pagebreak--- (b) enhancing social inclusion and the level of social protection for all workers and modernising
    social protection systems in terms of quality, accessibility and financial sustainability;
(c) reducing poverty and enhancing social cohesion and the protection of vulnerable people;
(d) combating discrimination in employment and social affairs in accordance with each Party’s
    obligations under international standards and conventions;
(e) promoting active labour market measures and improving efficiency of employment services;
(f) aiming at more and better jobs with decent working conditions;
(g) improving living and working conditions, as well as the level of protection of health and
    safety at work;
(h) enhancing gender equality by promoting the participation of women in social and economic
    life and ensuring equal opportunities between men and women in employment, education,
    training, economy, society and decision-making;
(i) improving the quality of the labour law and ensuring a better protection for workers;
                                          EU/KZ/en 319
 ---pagebreak--- (j)   enhancing and promoting social dialogue, including increasing the capacity of social partners.
                                            ARTICLE 232
The Parties reaffirm their commitments to effectively implementing the applicable ILO
Conventions.
The Parties, taking into account the 2006 Ministerial Declaration of the UN Economic and Social
Council on Full Employment and Decent Work, recognise that full and productive employment and
decent work for all is a key element of sustainable development.
The Parties shall encourage, in line with the ILO Declaration on fundamental principles and rights
at work, the involvement of all relevant stakeholders, in particular social partners in their respective
social policy development and in the cooperation between the Republic of Kazakhstan and the
European Union under this Agreement.
The Parties shall aim at enhancing cooperation on decent work, employment and social policy
matters in all relevant fora and organisations.
                                            EU/KZ/en 320
 ---pagebreak---                                            CHAPTER 17
                          COOPERATION IN THE AREA OF HEALTH
                                           ARTICLE 233
The Parties shall develop their cooperation in the field of public health, with a view to raising the
level of protection of human health and reducing health inequalities, in line with common health
values and principles, and as a precondition for sustainable development and economic growth.
                                           ARTICLE 234
Cooperation shall address the prevention and control of communicable and non-communicable
diseases, including through exchange of health information, promoting a health-in-all policies
approach, cooperation with international organisations in particular the World Health Organisation
and by promoting the implementation of international health agreements, such as the Framework
Convention on Tobacco Control and the International Health Regulations.
                                           EU/KZ/en 321
 ---pagebreak---                                                TITLE V
           COOPERATION IN THE AREA OF JUSTICE, FREEDOM AND SECURITY
                                            ARTICLE 235
                  Rule of law and respect for human rights and fundamental freedoms
In their cooperation under Title V, the Parties shall attach particular importance to the promotion of
the rule of law, including the independence of the judiciary, access to justice and fair trial, and
respect for human rights and fundamental freedoms.
The Parties shall cooperate in strengthening the functioning of institutions, including law
enforcement, prosecution, the administration of justice and anti-corruption.
                                            EU/KZ/en 322
 ---pagebreak---                                             ARTICLE 236
                                          Legal cooperation
The Parties shall develop cooperation in civil and commercial matters as regards the negotiation,
ratification and implementation of relevant multilateral conventions on civil judicial cooperation
and, in particular, the Conventions of the Hague Conference on Private International Law.
The Parties shall enhance cooperation in criminal matters, including on mutual legal assistance.
This may include, where appropriate and dependent on applicable procedures, accession to and
implementation of the Council of Europe Conventions in criminal proceedings by the Republic of
Kazakhstan, implementation of the relevant UN international instruments, and cooperation with
Eurojust.
                                            EU/KZ/en 323
 ---pagebreak---                                             ARTICLE 237
                                      Protection of personal data
The Parties shall cooperate in order to ensure a high level of protection of personal data, through
exchange of best practice and experience, taking into account European and international legal
instruments and standards.
This may include, where appropriate and dependent on applicable procedures, accession to and
implementation by the Republic of Kazakhstan of the Council of Europe Convention for the
Protection of Individuals with regard to Automatic Processing of Personal Data (CETS No 108) and
its additional Protocol (CETS No 181).
                                            ARTICLE 238
                      Cooperation on migration, asylum and border management
The Parties affirm the importance that they attach to management of migration flows. Cooperation
shall be based on mutual consultation between the Parties and be implemented in accordance with
the relevant legislation in force.
                                            EU/KZ/en 324
 ---pagebreak--- Within the framework of the cooperation to prevent and tackle irregular migration, the Parties agree
that:
–     the Republic of Kazakhstan shall readmit any of its nationals irregularly present on the
      territory of a Member State of the European Union, upon request by the latter and without
      undue delay;
–     and each Member State of the European Union shall readmit any of its nationals irregularly
      present on the territory of the Republic of Kazakhstan, upon request by the latter and without
      undue delay.
The Member States of the European Union and the Republic of Kazakhstan shall provide their
nationals with appropriate identity documents for such purposes without further formalities other
than those referred to in this Article and without undue delay. Where the person to be readmitted
does not possess any documents or other proof of his or her nationality, the competent diplomatic
and consular representations of the Member State concerned or the Republic of Kazakhstan shall,
upon request by the Republic of Kazakhstan or the Member State concerned, make arrangements to
interview the person in order to establish his or her nationality without further formalities and
without undue delay.
                                             EU/KZ/en 325
 ---pagebreak--- The Parties agree to establish a comprehensive dialogue on relevant migration related issues in line
with the Global Approach to Migration and Mobility, inter alia, with a view to consider possible
negotiation of an agreement between the Republic of Kazakhstan and the European Union
regulating the specific obligations for the Republic of Kazakhstan and Member States of the
European Union on readmission, including an obligation for the readmission of nationals of other
countries and stateless persons, as well as with a view to consider possible negotiation, in parallel,
of an agreement on visa facilitation for citizens of the European Union and of the Republic of
Kazakhstan.
                                             ARTICLE 239
                                          Consular protection
The Republic of Kazakhstan agrees that the diplomatic and consular authorities of any represented
Member State of the European Union shall provide protection to any national of an Member State
of the European Union that does not have an accessible permanent representation in the Republic of
Kazakhstan, on the same conditions as to nationals of that Member State of the European Union.
                                             EU/KZ/en 326
 ---pagebreak---                                             ARTICLE 240
                        Combating money laundering and terrorism financing
The Parties shall cooperate in order to prevent the use of their financial and relevant non-financial
sectors to launder the proceeds of criminal activities in general and in drug offences in particular, as
well as for the purpose of terrorism financing in accordance with international standards on
combatting money laundering and financing of terrorism, as adopted by the Financial Action Task
Force. This cooperation extends to the recovery, seizure, confiscation and return of assets or funds
derived from the proceeds of crime.
Cooperation shall allow exchanges of relevant information within the framework of the relevant
legislations and international commitments of the Parties.
                                            EU/KZ/en 327
 ---pagebreak---                                               ARTICLE 241
                                                Illicit drugs
The Parties shall cooperate on a balanced and integrated approach to drug issues, notably on issues
of illicit trafficking in narcotic drugs, psychotropic substances and their precursors. Drug policies
and actions shall be aimed at reinforcing structures for tackling the supply and the demand of illicit
drugs and psychotropic substances and their precursors, through the enhancement of the
coordination and strengthened cooperation between the competent authorities aiming at reducing
trafficking in, the supply of and the demand for illicit drugs, enhancing preventive measures,
treatment and rehabilitation, and with due regard to human rights.
Cooperation shall also aim to reduce drug-related harm, to address synthetic drug production and
use and to achieve effective prevention of diversion of drug precursors used for the illicit
manufacture of drugs and psychotropic substances.
The Parties shall agree on the means of cooperation to attain these objectives. Actions shall be
based on commonly agreed principles along the lines of the relevant international conventions and
instruments and of the European Union - Central Asia Action Plan on Drugs.
                                              EU/KZ/en 328
 ---pagebreak---                                            ARTICLE 242
                   Fight against organised and transnational crime and corruption
The Parties shall cooperate with the aim of preventing and fighting against all forms of organised,
economic, financial and transnational criminal activities, including smuggling and trafficking in
human beings, drug trafficking, firearms trafficking, embezzlement, fraud, counterfeiting, forging
of documents, and public and private corruption, through full compliance with their existing
international obligations in this field.
The Parties shall promote the enhancement of bilateral, regional and international cooperation
among law enforcement bodies, including the exchange of best practice and possible cooperation
with agencies of the European Union.
The Parties are committed to effectively implementing the relevant international standards, and in
particular those enshrined in the UN Convention against Transnational Organised Crime (UNTOC)
of 2000 and its three Protocols, and the UN Convention against Corruption of 2003. Cooperation
may include, where appropriate and dependent on applicable procedures, accession to and
implementation of Council of Europe relevant instruments on preventing and combating corruption
by the Republic of Kazakhstan.
                                           EU/KZ/en 329
 ---pagebreak---                                            ARTICLE 243
                                      Fight against cybercrime
The Parties shall strengthen cooperation with the aim of preventing and combating criminal acts
committed using electronic communications networks and information systems or against such
networks and systems, including through exchange of best practice.
                                           EU/KZ/en 330
 ---pagebreak---                                                TITLE VI
                                 OTHER COOPERATION POLICIES
                                              CHAPTER 1
                                  COOERATION ON EDUCATION
                                             ARTICLE 244
The Parties shall cooperate in the field of education and training with a view to promoting the
modernisation of the education and training systems in the Republic of Kazakhstan and
convergence with policies and practices of the European Union. The Parties shall cooperate in order
to promote lifelong learning and encourage cooperation and transparency at all levels of education
and training. The Parties shall furthermore place emphasis on measures designed to foster
inter-institutional cooperation, encourage mobility for students, academic and administrative staff,
researchers and young people and encourage the exchange of information and experience.
                                             EU/KZ/en 331
 ---pagebreak--- The Parties shall promote unified coordination of education system activity according to European
and international standards and best practice.
                                               CHAPTER 2
                            COOPERATION IN THE FIELD OF CULTURE
                                               ARTICLE 245
The Parties shall promote cultural cooperation that respects cultural diversity, in order to enhance
mutual understanding and knowledge of their respective cultures.
The Parties endeavour to take appropriate measures to promote cultural exchanges and encourage
joint initiatives in various cultural spheres.
                                               EU/KZ/en 332
 ---pagebreak--- The Parties shall consult and develop mutually beneficial cooperation in the framework of
multilateral international treaties and international organisations, such as United Nations
Educational, Scientific and Cultural Organisation (UNESCO). The Parties shall further exchange
views on cultural diversity, aiming inter alia, to promote the principles of the UNESCO Convention
on the Protection and Promotion of the Diversity of Cultural Expressions and implement projects
under the International Decade for the Rapprochement of Cultures for 2013-2022, proclaimed by
the United Nations General Assembly.
The Parties shall promote joint activities, programmes and plans, as well as the exchange of best
practice in the field of training and capacity building for artists and cultural professionals and
organisations.
                                              EU/KZ/en 333
 ---pagebreak---                                                CHAPTER 3
                       COOPERATION IN RESEARCH AND INNOVATION
                                              ARTICLE 246
The Parties shall promote cooperation:
-    in all areas of civil research, scientific and technological development, on the basis of mutual
     benefit and subject to appropriate and effective protection of intellectual property rights; and
-    to encourage the development of innovation.
                                              ARTICLE 247
Cooperation shall include:
(a)  policy dialogue and the exchange of scientific and technological information;
                                              EU/KZ/en 334
 ---pagebreak--- (b) exchanging information and good practice regarding innovation and the commercialisation of
    research and development, including support instruments for technology-based business
    start-ups, cluster development and access to finance;
(c) facilitating adequate access to the respective research and innovation programmes of each
    Party;
(d) increasing the research capacity in research entities of the Republic of Kazakhstan and
    facilitating their participation in the Framework Programme for Research and Innovation of
    the European Union and in other potential initiatives financed by the European Union;
(e) developing and promoting joint projects for research and innovation;
(f) promoting the commercialisation of results obtained from joint research and innovation
    projects;
(g) facilitating new technology access to domestic markets of the Parties;
(h) arranging training activities and mobility programmes for scientists, researchers and other
    staff engaged in research and innovation activities in both Parties;
                                             EU/KZ/en 335
 ---pagebreak--- (i)   facilitating, within the framework of applicable legislation, the free movement of research
      workers participating in activities covered by this Agreement and the cross-border movement
      of goods intended for use in such activities;
(j)   other forms of cooperation in research and innovation including through regional approaches
      and initiatives, on the basis of mutual agreement.
                                             ARTICLE 248
In carrying out the cooperation activities set out in Article 247, synergies should be sought with
regional and other activities carried out within the broader framework of financial cooperation
between the European Union and the Republic of Kazakhstan as set out in Articles 261 and 262 of
this Agreement.
                                             EU/KZ/en 336
 ---pagebreak---                                            CHAPTER 4
                COOPERATION IN THE MEDIA AND AUDIOVISUAL FIELDS
                                           ARTICLE 249
The Parties shall promote cooperation in the media and audiovisual fields, including through
exchange of information and training for journalists and other media, cinema and audiovisual
professionals.
                                           ARTICLE 250
The Parties shall exchange information and best practices in promoting the independence and
professionalism of the media, based on the standards set in the applicable international conventions,
including those of UNESCO and the Council of Europe, where appropriate.
                                           EU/KZ/en 337
 ---pagebreak---                                              CHAPTER 5
                                  CIVIL SOCIETY COOPERATION
                                             ARTICLE 251
The Parties shall continue and strengthen their dialogue, in the form of meetings and consultations,
and shall cooperate on the role of civil society, with the following objectives:
(a)   to strengthen contacts and exchange information and experience between all sectors of civil
      society in the European Union and in the Republic of Kazakhstan; enabling civil society
      representatives from a Party to become acquainted with the processes of consultation and
      dialogue with public institutions and social partners used by the other Party, with a view to
      further engaging civil society in the public policy-making process, in particular;
(b)   to ensure the involvement of civil society in the relations between the European Union and the
      Republic of Kazakhstan, in particular in implementing this Agreement;
(c)   to encourage greater capacity building, independence and transparency in civil society and to
      support its role in the economic, social and political development of the Parties.
                                             EU/KZ/en 338
 ---pagebreak--- The Parties shall support the development of relations between non-governmental organisations
from the European Union and the Republic of Kazakhstan.
The Parties shall give support to the respective institutions and non-governmental organisations
which implement activities in the area of human rights. The Parties shall share all relevant
information on cooperation programmes, formally and regularly, at least once a year.
                                              CHAPTER 6
            COOPERATION IN THE FIELD OF SPORT AND PHYSICAL ACTIVITY
                                             ARTICLE 252
The Parties shall promote cooperation in the field of sport and physical activity in order to help
develop a healthy lifestyle among all age groups, to promote the social functions and educational
values of sport and to fight against threats to sport such as doping, racism, and violence. The
cooperation shall include, in particular, the exchange of information and good practice.
                                             EU/KZ/en 339
 ---pagebreak---                                                CHAPTER 7
                      COOPERATION IN THE AREA OF CIVIL PROTECTION
                                              ARTICLE 253
The Parties recognise the need to manage both domestic and global natural and man-made disaster
risks.
In order to increase the resilience of their societies and infrastructure, the Parties affirm their
intention to improve prevention, mitigation, preparedness and response measures to natural and
man-made disasters and to cooperate, as appropriate, at bilateral and multilateral political level to
improve global disaster risk management outcomes.
Cooperation, subject to the availability of sufficient resources, shall support:
(a)    the interaction of competent bodies, other organisations, individuals that carry out activities in
       the field of civil protection;
(b)    the coordination of mutual assistance, if requested, in case of disasters;
                                              EU/KZ/en 340
 ---pagebreak--- (c)   the exchange of experience in raising awareness of populations on disaster preparedness;
(d)   training, retraining, skills upgrading and specialist training in the field of civil protection and
      in using early warning systems.
                                              CHAPTER 8
                              COOPERATION IN SPACE ACTIVITIES
                                             ARTICLE 254
The Parties shall promote, where appropriate, long-term cooperation in the areas of civil space
research and development. The Parties shall pay particular attention to initiatives envisaging
complementarity of their respective space activities.
                                             EU/KZ/en 341
 ---pagebreak---                                             ARTICLE 255
The Parties may cooperate in the areas of satellite navigation, earth observation, space research and
other areas in accordance with the interests of the Parties.
                                             CHAPTER 9
                 COOPERATION IN THE AREA OF CONSUMER PROTECTION
                                            ARTICLE 256
The Parties shall cooperate in order to ensure a high level of consumer protection and to achieve
compatibility between their systems of consumer protection.
Cooperation may comprise, when appropriate:
(a)   exchanging best practice in consumer policy, including product quality and safety
      requirements, and organising a market surveillance system and an information exchange
      mechanism;
                                            EU/KZ/en 342
 ---pagebreak--- (b)   promoting the exchange of experience with consumer protection systems, including consumer
      legislation and enforcement of this, consumer product safety, raising consumer awareness and
      empowerment, and consumer redress;
(c)   providing training activities for administration officials and other consumer interest
      representatives;
(d)   encouraging the development of independent consumer organisations and contact between
      consumer representatives.
                                            CHAPTER 10
                                    REGIONAL COOPERATION
                                            ARTICLE 257
The Parties shall promote mutual understanding and bilateral cooperation in the field of regional
policy with the objective of improving living conditions and increasing the participation of all
regions in the social and economic development of the Parties.
                                            EU/KZ/en 343
 ---pagebreak---                                            ARTICLE 258
The Parties shall support and strengthen the involvement of local and regional level authorities in
regional cooperation, in accordance with existing international agreements and arrangements, to
develop capacity building measures and to promote the strengthening of regional economic and
business networks.
                                           ARTICLE 259
The Parties shall strengthen and encourage the development of regional cooperation elements of the
areas covered by this Agreement, inter alia, transport, energy, communication networks, culture,
education, research, tourism, water resources and environment, civil protection and other areas
which have a bearing on regional cooperation.
                                           EU/KZ/en 344
 ---pagebreak---                                              CHAPTER 11
                         COOPERATION IN THE FIELD OF CIVIL SERVICE
                                            ARTICLE 260
The Parties shall facilitate the exchange of experience and knowledge in implementing international
best practices within public and civil services and in capacity building for public and civil servants
and their professional development and training.
The Parties shall facilitate dialogue on measures aimed at improving the quality of public services
and on joint efforts to promote multilateral cooperation within the framework of the regional civil
service hub in the Republic of Kazakhstan.
In this framework, the Parties shall cooperate, inter alia through facilitating:
a)     the exchange of experts;
b)     the organisation of seminars; and
c)     training activities.
                                             EU/KZ/en 345
 ---pagebreak---                                               TITLE VII
                        FINANCIAL AND TECHNICAL COOPERATION
                                            ARTICLE 261
The Parties shall continue and intensify current financial and technical cooperation, based on a
comprehensive partnership and principles of mutual interest, reciprocity, transparency,
predictability and mutual protection of the interests of the Parties.
To achieve the objectives of this Agreement, the Republic of Kazakhstan may receive financial
assistance from the European Union in the form of grants and loans, possibly in partnership with the
European Investment Bank and other international financial institutions.
                                            EU/KZ/en 346
 ---pagebreak--- Financial assistance may be provided in accordance with the relevant regulations governing the
multi-annual financial framework of the European Union1, notably in the forms of exchanges of
experts, conducting research, organising fora, conferences, seminars, training courses, grants in
support of development and implementation programmes and projects. The Financial Regulation2
and Implementing Rules3 shall apply to financing by the European Union.
Financial assistance shall be based on annual action programmes established by the European
Union, following consultations with the Republic of Kazakhstan.
1
      In particular Regulation (EU) No 233/2014 of the European Parliament and of the Council of
      11 March 2014 establishing a financing instrument for development cooperation for the
      period 2014-2020 (OJEU L 77, 15.3.2014, p. 44) and Regulation (EU) No 236/2014 of the
      European Parliament and of the Council of 11 March 2014 laying down common rules and
      procedures for the implementation of the European Union’s instruments for financing external
      action (OJEU L 77, 15.3.2014, p. 95).
2
      Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of
      25 October 2012 on the financial rules applicable to the general budget of the European Union
      and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJEU L 298, 26.10.2012,
      p. 1).
3
      European Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the
      rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament
      and of the Council on the financial rules applicable to the general budget of the European
      Union (OJEU L 362, 31.12.2012, p. 1).
                                            EU/KZ/en 347
 ---pagebreak--- The European Union and the Republic of Kazakhstan may co-finance programmes and projects.
The Parties shall coordinate programmes and projects on financial and technical cooperation and
shall exchange information on all sources of assistance.
Aid effectiveness, as laid down in the OECD Paris Declaration on Aid Effectiveness, the
“Backbone Strategy on Reforming Technical Cooperation” of the European Union, the report of the
European Court of Auditors, and the lessons learnt from implemented and ongoing cooperation
programmes of the European Union in the Republic of Kazakhstan, shall be the basis for the
delivery of financial assistance of the European Union to the Republic of Kazakhstan.
                                            EU/KZ/en 348
 ---pagebreak---                                               ARTICLE 262
The Parties shall implement financial and technical assistance in accordance with the principles of
sound financial management and cooperate in the protection of the financial interests of the
European Union and of the Republic of Kazakhstan. The Parties shall take effective measures to
prevent and fight irregularities1, fraud, corruption and any other illegal activities to the detriment of
the budget of the European Union and the Republic of Kazakhstan, by means of mutual legal and
other assistance, in the fields covered by this Agreement.
Any further agreement or financing instrument to be concluded between the Parties during the
implementation of this Agreement shall provide for specific financial cooperation clauses covering
on-the-spot inspections and controls.
1
      As defined in Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the
      protection of the European Communities financial interests, “irregularity” shall mean any
      infringement of a provision of law of the European Union, this Agreement or ensuing
      agreements and contracts resulting from an act or omission by an economic operator, which
      has, or would have, the effect of prejudicing the general budget of the European Union or
      budgets managed by it, either by reducing or losing revenue accruing from own resources
      collected directly on behalf of the European Union, or by an unjustified item of expenditure.
                                              EU/KZ/en 349
 ---pagebreak---                                               ARTICLE 263
To make optimum use of available resources, the Parties commit themselves to ensuring that the
contributions of the European Union are made in close coordination with contributions from other
sources, third countries and international financial institutions.
                                              ARTICLE 264
                                                Prevention
The Parties shall check regularly that operations financed by funds of the European Union and
co-financed by the funds of the Republic of Kazakhstan have been properly implemented and shall
take all appropriate measures to prevent irregularities, fraud, corruption, and any other illegal
activities to the detriment of the funds of the European Union and the co-financing funds of the
Republic of Kazakhstan. The Parties shall inform each other of any prevention measures taken.
                                              EU/KZ/en 350
 ---pagebreak---                                              ARTICLE 265
                                             Communication
The Parties shall inform each other, notifying in particular the European Anti-Fraud Office and the
competent authorities of the Republic of Kazakhstan, of suspected or actual cases of fraud,
corruption, or any other irregularities in connection with the implementation of the funds of the
European Union and co-financing funds of the Republic of Kazakhstan.
The Parties shall inform each other of any measures taken in relation to this Article.
                                             ARTICLE 266
                                         On-the-spot inspections
On-the-spot inspections with respect to financial assistance of the European Union shall be prepared
and conducted by the European Anti-Fraud Office in close cooperation with the competent
authorities of the Republic of Kazakhstan, in accordance with the legislation of the Republic of
Kazakhstan.
                                             EU/KZ/en 351
 ---pagebreak--- Within the framework of this Agreement, the European Anti-Fraud Office shall be authorised to
carry out on-the-spot inspections in order to protect the financial interests of the European Union, in
accordance with the provisions of Council Regulation (Euratom, EC) No 2185/96
of 11 November 19961 and Council Regulation (EU, Euratom) N° 883/20132.
                                              ARTICLE 267
                                      Investigation and prosecution
The competent bodies of the Republic of Kazakhstan shall investigate and prosecute, in accordance
with the legislation of the Republic of Kazakhstan, suspected and actual cases of fraud, corruption
and any other illegal activities to the detriment of funds of the European Union and co-financing
funds of the Republic of Kazakhstan. Where appropriate, and upon formal request, the European
Anti-Fraud Office may assist the competent authorities of the Republic of Kazakhstan in this task.
1
      Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot
      checks and inspections carried out by the European Commission in order to protect the
      European Communities’ financial interests against fraud and other irregularities
      (OJEU L 292, 15.11.1996, p. 2).
2
      Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of
      11 September 2013 concerning investigations conducted by the European Anti-Fraud Office
      (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the
      Council and Council Regulation (Euratom) No 1074/1999 (OJEU L 248, 18.9.2013, p. 1).
                                              EU/KZ/en 352
 ---pagebreak---                                                TITLE VIII
                                 INSTITUTIONAL FRAMEWORK
                                             ARTICLE 268
                                          Cooperation Council
1.    The Cooperation Council is hereby established. It shall supervise and regularly review the
implementation of this Agreement. It shall meet at ministerial level once a year. It shall examine
any major issues arising within the framework of this Agreement and any other bilateral or
international issues of mutual interest for the purpose of attaining the objectives of this Agreement.
2.    For the purpose of attaining the objectives of this Agreement, the Cooperation Council shall
take decisions within the scope of this Agreement, in the cases provided for therein. Such decisions
shall be binding upon the Parties, who shall take appropriate measures to implement the decisions
taken. The Cooperation Council may also make recommendations. It shall adopt its decisions and
recommendations by agreement between the Parties following the completion of their respective
internal procedures.
                                             EU/KZ/en 353
 ---pagebreak--- 3.    The Cooperation Council shall have the power to update or amend the Annexes to this
Agreement, based on consensus between the Parties, without prejudice to any specific provisions
under Title III (Trade and Business) of this Agreement.
4.    The Cooperation Council may delegate any of its powers to the Cooperation Committee,
including the power to take binding decisions.
5.    The Cooperation Council shall be composed of representatives of the Parties.
6.    The Cooperation Council shall be chaired in turn by a representative of the European Union
and a representative of the Republic of Kazakhstan.
7.    The Cooperation Council shall establish its rules of procedure.
8.    Either Party may refer any dispute relating to the implementation or interpretation of this
Agreement to the Cooperation Council, in accordance with Article 278 of this Agreement.
                                            EU/KZ/en 354
 ---pagebreak---                                             ARTICLE 269
                        Cooperation Committee and specialised subcommittees
1.    A Cooperation Committee is hereby established. It shall assist the Cooperation Council in the
performance of its duties.
2.    The Cooperation Committee shall be composed of representatives of the Parties, in principle
at senior civil servant level.
3.    The Cooperation Committee shall be chaired in turn by a representative of the European
Union and a representative of the Republic of Kazakhstan.
4.    The Cooperation Committee shall take decisions in the cases provided for in this Agreement
and in the areas in which the Cooperation Council has delegated powers to it. These decisions shall
be binding upon the Parties, who shall take appropriate measures to implement the decisions taken.
The Cooperation Committee shall adopt its decisions by agreement between the Parties, following
the completion of their respective internal procedures. Its responsibilities shall include preparing
meetings of the Cooperation Council.
                                            EU/KZ/en 355
 ---pagebreak--- 5.    The Cooperation Committee may meet in a special composition to address relevant issues
related to Title III (Trade and Business) of this Agreement.
6.    The Cooperation Council may decide to set up specialised subcommittees or any other bodies
that can assist it in carrying out its duties and shall determine the composition and duties of such
subcommittees or bodies and how they shall function.
7.    In its rules of procedure, the Cooperation Council shall determine the duties and functioning
of the Cooperation Committee and of any subcommittee or body set up by it.
                                               ARTICLE 270
                                 Parliamentary Cooperation Committee
1.    The Parliamentary Cooperation Committee is hereby established. It shall be a forum for
Members of the European Parliament and Members of the Parliament of the Republic of
Kazakhstan to meet and exchange views. It shall meet at intervals which it shall itself determine.
2.    The activity of the Parliamentary Cooperation Committee shall aim to develop mutually
beneficial and effective parliamentary cooperation on both sides.
                                               EU/KZ/en 356
 ---pagebreak--- 3.    The Parliamentary Cooperation Committee shall consist of Members of the European
Parliament, on the one hand, and of Members of the Parliament of the Republic of Kazakhstan, on
the other.
4.    The Parliamentary Cooperation Committee shall establish its rules of procedure.
5.    The Parliamentary Cooperation Committee shall be presided over in turn by the European
Parliament and the Parliament of the Republic of Kazakhstan respectively, in accordance with the
provisions to be laid down in its rules of procedure.
6.    The Parliamentary Cooperation Committee may request information regarding the
implementation of this Agreement from the Cooperation Council, which shall then supply the
Committee with the requested information.
7.    The Parliamentary Cooperation Committee shall be informed of the decisions and
recommendations of the Cooperation Council.
8.    The Parliamentary Cooperation Committee may make recommendations to the Cooperation
Council.
                                             EU/KZ/en 357
 ---pagebreak---                                               TITLE IX
                              GENERAL AND FINAL PROVISIONS
                                            ARTICLE 271
                             Access to courts and administrative organs
Within the scope of this Agreement, the Parties undertake to ensure that natural and legal persons of
the other Party have access free of discrimination and under similar conditions as their own natural
and legal persons to their competent courts and administrative organs to defend their individual
rights and property rights.
                                            EU/KZ/en 358
 ---pagebreak---                                              ARTICLE 272
                                         Delegation of authority
Unless otherwise specified in this Agreement, each Party shall ensure that a person that has been
delegated regulatory, administrative or other governmental authority by a Party at any level of
government, such as the power to grant import or export licences or licences for other economic
activities, to approve commercial transactions or impose quotas, fees or other charges, acts in
accordance with the Party’s obligations as set out under this Agreement in the exercise of that
authority.
                                             ARTICLE 273
             Restrictions in case of balance-of-payments and external financial difficulties
1.     Where a Party experiences serious balance-of-payments or external financial difficulties, or
there is a threat thereof, that Party may adopt or maintain safeguard or restrictive measures which
affect movements of capital, payments or transfers.
                                             EU/KZ/en 359
 ---pagebreak--- The measures referred to in paragraph 1of this Article shall:
a)    not treat a Party less favourably than a non-Party in like situations;
b)    be consistent with the Articles of Agreement of the International Monetary Fund, as
      applicable;
c)    avoid unnecessary damage to the commercial, economic and financial interests of the other
      Party;
d)    be temporary and phased out progressively as the situation specified in paragraph 1 of this
      Article improves.
3.    In the case of trade in goods, a Party may adopt or maintain restrictive measures in order to
safeguard its balance-of-payments or external financial position. Such measures shall be in
accordance with GATT 1994 and the Understanding on Balance of Payment Provisions of the
GATT 1994.
                                             EU/KZ/en 360
 ---pagebreak--- 4.     In the case of trade in services, a Party may adopt restrictive measures in order to safeguard
its balance-of-payments or external financial position. Such measures shall be in accordance with
the GATS.
5.     Any Party maintaining or having adopted restrictive measures referred to in paragraphs 1
and 2 of this Article shall promptly notify the other Party of them and present, as soon as possible, a
time schedule for their removal.
6.     Where the restrictions are adopted or maintained under this Article, consultations shall be
held promptly in the Cooperation Committee, if such consultations are not otherwise taking place
outside this Agreement.
7.     The consultations shall assess the balance-of-payments or external financial difficulty that led
to the respective measures, taking into account, inter alia, such factors as:
(a)    the nature and extent of the difficulties;
(b)    the external economic and trading environment; or
(c)    alternative corrective measures which may be available.
                                              EU/KZ/en 361
 ---pagebreak--- 8.    The consultations shall address the compliance of any restrictive measures with paragraphs 1
and 2 of this Article.
9.    In such consultations all findings of statistical and other facts presented by the IMF relating to
foreign exchange, monetary reserves and balance-of-payments shall be accepted by the Parties and
conclusions shall be based on the assessment by the IMF of the balance- of- payments and the
external financial situation of the Party concerned.
                                              ARTICLE 274
                              Measures related to essential security interests
1.    Nothing in this Agreement shall be construed:
(a)   to require any Party to furnish any information, the disclosure of which it considers contrary
      to its essential security interests; or
                                              EU/KZ/en 362
 ---pagebreak--- (b) to prevent any Party from taking any action which it considers necessary for the protection of
    its essential security interests:
    (i)    connected with the production of, or trade in arms, munitions or war material;
    (ii)   relating to economic activities carried out directly or indirectly for the purpose of
           provisioning a military establishment;
    (iii) relating to fissionable and fusionable materials or the materials from which they are
           derived;
    (iv) relating to government procurement indispensable for national security or for defence
           purposes; or
    (v)    taken in time of war or other emergency in international relations;
or
(c) to prevent any Party from taking any action in pursuance of obligations it has accepted for the
    purpose of maintaining international peace and security.
                                           EU/KZ/en 363
 ---pagebreak---                                              ARTICLE 275
                                           Non-discrimination
1.    In the fields covered by this Agreement and without prejudice to any special provisions
contained therein:
–     the arrangements applied by the Republic of Kazakhstan in respect of the European Union
      and its Member States shall not give rise to any discrimination between the Member States of
      the European Union, their natural or legal persons;
–     the arrangements applied by the European Union or its Member States in respect of the
      Republic of Kazakhstan shall not give rise to any discrimination between natural or legal
      persons of the Republic of Kazakhstan.
2.    The provisions of paragraph 1 of this Article shall be without prejudice to the right of the
Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in
identical situations as regards their place of residence.
                                             EU/KZ/en 364
 ---pagebreak---                                             ARTICLE 276
                                                Taxation
1.   This Agreement shall only apply to taxation measures in so far as such application is
necessary to give effect to the provisions of this Agreement.
2.   Nothing in this Agreement shall be construed to prevent the adoption or enforcement of any
measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of
agreements to avoid double taxation or other tax arrangements or domestic fiscal legislation.
                                            ARTICLE 277
                                       Fulfilment of obligations
1.   The Parties shall take any measures required to fulfil their obligations under this Agreement.
They shall ensure that the objectives set out in this Agreement are attained.
                                            EU/KZ/en 365
 ---pagebreak--- 2.    The Parties agree to consult promptly through appropriate channels at the request of either
Party to discuss any matter concerning the interpretation or implementation of this Agreement and
other relevant aspects of the relations between the Parties.
3.    Each Party shall refer to the Cooperation Council any dispute related to the interpretation or
implementation of this Agreement in accordance with Article 278 of this Agreement.
4.    The Cooperation Council may settle a dispute in accordance with the Article 278 of this
Agreement and by means of a binding decision.
                                            ARTICLE 278
                                           Dispute settlement
1.    When a dispute arises between the Parties concerning the interpretation or implementation of
this Agreement, any Party shall submit to the other Party and the Cooperation Council a formal
request that the matter in dispute be resolved. By way of derogation, disputes concerning the
interpretation or implementation of Title III (Trade and Business) of this Agreement shall be
exclusively governed by Chapter 14 of Title III (Trade and Business) of this Agreement.
                                            EU/KZ/en 366
 ---pagebreak--- 2.     The Parties shall endeavour to resolve the dispute by entering into good faith consultations
within the Cooperation Council as provided in Article 268 of this Agreement with the aim of
reaching as soon as possible a mutually acceptable solution. Consultations on a dispute can also be
held at meetings of the Cooperation Committee or any other relevant subcommittee or body set up
on the basis of Article 269 of this Agreement, as agreed between the Parties or at the request of
either of the Parties. Consultations may also be held in writing.
3.     The Parties shall provide the Cooperation Council, the Cooperation Committee or any other
relevant subcommittee or body with all information required for a thorough examination of the
situation.
4.     A dispute shall be deemed to be resolved when the Cooperation Council has taken a binding
decision to settle the matter as provided for in Article 277 of this Agreement, or when it has
declared that the dispute is at an end.
5.     All information disclosed during the consultations shall remain confidential.
                                            EU/KZ/en 367
 ---pagebreak---                                               ARTICLE 279
                      Appropriate measures in case of non-fulfilment of obligations
1.     If the matter is not resolved within three months of the date of notification of a formal request
for a dispute settlement in accordance with Article 278 of this Agreement and if the complaining
Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may
take appropriate measures, except in the case of disputes concerning the interpretation or
implementation of Title III (Trade and Business).
2.     By way of derogation from paragraph 1 of this Article, any Party may immediately take
appropriate measures with regard to this Agreement in accordance with international law in case of:
–      denunciation of this Agreement not sanctioned by the general rules of international law within
       the meaning of Article 60 paragraph 3 of the 1969 Vienna Convention on the Law of Treaties,
       or
–      violation by the other Party of any of the essential elements of this Agreement referred to in
       Articles 1 and 11 of this Agreement.
                                              EU/KZ/en 368
 ---pagebreak--- In these cases, the appropriate measure shall be notified immediately to the other Party. At the
request of the other Party, consultations shall be held for a period of up to twenty (20) days. After
this period, the measure shall apply.
3.    In the selection of appropriate measures, priority shall be given to those which least disturb
the functioning of this Agreement and are proportionate to the nature and gravity of the breach.
These measures shall be notified immediately to the Cooperation Council and shall be the subject of
immediate consultations, during which each Party has the right to remove the violation in question.
                                             ARTICLE 280
                                   Public access to official documents
The provisions of this Agreement shall be without prejudice to the application of the relevant
legislation of the Parties regarding public access to official documents.
                                             EU/KZ/en 369
 ---pagebreak---                                              ARTICLE 281
                  Entry into force, provisional application, duration and termination
1.     This Agreement shall enter into force on the first day of the month following the date on
which the Parties notify each other through diplomatic channels of the completion of the procedures
necessary for this purpose.
2.     Unless otherwise specified in Title III (Trade and Business) of this Agreement, the latter shall
apply as of the date of the entry into force referred to in paragraph 1 of this Article, provided that
the Republic of Kazakhstan has become a Member of the WTO by that date. In case the Republic of
Kazakhstan becomes a Member of the WTO after the date of entry into force of this Agreement,
unless otherwise specified in Title III (Trade and Business) of this Agreement, the latter shall apply
as of the date the Republic of Kazakhstan has become a Member of the WTO.
3.     Notwithstanding paragraphs 1 and 2 of this Article, the European Union and the Republic of
Kazakhstan may apply this Agreement provisionally in whole or in part, in accordance with their
respective internal procedures and legislation as applicable.
                                             EU/KZ/en 370
 ---pagebreak--- 4.    The provisional application begins on the first day of the first month following the date on
which:
a)    the European Union has notified the Republic of Kazakhstan of the completion of the
      necessary procedures, indicating, where relevant, the parts of this Agreement that shall be
      provisionally applied; and
b)    the Republic of Kazakhstan has notified the European Union of the ratification of this
      Agreement.
5.    Unless otherwise specified in Title III (Trade and Business) of this Agreement, the latter shall
apply provisionally as of the date of provisional application referred to in paragraph 4 of this
Article, provided that the Republic of Kazakhstan has become a Member of the WTO by that date.
In case the Republic of Kazakhstan becomes a Member of the WTO after the date of the provisional
application of this Agreement but before its entry into force, unless otherwise specified in Title III
(Trade and Business), the latter shall apply provisionally as of the date the Republic of Kazakhstan
has become a Member of the WTO.
                                            EU/KZ/en 371
 ---pagebreak--- 6.    For the purpose of the relevant provisions of this Agreement, including the respective annexes
and protocols hereto, any reference in such provisions to the “date of entry into force of this
Agreement” shall be understood to also refer to the date from which this Agreement is provisionally
applied in accordance with paragraphs 4 and 5 of this Article.
7.    Upon the entry into force of this Agreement, the Partnership and Cooperation Agreement
between the European Communities and their Member States, of the one part, and the Republic of
Kazakhstan, of the other part, signed on 23 January 1995 and in force from 1 July 1999 is repealed.
8.    This Agreement replaces the aforementioned agreement. References to the aforementioned
agreement in all other agreements between the Parties shall be construed as referring to this
Agreement.
9.    This Agreement is concluded for an unlimited period, with the possibility of termination after
notification by either of the Parties through diplomatic channels. The termination shall take effect
six months after receipt of the notification by one of the Parties to terminate this Agreement. Such
termination shall not affect ongoing projects commenced under this Agreement prior to the receipt
of the notification.
                                             EU/KZ/en 372
 ---pagebreak--- 10.    Either Party may terminate the provisional application by a written notification delivered to
the other Party through diplomatic channels. The termination shall take effect six months after
receipt of the notification by one of the Parties to terminate the provisional application of this
Agreement. Such termination shall not affect ongoing projects commenced under this Agreement
prior to the receipt of the notification.
                                             ARTICLE 282
Existing agreements between the Parties relating to specific areas of cooperation falling within the
scope of this Agreement shall be considered part of the overall bilateral relations as governed by
this Agreement and as forming part of a common institutional framework.
                                             ARTICLE 283
1.     The Parties may by mutual consent amend, revise, and expand this Agreement with a view to
enhancing the level of cooperation.
                                             EU/KZ/en 373
 ---pagebreak--- 2.    The Parties may complement this Agreement by concluding specific international agreements
between them in any area falling within its scope. Such specific international agreements between
the Parties shall be an integral part of the overall bilateral relations as governed by this Agreement
and shall form part of a common institutional framework.
                                              ARTICLE 284
                                          Annexes and protocols
Annexes and protocols to this Agreement shall form an integral part thereof.
                                              ARTICLE 285
                                         Definition of the Parties
[PLACEHOLDER.]
                                              EU/KZ/en 374
 ---pagebreak---                                              ARTICLE 286
                                          Territorial application
This Agreement shall apply to the territories in which the Treaty on European Union (TEU) and the
Treaty on the Functioning of the European Union (TFEU) are applied and under the conditions laid
down in those treaties, and to the territory of the Republic of Kazakhstan.
                                             ARTICLE 287
                                             Authentic texts
This Agreement is drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English,
Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish,
Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish, Kazakh and Russian, each of these
texts being equally authentic.
                                             EU/KZ/en 375
 ---pagebreak---                                                                                               ANNEX I
                     RESERVATIONS IN ACCORDANCE WITH ARTICLE 46
A.    RESERVATIONS BY THE REPUBLIC OF KAZAKHSTAN
The Republic of Kazakhstan reserves the right to maintain or adopt any measure inconsistent with
national treatment commitments as set out below:
1.    Subsurface sector
1.1. Use of surface and subsurface in the Republic of Kazakhstan is subject to establishment in the
      form of a juridical person of the Republic of Kazakhstan (i.e. subsidiary company).
1.2   The State has a priority right to purchase the subsurface use right (or a part thereof) and/or an
      object related to subsurface use rights.
2.    Strategic resources and objects
The Republic of Kazakhstan may refuse to permit juridical persons controlled by natural or juridical
persons of the European Union and their branches established in the territory of the Republic of
Kazakhstan to carry out transactions on the use of strategic resources and/or purchase of strategic
objects in the Republic of Kazakhstan, if such use or purchase may lead to concentration of rights
with one person or group of persons from the same countries. The compliance with this condition is
also mandatory with respect to affiliates as defined in the relevant legislation of the Republic of
Kazakhstan1. The Republic of Kazakhstan could establish limits on ownership rights and transfer of
ownership rights for strategic resources and objects of the Republic of Kazakhstan based on
national security interests.
1
      Article 64 of Law No 415 of 13 May 2003 on joint stock companies of the Republic of
      Kazakhstan and Article 12 of Law No 220-I of 22 April 1998 on limited liability companies
      and additional liability companies of the Republic of Kazakhstan.
                                         EU/KZ/Annex I/en 1
 ---pagebreak--- 3.  Real estate
3.1 Juridical persons controlled by natural or juridical persons of the European Union and their
    branches established in the territory of the Republic of Kazakhstan cannot privately own lands
    used for farming/agricultural production or forest planning purposes. Juridical persons
    controlled by natural or juridical persons of the European Union and their branches
    established in the territory of the Republic of Kazakhstan might be granted the right of
    temporary land use for farming/agricultural production purposes for a period of up to 10
    years, renewable.
3.2 Private ownership of land plots located in the border zone, in the borderland and within
    seaports of the Republic of Kazakhstan is prohibited for juridical persons controlled by
    natural or juridical persons of the European Union and their branches established in the
    territory of the Republic of Kazakhstan.
3.3 Lease-holding of land plots for agricultural purposes adjacent to the State border of the
    Republic of Kazakhstan is restricted for juridical persons controlled by natural or juridical
    persons of the European Union and their branches established in the territory of the Republic
    of Kazakhstan.
3.4 The right of permanent land use cannot be granted to juridical persons controlled by natural or
    juridical persons of the European Union and their branches established in the territory of the
    Republic of Kazakhstan.
                                        EU/KZ/Annex I/en 2
 ---pagebreak--- 4.    Fauna
4.1   Access to and use of the biological resources and fishing grounds situated in the maritime and
      internal waters coming under the sovereignty or within the jurisdiction of the Republic of
      Kazakhstan is restricted to fishing vessels flying the flag of the Republic of Kazakhstan and
      registered in the territory of the Republic of Kazakhstan unless otherwise provided for.
      Fishing vessels owned by subsidiaries of juridical persons of the European Union established
      in the form of a juridical person of the Republic of Kazakhstan shall not be prohibited from
      flying the flag of the Republic of Kazakhstan.
4.2   The priority in granting usage of wildlife in a particular area or water zone is given to juridical
      persons of the Republic of Kazakhstan.
5.    Establishment requirements for licensing purposes
Companies producing goods subject to licensing due to important reasons of public health, safety or
national security shall be established in the form of a juridical person of the Republic of
Kazakhstan.
6.    Continental shelf
Limitations might be introduced within the continental shelf of the Republic of Kazakhstan.
                                          EU/KZ/Annex I/en 3
 ---pagebreak--- B.    RESERVATIONS BY THE EUROPEAN UNION
The European Union reserves the right to maintain or adopt any measure inconsistent with national
treatment commitments differentiated by its Member States, where applicable, as set out below.
1.    Mining and quarrying including the extraction of oil and natural gas
In some Member States of the European Union restrictions may apply; the European Union may
apply restrictions to juridical persons controlled by natural or juridical persons of the Republic of
Kazakhstan which account for more than 5 % of the European Union's oil or natural gas imports.
2.    Production of petroleum products, gas, electricity, steam, hot water and heat
In some Member States of the European Union restrictions may apply; the European Union may
apply restrictions to juridical persons controlled by natural or juridical persons of the Republic of
Kazakhstan which account for more than 5 % of the European Union's oil or natural gas imports.
3.    Fishing
Access to and use of the biological resources and fishing grounds situated in the maritime waters
coming under the sovereignty or within the jurisdiction of the Member States of the European
Union is restricted to fishing vessels flying the flag of a Member State of the European Union and
registered in European Union territory unless otherwise provided for.
4.    Acquisition of real estate including land
In some Member States of the European Union, restrictions may apply to the acquisition of real
estate including land by juridical persons controlled by natural or juridical persons of the Republic
of Kazakhstan.
                                          EU/KZ/Annex I/en 4
 ---pagebreak--- 5.    Agriculture including hunting
In some Member States of the European Union, national treatment is not applicable to juridical
persons controlled by natural or juridical persons of the Republic of Kazakhstan which wish to
undertake an agricultural enterprise; the acquisition of vineyards by juridical persons controlled by
natural or juridical persons of the Republic of Kazakhstan is subject to notification or, as necessary,
authorisation.
6.    Aquaculture activities
National treatment does not apply to aquaculture activities in the territory of the European Union.
7.    Extraction and processing of fissionable and fusionable materials or materials from which
they are derived
In some Member States of the European Union restrictions may apply.
                                          ________________
                                         EU/KZ/Annex I/en 5
 ---pagebreak---                                                                                            ANNEX II
                LIMITATIONS APPLIED BY THE REPUBLIC OF KAZAKHSTAN
                              IN ACCORDANCE WITH ARTICLE 48(2)
A juridical person of the European Union attracting intra-corporate transferees (ICT) in a
non-services sector must be engaged in production of goods.1
Employment of ICTs as managers and specialists shall meet the requirements of economic needs
test.2 Upon expiration of a five-year period after the Republic of Kazakhstan’s accession to the
WTO, economic needs test shall not be applied.3
The number of ICTs is limited to 50 per cent of the total number of executives, managers and
specialists within each category in companies with a minimum of three individuals.
The entry and temporary stay of ICTs of the Party shall be permitted for three years, based on the
permits, annually issued by the authorised body.
                                          ________________
1
       Attraction of ICTs within subsurface use contracts will be performed in accordance with the
       Republic of Kazakhstan’s WTO Accession Protocol.
2
       Work permit is issued only after search of appropriate candidates in the database of the
       competent authority and publication of vacancy announcement in mass-media is completed.
       These procedures shall take no longer than 1 month. Permission for intra-corporate transferee
       shall be granted after these procedures have been completed unless the company has
       identified a local candidate who meets its needs.
3
       All other requirements, laws and regulations regarding entry, stay and work shall continue to
       apply.
                                         EU/KZ/Annex II/en 1
 ---pagebreak---                                                                                           ANNEX III
   SCOPE OF CHAPTER 8 (GOVERNMENT PROCUREMENT) OF TITLE III (TRADE AND
                                                 BUSINESS)
                                                  PART 1
                        Central government entities whose procurement is covered
Thresholds referred to in Article 120 paragraph 2 subparagraph c of this Agreement:
300.000 Special Drawing Rights (SDRs) for goods and for services other than construction services
(Parts 4 and 5 of this Annex)
7 million SDRs for construction services (Part 6 of this Annex)
For the European Union:
The central government entities of the Member States of the European Union listed in Annex 1 of
the European Union to Appendix 1 to the WTO Government Procurement Agreement. The
coverage of Chapter 8 of Title III of this Agreement does not include the entities marked by an
asterisk (*) in that list, nor the Ministries of Defence mentioned therein.
Note:
The list of procuring entities covers also any subordinated entity of any listed procuring entity of a
Member State of the European Union provided it does not have a separate legal personality.
                                           EU/KZ/Annex III/en 1
 ---pagebreak--- For the Republic of Kazakhstan:
-     Ministry of Investments and Development of the Republic of Kazakhstan
-     Ministry of Energy of the Republic of Kazakhstan
-     Ministry of Agriculture of the Republic of Kazakhstan
-     Ministry of National Economy of the Republic of Kazakhstan
-     Ministry of Foreign Affairs of the Republic of Kazakhstan
-     Ministry of Healthcare and Social Development of the Republic of Kazakhstan
-     Ministry of Finance of the Republic of Kazakhstan
-     Ministry of Justice of the Republic of Kazakhstan
-     Ministry of Education and Science of the Republic of Kazakhstan
-     Ministry of Culture and Sport of the Republic of Kazakhstan
-     Accounts Committee for Control over Execution of the Republican Budget
-     Agency for Civil Service Affairs and Anti-Corruption Enforcement of the Republic of
      Kazakhstan
-     National Centre on Human Rights.
Note:
The organisation and the carrying out of procurement procedures for the above state bodies can be
conducted by a single institution, determined in accordance with the legislation of the Republic of
Kazakhstan.
                                        EU/KZ/Annex III/en 2
 ---pagebreak---                                                 PART 2
                Regional and local government entities whose procurement is covered
Thresholds referred to in Article 120 paragraph 2 subparagraph c of this Agreement:
400.000 Special Drawing Rights (SDRs) for goods and for services other than construction services
(Parts 4 and 5 of this Annex)
7 million SDRs for construction services (Part 6 of this Annex)
For the European Union:
All regional government entities of the Member States of the European Union
Notes:
For the purposes of this Agreement, “Regional government entities” shall be understood as
procuring entities of the administrative units falling under NUTS 1 and 2, as referred to in
Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on
the establishment of a common classification of territorial units for statistics1 (“NUTS Regulation”).
1
      Official Journal of the European Union (OJ L154, 21.6.2003, p. 1).
                                        EU/KZ/Annex III/en 3
 ---pagebreak--- For the Republic of Kazakhstan:
-     Administration of Almaty oblast
-     Administration of Atyrau oblast
-     Administration of Aktobe oblast
-     Administration of Akmola oblast
-     Administration of the Eastern Kazakhstan oblast
-     Administration of Zhambyl oblast
-     Administration of Western Kazakhstan oblast
-     Administration of the Karaganda oblast
-     Administration of Kyzylorda oblast
-     Administration of Kostanay oblast
-     Administration of Mangistau oblast
-     Administration of Pavlodar oblast
-     Administration of the North Kazakhstan oblast
-     Administration of the South-Kazakhstan oblast
-     Administration of Astana city
-     Administration of Almaty city.
Note: The organisation and the carrying out of procurement procedures for the above state bodies
can be conducted by a single institution, determined in accordance with the legislation of the
Republic of Kazakhstan.
                                               PART 3
                          All other entities whose procurement is covered
(none)
                                       EU/KZ/Annex III/en 4
 ---pagebreak---                                                 PART 4
                                            Goods covered
For the European Union and the Republic of Kazakhstan:
1.    This Agreement shall apply to the procurement of all goods by the entities listed in Parts 1
      to 3 of this Annex, unless otherwise specified in this Agreement.
2.    List of goods referred to in Article 137 of this Agreement:
The HS code numbers of the Harmonised System Nomenclature of the World Customs
Organisation provided for under this paragraph identify the goods referred to in Article 133 of this
Agreement. The description is given for information only.
No.             HS Codes           Commodity groups
1               0401 to 0402       Milk and cream
2               0701 to 0707       Certain edible vegetables
3               2501 to 2530       Other non-metallic mineral products
4               2801 to 2940       Certain chemicals and chemical products
5               3101 to 3826       Certain chemicals and chemical products
6               3917               Pipes, tubes, hoses, and fittings therefor of plastics
7               4801               Newsprint, in rolls or sheets
                                   Toilet paper napkins or facial tissue, towels or diapers and other
8               4803
                                   household paper – domestic or sanitary – hygienic products
9               5101 to 6006       Textile and textile articles
10              7201 to 8113       Base metals and articles of base metals
                                        EU/KZ/Annex III/en 5
 ---pagebreak--- No. HS Codes     Commodity groups
11  8201 to 8311 Finished metal products, except machinery and equipment
                 Self-propelled bulldozers, angledozers, graders, levellers,
12  8429         scrapers, mechanical shovels, excavators, shovel loaders, tamping
                 machines and road rollers
13  8501 to 8517 Certain machinery and equipment
14  8535 to 8548 Certain electrical equipment
15  870130       Track-laying tractors
16  870190       Other in 8701 Tractors (other than tractors of heading 87.09)
                 Motor vehicles for the transport of ten or more persons, including
17  8702
                 the driver
                 Motor cars and other motor vehicles principally designed for the
18  8703         transport of persons (other than those of heading 8702), including
                 station wagons and racing cars
19  8704         Motor vehicles for the transport of goods
                 Special purpose motor vehicles, other than those principally
                 designed for the transport of persons or goods (for example,
20  8705         breakdown lorries, crane lorries, fire fighting vehicles,
                 concrete-mixer lorries, road sweeper lorries, spraying lorries,
                 mobile workshops, mobile radiological units)
                 Trailers and semi-trailers; other vehicles, not mechanically
21  8716
                 propelled; parts thereof
22  8802         Helicopters and spacecraft
23  940350       Wooden furniture of a kind used in the bedroom
24  9405         Lamps and lighting equipment
                       EU/KZ/Annex III/en 6
 ---pagebreak---                                                  PART 5
                                            Services covered
For the European Union and the Republic of Kazakhstan:
This Agreement shall apply to the procurement by the entities listed in Parts 1 to 3 of this Annex, of
the following services, which are identified in accordance with Division 51 of the United Nations
Provisional Central Product Classification (CPCprov) as contained in the Services sectoral
classification list of the World Trade Organisation (“WTO”) (MTN.GNS/W/120):1
Description                                           CPCprov Reference No.
Telecommunications services                           7522
Financial auditing services                           86211
Accounts auditing services                            86212
Market research services                              86401
Management consulting services                        865
Services related to management consulting,            8663
1
      Except for services which procuring entities have to procure from another entity pursuant to
      an exclusive right established by a published law, regulation or administrative provision
2
      As regards the Republic of Kazakhstan, except for local telecommunication services and radio
      communication services, including satellite communication, other than services provided by
      foreign satellite operators to juridical persons of the Republic of Kazakhstan holding a license
      for telecommunication services, as provided for in the GATS Schedule of Specific
      Commitments of the Republic of Kazakhstan
3
      Except for arbitration and conciliation services
                                          EU/KZ/Annex III/en 7
 ---pagebreak--- Description                                          CPCprov Reference No.
Architectural services                               8671
Engineering Services                                 8672
Integrated Engineering Services                      8673
Urban planning and landscape architectural           8674
services
Related scientific and technical consulting          86751
services
Note:
The services covered are subject to the limitations and conditions specified in each Party’s Schedule
of Specific Commitments under the General Agreement on Trade in Services (GATS).
                                                PART 6
                                     Construction Services covered
For the European Union and the Republic of Kazakhstan:
This Agreement shall apply to the procurement by the entities listed in Parts 1 to 3 of this Annex of
all construction services listed in CPCprov.
Note:
The services covered are subject to the limitations and conditions specified in each Party’s Schedule
of Specific Commitments under the General Agreement on Trade in Services (GATS).
1
      Except for land surveying for the purpose of establishing legal boundaries, aerial surveying
      and aerial map-making and except for СРС 86754 as provided for in the GATS Schedule of
      Specific Commitments of the Republic of Kazakhstan
                                        EU/KZ/Annex III/en 8
 ---pagebreak---                                                  PART 7
                                              General Notes
For the European Union:
1.    Chapter 8 of Title III (Trade and business) of this Agreement does not cover:
      (a)   procurement of agricultural products made in furtherance of agricultural support
            programmes and human feeding programmes (e.g. food aid including urgent relief aid);
            and
      (b)   procurement for the acquisition, development, production or co-production of
            programme material by broadcasters and contracts for broadcasting time.
2.    Procurement by procuring entities covered under Parts 1 and 2 of this Annex in connection
      with activities in the fields of drinking water, energy, transport and the postal sector are not
      covered by this Agreement, unless covered under Part 3 of this Annex.
3.    In respect of the Åland Islands, the special conditions of Protocol No 2 on the Åland Islands
      to the Treaty of accession of Finland to the European Union shall apply.
4.    As far as procurement by entities in the field of defence and security is concerned, coverage
      shall be limited to goods that are non-sensitive and non-warlike materials.
5.    The procurement by procuring entities of good or service components of procurement which
      are not themselves covered by this Agreement shall not be considered as covered
      procurement.
                                          EU/KZ/Annex III/en 9
 ---pagebreak--- For the Republic of Kazakhstan:
1.    Chapter 8 of Title III (Trade and business) of this Agreement does not cover:
      (a)  procurement of agricultural products made in furtherance of agricultural support
           programmes (including procurement for food security purposes) and human feeding
           programmes (e.g. food aid including urgent relief aid);
      (b)  procurement for the acquisition, development, production or co-production of
           programme material by broadcasters and contracts for broadcasting time;
      (c)  procurement of goods, works and services pursuant to Article 41(3) of Law No 303-III
           on Government Procurement of 21 July 2007 when it involves information which
           constitutes a state secret;
      (d)  procurement in the field of research and exploration of space for peaceful purposes,
           international cooperation in the implementation of joint projects and programs in the
           field of space activities;
      (e)  procurement of goods, works and services that are exclusively provided by a natural or
           state monopoly; or
      (f)  procurement of financial services, unless specified in Part 5 of this Annex.
                                       EU/KZ/Annex III/en 10
 ---pagebreak--- 2. Chapter 8 of Title III (Trade and business) of this Agreement does not apply to any set-aside
   for the benefit of small or minority-owned businesses or businesses that employ people with
   special needs. A set-aside means any form of preference, such as the exclusive right to
   provide a good or service, or any price preference.
3. Chapter 8 of Title III (Trade and business) of this Agreement does not cover procurement
   made by a covered entity on behalf of a non-covered entity.
4. The procurement by procuring entities of good or service components of procurement which
   are not themselves covered by this Agreement shall not be considered as covered
   procurement.
5. Procurement by procuring entities covered under Parts 1 and 2 of this Annex in connection
   with activities in the fields of drinking water, energy, transport and the postal sector are not
   covered by this Agreement, unless covered by Part 3 of this Annex.
                                        ________________
                                       EU/KZ/Annex III/en 11
 ---pagebreak---                                                                                            ANNEX IV
                                   MEDIA FOR PUBLICATION
                      OF PROCUREMENT INFORMATION AND NOTICES
OF CHAPTER 8 (GOVERNMENT PROCUREMENT) OF TITLE III (TRADE AND BUSINESS)
                                               PART 1
                         Media for Publication of Procurement Information
For THE EUROPEAN UNION:
OFFICIAL JOURNAL OF THE EUROPEAN UNION
http://simap.europa.eu
BELGIUM
Laws, royal regulations, ministerial regulations, ministerial circulars - le Moniteur Belge
Jurisprudence - Pasicrisie
BULGARIA
Laws and Regulations - Държавен вестник (State Gazette)
Judicial decisions - www.sac.government.bg
Administrative rulings of general application and any procedure - www.aop.bg and www.cpc.bg
CZECH REPUBLIC
Laws and Regulations - Sbírka zákonů České republiky (Collection of Laws of the Czech Republic)
Rulings of the Office for the Protection of Competition - Collection of Rulings of the Office for the
Protection of Competition
                                        EU/KZ/Annex IV/en 1
 ---pagebreak--- DENMARK
Laws and regulations - Lovtidende
Judicial decisions - Ugeskrift for Retsvaesen
Administrative rulings and procedures - Ministerialtidende
Rulings by the Appeal Board for Public Procurement - Konkurrencerådets Dokumentation
GERMANY
Legislation and regulations - Bundesanzeiger
Judicial Decisions: Entscheidungsammlungen des Bundesverfassungsgerichts, Bundesgerichtshofs,
Bundesverwaltungsgerichts,
Bundesfinanzhofs sowie der Oberlandesgerichte
ESTONIA
Laws, regulations and administrative rulings of general application: Riigi Teataja
Judicial decisions of the Supreme Court of Estonia: Riigi Teataja (part 3)
GREECE
Official Journal of the Hellenic Republic - Εφημερίδα της Κυβερνήσεως της Ελληνικής
Δημοκρατίας
SPAIN
Legislation - Boletín Oficial del Estado
Judicial rulings - no official publication
FRANCE
Legislation - Journal Officiel de la République française
Jurisprudence - Recueil des arrêts du Conseil d’Etat
Revue des marchés publics
IRELAND
Legislation and regulations - Iris Oifigiúil (Official Gazette of the Irish Government)
                                         EU/KZ/Annex IV/en 2
 ---pagebreak--- ITALY
Legislation - Gazzetta Ufficiale
Jurisprudence - no official publication
CYPRUS
Legislation - Official Gazette of the Republic (Επίσημη Εφημερίδα της Δημοκρατίας)
Judicial decisions: Decisions of the Supreme High Court - Printing Office (Αποφάσεις Ανωτάτου
Δικαστηρίου 1999 - Τυπογραφείο της Δημοκρατίας)
LUXEMBOURG
Legislation - Memorial
Jurisprudence - Pasicrisie
HUNGARY
Legislation - Magyar Közlöny (Official Journal of the Republic of Hungary)
Jurisprudence - Közbeszerzési Értesítő - a Közbeszerzések Tanácsa
Hivatalos Lapja (Public Procurement Bulletin - Official Journal of the Public Procurement Council)
LATVIA
Legislation - “Latvijas Vēstnesis” (Official Newspaper)
LITHUANIA
Laws, regulations and administrative provisions - Official Gazette (“Valstybės Žinios”) of the
Republic of Lithuania
Judicial decisions, jurisprudence - Bulletin of the Supreme Court of Lithuania “Teismų praktika”;
Bulletin of the
Supreme Court of Administrative Court of Lithuania “Administracinių teismų praktika”
MALTA
Legislation - Government Gazette
                                        EU/KZ/Annex IV/en 3
 ---pagebreak--- NETHERLANDS
Legislation - Nederlandse Staatscourant and/or Staatsblad
Jurisprudence - no official publication
AUSTRIA
Legislation - Österreichisches Bundesgesetzblatt Amtsblatt zur Wiener Zeitung
Judicial decisions, jurisprudence - Sammlung von Entscheidungen des Verfassungsgerichtshofes
Sammlung der Entscheidungen des Verwaltungsgerichtshofes -administrativrechtlicher und
finanzrechtlicher Teil
Amtliche Sammlung der Entscheidungen des OGH in Zivilsachen
POLAND
Legislation - Dziennik Ustaw Rzeczypospolitej Polskiej (Journal of Laws - Republic of Poland)
Judicial decisions, jurisprudence - “Zamówienia publiczne w orzecznictwie. Wybrane orzeczenia
zespołu arbitrów i Sądu Okręgowego w Warszawie” (Selection of judgments of arbitration panels
and Regional Court in Warsaw)
PORTUGAL
Legislation - Diário da República Portuguesa 1a Série A e 2a série
Judicial Publications - Boletim do Ministério da Justiça
Colectânea de Acordos do SupremoTribunal Administrativo;
Colectânea de Jurisprudencia das Relações
ROMANIA
Laws and Regulations - Monitorul Oficial al României (Official Journal of Romania)
Judicial decisions, administrative rulings of general application and any
procedure - www.anrmap.ro
                                        EU/KZ/Annex IV/en 4
 ---pagebreak--- SLOVENIA
Legislation - Official Gazette of the Republic of Slovenia
Judicial decisions - no official publication
SLOVAKIA
Legislation - Zbierka zákonov (Collection of Laws)
Judicial decisions - no official publication
FINLAND
Suomen Säädöskokoelma - Finlands Författningssamling (The Collection of the Statutes of Finland)
SWEDEN
Svensk Författningssamling (Swedish Code of Statutes)
UNITED KINGDOM
Legislation - HM Stationery Office
Jurisprudence - Law Reports
“Public Bodies” - HM Stationery Office
For THE REPUBLIC OF KAZAKHSTAN:
Website of the Republic of Kazakhstan on government procurement
http://goszakup.gov.kz
Legal information system of Regulatory Legal Acts of the Republic of Kazakhstan
http://adilet.zan.kz
                                         EU/KZ/Annex IV/en 5
 ---pagebreak---                                             PART 2
                                 Media for Publication of Notices
For the European Union:
Official Journal of the European Union
http://simap.europa.eu
For the Republic of Kazakhstan:
Website of the Republic of Kazakhstan on government procurement
http://goszakup.gov.kz
                                       ________________
                                      EU/KZ/Annex IV/en 6
 ---pagebreak---                                                                                             ANNEX V
                          RULES OF PROCEDURE FOR ARBITRATION
     OF CHAPTER 14 (DISPUTE SETTLEMENT) OF TITLE III (TRADE AND BUSINESS)
General Provisions
1.    In Chapter 14 of Title III of this Agreement and under these rules:
      “adviser” means a person retained by a Party to the dispute to advise or assist that Party in
             connection with the arbitration panel proceeding;
“arbitrator” means a member of an arbitration panel established under Article 177 of this
Agreement;
      “assistant” means a person who, under the terms of appointment of an arbitrator, conducts
      research or provides assistance to that arbitrator;
“complaining Party” means any Party that requests the establishment of an arbitration panel under
Article 176 of this Agreement;
“Party complained against” means the Party that is alleged to be in violation of the provisions
referred to in Article 173 of this Agreement;
“arbitration panel” means a panel established under Article 177 of this Agreement;
      “representative of a Party” means an employee or any person appointed by a Party for the
      purposes of a dispute under this Agreement;
                                         EU/KZ/Annex V/en 1
 ---pagebreak---       “day” means a calendar day;
      “working day” means a day other than a public holiday, Saturday and Sunday.
2.    The Parties shall share the expenses derived from organizational matters, including the
      remuneration and the expenses of the arbitrators.
Notifications
3.    The request for consultations and the request for the establishment of a panel shall be
      delivered to the other Party by an electronic communication, facsimile transmission,
      registered post, courier, or any other means of telecommunication that provides a record of
      the sending thereof.
4.    Each Party to the dispute and the arbitration panel shall deliver any document other than the
      request for consultations and the request for the establishment of a panel by e-mail and by
      facsimile transmission, registered post, courier, or any other means of telecommunication that
      provides a record of the sending thereof to the other Party and where relevant to each of the
      arbitrators. Unless proven otherwise, an e-mail message shall be deemed to be delivered on
      the date of its sending. If any of the supporting documents is confidential or too big to be sent
      by e-mail, the Party sending the document may provide that document in another electronic
      format to the other Party and where relevant to each of the arbitrators within one day of the
      delivery of the e-mail. In those cases the Party delivering the document shall inform by e-mail
      the other Party and where relevant each of the arbitrators of the sending of the document and
      indicate its content.
5.    All notifications shall be addressed to the Government of the Republic of Kazakhstan and to
      the Directorate-General for Trade of the European Commission, respectively. Within 30 days
      of the start of the application of Title III (Trade and Business) of this Agreement, the Parties
      shall exchange the details for the electronic communications pursuant to rules 3 and 4 of these
      Rules of Procedure. Any change of e-mail addresses or other electronic communications shall
      be notified without delay to the other Party and the arbitration panel, where applicable.
                                          EU/KZ/Annex V/en 2
 ---pagebreak--- 6.  Minor errors of a clerical nature in any request, notice, written submission or other document
    related to the arbitration panel proceeding may be corrected by the prompt delivery of a new
    document clearly indicating the changes.
7.  If the last date for delivery of a document falls on a Saturday, Sunday or a legal public holiday
    for the Republic of Kazakhstan or for the European Union, the last date for delivery shall be
    the next working day. When a document is delivered to Party on a day which is a holiday for
    that Party, the document shall be deemed delivered on the next working day. The date of
    receipt of a document shall be deemed the same date as the date of its delivery.
Commencing the Arbitration
8.  (a) If pursuant to Article 177 of this Agreement or to rules 19, 20 or 47 of these Rules of
    Procedure, any member of the arbitration panel is selected by lot, the drawing of lots shall be
    carried out at a time and place decided by the complaining Party and promptly communicated
    to the Party complained against. The Party complained against may, if it so chooses, be
    present during the drawing of lots. In any event, the drawing of lots shall be carried out with
    whichever Party/Parties are present.
    (b) If, pursuant to Article 177 of this Agreement or to rules 19, 20 or 47 of these Rules of
    Procedure, any member of the arbitration panel is selected by lot and there are two
    chairpersons of Cooperation Committee, both chairpersons, or their delegates, or one
    chairperson alone in cases where the other chairperson or his delegate does not accept to
    participate in the drawing of lots, shall perform the selection by lot.
    (c)    The Parties shall notify the selected arbitrators of their appointment.
    (d) An arbitrator who has been appointed according to the procedure established in
    Article 177 of this Agreement shall confirm their availability to serve as a member of the
    arbitration panel to the Cooperation Committee within five days of the date in which they
    were informed of their appointment.
                                        EU/KZ/Annex V/en 3
 ---pagebreak---        (e)   Unless the Parties to the dispute agree otherwise, the Parties shall hold a meeting with
             the arbitration panel in person or by other means of communication within seven days
             of the establishment of the arbitration panel. The Parties and the arbitration panel shall
             determine such matters that the Parties or the arbitration panel deem appropriate,
             including the remuneration and the expenses to be paid. The remuneration and the
             expenses shall be in accordance with WTO standards.
9.     (a)   Unless the Parties agree otherwise within five days from the date of selection of the
             arbitrators, the terms of reference of the arbitration panel shall be:
       “to examine, in the light of the relevant provisions of the Agreement invoked by the parties to
       the dispute, the matter referred to in the request for establishment of the arbitration panel, to
       rule on the compatibility of the measure in question with the provisions referred to in
       Article 173 of Chapter 14 of Title III on (Dispute Settlement) and to deliver a report in
       accordance with Articles 180, 181, 182 and 195 of Chapter 14 of Title III on Dispute
       Settlement of this Agreement.”
       (b)   The Parties must notify the agreed terms of reference to the arbitration panel within
             three days of their agreement.
Initial Submissions
10.    The complaining Party shall deliver its initial written submission no later than 20 days after
       the date of establishment of the arbitration panel. The Party complained against shall deliver
       its written counter-submission no later than 20 days after the date of receipt of the initial
       written submission.
                                          EU/KZ/Annex V/en 4
 ---pagebreak--- Working of Arbitration Panels
11. The chairperson of the arbitration panel shall preside over all its meetings. An arbitration
    panel may delegate to the chairperson the authority to make administrative and procedural
    decisions.
12. Unless otherwise provided in Chapter 14 of Title III of this Agreement, the arbitration panel
    may conduct its activities by any means, including telephone, facsimile transmissions or
    computer links.
13. Only arbitrators may take part in the deliberations of the arbitration panel, but the arbitration
    panel may permit its assistants to be present at its deliberations.
14. The drafting of any report shall remain the exclusive responsibility of the arbitration panel
    and must not be delegated.
15. Where a procedural question arises that is not covered by the provisions of Chapter 14 of Title
    III of this Agreement and Annexes V to VII to this Agreement, the arbitration panel, after
    consulting the Parties, may adopt an appropriate procedure that is compatible with those
    provisions.
16. When the arbitration panel considers that there is a need to modify any of the time limits for
    its proceedings other than the time-limits set out in Chapter 14 of Title III of this Agreement
    or to make any other procedural or administrative adjustment, it shall inform the Parties to the
    dispute in writing of the reasons for the change or adjustment and of the period of time or
    adjustment needed.
                                       EU/KZ/Annex V/en 5
 ---pagebreak--- Replacement
17.  If an arbitrator is unable to participate in an arbitration proceeding under Chapter 14 of Title
     III of this Agreement, withdraws from it, or must be replaced because of non-compliance with
     the requirements of the Code of Conduct, a replacement shall be selected in accordance with
     Article 177 of this Agreement and rule 8 of these Rules of Procedure.
18.  Where a Party to the dispute considers that an arbitrator does not comply with the
     requirements of the Code of Conduct set out in Annex VI to this Agreement and for this
     reason should be replaced, this Party should deliver notification to the other Party to the
     dispute within 15 days of the date on which it obtained evidence of the circumstances
     underlying the arbitrator’s material violation of the Code of Conduct.
19.  Where a Party to the dispute considers that an arbitrator other than the chairperson does not
     comply with the requirements of the Code of Conduct, the Parties to the dispute shall consult
     and, if they so agree, select a new arbitrator in accordance with Article 177 of this Agreement
     and rule 8 of these Rules of Procedure.
     If the Parties to the dispute fail to agree on the need to replace an arbitrator, any Party to the
     dispute may request that such matter be referred to the chairperson of the arbitration panel,
     whose decision shall be final.
     If, pursuant to such a request, the chairperson finds that an arbitrator does not comply with the
     requirements of the Code of Conduct, the new arbitrator shall be selected in accordance with
     Article 177 of this Agreement and rule 8 of these Rules of Procedure.
20.  Where a Party considers that the chairperson of the arbitration panel does not comply with the
     requirements of the Code of Conduct, the Parties shall consult and, if they so agree, select a
     new chairperson in accordance with Article 177 of this Agreement and rule 8 of these Rules
     of Procedure.
                                          EU/KZ/Annex V/en 6
 ---pagebreak---      If the Parties fail to agree on the need to replace the chairperson, either Party may request that
     such matter be referred to one of the remaining members of the pool of individuals from the
     sub-list of chairpersons referred to in Article 196 paragraph 1 of this Agreement. Their name
     shall be drawn by lot by the chair of the Cooperation Committee, or the chair's delegate. The
     decision by that person on the need to replace the chairperson shall be final.
     If that person decides that the original chairperson does not comply with the requirements of
     the Code of Conduct, they shall select a new chairperson by lot among the remaining pool of
     individuals from the sub-list of chairpersons referred to under Article 196 paragraph 1 of this
     Agreement. The selection of the new chairperson shall be carried out within five days of the
     date of the decision referred to in this paragraph.
21.  The arbitration panel proceedings shall be suspended for the period taken to carry out the
     procedures provided for in rules 18, 19 and 20 of these Rules of Procedure.
Hearings
22.  The chairperson of the arbitration panel shall fix the date and time of the hearing in
     consultation with the Parties to the dispute and the other members of the arbitration panel, and
     shall confirm this in writing to the Parties to the dispute. This information shall also be made
     publicly available by the Party in charge of the logistical administration of the proceedings,
     unless the hearing is closed to the public. Unless a Party disagrees, the arbitration panel may
     decide not to convene a hearing.
23.  Unless the Parties agree otherwise, the hearing shall be held in Brussels if the complaining
     Party is the Republic of Kazakhstan and in Astana if the complaining Party is the European
     Union.
24.  The arbitration panel may convene additional hearings if the Parties so agree.
                                         EU/KZ/Annex V/en 7
 ---pagebreak--- 25. All arbitrators shall be present during the entirety of any hearings.
26. The following persons may attend the hearing, irrespective of whether the proceedings are
    open to the public or not:
    (a)   representatives of the Parties to the dispute;
    (b)   advisers to the Parties to the dispute;
    (c)   administrative staff, interpreters, translators and court reporters; and
    (d)   arbitrators’ assistants.
    Only the representatives and advisers of the Parties to the dispute may address the arbitration
    panel.
27. No later than five days before the date of a hearing, each Party to the dispute shall deliver to
    the arbitration panel a list of the names of persons who will make oral arguments or
    presentations at the hearing on behalf of that Party and of other representatives or advisers
    attending the hearing.
28. The arbitration panel shall conduct the hearing in the following manner, ensuring that the
    complaining Party and the Party complained against are afforded equal time:
    Argument
    (a)   argument of the complaining Party
    (b)   argument of the Party complained against
                                         EU/KZ/Annex V/en 8
 ---pagebreak---      Rebuttal Argument
     (a)   argument of the complaining Party
     (b)   counter-reply of the Party complained against
29.  The arbitration panel may direct questions to either Party to the dispute at any time during the
     hearing.
30.  The arbitration panel shall arrange for a transcript of each hearing to be prepared and
     delivered as soon as possible to the Parties to the dispute. The Parties to the dispute may
     comment on the transcript and the arbitration panel may consider those comments.
31.  Each Party to the dispute may deliver a supplementary written submission concerning any
     matter that arose during the hearing within 10 days of the date of the hearing.
Questions in writing
32.  The arbitration panel may, at any time during the proceedings, address questions in writing to
     one or both Parties to the dispute. Each Party to the dispute shall receive a copy of any
     questions put by the arbitration panel.
33.  A Party to the dispute shall deliver a copy of its written response to the arbitration panel’s
     questions to the other Party to the dispute. Each Party to the dispute shall have the opportunity
     to provide written comments on the other Party’s reply, to be delivered within five days of the
     date of receipt of such reply.
                                        EU/KZ/Annex V/en 9
 ---pagebreak--- Confidentiality
34.  Each Party to the dispute and its advisers shall treat as confidential any information submitted
     by the other Party to the dispute to the arbitration panel which that Party has designated as
     confidential. Where a Party to the dispute submits a confidential version of its written
     submissions to the arbitration panel, the Party shall also, upon request of the other Party, and
     no later than 15 days after the date of either the request or the submission, whichever is later,
     deliver a non-confidential summary of the information contained in its submissions that could
     be disclosed to the public, and an explanation as to why the non-disclosed information is
     confidential. Nothing in these rules shall preclude a Party to the dispute from disclosing
     statements of its own positions to the public to the extent that, when making reference to
     information submitted by the other Party, it does not disclose any information designated by
     the other Party as confidential.
     The arbitration panel shall meet in closed session when the submission and arguments of a
     Party contains confidential information. The Parties to the dispute and their advisers shall
     maintain the confidentiality of the arbitration panel hearings where the hearings are held in
     closed session.
Non-confidential version of the arbitration panel report
35.  If the panel report contains information designated as confidential by a Party, the arbitration
     panel shall prepare a non-confidential version of the panel report. The Parties shall be given
     opportunity to comment on the non-confidential version and the arbitration panel shall take
     their comments into account when producing the final non-confidential version of the panel
     report.
Ex parte contacts
36.  The arbitration panel shall not meet or communicate with a Party in the absence of the other
     Party.
                                       EU/KZ/Annex V/en 10
 ---pagebreak--- 37.  No member of the arbitration panel may discuss any aspect of the subject matter of the
     proceedings with one Party or both Parties to the dispute in the absence of the other
     arbitrators.
Amicus curiae submissions
38.  Unless the Parties agree otherwise within three days of the date of the establishment of the
     arbitration panel, the arbitration panel may receive unsolicited written submissions from
     natural or legal persons established in the territory of a Party to the dispute who are
     independent from the governments of the Parties to the dispute, provided that they are
     delivered within 10 days of the date of the establishment of the arbitration panel, that they are
     concise and in no case longer than 15 pages typed at double space and that they are directly
     relevant to a factual or a legal issue under consideration by the arbitration panel.
39.  The submission shall contain a description of the person making the submission, whether
     natural or legal, including its nationality or place of establishment, the nature of its activities,
     its legal status, general objectives and the source of its financing, and specify the nature of the
     interest that the person has in the arbitration panel proceeding. It shall be drafted in the
     languages chosen by the Parties to the dispute in accordance with rules 42 and 43 of these
     Rules of Procedure.
40.  The arbitration panel shall list in its report all the submissions it has received that conform to
     rules 38 and 39 of these Rules of Procedure. The arbitration panel shall not be obliged to
     address in its report the arguments made in such submissions. Any such submission shall be
     delivered to the Parties to the dispute for their comments. The comments of the Parties to the
     dispute shall be delivered within 10 days of receipt of the submission, and any such comments
     shall be taken into consideration by the arbitration panel.
Urgent cases
41.  In the cases of urgency referred to in Chapter 14 of Title III of this Agreement, the arbitration
     panel, after consulting the Parties, shall adjust the time-limits referred to in these rules as
     appropriate and shall notify the Parties of such adjustments.
                                         EU/KZ/Annex V/en 11
 ---pagebreak--- Translation and interpretation
42.  During the consultations referred to in Article 174 of this Agreement, and no later than the
     meeting referred to in rule 8(e) of these Rules of Procedure, the Parties to the dispute shall
     endeavour to agree on a common working language for the proceedings before the arbitration
     panel.
43.  If the Parties to the dispute are unable to agree on a common working language, each Party
     shall make its written submissions in its chosen language. In such case, that Party shall
     provide at the same time a translation in the language chosen by the other Party, unless its
     submissions are written in one of the working languages of the WTO. The Party complained
     against shall arrange for the interpretation of oral submissions into the languages chosen by
     the Parties.
44.  Arbitration panel reports shall be issued in the language or languages chosen by the Parties to
     the dispute.
45.  Any Party to the dispute may provide comments on the accuracy of the translation of any
     translated version of a document drawn up in accordance with these rules.
46.  Each Party shall bear the costs of the translation of its written submissions. Any costs incurred
     for translation of an arbitration panel report shall be borne equally by the Parties to the
     dispute.
Other procedures
47.  These Rules of Procedure are also applicable to procedures established under Article 174,
     184(2), 185(2), 186(3) and 187(2) of this Agreement. However, the time-limits laid down in
     these Rules of Procedure shall be adjusted in line with the special time-limits provided for the
     adoption of a report by the arbitration panel in those other procedures.
                                          ________________
                                        EU/KZ/Annex V/en 12
 ---pagebreak---                                                                                           ANNEX VI
                               CODE OF CONDUCT FOR MEMBERS
                          OF ARBITRATION PANELS AND MEDIATORS
    OF CHAPTER 14 (DISPUTE SETTLEMENT) OF TITLE III (TRADE AND BUSINESS)
Definitions
1.   In this Code of Conduct:
     (a)    “arbitrator” means a member of an arbitration panel effectively established under
            Article 177 of this Agreement;
     (b)    “candidate” means an individual whose name is on the list of arbitrators referred to in
            Article 196 of this Agreement and who is under consideration for selection as a member
            of an arbitration panel under Article 177 of this Agreement;
     (c)    “assistant” means a person who, under the terms of appointment of an arbitrator,
            conducts research or provides assistance to the arbitrator;
     (d)    “proceeding”, unless otherwise specified, means an arbitration panel proceeding under
            Chapter 14 of Title III of this Agreement;
     (e)    “staff”, in respect of an arbitrator, means persons under the direction and control of the
            arbitrator, other than assistants;
     (f)    “mediator” means a person who conducts a mediation procedure in accordance with
            Annex VII to this Agreement.
                                         EU/KZ/Annex VI/en 1
 ---pagebreak--- Responsibilities to the Process
2.    Every candidate and arbitrator shall avoid impropriety and the appearance of impropriety,
      shall be independent and impartial, shall avoid direct and indirect conflicts of interest and
      shall observe high standards of conduct so that the integrity and impartiality of the dispute
      settlement mechanism is preserved. Former arbitrators must comply with the obligations
      established in paragraphs 15, 16, 17 and 18 of this Code of Conduct.
Disclosure obligations
3.    Prior to confirmation of their selection as an arbitrator under Chapter 14 of Title III of this
      Agreement, a candidate shall disclose any interest, relationship or matter that is likely to
      affect their independence or impartiality or that might reasonably create an appearance of
      impropriety or bias in the proceeding. To this end, a candidate shall make all reasonable
      efforts to become aware of any such interests, relationships and matters.
4.    A candidate or arbitrator shall communicate in writing matters concerning actual or potential
      violations of this Code of Conduct only to the Cooperation Committee for consideration by
      the Parties.
5.    Once selected, an arbitrator shall continue to make all reasonable efforts to become aware of
      any interests, relationships or matters referred to in paragraph 3 of this Code of Conduct and
      shall disclose them. The disclosure obligation is a continuing duty which requires an arbitrator
      to disclose any such interests, relationships or matters that may arise during any stage of the
      proceeding. The arbitrator shall disclose such interests, relationships or matters by informing
      the Cooperation Committee, in writing, for consideration by the Parties.
                                         EU/KZ/Annex VI/en 2
 ---pagebreak--- Duties of arbitrators
6.   Upon confirmation of their selection, an arbitrator shall be available to perform and shall
     perform their duties thoroughly and expeditiously throughout the course of the proceeding,
     with fairness and diligence.
7.   An arbitrator shall consider only those issues raised in the proceeding and necessary for a
     panel report, and shall not delegate this duty to any other person.
8.   An arbitrator shall take all appropriate steps to ensure that their assistant and staff are aware
     of, and comply with, paragraphs 2, 3, 4, 5, 16, 17 and 18 of this Code of Conduct.
9.   An arbitrator shall not engage in ex parte contacts concerning the proceeding.
Independence and impartiality of arbitrators
10.  An arbitrator must be independent and impartial, avoid creating an appearance of impropriety
     or bias, and shall not be influenced by self-interest, outside pressure, political considerations,
     public clamour and loyalty to a Party or fear of criticism.
11.  An arbitrator shall not, directly or indirectly, incur any obligation or accept any benefit that
     would in any way interfere, or appear to interfere, with the proper performance of their duties.
12.  An arbitrator may not use their position on the arbitration panel to advance any personal or
     private interests. An arbitrator shall avoid actions that may create the impression that they are
     in a position to be influenced by others.
                                        EU/KZ/Annex VI/en 3
 ---pagebreak--- 13.  An arbitrator may not allow financial, business, professional, personal, or social relationships
     or responsibilities to influence their conduct or judgement.
14.  An arbitrator must avoid entering into any relationship or acquiring any financial interest that
     is likely to affect their impartiality or that might reasonably create an appearance of
     impropriety or bias.
Obligations of former arbitrators
15.  All former arbitrators must avoid actions that may create the appearance that they were biased
     in carrying out their duties or derived advantage from the decision or report of the arbitration
     panel.
Confidentiality
16.  No arbitrator or former arbitrator shall at any time disclose or use any non-public information
     concerning a proceeding or acquired during a proceeding except for the purposes of that
     proceeding and shall not, in any case, disclose or use any such information to gain personal
     advantage or advantage for others or to adversely affect the interests of others.
17.  An arbitrator shall not disclose an arbitration panel report or parts thereof prior to its
     publication in accordance with Chapter 14 of Title III of this Agreement.
18.  An arbitrator or a former arbitrator shall not disclose the deliberations of an arbitration panel,
     or any arbitrator’s view at any time.
                                          EU/KZ/Annex VI/en 4
 ---pagebreak--- Expenses
19.  Each arbitrator shall keep a record and render a final account of the time devoted to the
     procedure and of their expenses, as well as the time and expenses of their assistant and staff.
Mediators
20.  The disciplines described in this Code of Conduct as applying to arbitrators or former
     arbitrators shall apply, mutatis mutandis, to mediators.
                                        ________________
                                       EU/KZ/Annex VI/en 5
 ---pagebreak---                                                                                           ANNEX VII
                                    MEDIATION MECHANISM
    OF CHAPTER 14 (DISPUTE SETTLEMENT) OF TITLE III (TRADE AND BUSINESS)
                                              ARTICLE 1
                                                Objective
The objective of this Annex is to facilitate the finding of a mutually agreed solution through a
comprehensive and expeditious procedure with the assistance of a mediator.
                                              SECTION A
                    PROCEDURE UNDER THE MEDIATION MECHANISM
                                              ARTICLE 2
                                       Request for Information
1.   At any time before the initiation of the mediation procedure, a Party may deliver a written
     request for information regarding a measure adversely affecting trade or investment between
     the Parties. The Party to which such request is made shall, within 20 days of receipt of the
     request, deliver a written response containing its comments on the information contained in
     the request.
                                        EU/KZ/Annex VII/en 1
 ---pagebreak--- 2. When the responding Party considers it will not be able to deliver a response within 20 days
   of receipt of the request, it shall promptly notify the requesting Party, stating the reasons for
   the delay and providing an estimate of the shortest period within which it will be able to
   deliver its response.
                                             ARTICLE 3
                                     Initiation of the Procedure
1. A Party may request that the Parties enter into a mediation procedure at any time, by means of
   a written request delivered to the other Party. The request shall be sufficiently detailed to
   present the concerns of the requesting Party clearly and shall:
   (a)   identify the specific measure at issue;
   (b)   provide a statement of the alleged adverse effects that the requesting Party believes the
         measure has, or will have, on trade or investment between the Parties; and
   (c)   explain how the requesting Party considers that those effects are linked to the measure.
2. The mediation procedure may only be initiated by mutual agreement of the Parties. When a
   request is made pursuant to paragraph 1 of this Article, the Party to which the request is made
   shall give sympathetic consideration to the request and deliver its written acceptance or
   rejection to the requesting Party within 10 days of its receipt.
                                       EU/KZ/Annex VII/en 2
 ---pagebreak---                                             ARTICLE 4
                                     Selection of the Mediator
1. The Parties shall endeavour to agree on a mediator within 15 days of the delivery of the
   acceptance referred to in Article 3 paragraph 2 of this Annex.
2. In the event that the Parties are unable to agree on the mediator within the time frame laid
   down in paragraph 1 of this Article, either Party may request the chair of the Cooperation
   Committee, or the chair’s delegate, to select the mediator by lot from the list established under
   Article 196 paragraph 1 of this Agreement. Representatives of both Parties shall be invited,
   with sufficient advance notice, to be present when the lots are drawn. In any event, the
   drawing of lots shall be carried out with the Party/Parties that are present.
3. The chair of the Cooperation Committee, or the chair’s delegate, shall select the mediator
   within five days of the request made pursuant to paragraph 2 of this Article.
4. Should the list referred to in Article 196 paragraph 1 of this Agreement not be established at
   the time a request is made pursuant to Article 3 of this Annex, the mediator shall be drawn by
   lot from the individuals which have been formally proposed by one or both of the Parties.
5. A mediator shall not be a citizen of either Party, unless the Parties agree otherwise.
6. The mediator shall, in an impartial and transparent manner, assist the Parties in bringing
   clarity to the measure and its possible trade effects, and in reaching a mutually agreed
   solution.
7. The Code of Conduct for Members of Arbitration Panels and Mediators set out in Annex VI
   to this Agreement shall apply to mediators, mutatis mutandis.
                                      EU/KZ/Annex VII/en 3
 ---pagebreak--- 8. Rules 3 to 7 (Notifications) and 42 to 46 (Translation and interpretation) of the Rules of
   Procedure for Arbitration set out in Annex V to this Agreement shall apply, mutatis mutandis.
                                           ARTICLE 5
                                Rules of the Mediation Procedure
1. Within 10 days of the appointment of the mediator, the Party which invoked the mediation
   procedure shall deliver a detailed, written description of its concerns to the mediator and to
   the other Party, in particular of the operation of the measure at issue and its trade effects.
   Within 20 days of the receipt of this description, the other Party may deliver written
   comments on the description. Either Party may include any information that it deems relevant
   in its description or comments.
2. The mediator may decide on the most appropriate way of bringing clarity to the measure
   concerned and its possible trade effects. In particular, the mediator may organize meetings
   between the Parties, consult the Parties jointly or individually, seek the assistance of, or
   consult with, relevant experts and stakeholders and provide any additional support requested
   by the Parties. The mediator shall consult with the Parties before seeking the assistance of, or
   consulting with, relevant experts and stakeholders.
3. The mediator shall not advise or comment on the consistency of the measure at issue with this
   Agreement. The mediator may offer advice and propose a solution for the consideration of the
   Parties. The Parties may accept or reject the proposed solution, or agree on a different
   solution.
4. The mediation procedure shall take place in the territory of the Party to which the request was
   addressed, or by mutual agreement in any other location or by any other means.
                                      EU/KZ/Annex VII/en 4
 ---pagebreak--- 5. The Parties shall endeavour to reach a mutually agreed solution within 60 days of the
   appointment of the mediator. Pending a final agreement, the Parties may consider possible
   interim solutions.
6. The mutually agreed solution or the interim solution may be adopted by means of a decision
   of the Cooperation Committee. Mutually agreed solutions shall be made publicly available.
   The version disclosed to the public shall not contain any information a Party has designated as
   confidential.
7. On request of the Parties, the mediator shall deliver a draft factual report to the Parties,
   providing a brief summary of (1) the measure at issue; (2) the procedures followed; and (3)
   any mutually agreed solution reached, including possible interim solutions. The mediator shall
   allow the Parties 15 days to comment on the draft report. After considering the comments of
   the Parties received within that period, the mediator shall, within 15 days, deliver a final
   factual report to the Parties. The factual report shall not include any interpretation of this
   Agreement.
8. The procedure shall be terminated:
   (a)   by the adoption of a mutually agreed solution by the Parties, on the date of the adoption
         thereof;
   (b)   by mutual agreement of the Parties at any stage of the procedure, on the date of that
         agreement;
   (c)   by a written declaration of the mediator, after consultation with the Parties, that further
         efforts at mediation would be to no avail, on the date of that declaration; or
   (d)   by a written declaration of a Party after exploring mutually agreed solutions under the
         mediation procedure and after having considered any advice and proposed solutions by
         the mediator, on the date of that declaration.
                                     EU/KZ/Annex VII/en 5
 ---pagebreak---                                          SECTION B
                                     IMPLEMENTATION
                                         ARTICLE 6
                        Implementation of a Mutually Agreed Solution
1. Where the Parties reached agreement on a solution, each Party shall take the measures
   necessary to implement the mutually agreed solution within the agreed timeframe.
2. The implementing Party shall notify the other Party, in writing, of any steps or measures taken
   to implement the mutually agreed solution.
                                         SECTION C
                                    GENERAL PROVISIONS
                                         ARTICLE 7
                    Confidentiality and Relationship to Dispute Settlement
1. Unless the Parties agree otherwise, and without prejudice to Article 5(6) of this Annex, all
   steps of the procedure, including any advice or proposed solution, are confidential. However,
   any Party may disclose to the public the fact that mediation is taking place.
2. The mediation procedure is without prejudice to the Parties’ rights and obligations under
   Chapter 14 of Title III of this Agreement, or any other agreement.
                                     EU/KZ/Annex VII/en 6
 ---pagebreak--- 3.   Consultations under Chapter 14 of Title III of this Agreement are not required before
     initiating the mediation procedure. However, a Party should normally avail itself of the other
     relevant cooperation or consultation provisions provided for in this Agreement before
     initiating the mediation procedure.
4.   A Party shall not rely on, or introduce as evidence, in other dispute settlement procedures
     under this Agreement, or any other agreement, nor shall a panel take into consideration:
     (a)    positions taken by the other Party in the course of the mediation procedure or
            information gathered under Article 5(2) of this Annex;
     (b)    the fact that the other Party has indicated its willingness to accept a solution to the
            measure subject to mediation; or
     (c)    advice given or proposals made by the mediator.
5.   A mediator may not serve as a member of a panel in a dispute settlement proceeding under
     this Agreement or under the WTO Agreement involving the same matter for which they have
     been a mediator.
                                               ARTICLE 8
                                               Time Limits
Any time limit referred to in this Annex may be modified by mutual agreement between the Parties.
                                         EU/KZ/Annex VII/en 7
 ---pagebreak---                                           ARTICLE 9
                                              Costs
1. Each Party shall bear its own expenses derived from the participation in the mediation
   procedure.
2. The Parties shall share jointly and equally the expenses derived from organisational matters,
   including the remuneration and expenses of the mediator. The remuneration of the mediator
   shall be in accordance with that foreseen for a chairperson of an arbitration Panel in
   accordance with rule 8(e) of the Rules of Procedure set out in Annex V to this Agreement.
                                       ________________
                                     EU/KZ/Annex VII/en 8
 ---pagebreak---              PROTOCOL
ON MUTUAL ADMINISTRATIVE ASSISTANCE
        IN CUSTOMS MATTERS
             EU/KZ/P/en 1
 ---pagebreak---                                              ARTICLE 1
                                              Definitions
For the purposes of this Protocol:
(a)   “customs legislation” means the legal or regulatory provisions applicable in the territories of
      the Parties, governing the import, export and transit of goods and their placing under any
      other customs regime or procedure, including measures of prohibition, restriction and control
      thereof;
(b)   “applicant authority” means a competent administrative authority which makes a request for
      assistance on the basis of this Protocol and which has been designated by a Party for this
      purpose;
(c)   “requested authority” means a competent administrative authority which receives a request for
      assistance on the basis of this Protocol and which has been designated by a Party for this
      purpose;
(d)   “personal data” means any information relating to an identified or identifiable individual;
(e)   “operation in breach of customs legislation” means any violation or attempted violation of
      customs legislation.
                                            EU/KZ/P/en 1
 ---pagebreak---                                                 ARTICLE 2
                                                   Scope
1.     The Parties shall assist each other, in the areas of their competence, in the manner and under
the conditions laid down in this Protocol, to ensure the correct application of their customs
legislation by preventing, investigating and combating operations in breach of that legislation.
2.     The assistance in customs matters, as provided for in this Protocol, shall apply to any
administrative authority of the Parties which is competent for the application of this Protocol. It
shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover
exchange of information obtained under powers exercised at the request of a judicial authority,
except where the communication of such information is authorised by that authority.
3.     The assistance to recover duties, taxes or fines is not covered by this Protocol.
                                                ARTICLE 3
                                          Assistance on request
1.     At the request of the applicant authority, the requested authority shall provide the former with
all relevant information which may enable it to ensure that customs legislation is correctly applied,
including information regarding activities noted or planned which are or could be operations in
breach of customs legislation.
2.     At the request of the applicant authority, the requested authority shall inform the former on:
(a)    circumstances (facts and conditions) of export of goods from the territory of one of the Parties
       and import into the territory of the other Party, specifying, where appropriate, the customs
       procedure applied to the goods;
                                              EU/KZ/P/en 2
 ---pagebreak--- (b)    circumstances (facts and conditions) of import of goods into the territory of one of the Parties
       and export from the territory of the other Party, specifying, where appropriate, the customs
       procedure applied to the goods.
3.     At the request of the applicant authority, the requested authority shall, within the framework
of its legal or regulatory provisions, take the necessary steps to ensure special surveillance of:
(a)    natural or legal persons in respect of whom there are reasonable grounds for believing that
       they are or have been involved in operations in breach of customs legislation;
(b)    places where goods are stocked in respect of which there are reasonable grounds to suspect
       that operations in breach of customs legislation take place;
(c)    goods transported or intended for transportation in respect of which there are reasonable
       grounds to suspect that operations in breach of customs legislation take place;
(d)    means of transport carrying goods in respect of which there are reasonable grounds to suspect
       that operations in breach of customs legislation take place.
                                               ARTICLE 4
                                          Spontaneous assistance
The Parties shall assist each other, at their own initiative and in accordance with their legal or
regulatory provisions, if they consider that to be necessary for the correct application of customs
legislation, in particular by providing information pertaining to:
–      activities which are or appear to be operations in breach of customs legislation and which may
       be of interest to the other Party;
                                              EU/KZ/P/en 3
 ---pagebreak--- –     new means or methods employed in carrying out operations in breach of customs legislation;
–     goods known to be subject to operations in breach of customs legislation;
–     natural or legal persons in respect of whom there are reasonable grounds for believing that
      they are or have been involved in operations in breach of customs legislation;
–     means of transport in respect of which there are reasonable grounds for believing that they
      have been, are, or may be used in operations in breach of customs legislation.
                                              ARTICLE 5
                                       Delivery and notification
At the request of the applicant authority, the requested authority shall, in accordance with the legal
or regulatory provisions applicable to the latter, take all necessary measures in order to deliver any
documents or to notify any decisions, originating from the applicant authority and falling within the
scope of this Protocol, to an addressee residing or established in the territory of the requested
authority.
Requests for delivery of documents or notification of decisions shall be made in writing in an
official language of the requested authority or in a language acceptable to that authority.
                                             EU/KZ/P/en 4
 ---pagebreak---                                               ARTICLE 6
                             Form and substance of requests for assistance
1.    Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by the
documents necessary to enable compliance with the request. When required because of the urgency
of the situation, oral requests may be accepted, but must be confirmed in writing immediately.
2.    Requests pursuant to paragraph 1 of this Article shall include the following information:
(a)   the applicant authority;
(b)   the object of and the reason for the request;
(c)   the requested measure;
(d)   the legal or regulatory provisions and other legal elements involved;
(e)   indications as exact and comprehensive as possible on the natural or legal persons who are the
      target of the enquiries;
(f)   a summary of the relevant facts and of the enquiries already carried out;
(g)   any other relevant information that is needed to execute the request.
3.    Requests shall be submitted in an official language of the requested authority or in a language
acceptable to that authority. This requirement shall not apply to any documents that accompany the
request under paragraph 1 of this Article.
                                             EU/KZ/P/en 5
 ---pagebreak--- 4.     If a request does not meet the formal requirements set out above, its correction or completion
may be requested; in the meantime precautionary measures may be ordered.
                                               ARTICLE 7
                                          Execution of requests
1.     In order to comply with a request for assistance, the requested authority shall proceed, within
the limits of its competence and available resources, as though it were acting on its own account or
at the request of other authorities of that same Party, by supplying information already in the
authority’s possession, by carrying out appropriate enquiries or by arranging for them to be carried
out. This provision shall also apply to any other authority to which the request has been addressed
by the requested authority when the latter cannot act on its own.
2.     Requests for assistance shall be executed in accordance with the legal or regulatory provisions
of the requested Party. In case the request cannot be executed, the requesting Party shall be
informed of this without delay.
3.     Duly authorised officials of a Party may, with the agreement of the other Party and subject to
the conditions laid down by the latter, be present to obtain in the offices of the requested authority
or any other concerned authority in accordance with paragraph 1 of this Article information relating
to activities that are or may be operations in breach of customs legislation which the applicant
authority needs for the purposes of this Protocol.
4.     Duly authorised officials of a Party may, with the agreement of the other Party and subject to
the conditions laid down by the latter, be present at enquiries carried out in the latter`s territory.
                                              EU/KZ/P/en 6
 ---pagebreak---                                               ARTICLE 8
                          Form in which information is to be communicated
1.    The requested authority shall communicate results of enquiries to the applicant authority in
writing together with relevant documents, certified copies or other items.
2.    This information may be in a computerised form.
3.    Original documents shall be transmitted only upon request in cases where certified copies
would be insufficient. These originals shall be returned at the earliest opportunity.
                                              ARTICLE 9
                          Exceptions to the obligation to provide assistance
1.    Assistance may be refused or may be subject to the satisfaction of certain conditions or
requirements, in cases where a Party is of the opinion that assistance under this Protocol would:
(a)   be likely to prejudice the sovereignty of the Republic of Kazakhstan or that of a Member State
      of the European Union which has been requested to provide assistance under this Protocol; or
(b)   be likely to prejudice public policy, security or other essential interests, in particular in the
      cases referred to under Article 10(2) of this Protocol; or
(c)   violate an industrial, commercial or professional secret.
                                             EU/KZ/P/en 7
 ---pagebreak--- 2.     Assistance may be postponed by the requested authority on the ground that it will interfere
with an ongoing investigation, prosecution or proceeding. In such a case, the requested authority
shall consult with the applicant authority to determine if assistance can be given subject to such
terms or conditions as the requested authority may require.
3.     Where the applicant authority seeks assistance which it would itself be unable to provide if so
requested, it shall draw attention to that fact in its request. It shall then be for the requested authority
to decide how to respond to such a request.
4.     For the cases referred to in paragraphs 1 and 2 of this Article, the decision of the requested
authority and the reasons therefor must be communicated to the applicant authority without delay.
                                              ARTICLE 10
                                Information exchange and confidentiality
1.     Any information communicated in whatsoever form pursuant to this Protocol shall be of a
confidential or restricted nature, depending on the rules applicable in each of the Parties. It shall be
covered by the obligation of official secrecy and shall enjoy the protection extended to similar
information under the relevant laws of the Party that received it and the corresponding provisions
applying to the Institutions of the European Union.
2.     Personal data may be exchanged only where the Party which may receive them undertakes to
protect such data in a manner that is considered adequate by the Party that may supply them.
                                              EU/KZ/P/en 8
 ---pagebreak--- 3.    The use, in administrative or judicial proceedings instituted in respect of operations in breach
of customs legislation, of information obtained under this Protocol, is considered to be for the
purposes of this Protocol. Therefore, the Parties may, in their records of evidence, reports and
testimonies and in proceedings and charges brought before the courts, use as evidence information
obtained and documents consulted in accordance with the provisions of this Protocol. The
competent authority which supplied that information or gave access to those documents shall be
notified of such use.
4.    The information obtained under this Protocol shall be used solely for the purposes set out in
this Protocol. Where one of the Parties wishes to use such information for other purposes, it shall
obtain the prior written consent of the authority which provided the information. Such use shall then
be subject to any restrictions laid down by the latter authority.
                                             ARTICLE 11
                                         Experts and witnesses
An official of a requested authority may be authorised to appear, within the limitations of the
authorisation granted, as an expert or a witness in administrative or judicial proceedings regarding
the matters covered by this Protocol, and may produce such objects, documents or certified copies
thereof, as may be needed for the proceedings. The request to the official is made by the applicant
authority and must indicate specifically before which administrative or judicial authority the official
will have to appear, on what matters and in what capacity (title or qualification).
                                             EU/KZ/P/en 9
 ---pagebreak---                                               ARTICLE 12
                                          Assistance expenses
The Parties shall waive all claims on each other for the reimbursement of expenses incurred
pursuant to this Protocol, except, as appropriate, for expenses related to experts and witnesses, and
those related to interpreters and translators who are not public service employees.
                                              ARTICLE 13
                                             Implementation
1.    The implementation of this Protocol shall be entrusted on the one hand to the customs
authorities of the Republic of Kazakhstan and on the other hand to the competent services of the
European Commission and the customs authorities of the Member States of the European Union as
appropriate. They shall decide on all practical measures and arrangements necessary for its
application, taking into consideration the rules in force in particular in the field of data protection.
2.    The Parties shall consult each other and subsequently keep each other informed of the detailed
rules of implementation which are adopted in accordance with the provisions of this Protocol.
                                              ARTICLE 14
                                            Other agreements
1.    Taking into account the respective competencies of the European Union and the
Member States of the European Union, the provisions of this Protocol shall:
–     not affect the obligations of the Parties under any other international agreement or convention;
                                             EU/KZ/P/en 10
 ---pagebreak--- –      be deemed complementary to agreements on mutual assistance which have been or may be
       concluded between individual Member States of the European Union and the Republic of
       Kazakhstan; and shall
–      not affect the European Union`s provisions governing the communication between the
       competent services of the European Commission and the customs authorities of the
       Member States of the European Union of any information obtained under this Protocol which
       could be of interest to the European Union or the Member States of the European Union.
2.     Notwithstanding the provisions of paragraph 1 of this Article, the provisions of this Protocol
shall take precedence over the provisions of any bilateral Agreement on mutual assistance which
has been or may be concluded between individual Member States of the European Union and the
Republic of Kazakhstan insofar as the provisions of the latter are incompatible with those of this
Protocol.
3.     In respect of questions relating to the applicability of this Protocol, the Parties shall consult
each other to resolve the matter in the framework of a regular dialogue on customs matters between
the Parties.
                                             EU/KZ/P/en 11