CELEX: 51994PC0341
Language: en
Date: 1994-07-19
Title: Proposal for COUNCIL DECISION ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND UKRAINE, OF THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS

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                                             COMMISSION OF THE EUROPEAN COMVIUNITIES
                                                                                       C0M(94) 341 final
                                                                                       Brussels, 19.07.1994
                                                                                       94/0185 (CNS)
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                                                                         Proposal for
                                                                     COUNCIL DECISION
                                                  ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
                                  ' Ml          INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
                                '>M               EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
                                                 ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND UKRAINE,
                                                                    OF THE OTHER PART,
                                ill                       ON TRADE AND TRADE-RELATED MATTERS
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                                                                   COMMISSION DECISION
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                                      te      CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
                                              AND STEEL COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE
                                                   EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
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                                               THE ONE PART, AND UKRAINE, OF THE OTHER PART, ON TRADE AND
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 ---pagebreak---                                  Explanatory memorandum
1..The attached proposal for Decisions constitute the legal instrument for the conclusion
   by the European Community of the Interim Agreement between the European
   Community, Euratom and the European Coal and Steel Community, on the one hand,
   and Ukraine, on the other.
2. Pending ratification of the Partnership and Cooperation Agreement with Ukraine,
   signed on 14 June 1994, the Commission has, in accordance with the negotiating
   directives adopted by the Council on 13 June 1994, negotiated an Interim Agreement
   with Ukraine.
3. The Interim Agreement providing for provisional implementation of the part of the
   Partnership and Cooperation Agreement on trade and trade-related measures was
   initialed in Luxembourg on 14 June 1994, and will be concluded for the period ending
   with the entry into force of the Partnership and Cooperation Agreement.
4. The Interim Agreement suspends, as far as Ukraine is concerned, the trade provisions
   of the Agreement on Trade and Commercial and Economic Cooperation signed on 18
   December 1989 between the European Economic Community and the European
    Atomic Energy Community, of the one part, and Union of Soviet Socialist Republics,
    of the other part.
5. The procedures for signing and concluding the Agreement differ between the EC and
    ECSC.
    The Agreement will be concluded as follows :
    - the Council, after consulting Parliament, will conclude the Agreement on behalf of the
    European Community under Article 113 of the EC Treaty by adopting the Decisions
    contained in Annex I;
    - the Commission will conclude the Agreement on behalf of the ECSC by adopting the
    Decisions contained in Annex II in accordance with Article 95 of the ECSC Treaty,
    with the unanimous assent of the Council and following consultation of the
    Consultative Committee.;
    - the Commission will conclude the Agreement on behalf of Euratom after the Council
    has approved it in accordance with the second paragraph of Article 101 of the Euratom
    treaty;
 6. The Interim Agreement should be signed as soon as possible in order to entry into
    force before the end of 1994.
 7. The Commission accordingly asks the Council to adopt the proposals contained in
    Annex I and to give its assent to the decisions under Annex II.
 ---pagebreak---                                         •ANflflXJ
Proposal for a Council Decision concerning the conclusion by the European Community
of the Interim Agreement between the European Community, the European Coal and
Steel Community and the European Atomic Energy Community, on the one part, and
Ukraine, of the other part, on trade and trade-related matters.
 ---pagebreak---                                         Proposal for
                                  COUNCIL DECISION
                                         OF
      ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
    INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
       EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
     ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND UKRAINE,
                                  OF THE OTHER PART,
                  ON TRADE AND TRADE-RELATED MATTERS
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 in conjunction with Article 228 (2) first sentence thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
signed in Luxembourg on 14 June 1994, it is necessary to approve the Interim Agreement
between the European Community, the European Atomic Energy Community and the
European Coal and Steel Community, of the one part, and Ukraine, of the other part, on
trade and trade-related matters signed in          on
HAS DECIDED AS FOLLOWS :
                                          Article 1
The Interim Agreement between European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and Ukraine,
of the other part, on trade and trade-related matters, together with the Protocol and the
declarations, are hereby approved on behalf of the European Community.
These texts are attached to this Decision.
                                          Article 2
The President of the Council shall give the notification provided for in Article 36 of the
Interim Agreement on behalf of the European Community.
Done at Brussels,
 ---pagebreak---                                         A&Nl&JE
Draft Commission Decision concerning the conclusion on behalf of the European Coal
and Steel Community of the Interim Agreement between the European Community, the
European Coal and Steel Community and the European Atomic Energy Community, of
the one part, and Ukraine, of the other part, on trade and trade-related matters.
 ---pagebreak---                                             Draft
                                COMMISSION DECISION
                                         OF
 CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
AND STEEL COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE
         EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
 COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF
  THE ONE PART, AND UKRAINE, OF THE OTHER PART, ON TRADE AND
                             TRADE-RELATED MATTERS
                                        (../.../ECSC)
THE EUROPEAN COMMISSION,
Having regard to the Treaty establishing the European Coal and Steel Community, and in
particular thefirstparagraph of Article 95 thereof,
Having regard to the Treaty establishing the European Atomic Energy Community and in
particular the second paragraph of Article 101 thereof,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
signed in Luxembourg on 14 June 1994, it is necessary to approve the Interim Agreement
between the European Community, the European Atomic Energy Community and the
European Coal and Steel Community, of the one part, and Ukraine, of the other part, on
trade and trade-related matters signed in          on
Whereas the conclusion of the Interim Agreement is necessary to attain the objectives of
the Community set out in particular in Articles 2 and 3 of the Treaty establishing the
European Coal and Steel Community and whereas the Treaty did not make provision for
all the cases covered by this Decision;
Having consulted the Consultative Committee and with the assent of the Council,
HAS DECIDED AS FOLLOWS :
                                          Article 1
The Interim Agreement between European Community, Euratom and the European Coal
and Steel Community, of the one part, and Ukraine, of the other part, on trade and trade-
related matters, together with the Protocol and the declarations, are hereby approved on
behalf of the European Coal and Steel Community.
These texts are attached to this Decision.
                                          Article 2
The President of the Commission shall give the notification provided for in Article 36 of
the Interim Agreement on behalf of Euratom and the European Coal and Steel
Community.
Done at Brussels,
 ---pagebreak---                                          FIJVAL ACT
The plenipotentiaries of the EUROPEAN COMMUNITY, EUROPEAN ATOMIC
ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY,
hereinafter referred to as "the Community", of the one part, and
the plenipotentiaries of UKRAINE, of the other part,
meeting at           on          for the signature of the Interim Agreement on trade and
trade-related matters between the European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and Ukraine,
of the other part, hereinafter referred to as the Agreement, have adopted the following
texts :
the Interim Agreement and the Protocol on mutual assistance in customs matters.
The plenipotentiaries of the Community and the plenipotentiaries of Ukraine have adopted
the texts of the Joint declarations listed below and annexed to this Final Act :
Joint Declaration on Article 10 of the Agreement
Joint Declaration on Article 11 of the Agreement
Joint Declaration on Article 18 of the Agreement
 Joint Declaration on Article 31 of the Agreement
 The plenipotentiaries of the Community have taken note of the declaration listed below
 and annexed to this Final Act :
 Declaration by Ukraine concerning the protection of intellectual, industrial and
 commercial property rights.
 Done at Brussels on
 For the Council and the European Commission
 For Ukraine
 ---pagebreak---                                INTERIM AGREEMENT
      ON TRADE AND TRADE RELATED MATTERS BETWEEN THE
     EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY
          OF THE ONE PART AND UKRAINE OF THE OTHER PART
The EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY
AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as
M
  THE COMMUNITY"
of the one part,
and UKRAINE
of the other part,
Whereas an Agreement on Partnership and Cooperation between the European Communities
and Member States, of the one part and Ukraine of the other part was signed on 14 June
 1994;
Whereas the aim of the Partnership and Cooperation Agreement is to strengthen and widen
the relations established previously, notably by the Agreement on Trade and Commercial and
 Economic Cooperation between the European Communities and USSR signed on 18
 December 1989;
 Whereas it is necessary to ensure the rapid development of trade relations between the
 Parties;
 Whereas to this end it is necessary to implement as speedily as possible, by means of an
 Interim Agreement, the provisions of the Partnership and Cooperation Agreement concerning
 trade and trade-related matters;
 Whereas the said provisions should, accordingly, provisionally replace the trade provisions
 of the Trade and Commercial and Economic Cooperation Agreement;
 Whereas it is necessary to ensure that pending the entry into force of the Partnership and
  Cooperation Agreement and the establishment of the Cooperation Council, the Joint
  Committee set up under the Agreement on Trade and Commercial and Economic
  Cooperation may exercise the powers assigned by the Partnership and Cooperation
 Agreement to the Cooperation Council;
 Whereas these powers are necessary in order to implement the Interim Agreement;
  Have decided to conclude this Agreement and to this end have designated as their
  plenipotentiaries;
                                                   10
 ---pagebreak--- THE EUROPEAN COMMUNITY :
THE EUROPEAN COAL AND STEEL COMMUNITY :
THE EUROPEAN ATOMIC ENERGY COMMUNITY :
UKRAINE:
Who, having exchanged their Full Powers, found in good and due form,
Have agreed as follows :
                           TITLE I : GENERAL PRINCIPLES
                                   IPCA Ukraine : Title II
                                           Article I
                                  IPCA Ukraine : Article 21
Respect for the democratic principles and human rights as defined in particular in the
Helsinki Final Act and the Charter of Paris for a New Europe, as well as the principles of
market economy, including thpse enunciated in the documents of the ECSC Bonn
Conference, underpin the internal and external policies of the Parties and constitute an
essential element of partnership and of the present Agreement.
                              TITLE II : TRADE IN GOODS
                                  fPCA Ukraine: Title HI!
                                           Article 2
                                  IPCA Ukraine : Article 81
 1. The Parties shall accord to one another most-favoured-nation treatment according to
    Article 1, paragraph 1 of the GATT.
2. The provisions of paragraph 1 shall not apply to:
    (a) advantages granted with the aim of creating a customs union or afree-tradearea or
         pursuant to the creation of such a union or area;
    (b) advantages granted to particular countries in accordance with the General
         Agreement on Tariffs and Trade and with other mternational arrangements in
         favour of developing countries;
    (c) advantages accorded to adjacent countries in order to facilitatefrontiertraffic.
                                                  11
 ---pagebreak---                                             Article 3
                                   IPCA Ukraine : Article 91
1. The parties agree that the principle offreedomof transit of goods is an essential condition
   of attaining the objectives of this Agreement.
   In this connection each Party shall provide for unrestricted transit via or through its
   territory of goods originating in the customs territory or destined for the customs territory
   of the other Party.
2. The rules described in Article V, paragraphs 2, 3, 4 and 5 of the GATT are applicable
   between the two Parties.
3. The rules contained in this Article are without prejudice to any special rules relating to
   specific sectors, in particular such as transport, or products agreed between the_Parties.
                                            Article 4
                                 IPCA Ukraine : Article 9bisl
The provisions of Article 2, paragraph 1 and Article 3, paragraph 2 shall not apply,
during a transitional period expiring on the 31.12.1998 or the accession of Ukraine to
GATT, whichever is earlier, to advantages defined in Annex I granted by Ukraine to other
Independent States asfromthe day preceding the date of entry into force of the Agreement.
                                            Article 5
                                  IPCA Ukraine: Article 101
Without prejudice to the rights and obligations stemming from international conventions on
the temporary admission of goods which bind both Parties, each Party shall furthermore
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 other
international convention on this matter binding upon it, in conformity with its legislation.
Account shall be taken of the conditions under which the obligations stemming from such a
convention have been accepted by the Parry in question.
                                            Article 6
                                   IPCA Ukraine: Article 111
Goods originating in Ukraine and the Community respectively shall be imported into the
Community and Ukraine respectively free of quantitative restrictions without prejudice to the
provisions of Articles 10, 13, 14 and annex II, and to the provisions of Articles 77, 81, 244,
249 and 280 of the Acts of Accession of Spain and Portugal to the European Community.
                                                   12
 ---pagebreak---                                              Article 7
                                  IPCA Ukraine : Article llbisl
1. The products of the territory of one Party imported into the territory of the other Party
    shall not be subject, directly or indirectly, to internal taxes or other internal charges of
    any kind in excess of those applied, directly or indirectly, to like domestic products.
2. Moreover, these products shall be accorded treatment no less favourable than that
     accorded to like products of national origin in respect of all laws, regulations and
     requirements affecting their internal sale, offering for sale, purchase, transportation,
     distribution or use. The provision of this paragraph shall not prevent the application of
     differential internal transportation charges which are based exclusively on the economic
     operation of the means of transport and not on the nationality of the product.
                                             Articles
                                  IPCA Ukraine : Article Uteri
The following Articles of the GATT shall be applicable mutatis mutandis between the two
Parties.
(i)        Article VII, paragraphs 1, 2, 3, 4a, 4b, 4d, 5;
(ii)       Article YIII;
(iii)      Article IX;
(iv)       Article X.
                                             Article 9
                                    IPCA Ukraine : Article 121
Goods shall be traded between the Parties at market-related prices.
                                             Article l a
                                    IPCA Ukraine : Article 131
 1. Where any product is being imported into the territory of one of the Parties in such
     increased quantities and under such conditions as to cause or threaten to cause substantial
     injury to domestic producers of like or direct competitive products, the Community or
     Ukraine, whichever is concerned, may take appropriate measures in accordance with the
     following procedures and conditions.
2. Before taking any measures, or in cases to which paragraph 4 applies as soon as possible
     thereafter, the Community or Ukraine as the case may be shall supply the Joint
     Committee with all relevant information with a view to seeking a solution acceptable to
     both Parties.
                                                     13
 ---pagebreak--- 3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of
    referral to the Joint Committee on actions to avoid the situation, the Party which
     requested consultations shall be free to restrict imports of the products concerned to the
    extent and for such time as is necessary to prevent or remedy the injury, or to adopt
     other appropriate measures.
4. In critical circumstances where delay would cause damage difficult to repair, the Parties
     may take the measures before the consultations, on the condition that consultations shall
     be offered immediately after taking such action.
5. In the selection of measures under this Article, the Parties shall give priority to those
     which cause least disturbance to the achievement of the aims of this Agreement.
                                             Article 11
                                  IPCA Ukraine : Article 13bisl
Nothing in this Title, and in Article 10 in particular shall prejudice or affect in any way the
taking, by either Party, of anti-dumping or countervailing measures in accordance with
Article VI of the GATT, the Agreement on implementation of Article VI of the GATT, the
Agreement on interpretation and application of Articles VI, XVI and XXIII of the GATT or
related internal legislation.
In respect of anti-dumping or subsidies investigations, each Party agrees to examine
submissions by the other Party and to inform the interested parties concerned of the essential
facts and considerations on the basis of which a final decision is to be made. Before
definitive anti-dumping and countervailing duties are imposed, the Party shall do the utmost
to bring about a constructive solution to the problem.
                                             Article 12
                                    IPCA Ukraine : Article 151
The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public policy or public security; the
protection of health and life of humans, animals or plants; the protection of natural
 resources; the protection of national treasures of artistic, historic or archaeological value or
the protection of intellectual, industrial and commercial property or rules relating to gold and
 silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary
 discrimination or a disguised restriction on trade between the Parties.
                                                                              f
                                             Article 13
                                    IPCA Ukraine : Article 161
 This Title II shall not apply to trade in textile products falling under chapters 50 to 63 of the
Combined Nomenclature. Trade in these products shall be governed by a separate
 agreement, initialed on 5th May 1993 and applied provisionally since 1st January 1993.
                                                     14
 ---pagebreak---                                            Article 14
                                   IPCA Ukraine ; Article 171
1. Trade in products covered by the Treaty establishing the European Coal and Steel
    Community shall be governed by the provisions of this Title II, with the exception of
    Article 6 and upon entry into force, by the provisions of an agreement on quantitative
    arrangements concerning exchanges of ECSC steel products.
2. A contact group on coal and steel matters is set up, comprising representatives of the
    Community on the one hand, and representatives of Ukraine on tfte other.
    The contact group shall exchange, on a regular basis, information on all coal and steel
    matters of interest to the Parties.
                                           Article 15
                                   IPCA Ukraine : Article 181
Trade in nuclear materials shall be subject to the provisions of a specific Agreement to be
concluded between the European Atomic Energy Community and Ukraine.
        TITLE HI : PAYMENTS, COMPETITION AND OTHER ECONOMIC
                                         PROVISIONS
                                IPCA Ukraine : Titles V and VII
                                           Article 16
                                   IPCA Ukraine: Article 411
 1. The Parties undertake to authorize, in freely convertible currency, any payments on the
    current account of balance of payments between residents of the Community and of
    Ukraine connected with the movement of goods, made in accordance with the provisions
    of the present Agreement.
                                           Article 17
                                  IPCA Ukraine : Article 41 bis!
 1.   The parties agree to work to remedy or remove, through the application of their
      competition laws or otherwise, restrictions on competition by enterprises or caused by
      State intervention insofar as they may affect trade between the Community and the
      Ukraine.
 2.   In order to attain the objectives mentioned in paragraph 1 :
 2.1. The Parties shall ensure that they have and enforce laws addressing restrictions on
      competition by enterprises within their jurisdiction.
 2.2. The Parties shall refrain from granting State aids favouring certain undertakings or the
      production of goods other than primary products as defined in the General Agreement
      on Tariffs and Trade, or the provision of services, which distort or threaten to distort
      competition insofar as they affect trade between the Community and the Ukraine.
                                                   15
 ---pagebreak--- 2.3. Upon request by one Party, the other Party shall provide information on its aid schemes
     or on particular individual cases of State aid. No information needs to be provided
     which is covered by legislative requirements of the Parties on professional or
     commercial secrets.
2.4. In the case of State monopolies of a commercial character, the Parties declare their
     readiness, as from the fourth year from the date of entry into force of their Agreement,
     to ensure that there is no Discrimination between nationals of the Parties regarding the
     conditions under which goods are procured or marketed.
2.5. In the case of public undertakings or undertakings to which Member States of the
     European Union or the Ukraine grant exclusive rights, the Parties declare their
     readiness, as from the fourth year from the date of entry into force of this Agreement, to
     ensure that there is neither enacted nor maintained any measure distorting trade between
     the Community and the Ukraine to an extent contrary to the Parties' respective interests.
     This provision shall not obstruct the performance, in law or fact, of the particular tasks
     assigned to such undertakings.
2.6. The period defined in paragraphs 2.4 and 2.5 may be extended by agreement of the
     Parties.
3.   Consultations may take place within the Joint Committee at the request of the
      Community or Ukraine on the restrictions or distortions of competition referred to in
     paragraphs 1 and 2 and on the enforcement of their competition rules, subject to
      limitations imposed by laws regarding disclosure of information, confidentiality and
     business secrecy. Consultations may also comprise questions on the interpretation of
      paragraphs 1 and 2.
4.   The Parties with experience in applying competition rules shall give full consideration
     to providing other Parties, upon request and within available resources, technical
      assistance for the development and implementation or competition rules.
5.    The above provisions in no way affect the Parties1 rights to apply adequate measures,
      notably those referred to in Article 11, in order to address distortions of trade in goods
      or services.
                                            Article 18
                                   IPCA Ukraine : Article 421
 Pursuant to the provisions of this Article and of Annex III, Ukraine shall continue to improve
the protection of intellectual, industrial and commercial property rights in order to provide,
by the end of the fifth year after the entry into force of the Agreement for a level of
protection similar to that provided in the Community by Community acts, in particular the
 ones referred to in Annex III, including comparable means of enforcing such rights.
                                            Article 19
 Mutual assistance between administrative authorities in customs matters of the Parties shall
take place in accordance with the protocol annexed to the agreement.
                                                   16
 ---pagebreak---         TITLE IV : INSTITUTIONAL. GENERAL AND FINAL PROVISIONS
                                     IPCA Ukraine: Title XI
                                            Article 20
The Joint Committee set up by the Agreement on Trade and Commercial and Economic
Cooperation signed between the European Economic Community and USSR on 18
December 1989 shall perform the duties assigned to it by this Agreement until the
Cooperation Council provided for in Article 85 of the Partnership and Cooperation
Agreement is established.
                                            Article 21
The Joint Committee may, for the purposes of attaining the objectives of the Agreement,
make recommendations in the cases provided for therein.
It shall draw up its recommendations by agreement between the two Parties.
                                            Article 22
                                   IPCA Ukraine: Article 811
When examining any issue arising within the framework of this Agreement in relation to a
provision referring to an article of the GATT, the Joint Committee shall take into account to the
greatest extent possible the interpretation that is generally given to the article of the GATT in
question by the Contracting Parties to the GATT.
                                             Article 23
                                   IPCA Ukraine : Article 851
 1. Within the scope of this Agreement, each Party undertakes to ensure that natural and
    legal persons of the other Party have access free of discrimination in relation to its
    own nationals to the competent courts and administrative organs of the Parties to defend
    their individual rights and their property rights, including those concerning
    intellectual, industrial and commercial property.
2.     Within the limits of their respective powers, the Parties :
      - shall encourage the adoption of arbitration for the settlement of disputes arising out of
      commercial and cooperation transactions concluded by economic operators of the
      Community and those of Ukraine;
      - agree that where a dispute is submitted to arbitration, each Party to the dispute may,
      except where the rules of the arbitration centre chosen by the Parties provide otherwise,
      choose its own arbitrator, irrespective of his nationality, and that the presiding third
      arbitrator or the sole arbitrator may be a citizen of a third state;
      - will recommend their economic operators to choose by mutual consent the law
      applicable to their contracts;
      - shall encourage recourse to the arbitration rules elaborated by the United Nations
      Commission on International Trade Law (Uncitral) and to arbitration by any centre of a
      state signatory to the Convention on Recognition and Enforcement of Foreign Arbitral
      Awards done at New York on 10th June 1958.
                                                    17
 ---pagebreak---                                              Article 24
                                   IPCA Ukraine : Article 861
Nothing in the Agreement shall prevent a Partyfromtaking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its
      essential security interests;
(b) which relate to the production of, or trade in arms, munitions or war materials or to
      research, development or production indispensable for defence purposes, provided that
      such measures do not impair the conditions of competition in respect of products not
      intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
      disturbances affecting the maintenance of law and order, in time of war or serious
      international tension constituting threat of war or in order to carry out obligations it has
      accepted for the purpose of maintaining peace and international security.
(d) which it considers necessary to respect its international obligations and commitments
      on the control of dual use industrial goods and technologies.
                                             Article 25
                                    IPCA Ukraine : Article 871
 1.   In the fields covered by this Agreement and without prejudice to any special
      provisions contained therein:
      - the arrangements applied by Ukraine in respect of the Community shall not give rise
      to any discrimination between the Member States, their nationals or their companies or
      firms;
      - the arrangements applied by the Community in respect of Ukraine shall not give rise
      to any discrimination between Ukrainian nationals, or its companies or firms.
 2.   The provisions of Paragraph 1 are without prejudice to therightof the Parties to apply
      the relevant provisions of their fiscal legislation to tax payers who are not in identical
       situations as regards their place of residence.
                                             Article 26
                                    IPCA Ukraine : Article 881
 1. Each of the two Parties may refer to the Joint Committee any dispute relating to the
    application or interpretation of this Agreement.
 2. The Joint Committee may settle the dispute by means of a recommendation.
 3. In the event of it not being possible to settle the dispute in accordance with paragraph 2 of
    this Article, either Party may notify the other of the appointment of an conciliator; the
    other Party must then appoint a second conciliator within two months. For the
    application of this procedure, the Community and the Member States shall be deemed to
    be one Party to the dispute.
    The Joint Committee shall appoint a third conciliator.
    The conciliators recommendations shall be taken by majority vote                         Such
    recommendations shall not be binding upon the Parties.
                                                      18
 ---pagebreak---                                            Article 27
                                  IPCA Ukraine: Article 891
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.
Hie provisions of this Article shall in no way affect and are without prejudice to Articles 10,
11,26 and 31.
                                           Article 28
                                  IPCA Ukraine : Article 901
Treatment granted to Ukraine hereunder shall in no case be more favourable than that
granted by the Member States to each other.
                                            Article 29
                                  IPCA Ukraine : Article 921
Insofar as matters covered by this Agreement are covered by the European Energy Charter
Treaty and Protocols thereto, such Treaty and Protocols shall upon entry into force apply to
such matters but only to the extent that such application is provided for therein.
                                            Article 30
 1. This Agreement shall be applicable until the entry into force of the Partnership and
    cooperation Agreement signed on 14 June 1994.
2. Either Party may denounce this Agreement by notifying the other Party. This Agreement
    shall cease to apply six months after the date of such notification.
                                            Article 31
                                   IPCA Ukraine : Article 941
 1. The Parties shall take any general or specific measures required to fulfil their obligations
    under the Agreement. They shall see to it that the objectives set out in the Agreement are
    attained.
 2. If either Party considers that the other Party has failed to fulfil an obligation under the
    Agreement, it may take the appropriate measures. Before so doing, except in cases of
    special urgency, it shall supply the Joint Committee with all relevant information required
    for a thorough examination of the situation with a view to seeking a solution acceptable to
    the Parties.
    In the selection of these measures, priority must be given to those which least disturb the
    functioning of the Agreement. These measures shall be notified immediately to the Joint
    Committee if the other Party so requests.
                                                    19
 ---pagebreak---                                            Article 32
Annexes I, II, III and the Protocol on mutual assistance between admistrative authorities in
customs matters shall form an integral part of this Agreement.
                                           Article 33
                                 IPCA Ukraine : Article 971
This Agreement shall apply, on the one hand, to the territories in which the treaties
establishing the European Community, the European Atomic Energy Community and the
European Coal and Steel Community are applied and under the conditions laid down in
those Treaties and, on the other hand, to theterritoryof Ukraine.
                                           Article 34
                               IPCA Ukraine : Article 97 bisl
The Secretary-General of the Council of the European Union shall be the depositary of this
Agreement.
                                           Article 35
                                  IPCA Ukraine : Article 981
This original of the Agreement, of which the Danish, Dutch, English, French, German,
Italian, Spanish, Greek, Portuguese and Ukrainian languages are equally authentic, shall
be deposited with the Secretary-General of the Council of the European Union.
                                           Article 36
                                  IPCA Ukraine : Article 991
This Agreement will be approved by the Parties in accordance with their own procedures.
This Agreement shall enter into force on the first day of the second month following the
date on which the Parties notify the Secretary-General of the Council of the European Union
that the procedures referred to in this paragraph have been completed.
 Upon its entry into force, and as far as relations between Ukraine and the Community are
 concerned, this Agreement shall replace Articles 2 to 16 of the Agreement between the
 European Economic Community, the European Atomic Energy Community and the Union of
 Soviet Socialist Republics on trade and economic and commercial cooperation signed in
 Brussels on 18 December 1989.
                                                   20
 ---pagebreak---                                           ANNEX!
Indicative list of advantages granted by Ukraine to the Independent States in accordance with
Article 4.
1. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Moldova, Turkmenistan,
    Russia
    No import duties are implemented.
    No export duties are implemented as regards goods delivered under clearing and
    interstate agreements within the volumes stipulated in these agreements.
    No VAT is applied on export and import. No excise is applied on export.
    All Independent States - export quotas for deliveries of products under annual interstate
    trade and cooperation agreements are opened in the same way as for deliveries for sjtate
    needs.
2. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Moldova, Turkmenistan, -
    Payments could be made in roubles
    Russia - payments could be made in roubles or karbovanets.
    All Independent States - special system of non-commercial operations, including
    payments resultingfromthese operations.
 3. All Independent States - special system of current payments.
4. All Independent States - special price system in trade with some raw materials and semi-
     finished products.
 5. All Independent States - special conditions of transit.
 6. All Independent States - special conditions of customs procedures.
                                                  21
 ---pagebreak---                                         ANNEX II
        Exceptional measures which derogate from the provisions of Article 6
1  Exceptional measures which derogatefromthe provisions of Article 6 may be taken by
   Ukraine in the form of quantitative restrictions on a non-discriminatory basis. .
2. These measures may only concern infant industries, or certain sectors undergoing
   restructuring or facing serious difficulties, particularly where these difficulties produce
   important social problems.
3. The total value of imports of the products which are subject to these measures may not
   exceed 15 % of total importsfromthe Community during the last year, prior to the
   introduction of any quantitative restrictions for which statistics are available.
4. These measures may only be applied during a transitional period ending 31st December
    1998 unless parties agree otherwise, or when Ukraine becomes a contracting Party to
   GATT whichever is earlier.
5. Ukraine shall inform the Joint Committee of any measures it intends to take under the
   terms of the present annex, and, at the request of the Community, consultations shall be
   held in the Joint Committee on such measures and the sectors to which they apply
   before they enter into force.
                                                 22
 ---pagebreak---         Intellectual, Industrial and Commercial Property conventions (Article 18)
1. Community acts referred to in Article 18.
   - First Council Pireetive $9/lQ4/EpC of 21 Pecember f 988 to ar^rpxinpte the Jaws of
      the Member States relating to trade marks.
   - Council Directive 87/54/ÇEÇ of 16 December 1986 on the J^gal projection of
      topographies of semi-conductor products.
   - Council Pireetive 91/250/EEC of 14 May 1991 on the legal protection of computer
      programs.
   - Council Regulation (EEC) No 1768/92 pf 18 June 1992 concerning the creation of a
      supplementary protection certificate for medicinal products.
   - Council Regulation (EEC) No 208 J/92 of 14 July 1992 pn the protection of
      geographical indications and designations of origin for agricultural products and
      foodstuffs.
   - Council Pireetive 93/83/EEC of 27 September 1993 on the coordination of certain
      rules concerning copyright and rights related to copyright applicable tp satellite
      broadcasting and cahle retransmission.
   - Council Directive 93/98/]EEC of 29 October 1993 harmonizing the term of protection
       of copyright and certain related rights.
    - Council Directive 92/100/EEC pf J 9 Npvpmber 1992 pn rental right and lending right
       and on certainrightsrelated tp copyright in the field pf intellectual property.
2. If problems in the area of intellectual, industrial and commercial property as addressed in
   the above Community acts and affecting trading conditions were to occur, urgent
    consultations will he undertaken, at the request of the Cpirununity or Ukraine, with a view
   to reaching mutually satisfactory solutions.
                                                   23
 ---pagebreak---             PROTOCOL
      ON MUTUAL ASSISTANCE
BETWEEN ADMINISTRATIVE AUTHORITIES
       IN CUSTOMS MATTERS
                24
 ---pagebreak---                                                Definitions
For the purposes of this Protocol :
a) "customs legislation" shall mean provisions applicable k the territories of the Parties and
    governing the import, export, transit of goods and their placing under any customs procedure,
    including measures of prohibition, restriction and control and adopted by the said Parties;
b) "customs duties" shall mean all duties, taxes, fees or any other charges which are levied and
    collected in theterritoriesof the Parties, in application of customs legislation, but not including
    fees and charges which are limited in amount to the approximate costs of services rendered;
c) "applicant authority", shall mean a competent administrative authority which has been
    appointed by a Party for this purpose and which makes a request for assistance in customs
    matters;
d) "requested authority", shall mean a competent administrative authority which has been
    appointed by a Party for this purpose and which receives a request for assistance in customs
    matters;
e) "contravention", shall mean any violation of the customs legislation as well as any attempted
     violation of such legislation.
                                                Article 2
                                                  Scope
 1. The Parties shall assist each other, within their competences, in the manner and under the
     conditions laid down in this Protocol, in ensuring that customs legislation is correctly applied,
     in particular by the prevention, detection and investigation of contraventions of this legislation.
2. Assistance, in customs matters, as provided for in this Protocol, applies 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
     information obtained under powers exercised at the request of the judicial authority, unless
     those authorities so agree.
                                                Article 3
                                         Assistance on request
 1. At the request of the applicant authority, the requested authority shall furnish it with all
     relevant information to enable it to ensure that customs legislation is correctly applied,
     including information regarding operations noted or planned which contravene or would
     contravene such legislation.
                                                    25
 ---pagebreak--- 2. At the request of the applicant authority, the requested authority shall inform it whether goods
   exported from theterritoryof one of the Parties have been properly imported into 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 take the necessary steps
   to ensure that a surveillance is kept on :
   (a) natural or legal persons of whom there are reasonable grounds for believing that they are
         contravening or have contravened customs legislation;
   (b) movements of goods notified as possibly giving rise to substantial contraventions of
         customs legislation;
   (c) means of transport for which there are reasonable grounds for believing that they have
         been, are or may be used in the contravening of customs legislation.
                                                Article 4
                                         Spontaneous assistance
The Parties shall provide each other, in accordance with their laws, rules and other legal
instruments, with assistance if they consider that to be necessary for the correct application of
customs legislation, particularly when they obtain information pertaining to :
- operations which have contravened, contravene or would contravene such legislation and which
    may be of interest to other Parties;
-   new means or methods employed in realizing such operations;
- goods known to be subject to substantial contravention of customs legislation.
                                                Article 5
                                          Delivery/Notification
At the request of the applicant authority, the requested authority shall in accordance with its
legislation take all necessary measures
                  in order to deliver all documents,
                  to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or established in its territory. In
such a case Article 6, point 3 is applicable.
                                                   26
 ---pagebreak---                                                 Article 6
                           Form and substance of requests for assistance
1. Requests pursuant to this Protocol shall be made in writing. Documents necessary for the
   execution of such requests shall accompany 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 making the request;
   (b)    the measure requested;
   (c)    the object of and the reason for the request;
   (d)    the laws, rules and other legal elements involved;
    (e)   indications as exact and comprehensive as possible on the natural or legal persons
          being the target of the investigations;
    (f) a summary of the relevant facts and of the enquiries already carried out, except in
           cases provided for in Article 5.
3. Requests shall be submitted in an official language of the requested authority or in a language
    acceptable to such authority.
4. If a request does not meet the formal requirements, its correction or completion may be
    demanded ; the ordering of precautionary measures may, however, take place.
                                                  Article 7
                                          Execution of requests
 1. In order to comply with a request for assistance, the requested authority or, when the latter can
     not act on its own, the administrative department to which the request has been addressed by
     this authority, shall proceed, within 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 possessed, by carrying out appropriate enquiries or by arranging for them
     to be carried out.
 2. Requests for assistance will be executed in accordance with the laws, rules and other legal
     instruments of the requested Party.
 3. Duly authorised officials of a Party may, with the agreement of the other Party involved and
     within the conditions laid down by the latter, obtain from the offices of the requested authority
     or other authority for which the requested authority is responsible, information relating to the
     contravention of customs legislation which the applicant authority needs for the purposes of
     this Protocol.
 4. Officials of a Party may, with the agreement of the other Party involved and within the
     conditions laid down by the latter, be present at enquiries carried out in the latter's territory.
                                                      27
 ---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 the
   form of documents certified copies of documents, reports and the like.
2. The documents provided for in paragraph 1 may be replaced by computerized information
   produced in any form for the same purpose.
                                               Article 9
                        Exceptions to the obligation to provide assistance
1. The Parties may refuse to give assistance as provided for in this Protocol, where to do so would
   (a) be likely to prejudice sovereignty, public policy, security or other essential interests;
         or
   (b) involve currency or tax regulations other than regulations concerning customs duties;
         or
   (c) violate an industrial, commercial or professional secret.
2. Where the applicant authority asks for assistance which it would itself be unable to provide if
   so asked, it shall draw attention to that fact in its request. It shall then be left to the requested
   authority to decide how to respond to such a request.
3. If assistance is withheld or denied, the decision and the reasons therefore must be notified to the
   applicant authority without delay.
                                              Article 10
                                Obligation to observe confidentiality
1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a
   confidential nature. It shall be covered by the obligation of official secrecy and shall enjoy the
   protection extended to like information under the relevant laws of the Party which received it
   and the corresponding provisions applying to the Community authorities.
2. Nominative data shall not be transmitted whenever there are reasonable grounds to believe that
   the transfer or the use made of the date transmitted would be contrary to the basic legal
   principles of one of the Parties, and, in particular, if the person concerned would suffer undue
   disadvantages. Upon request, the receiving Party shall inform the furnishing Party of the use
   made of the information supplied and of the results achieved.
3. Nominative data may only be transmitted to customs authorities and, in the case of need for
   prosecution purposes, to public prosecution and judicial authorities. Other persons or
   authorities may obtain such information only upon previous authorisation by the furnishing
   authority.
                                                   28
 ---pagebreak---     The furnishing Party shall verify the accuracy of the information to be transferred. Whenever it
    appears that the information supplied was inaccurate or to be deleted, the receiving Party shall
    be notified without delay. The latter shall be obliged to carry ojut the coirectjon or deletion.
5. Without prejudice to cases of prevailing public interest, the person concerned may obtain, tipon
    request, information on the data stores and the purpose of this storage.
                                               Article II
                                          Use of information
1. Information obtained shall be used solely for the purposes of this Protocol and may be used
    within each Party for other purposes only with the prior written consent of the administrative
    authority which furnished the information and shall be subject to any restrictions laid down by
    that authority.
2. Paragraph 1 shall not impede the use of information in any judicial or administrative
    proceedings subsequently instituted for failure to comply with customs legislation.
3. 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.
                                               Article 12
                                         Experts and witnesses
An official of a requested authority may be authorized to appear, within the limitations of the
authorization granted, as expert or witness in judicial or administrative proceedings regarding the
matters covered by this Protocol in the jurisdiction of another Party, and produce such objects,
documents or authenticated copies thereof, as may be needed for the proceedings. The request for
an appearance must indicate specifically on what matters and by virtue of what title or
qualification the official will be questioned.
                                                Article 13
                                          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 to experts and witnesses and to
 interpreters and translators who are not dependent upon public services.
                                                    29
 ---pagebreak---                                               Article 14
                                           Implementation
1. The management of this Protocol shall be entrusted to the central customs authorities of
   Ukraine on the one hand and the competent services of the Commission of the European
   Communities and, where appropriate, the customs authorities of the Member States of the
   European Union on the other. They shall decide on all practical measures and arrangements
   necessary for its application, taking into consideration rules in the field of data protection. They
   may recommend to the competent bodies amendments which they consider be made to this
   Protocol.
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 15
                                          Complementarity
1. This Protocol shall complement and not impede the application of any agreements on mutual
   assistance which have been concluded or may be concluded between individual or several
   Member States of the European Union and Ukraine. Nor shall it preclude more extensive
   customs cooperation granted under such agreements.
2. Without prejudice to Article 11, these agreements do not prejudice Community provisions
   governing the communication between the competent services of the Commission and the
   customs authorities of the Member States of any information obtained in customs matters
   which could be of Community interest.
                                                   30
 ---pagebreak---                   JOINT DECLARATION CONCERNING ARTICLE 10
The Community and Ukraine declare that the text of the safeguard clause does not grant GATT
safeguard treatment.
                                             31
 ---pagebreak---                    JOINT DECLARATION CONCERNING ARTICLE 11
It is understood that the provisions of Article 11 are neither intended to, nor shall slow down,
hinder or impede the procedures provided for in the respective legislations of the Parties regarding
anti-dumping and subsidies investigations.
                                                32
 ---pagebreak---                   JOINT DECLARATION CONCERNING ARTICLE U
The Parties decide $ # the tmm t^fa^,    industrial %$ wmms®$ f f f ^ " sliaH be
traijsla^ iato UkiaW
                                      33
 ---pagebreak---                    JOINT DECLARATION CONCERNING ARTICLE 31
The Parties agree, for the purpose of its correct interpretation and its practical application, that the
term "cases of special urgency" included in Article 31 of the Agreement mean cases of material
breach of the Agreement by one of the Parties. A material breach of the Agreement consists in
a)   repudiation of the Agreement not sanctioned by the general rules of international law
or
b)   violation of the essential elements of the Agreement set out in Article 1.
                                                   34
 ---pagebreak---   Unilateral declaration bv Ukraine concerning thei protectimt of totelkcttial, industrial
                                  ami commercial property rights
Ukraine declares that :
1. By the end of the fifth year after entry into force of the Agreement, Ukraine Shall
    accede to the multilateral conventions on intellectual, industrial and commercial property
    rights referred to in Paragraph 2 of this declaration to which Member States of the
    Community are parties or which are de facto applied by Member States according to the
    relevant provisions contained in these conventions.
2. Paragraph 1 of this declaration concerns the following multilateral conventions:
-   Beme Convention for the Protection of Literary and Artistic Works (Paris Act, 1971);
-    International Convention for the Protection of Performers, Producers of Phonograms
    and Broadcasting Organizations (Rome, 1961);
-    Protocol relating to the Madrid Agreement concerning the International Registration
     of Marks (Madrid, 1989);
- Nice Agreement concerning the International Classification of Goods and Services for the
     purposes of the Registration of Marks (Geneva 1977, amended 1979);
 -   Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for
     the purposes of Patent Procedures (1977, modified in 1980);
 -    International Convention for the Protection of New Varieties of Plants (UPOV) (Geneva
     Act, 1978)
 3. Ukraine shall make its best endeavours to accede, without undue delay, to the 1991 Act
      of the International Convention for the Protection of New Varieties of Plants (UPOV).
 4. Ukraine confirm the importance it attaches to the obligations arising from the following
      multilateral conventions:
  -   Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967 and
      amended in 1979);
  -   Madrid Agreement concerning the International Registration of Marks (Stockholm Act,
       1967, and amended in 1979);
  -    Patent Cooperation Treaty (Washington 1970, amended and modified in 1979 and 1984);
  5. From the entry into force of this Agreement Ukraine shall grant to Community companies
      and nationals, in respect of the recognition and protection of intellectual, industrial and
      commercial property, treatment no less favourable than that granted by it to any third
       country under bilateral agreements.
  6. The provisions of paragraph 5 shall not apply to advantages granted by Ukraine to any
       third country on an effective reciprocal basis or to advantages granted by Ukraine to
       another country of the former USSR.
                                                     35
 ---pagebreak---                                                                      KSN 0254-1475
                                                              COM(94) 341 final
                                                      DOCUMENTS
EN                                                                         1102
                                Catalogue number : CB-CO-94-367-EN-C
                                                             ISBN 92-77-72111-1
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