CELEX: 51976PC0163
Language: en
Date: 1976-04-20 00:00:00
Title: RECOMMENDATION FOR REGULATION (EEC) OF THE COUNCIL on the conclusion of the Commercial Cooperation Agreement between the European Economic Community and the Islamic Republic of Pakistan (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 163
Vol. 1976/0046
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(76)163 final.
                                                          Brussels , 20 April 1976
                 RECOMMENDATION FOR REGULATION ( EEC ) OF THE COUNCIL.
   on the conclusion of "the Commercial Cooperation Agreement between the
   European Economic Community and the Islamic Republic of Pakistan
                   ( submitted to the Council by the Commission )
   COr(76 ) 153 final .
 ---pagebreak---                               EXPLANATORY MEMORANDUM
1.     On 15 October 1974 'the Council authorized the Commission to enter
into negotiations with Pakistan for a Commercial Cooperation Agreement; at
the sane time the Council approved a series of directives for the nego­
tiations .
2.     The formal opening of negotiations took place on 4"th November 1974 »
preceded by a meeting of the Special Committee set up under Article 113 of
the Rome Treaty to assist the Commission in such negotiations . A second
negotiating session was held on 12th December 1974 , following which the
two delegations were in substantial accord on the terms of an agreement , but
the PaJcistr»n side fcind itself unable to accept the Commission's proposals
as to the nature and scope of possible annexes . Assisted by further meetings
of the Special Committee on 27th October and 10th November 1975 , "the
Commission was able to refine its proposals on the outstanding points , and
secured the acceptance by the Pakistan 's authorities of the revised proposals
follovving informal contacts both in Brussels and in Islamabad, where the
texts annexed hereto vrere initialled on 16th March 1976 . The titles of these
texts , which were negotiated in the English language , are as follows?
   - Commercial Cooperation Agreement between the European Economic Community
      and the Islamic Republic of Pakistan
   - Annex 1 , being a Joint Declaration on the functioning of the Joint
      Commission
   - Annex 2 , being a declaration of the European Economic Community on
      tariff adjustments and other measures for facilitating trade
   - Annex 3 , being a declaration of the Islamic Republic of Pakistan on
      tariff adjustments and other measures for facilitating trade .
3.     The text of the proposed agreement is t mutatis mutandis , identical
with that concluded with Sri Lankaji apart from a handful of verbal variants
of " no practical significance and the rephrasing of the evolutionary clause
 (Article 1    paragraph 3), again without altering its effect .
 ---pagebreak--- 4.      When the negotiation , directives **ere under discussion in the various
forums of the Council , it was envisaged that the Pakistan side might
request tariff concessions analogous to those granted in the Commercial
Cooperation Agreement with India, and subsequent ly in the Commercial
Cooperation Agreement .with Sri Lanka .      A request for concessions was
indeed presented "by Pakistan hut was not , as in the other cases , confined
to bilateral "bindings of existing suspensions of duties . Instead, ,
Pakistan 'sought the phasing-out of the CCT duty of 7$ on Single . Cotton Yarn
and the re-imbursement to Pakistan for development purposes of any levy
impose^. on the Community 's imports from that country of Basrnati Rice , in
addition to concessions under the . Generalized Scheme of Preferences for
Sports Goods and certain varieties and manufactures of Leather .       The
Commission turned down these requests and instead, after taking the advice
of the Special Committee (Art . 113 ), offered to expand the scope of the
declaration of the Community on tariff adjustments (Annex 2 ) to include ,
" other measures for facilitating trade " and to insert in the bociy thereof
the following paragraphs
   " 3 . Recognising the vital importance of exports of cotton products and
   Basmati Rice to the economic development of . Pakistan , the Community •
   is ready to examine in the Joint Commission the situation of Pakistani
   trade with the Community in these products and to explore possibilities
   for facilitating it , insofar as cotton products are concerned to the
   extent permitted by the current agreement between the Contracting Farties
   and their multilateral obligations ."
These proposed- changes would be accompanied by corresponding changes
in Annex 3 , which is Pakistan's reciprocal . declaration.     The Pakistan
authorities eventually signified their acceptance of this proposal , and
the texts of Annexes 2 and 3 . now recommended reflect the agreement reached
in this regards . . The Commission considers that the terms of these Annexes
are fully consistent with the directives given by the Council , as also
are the terms of Annex 1 "on the functioning of the Joint . Commission"^
this being closely modelled on the corresponding annex of the Sri Lanka
Agreement .
 ---pagebreak---                                      - 3 -
5.    In the negotiation directives , the Commission was asked to explore
the terns on which the Community could obtain an undertaking from Pakistan
with regard to non-discriminatory access to its natural resources .   In the
course of exploratory talks , the Pakistan delegation informed the Commission ,
as subsequently reported to the Special Committee , that it was not prepared
to recommend such an undertaking to its authorities , nor did it envisage
that they could contemplate any such commitment unless it were to be matched
by a reciprocal undertaking on the part of the Community =   In the light of
the express unwillingness of certain Member States to enter into any
commitments in regard to access to their natural resources , the Commission
decided that it would be fruitless to seek to negotiate the inclusion of -
a specific reference to natural resources in an Agreement for Commercial
Cooperation with Pakistan.   Should the Community experience difficulties
in purchasing on a non-discriminatory basis raw materials produced by
Pakistan, the possibility remains open , especially under Articles 3 * 9 and
10 of the agreement now proposed, to raise difficulties in the Joint
Commission with a view to examining and devising practical measures to
overcome them .
6.    The Commission now recommends that the Councils
   - place on record that the Commission has complied with the Council 's
     request to explore the possibility of having a provision in the Agreement
     relating to non-discriminatory access for the Community to
     natural resources^  and
   - initiate the procedures for the signature and conclusion of a Commercial
     Cooperation Agreement with Pakistan in the terms of the annexed texts .
7«    With a view to the conclusion and implementation of the Agreement ,
the Commission herewith lays before the Councils
   - a Recommendation for a Regulation (EEC ) of the Council on the
     conclusion of the Commercial Cooperation Agreement with Pakistan.
 ---pagebreak---              REC01MEEDATI0N FOR REGULATION (EEC ) OP THE COUITCIL
           on -the conclusion of the Commercial Cooperation Agreement
                   between the European Economic Community and.
                        the Islamic Republic of Fakistan
TE3 COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to -the Treaty establishing the European Economic Community ,
and in particular Articles 113 and. 114 thereof 5
Having regard to the Recommendation from the Commission ;
Whereas the Commercial Cooperation Agreement negotiated between the
European Economic Community and the Islamic Republic of Pakistan should
be concluded ;
HAS ADOPTED THIS REGULATION ;
                                 Article 1
The Commercial Cooperation Agreement between the European Economic Community
and the Islamic Republic of Pakistan , the text of which is annexed to
this Regulation , is hereby concluded on behalf of the Community .
                                 Article 2          ,
The President of the Council shall notify the other Contracting Party in
accordance with Article 15 of the Agreement of the completion , as regards
the Community , of the procedures necessary for the entry into force of
this Agreement .
 ---pagebreak---                                                          I 1
                                Article 3
The Community shall "be represented on the Joint Commission provided for
in Article 8 of the Agreement by the Commission of the European Communities ,
assisted by representatives of the Member States .
                                Article 4 •
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels , -               1976 . ,                    .  .
                                                     For the Council
                                                      The President
 ---pagebreak--- COMMERCIAL COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COIMJ1TITY
                  .iKD THE ISLAMIC REPUBLIC OF PAKISTAN
 ---pagebreak---                          COMMERCIAL COOPERATION AGREEMENT
                between the European Economic Comiinmity and -
                        the Islamic Republic of Pakistan
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
of the one part ,
THE GOVERNMENT OP THE ISLAMIC REPUBLIC OP PAKISTAN,
of the other part ,
HAVING REGARD to the friendly relations and historic links between the
Member States of the European Economic Community and the Islamic Republic
of Pakistan and their common desire to consolidate and expand their
commercial and economic relations ;
INSPIRED by their determination to strengthen , deepen and diversify
their comiaerc-ialiaiid economic relations on the basis of comparative
advantage and mutual benefit ;
VIEWING modern commercial policy as an important instrument for furthering
international economic, cooperation ?
AFFIRMING their oommon will to contribute to a new phase of international
economic cooperation and to facilitate the development of their respective
human and material resources on the basis of freedom , erruality and justice
HAVE DECIDED to conclude a Commercial Cooperation Agreement and to this
end have designated as their Plenipotentiaries ?
THE COUNCIL OP THE EUROPEAN COMMUNITIES !
THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF PAKISTAN ;
WHO , having exchanged their Full Powers , found in good and due form
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                 . Article 1
The Contracting Parties are determined to develop their commercial exchanges
on the basis of comparative advantage and mutual benefit so as to con­
tribute to their economic and social progress and to the improvement of
the balance of their mutual trade to as high a level as possible .
                                  Article 2
The Contracting Parties shall , in their commercial relations , grant each
other most -favoured-nation treatment in accordance with the provisions
of the General Agreement on Tariffs and Trade .
                                  Article 3
The Contracting Parties shall grant each other the highest degree of
liberalization cf imports and exports vxhich they apply to third countries
in general , and shall endeavour to provide maximum facilities compatible
with their respective policies and obligations with regard to products
of interest to either Party .
                                  Article 4
The Contracting Parties undertake to promote the development and diver­
sification of their mutual trade to the highest possible level . They
shall take all appropriate steps to achieve these results , including
particular measures which are relevant to the pattern and potential of
their mutual trade .
 ---pagebreak---                                   Article 5
The Contracting Parties may develop their economic cooperation , when
linked with trade , in fields of mutual interest and in the light of
developments in their economic policies . "                '
                                  Article 6
With a view to implementing Articles 4 and 5 » "the Contracting Parties
agree to enhance contacts and cooperation between their economic
organisation and to support the institutions which have "been or may
be set up to this end .
                                        t.
                                  Article 7
The Contracting Parties will endeavour j;o increase their cooperation
in commercial and related economic matters in third countries , so far
as it is in their mutual interest .
 i
                                  Artic le 8
                                            t            ,    C          •
1 . A Joint Commission shall be established comprising representatives
    of the Community and of Pakistan . It shall hold one session each year .
    Additional sessions may be convened...by common agreement at the recmest
    of either Contracting Party.
2 . The   Joint Commission shall adopt its own rules of procedure and
    programme of work .
3 . The Joint Commission may set up specialised Sub-Coimjiissions to assist
    it in the performance of such tasks as it may mandate .
 ---pagebreak---                                    Article 9
The Joint Commission shall ensure the proper functioning of this Agreement
and shall devise and recommend practical measures for achieving its
objectives . It shall exanine any difficulties likely to hinder the develop­
ment and diversification of trade "between the Contracting Parties .
                                   Article 10
The Joint Commission shall in particular
( a) study end devise ways of overcoming ' .trade
                                            'v
                                                  barriers and in particular
      non-tnriff and rruasi-tariff barriers in the various sectors of trade ,
      taking into account the relevant work undertaken in this field by the
      international organisations concerned^
(b ) endeavour to find ways of encouraging the development of economic and
      commercial cooperation between the Contracting Parties , in so far as
      thi3 would promote the development and diversification of their tradej
( c ) facilitate exchanges of information and encourage contacts on all
      subjects bearing upon the prospects for cooperation in the economic
      field between the Contracting Parties on a mutually advantageous basis
      and the creation of favourable conditions for such cooperation . -
                                   Article 11
The Joint Commission shall also ensure the proper functioning of any
sectoral Agreements between the' Contracting Parties and , , to this end, shall
exercise the responsibilities entrusted to the joint bodies which . have been
or may be sfct up under such Agreements .                  '
                                   Article 12
The provisions of this Agreement shall be substituted for provisions of
Agreements concluded between Member States of the Community and Pakistan
to the extent to which the latter are either incompatible or identical with
the former .
 ---pagebreak---                                    Article 13
The Annexes form an integral pari... qf.. this Agreement .
                                   Article 14
This Agreement shall "apply to the territories where the Treaty establishing
the European Economic Community applies , on the conditions established in
the said Treaty , and to the territories where the Constitution of the
Islamic Republic of Pakistan applies . .
                                   Article 15
1 . This Agreement shall enter into force on the first day of the month
    following the date on which the Contracting Parties notify each other
    of the completion of the procedures necessary for this purpose .
2 . This Agreement is concluded for a period of five years and shall be
, extended from year to year if neither Contracting Party denounces it
    six months before it expires .
3 . If both Contracting Parties agree , this Agreement , may, however , be
    amended at any time , to take account of emerging situations in the
    economic field and the evolution ,of economic policies on bo.th sides .
                                   Article 16
This Agreement is drawn up in two copies in the Danish , Dutch , English ,
French , German and Italian languages , each text being authentic .
                                /
 ---pagebreak---                                                           mm. i
          Joint Declaration on the functioning of the Joint Commission
1.   The representatives of the Contracting Parties in the Joint
Commission will transmit the agreed recommendations to their respective
authorities , for consideration and action to he taken as speedily and
effectively as possible .  In the event of the Joint Commission being
unable to evolve a recommendation on a matter considered by either
Contracting Party to be urgent or important , it shall submit . the views
of the two sides to the said authorities for further consideration.
2.   The Joint Commission should, when making proposals and
recommendations , have due regard to the Islamic Republic of Pakistan's
development plans and to the progress of economic , industrial , social ,
environmental and scientific policies of the Community as well as to .
the level of economic development of the Contracting Parties .
3.   The Joint Commission will examine   possibilities of and make ,
recommendations for the efficient utilization of all available instruments ,
besides most-favoured-nation tariffs and Generalized . Preferences , to .
promote trade in items of interest to the Islamic Republic of Pakistan.
 ---pagebreak---                                                             A'îraEX 2
                 Declaration of the European Eoonomic Community
       on tariff adjustments and other measures for facilitating trade
1.   , 0n 1 July 1971 1 "the Community autonomously introduced a •
Generalized Scheme of Preferences on the "basis of Resolution 21 (il )
of the Second United Nations Conference on Trade and Development , 1 S68 .
The Community is prepared , in the course of its endeavours to improve
this system, to take into account the interests of the Islamic liepubiic
of Pakistan in the extension and strengthening of its trade relations
with the Community .
2.     The Community is also prepared to examine in the Joint      '
Commission possibilities for tariff adjustments to promote the develop­
ment of trade with Pakistan .
3.     Recognising the vital importance of exports of cotton products
and Basmati rice to the economic development of Pakistan , the Community '
is ready to examine in the Joint Commission the situation of Pakistan 's
trade with the Community in these products and to explore possibilities
for facilitating it^' insofar as- cotton products are- concerned to 'the ex­
tent permitted by the current agreement between the Contracting Parties
and their multilateral obligations .
4.     The Community understands that the Islamic Republic of Pakistan
will also be prepared to discuss in the Joint Commission the Community's
proposals , if any ,, with regard to tariff adjustments by the Islamic .
Republic of Pakistan aimed at the development of trade between the
Contracting Parties , taking into consideration the development needs
of Pakistan .
 ---pagebreak---                                                             ÂWREX 3
            Declaration of the Islamic Republic of Pakistan
         on tariff adjustments and other measures for facilitating trade
1.   The Islamic Republic of Pakistan notes that the Community is v
prepared, in the course of its endeavours to improve the system of
Generalized Preferences , to take into account the interests of the
Islamic Republic of Pakistan in the extension and strengthening of its
trade relations with the Community . In this connection , the Islamic
Republic of Pakistan will identify for consideration by the Community
the areas in which the Community 's Generalized Preferences can be improved,
more especially in the context of the provisions of the Joint Declaration
of Intent .
                                                 i
?.   The Islamic Republic of Pakistan also notes that the Community is
prepared to examine in the Joint Commission possibilities for tariff
adjustments to promote the development of trade with Pakistan. In this
connection the Islamic Republic of Pakistan may notify the Community of
products in respect of which such concessions are desired, for examination
in the Joint Commission.           '
3.   The Islamic Republic of Pakistan further notes that the Community is
ready to examine in the Joint Commission the situation of Pakistan 's trade
with the Community in cotton products and Basmati rice and to explore
possibilities for facilitating it , insofar as cotton products are concerned
to the extent permitted by the current agreement between the Contracting
Parties and their multilateral obligations .
4»   The Islamic Republic of Pakistan will also be prepared to discuss in
the Joint Commission the Community 's proposals , if any , with regard to tariff
adjustments by the Islamic Republic of Pakistan aimed at the development of
trade between the Contracting Parties , taking into consideration the develop­
ment needs of Pakistan .