CELEX: 52015PC0226
Language: en
Date: 2015-05-29
Title: Proposal for a COUNCIL DECISION on the conclusion of the Framework Agreement on Partnership and Cooperation between the European Union and its Member States, of the one part, and Mongolia, of the other part

EUROPEAN
                            COMMISSION
                                                   Brussels, 29.5.2015
                                                   COM(2015) 226 final
                                                   2015/0114 (NLE)
                                      Proposal for a
                                 COUNCIL DECISION
     on the conclusion of the Framework Agreement on Partnership and Cooperation
   between the European Union and its Member States, of the one part, and Mongolia, of
                                     the other part
EN                                                                                     EN
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
   CONTEXT OF THE PROPOSAL
   On 27 July 2009, the Council authorised the Commission to negotiate a Framework
   Agreement on Partnership and Cooperation (PCA) with Mongolia. Negotiations were
   launched in Ulaan Baatar in January 2010 and concluded in October 2010. The two sides
   initialled the PCA in Ulaan Baatar on 20 December 2010 and signed it in Ulaan Baatar on
   30 April 2013. The PCA will supersede the current legal framework of the 1993 Agreement
   on trade and economic cooperation between the European Economic Community and
   Mongolia.
   The PCA is testimony to the growing importance of EU-Mongolia relations based on shared
   principles such as equality, mutual respect, mutual benefit, democracy, the rule of law and
   human rights. It includes the EU’s standard political clauses on human rights, weapons of
   mass destruction (WMDs), the International Criminal Court (ICC), small arms and light
   weapons (SALWs) and counter-terrorism, and promotes bilateral, regional and international
   cooperation. It provides the basis for more effective engagement by the EU and its Member
   States with Mongolia. It strengthens political, economic and sectoral cooperation across a
   wide range of policy fields, including trade and investment, development, justice, freedom
   and security. It encompasses areas such as cooperation on principles, norms and standards,
   raw materials, migration, organised crime and corruption, industrial policy and small and
   medium-sized enterprises, tourism, energy, education and culture, the environment, climate
   change and natural resources, agriculture, health, civil society and the modernisation of the
   state and public administration.
   The PCA will allow the EU to assume greater responsibility and influence in the region, and
   to promote European values and enhance concrete cooperation in a wide range of areas of
   mutual interest.
   The Commission notes that following the 11 June 2014 ruling of the Court of Justice of the
   European Union in Case C-377/12 Commission v Council regarding the Council Decision on
   the signature of the PCA with the Philippines, this proposal should be based on Articles 207,
   209 and 218(6) of the Treaty on the Functioning of the European Union (TFEU).
   The Commission draws the attention of the Council to the antepenultimate recital in the PCA,
   on the position of the UK, Ireland and Denmark pursuant to Protocols 21 and 22 of the
   Treaties. In the light of the above judgment, it follows that the Protocols referred to in the
   recital do not apply to the PCA itself. The EU side should inform the Mongolian side of these
   internal developments by means of a note verbale.
EN                                               2                                                EN
 ---pagebreak---                                                            2015/0114 (NLE)
                                             Proposal for a
                                        COUNCIL DECISION
        on the conclusion of the Framework Agreement on Partnership and Cooperation
     between the European Union and its Member States, of the one part, and Mongolia, of
                                            the other part
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular
   Articles 207 and 209, in conjunction with Article 218(6)(a) thereof,
   Having regard to the proposal from the European Commission,
   Having regard to the consent of the European Parliament1,
   Whereas:
   (1)     In accordance with the Decision of the Council of 14 May 2012, a Framework
           Agreement on Partnership and Cooperation between the European Union and its
           Member States, of the one part, and Mongolia, of the other part, was signed on 30
           April 2013, subject to its conclusion at a later date.2
   (2)     The Agreement should be approved on behalf of the European Union,
   HAS ADOPTED THIS DECISION:
                                               Article 1
   The Framework Agreement on Partnership and Cooperation between the European Union and
   its Member States, of the one part, and Mongolia, of the other part, is hereby approved on
   behalf of the Union.
   The text of the Agreement is annexed to this Decision.
                                               Article 2
   The High Representative of the Union for Foreign Affairs and Security Policy, in accordance
   with her responsibilities pursuant to the Treaties, shall chair the Joint Committee provided for
   in Article 56 of the Agreement.
   The Union or, as the case may be, the Union and the Member States shall be represented in
   the Joint Committee depending on the subject matter.
                                               Article 3
   The President of the Council shall designate the person empowered to give, on behalf of the
   Union, the notification provided for in Article 63(1) of the Agreement.
   1
           OJ C , , p. .
   2
           OJ L 134/4 (24.05.2012)
EN                                                  3                                               EN
 ---pagebreak---                                              Article 4
   This Decision shall enter into force on the day of its adoption. It shall be published in the
   Official Journal of the European Union.
   Done at Brussels,
                                              For the Council
                                              The President
EN                                               4                                               EN
 ---documentbreak---                             EUROPEAN
                            COMMISSION
                                                  Brussels, 29.5.2015
                                                  COM(2015) 226 final
                                                  ANNEX 1
                                         ANNEX
                                           to the
                              Proposal for a Council Decision
     on the conclusion of the Framework Agreement on Partnership and Cooperation
   between the European Union and its Member States, of the one part, and Mongolia, of
                                      the other part
EN                                                                                     EN
 ---pagebreak---                                          ANNEX
    Framework Agreement on Partnership and Cooperation between the European Union
          and its Member States, of the one part, and Mongolia, of the other part
   THE EUROPEAN UNION, hereinafter referred to as "the Union"
   and
   THE KINGDOM OF BELGIUM,
   THE REPUBLIC OF BULGARIA,
   THE CZECH REPUBLIC,
   THE KINGDOM OF DENMARK,
   THE FEDERAL REPUBLIC OF GERMANY,
   THE REPUBLIC OF ESTONIA,
   IRELAND,
   THE HELLENIC REPUBLIC,
   THE KINGDOM OF SPAIN,
   THE FRENCH REPUBLIC,
   THE ITALIAN REPUBLIC,
   THE REPUBLIC OF CYPRUS,
   THE REPUBLIC OF LATVIA,
   THE REPUBLIC OF LITHUANIA,
   THE GRAND DUCHY OF LUXEMBOURG,
   THE REPUBLIC OF HUNGARY,
   MALTA,
   THE KINGDOM OF THE NETHERLANDS,
   THE REPUBLIC OF AUSTRIA,
   THE REPUBLIC OF POLAND,
EN                                           2                                    EN
 ---pagebreak---    THE PORTUGUESE REPUBLIC,
   ROMANIA,
   THE REPUBLIC OF SLOVENIA,
   THE SLOVAK REPUBLIC,
   THE REPUBLIC OF FINLAND,
   THE KINGDOM OF SWEDEN,
   THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
   Contracting Parties to the Treaty on the European Union and the Treaty on the Functioning of
   the European Union, hereinafter referred to as the "Member States",
           of the one part, and
   THE GOVERNMENT OF MONGOLIA, hereinafter referred to as "Mongolia",
           of the other part,
   hereinafter jointly referred to as "the Parties",
   CONSIDERING the traditional links of friendship between the Parties and the close
   historical, political and economic ties which unite them,
   WHEREAS the Parties attach particular importance to the comprehensive nature of their
   mutual relationship,
   WHEREAS the Parties consider that this Agreement forms part of a wider and coherent
   relationship between them through agreements to which both sides are parties together,
   REAFFIRMING the commitment of the Parties to, and their wish to strengthen, respect for
   democratic principles, the rule of law, human rights and fundamental freedoms, including the
   rights of persons belonging to minorities, as laid down, inter alia, in the United Nations
   Charter and the United Nations Universal Declaration on Human Rights and other relevant
   international human rights instruments,
   REAFFIRMING their attachment to the principles of the rule of law, respect of international
   law, good governance and the fight against corruption, and their desire to promote economic
   and social progress for their peoples, taking into account the principle of sustainable
   development and environmental protection requirements,
   REAFFIRMING their desire to enhance cooperation between the Parties, based on these
   shared values,
   REAFFIRMING their desire to promote economic and social progress for their peoples,
   taking into account the principle of sustainable development in all its dimensions,
EN                                                   3                                          EN
 ---pagebreak---    REAFFIRMING their commitment to promoting international peace and security and to
   engaging in effective multilateralism and the peaceful settlement of disputes, notably by
   cooperating to that end within the framework of the United Nations,
   REAFFIRMING their desire to enhance cooperation on political and economic issues, as well
   as on international stability, justice and security as a basic precondition to promoting
   sustainable social and economic development, the eradication of poverty and the achievement
   of the Millennium Development Goals,
   WHEREAS the Parties view terrorism as a threat to global security and wish to intensify their
   dialogue and cooperation in the fight against terrorism, in accordance with relevant UN
   Security Council instruments, particularly UNSC Resolution 1373. The European Security
   Strategy, adopted by the European Council in December 2003, identifies terrorism as a key
   threat to security. In this regard, the European Union has implemented key measures,
   including a Plan of Action on Combating Terrorism adopted in 2001 and updated in 2004, and
   a major Declaration on Combating Terrorism of 25 March 2004 in the wake of the Madrid
   attacks. The European Union also adopted an EU Counter Terrorism Strategy in December
   2005,
   EXPRESSING their full commitment to prevent and combat all forms of terrorism and to
   stepping up cooperation in the fight against terrorism, and to fight against organised crime,
   WHEREAS the Parties reaffirm that effective counter-terrorism measures and protection of
   human rights are complementary and mutually reinforcing,
   REAFFIRMING that the most serious crimes of concern to the international community must
   not go unpunished and that their effective prosecution must be ensured by taking measures at
   national level and by enhancing global collaboration,
   CONSIDERING that the establishment and effective functioning of the International Criminal
   Court constitute an important development for peace and international justice and that the
   Council of the European Union adopted on 16 June 2003 a Common Position on the ICC
   which has been followed up by an Action Plan, adopted on 4 February 2004,
   WHEREAS the Parties share the view that the proliferation of weapons of mass destruction
   and their means of delivery pose a major threat to international security and wish to
   strengthen their dialogue and cooperation in this area. The adoption by consensus of UNSC
   Resolution 1540 underlies the commitment of the whole international community to fight
   against proliferation of weapons of mass destruction. The Council of the European Union
   adopted, on 17 November 2003, an EU policy of mainstreaming non-proliferation policies
   into EU relations with third countries. The European Council also adopted, on 12 December
   2003, a Strategy to fight against proliferation,
   WHEREAS the European Council expressed that Small Arms and Light Weapons (SALW)
   constitute a growing threat to peace, security and development and adopted on 13 January
   2006 a Strategy to combat the illicit accumulation of SALW and their ammunition. In this
   Strategy, the European Council emphasized the need to ensure a comprehensive and
   consistent approach of security and development policy,
   EXPRESSING their full commitment to promoting all aspects of sustainable development,
   including, environmental protection and effective cooperation to combat climate change, food
EN                                                  4                                            EN
 ---pagebreak---    security as well as effective promotion and implementation of internationally recognised
   labour and social standards,
   UNDERLINING the importance of deepening relations and cooperation in areas such as
   readmission, asylum and visa policy, and of addressing jointly migration and human
   trafficking,
   REITERATING the importance of trade for their bilateral relations and in particular of trade
   in raw materials and underlining their engagement to agree specific rules on raw materials in
   the Sub Committee on Trade and Investment,
   NOTING that the provisions of this Agreement that fall within the scope of Part Three, Title
   V of the Treaty on the Functioning of the European Union bind the United Kingdom and
   Ireland as separate Contracting Parties, and not as part of the European Union, unless the
   European Union together with the UK and/or Ireland have jointly notified Mongolia that the
   United Kingdom or Ireland is bound 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. If the United Kingdom and/or Ireland ceases to be
   bound as part of the European Union in accordance with Article 4a of the Protocol No. 21, the
   European Union together with the UK and/or Ireland shall immediately inform Mongolia of
   any change in their position in which case they shall remain bound by the provisions of the
   agreement in their own right. The same applies to Denmark in accordance with the Protocol
   annexed to those Treaties on the position of Denmark,
   CONFIRMING their commitment to strengthening the existing relationship with a view to
   enhancing cooperation between them, and their common will to consolidate, deepen and
   diversify their relations in areas of interest on the basis of equality, non-discrimination and
   mutual benefit,
   HAVE AGREED AS FOLLOWS:
                                                TITLE I
                                       NATURE AND SCOPE
                                              ARTICLE 1
                                          General principles
   1.        Respect for democratic principles and human rights, as laid down in the Universal
             Declaration of Human Rights and other 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.
   2.        The Parties confirm their shared values as expressed in the Charter of the United
             Nations.
EN                                                 5                                               EN
 ---pagebreak---    3.     The Parties confirm their commitment to promoting all aspects of sustainable
          development, cooperating to address the challenges of climate change as well as
          globalisation and to contributing to the internationally agreed development goals,
          including those contained in the Millennium Development Goals. The Parties
          reaffirm their attachment to a high level of environmental protection and inclusive
          social structures.
   4.     The Parties reaffirm their commitment to the Paris Declaration of 2005 on Aid
          Effectiveness and agree to strengthen cooperation with a view to further improving
          development performance.
   5.     The Parties reaffirm their attachment to the principles of good governance, including
          the independence of the judiciary and the fight against corruption.
                                             ARTICLE 2
                                        Aims of cooperation
   With a view to strengthening their bilateral relationship, the Parties undertake to hold a
          comprehensive dialogue and promote further cooperation between them on all
          sectors of mutual interest. Their efforts will in particular be aimed at:
   (a)    establishing cooperation on political and economic matters in all relevant regional
          and international fora and organisations;
   (b)    establishing cooperation on the fight against serious crimes of international concern;
   (c)    establishing cooperation on countering the proliferation of weapons of mass
          destruction and on small arms and light weapons;
   (d)    developing trade and investment between the Parties to their mutual advantage;
          establishing cooperation in all trade and investment-related areas of mutual interest,
          in order to facilitate trade and investment flows and to prevent and remove obstacles
          to trade and investment;
   (e)    establishing cooperation in the area of justice, freedom and security, including rule of
          law and legal cooperation, data protection, migration, smuggling and trafficking in
          human beings, combating organised crime, terrorism, transnational crimes, money
          laundering and illicit drugs;
   (f)    establishing cooperation in all other sectors of mutual interest, notably macro
          economic policy and financial services, taxation and customs, including good
          governance in the tax area, industrial policy and small and medium-sized enterprises
          (SMEs), information society, audiovisual and media, science and technology, energy,
          transport, education and culture, environment and natural resources, agriculture and
          rural development, health, employment and social affairs and statistics;
   (g)    enhancing both Parties' participation in sub-regional and regional cooperation
          programmes open to the participation of the other Party;
   (h)    raising the roles and profiles of the Parties in each other's region;
   (i)    promoting people-to-people understanding through cooperation among various non
          governmental entities such as think-tanks, academics, civil society, and the media, in
          the form of seminars, conferences, youth interaction and other activities;
   (j)    promoting poverty eradication in the context of sustainable development and the
          progressive integration of Mongolia into the world economy.
EN                                                6                                                EN
 ---pagebreak---                                          ARTICLE 3
               Countering the proliferation of weapons of mass destruction
                                 and their means of delivery
   1. The Parties consider that the proliferation of weapons of mass destruction and their
      means of delivery, both to state and non-state actors, represents one of the most
      serious threats to international stability and security.
   2. The Parties therefore agree to cooperate and to contribute to countering the
      proliferation of weapons of mass destruction and their means of delivery through full
      compliance with and national implementation of their existing obligations under
      international disarmament and non proliferation treaties and agreements and other
      relevant international obligations such as UN Security Council Resolution 1540. The
      Parties agree that this provision constitutes an essential element of the Agreement.
   3. The Parties furthermore agree to cooperate and to contribute to countering the
      proliferation of weapons of mass destruction and their means of delivery by:
   –  taking steps to sign, ratify, or accede to, as appropriate, and fully implement all other
      relevant international instruments;
   –  establishing an effective system of national export controls, controlling the export
      and transit of WMD related goods, including a WMD end-use control on dual use
      technologies and containing effective sanctions for breaches of export controls.
   4. The Parties agree to establish a regular political dialogue that will accompany and
      consolidate these elements. Such dialogue may take place on a regional basis.
EN                                             7                                                EN
 ---pagebreak---                                         ARTICLE 4
                                Small arms and light weapons
   1. The Parties recognize that the illicit manufacture, transfer and circulation of small
      arms and light weapons, including their ammunition, and their excessive
      accumulation, poor management, inadequately secured stockpiles and uncontrolled
      spread continue to pose a serious threat to peace and international security.
   2. The Parties agree to observe and fully implement their respective obligations to deal
      with the illicit trade in small arms and light weapons, including their ammunition,
      under existing international agreements and UN Security Council resolutions, as well
      as their commitments within the framework of other international instruments
      applicable in this area, such as the UN Programme of Action to prevent, combat and
      eradicate the illicit trade in SALW in all its aspects.
   3. The Parties undertake to cooperate and to ensure coordination, complementarity and
      synergy in their efforts to deal with the illicit trade in small arms and light weapons,
      including their ammunition, at global, regional, sub regional and national levels and
      agree to establish regular political dialogue that will accompany and consolidate this
      undertaking.
EN                                            8                                                EN
 ---pagebreak---                                        ARTICLE 5
                         Serious crimes of international concern
                            (the International Criminal Court)
   1. The Parties reaffirm that the most serious crimes of concern to the international
      community as a whole must not go unpunished and that their effective prosecution
      must be ensured by taking measures at the national and international level, as
      appropriate, including the International Criminal Court. The Parties consider that
      establishing an effectively functioning International Criminal Court constitutes a
      significant development for international peace and justice.
   2. The parties agree to cooperate and to take the necessary measures, as appropriate, in
      order to fully support the universality and integrity of the Rome Statute and related
      instruments and agree to strengthen their cooperation with the ICC. The parties
      undertake to implement the Rome Statute and to take the necessary steps to ratify the
      related instruments (such as the Agreement on the Privileges and Immunities of the
      ICC).
   3. The Parties agree that a dialogue between them on these matters would be beneficial.
EN                                           9                                              EN
 ---pagebreak---                                          ARTICLE 6
                             Cooperation in combating terrorism
   1.  The Parties, reaffirming the importance of the fight against terrorism, and in
       accordance with applicable international conventions, including international
       humanitarian and human rights, as well as with their respective legislation and
       regulations, and, taking into account the UN Global Counter Terrorism Strategy,
       contained in the UN General Assembly Resolution no 60/288 of 8 September 2006
       agree to cooperate in the prevention and suppression of terrorist acts.
   2.  The Parties shall do so in particular:
   (a) in the framework of the full implementation of UN Security Council Resolutions
       1373 and 1267 and its successor resolutions, including 1822, as well as other relevant
       UN resolutions, and their respective obligations under other relevant international
       conventions and instruments;
   (b) by exchange of information on terrorists, terrorist groups and their support networks,
       in accordance with international and national law;
   (c) by exchanges of views on means and methods used to counter terrorism, including in
       technical fields and training, and by exchange of experiences in respect of terrorism
       prevention;
   (d) by cooperating to deepen the international consensus on the fight against terrorism
       including the legal definition of terrorist acts and in particular by working towards an
       agreement on the Comprehensive Convention on International Terrorism;
   (e) by sharing relevant best practices in the area of protection of human rights in the
       fight against terrorism;
   (f) by effectively implementing and enhancing their cooperation on counter-terrorism
       within the ASEM framework.
EN                                            10                                                EN
 ---pagebreak---                                               TITLE II
             BILATERAL, REGIONAL AND INTERNATIONAL COOPERATION
                                             ARTICLE 7
   Cooperation between Mongolia and the EU on principles, norms and standards
   1.      The Parties agree to achieve European common principles, norms and standards in
           Mongolia, and to cooperate on promoting the exchange of information and sharing of
           experience with a view to introduction and implementation.
   2.      The Parties endeavour to strengthen the dialogue and cooperation between their
           Authorities on standardisation matters which, as agreed by the Parties, may include
           creation of cooperation framework which will facilitate the exchange of experts,
           information and expertise.
                                             ARTICLE 8
                       Cooperation in regional and international organisations
   1.      The Parties undertake to exchange views and cooperate in regional and international
           fora and organisations such as the United Nations and relevant United Nations
           agencies, programmes and bodies, the World Trade Organisation (WTO), the Treaty
           on Amity and Cooperation (TAC) and the Asia-Europe Meeting (ASEM).
   2.      The Parties also agree to promote cooperation between think-tanks, academics, non
           governmental organisations and the media in areas covered by this Agreement. Such
           cooperation may in particular include organisation of training schemes, workshops
           and seminars, exchanges of experts, studies, and other actions agreed by the Parties.
                                             ARTICLE 9
                                 Regional and bilateral cooperation
   1.      For each sector of dialogue and cooperation under this Agreement, and while giving
           due emphasis to matters under bilateral cooperation, both sides will agree to carry
           out the related activities at bilateral or regional level or through a combination of
           both frameworks. In choosing the appropriate framework, the Parties will seek to
           maximise the impact on and reinforce the involvement of all interested parties, while
           making the best possible use of available resources, taking account of the political
           and institutional feasibility, and ensuring coherence with other activities involving
           the European Union and other ASEM partners.
   2.      The Parties may, as appropriate, decide to extend financial support to cooperation
           activities in the areas covered by the Agreement or in relation to it, in accordance
           with their respective financial procedures and resources.
EN                                                11                                             EN
 ---pagebreak---                                           TITLE III
                 COOPERATION ON SUSTAINABLE DEVELOPMENT
                                       ARTICLE 10
                                     General Principles
   1.  The central objective of development cooperation is poverty reduction pursuing the
       Millennium Development Goals in the context of sustainable development and
       integration into the world economy. The Parties agree to hold a regular dialogue on
       development cooperation, in line with their respective priorities and areas of mutual
       interest.
   2.  The development cooperation strategies of the Parties shall aim at, inter alia:
   (a) promoting human and social development;
   (b) achieving sustained economic growth;
   (c) promoting environmental sustainability, regeneration and best practices, and the
       preservation of natural resources;
   (d) preventing and tackling the consequences of climate change;
   (e) supporting policies and instruments aimed at the further integration into the world
       economy and international trading system;
   (f) pursuing processes adhering to the Paris Declaration on Aid Effectiveness, the Accra
       Agenda for Action, and other international commitments aimed at improving the
       delivery and effectiveness of aid.
EN                                           12                                              EN
 ---pagebreak---                                       ARTICLE 11
                                 Economic development
   1. The Parties aim to promote balanced economic growth, poverty reduction and the
      reduction of social economic disparities.
   2. The Parties confirm their commitment to achieving the Millennium Development
      Goals and should reaffirm their commitment to the Paris Declaration of 2005 on Aid
      Effectiveness.
   3. The Agreement should also aim to include commitments on social and environmental
      aspects of trade, reconfirming that trade should promote sustainable development in
      all its dimensions and it should promote the assessment of its economic, social and
      environmental impacts.
EN                                          13                                            EN
 ---pagebreak---                                         ARTICLE 12
                                    Social development
   1. The Parties aim to underscore the need for mutually-reinforcing economic and social
      policies, highlight the key role of generating decent work and commit the Parties to
      supporting social dialogue.
   2. The Parties aim to contribute to the effective implementation of International Labour
      Organisation (ILO) core labour standards, and to reinforce cooperation on
      employment and social issues.
   3. The Parties furthermore aim to promote policies intended to guarantee availability
      and supplies of food for the population and of feed for the livestock, in an
      environmentally friendly and sustainable manner.
                                        ARTICLE 13
                                        Environment
   1. The Parties reaffirm the need for a high level of environmental protection and the
      conservation and management of natural resources and biological diversity,
      including forests, in pursuit of sustainable development.
   2. The Parties aim to promote the ratification, implementation of and compliance with
      multilateral environmental agreements in the environmental area.
   3. The Parties aim to reinforce cooperation on global environmental issues, in particular
      climate change.
EN                                           14                                              EN
 ---pagebreak---                                          TITLE IV
              COOPERATION ON TRADE AND INVESTMENT ISSUES
                                       ARTICLE 14
                                     General principles
   1. The Parties shall engage in a dialogue on bilateral and multilateral trade and trade
      related issues with a view to strengthening bilateral trade relations and advancing the
      multilateral trade system.
   2. The Parties undertake to promote the development and diversification of their
      reciprocal commercial exchanges to the highest possible level and to their mutual
      benefit. They undertake to achieve improved market access conditions by working
      towards the elimination of barriers to trade, in particular through the timely removal
      of non-tariff barriers and by taking measures to improve transparency, having regard
      to the work carried out by international organisations in this field.
   3. Recognising that trade plays an indispensable role in development, and that
      assistance in the form of trade preferences schemes have proven beneficial to
      developing countries, the Parties shall endeavour to strengthen their consultation on
      such assistance, in full compliance with the WTO.
   4. The Parties shall keep each other informed concerning the development of trade and
      trade related policies such as agricultural policy, food safety policy, consumer policy
      and environmental policy.
   5. The Parties shall encourage dialogue and cooperation to develop their trade and
      investment relations, including the solution of commercial problems, in, among other
      issues, the areas referred to under Articles 10 to 27.
                                       ARTICLE 15
                          Sanitary and phytosanitary (SPS) issues
   1. The Parties shall cooperate on food safety and on sanitary and phytosanitary issues to
      protect human, animal or plant life or health in the territory of the Parties.
   2. The Parties shall discuss and exchange information on their respective measures as
      defined in the World Trade Organization (WTO) Agreement on Sanitary and
      Phytosanitary measures (SPS), the International Plant Protection Convention (IPPC),
      the World Organisation for Animal Health (OIE) and the Codex Alimentarius
      Commission (Codex).
   3. The Parties agree to enhance mutual understanding and cooperation on SPS matters
      and animal welfare. Such capacity building shall be specific to the needs of each
      Party and be conducted with an aim to assist such Party in complying with the other
      Party's legal framework.
   4. The Parties shall establish a timely dialogue on SPS issues upon request by either
      Party to consider matters relating to SPS and other urgent related issues under this
      Article.
EN                                           15                                               EN
 ---pagebreak---                                           ARTICLE 16
                              Technical Barriers to Trade (TBT)
      The Parties shall promote the use of international standards and cooperate and
       exchange information on standards, conformity assessment procedures and technical
       regulations, especially within the framework of the WTO Agreement on Technical
       Barriers to Trade (TBT).
                                          ARTICLE 17
                                      Customs cooperation
   1.  The Parties will pay special attention to increasing the security and safety dimension
       of international trade, including transport services, an effective and efficient customs
       enforcement of intellectual property rights, ensuring a balanced approach between
       trade facilitation and the fight against fraud and irregularities.
   2.  Without prejudice to other forms of cooperation, provided for under this Agreement,
       the Parties state their interest in considering, in the future, the conclusion of protocols
       on customs cooperation and mutual assistance, within the institutional framework
       laid down in this Agreement.
                                          ARTICLE 18
                                        Trade facilitation
       The Parties shall share experience in and examine possibilities to simplify import,
       export, transit and other customs procedures, increase the transparency of customs
       and trade regulations, develop customs cooperation and effective mutual
       administrative assistance mechanisms and seek convergence of views and joint
       action in the context of relevant international initiatives including trade facilitation.
                                          ARTICLE 19
                                            Investment
       The Parties shall encourage a greater flow of investment through the development of
       an attractive and stable environment for reciprocal investment through a consistent
       dialogue, aimed at enhancing understanding and cooperation on investment issues,
       exploring administrative mechanisms to facilitate investment flows, and promoting
       stable, transparent, open and non-discriminatory rules for investors.
EN                                              16                                                 EN
 ---pagebreak---                                     ARTICLE 20
                                 Competition policy
   The Parties shall promote the effective establishment and application of competition
   rules and the dissemination of information in order to foster transparency and legal
   certainty for enterprises operating in each other's markets. The Parties should
   exchange views on issues related to anti competitive practice which could adversely
   affect bilateral trade and investment flows.
                                    ARTICLE 21
                                      Services
   The Parties shall establish a consistent dialogue notably aimed at exchanging
   information on their respective regulatory environments, promoting access to each
   other's markets, promoting access to sources of capital and technology, and
   promoting trade in services between both regions and in third countries' markets.
                                    ARTICLE 22
                                 Capital movements
   The Parties shall endeavour to facilitate the movement of capital in order to promote
   the objectives of the Agreement.
                                    ARTICLE 23
                               Government procurement
   The Parties shall aim to set procedural rules, including adequate transparency and
   challenge provisions that support the setting-up of an effective procurement system
   promoting optimal value for money in public purchasing and facilitate international
   trade.
   The Parties shall work to achieve a reciprocal opening of their government
   procurement market, with a view to gaining mutual benefit.
                                    ARTICLE 24
                                    Transparency
   The Parties recognise the importance of transparency and due process in the
   administration of their trade related laws and regulations, and to this end they
   reaffirm their commitments as set out in Article X of the GATT 1994 and Article III
   of the GATS.
EN                                        17                                             EN
 ---pagebreak---                                      ARTICLE 25
                                    Raw materials
   1.     The Parties agree to strengthen cooperation and promotion of mutual
   understanding between both sides in the field of raw materials.
   2.     This cooperation and promotion of mutual understanding should address topics
   such as the regulatory framework for raw materials sectors (including governance of
   mining income for socioeconomic development; and environmental protection and
   safety regulations in relation to the mining and raw material sectors) and trade in raw
   materials. With a view to foster greater cooperation and mutual understanding, either
   Party may request ad hoc meetings related to raw materials.
   3.     The Parties recognize that a transparent, non-discriminatory, non distortive
   rules based environment is the best way to create an environment favourable to
   foreign direct investment in the production and trade of raw materials.
   4.     The Parties, taking into account their respective economic policies and
   objectives and with a view to fostering trade, agree to promote cooperation in the
   removal of barriers to trade in raw materials.
   5.     Upon request by either Party, any matter concerning trade in raw materials
   could be raised and discussed during the Joint Committee and Subcommittee
   meetings, which shall have the power to take decisions thereon pursuant to Article 56
   in line with the principles set out in the paragraphs above.
EN                                         18                                              EN
 ---pagebreak---                                     ARTICLE 26
                                   Regional policy
   The Parties shall encourage the regional development policy.
                                    ARTICLE 27
                           Intellectual property protection
   1.     The Parties reaffirm the great importance they attach to the protection of
   intellectual property rights and undertake to establish the appropriate measures with a
   view to ensuring adequate and effective protection and enforcement of such rights,
   notably relating to the infringement of intellectual property rights.
   Furthermore, the Parties agree to conclude as soon as possible a bilateral Agreement
   on Geographical Indications.
   2.     The Parties shall exchange information and experience on issues such as the
   practice, promotion, dissemination, streamlining, management, harmonisation,
   protection and effective application of intellectual property rights, the prevention of
   infringements of such rights, the fight against counterfeiting and piracy, namely
   through customs cooperation and other appropriate forms of cooperation, and the
   establishment and strengthening of organisations for the control and protection of
   such rights. The Parties shall assist each other in improving intellectual property
   protection, utilisation and commercialisation based upon the European experience,
   and enhancing dissemination of knowledge thereof.
                                    ARTICLE 28
                       Subcommittee on Trade and Investment
   1.     A Subcommittee on Trade and Investment is hereby established.
   2.     The Subcommittee shall assist the Joint Committee in the performance of its
   tasks, by dealing with all areas covered by this Chapter.
   3.     The Subcommittee shall establish its rules of procedure.
EN                                        19                                               EN
 ---pagebreak---                                         TITLE V
   COOPERATION IN THE AREA OF JUSTICE, FREEDOM AND SECURITY
                                     ARTICLE 29
                           Rule of law and legal cooperation
    1.     In their cooperation in the area of justice, freedom and security the Parties shall
    attach particular importance to the consolidation of the rule of law and the
    reinforcement of institutions at all levels in the areas of law enforcement and the
    administration of justice in particular.
    2.     Cooperation between the Parties will also include mutual exchange of
    information concerning legal systems and legislation. The Parties shall endeavour to
    develop mutual legal assistance within the existing legal framework.
                                     ARTICLE 30
                              Protection of personal data
    1.     The Parties agree to cooperate in order to improve the level of protection of
    personal data to the highest international standards, such as those contained, inter
    alia, in the UN Guidelines for the Regulation of Computerized Personal Data Files
    (UN General Assembly Resolution 45/95 of 14 December 1990).
    2.     Cooperation on protection of personal data may include, inter alia, technical
    assistance in the form of exchange of information and expertise.
EN                                         20                                                  EN
 ---pagebreak---                                      ARTICLE 31
                                Cooperation on migration
   1.      Parties shall establish cooperation aimed at preventing illegal immigration and
   illegal presence of physical persons of their nationality on their respective territories.
   2.      In the framework of the cooperation to prevent illegal immigration, the Parties
   agree to readmit, without undue delay, their nationals who do not, or who no longer
   fulfil the conditions in force for entry to, presence in or residence on the territory of
   the other Party. To this end, the Parties will provide their nationals with appropriate
   identity documents for such purposes. Where the person to be readmitted does not
   possess any documents or other proofs of his or her nationality, the competent
   diplomatic and consular representations of the Member State concerned or Mongolia
   shall, upon request by Mongolia or the Member State concerned, make arrangements
   to interview the person in order to establish his or her nationality.
   3.      The EU will assist financially with the implementation of this understanding
   through relevant bilateral cooperation instruments.
   4.      Parties agree to negotiate, upon request by either Party, an agreement between
   the EU and Mongolia regulating the specific obligations for readmission of their
   nationals, and including an obligation for nationals of other countries and stateless
   persons.
                                     ARTICLE 32
                            Cooperation against illicit drugs
   1.      The Parties shall cooperate to ensure a balanced approach through effective
   coordination between the competent authorities including from the health, justice,
   customs and interior sectors and other relevant sectors, with the aim of reducing the
   supply of, trafficking in and demand for illicit drugs, and with due regard to human
   rights. This cooperation shall also aim to reduce drug related harm, to address
   synthetic drug production, trafficking and use and to achieve a more effective
   prevention of diversion of drug precursors used for the illicit manufacture of narcotic
   drugs and psychotropic substances.
   2.      The Parties shall agree on means of cooperation to attain these objectives.
   Actions shall be based on commonly agreed principles along the lines of the relevant
   international conventions, the Political Declaration and the Special Declaration on
   the Guiding Principles of Drug Demand Reduction, approved by the Twentieth
   United Nations General Assembly Special Session (UNGASS) on Drugs in June
   1998 and the Political Declaration and Plan of Action adopted at the 52nd session of
   the United Nations Commission on Narcotic Drugs in March 2009.
   3.      The cooperation between the Parties shall comprise technical and
   administrative assistance in particular in the following areas: drafting of national
   legislation and policies; establishment of national institutions and information
   centres; support for civil society efforts in the area of drugs and efforts to reduce
   demand for, and the harm from drugs; training of personnel; drug related research;
   and prevention of diversion of drug precursors used for the illicit manufacture of
EN                                         21                                                 EN
 ---pagebreak---    narcotic drugs and psychotropic substances. The Parties may agree to include other
   areas.
                                   ARTICLE 33
                Cooperation against organised crime and corruption
   The Parties agree to cooperate in combating organised, economic and financial crime
   as well as corruption. Such cooperation aims in particular at implementing and
   promoting relevant international standards and instruments such as the UN
   Convention against Transnational Organised Crime and its supplementing Protocols
   and the UN Convention against Corruption.
                                   ARTICLE 34
       Cooperation in combating money laundering and terrorism financing
   1.     The Parties agree on the need to work towards and to cooperate on preventing
   the use of their financial system and designated non-financial businesses and
   professions to launder the proceeds of all criminal activities such as drug trafficking
   and corruption.
   2.     Both Parties agree to promote technical and administrative assistance aimed at
   the development and implementation of regulations and the efficient functioning of
   mechanisms to combat money laundering and terrorism financing. In particular,
   cooperation shall allow exchanges of relevant information within the framework of
   respective legislations and the adoption of appropriate standards to combat money
   laundering and the financing of terrorism equivalent to those adopted by the Union
   and the international bodies active in this area, such as the Financial Action Task
   Force (FATF).
EN                                      22                                                 EN
 ---pagebreak---                                      TITLE VI
                      COOPERATION IN OTHER SECTORS
                                    ARTICLE 35
                             Cooperation in human rights
   1.     The Parties agree to cooperate in the promotion and effective protection of
   human rights, including with regard to the ratification and implementation of
   international human rights instruments.
   2.     Such cooperation may include, inter alia:
   (a) supporting the development and implementation of a national action plan on
   human rights;
   (b)    human rights promotion and education;
   (c)    strengthening of national and regional human rights-related institutions;
   (d)    the establishment of a meaningful, broad-based human rights dialogue;
   (e) strengthening of cooperation within the human rights-related institutions of the
   United Nations.
                                    ARTICLE 36
                           Cooperation on financial services
   1.     The Parties agree to achieve closer common rules and standards, and to
   strengthen cooperation with a view to improving accounting, supervisory and
   regulatory systems of banking, insurance and other parts of the financial sector.
   2.     The Parties shall cooperate to develop legal regulatory framework,
   infrastructure, and human resources as well as to introduce corporate governance and
   international standards on accounting into the capital market of Mongolia within the
   framework of bilateral cooperation in accordance with the GATS and WTO
   Commitment on Mutual Understanding Paper of Financial services.
                                    ARTICLE 37
                              Economic policy dialogue
   1.     The Parties agree to cooperate on promoting the exchange of information on
   their respective economic trends and policies, and the sharing of experience with the
   coordination of economic policies in the context of regional economic cooperation
   and integration.
   2.     The Parties endeavour to deepen the dialogue between their authorities on
   economic matters which, as agreed by the Parties, may include areas such as
   monetary policy, fiscal policy, including business taxation, public finance, and
   macroeconomic stabilisation and external debt.
   3.     The Parties shall cooperate and promote a mutual understanding between both
   sides in the field of economic diversification and industrial development.
EN                                       23                                              EN
 ---pagebreak---                                     ARTICLE 38
                          Good governance in the tax area
   With a view to strengthening and developing economic activities while taking into
   account the need to develop an appropriate regulatory framework, the Parties
   recognise and commit themselves to implement the principles of good governance in
   the tax area as subscribed to by Member States at Union level. To that effect, without
   prejudice to Union and Member States' competences, the Parties will improve
   international cooperation in the tax area, facilitate the collection of legitimate tax
   revenues, and develop measures for the effective implementation of the
   abovementioned principles.
                                    ARTICLE 39
                       Industrial policy and SME cooperation
   The Parties, taking into account their respective economic policies and objectives,
   agree to promote industrial policy cooperation in all fields deemed suitable, with a
   view to improving the competitiveness of small and medium-sized enterprises, inter
   alia through:
   (a) exchanging information and experience on creating framework conditions for
   small and medium-sized enterprises to improve their competitiveness;
   (b) promoting contacts between economic operators, encouraging joint
   investments and establishing joint ventures and information networks notably
   through existing European Union horizontal programmes, stimulating in particular
   transfers of soft and hard technology between partners;
   (c) providing information and stimulating innovation and exchanging good
   practices on access to finance, including for micro- and small enterprises;
   (d) facilitating and supporting the relevant activities established by the private
   sectors of both sides;
   (e) promoting decent work, corporate social responsibility and accountability and
   encouraging responsible business practices, including sustainable consumption and
   production. This cooperation shall also take account of the consumer dimension,
   such as product information and the consumer's role in the market;
   (f) joint research projects in selected industrial areas and cooperation on standards
   and conformity assessment procedures and technical regulations, as mutually agreed;
   (g) assistance through information on modernizing techniques and technologies of
   leather processing waste water cleaning facilities;
   (h) exchanging information and recommending partners and cooperation
   opportunities in the field of trade and investment through mutually accessible
   existing networks;
   (i)    supporting cooperation between both sides' private businesses, especially
   between SMEs;
EN                                        24                                              EN
 ---pagebreak---    (j)   considering to negotiate an additional agreement on information exchanges,
   workshops on intensifying cooperation and other promotional events between SMEs
   of both sides;
   (k) providing information on technical assistance for exporting food and
   agricultural products to the European market within the scope of the preferential
   system of the European Union.
                                    ARTICLE 40
                                       Tourism
   1.    Guided by the World Tourism Organization's Global Code of Ethics for
   Tourism, and by the sustainability principles underpinning the "Local Agenda 21
   process", the Parties shall aim to improve the exchange of information and establish
   best practice in order to ensure the balanced and sustainable development of tourism.
   2.    The Parties agree to develop cooperation on safeguarding and maximising the
   potential of natural and cultural heritage, mitigating the negative impacts of tourism,
   and enhancing the positive contribution of the tourism business to the sustainable
   development of local communities, inter alia by developing eco-tourism, while
   respecting the integrity and interests of local and indigenous communities, and
   improving training in the tourism industry.
                                    ARTICLE 41
                                 Information society
   1.    Recognising that information and communication technologies are key
   elements of modern life and of vital importance to economic and social development,
   the Parties endeavour to exchange views on their respective policies in this field with
   a view to promoting economic development.
   2.    Cooperation in this area shall, inter alia, focus on:
   (a) participation in the comprehensive regional dialogue on the different aspects of
   the information society, in particular electronic communications policies and
   regulation including universal service, licensing and general authorisations,
   protection of privacy and personal data, and the independence and efficiency of the
   regulatory authority;
   (b) interconnection and interoperability of the Parties' and Asian networks and
   services;
   (c) standardisation and dissemination of new information and communications
   technologies;
   (d) promotion of research cooperation between the Parties in the area of
   information and communications technologies;
   (e) cooperation on digital television including exchange of experiences on
   deployment, regulatory aspects and in particular spectrum management and research;
   (f) cooperation on joint research projects in the area of information and
   communications technologies;
EN                                        25                                               EN
 ---pagebreak---    (g) security aspects of information and communications technologies as well as
   fighting cyber crime;
   (h)    conformity assessment of telecommunications, including radio equipment;
   (i)    cooperation on broadband network development;
   (j)    exchange of information on competition policy of information and
   communications technologies.
                                     ARTICLE 42
                                Audiovisual and media
   The Parties will encourage, support and facilitate exchanges, cooperation and
   dialogue between their relevant institutions and agents in the areas of audiovisual and
   media. They agree to establish a regular policy dialogue in these areas.
                                     ARTICLE 43
                       Scientific and technological cooperation
   1.     The Parties agree to cooperate in the field of scientific research and
   technological development (RTD) in areas of mutual interest and benefit.
   2.     The aims of such cooperation shall be to:
   (a) encourage exchanges of information and sharing of know-how on science and
   technology, including on the implementation of policies and programmes;
   (b) promote research partnerships between the Parties' scientific communities,
   research centres, universities and industry;
   (c)    promote training and mobility of researchers;
   (d) encourage the participation of their respective higher education institutions,
   research centres and industry, including small and medium-sized enterprises in their
   respective RTD programmes.
   3.     Cooperation may take the form of joint research projects and exchanges,
   meetings and training of researchers through international training and mobility
   schemes and exchange programmes, providing for the maximum dissemination of
   the results of research, learning and best practices.
   4.     These cooperation activities shall be in accordance with the laws and
   regulations of both parties. They are based on the principles of reciprocity, fair
   treatment and mutual benefit, and ensure an effective protection of intellectual
   property.
   5.     The Parties agree to make all efforts to increase public awareness about
   possibilities offered by their respective programmes for science and technology
   cooperation.
EN                                        26                                               EN
 ---pagebreak---                                      ARTICLE 44
                                        Energy
   1.     The Parties shall endeavour to enhance cooperation in the energy sector with a
   view to:
   (a) enhancing energy security including by diversifying energy supplies and
   developing new, sustainable, innovative and renewable forms of energy, including,
   inter alia, biofuels and biomass, wind and solar energy as well as hydro power
   generation and supporting the development of appropriate policy frameworks to
   create favourable conditions for investment and a level playing field for renewable
   energy and its integration into relevant policy areas;
   (b) achieving rational use of energy with contributions from both supply and
   demand sides by promoting energy efficiency in energy production, transportation,
   distribution and end use;
   (c) promoting the application of internationally recognised standards of nuclear
   safety, security, non proliferation and safeguards;
   (d) fostering the transfer of technology aimed at sustainable energy production and
   use;
   (e) enhancing capacity-building and facilitating investment in the field based on
   transparent, non discriminatory, market-compatible rules;
    2. To these ends, the Parties agree to promote contacts and joint research to
   mutual benefit of the Parties particularly through relevant regional and international
   frameworks. With reference to Article 43 and the conclusions of the World Summit
   on Sustainable Development (WSSD), which took place in Johannesburg in 2002,
   the Parties note the need to address the links between affordable access to energy
   services and sustainable development. These activities can be promoted in
   cooperation with the European Union Energy Initiative, launched at the WSSD.
   3.     Trade in nuclear materials will be conducted in accordance with the provisions
   of the Treaty establishing the European Atomic Energy Community. If necessary,
   trade in nuclear materials shall be subject to the provisions of a specific Agreement
   to be concluded between the European Atomic Energy Community and Mongolia.
EN                                        27                                              EN
 ---pagebreak---                                     ARTICLE 45
                                       Transport
   1.     The Parties agree to cooperate in relevant areas of transport policy with a view
   to improving investment opportunities and the movement of goods and passengers,
   promoting aviation safety and security, combating piracy, protecting the environment
   protection, and increasing the efficiency of their transport systems.
   2.     Cooperation between the Parties in this area shall aim to promote:
   (a) exchanges of information on their respective transport policies and practices,
   especially regarding urban and rural transport, aviation, transport logistics and the
   interconnection and interoperability of multimodal transport networks as well as the
   management of road, railways and airports;
   (b) matters pertaining to satellite navigation with a focus on regulatory, industrial,
   and market development issues of mutual benefit. In this regard, consideration will
   be paid to the European global satellite navigation systems EGNOS and Galileo;
   (c) a dialogue in the field of air transport services with a view to examine the
   development of relations in areas such as aviation safety, security, environment, air
   traffic management, application of competition law and economic regulation of the
   air transport industry, with a view of supporting regulatory approximation and
   removal of obstacles to doing business. Civil aviation cooperation projects of mutual
   interest should be further promoted. On this basis, the Parties will explore the
   possible scope for closer cooperation in the area of civil aviation;
   (d)    reduction of greenhouse gas emissions from the transport sector;
   (e) the implementation of security, safety and environmental standards, notably as
   regards aviation, in line with the relevant international conventions;
   (f) cooperation in the appropriate international fora aiming to ensure better
   enforcement of international regulations and to pursue the objectives laid down in
   this Article.
EN                                        28                                               EN
 ---pagebreak---                                        ARTICLE 46
                                  Education and culture
   1.     The Parties agree to promote education and cultural cooperation that duly
   respects their diversity, in order to increase mutual understanding and the knowledge
   of their respective cultures. To this end the Parties will support and promote the
   activities of their cultural institutes and civil society.
   2.     The Parties endeavour to take appropriate measures to promote cultural
   exchanges and carry out joint initiatives in various cultural spheres including
   cooperation in heritage conservation with respect to cultural diversity.
   3.     The Parties agree to consult and cooperate in relevant international fora, such
   as UNESCO, in order to pursue common objectives and promote cultural diversity as
   well as the protection of cultural heritage. With regard to cultural diversity, the
   Parties also agree to promote the ratification and implementation of the UNESCO
   Convention on the Protection and Promotion of the Diversity of Cultural
   Expressions, adopted on 20 October 2005.
   4.     The Parties shall furthermore place emphasis on measures designed to create
   links between their respective specialist agencies and to encourage exchanges of
   information, know how, students, experts, youth and youth workers and technical
   resources, taking advantage of the facilities offered by European Union programmes
   in Asia in the area of education and culture as well as the experience that both Parties
   have acquired in this area. Both sides also agree to promote the implementation of
   relevant programmes for higher education such as the Erasmus Mundus programme
   with a view to promoting cooperation and modernisation in higher education, and to
   encourage academic mobility.
                                       ARTICLE 47
                  Environment, climate change and natural resources
   1.     The Parties agree on the need to conserve and manage in a sustainable manner
   natural resources and biological diversity as a basis for the development of current
   and future generations.
   2.     The Parties agree that cooperation in this area shall promote the conservation
   and improvement of the environment in pursuit of sustainable development. The
   outcome of the World Summit on Sustainable Development and the implementation
   of relevant multilateral environmental agreements shall be taken into account in all
   activities undertaken by the Parties under this Agreement.
   3.     The Parties agree to cooperate in the area of climate change in order to adapt to
   the negative effects of climate change, to mitigate greenhouse gas emissions and to
   set their economies on sustainable low carbon growth paths. In this context, the
   Parties will explore the use of carbon market mechanisms.
   4.     The Parties agree to cooperate with a view to enhancing the mutual
   effectiveness of trade and environment policies, and the integration of environmental
   considerations into all sectors of cooperation.
EN                                          29                                              EN
 ---pagebreak---    5.    The Parties endeavour to continue and strengthen their cooperation in regional
   programmes on protection of the environment, specifically as regards:
   (a) promoting environmental awareness and enhanced local participation,
   including participation of indigenous and local communities, in environmental
   protection and sustainable development efforts;
   (b) tackling climate change in particular as regards impacts on environment and
   natural resources;
   (c) capacity building for participating in and implementing multilateral
   environment agreements including biodiversity and biosafety and chemical hazards;
   (d) promoting and deploying environmental technologies, products and services,
   including through the use of regulatory and ecologically sound instruments;
   (e) improved forest governance including combating illegal logging and
   associated trade and the promotion of sustainable forest management;
   (f) prevention of illegal transboundary movement of solid and hazardous waste
   and products of living modified organisms;
   (g) improving ambient air quality, environmentally sound management of waste,
   sustainable water resource management and chemicals management, and promoting
   sustainable consumption and production;
   (h)   protection and conservation of soils and sustainable land management;
   (i)   effective management of national parks and the designation and protection of
   areas of biodiversity and fragile ecosystems, with due regard for local and indigenous
   communities living in or near these areas.
   6.    The Parties shall encourage mutual access to their programmes in this field, in
   accordance with the specific terms of such programmes:
   (a) establishment of the monitoring network for water reserve and its
   modernization;
   (b)   introduction of technology for water desalination and re-usage;
   (c)   development of eco-tourism.
                                    ARTICLE 48
               Agriculture, livestock, fisheries and rural development
   The Parties agree to encourage dialogue in agriculture, livestock, fisheries and rural
   development. The Parties will exchange information and develop relationships on:
   (a)   agricultural policy and international food and agricultural outlook in general;
   (b) the possibilities for facilitating trade in plants, animals, livestock and their
   products, in view of the further development of light industries in the rural sector;
   (c)   animal and livestock welfare;
   (d)   rural development policy;
   (e) exchange of experience and cooperation networks between local agents or
   economic operators in particular areas such as research and technology transfer;
EN                                        30                                              EN
 ---pagebreak---    (f) health and quality policy on plant, animal and livestock, in particular Protected
   Geographical Indications;
   (g) cooperation proposals and initiatives submitted to international agricultural
   organizations;
   (h) the development of sustainable and environmentally-friendly agriculture
   including crop production, bio-fuel and the transfer of bio-technology;
   (i)    plant variety protection, seed technology, agricultural biotechnology;
   (j)    the development of databases and information network on agriculture and
   livestock;
   (k)    training on agriculture and veterinary sector.
                                     ARTICLE 49
                                        Health
   1.     The Parties agree to cooperate in the health sector covering the areas of health
   system reform, major communicable diseases and other health threats, non-
   communicable diseases, and international health agreements with a view to
   improving health conditions and raising the level of public health.
   2.     Cooperation shall take place mainly through:
   (a) comprehensive programmes aimed at systemic reform of the health sector,
   including the improvement of health systems, health services, health conditions and
   health information;
   (b) joint activities on epidemiology, including collaboration in the early prevention
   of health threats such as avian and pandemic influenza and other major
   communicable diseases;
   (c) prevention and control of non-communicable diseases through exchange of
   information and good practices, promoting healthy lifestyle, addressing major health
   determinants such as nutrition, addiction to drugs, alcohol, tobacco;
   (d) promoting the implementation of international health agreements, such as the
   Framework Convention on Tobacco Control and the International Health
   Regulations.
                                     ARTICLE 50
                            Employment and social affairs
   1.     The Parties agree to enhance cooperation in the field of employment and social
   affairs, including cooperation on regional and social cohesion, health and safety at
   the workplace, gender equality and decent work, with a view to strengthening the
   social dimension of globalisation.
   2.     The Parties reaffirm the need to support the process of globalisation which is
   beneficial to all and to promote full and productive employment and decent work as
   a key element of sustainable development and poverty reduction, as endorsed by UN
   General Assembly Resolution 60/1 of 24 October 2005 (World Summit Outcome)
   and the Ministerial Declaration of the High Level Segment of the UN Economic and
EN                                         31                                              EN
 ---pagebreak---    Social Council of July 2006 (UN Economic and Social Council E/2006/L.8 of 5 July
   2006). The Parties shall take into account the respective characteristics and diverse
   nature of their economic and social situations.
   3.     The Parties reaffirm their commitments to fully respect and effectively
   implement internationally recognised core labour and social standards, as laid down
   in particular in the 1998 ILO Declaration on Fundamental Rights and Principles at
   Work and in the 2008 ILO Declaration on Social Justice for a Fair Globalisation. The
   implementation of relevant multilateral social and labour agreements shall be taken
   into account in all activities undertaken by the Parties under this Agreement. The
   Parties agree to cooperate and to provide technical assistance as appropriate with a
   view to ratifying and effectively implementing all ILO conventions covered by the
   1998 ILO Declaration and other relevant conventions.
   4.     The forms of cooperation may include, inter alia, specific programs and
   projects, as mutually agreed, as well as dialogue, cooperation and initiatives on
   topics of common interest at bilateral or multilateral level, such as the ILO.
                                      ARTICLE 51
                                         Statistics
   1.     The Parties agree to promote the harmonisation of statistical methods and
   practice including the gathering and dissemination of statistics, thus enabling them to
   use, on a mutually acceptable basis, statistics on trade in goods and services and,
   more generally, on any other area covered by this agreement which lends itself to
   statistical collecting, processing, analyzing and disseminating.
   2.     The Parties agree to promote the establishment of direct contact between the
   relevant authorities with a view to: strengthening friendly cooperation in the field of
   statistics; strengthening capacity building of the statistical bodies by modernising and
   improving the quality of the statistical system; strengthening human resources;
   training in all relevant areas; and supporting the National Statistical Systems
   organised in accordance with internationally established practices, including the
   necessary infrastructures.
   3.     The cooperation shall cover fields of mutual interest with emphasis on
   I.     Economic Statistics:
   a.     National Accounts
   b.     Business statistics and registration
   c.     Statistics of agriculture / farming, animal husbandry, rural development
   d.     Environment and mineral reserve
   e.     Industry
   f.     Foreign trade in goods and services
   g.     Statistics of wholesale and retail trade
   h.     Revision policy
   i.     Food security
   j.     Balance of payments
EN                                          32                                              EN
 ---pagebreak---    II.    Social Statistics:
   a.     Gender statistics
   b.     Migration statistics
   c.     Household survey
   III.   Information technology
   a.     Exchange of experiences on electronic technology and methodology for
   provision of information security, protection, storage and privacy and introduction of
   these experiences
   b.     Exchange of experiences on establishing of online database for consumers
   based on the user friendly website and training in this area
   c.     Support the IT specialists of the National Statistics Office of Mongolia in
   establishing the information database
   d.     Cooperation on engagement with users in educating them about the
   information database
                                     ARTICLE 52
                                      Civil society
   1.     The Parties recognise the role and potential contribution of organised civil
   society, especially academics, in the dialogue and cooperation process under this
   Agreement and agree to promote effective dialogue with organised civil society and
   its effective participation.
   2.     Subject to the legal and administrative provisions of each Party, organised civil
   society may:
   (a) participate in the policy-making process at country level, according to
   democratic principles;
   (b) be informed of and participate in consultations on development and
   cooperation strategies and sectoral policies, particularly in areas concerning it,
   including all stages of the development process;
   (c) receive financial resources, insofar as the internal rules of each Party so allow,
   and capacity building support in critical areas;
   (d) participate in the implementation of cooperation programmes in the areas that
   concern it.
                                     ARTICLE 53
       Cooperation on the modernisation of the state and public administration
   The Parties agree to cooperate with a view to the modernisation of the public
   administration. Cooperation in this area shall focus on:
   (a)    improving organisational efficiency;
   (b)    increasing institutions' effectiveness in service delivery;
   (c)    ensuring transparent management of public resources and accountability;
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 ---pagebreak---    (d)    improving the legal and institutional framework;
   (e) building capacities for policy design and implementation (public service
   delivery, budget composition and execution, anti-corruption);
   (f)    reinforcing the judiciary systems; and
   (g)    reforming the security system.
                                     ARTICLE 54
                Cooperation on the disaster risk management (DRM)
   1.     The Parties agree to increase cooperation on DRM in the continuous
   development and implementation of measures to reduce the risk of communities and
   manage the consequence of natural disasters across all levels of society. Preventive
   actions and a proactive approach in dealing with hazards and risks with reducing
   risks and vulnerabilities to natural disasters, should be given emphasis.
   2.     Cooperation in this area shall focus on the following program elements:
   (a)    disaster risk reduction or prevention and mitigation;
   (b) knowledge management, innovation, research, and education to build a culture
   of safety and resilience at all levels;
   (c)    disaster preparedness;
   (d)    policy, institutional capacity and consensus building for disaster management;
   (e)    disaster response;
   (f)    disaster risks assessment and monitoring.
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 ---pagebreak---                                      TITLE VII
                            MEANS OF COOPERATION
                                    ARTICLE 55
            Resources for cooperation and protection of financial interests
   1.     The Parties agree to make available the appropriate resources, including
   financial means, insofar as their respective resources and regulations allow, in order
   to fulfil the cooperation objectives set out in this Agreement.
   2.     The Parties agree to promote the development and implementation of mutual
   technical and administrative assistance aiming at the effective protection of their
   financial interests in the area of development aid and other funded cooperation
   activities. The Parties shall promptly respond to demands for mutual administrative
   assistance expressed by judiciary and/or investigation authorities of either Party
   aiming at enhancing the fight against fraud and irregularities.
   3.     The Parties shall encourage the European Investment Bank to continue its
   operations in Mongolia, in accordance with its procedures and financing criteria.
   4.     The Parties shall implement financial 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 Mongolia. The Parties shall take
   effective measures to prevent and fight fraud, corruption and any other illegal
   activities, inter alia by means of mutual administrative assistance and mutual legal
   assistance in the fields covered by the present Agreement. Any further agreement or
   financing instrument to be concluded between the Parties shall provide for specific
   financial cooperation clauses covering on-the-spot checks, inspections, controls, and
   anti fraud measures, including, inter alia, those conducted by the European Anti-
   Fraud Office (OLAF).
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 ---pagebreak---                                         TITLE VIII
                          INSTITUTIONAL FRAMEWORK
                                       ARTICLE 56
                                     Joint Committee
   1.     The Parties agree to establish under this Agreement a Joint Committee,
   composed of representatives of both sides at an appropriate high level, whose tasks
   shall be to:
   (a)    ensure the proper functioning and implementation of this Agreement;
   (b)    set priorities in relation to the aims of this Agreement;
   (c)    make recommendations for promoting the objectives of this Agreement.
   2.     The Joint Committee, and the Subcommittee established in Article 28, shall,
   for the purposes of attaining the objectives of this Agreement, have the power to take
   decisions in the cases provided for therein. Decisions shall be drawn up by
   agreement between the Parties, following the completion of the respective internal
   procedures required to establish a position thereon by both Parties. The decisions
   shall be binding on the Parties, which shall take the measures necessary to implement
   them.
   3.     The Joint Committee shall normally meet every year in Ulaanbaatar and
   Brussels alternately, on a date to be fixed by mutual agreement. Extraordinary
   meetings of the Joint Committee may also be convened by agreement between the
   Parties. The Joint Committee shall be chaired alternately by each of the Parties. The
   agenda for meetings of the Joint Committee shall be determined by agreement
   between the Parties.
   4.     The Joint Committee may set up specialised working groups in order to assist
   it in the performance of its tasks. These working groups shall make detailed reports
   on their activities to the Joint Committee at each of its meetings.
   5.     The Parties agree that it shall also be the task of the Joint Committee to ensure
   the proper functioning of any sectoral agreement or protocol concluded or to be
   concluded between the Parties.
   6.     The Joint Committee shall adopt its own rules of procedure.
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 ---pagebreak---                                       TITLE IX
                                FINAL PROVISIONS
                                     ARTICLE 57
                             Future developments clause
   1.     The Parties may by mutual consent expand this Agreement with a view to
   enhancing the level of cooperation, including through supplementing it by means of
   agreements or protocols on specific sectors or activities.
   2.     With regard to the implementation of this Agreement, either of the Parties may
   put forward suggestions for widening the scope of cooperation, taking into account
   the experience gained in its application.
                                     ARTICLE 58
                                  Other agreements
   Without prejudice to the relevant provisions of the Treaty on the European Union
   and the Treaty on the Functioning of the European Union, neither this Agreement nor
   action taken hereunder shall affect the powers of the Member States to undertake
   bilateral cooperation activities with Mongolia or to conclude, where appropriate, new
   partnership and cooperation agreements with Mongolia.
   This Agreement shall not affect the application or implementation of commitments
   undertaken by the respective Parties in relations with third parties.
                                     ARTICLE 59
                              Fulfillment of obligations
   1.     Each Party may refer to the Joint Committee any divergence in the application
   or interpretation of this Agreement.
   2.     If either Party considers that the other Party has failed to fulfil any of its
   obligations under this Agreement it may take appropriate measures.
   3.     Before doing so, except in cases of special urgency, it shall present to the Joint
   Committee all the relevant information required for a thorough examination of the
   situation with a view to seeking a solution acceptable to the Parties.
   4.     In the selection of measures, priority must be given to those which least disturb
   the functioning of this Agreement. These measures shall be notified immediately to
   the other Party and shall be the subject of consultations within the Joint Committee if
   the other Party so requests.
   5.     The Parties agree, for the purposes of the correct interpretation and practical
   application of this Agreement, that the term "cases of special urgency" in paragraph 3
   means a case of the material breach of the Agreement by one of the Parties. A
   material breach of the Agreement consists in:
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 ---pagebreak---    (i)    repudiation of the Agreement not sanctioned by the general rules of
   international law; or
   (ii) violation of essential elements of the Agreement, namely Articles 1(1) and 3
   thereof.
                                    ARTICLE 60
                                       Facilities
   To facilitate cooperation in the framework of this Agreement, both Parties agree to
   grant necessary facilities to officials and experts involved in implementing
   cooperation for the performance of their functions, in accordance with internal rules
   and regulations of both Parties.
                                    ARTICLE 61
                                Territorial application
   This Agreement shall apply to the territory in which the Treaty on the European
   Union and the Treaty on the Functioning of the European Union are applied under
   the conditions laid down in those Treaties, on the one hand, and to the territory of
   Mongolia, on the other.
                                    ARTICLE 62
                               Definition of the Parties
   For the purposes of this Agreement, "the Parties" shall mean the Union or its
   Member States or the Union and its Member States, in accordance with their
   respective powers, on the one hand, and Mongolia, on the other.
                                    ARTICLE 63
                            Entry into force and duration
   1.     This Agreement shall enter into force on the first day of the month following
   the date on which last Party has notified the other of the completion of the legal
   procedures necessary for this purpose.
   2.     This Agreement is valid for a period of five years. It shall be automatically
   extended for further successive periods of one year, unless either Party notifies the
   other Party in writing of its intention not to extend this Agreement six months prior
   to the end of any subsequent one year period.
   3.     Any amendments of this Agreement shall be made by agreement between the
   Parties. Any amendments shall become effective only after the last Party has notified
   the other that all necessary formalities have been completed.
   4.     If a Party introduces a more restrictive trade regime concerning the export of
   raw materials, such as the introduction of new prohibitions, restrictions, duties or
   charges of any kind that do not meet the requirements set out in the relevant
   provisions of Articles VIII, XI, XX or XXI of the GATT 1994, or are not authorised
   under a WTO waiver or are not agreed by the Joint Committee or Subcommittee on
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 ---pagebreak---    Trade and Investment under Article 56, than that in place at the date of initialling of
   the Agreement, the other Party may adopt appropriate measures in accordance with
   Article 59(3) and (4).
   5.     This Agreement may be terminated by one Party by written notice of
   denunciation given to the other Party. The termination shall take effect six months
   after receipt of notification by the other Party.
                                     ARTICLE 64
                                     Notifications
   Notifications made in accordance with Article 63 shall be made to the Secretary-
   General of the Council of the European Union and the Department of Foreign Affairs
   of Mongolia, respectively.
                                     ARTICLE 65
                                     Authentic text
   This Agreement is drawn up in the Bulgarian, Czech, Danish, Dutch, English,
   Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian,
   Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish, Swedish and
   Mongolian languages, each of these texts being equally authentic.
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