CELEX: 51996PC0254
Language: en
Date: 1996-06-05
Title: Proposal for a Council and Commission Decision on the conclusion of the Partnership and Cooperation Agreement between the European Communities and their Member States of the one part, and the Republic of Uzbekistan, of the other part

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          Brussels, 05.06.1996
                                          COM(96) 254 final
                                          96/0151 (AVC)
                               Proposal
              for a Council and Commission Decision
on the conclusion of the Partnership and Cooperation Agreement
 between the European Communities and their Member States
         of the one part, and the Republic of Uzbekistan,
                          of the other part
                    (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                  Explanatory memorandum
1. The attached proposal for a Council and Commission Decision constitutes the legal
   instrument for the conclusion of the Partnership and Cooperation Agreement between the
   European Communities and their Member States, on the one hand, and the Republic of
   Uzbekistan, on the other.
2. Following the Council's adoption of the negotiating directives on 5 October 1992,
   negotiations with the Republic of Uzbekistan were held in the course of 1996. After two
   rounds of negotiations, the Agreement was initialled on 29 April 1996.
3. The Agreement is a mixed agreement covering areas for which both the Communities and
   the Member States are competent, and is concluded for an initial period often years.
   It establishes a political dialogue. The Agreement also covers trade in goods, labour
   conditions, establishment and operation of companies, cross-border supply of services,
   payments and capital, competition, intellectual, industrial and commercial property
   protection, legislative cooperation, economic cooperation, cooperation on human rights
   and democracy, cooperation in combatting illegal activities and illegal immigration, cultural
   cooperation and financial cooperation.
   The Agreement contains a clause which allows it to be suspended, even unilaterally, if it is
   considered that there has been a breach of the essential elements underlying the Agreement
   i.e. respect for democracy, human rights and the principles of the market economy.
   The Agreement sets out an institutional framework for its implementation with a
   Cooperation Council, a Cooperation Committee and a Parliamentary Cooperation
   Committee.
   Mutual assistance in customs matters is covered by a separate protocol.
4. The Agreement will, as far as trade relations between the Community and the Republic of
   Uzbekistan are concerned, replace the Agreement on Trade and Commercial and Economic
   Cooperation between the European Economic Community and the European Atomic
   Energy Community, and the USSR, signed on 18 December 1989.
5. The procedures of the three Communities (EC, EAEC and ECSC) for signing and
   concluding the Agreement differ.
   In the case of the EC, account will have to be taken of Opinion 1/94 delivered by the Court
   of Justice on 15 November 1994 on the competence of the European Community to
   conclude the agreements reached during the Uruguay Round.
 ---pagebreak---    For the purpose of concluding the Agreement:
   the Council will conclude the Agreement, with the assent of the European Parliament and
   having consulted the Economic and Social Committee, on behalf of the European
   Community in accordance with Article 54(2), the closing sentence of Article 57(2) and
   Articles 73c(2), 75, 84(2), 113 and 235 in conjunction with the second sentence of Article
   228(2) and the second subparagraph of Article 228(3) of the EC Treaty by adopting the
   attached decision;
   the Commission will conclude the Agreement on behalf of the European Atomic Energy
   Community after the Council has approved it in accordance with the second paragraph of
   Article 101 of the Euratom Treaty.
   the Commission will conclude the Agreement on behalf of the ECSC in accordance with
   the ECSC Treaty, after consulting the Consultative Committee and with the unanimous
   assent of the Council;
   The conclusion of the Agreement will have to be ratified by all the Member States given the
   mixed nature of the Agreement.
6. In view of the above, the Commission proposes that the Council adopt the annexed
   decision.
 ---pagebreak---                          COUNCIL AND COMMISSION DECISION
                                              OF
            on the conclusion of the Partnership and Cooperation Agreement
              between the European Communities and their Member States
                               and the Republic of Uzbekistan
                                   (../.../ECSC, EC, EURATOM)
THE COUNCIL OF THE EUROPEAN UNION,
THE EUROPEAN COMMISSION,
Having regard to the Treaty establishing the European Coal and Steel Community,
Having regard to the Treaty establishing the European Community, and in particular Article
54(2), the closing sentence of Article 57(2) and Articles 73c(2), 75, 84(2), 113 and 235 in
conjunction with the second sentence of Article 228(2) and the second subparagraph of Article
228(3) thereof,
Having regard to the Treaty establishing the European Atomic Energy Community, and in
particular the second paragraph of Article 101 thereof,
Having regard to the assent of the European Parliament,
Having regard to the approval of the Council given in accordance with Article 101 of the
Treaty establishing the European Atomic Energy Community,
Having consulted the ECSC Consultative Committee and the Economic and Social
Committee, and with the unanimous assent of the Council,
Whereas the conclusion of the Partnership and Cooperation Agreement between the European
Communities and their Member States and Uzbekistan signed in              on          would
contribute to achieving the European Communities' objectives;
Whereas that Agreement seeks to strengthen existing links, notably those established by the
Agreement on Trade and Commercial and Economic Cooperation between the European
Economic Community and the European Atomic Energy Community and the USSR, signed on
18 December 1989;
Whereas some of the obligations provided for in the Agreement in fields other than
Community trade policy affect the arrangements established by Community acts, particularly
acts relating to the right of establishment and to transport;
 ---pagebreak--- Whereas the Agreement imposes on the Community certain obligations relating to the
movement of capital and payments between the Community and Uzbekistan;
Whereas in the case of certain measures provided for in the Agreement and falling within the
Community's powers the EC Treaty provides no basis for action other than Article 235,
HAVE DECIDED AS FOLLOWS :
                                           Article 1
The Partnership and Cooperation Agreement between the European Communities and their
Member States and the Republic of Uzbekistan, together with the Protocol, the declarations
and the exchange of letters, are hereby approved on behalf of the European Community, the
European Coal and Steel Community and the European Atomic Energy Community.
                                           Article 2
1. The position to be adopted by the Community in the Cooperation Council shall be
   determined by the Council, on a proposal from the Commission, or, where appropriate, by
   the Commission, in each case in accordance with the relevant provisions of the Treaties
   establishing the European Community, the European Coal and Steel Community and the
   European Atomic Energy Community.
2. In accordance with Article 80 of the Partnership and Cooperation Agreement, the President
   of the Council shall chair the Cooperation Council and shall present the Community's
   position. A representative of the Commission shall chair the Cooperation Committee in
   accordance with its rules of procedure and shall present the Community's position.
                                           Article 3
The President of the Council shall give the notification provided for in Article 101 of the
Agreement on behalf of the European Community. The President of the Commission shall give
such notification on behalf of the European Coal and Steel Community and the European
Atomic Energy Community.
Done at Brussels,
 ---pagebreak---                                            Final Act
 The plenipotentiaries of:
 THE KINGDOM OF BELGIUM,
 THE KINGDOM OF DENMARK,
 THE FEDERAL REPUBLIC OF GERMANY,
 THE HELLENIC REPUBLIC,
 THE KINGDOM OF SPAIN,
 THE FRENCH REPUBLIC,
 IRELAND,
 THE ITALIAN REPUBLIC,
 THE GRAND DUCHY OF LUXEMBOURG,
 THE KINGDOM OF THE NETHERLANDS,
 THE REPUBLIC OF AUSTRIA,
 THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY, the Treaty
establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the Treaty
establishing the EUROPEAN ATOMIC ENERGY COMMUNITY,
hereinafter referred to as "the Member States", and of
the EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY
and the EUROPEAN COAL AND STEEL COMMUNITY,
hereinafter referred to as "the Community",
of the one part, and
the plenipotentiaries of the REPUBLIC OF UZBEKISTAN,
                                                                                  sU-
 ---pagebreak---  of the other part,
 meeting at     on         in the year one thousand nine hundred and ninety-six for the signature
 of the Partnership and Cooperation Agreement establishing a partnership between the
 European Communities and their Members States, of the one part, and the Republic of
 Uzbekistan, of the other part, hereinafter referred to as "the Partnership and Cooperation
 Agreement", have adopted the following text :
 the Partnership and Cooperation Agreement and the Protocol on mutual assistance in customs
 matters.
 The plenipotentiaries of the Member States and of the Community and the plenipotentiaries of
 the Republic of Uzbekistan have adopted the texts of the Joint Declarations listed below and
 annexed to this Final Act:
Joint Declaration concerning personal data
Joint Declaration concerning Article 5 of the Agreement
Joint Declaration concerning Title HI of the Agreement
Joint Declaration concerning Article 14 of the Agreement
Joint Declaration concerning the notion of "control" in Article 24 (b) and Article 35 of the
Agreement
Joint Declaration concerning Article 34 of the Agreement
Joint Declaration concerning Article 41 of the Agreement
Joint Declaration concerning Article 95 of the Agreement
The plenipotentiaries of the Member States and of the Community and the Plenipotentiaries of
the Republic of Uzbekistan have also taken note of the exchange of letters listed below
annexed to this Final Act:
Establishment of companies
The plenipotentiaries of the Member States and of the Community and the Plenipotentiaries of
the Republic of Uzbekistan have also taken note of the declaration listed below annexed to this
Final Act:
Unilateral Declaration by the French Republic on the Overseas Countries Territories
Done at                   in the year one thousand nine hundred and ninety six.
For the Council and the Commission of the European Communities.
For the Republic of Uzbekistan.
                                                                                                4
 ---pagebreak---                        PARTNERSHIP AND COOPERATION AGREEMENT
  establishing a partnership between the European Communities and their Member States, of the
  one part, and the Republic of Uzbekistan, of the other part,
  THE KINGDOM OF BELGIUM,
  THE KINGDOM OF DENMARK,
  THE FEDERAL REPUBLIC OF GERMANY,
 THE HELLENIC REPUBLIC,
 THE KINGDOM OF SPAIN,
 THE FRENCH REPUBLIC,
 IRELAND,
 THE ITALIAN REPUBLIC,
 THE GRAND DUCHY OF LUXEMBOURG,
 THE KINGDOM OF THE NETHERLANDS,
 THE REPUBLIC OF AUSTRIA,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Parties to the Treaty establishing the European Community, the Treaty establishing the European
Coal and Steel Community, and the Treaty establishing the European Atomic Energy
Community,
hereinafter referred to as "Member States", and
THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY,
AND THE EUROPEAN ATOMIC ENERGY COMMUNITY,
 ---pagebreak---  hereinafter referred to as "the Community",
 of the one part,
 AND THE REPUBLIC OF UZBEKISTAN,
 of the other part,
 CONSIDERING the links between the Community, its Member States and the Republic of
 Uzbekistan and the common values that they share,
RECOGNIZING that the Community and the Republic of Uzbekistan wish to strengthen these
 links and to establish partnership and cooperation which would strengthen and widen the relations
 established in the past in particular by the Agreement between the European Economic
 Community and the European Atomic Energy Community and the Union of Soviet Socialist
Republics on Trade and Commercial and Economic Cooperation, signed on 18 December 1989,
CONSIDERING the commitment of the Community and its Member States and of the Republic
of Uzbekistan to strengthening the political and economic freedoms which constitute the very
basis of the partnership,
RECOGNIZING in that context that support of the independence, sovereignty and territorial
integrity of the Republic of Uzbekistan will contribute to the safeguarding of peace and stability
in Central Asia,
CONSIDERING the commitment of the Parties to promote international peace and security as
well as the peaceful settlement of disputes and to cooperate to this end in the framework of the
United Nations and the Organisation for Security and Cooperation in Europe (OSCE),
CONSIDERING the firm commitment of the Community and its Member States and of the
Republic of Uzbekistan to the full implementation of all principles and provisions contained in
the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the
Concluding Documents of the Madrid and Vienna Follow-Up Meetings, the Document of the
CSCE Bonn Conference on Economic Cooperation, the Charter of Paris for a New Europe and
the CSCE Helsinki Document 1992 "The Challenges of Change", and other fundamental
documents of the OSCE,
CONVINCED of the paramount importance of the rule of law and respect for human rights,
particularly those of persons belonging to minorities, the establishment of a multiparty system
with free and democratic elections and economic liberalization aimed at setting up a market
economy,
BELIEVING that full implementation of this Partnership and Cooperation Agreement will both
depend on and contribute to continuation and accomplishment of the political, economic and legal
reforms in the Republic of Uzbekistan, as well as the introduction of the factors necessary for
cooperation, notably in the light of the conclusions of the CSCE Bonn Conference,
DESIROUS of encouraging the process of regional cooperation in the areas covered by this
agreement with neighbouring countries in order to promote the prosperity and stability of the
region,
                                                                                 2:
 ---pagebreak---   DESIROUS of establishing and developing regular political dialogue on bilateral and international
  issues of mutual interest,
  RECOGNIZING AND SUPPORTING the wish of Uzbekistan to establish close cooperation
  with European institutions,
  CONSIDERING the necessity of promoting investment in the Republic of Uzbekistan, including
 in the energy sector, and in this context the importance attached by the Community and its
 Member States to equitable conditions for access to and transit for export of energy products ;
 confirming the attachment of the Community and its Member States and of the Republic of
 Uzbekistan to the European Energy Charter, and to the full implementation of the Energy Charter
 Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects,
 TAKING ACCOUNT of the Community's willingness to provide for economic cooperation and
 technical assistance as appropriate,
 BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement between
 the Republic of Uzbekistan and a wider area of cooperation in Europe and neighbouring regions
 and its progressive integration into the open international trading system,
 CONSIDERING the commitment of the Parties to liberalize trade, in conformity with World
Trade Organisation (WTO) rules, and convinced that Uzbekistan's accession to the WTO will
allow the further intensification of trade relations between them,
CONSCIOUS of the need to improve conditions affecting business and investment, and
conditions in areas such as establishment of companies, labour, provision of services and capital
movements,
CONVINCED that this Agreement will create a new climate for economic relations between the
Parties and in particular for the development of trade and investment, which are essential to
economic restructuring and technological modernization,
DESIROUS of establishing close cooperation in the area of environment protection taking into
account the interdependence existing between the Parties in this field,
RECOGNIZING that cooperation for the prevention and control of illegal immigration
constitutes one of the primary objectives of this Agreement,
DESIROUS of establishing cultural cooperation and improving the flow of information,
HAVE AGREED AS FOLLOWS:
 ---pagebreak---                                               ARTICLE 1
A Partnership is hereby established between the Community and its Member States of the one
part, and the Republic of Uzbekistan, of the other part. The objectives of this partnership are:
    to support the independence and sovereignty of the Republic of Uzbekistan,
    to support the Republic of Uzbekistan's efforts to consolidate its democracy, to develop its
     economy and to achieve transition to a market economy,
    to provide an appropriate framework for the political dialogue between the Parties allowing
     the development of political relations,
    to promote trade and investment and harmonious economic relations between the Parties and
     so to foster their sustainable economic development,
    to provide a basis for legislative, economic, social, financial, civil, scientific, technological and
     cultural cooperation,
   to assist in the construction of a civil society in Uzbekistan based upon the rule of law.
 ---pagebreak---                                                TITLE I
                                     GENERAL PRINCIPLES
                                             ARTICLE 2 .
 Respect for democracy, principles of international law and human rights as defined in particular in
 the United Nations Charter, the Helsinki Final Act and the Charter of Paris for a New Europe, as
 well as the principles of market economy, including those enunciated in the documents of the
 CSCE Bonn Conference, underpin the internal and external policies of the Parties and constitute
 an essential element of partnership and of this Agreement.
                                            ARTICLE 3
The Parties consider that it is essential for their future prosperity and stability that the newly
independent states which have emerged from the dissolution of the Union of Soviet Socialist
Republics, hereinafter called "Independent States", should maintain and develop cooperation
among themselves in compliance with the principles of the Helsinki Final Act and with
international law and in the spirit of good neighbourly relations, and will make every effort to
encourage this process.
 ---pagebreak---                                                  T I T L E II
                                        POLITICAL DIALOGUE
                                                ARTICLE 4
   A regular political dialogue shall be established between the Parties which they intend to develop
  and intensify. It shall accompany and consolidate the rapprochement between the Community
  and the Republic of Uzbekistan, support the political and economic changes underway in the
  Republic of Uzbekistan and contribute to the establishment of new forms of cooperation. The
  political dialogue:
  -   will strengthen the links of the Republic of Uzbekistan with the Community and its Member
      States, and thus with the community of democratic nations as a whole. The economic
      convergence achieved through this Agreement will lead to more intense political relations;
  -   will bring about an increasing convergence of positions on international issues of mutual
      concern thus increasing security and stability in the region,
  -   shall foresee that the Parties endeavour to cooperate on matters pertaining to the observance
      of the principles of democracy, and the respect, protection and promotion of human rights,
      including those of persons belonging to minorities and shall hold consultations, if necessary,
      on relevant matters.
 Such dialogue may take place on a regional basis.
                                               ARTICLE 5
 At ministerial level, political dialogue shall take place within the Cooperation Council established
 in Article 78 and on other occasions by mutual agreement.
                                              ARTICLE 6
Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in
particular in the following forms:
-    regular meetings at senior official level between representatives of the Community and its
     Member States on the one hand, and representatives of the Republic of Uzbekistan on the
     other hand;
-    taking fiill advantage of diplomatic channels between the parties including appropriate
     contacts in the bilateral as well as the multilateral field such as United Nations, OSCE
     meetings and elsewhere;
-    any other means, including the possibility of expert meetings which would contribute to
     consolidating and developing this dialogue
                                              ARTICLE 7
Political dialogue at parliamentary level shall take place within the framework               of the
Parliamentary Cooperation Committee established in Article 83.
                                                     6                                                / >
 ---pagebreak---                                                   TITLE HI
                                           TRADE IN GOODS
                                                ARTICLE 8
   1. The Parties shall accord to one another most-favoured-nation treatment in all areas in respect
         of:
  -   customs duties and charges applied to imports and exports, including the method of
      collecting
      such duties and charges;
  -   provisions relating to customs clearance, transit, warehouses and transhipment;
 -    taxes and other internal charges of any kind applied directly or indirectly to imported goods;
 -    methods of payment and the transfer of such payments;
 -    the rules relating to the sale, purchase, transport, distribution and use of goods on the
      domestic market.
 2.     The provisions of paragraph 1 shall not apply to:
 (a) advantages granted with the aim of creating a customs union or afree-tradearea or pursuant
        to the creation of such a union or area;
 (b) advantages granted to particular countries in accordance with WTO rules and with other
        international arrangements in favour of developing countries;
 (c) advantages accorded to adjacent countries in order to facilitate frontier traffic.
3.      The provisions of paragraph 1 shall not apply, during a transitional period expiring on the
        date of the Republic of Uzbekistan acceding to the WTO or on 31 December 1998,
        whichever is earlier, to advantages defined in Annex I granted by the Republic of Uzbekistan
        to other states which have emerged from the dissolution of the USSR.
                                               ARTICLE 9
 1.     The Parties agree that the principle of free transit is an essential condition of attaining the
       objectives of this Agreement.
       In this connection each Party shall secure unrestricted transit via or through its territory of
       goods originating in the customs territory or destined for the customs territory of the other
       Party.
2.      The rules described in Article V, paragraphs 2, 3, 4 and 5 of the GATT are applicable
       between the Parties.
3.      The rules contained in this Article are without prejudice to any special rules relating to
       specific sectors, in particular such as transport, or products agreed between the Parties.
 ---pagebreak---                                              ARTICLE 10
  Without prejudice to the rights and obligations stemming from international conventions on the
  temporary admission of goods which bind the Parties, each Party shall furthermore grant the
 other Party exemption from import charges and duties on goods admitted temporarily, in the
 instances and according to the procedures stipulated by any other international convention on this
 matter binding upon it, in conformity with its legislation. Account shall be taken of the conditions
 under which the obligations stemming from such a convention have been accepted by the Party in
 question.
                                             ARTICLE 11
        Goods originating in the Republic of Uzbekistan shall be imported into the Community free
        of quantitative restrictions and measures of equivalent effect, without prejudice to the
        provisions of Articles 13, 16 and 17 of this Agreement.
         Goods originating, in the Community shall be imported into the Republic of Uzbekistan free
       of quantitative restrictions and measures of equivalent effect, without prejudice to the
       provisions of Articles 13, 16 and 17 of this Agreement.
                                             ARTICLE 12
Goods shall be traded between the Parties at market-related prices.
                                             ARTICLE 13
 1.  Where any product is being imported into the territory of one of the Parties in such increased
      quantities or under such conditions as to cause or threaten to cause injury to domestic
      producers of like or direct competitive products, the Community or the Republic of
      Uzbekistan, whichever is concerned, may take appropriate measures in accordance with the
      following procedures and conditions.
2.    Before .taking any measures, or in cases to which paragraph 4 applies as soon as possible
      thereafter, the Community or the Republic of Uzbekistan as the case may be shall supply
      the Cooperation Council with all relevant information with a view to seeking a solution
      acceptable to the Parties as provided for in Title XI.
3.     If, as a result of the consultations, the Parties do not reach agreement within 30 days of
      referral to the Cooperation Council on actions to avoid the situation, the Party which
      requested consultations shall be free to restrict imports of the products concerned to the
      extent and for such time as is necessary to prevent or remedy the injur)', or to adopt other
      appropriate measures.
 ---pagebreak---    4.   In critical circumstances where delay would cause damage difficult to repair, the Parties may
         take the measures before the consultations, on the condition that consultations shall be
         offered immediately after taking such action
   5.   In the selection of measures under this Article, the Parties shall give priority to those which
        cause least disturbance to the achievement of the aims of this Agreement.
   6.    Nothing in this Article shall prejudice or affect in any way the taking, by either Party, of
        anti-dumping or countervailing measures in accordance with Article VI of the GATT, the
        Agreement on implementation of Article VI of the GATT, the Agreement related on
        interpretation and application of Articles VI, XVI and XXIII of the GATT or related
        internal legislation.
                                             ARTICLE 14
  The Parties undertake to consider development of the provisions in this Agreement on trade in
  goods between them, as circumstances allow, including the situation arising from the accession of
  the Republic of Uzbekistan to the WTO. The Cooperation Council may make recommendations
  on such developments to the Parties which could be put into effect, where accepted, by virtue of
  agreement between the Parties in accordance with their respective procedures.
                                             ARTICLE 15
 This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
 transit justified on grounds of public morality, public policy or public security; the protection of
 health and life of humans, animals or plants; the protection of natural resources; the protection of
 national treasures of artistic, historic or archaeological value or the protection of intellectual,
 industrial and commercial property or rules relating to gold and silver. Such prohibitions or
 restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised
 restriction on trade between the Parties.
                                            ARTICLE 16
This Title shall not apply to trade in textile products falling under Chapters 50 to 63 of the
Combined Nomenclature. Trade in these products shall be governed by a separate agreement,
initialled on 4 December 1995 and applied provisionally since 1 January 1996.
~2'
 ---pagebreak---                                          ARTICLE 17
 1.   Trade in products covered by the Treaty establishing the European Coal and Steel
      Community shall be governed by the provisions of this Title, with the exception of
      Article 11.
2.    A contact group on coal and steel matters shall be set up, comprising representatives of the
      Community on the one hand, and representatives of the Republic of Uzbekistan on the
      other.
The contact group shall exchange, on a regular basis, information on all coal and steel matters of
interest to the Parties.
                                        ARTICLE 18
Trade in nuclear materials shall be subject to the provisions of a specific Agreement to be
concluded between the European Atomic Energy Community and the Republic of Uzbekistan.
                                              10                                        est*
 ---pagebreak---                                                 TITLE IV
                   PROVISIONS AFFECTING BUSINESS AND INVESTMENT
                                               CHAPTER I
                                           Labour conditions
                                              ARTICLE 19
   1.        Subject to the laws, conditions and procedures applicable in each Member State, the
             Community and the Member States shall endeavour to ensure that the treatment
             accorded to nationals of the Republic of Uzbekistan, legally employed in the territory of
             a Member State shall be free from any discrimination based on nationality, as regards
             working conditions, remuneration or dismissal, as compared to its own nationals.
  2.         Subject to the laws, conditions and procedures applicable in the Republic of Uzbekistan,
             the Republic of Uzbekistan shall endeavour to ensure that the treatment accorded to
             nationals of a Member State, legally employed in the territory of the Republic of
             Uzbekistan shall be free from any discrimination based on nationality, as regards
             working conditions, remuneration or dismissal, as compared to its own nationals.
                                              ARTICLE 20
  The Cooperation Council shall examine which improvements can be made in working conditions
  for business people consistent with the international commitments of the Parties, including those
  set out in the document of the CSCE Bonn Conference.
                                             ARTICLE 21
  The Cooperation Council shall make recommendations for the implementation of Articles 19 and
  20.
                                                                                  v
- ^                                                ii                               * J?       "
 ---pagebreak---                                               C H A P T E R II
                Conditions affecting the establishment and operation of companies
                                              A R T I C L E 22
  1.   The Community and its Member States shall grant, for the establishment of Uzbek
       companies as defined in Article 24 (d), treatment no less favourable than that accorded to
       any third country companies.
 2.   Without prejudice to the reservations listed in Annex II, the Community and its Member
      States shall grant to subsidiaries of Uzbek companies established in their territories a
      treatment no less favourable than that granted to any Community companies, in respect of
      their operation.
 3.   The Community and its Member States shall grant to branches of Uzbek companies
      established in their territories a treatment no less favourable than that accorded to branches
      of companies of any third country, in respect of their operation.
 4.  Without prejudice to the reservations listed in Annex III, the Republic of Uzbekistan shall
      grant, for the establishment of Community companies as defined in Article 24 (d), treatment
      no less favourable than that accorded to Uzbek companies or to any third country
      companies, whichever is the better.
 5.   The Republic of Uzbekistan shall grant to subsidiaries and branches of Community
      companies established in its territory treatment no less favourable than that accorded to its
      own companies or branches or to any third country company or branch, whichever is the
      better, in respect of their operations.
                                              A R T I C L E 23
 1.  The provisions of Article 22 shall not apply to air transport, inland waterways transport and
     maritime transport.
2.   However, in respect of activities undertaken by shipping agencies for the provision of
     international maritime transport services, including intermodal activities involving a sea leg,
     each Party shall permit the companies of the other Party their commercial presence in its
     territory in the form of subsidiaries or branches, under conditions of establishment and
     operation no less favourable than those accorded to its own companies or to subsidiaries or
     branches of companies of any third country, whichever are the better
Such activities include but are not limited to:
(a)  marketing and sales of maritime transport and related services through direct contact with
     customers, from quotation to invoicing, whether these services are operated or offered by
     the service supplier itself or by service suppliers with which the seivice seller has established
     standing business arrangements;
                                                     12
                                                                                            1
                                                                                              /2 <">' i"y "
 ---pagebreak---    (b)  purchase and use, on their own account or on behalf of their customers (and to resale to
        their customers) of any transport and related services, including inward transport services by
        any mode, particularly inland waterways, road and rail, necessary for the supply of an
        integrated service;
   (c)  preparation of documentation concerning transport documents, customs documents, or
       other documents related to the origin and character of the goods transported;
  (d) provision of business information by any means, including computerized information
       systems and electronic data interchange (subject to any non-discriminatory restrictions
       concerning telecommunications);
  (e)  setting up of any business arrangement, including participation in the company's stock and
       the appointment of personnel recruited locally (or, in the case of foreign personnel, subject
       to the relevant provisions of this Agreement), with any locally established shipping agency;
  (f)  acting on behalf of the companies, organizing the call of the ship or taking over cargoes
       when required.
                                              ARTICLE 24
 For the purpose of this Agreement:
 (a) A "Community company" or an "Uzbek company" respectively shall mean a company set up
 in accordance with the laws of a Member State or of the Republic of Uzbekistan respectively and
 having its registered office or central administration, or principal place of business in the territory
 of the Community or the Republic of Uzbekistan respectively. However, should the company set
 up in accordance with the laws of a Member State or the Republic of Uzbekistan respectively
 have only its registered office in the territory of the Community or the Republic of Uzbekistan
 respectively, the company shall be considered a Community or Uzbek company respectively if its
 operations possess a real and continuous link with the economy of one of the Member States or
 the Republic of Uzbekistan respectively.
 (b) "Subsidiary" of a company shall mean a company which is effectively controlled by the first
 company.
(c) "Branch" of a company shall mean a place of business not having legal personality which has
the appearance of permanency, such as the extension of a parent body, has a management and is
materially equipped to negotiate business with third parties so that the latter, although knowing
that there will if necessary be a legal link with the parent body, the head office of which is abroad,
do not have to deal directly with such parent body but may transact business at the place of
business constituting the extension.
(d) "Establishment" shall mean the right of Community or Uzbek companies as referred to in
point (a) to take up economic activities by means of the setting up of subsidiaries and branches in
the Republic of Uzbekistan or in the Community respectively.
(e) "Operation" shall mean the pursuit of economic activities.
                                                   13
 ---pagebreak---   (t) "Economic activities" shall mean activities of an industrial, commercial and professional
  character.
 (g) With regard to international maritime transport, including intermodal operations involving a
 sea leg, nationals of the Member States or of the Republic of Uzbekistan established outside the
 Community or the Republic of Uzbekistan respectively, and shipping companies established'
 outside the Community or the Republic of Uzbekistan and controlled by nationals of a Member
 State or nationals of the Republic of Uzbekistan respectively, shall also be beneficiaries of the
 provisions of this Chapter and Chapter III if their vessels are registered in that Member State or
 in the Republic of Uzbekistan respectively in accordance with their respective legislation
                                             ARTICLE 25
         Notwithstanding any other provisions of this Agreement, a Party shall not be prevented
        from taking measures for prudential reasons, including for the protection of investors,
        depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service
        supplier, or to ensure the integrity and stability of the financial system. Where such
       measures do not conform with the provisions of this Agreement, they shall not be used as a
       means of avoiding the obligations of a Party under this Agreement.
        Nothing in this Agreement shall be construed as requiring a Party to disclose information
       relating to the atfairs and accounts of individual customers or any confidential or proprietary
       information in the possession of public entities.
      For the purposes of this Agreement, "financial services" shall mean those activities described
       in Annex IV
                                             ARTICLE 26
The provisions of this Agreement shall not prejudice the application by each Party of any measure
necessary to prevent the circumvention of its measures concerning third country access to its
market, through the provisions of this Agreement.
                                             ARTICLE 27
       Notwithstanding the provisions of Chapter I of this Title, a Community company or an
      Uzbek company established in the territory of the Republic of Uzbekistan or the Community
      respectively shall be entitled to employ, or have employed by one of its subsidiaries or
      branches, in accordance with the legislation in force in the host country of establishment, in
      the territory of the Republic of Uzbekistan and the Community respectively, employees who
      are nationals of Community Member States and the Republic of Uzbekistan respectively,
      provided that such employees are key personnel as defined in paragraph 2, and that they are
      employed exclusively by companies, or branches. The residence and work permits of such
      employees shall only cover the period of such employment.
      Kev personnel of the abovementioned companies herein referred to as "organizations" are
      "intra-coiporate transferees" as defined in (c) in the following categories, provided that the
                                                   14
                                                                                    //         /?
                                                                                     ^ >
 ---pagebreak---          organization is a legal person and that the persons concerned have been employed by it or
         have been partners in it (other than majority shareholders), for at least the year immediately
         preceding such movement:
 (a) Persons working in a senior position with an organization, who primarily direct the
         management of the establishment, receiving general supervision or direction principally from
         the board of directors or stockholders of the business or their equivalent, including:
     -     directing the establishment or a department or subdivision of the establishment,
     -     supervising and controlling the work of other supervisory, professional or managerial
           employees,
     -     having the authority personally to hire and fire or recommend hiring, firing or other
           personnel actions;
 (b) Persons working within an organization who possess uncommon knowledge essential to the
        establishment's service, research equipment, techniques or management. The assessment of
        such knowledge may reflect, apart from knowledge specific to the establishment, a high
        level of qualification referring to a type of work or trade requiring specific technical
        knowledge, including membership of an accredited profession;
(c) An "intra-corporate transferee" is defined as a natural person working within an organization
        in the territory of a. Party, and being temporarily transferred in the context of pursuit of
        economic activities in the territory of the other Party; the organization concerned must have
        its principal place of business in the territory of a Party and the transfer be to an
        establishment (branch, subsidiary) of that organization, effectively pursuing like economic
        activities in the territory of the other Party.
                                                ARTICLE 28
1.    The Parties shall use their best endeavours to avoid taking any measures or actions which
       render the conditions for the establishment and operation of each other's companies more
       restrictive than the situation existing on the day preceding the date of signature of the
       Agreement.
2.    The provisions of this Article are without prejudice to those of Article 36: the situations
       covered by Article 36 shall be solely governed by its provisions to the exclusion of any
       other.
3.    Acting in the spirit of partnership and cooperation and in the light of the provisions of
       Article 42, the Government of the Republic of Uzbekistan shall inform the Community of its
       intentions to submit new legislation or adopt new regulations which may render the
       conditions for the establishment or operation in the Republic of Uzbekistan of subsidiaries
       and branches of Community companies more restrictive than the situation existing on the
      day preceding the date of signature of the Agreement. The Community may request the
      Republic of Uzbekistan to communicate the drafts of such legislation or regulations and to
      enter into consultations about those drafts.
                                                      15
 ---pagebreak---                Where new legislation or regulations introduced in the Republic of Uzbekistan would result
                in rendering the conditions for operation of subsidiaries and branches of Community
                companies established in the Republic of Uzbekistan more restrictive than the situation
                existing on the day of signature of this Agreement, such legislation or regulations shall not
                apply during three years following the entry into force of the relevant act to those
                subsidiaries and branches already established in the Republic of Uzbekistan at the time of
               entry into force of the relevant act.
                                                     CHAPTER HI
                              Cross border supply of services between the Community
                                           and the Republic of Uzbekistan
                                                     ARTICLE 29
          1.   The Parties undertake in accordance with the provisions of         this Chapter to take the
               necessary steps to allow progressively the supply of services      by Community or Uzbek
               companies who are established in a Party other than that of       the person for whom the
               services are intended taking into account the development of       the service sectors in the
               Parties.
          2.  The Cooperation Council shall make recommendations for the implementation of
               paragraph 1.
                                                     ARTICLE 30
          The Parties shall cooperate with the aim of developing a market oriented service sector in the
         Republic of Uzbeki stan.
                                                     ARTICLE 31
          1.  The Parties undertake to apply effectively the principle of unrestricted access to the
              international maritime market and traffic on a commercial basis:
        (a) the above provision does not prejudice the rights and obligations arising from
              the United Nations Convention on a Code of Conduct for Liner Conferences, as applicable
              to one or other Party to this Agreement. Non-conference lines will be free to operate in
              competition with a conference as long as they adhere to the principle of fair competition on
              a commercial basis;
        (b) the Parties affirm their commitment to a freely competitive environment as being an essential
              feature of the dry and liquid bulk trade.
                                                          16
; > " " •
 ---pagebreak---    2.   In applying the principles of paragraph 1, the Parties shall:
   (a) not apply, as from the entry into force of this Agreement, any cargo sharing provisions of
         bilateral agreements between any Member States of the Community and the former Soviet
         Union;
  (b) not introduce cargo sharing clauses into future bilateral agreements with third countries,
         other than in those exceptional circumstances where liner shipping companies from one or
        other Party to this Agreement would not otherwise have an effective opportunity to ply for
        trade to and from the third country concerned;
  (c) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and liquid
        bulk trade;
  (d) abolish upon entry into force of this Agreement, all unilateral measures, administrative,
        technical and other obstacles which could have restrictive or discriminatory effects on the
        free supply of services in international maritime transport.
                                              ARTICLE 32
 With a view to assuring a coordinated development of transport between the Parties, adapted to
 their commercial needs, the conditions of mutual market access and provision of services in
 transport by road, rail and inland waterways and, if applicable, in air transport may be dealt with
 by specific agreements where appropriate negotiated between the Parties after entry into force of
 this Agreement.
                                              CHAPTER IV
                                           General Provisions
                                              ARTICLE 33
 1.    The provisions of this Title shall be applied subject to limitations justified on grounds of
       public policy, public security or public health.
2.     They shall not apply to activities which in the territory of the Parties are connected, even
       occasionally, with the exercise of official authority.
                                              ARTICLE 34
For the purpose of this Title, nothing in this Agreement shall prevent the Parties from applying
their laws and regulations regarding entry and stay, work, labour conditions and establishment of
natural persons and supply of services, provided that, in so doing, they do not apply them in a
manner as to nullify or impair the benefits accruing to any Party under the terms of a specific
provision of this Agreement. The above provision does not prejudice the application of Article
                                                    17                     .          A-'    .  .    /
 ---pagebreak---                                               ARTICLE 35
  Companies which are controlled and exclusively owned by Uzbek companies and Community
  companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV.
                                              ARTICLE 36
  Treatment granted by either Party to the other hereunder shall, as from the day one month prior
 to the date of entry into force of the relevant obligations of the General Agreement on Trade in
  Services (GATS), in respect of sectors or measures covered by the GATS, in no case be more
 favourable than that accorded by such first Party under the provisions of GATS and this in
 respect of each service sector, sub-sector and mode of supply.
                                             ARTICLE 37
 For the purposes of Chapters II, III and IV, no account shall be taken of treatment accorded by
 the Community, its Member States or the Republic of Uzbekistan pursuant to commitments
 entered into in economic integration agreements in accordance with the principles of Article V of
 the GATS.
                                             ARTICLE 38
        The most-favoured-nation treatment granted in accordance with the provisions of this Title
        shall not apply to the tax advantages which the Parties are providing or will provide in the
        future on the basis of agreements to avoid double taxation, or other tax arrangements.
       Nothing in this Title shall be construed to prevent the adoption or enforcement by the
       Parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to
       the tax provisions of agreements to avoid double taxation and other tax arrangements, or
       domestic fiscal legislation.
                          •'O"
       Nothing in this Title shall be construed to prevent Member States or the Republic of
       Uzbekistan from distinguishing, in the application of the relevant provisions of their fiscal
       legislation, between tax payers who are not in identical situations, in particular as regards
       their place of residence.
                                             ARTICLE 39
Without prejudice to Article 27, no provision of Chapters II, III and IV shall be interpreted as
giving the right to:
- nationals of the Member States or of the Republic of Uzbekistan respectively to enter, or stay
   in, the territory of the Republic of Uzbekistan or the Community respectively in any capacity
   whatsoever, and in particular as a shareholder or partner in a company or manager or
   employee
   thereof or supplier or recipient of services;
                                                   18
 ---pagebreak--- - Community subsidiaries or branches of Uzbek companies to employ or have employed in the
  territory of the Community nationals of the Republic of Uzbekistan;
- Uzbek subsidiaries or branches of Community companies to employ or have employed in the
  territory of the Republic of Uzbekistan nationals of the Member States;
- Uzbek companies or Community subsidiaries or branches of Uzbek companies to supply
  Uzbek persons to act for and under the control of other persons by temporary employment
  contracts;
- Community companies or Uzbek subsidiaries or branches of Community companies to supply
  workers who are nationals of the Member States by temporary employment contracts.
                                           CHAPTER V
                                  Current payments and capital
                                           A R T I C L E 40
     The Parties undertake to authorize in freely convertible currency, any payments on the
     current account of balance of payments between residents of the Community and of the
     Republic of Uzbekistan connected with the movement of goods, services or persons made in
     accordance with the provisions of this Agreement.
    With regard to transactions on the capital account of balance of payments, from entry into
     force of this Agreement, the free movement of capital relating to direct investments made in
     companies formed in accordance with the laws of the host country and investments made in
     accordance with the provisions of Chapter II, and the liquidation or repatriation of these
     investments and of any profit stemming therefrom shall be ensured.
     Without prejudice to paragraph 2 or to paragraph 5, as from the entry into force of this
     Agreement, no new foreign exchange restrictions on the movement of capital and current
     payments connected therewith between residents of the Community and the Republic of
     Uzbekistan shall be introduced and the existing arrangements shall not become more
    restrictive.
    The Parties shall consult each other with a view to facilitating the movement of forms of
    capital other than those referred to in paragraph 2 between the Community and the Republic
    of Uzbekistan in order to promote the objectives of this Agreement.
    With reference to the provisions of this Article, until a full convertibility of the Uzbek
    currency within the meaning of Article VIII of the Articles of Agreement of the
    International Monetary Fund (IMF) is introduced, the Republic of Uzbekistan may in
    exceptional circumstances apply exchange restrictions connected with the granting or taking
    up of short and medium-term financial credits to the extent that such restrictions are
    imposed on the Republic of Uzbekistan for the granting of such credits and are permitted
    according to the Republic of Uzbekistan's status under the IMF. The Republic of
    Uzbekistan shall apply these restrictions in a non-discriminatory manner. They shall be
    applied in such a manner as to cause the least possible disruption to this Agreement. The
    Republic of Uzbekistan shall inform the Cooperation Council promptly of the introduction
    of such measures and of any changes therein.
                                                 19
 ---pagebreak--- Without prejudice to paragrapiis 1 and 2, where, in exceptional circumstances, movements
 of capital between the Community and the Republic of Uzbekistan cause, or threaten to
 cause, serious difficulties for the operation of exchange rate policy or monetary policy in the
 Community or the Republic of Uzbekistan, the Community and the Republic of Uzbekistan,
 respectively, may take safeguard measures with regard to movements of capital between the
 Community and the Republic of Uzbekistan for a period not exceeding six months if such
 measures are strictly necessary.
                                       CHAPTER VI
             Intellectual, industrial and commercial property protection
                                        ARTICLE 41
Pursuant to the provisions of this Article and of Annex V, the Republic of Uzbekistan shall
continue to improve the protection of intellectual, industrial and commercial property rights
in order to provide, by the end of the fifth year after the entry into force of this Agreement,
for a level of protection similar to that existing in the Community, including effective means
of enforcing such rights.
By the end of the fifth year after entry into force of this Agreement, the Republic of
Uzbekistan shall accede to the multilateral conventions on intellectual, industrial and
commercial property rights referred to in paragraph 1 of Annex V to which Member States
are parties or which are de facto applied by Member States, according" to the relevant
provisions contained in these conventions.
                                             20
 ---pagebreak---                                                  TITLE V
                                   LEGISLATIVE COOPERATION
                                              ARTICLE 42
  1.     The Parties recognize that an important condition for strengthening the economic links
         between the Republic of Uzbekistan and the Community is the approximation of the
         Republic of Uzbekistan's existing and future legislation to that of the Community. The
        Republic of Uzbekistan shall endeavour to ensure that its legislation will be gradually made
         compatible with that of the Community.
 2.     The approximation of laws shall extend to the following areas in particular: customs law,
        company law, laws on banking and other financial services, company accounts and taxes,
        intellectual property, protection of workers at the workplace, rules on competition including
        any related issues and practices affecting trade, public procurement, protection of health and
        life of humans, animals and plants, the environment, consumer protection, indirect taxation,
        technical rules and standards, nuclear laws and regulations, transport, telecommunications.
3.      The Community shall provide the Republic of Uzbekistan with technical assistance for the
        implementation of these measures, which may include i.e.:
-   the exchange of experts;
-   the provision of early information especially on relevant legislation;
-   organization of seminars;
-   training of personnel involved in the drafting and implementation of legislation;
-   aid for translation of Community legislation in the relevant sectors.
4.     The Parties agree to examine ways to apply their respective competition laws on a concerted
       basis in such cases where trade between them is affected.
                                                   21
 ---pagebreak---                                                 TITLE VI
                                     ECONOMIC COOPERATION
                                               ARTICLE 43
   1.    The Community and the Republic of Uzbekistan shall establish economic cooperation aimed
         at contributing to the process of economic reform and recovery and sustainable
         development of the Republic of Uzbekistan. Such cooperation shall strengthen existing
         economic links, to the benefit of the Parties.
  2.     Policies and other measures will be designed to bring about economic and social reforms
         and restructuring of the economic system in the Republic of Uzbekistan and will be guided
         by the requirements of sustainability and harmonious social development; they will also fully
         incorporate environmental considerations.
  3.     To this end the cooperation will concentrate, in particular, on economic and social
         development, human resources development, support for enterprises (including
         privatization, investment and development of financial services), agriculture and food,
        energy and civil nuclear safety, transport, postal services and telecommunications, tourism,
        environmental protection and regional cooperation.
 4.     Special attention shall be devoted to measures capable of fostering regional cooperation.
 5.     Where appropriate, economic cooperation and other forms of cooperation provided for in
        this Agreement may be supported by technical assistance from the Community, taking into
        account the Community's relevant Council regulation applicable to technical assistance in
        the Independent States, the priorities agreed upon in the indicative programme related to
        Community technical assistance to the Republic of Uzbekistan and its established
        coordination and implementation procedures.
                                              ARTICLE 44
                        Cooperation in the field of trade in goods and services
The Parties will cooperate with a view to ensuring that the Republic of Uzbekistan's international
trade is conducted in conformity with the rules of the WTO.
Such cooperation shall include specific issues directly relevant to trade facilitation, in particular
with a view to assisting the Republic of Uzbekistan to harmonise its legislation and regulations
with WTO rules and so to fulfil as soon as possible the conditions of accession to that
Organisation. These include:
-     formulation of policy on trade and trade-related questions, including payments and clearing
    mechanisms,
- drafting of relevant legislation.
                                                    22
 ---pagebreak---                                                 ARTICLE 45
                                            Industrial cooperation
   1.     Cooperation shall aim at promoting the following in particular.
  -   the development of business links between economic operators of both sides;
  -   Community participation in Uzbekistan's efforts to restructure its industry;
  -   the improvement of management;
  -   the improvement of the quality of industrial products;
  -   the development of efficient production and processing capacity in the raw materials sector;
  -   the development of appropriate commercial rules and practices including product marketing;
  -   environmental protection;
  -   defence conversion;
  _    training of management personnel.
  2.      The provisions of this Article shall not affect the enforcement of Community competition
          rules applicable to undertakings.
                                               ARTICLE 46
                                  Investment promotion and protection
  1.     Bearing in mind the respective powers and competences of the Community and the Member
         States, cooperation shall aim to establish a favourable climate for private investment, both
         domestic and foreign, especially through better conditions for investment protection, the
         transfer of capital and the exchange of information on investment opportunities.
 2. The aims of cooperation shall be in particular:
 - the conclusion, where appropriate, between the Member States and the Republic of Uzbekistan
 of agreements for the promotion and protection of investment;
- the conclusion, where appropriate, between the Member States and the Republic of
Uzbekistan of agreements to avoid double taxation;
- the creation of favourable conditions for attracting foreign investments into the Uzbek
economy;
- to establish stable and adequate business law and conditions, and to exchange information on
laws, regulations and administrative practices in the field of investment;
- to exchange information on investment opportunities in the form of, inter alia, trade fairs,
exhibitions, trade weeks and other events.
                                                    23                                (t&^t
 ---pagebreak---                                                   A R T I C L E 47
                                              Public Procurement
   The Parties shall cooperate to develop conditions for open and competitive award of contracts
   for goods and services in particular through calls for tenders.
                                                 A R T I C L E 48
                     Cooperation in the field of standards and conformity assessment
   1.     Cooperation between the Parties shall promote alignment with internationally agreed
          criteria, principles and guidelines followed in the field of quality. The required actions will
         facilitate progress towards mutual recognition in the field of conformity assessment, as well
         as the improvement of Uzbek product quality.
  2.     To this end the Parties shall seek to cooperate in technical assistance projects which will:
  - promote appropriate cooperation with organizations and institutions specialized in these fields;
  - promote the use of Community technical regulations and the application of European standards
     and conformity assessment procedures;
  - permit the sharing of experience and technical information in the field of quality management.
                                                A R T I C L E 49
                                        Mining and raw materials
 1. The Parties shall aim at increasing investment and trade in mining and raw materials.
2. The cooperation shall focus in particular on the following areas:
-   exchange of information on the prospects of the mining and non-ferrous metals sectors;
-   the establishment of a legal framework for cooperation;
-   trade matters;
-   the adoption and implementation of environmental legislation;
-   training;
-   safety in the mining industry.
                                               A R T I C L E 50
                                 Cooperation in science and technology
1.     The Parties shall promote cooperation in civil scientific research and technological
       development (RTD) on the basis of mutual benefit and, taking into account the availability
       of resources, adequate access to their respective programmes and subject to appropriate
       levels of effective protection of intellectual, industrial and commercial property rights (IPR).
                                                     24                                    (a
 ---pagebreak---       2.      Science and technology cooperation shall cover
     - the exchange of scientific and technical information,
     - joint RTD activities;
     - training activities and mobility programmes for scientists, researchers and technicians engaged
          in RTD in both sides.
     Where such cooperation takes the form of activities involving education and/or training, it should
     be carried out in accordance with the provisions of Article 51.
     The Parties, on the basis of mutual agreement, can engage in other forms of cooperation in
     science and technology.
     In carrying out such cooperation activities, special attention shall be devoted to the redeployment
     of scientists, engineers, researchers and technicians which are or have been engaged in research
     on/and production of weapons of mass destruction.
     3.       The cooperation covered by this Article shall be implemented according to specific
             arrangements to be negotiated and concluded in accordance with the procedures adopted by
             each Party, and which shall set out, inter alia, appropriate IPR provisions.
                                                   ARTICLE 51
                                             Education and training
     1.      The Parties shall cooperate with the aim of raising the level of general education and
             professional qualifications in the Republic of Uzbekistan, both in the public and private
             sectors.
    2.      The cooperation shall focus in particular on the following areas:
    - updating higher education and training systems in the Republic of Uzbekistan including the
        system of certification of higher educational establishments and diplomas of higher education;
   - the training of public and private sector executives and civil servants in priority areas to be
        determined;
   - cooperation between educational establishments and between educational establishments and
        firms;
   - mobility for teachers, graduates, administrators, young scientists and researchers, and young
       people;
   - promoting teaching in the field of European Studies within the appropriate institutions;
   - teaching Community languages;
   - post-graduate training of conference interpreters;
   - training of journalists;
   - training of trainers.
   3.       The possible participation of one Party in the respective programmes in the field of
            education and training of the other Party could be considered in accordance with their
            respective procedures and, where appropriate, institutional frameworks and plans of
            cooperation will then be established building on participation of the Republic of Uzbekistan
            in the Community's TEMPUS programme.                                               .-
                                                        25                       •          / X ? /    y
5)
 ---pagebreak---                                               ARTICLE 52
                                Agriculture and the agro-industrial sector
  The purpose of cooperation in this area shall be the pursuance of agrarian reform, the
  modernization, privatization and restructuring of agriculture, the agro-industrial and services
  sectors in the Republic of Uzbekistan, development of domestic and foreign markets for the
  Uzbek products, in conditions that ensure the protection of the environment, taking into account
  the necessity to improve security of food supply as well as the development of agri-business, the
  processing and distribution of agricultural products. The Parties shall also aim at the gradual
  approximation of Uzbek standards to Community technical regulations concerning industrial and
  agricultural food products including sanitary and phytosanitary standards.
                                             ARTICLE 53
                                                 Energy
  1.    Cooperation shall take place within the principles of the market economy and the European
        Energy Charter, against a background of the progressive integration of the energy markets
        in Europe.
 2.     Cooperation shall concentrate, inter alia, upon the formulation and development of energy
        policy. It shall include among others the following areas:
 - improvement in management and regulation of the energy sector in line with a market
     economy;
- improvement of energy supply, including security of supply, in an economic and
    environmentally sound manner;
- promotion of energy saving and energy efficiency and implementation of the Energy Charter
    Protocol on Energy Efficiency and related environmental aspects;
- modernisation of energy infrastructures;
- improvement of energy technologies in supply and end use across the range of energy types;
- management and technical training in the energy sector;
- transportation and transit of energy materials and products.
- the introduction of the range of institutional, legal, fiscal and other conditions necessary to
   encourage increased energy trade and investment;
- development of hydro-electric and other renewable energy resources.
3.     The Parties shall exchange relevant information relating to investment projects in the energy
       sector, in particular concerning the production of energy resources and the construction and
       refurbishing of oil and gas pipelines or other means of transporting energy products. The
       Parties attach particular importance to cooperation regarding investments in the energy
       sector and the manner in which these are regulated. They shall cooperate with a view to
       implementing as efficaciously as possible the provisions of Title IV and of Article 46, in
       respect of investments in the energy sector.
                                                                                           /
                                                  2 6                                       /^K^;/-
                                                                                                 /.•
                                                                                               /
 ---pagebreak---                                                ARTICLE 54
                                     Environment and human health
    1.    Bearing in mind the European Energy Charter, the Declarations of the Lucerne Conference
          of April 1993, and the of the Sofia Conference of October 1995, and taking into account the
          Energy Charter Treaty and especially its Article 19, and the Energy Charter Protocol on
          Energy Efficiency and related environmental aspects, the Parties shall develop and
          strengthen their cooperation on environment and human health.
   2.     Cooperation shall aim at combatting the deterioration of the environment and in particular.
   - effective monitoring of pollution levels and assessment of the environment; system of
      information on the state of the environment;
   - combating local, regional and transboundary air and water pollution;
   - ecological restoration;
   - sustainable, efficient and environmentally effective production and use of energy;
   - safety of industrial plants;
  - classification and safe handling of chemicals;
  - water quality;
  - waste reduction, recycling and safe disposal, implementation of the Basle Convention;
  - the environmental impact of agriculture, soil erosion, and chemical pollution;
  - the protection of forests;
  - the conservation of biodiversity, protected areas and sustainable use and management of
     biological resources;
  - land-use planning, including construction and urban planning;
  - use of economic andfiscalinstruments;
 - global climate change;
 - environmental education and awareness;
 - implementation of the Espoo Convention on Environmental Impact Assessment in a
     transboundary context.
 3.     Cooperation shall take place particularly through:
 - disaster planning and other emergency situations;
- exchange of information and experts, including information and experts dealing with the
    transfer of clean technologies and the safe and environmentally sound use of biotechnologies;
- joint research activities;
- improvement of laws towards Community standards;
- cooperation at regional level, including cooperation within the framework of the European
    Environment Agency, and at international level;
- development of strategies, particularly with regard to global and climatic issues and also in
    view to achieving sustainable development;
- environmental impact studies.
4.     The Parties shall seek to develop their cooperation on questions of human health, in
        particular through technical assistance on the prevention and combatting of infectious
        diseases and the protection of mothers and young children.
                                                   27
 ---pagebreak---                                                ARTICLE 55
                                                 Transport
   The Parties shall develop and strengthen their cooperation in the field of transport.
   This cooperation shall, inter alia, aim at restructuring and modernizing transport systems and
   networks in the Republic of Uzbekistan; developing and ensuring, where appropriate,
   compatibility of transportation systems in the context of achieving a more global transport
   system; and identifying and elaborating priority projects and seeking to attract investment for
   their implementation.
   The cooperation shall include, inter alia:
  - the modernisation of management and operations of road transport, railways, ports, airports
      and urban passenger transport systems;
  - modernization and development of railways, waterways, roads, airports and air navigation
      infrastructure including the modernization of major routes of common interest and the
      trans-European links for the above modes, particularly those related to the TRACECA project;
  - promotion and development of multi-modal transport,
  - the promotion of joint research and development programmes;
  - preparation of the legislative and institutional framework for policy development and
      implementation including privatization of the transport sector.
                                              ARTICLE 56
                                Postal services and telecommunications
 Within their respective powers and competences the Parties shall expand and strengthen
 cooperation in the following areas:
 - the establishment of policies and guidelines for the development of the telecommunications
     sector and postal services;
 - development of principles of a tariff policy and marketing in telecommunications and postal
     services;
 - transferring technology and know-how, particularly regarding European technical standards
    and certification systems;
- encouraging the development of projects for telecommunications and postal services and
    attracting investment;
- enhancing efficiency and quality of the provision of telecommunications and postal services,
    amongst others through liberalization of activities of sub-sectors;
- advanced application of telecommunications, notably in the area of electronic funds transfer;
- management of telecommunications networks and their "optimization";
- an appropriate regulatory basis for the provision of telecommunication and postal services and
    for the use of the radio frequency spectrum;
- training in the field of telecommunications and postal services for operations in market
    conditions.
                                                   28                                /   '      /
 ---pagebreak---                                                 A R T I C L E 57
                                  Financial Services and fiscal institutions
   1.    Cooperation in the field of financial services shall in particular aim at facilitating the
          involvement of the Republic of Uzbekistan in universally accepted systems of mutual
          settlements. Technical assistance shall focus on:
  - the development of a stock market and a securities market,
  - the development of banking services, the development of a common market of credit resources
      and the involvement of the Republic of Uzbekistan in a universally accepted system of mutual
      settlements;
  - the development of insurance services, which would inter alia create a favourable framework
      for Community companies' participation in the establishment ofjoint ventures in the insurance
      sector in the Republic of Uzbekistan, as well as the development of export credit insurance.
  This cooperation shall in particular contribute to foster the development of relations between the
  Parties in the financial services sector.
  2.     The Parties shall cooperate in developing the fiscal system and fiscal institutions in the
         Republic of Uzbekistan. This cooperation shall include the exchange of information and
         experience on fiscal matters and the training of personnel involved in the formulation and
         implementation of fiscal policy.
                                               A R T I C L E 58
                                Enterprise restructuring and privatisation
 Recognizing that privatisation is of fundamental importance to a sustainable economic recovery,
 the Parties agree to cooperate in the development of the necessary institutional, legal and
 methodological framework. Particular attention will be paid to the orderly and transparent nature
 of the privatisation process.
 Technical assistance shall focus on, inter alia :
       the further development of an institutional base within the Government of Uzbekistan to assist
       with defining and managing the privatisation process;
       the further development of the privatisation strategy of the government of Uzbekistan,
       including the legislative framework, and implementation mechanisms;
       furthering market approaches to land use and ownership, and the privatisation of land;
       the restructuring of those enterprises not yet ready for privatisation;
       the development of private enterprise, particularly in the small and medium enterprise sector.
      the development of investment privatisation jiinds systems.
The objective of this cooperation is also to contribute to the promotion of Community investment
in Uzbekistan.
                                                     29
 ---pagebreak---                                                  ARTICLE 59
                                            Regional development
    1.     The Parties shall strengthen cooperation on regional development and land-use planning.
   2.      To this end, the Parties shall encourage the exchange of information by national, regional
           and local authorities on regional and land-use planning policy and on methods of
           formulation of regional policies with special emphasis on the development of disadvantaged
           areas.
           They shall also encourage direct contacts between the respective regions and public
           organizations responsible for regional development planning with the aim, inter alia, to
           exchange methods and ways of fostering regional development.
                                                ARTICLE 60
                                             Social cooperation
   1.     With regard to health and safety, the Parties shall develop cooperation between them with
          the aim of improving inter alia the level of protection of the health and safety of workers.
         The cooperation shall include notably:
 - education and training on health and safety issues with specific attention to high risk sectors of
      activity;
 - development and promotion of preventive measures to combat work related diseases and other
      work related ailments;
 - prevention of major accident hazards and the management of toxic chemicals;
 - research to develop the knowledge base in relation to working environment and the health and
      safety of workers.
 2.      With regard to employment, the cooperation shall include notably technical assistance to:
 -   optimization of the labour market;
-    modernization of the job-finding and consulting services;
-    planning and management of the restructuring programmes;
-    encouragement of local employment development;
-    exchange of information on the programmes of flexible employment, including those
     stimulating self-employment and promoting entrepreneurship.
3.       The Parties shall pay special attention to cooperation in the sphere of social protection
         which, inter alia, shall include cooperation in planning and implementing social protection
         reforms in the Republic of Uzbekistan.
These reforms shall aim to develop in the Republic of Uzbekistan methods of protection intrinsic
to market economies and shall comprise all directions of social protection.
                                                     30                              •   />,    „,
 ---pagebreak---                                                ARTICLE 61
                                                 Tourism
  The Parties shall increase and develop cooperation between them, which shall include:
  -  facilitating the tourist trade;
  -  increasing the flow of information;
  -  transferring know-how;
  -  studying the opportunities for joint operations;
  -  cooperation between official tourism bodies, including the preparation of promotional material;
  -  training for tourism development.
                                               ARTICLE 62
                                   Small and medium-sized enterprises
  1. The Parties shall aim to develop and strengthen small and medium-sized enterprises and their
        associations and cooperation between SMEs in the Community and the Republic of
        Uzbekistan.
 2.     Cooperation shall include technical assistance, in particular in the following areas:
 - the development of a legislative framework for SMEs;
 - the development of an appropriate infrastructure to support SMEs; to promote communication
    between SMEs both within Uzbekistan and further afield; and to train SMEs in the skills
    necessary to access funding;
 - training in the areas of marketing, accounting and control of the quality of products.
                                              ARTICLE 63
                                     Information and communication
The Parties shall support the development of modern methods of information handling, including
the media, and stimulate the effective mutual exchange of information. Priority shall be given to
programmes aimed at providing the general public with basic information about the Community
and the Republic of Uzbekistan, including, where possible, access to databases, in full respect of
intellectual property rights.
 >      2* ""                                      31
 ---pagebreak---                                              ARTICLE 64
                                         Consumer Protection
  The Parties will enter into close cooperation aimed at achieving compatibility between their
  systems of consumer protection. This cooperation may include the exchange of information on
  legislative work and institutional reform, the establishment of permanent systems of mutual
  information on dangerous products, the improvement of information provided to consumers
  especially on prices, characteristics of products and services offered, the development of
 exchanges between the consumer interest representatives, and increasing the compatibility of
 consumer protection policies, and the organization of seminars and training periods.
                                            ARTICLE 65
                                               Customs
 1.     The aim of cooperation shall be to guarantee compliance with all the provisions scheduled
        for adoption in connection with trade and fair trade and to achieve the approximation of the
        Republic of Uzbekistan's customs system to that of the Community.
 2.    Cooperation shall include the following in particular:
-   the exchange of information;
-   the improvement of working methods;
-   the introduction of the Combined Nomenclature and the single administrative document;
-   interconnection between the transit systems of the Community and of the
    Republic of Uzbekistan;
- the simplification of inspections and formalities in respect of the carriage of goods;
- support for the introduction of modern customs information systems;
- the organization of seminars and training periods.
Technical assistance shall be provided where necessary.
3.     Without prejudice to further cooperation foreseen in this Agreement and in particular Title
       VIII, mutual assistance in customs matters between administrative authorities of the Parties
       shall take place in accordance with the provisions of the Protocol attached to this
       Agreement.
                                                 32
 ---pagebreak---                                               ARTICLE 66
                                         Statistical cooperation
  Cooperation in this area shall have as its aim the development of an efficient statistical system to
  provide the reliable statistics needed to support and monitor the process of economic reform and
  contribute to the development of private enterprise in the Republic of Uzbekistan.
  The Parties, in particular, shall cooperate in the following fields:
 - adaptation of the Uzbek statistical system to international methods, standards and
    classification;
 - exchange of statistical information;
 - provision of necessary statistical macro and microeconomic information to implement and
    manage economic reforms.
 The Community shall contribute to this end by rendering technical assistance to the Republic of
 Uzbekistan.
                                             ARTICLE 67
                                               Economics
 The Parties shall facilitate the process of economic reform and the coordination of economic
 policies by cooperating to improve understanding of the fundamentals of their respective
economies and the design and implementation of economic policy in market economies. To this
end, the Parties shall exchange information on macroeconomic performance and prospects.
The Community shall provide technical assistance so as to:
- assist the Republic of Uzbekistan in the process of economic reform by providing expert
   advisory and technical assistance;
- encourage cooperation among economists in order to expedite the transfer of know-how for
   the drafting of economic policies, and provide for wide dissemination of policy-relevant
   research;
- improve Uzbekistan's capacity to formulate economic models.
                                                   33
 ---pagebreak---                                                TITLE VII
               COOPERATION ON MATTERS RELATING TO DEMOCRACY
                                        AND HUMAN RIGHTS
                                              ARTICLE 68
The Parties shall cooperate on all questions relevant to the establishment or reinforcement of
democratic institutions, including those required in order to strengthen the rule of law, and the
protection of human rights and fundamental freedoms according to international law and OSCE
principles.
This cooperation shall take the form of technical assistance programmes intended to assist, inter
alia, in the drafting of relevant legislation and regulations; the implementation of such legislation;
the functioning of the judiciary; the role of the State in questions of justice; and the operation of
the electoral system. They may include training where appropriate. The Parties shall encourage
contacts and exchanges between their national, regional and judicial authorities, parliamentarians,
and non-governmental organisations.
                                                  34                                       /
 ---pagebreak---                                                  TITLE VIII
           COOPERATION ON PREVENTION OF ILLEGAL ACTIVITIES AND THE
                  PREVENTION AND CONTROL OF ILLEGAL IMMIGRATION
                                                ARTICLE 69
  The Parties shall establish cooperation aimed at preventing illegal activities such as:
       illegal activities in the sphere of economics, including corruption;
       illegal transactions of various goods, including industrial waste, and arms;
      counterfeiting;
  Cooperation in the abovementioned areas will be based on mutual consultation and close
  interaction. Technical and administrative assistance will be provided, including in the following
  areas:
      drafting of national legislation in the sphere of preventing illegal activities;
      creation of information centres;
      increasing the efficiency of institutions engaged in preventing illegal activities;
      training of personnel and development of research infrastructures;
      elaboration of mutually acceptable measures impeding illegal activities.
                                               ARTICLE 70
                                             Money laundering
  1.    The Parties agree on the necessity of making efforts and cooperating in order to prevent the
        use of theirfinancialsystems for laundering of proceeds from criminal activities in general
        and drug offences in particular.
 2.     Cooperation in this area shall include administrative and technical assistance with the
        purpose of establishing suitable standards against money laundering equivalent to those
        adopted by the Community and international fora in this field, including the Financial Action
        Task Force (FATF).
                                               ARTICLE 71
                                                   Drugs
 Within the framework of their respective powers and competences the Parties shall cooperate in
 increasing the effectiveness and efficiency of policies and measures to counter the illicit
 production, supply and traffic in narcotic drugs and psychotropic substances, including the
 prevention of diversion of precursor chemicals, as well as in promoting drug demand prevention
and reduction. Cooperation in this area shall be based on mutual consultation and close
coordination between the Parties on objectives and measures to be taken in the various drug-
related fields.
                                                                                          /I >
>•   ~>                                             35                                         //
 ---pagebreak---                                             ARTICLE 72
                                        Illegal Immigration
 1   The Member States and the Republic of Uzbekistan agree to cooperate in order to prevent
     and control illegal immigration. To this end:
 - The Republic of Uzbekistan agrees to readmit any of its nationals illegally present on the
   territory of a Member State, upon request by the latter and without further formalities; and
   each Member State agrees to readmit any of its nationals, as defined for community
   purposes, illegally present on the territory of the Republic of Uzbekistan, upon request by
   the latter and without further formalities.
   The Member States and the Republic of Uzbekistan will also provide their nationals with
   appropriate identity documents for such purposes.
2.  The Republic of Uzbekistan, agrees to conclude bilateral agreements with Member States
    which so request, regulating specific obligations for readmission including an obligation for
    the readmission of nationals of other countries and stateless persons who have arrived on
    the territory of any such Member State from the Republic of Uzbekistan or who have
    arrived on the territory of the Republic of Uzbekistan from any such Member State.
3. The Cooperation Council shall examine what other joint efforts can be made to prevent and
    control illegal immigration.
                                                36
 ---pagebreak---                                           T I T L E IX
                               CULTURAL COOPERATION
                                         ARTICLE 73
The Parties undertake to promote, encourage and facilitate cultural cooperation. Where
appropriate, the Community's cultural cooperation programmes or those of one or more Member
States may be the subject of cooperation and further activities of mutual interest may be
developed.
                                              37
 ---pagebreak---                                               TITLE X
                                  FINANCIAL COOPERATION
                                             ARTICLE 74
  In order to achieve the objectives of this Agreement and in accordance with Articles 75, 76 and
  77 the Republic of Uzbekistan shall benefit from temporary financial assistance from the
  Community by way of technical assistance in the form of grants to accelerate the economic
  transformation of the Republic of Uzbekistan.
                                            ARTICLE 75
 This financial assistance shall be covered within the framework of Tacis as foreseen in the
 Community's relevant Council Regulation.
                                            ARTICLE 76
 The objectives and the areas of the Community's financial assistance shall be laid down in an
 indicative programme reflecting established priorities to be agreed between the
two Parties taking into account the Republic of Uzbekistan's needs, sectoral absorption capacities
and progress with reform. The Parties shall inform the Cooperation Council thereof.
                                            ARTICLE 77
In order to permit optimum use of the resources available, the Parties shall ensure that
Community technical assistance contributions are made in close coordination with those from
other sources such as the Member States, other countries, and international organizations such as
the International Bank for Reconstruction and Development and the European Bank for
Reconstruction and Development.
                                                38
 ---pagebreak---                                                TITLE XI
                   INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
                                             ARTICLE 78
 A Cooperation Council is hereby established which shall supervise the implementation of this
 Agreement. It shall meet at ministerial level once a year. It shall examine any major issues
 arising within theframeworkof this Agreement and any other bilateral or international issues of
 mutual interest for the purpose of attaining the objectives of this Agreement. The Cooperation
 Council may also make appropriate recommendations, by agreement between the Parties.
                                             ARTICLE 79
  1.  The Cooperation Council shall consist of the members of the Council of the European Union
       and members of the Commission of the European Communities, on the one hand, and of
       members of the Government of the Republic of Uzbekistan, on the other.
 2.   The Cooperation Council shall establish its rules of procedure.
 3.    The office of President of the Cooperation Council shall be held alternately by a
       representative of the Community and by a member of the Government of the Republic of
       Uzbekistan.
                                             ARTICLE 80
 1.   The Cooperation Council shall be assisted in the performance of its duties by a Cooperation
      Committee composed of representatives of the members of the Council of the European
      Union and of members of the Commission of the European Communities on the one hand
      and of representatives of the Government of the Republic of Uzbekistan on the other,
      normally at senior civil servant level. The office of President of the Cooperation Committee
      shall be held alternately by the Community and by the Republic of Uzbekistan.
      In its rules of procedure the Cooperation Council shall determine the duties of the
      Cooperation Committee, which shall include the preparation of meetings of the Cooperation
      Council, and how the Committee shall function.
2.    The Cooperation Council may delegate any of its powers to the Cooperation Committee,
      which will ensure continuity between meetings of the Cooperation Council.
                                                                                       ( ^—7/S
                                                 39
 ---pagebreak---                                                 ARTICLE 81
   The Cooperation Council may decide to set up any other special committee or body that can
   assist it in carrying out its duties and shall determine the composition and duties of such
   committees or bodies and how they shall function.
                                               ARTICLE 82
  When examining any issue arising within the framework of this Agreement in relation to a
  provision referring to an Article of the GATT/WTO, the Cooperation Council shall take into
  account to the greatest extent possible the interpretation that is generally given to the Article of
  the GATT/WTO in question by the Members of the WTO.
                                               ARTICLE 83
 A Parliamentary Cooperation Committee is hereby established. It shall be a forum for Members
 of the Uzbek Parliament and the European Parliament to meet and exchange views. It shall meet
 at intervals which it shall itself determine.
                                               ARTICLE 84
 1.     The Parliamentary Cooperation Committee shall consist of members of the European
        Parliament, on the one hand, and of members of the Uzbek Parliament, on the other.
 2.     The Parliamentary Cooperation Committee shall establish its rules of procedure.
 3.     The Parliamentary Cooperation Committee shall be presided in turn by the European
        Parliament and the Uzbek Parliament respectively, in accordance with the provisions to be
        laid down in its rules of procedure.
                                              ARTICLE 85
The Parliamentary Cooperation Committee may request relevant information regarding the
implementation of this Agreement from the Cooperation Council, which shall then supply the
Committee with the requested information.
The Parliamentary Cooperation Committee shall be informed of the recommendations of the
Cooperation Council.
The Parliamentary Cooperation Committee may make recommendations to the Cooperation
Council.
                                                  40
 ---pagebreak---                                                  A R T I C L E 86
   1.     Within the scope of this Agreement, each Party undertakes to ensure that natural and legal
          persons of the other Party have access free of discrimination in relation to its own nationals
          to the competent courts and administrative organs of the Parties to defend their individual
          rights and their property rights, including those concerning intellectual, industrial and
          commercial property.
   2.     Within the limits of their respective powers and competences, the Parties:
  - shall encourage the adoption of arbitration for the settlement of disputes arising out of
      commercial and cooperation transactions concluded by economic operators of the Community
      and those of the Republic of Uzbekistan;
  - agree that where a dispute is submitted to arbitration, each party to the dispute may, except
      where the rules of the arbitration centre chosen by the parties provide otherwise, choose its
      own arbitrator, irrespective of his nationality, and that the presiding third arbitrator or the sole
      arbitrator may be a citizen of a third State;
  - will recommend their economic operators to choose by mutual consent the law applicable to
      their contracts;
  - shall encourage recourse to the arbitration rules elaborated by the United Nations Commission
      on International Trade Law (Uncitral) and to arbitration by any centre of a State signatory to
     the Convention on Recognition and Enforcement of Foreign Arbitral Awards done at New
      York on 10 June 1958.
                                                A R T I C L E 87
 Nothing in this Agreement shall prevent a Party from taking any measures:
 (a)    which it considers necessary to prevent the disclosure of information contrary to its essential
         security interests;
 (b)      which relate to the production of, or trade in arms, munitions or war materials or to
        research, development or production indispensable for defence purposes, provided that such
        measures do not impair the conditions of competition in respect of products not intended for
        specifically military purposes;
(c)     which it considers essential to its own security in the event of serious internal disturbances
        affecting the maintenance of law and order, in time of war or serious international tension
        constituting threat of war or in order to carry out obligations it has accepted for the purpose
        of maintaining peace and international security;
(d)     which it considers necessary to respect its international obligations and commitments in the
        control of dual use industrial goods and technology.
                                                                                                            /
                                                                                                         /V
                                                     41                                      '  ^ > / '
                                                                                                 /
 ---pagebreak---                                                 ARTICLE 88
   1.       In the fields covered by this Agreement and without prejudice to any special provisions
          contained therein.
  - the arrangements applied by the Republic of Uzbekistan in respect of the Community shall not
      give rise to any discrimination between the Member States, their nationals or their companies
      or firms;
  - the arrangements applied by the Community in respect of the Republic of Uzbekistan shall not
      give rise to any discrimination between Uzbek nationals, or its companies or firms.
 2.      The provisions of paragraph 1 are without prejudice to the right of the Parties to apply the
         relevant provisions of their fiscal legislation to tax payers who are not in identical situations
         as regards their place of residence.
                                                ARTICLE 89
 1.      Each of the Parties may refer to the Cooperation Council any dispute relating to the
         application or interpretation of this Agreement.
 2.     The Cooperation Council may settle the dispute by means of a recommendation.
 3.     In the event of it not being possible to settle the dispute in accordance with paragraph 2 of
        this Article, either Party may notify the other of the appointment of a conciliator; the other
        Party must then appoint a second conciliator within two months. For the application of this
        procedure, the Community and the Member States shall be deemed to be one Party to the
        dispute.
 The Cooperation Council shall appoint a third conciliator.
The conciliators' recommendations shall be taken by majority vote. Such recommendations shall
not be binding upon the Parties.
                                               ARTICLE 90
The Parties agree to consult promptly through appropriate channels at the request of either Party
to discuss any matter concerning the interpretation or implementation of this Agreement and
other relevant aspects of the relations between the Parties.
The provisions of this Article shall in no way affect and are without prejudice to Articles 13, 89
and 95.
                                                      42
 ---pagebreak---                                              ARTICLE 91
  Treatment granted to the Republic of Uzbekistan hereunder shall in no case be more favourable
  than that granted by the Member States to each other.
                                             ARTICLE 92
  For the purposes of this Agreement, the term "Parties" shall mean the Republic of Uzbekistan on
  the one part, and the Community, or the Member States, or the Community and the Member
  States, in accordance with their respective powers, on the other part.
                                             ARTICLE 93
 Insofar as matters covered by this Agreement are covered by the Energy Charter Treaty and
 Protocols thereto, such Treaty and Protocols shall upon entry into force apply to such matters but
 only to the extent that such application is provided for therein.
                                             ARTICLE 94
 This Agreement is concluded for an initial period of ten years after which time the Agreement
 shall be automatically renewed year by year provided that neither Party gives the other Party
 written notice of denunciation of this Agreement six months before it expires.
                                            ARTICLE 95
 1.   The Parties shall take any general or specific measures required to fulfil their obligations
       under this Agreement. They shall see to it that the objectives set out in this Agreement are
       attained.
2.    If either Party considers that the other Party has failed to fulfil an obligation under this
      Agreement, it may take appropriate measures. Before so doing, except in cases of special
      urgency, it shall supply the Cooperation Council with all relevant information required for a
      thorough examination of the situation with a view to seeking a solution acceptable to the
      Parties.
In the selection of these measures, priority must be given to those which least disturb the
functioning of this Agreement. These measures shall be notified immediately to the Cooperation
Council if the other Party so requests.
                                            ARTICLE 96
Annexes I, II, III, IV and V together with the Protocol shall form an integral part of this
Agreement.
                                                 43
 ---pagebreak---                                              ARTICLE 97
 This Agreement shall not, until equivalent rights for individuals and economic operators have
 been achieved hereunder, affect rights assured to them through existing Agreements binding one
 or more Member States, on the one hand, and the Republic of Uzbekistan, on the other, except in
 areas falling within Community competence and without prejudice to the obligations of Member
 States resulting from this Agreement in areas falling within their competence.
                                            ARTICLE 98
 This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing
 the European Community, the European Coal and Steel Community and the European Atomic
 Energy Community are applied and under the conditions laid down in those Treaties and, on the
 other hand, to the territory of the Republic of Uzbekistan.
                                            ARTICLE 99
The Secretary-General of the Council of the European Union shall be the depositary of this
Agreement.
                                           ARTICLE 100
The original of this Agreement, of which the Danish, Dutch, English, Finnish, French, German,
Greek, Italian, Portuguese, Spanish, Swedish and Uzbek languages are equally authentic, shall be
deposited with the Secretary-General of the Council of the European Union.
                                           ARTICLE 101
This Agreement will be approved by the Parties in accordance with their own procedures.
This Agreement shall enter into force on the first day of the second month following the date on
which the Parties notify the Secretary-General of the Council of the European Union that the
procedures referred to in the first paragraph have been completed.
Upon its entry into force, and as far as relations between the Republic of Uzbekistan and the
Community are concerned, this Agreement shall replace the Agreement between the European
Economic Community, the European Atomic Energy Community and the Union of Soviet
Socialist Republics on trade and economic and commercial cooperation signed in Brussels on 18
December 1989
                                                 44
 ---pagebreak---                                            ARTICLE 102
In the event that, pending the completion of the procedures necessary for the entry into force of
this Agreement, the provisions of certain parts of this Agreement are put into effect in 1996 by
means of an Interim Agreement between the Community and the Republic of Uzbekistan, the
Parties agree that, in such circumstances, the term "date of entry into force of this Agreement"
shall mean the date of entry into force of the Interim Agreement.
                                                45
 ---pagebreak---                                     LIST OF DOCUMENTS ATTACHED
  Annex I       Indicative list of advantages granted by the Republic of Uzbekistan to the
                Independent States in accordance with Article 8(3)
  Annex II       Community reservations in accordance with Article 22(2).
  Annex III    Uzbekistan reservations in accordance with Article 22(4)
  Annex IV     Financial services, referred to in Article 25(3).
  Annex V      Intellectual, industrial and commercial property conventions referred to in Article
               41.
  Protocol on mutual assistance between administrative authorities in customs matters.
v   ^                                            46
 ---pagebreak---                                                                                                     ANNEX I
            INDICATIVE LIST OF ADVANTAGES GRANTED BY THE REPUBLIC OF UZBEKISTAN TO
                      THE INDEPENDENT STATES IN ACCORDANCE WITH ARTICLE 8(3)
  Advantages are accorded to those Independent States which are parry to the agreement on establishing a
  free trade zone and with which free trade agreements with Uzbekistan have been signed.
  In respect of Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation, Turkmenistan
  and Ukraine:
  1.     Import/export taxation
 No import duties are levied.
 No export duties levied regarding goods supplied in accordance with intergovernmental or credit
 agreements, within quantitative limits set by the Government of Uzbekistan in the light of national
 requirements.
 No VAT or excise duties are applied to trade which takes place within the context of cooperation
 agreements.
 2.     Allocation of quotas and licensing procedures
 Export quotas for deliveries of Uzbek products under annual bilateral interstate trade and cooperation
 agreements are opened in the same way as for "deliveries for state needs".
 3.     Conditions of transportation and transit
 As regards Parties to the Multilateral Agreement "on the principles and conditions of relations in the field
 of transport" and/or on the basis of bilateral arrangements on transportation and transit, no taxes or fees
 are applied on a reciprocal basis for the transportation and customs clearing of goods (including goods in
transit) and transit of vehicles.
4.      Communication services including postal, courier, telecommunication, audio-visual and other types
        of communication services.
5.     Access to information svstcms and databases
In respect of the Russian Federation. Ukraine, Belarus, Kazakhstan:         Payments may be made in the
national currencies of these countries.
In respect of Kazakhstan. Kyrgyzstan:
Simplified system of customs procedure.
                                                      47                              . /
 ---pagebreak---                                                                                        ANNEX II
                  C O M M U N I T Y RESERVATIONS IN A C C O R D A N C E WITH A R T I C L E  22(2)
   Mining
   In some Member States, a concession may be required for mining and mineral rights for
   non-Community controlled companies. s
  Fishing
  Access to and use of the biological resources and fishing grounds situated in the maritime waters
  coming under the sovereignty or within the jurisdiction of Member States of the Community is
  restricted to fishing vessels flying the flag of a Community Member State and registered in
  Community territory unless otherwise provided for.
  Real estate purchase
  In some Member States, the purchase of real estate by non-Community companies is subject to
  restrictions.
 Audio-visual services including radio
 National treatment concerning production and distribution, including broadcasting and other
 forms of transmission to the public, may be reserved to audiovisual works meeting certain origin
 criteria.
 Telecommunications services including mobile and satellite services
 Reserved services
 In some Member States market access concerning complementary services and infrastructures is
 restricted.
Professional services
Services reserved to natural persons who are nationals of Member States. Under certain
conditions those persons may create companies.
Agriculture
In some Member States national treatment is not applicable to non-Community controlled
companies which wish to undertake an agricultural enterprise. The acquisition of vineyards by
non-Community controlled companies is subject to notification, or, as necessary, authorization.
News agency services
In some Member States limitations of foreign participation in publishing companies and
broadcasting companies.
                                                     4
                                                       «                          , ^,-
                                                                                 v-        //
 ---pagebreak---                                                                                ANNEX III
       UZBEKISTAN RESERVATIONS IN ACCORDANCE WITH ARTICLE 22(4)
    Under current Uzbekistan investment law, foreign companies wishing to establish in
Uzbekistan are required to register at the Ministiy of Justice and to provide documentation
demonstrating that they have been duly registered in their home country and are financially
solvent.
    This registration procedure may not be used in order to nullity the benefits accorded to
Community companies pursuant to Article 22 of this Agreement, nor to circumvent any other
provisions of this Agreement.
                                                                                 /
                                              49                             ; / ,y r
                                                                                      / -
 ---pagebreak---                                                                                      ANNEX IV
                          FINANCIAL SERVICES R E F E R R E D T O IN A R T I C L E 25(3)
A financial service is any service of a financial nature offered by a financial service provider of a
Party. Financial services include the following activities:
A financial service is any service of a financial nature offered by a financial service provider of a
party. Financial services include the following activities:
A. All insurance and insurance-related services;
     1. Direct insurance (including co-insurance),
          (i)     life
         (ii)      non-life
    2. Reinsurance and retrocession.
    3. Insurance intermediation, such as brokerage and agency.
    4. Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and
         claim settlement services.
B. Banking and other financial services (excluding insurance).
    1. Acceptance of deposits and other repayable funds from the public.
    2. Lending of all types, including, inter-alia, consumer credit, mortgage credit,
         factoring and financing of commercial transaction.
    3. Financial leasing.
   4. All payment and money transmission services, including credit charge and debit
        cards, travellers cheques and bankers drafts.
   5. Guarantees and commitments.
   6. Trading for own account or for the account of customers, whether on an
        exchange, in an over the counter market or otherwise, the following:
        (a)      money market instruments (cheques, bills, certificates of deposits, etc.)
        (b)      foreign exchange
        (c)      derivative products including, but not limited to, futures and options
        (d)      exchange rates and interest rate instruments, including products such as
                 swaps, forward rate agreements, etc.
        (e)      transferable securities
       (f)       other negotiable instruments and financial assets, including bullion.
   7. Participation in issues of all kinds of securities, including under-writing and
       placement as agent (whether publicly or privately) and provision of services
       related to such issues.
   8. Money brokering.
   9 Asset, management, such as cash or portfolio management, all forms of collective
       investment management, pension fund management, custodial depository and trust
       services.
   10. Settlement and clearing services for financial assets, including securities, derivative
       products, and other negotiable instruments.
   11 Advisory intermediation and other auxiliary financial services on all the activities
       listed in points 1 to 10 above, including credit reference and analysis, investment
                                                  50
 ---pagebreak---      12 Provision and transfer of financial information, and financial data processing and
         related software by providers of other financial services.
The following activities are excluded from the definition of financial services.
(a) Activities carried out by central banks or by any other public institution in pursuit of
    monetary and exchange rate policies.
(b) Activities conducted by central banks, government agencies or departments, or public
    institutions, for the account or with the guarantee of the government, except when those
    activities may be carried out byfinancialservice providers in competition with such public
    entities.
(c) Activities forming part of a statutory system of social security or public retirement plans,
    except when those activities may be carried out byfinancialservice providers in
    competition with public entities or private institutions.
                                                50 (<0                ' "">"
 ---pagebreak---                                                                          ANNEX V
                     Intellectual, industrial and commercial property conventions
                                         referred to in Article 41
  1.      Article 41(2) concerns the following multilateral conventions.
          -        Berne Convention for the Protection of Literary and Artistic Works
                  (Paris Act, 1971);
          -        International Convention for the Protection of Performers, Producers of
                  Phonograms and Broadcasting Organizations (Rome, 1961);
          -       Protocol relating to the Madrid Agreement concerning the International
                  Registration of Marks (Madrid, 1989);
          -       Nice Agreement concerning the International Classification of Goods and
                  Services
                  for the purposes of the Registration of Marks (Geneva 1977 and amended
                  in 1979);
         -        Budapest Treaty on the International Recognition of the Deposit of
                  Micro Organisms for the purposes of Patent Procedures (1977, modified in 1980),
         -        International Convention for the Protection of New Varieties of Plants
                  (UPOV) (Geneva Act, 1991);
 2.   The Cooperation Council may recommend that Article 41(2) shall apply to other multilateral
      conventions. If problems in the area of intellectual, industrial and commercial property
      affecting trading conditions were to occur, urgent consultations will be undertaken, at the
      request of either Party, with a view to reaching mutually satisfactory solutions.
3.    The Parties confirm the importance they attach to the obligations arising from the following
      multilateral conventions.
        -        Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967
                 and amended in 1979);
        -        Madrid Agreement concerning the International Registration of Marks
                 (Stockholm Act, 1967 and amended in 1979);
        -        Patent Cooperation Treaty (Washington, 1970, amended in 1979 and modified
                 in 1984).
4.   From the entry into force of this Agreement, the Republic of Uzbekistan shall grant to
     Community companies and nationals, in respect of the recognition and protection of
     intellectual, industrial and commercial property, treatment no less favourable than that
     granted by it to any third country under bilateral agreements.
5.   The provisions of paragraph 4 shall not apply to advantages granted by the Republic
     of Uzbekistan to any third country on an effective reciprocal basis and to advantages
     granted by the Republic of Uzbekistan to another country of the former USSR.
                                                   51
 ---pagebreak---             PROTOCOL
      ON MUTUAL ASSISTANCE
BETWEEN ADMINISTRATIVE AUTHORITIES
       IN CUSTOMS MATTERS
               52
 ---pagebreak---                                                ARTICLE I
                                                Definitions
  For the purposes of this Protocol :
     a) "customs legislation" shall mean any legal or regulatory provisions applicable in the
        territory of the Parties governing the import, export, transit of goods and their placing under
        any customs procedure, including measures of prohibition, restriction and control;
     b) "applicant authority", shall mean a competent administrative authority which has been
       appointed by a Party for this purpose and which makes a request for assistance in customs
       matters;
     c) "requested authority", shall mean a competent administrative authority which has been
       appointed by a Party for this purpose and which receives a request for assistance in customs
       matters;
     d) "personal data", shall mean all information relating to an identified or identifiable
       individual.
                                              ARTICLE 2
                                                 Scope
 1.  The Parties shall assist each other, in the areas within their jurisdiction, in the manner and
      under the conditions laid down in this Protocol, in preventing, detecting and investigating
      operations in breach of customs legislation.
2     Assistance in customs matters, as provided for in this Protocol, shall apply to any
      administrative authority of the Parties which is competent for the application of this
      Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters.
      Nor shall it cover information obtained under powers exercised at the request of the judicial
      authorities, unless those authorities so agree.
                                              ARTICLE 3
                                         Assistance on request
1.   At the request of the applicant authority, the requested authority shall furnish it with all
      relevant information which may enable it to ensure that customs legislation is correctly
     applied, including information regarding operations noted or planned which are or could be
     in breach of such legislation.
                                                                                                      /
                                                  53
 ---pagebreak---         At the request of the applicant authority, the requested authority shall inform it whether
         goods exported from the territory of one of the Parties have been properly imported into the
         territory of the other Party, specifying, where appropriate, the customs procedure applied to
         the goods
        At the request of the applicant authority, the requested authority shall, within the framework
        of its laws, take the necessary steps to ensure that a special watch is kept on :
      (a) natural or legal persons of whom there are reasonable grounds for believing that they are
        breaching or have breached the customs legislation of the Parties;
      (b) places where goods are stored in a way that gives grounds for suspecting that they are
        intended to supply operations in breach of customs legislation;
      (c) movements of goods notified as possibly giving rise to breaches of customs legislation;
      (d) means of transport for which there are reasonable grounds for believing that they have
        been, are or might be used in operations in breach of customs legislation.
                                                ARTICLE 4
                                          Spontaneous assistance
 The Parties shall provide each other, as far as their national laws, rules and other legal
 instruments allow, with assistance without prior request if they consider that to be necessary for
 the correct application of customs legislation, particularly when they obtain information
 pertaining to :
           operations which are or appear to be in breach of such legislation and which may be of
           interest to another Party;
           new means or methods employed in carrying out such operations;
      -    goods known to be subject to breaches of customs legislation.
     -     natural or legal persons of whom there are reasonable grounds for believing that they are
           or have been in breach of customs legislation
           means of transport for which there are reasonable grounds for believing that they have
           been, are or might be used in operations in breach of customs legislation
                                                ARTICLE 5
                                           Delivery/Notification
At the request of the applicant authority, the requested authority shall, in accordance with its
legislation, take all necessary measures in order :
     - to deliver all documents,
     - to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or established in its territory. In
such cases, Article 6(3) shall apply as far as the request itself is concerned.
                                                                                                    //
                                                    54
 ---pagebreak---                                                 ARTICLE 6
                             Form and substance of requests for assistance
  1    Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by
        the documents necessary to enable compliance with the request. When required because of
        the urgency of the situation, oral requests may be accepted, but must be confirmed in
        writing immediately.
 2. Requests pursuant to paragraph 1 of this Article shall include the following information :
    (a)   the applicant authority making the request;
    (b)   the measure requested;
    (c)   the object of and the reason for the request;
    (d)   the laws, rules and other legal elements involved;
    (e)   indications as exact and comprehensive as possible on the natural or legal persons who
          are the target of the investigations;
    (f) a summary of the relevant facts and of the enquiries already carried out, except in cases
          provided for in Article 5.
 3.  Requests shall be submitted in an official language of the requested authority or in a language
       acceptable to that authority.
4.   If a request does not meet the formal requirements, its correction or completion may be
       requested; precautionary measures may, however, be ordered.
                                              ARTICLE 7
                                         Execution of requests
 1   In order to comply with a request for assistance, the requested authority shall proceed, within
      the limits of its competence and available resources, as though it were acting on its own
      account or at the request of other authorities of that same Party, by supplying information
      already possessed, by carrying out appropriate enquiries or by arranging for them to be
      carried out. This provision shall also apply to the administrative department to which the
      request has been addressed by the requested authority when the latter cannot act on its own.
2.  Requests for assistance shall be executed in accordance with the laws, rules and other legal
     instruments of the requested Party.
3.  Duly authorized officials of a Party may, with the agreement of the other Party involved and
     subject to the conditions laid down by the latter, obtain from the offices of the requested
     authority or other authority for which the requested authority is responsible, information
     relating to operations which are or may be in breach of customs legislation which the
     applicant authority needs for the purposes of this Protocol.
                                                  55
 ---pagebreak---         Officials of a Party may, with the agreement of the other Party involved and subject to the
         conditions laid down by the latter, be present at enquiries carried out in the latter's territory.
         They shall not wear uniform nor carry arms.
                                               ARTICLE 8
                           Form in which information is to be communicated
  1.    The requested authority shall communicate results of enquiries to the applicant authority in
         the form of documents, certified copies of documents, reports and the like.
 2.     The documents provided for in paragraph 1 may be replaced by computerized information
         produced in any form for the same purpose.
                                               ARTICLE 9
                           Exceptions to the obligation to provide assistance
  1.   The Parties may refuse to give assistance as provided for in this Protocol, where to do
        would:
     (a) be likely to prejudice the sovereignty of the Republic of Uzbekistan or that of a Member
           State of the European Union which has been asked for assistance under this Protocol; or
     (b) be likely to prejudice public policy, security or other essential interests, in particular in the
           cases referred to under Article 10 (2); or
     (c) involve currency or tax regulations other than customs legislation; or
     (d) violate an industrial, commercial or professional secret.
 2.   Where the applicant authority requests assistance which it would itself be unable to provide if
        so asked, it shall draw attention to that fact in its request. It shall then be left to the
        requested authority to decide how to respond to such a request.
3.    If assistance is refused, the decision and the reasons therefor must be notified to the applicant
       authority without delay.
                                              A R T I C L E 10
                               Information exchange and confidentiality
 1.   Any information communicated in whatsoever form pursuant to this Protocol shall be of a
       confidential or restricted nature, depending on the rules applicable in each of the Parties. It
       shall be covered by the obligation of official secrecy and shall enjoy the protection extended
       to like information under the relevant laws of the Party which received it and the
       corresponding provisions applying to the Community institutions.
2.   Personal data may be exchanged only where the receiving Party undertakes to protect such
      data in at least an equivalent way to the one applicable to that particular case in the
                                                     56
 ---pagebreak---         supplying Party.
  3   Information obtained shall be used solely for the purposes of this Protocol. Where one of the
        Parties requests the use of such information for other purposes, it shall ask for the prior
        written consent of the authority which furnished the information. Moreover, it shall be
        subject to any restrictions laid down by that authority.
  4.   Paragraph 3 shall not impede the use of information in any judicial or administrative
       proceedings subsequently instituted for failure to comply with customs legislation. The
       competent authority which supplied that information shall be notified of such use.
  5.  The Parties may, in their records of evidence, reports and testimonies and in proceedings and
       charges brought before the courts, use as evidence information obtained and documents
       consulted in accordance with the provisions of this Protocol.
                                              ARTICLE 11
                                          Experts and witnesses
  1. An official of a requested authority may be authorized to appear, within the limitations of the
 authorization granted, as an expert or witness in judicial or administrative proceedings regarding
 the matters covered by this Protocol in the jurisdiction of the other Party, and produce such
 objects, documents or authenticated copies thereof, as may be needed for the proceedings. The
 request for an appearance must indicate specifically on what matters and by virtue of what title or
 qualification the official will be questioned.
2. The authorized official shall enjoy the protection guaranteed by existing legislation to officials
of the applicant authority on its territory.
                                              ARTICLE 12
                                           Assistance expenses
The Parties shall waive all claims on each other for the reimbursement of expenses incurred
pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses and to
interpreters and translators who are not public service employees.
                                                                                            / '
                                                   57
 ---pagebreak---                                              ARTICLE 13
                                              Application
     The application of this Protocol shall be entrusted to the central customs authorities of the
      Republic of Uzbekistan, on the one hand and the competent services of the Commission of
      the European Communities and, where appropriate, the customs authorities of the Member
      States, on the other. They shall decide on all practical measures and arrangements necessary
      for its application, taking into consideration the rules in force in the field of data protection.
      They may recommend to the competent bodies amendments which they consider should be
      made to this Protocol.
     The Parties shall consult each other and subsequently keep each other informed of the
      detailed rules of implementation which are adopted in accordance with the provisions of this
      Protocol.
                                            ARTICLE 14
                                          Complementarity
Without prejudice to Article 10, any agreements on mutual assistance which have been concluded
between one or more Member States and the Republic of Uzbekistan shall not prejudice
Community provisions governing the communication between the competent services of the
Commission of the European Communities and the customs authorities of the Member States of
any information obtained in customs matters which could be of Community interest.
                                                                                     /
                                                  58
 ---pagebreak---                                     J O I N T DECLARATION
In applying the agreement, the parties are aware of the necessity of an adequate protection of
individuals with regard to the processing of personal data and on the free movement of such data.
                                               59
 ---pagebreak---                                    JOINT DECLARATION
                                IN RELATION TO ARTICLE 5
Should the Parties agree that circumstances warrant meetings at the highest level, such meetings
may be arranged on an ad hoc basis.
                                             60
 ---pagebreak---                                    JOINT DECLARATION
                                  CONCERNING TITLE III
All references to the GATT are to the text of the GATT as modified in 1994.
                                              61
 ---pagebreak---                                      JOINT DECLARATION
                                  CONCERNING ARTICLE 14
Until the Republic of Uzbekistan accedes to the WTO, the Parties shall hold consultations in the
Cooperation Committee on their import tariff policies, including changes in tariff protection. In
particular, such consultations shall be offered prior to the increase of tariff protection.
                                                                                 •  ^       /
                                                 62
 ---pagebreak---                                       JOINT DECLARATION
                       CONCERNING THE NOTION OF "CONTROL"
                              IN ARTICLE 24(b) AND ARTICLE 35
 1.   The Parties confirm their mutual understanding that the question of control shall depend on
      the factual circumstances of the particular case.
2.    A company shall, for example, be considered as being "controlled" by another company, and
      thus a subsidiary of such other company if:
-   the other company holds directly or indirectly a majority of the votingrights,or
-   the other company has therightto appoint or dismiss a majority of the administrative organ,
    of the management organ or of the supervisory organ and is at the same time a shareholder or
    member of the subsidiary.
3.   The Parties consider the criteria in paragraph 2 to be non-exhaustive.
                                                 63
 ---pagebreak---                                      JOINT DECLARATION
                                   CONCERNING ARTICLE 34
The sole fact of requiring a visa for natural persons of certain Parties and not for those of others
shall not be regarded as nullifying or impairing benefits under a specific commitment.
                                                 64
 ---pagebreak---                                       JOINT DECLARATION
                                   CONCERNING ARTICLE 41
The Parties agree that for the purpose of the Agreement, intellectual, industrial and commercial
property includes in particular copyright, including the copyright in computer programs, and
neighbouringrights,therightsrelating to patents, industrial designs, geographical indications,
including appellations of origin, trademarks and service marks, topographies of integrated
circuits as well as protection against unfair competition as referred to in Article 10 bis of the Paris
Convention for the protection of Industrial Property and protection of undisclosed information on
know-how.
                                                65                                  //
 ---pagebreak---                                      JOINT DECLARATION
                                   CONCERNING ARTICLE 95
1.   The Parties agree, for the purpose of its correct interpretation and its practical application,
     that the term "cases of special urgency" included in Article 95 of the Agreement means
     cases of material breach of the Agreement by one of the Parties. A material breach of the
     Agreement consists in
   (a) repudiation of the Agreement not sanctioned by the general rules of international law
   or
   (b) violation of the essential elements of the Agreement set out in Article 2.
2.   The parties agree that the "appropriate measures" referred to in Article 95 are measures
     taken in accordance with international law. If a party takes a measure in a case of special
    urgency as provided for under Article 95, the other party may avail itself of the procedure
    relating to settlement of dispute.
                                                66
 ---pagebreak---              EXCHANGE OF LETTERS
           BETWEEN THE COMMUNITY
        AND THE REPUBLIC OF UZBEKISTAN
IN RELATION TO THE ESTABLISHMENT OF COMPANIES
                      67
 ---pagebreak---  A. Letter from the Government of the Republic of Uzbekistan
 Dear Sir,
I refer to the Partnership and Cooperation Agreement initialled on
As I underlined during the negotiations, the Republic of Uzbekistan grants to Community
companies establishing and operating in the Republic of Uzbekistan in certain respects a
privileged treatment. I explained that this reflects the Uzbek policy to promote by all means the
establishment of Community companies in the Republic of Uzbekistan.
With this in mind, it is my understanding that during the period between the date of initialling of
this Agreement and the entry into force of the relevant articles on establishment of companies, the
Republic of Uzbekistan shall not adopt measures or regulations which would introduce or worsen
discrimination of Community companies vis-à-vis Uzbek companies or companies from any third
country as compared to the situation existing on the date of initialling of this Agreement.
I would be obliged if you would acknowledge receipt of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                                 For the Government of the Republic of Uzbekistan
                                                 68
 ---pagebreak---  B. Letter from the European Community
 Dear Sir,
 Thank you for your letter of today's date, which reads as follows:
 "I refer to the Partnership and Cooperation Agreement initialled on
As I underlined during the negotiations, the Republic of Uzbekistan grants to Community
companies establishing and operating in the Republic of Uzbekistan in certain respects a
privileged treatment. I explained that this reflects the Uzbek policy to promote by all means the
establishment of Community companies in the Republic of Uzbekistan.
With this in mind, it is my understanding that during the period between the date of initialling of
this agreement and the entry into force of the relevant articles on establishment of companies, the
Republic of Uzbekistan shall not adopt measures or regulations which would introduce or worsen
discrimination of Community companies vis-à-vis Uzbek companies or companies from any third
country as compared to the situation existing on the date of initialling of this Agreement.
I would be obliged if you would acknowledge receipt of this letter."
I acknowledge receipt of the letter.
Please accept, Sir, the assurance of my highest consideration.
                                                             On behalf of the European Community
    z?
                                                 69                                    ?«'<:*::.
 ---pagebreak---                                        DECLARATION
                            BY THE FRENCH GOVERNMENT
The French Republic notes that the Partnership and Cooperation Agreement with the Republic of
Uzbekistan does not apply to the overseas countries and territories associated with the European
Community pursuant to the Treaty establishing the European Community.
                                             70
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(96) 254 final
                                             DOCUMENTS
EN                                                                            11
                                     Catalogue number : CB-CO-96-273-EN-C
                                                             ISBN 92-78-05281-7
Office for Official Publications of the European Communities
L-2985 Luxembourg