CELEX: 51994PC0477
Language: en
Date: 1994-11-03
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 Moldova, of the other part

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            C0M(94) 477   final
                                           Brussels,    03.11.1994
                                           94/  0249CAVC)
                                  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 Moldova, of the other part
                    (presented by the Commission)
 ---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 Moldova, on the other.
2. Following the Council's adoption of the negotiating directives on 5 October 1992,
   negotiations with the Republic of Moldova were held in the course of 1994. After two
   rounds of negotiations, the Agreement was initialed on 26 July 1994.
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 of ten
   years.
   It establishes a political dialogue. The Agreement covers also 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, 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.
   The Agreement refers to the prospect of a future free trade area. In 1998,
   circumstances wil be assessed in order to see whether negotiations can begin in view of
   a free trade agreement.
   Customs cooperation is covered by a separate protocol.
4. The Agreement will, as far as relations between the Community and the Republic of
   Moldova are concerned, replace the Agreement on Trade and Commercial and
                                                                                           4a_
 ---pagebreak---    Economie. 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.
   For the purpose of concluding the Agreement :
        the Council will conclude the Agreement, with the assent of the European
   Parliament, on behalf of the European Community in accordance with Articles 113 and
   235 and in conjuction with Article 228 (2 and 3, second sub paragraph) of the EC
   Treaty by adopting the attached decisions;
        the Commission will conclude the Agreement on behalf of the ECSC in
   accordance with Article 95 of the ECSC, after consulting the Consultative Committee
   and with the unanimous assent of the Council;
        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 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 asks the Council to adopt the annexed decision.
                                                                                        /H
 ---pagebreak---                              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 Moldova, of the other part
           (presented to the Council by the Commission)
                                                                 AC
 ---pagebreak---                       COUNCIL AND COMMISSION DECISION
                                                         r
                                          OF..........
           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 Moldova, of the other part
                               (../.../ECSC, EC, EURATOM)
THE COUNCIL OF THE EUROPEAN UNION,
THE COMMISSION, of the European Communities
Having regard to the Treaty establishing the European Coal and Steel Commumty,
Having regard to the Treaty establishing the European Community, and in particular
Articles 113 and 235 in conjunction with Article 228 (2 and 3, second sub paragraph)
thereof
Haying regard to the Treaty establishing the European Atomic Energy Commumty, and in
particular the second paragraph of Article 101 thereof
Having regard to the assent of the European Parliament,
Whereas, the Partnership and Cooperation Agreement between the European
Communities and their Member States, of the one part, and the Republic of Moldova, of
the other part, signed      , should be approved,
Having consulted the Consultative Committee and with the unanimous agreement of the
Council,
HAVE DECIDED AS FOLLOWS :
                                                                                      JcH
 ---pagebreak---                                          Article 1
The Partnership and Cooperation Agreement between the European Communities and
their Member States of the one part, and the Republic of Moldova, of the other part,
together with the Protocol, the exchange of letters and the declarations are hereby
approved on behalf of the European Commumty, the European Coal and Steel
Commumty, and the European Atomic Energy Commumty.
These texts are attached to this Decision.
                                         Article 2
 1. The position to be adopted by the Commumty in the Cooperation Council shall be
    determined by the Council, on a proposalfromthe 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
    Commumty and the European Atomic Energy Community.
2. In accordance with Article 72 of the Partnership and Cooperation Agreement, the
    President of the Council shall preside over the Cooperation Council and shall present
    the Community's position. A representative of the Commission shall préside over 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 87a of the
Agreement on behalf of the European Commumty. The President of the Commission shall
give such notification on behalf of the European Coal and Steel Commumty and the
European Atomic Energy Committee.
Done at Brussels,
                                                                                            ^•e
 ---pagebreak---                                           Final act
The plenipotentiaries of :
THE KINGDOM OF BELGIUM,
THE KINGDOM OF DENMARK,
THE 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 PORTUGUESE REPUBLIC,
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 Moldova,                                   "    .•
of the other part,
meeting ....... in the year one thousand nine hundred and ninety-four 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 Repubhc of
Moldova, of the other part, hereinafter referred to as the Partnership and Cooperation
Agreement, have adopted the following text :
                                                                                            /I /
 ---pagebreak--- the Partnership and Cooperation Agreement and the Protocol on mutual assistance in
customs matters.                                                        ,
The plempotentiaries of the Member States and of the Commumty and the
plenipotentiaries of the Republic of Moldova have adopted the texts of the Joint
declarations listed below and annexed to this Final Act :
     Joint Declaration concerning Article 3bis of the Agreement
     Joint Declaration concerning Article 13 of the Agreement
     Joint Declaration concerning Article 14 of the Agreement
     Joint Declaration concerning Article 23 of the Agreement
     Joint Declaration concerning Article 24 of the Agreement
     Joint Declaration concerning the notion of "control" in Article 25(b) and Article 36 of
     the Agreement
     Joint Declaration concerning Article 38 of the Agreement
     Joint Declaration concerning Article 87a of the Agreement
The plenipotentiaries of the Member States and of the Commumty and the
plenipotentiaries of the Repubhc of Moldova have also taken note of the following
exchange of letters annexed to this Final Act :
     Exchange of letters between the Community and the Repubhc of Moldova in relation
     to the establishment of companies
The plempotentiaries of the Member States and of the Commumty and the
plenipotentiaries of the Repubhc of Moldova have also taken note of the following
exchange of letters outside the Partnership and Cooperation Agreement and annexed to
this Final Act :
     Exchange of letters on the consequences of enlargement
The plenipotentiaries of the Repubhc of Moldova have also taken note of the declarations
listed below annexed to this Final Act :
     Unilateral Declaration by the French Repubhc on PTOM territories
                                              10
                                                                                             *i
 ---pagebreak--- The plenipotentiaries of the Member States and of the Community have, also taken note of
the following declaration outside the Partnership and Cooperation Agreement and
annexed to this Final Act :
   Unilateral Declaration by Moldova on the wine sector
The plempotentiaries of the Repubhc of Moldova have also taken note of the following
declaration outside the Partnership and Cooperation Agreement and annexed to this Final
Act:
   Unilateral Declaration by the Community concerning technical assistance on GSP
Done at                                     in the year one thousand nine hundred and
ninety four.
For the Council and the Commission of the European Communities.
For the Republic of Moldova.
                                            11
 ---pagebreak---    PARTNERSHIP AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN
   COMMUNITIES AND THEIR MEMBER STATES, OF THE ONE PART, AND THE
   REPUBLIC OF MOLDOVA, 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 PORTUGUESE REPUBLIC,
     THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
     contracting parties to the Treaty establishing the European Economic Community, the Treaty
     establishing the European Coal and Steel Community, and the Treaty establishing the European
     Atomic Energy Commumty,
     hereinafter referred to as "Member States", and
     the EUROPEAN ECONOMIC COMMUNITY, the EUROPEAN ATOMIC ENERGY
     COMMUNITY and me EUROPEAN COAL AND STEEL COMMUNITY,
     hereinafter referred to as "the Community",
      of the one part,
      and
      THE REPUBLIC OF MOLDOVA
      of the other part,
      hereinafter referred to as "the Parties",
V
0.                                                                                    J?/. / * > a
 ---pagebreak--- CONSIDERING the links between the Community, its Member States and the Repubhc of
Moldova and the common values mat they share,                                 ,
RECOGNIZING that the Oxmnumty and the Republic of Moldova 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
Commumty and the European Atomic Energy Commumty and the Union of Soviet Socialist
Republics on Trade and Commercial and Economic Cooperation, signed on 18 December 1989.
CONSIDERING the commitment of the Commumty and its Member States and of the Repubhc
of Moldova to strengthening the political and economic freedoms which constitute the very
basis of the partnership,
 CONSIDERING the commitment of the Parties to promote international peace and security as
well as the peaceful settlement of disputes and to co-operate to this end in theframeworkof the
 United Nations and the Conference on Security and Cooperation in Europe,
 CONSIDERING the firm commitment of the Commumty and its Member States and of the
 Republic of Moldova 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",
 RECOGNIZING in that context that support of independence, sovereignty and territorial integrity
 of the Republic of Moldova will contribute to safeguarding of peace and stability in the region of
 Central and Eastern Europe and on the European Continent as a whole,
 CONFIRMING the attachment of the Community and its Member States and of the Republic of
 Moldova to the European Energy Charter, and to the Declaration of the Lucera Conference of
 April 1993,
  CONVINCED of the paramount importance of the rule of law and. respect for human rights,
  particularly those of minorities, the establishment of a multiparty system with free and
  democratic elections and economic liberalization aimed at setting up a market economy,
  RECOGNIZING the efforts of the Repubhc of Moldova to create political and economic
  systems, which respect the rule of law and humanrights,including the rights of persons belonging
  to minorities and that the Repubhc o f Moldova operates a multi-party system with free and
  democratic elections, and provides for economic liberalisation,
  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 Moldova , 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 the neighbouring countries in order to promote the prosperity and stability of the
   region,
   DESIROUS of establishing and developing regular political           dialogue    on bilateral and
   international issues of mutual interest,
 ---pagebreak--- 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
Moldova and a wider area of cooperation in Europe and neighbouring regions and Moldova's
progressive integration into the open international trading system,
CONSIDERING the commitment of the Parties to liberalise trade, based on the principles
contained in the General Agreement on Tariffs and Trade,
 WELCOMING AND RECOGNISING the importance of Moldova's efforts, aimed at transition
 of its economy away from a state trading country with centrally planned economy into a market
 economy,
 CONSCIOUS of the need to improve conditions affecting business and investment, and conditions
 in areas such as enterprises, 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 essentia] 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,
  DESIROUS of developing cultural cooperation and improving the flow of information,
  Have agreed as follows :
                                                Article 1
   A Partnership is hereby established between the Community and its Member States of the one
   part, and the Repubhc of Moldova of the other part The objectives of this partnership are:
         to provide an appropriateframeworkfor 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 tofostertheir sustainable economic development,
         to provide a basis for legislative, economic, social, financial, and cultural cooperation,
         to support efforts of the Repubhc of Moldova to consolidate its democracy and to develop
          its economy and to complete the transition into a market economy.
                                                                                                    k.
 ---pagebreak---                               TITLE I : GENERAL PRINCIPLES
                                               Article 2
Respect for democracy, principles of international law, and human rights as defined in
particular in the Helsinki Final Act and the Charter of Paris for a New Europe, as well as the
principles of market economy, including 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 the future prosperity and stability of the region of the
former Soviet Union that the newly independent states which have emergedfromthe 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.
                                             Article 3 bis
 The Parties undertake to consider, in particular when Moldova has further advanced in the
 process of economic reform, developments of the relevant Tides of this Agreement, in particular
 Title III and Article 37a, with a view to the establishment of afreetrade area between them. The
 Cooperation Council may make recommendations on such developments to the Parties. Such
 developments shall only be put into effect by virtue of an agreement between the Parties in
 accordance with their respective procedures. The Parties shall consult each other in the year 1998
 as to whether circumstances, and in particular Moldova's advances in market oriented economic
 reforms and the economic conditions prevailing there at that time, allow the beginning of
 negotiations on the establishment of afreetrade area.
                                              Article 3 ter
 The Parties undertake to examine together, by mutual consent, amendments which it may be
 appropriate to make to any part of the Agreement in view of changes in circumstances, and in
 particular of the situation arisingfromthe Repubhc of Moldova's accession to GATT. The first
 examination shall take place three years after the entry, into force of the Agreement or when the
 Republic of Moldova becomes a Contracting Party of GATT, whichever is earlier.
 ---pagebreak---                                TITLE II : POLITICAL DIALOGUE
                                               Article 4
A regular pohtical dialogue shall be established between the Parties which they intend to develop
and intensify. It shall accompany and consolidate therapprochementbetween the Commumty and
the Republic of Moldova , support the political and economic changes underway in that country
and contribute to the establishment of new forms of cooperation. The political dialogue:
      shall strengthen the links of the Republic of Moldova with the Commumty, and thus with
      the community of democratic nations. The economic convergence achieved through this
      Agreement will lead to more intense political relations;
      shall bring about an increasing convergence of positions on international issues of mutual
      concern, thus increasing security and stability;
     shall foresee that the Parties endeavour to co-operate on matters pertaining to the strengthening of
     stability and security in Europe, the observance of the principles of democracy, the respect and
     promotion of human rights, particularly those of minorities and shall hold consultations, if
      necessary, on the relevant matters.
                                                 Article 5
 At ministerial level, political dialogue shall take place within the Cooperation council established
 in Article 71 and on other occasions by mutual agreement
                                                 Article 6
 Other procedures and mechanisms for pohtical dialogue shall be set up by the Parties, and in
 particular in thefollowingforms:
        regular meetings at the level of senior officials between representatives of the Repubhc of
       Moldova, and representatives of the Commumty;
       taking full advantage of diplomatic channels between the parties including appropriate
       contacts in the bilateral as well as the multilateral field, such as the United Nations, CSCE
       meetings and elsewhere;
       exchanging information on matters of mutual interest concerning pohtical cooperation in
       Europe;
       any other means, which would-contribute to consolidating and developing this political
        dialogue.
                                                  Article 7
  Pohtical dialogue at parliamentary level shall take place within the framework of the
  Parliamentary Cooperation Committee established in Article 76.
                                                                                                     J
 ---pagebreak---                                       TITLE III; 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 a free-trade area or
       pursuant to the creation of such a union or area;
 (b) advantages granted to particular countries in accordance with the General Agreement on
       Tariffs and Trade and with other international arrangements in favour of developing
        countries;
 (c)    advantages accorded to adjacent countries in order to facilitatefrontiertraffic.
 3. The provisions of paragraph 1 and Article 9 paragraph 2 shall not apply, during a
      transitional period expiring on the date of the Repubhc of Moldova acceding to GATT or on
      31/12/1998, whichever is earlier, to advantages defined in Annex I granted by the Repubhc of
      Moldova to other independent states asfromthe day preceding the date of entry into force of
      the Agreement
                                                  Article 9
                                                      •••-•• • « • • ' • /
   1. The parties agree that the principle of free transit of goods is an essential condition of
        attaining the objectives of this Agreement
   2.    In this connection each Party shall provide for unrestricted transit via or through its
         territory of goods originating in the customs territory or destinedforthe customs territory of
         the other Party.
  3.    The rules described in article V, paragraphs 2, 3, 4, and 5 of the GATT are applicable
        between the two Parties.
  4.    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.
                                                                                                              i,
                                                                                                         "•^i
 ---pagebreak---                                                 Article 10
Without prejudice to the rights and obligations stemming from international conventions on the
temporary admission of goods which bind both Parties, each Party shall furthermore grant the
other Party exemption from import charges and duties on goods admitted temporarily, in the
instances and according to the procedures stipulated by any other international convention on this
matter binding upon it, in conformity with its legislation. Account shall be taken of the conditions
under which the obligations stemmingfromsuch a convention have been accepted by the Party in
 question.
                                                 Article 11
 Goods originating in Moldova and the Community respectively shall be imported into the
 Community and Moldova respectively free of quantitative restrictions without prejudice to
 Articles 13, 16, 17, to the provisions of annex II of this Agreement, and to the provisions of
 Articles 77, 81,244,249 and 280 of the Acts of Accession of Spain and Portugal to the European
 Community.
                                               Article 11 bis
  1.    The products of the territory of one Party imported into the territory of the other Party shall
        not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in
        excess of those applied, directly or indirectly, to like domestic products.
  2.    Moreover, these products shall be accorded treatment no less favourable than that accorded
        to like products of national origin in respect of all laws, regulations and requirements
        affecting their internal sale, offering for sale, purchase, transportation, distribution or use.
        The provision of this paragraph shall not prévent the application of differential internal
        transportation charges which are based exclusively on the economic operation of the means
        of transport and not on the nationality of the product
                                                Article 11 ter
  The following Articles of the GATT shall be applicable mutatis mutandis between the two
  Parties.
   (i)  Article VII, paragraphs 1,2,3,4a, 4b, 4d, 5;
   (ii) Article VIII;
   (hi) Article IX;
   (iv) Article X.
                                                   Article 12
    Goods shall be traded between the Parties at market-related prices.
                                                                                                           4
 ---pagebreak---                                                    Article 13
      1.   Where any product is being imported into the territory of one of the Parties in such increased
           quantities and under such conditions as to cause or threaten to cause substantial injury to
           domestic producers of like or directly competitive products, the Community or the Repubhc
           of Moldova, 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
           thereatter, the Community or the Republic of Moldova as the case may be shall supply the
           Cooperation Committee with all relevant information with a view to seeking a solution
           acceptable to both Parties.
       3.   If, as a result of the consultations, the Parties do not reach agreement, within 30 days of
            referral to the Cooperation Committee, on actions to avoid the situation, the Party which
            requested consultations shall be free to restrict imports of the products concerned to the
            extent and for such time as is necessary to prevent or remedy the injury, or to adopt
            other appropriate measures.
       4.   In critical circumstances where delay would cause damage difficult to repair, the Parties
            may take the measures before the consultations, on the condition that consultations shall be
            offered immediately after taking such action.
        5.   In the selection of measures under this article, the Contracting Parties shall give priority to
             those which cause least disturbance to the achievement of the aims of this Agreement.
J5"""S-
                                                                                                              z'-f
                                                                                                             M
 ---pagebreak---                                                         Article 14
          Nothing in this Title, and in Article 13 in particular shall prejudice or affect in any way the
          taking, by either Party, of anti-dumping or countervailing measures in accordance with Article VI
          of the GATT, the Agreement on implementation of Article VI of the GATT, the Agreement on
          interpretation and application of Articles VI, XVI and XXHI of the GATT or related internal
          legislation.
          In respect of anti-dumping or subsidies investigations, each Party agrees to examine submissions
           by the other Party and to inform the interested parties concerned of the essential facts and
           considerations on the basis of which a final decision is to be made. Before definitive anti-
           dumping and countervailing duties are imposed, the Parties shall do the utmost to bring about a
           constructive solution to the problem.
                                                         Article 15
           The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
           transit justified on grounds of public morahty, pubhc policy or pubhc 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 III shall not apply to trade in textile products falling under chapters 50 to 63 of the
             Combined Nomenclature. Trade in these products shall be governed by a separate agreement,
             initialed on 14th May 1993 and applied provisionally since 1st January 1993.
                                                          Article 17
                    Trade in products covered by the Treaty establishing the European Coal and Steel
                    Community shall be governed by the provisions of this Title HI, with the exception of
                    Article 11.
                    A contact group on coal and steel matters shall be set up, comprising representatives of the
                    Community on the one hand, and representatives of die Republic of Moldova 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 items will be conducted in accordance with.the provisions of the Treat
              establishing the European Atomic Energy Community. T.P wta/»,)©^ f -tr^cCj^ •**. AWUC«A
               vv^cvVfcvA cXo jU£*X_ b* 5>Vec*- tv>                (H, %w>v» Vcw^ <&j c                ^ . v . £,<v y^jj
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 ---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
      Moldovan nationals legally employed in the territory of a Member State shall befreefrom
      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 Moldova, Moldova shall
       endeavour to ensure that the treatment accorded to nationals of a Member State legally
       employed in the territory of Moldova shall be free from any discrimination based on
       nationality, as regards working conditions, remuneration or dismissal, as compared to its
       own nationals.
                                              Article 19 bis
                                    Coordination of Social Security
The Parties shall conclude agreements in order:
 (i)   to adopt, subject to the conditions and modalities applicable in each Member State,, the
        provisions necessary for the coordination of Social Security systems for workers of
        Moldovan nationality, legally employed in. the territory of a Member State. These
        provisions will in particular ensure that
        -     all periods of insurance, employment or residence completed by such workers in the
        various Member States shall be added together for the purpose of pensions in respect of old
        age, invalidity and death and for the purpose of medical care for such workers;
              any pensions in respect of old age, death, industrial accident or occupational disease,
        or of invahdity resulting therefrom, with the. exception of the special non-contributory
        benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor
        Member state or states;
  (ii) to adopt, subject to the conditions and modalities applicable in Moldova, the provisions
        necessary to accord to workers who are nationals of a Member State and legally employed in
         Moldova, treatment similar to that specified in the second indent of paragraph (i).
                                               Article 19 ter
  The measures to be taken in accordance with Article 19 bis shall not affect any rights or
  obligations arisingfrombilateral agreements linking Moldova and the Member States where those
   agreements provide for more favourable treatment of nationals of Moldova or of the Member
   States.
                                                 Article 20
   The Cooperation Council shall examine which joint efforts can be made to control illegal
< irnmigration, taking into account the principle and practice of readmission.
                                                      10
 ---pagebreak---                                                    Article 21
   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 22
   The Cooperation Council shall make recommendations for the implementation of Articles 19, 20
    and 21.
      Chapter II: Conditions affecting the establishment and operation of companies
                                                    Article 23
     1. a)    The Community and its Member States shall grant for the establishment of Moldovan
              companies in their territories treatment no less favourable than that accorded to
              companies of any third country, and this in conformity with their legislation and
              regulations.
          b)  Without prejudice to the reservations listed in Annex IV, the Community and its Member
              States shall grant to subsidiaries of Moldovan companies established in their territories a
              treatment no less favourable than that granted to any Commumty companies, in respect of
              their operation, and this in conformity with their legislation and regulations.
          c)  The Community and its Member States shall grant to branches of Moldovan 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, and this in
               conforinity with their legislation and regulations.
      2. a)    Without prejudice to the reservations listed in Annex V, Moldova shall grant for the
               establishment of Community companies in its territory, a treatment no less favourable
               than that accorded to its own companies or to companies of any third country whichever
               is the better, and this in conformity with its legislation and regulations.
           b)  Moldova shall grant to subsidiaries and branches of Commumty companies, established
                in its territory, treatment no less favourable than that accorded to its own companies or
                branches respectively or to companies or branches of any third country respectively,
                whichever is the better, in respect of their operations, and this in conformity with its
                legislation and regulations.
       3.       The provisions of paragraphs 1 and 2 cannot be used so as to circumvent a Party's
                 legislation and regulations applicable to access to specific sectors or activities by
                 subsidiaries of companies of the other Party established in the territory of such first Party.
                 The treatment referred to in paragraph 1 and 2 shall benefit companies established in the
                 Community and Moldova respectively at the date of entry into force of this Agreement
                 and companies established after that date once they are established.
                                                           11
->
                                                                                                            4
 ---pagebreak---                                                Article 24
1. The provisions of Article 23 shall not apply to air transport,* inland waterways transport and
     maritime transport, without prejudice to Ac provisions of Article 89.         ,
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 to 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,fromquotation to invoicing, whether these services are operated or offered by the
      service supplier itself or by service suppliers with which the service seller has established
      standing business arrangements;
 (b) purchase and use, on their own account or on behalf of their customers (and the 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 of any means, including computerised information systems
      and electronic data interchange (subject to any nondiscriminatory 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, organising the call of the ship or taking over cargoes when
       required.
                                                 Article 25
  For the purposes of this Agreement:
  a)    A "Community company" or a "Moldovan company" respectively shall mean a company set
        up in accordance with the laws of a Member State or of Moldova respectively and having its
        registered office or central administration or principal place of business in the territory of the
     . Community or Moldova respectively. However, should the company, set up in accordance
        with the laws of a Member State or Moldova respectively, have only its registered office in
        the territory of the Community or Moldova respectively, the company shall be considered a
        Community or Moldovan company respectively if its operations possess a real and
        continuous link with the economy of one of the Member States or Moldova 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
                                                       12
 ---pagebreak---        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 Moldovan companies as referred to in
       Article 25 a) to take up economic activities by means of the setting up of subsidiaries and'
       branches in Moldova or in the Community respectively.
e) "Operation" shall mean the pursuit of economic activities.
f) "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, shall also be beneficiaries of the provisions of this Chapter and Chapter III, nationals
       of the Member States or of Moldova established outside the Community or Moldova
       respectively, and shipping companies established outside the Community or Moldova and
       controlled by nationals of a Member State or Moldovan nationals respectively, if their
        vessels are registered in that Member State or in Moldova respectively in accordance with
        their respective legislations.
                                                  Article 26
  1.    Notwithstanding any other provisions of the Agreement, a Parry shall not be prevented from
         taking measures for prudential reasons, including for the protection of investors, depositors,
         policy holders or persons to whom afiduciaryduty is owed by afinancialservice supplier, or
         to ensure the integrity and stability of the financial system. Where such measures do not
         conform with the provisions of the Agreement, they shall not be used as a means of avoiding
         the obligations of a Party under the Agreement
  2.     Nothing in the Agreement shall be construed to require a Party to disclose information
          relating to the affairs and accounts of individual customers or any confidential or proprietary
          information in the possession of public entities.
                                                   Article 27
  The provisions of the present 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 28
    1.     Notwithstanding the provisions of Chapter I of this Title, a Community company or a
           Moldovan company established in the territory of Moldova or the Community respectively
           shall be entitled to employ, or have employed by one of its subsidiaries or branches, in
           accordance with the legislation inforcein the host country of establishment, in the territory
           of Moldova and the Community respectively, employees who are nationals of Community .
           Member States and Moldova respectively, provided that such employees are key personnel as
           defined in paragraph 2 of this Article, and mat they are employed exclusively by companies,
           subsidiaries or branches. The residence and work permits of such employees shall only
            cover the period of such employment
    2.      Key personnel of the above mentioned companies herein referred to as "organisations" are
            "intra-corporate transferees" as defined in (c) of this Article in the following categories,
                                                         13
 ---pagebreak---    provided that the organisation is a juridical person and that the persons concerned have been
   employed by it or have been partners in ft (other than as majority shareholders), for at least
   the year immediately preceding such movement:                   '
   (a) Persons working in a senior position with an organisation, 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 sub-division 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 organisation 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
         organisation 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 organisation
          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 organisation, effectively
          pursuing like economic activities in the territory of theMother Party. .
                                               Article 30
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 (a) : the situations
     covered by such Article 36 (a) shall be solely governed by its provisions to the exclusion of
     any other.
3.   Acting in the spirit of partnership and cooperation and in light of provisions contained in
     Article 39, the Government of Moldova 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 Moldova 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 Moldova to communicate the
      drafts of such legislation or regulations and to enter into consultations about those drafts.
4.    Where new legislation or regulations introduced in Moldova would result in rendering the
      conditions for establishment of Community companies into its territory and for the operation
      of subsidiaries and branchest of Community companies established in Moldova more
       restrictive than the situation existing on the day of signature of the Agreement, such
       respective 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 Moldova at
       the time of entry into force of the relevant act.
                                                     14
                                                                                                      J
 ---pagebreak---                    Chapter HI: Cross-border supply of services between
                                 the Community and Moldqya
                                             Article 31
1.  The Parties undertake in accordance with the provisions of this Chapter to take the necessary
    steps to allow progressively the cross-border supply of services by Community or Moldovan
    companies which are established in a Party other than that of the person for whom the
    services are intended, taking into account the development of the services sectors in the
    Parties.
2.  The Cooperation Council shall make recommendations for the implementation of paragraph
    T of this Article.
                                              Article 32
The Parties shall cooperate with the aim of developing a market-oriented service sector in
 Moldova.
                                              Article 33
 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 Code of Conduct for Liner Conferences, as applicable to one or other
            Contracting Party to the present 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
            essentialfeatureof the dry and liquid bulk trade.
 2.    In applying the principles of paragraph 1, the Parties shall:
       a)    not apply, as from entry into force of this agreement, any cargo sharing provisions of
             bilateral agreements between any Member State of the Community and the former
             Soviet Union;
       b)    not introduce cargo sharing clauses in future bilateral agreements with third countries,
            . other than in those exceptional circumstances where liner shipping companies from one
             or other Party to the present agreement would not otherwise have an effective
             opportunity to ply for trade to andfromthe 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 mis Agreement, all unilateral measures,
              adiTiinistrative, technical and other obstacles which could have restrictive or
              discriminatory effects on thefreesupply of services in international maritime transport
              Each Party shall grant, inter alia, no less favourable treatment for the ships operated
                                                    15
 ---pagebreak---              by nationals or companies of the other party, than that accorded to a Party's own ships
            with regard to access to ports open to international trade, the use of infrastructure and
             auxiliary maritime services of the ports, as well as related fees and charges, customs
             facilities and the assignment of berths and facilities for loading and unloading. .
      Nationals and companies of the Community providing international-maritime transport
       services shall be free to provide international sea-river services in the inland waterways of
       Moldova and vice versa..
                                              Article 33 bis
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 as defined in Article 85
after entry into force of this Agreement.
                                   Chapter IV: General Provisions
                                                 Article 34
 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 either Party are connected, even
        occasionally, with the exercise of official authority.
                                                 Article 35
 For the purpose of this Title IV, 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 the Agreement The above provision does not prejudice the application
  of Article 34.
                                                  Article 36
   Companies which are controlled and exclusively owned by Moldovan companies and Community
   companies jointly shall also be beneficiaries of the provisions of Chapters II, III and IV of this
   Title.                 '
                                                  Article 36a
   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 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.
                                                       16
                                                                                                    /
 ---pagebreak---                                                Article 36b
For the purposes of Chapters H, HI and IV of this Title, no account shall be taken of treatment
accorded by the Community, its Member States or Moldova pursuant to commitments entered
into in economic integration agreements in accordance with the prmciples of Article V of the
GATS.
                                                Article 36c
 1.    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.
 2.    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.
 3.     Nothing in this Title shall be construed to prevent Member States or Moldova from
        distinguishing, in the application of the relevant provisions of their fiscal legislation, between
        taxpayers who are not in identical situations, in particular as regards their place of residence.
                                                Article 36d
 Without prejudice to Article 28, no provision of Chapters II, in and IV hereof shall be interpreted
  as giving therightto:
  -   nationals of the Member States or of Moldova respectively to enter, or stay in, the territory of
      Moldova or the Community respectively in any capacity whatsoever, and in particular, as a
      shareholder or partner in a company or manager or employed thereof or supplier or recipient of
      services;
  -   Community subsidiaries or branches of Moldovan companies to employ or have employed in
      the territory of the Community nationals of Moldova;                         »
  -   Moldovan subsidiaries or branches of Community companies to employ or have employed in
      the territory of Moldova nationals of the Member States;
   -   Moldovan companies or Community subsidiaries or branches of Moldovan companies to
       supply Moldovan persons to act for and under the control of other persons by temporary
       employment contracts;
   -   Community companies or Moldovan subsidiaries or branches of Community companies to
       supply workers who are nationals of the Member States by temporary employment contracts.
                                                       17
 ---pagebreak---                        TITLE V: CURRENT PAYMENTS AND CAPITAL
                                               Article 37
1.    The Parties undertake to authorize in freely convertible currency, any payments on the
      current account of balance of payments between residents of the Community, and of the
      Republic of Moldova connected with the movement of goods, services or persons made in
      accordance with the provisions of the present Agreement.
2.    With regard to transactions on the capital account of balance of payments, from entry into
      force of the 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 of Title IV, and the liquidation
       or repatriation of these investments and of any profit stemming therefrom, shall be ensured.
3.     Without prejudice to Paragraph 2 or to Paragraph 5, as from 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
       Moldova shall be introduced and the existing arrangements shall not become more
       restrictive.
 4.    The Parties shall consult each other with a view to facilitate the movement of forms of
       capital other than those referred to in paragraph 2 between the Community and the Republic
       of Moldova, in order to promote the objectives of the present Agreement
 5.    With reference to the provisions of this Article, until a full convertibility of the Moldovan
        currency within the meaning of article VUI of the articles of agreement of the International
        Monetary Fund (IMF) is introduced, the Republic of Moldova 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 Moldova for the granting of such credits and are permitted according to the
        Republic of Moldovas' status under the IMF.
        The Republic of Moldova 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 Moldova shall inform the Cooperation Council promptly of
        the introduction of such measures and of any changes therein.
   6.    Without prejudice to paragraph 1 and 2, where, in exceptional circumstances, movements of
         capital between the Community and .the Moldova cause, or threaten to cause, serious
         difficulties for the operation of exchange rate policy or monetary policy in the Community or
         Moldova, the Community and Moldova, respectively, may take safeguard measures with
         regard to movements of capital between the Community and Moldova for a period not
         exceeding six months if such measures are strictly necessary.
                                                       18
                                                                                                    v*
 ---pagebreak---                                             TITLE VI:
         COMPETITION. INTELLECTUAL, INDUSTRIAL AND COMMERCIAL
            PROPERTY PROTECTION AND LEGISLATIVE COOPERATION
                                            Article 37a
1. The parties agree to work to remedy or remove through the application of their competition
    laws or otherwise, restrictions on competition by enterprises or caused by State intervention
    insofar as they may affect trade between the Community and the Moldova.
2. In order to attain the objectives mentioned in paragraph 1:
     2.1 The Parties shall ensure that they have and enforce laws addressing restrictions on
     competition by enterprises within their jurisdiction.
     2.2. The Parties shall refrain from granting State aids favouring certain undertakings or the
      production of goods other than primary products as defined in the General Agreement on
      Tariffs and Trade, or the provision of services, which distort or threaten to distort
      competition insofar as they affect trade between the Community and the Moldova.
      2.3 Upon request by one Party, the other Party shall provide information on its aid schemes
      or on particular individual cases of State aid. No information needs to be provided which is
      covered by legislative requirements of the Parties on professional or commercial secrets.
      2.4 In the case of State monopolies of a commercial character, the Parties declare their
      readiness, as from the fourth year from the date of entry into force of their Agreement, to
      ensure that there is no discrimination between nationals of the Parties regarding the
       conditions under which goods are procured or marketed.
       2.5 In the case of public undertakings or undertakings to which Member States of the
       European Union or the Moldova grant exclusiverights,the Parties declare their readiness, as
       from the fourth yearfromthe date of entry into force of this Agreement, to ensure that there
       is neither enacted nor maintained any measure distorting trade between the Community and
       the Moldova to an extent contrary to the Parties' respective interests. This provision shall-
       not obstruct the performance, in law or fact, of the particular tasks assigned to such
       undertakings.
        2.6 The period defined in paragraphs 2.4 and 2.5 may be extended by agreement of the
        Parties.
  3. Consultations may take place within the Cooperation Committee at the request of the
       Community or Moldova on the restrictions or distortions of competition referred to in
       paragraphs 1 and 2 and on the enforcement of their competition rules, subject to limitations
       imposed by laws regarding disclosure of information, confidentiality and business secrecy.
       Consultations may also comprise questions on the interpretation of paragraphs 1 and 2.
                                                               t   -          .
  4. The Parties with experience in applying competition rules shall give full consideration to
       providing other Parties, upon request and within available resources, technical assistance for
       the development and implementation of competition rules.
  5. The above provisions in no way affect the Parties'rightsto apply adequate measures, notably
       thosereferredto in Article 14, in order to address distortions of trade in goods or services.
                                                     19
                                                                                                     ./
 ---pagebreak---                                            Article 38
   Pursuant to the provisions of this Article and of Annex III, Moldova shall continue to
   improve the protection of intellectual, industrial and commercial propertyrightsin order to
   provide, by the end of thefifthyear after the entry into force of the 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 the Agreement, Moldova shall
   accede to the multilateral conventions on intellectual, industrial and commercial property
   rights referred to in Paragraph 1 of Annex III to which Member States of the Community
   are parties or which are de facto applied by Member States according to the relevant
    provisions contained in these conventions.
                                            Article 39
1.  The Parties recognize that an important condition for strengthening the economic links
    between Moldova and the Community is the approximation of Moldova's existing and
    future legislation to that of the Commumty. Moldova 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, banking laWj company accounts and taxes, intellectual property, protection
     of workers at the workplace,financialservices, rules on competition, 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.
3.   The Commumty shall provide Moldova with technical assistance as appropriate 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 activities;
      aid.for translation of Commumty legislation in the relevant sectors.
                                                  20
 ---pagebreak---                               TITLE VU: ECONOMIC COOPERATION
                                                Article 41
1.     The Commumty and the Republic of Moldova shall establish economic cooperation aimed
       at contributing to the process of economic reform and recovery and sustainable
       development of the Republic of Moldova . Such cooperation shall strengthen existing
       economic links, to the benefit of both 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 Moldova 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 on industrial cooperation, investment promotion
       and protection, public procurement, standards and conformity assessment, mining and raw
       materials, science and technology, education and training, agriculture and the agro-industrial
       sector, energy, environment, transport, telecommunications, financial services, money
       laundering, monetary policy, regional development, social cooperation, tourism, small and
       medium sized entreprises, information and communication, consumer protection, customs,
       statistical cooperation, economics and drugs.
 4.      Special attention shall be devoted to measures capable of fostering cooperation between the
         Independent States with a view to stimulating a harmonious development of the region.
 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
         European Community technical assistance to the Republic of Moldova and its established
          co-ordination and implementation procedures.
 6. . The Cooperation Council shall make recommendations as to the development of cooperation
       in fields identified in paragraph 3 of this Article.
                                                  Article 42
                                            Industrial cooperation
   1. Cooperation shall aim at promoting the following in particular
          the development of business links between economic operators of both sides, e.g. in view of
           the transfer of technologies and know-how;
           Community participation in the Republic of Moldova's efforts to restructure and technically
           upgrade its industry;
           the improvement of management;
           the development of appropriate commercial rules and practices, including product
           marketing;
            environmental protection.
            adaptation of the structure of industrial production to the standards of an advanced market
            economy;
                                                        21
                                                                                                        -/'
 ---pagebreak---      the conversion of the military-industrial complex
2.   The provisions of this article shall not affect the enforcement of Community competition
     rules applicable to undertakings.                                ,
                                             Article 43
                                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 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 particular aims of cooperation shall be:
         - the conclusion, where appropriate, between the Member States and the Republic of
           Moldova, of agreements for the promotion and protection of investment;
         - the conclusion, where appropriate, between the Member States and the Republic of
            Moldova, of agreements to avoid double taxation;
         - the creation of favourable conditions for attracting foreign investments into the
            Moldovan 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.
                                               Article 44
                                          Public Procurement
 The Parties shall co-operatetodevelop conditions for open and competitive award of contracts for
 goods and services in particular through calls for tenders..
                                               Article 45
                  Cooperation in the field of standards and conformity assessment
  1.   Cooperation between the Parties shall promote alignment with internationally agreed criteria,
       principles and guidelinesfollowedin thefieldof standards and conformity assessment The
       required actions will facilitate progresstowardsmutual recognition in the field of conformity
       assessment, as well as the improvement of Moldovan product quality.
                                                    22
 ---pagebreak--- 2.     To this end they shall seek:
       to promote appropriate cooperation with organisations and institutions specialised in these
       fields;
       to promote the use of Commumty technical regulations and thé application of European
       standards and conformity assessment procedures;
       to permit the sharing of experience and technical information in the field of quality
        management.
                                                 Article 46
                                        Mining and raw materials
 1.     The Parties shaU aim at mcreasmgmvestment and trade m
 2.     The cooperation shall focus in particular on the following areas:
              -exchange of information on the developments in the mining and non-ferrous metals
               sectors,
               the establishment of a legal framework for cooperation,
               trade matters,
               the development of legislative and other measures in the field of environmental
               protection
               training
               6afety in the mining industry
                                                  Article 47
                                   Cooperation in science and technology
   i. 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).
   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 48.
    The Parties, on the basis of mutual agreement, can engage in other forms of cooperation in
    science and technology
                                                         23
                                                                                                        *?
 ---pagebreak--- In carrying out such cooperation activities, special attention shall be devoted to the redeployment
of scientists, engineers, researchers and technicians which are QT 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 48
                                        Education and training
 1.   The Parties shall co-operate with the aim of raising the level of general education and
      professional qualifications in the Republic of Moldova , 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 Moldova 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;
              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 Moldova in
        the Community's TEMPUS programme.
                                                 Article 49
                                Agriculture and the agro-industrial sector
        The purpose of cooperation in this area shall be the pursuance of agrarian reform; the
        modernisation, privatisation and restructuring of agriculture, the agro-industrial and services
        sectors in the Republic of Moldova; and the development of domestic and foreign markets for
        Moldovan products, in conditions that ensure the protection of the environment, and taking into
        account the necessity to improve security of food supply. The Parties shall also aim at the
        gradual approximation of Moldovan standards to Community technical regulations concerning
        industrial and agricultural food products including sanitary and phytosanitary standards.
                                                      24
 ---pagebreak---                                              Article 50
                                              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.   The cooperation shall include among others the following areas:
             the environmental impact of energy production supply and consumption, in order to
             prevent or minimise the environmental damage resultingfromthese activities;
             improvement of the quality and security of energy supply, including diversification of
             suppliers, in an economic and environmentally sound manner,
             formulation of energy policy;
             improvement in management and regulation of the energy sector in line with a market
              economy;
              the introduction of the range of institutional, legal, fiscal and other conditions
              necessary to encourage increased energy trade and investment;
              promotion of energy saving and energy effectiveness;
              modernisation, development and diversification of energy infrastructure;
              improvement of energy technologies in supply and end use across the range of energy
              types;
              management and technical training in the energy sector.
                                               Article 51
                                             Environment
  1.  Bearing in mind the European Energy Qiarter and the Declaration of the Luzem Conference
      .1993, the Parties shall develop and strengthen their cooperation on environment and human
       health.
  2.    Cooperation shall aim at combating the deterioration of the environment and in particular :
       - effective monitoring of pollution levels and assessment of environment; system of
         information on the state of the environment;
       - combatting 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 protectionof forests;
        - the conservation of biodiversity, protected areas and sustainable use and management
          of biological resources;
        - land-use planning, including construction and urban planning;
                                                     25
                                                                                                    • rt
 ---pagebreak---     - use of economic and fiscal instruments;
    - 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 :
    - planning for the handling of disasters 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
       m view of achieving sustainable development;
     - environmental impact studies.
                                              Article 52
                                              Transport
 1. The Parties shall develop and strengthen their cooperation in the field of transport
 2. This cooperation shall, inter alia, aim at restructuring and modernising transport systems and
    networks in the Republic of Moldova and developing and ensuring, where appropriate,
    compatibility of transportation systems in the context of achieving a more global transport
    system.
                                                    26
                                                                                                   /;
 ---pagebreak--- The cooperation shall include, inter alia :
- the modernising of management and operations of road transport, railways-, ports and airports
- modernisation and development of railways, waterways, road, port, airport and air navigation
  infrastructure including the modernisation of major routes of common interest and the trans-
  European links for the above modes;
- 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 privatisation of the transport sector.
                                               Article 53
                              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;
       encourage 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 telecommunications and postal services
       and for the use of a radiofrequencyspectrum;
        training in the field of telecommunications and postal services for operations in market
        conditions.
                                                Article 54
                                            Financial Services
  Cooperation shall in particular aim at facilitating the involvement of the Republic of Moldova in
  universally accepted systems of mutual settlements. Technical assistance shall focus on:
         the development of banking andfinancialservices, the development of common market of
         credit resources, the involvement of the Republic of Moldova in universally accepted
          systems of mutual settlements;
         the development of the fiscal system, fiscal institutions in the Republic of Moldova and the
          exchange of experience and personnel training onfiscalmatters;
         the development of insurance services, which would inter alia create a favourable framework
         for the Community's companies' participation in the establishment ofjoint ventures in the
                                               . 2 7
                                                                                                      /
 ---pagebreak---      insurance sector in the Republic of Moldova, as well as the development of export credit
     insurance.
This cooperation shall in particular contribute to foster the development of relations between the
Republic of Moldova and the EC Member States in the financial services sectqr.
                                             Article 54a
                                           Monetary policy
At the request of the Moldovan authorities, the Community shall provide technical assistance
designed to support the efforts of Moldova towards the strengthening of its own monetary system,
achieving the eventual convertibility of its currency and the gradual adjustment of its policies to
those of the European Monetary System. This will include informal exchange of views concerning
the principles and the functioning of the European Monetary System.
                                              Article 55
                                          Money laundering
 1.    The Parties agree on the necessity of making efforts and cooperating in order to prevent the
       use of their financial systems 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 56
                                         Regional development
  1.    The Parties shall strengthen cooperation on regional development and land-use planning.
 2.     To this end, they shall encourage 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
                                                     28
                                                                                                     cX4
 ---pagebreak---                                               Article 57
                                          Social cooperation
1. With regard to health and safety, the parties shall develop cooperation between them with the
    aim of improving 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;
     -     modernisation 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 promotirit, 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 Moldova, .
      These reforms shall aim to develop in the Republic of Moldova methods of protection
      intrinsic to market economies and shall comprise all directions of social protection.
                                                 Article 58
                                                  Tourism
  The Parties shall increase and develop cooperation between them, which shall include:
        facilitating the tourist trade;
        cooperation between official tourism bodies
        increasing the flow of information;
        transferring know-how;
         studying the opportunities for joint operations;
         trainingfortourism development;
                                                      29
                                                                                                      J
 ---pagebreak---                                               Article 59
                                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
      Moldova.
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 (an agency to support SMEs,
             communications, assistance to the creation of a fund for SMEs);
             the development of technology parks.
                                               Article 60
                                  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 Moldova including, where possible, mutual access to databases in full respect
 of intellectual property rights.
                                                Article 61
                                         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, increasing the compatibility of
  consumer protection policies and the organization of seminars and training periods.
                                                 Article 62
                                                 Customs
         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
         Moldova's customs system to that of the Community.
                                                     30
                                                                                                   -A
 ---pagebreak--- 2.    Cooperation shall include the following in particular:
             the exchange of information
             the improvement of working methods
      -      the implementation of the combined nomenclature and the single
                   administrative document
             the interconnection between the transit systems of the Community and
             Moldova
             the simplification of inspections and formalities in respect of the carriage of goods
             the support in the introduction of modern customs information systems
              the organisation of seminars and training periods.
 3.    Without prejudice to further cooperation foreseen in this Agreement and in particular
       Article 65 the mutual assistance between administrative authorities in customs
       matters of the Parties shall take place in accordance with the provisions of the
       Protocol attached to this Agreement.
                                                 Article 63
                                          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
        Moldova.
        The Parties, in particular, shall cooperate in the following fields:
        adaptation of Moldovan 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.
         To this end the Commumty shall contribute byrenderingtechnical assistance to the Republic
         of Moldova.
                                                  Article 64
                                                  Economics
  The Parties shall facilitate the process of economic reform and the co-ordination of economic
   pohcies by co-operating 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 macro economic performance and prospects.
                                                       31
 ---pagebreak--- The Community shall provide technical assistance so as to;
     assist the Republic of Moldova 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.
                                          Article 65
                                             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 of narcotic drugs and psychotropic substances, including the
prevention of diversion of precursor chemicals, as well as in promoting drug demand prevention
and reduction. The cooperation in this area shall be based on mutual consultation and close
coordination between the Parties over the objectives and measures on the various drug-related
fields.
                                                  32
                                                                                               J
 ---pagebreak---                                TITLE VIII: CULTURAL COOPERATION
                                          Article 66      •
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.
                                            - 33
                                                                                            /?
 ---pagebreak---                          TITLE IX: FINANCIAL COOPERATION
                                            Article 67           *
In order to achieve the objectives of this Agreement and in accordance with Articles 68, 69 and
70 the Republic of Moldova 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 Moldova .
                                            Article 68
 This financial assistance shall be covered within the framework of TACIS foreseen in the
 Community's relevant Council Regulation.
                                             Article 69
 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 Moldova's needs, sectoral absorption capacities and progress with
 reform. The Parties shall inform the Cooperation Council thereof.
                                             Article 70
  In order to permit optimum use of the resources available, the Parties shall ensure that
  Community technical assistance contributions are made in close co-ordination with those from
  other sources such as the Member States, other countries, and international organisations
  such as the International Bank for Reconstruction and Development and the European Bank for
  Reconstruction and Development, as well as the United Nations Development Programme
  (UNDP) and the IMF
                                                    34
 ---pagebreak---               TITLE X : INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
                                             Article 71
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 the framework of the 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 two Parties.
                                             Article 72
 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 Moldova, 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
       Moldova.
                                              Article 73 .
  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 Moldova 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 Moldova.
        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.
                                               Article 74
   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.
                                                    35
 ---pagebreak---                                                Article 75
When examining any issue arising within meframeworkof this Agreement in relation to a
provision referring to an article of the GATT, the Cooperation Council shall take into account to
the greatest extent possible the interpretation that is generally given to the article of the GATT in
question by the Contracting Parties to the GATT.
                                               Article 76
 A Parliamentary Cooperation Committee is hereby established. It shall be a forum for Members
 of the Moldovan Parliament and the European Parliament to meet and exchange views. It shall
 meet at intervals which it shall itself determine.
                                                Article 77
 1.    The Parliamentary Cooperation Committee shall consist of members of the European
        Parliament, on the one hand, and of members of the Moldovan 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 Moldovan Parliament respectively, in accordance with the provisions
        to be laid down in its rules of procedure.
                                                Article 78
  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.
                                                 Article 79
   1. Within the scope of this Agreement, each Party undertakes to ensure that natural and legal
       persons of the other Party have access free of discrimination in relation to its own nationals
       to the competent courts and administrative organs of the Parties to defend their individual
       rights and their property rights, including those concerning intellectual, industrial and
       commercial property.
   2.    Within the limits of their respective powers, the Parties:
         shall encourage the adoption of arbitration for the settlement of disputes arising out of
         commercial and cooperation transactions concluded by economic operators of the
         Community and those of Moldova;
                                                      36
                                                                                                      ,4
 ---pagebreak---      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 1 Oth June 195 8.
                                               Article 80
Nothing in the 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 o£ 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.
                                                Article 81
  1.    In the fields covered by this Agreement and without prejudice to any special provisions
        contained therein:
        the arrangements applied by the Republic of Moldova 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 Moldova shall not
         give rise to any Discrimination between Moldovan nationals, or its companies or firms.
  2.     The provisions of Paragraph I are without prejudice to therightof the Parties to apply the-
         relevant provisions of their legislation to tax payers who are not in identical situations as
         regards their place of residence.
                                                      37
                                                                                                       -Jt
 ---pagebreak---                                               Article 82
1. Each of the two 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 an conciliator; the other Party
    must then appoint a second conciliator within two months. For the application of this
    procedure, the Community and the Member States shall be deemed to be one Party to the
    dispute.
    The Cooperation Council shall appoint a third conciliator.
    The conciliator's recommendations shall be taken by majority vote. Such recommendations
     shall not be binding upon the Parties.
                                               Article 83
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, 14,
 82 and 87a.
                                                Article 84               t   .
 Treatment granted to the Republic of Moldova hereunder shall in no case be more favourable
 than that granted by the Member States to each other.
                                                 Article 85
  For the purposes of this Agreement, the term MPartiesM shall mean the Republic of Moldova 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 86
  Insofar as matters covered by this Agreement are covered by the European Energy Charter Treaty
  and Protocols thereto, such Treaty and Protocols shall upon entry into force apply to such matters
  but only to the extent that such application^ provided for therein.
                                                     38
 ---pagebreak---                                               Article 87
This Agreement is concluded for an initial period of 10 , years. The Agreement shall be
automatically renewed year by year provided that neither Party gives the other Party written
notice of denunciation of the Agreement six months before it expires.
                                              Article 87a
 1. The Parties shall take any general or specific measures required to fulfil their obligations under
     the Agreement. They shall see to it that the objectives set out in the Agreement are attained.
 2. If either Party considers that the other Party has failed to fulfil an obligation under the
     Agreement, it may take the appropriate measures. Before so doing, except in cases of special
     urgency, it shall supply the 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 the Agreement These measures shall be notified immediately to the
      Cooperation Council if the other Party so requests.
                                               Article 88
 Annexes I, H, HI, IV, and V together with the Protocol on mutual assistance between
  administrative authorities in customs matters shall form an integral part of this Agreement.
                                                Article 89
  This Agreement shall not, until equivalentrightsfor 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 Moldova on the other except in
  areas falling within Community competence and without prejudice'to the obligations of Member
  States resultingfromthis Agreement in areasfellingwithin their competence.
                                                 Article 90
  This Agreement shall apply, on the one hand, to the territories in which the treaties establishing
   the European Economic Community, the European Atomic Energy Community and the
   European Coal and Steel Community are applied and under the conditions laid down in those
   Treaties and, on the other hand, to the territory of the Republic of Moldova.
                                                      39
                                                                                                       J
 ---pagebreak---                                              Article 90a
The Secretary-General of the Council of the European Union shall be the depository of this
Agreement.                                            .   '     •    •     .     '
                                              Article 91
This Agreement is drawn up in one copy in the Danish, Dutch, English, French, German, Italian,
Spanish, Greek, Portuguese and Moldovan languages, each of these texts being equally
authentic.
                                              Article 92
 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 each other 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 Moldova 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.
                                               Article 93
  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 1994 by
  means of an interim agreement between the Community and Moldova, the Contracting Parties
  agree that, in such circumstances, the term "date of entry into force of the Agreement" shall mean
  the date of entry mto force of the interim Agreement
                                                     40
                                                                                                      Jr
 ---pagebreak---                                        LIST OF ANNEXES
Annex I       Indicative list of advantages granted by the Republic of Moldova to the other
              Indepedent States in accordance with Article 8
Annex II       Exceptional measures which derogate from the provisions of Article 11.
Annex III      IPR conventions (Article 38).
Annex IV       Community reservations in accordance with Article 23 paragraph lb
Annex V        Moldovan Reservations in accordance with Article 23 paragraph 2a
                                         PROTOCOL
Protocol on mutual assistance in customs matters.
                                                 41
                                                                                            1
 ---pagebreak---                                                            ANNEX I
            Indicative list of advantages granted by the Republic of Moldova to the Independent States in
            accordance with Article 8.3.
            1. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
                Russia, Ukraine, Uzbekistan.
                No import duties are implemented.
                No export duties are implemented as regards goods delivered under clearing and interstate
                agreements within the volumes stipulated in these agreements.
                No VAT is applied on export and import. No excise is applied on export.
                Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
                Russia, Ukraine, Uzbekistan - export quotas for deliveries of products under annual interstate
                trade and cooperation agreements are opened in the same way as for deliveries for state needs.
             2. Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
                 Russia, Ukraine, Uzbekistan -           .
                 Payments could be made in national currency of these countries or any other currencies
                 accepted by Moldova or these countries.
   *2*"3T '      RuBsjaaqplamentJ mulil lu m nlo in iuublca-or lei-                                              ^
                 Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania, Ukraine, Turkmenistan - special ^ c
                 system of non-commercial operations, including payments resulting from these operations.
•>":*        3. Armenia, Belarus, E^eata, Georgia, Kazakhstan, Litfrtfania, Ukraine, Turkmenistan - specially
                 system of current payments.                                                                     >
X<2          4. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Lithuania» Ukraine, Turkmenistan - special**^
                 price system in trade with some raw materials and semi-finished products.                         j
             5. Armenia, Belarus, Estonia, Georgia, Kazakhstan, Litiuiama, Ukraine, Turkmenistan - special > Jr'
                 conditions of transit.                                                                           £
             6. Armenia, Belarus, Es^enw, Georgia, Kazakhstan, -Littaama, Ukraine, Turkmenistan - special ' J
                 conditions of customs procedures.                                                             ^*y
    > *r
                                                               42
                                                                                                                   J
 ---pagebreak---                                               ANNEX II
             Exceptional measures which derogatefromthe provisions of Article 11
1.  Exceptional measures which derogate from the provisions of Article 11 may be taken by
    Moldova in the form of quantitative restrictions on a non-discriminatory basis.
2.  Thèse measures may only concern infant industries, or certain sectors undergoing
    restjnictiiring or facing serious difficulties, particularly where these difficulties produce
    important social problems.
3.  The total value of imports of the products which are subject to these measures may not
    exceed 15 % of total imports from the Community during the last year, prior to the
    introduction of any quantitative restrictions for which statistics are available.
    These provisions shall not be circumvented by increased tariff protection on the imported -
    goods concerned.
4.   These measures may only be apphed during a transitional period ending 31st December
     1998 unless parties agree otherwise, or when Moldova becomes a contracting Party to
     GATT whichever is earlier.
 5.  Moldova shall inform the Cooperation Council of any measures it intends to take under the
     terms of this present Annex, and, at the request of the Community, consultations shall be
     held in the Cooperation Council on such measures and the sectors to which they apply
     before they enter into force.
                                                   43
                                                                                                  ^ \
 ---pagebreak---                                               ANNEX III
                                      IPR conventions (Article 3 §)
1.   Paragraph 2 of Article 38 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     conœming the International
            Registration of Marks (Madrid, 1989);
            Nice Agreement conœrning the International Classification of Goods and Services for
            the purposes of the Registration of Marks (Geneva 1977, amended 1979);
            the 1991 Act of the International Convention for the Protection of New
            Varieties of Plants (UPOV).
 2.   The Cooperation Council may recommend that paragraph 2 of Article 38 shall apply to
      other multilateral conventions. If problems in the area of intellectual, industrial, and
      commercial property affectmg trading conditions were to occur, urgent consultation shall 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 form the following
      multilateral conventions:
             Budapest Treaty on the International Recognition of the Deposit of Micro-organisms
             for the purposes of Patent Procedures (1977, modified in 1980);
             Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967 and
             amended in 1979);
             Madrid Agreement concerning the International Registration of Marks (Stockholm
             Act, 1967, and amended in 1979);
             Patent Cooperation Treaty (Washington 1970, amended and modified in 1984);
  4.   From the entry into force of this Agreement Moldova 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 Moldova to any
       third country on an effective reciprocal basis or to advantages granted by Moldova to
       another country of the former USSR.
                                                  44
                                                                                                   Jf
 ---pagebreak---                                                 ANNEX IV
                 Community reservations in accordance with Article 23 paragraph lb
Mining
In some Member States, a concession may be required for ruining and mineral rights for non-EC
                                                                                    v
controlled companies.
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
 Commumty territory unless otherwise provided for.
 Real estate purchase
 In some Member States, the purchase of real estate by non-EC companies is subject to
 restrictions.
 Audiovisual 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
  hi some Member States market access concerning complementary services and infrastructures is
   restricted.
   Professional services
                                             i.
   Services reserved to natural persons nationals of Member States. Under certain conditions those
   persons may create compames.
   Agriculture
    In some Member States national treatment is no apphcable to non-EC controlled companies which
    wish to undertake an agricultural enterprise. The acquisition of vineyards by non-EC controlled
    compames is subject to notification, or, as necessary, authorisation.
    News agency services
    In some Member States limitations of foreign participation in publishing companies and
    broadcasting companies.
                                                      45
                                                                                                    I
 ---pagebreak---                                             ANNEX V
                           Moldovan reservations to national treatment
Some aspects of the privatisation process are subject to conditions or restrictions.
Acquisition and sale of agriculture lands and forests
Organisation of gambling, betting, lotteries and other similar activities
Banking services:
The minimum capital requirement for a Moldovan subsidiary of a company from third countries
amounts to two million US dollars.
                                                 46
 ---pagebreak---             PROTOCOL
      ON MUTUAL ASSISTANCE
BETWEEN ADMINISTRATIVE AUTHORITIES
       IN CUSTOMS MATTERS
               47
                                   J
 ---pagebreak---                                                  Article 1
                                               Definitions
For the purposes of this Protocol :
a) "customs legislation" shall mean provisions applicable in the territories of thé Parties amr-
   goveming the import, export, transit of goods and their placing under any customs procedure,
   including measures of prohibition, restriction and control and adopted by the said Parties;
b) "customs duties" shall mean all duties, taxes, fees or any other charges which are levied and
    collected in the territories of the Parties, in application of customs legislation, but not including
    fees and charges which are limited in amount to the approximate costs of services rendered;
c) "applicant authority", shall mean a competent administrative authority which has been
    appointed by a Party for this purpose and which makes a request for assistance in customs
    matters;
 d) "requested authority", shall mean a competent administrative authority which has been
     appointed by a Party for this purpose and which receives a request for assistance in customs
     matters;
 e) "contravention", shall mean any violation of the customs legislation as well as any attempted
     violation of such legislation.
                                                   Article 2
                                                    Scope
     The Parties shall assist each other, within their competences, in the manner and under the
     conditions laid down in this Protocol, in ensuring that customs legislation is correctly apphed,
      in particular by the prevention, detection and investigation of contraventions of this legislation.
      Assistance, in customs matters, as provided for in this Protocol, applies to any administrative
      authority of the Parties which is competent for the application of this Protocol. It shall not
      prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover
      information obtained under powers exercised at the request of the judicial authority, unless
      those authorities so agree.
                                                    Article 3
                                            Assistance on request
  1. At the request of the applicant authority, the requested authority shall furnish it with all
       relevant information to enable it to ensure that customs legislation is correctly apphed,
       including information regarding operations noted or planned which contravene or would
       contravene such legislation.
                                                       48
                                                                                                          -3L
 ---pagebreak--- 2. 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.
3. At the request of the applicant authority, the requested authority shall take the necessary steps
     to ensure that a surveillance is kept on :
     (a) natural or legal persons of whom there are reasonable grounds for believing that they are
           contravening or have contravened customs legislation;
      (b) movements of goods notified as possibly giving rise to substantial contraventions of
           customs legislation; .
      (c) means of transport for which there are reasonable grounds for believing that they have
            been, are or may be used in the contravening of customs legislation.
      CcC~
         ' C    ^/o>v     -ÎHÔV*-   ivvfro    &JLJ    'U-cPi^t>v4&_     sy**~~*^       Parv.  -Oprtor^jfr   CueJ-
                                             Spontaneous assistance
                          J7K,>/-   ifUA-x'v   IJO^~. f\îÀr-&^CM^ j                                           L
                                                       ccordance with their laws, rules and other legal <4
                                                       'that to be necessary for the correct application of   J(.
 customs legislation, particularly when they obtam information pertaining to :                                    \
  -    operations which have contravened, contravene or would contravene such legislation and
       which may be of interest to other Parties;
  -    new means or methods employed m realizing such operations;
  -    goods known to be subject to substantial contravention of customs legislation.
                                                      Article 5
                                               Delivery/Notification
   At the request of the applicant authority, the requested authority shall in accordance with its
   legislation take all necessary measures
                      in ordertodeliver all documents,
                      to notify all decisions,
    falling within the scope of this Protocol to an addressee, residing or established in its territory. In
    such a case Article 6, point 3 is applicable.
                                                            49   .
                                                                                                                    /
                                                                                                             A
 ---pagebreak---                                                    Article 6
                               Form and substance of requests for assistance
  1. Requests pursuant to this Protocol shall be made in writing. Documents necessary for the
      execution of such requests shall accompany the request When required because of the urgency
      of the situation, oral requests may be accepted, but must be confirmed in writing immediately.
  2. Requests pursuant to paragraph 1 of this Article shall include the following information :
       (a)   the applicant authority making the request;
       (b)   the measure requested;
       (c)   the object of and the reason for the request;
       (d)   the laws, rules and other legal elements involved;
       (e)   indications as exact and comprehensive as possible on the natural or legal persons
              being the target of the investigations;
       (f) a summary of the relevant facts and of the enquiries already carried out, except in
              cases provided for in Article 5.
   3. Requests shall be submitted in an official language of the requested authority or in a language
        acceptable to such authority.
   4. If a request does not meet the formal requirements, its correction, or completion may be
        demanded ; the ordering of precautionary measures may, however, take place.
                                                      Article 7
                                              Execution of requests
    1. In order to comply with a request for assistance, the requested authority or, when the latter can
        not act on its own, the administrative department to which the request has been addressed by
        this authority, shall proceed, within its competence and available resources, as though it were
         acting on its own account or at the request of other authorities of that same Party, by
         supplying information already possessed, by carrying out appropriate enquiries or by
         arranging for them to be carried out
    2. Requests for assistance will be executed in accordance with the laws, rules and other legal
         instruments of the requested Party.
    3. Duly authorised officials of a Party may, with the agreement of the other Party involved and
         within the conditions laid down by the latter, obtainfromthe offices of the requested authority
         or other authority for which the requested authority is responsible, information relating to the
      ' contravention of customs legislation which the applicant authority needs for the purposes of
         this Protocol.
    4. Officials of a Party may, with the agreement of the other Party involved and within the
          conditions laid down by the latter, be present at enquiries carried out in the latter's territory.
                                                           50,
;>
                                                                                                             J
 ---pagebreak---                                               Article 8
                        Form in which information is to be communicated *
                                                                                t
1. The requested authority shall communicate results of enquiries to the applicant authority in the
   form of documents certified copies of documents, reports and the like.
2. The documents provided for in paragraph 1 may be replaced by computerized information
    produced in any form for the same purpose.
                                               Article 9
                         Exceptions to the obligation to provide assistance
 1. The Parties may refuse to give assistance as provided for in this Protocol, where to do so
    would :
     (a) be likely to prejudice sovereignty, public policy, security or other essential •
          interests; or
     (b) involve currency or tax regulations other than regulations concerning customs
          duties; or
     (c) violate an industrial, commercial or professional secret
 2. Where the apphcant authority asks for assistance which it would itself be unable to provide if
     so asked, it shall draw attention to that fact in its request It shall then be left to the requested
     authority to decide how to respond to such a request.
 3. If assistance is withheld or denied, the decision and the reasons therefore must be notified to
     the applicant authority without delay.
                                                Article 10
                                  Obligation to observe confidentiality
  1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a
      confidential nature. It shall be covered by the obligation of official secrecy and shall enjoy the
      protection extended to like information under the relevant laws of the Party which received it
      and the corresponding provisions applying to the. Commumty authorities.
  2. Nominative data shall not be transmitted whenever there are reasonable grounds to believe that
      the transfer or the use made of the date transmitted would be contrary to the basic legal
      principles of one of the Parties, and, in particular, if the person concerned would suffer undue
      disadvantages. Upon request, the receiving Party shall inform the furnishing Party of the use
      made of the information supplied and of the results achieved.
  3. Nominative data may only be transmitted to customs authorities and, in the case of need for
      prosecution purposes, to public prosecution and judicial authorities. Other persons or
      authorities may obtain such information only upon previous authorisation by the furnishing
       authority.
                                                      si
                                                                                                          -*-v
 ---pagebreak--- 4. The furnishing Party shall verify the accuracy of the information to be transferred. Whenever
    it appears that the information supplied was inaccurate or to be deleted, the receiving Party
    shall be notified without delay. The latter shall be obliged to carry out the correction or
    deletion.
5. Without prejudice to cases of prevailing public interest, the person concerned may obtain,
    upon request, information on the data stores and the purpose of this storage.
                                               Article 11
                                           Use of information
 1. Information obtained shall be used solely for the purposes of this Protocol and may be used
     within each Party for other purposes only with the prior written consent of the admiriistrative
     authority which furnished the information and shall be subject to any restrictions laid down by
     that authority.
 2. Paragraph 1 shall not impede the use of information in any judicial or admiiustrative
     proceedings subsequently instituted for failure to comply with customs legislation.
 3. The Parties may, in their records of evidence, reports and testimonies and in proceedings and
      charges brought before the courts, use as evidence information obtained and documents
      consulted in accordance with the provisions of this Protocol.
                                                Article 12
                                          Experts and witnesses
 An official of a requested authority may be authorized to appear, within the limitations of the
  authorization granted, as expert or witness injudicial or administrative proceedings regarding the
 matters covered by this Protocol in the jurisdiction of another Party, and produce such objects,
  documents or authenticated copies thereof^ as may be needed for the proceedings. The request for
  an appearance must indicate specifically on what matters and by virtue of what title or
  qualification the official will be questioned.
                                                 Article 13
                                            Assistance expenses
  The Parties shall waive all claims on each other for the reimbursement of expenses incurred
   pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses and to
   interpreters and translators who are not dependent upon public services.
                                                      52,
                                                                                                      J
                                                                                                     v-Pt
 ---pagebreak---                                                   Article 14
                                               Implementation
      1. The management of this Protocol shall be entrusted to the central customs authorities of
         Moldova on the one hand and the competent services of the Commission of the European
         Communities and, where appropriate, the customs authorities of the Member States of the
         European Union on the other. They shall decide on all practical measures and arrangements
         necessary for its application, taking into consideration rules in the field of data protection.
         They may recommend to the competent bodies amendments which they consider be made to
         this Protocol.
      2. The Parties shall consult each other and subsequently keep each other informed of the detailed
          rules of implementation which are adopted in accordance with the provisions of this Protocol.
                                                   Article 15
                                                Complementarity
       1. This Protocol shall complement and not impede the application of any agreements on mutual
          assistance which have been concluded or may be concluded between individual or several
          Member States of the European Union and Moldova. Nor shall it preclude more extensive              ;.
           raiQtnmn.pnnner^^go granted iinrter gnrh agreement»;                                          ^ff
X- JZ
       2. Without prejudice to Article 11, these agreements do not prejudice Community provisions
           governing the communication between the competent services of the Commission and the
           customs authorities of the Member States of any information obtained in customs matters
           which could be of Community interest
                                                         53
                                                                                                                />
 ---pagebreak---                    JOINT DECLARATION CONCERNING ARTICLE 3 bis
 It is the understanding of the Parties that should they proceed to the negotiation of a Free Trade
 Area in accordance with article 3 bis, such negotiations should cover all products traded between
 the Parties.
                                                   54
J*                                                                                           •      •
 ---pagebreak---                 JOINT DECLARATION CONCERNING ARTICLE 13
The Community and the Repubhc of Moldova declare that the text of the safeguard clause does
not grant GATT safeguard treatment
                                           55
                                                                                            A
 ---pagebreak---                   JOINT DECLARATION CONCERNING ARTICLE 14
It is understood that the provisions of Article 14 are neither intended to, nor shall slow down,
hinder or impede the procedures provided for in the respective legislations of the Parties regarding
anti-dumping and subsidies investigations.
                                                  56
                                                                                                     J
 ---pagebreak---                     JOINT DECLARATION CONCERNING A R ^ O y i ; 23
Without prejudice to the reservations listed in Annexes IV and V aaè tq the provisions of Articles
36a and 36d, the Parties agree that the words "in conformity v/ith t h w legislation and regulations"
mentioned in paragraphs 1 and 2 of Article 23 mean that each;Party may regulate the
establishment and operation of companies, on its territory, provided that these regulations do not
create for the establishment and operations of companies of l|ie |l|«^Party any new reservations
resulting in a less favourable treatment than that accorded to th<*r own: companies or to companies
or branches or subsidiaries of companies of any third country. * ù
                                                                 : k-h"r'"- ' . * • ' • "
                                                                          &•*'' '3-
                                                                        ê.
                                                                      h     fi
                                                                           V
                                                                      F ;.4                          - • & *
                                                                            • 4 ~   v       ••-,*k ',. 4
                                                                             «*•&
                                                    57
                                                                               *• '4- , „,.   **
                                                                                                             7
 ---pagebreak---                     JOINT DECLARATION CONCERNING ARTICLE 24
Commercial presence of a Party's internal waterways transport companies in the other Party's
territory shall be governed in accordance with legislation applicable within Member States or
Moldova, until specific more favourable provisions governing such commercial presence can be
agreed upon,-and if such presence is not governed by other legislative instruments binding on the
Parties.
It is understood that a commercial presence shall take the form of subsidiaries or branches as
defined in Article 25.
                                                 58
                                                                                                  //
 ---pagebreak---            JOINT DECLARATION CONCERNING THE NOTION OF "CONTROL"
                               IN ARTICLE 25(b) AND ARTICLE 36
    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 voting rights, or
             the other company has the right to 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. Both Parties consider the criteria in paragraph 2 to be non-exhaustive.
                                                       59
tO* ^i
                                                                                                    J
 ---pagebreak---                  •• JOINT DECLARATION CONCERNING ARTICLE 38
                 »        *        »
The Parties agree that for tW"purpose of the Agreement, intellectual, industrial and commercial
property includes in partifcuia* copyright, including the copyright in computer programs, and
neighbouring rights, therightsrelatingto patents, industrial designs, geographical indications,
including appellations of orçjm, 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 df Industrial Property and protection of undisclosed information on
know-how.            \      * t -** ' ' '
                                   îM
                             >,-_ .)
                                 *' V  *
                                  * * I* I
                                                  60
                           • „* f
                                                                                                   y
 ---pagebreak---                   JOINT DÉCLARATION CONCERNING ARTICLE 87a
The Parties agree, for the purpose of its correct interpretation and its practical apphcation, that
the term "cases of special urgency" included in Article 87a of the Agreement mean cases of
material breach of the Agreement by one of the Parties. A material breach of the Agreement
consists in
a)    repudiation of the Agreement not sanctioned by the general rules of international law
 or
 b)   violation of the essential elements of the Agreement set out in Article 2.
                                                    61
                                                                                                    J
 ---pagebreak---             UNILATERAL DECLARATION BY THE FRENCH REPUBLIC
"La République française note que l'accord de partenariat et coopération avec la République de
Moldavie ne s'applique par aux pays et territoires d'Outre-mer associés à la Communauté
européenne en vertu du traité instituant la Communauté Européenne."
                                                  62
                                                                                               /•'
 ---pagebreak---                 EXCHANGE OF LETTERS
BETWEEN THE COMMUNITY AND THE REPUBLIC OF MOLDOVA
   IN RELATION TO THE ESTABLISHMENT OF COMPANIES
                           63
                                                  J
 ---pagebreak--- A. Letter from Moldova
Dear Sir,
I refer to the Partnership and Cooperation Agreement initialled on           1994.
As I underlined during the negotiations, the Republic of Moldova grants to Community companies
establishing and operating in the Republic of Moldova in certain respects a privileged treatment. I
explained that this reflects the Moldovan policy to promote by all means the establisliment of
Community companies in the Republic of Moldova.
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 compimies, the
 Republic of Moldova shall not adopt measures or regulations which would introduce or worsen
 discrimination of Community companies vis-à-vis Moldovan 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 could acknowledge receipt of this letter.
                                                   For the Government of the Republic of Moldova
                                                   64
                                                                                                    •A
 ---pagebreak--- B. Letter from the Community
Dear Sir,
Thank you for letter of today's date, which reads as follows :
"Dear Sir,
I refer to the Partnership and Cooperation Agreement initialled on           1994.
As I underlined during the negotiations, the Republic of Moldova grants to Commumty compames
establishing and operating in the Republic of Moldova in certain respects a privileged treatment. I
explained that this reflects the Moldovan pohcy to promote by all means the establishment of
 Community companies in the Republic of Moldova.
 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 Moldova shall not adopt measures or regulations which would introduce or worsen
 discrimination of Commumty companies vis-à-vis Moldovan companies or compames from any
 third country as compared to the situation existing on the date of initialling of this agreement.
 I would be obliged if you could acknowledge receipt of this letter."
  I can acknowledge receipt of this letter.
  Please accept, Sir, the assurance of my highest consideration.
                                                      On behalf of the European Communities
                                                     65
                                                                                                      Ji
 ---pagebreak--- Outside the Agreement:
                      Exchange of letters on the consequences of enlargement
                                    Letterfromthe Community
Dear Sir, I refer to the Agreement on Partnership and Cooperation signed today and confirm that
if any amendment to this agreement might become necessary as a result of an enlargement of the
Community, this would become the subject of consultations between the Parties pursuant to
Article 71 and in this context account would be taken, to the extent possible, of the character of
bilateral trade and economic relations between Moldova and acceding States.
 I would be obliged if you could confirm the agreement of Moldova to the content of this letter.
                                                    66
 ---pagebreak---          Outside the agreement
         Unilateral Declaration bv Moldova
         Given the importance of the wine sector for the Moldovan economy, Moldova expresses its wish
^V?- fc>   negotiate with the Community a bilateral agreement/ on trade in wine.                      /
                                                                                                  A
                                                          67
                                                                                                        .J
 ---pagebreak--- Outside the agreement
Declaration bv the Community
The Community undertakes to provide technical assistance in the form of seminars oifother ~&4
appropriate means in order to help Moldovan authorities and economic operators to benefit in full j>
from the advantages agreed under the Community GSP as currently applied to Moldova.               Jj
                    cT<
                                             68
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (94) 477 final
                                                      DOCUMENTS
EN                                                                          11 02
                                 Catalogue number : CB-CO-94-514-EN-C
                                                             ISBN 92-77-81765-8
Office for Official Publications of the European Communities
L-2985 Luxembourg