CELEX: 51992PC0463
Language: en
Date: 1992-11-13
Title: Proposal for a COUNCIL DECISION concerning the conclusion of a Framework Cooperation Agreement between the European Economic Community and the Andean Pact

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(92) 463 final
                                            Brussels, 13 November 1992
                            Proposal for a
                           COUNCIL DECISION
   concerning the conclusion of a Framework Cooperation Agreement
     between the European Economic Community and the Andean Pact
                    (presented by the Commission)
 ---pagebreak---                                      - 2 -
                            EXPLANATORY MEMORANDUM
1. By its decision of 4 May 1992, the Council authorized the Commission
   to open negotiations with the Cartagena Agreement and its member
   countries, namely Bolivia, Colombia, Ecuador, Peru and Venezuela
   (hereinafter referred to as "the Andean Pact") for a Framework
   Cooperation Agreement, and adopted directives to that end.
2. Negotiations took place over two sessions held   on 24 and 25 June 1992,
   and concluded with the initialling of an          Agreement between the
   European Economic Community and the Andean         Pact. An exchange of
    letters concerning sea transport is annexed to   the Agreement.
3. The following documents, which are not annexed to the Agreement, have
   also been drawn up:
   - an exchange of          letters concerning the possibility of joint
       consultation procedures in appropriate cases. The text of this
       exchange of letters was initialled at the same time as the
       Cooperation Agreement, and is the same as the text of Article 5(3),
       (4), (5) and (6) of the EC/Brazil Agreement. Publication of the
       text of the exchange of letters in the Official Journal is not
       envisaged.
       four unilateral declarations, to be recorded in the minutes of the
       negot iat ions.-
            a unilateral declaration by the Community concerning Article
             13 of the Agreement, on intellectual and industrial property.
            The text will be forwarded to the Council, but not published
             in the Official       Journal. The Community    will  have the
            declaration recorded in the minutes of the negotiations and in
             the minutes of the decision on signing;
             three unilateral declarations by the Andean Pact concerning
            Article 2(2) of the Agreement (consultations on international
             issues of mutual interest), Article 9(2) of the Agreement
             (European Investment Bank) and Article 32 of the Agreement
             (Joint Committee). The texts will not be forwarded to the
            Council, or published in the Official Journal. The Andean Pact
            will have the three declarations recorded in the minutes of
             the negot iat ions.
   - a declaration by the Commission concerning Article 33 of the
       Agreement (Canada Clause). It will be forwarded to the Council,
       but not published in the Official Journal. The Commission will
       have this declaration recorded in the minutes of the Council
       decision on signing.
   - a separate protocol concerning the European Coal and Steel
       Community (Article 34 of the Agreement) will be the subject of a
       written procedure at a later date.
4. The Commission considers the initialled text to be in line with the
   negotiating directives adopted by the Council.
5. As the legal basis for the Agreement includes Article 235 of         the
   Treaty in addition to Article 113, Parliament must be consulted.
6. With a view to the signing and conclusion of this Framework
   Cooperation Agreement between the European Economic Community and the
   Andean Pact, the Commission proposes that the Council adopt the
   attached draft Decision.
 ---pagebreak---                                      - 3 -
                                Proposal for a
                               COUNCIL DECISION
                        concerning the conclusion of
                      a Framework Cooperation Agreement
        between the European Economic Community and the Andean Pact
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 113 and 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas the Community, for the attainment of      its aims in the sphere of
external economic relations, should approve        the Framework Cooperation
Agreement with the Andean Pact,
HAS DECIDED AS FOLLOWS:
                                   Article 1
The Framework Cooperation Agreement between the European Economic Community
and the Andean Pact is hereby approved on behalf of the Community.
The text of the Agreement is annexed to this Decision.
                                   Art icle 2
The President of the Council shall give the notification provided for in
Article 37 of the Agreement1.
                                   Art icle 3
The Commission, assisted by representatives of the Member States, shall
represent the Community in the Joint Committee set up by Article 32 of the
Agreement.
                                   Art icle 4
This Decision shall enter into force on the day following that of        its
publication in the Official Journal of the European Communities.
Done at Brussels,                              For the Council
                                               The President
     The date of entry into force of the Agreement will published in the
     Official   Journal   of  the European     Communities by   the General
     Secretariat of the Council.
 ---pagebreak---                                       - 4 -
                               Exchange of letters
                         Concerning the possibility of
             joint consultation procedures in appropriate cases.
                                   Letter No 1
Sir ,
I should be grateful if you could confirm the following:
1.    The Contracting Parties to the Cooperation Agreement between the
Community on the one hand and the Cartagena Agreement and its Member States
on the other, initialled in Brussels on 26 June 1992, agree to promote
exchanges of information and the holding of consultations on tariffs,
health and technical conditions, associated legislation and practices and
any anti-dumping and countervailing duties that may be applicable.
2.    Without prejudice to their rights and obligations as GATT members, the
Contracting Parties undertake to consult each other on any trade disputes
that might ar ise.
Such consultations shall be organized as soon as possible when requested by
one of the parties. The Contracting Party requesting consultations shall
provide the other with all the information it requires to assess the
situât ion in detai I .
The parties shall endeavour by means of this procedure to resolve any trade
disputes as quickly as possible.
3.    Where, in trade between the Contracting Parties, a product is alleged
to be dumped or subsidized, and this leads to an investigation by the
competent authorities, each Contracting Party undertakes to examine
requests submitted by the other.
The competent     authorities of the Contracting       Parties shall    inform
interested    parties   at   their   request   of  the  essential  facts   and
considerations on the basis of which a decision is to be taken. This
information shall be provided before the definitive conclusions resulting
from the investigation are formulated, leaving the parties concerned
sufficient time in which to defend their interests.
Before applying definitive anti-dumping or countervailing         duties, the
Contracting Parties shall endeavour, wherever          possible,  to find a
constructive solution to the problem.
4.    The provisions laid down in paragraphs (1), (2) and (3) above shall
cease to apply when the new ant i-dumping code and other GATT instruments
that are currently being negotiated in the Uruguay Round enter into force
 in the Andean Pact and Community countries.
 ---pagebreak---                                     - 5 -
                                 Letter No 2
Sir,
I have the honour to acknowledge receipt of your     letter and confirm the
fo11ow i ng:
1.   The Contracting Parties to the Cooperation Agreement between the
Community on the one hand and the Cartagena Agreement and its Member States
on the other, initialled in Brussels on 26 June 1992, agree to promote
exchanges of information and the holding of consultations on tariffs,
health and technical conditions, associated legislation and practices and
any anti-dumping and countervailing duties that may be applicable.
2.   Without prejudice to their rights and obligations as GATT members, the
Contracting Parties undertake to consult each other on any trade disputes
that might ar ise.
Such consultations shall be organized as soon as possible when requested by
one of the parties. The Contracting Party requesting consultations shall
provide the other with all the information it requires to assess the
situât ion in deta iI.
The parties shall endeavour by means of this procedure to resolve any trade
disputes as quickly as possible.
3.   Where, in trade between the Contracting Parties, a product is alleged
to be dumped or subsidized, and this leads to an investigation by the
competent authorities, each Contracting Party undertakes to examine
requests submitted by the other.
The competent authorities of the Contracting Parties shall            inform
interested   parties   at  their   request   of the essential    facts and
considerations on the basis of which a decision is to be taken. This
information shall be provided before the definitive conclusions resulting
from the investigation are formulated, leaving the parties concerned
sufficient time in which to defend their interests.
Before applying definitive anti-dumping or countervailing       duties, the
Contracting Parties shall endeavour, wherever        possible,  to find a
constructive solution to the problem.
4.   The provisions laid down in paragraphs (1), (2) and (3) above shall
cease to apply when the new ant i-dumping code and other GATT instruments
that are currently being negotiated in the Uruguay Round enter into force
in the Andean Pact and Community countries.
 ---pagebreak---                                    -6 -
                    FRAMEWORK AGREEMENT FOR COOPERATION
                  between the European Economic Community
   and the Cartagena Agreement and its member countries, namely Bolivia,
                   Colombia, Ecuador, Peru and Venezuela
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
of the one part,
THE COMMISSION OF THE CARTAGENA AGREEMENT AND THE GOVERNMENTS OF BOLIVIA,
COLOMBIA, ECUADOR, PERU AND VENEZUELA,
of the other part,
CONSIDERING the traditional links of friendship between the Member States
of the European Economic Community (hereinafter referred to as "the
Community") and the Cartagena Agreement and its Member States (hereinafter
referred to as "the Andean Pact"),
REAFFIRMING their commitment to the principles of the United         Nations
Charter, to democratic values and to respect for human rights,
MINDFUL of their mutual interest in the establishment of cooperation in a
number of sectors, and        in particular economic    cooperation, trade
cooperation and development cooperation,
RECOGNIZING the fundamental objective of the Agreement, which is          to
consolidate, deepen and diversify relations between the two Parties,
REAFFIRMING their mutual wish to encourage the development of regional
organizations aimed at promoting economic growth and social progress,
RECOGNIZING that the Cartagena Agreement is a subregionai integration
organization and that the two Parties attach special importance to the
promotion of the Andean integration process,
RECALLING the Joint Declaration issued by the Parties on 5 May 1980, the
Cooperation   Agreement   signed   in  1983,   the   Rome   Declaration   of
20 December 1990,   the   final  communiqué   adopted    in  Luxembourg   on
27 April 1991 by the Community and its Member States and the countries of
the Rio Group and the final communiqué adopted by the ministerial
conference held in Santiago on 29 May 1992,
RECOGNIZING the positive repercussions of the modernization and economic
reform process, and of the liberalization of trade in the Andean countries,
 ---pagebreak---                                    - 7 -
RECOGNIZING the importance attached by the Community to the development of
trade and economic cooperation with developing countries, and mindful of
its guidelines and resolutions concerning cooperation with Asian and Latin
American developing countries,
RECOGNIZING that the Andean Pact is made up of developing countries at
different stages of development, including one landlocked country and a
number of particularly depressed regions,
CONVINCED of the importance of the principles of the GATT and of free
international trade, and of respect for intellectual property rights and
freedom of investment,
RECOGNIZING the importance of international cooperation to assist countries
affected by drug-related problems, and recognizing in this context the
importance of the decision adopted by the Community on 29 October 1990
concerning the Special Cooperation Programme,
RECOGNIZING the special importance attached by both Parties to increased
protection for the environment,
RECOGNIZING the need to promote social rights and in particular the rights
of the most disadvantaged,
HAVE DECIDED to conclude this Agreement and to this end have designated as
their plenipotentiaries:
FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES:
FOR THE COMMISSION OF THE CARTAGENA AGREEMENT:
FOR THE GOVERNMENT OF THE REPUBLIC OF BOLIVIA:
FOR THE GOVERNMENT OF THE REPUBLIC OF COLOMBIA:
FOR THE GOVERNMENT OF THE REPUBLIC OF ECUADOR:
FOR THE GOVERNMENT OF THE REPUBLIC OF PERU:
FOR THE GOVERNMENT OF THE REPUBLIC OF VENEZUELA:
WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
 ---pagebreak---                                      - 8 -
                                  Art icle 1
                      Democratic basis for cooperation
Cooperation ties between the Community and the Andean Pact, and this
Agreement in its entirety, shall be based on respect for the democratic
principles and human rights which guide the domestic and external policies
of both the Community and the Andean Pact and which constitute an essential
component of this Agreement.
                                  Art icle 2
                       Intensification of cooperation
1.   Both Parties hereby undertake to impart renewed vigour to relations
between them. To achieve this essential objective, they resolve to promote
in particular the development of cooperation relating to trade, investment,
finance and technology, taking account of the Andean countries' special
status as developing countries, and to promote the intensification and
consolidation of the process of integration in the Andean subregion.
2.   The Parties acknowledge the value, in the light of the aims of this
Agreement, of consulting each other on international issues of mutual
interest1.
                                   Art icle 3
                             Economic cooperation
1.   The Contracting Parties, taking into account their mutual interest and
medium- and long-term economic objectives, undertake to establish economic
cooperation of the widest possible scope, from which no field of activity
is excluded in principle. The aims of such cooperation shall be in
particular to:
(a)  strengthen and diversify generally their     economic links;
(b)  contribute to the sustainable development of both Parties' economies
     and standards of living-,
(c)  encourage    the expansion    of    trade with    a   view  to   promoting
     diversification and the opening-up of new markets;
(d)  encourage the flow of investment,        the transfer   of technology  and
     greater protection of investment;
(e)  establish conditions conducive      to  job creation   and improved  human
     product ivi ty;
(f)  encourage measures promoting rural development and the improvement of
     urban living conditions;
(g)  stimulate scientific and technological progress, encourage       transfers
     of technology and improve technological skills;
(h)  support the movement towards regional integration;
(i)  exchange information on statistics and methodology.
     Unilateral declaration by the Andean Pact
 ---pagebreak---                                        y -
2.   Without   excluding any area of activity        from   the outset,   ere
Contracting Parties shall, in their mutual interest and with regard to
their respective powers and capacities, determine by common agreement the
spheres to be covered by economic cooperation. Cooperation shall centre
particularly on the following:
(a)  industry;
(b)  agro-industry and the mining sector;
(c)  agriculture and fisheries-,
(d)  energy planning and efficient use of energy;
(e)  protection of the environment and sustainable management     of natural
     resources;
(f)  technology transfers;
(g)  science and technology;
(h)  intellectual property, including industrial property;
(i)  standards and quality criteria;
(j)  services,    including    financial   services,    tourism,   transport,
     telecommunications and information technology;
(k)  information on monetary matters;
(I)  technical, health and plant health regulations;
(m)  consolidation of international coopérât ion bodies;
(n)  regional development and frontier integration.
3.    In the interests of attaining the objectives of economic cooperation,
the Contracting Parties shall, each in accordance with its laws, endeavour
to promote activities including the following:
(a)   increasing contacts between the two Parties by organizing conferences,
     seminars, trade and industry missions and business weeks (meetings of
     businessmen), general, specialized and subcontracting fairs, and
     exploratory missions designed to boost trade and investment flows;
(b)  joint participation of Community companies in fairs and exhibitions
     held in Andean Pact countries, and vice versa:
(c)  provision of technical assistance, notably by seconding      consultants
     and carrying out specific studies;
(d)  research projects and the exchange of scientists;
 ---pagebreak---                                    - 10 -
(e)  promoting Joint ventures, licensing agreements, know-how transfers,
     subcontracting, and other such activities;
(f)  exchanging appropriate information, especially as regards access to
     existing or future databases;
(g)  setting up business networks, particularly in the industrial sector.
                                  Art icle 4
                       Most-favoured-nation treatment
The Contracting Parties hereby grant each other most-favoured-nation
treatment in trade, in accordance with the General Agreement on Tariffs and
Trade (GATT).
The Parties reaffirm their will      to conduct   trade with each   other  in
accordance with that Agreement.
                                  Art icle 5
                              Trade cooperation
1.   The Contracting Parties undertake to develop and diversify trade to
the highest possible degree, taking into account the economic situation of
each of the Parties and facilitating trade transactions between them as far
as possible.
2.   To that end, the Parties shall endeavour to find methods of reducing
and eliminating the obstacles hindering         the development of trade,
especially non-tariff and para-tariff barriers, taking account of work
already accomplished in this field by international organizations.
3.   The Contracting    Parties shall, where appropriate,        assess   the
possibility of setting up mutual consultation procedures.
                                  Art icle 6
                  Means of achieving cooperation in trade
In the interests of bringing about more active cooperation     in trade, the
Contracting Parties shall take measures aimed at:
     promoting meetings, exchanges and contacts between entrepreneurs of
     each of the Parties, with the aim of identifying goods suitable for
     sale on the market of the other Party;
     facilitating cooperation between their customs services, in particular
     as regards vocational training, the simplification of procedures and
     the detection of customs offences-,
 ---pagebreak---      encouraging and providing support for trade-promotion activities SUCH
     as seminars, symposia, fairs and trade and industrial exhibitions,
     trade visits, reciprocal visits, business weeks and other activities;
     providing support for their own organizations and firms, to enable
     them to engage in activities which are of benefit to both sides;
     taking into consideration each other's interests with regard to market
     access for commodities, semi-finished and manufactured goods and with
     regard to the stabilization of world commodity markets, in accordance
     with   the     aims  agreed   within     the   appropriate   international
     organizat ions-,
     examining ways and means of facilitating trade and eliminating
     barriers to trade, taking into consideration the work of international
     organizat ions.
                                   Art icle 7
                         Temporary admission of goods
The Contacting Parties undertake to grant each other tax and duty exemption
for temporary import into their territory of goods, in accordance with
their respective laws and taking account, wherever possible, of existing
international agreements in this field.
                                   Art icle 8
                                    Industry
1.   The   Contracting     Parties    shall    promote    the   expansion   and
diversification of the Andean countries' production base in the industrial
and service sectors, directing their cooperation activities at small and
medium-sized enterprises in particular and encouraging steps to facilitate
access for those enterprises to sources of capital, markets and appropriate
technology, and also fostering Joint ventures.
2.   To that end, within the limits of their responsibilities, the Parties
shall encourage projects and operations promoting:
     the consolidation and extension of the networks established for the
     purposes of cooperation;
     increased use of the financial instrument "EC Investment Partners" by,
     inter alia, greater use of Andean Pact financial institutions;
     cooperation between firms, such as joint ventures, subcontracting,
     transfers of technology, licensing, applied research and franchising-,
     the setting-up of an EC-Andean Pact Business Council and other bodies
     conducive to the expansion of ties between them.
 ---pagebreak---                                    - 12 -
                                 Art icle 9
                                 Investment
1.   The Contracting Parties agree:
     to promote, so far as their powers, rules and regulations and policies
     permit, an increase in mutually beneficial investment;
     to improve the climate for such investment by seeking agreements on
     investment promotion and protection between the Community's Member
     States and the Andean Pact countries based on the principles of non-
     discrimination and reciprocity.
2.    in pursuit of these objectives, the Contracting Parties         shall
endeavour to stimulate investment promotion, inter alia by means of:
     seminars, exhibitions and visits by company directors;
     training businessmen with a view to setting up investment projects;
     technical assistance for joint investment;
     measures under the EC Investment Partners programme.
3.   Cooperation in this field may involve public, private, national or
multilateral bodies, including regional financial institutions such as
"Corporacion Andina de Fomento" (CAF) and "Fondo Latinoamericano de
Réservas" (FLAR) 1 .
                                 Article 10
                 Cooperation between financial institutions
The Contracting Parties shall endeavour to foster, according to their needs
and within the framework of their respective programmes and legislation,
cooperation between financial institutions in the form of:
     exchanges of information and experience in fields of mutual interest
     (inter alia by means of seminars, conferences and workshops);
     exchanges of consultants;
     technical assistance.
     exchanges of information in the fields of statistics and methodology.
     Unilateral declaration of   the Andean Pact   concerning  the European
     Investment Bank (EIB).
 ---pagebreak---                                      - 13 -
                                   Article 11
                            Science and technology
1.   In accordance with their mutual interest and the aims of their
policies on science, the Contracting Parties undertake to promote
cooperation in science and technology aimed in particular at:
     encouraging exchanges of Community and Andean Pact scientists;
     establishing    permanent     links   between     their    scientific    and
     technological communities;
     promoting mutually beneficial transfers of technology;
     encouraging ties between research centres on both sides with a view to
     finding joint solutions to problems affecting both Parties;
     implementing measures with a view       to achieving    the goals of    both
     Parties' research programmes;
     building    up  research   capacities    and   stimulating    technological
     innovât ion;
     creating opportunities for economic, industrial and trade cooperation-,
     promoting relations between academic and research         institutions   and
     the manufacturing sectors of both Parties;
     facilitating exchanges     of   information   and   reciprocal   access   to
     information networks.
2.   The extent of cooperation shall be determined by the desires of the
Parties, which shall Jointly select priority areas.
These shall include:
     advanced scientific and technological research;
     development and management of science and technology policies;
     protection and improvement of the environment;
     rational use of natural resources;
      integration and regional cooperation in science and technology;
     biotechnology;
     new mater ials.
 ---pagebreak---                                       - 14 -
3.    In order to achieve their chosen objectives, the Contracting Parties
shall encourage and foster measures including:
      Joint research projects involving research centres and other qualified
      institutions on both sides;
      advanced training for scientists, through research projects at the
      other Contracting Party's research centres;
      exchanges of scientific information, through the joint organization of
      seminars, workshops, working meetings and conferences attended by
      top-level scientists from both Contracting Parties-,
      distribution of scientific and technological information and know-how.
                                   Article 12
                                    Standards
Without prejudice to their international obligations, within the scope of
their responsibilities, and in accordance with their laws, the Contracting
Parties shall take steps to reduce differences in respect of weights and
measures, standardization and certification by promoting the use of
compatible systems of standards and certification. To that end, they shall
encourage the following in particular:
      establishing links between experts in order to facilitate exchanges of
       information and studies on weights and measures, standards, quality
      control and quality promotion and certification, and to promote the
      development of technical assistance in this field;
      encouraging exchanges and contact        between  bodies  and  institutions
      specializing in these fields;
      promoting measures aimed at achieving mutual        recognition of quality
      cert ificat ion;
      holding consultations in the fields concerned.
                                    Article 13
     Technological development and intellectual and industrial property1
 1.   For the purpose of achieving effective collaboration between Andean
Pact and Community enterprises in the fields of the transfer of technology,
 licensing, Joint investment and venture capital financing, the Parties,
with due respect for         intellectual    and   industrial property rights,
undertake:
       to identify the branches or sectors of industry on which cooperation
      will centre and the means to promote industrial cooperation having an
      advanced technological bias;
       Unilateral    ^laration by the Comn
 ---pagebreak---                                     - 15 -
     to cooperate in encouraging the mobilization of financial resources to
     support joint projects between Andean Pact and Community enterprises,
     the aim of which is to apply new findings in technology to industry,
     to support the training of qualified technological research personnel;
     to promote innovation by means of an exchange of information on the
     programmes each side is conducting for that purpose, periodic
     exchanges of experience derived from the running of            innovation
     programmes and by means of exchange schemes between Andean Pact and
     Community institutions for officials of both Parties responsible for
     promoting innovation.
2.   The Contracting Parties undertake to ensure, so far as their laws,
regulations and policies allow, that suitable and effective protection is
provided for     intellectual and    industrial property rights, including
geographical designations and appellations of origin, reinforcing this
protection where desirable. They also undertake, wherever possible and so
far as their laws, regulations and policies allow, to facilitate access to
the databases and databanks in this field.
                                  Article 14
                                    Mining
The Contracting Parties agree to promote cooperation       in mining, chiefly
through the implementation of operations aimed at:
     encouraging the involvement of enterprises of both Parties             in
     exploration, mining and marketing of their mineral resources;
     setting up activities to encourage small and medium-sized enterprises
     operating in the mining sector;
     exchanging experience and technology relating to mining prospecting,
     exploration and exploitation, and performing joint research to
      increase the opportunities for technological development.
                                  Article 15
                                    Energy
The Contracting Parties recognize the importance of the energy sector to
economic and social development, and are prepared to step up their
cooperation in this field, notably as regards planning, conservation and
the efficient use of energy, and the development of new, commercially
viable   energy    sources. This    improved   cooperation   will  also   take
environmental implications into consideration.
 ---pagebreak---                                        - 16 -
To these ends, the Parties agree to promote:
      the conduct of Joint studies and research, particularly         as regards
     energy forecasts and assessments;
      on-going contacts between energy planners;
      the implementation of joint programmes and projects in this field.
                                     Article 16
                                      Transport
Recognizing the importance of transport to economic development and the
intensification of trade, the Contracting Parties shall adopt the necessary
measures to implement cooperation in respect of all types of transport.
Cooperation shall centre on the following:
      exchanges of information on the Parties' respective transport policies
      and on subjects of common interest;
      economic, legal and technical training programmes aimed at economic
      operators and those in charge of public-sector departments;
      technical assistance, particularly       in connection with  infrastructure
      modernization programmes.
                                     Article 17
                  Information technology and telecommunications
1.    The Contracting Parties recognize that information technology and
telecommunications are vital to economic and social development, and
declare themselves prepared to promote cooperation in fields of common
 interest, chiefly in respect of the following:
      standardization, testing and certification;
      earth    and    space-based   telecommunications such     as   transmission
      networks, satellites, fibre optics, Integrated Service Digital Network
      (ISDN), data transmission, rural and mobile telephone systems;
      electronics and microelectronics;
       information and automation;
      high-definition television;
      research     and   development    in  new   information  technologies   and
      telecommunicat ions-,
      promotion of investment and joint investment.
 ---pagebreak---                                     - 17 -
2.   Such cooperation shall take place in particular through:
     collaboration between experts;
     expert assessments, studies and exchanges of information;
     training of scientists and technicians;
-    formulation and implementation of specific projects of mutual benefit;
     promotion of Joint projects relating to research and development, the
     establishment of information networks and databanks, facilitation of
     access to existing databanks and information networks.
                                  Article 18
                                    Tourism
Within the bounds of their laws, the Contracting Parties shall contribute
to cooperation on tourism in the Andean Pact countries, which is to be
achieved through specific measures including:
     exchanges of information and forward studies;
     assistance in statistics and data processing-,
     training;
     the organization of events;
     the promotion of   investment and joint   investment  in order to expand
     tour ist travel.
                                  Article 19
                               The environment
In instituting cooperation on environmental matters, the Contracting
Parties affirm their will to contribute to sustainable development. They
will endeavour to reconcile the need for economic and social development
with the need for due protection of nature, and will devote particular
attention in their cooperation to the most disadvantaged sections of the
population, to the urban environment and to the protection of ecosystems
such as tropical forests.
To those ends, the Parties shall endeavour      to work together on measures
target ing:
     the    creation  and    improvement    of   public   and   private-sector
     environmental bodies;
     public information and awareness;
     the implementation of studies, projects and technical assistance;
 ---pagebreak---                                     - 18 -
     the organization of meetings, seminars, etc.;
     exchanges of information and experience;
     research projects on disasters and their prevention;
     the development and alternative economic use of protected areas;
     industrial cooperation applied to the environment.
                                  Art icle 20
                             Biological diversity
The Contracting     Parties shall     endeavour   to establish   cooperation,
particularly in the field of biotechnology, aimed at preserving biological
diversity. Cooperation should be based on three criteria, namely.-
socio-economic utility, ecological conservation and the interests of native
peoples.
                                  Article 21
                           Development coopérât ion
With a view to increasing the effectiveness of cooperation in the areas
referred to below, the Parties shall seek to establish a multiannual
programme. Furthermore, the Parties recognize that the desire to see
development better managed involves giving priority to the poorest sections
of the population and the most deprived regions, and entails ensuring that
environmental issues are integrated into the development process.
                                  Article 22
                    Agriculture, forestry and rural areas
The Contracting Parties shall establish cooperation in the           areas of
agriculture, forestry,     agro-industry,     agri-foodstuffs  and    tropical
products.
To these ends, in a spirit of cooperation and goodwill and taking into
account the laws of both Parties on such issues, the Contracting Parties
shalI examine:
     opportunities for developing trade      in agricultural, forestry, agro-
      industrial and tropical products;
     measures governing human and plant health and the environment, and any
     obstacles there might be to trade in this field.
 ---pagebreak---                                    - 19 -
The Contracting Parties shall furthermore endeavour to promote cooperation
on:
     the development of agriculture;
     the protection and sustainable development of forestry resources;
     the agricultural and rural environments;
     training in the field of rural development;
     contact between the Parties' agricultural producers, in the interests
     of facilitating trade operations and investment;
     agricultural research;
     agricultural statistics.
                                 Article 23
                                   Health
The Contracting Parties agree to cooperate to improve public health,
concentrating on the needs of the most disadvantaged sections of the
populat ion.
To these ends they shall seek to develop joint research, technology
transfers, exchanges of experience and technical assistance, in particular
with regard to:
     health service management and administration;
     the development of vocational training programmes;
     the improvement of sanitary conditions (with particular regard      to
     combating cholera) and well-being in urban and rural areas;
     the prevention and treatment of Acquired    Immuno-Deficiency Syndrome
     (AIDS).
                                 Article 24
                             Social development
1.   The Contracting Parties shall establish cooperation to further social
development in the Andean Pact, with the particular aim of improving the
living conditions of the poorest sections of the subregion's population.
 ---pagebreak---                                     - 20 -
 2.  Measures and programmes to implement those aims shall include support,
essentially in the form of technical assistance, in the following fields:
     social services administration;
     vocational training and job-creation;
      the improvement of  living conditions and hygiene    in urban and rural
     areas;
     preventive healthcare;
     protection of children;
     education and assistance programmes for young people;
      the role of women.
                                  Art icle 25
                             Combating drug abuse
Within the scope of their powers, the Contracting Parties undertake to
coordinate and step up their efforts to prevent and reduce the production,
distribution and consumption of illegal drugs.
This cooperation shall include the following:
     projects for the benefit of Andean Pact nationals, providing training,
     education, treatment and rehabilitation for addicts;
     research programmes;
     cooperation measures and projects designed      to encourage alternative
     opportunities, including alternative crops;
     exchanges    of  all   relevant    information,   including   information
     concerning measures relating to money-laundering;
     monitoring trade in essential chemicals;
     drug-abuse prevention programmes.
The Contracting Parties may by mutual agreement extend their cooperation to
other areas.
 ---pagebreak---                                  Article 26
                    Regional integration and cooperation
The Contracting Parties shall take steps to encourage the      integration of
the Andean countries.
Priority shall be given to:
     technical assistance   with  the  technical  and  practical   aspects  of
     intégrât ion;
     promotion of subregional, regional and international trade;
     development of regional environmental cooperation;
     upgrading regional institutions and supporting the implementation of
     joint policies and activities;
     encouraging the development of regional communications.
                                 Article 27
                                 Government
The Contracting Parties shall cooperate in administrative         matters   in
institutional organization and      in the administration of      justice   at
national, regional and municipal levels.
To these ends, they shall take steps aimed at:
     encouraging exchanges of      information and    training   courses   for
     national, regional and municipal officials and employees;
     increasing government efficiency.
                                 Art icle 28
                   Information, communication and culture
The Contracting Parties agree to act jointly    in the fields of   information
and communication in order to:
     promote understanding of the nature and aims of the European Community
     and of the Andean Pact;
     encourage Community and Andean Pact Member States to strengthen their
     cultural ties.
 ---pagebreak---                                      - 22 -
In particular, these measures shall take the form of:
     appropriate exchanges of information on issues of common interest in
     the fields of culture and information;
     organization of cultural events and exchanges.
     preparatory studies and technical assistance for the preservation of
     the cultural heritage;
                                   Art icle 29
                                    Fisheries
The Contracting Parties acknowledge the            importance of achieving a
convergence in their interests in the field of fisheries. They shall
therefore endeavour to intensify and develop cooperation in this regard
by:
     drawing up and implementing special programmes;
     encouraging   the  private  sector    to  participate   in developing  this
     sector.
                                  Art icle 30
                                    Training
Wherever it is clear that improved training would strengthen cooperation,
appropriate action may be taken in areas of mutual interest, taking account
of new technologies in the field.
Such cooperation may take the form of:
     steps to improve the training of technicians and professionals;
     measures with a significant knock-on effect, training for instructors
     and    technical   executives    who    are   already    in  positions   of
     responsibility in public and private-sector enterprises, government,
     the public-service sector and economic administration;
     specific programmes for exchanges of consultants, know-how and
     technology between training institutions in the European and Andean
     countries, with particular emphasis on the technical, scientific and
     vocational sectors;
      literacy programmes linked to health and social development projects.
 ---pagebreak---                                  Article 31
                   Resources for undertaking cooperation
The Contracting Parties undertake to make available, within the limits of
their abilities and through their own channels, the appropriate resources,
including financial resources. In this connection, multiannual programming
will be carried out and priorities determined, taking account of needs and
of the Andean Pact countries' level of development.
In order to facilitate the implementation of the cooperation       measures
specified in this Agreement, the Andean Pact countries shall:
     grant Community experts the guarantees and facilities they require to
     carry out their tasks;
     exempt goods and services imported for the purposes of EC/Andean Pact
     cooperation projects from taxes, duties and other contributions.
These principles will be made explicit in subsequent arrangements, in line
with national legislations.
                                 Article 32
                              Joint Committee1
1.   The Contracting    Parties agree to retain       the Joint   Committee
established pursuant to the 1983 Cooperation Agreement, together with the
Subcommittee on Science and Technology, the Subcommittee on Industrial
Cooperation and the Subcommittee on Trade Cooperation.
2.   The Joint Committee shall:
     see to the proper functioning of the Agreement;
     coordinate activities, projects and specific operations in relation to
     the aims of this Agreement and propose means of implementing them;
     study the development of trade and cooperation between the Parties;
     make any recommendations required to promote the expansion of trade
     and intensify and diversify cooperation;
     seek appropriate methods of forestalling problems which might arise in
     areas covered by the Agreement.
3.   The agendas for Joint Committee meetings shall be set by mutual
agreement. The Committee shall itself establish provisions concerning the
frequency and location of its subsequent meetings, chairmanship, the
establishment of subcommittees additional to those already in existence,
and other issues.
     Unilateral declaration by the Andean Pact concerning     the Junta del
     Acuerdo de Cartagena (JUNAC).
 ---pagebreak---                                     - 24 -
                                  Art icle 33
                               Other agreements
1.    Without prejudice to the provisions of the Treaties establishing the
European Communities, neither this Agreement nor any action taken under it
shall in any way affect the powers of the Member States of the Communities
to undertake bilateral activities with the Andean Pact countries in the
field of economic cooperation or where appropriate to conclude new economic
cooperation agreements with the Andean Pact countries.
2.    Subject to the provisions of paragraph 1 concerning economic
cooperation, the provisions of this Agreement shall replace the provisions
of the agreements concluded between the Member States of the Communities
and the Andean Pact countries where such provisions are either incompatible
with or identical to the provisions of this Agreement.
                                  Article 34
                      European Coal and Steel Community
A separate protocol shall be concluded between the European Coal and Steel
Community and its Member States, on the one hand, and the Cartagena
Agreement and its Member States on the other hand.
                                  Article 35
                           Territorial application
This Agreement shall apply, on the one hand, to the territories in which
the Treaty establishing the Community is applied and under the conditions
laid down in that Treaty and, on the other, to the territory covered by the
Cartagena Agreement.
                                  Article 36
                                     Annex
The Annex shall form an integral part of this Agreement.
                                  Article 37
                      Entry into force and tacit renewal
This Agreement shall enter into force on the first day of the month
following the date on which the Contracting Parties have notified each
other of the completion of the procedures necessary for this purpose. It
 is concluded for a period of five years. It shall be renewed tacitly on a
yearly basis unless one of the Contracting Parties denounces it to the
other Party in writing six months before the date of expiry.
 ---pagebreak---                                  Article 38
                              Authentic texts
This Agreement is drawn up in duplicate in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese and Spanish languages, each text
being equally authentic.
                                 Article 39
                            Future developments
1.   The Contracting Parties may by mutual consent develop and improve this
Agreement with a view to enhancing the levels of cooperation and to
supplementing it by means of agreements on specific sectors or activities.
2.   With regard to the implementation of this Agreement, either of the
Contracting Parties may put forward suggestions for widening the scope of
cooperation, taking into account the experience gained in its application.
 ---pagebreak---                                    - 26 -
                                                              ANNEX
                      EXCHANGE OF LETTERS ON SHIPPING
                                Letter No 1
Sir ,
We should be obliged if you would confirm the following:
When the Agreement on cooperation between the European Community and the
Cartagena Agreement and its Member States was signed, the Parties undertook
to address in the appropriate manner issues relating to the operation of
shipping, particularly where the development of trade might be hindered.
Mutually satisfactory solutions on shipping will be sought, subject to
observance of the principle of free and fair competition on a commercial
basis.
 It has likewise been agreed that such   issues should also be discussed by
the Joint Committee.
Please accept, Sir, the assurance of my highest consideration.
                                              On behalf of the Council
                                              of the European Communities
 ---pagebreak---                                    - 27 -
                                Letter No 2
Sir,
I have the honour to acknowledge    receipt of your   letter and confirm the
fol lowing:
"When the Agreement on cooperation between the European Community and the
Cartagena Agreement and its Member States was signed, the Parties undertook
to address in the appropriate manner issues relating to the operation of
shipping, particularly where the development of trade might be hindered.
Mutually satisfactory solutions on shipping will be sought, subject to the
observance of the principle of free and fair competition on a commercial
basis.
It has likewise been agreed that such    issues should also be discussed by
the Joint Committee."
Please accept, Sir, the assurance of my highest consideration.
                                              For the Cartagena Agreement
                                                 and its Member States
 ---pagebreak---                                       - 28 -
                             FINANCIAL STATEMENT
                           (FINANCIAL IMPLICATIONS)
1. Title of operation: EC-Andean Pact cooperation agreement
2. Budget headings involved:      B7-5020; B7-3015; B6-8200; B7-3010;
                                  B7-3011; B7-3012; B7-3013; B7-3014;
                                  B7-5030; B7-5040; B7-5045
3. Legal basis: Articles 113 and 235
4. Description of operation
   4.1. Specific objectives: to consolidate EC-Andean Pact cooperation and
        to broaden the scope of this cooperation to embrace new fields
   4.2. Duration: 5 years
   4.3. Target population: the people of the Andean countries, especially
          the business sector (as regards industrial cooperation)
5. Classification of expenditure or revenue
   5.1. Compulsory/non-compulsory: non-compulsory
   5.2. Differentiated/non-differentiated: differentiated
   5.3. Type of revenue involved: None
6. Type of expenditure or revenue
   6.1. 100% grant: yes, and sometimes 50% in joint financing operations
   6.2. Grant for joint financing with other sources in the public and/or
        private sector: on occasion
   6.3. Interest rate subsidy: no
   6.4. Other
   6.5. Should the operation prove an economic success, is there provision
        for all or part of the Community contribution to be reimbursed? No
   6.6. Will the proposed operation cause any change in the level of
        revenue? If so, what sort of change and what type of revenue is
         involved? No
7. Financial impact on budget appropriations
   For future budgets, the level of expenditure arising from the
   cooperation agreement will be established using the standard procedure.
8. Anti-fraud measures
   Such expenditure will primarily be implemented by third countries and
   the Commission, which - in agreement with the Court of Auditors -will
   exercise its customary control over expenditure as a whole.
 ---pagebreak---                                              29 -
                                                                     ISSN 0254-1475
                                                              COM (92) 463 final
                                                      DOCUMENTS
EN                                                                              11
                                 Catalogue number : CB-CO-92-487-EN-C
                                                             ISBN 92-77-49028-4
Office fot Official Publications of the European Communities
L-2985 Luxembourg