CELEX: 51995PC0029(02)
Language: en
Date: 1995-02-14
Title: Draft COMMISSION DECISION CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL AND STEEL COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND THE REPUBLIC OF KAZAKHSTAN, OF THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM(95) 29 final
                                          Brussels, 14.02.1995
                                          95/ 0031(ACC)
                               Proposal for a
                                                           95/ 0031(ACC)
                          COUNCIL DECISION
      ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
    INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
      EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
       ATOMIC ENERGY COMMUNITTY, OF THE ONE PART, AND THE
     REPUBLIC OF KAZAKHSTAN, OF THE OTHER PART, ON TRADE AND
                     TRADE-RELATED MATTERS
                      (presented by the Commission)
                                  Draft
                       COMMISSION DECISION
  CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
  AND STEEL COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE
        EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
   COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF
  THE ONE PART, AND THE REPUBLIC OF KAZAKHSTAN, OF THE OTHER
           PART, ON TRADE AND TRADE-RELATED MATTERS
 ---pagebreak---                                   Explanatory memorandum
 1. The attached proposals for Decisions constitute the legal instrument for the conclusion
     by the European Community of the Interim Agreement between the European
     Community, the European Atomic Energy Community and the European Coal and
     Steel Community, on the one hand, and the Republic of Kazakhstan, on the other.
2. Pending signature and ratification of the Partnership and Cooperation Agreement with
    the Republic of Kazakhstan, initialed in Brussels on 20 May 1994, the Commission has,
    in accordance with the negotiating directives adopted by the Council on 18 July 1994,
    negotiated an Interim Agreement with the Republic of Kazakhstan.
3. The Interim Agreement providing for provisional implementation of the part of the
    Partnership and Cooperation Agreement on trade and trade-related measures was
    initialed in Brussels on 22 December 1994, and will be concluded for the period ending
    with the entry into force of the Partnership and Cooperation Agreement.
4. The Interim Agreement suspends, as far as the Republic of Kazakhstan is concerned,
    the trade provisions of the Agreement on Trade and Commercial and Economic
    Cooperation signed on 18 December 1989 between the European Economic
    Community and the European Atomic Energy Community, of the one part, and Union
    of Soviet Socialist Republics, of the other part.
5. The procedures for signing and concluding the Agreement differ between the EC and
    the ECSC.
    The Agreement will be concluded as follows :
    - the Council, after consulting Parliament, will conclude the Agreement on behalf of the
   European Community under Article 113, in conjunction with Article 228 (2), first
   sentence of the EC Treaty by adopting the Decision contained in Annex I;
   - the Commission will conclude the Agreement on behalf of the ECSC by adopting the
   Decision contained in Annex II in accordance with Article 95 of the ECSC Treaty, with
   the unanimous assent of the Council and following consultation of the Consultative
   Committee;
   - 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;
6. The Interim Agreement should be signed in February.
7. The Commission accordingly asks the Council to adopt the proposal contained in
   Annex I and to give its assent to the decision under Annex II.
                                                                                             <L
 ---pagebreak---                                        ANNEX I
Proposal for a Council Decision concerning the conclusion by the European Community
of the Interim Agreement between the European Community, the European Coal and
Steel Community and the European Atomic Energy Community, of the one part, and the
Republic of Kazakhstan, of the other part, on Trade and Trade-Related Matters.
                                                                                    i
 ---pagebreak---                                          Proposal for
                                                                             95/ 003lrAceV
                                                                                         }
                                   COUNCIL DECISION
                                          OF
       ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
     INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
        EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
          ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND THE
                REPUBLIC OF KAZAKHSTAN, OF THE OTHER PART,
                   ON TRADE AND TRADE-RELATED MATTERS
 THE COUNCIL OF THE EUROPEAN UNION,
 Having regard to the Treaty establishing the European Community, and in particular
 Article 113 in conjunction with Article 228 (2), first sentence thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
initialed in Brussels on 20 May 1994, it is necessary to approve the Interim Agreement
between the European Community, the European Coal and Steel Community and the
European Atomic Energy Community, of the one part, and the Republic of Kazakhstan, of
the other part, on trade and trade-related matters signed in           on
HAS DECIDED AS FOLLOWS :
                                          Article 1
The Interim Agreement between the European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and the
Republic of Kazakhstan, of the other part, on trade and trade-related matters, together
with the Protocol and the declarations, are hereby approved on behalf of the European
Community.
These texts are attached to this Decision.
                                          Article 2
The President of the Council shall give the notification provided for in Article 28 of the
Interim Agreement on behalf of the European Community.
Done at Brussels,
                                                                                           it
 ---pagebreak---                                        ANNEX H
Draft Commission Decision concerning the conclusion on behalf of the European Coal
and Steel Community of the Interim Agreement between the European Community, the
European Coal and Steel Community and the European Atomic Energy Community, of
the one part, and the Republic of Kazakhstan, of the other part, on trade and trade-related
matters.
                                                                                            r
 ---pagebreak---                                                 Draft
                                 COMMISSION DECISION
                                            OF
 CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
 AND STEEL COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE
         EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
  COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF
  THE ONE PART, AND THE REPUBLIC OF KAZAKHSTAN, OF THE OTHER
               PART, ON TRADE AND TRADE-RELATED MATTERS
                                          (../.../ECSC)
THE EUROPEAN COMMISSION,
Having regard to the Treaty establishing the European Coal and Steel Community, and in
particular the first paragraph of Article 95 thereof,
Having regard to the Treaty establishing the European Atomic Energy Community and in
particular the second paragraph of Article 101 thereof,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
initialed in Brussels on 20 May 1994, it is necessary to approve the Interim Agreement
between the European Community, the European Coal and Steel Community and the
European Atomic Energy Community, of the one part, and the Republic of Kazakhstan, of
the other part, on trade and trade-related matters signed in      on
Whereas the conclusion of the Interim Agreement is necessary to attain the objectives of
the Community set out in particular in Articles 2 and 3 of the Treaty establishing the
European Coal and Steel Community and whereas the Treaty did not make provision for
all the cases covered by this Decision;
Having consulted the Consultative Committee and with the assent of the Council,
HAS DECIDED AS FOLLOWS :
                                            Article 1
The Interim Agreement between European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and the
Republic of Kazakhstan, of the other part, on trade and trade-related matters, together
with the Protocol and the declarations, are hereby approved on behalf of the European
Coal and Steel Community.
These texts are attached to this Decision.
                                                                                         C
 ---pagebreak---                                        Article 2
The President of the Commission shall give the notification provided for in Article 28 of
the Interim Agreement on behalf of the European Coal and Steel Community and the
European Atomic Energy Community.
Done at Brussels,
                                          10
                                                                                          >
 ---pagebreak---                                          FINAL ACT
 The plenipotentiaries of the EUROPEAN COMMUNITY, the EUROPEAN COAL AND
 STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY,
 hereinafter referred to as "the Community", of the one part, and
 the plenipotentiaries of THE REPUBLIC OF KAZAKHSTAN, of the other part,
 meeting at          on          for the signature of the Interim Agreement on trade and
trade-related matters between the European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and the
Republic of Kazakhstan, of the other part, hereinafter referred to as the Agreement, have
adopted the following texts :
the Interim Agreement and the Protocol on mutual assistance in customs matters.
The plenipotentiaries of the Community and the plenipotentiaries of the Republic of
Kazakhstan have adopted the texts of the Joint declarations listed below and annexed to
this Final Act :
Joint Declaration on Article 7 of the Agreement
Joint Declaration on Article 14 of the Agreement
Joint Declaration on Article 27 of the Agreement
The plenipotentiaries of the Community have taken note of the declaration listed below
and annexed to this Final Act :
Declaration by the Republic of Kazakhstan concerning the protection of intellectual,
industrial and commercial property rights.
Done at Brussels on
For the Council and the European Commission
For the Republic of Kazakhstan
                                              11
 ---pagebreak---                               INTERIM AGREEMENT
       ON TRADE AND TRADE RELATED MATTERS BETWEEN THE
      EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
  COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY
   OF THE ONE PART AND THE REPUBLIC OF KAZAKHSTAN OF THE
                                   OTHERPART
 The EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL
 COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY,
 hereinafter referred to as "THE COMMUNITY"
 of the one part,
 and THE REPUBLIC OF KAZAKHSTAN
 of the other part,
Whereas an Agreement on Partnership and Cooperation between the European
Communities and Member States, of the one part and the Republic of Kazakhstan of
the other part was signed on           1994;
Whereas the aim of the Partnership and Cooperation Agreement is to strengthen and
widen the relations established previously, notably by the Agreement on Trade and
Commercial and Economic Cooperation between the European Communities and
USSR signed on 18 December 1989;
Whereas it is necessary to ensure the rapid development of trade relations between
the Parties;
Whereas to this end it is necessary to implement as speedily as possible, by means of
an Interim Agreement, the provisions of the Partnership and Cooperation Agreement
concerning trade and trade-related matters;
Whereas the said provisions should, accordingly, provisionally replace the trade
provisions of the Trade and Commercial and Economic Cooperation Agreement;
Whereas it is necessary to ensure that pending the entry into force of the Partnership
and Cooperation Agreement and the establishment of the Cooperation Council, the
Joint Committee set up under the Agreement on Trade and Commercial and
Economic Cooperation may exercise the powers assigned by the Partnership and
Cooperation Agreement to the Cooperation Council;
Whereas these powers are necessary in order to implement the Interim Agreement;
Have decided to conclude this Agreement and to this end have designated as their
plenipotentiaries;
 ---pagebreak--- THE EUROPEAN COMMUNITY :
THE EUROPEAN COAL AND STEEL COMMUNITY :
THE EUROPEAN ATOMIC ENERGY COMMUNITY :
THE REPUBLIC OF KAZAKHSTAN :
Who, having exchanged their Full Powers, found in good and due form,
Have agreed as follows :
                         TITLE I : GENERAL PRINCIPLES
                               TPCA Kazakhstan : Title H
                                         Article 1
                             fPCA Kazakhstan : Article 21
Respect for democracy, principles of international law and human rights as defined in
particular in the United Nations Charter, the Helsinki Final Act and the Charter of Paris
for a New Europe, as well as the principles of market economy, including those
enunciated in the documents of the CSCE Bonn Conference, underpin the internal and
external policies of the Parties and constitute an essential element of partnership and of
the present Agreement.
                            TITLE H : TRADE IN GOODS
                              fPCA Kazakhstan : Title DU
                                         Article 2
                             [PCA Kazakhstan : Article 81
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 related to trade in goods;
   - the rules relating to the sale, purchase, transport, distribution and use of goods on the
     domestic market.
                                                                                               .st^>
 ---pagebreak---  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 facilitate frontier traffic.
 3. The provisions of paragraph 1 shall not apply, during a transitional period expiring on
     the date of the Republic of Kazakhstan acceding to GATT or on the 31.12.1998,
     whichever is earlier, to advantages defined in Annex I granted by the Republic of
     Kazakhstan to other states which have emerged from the dissolution of the USSR.
                                           Article 3
                               fPCA Kazakhstan : Article 91
 1. The Parties agree that the principle of free transit is an essential condition of attaining
    the objectives of this Agreement. In this connection each Party shall secure unrestricted
    transit via or through its territory of goods originating in the customs territory or
    destined for the customs territory of the other Party.
2. The rules described in the Article 5, paragraphs 2, 3, 4 and 5 of the GATT are
    applicable between the two parties.
3. The rules contained in this Article are without prejudice to any special rules relating to
     specific sectors, in particular such as transport, or products agreed between the Parties.
                                          Article 4
                              fPCA Kazakhstan : Article 101
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 stemming
from such a convention have been accepted by the Party in question.
                                          Article 5
                              fPCA Kazakhstan : Article 111
1. Goods originating in the Republic of Kazakhstan shall be imported into the Community
    free of quantitative restrictions without prejudice to the provisions of Articles 7, 10
    and 11 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.
2. Goods originating in the Community shall be imported into the Republic of Kazakhstan
    free of all quantitative restrictions and measures of equivalent effect, without prejudice
    to the provisions of Articles 7, 10 and 11.
                                                                                                --v
 ---pagebreak---                                           Article 6
                              fPCA Kazakhstan : Article 121
Goods shall be traded between the Parties at market-related prices.
                                         Article 7
                              fPCA Kazakhstan : Article 131
 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 injury
    to domestic producers of like or direct competitive products, the Community or the
    Republic of Kazakhstan, which ever is concerned, may take appropriate measures in
    accordance with the following procedures and conditions.
2. Before taking any measures, or in cases to which paragraph 4 applies as soon as
    possible thereafter, the Community or the Republic of Kazakhstan as the case may be
     shall supply the Joint Committee with all relevant information with a view to seeking a
    solution acceptable to both Parties as provided for in Title IV.
3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of
    referral to the Joint 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 Parties shall give priority to those
    which cause least disturbance to the achievement of the aims of this Agreement.
6. Nothing in this Article shall prejudice or affect in any way the taking, by either Party, of
    anti-dumping or countervailing measures in accordance with Article VI of the GATT,
    the Agreement on implementation of Article VI of the GATT, the Agreement related
    on interpretation and application of Articles VI, XVI and XXIII of the GATT or
    related internal legislation.
                                         Article 8
                              [PCA Kazakhstan : Article 141
The Parties undertake to consider development of the provisions in this Agreement on
trade in goods between them, as circumstances allow, including the situation arising from
the accession of the Republic of Kazakhstan to the General Agreement on Tariffs and
Trade. The Joint Committee referred to in Article 16 may make recommendations on such
developments to the Parties which could be put into effect, where accepted, by virtue of
agreement between the Parties in accordance with their respective procedures.
                                                                                                (I
 ---pagebreak---                                          Article 9
                              IPCA Kazakhstan : Article 151
  The Agreement shall not preclude prohibitions or restrictions on imports, exports or
  goods in transit justified on grounds of public morality, public policy or public security;
 the protection of health and life of humans, animals or plants; the protection of natural
  resources; the protection of national treasures of artistic, historic or archaeological value
 or the protection of intellectual, industrial and commercial property or rules relating to
 gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of
 arbitrary discrimination or a disguised restriction on trade between the Parties.
                                        Article 10
                              FPCA Kazakhstan : Article 161
 This Title II 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 15 October 1993 and applied provisionally since 1st January 1993.
                                        Article 11
                             fPCA Kazakhstan : Article 171
 1. Trade in products covered by the Treaty establishing the European Coal and
     Steel Community shall be governed by the provisions of this Title II, with the
     exception of Article 5 and upon entry into force, by the provisions of an agreement on
     quantitative arrangements concerning exchange of ECSC steel products.
2. A contact group on coal and steel matters shall be set up, comprising representatives of
    the Community on the one hand, and representatives of the Republic of Kazakhstan 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 12
                             IPCA Kazakhstan : Article 181
Trade in nuclear materials shall be subject to the provisions of a specific Agreement
to be concluded between the European Atomic Energy Community and the Republic
of Kazakhstan.
                                                                                                n
 ---pagebreak---      TITLE m : PAYMENTS. COMPETITION AND OTHER ECONOMIC
                                    PROVISIONS
                              fPCA Kazakhstan : Title IV!
                                       Article 13
                             1PCA Kazakhstan : Article 421
 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 Kazakhstan connected with the movement of goods, made in
 accordance with the provisions of the present Agreement.
                                       Article 14
 The Parties agree to examine ways to apply their respective competition laws on a
 concerted basis in such cases where trade between them is affected.
                                      Article 15
                            TPCA Kazakhstan : Article 431
Pursuant to the provisions of this Article and of Annex II, the Republic of Kazakhstan
shall continue to improve the protection of intellectual, industrial and commercial property
rights in order to provide, by the end of the fifth year after the entry into force of the
Agreement, for a level of protection similar to that provided in the Community by
Community acts, in particular the ones referred to in Annex II, including comparable
means of enforcing such rights.
                                      Article 16
Mutual assistance between administrative authorities in customs matters of the
Parties shall take place in accordance with the protocol annexed to the agreement.
    TITLE IV : INSTITUTIONAL. GENERAL AND FINAL PROVISIONS
                             FPCA Kazakhstan : Title 1X1
                                      Article 17
The Joint Committee set up by the Agreement on Trade and Commercial                and
Economic Cooperation signed between the European Economic Community                and
USSR on 18 December 1989 shall perform the duties assigned to it by                this
Agreement until the Cooperation Council provided for in Article 77 of               the
Partnership and Cooperation Agreement is established.
                                      Article 18
The Joint Committee may, for the purposes of attaining the objectives of the
Agreement, make recommendations in the cases provided for therein.
It shall draw up its recommendations by agreement between the two Parties.
                                              6
                                                                                             /i
 ---pagebreak---                                             Article 19
                               fPCA Kazakhstan : Article 811
 When examining any issue arising within the framework of this Agreement in relation to a
 provision referring to an article of the GATT, the Joint Committee 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 General Agreement.
                                            Article 20
                               1PCA Kazakhstan : Article 851
 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 the Republic of Kazakhstan;
      - 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 10th June 1958.
                                           Article 21
                               1PCA Kazakhstan : Article 861
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 of, or trade in arms, munitions or war materials
       or to research, development or production indispensable for defence purposes,
       provided that such measures do not impair the conditions of competition in
       respect of products not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
       disturbances affecting the maintenance of law and order, in time of war or
       serious international tension constituting threat of war or in order to carry out
       obligations it has accepted for the purpose of maintaining peace and
       international security;
(d) which it considers necessary to respect its international obligations and
       commitments in the control of dual use industrial goods and technologies.
                                                                                                 if
 ---pagebreak---                                           Article 22
                               fPCA Kazakhstan : Article 871
 1.    In the fields covered by this Agreement and without prejudice to any special
       provisions contained therein :
       - the arrangements applied by the Republic of Kazakhstan 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
      Kazakhstan shall not give rise to any discrimination between Kazakh nationals,
       or its companies or firms.
 2.    The provisions of Paragraph 1 are without prejudice to the right of the Parties
      to apply the relevant provisions of their fiscal legislation to tax payers who are
       not in identical situations as regards their place of residence.
                                          Article 23
                              TPCA Kazakhstan : Article 881
 1. Each of the two Parties may refer to the Joint Committee any dispute relating to
    the application or interpretation of this Agreement.
2. The Joint Committee 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 Joint Committee 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 24
                              fPCA Kazakhstan ; Article 891
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 7, 22 and 27.
                                         Article 25
                              TPCA Kazakhstan : Article 901
Treatment granted to the Republic of Kazakhstan hereunder shall in no case be more
favourable than that granted by the Member States to each other.
                                                                                         /c
 ---pagebreak---                                         Article 26
                            TPCA Kazakhstan ; Article 921
 Insofar as matters covered by this Agreement are covered by the Energy Charter
 Treaty and Protocols thereto, such Treaty and Protocols shall upon entry into force
 apply to such matters but only to the extent that such application is provided for
 therein.
                                        Article 27
     This Agreement shall be applicable until the entry into force of the Partnership
     and Cooperation Agreement signed on               1994.
    Either Party may denounce this Agreement by notifying the other Party. This
     Agreement shall cease to apply six months after the date of such notification.
                                       Article 28
                           fPCA Kazakhstan : Article 941
 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 Joint Committee 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 Joint Committee if the other Party so requests.
                                       Article 29
Annexes I, II, and the Protocol on mutual assistance between administrative
authorities in customs matters shall form an integral part of this Agreement.
                                       Article 30
                           fPCA Kazakhstan : Article 971
This Agreement shall apply, on the one hand, to the territories in which the treaties
establishing the European 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
Kazakhstan.
                                       Article 31
                           TPCA Kazakhstan : Article 981
The Secretary-General of the Council of the European Union shall be the depositary
of this Agreement.
 ---pagebreak---                                       Article 32
                           TPCA Kazakhstan : Article 991
This original of the Agreement, of which the Danish, Dutch, English, French,
German, Italian, Spanish, Greek, Portuguese and Kazakh languages, are equally
authentic, shall be deposited with the Secretary-General of the Council of the
European Union.
                                      Article 33
                          rPCA Kazakhstan : Article 1001
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 above have
been completed.
Upon its entry into force, and as far as relations between the Republic of Kazakhstan
and the Community are concerned, this Agreement shall replace Article 2, Article 3,
except for the fourth indent thereof, and Articles 4 to 16 of 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.
                                            10
                                                                                         /*
 ---pagebreak---                                      List of annexes
• Annex I : Exceptions to MFN for advantages granted among Independent States
 (article 2)
• Annex II : IPR conventions (article 14)
 Protocol nr 1 on the mutual assistance in customs matters
 Joint Declaration concerning Article 7
 Joint Declaration concerning Article 14
 Joint Declaration concerning Article 27
 Unilateral declaration by the Republic of Kazakhstan concerning the protection of
 intellectual, industrial and commercial property rights
                                            11
                                                                                   (1
 ---pagebreak---                                       ANNEX I
Indicative list of advantages granted by the Republic of Kazakhstan to the
Independent States in accordance with Article 2, paragrah 3.
1. Armenia, Belarus, Estonia, Georgia, Lithuania, Moldova, Ukraine,
    Turkmenistan, Russia
    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.
   All Independent States - 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, Belarus, Estonia, Georgia, Lithuania, Moldova, Ukraine,
   Turkmenistan, -
   Payments could be made in roubles
   Russia - payments could be made in roubles or tenge.
   All Independent States - special system of non-commercial operations, including
   payments resulting from these operations.
3. All Independent States - special system of current payments.
4. All Independent States - special price system in trade with some raw materials
   and semi-finished products.
5. All Independent States - special conditions of transit.
6. All Independent States - special conditions of customs procedures.
                                             12
                                                                                   %»
 ---pagebreak---                                         ANNEX n
     Intellectual, Industrial and Commercial Property conventions (Article 14)
 1. Community acts referred to in Article 14.
    - First Council Directive 89/104/EEC of 21 December 1988 to approximate the
       laws of the Member States relating to trade marks.
    - Council Directive 87/54/EEC of 16 December 1986 on the legal protection of
       topographies of semi-conductor products.
    - Council Directive 91/250/EEC of 14 May 1991 on the legal protection of
       computer programs.
    - Council Regulation (EEC) No 1768/92 of 18 June 1992 concerning the
       creation of a supplementary protection certificate for medicinal products.
    - Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of
       geographical indications and designations of origin for agricultural products and
       foodstuffs.
    - Council Directive 93/83/EEC of 27 September 1993 on the coordination of
      certain rules concerning copyright and rights related to copyright applicable to
       satellite broadcasting and cable retransmission.
    - Council Directive 93/98/EEC of 29 October 1993 harmonizing the term of
      protection of copyright and certain related rights.
    - Council Directive 92/100/EEC of 19 November 1992 on rental right and
      lending right and on certain rights related to copyright in the field of intellectual
      property.
2. If problems in the area of intellectual, industrial and commercial property as
    addressed in the above Community acts and affecting trading conditions were to
    occur, urgent consultations will be undertaken, at the request of the Community
    or the Republic of Kazakhstan, with a view to reaching mutually satisfactory
    solutions.
                                               13
                                                                                            r/
 ---pagebreak---            PROTOCOL
      ON MUTUAL ASSISTANCE
BETWEEN ADMINISTRATIVE AUTHORITIES
       IN CUSTOMS MATTERS
                14
                                   l'L-
 ---pagebreak---                                             Article 1
                                          Definitions
For the purposes of this Protocol :
a) "customs legislation" shall mean provisions applicable in the territories of the Parties
    governing 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
1. 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 applied, in particular by the prevention, detection and investigation of
   contraventions of this legislation.
2. 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.
                                               15
                                                                                                it
 ---pagebreak---                                             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 applied,
    including information regarding operations noted or planned which contravene or
    would contravene such legislation.
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) place where stocks of goods have been assembled in such a way that there are
         reasonable grounds for supposing that they are intended as supplies for operations
         contrary to the legislation of the other Party;
    (c) movements of goods notified as possibly giving rise to substantial contraventions
         of customs legislation;
    (d) 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.
                                            Article 4
                                    Spontaneous assistance
The Parties shall provide each other, in accordance with their laws, rules and other legal
instruments, with assistance without prior request if they consider that to be necessary for
the correct application of customs legislation, particularly when they obtain information
pertaining to:
- operations which have contravened, contravene or would contravene such legislation
    and which may be of interest to other Parties;
- new means or methods employed in realizing such operations;
- goods known to be subject to substantial contravention of customs legislation.
                                                16
                                                                                                 ts
 ---pagebreak---                                             Article S
                                     Delivery/Notification
At the request of the applicant authority, the requested authority shall in accordance with
its legislation take all necessary measures :
- in order to deliver all documents,
- to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or established in its
territory. In such a case Article 6, point 3 is applicable.
                                            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.
                                                17
                                                                                            2S
 ---pagebreak---                                            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, obtain from the 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.
                                          Article 8
                     Form in which information is to be communicated
1. The requested authority shall communicate results of enquiries to the applicant
    authority in the form of documents certified copies of documents, reports and the like.
2. Thé 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.
                                              18
                                                                                            76
 ---pagebreak---  2. Where the applicant 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 Community
    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.
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
    administrative 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 administrative
    proceedings subsequently instituted for failure to comply with customs legislation.
                                                19
                                                                                                     il
 ---pagebreak---     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 in judicial 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.
                                           Article 14
                                       Implementation
1. The management of this Protocol shall be entrusted to the central customs authorities
   of the Republic of Kazakhstan 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 the Republic of Kazakhstan. Nor
   shall it preclude more extensive mutual assistance granted under such agreements.
                                               20
                                                                                            ij?
 ---pagebreak--- 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.
                                          21
                                                                                  V
 ---pagebreak---                JOINT DECLARATION CONCERNING ARTICLE 7
The Community and the Republic of Kazakhstan declare that the text of the safeguard
clause does not grant GATT safeguard treatment.
                                          22
                                                                                    >
 ---pagebreak---                 JOINT DECLARATION CONCERNING ARTICLE 14
Within the limits of their respective competences, the Parties agree that for the purpose
of the Agreement, intellectual, industrial and commercial property includes in particular
copyright, including the copyright in computer programs, and neighbouring rights, the
rights relating to patents, industrial designs, geographical indications, including
appellations of origin, trademarks and service marks, topographies of integrated circuits
as well as protection against unfair competition as referred to in Article 10 bis of the Paris
Convention for the protection of Industrial Property and protection of undisclosed
information on know-how.
                                            23
                                                                                               "V
 ---pagebreak---                JOINT DECLARATION CONCERNING ARTICLE 27
The Parties agree, for the purpose of its correct interpretation and its practical application,
that the term "cases of special urgency" included in Article 27 of the Agreement means
cases of material breach of the Agreement by one of the Parties. A material breach of the
Agreement consists in
a)   repudiation of the Agreement not sanctioned by the general rules of international law
or
b)   violation of the essential elements of the Agreement set out in Article 1.
                                              24
                                                                                                12.
 ---pagebreak---         Unilateral declaration by the Republic of Kazakhstan concerning the
          protection of intellectual, industrial and commercial property rights
 The Republic of Kazakhstan declares that :
 1. By the end of the fifth year after entry into force of the Agreement, the
    Republic of Kazakhstan shall accede to the multilateral conventions              on
    intellectual, industrial and commercial property rights referred to in Paragraph 2
     of this declaration 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.
2. Paragraph 1 of this declaration concerns the following multilateral conventions:
- Berne Convention for the Protection of Literary and Artistic Works (Paris Act,
     1971);
- International Convention for the Protection of Performers, Producers                of
    Phonograms and Broadcasting Organizations (Rome, 1961);
- Protocol relating to the Madrid Agreement concerning the International
    Registration of Marks (Madrid, 1989);
- Nice Agreement concerning the International Classification of Goods and
    Services for the purposes of the Registration of Marks (Geneva 1977, amended
     1979);
- Budapest Treaty on the International Recognition of the Deposit of Micro-
    organisms for the purposes of Patent Procedures (1977, modified in 1980);
- International Convention for the Protection of New Varieties of Plants (UPOV)
    (Geneva Act, 1978)
3. The Republic of Kazakhstan confirm the importance it attaches to the obligations
    arising from the following multilateral conventions:
    - Paris Convention for the Protection of Industrial Property (Stockholm Act,
       1967 and amended in 1979);
    - Madrid Agreement concerning the International Registration of Marks
       (Stockholm Act, 1967, and amended in 1979);
    - Patent Cooperation Treaty (Washington 1970, amended and modified in 1979
       and 1984);
4. From the entry into force of this Agreement the Republic of Kazakhstan shall
    grant to Community companies and nationals, in respect of the recognition and
    protection of intellectual, industrial and commercial property, treatment no less
    favourable than that granted by it to any third country under bilateral agreements.
5. The provisions of paragraph 4 shall not apply to advantages granted by the
   Republic of Kazakhstan to any third country on an effective reciprocal basis or to
    advantages granted by the Republic of Kazakhstan to another country of the
   former USSR.
                                               25
                                                                                         13
 ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(95) 29 final
                                              DOCUMENTS
EN                                                                       02 U
                                     Catalogue number : CB-CO-95-048-EN-C
                                                             ISBN 92-77-85550-9
Office for Official Publications of the European Communities
L-2985 Luxembourg