CELEX: 51979PC0739
Language: en
Date: 1979-12-06
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) CONCLUDING THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND INDONESIA, MALAYSIA, THE PHILIPPINES, SINGAPORE AND THAILAND - MEMBER COUNTRIES OF THE ASSOCIATION OF THE SOUTH-EAST ASIAN NATIONS (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 739
Vol. 1979/0248
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM ( 79 ) 739 final
                         /•
                    /                   ,       ;   Brussels , 6th December 1979
                    I
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                     1.
                      V
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                        PROPOSAL FOR A COUNCIL REGULATION ( EEC )
               CONCLUDING THE COOPERATION AGREEMENT            BETWEEN THE
                   EUROPEAN ECONOMIC COMMUNITY        AND INDONESIA ,
              MALAYSIA , THE PHILIPPINES , SINGAPORE AND THAILAND -
                       MEMBER COUNTRIES OF THE ASSOCIATION OF THE
                              SOUTH-EAST ASIAN NATIONS
                ( submitted to the Council by the Commission)
C0M(79 ) 739 final
 ---pagebreak--- Explanatory Memorandum
1.       By decision of 29 October 1979 » 'the Council authorised the Commission
to open negotiations with Indonesia , Malaysia , the Philippines , Singapore
and Thailand - member countries of the Association of the South-East Asian
Nations , with a view to the conclusion of a cooperation agreement .
2.        In accordance with that Council deoision , and in consultation with
the Article 113 Committee , the Commission conducted negotiations with
Indonesia , Malaysia , the Philippines , Singapore and Thailand' on 8 November
and 29-30 November 1979 *                                               -
                                                                          »
In the course of the negotiations * 4 draft agreement was drawn up.'
The draft agreement t                   ~
 ( i ) is non preferential and of an evolutionary nature ;
 ( ii ) provides for a clause on most favoured nation treatment and a Protocol
          which takes into consideration the fact that one of the Parties
          (Thailand ) has not acceded to the General Agreement on Tariffsand
          Trade ;
 (Lii),aims to consolidate , deepen and diversify commercial relations between
          the two regions and provides for a clause whereby the Parties will seek
                                                     1
          their counterpart 's views on measures likely to have an adverse effect
                                              t
          on trade between the two regions ;
 ( iv) shall bring about economic cooperation in all fields deemed suitable
          by the Parties ; in addition , the chapter on economio cooperation
          contains provisions to give effect to the paragraph of the Ministerial
          Declaration of November 1978 on investment promotion and protection;
(v) recognises the level of development of the ASEAN countries;
(vi ) provides for a Joint Cooperation Committee to supervise and promote
          the various activities envisaged ;
        •                          -V •   -       _                         /
 ---pagebreak---                                      2
      The Heads of the Delegations exchanged the text of the draft Agree­
ment on 30 November 1979 having noted that it correctly represented the
results of the negotiations .
                                              *
3*    The Commission considers that the draft Agreement is acceptable to
the Community. It therefore recommends that the Council *
(i ) pending conclusion of the Agreement takes the necessary decisions in
      connection with the signing thereof;
(ii ) adopts the Regulation, the draft of which is annexed hereto .
 ---pagebreak---                                       PROPOSAL
                        COUNCIL REGULATION (EEC ) NO.
                                      of
            concluding the Cooperation Agreement 'between the European
            Economic Community and Indonesia , Malaysia , the Philippines ,. .
            Singapore and Thailand – member countries of the Association
                            of the South-East' Asian Nations
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
                      0
Having regard to the Treaty establishing the European Eoonomic Community
and in particular Articled 113 and 235 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament^ ,
Whereas the conclusion of the Cooperation Agreement between the European
Economic Community and Indonesia , Malaysia , the Philippines , Singapore and
Thailand - member countries of the Association of the South-East Asian
                                                             ...                 <
Nations appears necessary for the attainment of the ends of the Community
in the sphere of external economic relations ; whereas certain forms t>f
economic cooperation provided for by the Agreement exceed the powers of
action specified in the sphere of the common commercial polioy,
HAS ADOPTED THIS REGULATION %
                                     Article 1
        The Cooperation Agreement between the European Economio Community and
Indonesia , Malaysia , the Philippines , Singapore and Thailand – member
countries of the Association of the South–East Asian Nations , the text of
which is annexed to this Regulation , is hereby concluded on behalf of
the Community .
 ( l ) Opinion delivered on                                           6 * • I• •
 ---pagebreak---                                     - 2 ~
                                  Article 2
       Pursuant to Article 8 of the Agreement , the President of the Council
shall give notification that the procedures necessary for the entry
into force of the Agreement have been completed on the part of the
European Economic Community^.
                                  Article 3
       This Regulation shall enter into force on the day following its
publication in the , Official Journal of the European Communities .
       This Regulation shall be binding in its entirety and direotly
applicable in all Member States .
Done at Brussels .
                                                       Por the Council
          &                                             The President
( l ) The date of entry into force of the Agreement will be punished in the
      Official Journal of the European Communities .
 ---pagebreak---             COOPERATION AGREEMENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY . AND
   JNB9N1IIA# MALAYSIA , THi PHILIPPINBI ,
          S TNG?^PORE AND THAILAND -
 MEMBER COUNTRIES 0? THt ^OCIATION OF THE
           SOUTH-EAST Ait AN NATIONS
 ---pagebreak--- The Council of the European Communities- of the one part , '
and the Governments of Indonesia , Malaysia , the Philippines , Singapore and
Thailand - member countries of the Association of South-East Asian Nations ,
hereinafter referred to as ASEAN ,                 -
of the other part ,
Having regard to the friendly relations , and traditional links between the
member countries of ASEAN and the Member States of the Community ;
       \       ' ' ' '      ;        •     ,./.<•                '
Affirming their common commitment to support mutually the efforts of ASEAN
and the Community to create and to strengthen regional organisations
committed to economic growth / social progress and cultural development and
aiming to provide an element of balance in International relations ;
Inspired by their common will to consolidate , deepen and diversify their
commercial and economic relations to the full extent of their growing
                                                    1
capacity to meet each other 's requirements on the basis of comparative
advantage and mutual benefit ;                                        •
Affirming their willingness to contribute to the expansion of international
trade in order to achieve greater economic growth and social progress ;
Conscious that such cooperation will be between equal partners but will
take into account the level of development of the member countries of
ASEAN and the emergence of ASEAN as a viable and cohesive grouping , which
has contributed to the stability and peace in South-East Asia ;         \
Persuaded that such cooperation should be realised in an evolutionary and
pragmatic fashion as their policies develop ;
Affirming their common will to contribute to a new phase of international .,
economic cooperation and to facilitate the development of their respective
human and material resources, on the basis of freedom , equality and justice ;
 ---pagebreak---                                        - 2
Χ
*  Have decided to conclude a Cooperation Agreement and to this end have
 C designated as their plenipotentiaries :
   The Council of the European Communities
    The Government of the Republic of Indonesia "
    The Government of Malaysia
    The Government of the Republic of the Philippines
    The Government of the Republic of Singapore
    The Government of the Kingdom of Thailand
     Who having exchanged their « ull powers , found in good and due form ,
     HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                      - 3 -
                                   Article 1
                          Most-f ayoured Nation Treatment
The Parties shall , in their commercial relations , accord each other most-
favoured nation treatment in accordance with the provisions of the General
Agreement on Tariffs and Trade , without prejudice , however , to the
provisions of the protocol annexed to this agreement .
 ---pagebreak---                                          - 4 -
                                       Arti c Le 2
                                  Commercial Cc–peration
 1.           The Parties undertake to promote the development and diversification
of their reciprocal commercial exchanges to the highest possible level taking
 into account their respective economic situations ;
 2.           The Parties agree to study ways and means of overcoming , trade
 barriers , and in particular existing non-tariff and quasi tariff barriers ,
taking into account the work of international organisations ;
3.            The Parties shall in accordance with their legislation and in the
 conduct of their policies :              '
 ( a ) cooperate at the international level and between themselves in the
      - solution of " commercial problems of common interest including trade
         related to commodities ;
 ( b ) use their best endeavours to grant each other the widest facilities
         for commercial transactions ;
 ( c ) take fully into account their respective interests and needs for
         improved access for manufactured ,, semi-manufactured and primary products
        as well as the further processing of resources ;
( d ) bring together economic operators in the two regions with the aim of
        creating new trade patterns ;
( e ) study and recommend trade promotion measures likely to encourage
        the expansion of imports and exports ;           .  -
( f ) seek in so far as possible the other parties' , views where measures
        were being considered which could have an adverse effect on trade
        between the two regions .
                                                                   • ••/• •«
 ---pagebreak---                                      - 5 -
                                 ' Article 3
                              Economic Cooperation
                                                                          J
1.      The Parties,in the Light of the complementarity of their interests
and of their long-term economic capabi lities , shal I bring about economic
cooperation in all fields    deemed suitable by the Parties .
Among the objectives of such cooperation shall be :
        - the encouragement of closer economic links through mutually
           beneficial investment ;
        - the encouragement of technological and scientific progress ;
        - the opening up of new sources of supply and new markets ;
        - the creation of new employment opportunities .
2.       As means to such ends , the Parties shall as appropriate encourage
and facilitate inter alia :                  .                 • ,
        - a continuous exchange of information relevant to economic
           cooperation as well as the development of contacts and promotion
           activities between firms and organisations in both regions ;
        - the fostering , between respective firms , of industrial and
           technological cooperation , including mining ;
        - cooperation in the fields of science and technology , energy ,
           environment , transport and communications , agriculture ,
           fisheries and forestry .
In addition the Parties undertake to improve the existing favourable
investment climate inter alia through the extension , by and to all Member
States of the Community and by and to all member countries of ASEAN ,
of investment promotion and protection arrangements which endeavour to
apply the principle of non-discrimination , aim to ensure fair and equitable
treatment and reflect the principle of reciprocity .
 ---pagebreak---                                   - 6 -
3.      Without prejudice to the relevant provisions of the Treaties
establishing the Communities , this Agreement and any action taken there-
under shall in no way affect the powers of any of the Member States of the
Communities to undertake bilateral activities with any of the member
countries of ASEAN in the field of economic cooperation and conclude ,
where appropriate , new economic cooperation agreements with these
countries .
 ---pagebreak---                                   Article 4
                          ' Development Cooperation
1.       The Community recognises that ASEAN is a developing region and will
expand its cooperation with ASEAN in order to contribute to ASEAN' s
efforts in enhancing its self-reliance and economic resilience and social •
wellbeingof its peoples through projects to accelerate the development
of the ASEAN countries and of the region' as a whole .
2.       The Community will take all possible measures to intensify its
support , within the framework of its programmes in favour of non-associated
developing countries , for ASEAN development and regional cooperation .
3.       The Community will cooperate with ASEAN to realise concrete projects
and programmes , inter alia , food production and supplies , development of
the rural sector , education and training facilities and others of a wider
character to promote ASEAN regional economic development and cooperation .
4.       The Community will seek a coordination of the development cooperation
activities of the Community and its Member States in the ASEAN region
especially in relation to ASEAN regional projects .
5.       The Parties shall encourage and facilitate the promotion of
cooperation between sources of finance in the two regions .
 ---pagebreak---                                   Article 5
                         Joint Cooperation Committee
A Joint Cooperation Committee shall be set up to promote and keep under
review the various cooperation activities envisaged between the Parties
in the framework of the Agreement . Consultations shall be held in the
Committee at an appropriate level in-order to facilitate the implementation
and to further the general aims of the present Agreement . The Committee
will normally meet at leasts once a year .  Special meetings of the
 Committee shall be held at the request of either Party .
 The Joint Cooperation Committee shall adopt its own Rules of Procedure
 and programme of work .
 ---pagebreak---                                       - 9 -
                                   Article    6
                                Otner Aa re'errcent s
                                   ,,    ri .
Subject to the provisions concerning economic cooperation in Arti cle . 3(3 )
the provisions of this Agreement shall be substituted for provisions
of Agreements concluded between Member States of the Communities and
Indonesia , Malaysia , the Philippines , Singapore and Thailand to the extent
to which the latter provisions are either, incompatible .with or identical
to the former .                                       .
 ---pagebreak---                                  Article 7
                           Territorial Application
This Agreement shall apply to the territory of Indonesia , Malaysia , the
Philippines , Singapore and Thailand and to the territories in which the'*
Treaty establishing the European Economic Community is applied and under
the conditions laid down in that Treaty .
 ---pagebreak---                                    - 11 -
                                 Article 8
                                  Duration
 This Agreement shall enter into force on the first day of the month
 following the date on which the Parties have notified each other of the
 completion of the procedures necessary for this purpose / and shall remain
 in force for an initial period of five years and thereafter for periods
of two years subject to the right of either party to terminate it by
written notice given six months before the date of expiry of any period .
However , the Agreement may be amended by mutual consent of the Parties
in order to take into account new 'situations .
 ---pagebreak---                                   - 12 -
                                  Article 9
                              Authentic Languages
                              f
This Agreement is drawn up in six copies in the Danish , Dutch , English ,
French , German and Italian languages each of these texts being equally
authentic .
 ---pagebreak---                                           - 13 -
                                         Protocol
                             concerning Article 1 of the Agreement ,
  1.           According to the provisions of this protocol* the European Economic
  Community and a party that is not a contracting party of the General
  Agreement on Tariffs and Trade shall , with* regard to imported or exported
  goods , grant each other most-favoured nation treatment in all matters
  relating to :                                                                    '
          ■   - customs duties and charges of all- kinds including the procedures
            .   for collecting such duties and charges ; '
              - regulations concerning customs clearance , transit , warehousing ,
                or transhipment ;
              - direct or indirect taxes and other internal charges ;
              ~ regulations concerning payments including the allocation of
                foreign currency and the transfer of such payments ;
              - regulations affecting the sale , purchase , transport , distribution
                and use of goods on the internal market .
2.            Paragraph 1 shall not apply to : "         .
 ( a ) advantages granted to neighbouring countries to facilitate frontier-
         zone traffic ;  .
< b ) advantages granted with the object, of establishing a customs union or a
         free trade area or "as, required by such a customs union or free trade
      ' area ;             ■  .
( c ) advantages granted to particular countries in conformity with the
        General Agreement on Tariffs and Trade ;
< d ) advantages which the member countries- of the Association of the South-East
        Asian Nations grant to certain countries in accordance with the Protocol
       on Trade negotiations between developing countries in the content of
        the General Agreement on ^Tariffs and Trade-;
Ce ) advantages granted or to be granted within the framework of ASEAN
       provided these do not exceed those that are granted or may be granted
       within the framework of ASEAN by member countries of ASEAN which are
    ' contracting parties of the GATT .