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EEC-Andean Community Cooperation Agreement

This Agreement is designed to give fresh impetus to relations between the European Economic Community and the countries of the Andean Pact by promoting development of cooperation on trade, investment, finance and technology and deepening and consolidating the Andean subregional integration process.

ACT

Framework Cooperation Agreement between the European Economic Community and the Cartagena Agreement and its member countries, namely the Republic of Bolivia, the Republic of Colombia, the Republic of Ecuador, the Republic of Peru and the Republic of Venezuela - Exchange of letters on shipping.

SUMMARY

This Agreement was signed on 23 April 1993 in Copenhagen between the European Economic Community and the Member States of the Cartagena Agreement referred to below as the Andean Pact. Its main objective is to consolidate, deepen and diversify relations between the Contracting Parties.

Sectors of cooperation

The Contracting Parties undertake to establish economic cooperation of the widest possible scope. The aims are to:

  • strengthen and diversify their economic links;
  • contribute to the sustainable development of their economies and standards of living;
  • encourage the expansion of trade to diversify and open up new markets;
  • encourage the flow of investment, technology transfer and reinforce investment protection;
  • raise the level of employment and improve human productivity in the work sector;
  • promote rural development and improve technological capacity;
  • support the movement towards regional integration;
  • exchange information on statistics and methodology.

To ensure successful cooperation there should be greater contacts, joint participation of Community and Andean Pact companies, technical assistance, research projects, promotion of joint ventures, exchange of information and the formation of business networks.

The Contracting Parties agree to grant each other most-favoured-nation treatment and undertake to diversify their trade. Studies have been carried out to reduce and eliminate obstacles to the development of trade, in particular those relating to customs tariffs. Mutual consultation procedures may be introduced. The Contracting Parties undertake to organise trade promotion activities and cooperation between customs services.

The Contracting Parties also undertake to grant each other tax and duty exemption for temporary import of goods.

In the industrial sector the objective is to diversify the Andean countries' productive base in the industrial and services sector, focusing on small and medium-sized companies, in order to facilitate their access to sources of capital, markets, appropriate technology and joint ventures. Increased use of the "EC Investment Partners" financial instrument, cooperation between economic operators and the setting-up of an EC-Andean Pact business council and other bodies are to be promoted.

The Agreement seeks to promote investment through investment promotion and protection agreements and other measures such as training businessmen, seminars, or technical assistance. Public and private bodies including regional financial institutions such as the "Corporación Andina de Fomento" (CAF) and the "Fondo Latinoamericano de Reservas" (FLAR) may participate in cooperation. Cooperation between financial institutions is also to be promoted through the exchange of information, experience and experts.

Scientific and technological cooperation is designed to promote permanent links and associations, the exchange of scientists and information, transfer of technology, creation of opportunities for economic, industrial and trade cooperation and technological innovation. The priority areas are:

  • 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 materials.

These will be secured through training and exchange and dissemination of information.

As regards standards, the aim is to reduce differences in respect of weights and measures, standardisation and certification by promoting the use of compatible standards and systems of certification.

There should also be greater cooperation on technology transfer, through licensing, joint investment and venture capital financing. This requires the sectors of cooperation to be identified, financial resources to be mobilised, the training of qualified technological and research staff to be supported and innovation to be encouraged.

The Contracting Parties undertake to protect intellectual and industrial property rights, including geographical designations and appellations of origin.

In the mining sector, the Contracting Parties agree to promote cooperation through the involvement of companies in exploration, mining and marketing of mineral resources, the setting-up of activities to encourage small and medium-sized companies operating in the mining sector and the exchange of experience and technology.

Efforts must also be made in the energy sector on energy planning, conservation and rational use of energy and exploration of new sources of energy taking into account environmental implications.

In the field of information technology and telecommunications, standardisation, conformity testing and certification, land and space-based telecommunications, electronics and micro-electronics, information and automation, high-definition television, research and investment promotion should be encouraged.

The Contracting Parties wish to contribute to sustainable development and will endeavour to reconcile the need for economic and social development with the need for environmental protection. Particular attention will be paid to the problems of the urban environment and protection of ecosystems. Joint projects will be undertaken on public information and awareness, information exchange, studies and the development and strengthening of public and private environmental structures.

Biological diversity must be preserved and cooperation in this area must take account of the principles of socio-economic utility, ecological conservation and the interests of native peoples.

In the developmentsector, there is a need for a multiannual programme with priority being given to the poorer sections of the population and the most deprived regions and environmental issues must be taken into account in the development process.

Cooperation will also be established in the agricultural, forestry and rural sectors to increase trade and eliminate any obstacles to trade such as human and plant health, veterinary and environmental measures.

To improve health, the Contracting Parties will endeavour to develop joint research, technology transfer, exchange of experience and technical assistance. Measures will focus on the management and administration of the services concerned, development of vocational training programmes, improvement of sanitation and well-being in urban and rural areas and the prevention and treatment of AIDs.

The objective of cooperation on social development is to improve the living conditions of the poorer sections of the Andean Pact countries' population. Technical assistance is required for social services administration, vocational training and job creation, the improvement of living conditions and hygiene, preventive health care, protection of children, and education and assistance programmes for young people and to promote the role of women.

The Contracting Parties also undertake to coordinate and intensify their efforts to prevent, reduce and abolish the production, distribution and consumption of illegal drugs.

On regional integration and cooperation, priority will be given to technical assistance, the promotion of sub-regional, regional and international trade, regional environmental cooperation, the regional institution building and support for the implementation of joint policies and regional communication.

The Contracting Parties will also cooperation on administration, institutional organisation and justice at national, regional and municipal level through exchange of information and training to improve efficiency.

Greater understanding of the nature and aims of the European Community and the Andean Pact and closer cultural ties are the aims of cooperation on information, communication and culture. Exchanges of information, cultural events, preparatory studies and technical assistance will be organised for this purpose.

In the fisheries sector, the Contracting Parties recognise the importance of achieving a convergence of their interests. Special programmes and greater participation by the private sector are advocated.

There will also be assistance and exchanges of information in the transport, tourism and training sectors.

The Agreement allows Member States of the European Union to undertake bilateral economic cooperation measures with the Andean Pact countries. However the provisions of this Agreement replace those of agreements concluded between the Member States and the Andean Pact countries where they are incompatible with, or identical to, the provisions of this Agreement.

This Agreement may be developed and improved by mutual consent according to the suggestion to be made by either Contracting Party.

Resources

The Contracting Parties undertake to make available the resources appropriate for the attainment of the objectives of this Agreement including financial resources. Multiannual programming and priority setting will be undertaken wherever possible.

To facilitate cooperation the Andean Pact countries will grant Commission experts the guarantees and facilities they require and exempt goods and services to be imported for this purpose from taxes, duties and other contributions.

The Joint Committee set up by the 1983 Cooperation Agreement and the Subcommittees on science and technology, industrial cooperation and trade cooperation will be maintained. The Joint Committee's role is to ensure the proper functioning and coordination of the Agreement.

Duration

The Agreement is concluded for a period of five years and will be renewed tacitly on a yearly basis unless either of the Parties denounces it in writing to the other Party six months before its expiry.

Background

Prior to the conclusion of this Agreement the Community and the Andean Pact countries signed a Cooperation Agreement in 1983, the Rome Declaration was adopted on 20 December 1990 and final communiqués were issued in Luxembourg on 27 April 1991 and by the ministerial conference in Santiago on 29 May 1992.

REFERENCES

ActEntry into forceDeadline for transposition in the Member StatesOfficial Journal
Framework Cooperation Agreement between the European Economic Community and the Cartagena Agreement and its member countries, namely the Republic of Bolivia, the Republic of Colombia, the Republic of Ecuador, the Republic of Peru and the Republic of Venezuela - Exchange of letters on shipping1 May 1998-OJ L 127 of 29 April 1998

RELATED ACTS

In December 2003 the Contracting Parties signed a Political Dialogue and Cooperation Agreement, which will replace the 1993 Agreement once it has been ratified.

Last updated: 03.05.2007
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