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At  a ceremony  held in  Brussels on  28 November 1994 the  Partnership and
Co-operation Agreement  between the European  Communities and  their Member
States, on the  one hand, and the  Republic of Moldova,  on the other,  was

for the Republic of Moldova by:

Mr Mircea SNECUR              President of the Republic of Moldova

for the European Communities by:

Mr Klaus KINKEL               Federal Minister  for Foreign Affairs  of the
                              Federal  Republic  of Germany,  President-in-
                              Office of the Council

Sir Leon BRITTAN              Member of the Commission
Mr Hans VAN DEN BROEK         Member of the Commission

for the Member States of the European Communities by:

Mr Robert URBAIN              Minister  for  Foreign  Trade  and   European
                              Affairs of the Kingdom of Belgium

Mr Niels HELVEG PETERSEN      Minister for  Foreign Affairs of  the Kingdom
                              of Denmark

Mr Klaus KINKEL               Federal Minister  for Foreign Affairs  of the
                              Federal Republic of Germany

Mr J. KRANIDIOTIS             State  Secretary for  Foreign Affairs  of the
                              Hellenic Republic

Mr Carlos WESTENDORP          State Secretary for the European  Communities
                              of the Kingdom of Spain

Mr Alain LAMASSOURE           Minister  with  special  responsibility   for
                              European Affairs of the French Republic

Mr Tom KITT                   Minister  with  special  responsibility   for
                              European Affairs of Ireland

Mr Livio CAPUTO               State Secretary  for Foreign  Affairs of  the
                              Italian Republic

Mr Jacques POOS               Minister  for Foreign  Affairs  of the  Grand
                              Duchy of Luxembourg

Mr M. PATIJN                  State Secretary  for Foreign  Affairs of  the
                              Kingdom of the Netherlands

Mr José Manuel DURAÕ BARROSO  Minister   for   Foreign   Affairs   of   the
                              Portuguese Republic

Mr Douglas HURD               Secretary  of State  for  Foreign Affairs  of
                              the United Kingdom

The ceremony  was also  attended  by Mr Mihai POPOV,  Minister for  Foreign
Affairs of the Republic  of Moldova, and Mr Andrei CHEPTINE,  Vice-Minister
for  the  Economy  and  Chairman  of the  Governmental  Commission  on  the
negotiation of the Partnership and Co-operation Agreement.

The  Partnership  Agreement  will  govern  political,  economic  and  trade
relations between  the Parties  and lays the  basis for cooperation  in the
social, financial, scientific, technological and cultural  fields.  It will
replace the Agreement signed with  the former Soviet Union in 1989.   It is
concluded for an initial period of ten years.

The main aspects of the Agreement are outlined below.


The  preamble  and  initial  Articles  set  out  a  number  of  fundamental
principles.   Thus, one of the objectives  of the partnership is to support
Moldova's efforts to consolidate its democracy, to develop  its economy and
to  complete its transition to a market economy.  It is also specified that
support for  the  independence, sovereignty  and  territorial integrity  of
Moldova will contribute to  safeguarding peace and stability in the  region
of Central and Eastern Europe and on the European Continent as a whole.

A  link is  established between  respect for  the principles  of democracy,
human rights and the  market economy, which  are the essential elements  of
the Partnership, and the full implementation  of the Agreement.  Under  the
final  provisions of  the Agreement,  in  the event  of a  breach of  those
principles,  the  Community  will  be  able  to  take appropriate  measures
provided  that it  has first  informed the  Cooperation Council,  except in
cases of special urgency.

Emphasis  is laid on the need to  maintain and develop regional cooperation
between the independent States of the former Soviet Union.

Although  this is not  a preferential agreement,  one of  its objectives is
the  conclusion of  such an  agreement at  a future  stage.   The Agreement
contains  a  future  developments clause,  which  allows  for  the relevant
Titles to be adapted,  particularly when Moldova has made further  progress
along the path of economic reforms, with  a view to the establishment of  a
free-trade  area.  Such  an adaptation  could be  made on  a recommendation
from  the Cooperation Council and  in any  event by virtue  of an agreement
between the Parties  in accordance with their  respective procedures.   The
Parties  will consult each  other in  1998 in the  light of  the prevailing
circumstances, and  particularly  the  progress  made  by  Moldova  towards
reforms with a view  to a market economy and its economic  situation at the
time, to  decide whether it  is possible to embark  on negotiations  with a
view to the establishment of a free-trade area.

The Parties will also examine  whether the Agreement needs to be adapted to
circumstances  three years  after the  Agreement enters into  force or when
Moldova joins the GATT.


The Agreement contains an important chapter on political  dialogue in which
the objectives of such a dialogue are established;  to strengthen Moldova's
links  with  the  European  Union  and with  the  community  of  democratic
nations,  to   increase  the  convergence  of  positions  on  international
problems, to strengthen  security and stability in  Europe and respect  for
democratic principles and human rights, especially those of minorities.

The  political  dialogue  will  take  place at  ministerial  level  in  the
framework of the  Cooperation Council and by  means of regular  meetings at
senior official level.   On the parliamentary level the political  dialogue
will  take  place  in  the  Parliamentary  Cooperation  Committee  bringing
together members of the European Parliament and the Moldovan Parliament.


Each Party grants  the other most-favoured-nation status.   However, for  a
transitional  period ending on 31 December  1998 at the latest, Moldova may
grant  more favourable  treatment to  the other  independent States  of the
former Soviet Union.

The  Community  will  abolish  quantitative  restrictions,  except  in  the
textiles  sector (for  which a  specific agreement already  exists) and for
ECSC products.  For  its part, Moldova will  give a similar commitment;  it
will,   however,  be   allowed  to   introduce  non-specific   quantitative
restrictions for  a transitional period, under certain conditions relating,
in particular, to the justification for such restrictions  (new industries,
restructuring, the procedures to  be followed and their  non-discriminatory

A  safeguard  clause  includes  the  principle  of   consultation.    Where
justified, emergency measures can be taken without prior consultation.

A provision lays down the procedures to apply in  the event of anti-dumping
or anti-subsidy investigations which  should on no account delay or  impede
any measures to be taken.

If necessary  a specific agreement will be negotiated  for trade in nuclear


The  Agreement seeks  to avoid  any discrimination  on the  part of  either
Party  vis-à-vis  the  other Party's  nationals  legally  employed  in  its

The Agreement provides  for the aggregation of  pension rights acquired  by
Moldovan workers legally employed in the various Member States.


Moldova  will  grant  national  treatment  or  most-favoured-nation status,
whichever is the  more favourable, for the  establishment and operation  of
Community companies, with limited exceptions (e.g. banks).


The Agreement  aims at progressive liberalization of cross-border provision
of services between the Parties.


Each Party  will offer the  other national  treatment for  access to  ports
open  to  international  trade,  the  use  of maritime  infrastructure  and
auxiliary  services,  related fees  and  charges,  customs facilities,  the
assignment of berths and loading facilities.


-    For trade  in goods each Party  undertakes that imports shall  be paid
     for in a freely convertible currency.
-    In  the  case  of  direct  investments,  companies  will  be  free  to
     repatriate their profits in freely convertible currency.
-    No new exchange restrictions  will be introduced after the entry  into
     force of the Agreement.


The Agreement  establishes  a  number  of  principles  which  are  intended
gradually to increase free and non-discriminatory competition.


Five years after the entry into force of the  Agreement Moldova should have
attained a level of protection for  intellectual, industrial and commercial
property rights which is similar to that in the Community.


Economic cooperation is designed  to contribute to the process of  economic
reform, reconstruction and sustainable development in Moldova.  Many  areas
are covered:  industrial cooperation, investment  promotion and protection,
public procurement, industrial standards and  conformity assessment, mining
resources  and raw  materials,  scientific  and technological  cooperation,
education  and  training,  agriculture  and  the   agro-industrial  sector,
energy, the environment, transport, postal services and

telecommunications,  financial services, monetary policy, money laundering,
regional  development, social cooperation,  tourism, small and medium-sized
enterprises,  information and  communication, consumer  protection, customs
(a  Protocol on  mutual assistance  in customs  matters is  annexed to  the
Agreement),  statistical  cooperation,  economics  and  the  fight  against


Cultural   cooperation  between   the  Parties   will  be   encouraged  and


Moldova  will receive  assistance under  the TACIS  programme to accelerate
its economic transformation.


The  following will  be  set  up  in  the framework  of  the  Agreement:  a
Cooperation   Council,   a  Cooperation   Committee  and   a  Parliamentary
Cooperation Committee.    The  Cooperation  Council,  which  will  meet  at
ministerial  level once  a year,  will supervise the  implementation of the
Agreement  and  will  be  assisted  by  the  Cooperation  Committee.    The
Parliamentary Cooperation  Committee, composed of  members of  the Moldovan
Parliament  and  of the  European  Parliament,  will  be able  to  ask  the
Cooperation Council  for  any  information on  the  implementation  of  the
Agreement and will be able to make recommendations to it.

The  Agreement   includes   the  usual   general   and  final   provisions:
denunciation  clause,  clause  on  the  protection  of  essential  security
interests,   territorial   clause,   non-discrimination    clause   and   a
conciliation clause.

The European Parliament must give its assent to  this Cooperation Agreement
and, as it is a mixed agreement, it must be ratified by the Parliaments  of
the Member States of the Union, and by the Moldovan Parliament.

In view of the time required to complete these  procedures, and pending its
entry into force,  an interim agreement  is being  finalized to permit  the
trade  provisions  of the  Partnership Agreement  to be  implemented  at an
early date.


P. 105/94                                        Brussels, 28 November 1994

                        STATEMENT BY THE PRESIDENCY

The European  Union welcomes the  strengthening of relations with  Moldova,
as   signified  by  the  signature   of  the  Partnership  and  Cooperation
Agreement.  This  will provide  the basis  for the  further building-up  of
cooperation with Moldova, particularly in  the economic and trade  spheres.
The  European Union  welcomes  the continuation  of  the Moldovan  economic
reform programme, for which it has given substantial support.

The  European Union reiterates its  support for  Moldova's independence and
territorial integrity.   The European Union welcomes  the agreement  signed
between  the  Governments of  the Russian  Federation and  the  Republic of
Moldova on 21 October 1994 on the withdrawal of  the Russian 14th army from
the territory of Moldova.   The European Union urges the parties  to adhere
to the timetable for withdrawal set down in that agreement.

The European Union welcomes the continuation of negotiations  on the status
of  Transdniestria  and the  constructive  role the  CSCE  and the  Russian
special envoy have  played in that process.  The  European Union calls upon
the parties to show restraint and flexibility in seeking  a solution to the

The acceding countries, Austria,  Finland and Sweden, associate  themselves
with this statement.


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