Part 3. Cooperation Strategies

Pages20-37

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Article 18

The cooperation strategies shall be based on development strategies and economic and trade cooperation which are interlinked and complementary. The Parties shall ensure that the efforts undertaken in both aforementioned areas are mutually reinforcing.

Title I Development Strategies
Chapter 1 General Framework
Article 19 Principles and objectives
  1. The central objective of ACP-EC cooperation is poverty reduction and ultimately its eradication; sustainable development; and progressive integration of the ACP countries into the world economy. In this context, cooperation framework and orientations shall be tailored to the individual circumstances of each ACP country, shall promote local ownership of economic and social reforms and the integration of the private sector and civil society actors into the development process.

  2. Cooperation shall refer to the conclusions of United Nations Conferences and to the objectives, targets and action programmes agreed at international level and to their follow up as a basis for development principles. Cooperation shall also refer to the international development cooperation targets and shall pay particular attention to putting in place qualitative and quantitative indicators of progress.

  3. Governments and non-State actors in each ACP country shall initiate consultations on country development strategies and community support thereto.

Article 20 The Approach
  1. The objectives of ACP-EC development cooperation shall be pursued through integrated strategies that incorporate economic, social, cultural, environmental and institutional elements that must be locally owned. Cooperation shall thus provide a coherent enabling framework of support to the ACP's own development strategies, ensuring complementarity and interaction between the various elements. In this context and within the framework of development policies and reforms pursued by the ACP States, ACP-EC cooperation strategies shall aim at:

    a) achieving rapid and sustained job-creating economic growth, developing the private sector, increasing employment, improving access to productive economic activities and resource, and fostering regional cooperation and integration;

    b) promoting human and social development helping to ensure that the fruits of growth are widely and equitably shared and promoting gender equality;

    c) promoting cultural values of communities and specific interactions with economic, political and social elements;

    d) promoting institutional reforms and development, strengthening the institutions necessary for the consolidation of democracy, good governance and for efficient and competitive market economies; and building capacity for development and partnership; and

    e) promoting environmental sustainability, regeneration and best practices, and the preservation of natural resource base.

  2. Systematic account shall be taken in mainstreaming into all areas of cooperation the following thematic or cross-cutting themes : gender issues, environmental issues and institutional development and capacity building. These areas shall also be eligible for Community support.

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  3. The detailed texts as regards development cooperation objectives and strategies, in particular sectoral policies and strategies shall be incorporated in a compendium providing operational guidelines in specific areas or sectors of cooperation. These texts may be revised, reviewed and/or amended by the Council of Ministers on the basis of a recommendation from the ACP-EC Development Finance Cooperation Committee.

Chapter 2 Areas of Support
Section 1 Economic Development
Article 21 Investment and private sector development
  1. Cooperation shall support the necessary economic and institutional reforms and policies at national and/or regional level, aiming at creating a favourable environment for private investment, and the development of a dynamic, viable and competitive private sector. Cooperation shall further support:

    a) the promotion of public-private sector dialogue and cooperation;

    b) the development of entrepreneurial skills and business culture;

    c) privatisation and enterprise reform; and

    d) development and modernisation of mediation and arbitration systems.

  2. Cooperation shall also support improving the quality, availability and accessibility of financial and non-financial services to private enterprises, both formal and informal; by:

    a) catalysing and leveraging flows of private savings, both domestic and foreign, into the financing of private enterprises by supporting policies for developing a modern financial sector including a capital market, financial institutions and sustainable microfinance operations;

    b) development and strengthening of business institutions and intermediary organisations, associations, chambers of commerce and local providers from the private sector supporting and providing non-financial services to enterprises such as professional, technical, management, training and commercial support services; and

    c) supporting institutions, programmes, activities and initiatives that contribute to the development and transfer of technologies and know how and best practices on all aspects of business management.

  3. Cooperation shall promote business development through the provision of finance, guarantee facilities and technical support aimed at encouraging and supporting the creation, establishment, expansion, diversification, rehabilitation, restructuring, modernisation or privatisation of dynamic, viable and competitive enterprises in all economic sectors as well as financial intermediaries such as development finance and venture capital institutions, and leasing companies by:

    a) creating and/or strengthening financial instruments in the form of investment capital;

    b) improving access to essential inputs such as business information and advisory, consultancy or technical assistance services;

    c) enhancement of export activities, in particular through capacity building in all trade-related areas; and

    d) encouraging inter-firm linkages, networks and cooperation including those involving the transfer of technology andPage 22 know-how at national, regional and ACP EU levels, and partnerships with private foreign investors which are consistent with the objectives and guidelines of ACP-EC Development cooperation.

  4. Cooperation shall support microenterprise development through better access to financial and non-financial services; an appropriate policy and regulatory framework for their development; and provide training and information services on best practices in microfinance.

  5. Support for investment and private sector development shall integrate actions and initiatives at macro, meso and micro economic levels.

Article 22 Macroeconomic and structural reforms and policies
  1. Cooperation shall support ACP efforts to implement:

    a) macroeconomic growth and stabilisation through disciplined fiscal and monetary policies that result in the reduction of inflation, and improve external and fiscal balances, by strengthening fiscal discipline, enhancing budgetary transparency and efficiency, improving the quality, the equity and composition of fiscal policy; and

    b) structural policies designed to reinforce the role of the different actors, especially the private sector and improve the environment for increases in business, investment and employment, as well as:

    i) liberalise trade and foreign exchange regimes and current account convertibility, having regard to the particular circumstances of each country;

    ii) strengthen labour and product-market reforms;

    iii) encourage financial systems reforms which help to develop viable banking and non-banking systems, capital markets and financial services, including micro finance;

    iv) improve the quality of private and public services; and

    v) encourage regional cooperation and progressive integration of macroeconomic and monetary policies.

  2. The design of macroeconomic policies and structural adjustment programmes shall reflect the socio political background and institutional capacity of the countries concerned, ensure a positive impact on poverty reduction and social services access and shall be based on the following principles:

    a) the ACP States shall bear primary responsibility for the analysis of the problems to be solved, the design and the implementation of the reforms;

    b) support programmes shall be adapted to the different situation in each ACP State and be sensitive to the social conditions, culture and environment of these States;

    c) the right of the ACP States to determine the direction and the sequencing of their development strategies and priorities shall be recognised and respected;

    d) the pace of reforms shall be realistic and compatible with each ACP State's capacities and resources; and

    e) strengthening the communication and the information of populations on economic and social reforms and policies.

Article 23 Economic sector development

Cooperation shall support sustainable policy and institutional reforms and the investments necessary for equitable access to economic activities and productive resources, particularly:

a) the development of training systems that help increase productivity in both the formal and the informal sectors;

b) capital, credit, land, especially as regards property rights and use;

c) development of rural strategies aimed at establishing a framework for participatory decentralised planning, resource allocation and management;

d) agricultural production strategies, national and regional food security policies, sustainable development of water resources and fisheries as well as marine resources within the economic exclusive zones of the ACP States. Any fishery agreement that may be negotiated between the Community and the ACP States shall pay due consideration to consistency with the development strategies in this area;

e) economic and technological infrastructure and services, including transport, telecommunication systems, communication services and the development of information society;

f) development of competitive industrial, mining and energy sectors, while encouraging private sector involvement and development;

g) trade development, including the promotion of fair trade;

h) development of business, finance and banking; and other service sectors;

i) tourism development; and

j) development of scientific, technological and research infrastructure and services; including the enhancement, transfer and absorption of new technologies;

k) the strengthening of capacities in productive areas, especially in public and private sectors;

l) the promotion of traditional knowledge.

Article 24 Tourism

Cooperation will aim at the sustainable development of the tourism industry in ACP countries and sub regions, recognising its increasing importance to the growth of the services sector in ACP countries and to the expansion of their global trade, its ability to stimulate other sectors of economic activity, and the role it can play in poverty eradication.

Cooperation programmes and projects will support the efforts of ACP countries to establish and improve the countries legal and institutional framework and resources for the development and implementation of sustainable tourism policies and programmes, as well as inter alia, improving the competitive position of the sector, especially small and medium-sized enterprises (SMEs), investment support and promotion, product development including the development of indigenous cultures in ACP countries, and strengthening linkages between tourism and other sectors of economic activity.

Section 2 Social and Human Development
Article 25 Social sector development
  1. Cooperation shall support ACP States' efforts at developing general and sectoral policies and reforms which improve the coverage, quality of and access to basic social infrastructure and services and take account of local needs and specific demands of the most vulnerable and disadvantaged, thus reducing the inequalities of access to these services. Special attention shall be paid to ensuring adequate levels of public spending in the social sectors. In this context, cooperation shall aim at:

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    a) improving education and training, and building technical capacity and skills;

    b) improving health systems and nutrition, eliminating hunger and malnutrition, ensuring adequate food supply and security;

    c) integrating population issues into development strategies in order to improve reproductive health, primary health care, family planning; and prevention of female genital mutilation;

    d) promoting the fight against:

    - HIV/AIDS, ensuring the protection of sexual and reproductive health and rights of women;

    - other poverty-related diseases, particularly malaria and tuberculosis;

    e) increasing the security of household water and improving access to safe water and adequate sanitation;

    f) improving the availability of affordable and adequate shelter for all through supporting low cost and low income housing programs and improving urban development; and

    g) encouraging the promotion of participatory methods of social dialogue as well as respect for basic social rights.

  2. Cooperation shall also support capacity-building in social areas such as programmes for training in the design of social policies and modern methods for managing social projects and programmes; policies conducive to technological innovation and research; building local expertise and promoting partnerships; and round-table discussions at national and/or regional level.

  3. Cooperation shall promote and support the development and implementation of policies and of systems of social protection and security in order to enhance social cohesion and to promote self help and community solidarity. The focus of the support shall, inter-alia, be on developing initiatives based on economic solidarity, particularly by setting-up social development funds adapted to local needs and actors.

Article 26 Youth issues

Cooperation shall also support the establishment of a coherent and comprehensive policy for realising the potential of youth so that they are better integrated into society to achieve their full potential. In this context, cooperation shall support policies, measures and operations aimed at:

a) protecting the rights of children and youth, especially those of girl children;

b) promoting the skills, energy, innovation and potential of youth in order to enhance their economic, social and cultural opportunities and enlarge their employment opportunities in the productive sector;

c) helping community-based institutions to give children the opportunity to develop their physical, psychological, social and economic potential;

d) reintegrating into society children in post conflict situations through rehabilitation programmes; and

e) promoting the active participation of young citizens in public life and fostering student exchanges and interaction of ACP and EU youth organisations.

Article 27 Cultural development

Cooperation in the area of culture shall aim at:

a) integrating the cultural dimension at all levels of development cooperation;

b) recognising, preserving and promoting cultural values and identities to enable inter cultural dialogue;

c) recognising, preserving and promoting the value of cultural heritage; supporting the development of capacity in this sector; and

d) developing cultural industries and enhancing market access opportunities for cultural goods and services.

Section 3 Regional Cooperation and Integration
Article 28 General approach

Cooperation shall provide effective assistance to achieve the objectives and priorities which the ACP States have set themselves in the context of regional and sub-regional cooperation and integration, including inter-regional and intra ACP cooperation. Regional Cooperation may also involve non-ACP developing countries as well as Overseas Countries and Territories (OCTs) and outermost regions. In this context, cooperation support shall aim to:

a) foster the gradual integration of the ACP States into the world economy;

b) accelerate economic cooperation and development both within and between the regions of the ACP States;

c) promote the free movement of persons, goods, services, capital, labour and technology among ACP countries;

d) accelerate diversification of the economies of the ACP States; and coordination and harmonisation of regional and sub-regional cooperation policies; and

e) promote and expand inter and intra ACP trade and with third countries.

Article 29 Regional economic integration

Cooperation shall, in the area of regional economic integration, support:

a) developing and strengthening the capacities of:

i) regional integration institutions and organisations set up by the ACP States and those with ACP State participation that promote regional cooperation and integration, and

ii) national governments and parliaments in matters of regional integration;

b) fostering participation of Least Developed Countries (LDC) ACP States in the establishment of regional markets and sharing the benefits therefrom;

c) implementation of sectoral reform policies at regional level;

d) liberalisation of trade and payments;

e) promoting cross border investments both foreign and domestic, and other regional or sub regional economic integration initiatives; and

f) taking account of the effects of net transitional costs of regional integration on budget revenue and balance of payments.

Article 30 Regional Cooperation
  1. Cooperation shall, in the area of regional cooperation, support a wide variety of functional and thematic fields which specifically address common problems and take advantage of scale of economies, including:

    a) infrastructure particularly transport and communications and safety thereof and services, including the development of regional opportunities in the area of Information and Communication Technologies (ICT);

    b) the environment; water resource management and energy;

    c) health, education and training;

    d) research and technological development;

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    e) regional initiatives for disaster preparedness and mitigation; and

    f) other areas, including arms control, action against drugs, organised crimes, money laundering, bribery and corruption.

  2. Cooperation shall also support inter and intra-ACP cooperation schemes and initiatives, including those involving non-ACP developing countries.

  3. Cooperation shall help promote and develop a regional political dialogue in areas of conflict prevention and resolution; human rights and democratisation; exchange, networking, and promotion of mobility between the different actors of development, in particular in civil society.

Section 4 Thematic and Cross-Cutting Issues
Article 31 Gender issues

Cooperation shall help strengthen policies and programmes that improve, ensure and broaden the equal participation of men and women in all spheres of political, economic, social and cultural life. Cooperation shall help improve the access of women to all resources required for the full exercise of their fundamental rights. More specifically, cooperation shall create the appropriate framework to:

a) integrate a gender-sensitive approach and concerns at every level of development cooperation including macroeconomic policies, strategies and operations; and

b) encourage the adoption of specific positive measures in favour of women such as:

i) participation in national and local politics;

ii) support for women's organisations;

iii) access to basic social services, especially to education and training, health care and family planning;

iv) access to productive resources, especially to land and credit and to labour market; and

v) taking specific account of women in emergency aid and rehabilitation operations.

Article 32 Environment and natural resources
  1. Cooperation on environmental protection and sustainable utilisation and management of natural resources shall aim at:

    a) mainstreaming environmental sustainability into all aspects of development cooperation and support programmes and projects implemented by the various actors;

    b) building and/or strengthening the scientific and technical human and institutional capacity for environmental management for all environmental stakeholders;

    c) supporting specific measures and schemes aimed at addressing critical sustainable management issues and also relating to current and future regional and international commitments concerning mineral and natural resources such as:

    i) tropical forests, water resources, coastal, marine and fisheries resources, wildlife, soils, biodiversity;

    ii) protection of fragile ecosystems (e.g. coral reef);

    iii) renewable energy sources notably solar energy and energy efficiency;

    iv) sustainable rural and urban development;

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    v) desertification, drought and deforestation;

    vi) developing innovative solutions to urban environmental problems; and

    vii) promotion of sustainable tourism.

    d) Taking into account issues relating to the transport and disposal of hazardous waste.

  2. Cooperation shall also take account of:

    a) the vulnerability of small island ACP countries, especially to the threat posed by climate change;

    b) the worsening drought and desertification problems especially of least developed and land locked countries; and

    c) Institutional development and capacity building

Article 33 Institutional development and capacity building
  1. Cooperation shall pay systematic attention to institutional aspects and in this context, shall support the efforts of the ACP States to develop and strengthen structures, institutions and procedures that help to:

    a) promote and sustain democracy, human dignity, social justice and pluralism, with full respect for diversity within and among societies;

    b) promote and sustain universal and full respect for and observance and protection of all human rights and fundamental freedoms;

    c) develop and strengthen the rule of law; and improve access to justice, while guaranteeing the professionalism and independence of the judicial systems; and

    d) ensure transparent and accountable governance and administration in all public institutions.

  2. The Parties shall work together in the fight against bribery and corruption in all their societies.

  3. Cooperation shall support ACP States' efforts to develop their public institutions into a positive force for growth and development and to achieve major improvements in the efficiency of government services as they affect the lives of ordinary people. In this context, cooperation shall assist the reform, rationalisation and the modernisation of the public sector. Specifically, cooperation support shall focus on:

    a) the reform and modernisation of the civil service;

    b) legal and judicial reforms and modernisation of justice systems;

    c) improvement and strengthening of public finance management;

    d) accelerating reforms of the banking and financial sector;

    e) improvement of the management of public assets and reform of public procurement procedures; and

    f) political, administrative, economic and financial decentralisation.

  4. Cooperation shall also assist to restore and/or enhance critical public sector capacity and to support institutions needed to underpin a market economy, especially support for:

    a) developing legal and regulatory capabilities needed to cope with the operation of a market economy, including competition policy and consumer policy;

    b) improving capacity to analyse, plan, formulate and implement policies, in particular in the economic, social, environmental, research, science and technology and innovation fields;

    c) modernising, strengthening and reforming financial and monetary institutions and improving procedures;

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    d) building the capacity at the local and municipal levels which is required to implement decentralisation policy and to increase the participation of the population in the development process; and

    e) developing capacity in other critical areas such as:

    i) international negotiations; and

    ii) management and coordination of external aid.

  5. Cooperation shall span all areas and sectors of cooperation to foster the emergence of non State actors and the development of their capacities; and to strengthen structures for information, dialogue and consultation between them and the national authorities, including at regional level.

Title II Economic and trade cooperation
Chapter 1 Objectives and Principles
Article 34 Objectives
  1. Economic and trade cooperation shall aim at fostering the smooth and gradual integration of the ACP States into the world economy, with due regard for their political choices and development priorities, thereby promoting their sustainable development and contributing to poverty eradication in the ACP countries.

  2. The ultimate objective of economic and trade cooperation is to enable the ACP States to play a full part in international trade. In this context, particular regard shall be had to the need for the ACP States to participate actively in multilateral trade negotiations. Given the current level of development of the ACP countries, economic and trade cooperation shall be directed at enabling the ACP States to manage the challenges of globalisation and to adapt progressively to new conditions of international trade thereby facilitating their transition to the liberalised global economy.

  3. To this end economic and trade cooperation shall aim at enhancing the production, supply and trading capacity of the ACP countries as well as their capacity to attract investment. It shall further aim at creating a new trading dynamic between the Parties, at strengthening the ACP countries trade and investment policies and at improving the ACP countries' capacity to handle all issues related to trade.

  4. Economic and trade cooperation shall be implemented in full conformity with thePage 29 provisions of the WTO, including special and differential treatment, taking account of the Parties' mutual interests and their respective levels of development.

Article 35 Principles
  1. Economic and trade cooperation shall be based on a true, strengthened and strategic partnership. It shall further be based on a comprehensive approach which builds on the strengths and achievements of the previous ACP-EC Conventions, using all means available to achieve the objectives set out above by addressing supply and demand side constraints. In this context, particular regard shall be had to trade development measures as a means of enhancing ACP States' competitiveness. Appropriate weight shall therefore be given to trade development within the ACP States' development strategies, which the Community shall support.

  2. Economic and trade cooperation shall build on regional integration initiatives of ACP States, bearing in mind that regional integration is a key instrument for the integration of ACP countries into the world economy.

  3. Economic and trade cooperation shall take account of the different needs and levels of development of the ACP countries and regions. In this context, the Parties reaffirm their attachment to ensuring special and differential treatment for all ACP countries and to maintaining special treatment for ACP LDCs and to taking due account of the vulnerability of small, landlocked and island countries.

Chapter 2 New Trading Arrangements
Article 36 Modalities
  1. In view of the objectives and principles set out above, the Parties agree to conclude new World Trade Organisation (WTO) compatible trading arrangements, removing progressively barriers to trade between them and enhancing cooperation in all areas relevant to trade.

  2. The Parties agree that the new trading arrangements shall be introduced gradually and recognise the need, therefore, for a preparatory period.

  3. In order to facilitate the transition to the new trading arrangements, the non-reciprocal trade preferences applied under the Fourth ACP-EC Convention shall be maintained during the preparatory period for all ACP countries, under the conditions defined in Annexe V to this Agreement.

  4. In this context, the Parties reaffirm the importance of the commodity protocols, attached to Annexe V of this Agreement. They agree on the need to review them in the context of the new trading arrangements, in particular as regards their compatibility with WTO rules, with a view to safeguarding the benefits derived therefrom, bearing in mind the special legal status of the Sugar Protocol.

Article 37 Procedures
  1. Economic partnership agreements shall be negotiated during the preparatory period which shall end by 31 December 2007 at the latest. Formal negotiations of the new trading arrangements shall start in September 2002 and the new trading arrangements shall enter intoPage 30 force by 1 January 2008, unless earlier dates are agreed between the Parties.

  2. All the necessary measures shall be taken so as to ensure that the negotiations are successfully concluded within the preparatory period. To this end, the period up to the start of the formal negotiations of the new trading arrangements shall be actively used to make initial preparations for these negotiations.

  3. The preparatory period shall also be used for capacity building in the public and private sectors of ACP countries, including measures to enhance competitiveness, for strengthening of regional organisations and for support to regional trade integration initiatives, where appropriate with assistance to budgetary adjustment and fiscal reform, as well as for infrastructure upgrading and development, and for investment promotion.

  4. The Parties will regularly review the progress of the preparations and negotiations and, will in 2006 carry out a formal and comprehensive review of the arrangements planned for all countries to ensure that no further time is needed for preparations or negotiations.

  5. Negotiations of the economic partnership agreements will be undertaken with ACP countries which consider themselves in a position to do so, at the level they consider appropriate and in accordance with the procedures agreed by the ACP Group, taking into account regional integration process within the ACP.

  6. In 2004, the Community will assess the situation of the non LDC which, after consultations with the Community decide that they are not in a position to enter into economic partnership agreements and will examine all alternative possibilities, in order to provide these countries with a new framework for trade which is equivalent to their existing situation and in conformity with WTO rules.

  7. Negotiations of the economic partnership agreements shall aim notably at establishing the timetable for the progressive removal of barriers to trade between the Parties, in accordance with the relevant WTO rules. On the Community side trade liberalisation shall build on the acquis and shall aim at improving current market access for the ACP countries through inter alia, a review of the rules of origin. Negotiations shall take account of the level of development and the socio economic impact of trade measures on ACP countries, and their capacity to adapt and adjust their economies to the liberalisation process. Negotiations will therefore be as flexible as possible in establishing the duration of a sufficient transitional period, the final product coverage, taking into account sensitive sectors, and the degree of asymmetry in terms of timetable for tariff dismantlement, while remaining in conformity with WTO rules then prevailing.

  8. The Parties shall closely cooperate and collaborate in the WTO with a view to defending the arrangements reached, in particular with regard to the degree of flexibility available.

  9. The Community will start by the year 2000, a process which by the end of multilateral trade negotiations and at the latest 2005 will allow duty free access for essentially all products from all LDC building on the level of the existing trade provisions of the Fourth ACP-EC Convention and which will simplify and review the rules of origin, including cumulation provisions, that apply to their exports.

Article 38 Joint Ministerial Trade Committee
  1. A Joint ACP-EC Ministerial Trade Committee shall be established.

  2. The Ministerial Trade Committee shall pay special attention to current multilateral trade negotiations and shallPage 31 examine the impact of the wider liberalisation initiatives on ACP-EC trade and the development of ACP economies. It shall make any necessary recommendations with a view to preserving the benefits of the ACP-EC trading arrangements.

  3. The Ministerial Trade Committee shall meet at least once a year. Its rules of procedure shall be laid down by the Council of Ministers. It shall be composed of representatives of the ACP States and of the Community.

Chapter 3 Cooperation in the International Fora
Article 39 General Provisions
  1. The Parties underline the importance of their active participation in the WTO as well as in other relevant international organisations by becoming members of these organisations and closely following their agenda and activities.

  2. They agree to cooperate closely in identifying and furthering their common interests in international economic and trade cooperation in particular in the WTO, including participation in setting and conducting the agenda in future multilateral trade negotiations. In this context, particular attention shall be paid to improve access to the Community and other markets for products and services originating in the ACP countries.

  3. They also agree on the importance of flexibility in WTO rules to take account of the ACP's level of development as well of the difficulties faced in meeting their obligations. They further agree on the need for technical assistance to enable the ACP countries to implement their commitments.

  4. The Community agrees to assist the ACP States in their efforts, in accordance with the provisions set out in this Agreement, to become active members of these organisations, by developing the necessary capacity to negotiate, participate effectively, monitor and implement these agreements.

Article 40 Commodities
  1. The Parties recognise the need to ensure a better operation of international commodity markets and to increase market transparency.

  2. They confirm their willingness to step up consultations between them in the international fora and organisations dealing with commodities.

  3. To this end, exchange of views shall take place at the request of either Party:

- regarding the operation of existing international agreements or specialised intergovernmental working parties with the aim of improving them and making them more effective, consistent with market trends;

- when it is proposed to conclude or renew an international agreement or set up a specialised intergovernmental working party.

The aim of such exchanges of views shall be to take account of the respective interest of each party. They may take place, where necessary, in the framework of the Ministerial Trade Committee.

Chapter 4 Trade in Services
Article 41 General Provisions
  1. The Parties underline the growing importance of services in international trade and their major contribution to economic and social development.

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  2. They reaffirm their respective commitments under the General Agreement on Trade in Services (GATS), and underline the need for special and differential treatment to ACP suppliers of services.

  3. In the framework of the negotiations for progressive liberalisation in trade and services, as provided for in Article XIX of GATS, the Community undertakes to give sympathetic consideration to the ACP States' priorities for improvement in the EC schedule, with a view to meeting their specific interests.

  4. The Parties further agree on the objective of extending under the economic partnership agreements, and after they have acquired some experience in applying the Most Favoured Nation (MFN) treatment under GATS, their partnership to encompass the liberalisation of services in accordance with the provisions of GATS and particularly those relating to the participation of developing countries in liberalisation agreements.

  5. The Community shall support the ACP States' efforts to strengthen their capacity in the supply of services. Particular attention shall be paid to services related to labour, business, distribution, finance, tourism, culture and construction and related engineering services with a view to enhancing their competitiveness and thereby increasing the value and the volume of their trade in goods and services.

Article 42 Maritime Transport
  1. The Parties acknowledge the importance of cost-effective and efficient maritime transport services in a safe and clean marine environment as the main mode of transportation facilitating international trade and thereby constituting one of the forces behind economic development and the development of trade.

  2. They undertake to promote the liberalisation of maritime transport and to this end apply effectively the principle of unrestricted access to the international maritime transport market on a non discriminatory and commercial basis.

  3. Each Party shall grant, inter alia, a treatment no less favourable than that accorded to its own ships, for ships operated by nationals or companies of the other Party, and for ships registered in the territory of either party, with respect to access to ports, the use of infrastructure and auxiliary maritime services of those ports, as well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

  4. The Community shall support the ACP States' efforts to develop and promote cost effective and efficient maritime transport services in the ACP States with a view to increasing the participation of ACP operators in international shipping services.

Article 43 Information and Communication Technologies, and Information Society
  1. The Parties recognise the important role of information and communication technologies, as well as the active participation in the Information Society, as a prerequisite for the successful integration of the ACP countries into the world economy.

  2. They therefore reconfirm their respective commitments under existing multilateral agreements, in particular the protocol on Basic Telecommunications attached to the GATS, and invite those ACP countries, which are not yet members of these agreements, to accede to them.

  3. They furthermore agree to participate fully and actively in any future international negotiation, which might be conducted in this area.

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  4. The Parties will therefore take measures that will enable inhabitants of ACP countries easy access to information and communication technologies, through, amongst other, the following measures:

    - the development and encouragement of the use of affordable renewable energy resources;

    - the development and deployment of more extensive low-cost wireless networks; and

    - the development and encouragement of the use of local content for Information and Communication Technologies

  5. The Parties also agree to step up cooperation between them in the area of information and communication technologies, and the Information Society. This cooperation shall, in particular, be directed towards greater complementarity and harmonisation of communication systems, at national, regional and international level and their adaptation to new technologies.

Chapter 5 Trade Related Areas
Article 44 General Provisions
  1. The Parties acknowledge the growing importance of new areas related to trade in facilitating progressive integration of the ACP States into the world economy. They therefore agree to strengthen their cooperation in these areas by establishing full and coordinated participation in the relevant international fora and agreements.

  2. The Community shall support the ACP States' efforts, in accordance with the provisions set out in this Agreement and the development strategies agreed between the Parties to strengthen their capacity to handle all areas related to trade, including, where necessary, improving and supporting the institutional framework.

Article 45 Competition Policy
  1. The Parties agree that the introduction and implementation of effective and sound competition policies and rules are of crucial importance in order to improve and secure an investment friendly climate, a sustainable industrialisation process and transparency in the access to markets.

  2. To ensure the elimination of distortions to sound competition and with due consideration to the different levels of development and economic needs of each ACP country, they undertake to implement national or regional rules and policies including the control and under certain conditions the prohibition of agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition. The Parties further agree to prohibit the abuse by one or more undertakings of a dominant position in the common market of the Community or in the territory of ACP States.

  3. The Parties also agree to reinforce cooperation in this area with a view to formulating and supporting effective competition policies with the appropriate national competition agencies that progressively ensure the efficient enforcement of the competition rules by both private and state enterprises. Cooperation in this area shall, in particular, include assistance in the drafting of an appropriate legal framework and its administrative enforcement with particular reference to the special situation of the least developed countries.

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Article 46 Protection of Intellectual Property Rights
  1. Without prejudice to the positions of the Parties in multilateral negotiations, the Parties recognise the need to ensure an adequate and effective level of protection of intellectual, industrial and commercial property rights, and other rights covered by TRIPS including protection of geographical indications, in line with the international standards with a view to reducing distortions and impediments to bilateral trade.

  2. They underline the importance, in this context, of adherence to the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) to the WTO Agreement and the Convention on Biological Diversity (CBD).

  3. They also agree on the need to accede to all relevant international conventions on intellectual, industrial and commercial property as referred to in Part I of the TRIPS Agreement, in line with their level of development.

  4. The Community, its Member States and the ACP States may consider the conclusion of agreements aimed at protecting trademarks and geographical indications for products of particular interest of either Party.

  5. For the purpose of this Agreement, intellectual property includes in particular copyright, including the copyright on computer programmes, and neighbouring rights, including artistic designs, and industrial property which includes utility models, patents including patents for bio-technological inventions and plant varieties or other effective sui generis systems, industrial designs, geographical indications including appellations of origin, trademarks for goods or services, topographies of integrated circuits as well as the legal protection of data bases and the protection against unfair competition as referred to in Article 10a of the Paris Convention for the Protection of Industrial Property and protection of undisclosed confidential information on know how.

  6. The Parties further agree to strengthen their cooperation in this field. Upon request and on mutually agreed terms and conditions cooperation shall inter alia extend to the following areas: the preparation of laws and regulations for the protection and enforcement of intellectual property rights, the prevention of the abuse of such rights by rightholders and the infringement of such rights by competitors, the establishment and reinforcement of domestic and regional offices and other agencies including support for regional intellectual property organisations involved in enforcement and protection, including the training of personnel.

Article 47 Standardisation and Certification
  1. The Parties agree to cooperate more closely in the field of standardisation, certification and quality assurance to remove unnecessary technical barriers and to reduce differences between them in those areas, so as to facilitate trade.

    In this context, they reaffirm their commitment under the Agreement on Technical Barriers to trade, annexed to the WTO Agreement (TBT Agreement).

  2. Cooperation in standardisation and certification shall aim at promoting compatible systems between the Parties and in particular include:

    - measures, in accordance with the TBT Agreement, to promote greater use of international technical regulations, standards and conformity assessment procedures, including sector specific measures, in accordance with the level of economic development of ACP countries,

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    - cooperation in the area of quality management and assurance in selected sectors of importance to the ACP States,

    - support for capacity building initiatives in the ACP countries in the fields of conformity assessment, metrology and standardisation,

    - developing functioning links between ACP and European standardisation, conformity assessment and certification institutions.

  3. The Parties undertake to consider, in due course, negotiating mutual recognition agreements in sectors of mutual economic interest.

Article 48 Sanitary and Phytosanitary Measures
  1. The Parties recognise the right of each Party to adopt or to enforce sanitary and phytosanitary measures necessary to protect human, animal or plant life or health, subject to the requirement that these measures do not constitute a means of arbitrary discrimination or a disguised restriction to trade, generally. To this end, they reaffirm their commitments under the Agreement on the Application of Sanitary and Phytosanitary Measures, annexed to the WTO Agreement (SPS Agreement), taking account of their respective level of development.

  2. They further undertake to reinforce coordination, consultation and information as regards notification and application of proposed sanitary and phytosanitary measures, in accordance with the SPS Agreement whenever these measures might affect the interests of either Party. They also agree on prior consultation and coordination within the CODEX ALIMENTARIUS, the International Office of Epizootics and the International Plant Protection Convention, with a view to furthering their common interests.

  3. The Parties agree to strengthen their cooperation with a view to reinforcing the capacity of the public and the private sector of the ACP countries in this field.

Article 49 Trade and Environment
  1. The Parties reaffirm their commitment to promoting the development of international trade in such a way as to ensure sustainable and sound management of the environment, in accordance with the international conventions and undertakings in this area and with due regard to their respective level of development. They agree that the special needs and requirements of ACP States should be taken into account in the design and implementation of environment measures.

  2. Bearing in mind the Rio Principles and with a view to reinforcing the mutual supportiveness of trade and environment, the Parties agree to enhance their cooperation in this field. Cooperation shall in particular aim at the establishment of coherent national, regional and international policies, reinforcement of quality controls of goods and services related to the environment, the improvement of environment friendly production methods in relevant sectors.

Article 50 Trade and Labour Standards
  1. The Parties reaffirm their commitment to the internationally recognised core labour standards, as defined by the relevant International Labour Organisation (ILO) Conventions, and in particular the freedom of association and the right to collective bargaining, the abolition of forced labour, the elimination of worst forms of child labour and non-discrimination in respect to employment.

  2. They agree to enhance cooperation in this area, in particular in the following fields:

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    - exchange of information on the respective legislation and work regulation;

    - the formulation of national labour legislation and strengthening of existing legislation;

    - educational and awareness raising programmes;

    - enforcement of adherence to national legislation and work regulation.

  3. The Parties agree that labour standards should not be used for protectionist trade purposes.

Article 51 Consumer Policy and Protection of Consumer Health
  1. The Parties agree to step up their cooperation in the area of consumer policy and consumer health protection, having due regard to domestic legislation to avoid barriers to trade.

  2. Cooperation shall, in particular, aim at improving the institutional and technical capacity in this area, establishing rapid alert systems of mutual information on dangerous products, exchanging information and experiences on the establishment and operation of post market surveillance of products and product safety, improving information provided to consumers on prices, characteristics of products and services offered, encouraging the development of independent consumer associations and contacts between consumer interest representatives, improving compatibility of consumer policies and systems, notifying enforcement of the legislation and promoting cooperation in investigating harmful or unfair business practices and implementing exports prohibitions in the trade between the Parties of goods and services the marketing of which has been prohibited in their country of production.

Article 52 Tax Carve-out Clause
  1. Without prejudice to the provisions of Article 31 of Annexe IV, the Most Favoured Nation treatment granted in accordance with the provisions of this Agreement, or any arrangement adopted under this Agreement, does not apply to tax advantages which the Parties are providing or may provide in the future on the basis of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

  2. Nothing in this Agreement, or in any arrangements adopted under this Agreement, may be construed to prevent the adoption or enforcement of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other tax arrangements, or domestic fiscal legislation.

  3. Nothing in this Agreement, or in any arrangements adopted under this Agreement, shall be construed to prevent the Parties from distinguishing, in the application of the relevant provisions of their fiscal legislation, between taxpayers who are not in the same situation, in particular with regard to their place of residence, or with regard to the place where their capital is invested.

Chapter 6 Cooperation in Other Areas
Article 53 Fishery Agreements
  1. The Parties declare their willingness to negotiate fishery agreements aimed at guaranteeing sustainable and mutually satisfactory conditions for fishing activities in ACP States.

  2. In the conclusion or implementation of such agreements, the ACP States shall not discriminate against the Community or among the Member States, without prejudice to special arrangements between developing States within the same geographical area, including reciprocal fishing arrangements, nor shall the Community discriminate against ACP States.

Article 54 Food security
  1. With regard to available agricultural products, the Community undertakes to ensure that export refunds can be fixed further in advance for all ACP States in respect of a range of products drawn up in the light of the food requirements expressed by those States.

  2. Advance fixing shall be for one year and shall be applied each year throughout the life of this Agreement, it being understood that the level of the refund will be determined in accordance with the methods normally followed by the Commission.

  3. Specific agreements may be concluded with those ACP States which so request in the context of their food security policies.

  4. The specific agreements referred to in paragraph 3 shall not place in jeopardy production and trade flows in ACP regions.

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