COOPERATION AGREEMENT

between the European Economic Community and the Yemen Arab Republic

THE COUNCIL OF THE EUROPEAN COMMUNITY

of the one part, and

THE GOVERNMENT OF THE YEMEN ARAB REPUBLIC,

of the other part,

HAVING REGARD to the friendly relations and traditional links between the Yemen Arab Republic and the Member States of the Community;

DETERMINED to consolidate and deepen the existing relations between the Yemen Arab Republic and the European Community;

MINDFUL that the pursuit of these objectives results in the need for as extensive cooperation a possible which in the mutual interests of both parties should include the whole range of commercial, economic and development activities;

CONVINCED that this cooperation must be placed in a pragmatic framework which will enable it to envolve in step with each partner's policies;

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Peter BARRY,

Minister for Foreign Affairs of Ireland;

Wilhelm HAFERKAMP,

Vice-President of the Commission of the European Communities;

THE GOVERNMENT OF THE YEMEN ARAB REPUBLIC:

Mohamed al-GUNEID,

Minister of Development and

Chairman of the Central Planning Organization;

HAVE AGREED AS FOLLOWS:

Article 1

Most-favoured-nation treatment

1. The Contracting Parties 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;

(d) advantages which the Yemen Arab Republic grants to certain countries in accordance with the Protocol on Trade Negotiations among Developing Countries in the context of the General Agreements on Tariffs and Trade.

3. This Article shall apply without prejudice to the rights and obligations which exist under the General Agreement on Tariffs and Trade.

Article 2

Commercial cooperation

1. The Parties undertake to take appropriate measures in order to promote the development and diversification of their reciprocal commercial exchanges to the highest possible level taking into account their respective levels of development.

2. The Parties agree to study ways and means of facilitating trade and shall each in accordance with their respective legislation and in the conduct of their policies study and recommend trade promotion measures likely to encourage the expansion of imports and exports.

Article 3

Economic cooperation

1. In the light of their respective policies and economic objectives, and within the limits of their respective competences, the Contracting Parties shall foster economic cooperation in all fields of mutual interest in order to contribute to the development of their respective economies.

The objectives of such cooperation shall be to contribute to the development of the Parties' respective economies and to raising their standards of living.

2. Within this framework such cooperation shall, as appropriate,

inter alia

aim to:

— encourage cooperation in the fields of agriculture, agro-industries, fisheries, rural development and the growth of tourism in the Yemen Arab Republic,

— develop the human resources of the Yemen Arab Republic in particular in the field of vocational training,

— facilitate cooperation in the field of energy,

— encourage scientific and technological progress,

— encourage the mutual recognition of the need to maintain and improve a favourable climate for investment.

3. Without prejudice to the provisions of the Treaties establishing the European Communities, this Agreement and any action taken thereunder shall in no way affect the powers of the Member States of the Communities to undertake bilateral activities with the Yemen Arab Republic in the field of economic cooperation and to conclude, where appropriate, new economic cooperation agreements with this country.

Article 4

Development cooperation

1. The Community recognizes that the Yemen Arab Republic is a developing country.

2. The Community is ready to continue and develop its financial and technical cooperation for the development of the Yemen Arab Republic, within the framework of its aid programmes in favour of non-associated developing countries.

3. The Community will seek to coordinate its development cooperation with those of the Member States in the Yemen Arab Republic.

Article 5

Join Cooperation Committee

1. A Joint Cooperation Committee composed of representatives of both Parties shall be set up to promote and keep under review the various cooperation activities envisaged between the Parties in the framework of the Agreement and it shall make appropriate recommendations.

2. The Joint Committee shall adopt its own rules of procedures and programme of work.

3. The Committee will normally meet once a year.

Article 6

Territorial application

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Yemen Arab Republic.

Article 7

Duration

1. This Agreement shall enter into force on the first day of the month following the date on which the Contracting Parties have notified each other of the completion of the procedures necessary for this purpose. The Agreement shall be applicable 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.

2. This Agreement may be amended by mutual consent of the Parties in order to take into account any new situations which may arise.

Article 8

Authentic languages

This Agreement is drawn up in two copies in the Danish, Dutch, English, French, German, Greek, Italian and Arabic languages, each of these texts being equally authentic.