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COMMERCIAL COOPERATION AGREEMENT

between the European Economic Community and the People's Republic of Bangladesh

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

of the one part ,

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH ,

of the other part ,

HAVING REGARD to the friendly relations and historic links between the Member States of the European Economic Community and Bangladesh and their common desire to consolidate and expand their commercial and economic relations ,

INSPIRED by their determination to strengthen , deepen and diversify their commercial and economic relations on the basis of comparative advantage and mutual benefit ,

CONSIDERING Bangladesh as one of the least developed of the developing countries ,

CONSCIOUS of the special characteristics and needs of the economy of Bangladesh ,

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 ,

VIEWING modern commercial policy as an important instrument for furthering international economic cooperation ,

HAVE DECIDED to conclude a Commercial Cooperation Agreement and to this end have designated as their Plenipotentiaries :

THE COUNCIL OF THE EUROPEAN COMMUNITIES :

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH :

WHO , having exchanged their Full Powers , found in good and due form ,

HAVE AGREED AS FOLLOWS :

Article 1

The Contracting Parties are determined to develop their commercial exchanges on the basis of mutual benefit so as to contribute to their economic and social progress , and to improving the balance and raising the volume of their mutual trade to as high a level as possible .

Article 2

The Contracting Parties shall , in their commercial relations , grant each other most-favoured-nation treatment in accordance with the provisions of the General Agreement on Tariffs and Trade .

Article 3

Each Contracting Party shall grant the other the highest degree of liberalization of imports and exports which it applies to third countries in general , and shall endeavour to provide maximum facilities compatible with its policies and obligations for products of interest to the other Party .

Article 4

The Contracting Parties undertake to promote the development and diversification of their mutual trade to the highest possible level . They shall take all appropriate steps to fulfil this undertaking , including particular measures , relevant to the improvement of export opportunities , which would contribute to realising the trade potential of their economies .

Article 5

The Contracting Parties will develop their economic cooperation , where linked with trade , in fields of mutual interest and in the light of developments in their economic policies .

Article 6

To assist in giving practical effect to Articles 4 and 5 , the Contracting Parties agree to promote contacts and cooperation between their economic organizations and to support institutions which have been or may be set up to this end .

Article 7

The Contracting Parties shall endeavour to increase their cooperation in commercial and related economic matters in third countries , where this will be in their mutual interest .

Article 8

1 . A Joint Commission shall be set up comprising representatives of the Community and of the People's Republic of Bangladesh . It shall hold one session each year . Additional sessions may be convened by common agreement at the request of either Contracting Party .

2 . The Joint Commission shall adopt its own rules of procedure and work programme .

3 . The Joint Commission may set up specialized Sub-Commissions to assist it in the performance of its tasks .

Article 9

The Joint Commission shall ensure the proper functioning of this Agreement . It shall , in particular , devise and recommend practical measures for achieving the objectives of developing and diversifying trade between the Contracting Parties and shall examine any difficulties likely to hinder those objectives .

Article 10

The Joint Commission shall be further required :

( a ) to study and devise ways of overcoming trade barriers and in particular existing non-tariff and quasi-tariff barriers in the various sectors of trade , taking into account the work undertaken in this field by the international organizations concerned ;

( b ) to endeavour to encourage the development of economic and commercial cooperation between the Contracting Parties and their economic organizations , in order to facilitate the development and diversification of their trade ;

( c ) to examine and recommend ways and means for the progressive adaptation of the trade pattern and marketing structures of the Contracting Parties with a view to promoting the evolution of their commercial and economic relations in accordance with their complementary possibilities , as well as the long-term objectives of the economies of the Contracting Parties , so as to rectify imbalances and maladjustments ;

( d ) to facilitate exchanges of information and encourage contacts on all subjects which may bear upon the prospects for cooperation in the economic field between the Contracting Parties on a mutually advantageous basis and upon the creation of favourable conditions for such cooperation ;

( e ) to devise and recommend measures , including assistance for the training of executives and for publicity , market intelligence and expert services , to promote the development and diversification of trade between the Contracting Parties .

Article 11

The Joint Commission shall also ensure the proper functioning of any sectoral Agreements between the Contracting Parties and , to this end , shall exercise the responsibilities entrusted to the joint bodies which have been or may be set up under such Agreements .

Article 12

The provisions of this Agreement shall be substituted for provisions of Agreements concluded between Member States of the Community and the People's Republic of Bangladesh to the extent to which the latter are either incompatible or identical with them .

Article 13

This Agreement shall apply to the territories in which the Treaty establishing the European Economic Community applies , on the conditions established in the said Treaty , and to the territory of the People's Republic of Bangladesh .

Article 14

The Annexes form an integral part of this Agreement .

Article 15

1 . This Agreement shall require ratification , acceptance or approval in accordance with the procedures in force in each of the Contracting Parties , who shall notify each other of the completion of the procedures necessary to that end .

2 . This Agreement shall enter into force on the first day of the month following the date on which the notifications referred to in paragraph 1 have been effected .

3 . This Agreement is concluded for a period of five years and shall be extended from year to year if neither Contracting Party denounces it six months before it expires .

4 . The Contracting Parties may amend this Agreement at any time to take account of new situations arising in the economic field and of the evolution of economic policies on both sides .

Article 16

This Agreement is drawn up in two copies in the Danish , Dutch , English , French , German , Italian and Bengali languages , each text being equally authentic .

ANNEX I

Joint Declaration concerning the functioning of the Joint Commission

1 . The representatives of the Contracting Parties in the Joint Commission will transmit the agreed recommendations to their respective authorities , for consideration and action to be taken as speedily and effectively as possible . In the event of the Joint Commission being unable to evolve a recommendation on a matter considered by either Contracting Party to be urgent or important , it shall submit the views of the two sides to the said authorities for further consideration .

2 . The Joint Commission should , when making proposals and recommendations , have due regard to the development plans of Bangladesh and to the progress of economic , industrial , social , environmental and scientific policies of the Community as well as to the level of economic development of the Contracting Parties .

3 . The Joint Commission will examine possibilities of and make recommendations for the efficient utilization of all available instruments , besides most-favoured-nation tariffs and Generalized Preferences , to promote trade in items of interest to Bangladesh .

4 . Subject to the agreement of the Contracting Parties when drawing up the agenda of the Joint Commission , this may include cooperation on mutually satisfactory terms in the development and utilization of natural resources and in other areas which may be identified as of particular importance to the trade potential of Bangladesh .

ANNEX II

Your Excellency ,

During the discussion which led to the conclusion this day of the Commercial Cooperation Agreement between the European Economic Community and the People's Republic of Bangladesh , the Community declared that it is prepared to bind bilaterally the tariffs already applied autonomously in respect of the products listed below which are of particular interest to Bangladesh . These concessions shall remain valid until they are confirmed , or modified , under the General Agreement on Tariffs and Trade , with the agreement of both Contracting Parties .

List of products concerned

Common Customs

* * Binding

* Description

Tariff heading

* * proposed %

No

03.01 * Fish , fresh ( live or dead ) , chilled or frozen :

* A . Freshwater fish :

* ex IV . Other :

* _ Hilsa spp . * free

09.02 * Tea :

* A . In immediate packings of a net capacity not

* exceeding 3 kg * 5

* B . Other * free

41.02 * Bovine cattle leather ( including buffalo leather ) and

* equine leather , except leather falling within heading No

* 41.06 , 41.07 or 41.08 :

* A . East India kip , whole , whether or not the heads

* and legs have been removed , weighing each not

* more than 4 * 5 kg net , not further prepared than

* vegetable tanned , whether or not having under -

* gone further preservative treatment with oil , but

* obviously unsuitable for immediate use in the

* manufacture of leather articles * free

* ex B . Other :

* _ Leather of East India kip , whole , whether or

* not the heads and legs have been removed ,

* weighing each more than 4 * 5 kg net and not

* more than 8 kg , not further prepared than

* vegetable tanned , whether or not having under -

* gone further preservative treatment with oil ,

* but obviously unsuitable for immediate use in

* the manufacture of leather articles * free

* _ Bovine skins , chrome tanned in the moist

state ( wet blue ) * free

41.03 * Sheep and lamb skin leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

41.04 * Goat and kid skin leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

41.05 * Other kinds of leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

We should be grateful if you would kindly confirm the agreement of the Government of the People's Republic of Bangladesh to the contents of this letter .

Please accept , Your Excellency , the assurance of our highest consideration .

For the Council of the European Communities

Head of the Bangladesh Delegation

Sir

I have the honour to acknowledge receipt of your letter of today , which reads as follows :

" During the discussion which led to the conclusion this day of the Commercial Co-operation Agreement between the European Economic Community and the People's Republic of Bangladesh , the Community declared that it is prepared to bind bilaterally the tariffs already applied autonomously in respect of the products listed below which are of particular interest to Bangladesh . These concessions shall remain valid until they are confirmed , or modified , under the General Agreement on Tariffs and Trade , with the agreement of both Contracting Parties .

List of products concerned

Common

Customs * * Binding

* Description

Tariff heading * * proposed %

No

03.01 * Fish , fresh ( live or dead ) , chilled or frozen :

* A . Freshwater fish :

* ex IV . Other :

* _ Hilsa spp . * free

09.02 * Tea :

* A . In immediate packings of a net capacity not

* exceeding 3 kg * 5

* B . Other * free

41.02 * Bovine cattle leather ( including buffalo leather ) and

* equine leather , except leather falling within heading No

* 41.06 , 41.07 or 41.08 :

* A . East India kip , whole , whether or not the heads

* and legs have been removed , weighing each not

* more than 4 * 5 kg net , not further prepared than

* vegetable tanned , whether or not having under -

* gone further preservative treatment with oil , but

* obviously unsuitable for immediate use in the

* manufacture of leather articles * free

* ex B . Other :

* _ Leather of East India kip , whole , whether or

* not the heads and legs have been removed ,

* weighing each more than 4 * 5 kg net and not

* more than 8 kg , not further prepared than

* vegetable tanned , whether or not having under -

* gone further preservative treatment with oil ,

* but obviously unsuitable for immediate use in

* the manufacture of leather articles * free

* _ Bovine skins , chrome tanned in the moist

* state ( wet blue ) * free

41.03 * Sheep and lamb skin leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

41.04 * Goat and kid skin leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

41.05 * Other kinds of leather , except leather falling within

* heading No 41.06 , 41.07 or 41.08 :

* B . Other :

* I . Not further prepared than tanned * free

We should be grateful if you would kindly confirm the agreement of the Government of the People's Republic of Bangladesh to the contents of this letter . "

I have the honour to confirm the agreement of the Government of the People's Republic of Bangladesh to the contents of this letter .

Please accept , Sir , the assurance of my highest consideration .

For the Government of the People's Republic of Bangladesh

Head of the Delegation of the European Economic Community

ANNEX III

Declaration of the European Economic Community concerning tariff adjustments

1 . On 1 July 1971 , the Community autonomously introduced a Generalized Scheme of Preferences on the basis of Resolution 21 ( II ) of the Second United Nations Conference on Trade and Development , 1968 . The Community is prepared , in the course of its endeavours to improve this system , to take into account the interests of the People's Republic of Bangladesh in the extension and strengthening of its trade relations with the Community .

2 . The Community is also prepared to examine in the Joint Commission the possibilities for further tariff adjustments to promote the development of trade with Bangladesh .

3 . The Community notes that , in this connection , the People's Republic of Bangladesh may notify it of the list of products in respect of which tariff concessions are desired , for examination in the Joint Commission .

4 . The Community understands that the People's Republic of Bangladesh will also be prepared to discuss in the Joint Commission the Community's proposals , if any , with regard to matters pertaining to the tariffs of the People's Republic of Bangladesh aimed at the development of trade between the Contracting Parties , taking into consideration the development needs of Bangladesh .

ANNEX IV

Declaration of the Government of the People's Republic of Bangladesh concerning tariff adjustments

1 . The People's Republic of Bangladesh notes that the Community is prepared , in the course of its endeavours to improve the system of Generalized Preferences , to take into account the interests of the People's Republic of Bangladesh in the extension and strengthening of its trade relations with the Community . In this connection , the People's Republic of Bangladesh will identify for consideration by the Community the areas in which the Community's Generalized Scheme of Preferences can be improved , more especially in the context of the provisions of the Joint Declaration of Intent .

2 . The People's Republic of Bangladesh further notes that the Community is also prepared to examine in the Joint Commission the possibilities for further tariff adjustments to promote the development of trade with Bangladesh .

3 . In this connection the People's Republic of Bangladesh may notify the Community of the list of products in respect of which tariff concessions are desired , for examination in the Joint Commission .

4 . The People's Republic of Bangladesh will also be prepared to discuss in the Joint Commission the Community's proposals , if any , with regard to matters pertaining to the tariffs of the People's Republic of Bangladesh aimed at the development of trade between the Contracting Parties , taking into consideration the development needs of Bangladesh .