FRAMEWORK AGREEMENT for cooperation between the European Economic Community and the Federative Republic of Brazil

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

of the one part, and

THE GOVERNMENT OF THE FEDERATIVE REPUBLIC OF BRAZIL,

of the other part,

INSPIRED by the friendly relations and traditional links between the Federative Republic of Brazil and the Member States of the European Economic Community;

RECOGNIZING that the European Economic Community and the Federative Republic of Brazil desire to establish a direct link with each other which will support, complement and extend the relations existing between the Federative Republic of Brazil and the Member States of the European Economic Community;

RESOLVED to consolidate, deepen and diversify their commercial and economic relations to the full extent of their growing capacity, so as to meet each other's requirements on the basis of mutual benefit and exploration of the complementarity of their economies in a dynamic context;

MINDFUL that the more dynamic trade relationship which both the European Economic Community and the Federative Republic of Brazil desire calls for cooperation in the field of commercial and economic endeavour;

CONSCIOUS that such cooperation is between equal partners but will take into account their respective levels of economic development and the Federative Republic of Brazil's membership of the Group of 77;

PERSUADED that such cooperation should be realized in evolutionary and pragmatic fashion as their policies develop;

DESIRING furthermore to contribute to the development of world trade in order to promote stronger economic growth and social progress;

RECOGNIZING the value of a Framework Agreement for the furtherance of the partner's economic growth and development objectives;

HAVE DECIDED to conclude a Framework Agreement for cooperation between the European Economic Community and the Federative Republic of Brazil and to this end have designated as their plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Gaston THORN

President-in-Office of the Council of the European Communities;

Wilhelm HAFERKAMP

Vice-President of the Commission of the European Communities;

THE GOVERNMENT OF THE FEDERATIVE REPUBLIC OF BRAZIL:

Ramiro SARAIVA GUERREIRO

Minister of State for External Relations of the Federative Republic of Brazil;

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

HAVE AGREED AS FOLLOWS:

Article 1

Most-favoured-nation treatment

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

Article 2

Commercial cooperation

1. The Contracting Parties undertake to promote the development and diversification of their commercial exchanges to the highest possible level consistent with their respective economic situations.

2. To this end the Parties agree to study ways and means of overcoming trade barriers, in particular non-tariff and quasi-tariff barriers, taking into account the work carried out by international organizations in this field.

3. The Contracting Parties shall, each in accordance with its legislation, conduct a policy aimed at: (a) granting each other the widest facilities for commercial transactions in which either Party has an interest;

(b) cooperating bilaterally and at the multilateral level in the solution of commercial problems of common interest, including those relating to commodities, semi-manufactured and manufactured products;

(c) taking fully into account their respective needs and interests regarding both access to and the further processing of resources and access to each Contracting Party's market for the other Party's semi-manufactured and manufactured products;

(d) bringing together economic operators in the two regions with the aim of diversifying and expanding existing trade flows;

(e) studying and recommending trade promotion measures likely to encourage the expansion of imports and exports.

Article 3

Economic cooperation

1. The Contracting Parties, in the light of their mutual interests and taking into account their long-term economic aspirations, shall foster economic cooperation in all fields deemed suitable by the Parties. Among the objectives of such cooperation shall be: - to encourage the development and prosperity of their respective industries,

- to open up new sources of supply and new markets,

- to encourage scientific and technological progress,

- generally to contribute to the development of their respective economies and standards of living.

2. As means to such ends, the Contracting Parties shall endeavour inter alia to facilitate and promote by appropriate means: (a) broad and harmonious cooperation between their respective industries, in particular in the form of joint ventures;

(b) greater participation by their respective economic operators in the industrial development of the Contracting Parties on mutually advantageous terms;

(c) scientific and technological cooperation;

(d) cooperation in the field of energy;

(e) cooperation in the agricultural sector;

(f) favourable conditions for the expansion of investment on a basis of advantage for both Parties;

(g) cooperation in respect of third countries.

3. The Contracting Parties shall as appropriate encourage the regular exchange of information relating to commercial and economic cooperation.

4. Without prejudice to the relevant 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 Federative Republic of Brazil in the field of economic cooperation and to conclude, where appropriate, new economic cooperation agreements with the Federative Republic of Brazil.

Article 4

Joint Cooperation Committee

1. A Joint Cooperation Committee shall be established, consisting of representatives of the Community and of Brazil. It shall meet once a year. Extraordinary meetings may be called by mutual agreement.

2. The Committee shall promote and keep under review the various commercial and economic cooperation activities envisaged between the Community and Brazil. Consultations shall be held in the Committee at an appropriate level to facilitate the implementation of this Agreement and to further the attainment of its general aims.

Article 5

Other agreements

This Agreement shall replace the trade agreement between the European Economic Community and the Federative Republic of Brazil which has been in application since 1 January 1974.

Subject to the provisions concerning economic cooperation in Article 3 (4), the provisions of this Agreement shall replace the provisions of agreements concluded between Member States of the Communities and the Federative Republic of Brazil where such provisions are either incompatible with or identical to the provisions of this Agreement.

Article 6

European Coal and Steel Community

A separate Protocol shall be agreed between the European Coal and Steel Community and its Member States, on the one hand, and the Federative Republic of Brazil on the other.

Article 7

The Annex to this Agreement shall form an integral part thereof.

Article 8

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 Federative Republic of Brazil.

Article 9

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.

2. This Agreement is concluded for a period of five years. It shall be renewed on a yearly basis unless one of the Contracting Parties denounces it six months before the date of expiry.

Article 10

Authentic languages

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

Udfærdiget i Bruxelles, den attende september nitten hundrede og firs.

Geschehen zu Brüssel am achtzehnten September neunzehnhundertachtzig.

Done at Brussels on the eighteenth day of September in the year one thousand nine hundred and eighty.

Fait à Bruxelles, le dix-huit septembre mil neuf cent quatre-vingt.

Fatto a Bruxelles, addì diciotto settembre millenovecentottanta

Gedaan te Brussel, de achttiende september negentienhonderd tachtig.

Feito em Bruxelas, aos dezoito de setembro de mil novecentos e oitenta.

For Rådet for De europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen

Pelo Conselho das Comunidades Europeias >PIC FILE= "T0035700">

For regeringen for Den føderative republik Brasilien

Für die Regierung der Föderativen Republik Brasilien

For the Government of the Federative Republic of Brazil

Pour le gouvernement de la république fédérative du Brésil

Per il governo della Repubblica federale del Brasile

Voor de Regering van de Federatieve Republiek Brazilië

Pelo Governo da República Federativa do Brasil >PIC FILE= "T0035701">

ANNEX Cooperation regarding the marketing of cocoa butter and soluble coffee

1. The Community shall, in pursuance of its offer of generalized preferences as notified to UNCTAD and in accordance with arrangements based on the conclusions reached within that body, suspend the Common Customs Tariff duties on the following products, originating in developing countries, and substitute the rate shown against each one: >PIC FILE= "T0035702">

2. Preferential imports under point 1 shall be limited to Community tariff quotas amounting, for 1974, to 21 600 tonnes for cocoa butter falling within heading No ex 18.04 and 18 750 tonnes for soluble coffee falling within tariff subheading 21.02 ex A.

After the first year of application of the Agreement, the above quotas shall be increased annually, under the Community system of generalized preferences, on the basis of the Community's needs and imports ; they may be amended for any changes made in the list of countries to which that system applies.

3. If the Community finds that products to which the arrangements described in point 1 apply are imported into the Community in such quantities or at such prices that these imports are or are likely to be particularly harmful to the interests of Community producers of like products or of products in direct competition, or if they have adverse effects on the situation in the associated countries, the Common Customs Tariff duties may be reimposed in part or in whole for the products in question in respect of the country or countries, or territory or territories, where such harmful effect originates. Such measures may also be taken in the event of serious harm, or its likelihood, to a single region of the Community.

4. Brazil shall take all appropriate steps to ensure that its policy regarding prices and other conditions for the marketing of cocoa butter and soluble coffee disturbs neither the internal market of the Community nor its traditional patterns of trade.

5. In the context of the trade cooperation provided for in Article 2 of the Agreement, Brazil is prepared, within the Joint Committee established by the Agreement, to undertake a periodic review of the effect on the Community market of its export price policy for cocoa butter and soluble coffee.

6. Should any difficulties arise in the implementation of the provisions of this Annex, the two Parties will discuss them in the Joint Committee with a view to finding mutually satisfactory solutions.

Exchange of letters on sea transport

Your Excellency,

I have the honour to confirm the following:

In view of the concern expressed by the European Economic Community and the Member States on the occasion of the negotiation of the Agreement between the Community and Brazil, signed this day, as regards obstacles to trade resulting from sea transport conditions, it has been agreed that mutually satisfactory solutions will be sought as regards sea transport between Brazil and the Community and the Member States.

To this end, it has also been agreed that, at the first meeting of the Joint Committee, the problems mentioned in the first paragraph, which could affect the development of reciprocal trade, will be examined with a view to ensuring the harmonious conduct of such trade.

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

For the Council of the European Communities and the Member States of the Community

Sir,

I have the honour to confirm the following:

In view of the concern expressed by the European Economic Community and the Member States on the occasion of the negotiation of the Agreement between the Community and Brazil, signed this day, as regards obstacles to trade resulting from sea transport conditions, it has been agreed that mutually satisfactory solutions will be sought as regards sea transport between Brazil and the Community and the Member States.

To this end, it has also been agreed that, at the first meeting of the Joint Committee, the problems mentioned in the first paragraph, which could affect the development of reciprocal trade, will be examined with a view to ensuring the harmonious conduct of such trade.

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

For the Government of the Federative Republic of Brazil

ANNEX Cooperation regarding the marketing of cocoa butter and soluble coffee

1. The Community shall, in pursuance of its offer of generalized preferences as notified to UNCTAD and in accordance with arrangements based on the conclusions reached within that body, suspend the Common Customs Tariff duties on the following products, originating in developing countries, and substitute the rate shown against each one: >PIC FILE= "T0035702">

2. Preferential imports under point 1 shall be limited to Community tariff quotas amounting, for 1974, to 21 600 tonnes for cocoa butter falling within heading No ex 18.04 and 18 750 tonnes for soluble coffee falling within tariff subheading 21.02 ex A.

After the first year of application of the Agreement, the above quotas shall be increased annually, under the Community system of generalized preferences, on the basis of the Community's needs and imports ; they may be amended for any changes made in the list of countries to which that system applies.

3. If the Community finds that products to which the arrangements described in point 1 apply are imported into the Community in such quantities or at such prices that these imports are or are likely to be particularly harmful to the interests of Community producers of like products or of products in direct competition, or if they have adverse effects on the situation in the associated countries, the Common Customs Tariff duties may be reimposed in part or in whole for the products in question in respect of the country or countries, or territory or territories, where such harmful effect originates. Such measures may also be taken in the event of serious harm, or its likelihood, to a single region of the Community.

4. Brazil shall take all appropriate steps to ensure that its policy regarding prices and other conditions for the marketing of cocoa butter and soluble coffee disturbs neither the internal market of the Community nor its traditional patterns of trade.

5. In the context of the trade cooperation provided for in Article 2 of the Agreement, Brazil is prepared, within the Joint Committee established by the Agreement, to undertake a periodic review of the effect on the Community market of its export price policy for cocoa butter and soluble coffee.

6. Should any difficulties arise in the implementation of the provisions of this Annex, the two Parties will discuss them in the Joint Committee with a view to finding mutually satisfactory solutions.

Exchange of letters on sea transport

Your Excellency,

I have the honour to confirm the following:

In view of the concern expressed by the European Economic Community and the Member States on the occasion of the negotiation of the Agreement between the Community and Brazil, signed this day, as regards obstacles to trade resulting from sea transport conditions, it has been agreed that mutually satisfactory solutions will be sought as regards sea transport between Brazil and the Community and the Member States.

To this end, it has also been agreed that, at the first meeting of the Joint Committee, the problems mentioned in the first paragraph, which could affect the development of reciprocal trade, will be examined with a view to ensuring the harmonious conduct of such trade.

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

For the Council of the European Communities and the Member States of the Community

Sir,

I have the honour to confirm the following:

In view of the concern expressed by the European Economic Community and the Member States on the occasion of the negotiation of the Agreement between the Community and Brazil, signed this day, as regards obstacles to trade resulting from sea transport conditions, it has been agreed that mutually satisfactory solutions will be sought as regards sea transport between Brazil and the Community and the Member States.

To this end, it has also been agreed that, at the first meeting of the Joint Committee, the problems mentioned in the first paragraph, which could affect the development of reciprocal trade, will be examined with a view to ensuring the harmonious conduct of such trade.

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

For the Government of the Federative Republic of Brazil