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Commission of the European Communities COMMISSION OF THE EUROPEAN COMMUNITIES COM(94) 327 final Brussels, 13.07.1994 94/ 0183CCNS) Proposal for a COUNCIL DECISION on the conclusion by the European Community of the Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other (presented by the Commission) DRAFT COMMISSION DECISION on the conclusion on behalf of the European Coal and Steel Community and the European Atomic Energy Community of the Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other. u EXPLANATORY MEMORANDUM 1. The attached proposals for a Council and Commission Decision constitute the legal instruments for the conclusion of the Free Trade Agreements between the European Community, the European Atomic Energy Community and the European Coaf and Steel Community, on the one hand, and with each of the Baltic states, i.e. Estonia, Latvia and Lithuania, on the other. 2. Estonia's, Latvia's and Lithuania's relations with the European Union are covered by Agreements on Trade and Commercial and Economic Cooperation which entered into force in February/March 1993. As a response to the demands of the three Baltic countries the European Council in Copenhagen invited the Commission to submit proposals for developing the Trade and Cooperation Agreements into free trade agreements. Following the Council's adoption of the negotiating directives on 7 February 1994, negotiations were opened with Latvia on 21 February 1994, with Estonia on 23 February 1994 and with Lithuania on 28 February 1994. The Agreements were initialled with Latvia on 20 June 1994, with Lithuania on 27 June 1994 and with Estonia on 13 July 1994. 3. The Free Trade Agreements modify the Agreements on Trade and Commercial and Economic Cooperation insofar as the trade provisions of the latter are rescinded. 4. The structure of the three Agreements is very similar and is based on the models of the Interim Agreements which were concluded with six associated central and eastern European countries. The Free Trade Agreements comprise the following elements: - Human rights clause and encouragement for regional cooperation among the Baltic countries - Preferential Agreements. Establishment of a free trade zone on industrial products. With all three countries the EU eliminates all import and export duties and quantitative restrictions upon entry into force of the Agreement whilst the regimes of the three Baltics differ. Estonia, which does apply practically not any trade restrictions, grants reciprocity upon entry into force. Latvia and Lithuania will abolish all trade restrictions for most products upon entry into force of the Agreements, but for sensitive products Latvia will maintain export and import restrictions for up to four and Lithuania for up to six years; - Trade in textile products will be ruled by specific provisions. Concerning tariff aspects, the EU has granted Latvia and Lithuania consolidation of the GSP regime while Estonia will benefit from zero tariffs for all textile products. Quantitative aspects are governed by protocols: with Estonia a protocol was concluded during the free trade negotiations; with Latvia and Lithuania the existing agreements have been taken over as Protocols. - Concessions by both Parties on sensitive products such as agricultural, processed agricultural and fisheries products are covered by separate Annexes and Protocols; & - Rules of origin and customs cooperation provisions are covered by separate Protocols; - The Joint Committee established by the existing trade and cooperation agreements will perform the duties assigned to it by the free trade agreements; The Agreements will enter into force on 1 January 1995. 5. The procedures for signing and concluding the Agreements differ between the EC, EAECandECSC. The Agreement will be concluded as follows: - the Council, after consulting Parliament, will conclude the Agreements on behalf of the EC under Article 228, paragraphs 2 and 3, first indent, in conjunction with Article 113 of the EC Treaty, by adopting the Decision contained in annex; - the Council will approve the Agreements in accordance with the second paragraph of Article 101 of the Euratom Treaty. The Commission will then conclude the Agreements (on behalf of the European Atomic Energy Community); - the Commission will conclude the Agreements on behalf of the ECSC by adopting the Decisions contained in annex in accordance with Article 95 of the ECSC Treaty, with the unanimous assents of the Council and following consultations of the Consultative Committee. 6 The Commission accordingly asks the Council to adopt the attached proposals for its decisions and to give its assents to the attached draft Commission decisions. c Proposal for a COUNCIL DECISION on the conclusion by the European Community of the Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other THE COUNCIL OF THE EUROPEAN COMMUNITIES Having regard to the Treaty establishing the European Community, and in particular Article 228, paragraphs 2 and 3, first indent, in conjunction with Article 113 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, HAS DECIDED AS FOLLOWS : Article 1 The Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other part, together with the Protocols, the exchanges of letters and the declarations, are hereby approved on behalf of the European Community . These texts are attached to this Decision. Article 2 The President of the Council shall give the notification provided for in Article 51 of the Agreement on free trade and trade-related matters on behalf of the European Community . Done at Brussels, For the Council M DRAFT COMMISSION DECISION on the conclusion on behalf of the European Coal and Steel Community and the European Atomic Energy Community of the Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other. THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular the first paragraph of Article 95 thereof, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof, Having consulted the ECSC Consultative Committee and with the assent of the Council, Whereas, in order to achieve the objectives of the Community set out in particular in Articles 2 and 3 of the Treaty establishing the European Coal and Steel Community it is necessary to conclude the Agreement on free trade and trade-related matters, and whereas the Treaty does not make provision for all the cases covered by this Decision, HAS DECIDED AS FOLLOWS : Article 1 The Agreement on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other, together with the Protocols, the exchanges of letters and the declarations, are hereby approved on behalf of the European Coal and Steel Community and the European Atomic Energy Community. These texts are attached to this Decision. Article 2 The President of the Commission shall give the notification provided for in Article 51 of the Agreement on free trade and trade-related matters on behalf of the European Coal and Steel Community and the European Atomic Energy Community. Done at Brussels, For the Commission le AGREEMENT on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other part ^ v- AGREEMENT on free trade and trade-related matters between the European Community, the European Atomic Energy Community and the European Coal and Steel Community, of the one part, and the Republic of Lithuania, of the other part The EUROPEAN COMMUNITY, the EUROPEAN ATOMIC ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community', of the one part, and the REPUBLIC OF LITHUANIA, hereinafter referred to as 'Lithuania'; of the other part, WHEREAS the Parties recall the historical links between them and the common values they share; whereas they wish to reinforce these links, to establish close and lasting relations on a basis of reciprocity allowing Lithuania to participate in the process of European integration, in re-enforcing and further developing the relations previously established, in particular via the trade and co-operation agreement; WHEREAS this Agreement contributes to the attainment of Association; WHEREAS the Parties are committed to the intensification of political and economic liberties which constitute the basis of the new trade agreement and to the necessary transition of Lithuania to a new
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