PROTOCOL laying down the conditions and procedures for the implementation of the second stage of the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus and adapting certain provisions of the Agreement

THE EUROPEAN ECONOMIC COMMUNITY,

of the one part,

THE REPUBLIC OF CYPRUS,

of the other part,

HAVING REGARD to the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus signed at Brussels on 19 December 1972, hereinafter referred to as the Agreement,

CONSIDERING that Article 2 (3) of the Agreement provides for the elimination of obstacles as regards the main body of trade between the European Economic Community and Cyprus in two successive stages;

CONSIDERING that, under the terms of Article 2 (2) of the Agreement, the first stage was due to expire on 30 June 1977, but this stage has, however, been extended by the Additional Protocol to the Agreement, signed on 15 September 1977, until 31 December 1979 and subsequently, by the Transitional Protocol to the Agreement, signed on 7 February 1980, until 31 December 1980;

CONSIDERING that, at its meeting of 24 November 1980, the Association Council decided that the two Parties would enter the process into the second stage of the Agreement;

CONSIDERING that the Community and Cyprus wish to strengthen still further their relations in order to take account of the new dimension created by the accession of Spain and Portugal to the European Communities on 1 January 1986;

HAVE accordingly DECIDED to conclude a Protocol laying down the conditions and procedures for the implementation of Article 2 (3) of the Agreement, on the establishment of a customs union, and adapting certain provisions of the Agreement, and to this end have designated as their Plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Uffe ELLEMANN-JENSEN,

Minister for Foreign Affairs of Denmark,

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

Claude CHEYSSON,

Member of the Commission of the European Communities;

THE GOVERNMENT OF THE REPUBLIC OF CYPRUS:

George IACOVOU,

Minister for Foreign Affairs;

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

HAVE AGREED AS FOLLOWS:

Article 1

1. This Protocol lays down the conditions, arrangements and timetable for the implementation of the provisions of Article 2 (3), concerning the establishment of a customs union, of the Agreement.

2. The completion of the second stage of the Agreement shall take place in two phases, the first starting on the entry

into force of this Protocol and terminating 10 years thereafter and the second of a duration of five years that could be reduced to four years in accordance with the provisions of Article 29 of this Protocol.

3. The second stage shall be governed by the provisions of the Agreement as amended and completed by the following provisions.

TITLE I

FIRST PHASE

CHAPTER I

MOVEMENT OF GOODS

Article 2

During the first phase of the second stage, trade between the Community and Cyprus shall remain based on the system of origin rules set out in the Protocol to the Agreement determining the rules of origin to be applied to the products covered by the Agreement.

CHAPTER II

INDUSTRIAL PRODUCTS

Article 3

Articles 4 to 14 shall apply to industrial products; these mean products other than those falling under Annex II of the Treaty establishing the European Economic Community.

Section I

Elimination of customs duties between the Community and Cyprus

Article 4

On the entry into force of this Protocol, the Community shall abolish the annual ceilings for the following products originating in Cyprus:

>TABLE>

Article 5

1. Cyprus shall, on products originating in the Community, apart from those products listed in Annex 1 to this Protocol and in Annex I, list B to the Agreement, progressively abolish customs duties and charges having an equivalent effect, including customs duties of a fiscal nature, according to the following timetable:

>TABLE>

2. For each product, the basic duty on which Cyprus is to apply the successive reductions shall be the duty actually applied in respect of the Community on 1 January 1986.

Article 6

1. Notwithstanding Article 5, Cyprus shall, on the products originating in the Community listed in Annex 2 progressively abolish customs duties and charges having an equivalent effect, including customs duties of a fiscal nature, according to the following timetable:

>TABLE>

2. For each product listed in Annex 2, the basic duty on which Cyprus is to apply the successive reductions shall be the duty actually applied in respect of the Community on 1 January 1986.

Article 7

1. The rates of Cypriot tariff dismantling set out in Articles 5 and 6 may, in the first phase of 10 years, be adapted as necessary by the Association Council to take account of the economic development of Cyprus and the priorities laid down in the Cypriot development plan.

2. Following an application by Cyprus to the Community, the Association Council may, in order to meet the requirements of industrialization and development in

Cyprus, authorize Cyprus to reintroduce, increase or establish customs duties on products originating in the Community by up to 20 % ad valorem and in exceptional cases by up to 25 % ad valorem.

3. Cyprus may take appropriate measures, in accordance with the provisions of paragraphs 1 and 2 after informing the Association Council, where an increase in imports of a given product is or is likely to be seriously detrimental to the requirements of industrialization and development in Cyprus and where this increase is due to:

- the partial or total reduction by Cyprus, as provided for in Articles 5 and 6, of customs duties and charges having equivalent effect levied on the product in question, and

- the fact that the duties or charges having equivalent effect levied by the Community, on imports of raw materials or intermediate products used in the manufacture of the product in question are significantly lower than the corresponding duties or charges levied by Cyprus.

4. The measures referred to in paragraph 3 shall be examined within the Association Council. This examination shall take place within 30 working days of the notification of such measures by Cyprus. If the Association Council has not approved, within 30 working days, the measures taken by Cyprus, these measures shall be abolished.

5. The measures referred to in paragraphs 2 and 3 may be applied only to a maximum volume of 15 % of Cypriot imports from the Community calculated on the average total value in the two preceding years for which Community statistics are available.

6. In the event of Cyprus applying tariff measures referred to in paragraphs 1, 2, 3 and 4, preference in favour of products originating in the Community shall be maintained by an adaptation of the duties applied by Cyprus in respect of imports from third countries.

7. The measures referred to in paragraphs 1, 2, 3 and 4 shall be progressively eliminated according to a timetable agreed by the two contracting parties and abolished at the latest by the end of the first phase of the second stage of the Agreement.

The Association Council in exceptional cases may approve the extension of certain measures beyond the first phase.

Section II

Adoption by Cyprus of the Common Customs Tariff

Article 8

The Cypriot Customs Tariff apart from that applied on products listed in Annex 1 to this Protocol and in Annex I,

List B to the Agreement, shall be progressively aligned on the Common Customs Tariff as it stands at any given moment on the basis of the duties actually applied by Cyprus in respect of third countries on 1 January 1986 and in accordance with the following rules:

1. In the cases of products on which the duties actually applied by Cyprus at the date indicated above do not differ from the Common Customs Tariff by more than 15 % either way, the latter shall be applied by Cyprus from the entry into force of this Protocol.

2. In other cases, Cyprus shall apply, two months after the entry into force of this Protocol, duties reducing by 9 % the difference between the rate actually applied and the duty in the Common Customs Tariff.

Nine further reductions, each of 9 % shall be made at the beginning of the second, third, fourth, fifth, sixth, seventh, eighth, ninth and tenth years respectively after the entry into force of this Protocol.

The Common Customs Tariff shall be applied in its entirety at the beginning of the eleventh year following the entry into force of this Protocol, subject to the provisions of Article 7 (6) and (7).

3. In the event of the Common Customs Tariff being modified during the above period of 10 years, the rate of alignment shall be adjusted to ensure that the difference between the Cypriot Customs Tariff and the CCT is eliminated in equal steps between the date of modification of the CCT and the beginning of the eleventh year.

Article 9

Notwithstanding Article 8, Cyprus shall, for the products listed in Annex 2, align its customs tariff on the Common Customs Tariff in accordance with the following rules:

1. Cyprus shall apply, two months after the entry into force of this Protocol, duties reducing by 4 % the difference between the rate applied on 1 January 1986 and the duty in the Common Customs Tariff.

2. Two further reductions, each of 4 % shall be made at the beginning of the second and third years.

This difference shall be further reduced by three reductions, each of 6 % at the beginning of the fourth, fifth and sixth years and by four reductions each of 15 % at the beginning of the seventh, eighth, ninth and tenth years.

The Common Customs Tariff shall be applied in its entirety at the beginning of the eleventh year following the entry into force of this Protocol.

Section III

Elimination of quantitative restrictions by the Contracting Parties

Article 10

Cyprus shall abolish quantitative restrictions and all measures having equivalent effect on imports from the Community upon the entry into force of this Protocol apart from products listed in Annex I, List B to the Agreement.

Article 11

1. Notwithstanding Article 10, Cyprus may impose import licences on imports for home consumption originating in the Community for the products listed in Annex 1, according to the rules set out in paragraphs 2, 3, 4 and 5.

2. Within the quantities laid down in Annex 1, the import licence shall be issued automatically within a period of five working days from the submission of the request. Should it not be issued within this period, the products in question may nevertheless be freely imported.

3. During the first phase of the second stage, the quantities for certain products listed in Annex 1 shall increase by 50 % in 10 equal annual steps of 5 %.

4. The first increase shall be made to the initial quantities on 1 January of the year following the entry into force of this Protocol. Subsequent increases shall be at the beginning of each year.

5. Annex 7 shall define the rules which shall be applied by Cyprus for the administration of the quantities laid down in Annex 1.

Article 12

1. Notwithstanding Article 10, Cyprus may impose import licences on imports for home consumption originating in the Community up to the end of the first phase of the second stage for the products listed in Annex 3, according to the rules set out in paragraphs 2, 3, 4 and 5.

2. Within the quantities or values laid down in Annex 3, the import licences shall be issued automatically within a period of five working days from the submission of the request. Should it not be issued within this period, the products in question may nevertheless be freely imported.

3. During the first phase of the second stage, the quantities or values for the products listed in Annex 3 shall increase by:

- 100 % in 10 equal annual steps of 10 % for quantity limits,

- 150 % in 10 equal annual steps of 15 % for value limits.

4. Notwithstanding paragraph 3, during the first phase of the second stage the rate of increase of the quantities for the following products in Annex 3 shall be:

>TABLE>

5. The first increase shall be made to the initial quantities or values on 1 January of the year following the entry into force of this Protocol. Subsequent increases shall be at the beginning of each calendar year.

6. Where imports into Cyprus of a product originating in the Community listed in Annex 3 have for three consecutive years been less than 80 % of the quantity limit or value limit established under the provisions of paragraphs 3, 4 and 5, imports of that product from the Member States of the Community shall be liberalized as from the beginning of the year following these three years.

7. The Association Council may, in the context of the Decision to pass from the first phase to the second phase of the second stage, approve the extension of the provisions of paragraph 1 for products in Annex 3 beyond the first phase.

8. Annex VII shall define the rules which shall be applied by Cyprus for the administration of the quantity and value limits laid down in Annex 3.

Article 13

Cyprus shall progessively adjust any State monopolies of a commercial character, so as to ensure that, when the first phase of the second stage has ended, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States of the Community and nationals of Cyprus.

Section IV

Processed agricultural products

Article 14

The Community shall abolish the fixed component for the products mentioned in Annex I, List A to the Agreement, as

amended by the Additional Protocol signed at Brussels on 15 September 1977 and in Article 4 of the same Protocol, upon the entry into force of this Protocol.

CHAPTER III

AGRICULTURAL PRODUCTS

Article 15

For the purposes of Articles 16 to 26, agricultural products shall mean all those falling under Annex II of the Treaty establishing the European Economic Community.

Section I

Elimination of customs duties between the Community and Cyprus and adoption of the Common Customs Tariff

Article 16

1. On the entry into force of this Protocol, the Community and Cyprus shall progressively abolish residual customs duties and charges having an equivalent effect for agricultural products covered by reciprocal concessions in the Agreement and this Protocol which are listed in Annex IV and within the limits and in accordance with the conditions of such concessions. This tariff dismantlement shall apply under the same conditions and timetable laid down for industrial products in Article 5.

2. Notwithstanding paragraph 1, the customs duties and charges having an equivalent effect applicable on the importation into Cyprus of agricultural products covered by reciprocal concessions originating in the Community mentioned in Annex 5 shall, during the first phase of the second stage of the Agreement, be those of the General Customs Tariff of Cyprus.

3. The tariff preference granted to the Community for the products listed in Annex 5 and Annex 6 shall be maintained. In addition, Cyprus shall progressively abolish residual customs duties and charges having an equivalent effect for sugar originating in the Community falling within Cypriot tariff heading 17.01 according to the timetable laid down in Article 5.

4. The Community or Cyprus may propose, during the first phase, within the Association Council, to change the list of products of Annex 4 if such a change would be to the benefit of the Contracting Parties.

Article 17

1. Cyprus shall progressively apply the Common Customs Tariff for agricultural products covered by

reciprocal concessions in the Agreement and this Protocol, under the conditions and timetable laid down for industrial products in Article 8.

2. Notwithstanding paragraph 1, for the agricultural products covered by reciprocal concessions in the Agreement and listed in Annex 5, Cyprus, during the first phase of the second stage of the Agreement, shall not align its customs duties with the Common Customs Tariff.

Section II

Tariff quotas and calendars

Article 18

1. The tariff quota for new potatoes, falling within subheading 07.01 A II b) of the Common Customs Tariff, as laid down in the Agreement, shall be increased from 60 000 tonnes to 110 000 tonnes in 10 equal annual steps of 5 000 tonnes in the first phase of the second stage.

This tariff quota shall apply for the period from 16 May to 30 June.

2. The tariff quota for fresh table grapes falling within subheadings ex 08.04 A I a) and b) of the Common Customs Tariff, as laid down in the Agreement, shall be increased from 7 500 tonnes to 11 000 tonnes, by 600 tonnes in the first year, 500 tonnes in the second year and 300 tonnes in each of the eight years following of the first phase of the second stage.

This tariff quota shall apply for the period from 8 June to 4 August.

3. The tariff for dried grapes falling within subheading 08.04 B I of the Common Customs Tariff, as laid down in the Agreement shall be increased from 500 tonnes to 1 500 tonnes upon the entry into force of this Protocol and thereafter at the rate laid down in paragraph 4.

4. The Community shall increase in the first phase of the second stage the Community tariff quotas for agricultural products covered by concessions in the Agreement and this Protocol and originating in Cyprus other than those referred to in paragraphs 1 and 2 by 50 % in 10 equal steps of 5 % per annum of the Community tariff quota applicable at the entry into force of this Protocol. These provisions shall apply without prejudice to Article 19 (3).

5. For wines of fresh grapes falling within subheading ex 22.05 C of the Common Customs Tariff, put up in containers of two litres or less, originating in Cyprus, the provisions in paragraph 4 shall apply to a Community tariff quota of 35 000 hl.

For liqueur wines of an alcoholic strength by volume of 15 % or more falling within subheading ex 22.05 C originating in Cyprus, the provisions in paragraph 4 shall apply to a Community tariff quota of 150 000 hl.

Section III

New products and calendars

Article 19

1. For the products listed in paragraph 5 originating in Cyprus and imported into the Community, the customs duties applicable shall be phased out according to the procedures set out in Article 16 (1) of this Protocol and in this Article.

2. For the products referred to in paragraph 1, Cyprus shall progressively adopt the Common Customs Tariff according to the procedures set out in Article 17 (1) of this Protocol.

3. Where Community tariff quotas are applicable, these shall be increased apart from wine of fresh grapes in containers holding more than two litres, falling within subheadings ex 22.05 C I b) and C II b) of the Common Customs Tariff, according to the procedures set out in Article 18 (4).

4. For the purpose of eliminating customs duties, reference quantities are established for the following products originating in Cyprus:

- artichokes falling within subheading 07.01 L,

- kiwi fruit falling within subheading ex 08.09.

Should the volume of imports of one of these products exceed the reference quantity, the Community, having regard to the annual review of trade flows which it shall carry out, may make the product in question subject to a Community tariff quota, the volume of which shall be equal to the reference quantX4y.

5. For the products listed below, other than those f/r which a Community tariff quota or reference quantity is fixed, the Community may establish a reference quantity as provided for in paragraph 4 if it discovers, in the light of the annual review of trade flows which it shall carry out, that the volume of imports thruatens to cause difficulties on the Community market.

>TABLE>

Section IV

Special measures to take account of the enlargement of the Community

Article 20

1. For 1990 and for each successive marketing year, the Community shall decide, on the basis of the statistical review and analysis referred to in paragraph 2 whether to adjust the entry price, referred to in Regulation (EEC) N° 1035/72 on the common organization of the market in fruit and vegetables, for the following products originating in Cyprus, within the following quantitative limits:

>TABLE>

2. From 1987 onwards and at the end of each marketing year the Community shall carry out, on the basis of a statistical review, an analysis of the situation for the products referred to in paragraph 1 originating in Cyprus and exported to the Community.

For these same products, from 1989 onwards and for each subsequent year, the Community shall draw up a forecast of production and deliveries with Cyprus.

3. The possible adjustment provided for in paragraph 1 refers to the sum to be deducted, in respect of customs duty,

from the representative prices recorded in the Community for the purpose of calculating the entry price of these products, within the limits set out in Article 152 (2) (c) of the Act of Accession of Spain and Portugal.

Article 21

1. For wine of fresh grapes falling within heading N° ex 22.05 C of the Common Customs Tariff originating in Cyprus presented in containers holding two litres or less, the fixed amount added to the price referred to in Article 53 of Regulation (EEC) N° 822/87 on the common organization of the market in wine shall be phased out at the rate indicated below within the limit of an annual volume of 35 000 hl.

Upon the entry into force of this Protocol the fixed amount shall be reduced to 75 %.

Two years after the start of the second stage, the fixed amount shall be reduced to 60 %.

Four years after the start of the second stage, the fixed amount shall be reduced to 45 %.

Six years after the start of the second stage, the fixed amount shall be reduced to 30 %.

Eight years after the start of the second stage, the fixed amount shall be reduced to 15 %.

Ten years after the start of the second stage, the fixed amount shall be reduced to 0 %.

2. The Community may fix a special frontier price for wine of fresh grapes and for liqueur wines of an alcoholic strength by volume of 15 % or more, falling within subheading ex 22.05 C presented in containers of more than two litres, if, for the marketing year current at the entry into force of this Protocol, it is established on the basis of information available at the end of this current marketing year that there is a fall in the level of exports of these wines to

the Community compared to the previous marketing year. This latter marketing year shall serve as a reference year. For subsequent marketing years, the exports made shall be compared to the reference year.

Such special frontier price shall be fixed each year and before each marketing year and shall apply to imports up to an annual volume of:

- 26 000 hl for wines of fresh grapes falling within subheading ex 22.05 C,

- 73 000 hl for liqueur wines falling within subheading ex 22.05 C.

The situation shall be reviewed before 1 January 1990.

Section V

Elimination of quantitative restrictions on agricultural products

Article 22

Quantitative restrictions and measures having an equivalent effect on imports of agricultural products originating in the Community covered by reciprocal concessions shall be abolished by Cyprus upon the entry into force of this Protocol.

Article 23

1. Notwithstanding Article 22, Cyprus may continue to apply up to the end of the first phase of the second stage the existing import licensing system to imports originating in the Community for the products listed in Annex 5.

2. The Association Council may, in the context of the Decision to pass from the first phase to the second phase of the second stage approve the extension of the provisions referred to in paragraph 1 beyond the first phase.

Article 24

1. For the products set out in Annex 6 destined for home consumption originating in the Community, Cyprus shall for the quantities indicated in Annex 6 automatically issue import licences within a period of five working days from the submission of the request. Should they not be issued within this period, the goods in question may be freely imported.

2. The quantities for certain products listed in Annex 6 shall be increased by 30 % during the first phase of the second stage in 10 annual equal steps of 3 % of the initial quantity applicable upon the entry into force of this Protocol.

The first increase shall be made to the initial quantity on 1 January of the year following the entry into force of this Protocol.

3. Annex 7 shall define the rules which shall be applied by Cyprus for the administration of the quantities laid down in Annex 6.

4. Either the Community or Cyprus may propose, during the first phase, within the Association Council, to change the list of products in Annex 6 if such a change would be to the benefit of the contracting parties.

Section VI

Mechanisms of the common agricultural policy

Article 25

The application of the frontier mechanisms of the common agricultural policy shall not be affected during the first phase of the second stage, subject to special arrangements applied to certain products falling under Annex II of the Treaty establishing the European Economic Community in Articles 20 and 21 of this Protocol.

Article 26

1. The free movement of agricultural products, covered in the Agreement and the present Protocol by reciprocal concessions, shall be conditional on an agreement being made in the framework of the decision taken by the Association Council for the passage to the second phase of the second stage, on the following principles:

ii(i) the introduction by Cyprus of Community quality standards for these products;

i(ii) the application by Cyprus internally of domestic price constraints for these products similar to those in force in the Community, with a view to ensuring the stability of the domestic market and avoiding market crises. In this connection and with a view to preventing recourse to safeguard measures, procedures shall be set up for the identification of a state of crisis on the market and provision for measures which Cyprus should apply on its domestic market in relation to the degree of disturbance or risk of disturbance;

(iii) the application by Cyprus of Community measures for these products at the Cyprus frontier.

2. With a view to implementing the principles referred to in paragraph 1, Cyprus shall submit suggestions to the Community during the first phase of the second stage as to the effective measures Cyprus will adopt under its own responsibility on both its domestic market and at its frontiers which will enable free movement of the products referred to in paragraph 1 to be established.

3. The Community shall define its position on the suggestions of Cyprus referred to in paragraph 2, in the light, notably, of the policy debate within the bodies of the Association Council.

The Association Council shall decide on this subject before the end of the first phase of the second stage.

CHAPTER IV

HARMONIZATION OF ACCOMPANYING POLICIES

Article 27

1. The Contracting Parties recognize that the principles laid down in Articles 85 (agreements between undertakings), 86 (dominant position of an undertaking), 90 (public undertakings), 92 (State aid), 95 (taxation of products), 96 (repayments on exportation), 97 (turnover taxes), 98 (remissions and repayments in respect of exports) and 100 (approximation of laws) of the Treaty establishing the European Economic Community shall be applied in their relations within the Association.

2. The conditions and detailed rules for the application of these principles and the guarantees relating to their proper application shall be examined by the Contracting Parties during the first phase of the second stage within the Association Council.

3. The measures referred to in paragraph 2 that are essential to ensure the smooth functioning of the Customs Union shall be agreed between the Contracting Parties and laid down in a Protocol which shall enter into force at the beginning of the second phase at the latest.

Article 28

1. From the entry into force of the second stage in accordance with the principles set out in Article 27 concerning Articles 85, 86 and 92 of the Treaty establishing the European Economic Community, the following are incompatible with the proper functioning of the Agreement insofar as they may affect trade between the Community and Cyprus:

(a) all 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 as regards the production of or trade in goods;

(b) abuse by one or more undertakings of a dominant position in the territories of the Contracting Parties as a whole or in a substantial part thereof;

(c) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

2. Should a Contracting Party note that any such practice as is referred to in paragraph 1 is being applied by its partner, it may take appropriate measures after consultations within the Association Council.

TITLE II

SECOND PHASE

Article 29

1. The second phase of the second stage shall enter into force by a Decision of the Association Council.

2. The second phase of the second stage shall have a duration of five years that could be reduced to four years by a Decision of the Association Council.

3. The provisions of the first phase of the second stage shall continue to apply until the entry into force of the second phase.

Article 30

1. For the passage to the second phase of the second stage, as referred to in Article 29, the Association Council shall take a Decision on:

(a) the regime that will apply to the movement of goods;

(b) any measures concerning accompanying policies referred to in Article 27, not adopted during the first phase of the second stage;

(c) measures concerning the free movement of certain agricultural goods covered in the Agreement by reciprocal concessions;

(d) the provisions referred to in Title I, Chapters II and III of this Protocol.

2. In the second phase of the second stage of the Agreement the measures decided by the Association Council, referred to in paragraph 1, that are necessary to ensure the transition to the customs union shall be applied.

3. Trade in products falling under Annex II of the Treaty establishing the European Economic Community and trade in products subject to specific measures of Community trade policy shall, without prejudice to the Decision of the Association Council foreseen in paragraph 1 concerning products other than those referred to above, continue to be

based on the system of rules of origin referred to in Article 2 for as long as the conditions of free circulation of these products shall not be completely fulfilled.

4. The measures agreed by the Association Council to ensure the free movement of certain agricultural products as laid down in Article 26 shall be applied by Cyprus in accordance with the agreed timetable.

5. Having regard to the actual application by Cyprus of the measures referred to in paragraph 1 according to the agreed timetable, the Community shall dismantle its own frontier price mechanisms for these products at the same time and according to the same timetable.

Article 31

The customs union shall be fully achieved at the end of the second phase of the second stage.

TITLE III

GENERAL AND FINAL PROVISIONS

Article 32

1. A Trade and Economic Cooperation Committee shall be set up for the purpose of improving the working of the institutional mechanisms of the Agreement.

The Committee shall facilitate:

- the regular exchange of information on trade and production data and forecasts,

- the regular exchange of information on the possibilities for cooperation in areas covered by the Agreement.

The office of the chairman of the Committee shall be held alternately by a representative of the Commission of the European Communities and a representative of Cyprus.

2. The Association Council shall determine as soon as possible the composition of this Committee and how it shall function in accordance with Article 14 (2) of the Agreement. It may also decide where appropriate upon the submission of reports to the Council by the Committee.

Article 33

Either Contracting Party shall, if so requested by the other Contracting Party, provide all relevant information on any agreements it concludes containing tariff or trade provisions, and on any amendments to its customs tariff or external trade arrangements.

Where such amendments or agreements have a direct and specific impact on the functioning of the Agreement, appropriate consultations shall be held within the Association Council at the request of the other Contracting Party.

Article 34

1. Either Contracting Party may refer to the Association Council any dispute relating to the interpretation of the Agreement and of concern to the Community, a Member State of the Community or Cyprus.

2. The Association Council may settle the dispute by means of a decision.

3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.

4. In the event of it not being possible to settle the dispute in accordance with paragraph 2 of this Article, either party may notify the other of an appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure the Community and the Member States shall be deemed to be one Party to the dispute.

The Association Council shall appoint a third arbitrator.

The decisions of the arbitrators shall be taken by majority vote.

Each Party to the dispute must take the measures required for the implementation of the arbitrators' decision.

Article 35

Annexes 1, 2, 3, 4, 5, 6 and 7 and also the declarations and exchanges of letters in the Final Act shall form an integral part of this Protocol.

This Protocol shall form an integral part of the Agreement between the European Economic Community and the Republic of Cyprus.

Article 36

1. This Protocol shall be ratified, accepted or approved by the Contracting Parties in accordance with their own procedures; the Contracting Parties shall notify each other of the completion of the procedures necessary to that end.

2. This Protocol shall enter into force on the first day of the month following the said notification.

Article 37

This Protocol is drawn up in duplicate in the English, Danish, Dutch, French, German, Greek, Italian, Portuguese and Spanish languages, each of these texts being equally authentic.

En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente Protocolo.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne protokol.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Protokoll gesetzt.

Åéò ðßóôùóç ôùí áíùôÝñù, ïé õðïãåãñáììÝíïé ðëçñåîïýóéïé Ýèåóáí ôéò õðïãñáöÝò ôïõò óôï ðáñüí ðñùôüêïëëï.

In witness whereof the undersigned Plenipotentiaries have signed this Protocol.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent protocole.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente protocollo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder dit Protocol hebben gesteld.

Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do presente Protocolo.

Hecho en Luxemburgo, el diecinueve de octubre de mil novecientos ochenta y siete.

Udfærdiget i Luxembourg, den nittende oktober nitten hundrede og syvogfirs.

Geschehen zu Luxemburg am neunzehnten Oktober neunzehnhundertsiebenundachtzig.

ßÅãéíå óôï Ëïõîåìâïýñãï óôéò äÝêá åííÝá Ïêôùâñßïõ ÷ßëéá åííéáêüóéá ïãäüíôá åðôÜ.

Done at Luxembourg on the nineteenth day of October in the year one thousand nine hundred and eighty-seven.

Fait à Luxembourg, le dix-neuf octobre mil neuf cent quatre-vingt-sept.

Fatto a Lussemburgo, addì diciannove ottobre millenovecentottantasette.

Gedaan te Luxemburg, de negentiende oktober negentienhonderd zevenentachtig.

Feito ne Luxemburgo, em dezanove de Outubro de mil novecentos e oitenta e sete.

Por el Consejo de las Comunidades Europeas

For Rådet for De Europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

Ãéá ôï Óõìâïýëéï ôùí Åõñùðáúêþí ÊïéíïôÞôùí

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

>REFERENCE TO A FILM>

Por el Gobierno de la República de Chipre

For regeringen for Republikken Cypern

Für die Regierung der Republik Zypern

Ãéá ôçí êõâÝñíçóç ôçò ÊõðñéáêÞò Äçìïêñáôßáò

For the Government of the Republic of Cyprus

Pour le gouvernement de la république de Chypre

Per il governo della Repubblica di Cipro

Voor de Regering van de Republiek Cyprus

Pelo Governo da República de Chipre

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ANNEX 1

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ANNEX 2

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ANNEX 3

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ANNEX 4

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ANNEX 5

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ANNEX 6

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ANNEX 7

Concerning Articles 11, 12 and 24

1. The quantities in Annexes 1, 3 and 6 shall be open in one instalment at the beginning of the calender year.

However, the Republic of Cyprus may open these quantities in two or more equal instalments. In the case of both beef and cheese and curd these provisions will be subject to special arrangements to take into account local production. In that case, the remainder of the previous instalments shall be carried over to the subsequent instalment so as to comply with the global annual amount.

2. The Republic of Cyprus shall notify the Commission each year of the global annual quantities opened.

3. The Republic of Cyprus shall grant the licences for the quantities within a maximum period of five working days following each request on the basis of internal arrangements regarding allocation to Cypriot importers.

4. The import licence shall be valid for up to six months.

5. The Republic of Cyprus shall furnish information to the Commission annually on the use of the quantities in Annexes 1, 3 and 6.