Explanatory Memorandum to COM(2006)343 - Authorization of the conclusion of the agreement to renew and modify the agreement on research and development activities in the domain of intelligent manufacturing systems (IMS) between the EC and Australia, Canada, the EFTA countries of Norway and Switzerland, Korea, Japan and the USA

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This page contains a limited version of this dossier in the EU Monitor.

By Decision 1997/378/EC of 27.01.1997, the Council concluded the Agreement for scientific and technical cooperation in the domain of intelligent manufacturing systems (IMS) between the European Community and the United States of America, Japan, Australia, Canada, and the EFTA States of Norway and Switzerland. The agreement took the form of an exchange of letters that recorded the common understanding on the principles of the cooperation; details were attached as Terms of Reference (ToR) for IMS i. By Decision 2001/421/EC of 28 May 2001, the Republic of Korea joined the IMS agreement. The IMS agreement was concluded for 10 years and expired in April 2005 and the Commission had requested a negotiation mandate to renew and modify the agreement. By Council Decision of 29 November 2005, the Commission was authorised to negotiate with Australia, Canada, the EFTA countries of Norway and Switzerland, Korea, Japan and the United States of America the renewal and modification of the agreement. The results of these negotiations are fully in line with the negotiating mandate. They were integrated into the Terms of Reference for a Scheme for International Cooperation in Advanced Manufacturing (ToR) attached to the Council decision.

Noteworthy is that the IMS governance and operations were improved as set out in the negotiating mandate. In particular,

1. Public-private partnership was introduced for the governance of IMS. As a matter of fact, industry lead in the IMS governance is no longer obligatory. This is an important modification that had become necessary as industry alone could not mobilise the critical mass and resources for funding collaborative research. Therefore, the future participation of relevant governmental bodies responsible for research policies in support of manufacturing industry, in partnership with representatives from private industry, will certainly contribute to a more coherent IMS scheme with a larger project portfolio.

2. The budgetary principles for the IMS were aligned to the requirements of the Financial Regulation applicable to the general budget of the European Communities. Otherwise, the Commission would not be able to contribute to the IMS Interregional Secretariat which is funded by the contributions of all signatories to the IMS agreement.

3. Other noteworthy aspects of this renewal of the IMS agreement do relate to the internal relations between the Council and the Commission, in particular, the form of the agreement and the empowerment of the Commission to manage the Interregional IMS Secretariat:

- The form taken for the original IMS agreement (exchange of letters) is maintained as being appropriate for this kind of international collaboration with no exchange of funds. The Terms of Reference detailing this Scheme for International Cooperation in Advanced Manufacturing are attached to the individual letters for this exchange.

- These IMS Terms of Reference stipulate that the chair of the IMS governance rotates among the signatories to the agreement. The chairman is responsible for setting up and managing the Interregional IMS Secretariat serving all IMS participants. However, the Community, due to the lack of a legal base in the Council decision of 1997/378/EC of 27.01.1997, could not set up the Interregional Secretariat and consequently had to decline the chair. In order to fulfil this duty from the IMS agreement, provision is made in the Draft Council Decision that the European Community can host the interregional IMS secretariat in Europe.

4. Participants will review the scheme every 5 years to determine whether it should be continued, modified or terminated. A participant may withdraw at any time subject to 12 months’ notice to other participants.

5. Annual contributions (revenue) by all other signatories to the IMS agreement will form earmarked revenue in accordance with Art. 18 paragraph 1d of the Financial Regulation applicable to the general budget of the European Communities.