Explanatory Memorandum to COM(2010)638 - Conclusion of a partnership agreement with Iraq

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dossier COM(2010)638 - Conclusion of a partnership agreement with Iraq.
source COM(2010)638 EN
date 05-11-2010
On 23 March 2006 the Council authorised the Commission to negotiate a Trade and Cooperation Agreement with Iraq and issued negotiating directives in this regard. Negotiations were launched in November 2006 and progressed well with their conclusion in November 2009, after nine negotiating rounds.

At the seventh round of EU-Iraq negotiations, held in February 2009 in Baghdad, both Iraq and the EU agreed to enhance the status of the draft Agreement, by changing the title of the Agreement from “Trade and Cooperation Agreement” to “Partnership and Cooperation Agreement” and also through the creation of a Cooperation Council, meeting regularly at ministerial level. These changes were reflected in the negotiating directives approved by the Council.

The EU-Iraq Partnership and Cooperation Agreement (hereinafter “Agreement”) will mark the first ever contractual relation between the EU and Iraq. It provides a legal framework covering issues from regular political dialogue to trade relations and regulatory cooperation, and development assistance.

The aim of this Agreement, concluded for 10 years (renewable), is to build a solid basis for strengthening ties between Iraq and the EU. In particular, it aims to enhance political dialogue on bilateral, regional and global issues, improving the trade arrangements between Iraq and the EU, supporting Iraq’s own vital reform and development efforts and facilitating its integration into the wider international economy. The Agreement underlines the EU’s determination to play a significant role in Iraq’s transition and will be the main vehicle for the EU’s support to Iraq and further enhancement of EU-Iraq relations.

The main elements of the Agreement are the following:

1. Political dialogue and cooperation in the field of foreign and security policy

– Regular political dialogue, at ministerial as well as senior official level

– Clauses on human rights and countering proliferation of weapons of mass destruction, which are essential elements of the Agreement

– Clauses on combating terrorism, small arms and light weapons and the International Criminal Court

2. Trade and Investments

- A non-preferential trade agreement that incorporates basic World Trade Organization (WTO) rules, although Iraq is not yet a member of the WTO, and provides for some substantial preferential elements, namely as regards public procurement and services and investments. The trade section also includes an efficient dispute settlement mechanism, featuring binding panel rulings and compliance procedures.

3. Provisions for cooperation in a number of areas, such as (non-exhaustive list):

- Energy, transport, investment, human rights, education, science and technology, justice, freedom and security (including cooperation on migration and asylum), environment, regional or cultural cooperation.

4. Institutional provisions for the implementation of the Agreement, including a Cooperation Council meeting once a year at ministerial level and a Cooperation Committee to assist the Cooperation Council in its duties.

Pending the entry into force of the Agreement, certain parts of it should be applied on a provisional basis, as foreseen in Article 117 of the Agreement.

In the light of the significance of the Agreement, the Commission considers that the Council should send the notifications referred to in Article 117 only after a certain lapse of time so as to allow the European Parliament to express its views on the Agreement. The Commission is ready to work with the Council and the European Parliament so that the Agreement can be provisionally applied in the course of 2011.
  • 1. 
    OJ C
     
  • 2. 
    Investment protection, other than the treatment deriving from Article 25, including investor-state dispute settlement procedures, is not covered by this Section.

     
  • 3. 
    The terms 'constitution' and 'acquisition' of a juridical person shall be understood as including capital participation in a juridical person with a view to establishing or maintaining lasting economic links.

     
  • 4. 
    A juridical person is controlled by another juridical person if the latter has the power to name a majority of its directors or otherwise to legally direct its actions.

     
  • 5. 
    Treatment arising from commitments of the Union on the supply of services by contractual services suppliers and independent professionals shall be excluded from this provision. Treatment deriving from agreements concluded by the Union or its Members States providing for mutual recognition in accordance with Article VII of the GATS, shall also be excluded from this provision.

     
  • 6. 
    The Republic of Iraq may meet the requirement of this paragraph by according to services, service suppliers, establishments and investors of the Union, either formally identical treatment or formally different treatment to that it accords to its own like services, service suppliers, establishments and investors. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Republic of Iraq compared to like services, service suppliers, establishments and investors of the Union.

     
  • 7. 
    For greater certainty, the notification should be addressed to the Director General of the Trade Directorate General, or its successor.

     
  • 8. 
    The sole fact of requiring a visa shall not be regarded as nullifying or impairing those benefits.

     
  • 9. 
    OJ C
     
  • 10. 
    Investment protection, other than the treatment deriving from Article 25, including investor-state dispute settlement procedures, is not covered by this Section.

     
  • 11. 
    The Republic of Iraq may meet the requirement of this paragraph by according to services, service suppliers, establishments and investors of the Union, either formally identical treatment or formally different treatment to that it accords to its own like services, service suppliers, establishments and investors. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Republic of Iraq compared to like services, service suppliers, establishments and investors of the Union.

     
  • 12. 
    For greater certainty, the notification should be addressed to the Director General of the Trade Directorate General, or its successor.

     
  • 13. 
    Notes to sub- annex 1

     
  • 14. 
    The terms 'constitution' and 'acquisition' of a juridical person shall be understood as including capital participation in a juridical person with a view to establishing or maintaining lasting economic links.

     
  • 15. 
    A juridical person is controlled by another juridical person if the latter has the power to name a majority of its directors or otherwise to legally direct its actions.

     
  • 16. 
    Treatment arising from commitments of the Union on the supply of services by contractual services suppliers and independent professionals shall be excluded from this provision. Treatment deriving from agreements concluded by the Union or its Members States providing for mutual recognition in accordance with Article VII of the GATS, shall also be excluded from this provision.

     
  • 17. 
    The sole fact of requiring a visa shall not be regarded as nullifying or impairing those benefits.

     
  • 18. 
    For the purpose of this Agreement, intellectual property rights includes copyright, including copyright in computer programs and in databases, sui generis rights for non original databases, and rights related to copyright, rights related to patents, trademarks, trade names in so far as these are protected as exclusive property rights in the domestic law concerned, designs, layout-designs (topographies) of integrated circuits, geographical indications, including designations of origin, indications of source, plant varieties, protection of undisclosed information and the protection against unfair competition as referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property (Stockholm Act 1967).

     
  • 19. 
    For the purpose of this Agreement, intellectual property rights includes copyright, including copyright in computer programs and in databases, sui generis rights for non original databases, and rights related to copyright, rights related to patents, trademarks, trade names in so far as these are protected as exclusive property rights in the domestic law concerned, designs, layout-designs (topographies) of integrated circuits, geographical indications, including designations of origin, indications of source, plant varieties, protection of undisclosed information and the protection against unfair competition as referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property (Stockholm Act 1967).

     
  • 20. 
    Notes to sub- annex 1

     
  • 21. 
    OJ C
     
  • 22. 
    OJ C
     
  • 23. 
    OJ C
     
  • 24. 
    OJ C