Committee Reports::Report - The Enlargement of the European Union::28 September, 1994::Appendix

Appendix 1

Europe Agreements with Poland & Hungary

Brief description of main elements

Europe Agreements include matters of both Community and Member State competence. They are concluded for unlimited periods with transition periods of ten years. The main elements are:

1.Political dialogue

discuss, including at highest political level, all subjects of common interest including i.a. :

developments in the territory of each of the parties (progress with political and economic reforms …)

bilateral issues

European issues (CSCE …)

international issues (UN-GA …)

The political dialogue has already started with all countries with Europe Agreement as a group. Meetings take place at level of ministers, of political directors, and for some selected subjects also at working group level.

2.Trade in goods

-Free trade for industrial goods. But for a few exceptions (incl. textiles) the EU will have abolished all its remaining tariffs at the end of this year.

-Trade in agricultural products:

consolidation of GSP advantages

some further EU concessions

further reciprocal concessions (reduced tariffs/levies within the limits of given quantities - “tariff quotas”).

separate sectoral agreements on trade in sheep and goat meat, and on wine (sigend Nov. 93)

separate fisheries agreement to be negotiated.

P & H have more time to liberate their market (until at the latest the end of the transition period) i.e. “asymmetry”.

3.Trade in services

Progressive liberalisation of supply of services accross the border to nationals and companies of the other party. Specific provisions for transport services.

4.National treatment of establishment

When an enterprise establishes itself in the territory of the other party it shall receive a treatment not less favourable than national enterprises; and this also for its operations. Reciprocity not later than end of transition period.

5.Public contracts

Upon entry into force of EA, P and H companies have access to contract award procedures in the Community under the same conditions as Community companies. Reciprocity not later than end of transition period.

6.Liberalisation of payments and financial transfers

Payments in respect of movement of goods, services, persons between the parties must be authorised in freely convertible currency; Capital transfers in respect of direct investments, repatriation of these investments and of profits therefrom must be authorised.

7.Competition rules

Rules concerning:

agreements between undertaking with a view to restrict or distort competition

abuse of dominant position

public aid

similar to the Rome Treaty rules.

8.Intellectual, industrial, commercial property

Legislation has to be introduced which gives the same protection as in the Community; Europe Agreement countries have to adhere to international conventions.

9.Approximation of laws

EA countries legislation on economic and related issues (incl. environment and social) has to be made compatible with community legislation.

10.Movement of workers

Not free movement but commitments by Member States not to discriminate against legally employed workers and their families. Best endeavours by MS to make further improvements, including allowing more P & H workers.

11.Economic co-operation

-assisting P & Heconomic restructuring

achieving competitiveness by end of transition period.

-cover all areas of mutual interests, e.g.: industrial standards, investment promotion, training, science and technology, environment, financial services, social issues, public administration, etc.

12.Cultural co-operation

-extension of existing cultural co-operation programmes

-promotion audio visual industry in Europe

13.Financial co-operation

Continuation of existing support facilities


ECSC loans

EIB loans

loans in support of macro-economic policies


-Association Council at ministerial level

-Association Committee

-Parliamentary Association Committee



Europe Agreements were:

-signed 16 Dec. 91

-ratification by all parties completed Nov 93

-adoption by Council 13 Dec 93

-entry into force 1 Feb. 94