EC/Former Yugoslav Republic of Macedonia FYROM agreement: cooperation agreement

OBJECTIVE: conclusion of a cooperation agreement between the Community and the former Yugoslav Republic of Macedonia. SUBSTANCE: the purpose of the agreement, which was initialled on 19 June 1996 and authenticated by an exchange of letters - a procedure attributable to a difference between the parties concerning the name of the former Yugoslav Republic of Macedonia - is to promote comprehensive cooperation between the contracting parties and is concluded for an unlimited period. . Like all other agreements of this type, it includes a clause on respect for democratic principles, human rights and the principles of the market economy. . The agreement provides, in particular, that Community assistance and cooperation must contribute to the establishment of good-neighbourly relations between Macedonia and its neighbours in South-Eastern Europe and to the development of regional cooperation and trade. . Where trade is concerned, the agreement comprises a preferential trade regime, based on the autonomous import regime applied to the States which have emerged from the former Yugoslavia. It also includes a protocol defining the additional trade arrangements for certain steel products and a protocol on the rules of origin. . The protocol on financial cooperation forms an integral part of the cooperation agreement and provides for the financing of projects of common interest to the parties (transport infrastructure projects, in particular). The signature of the protocol on financial cooperation (and of the agreement as a whole) is subject to full settlement of Macedonia's debt to the Community. . It also includes an evolutionary clause providing for the possibility of strengthening contractual relations, in due course, when conditions for a possible association have been met. . In institutional terms, the agreement provides for the establishment of a Cooperation Council responsible for attaining the agreement's objectives. It is to have decision-making powers. �