EC/Lithuania Europe Agreement

OBJECTIVE: conclusion of a European association agreement between the Communities and Lithuania. COMMUNITY MEASURE: Decision 98/150/EC/ECSC/Euratom of the Council and the Commission on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Lithuania, of the other part. SUBSTANCE: this is a preferential agreement establishing a close and lasting association between the parties and creating an appropriate framework for the gradual integration of this country into the Union. It is concluded for an indefinite period and is based on respect for democratic principles and human rights. With regard to trade and the accompanying measures, the Europe Agreement fully integrates the provisions of the agreement on the liberalization of trade which entered into force on 1 January 1995 and progressively establishes a free trade area over a six year period (from 1 January 1995). It includes political dialogue at the highest possible level and has a transitional period expiring on 31 December 1999 for the definitive establishment of the Lithuania-European Communities association. This agreement also has provisions covering: - right of establishment, - free movement of workers, - supply of services (with a clause maintaining the status quo), - free movement of capital, - economic, cultural and financial cooperation: the various areas of cooperation include nuclear safety, environment, transport, banking services, monetary policy, social cooperation, consumer protection, tourism and customs cooperation. Provisions are also made with regard to justice and home affairs (action against drugs and money laundering, action against organized crime and corruption, illegal trading in nuclear materials and illegal immigration, taking account of the principles of readmission). The agreement also makes provision for the establishment of an Association Council to supervise the implementation of the agreement and with the power to take decisions in the specific cases provided for in the agreement. An Association Committee and a Parliamentary Committee are also established. The agreement replaces the agreement on trade and commercial and economic cooperation between the Community and Lithuania which entered into force on 1 February 1993, and as regards trade and the accompanying measures, the agreement on free trade which entered into force on 1 January 1995. ENTRY INTO FORCE: the EC-Lithuania association agreement enters into force on 1 February 1998. �