TITLE III
RIGHT OF ESTABLISHMENT AND SERVICES

CHAPTER  1
RIGHT OF ESTABLISHMENT

ARTICLE 30

the Community and its Member States shall grant for the establishment of Jordanian companies treatment no less favourable than that accorded to like companies of any third country;

without prejudice to the reservations listed in Annex V, the Community and its Member States shall grant to subsidiaries of Jordanian companies established in a Member State treatment no less favourable than that accorded to any like Community company, in respect of their operations;

the Community and its Member States shall grant to branches of Jordanian companies, established in a Member State, treatment no less favourable than that accorded to like branches of companies of any third country, in respect of their operations.

without prejudice to the reservations listed in Annex VI, Jordan shall grant for the establishment of Community companies in its territory treatment no less favourable than that accorded to its own companies or to companies of any third country, whichever is the better;

Jordan shall grant to subsidiaries and branches of Community companies, established in its territory, in respect of their operations, treatment no less favourable than that accorded to its own companies or branches, or to Jordanian subsidiaries or branches of companies of any third country, whichever is the better.

The provisions of paragraphs 1(b) and 2(b) cannot be used so as to circumvent a Party's legislation and regulations applicable to access to specific sectors or activities by subsidiaries or branches of companies of the other Party established in the territory of such first Party.

The treatment referred to in paragraphs 1(b), 1(c) and 2(b) shall benefit companies, subsidiaries, and branches established in the Community and Jordan respectively at the date of entry into force of this Agreement and companies, subsidiaries and branches established after that date once they are established.

ARTICLE 31

The provisions of Article 30 shall not apply to air transport, inland waterways transport and maritime transport.

However, in respect of activities undertaken by shipping agencies for the provision of international maritime transport services, including intermodal activities involving a sea leg, each Party shall permit to the companies of the other Party their commercial presence in its territory in the form of subsidiaries or branches, under conditions of establishment and operation no less favourable than those accorded to its own companies or to subsidiaries or branches of companies of any third country whichever are the better.  Such activities include, but are not limited to:

marketing and sales of maritime transport and related services through direct contact with customers, from quotation to invoicing, whether these services are operated or offered by the service supplier itself or by service suppliers with which the service seller has established standing business arrangements;

purchase and use, on their own account or on behalf of their customer (and the resale to their customers) of any transport and related services, including inward transport services by any mode, particularly inland waterways, road and rail, necessary for the supply of an integrated service;

preparation of documentation concerning transport documents, customs documents, or other documents related to the origin and character of the goods transported;

provision of business information of any means, including computerized information systems and electronic data interchange (subject to any non discriminatory restrictions concerning telecommunications);

setting up of any business arrangement, including participation in the company's stock and the appointment of personnel recruited locally (or, in the case of foreign personnel, subject to the relevant provisions of this Agreement), with any locally established shipping agency;

acting on behalf of the companies, organizing the call of the ship or taking over cargoes when required.

ARTICLE 32

For the purpose of this Agreement:

a "Community company" or "Jordanian company" respectively shall mean a company set up in accordance with the laws of a Member State or of Jordan respectively and having its registered office or central administration or principal place of business in the territory of the Community or Jordan respectively.

However, should the company, set up in accordance with the laws of a Member State or Jordan respectively, have only its registered office in the territory of the Community or Jordan respectively, the company shall be considered a Community or Jordanian company respectively if its operations possess a real and continuous link with the economy of one of the Member States or Jordan respectively;

"subsidiary" of a company shall mean a company which is controlled by the first company;

"branch" of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;

establishment" shall mean the right of Community or Jordanian companies as referred to in point (a) to take up economic activities by means of the setting up of subsidiaries and branches in Jordan or in the Community respectively;   

"operation" shall mean the pursuit of economic activities;

"economic activities" shall mean activities of an industrial, commercial and professional character;

"national of a Member State or of Jordan" shall mean a physical person who is a national of one of the Member States or of Jordan respectively;

with regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of Jordan established outside the Community or Jordan respectively, and shipping companies established outside the Community or Jordan and controlled by nationals of a Member State or Jordanian nationals respectively, shall also be beneficiaries of the provisions of this Chapter and Chapter 2 if their vessels are registered in that Member State or in Jordan respectively in accordance with their respective legislation.

ARTICLE 33

The Parties shall use their best endeavours to avoid taking any measures or actions which render the conditions for the establishment and operation of each other's companies more restrictive than the situation existing on the day preceding the date of signature of the Agreement.

The provisions of this Article are without prejudice to those of Article 44.  The situations covered by Article 44 shall be solely governed by its provisions to the exclusion of any other.

ARTICLE 34

A Community company or Jordanian company established in the territory of Jordan or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of Jordan and the Community respectively, employees who are nationals of Community Member States and Jordan respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by such companies, subsidiaries or branches.  The residence and work permits of such employees shall only cover the period of such employment.

Key personnel of the abovementioned companies herein referred to as "organizations" are "intra corporate transferees" as defined in (c) in the following categories, provided that the organization is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:

(a)

persons working in a senior position with an organization, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent, including:

-

directing the establishment or a department or sub division of the establishment;

-

supervising and controlling the work of other supervisory, professional or managerial employees;

-

having the authority personally to recruit and dismiss or recommend recruiting, dismissing or other personnel actions;

(b) 

persons working within an organization who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management.  The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;

an "intra corporate transferee" is defined as a natural person working within an organization in the territory of a Party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other Party; the organization concerned must have its principal place of business in the territory of a Party and the transfer be to an establishment (branch, subsidiary) of that organization, effectively pursuing like economic activities in the territory of the other Party.

The entry into and the temporary presence within the respective territories of Jordan and the Community of nationals of the Member States or of Jordan respectively, shall be permitted, when these representatives of companies are persons working in a senior position, as defined in paragraph 2(a) above, within a company, and are responsible for the establishment of a Jordanian or a Community company, in the Community or Jordan respectively, when:

-

those representatives are not engaged in making direct sales or supplying services, and

-

the company has no other representative, office, branch or subsidiary in a Community Member State or Jordan respectively.

ARTICLE 35

ARTICLE 36

CHAPTER 2
CROSS-BORDER SUPPLY OF SERVICES

ARTICLE   37

The Parties shall use their best endeavours to allow progressively the supply of services by Community or Jordanian companies who are established in the territory of a Party other than that of the person for whom the services are intended, taking into account the development of the services sectors in the Parties.

The Association Council shall make recommendations for the implementation of the objective mentioned in paragraph 1.

ARTICLE 38

ARTICLE 39

With regard to maritime transport the Parties undertake to apply effectively the principle of unrestricted access to the international market and traffic on a commercial basis.

(a)

The above provision does not prejudice the rights and obligations arising under the United Nations Convention on a Code of Conduct for Liner Conferences, as applicable to a Party to this Agreement.  Non conference lines shall be free to operate in competition with a conference line as long as they adhere to the principle of fair competition on a commercial basis;

(b)

the Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.

In applying the principles of paragraph 1, the Parties shall:

(a)

not introduce cargo sharing arrangements in future bilateral Agreements with third countries concerning dry and liquid bulk and liner trade.  However, this does not exclude the possibility of such arrangements concerning liner cargo in those exceptional circumstances where liner shipping companies from one or other Party to this Agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;

(b)

abolish, upon entry into force of this Agreement, all unilateral measures, administrative, technical and other obstacles which could constitute a disguised restriction or have discriminatory effects on the free supply of services in international maritime transport.

CHAPTER 3
GENERAL PROVISIONS

ARTICLE 40

The Parties undertake to consider development of this Title with a view to the establishment of an "economic integration agreement" as defined in Article V of the General Agreement on Trade in Services (GATS).

The objective provided for in paragraph 1 shall be subject to a first examination by the Association Council at the latest five years after the entry into force of this Agreement.

The Association Council shall, when making such examination, take into account progress made in the approximation of laws between the Parties in the relevant activities.

ARTICLE 41

The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.

They shall not apply to activities which in the territory of either Party are connected, even occasionally, with the exercise of official authority.

ARTICLE 42

ARTICLE 43

ARTICLE 44

ARTICLE 45

ARTICLE 46

Notwithstanding any other provisions of the Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system.Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the obligations of a Party under the Agreement.

Nothing in the Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

ARTICLE 47