TITLE IV
PAYMENTS, CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS

 


 CHAPTER 1 
PAYMENTS AND CAPITAL MOVEMENTS

 

ARTICLE 48


Subject to the provisions of Articles  51 and  52, current payments connected with the movement of goods, persons, services and capital within the framework of this Agreement shall be free of restrictions.

ARTICLE 49


1.

Within the framework of the provisions of this Agreement, subject to the provisions of Articles 50 and 51, and without prejudice to Annex VI referred to in Article 30(2)(a), there shall be no restrictions on the movement of capital from the Community to Jordan and on the movement of capital involving direct investment from Jordan to the Community.

2.

The outflow of Jordanian capital to the Community, other than direct investment, shall be subject to the prevailing laws in Jordan.

3. 

The Parties will hold consultations with a view to achieving complete liberalization of capital movements as soon as conditions are met.

ARTICLE 50

Subject to other provisions in this Agreement and other international obligations of the Community and Jordan, the provisions of Article 49 shall be without prejudice to the application of any restrictions which exist between them on the date of entry into force of this Agreement, in respect of the movement of capital between them involving direct investment, including real estate, and establishment.

However, the transfer abroad of investments made in Jordan by Community residents or in the Community by Jordanian residents and of any profits stemming therefrom shall not be affected.

ARTICLE 51

Where, in exceptional circumstances, movements of capital between the Community and Jordan cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Jordan, the Community or Jordan respectively may, in conformity with the conditions laid down within the framework of the GATS and with Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, take safeguard measures with regard to movements of capital between the Community and Jordan for a period not exceeding six months if such measures are strictly necessary.

ARTICLE 52

Where one or more Member States of the Community or Jordan face or risk facing serious difficulties concerning balance of payments, the Community and Jordan respectively may, in conformity with the conditions laid down within the framework of the GATT and with Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, take restrictive measures with regard to current payments if such measures are strictly necessary.  The Community or Jordan, as appropriate, shall inform the other Party immediately thereof and shall provide as soon as possible a timetable for the removal of such measures.

CHAPTER 2
COMPETITION AND OTHER ECONOMIC MATTERS 

 

ARTICLE 53


1.

The following are incompatible with the proper functioning of the Agreement, insofar as they may affect trade between the Community and Jordan:

(a)

all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(b)

abuse by one or more undertakings of a dominant position in the territories of the Community or Jordan as a whole or in a substantial part thereof;

(c)

any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.

2.

Any practice contrary to this Article shall be assessed on the basis of the criteria resulting from the application of the rules contained in Articles 85, 86 and 92 of the Treaty establishing the European Community, and, for products covered by the Treaty establishing the European Coal and Steel Community, by those contained in Articles 65 and  66 of that Treaty and the Community rules on State aids, including secondary legislation.

3.

The Association Council shall, within five years of the entry into force of the Agreement, adopt by decision the necessary rules for the implementation of paragraphs 1 and  2.

Until these rules are adopted, the provisions of the Agreement on interpretation and application of Articles VI, XVI and XXIII of the GATT shall be applied as the rules for the implementation of paragraph 1(c) and the relevant parts of paragraph  2.

4.

(a)

For the purposes of applying the provisions of paragraph 1(c), the Parties recognize that, during the first five years of the entry into force of the Agreement, any public aid granted by Jordan to undertakings shall be assessed taking into account the fact that Jordan shall be regarded as an area identical to those areas of the Community where the standard of living is abnormally low or where there is serious underemployment, as described in Article 92(3)(a) of the Treaty establishing the European Community.

The Association Council shall, taking into account the economic situation of Jordan, decide whether that period should be extended for further periods of five years.

(b)

Each Party shall ensure transparency in the area of public aid, inter alia by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes.  Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.

5.

With regard to products referred to in Title II, Chapter 2:

-

Paragraph 1(c) does not apply;

-

any practices contrary to paragraph 1(a) shall be assessed according to the criteria established by the Community on the basis of Articles 42 and 43 of the Treaty establishing the European Community and in particular those established in Council Regulation

6.

If the Community or Jordan considers that a particular practice is incompatible with the terms of paragraph 1, and:

-

is not adequately dealt with under the implementing rules referred to in paragraph  3, or

in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,

it may take appropriate measures after consultation within the Association Committee or after thirty working days following referral for such consultation.

With reference to practices incompatible with paragraph 1(c) of this Article, such appropriate measures, when the GATT is applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by the GATT or by any other relevant instrument negotiated under its auspices and applicable to the Parties.

7.

Notwithstanding any provisions to the contrary adopted in conformity with paragraph 3, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.

ARTICLE 54


The Member States and Jordan shall progressively adjust, without prejudice to their commitments respectively taken or to be taken under the GATT, any State monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Jordan.  The Association Committee will be informed about the measures adopted to implement this objective.

ARTICLE 55


With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Association Council shall ensure that as from the fifth year following the date of entry into force of this Agreement there is neither enacted nor maintained any measure distorting trade between the Community and Jordan to an extent contrary to the Parties' interests.  This provision should not obstruct the performance in law or in fact of the particular tasks assigned to these enterprises.

ARTICLE 56


1.

Pursuant to the provisions of this Article and of Annex VII, the Parties shall grant and ensure adequate and effective protection of intellectual, industrial and commercial property rights in accordance with the highest international standards, including effective means of enforcing such rights.

2.

The implementation of this Article and of Annex VII shall be regularly reviewed by the Parties.  If problems in the area of intellectual, industrial and commercial property affecting trading conditions were to occur, urgent consultation shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions.

ARTICLE 57


The Parties shall aim to reduce differences in standardization and conformity assessment.  To this end the Parties shall conclude where appropriate agreements on mutual recognition in the field of conformity assessment.

ARTICLE 58


The Parties agree on the objective of a gradual liberalization of public procurement.  The Association Council will hold consultations on the implementation of this objective.