This is the OOC page for the Cooperative Union. Any member state of The Western Isles interested in becoming a member of the CU can use this page.
PROPOSED TREATY:
THE HANG OF THE DEMOCRATIC REPUBLIC OF ATHARA MAGARAT,
THE PRESIDENT OF THE REPUBLIC OF CALLUMSTAN ,
THE PRIME MINISTER OF THE UNION OF COVONANT
THE PRIME MINISTER OF IPLAND,
HER MAJESTY THE EMPRESS OF THE EMPIRE OF KEOMORA,
DETERMINED to lay the foundations of an ever-closer union among the peoples of
The Western Isles,
RESOLVED to ensure the economic and social progress of their countries by common
action to eliminate the barriers which divide The Western Isles,
AFFIRMING as the essential objective of their efforts the constant improvement of the
living and working conditions of their peoples,
RECOGNISING that the removal of existing obstacles calls for concerted action in
order to guarantee steady expansion, balanced trade and fair competition,
ANXIOUS to strengthen the unity of their economies and to ensure their harmonious
development by reducing the differences existing between the various regions and the
backwardness of the less favoured regions,
INTENDING to confirm the solidarity which binds The Western Isles and desiring to ensure the development of their prosperity, in accordance with the
principles of the Charter of the League of the Western Isles,
RESOLVED by thus pooling their resources to preserve and strengthen peace and
liberty, and calling upon the other peoples of The Western Isles who share their ideal to join in
their efforts,
HAVE DECIDED to create a Cooperative Union and to this end have
designated as their Plenipotentiaries:
*
*
*
*
*
*
*
*
Who, having exchanges their Full Powers, found in good and due form, HAVE
AGREED as follows:
PART ONE
PRINCIPLES
ARTICLE 1
By this Treaty, the HIGH CONTRACTING PARTIES establish among themselves a
COOPERATIVE UNION.
ARTICLE 2
The Union shall have as its task, by establishing a common market and
progressively approximating the economic policies of Member States, to promote
throughout the Community a harmonious development of economic activities, a
continuous and balanced expansion, an increase in stability, an accelerated raising of the
standard of living and closer relations between the States belonging to it.
ARTICLE 3
For the purposes set out in Article 2, the activities of the Union shall include, as
provided in this Treaty and in accordance with the timetable set out therein
(a) the elimination, as between Member States, of customs duties and of quantitative
restrictions on the import and export of goods, and of all other measures having
equivalent effect;
(b) the establishment of a common customs tariff and of a common commercial
policy towards third countries;
(c) the abolition, as between Member States, of obstacles to freedom of movement for
persons, services and capital;
(d) the adoption of a common policy in the sphere of agriculture;
(e) the adoption of a common policy in the sphere of transport;
(f) the institution of a system ensuring that competition in the Union is not
distorted;
(g) the application of procedures by which the economic policies of Member States
can he co-ordinated and disequilibria in their balances of payments remedied;
(h) the approximation of the laws of Member States to the extent required for the
proper functioning of the Union;
(i) the creation of a Cooperative Social Fund in order to improve employment
opportunities for workers and to contribute to the raising of their standard of
living;
(j) the establishment of a CooperativeInvestment Bank to facilitate the economic
expansion of the Union by opening up fresh resources;
(k) the association of the overseas countries and territories in order to increase trade
and to promote jointly economic and social development.
ARTICLE 4
1. The tasks entrusted to the Union shall be carried out by the following
institutions:
an ASSEMBLY [COOPERATIVE PARLIAMENT],
a COUNCIL,
a COMMISSION,
a COURT OF JUSTICE.
Each institution shall act within the limits of the powers conferred upon it by this
Treaty.
2. The Council and the Commission shall be assisted by an economic and Social
Committee acting in an advisory capacity.
ARTICLE 5
Member States shall take all appropriate measures, whether general or particular, to
ensure fulfillment of the obligations arising out of this Treaty or resulting from action
taken by the institutions of the Union. They shall facilitate the achievement of the
Union’s tasks.
They shall abstain from any measure which could jeopardise the attainment of the
objections of this Treaty.
ARTICLE 6
1. Member States shall, in close co-operation with the institutions of the Union,
co-ordinate their respective economic policies to the extent necessary to attain the
objectives of this Treaty.
2. The institutions of the Union shall take care not to prejudice the internal and
external financial stability of the Member States.
ARTICLE 7
Within the scope of application of this Treaty, and without prejudice to any special
provisions contained therein, any discrimination on grounds of nationality shall be
prohibited.
The Council may, on a proposal from the Commission and after consulting the
Assembly [Cooperative Parliament], adopt, by a qualified majority, rules designed to
prohibit such discrimination.
PART TWO
FOUNDATIONS OF THE COMMUNITY
TITLE I
FREE MOVEMENT OF GOODS
ARTICLE 8
1. The Community shall be based upon a customs union which shall cover all trade
in goods and which shall involve the prohibition between Member States of customs
duties on imports and exports and of all charges having equivalent effect, and the
adoption of a common customs tariff in their relations with third countries.
2. The provisions of Chapter 1, Section 1, and of Chapter 2 of this Title shall apply
to products originating in Member States and to products coming from third countries
which are in free circulation in Member States.
FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL
CHAPTER 1
WORKERS
ARTICLE 9
1. Freedom of movement for workers shall be secured within the Union by the
end of the transitional period at the latest.
2. Such freedom of movement shall entail the abolition of any discrimination based
on nationality between workers of the Member States as regards employment,
remuneration and other conditions of work and employment.
3. It shall entail the right, subject to limitations justified on grounds of public policy,
public security or public health:
(a) to accept offers of employment actually made;
(b) to move freely within the territory of Member States for this purpose;
(c) to stay in a Member State for the purpose of employment in accordance with the
provisions governing the employment of nationals of that State laid down by law,
regulation or administrative action;
(d) to remain in the territory of a Member State after having been employed in that
State, subject to conditions which shall be embodied in implementing regulations
to be drawn up by the Commission.
4. The provisions of this Article shall not apply to employment in the public service.
ARTICLE 10
As soon as this Treaty enters into force, the Assembly shall, acting on a proposal from the
Council and after consulting the Respective Committees, issue directives
or make regulations setting out the measures required to bring about, by progressive
stages, freedom of movement for workers, as defined in Article 9, in particular:
(a) by ensuring close co-operation between national employment services;
(b) by systematically and progressively abolishing those administrative procedures
and practices and those qualifying periods in respect of eligibility for available
employment, whether resulting from national legislation or from agreements
previously concluded between Member States, the maintenance of which would
form an obstacle to liberalisation of the movement of workers;
(c) by systematically and progressively abolishing all such qualifying periods and
other restrictions provided for either under national legislation or under
agreements previously concluded between Member States as imposed on workers
of other Member States conditions regarding the free choice of employment other
than those imposed on workers of the State concerned;
(d) by setting up appropriate machinery to bring offers of employment into touch with
applications for employment and to facilitate the achievement of a balance
between supply and demand in the employment market in such a way as to avoid
serious threats to the standard of living and level of employment in the various
regions and industries.
ARTICLE 11
Member States shall, within the framework of a joint programme, encourage the
exchange of young workers.
ARTICLE 12
The Council shall, acting unanimously on a proposal from the Assembly, adopt such
measures in the field of social security as are necessary to provide freedom of
movement for workers; to this end, It shall make arrangements to secure for migrant
workers and their dependants:
(a) aggregation, for the purpose of acquiring and retaining the right to benefit and of
calculating the amount of benefit, of all periods taken into account under the laws
of the several countries;
(b) payment of benefits to persons resident in the territories of Member States.
RIGHT OF ESTABLISHMENT
ARTICLE 12
Within the framework of the provisions set out below, restrictions on the freedom of
establishment of nationals of a Member State in the territory of another Member State
shall be abolished by progressive stages in the course of the transitional period. Such
progressive abolition shall also apply to restrictions on the setting up of agencies,
branches or subsidiaries by nationals of any Member State established in the territory of
any Member State.
Freedom of establishment shall include the right to take up and pursue activities as self employed
persons and to set up and manage undertakings, in particular companies or
firms within the meaning of the second paragraph of Article 11, under the conditions
laid down for its own nationals by the law of the country where such establishment is
effected, subject to the provisions of the Chapter relating to capital.
ARTICLE 13
Member States shall not introduce any new restrictions on the right of establishment in
their territories of nationals of other Member States, save as otherwise provided in this
Treaty.
ARTICLE 14
1. Before the end of the first stage, the Council shall, acting unanimously on a
proposal from the Assembly and after consulting the Respective Committees and the Assembly [Cooperative Parliament], draw up a general programme for
the abolition of existing restrictions on freedom of establishment within the
Union. The programme shall set out the general conditions under which freedom of
establishment is to be attained in the case of each type of activity and in particular the
stages by which it is to be attained.
2. In order to implement this general programme or, in the absence of such
programme, in order to achieve a stage in attaining freedom of establishment as regards
a particular activity, the Council shall, on a proposal from the Assembly and after
consulting the Respective CommitteeS and the Assembly [Cooperative
Parliament], issue directives, acting unanimously until the end of the first stage and by a
qualified majority thereafter.
3. The Assembly shall carry out the duties devolving upon them
under the preceding provisions, in particular:
(a) by according, as a general rule, priority treatment to activities where freedom of
establishment makes a particularly valuable contribution to the development of
production and trade;
(b) by ensuring close co-operation between the competent authorities in the Member
States in order to ascertain the particular situation within the Union of the
various activities concerned;
(c) by abolishing those administrative procedures and practices, whether resulting
from national legislation or from agreements previously concluded between
Member States, the maintenance of which would form an obstacle to freedom of
establishment;
(d) by ensuring that workers of one Member State employed in the territory of another
Member State may remain in that territory for the purpose of taking up activities
therein as self-employed persons, where they satisfy the conditions which they
would be required to satisfy if they were entering that State at the time when they
intended to take up such activities;
(e) by enabling a national of one Member State to acquire and use land and buildings
situated in the territory of another Member State, in so far as this does not conflict
with the principles laid down in this treaty.
ARTICLE 15
1. Freedom to provide services in the field of transport shall be governed by the
provisions of the Title relating to transport.
2. The liberalisation of banking and insurance services connected with movements of
capital shall be effected in step with the progressive liberalisation of movement of
capital.
ARTICLE 16
Save as otherwise provided in this Treaty, Member States shall not introduce any new
restrictions on the freedom to provide services which have in fact been attained at the
date of the entry into force of this Treaty.
ARTICLE 17
As long as restrictions on freedom to provide services have not been abolished, each
Member State shall apply such restrictions without distinction on grounds of nationality
or residence to all persons providing services.
TRANSPORT
ARTICLE 18
The objectives of this Treaty shall, in matters governed by this Title, be pursued by
Member States within the framework of a common transport policy.
ARTICLE 19
1. For the purpose of implementing Article 18, and taking into account the
distinctive features of transport, the Assembly shall, acting unanimously until the end of
the second stage and by a qualified majority thereafter, lay down, on a proposal from
the Council and after consulting the Respective Committees:
(a) common rules applicable to international transport to or from the territory of a
Member State or passing across the territory of one or more Member States;
(b) the conditions under which non-resident carriers may operate transport services
within a Member State;
(c) any other appropriate provisions.
2. The provisions referred to in (a) and (b) of paragraph 1 shall be laid down during
the transitional period.
3. By way of derogation from the procedure provided for in paragraph 1, where the
application of provisions concerning the principles of the regulatory system for
transport would be liable to have a serious effect on the standard of living and on
employment in certain areas and on the operation of transport facilities, they shall be
laid down by the Assembly acting unanimously.
ARTICLE 20
Until the provisions referred to in Article 19(1) have been laid down, no Member State
may, without the unanimous approval of the Assembly, make the various provisions
governing the subject when this Treaty enters into force less favourable in their direct or
indirect effect on carriers of other Member States as compared with carriers who are
nationals of that State.
ARTICLE 21
Aids shall be compatible with this Treaty if they meet the needs of co-ordination of
transport or if they represent reimbursement for the discharge of certain obligations
inherent in the concept of a public service.
ARTICLE 22
Any measures taken within the framework of this Treaty in respect of transport rates
and conditions shall take account of the economic circumstances of carriers.
ARTICLE 23
1. In the case of transport within the Union, discrimination which takes the
form of carriers charging different rates and imposing different conditions for the
carriage of the same goods over the same transport links on grounds of the country of
origin or of destination of the goods in question, shall be abolished, at the latest, before
the end of the second stage.
2. Paragraph 1 shall not prevent the Council from adopting other measures in
pursuance of Article 19(1).
AIDS GRANTED BY STATES
ARTICLE 24
1. Save as otherwise provided in this Treaty, any aid granted by a Member State or
through State resources in any form whatsoever which distorts or threatens to distort
competition by favouring certain undertakings or the production of certain goods shall,
in so far as it affects trade between Member States, be incompatible with the Union.
2. The following shall be compatible with the Union:
(a) aid having a social character, granted to individual consumers, provided that such
aid is granted without discrimination related to the origin of the products
concerned;
(b) aid to make good the damage caused by natural disasters or exceptional
occurrences;
(c) aid granted to the economy of certain areas in so far as such aid is required in order to
compensate for the economic disadvantages.
3. The following may be considered to be compatible with the Union:
(a) aid to promote the economic development of areas where the standard of living is
abnormally low or where there is serious underemployment;
(b) aid to promote the execution of an important project of common Cooperative interest
or to remedy a serious disturbance in the economy of a Member State;
(c) such other categories of aid as may be specified by decision of the Assembly acting
by a qualified majority on a proposal from the Council.
ARTICLE 25
1. The Assembly shall, in co-operation with Member States, keep under constant
review all systems of aid existing in those States. It shall propose to the latter any
appropriate measures required by the progressive development or by the functioning of
the common market.
2. If, after giving notice to the parties concerned to submit their comments, the
Commission finds that aid granted by a State or through State resources is not
compatible with the Union, or that such aid is being misused, it shall decide that the State concerned shall abolish or alter such aid within a period of time to be determined by the Assembly.
If the State concerned does not comply with this decision within the prescribed time, the
Commission or any other interested State may, refer the matter to the Court of Justice direct.
TAX PROVISIONS
ARTICLE 26
No Member State shall impose, directly or indirectly, on the products of other Member
States any internal taxation of any kind in excess of that imposed directly or indirectly
on similar domestic products.
Furthermore, no Member State shall impose on the products of other Member States
any internal taxation of such a nature as to afford indirect protection to other products.
Member States shall, not later than at the beginning of the second stage, repeal or
amend any provisions existing when this Treaty enters into force which conflict with the
preceding rules.
ARTICLE 27
Where products are exported to the territory of any Member State, any repayment of
internal taxation shall not exceed the internal taxation imposed on them whether directly
or indirectly.
APPROXIMATION OF LAWS
ARTICLE 28
Where the Assembly finds that a difference between the provisions laid down by law,
regulation or administrative action in Member States is distorting the conditions of
competition in the Union and that the resultant distortion needs to be
eliminated, it shall consult the Member States concerned.
If such consultation does not result in an agreement eliminating the distortion in
question, the Council shall, on a proposal from the Assembly, acting unanimously
during the first stage and by a qualified majority thereafter, issue the necessary
directives. The Commission and the Council may take any other appropriate measures
provided for in this Treaty.
FINAL PROVISIONS
ARTICLE 29
This Treaty shall be ratified by the High Contracting Parties in accordance with their
respective constitutional requirements. The instruments of ratification shall be deposited
with the Government of The Republic of Callumstan.
This Treaty shall enter into force on the following the deposit of
the instrument of ratification by the last signatory State to take this step.
ARTICLE 30
This Treaty, drawn up in a single original in the Kham, Atish, Nepali, Covish, Sowl, French, and English languages, all four texts being equally authentic, shall be deposited in the archives of
the Government of The Union Of Covonant, which shall transmit a certified copy to each of
the Governments of the other signatory States.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Treaty.
Done at Coventry this
THE PRESIDENT OF THE REPUBLIC OF CALLUMSTAN ,
THE PRIME MINISTER OF THE UNION OF COVONANT
THE PRIME MINISTER OF IPLAND,
HER MAJESTY THE EMPRESS OF THE EMPIRE OF KEOMORA,
DETERMINED to lay the foundations of an ever-closer union among the peoples of
The Western Isles,
RESOLVED to ensure the economic and social progress of their countries by common
action to eliminate the barriers which divide The Western Isles,
AFFIRMING as the essential objective of their efforts the constant improvement of the
living and working conditions of their peoples,
RECOGNISING that the removal of existing obstacles calls for concerted action in
order to guarantee steady expansion, balanced trade and fair competition,
ANXIOUS to strengthen the unity of their economies and to ensure their harmonious
development by reducing the differences existing between the various regions and the
backwardness of the less favoured regions,
INTENDING to confirm the solidarity which binds The Western Isles and desiring to ensure the development of their prosperity, in accordance with the
principles of the Charter of the League of the Western Isles,
RESOLVED by thus pooling their resources to preserve and strengthen peace and
liberty, and calling upon the other peoples of The Western Isles who share their ideal to join in
their efforts,
HAVE DECIDED to create a Cooperative Union and to this end have
designated as their Plenipotentiaries:
*
*
*
*
*
*
*
*
Who, having exchanges their Full Powers, found in good and due form, HAVE
AGREED as follows:
PART ONE
PRINCIPLES
ARTICLE 1
By this Treaty, the HIGH CONTRACTING PARTIES establish among themselves a
COOPERATIVE UNION.
ARTICLE 2
The Union shall have as its task, by establishing a common market and
progressively approximating the economic policies of Member States, to promote
throughout the Community a harmonious development of economic activities, a
continuous and balanced expansion, an increase in stability, an accelerated raising of the
standard of living and closer relations between the States belonging to it.
ARTICLE 3
For the purposes set out in Article 2, the activities of the Union shall include, as
provided in this Treaty and in accordance with the timetable set out therein
(a) the elimination, as between Member States, of customs duties and of quantitative
restrictions on the import and export of goods, and of all other measures having
equivalent effect;
(b) the establishment of a common customs tariff and of a common commercial
policy towards third countries;
(c) the abolition, as between Member States, of obstacles to freedom of movement for
persons, services and capital;
(d) the adoption of a common policy in the sphere of agriculture;
(e) the adoption of a common policy in the sphere of transport;
(f) the institution of a system ensuring that competition in the Union is not
distorted;
(g) the application of procedures by which the economic policies of Member States
can he co-ordinated and disequilibria in their balances of payments remedied;
(h) the approximation of the laws of Member States to the extent required for the
proper functioning of the Union;
(i) the creation of a Cooperative Social Fund in order to improve employment
opportunities for workers and to contribute to the raising of their standard of
living;
(j) the establishment of a CooperativeInvestment Bank to facilitate the economic
expansion of the Union by opening up fresh resources;
(k) the association of the overseas countries and territories in order to increase trade
and to promote jointly economic and social development.
ARTICLE 4
1. The tasks entrusted to the Union shall be carried out by the following
institutions:
an ASSEMBLY [COOPERATIVE PARLIAMENT],
a COUNCIL,
a COMMISSION,
a COURT OF JUSTICE.
Each institution shall act within the limits of the powers conferred upon it by this
Treaty.
2. The Council and the Commission shall be assisted by an economic and Social
Committee acting in an advisory capacity.
ARTICLE 5
Member States shall take all appropriate measures, whether general or particular, to
ensure fulfillment of the obligations arising out of this Treaty or resulting from action
taken by the institutions of the Union. They shall facilitate the achievement of the
Union’s tasks.
They shall abstain from any measure which could jeopardise the attainment of the
objections of this Treaty.
ARTICLE 6
1. Member States shall, in close co-operation with the institutions of the Union,
co-ordinate their respective economic policies to the extent necessary to attain the
objectives of this Treaty.
2. The institutions of the Union shall take care not to prejudice the internal and
external financial stability of the Member States.
ARTICLE 7
Within the scope of application of this Treaty, and without prejudice to any special
provisions contained therein, any discrimination on grounds of nationality shall be
prohibited.
The Council may, on a proposal from the Commission and after consulting the
Assembly [Cooperative Parliament], adopt, by a qualified majority, rules designed to
prohibit such discrimination.
PART TWO
FOUNDATIONS OF THE COMMUNITY
TITLE I
FREE MOVEMENT OF GOODS
ARTICLE 8
1. The Community shall be based upon a customs union which shall cover all trade
in goods and which shall involve the prohibition between Member States of customs
duties on imports and exports and of all charges having equivalent effect, and the
adoption of a common customs tariff in their relations with third countries.
2. The provisions of Chapter 1, Section 1, and of Chapter 2 of this Title shall apply
to products originating in Member States and to products coming from third countries
which are in free circulation in Member States.
FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL
CHAPTER 1
WORKERS
ARTICLE 9
1. Freedom of movement for workers shall be secured within the Union by the
end of the transitional period at the latest.
2. Such freedom of movement shall entail the abolition of any discrimination based
on nationality between workers of the Member States as regards employment,
remuneration and other conditions of work and employment.
3. It shall entail the right, subject to limitations justified on grounds of public policy,
public security or public health:
(a) to accept offers of employment actually made;
(b) to move freely within the territory of Member States for this purpose;
(c) to stay in a Member State for the purpose of employment in accordance with the
provisions governing the employment of nationals of that State laid down by law,
regulation or administrative action;
(d) to remain in the territory of a Member State after having been employed in that
State, subject to conditions which shall be embodied in implementing regulations
to be drawn up by the Commission.
4. The provisions of this Article shall not apply to employment in the public service.
ARTICLE 10
As soon as this Treaty enters into force, the Assembly shall, acting on a proposal from the
Council and after consulting the Respective Committees, issue directives
or make regulations setting out the measures required to bring about, by progressive
stages, freedom of movement for workers, as defined in Article 9, in particular:
(a) by ensuring close co-operation between national employment services;
(b) by systematically and progressively abolishing those administrative procedures
and practices and those qualifying periods in respect of eligibility for available
employment, whether resulting from national legislation or from agreements
previously concluded between Member States, the maintenance of which would
form an obstacle to liberalisation of the movement of workers;
(c) by systematically and progressively abolishing all such qualifying periods and
other restrictions provided for either under national legislation or under
agreements previously concluded between Member States as imposed on workers
of other Member States conditions regarding the free choice of employment other
than those imposed on workers of the State concerned;
(d) by setting up appropriate machinery to bring offers of employment into touch with
applications for employment and to facilitate the achievement of a balance
between supply and demand in the employment market in such a way as to avoid
serious threats to the standard of living and level of employment in the various
regions and industries.
ARTICLE 11
Member States shall, within the framework of a joint programme, encourage the
exchange of young workers.
ARTICLE 12
The Council shall, acting unanimously on a proposal from the Assembly, adopt such
measures in the field of social security as are necessary to provide freedom of
movement for workers; to this end, It shall make arrangements to secure for migrant
workers and their dependants:
(a) aggregation, for the purpose of acquiring and retaining the right to benefit and of
calculating the amount of benefit, of all periods taken into account under the laws
of the several countries;
(b) payment of benefits to persons resident in the territories of Member States.
RIGHT OF ESTABLISHMENT
ARTICLE 12
Within the framework of the provisions set out below, restrictions on the freedom of
establishment of nationals of a Member State in the territory of another Member State
shall be abolished by progressive stages in the course of the transitional period. Such
progressive abolition shall also apply to restrictions on the setting up of agencies,
branches or subsidiaries by nationals of any Member State established in the territory of
any Member State.
Freedom of establishment shall include the right to take up and pursue activities as self employed
persons and to set up and manage undertakings, in particular companies or
firms within the meaning of the second paragraph of Article 11, under the conditions
laid down for its own nationals by the law of the country where such establishment is
effected, subject to the provisions of the Chapter relating to capital.
ARTICLE 13
Member States shall not introduce any new restrictions on the right of establishment in
their territories of nationals of other Member States, save as otherwise provided in this
Treaty.
ARTICLE 14
1. Before the end of the first stage, the Council shall, acting unanimously on a
proposal from the Assembly and after consulting the Respective Committees and the Assembly [Cooperative Parliament], draw up a general programme for
the abolition of existing restrictions on freedom of establishment within the
Union. The programme shall set out the general conditions under which freedom of
establishment is to be attained in the case of each type of activity and in particular the
stages by which it is to be attained.
2. In order to implement this general programme or, in the absence of such
programme, in order to achieve a stage in attaining freedom of establishment as regards
a particular activity, the Council shall, on a proposal from the Assembly and after
consulting the Respective CommitteeS and the Assembly [Cooperative
Parliament], issue directives, acting unanimously until the end of the first stage and by a
qualified majority thereafter.
3. The Assembly shall carry out the duties devolving upon them
under the preceding provisions, in particular:
(a) by according, as a general rule, priority treatment to activities where freedom of
establishment makes a particularly valuable contribution to the development of
production and trade;
(b) by ensuring close co-operation between the competent authorities in the Member
States in order to ascertain the particular situation within the Union of the
various activities concerned;
(c) by abolishing those administrative procedures and practices, whether resulting
from national legislation or from agreements previously concluded between
Member States, the maintenance of which would form an obstacle to freedom of
establishment;
(d) by ensuring that workers of one Member State employed in the territory of another
Member State may remain in that territory for the purpose of taking up activities
therein as self-employed persons, where they satisfy the conditions which they
would be required to satisfy if they were entering that State at the time when they
intended to take up such activities;
(e) by enabling a national of one Member State to acquire and use land and buildings
situated in the territory of another Member State, in so far as this does not conflict
with the principles laid down in this treaty.
ARTICLE 15
1. Freedom to provide services in the field of transport shall be governed by the
provisions of the Title relating to transport.
2. The liberalisation of banking and insurance services connected with movements of
capital shall be effected in step with the progressive liberalisation of movement of
capital.
ARTICLE 16
Save as otherwise provided in this Treaty, Member States shall not introduce any new
restrictions on the freedom to provide services which have in fact been attained at the
date of the entry into force of this Treaty.
ARTICLE 17
As long as restrictions on freedom to provide services have not been abolished, each
Member State shall apply such restrictions without distinction on grounds of nationality
or residence to all persons providing services.
TRANSPORT
ARTICLE 18
The objectives of this Treaty shall, in matters governed by this Title, be pursued by
Member States within the framework of a common transport policy.
ARTICLE 19
1. For the purpose of implementing Article 18, and taking into account the
distinctive features of transport, the Assembly shall, acting unanimously until the end of
the second stage and by a qualified majority thereafter, lay down, on a proposal from
the Council and after consulting the Respective Committees:
(a) common rules applicable to international transport to or from the territory of a
Member State or passing across the territory of one or more Member States;
(b) the conditions under which non-resident carriers may operate transport services
within a Member State;
(c) any other appropriate provisions.
2. The provisions referred to in (a) and (b) of paragraph 1 shall be laid down during
the transitional period.
3. By way of derogation from the procedure provided for in paragraph 1, where the
application of provisions concerning the principles of the regulatory system for
transport would be liable to have a serious effect on the standard of living and on
employment in certain areas and on the operation of transport facilities, they shall be
laid down by the Assembly acting unanimously.
ARTICLE 20
Until the provisions referred to in Article 19(1) have been laid down, no Member State
may, without the unanimous approval of the Assembly, make the various provisions
governing the subject when this Treaty enters into force less favourable in their direct or
indirect effect on carriers of other Member States as compared with carriers who are
nationals of that State.
ARTICLE 21
Aids shall be compatible with this Treaty if they meet the needs of co-ordination of
transport or if they represent reimbursement for the discharge of certain obligations
inherent in the concept of a public service.
ARTICLE 22
Any measures taken within the framework of this Treaty in respect of transport rates
and conditions shall take account of the economic circumstances of carriers.
ARTICLE 23
1. In the case of transport within the Union, discrimination which takes the
form of carriers charging different rates and imposing different conditions for the
carriage of the same goods over the same transport links on grounds of the country of
origin or of destination of the goods in question, shall be abolished, at the latest, before
the end of the second stage.
2. Paragraph 1 shall not prevent the Council from adopting other measures in
pursuance of Article 19(1).
AIDS GRANTED BY STATES
ARTICLE 24
1. Save as otherwise provided in this Treaty, any aid granted by a Member State or
through State resources in any form whatsoever which distorts or threatens to distort
competition by favouring certain undertakings or the production of certain goods shall,
in so far as it affects trade between Member States, be incompatible with the Union.
2. The following shall be compatible with the Union:
(a) aid having a social character, granted to individual consumers, provided that such
aid is granted without discrimination related to the origin of the products
concerned;
(b) aid to make good the damage caused by natural disasters or exceptional
occurrences;
(c) aid granted to the economy of certain areas in so far as such aid is required in order to
compensate for the economic disadvantages.
3. The following may be considered to be compatible with the Union:
(a) aid to promote the economic development of areas where the standard of living is
abnormally low or where there is serious underemployment;
(b) aid to promote the execution of an important project of common Cooperative interest
or to remedy a serious disturbance in the economy of a Member State;
(c) such other categories of aid as may be specified by decision of the Assembly acting
by a qualified majority on a proposal from the Council.
ARTICLE 25
1. The Assembly shall, in co-operation with Member States, keep under constant
review all systems of aid existing in those States. It shall propose to the latter any
appropriate measures required by the progressive development or by the functioning of
the common market.
2. If, after giving notice to the parties concerned to submit their comments, the
Commission finds that aid granted by a State or through State resources is not
compatible with the Union, or that such aid is being misused, it shall decide that the State concerned shall abolish or alter such aid within a period of time to be determined by the Assembly.
If the State concerned does not comply with this decision within the prescribed time, the
Commission or any other interested State may, refer the matter to the Court of Justice direct.
TAX PROVISIONS
ARTICLE 26
No Member State shall impose, directly or indirectly, on the products of other Member
States any internal taxation of any kind in excess of that imposed directly or indirectly
on similar domestic products.
Furthermore, no Member State shall impose on the products of other Member States
any internal taxation of such a nature as to afford indirect protection to other products.
Member States shall, not later than at the beginning of the second stage, repeal or
amend any provisions existing when this Treaty enters into force which conflict with the
preceding rules.
ARTICLE 27
Where products are exported to the territory of any Member State, any repayment of
internal taxation shall not exceed the internal taxation imposed on them whether directly
or indirectly.
APPROXIMATION OF LAWS
ARTICLE 28
Where the Assembly finds that a difference between the provisions laid down by law,
regulation or administrative action in Member States is distorting the conditions of
competition in the Union and that the resultant distortion needs to be
eliminated, it shall consult the Member States concerned.
If such consultation does not result in an agreement eliminating the distortion in
question, the Council shall, on a proposal from the Assembly, acting unanimously
during the first stage and by a qualified majority thereafter, issue the necessary
directives. The Commission and the Council may take any other appropriate measures
provided for in this Treaty.
FINAL PROVISIONS
ARTICLE 29
This Treaty shall be ratified by the High Contracting Parties in accordance with their
respective constitutional requirements. The instruments of ratification shall be deposited
with the Government of The Republic of Callumstan.
This Treaty shall enter into force on the following the deposit of
the instrument of ratification by the last signatory State to take this step.
ARTICLE 30
This Treaty, drawn up in a single original in the Kham, Atish, Nepali, Covish, Sowl, French, and English languages, all four texts being equally authentic, shall be deposited in the archives of
the Government of The Union Of Covonant, which shall transmit a certified copy to each of
the Governments of the other signatory States.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Treaty.
Done at Coventry this
