Section XXIV

 

MANUFACTURING INDUSTRY

 

Article 92

 

Industrial Policy and Cooperation

 

          The Member States shall independently develop, shape and implement national industrial policy, in particular, adopt national industrial development programmes and other measures of industrial policy, and shall determine the ways, forms and areas of providing industrial subsidies not contradicting Article 93 of this Treaty.

 

Industrial policy within the Union shall be shaped by the Member States in the main directions of industrial cooperation, as approved by the Intergovernmental Council, and shall be carried out in consultation and coordination with the Commission.

 

          The industrial policy within the Union shall be carried out by the Member States based on the following principles:

 

1) equality and respect for the national interests of the Member States; 2) mutual benefit;

 

3) fair competition;

 

4) non-discrimination;

 

5) transparency.

 

          Industrial policy within the Union shall be aimed at accelerating and improving the sustainability of industrial development, improving the competitiveness of industrial complexes of the Member States, implementation of effective cooperation aimed at increasing innovation activity, and elimination of barriers in the industrial sphere, including with respect to the movement of industrial products from the Member States.

 

 

 

          In order to achieve the objectives of the industrial policy within the Union, the Member States may:

 

1) to inform each other about their industrial development plans;

 

2) hold regular meetings (consultations) of representatives of authorised authorities of the Member States responsible for the shaping and implementation of the national industrial policy, including at the venues of the Commission;

 

3) develop and implement joint programmes for the development of priority economic activities for industrial cooperation;

 

4) develop and agree on a list of sensitive goods;

 

5) implement joint projects, including for the development of the infrastructure required to improve the efficiency of industrial cooperation and deepen the industrial cooperation between the Member States;

 

6) develop process-related and information resources for the purposes of industrial cooperation;

 

7) conduct joint research and development activities in order to promote high-tech industries;

 

8) implement other measures aimed at removing barriers and developing mutually beneficial cooperation.

 

          If necessary, appropriate implementation procedures for the measures referred to in paragraph 4 of this Article may be developed by decision of the Intergovernmental Council.

 

          The Member States shall develop the Main Directions of Industrial Cooperation within the Union (hereinafter “the Main Directions”), to be

 

approved by the Intergovernmental  Council and to include, among other

 

 

 

things, priority economic activities for industrial cooperation and sensitive goods.

 

The Commission shall conduct annual monitoring and analysis of implementation results for the Main Directions and, if required, prepare, in agreement with the Member States, proposals for clarification of the Main Directions.

 

          When developing and implementing policy in trade, customs tariffs, competition, state procurement, technical regulations, business development, transportation, infrastructure and other spheres, the interests of industrial development of the Member States shall be taken into account.

 

          With respect to sensitive goods, the Member States shall hold consultations for mutual consideration of their positions prior to the adoption of any industrial policy measures.

 

The Member States shall preliminarily inform each other of all planned national industrial policy implementation areas for the approved list of sensitive goods.

 

Jointly with the Commission, the Member States shall develop the procedure for such consultations and|or mutual notifications, to be approved by the Council of the Commission.

 

          For the purposes of industrial cooperation within the Union, the Member States may, upon consultation and coordination with the Commission, develop and apply the following instruments:

 

1) promotion of mutually beneficial industrial cooperation in order to create high-tech, innovative and competitive products;

 

2) joint programmes and projects with the participation of the Member States for their mutual benefit;

 

 

 

           joint technology platforms and industrial clusters;

 

           other instruments to promote the development of industrial cooperation.

 

10. For the purposes of this Article, the Member States may develop any additional documents and mechanisms with the participation of the Commission.

 

11. The Commission shall provide consultations and coordination to the Member States on the main directions of industrial cooperation within its powers determined under this Treaty, in accordance with Annex 27 to this Treaty.

 

For the purposes of this Article, the terms shall be used in accordance with Annex 27 to this Treaty.

 

Article 93

 

Industrial Subsidies

 

 

          In order to enable stable and efficient development of the economies of the Member States and to create a proper environment for the promotion of mutual trade and fair competition between the Member States, common rules for granting subsidies for industrial goods shall be applied on the territories of the Member States, including for the provision or receipt of services that are directly related to the manufacture, sale and consumption of industrial goods, according to Annex 28 to this Treaty.

 

          Obligations of the Member States arising from the provisions of this Article and Annex 28 to this Treaty shall not apply to legal relations between the Member States and third countries.

 

           For the purposes of this Article, a subsidy shall refer to:

 

 

 

           financial contribution provided by a subsidising authority of a Member State (or an authorised institution of a Member State), used for generating (ensuring) benefits and carried out through:

 

direct transfer of funds (for example, in the form of impaired and other loans), acquisition of a share in the authorised capital or an increase thereof, or an obligation to transfer such funds (e.g., loan guarantees);

 

full or partial waiver of the collection of payments that would have been otherwise included in the income of the Member State (e.g., tax exemptions, debt relief). In this case, the exemption of exported industrial goods from duties and taxes levied on like products when intended for domestic consumption or any reduction of duties and taxes and refund of such duties and taxes in an amount not exceeding the amount actually accrued, shall not be considered as a subsidy;

 

provision of goods or services (except for industrial goods or services intended for the maintenance and development of the common infrastructure);

 

purchase of industrial goods;

 

           any other form of income or price support (directly or indirectly) reducing the importation of industrial goods from the territory of any Member State or increasing the exportation of industrial goods into the territory of any Member State with resulting advantages.

 

The types of subsidies are specified in Annex 28 to this Treaty.

 

4. The subsidising authority may designate or instruct any other organisation to perform one or more of its functions related to the provision of subsidies. Actions of such an organisation shall be regarded as actions of the subsidising authority.

 

 

 

Acts of the head of a Member State aimed at providing subsidies shall be regarded as actions of the subsidising authority.

 

          Any investigation aimed at analysing the conformity of subsidies granted on the territory of a Member State to the provisions of this Article and Annex 28 to this Treaty shall be conducted in accordance with the procedure described in Annex 28 to this Treaty.

 

          The Commission shall ensure the control of implementation of the provisions of this Article and Annex 28 to this Treaty and shall have the following powers:

 

1) to monitor and conduct comparative legal analysis of the legislation of the Member States for compliance with the provisions of this Treaty in respect of subsidies, as well as to prepare annual reports on compliance of the Member States with the provisions of this Article and Annex 28 to this Treaty;

 

2) to facilitate the organisation of consultations between the Member States on the harmonisation and unification of their legislation on the provision of subsidies;

 

3) to adopt binding decisions for the Member States provided for by Annex 28 to this Treaty on the basis of voluntary coordination of planned and provided specific subsidies, including:

 

adoption of decisions on the admissibility or inadmissibility of specific subsidies in accordance with paragraph 6 of Annex 28 to this Treaty on the basis of the criteria outlined in the international agreement within the Union stipulated in paragraph 7 of Annex 28 to this Treaty;

 

 

 

holding a hearing on provision of specific subsidies and adoption of related binding decisions in cases determined by the international agreement within the Union stipulated in paragraph 7 of Annex 28 to this Treaty;

 

resolution of disputes on matters relating to implementation of the provisions of this Article and Annex 28 to this Treaty and provision of explanations on their application;

 

4) to request and obtain information on subsidies granted in the procedure and on the terms determined under an international treaty within the Union stipulated in paragraph 7 of Annex 28 to this Treaty.

 

Sub-paragraphs 3 and 4 of this paragraph shall be applied with account of the transitional provisions of paragraph 1 of Article 105 of this Treaty.

 

          All disputes concerning the provisions of this Article and Annex 28 to this Treaty shall be primarily settled through negotiations and consultations. If a dispute may not be settled through negotiations and consultations within 60 calendar days from the date of a formal written request for holding thereof sent by the Member State that initiated the dispute to the respondent state, the claimant state shall be entitled to apply to the Court of the Union.

 

If the decisions of the Court of the Union are not enforced within a determined period or if the Court of the Union decides that the measures notified by the respondent state are inconsistent with the provisions of this Article and Annex 28 to this Treaty, the claimant state shall be entitled to take proportionate response measures.

 

          The period within which the Member States shall be entitled to challenge a specific subsidy provided in violation of Annex 28 to this Treaty shall amount to 5 years from the date of such specific subsidy.