$Unique_ID{bob00195} $Pretitle{} $Title{Unified Germany Chapter 3. Provisions Concerning Economic Union} $Subtitle{} $Author{Press and Information Office} $Affiliation{German Embassy, Washington DC} $Subject{republic german democratic economic trade article environmental federal germany contracting} $Date{1990} $Log{} Title: Unified Germany Book: The Unity of Germany and Peace in Europe Author: Press and Information Office Affiliation: German Embassy, Washington DC Date: 1990 Chapter 3. Provisions Concerning Economic Union ARTICLE 11__________ Economic Policy Foundations (1) The German Democratic Republic shall ensure that its economic and financial policy measures are in harmony with the social market system. Such measures shall be introduced in such a way that, within the framework of the market economy system, they are at the same time conducive to price stability, a high level of employment and foreign trade equilibrium, and thus steady and adequate economic growth. (2) The German Democratic Republic shall create the basic conditions for the development of market forces and private initiative in order to promote structural change, the creation of modern jobs, a broad basis of small and medium-sized companies and liberal professions, as well as environmental protection. The corporate legal structure shall be based on the principles of the social market economy described in Article 1 of this Treaty, enterprises being free to decide on products, quantities, production processes, investment, employment, prices and utilization of profits. (3) The German Democratic Republic, taking into consideration the foreign trade relations that have evolved with the member countries of the Council for Mutual Economic Assistance, shall progressively bring its policy into line with the law and the economic policy goals of the European Communities. (4) In decisions which affect the economic policy principles referred to in paragraphs 1 and 2 above, the Government of the German Democratic Republic shall reach agreement with the Government of the Federal Republic of Germany within the framework of the Intergovernmental Committee appointed in accordance with Article 8 of this Treaty. ARTICLE 12__________ Intra-German Trade (1) The Berlin Agreement of 20 September 1951 concluded between the Contracting Parties shall be amended in view of monetary and economic union. The clearing system established by that Agreement shall be ended and the swing shall be finally balanced. Outstanding obligations shall be settled in Deutsche Mark. (2) The Contracting Parties shall guarantee that goods which do not originate in the Federal Republic of Germany or the German Democratic Republic are transported across the intra-German border in accordance with a customs monitoring procedure. (3) The Contracting Parties shall endeavour to create as soon as possible the preconditions for complete abolition of controls at the intra-German border. ARTICLE 13__________ Foreign Trade and Payments (1) In its foreign trade, the German Democratic Republic shall take into account the principles of free world trade, as expressed in particular in the General Agreement on Tariffs and Trade. The Federal Republic of Germany shall make its experience fully available for the further integration of the economy of the German Democratic Republic into the world economy. (2) The existing foreign trade relations of the German Democratic Republic, in particular its contractual obligations towards the countries of the Council for Mutual Economic Assistance, shall be respected. They shall be further developed and extended in accordance with free-market principles, taking account of the facts established by monetary and economic union and the interests of all involved. Where necessary, the German Democratic Republic shall adjust existing contractual obligations in the light of those facts, in agreement with its partners. (3) The Contracting Parties shall cooperate closely in advancing their foreign trade interests, with due regard for the jurisdiction of the European Communities. ARTICLE 14__________ Structural Adjustment of Enterprises In order to promote the necessary structural adjustment of enterprises in the German Democratic Republic, the Government of the German Democratic Republic shall, for a transitional period and subject to its budgetary means, take measures to facilitate a swift structural adjustment of enterprises to the new market conditions. The Governments of the Contracting Parties shall agree on the specific nature of these measures. The objective shall be to strengthen the competitiveness of enterprises on the basis of the social market economy and to build up, through the development of private initiative, a diversified, modern economic structure in the German Democratic Republic, with as many small and medium-sized enterprises as possible, and thereby to create the basis for increased growth and secure jobs. ARTICLE 15__________ Agriculture and Food Industry (1) Because of the crucial importance of the European Community rules for the agriculture and food industry, the German Democratic Republic shall introduce a price support and external protection scheme in line with the EC market regime so that agricultural producer prices in the German Democratic Republic become adjusted to those in the Federal Republic of Germany. The German Democratic Republic shall not introduce levies or refunds vis-a-vis the European Community, subject to reciprocity. (2) For categories of goods in respect of which it is not possible to introduce a full price support system immediately upon the entry into force of this Treaty, transitional arrangements may be applied. Pending the legal integration of the agriculture and food industry of the German Democratic Republic into the EC agricultural market, specific quantitative restriction mechanisms shall be allowed for sensitive agricultural products in trade between the Contracting Parties. (3) Without prejudice to the measures to be taken under Article 14 of this Treaty, the German Democratic Republic shall, within the limits of its budgetary means and for a transitional period, take suitable measures to promote the structural adaptation in the agriculture and food industry which is necessary to improve the competitiveness of enterprises, to achieve environmentally acceptable and quality-based production, and to avoid surpluses. (4) The Governments of the Contracting Parties shall agree on the specific nature of the measures referred to in paragraphs 2 and 3 above. ARTICLE 16__________ Protection of the Environment (1) The protection of human beings, animals and plants, soil, water, air, the climate and landscape as well as cultural and other material property against harmful environmental influences is a major objective of both Contracting Parties. They shall pursue this objective on the basis of prevention, the polluter pays principle, and cooperation. Their aim is the rapid establishment of a German environmental union. (2) The German Democratic Republic shall introduce regulations to ensure that, on the entry into force of this Treaty, the safety and environmental requirements applicable in the Federal Republic of Germany are the precondition for the granting of authorizations under environmental law for new plant and installations on its territory. For existing plant and installations the German Democratic Republic shall introduce regulations to bring them up to standard as quickly as possible. (3) The German Democratic Republic shall, along with the development of the federal structure at Land level and with the establishment of an administrative jurisdiction, adopt the environmental law of the Federal Republic of Germany. (4) In further shaping a common environmental law, the environmental requirements of the Federal Republic of Germany and the German Democratic Republic shall be harmonized and developed at a high level as quickly as possible. (5) The German Democratic Republic shall harmonize the provisions governing promotion of environmental protection measures with those of the Federal Republic of Germany.