PCA meaning in Business ?

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What is Partnership and Cooperation Agreement mean?

A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links. The legal basis for the conclusion of the association agreements is provided by art. 217 TFEU (former art. 310 and art. 238 TEC).

Association Agreements are broad framework agreements between the EU (or its predecessors) and its member states, and an external state which governs their bilateral relations. The provision for an association agreement was included in the Treaty of Rome, which established the European Economic Community, as a means to enable co-operation of the Community with the United Kingdom, which had retreated from the treaty negotiations at the Messina Conference of 1955. According to the European External Action Service, for an agreement to be classified as an AA, it must meet several criteria:

1. The legal basis for their conclusion is Article 217 TFEU (former art. 310 and art. 238 TEC)

2. Intention to establish close economic and political cooperation (more than simple cooperation);
3. Creation of paritary bodies for the management of the cooperation, competent to take decisions that bind the contracting parties;
4. Offering most favoured nation treatment;
5. Providing for a privileged relationship between the EC and its partner;
6. Since 1995 the clause on the respect of human rights and democratic principles is systematically included and constitutes an essential element of the agreement;

7. In a large number of cases, the association agreement replaces a cooperation agreement thereby intensifying the relations between the partners.

The EU typically concludes Association Agreements in exchange for commitments to political, economic, trade, or human rights reform in a country. In exchange, the country may be offered tariff-free access to some or all EU markets (industrial goods, agricultural products, etc.), and financial or technical assistance. Most recently signed AAs also include a Free Trade Agreement (FTA) between the EU and the third country.

Association Agreements have to be accepted by the European Union and need to be ratified by all the EU member states and the state concerned.

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Posted on 26 Sep 2024, this text provides information on Business related to Miscellaneous in Business. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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