Explanatory Memorandum to COM(2013)230-1 - Conclusion of the partnership agreement with Indonesia

Please note

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In November 2004, the Council authorised the Commission to negotiate individual Framework Agreements on Partnership and Cooperation (PCA) with Thailand, Indonesia, Singapore, The Philippines, Malaysia and Brunei. Negotiations with Indonesia started in 2005 and were concluded in June 2007. The Commission initialled the PCA in July 2007 and Indonesia initialled in July 2009. The Agreement was co-signed on 9 November 2009 in Jakarta.

This comprehensive EU-Indonesia Partnership and Co-operation Agreement (PCA) was the first of its kind between the EU and ASEAN countries. It is a testimony to the rapidly growing importance of EU-Indonesian ties and opens a new era in bilateral relations, based on shared principles such as equality, mutual respect, mutual benefit, democracy, rule of law and human rights.

The Agreement strengthens political, economic and sectoral cooperation across a wide range of policy fields, including trade, environment, energy, science and technology, and good governance, as well as tourism and culture, migration, counter terrorism and the fight against corruption and organised crime. It will further enhance cooperation on responding to global challenges, where both Indonesia and the EU are playing an increasingly important role, such as in the G20.

The PCA will allow the EU to assume greater responsibility and influence in the region. By virtue of the PCA, the EU will promote European values and enhance concrete cooperation in a wide range of areas of mutual interest. The PCA will be regarded as a positive example for an inter-cultural/religious dialogue, given that Indonesia is the third most populous country in Asia and the largest Muslim country in the world.

The conclusion of the PCA is in line with the EU's objective of creating a comprehensive and coherent economic and political framework for relations between the EU and ASEAN countries.

In accordance with standing case-law of the Court, the Commission takes the view that, since the entry into force of the Treaty of Lisbon and the integration of CFSP into Union policies, framework agreements such as the PCA with Indonesia are entirely covered by competences conferred upon the EU by the Treaties. Therefore, it is the view of the Commission that such agreements are EU only bilateral agreements.

The fact that the Commission has submitted its proposal as an agreement of the Union and its Member States with Indonesia is exclusively linked to the genesis of this specific agreement under the rules of the Treaty before the entry into force of the Treaty of Lisbon and the international obligations that result therefrom for the Union.

The Commission notes that the Final Act contains the following Unilateral Declaration by the European Community:

"The provisions of the Agreement that fall within the scope of Part III, Title IV of the Treaty establishing the European Community bind the United Kingdom and Ireland as separate Contracting Parties, and not as part of the European Community, until the United Kingdom or Ireland (as the case may be) notifies the Republic of Indonesia that it has become bound as part of the European Community in accordance with the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community. The same applies to Denmark, in accordance with the Protocol annexed to those Treaties on the position of Denmark."

As the Proposal for a Council Decision on the conclusion of the PCA Indonesia is not based on any legal basis of Title V of Part III of the TFEU, the Commission considers that the Unilateral Declaration above has become without object. The Commission therefore considers that, at the occasion of the adoption of the Council Decision on the conclusion, the Council and the Commission should make the following joint declaration:

"The Council and the Commission note that the decision to conclude the PCA with Indonesia is adopted on the basis of Article 207 and 209 TFEU and not 'pursuant to Title V of the Part Three of the TFEU'. Therefore, the Unilateral Declaration made by the European Community at the occasion of the signature of the Final Act has become without object."