No L 28/2 Official Journal of the European Communities 6. 2. 96 COUNCIL REGULATION (EC) No 213/96 of 29 January 1996 on the implementation of the European Communities investment partners financial instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 130w thereof, Having regard to the proposal from the Commission (), Acting in accordance with the procedure of Article 189c of the Treaty (3, Whereas the Community is implementing financial, tech- nical and economic cooperation with the developing countries of Latin America, Asia and the Mediterranean region, and with South Africa; Whereas in order to strengthen such cooperation, it is necessary, inter alia, to encourage mutually beneficial investment, particularly by small and medium-sized enterprises (SMEs); Whereas the Council has reached a consensus on the importance of the role of the private sector in the deve- lopment process ; Whereas joint ventures and investment by Community undertakings in developing countries can bring certain benefits for these countries, including the transfer of capital, know-how, employment, the transfer of training and expertise, increased export possibilities and the meeting of local needs; Whereas a three-year pilot scheme was launched in 1988 to promote, via a European Communities Investment Partners (ECIP) financial instrument, the creation of joint ventures between the Community and countries of Latin America, Asia and the Mediterranean region and was continued and extended for a further three year trial period from 1 January 1992 by Regulation (EEC) No 319/92(); Whereas the Court of Auditors delivered an opinion in December 1993 pursuant to Article 9 (3) of Regulation (EEC) No 319/92 on the implementation of ECIP, which concluded that it meets a real need of which the market takes no or only inadequate account, and made specific recommendations for improvements in its management ; () OJ No C 287, 15. 10. 1994, p. 7. () Opinion of the European Parliament of 28 October 1994 QJ No C 323, 21. 11. 1994, p. 497), Council Common Position of 22 May 1995 (O] No C 160, 26. 6. 1995, p. 8) and Decision of the Buropean Parliament of 28 November 1995 (O] No C 339, 18. 12. 1995). ¢) OJ No L 35, 12.2. 1992, p. 1. Whereas the European Parliament and the Council have considered the results of the independent appraisal forwarded to them in March 1994 in conformity with Article 9 (2) of Regulation (EEC) No 319/92 which concluded that ECIP has met its principal objective of promoting mutually beneficial investment by Community and local operators in EC/local joint ventures in the countries of Asia, Latin America and the Mediterranean, and that the ECIP instrument should be further con- tinued and reinforced ; Whereas the Council adopted on 25 February 1992 Regu- lation (EEC) No 443/92 on financial and technical assis- tance to, and economic cooperation with, the developing countries ‘in Asia and Latin America (¥} and on 29 June 1992 Regulation (EEC) No 1763/92 concerning financial cooperation in respect of all Mediterranean non-member countries (°) ; Whereas the continuation and extension of the instru- ment is therefore necessary in order that full use may be made of the possibilities of mutually beneficial action in the countries of Latin America, Asia and the Mediterra- nean region; Whereas the Council on 19 April 1994 concluded that to encourage Community investments in SMEs in South Africa, advantages equivalent to the ECIP or its follow-up instrument could be granted to South Africa, and that specific financing of this instrument would be provided to that end; Whereas it is necessary to take account of democracy and human rights issues, and to promote investments which improve working conditions, in particular for women, do not exploit employees and exclude unacceptable practices such as forced labour and slavery; Whereas the broadest possible participation by under- takings in all Member States should be encouraged ; Whereas all the Member States should be encouraged to participate in the promotion of their investments in the countries of Latin America, Asia, the Mediterranean region and South Africa through financial institutions specializing in development ; (4 OJ No L 52, 27. 2. 1992, p. 1. () OJ No L 181, 1. 7. 1992, p. 5. Regulation as amended by Re- gulation (EC) No 1735/94 (O] No L 182, 16. 7. 1994, p. 6).