Cooperation Agreements between Sudan and South Sudan

Sudan, South Sudan, East Africa

Parties: South Sudan; Sudan

Type: Inter-state

In the Cooperation Agreement, the Parties recognised that they share a long and rich common heritage, and recognised further the urgent need to bring peace, security and stability. The Parties agreed to establish Sudan and South Sudan as two viable, stable, secure and at peace States, and agreed to cooperate across the range of areas of common interest to ensure this, including through policies and agreements. The Parties identified the areas in which agreements would be adopted, including matters relating to oil, border issues and trade, amongst others. The Parties agreed to establish mechanisms for monitoring and implementing these agreements, and for dispute resolution. The Parties agreed to strive to complete negotiations on the outstanding Comprehensive Peace Agreement issue relating to the border areas.

The Parties to the Agreement on Trade agreed to establish a Joint Ministerial Committee on Trade Relations, which would have the primary responsibility for all policy on trade and would oversee the work of the Joint Technical Committee on Trade Relations. The Ministerial Committee would determine the desirability of a preferential trade regime and develop a dispute settlement mechanism. The Technical Committee would coordinate customs cooperation, oversee banking relations, address cross-border smuggling and combat illicit financial transactions. The Parties agreed to establish mechanisms for sharing of relevant data and information.

The Parties to the Framework Agreement on the Status of Nationals of the Other State agreed to establish a Joint High Level Committee to adopt and implement joint measures related to the status and treatment of nationals of each State in the territory of the other. The Parties agreed to accelerate the process to give the nationals of the other State appropriate identification documents. The Parties agreed that the nationals of the other State would have freedom of residence and movement, to undertake economic activity and to acquire and dispose of property in the other State.

The Parties to the Agreement on Security Arrangements renounced permanently any resort to war or violence in the conduct of their relations and recognised the adverse effect of war on their citizens and relations. The Parties renewed their commitments to end all hostile propaganda or inflammatory statements in the media. The Parties agreed to set up a Joint Border Verification and Monitoring Mission. The Parties agreed to a demilitarised zone of 14 miles and agreed to maintain the status quo of joint tribal mechanisms for dispute resolution.

The Parties to the Framework Agreement to Facilitate Payment of Post Service benefits recognised that there are South Sudanese public servants who prior to the secession of South Sudan worked in the public service of Sudan, and vice versa, and who are or are eligible to become pensioners. The Parties each recognised to pay post-service benefits to eligible current and former civil servants, including those who had become citizens or reside in the other State. The Parties agreed to set up a Joint Ministerial Committee on Pensions with the main duty for discussing and reaching agreement on issues related to pension administration, as well as a Joint Technical Committee on Pensions to identify the individuals, citizens of Sudan or South Sudan, eligible for post-service benefits in the other State. The Parties agreed to sharing relevant data and information and to reach amicable solutions in case of dispute.

The Parties to the Agreement on Oil and Related Economic Matters acknowledged the key role that oil revenues play with regard to both their economies, and their interrelated and shared interest in oil. The Parties agreed that each State would have sovereignty over its natural resources as well as over the petroleum facilities in its territory. Sudan agreed to grant South Sudan access rights to the Processing and Transportation Facilities for its entitled volumes of oil. The Parties agreed to give the other due notice if oil production or the processing thereof would become economically unsustainable. The Parties agreed that South Sudan would pay processing fees, transportation fees and transit fees to Sudan. South Sudan would also pay a lump sum of about 3 billion USD as a transitional financial agreement. The Parties also agreed on the arrangements for any default in payments, including the selling of the oil by Sudan. The Parties further agreed to enter into agreements to facilitate the movement of personnel, equipment and services across the border and also establish, together with the operating companies, a Joint Cross Border Cooperation Committee and a Petroleum Monitoring Committee. The Parties agreed to inform the other in the event that a cross-border petroleum reservoir is discovered. The Parties agreed to unconditionally and irrevocably cancel and forgive any claims of oil-related arrears and other oil-related financial claims outstanding by the other Party. The Government of South Sudan agreed to take all measures to resume oil production. The Parties agreed to maintain mutual transparency. The Parties agreed that the Agreement would be in force for 3.5 years.

The Parties to the Agreement on Certain Economic Matters agreed on the need to address debt owed to each other and how assets and debts of the Republic of Sudan would be dealt with following the secession of South Sudan. The Parties agreed on the benefit of pursuing strategic economic cooperation. The Parties agreed that Sudan as the continuing state would retain external debt liabilities and assets. The Parties agreed to a joint creditor outreach strategy to secure a commitment for comprehensive debt relief for Sudan. The Parties agreed that if such a debt relief commitment is not secured, the Parties would enter into good faith negotiations to apportion the debt and assets of Sudan. The Parties agreed that in the treatment of domestic assets and liabilities, the territorial principle would apply and any assets or liabilities in the State would be treated as being an asset or liability of that State. Sudan would provide South Sudan, without compensation, with the parts of the State Archives required for its normal administration and related to the territory of South Sudan. The Parties agreed that cultural heritage property of particular significance to one State would be repatriated if it is in the other State and to establish a Joint Archives and Cultural Heritage Property Committee. The Parties agreed to unconditionally forgive any non-oil arrears outstanding at the time of the Agreement. The Parties agreed to jointly approach the international community for funding to implement the Agreement, for supporting South Sudan to carry out projects to address its development challenges and for debt relief for Sudan and lifting economic sanctions against Sudan.

The Parties to the Agreement on Border Issues resolved to promote social and economic interactions and cooperation between themselves and their peoples. The Parties agreed to maintain peaceful, safe and secure borders across which people can move and goods and services can flow easily. The Parties agreed to adopt an integrated border management approach based on cooperation at different levels and local participation. The Parties agreed to jointly demarcate the border and set out guiding principles and a timeframe for demarcation. The Parties agreed to establish a Joint Demarcation Committee. The Parties agreed to regulate, protect and promote the livelihoods of border communities, including by providing for the seasonal right of pastoralists to cross the international border. The Parties agreed that each state would adopt a holistic approach to management of security along the border, including through conflict prevention, management, resolution and reconciliation and other peacebuilding measures.

The Parties to the Agreement on Central Banking Issues agreed to establish a Joint Central Banks Committee to support financial stability and sound banking policies in the two States, in order to enhance cooperation and promote trade and the mutual economic viability of the States.

The Parties adopted an Implementation Matrix for the Agreements of 27 September 2012, which provided for the relevant cooperation agreement and the obligation flowing from it, a timeline for its implementation and the identity of those responsible for its implementation.