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(Notes from Signing Ceremony, Addis Ababa, 27 September 2012)
The Republic of Sudan and the Republic of South Sudan signed nine
agreements on a range of issues that they have been negotiating since 2010
initially in accordance with the Post-Referendum Arrangements
negotiations provided for in section 67 of the Southern Sudan
Referendum Act, 2009 as elaborated upon in the Mekelle Memorandum
of Understanding of 23 June 2010. The Parties have also been engaged in
the negotiation of outstanding Comprehensive Peace Agreement (CPA)
issues, and have now reached several Agreements relating to CPA and postsecession
issues.
1. The Agreement on Security Arrangements
This Agreement reaffirms the commitment of the two States to renounce
war and to implement all the security agreements and arrangements
reached in previous negotiations. These include Agreements relating to the
immediate withdrawal of any forces to the side of the border.
Specifically, the two States agree to operationalise immediately the Safe
Demilitarized Border Zone (SDBZ) in accordance with the administrative
and security map presented to them by the AUHIP in November 2011.
The Agreement makes provision for special arrangements for the “14 Mile
Area”, which involve the complete demilitarization of the Area overseen by
the Joint Political and Security Mechanism (JPSM) and supported by the
mechanisms under the JPSM. The Parties will maintain the status quo of
the joint tribal mechanisms for the resolution of disputes. The Parties
agree immediately to open the ten (10) agreed border-crossing corridors
linking the two States.

2. The Framework Agreement on the Status of Nationals of the
Other State
This Agreement was first initialed on 13 March 2012. It provides
principles and mechanisms for the treatment by each State of the nationals
of the other State. The key principle is the Four Freedoms: residence,
movement, economic activity, and the right to acquire and dispose of
property, which each State is to assure for the nationals of the other State.
The Agreement establishes a Joint High Level Committee to oversee the
range of issues relating to nationals of the other State. The Parties agree to
elaborate the four freedoms in order to facilitate their full implementation
within the two States.
3. The Agreement on Border Issues (including demarcation)
The Agreement on border issues is a consolidation of a range of issues
relating to the overall management of the border (the area either side of
the boundary between the two States). The Agreement adopts two key
principles: a “soft border” and an “integrated border management
approach” (IBMA). A soft border will ensure a peaceful, safe and secure
border between which the flow of people, trade and livestock will remain
unhindered. The Agreement makes special arrangements for
transhumance (seasonal movement of livestock for pasture) and guarantees
the continuance of nomadic livelihoods.
The principles of the IBMA will foster the better coordination and
management of various activities along the border, under the oversight of
the Joint Border Commission, and with the participation of all key actors,
including the border communities.
The Agreement recommits the two States to establish institutions for
completing the demarcation of the boundary within specified period.
4. The Agreement on Trade and Trade-Related Issues
The Parties have agreed, as an interim measure, that each State shall
pursue an independent trade policy while considering the possibility of
common policies. They each agree to adhere to trade policies of the
regional and international organizations to which they belong. The two

States pledge to foster trade relations including through joint ministerial
and technical committees to foster trade relations. At a future date, the
two States shall adopt a long-term trade policy for the benefit both States.
5. The Agreement on a Framework for Cooperation on Central
Banking Issues
Through the Central Banking Agreement, the two States acknowledge the
need for cooperation in the management of a monetary and fiscal policy,
with the goal of maintaining confidence, controlling inflation and avoiding
destabilizing exchange-rate fluctuations. Each State will continue to adhere
to international finance and banking standards.
The Agreement establishes various committees to support financial
stability between the two States by developing systems and procedures that
will enhance cooperation in the area of central banking.
6. The Framework Agreement to Facilitate Payment of Post-Service
Benefits
With the secession of South Sudan, many individuals who had previously
worked in the public service, either for the Government of the Sudan or
the Government of Southern Sudan, ceased to be eligible to work in the
public service as a consequence of new rules associated with nationality.
Accordingly, new arrangements for the continued payment of pensions
and other post-service benefits were needed for such individuals, as well as
for others who had already retired from public service.
This Agreement affirms the obligation to continue to pay pensions and
benefits and establishes the principles and mechanisms that will ensure
uninterrupted, timely and convenient payment arrangements for citizens of
either State, wherever they might be residing.
7. The Agreement on Certain Economic Matters: Division of Assets
and Liabilities, Arrears and Claims and Joint Approach to the
International Community
The secession of South Sudan necessitated an agreement on how to deal
with the assets and liabilities of what was previously one State. The two
States adopted a comprehensive approach to the treatment of assets and
liabilities, arrears and claims.
The two States agreed that Sudan would retain all external debts and assets
("the zero option") on condition that Sudan obtains debt relief, within two
years, through the Highly Indebted Poor Countries initiative. In the event
that debt relief is not secured within this period, the division of the
liabilities would be reviewed.
The two States have also agreed to approach the international community
jointly to find ways of alleviating Sudan’s debt burden and to seek an end
to sanctions imposed on Sudan. This Joint International Approach would
also seek to secure international financial assistance for both States. Lastly,
the two States agreed to the mutual forgiveness of all government-togovernment
arrears and claims.
8. The Agreement concerning Oil and related Economic Matters
Oil is a critical resource for Sudan and South Sudan. Under the Oil
Agreement, the two States undertake to cooperate fully to ensure the
resumption of production of oil by South Sudan, and to provide for the
transportation and processing of that oil within the territory of Sudan.
Specifically, the Parties have agreed to processing, transportation and
transit fees which fees reflect the special circumstances of the relations
between the two States. The Agreement will enable South Sudanese oil to
reach the international markets and thus to make a direct contribution to
the economy of South Sudan, and consequently to Sudan.
The Agreement also contains provisions to ensure a cushion for the
Republic of the Sudan against the economic shock arising from the
secession of South Sudan, and the resulting loss of oil revenues to the
Sudan. Accordingly, the Agreement provides for Transitional Financial
Arrangements (TFA) whereby the Republic of South Sudan will make a
substantial financial contribution to Sudan to be transferred over a period
of three and a half years (i.e. 42 months).
The “Joint International Approach” cited in the Agreement on Certain
Economic Matters, and by which the two States will participate in seeking
to secure debt relief and financial support for Sudan’s debt, is part of the
package of measures, alongside the TFA, for ameliorating the adverse
economic effects of the secession. The third limb of that package is the
unilateral economic measures that Sudan will take to diversify its economy
and strengthen its economic resilience.
9. The Cooperation Agreement
The Cooperation Agreement, signed by the two Presidents of the Sudan
and South Sudan, brings together the themes in the other Agreements. It
affirms the overriding principle by which each Party pledges to seek the
mutual viability of the two States. The Agreement also recognizes the
abiding connections between the peoples of South Sudan and Sudan, and
sets out the basis for developing a cooperative relationship in all fields of
mutual interest, that will ensure the prosperity of both States.
The two States pledge to implement all the Agreements into which they
have entered, and generally to maintain peaceful relations with each other.
Each State has agreed to ratify within its National Assembly the above
Agreements that have been signed, and accordingly to ensure the broadest
national support for these measures.