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COMMISSION OF THE EUROPEAN COMMUNITIES 
m 
COM(94) 139 final 
Brussels, 20.04.1994 
94/0114 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
suspending the generalized tariff preferences for 
certain products originating in the Republic of Korea 
(presented by the Commission) 
Explanatory Memorandum 
The Republic of Korea has recently decided to unilaterally increase 
the import duties on a certain number of products, with effect from 1 
January 1994. The European Union is the principal supplier to the 
Korean market for certain products affected by this decision, notably 
in the textile sector. This action is consequently having a direct and 
detrimental effect on exports from the EU to the Republic of Korea. 
Despite many attempts, even at Ministerial level, to dissuade the 
Republic of Korea from taking this aggressive measure, the Korean 
Republic has nonetheless taken this action as a means of trade defence. 
Urgent and appropriate measures are required by the EU to respond to 
the Korean decision which is bound to have a significant negative 
impact on EU exports to the Korean market. 
In the strict legal sense, the Korean action is not contrary to GATT. 
In fact, the duties on products affected by the action of the Republic 
of Korea are either unbound in the GATT (80% of the Korean tariff is 
not currently bound), or are lower than the GATT bound rates, thereby, 
strictu sensu, allowing such adjustments. Nevertheless, by taking this 
action just when the Uruguay Round negotiations have been concluded, 
and taking advantage of the inevitable transitional period before the 
effective implementation of the results of the negotiations, the Korean 
Rapublic is obviously acting contrary to the spi r i t of the GATT. 
By taking rapid action, the EU will give a clear signal that this type 
of action will not be accepted, in particular, when it is taken by a 
country whose per capita gross domestic product is similar to that 
enjoyed by some regions of the European Union. 
Therefore, it seems necessary to suspend, on a selective basis, the GSP 
benefit accruing to the Republic of Korea for certain products. Taking 
in account the type of EU exported products principally affected by the 
Korean measures, and the volume of trade involved, it would appear 
appropriate to suspend the GSP benefit for textile products covered by 
the Muitifibre Agreement. 
This is the object of the attached proposal. 
>1 
COUNCIL REGULATION (EC) No. 
suspending the generalized tariff preferences for certain 
products originating in the Republic of Korea 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, and in 
particular Article 113 thereof, 
Having regard to the proposal from the Commission, 
whereas the generalized scheme of preferences has for 1S94 been applied 
for six months from 1 January to 30 June by Council Regulation (EC) 
Mo, 3366/93 of 20 December ISS^D and will be automatically extended 
until 31 Decemfcer if no new scfceme has been agreed upon before'the date 
•f t$ Jur»; 
wttefeas the Republic of Ko?e« benefits from these generalized tariff 
preference*; 
whereas the ecftem» of genera Uie«f tariff preferences is an autonomous 
Community scheme; 
«**#feas the Republic ©f More* has recently iwple#»ented unilateral 
measures which have resulted in the raising of applied customs duties, 
in particular for certain products for wftich the European Union is a 
major supplier to the market of the Republic of Korea; 
whereas this action has to be considered as an aggressive trade policy 
measure having a direct and detrimental effect on the export interests 
of the European Union to the Republic of Korea, especially in the 
textile sector; whereas, therefore, it is inappropriate that products 
originating in the Republic of Korea and covered by the Arrangement 
regarding International Trade in Textiles (MFA) should benefit from 
the scheme of generalized tariff preferences, as long as this situation 
continues, 
(1) O.J. L 338 of 31 December 1993, p. 22 
Z. 
HAS ADOPTED THIS REGULATION 
Article 1 
The preferences foreseen by Council Regulation (EC) No. 3668/93 of 20 
December 1993(1), shall be suspended for those products originating 
in the Republic of Korea which are listed in Annex I of Council 
Regulation (EEC) No. 3832/90 of 20 December 1990<2>. 
Article 2 
This Regulation shall enter into force on the 1 July 1994. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels,. 1994. 
For the CounclI 
The President 
(1) O.J. L 338 of 31 December 1993, p.22 
(2) O.J. L 370 of 31 December 1990, p. 39 
COMMISSION DECLARATION 
"The Commission declares that this proposal for a Council Regulation 
does not constitute a precedent and that it has been made as an 
exceptional response to trade measures taken by the Republic of Korea 
which are seriously prejudicial to European Union interests. These 
measures require, in this instance, the partial suspension of Korea's 
GSP benefits." 
H 
ISSN 0254-1475 
COM(94) 139 final 
DOCUMENTS 
EN 1102 
Catalogue number : CB-CO-94-146-EN-C 
ISBN 92-77-67612-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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