Proposal for a COUNCIL DECISION concerning the conclusion of the Framework Agreement for Trade and Cooperation between the European Community and its Member States, of the one part, and the Republic of Korea, of the other part
Date: 1996-03-27
Institutions: European Commission
Subjects: South Korea, cooperation agreement (EU), cooperation policy, framework agreement, trade agreement (EU)

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  27.03.1996 
COM(96) 141 final 

96/ 0098 (CNS) 

Proposal  for a 

COUNCIL  DECISION 

concerning the conclusion of 
the Framework Agreement for Trade and Cooperation 
between the European Community and its Member States, of the one part, 
and the Republic of Korea, of the other part 

(presented by the  Commission) 

EXPLANATORY MEMORANDUM 

1.  By means of a decision of 8 March  1995, the Council authorized the Commission to 
open  negotiations  for  a framework  agreement  for  trade  and  cooperation  with the 
Republic of Korea and adopted negotiating directives to that end. 

2. 

Two negotiating sessions took place in Brussels, the first  on  11 May  1995 and the 
second on  12-13 October  1995. Further to consultations between the Commission 
and  the  Korean  Government  held  at  the  end  of  November  1995  and  contacts 
through  diplomatic  channels,  the  agreement  was  initialled  in  Brussels  on  29 
February 1996. 

3.  When  the  negotiating  directives  were  adopted,  the  Council  stipulated  that  it 
reserved the right to give its decision on the legal status of the Agreement once the 
negotiations would be completed.  In line with the outcome  of the  discussion that 
took place in Council in December  1995 and January 1996 the agreement will be an 
agreement to which both the Community and Member States will be parties (a so-
called mixed agreement). The Agreement is now being submitted to the Council to 
be signed and concluded. 

4. 

5. 

6. 

The  Commission  considers  that  the  Agreement  initialed  is  in  line  with  the 
negotiating directives adopted by the Council. 

The  Commission  will  examine  whether  the  provisional  application  of  certain 
provisions of this agreement is acceptable to the Korean side. If this were to be the 
case, the Commission will in due course seek the approval of an exchange of letters 
to that end. 

In order to enable the framework  agreement for trade and cooperation between the 
European  Community  and  its  Member  States  and  the  Republic  of  Korea  to  be 
signed and concluded, the Commission is proposing to the Council that  it approve 
the attached draft decision. 

"* 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 73 c (2), 75, 84(2),  113, and 235 thereof; in conjunction with the second sentence 
of Article 228 (2) and the first subparagraph of paragraph 3 of thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having consulted the Economic and Social Committee, 

Whereas the European Community should approve the Framework Agreement  for Trade 
and Cooperation  between  the European  Community  and  its  Member  States,  of  the  one 
part, and the Republic of Korea, of the other part, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Framework  Agreement  for  Trade  and  Cooperation  between  the  European 
Community  and its Member  States,  of  the  one  part,  and the  Republic  of  Korea,  of  the 
other part, is hereby approved on behalf of the European Community. 

The text of the Agreement is attached to this Decision. 

Article 2 

The Commission,  assisted  by  representatives  of  the  Member  States,  shall  represent  the 
European  Community  in  the  Joint  Committee  provided  for  in  Article  19  (3)  of  the 
Framework Agreement for Trade and Cooperation. 

Article 3 

The President  of the Council  shall give the notification  provided  for  in Article  21  of the 
Agreement on behalf of the European Community. 

This Decision shall be published in the Official  Journal of the European Communities. 

Article 4 

Done at Brussels, 

For the Council 
The President 

M 

(title) 

Framework  Agreement  for  Trade  and  Cooperation 
between  the  European Community  and  its  Member  States, on the one  hand, 
and  the Republic of Korea  on the  other 

(text) 

THE EUROPEAN  COMMUNITY, 

and 

THE KINGDOM OF BELGIUM, 
THE KINGDOM  OF DENMARK, 
THE FEDERAL REPUBLIC OF GERMANY, 
THE HELLENIC REPUBLIC, 
THE KINGDOM OF SPAIN, 
THE FRENCH REPUBLIC, 
IRELAND, 
THE ITALIAN  REPUBLIC, 
THE GRAND DUCHY OF LUXEMBOURG, 
THE KINGDOM  OF THE NETHERLANDS, 
THE REPUBLIC OF AUSTRIA, 
THE PORTUGUESE  REPUBLIC, 
THE REPUBLIC OF FINLAND, 
THE KINGDOM OF SWEDEN,-
THE UNITED KINGDOM OF GREAT BRITAIN  AND NORTHERN  IRELAND, 

Parties to the Treaty establishing the European Community and the Treaty on European 
Union, hereinafter  referred  to as Member  States', 

on the one hand, 

and 

THE REPUBLIC OF KOREA, 

on the other hand, 

CONSIDERING  the  traditional  links  of friendship between  the  Republic  of  Korea, 

the European Community and its Member States; 

EC/Korea Framework Agreement -  1/18 

AC 

REAFFIRMING 

the  attachment  of  the  Parties  to  democratic  principles  and 

fundamental  human rights as laid down in the Universal  Declaration  on  Human Rights, 

CONFIRMING  their  desire  to  establish  a  regular  political  dialogue  between  the 

European  Union and the Republic ofKorea,  based on shared  values and aspirations, 

RECOGNISING  that  the  General  Agreement  on  Tariffs  and  Trade  has  played  a 
significant  role to promote international  trade in general  and  bilateral  trade  in particular, and 
that  both  the  Republic ofKorea  and  the  European  Community  are equally  committed  to  the 
principles of free  trade and market economy on which that  agreement  is based, 

Rf£AFFIRMING that  both  the  Republic  of  Korea,  the  European  Community  and  its 
Member  States have pledged  to  implement  fully  their  commitments  made by the  ratification 
of the Agreement  establishing the World Trade Organisation, 

HAVING IN MIND  the need to contribute to the full  implementation  of the results of 
the GATT  Uruguay  Round  and the need  to apply all rules governing  international  trade in a 
transparent  and non-discriminatory  manner; 

RECOGNISING  the  importance  of  strengthening  the  existing  relationship  between 
the  Parties  with  a view to  enhancing co-operation  between  them,  and  their  common  will  to 
consolidate,  deepen  and  diversify  their  relations  in  areas  of  mutual  interest  on  the  basis  of 
equality, non-discrimination,  respect  for the natural environment  and mutual  benefit, 

DESIROUS  of  creating 

favourable  conditions 

for  sustainable  growth  and 

diversification  of trade and for economic cooperation in various areas of mutual interest, 

BELIEVING  that  it  will  be  advantageous  to  the  Parties  to  institutionalise  relations 
and to establish economic cooperation  between  them, as such cooperation  would  encourage 
further  development  of trade and investment, 

MINDFUL  of the importance of facilitating  the involvement  in cooperation  of the 

individuals and entities directly concerned, in particular economic operators and the bodies 
representing them, 

HAVE DECIDED TO CONCLUDE THIS AGREEMENT  AND TO THIS  END HAVE 
DESIGNATED  AS THEIR  PLENIPOTENTIARIES 

3_ 

EC/Korea  Framework  Agreement  - 2/18 

THE EUROPEAN COMMUNFIY: 

THE KINGDOM OF BELGIUM: 

THE KINGDOM OF DENMARK: 

THE FEDERAL RICPUBLIC OF GERMANY: 

THE HELLENIC REPUBLIC: 

THE KINGDOM OF SPAIN: 

THE FRENCH REPUBLIC: 

IRELAND: 

THE ITALIAN REPUBLIC: 

THE GRAND DUCHY OF LUXEMBOURG: 

THE KINGDOM OF THE NETHERLANDS: 

THE REPUBLIC  OF AUSTRIA: 

THE PORTUGUESE REPUBLIC: 

THE REPUBLIC OF FINLAND: 

THE KINGDOM OF SWEDEN: 

THE UNITED KINGDOM OF GREA T BRITAIN AND NORTHERN IRELAND: 

THE REPUBLIC  OF KOREA : 

WHO, having exchanged their full  powers, found  in good and due form, 

HAVE AGREED AS FOLLOWS: 

EC/Korea Framework Agreement - 3/18 

Article  I. Basis for  Cooperation 

Respect  for  democratic principles and  human  rights  as defined  in  the  Universal  Declaration 
on  Human  Rights  inspires  the  domestic  and  international  policies  of  the  Parties  and 
constitutes an essential element of this Agreement. 

Article 2. Aims of Cooperation 

stepping  up,  establishing  cooperation  in  and  diversifying  trade  to  their  mutual 

With  a  view  to  enhancing  co-operation  between  them,  the  Parties  undertake  to  promote 
further  development  of economic  relations between  them.  Their  efforts  will  in particular  be 
aimed  at: 
a. 
advantage; 
b. 
technological  cooperation and industrial  cooperation; 
c. 
and by promoting better mutual understanding. 

facilitating  cooperation  between  businesses  by  facilitating  investment  on  both  sides 

establishing economic cooperation in fields of mutual interest, including scientific and 

Article  3. Political Dialogue 

A  regular  political  dialogue,  based  on  shared  values  and  aspirations,  shall  be  established 
between  the  European  Union  and  the  Republic  ofKorea.  This  dialogue  shall  take  place in 
accordance  with  the  procedures  agreed  in  the  Joint  Declaration  between  the  European 
Union and the Republic ofKorea  on this subject. 

Article 4. Most-fa\>oured-nation  Treatment 

In  accordance  with  their  rights  and  obligations  under  the  World  Trade  Organization,  the 
Parties undertake to accord each other most-favoured-nation  treatment 

Article 5.  Trade Cooperation 

1. 

The  Parties  undertake  to  promote  the  development  and  diversification  of  their 
reciprocal  commercial  exchanges  to  the  highest  possible  level  and  to  their  mutual 
benefit. 

The Parties undertake to achieve improved  market  access conditions. They will ensure 
that  applied,  most  favoured  nation customs duties are set,  taking  into  account  various 
elements, including the domestic market  situation of one Party  and the export  interests 
of  the  other  Party.  They  undertake  to  work  towards  the  elimination  of  barriers  to 
trade,  in  particular  through  the  timely  removal  of  non-tariff  barriers  and  by  taking 
measures  to  improve  transparency,  having  regard  to  the  work  carried  out  by 
international organisations in this  field. 

EC/Korea Framework Agreement - 4/18 

2. 

The Parties shall take steps to conduct  a policy aimed at 

c. 

b. 

a.  multilateral  and  bilateral  cooperation  to  address  issues  relating  to  the  development  of 
trade which are of interest  to both  sides, including the future  proceedings  of the WTO. 
To that  end they shall cooperate  at the international  level and  bilaterally  in the solution 
of commercial  problems of common interest, 
promoting  exchanges  of  information  between  economic  operators  and  industrial 
cooperation  between  enterprises  in  order  to  diversify  and  increase  existing  flows  of 
trade; 
studying  and  recommending  trade-promotion  measures  suitable  for  fostering  the 
development of trade, 
facilitating  cooperation  between  the  competent  customs  authorities  of  the  European 
Community, its Member States and Korea; 
improving market access for  industrial, agricultural  and fisheries  products; 
improving  market 
access 
telecommunications services; 
strengthening cooperation  in the fields of standards and technical  regulations, 
effectively  protecting intellectual, industrial  and commercial  property, 
organising trade and investment visits, 
organising general and single industry trade fairs. 

services  and 

g. 
h. 
i. 
j. 

financial 

services, 

e. 
f 

such 

for 

as 

d. 

3. 

4. 

The Parties shall foster  fair  competition  of economic  activities  through  fully  enforcing 
their relevant laws and regulations. 

In  accordance  with  their  obligations  under  the  WTO  Government  Procurement 
Agreement,  the  Parties  shall  ensure  participation  in  procurement  contracts  on  a  non 
discriminatory and reciprocal basis. 

They will continue their discussions aimed at further  mutual opening of their respective 

'  procurement  markets in other sectors such as telecommunications procurement. 

Article 6. Agriculture and Fisheries 

1. 

a. 
b. 

c. 
d. 

2. 

The  Parties  agree  to  encourage  cooperation  in the fields of  agriculture  and fisheries, 
including  horticulture  and  mariculture  On  the  basis  of  discussions  about  their 
respective agricultural and fisheries policies the Parties will study: 

the possibilities for increased  trade in agricultural  products and fish products, 
the  effect  on  trade  of  sanitary  and  phytosanitary  measures,  and  measures  relating  to 
the environment; 
the links between agriculture and the rural environment; 
research 
mariculture. 

in  the  fields  of  agriculture  and  fisheries,  including  horticulture  and 

As appropriate,  the  provisions  of  paragraph  1 of  this  Article  apply  to  products  and 
services in the related  agricultural  processing industry 

EC/Korea Framework Agreement - 5/18 

The  Parties  undertake  to  comply  with  the  terms  of  the  Agreement  on  Sanitary  and 
Phytosanitary  Measures  of the  WTO and  are  willing to  enter  into  consultations,  upon 
request  of  either  of  them,  to  discuss  the  proposals  from  the  other  Party  on  the 
application  and  the  harmonisation  of  sanitary  and  phytosanitary  measures,  taking  into 
consideration  the  standards  agreed  upon  in  other  international  organizations  such  as 
OIE,  IPPC, and Codex Alimentarius 

Article  7. Maritime Transport 

1 

The  Parties  undertake  to  move  towards  the  goal  of  unrestricted  access  to  the 
international  maritime  market  and  traffic  based  on  fair  competition  on  a  commercial 
basis, in accordance with the provisions of this Article. 

(a)  The  above  provision  does  not  prejudice  the  rights  and  obligations  arising  from  the 
United  Nations  Convention  Code  of  Conduct  for  Liner  Conferences  as  applicable  to 
one  or  other  Party  to  the  present  Agreement.  Non-conference  lines  will  be  free  to 
operate in competition  with a conference  as long as they adhere to the principle of fair 
competition on a commercial basis. 

(b)  The  Parties  affirm  their  commitment  to  build  a  fair  and  competitive  environment  for 
the dry  and  liquid  bulk  trade.  In view of this commitment,  the  Republic  of Korea will 
take  necessary  steps  to  phase  out  the  existing  cargo  reservation  of  designated  bulk 
commodities  for  Korean  flag  carriers  over  a transitional  period,  which  will  end  on 31 
December  1998. 

2. 

In pursuit  of the goal of paragraph  1, the Parties shall: 

(a) 

(b) 

(c) 

abstain  from  introducing  cargo  sharing  clauses  into  future  bilateral  agreements  with 
third  countries  concerning  dry  and  liquid  bulk  and  liner  trade,  except  where,  in 
exceptional  circumstances,  with  regard  to liner trade, shipping companies from one or 
other  Party  to  the  present  agreement  would  not  otherwise  have  an  effective 
opportunity to engage in trade to and from the third country concerned 

abstain  from  implementing,  upon  entry  into  force  of  this  Agreement,  administrative 
and  technical  and  legislative  measures  which  could  have  the  effect  of  discriminating 
between their own nationals or companies and those of the other  Party in the supply of 
services in international  maritime transport 

grant  no less favourable  treatment  for  the ships operated  by nationals or companies of 
the  other  Party,  than  that  accorded  to  its  own  ships,  with  regard  to  access  to  ports 
open to  international trade, the use of infrastructure  and  auxiliary  maritime services of 
the  ports,  as  well  as  related, fees  and  charges,  customs  facilities  and  assignment  of 
berths and facilities  for loading and unloading 

3 

For  the  purpose  of  this  Article,  access  to  the  international  maritime  market  shall 
include, inter alia, the right for  international  maritime transport  providers of each Party 
to  arrange  door-to-door  transport  services  involving  a  sea  leg,  and  to  this  effect  to 

EC/Korea Framework Agreement - 6/18 

directly contract  with  local  providers of transport  modes other  than  maritime  transport 
on  the  territory  of  the  other  Party  without  prejudice  to  applicable  nationality 
restrictions  concerning  the carriage of goods  and  passengers  by  those  other  transport 
modes 

4 

The  provisions  of  this  Article  shall  apply  to  European  Community  companies  and 
Korean  companies  Beneficiaries  of the provisions of this Article shall  be also shipping 
companies established  outside the European  Community or the  Republic ofKorea  and 
controlled  by nationals of a Member State or the Republic ofKorea,  if their vessels are 
registered  in that  Member  State  or  in  the  Republic  ofKorea  in  accordance  with  their 
respective legislations. 

5. 

The  issue of the operations in the European  Community  and  in the  Republic  ofKorea 
of  shipping  agency  activities  shall  be  dealt  with  by  specific  agreements,  where 
appropriate 

Article S. Shipbuilding 

The  Parties  agree  to  co-operate  in the field of  shipbuilding  with  a view  to  promoting 
fair  and  competitive  market  conditions  and  note  the  severe  structural  disequilibrium 
between  supply  and  demand  and  the  market  trend  which  depress  the  world 
shipbuilding  industry.  For  these  reasons,  the  Parties  shall  not  adopt  any  measure  or 
take any action to support  their shipbuilding  industry which  would  distort  competition 
or  allow  their  shipbuilding  industry  to  escape  from  any  future  difficult  situation,  in 
accordance with the OECD Agreement  on Shipbuilding. 

The  Parties  agree  to  enter  into  consultations  upon  a  request  from  either  Party 
regarding  the implementation  of  the  OECD  Agreement  on  Shipbuilding,  exchange  of 
information  on the development  of the world  market  for  ships and  shipbuilding  and on 
any other problem arising in this sector. 
The  representatives  of  the  shipbuilding  industry  may  be  invited  as  observers  to  such 
consultations, upon agreement by the Parties. 

Article  9. Intellectual, Industrial and Commercial Property Protection 

The  Parties undertake to ensure that  adequate and  effective  protection  is provided  for 
intellectual,  industrial  and  commercial  property  rights,  including  effective  means  of 
enforcing  such rights. 

The  Parties  agree  to  implement  the  WTO  Agreement  on  Trade-Related  Aspects  of 
Intellectual  Property Rights not  later than  1  July  1996  ' 

For  the  Republic  of  Korea  with  the exception  of  the  Agrochemical  Management  Law  which  will  enter 
into  force  as  from  1  January  1997  and  the  Seedlings  Industry  Law  (and  Law  on  Protection  of 
Geographical  Indications) by  1  July  1998. subject  to its legislative procedure 

EC/Korea Framework Agreement - 7/18 

3. 

The  Parties  confirm  the  importance  they  attach  to  the  obligations  contained  in 
multilateral  conventions  for  the  protection  of  intellectual  property  rights  The  Parties 
shall  make  efforts  to  accede  as  soon  as  practicable  to  the  conventions  in  Annex  to 
which they have not acceded 

Article  10. Technical Regulations, Standards and Conformity Assessment 

1  Without  prejudice  to  their  international  obligations,  within  the  scope  of  their 
responsibilities  and  in accordance  with  their  laws,  the  Parties  will  promote  the  use  of 
internationally  recognised  standards and conformity  assessment  systems 

To that end, particular attention  will be paid to: 

a. 

b. 
c 
d. 
e 

f. 

2. 

exchange  of  information  and  technical  experts  in  the  fields  of  standardisation, 
accreditation,  metrology and certification,  as well as joint  research  where appropriate; 
promotion  of interchange and contact  between relevant  bodies and institutions, 
sectoral  consultations; 
cooperation  in quality management  activities; 
strengthening  cooperation  in  the  fields  of  technical  regulations,  particularly  by 
concluding  an agreement  for  the mutual  recognition  of conformity  assessment  results, 
as  a  means  of  facilitating  trade  and  avoiding  any  disruption  prejudicial  to  its 
development, 
participation  and  cooperation 
agreements with a view to promoting the adoption of harmonised  standards 

in  the  framework  of  the  relevant 

international 

The  Parties  shall  ensure  that  standards  and  conformity  assessment  activities  do  not 
constitute unnecessary barriers to trade. 

Article II.  Consultations 

The Parties agree to promote the exchange of information  concerning trade measures 

Each  Party  undertakes  to  inform  the  other  in  a  timely  manner  of  the  application  of 
measures  which  alter  most-favoured-nation  applied  import  duties  which  affect  the 
exports of the other Party 

Either  Party  may  request  consultations  on  trade  measures  Where  such  a  request  is 
made,  the  consultations  shall  take  place  at  the  earliest  opportunity  with  a  view  to 
reaching a mutually acceptable, constructive solution as early as possible. 

Each  Party  agrees  to  inform  the  other  Party  of  the  initiation  of  anti-dumping 
procedures against  products of the other Party. 

In  full  respect  of  the  WTO  Agreements  on  anti-dumping  and  anti-subsidy  measures, 
the  Parties  shall  afford  sympathetic  consideration  to,  and  shall  afford  adequate 

EC/Korea  Framework  Agreement  -  8/18 

1 

opportunity  for  consultation  regarding,  representations  made  by  either  Paay  with 
respect  to anti-dumping procedures and anti-subsidy  procedures 

The  Parties  agree  to  consult  each  other  on  any  disputes  which  may  arise  from  the 
implementation  of  this  Agreement  If either  Party  requests  such  consultation,  it  shall 
take  place  at  the  earliest  opportunity  The  Party  making  its  request  shall  provide  the 
other  Party  with  all  information  necessary  for  a detailed  examination  of  the  situation. 
Attempts  shall be made through  such consultations  to resolve trade disputes  as rapidly 
as possible 

The provisions of this Article shall in no way  prejudice  the internal  procedures  of each 
Party  for  the  adoption  and  modification  of  trade  measures,  or  the  notification, 
consultation  and dispute settlement  mechanisms foreseen  under the WTO Agreements. 

Article  12. Economic and Industrial Cooperation 

1. 

The  Parties,  taking  into  account  their  mutual  interest  and  their  respective  economic 
policies  and  objectives,  shall  foster  economic  and  industrial  cooperation  in  all  fields 
deemed  suitable by them. 

2. 

The objectives of such cooperation  shall be in particular: 

to  promote  exchanges  of  information  between  economic  operators,  and  develop  and 
improve existing networks, while ensuring that  personal data  are suitably  protected; 
to  bring  about  exchanges  of information  on  the terms  and  conditions  for  cooperation 
in the field  of all services as well as information  infrastructures; 
to  promote  mutually  beneficial  investment  and  establish  a  climate  which  favours 
investment, 
to improve the economic environment  and business climate 

As means to such ends, the Parties shall endeavour,  inter alia: 

to diversify  and strengthen economic links between  them, 
to establish industry specific channels of cooperation, 
to promote  industrial  cooperation  between  enterprises, in particular between  small and 
medium  sized enterprises, 
to promote sustainable development  of their economies, 
to encourage ways of production which are not  prejudicial  to the environment; 
to encourage the flow of investment  and technology; 
to  increase  mutual  understanding  and  awareness  of  their  respective  business 
environments 

3. 

a. 
b. 
c 

d. 
e. 
f 
g. 

1 

EC/Korea  Framework  Agreement  - 9/18 

Article  13. Drugs and Money  Laundering 

The Parties shall cooperate in increasing the effectiveness  and efficiency  of policies and 
measures  to  counter  the  illicit  production,  supply  and  traffic  of  narcotic  drugs  and 
psychotropic  substances, including the prevention  of diversion  of precursor  chemicals, 
as  well  as  in  promoting  drug  demand  prevention  and  reduction  The  cooperation  in 
this  area  shall  be  based  on  mutual  consultation  and  close  coordination  between  the 
Parties over the objectives and measures on the various drug-related fields 

The  Parties  agree on the  necessity  of making  serious  efforts  and  cooperating  in order 
to  prevent  the  use  of their financial systems  for  laundering  of  proceeds  from  criminal 
activities in general and drug offenses  in particular. 

Co-operation  in  this  area  shall  aim  at  establishing  suitable  standards  against  money 
laundering taking into consideration  those adopted  by international  fora  in this field, in 
particular the Financial Action Task  Force (FATF). 

Article 14. Cooperation in Science and  Technology 

1. 

In accordance  with their  mutual  interest  and  the  aims  of  their  policies  on  science,  the 
Parties  undertake  to  promote  cooperation  in  science  and  technology.  To this  end  the 
Parties shall endeavour to encourage in particular: 

the exchange of information  and know-how in the field of science and  technology, 
dialogue  about  the  elaboration  and  implementation  of  the  respective  research  and 
technological development  policies; 
cooperation  in the field of  information  technology,  as  well  as  in the  technologies and 
industry affecting  interoperability  towards the global information  society, 
cooperation  in the fields of energy and the protection  of the environment, 
cooperation  in science and technology sectors of common  interest. 

2.  With  a view  to  attaining  the  aims  of their  respective  policies,  the  Parties  shall,  inter 

alia, endeavour to: 

information 

telecommunications  and 

exchange  information  on  research  projects  in  the  fields  of  energy,  protection  of  the 
environment, 
information 
technology  industry; 
advance the training of scientists by appropriate means, 
encourage technology transfer  on the basis of mutual  benefit; 
jointly organise seminars bringing together senior scientists of both sides, and 
encourage  researchers from both  Parties  to  conduct  joint  research  in fields of  mutual 
interest. 

technology,  and 

3 

The  Parties  agree  that  all  cooperation  and  joint  actions  in  the  field  of  science  and 
technology  take place on the basis of reciprocity. 

EC/Korea  Framework  Agreement  -  10/18 

The  Parties  agree  to  protect  effectively  the  information  and  the  intellectual  property 
resulting  from  cooperation  against  any  abuse  or  unauthorised  use  by  others  than  the 
legitimate owners thereof. 
In case of participation by institutions, bodies and  undertakings of one of the Parties in 
specific  research  and  technological  development  programmes  of  the other  Party,  such 
as those  set  up under  the  European  Community's general  framework  programme,  this 
participation  and the dissemination  and  exploitation  of knowledge obtained  as a result 
thereof  shall  take  place  in  accordance  with  the  general  rules  laid  down  by  that  other 
Party. 

The  priorities  for  cooperation  shall  be  decided  through  consultation  between  the 
Parties.  Subject  to  the  preceding  paragraph,  the  participation  of  private  sector 
institutions,  bodies  and  undertakings  in  cooperation  activities  and  specific  research 
projects of common interest  shall be encouraged 

Article  15. Cooperation in Environmental Matters 

The  Parties  will  establish  cooperative  relations  seeking  to  protect  and  preserve  the 
environment. This will take place through. 

exchanges of information  on environmental  policies and  their  implementation  between 
relevant  officials  in  the  European  Commission  and  the  relevant  authorities  in  the 
Republic  ofKorea; 
exchanges of information  on environmentally  sound  technologies; 
exchanges of personnel; 
the  promotion  of  co-operation  on  environmental  matters  being  discussed  in  the 
international  fora  where  the  European  Community  and  the  Republic  of  Korea 
participate,  particularly  the  UN  Commission  on  Sustainable  Development  and  other 
fora where international Conventions on the environment  are debated, 
discussion  on  the  pursuit  of  sustainable  development  practices  and  in  particular,  co 
operation  in the implementation  of Agenda  21  and  other  follow-up  activities from the 
UN Conference on Environment  and Development  (UNCED); 
cooperation  on joint environmental  projects. 

Article  16.  Energy 

The  Parties  recognise  the  importance  of  the  energy  sector  to  economic  and  social 
development  and  are willing, within  the  scope  of  their  respective  competences,  to  enhance 
cooperation  in this field. The objectives of such cooperation  shall be: 

to  promote  the  market-economy  principle  in  setting  consumer  prices  in  accordance 
with market principles; 
to diversify  energy supplies, 
to develop new and renewable forms of energy, 
to achieve rational use of energy, notably by promoting demand-side management, and 
to  foster  the best  possible conditions  for  the  transfer  of  technology  in  the  interests  of 
efficient  energy use 

/11 

EC/Korea Framework Agreement - 11/18 

To these ends, the Parties agree to promote the conduct  of joint  studies and  research, as well 
as contacts between those responsible for energy planning. 

Article  17.  Cooperation in Culture, Information and  Communication 

The  Parties  undertake 
information  and 
communication  in  order  to  promote  better  mutual  understanding,  taking  account  of  the 
cultural dimension of relations between them 

to  establish  cooperation 

the  fields  of 

in 

These measures shall take the form of,  in particular 

exchange  of  information  on  issues  of  common  interest  concerning  culture  and 
information, 
organisation  of cultural events; 
cultural exchanges, and 
academic exchanges 

Article  18:  Cooperation in the Development of  Third Countries 

The  Parties  agree  to  exchange  information  on  their  development  assistance  policies  with  a 
view  to  establishing  a  regular  dialogue  on  the  objectives  of  these  policies  and  on  their 
respective  development  aid  programmes  in third  countries.  They  will  study  to  what  extent 
more substantial  cooperation  is feasible,  in accordance  with  their  respective  legislations and 
the conditions applicable to the implementation  of these programmes. 

Article  19.  Joint Committee 

1. 

The  Parties  shall  establish  under  this  Agreement  a  Joint  Committee  consisting  of 
representatives  of  the  members  of  the  Council  of  the  European  Union  and 
representatives  of  the  Commission  of  the  European  Communities,  on  the  one  hand, 
and representatives of the Republic ofKorea,  on the other.  Consultations  shall be held 
in  the  Committee  in  order  to  facilitate  the  implementation  and  to  further  the  general 
aims of the present  Agreement. 

2. 

The Joint Committee shall 

ensure that the agreement  operates properly, 
study the development  of trade and cooperation  between the two Parties, 
seek  appropriate  methods of forestalling  problems  which  might  arise  in  areas  covered 
by the Agreement; 
seek ways of developing and diversifying  trade, 
exchange  opinions and  make  suggestions  on  any  issue of common  interest  relating  to 
trade  and  cooperation,  including  future  action  and  the  resources  available  to  carry  it 
out; 
make recommendations  suitable for promoting the expansion of trade and  cooperation, 
taking into account  the need to coordinate the measures proposed 

EC/Korea Framework Agreement - 12/18 

^ 2_ 

The Joint  Committee will normally  meet  once a year  in  Brussels  and  Seoul alternately 
Special  meetings  of  the  Committee  shall  be  held  at  the  request  of  either  Party.  The 
Joint  Committee shall be chaired  alternately by each of the Parties 

The Joint  Committee  may set  up  specialised  subcommittees  in order  to  assist  it  in the 
performance  of  its  tasks  These  subcommittees  shall  make  detailed  reports  of  their 
activities to the Joint Committee at each of its meetings 

Article 20. Definition 

For  the  purposes  of  the  present  Agreement,  the  term  "the  Parties"  means  the  European 
Community  or  its  Member  States,  or  the  European  Community  and  its  Member  States, in 
accordance  with  their  respective competences, on the one hand,  and  the  Republic of  Korea, 
on the other. 

Article 21. Entry into Force and  Duration 

1. 

2. 

This Agreement  shall enter  into  force  on the first day of the  month  following  the date 
on which the Parties have notified  each other of the completion  of the legal  procedures 
necessary  for this purpose. 
This Agreement  is concluded  for  a period  of five years.  It  shall be tacitly renewed  on a 
yearly basis unless one of the Parties denounces it in writing six months before  the date 
of expiry 

Article  22. Notifications 

The  notifications  made  in  accordance  with  Article  21  shall  be  made  to  the  Secretariat-
General  of  the  Council  of  the  European  Union  and  the  Ministry  of  Foreign  Affairs  of  the 
Republic ofKorea,  respectively. 

Article 23. Non-execution of this Agreement 

If  either  Party  considers  that  the  other  Party  has  failed  to  fulfil  an  obligation  under  this 
Agreement,  it  may take  appropriate  measures.  Before  doing  so,  except  in circumstances  of 
special  urgency,  it  shall  supply  the  other  Party  with  all  relevant  information  required  for  a 
thorough  examination  of  the  situation  with  a  view  to  seeking  a  solution  acceptable  to  the 
Parties.  In the selection  of measures, priority  must  be given  to  those  which  least  disturb  the 
functioning  of  this  Agreement.  These  measures  shall  be  notified  immediately  to  the  other 
Party and shall be the subject  of consultations if the other  Party so requests 

/l\ 

EC/Korea  Framework  Aqreement  -  13/18 

Article 24. Future Developments 

The  Parties  may  by  mutual  consent  expand  this  Agreement  with  a view  to  enhancing  the 
level of cooperation and add to it by means of agreements on specific sectors or activities 

With regard to the implementation of this Agreement, either of the Parties may put forward 
suggestions  for  widening  the  scope  of  cooperation,  taking  into  account  the  experience 
gained in its application. 

Article 25. Declarations and Annex 

The  Joint  Declarations  and  Annex  to  this  Agreement  shall  form  an  integral  part  of  this 
Agreement. 

Article 26. Territorial Application 

This Agreement  shall apply, on the one hand, to the territory of the Republic ofKorea and, 
on the other, to the territories in which the Treaty establishing  the European Community is 
applied and under the conditions laid down in that Treaty. 

Article 27. Authentic  Texts 

This  Agreement  is  drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish,  French, 
German,  Greek,  Italian,  Portuguese,  Spanish,  Swedish  and  Korean  languages,  each  text 
being equally authentic. 

In  witness  whereof  the  undersigned  Plenipotentiaries  have  signed  this  Framework 
Agreement. 

Done at ... on the ..th day of  ... in the year one thousand nine hundred and ninety-six 

FOR THE EUROPEAN COMMUNITY: 

FOR THE KINGDOM OF BELGIUM: 

FOR THE KINGDOM OF DENMARK: 

FOR THE FEDERAL REPUBLIC OF GERMANY: 

FOR THE HELLENIC REPUBLIC: 

/7 4 

EC/Korea Framework Agreement - 14/18 

FOR THE KINGDOM OF SPAIN: 

FOR THE FRENCH REPUBLIC: 

FOR IRELAND: 

FOR THE ITALIAN REPUBLIC: 

FOR THE GRAND DUCHY OF LUXEMBOURG: 

FOR THE KINGDOM OF THE NETHERLANDS: 

FOR THE REPUBLIC OF AUSTRIA: 

FOR THE PORTUGUESE REPUBLIC: 

FOR THE REPUBLIC OF FINLAND: 

FOR THE KINGDOM OF SWEDEN: 

FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: 

FOR THE REPUBLIC OFKOREA: 

rf  <C^ 

EC/Korea Framework Agreement -15/18 

Intellectual, Industrial and Commercial Property  Conventions 

ANNEX 

Berne Convention  for the Protection of Literary and Artistic Works (Paris Act,  1971) 
International  Convention  for  the  Protection  of  Performers,  Producers  of  Phonograms 
and Broadcasting Organisations (Rome,  1961) 
Paris  Convention  for  the  Protection  of  Industrial  Property  (Stockholm  Act,  1967, as 
amended in  1979) 
Patent  Cooperation Treaty (Washington,  1970, as amended  and modified  in  1984) 
Madrid  Agreement  concerning  the  International  Registration  of  Marks  (Stockholm 
Act,  1967 and amended in  1979) 
Protocol  relating  to  the  Madrid  Agreement  concerning  the  International  Registration 
of Marks (Madrid,  1989) 
Nice  Agreement  concerning the International  Classification  of Goods  and  Services  for 
the Purposes of the Registration of Marks (Geneva,  1977, and amended  in  1979) 
Budapest  Treaty  on the  International  Recognition  of  the  Deposit  of  Microorganisms 
for the Purposes of Patent Procedure (1977, modified  in 1980) 
International  Convention  for  the  Protection  of  New  Varieties  of  Plants  (UPOV) 
(Geneva Act,  1991) 

A& 

EC/Korea Framework Agreement -16718 

JOINT  DECLARATIONS 

Joint  Declaration concerning Article 7 

Each  Party  shall  allow  the  shipping  companies  of the  other  Party  to  have  their  commercial 
presence  in  its  territory  for  the  purpose  of  carrying  out  shipping  agency  activities  under 
conditions of establishment  and operation  no less favourable  than  those  accorded  to  its own 
companies or to subsidiaries or branches of companies of any third  country,  whichever  is the 
better. 

Joint  Declaration concerning Article 9 

The  Parties  agree  that  for  the  purpose  of  the  Agreement,  intellectual,  industrial  and 
commercial  property  includes  in  particular  copyright,  including  the  copyright  in  computer 
programmes,  and  neighbouring  rights,  the  rights  relating  to  patents,  industrial  designs, 
geographical  indications,  including  designations  of  origin,  trademarks  and  service  marks, 
topographies  of  integrated  circuits  as  well  as  protection  against  unfair  competition  as 
referred  to in Article  10 bis of the Paris Convention  for  the Protection  of Industrial  Property 
and protection of undisclosed information  on know-how. 

Joint  Interpretative Declaration concerning Article 23 

(a)  The  Parties  agree,  by common  consent,  for  the  purpose  of  its  correct  interpretation 
and  its  practical  application  that  the terms  'circumstances  of  special  urgency' included 
in Article 23 of the Agreement mean cases of material  breach  of the Agreement  by one 
of the Parties. A material breach of the Agreement  consists in 
repudiation of the Agreement  not sanctioned by the general  rules of international law 
or 
violation of the essential element of the Agreement  set out  in Article 1 

b. 

a. 

(b)  The  Parties  agree  that  'appropriate  measures'  referred  to  in  Article  23  are  measures 

taken in accordance with international law. 

/7 7-
' 

EC/Korea Framework Agreement -17/18 

UNILATERAL  DECLARATIONS 2 

Declaration  by the European Community concerning Article 8 

The  European  Community  expresses  its concern  with  and  attaches  great  importance  to  the 
problems  which  were created  and  are likely  to  be created  by the current  trend  of expansion 
of shipbuilding capacity in the world  market. 

In this regard  it wishes to recall  the terms of the declaration  it made in Paris on the occasion 
of  the  conclusion  of  the  negotiations  for  the  OECD  Agreement  on  Shipbuilding  on  21 
December  1994, which remains entirely valid on this point. 

The  European  Community  invites  the  Republic  of  Korea  to  cooperate  with  the  European 
Community  and  other  signatories  of  the  OECD  Agreement  on  Shipbuilding  in  order  to 
reduce  the  severe  structural  disequilibrium  between  supply  and  demand  in  the  world 
shipbuilding market by appropriate means. 

Declaration  by the Republic ofKorea  concerning Article  7 (2) 

The Republic ofKorea  declares that, regarding the provisions of paragraph  2 (a) of Article 7 
(Maritime  Transport),  it  will  allow  the  introduction  of  cargo  sharing  clauses  into  future 
bilateral agreements with a certain third country concerning dry and liquid  bulk trade, only in 
exceptional  circumstances  where  Korea  shipping  companies  could  not  otherwise  engage in 
such trade to and from such third country. 

2 

These declarations will be made on the occasion of the signature of the agreement. 

• (\ 

EC/Korea  Framework  Agreement  -  18/18 

FINANCIAL STATEMENT 

1997 Financial  year 

1. 

TITLE OF  OPERATION 

Implementation of the Framework Agreement for Trade and Cooperation between 
the EC and its Member States, on the one hand, and the Republic ofKorea on the 
other.  -  Specific  actions  in  the  field  of  economic  cooperation  and  cooperation 
activities of a general nature. These actions will take place in accordance with the 
EU Asia Strategy (COM (94) 314 final; in particular section 2.2). 

2. 

BUDGET HEADING INVOLVED 

Under the present structure of the budget, the expenditure could be charged 
against item B7-800  "Economic and commercial  cooperation agreements with 
third countries'*.  This is  subject to the outcome of the annual budget 
procedure. 

3. 

LEGAL BASIS 

Articles  113 and 235  of the EC  Treaty 

4. 

DESCRIPTION OF  OPERATION 

4.1.  General  objective 

To  promote  the  further  development  of  economic  relations  with  Korea 
under the Framework Agreement with Korea. This will in particular  cover 
fields  within the remit  of DGI  (trade cooperation, trade visits, promotion 
of contacts between economic operators, specific  cooperation  activities  of 
a  general  nature). 

4.2. 

Period covered and arrangements for renewal or extension 

The Framework Agreement will enter into force for a period of five years, 
after  which  it will be tacitly  renewable  on an annual basis. 

5. 

(XASSmC^TON OF E X P E ^ n^ 

5.1.  Compulsory/Non-compulsory expenditure 

Non-compulsory  expenditure 

5.2.  DifTerentiated/Non-differentiated  appropriations 

Differentiated  appropriation 

ÂH 

5.3.  Type of revenue involved 

Not applicable 

6. 

TYPE OF EXPENDITURE OR REVENUE 

100% grant (on an exceptional basis) 

Grant  for  cofinancing  with  other  public-  or  private-sector  sources  (in 
particular the Korean Government). 

7. 

FINANCIAL IMPACT 

7.1.  Method of calculating total cost of operation (definition of unit costs) 

The Framework Agreement will be signed in  1996, and should  therefore 
be implemented in  1997 and beyond 

The Framework Agreement  is the first-ever general  agreement with the 
Republic  of  Korea.  Specific  actions  will  therefore  have to  be  financed 
from a  new  operational  budget- allocation.  Ihe  Framework  Agreement 
provides for economic cooperation in a number of fields, e.g. science and 
technology,  industry,  standards,  environment,  energy,  culture.  Whereas 
some  of these  activities  may be  covered by  existing budget  allocations 
(e.g. cooperation funds  earmarked for the Fourth Framework Programme 
for Research and Technical Development, information budget allocated to 
DG  X7  Delegation  in  Seoul),  an  additional  allocation  estimated  at 
ECU 250 000 a year is likely to be necessary for these new cooperation 
initiatives. 

The 1997 programme for cooperation with Korea should cover some or all 
of the following activities: 

a. 

b. 

c. 

d. 

e. 

f 

meetings  of  an  EU/Korea  Forum,  the  creation  of  which  was 
proposed by the EU/Korea Wisemen's Club in its November 1995 
report, 
a  conference  aimed  at  promoting  dialogue  between  Korean 
consumer  groups and their European counterparts (in an effort  to 
influence  consumer perceptions of European products), 
a  forum  aimed  at  providing  information  on the  possibilities  for 
cooperation in the field of research and development (explanation 
of functioning  of programmes on both sides etc.), 
the organisation of sectoral business forums in sectors of common 
interest with a view to encouraging cooperation between businesses 
on  both  sides  (Korea  has  already  proposed  semiconductors  and 
consumers electronics for  1996), 
a grant for the creation of a federation of associations of European 
companies exporting to Korea (to pave the way for the creation of 
an EU/Korea Chamber of Commerce), 
the creation of an 'EU-Korea Relationship Prize' the aim of which 
would  be to  encourage  European  media to  give more and better 

information  on Korea and Korean media to give more and better 
information  on the  EU and  its  Member  States  (proposed  by  the 
EU/Korea Wisemen's Club in its November  1995 report), 
a participation in the costs of the organisation of specific trade and 
investment visits (in line with the principle of subsidiarity). 

g-

7.2. 

Itemised breakdown of cost (to the Community in ECU million) 

Breakdown 

1997 

n +1 

n •+ 5 and 
subs, yrs 

TOTAL 

EU/Korea 
Forum 

Consumer 
conference 

0.100 

0.100 

Subsidies 

0.050 

Total 

0.250 

-

7.3. 

Indicative schedule of appropriations (ECU million) 

1997 

1998 

n + 5 and 
subs, yrs 

TOTAL 

Commitment 
appropriations 

Payment 
appropriations 

1997 

1998 

0.250 

0.200 

0.050 

' 

n + 5 and subs, yrs 

TOTAL 

0.200 

0.050 

0.250 

0.200 

0.050 

0.250 

8. 

FRAUD  HŒVENTION MEASURES; RESULTS  OF MEASURES TAKEN 

If 

9. 

ELEMENTS  OF CXJST-EFFECIIVENESS ANALYSIS 

9.1. 

Specific and quantified objectives; taiget population 

EU/Korea Forum 
The  EU/Korea  Forum  would  be  a  conference  aimed  at  promoting 
cooperation  between the business, media and academic communities  on 
both sides under the aegis of the Korean Government  and the European 
Commission. Representatives of these sectors should therefore participate. 
Specific meetings for one or more of the sectors could be an appropriate 
follow-up. 

Participants should be selected with the help of Member States' authorities 
with  a view to  ensuring that  the possibilities  afforded  by  both  EC  and 
national cooperation are taken into account. 

Conference  on consumer protection 

The conference on consumer protection would promote dialogue between 
Korean  consumer  groups  and  their  European  counterparts  and  would 
provide the former with reliable information on EC legislation in this field. 
The Koreans' perception of foreign products is derived from the austerity 
campaigns of the past. With a more liberal policy in place, it is essential 
that  this  false  image  of  European  products  as  being  too  expensive, 
dangerous and of poor quality be corrected. 

9.2.  Grounds for the operation 

Implementation  of 
development of economic cooperation with Korea. 

the  first  Framework  Agreement  with  Korea: 

9.3.  Monitoring and evaluation of the operation 

The  Commission  will  carefully  assess  the  effectiveness  and  impact  of 
actions  it  organises  with  the  Korean  Government,  prior  to  deciding  on 
follow-up  action. 

10. 

ADMINISTRATIVE  EXPENDITURE (PART A  OF THE BUDGET) 

Hie  mobilization  of  tlie  administrative  resources  needed  will  depend  on  the 
Commission's  annual  decision  on the allocation  of resources  in the  light  of the 
additional staffing  and funding  accorded by the Budgetary Authority. 

<LSL 

10.1 Impact on the number of staff 

Category 

Staff assigned to manage 
the operation 

Permanent 
posts 

Temporary 
posts 

A 
B 
C 

Officials  or 
temporary  staff 

Other 
resources 

Total 

1 

1 

2 

Drawn from 

Period 

Additional 
resources 

< 

indefinite 

indefinite 

Existing 
resources of 
theDGor 
service 
concerned 
1 

1 

2 

10.2 Overall financial  impact of additional human resources 

None. 

10.3 Increase in other operating costs resulting from the operation 

Budget item 
(No and title) 
A-2510.11.01 

A-1300.11.01 

Amounts 

Method of calculation 

(ECU) 

' 

p.m. 

' 

Annual meetings of the Joint 
Committee, meeting alternately 
in Brussels and Korea, involving 
only mission expenses for 
officials 

17 000  Brussels-Seoul return tickets for 
five officials  plus daily 
allowances for five three-day 
stays in Seoul 

Total 

17000 

NB: The sums represent annual expenditure for an indefinite period. 

1-3 

ISSN 0254-1475 

COM(96) 141 final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-96-155-EN-C 

ISBN 92-78-02491-0 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg