Proposal for a Council Decision on the signing of the Cooperation Agreement on a Civil Global Navigation Satellite System (GNSS) - GALILEO between the European Community and its Member States and the People's Republic of China
Date: 2003-10-03
Institutions: European Commission
Subjects: China, EU research policy, cooperation agreement (EU), satellite navigation, scientific cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 03.10.2003
COM(2003)578 final

Proposal for a

COUNCIL DECISION

on the signing of the Cooperation Agreement on a Civil Global Navigation
Satellite System (GNSS) - GALILEO between the European Community and its
Member States and the People's Republic of China.

(presented by the Commission)

EXPLANATORY MEMORANDUM

In  January  1998,  the  Commission  presented  a  Communication  entitled  ‘Towards  a
Trans-European Positioning and Navigation Network, including a European Strategy
for  Global  Navigation  Satellite  Systems  (GNSS)1.’  This  set  out  a  strategy  for
developing  an  integrated  network  of  navigation  aids,  making  best  use  of  satellite
navigation  to  achieve  an  optimal  service  for  the  whole  of  Europe,  including  the
northernmost latitudes, at an acceptable price.

In  its  Communication  entitled  “Building  a  Comprehensive  Partnership  with  China”
which  was  endorsed  by  the  European  Council  of  Ministers  on  29  June  1998,  the
Commission  noted  that  the  EU-China  trade  dialogue  could  be  further  strengthened
through the conclusion of specific bilateral agreements in areas of particular interest.

On 10 February 1999, the Commission adopted a Communication entitled ‘GALILEO
– involving Europe in a  new  generation of Satellite Navigation  Services2.’ This sets
out a strategy for developing GALILEO, a global European component of GNSS-2 in
four  phases;  definition,  development  and  validation,  deployment  and  operational
phase. GALILEO will be independent but fully interoperable with the US GPS system
and open to cooperation with other third countries.

On  19  July  1999,  the  Council  adopted  a  Resolution  welcoming  the  Commission
Communication and inviting the Commission to explore possibilities for cooperation.

On  5  April  2001,  the  Council  adopted  a  Resolution3  in  which  it  encourages  the
continuation, under its political control, of the contacts with non-member States that
are interested in contributing to the development of GALILEO. Furthermore it called
for  active  preparations  to  be  made  for  WRC-2003  in  order  to  consolidate  the
achievements of WRC 2000 by establishing the appropriate common approach for the
GALILEO spectrum.

On 24 September 2002, the Commission adopted a Communication on GALILEO4 in
which it invited guidelines on plans for negotiations with Peoples’ Republic of China.

On  6  December  2002  the  Council  adopted  conclusions5  in  which  it  invited  the
Commission to present, taking due account of security considerations, a proposal for
negotiations directives with China.

In formal negotiations on 16 of May and 18 of September 2003 the representatives of
the  Commission  and  People’s  Republic  of  China  have  agreed  on  the  content  and
initialled the Agreement. The Special Committee of the Council has been consulted in
accordance with the negotiation directives.

1

2

3

4

5

COM(1998)29 final of 21 January 1998
COM(1999)54 final of 10 February 1999
Council Resolution on GALILEO, OJ C 157, 30 May 2001
COM(2002)518 final of 24 September 2002
Doc nr 15628/2002 of 13 Dec 2002

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Proposed decision

The Commission recommends to the Council, on the basis of Articles 133 and 170, in
conjunction with the first sentence of the first subparagraph of Article 300 (2) of the
Treaty  establishing  the  European  Community,  to  authorise  the  signature  of  the
Cooperation  Agreement  on  a  Civil  Global  Navigations  Satellite  System  (GNSS)  –
GALILEO between the European Community and its Member States and the People’s
Republic of China.

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Proposal for a

COUNCIL DECISION

on the signing of the Cooperation Agreement on a Civil Global Navigation
Satellite System (GNSS) - GALILEO between the European Community and its
Member States and the People's Republic of China.

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Articles 133 and 170, in conjunction with the first sentence of the first subparagraph
of Article 300 (2) thereof,

Whereas:

(1)

(2)

The  Commission  has  negotiated  on  behalf  of  the  Community  an  Agreement
with the People’s Republic of China

Subject to its possible conclusion at a later date, the Agreement initialled on 18
September 2003 should be signed,

HAS DECIDED AS FOLLOWS:

Sole Article

Subject to a possible conclusion at a later date, the President of the Council is hereby
authorised  to  designate  the  person  empowered  to  sign,  on  behalf  of  the  European
Community, the Cooperation  Agreement  between  the European  Community  and  the
People’s Republic of China on a Civil Global Navigation Satellite System (GNSS) –
GALILEO.

The text of the Agreement is attached to this Decision.

Done at Brussels,

For the Council
The President

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ANNEX

Co-operation Agreement on a Civil Global Navigation Satellite System (GNSS) –
GALILEO between the European Community and its Member States and the
People’s Republic of China

People’s Republic of China hereinafter also referred to as “China”, of the one part,

and

the European Community hereinafter referred to as the “Community”,

and

parties to the Treaty establishing the European Community, hereinafter referred to as
“Member States of the Community”, of the other part,

Considering the common interests in the development of a global navigation satellite
system for civil use,

Recognising  the  importance  of  GALILEO  as  a  contribution  to  navigation  and
information infrastructure in Europe and China,

Recognising the  advanced state of  China’s satellite navigation activities,  notably the
Beidou programme,

Considering the increasing development of GNSS applications in China, Europe and
other areas in the world,

Desiring to strengthen the co-operation between China and the Community

Have agreed as follows:

Article 1

Objective of the agreement

The  objective  of  the  agreement  is  to  encourage,  facilitate  and  enhance  co-operation
between  the  parties  within  European  and  Chinese  contributions  to  a  civil  global
navigation satellite system (GNSS) - GALILEO programme.

Article 2

Definitions

For the purposes of this Agreement:

a.  "Augmentation"  means  regional  or  local  mechanisms  such  as  the  European
Geostationary  Navigation  Overlay  System  (EGNOS),  or  China’s  wide  Area
Differential  Satellite  Navigation  System  (CWADSNS).  They  provide  the  users  of

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satellite-based  navigation  and  timing  signals  with  input  information,  extra  to  that
derived  from  the  main  constellation(s)  in  use,  and  additional  range/pseudo-range
inputs  or  corrections  to,  or  enhancements  of,  existing  pseudo-range  inputs.  These
mechanisms enable users to obtain enhanced performance.

b.  “Beidou”  means  a  satellite  navigation  system  including  an  augmentation  system
that is designed, developed and operated by the People’s Republic of China.

c. GALILEO local elements are local mechanisms that provide the users of GALILEO
satellite-based  navigation  and  timing  signals  with  input  information,  extra  to  that
derived  from  the  main  constellation  in  use.  Local  elements  may  be  deployed  for
additional performance around airports, seaports and in urban or other geographically
challenging environments. GALILEO will provide generic models for local elements.

d. "GALILEO" means  an autonomous civil European  global satellite navigation and
timing  system  under  civil  control,  for  the  provision  of  GNSS  services  designed  and
developed  by  the  Community  and  its  Member  States.  The  operation  of  GALILEO
may be transferred to a private party. GALILEO envisages one or more services for
open, commercial and safety of life purposes.

e.  "Global  navigation,  positioning  and  timing  equipment"  means  any  civil  end  user
equipment  designed  to  transmit,  receive,  or  process  satellite-based  navigation  or
timing signals to provide a service, or to operate with a regional augmentation.

f.  "Regulatory  measure"  means  any  law,  regulation,  rule,  procedure,  decision,
administrative action or similar action by a Party.

g. “Interoperability” means at user level a situation where a dual-system receiver can
use signals from two systems together for equal or better performance than by using
only one system.

i. "Intellectual property" shall have the meaning found in Article 2 of the Convention
Establishing  the  World  Intellectual  Property  Organisation,  done  at  Stockholm,  July
14, 1967.

j. “Liability” means the legal accountability of a person or legal entity to compensate
for damage caused to another person or legal entity in accordance with specific legal
principles and rules. This obligation may be prescribed in an agreement  (contractual
liability) or in a legal norm (non-contractual liability).

Article 3

Principles of the co-operation

The parties agreed to apply the following principles to co-operation activities covered
by this agreement:

a)  Mutual  benefit  based  on  an  overall  balance  of  rights  and  obligations  including
contributions,

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b)  Partnership  in  the  GALILEO  Programme  in  accordance  with  the  procedures  and
rules governing the management of GALILEO,

c)  Reciprocal  opportunities  to  engage  in  co-operative  activities  in  European  and
Chinese GNSS projects,

d) Timely exchange of information that may affect co-operative activities,

e) Appropriate protection of intellectual property rights,

Article 4

Scope of co-operation activities

1.  The  sectors  for  co-operative  activities  in  satellite  navigation  and  timing  are:
scientific research, industrial manufacturing, training, application, service and market
development,  trade,  radio-spectrum  issues,  integrity  issues,  standardisation  and
certification and security. The Parties may adapt the list in paragraph 1 by decision by
the Joint Steering Committee established under Article 14 of this Agreement.

2. Extending cooperation, if requested by the Parties to GALILEO Public Regulated
Service,  system  security  features  (definition,  management,  use)  and  critical  control
features  of  the  GALILEO  global  segment  as  well  as  exchange  of  classified
GALILEO-information, would be subject to an appropriate separate agreement to be
concluded between European Union and China.

3. This Agreement shall not affect the application of the Council Regulation (EC) N°
876/2002 of 21 May 2002 on  the establishment  of the  GALILEO Joint  Undertaking
and  the  institutional  structure  established  by  it  or  any  other  Regulation  or  rule
establishing  a  successor  entity  to  the  GALILEO  Joint  Undertaking.  Nor  does  this
Agreement  affect  the  applicable  laws,  regulations  and  policies  implementing  non-
proliferation  commitments  and  export  control  for  dual-use  items  and  national
domestic  measures  regarding  security  and  controls  of  intangible  transfers  of
technology.

Article 5

Forms of co-operation activities

1.  Subject  to  their  applicable  laws  and  regulations,  the  Parties  shall  foster,  to  the
fullest extent practicable, the co-operative activities under this Agreement with a view
to providing comparable opportunities for participation in their activities in the sectors
listed under Article 4.

2. The Parties agree to conduct co-operative activities as follows:

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Article 6

Scientific research

The  parties  shall  promote  joint  research  activities  in  the  field  of  GNSS  through
European  and  Chinese  research  programs  including  the  European  Community
Framework  Program  for  Research  and  Development,  and  the  research  programs  of
European Space Agency, and the Ministry of Science and Technology of China.

The joint research activities should contribute to planning the future developments of
a GNSS for civil use.

Training  activities  shall  be  co-ordinated  through  the  China-Europe  GNSS  Technical
Training and Co-operation Centre established in Beijing.

Article 7

Radio spectrum

International
1.  Building  on  past 
Telecommunication  Union,  the  Parties  agree  to  continue  co-operation  and  mutual
support in radio-spectrum issues.

framework  of 

successes 

the 

the 

in 

2.  In  this  context  the  Parties  shall  exchange  information  on  frequency  filings  and
promote adequate frequency allocations for GALILEO and Beidou in order to ensure
the  availability  of  their  services  for  the  benefit  of  users  world-wide  and  notably  in
China and in the Community.

3. Moreover, the Parties recognise the importance to protect radionavigation spectrum
from  disruption  and  interference.  To  this  end  they  shall  identify  sources  of
interference and seek mutually acceptable solutions to combat such interference.

4. The Parties agree to task the Committee under Article 14 to define the appropriate
mechanism in order to ensure effective contacts and collaboration in this sector.

Article 8

Industrial co-operation

1.  The  parties  encourage  and  support  the  co-operation  between  the  industries  of  the
two sides, including by the means of joint ventures with the objective of setting up of
the  GALILEO  system  as  well  as  promoting  the  use  and  development  of  GALILEO
applications and services.

2.  The  parties  will  establish  a  joint  advisory  group  on  industrial  co-operation  under
the Steering Committee set up under Article 14 in order to investigate and guide the
co-operation on satellite manufacturing, launch services, ground station building, and
application products.

3. To facilitate industrial co-operation the Parties shall protect intellectual property in
accordance to the relevant international standards.

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4.  Exports  by  China  to  third  countries  of  sensitive  items  related  to  the  GALILEO
programme  will  have  to  be  submitted  for  prior  authorisation  by  the  competent
GALILEO  security  authority,  if  the  authority  has  recommended  to  the  EU  Member
States that these items be subject to export authorisation.

5.  The  Parties  encourage  reinforced  links  between  Ministry  of  Science  and
Technology of China, the Chinese National Space Administration, and the European
Space Agency to contribute to the objectives of the Agreement.

Article 9

Trade and market development

1.  The  parties  encourage  trade  and  investment  in  European  and  Chinese  satellite
navigation infrastructure, equipment, GALILEO local elements and applications.

2.  To  this  end  the  Parties  shall  raise  awareness  of  the  public  on  GALILEO  satellite
navigation technology, identify potential barriers to growth in GNSS applications and
take appropriate measures to facilitate this growth.

3. To identify and respond effectively to user needs the Community and China shall
consider establishing a joint GNSS user forum.

4.  This  agreement  will  not  affect  the  rights  and  obligations  of  the  Parties  under  the
World Trade Organisation, relevant export control rules, Council Regulation (EC) n°
1334/2000 and its subsequent amendments, the Council Joint Action 2000/401/CFSP
and other relevant international instruments such as the Hague International Code Of
Conduct  on  Ballistic  Missiles  and  other  relevant  EU  Member  States  and  Chinese
legislation.

Article 10

Standards, Certification and Regulatory Measures

1.  The  Parties  recognise  the  value  of  co-ordinating  approaches  in  international
standardisation  and  certification  fora  concerning  global  satellite  navigation  services.
In particular the Parties will jointly support the development of GALILEO standards
and promote their application world-wide.

One  objective  of  the  co-ordination  is  to  promote  broad  and  innovative  use  of  the
GALILEO services for open, commercial and safety of life purposes as a world-wide
navigation and timing standard. The Parties agree to create favourable conditions for
developing GALILEO applications.

2.  Consequently,  to  promote  and  implement  the  objectives  of  this  Agreement,  the
Parties shall, as appropriate, cooperate on all satellite navigation  related  matters that
arise  in  the  International  Civil  Aviation  Organisation,  the  International  Maritime
Organisation and the International Telecommunications Union.

3.  At  bilateral  level  the  Parties  shall  ensure  that  measures  relating  to  technical
standards,  certification  and  licensing  requirements  and  procedures  do  not  constitute

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unnecessary barriers to trade. Domestic requirements shall be based on objective, non-
discriminatory, pre-established transparent criteria.

4. At expert level the parties intend to  organise co-operation and  exchanges through
the  Committee  under  Article  14  on  standards  covering  codes,  navigation,  ground
receiver  equipment  and  navigation  application  security.  Moreover,  the  Parties  shall
promote  the  participation  of  Chinese  representatives  in  European  standardisation
organisations.

Article 11

Development of global and regional GNSS systems

1.  Interoperability  of  global  and  regional  satellite  navigation  systems  enhances  the
quality  of  services  available  to  users.  The  Parties  shall  collaborate  to  define  and
implement system architectures allowing an optimal guarantee of GALILEO integrity
and continuity of GALILEO services.

2.  At  the  regional  level  the  Parties  shall  cooperate  on  building  a  regional
augmentations system based on GALILEO system in China. Such a regional system is
foreseen  to  provide  regional  integrity  services  additional  to  those  provided  by  the
GALILEO system globally.

At local level the Parties shall facilitate the development of GALILEO local elements.

Article 12

Security

1.  The  Parties  are  convinced  of  the  need  to  protect  Global  Navigation  Satellite
Systems against misuse, interference, disruption and hostile acts.

2. The Parties shall take all practicable steps to ensure the continuity and safety of the
satellite navigation services and the related infrastructure in their territories.

3. The parties recognise that cooperation to ensure security of the GALILEO system
and services are important common objectives.

4.  Hence  the  parties  shall  establish  an  appropriate  consultation  channel  to  address
GNSS  security  issues.  This  channel  shall  be  used  to  ensure  the  continuity  of  the
GNSS services.

The practical arrangements and procedures are to be defined  between  the  competent
security authorities of both parties.

Article 13

Liability and cost recovery

The Parties will cooperate, as appropriate, to define and implement a liability regime
and  cost  recovery  arrangements  in  order  to  facilitate  the  provision  of  civil  GNSS
services.

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Article 14

Co-operative mechanism

1. The co-ordination and  facilitation  of  co-operative  activities  under  this  Agreement
shall be accomplished on behalf of China, by the Ministry of Science and Technology
and, on behalf of the Community, by the European Commission.

2.  In  accordance  with  the  objective  in  Article  1  these  two  entities  shall  establish  a
GNSS  Steering  Committee  hereinafter  referred  to  as  the  “Committee”  for  the
management  of 
this  Agreement.  This  Committee  shall  consist  of  official
representatives of each Party and it shall establish its own rules of procedure

The functions of the Steering Committee shall include:

a) Promoting, making recommendations to and overseeing the different co-operative
activities as mentioned in Articles 4 to 12 of the agreement;

b) Advising the Parties on ways to enhance and improve co-operation consistent with
the principles set out in this Agreement;

c) Reviewing the efficient functioning and implementation of this Agreement;

3. The Committee shall, as a general rule, meet annually. The meetings should be held
alternatively  in  the  Community  and  in  China.  Extraordinary  meetings  may  be
organised at the request of either Party.

The  costs  incurred  by  the  Committee  or  in  its  name  shall  be  borne  by  the  Party  to
whom  members  relate.  The  costs  other  than  those  for  travel  and  accommodation
which are  directly associated  with meetings  of  the Committee  shall  be  borne  by  the
host Party. The Committee  may  set  up  Joint  Technical  Working  Groups  on  specific
subjects where the Parties consider it appropriate.

4.  The  Parties  welcome  the  participation  of  a  relevant  Chinese  entity  in  the  Joint
Undertaking (JU) according to the procedure laid out in Council Regulation (EC) n°
876/2002 of 21 May 2002.

Article 15

Exchange of information

1. The Parties shall establish administrative arrangements and enquiry points in order
to provide for these consultations and the effective implementation of the provisions
of this Agreement.

2. The China-Europe GNSS Training and Technical Co-operation Centre established
in  Beijing  shall  contribute  to  preparing  and  distributing  information  on  satellite
navigation  activities  to  industry  representatives,  scientists,  journalists  and  the  public
in China and the Community.

3.  The  parties  encourage  further  information  exchanges  concerning  satellite
navigation among the institutions and enterprises of the two sides.

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Article 16

Funding

1. China shall provide a financial contribution to the GALILEO Program through the
GALILEO Joint Undertaking. The amount and arrangements of the contribution will
be  subject  to  a  separate  agreement  and  in  accordance  with  the  institutional
arrangements of Council Regulation (EC) No 876/2002 or any subsequent regulation.

2. When specific co-operative schemes of one Party  provide  for  financial support to
participants  from  the  other  Party,  any  such  grants,  financial  or  other  contributions
from one Party to the participants of the other Party in support of those activities shall
be  granted  tax  and  customs  exemption  in  accordance  with  the  laws  and  regulations
applicable in the territories of each Party.

Article 17

Consultation and dispute resolution

1. The Parties shall promptly consult, at the request of any of them, on any question
arising  out  of  the  interpretation  or  application  of  this  Agreement.  Any  disputes
concerning  the  interpretation  or  application  of  this  agreement  shall  be  settled  by
friendly consultations between the Parties.

2. Paragraph 1 shall not prevent the Parties from having recourse to dispute settlement
under the WTO Agreement.

Article 18

Entry into force and termination

1.  This  Agreement  shall,  after  its  signature  by  the  Parties,  enter  into  force  upon  the
date  on  which  the  Parties  have  notified  each  other  that  their  respective  internal
procedures necessary for its entry into force have been completed.

2.  The  termination  of  this  agreement  shall  not  affect  the  validity  or  duration  of  any
arrangements made under it or any specific rights and obligations that have accrued in
the field of intellectual property rights.

3.  This  Agreement  may  be  amended  by  mutual  agreement  of  the  parties  in  writing.
Any  amendment  shall  enter  into  force  on  the  date  on  which  the  Parties  exchange
diplomatic  notes  informing  each  other  that  their  respective  internal  procedures
necessary for its entry into force have been completed.

4. This Agreement shall remain in force for a period of five years from the date of its
entry into force.  Thereafter, it shall be extended automatically for further  periods  of
five  years  each.  Either  Party  may,  by  giving  three  months'  notice  to  the  other  in
writing, terminate this Agreement.

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This  Agreement  is  drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish,
French,  German,  Greek,  Italian,  Portuguese,  Spanish,  Swedish  and  Chinese
languages.

English and Chinese shall be the authentic languages.

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