Proposal for a Council Decision concerning the notification to the Republic of Korea of the withdrawal of the European Community from the Agreement on telecommunications procurement between the European Community and the Republic of Korea
Date: 2004-04-27
Institutions: European Commission
Subjects: South Korea, agreement (EU), liberalisation of the market, public contract, telecommunications

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.04.2004 
COM(2004) 315 final 

2004/0107 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the notification to the Republic of Korea of the withdrawal of the European 
Community from the Agreement on telecommunications procurement between the 
European Community and the Republic of Korea 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

The Agreement on telecommunications procurement between the European Community and 
the Republic of Korea signed in Brussels and Korea on 29 October 19971 and in force since 
1 November  1997  provides  transparent  and  non-discriminatory  reciprocal  access  to  the 
procurement  contracts  of  certain  named  telecommunications  operators  (TOs).  In  accordance 
with its provisions, upon liberalisation of the European telecommunications market, European 
TOs are no longer subject to the agreement, as they have been excluded from the procurement 
regime.  

Representatives of the Korean Government requested in 2002 to exclude KT (Korea Telecom) 
from  the  scope  of  the  EC  –  Korea  Agreement  on  Telecommunications  Procurement.  This 
request was the consequence of the privatisation process and the Korean claim that a similar 
level of liberalisation to the EC has been achieved and that KT should not remain subject to 
the agreement. 

The  Korean  Mission  in  Brussels  has  recently  confirmed  that  they  are  urgently  seeking  the 
termination of the bilateral agreement, preferably on the basis of mutual consent, alternatively 
on a unilateral basis.  

Furthermore, the Korean Government requested the withdrawal of KT from the list of entities 
covered  by  the  WTO  Agreement  on  Government  Procurement  (GPA).  Although  the  EC 
initially  objected  to  this  request,  the  EC  finally  withdrew  its  objection  in  September  2003, 
accepting de facto that the degree of liberalisation and competition as well as the absence of 
government  control  or  influence  was  sufficient  to  agree  to  the  withdrawal  of  KT  from  the 
GPA.  

EU industry, represented by the main telecommunications suppliers based in Korea have been 
consulted  on  the  expiry  of  the  EC-Korea  Telecommunications  Procurement  Agreement  and 
welcome a dialogue on Information Technology (IT) as suggested by Korea. 

The Korean side has indicated that they would like to keep a dialogue with the EC and set up 
a  Korea-EU  IT  dialogue.  This  could  possibly  be  done  in  the  context  of  the  EU-Korea 
Framework Agreement. 

The  Commission  should  therefore  consider  that  maintaining  the  bilateral  agreement  is  not 
justified  and  the  EC  should  respond  positively  to  the  Korean  request  to  terminate  the 
Agreement. 

The Commission therefore is hereby requested to adopt this proposal for a Council Decision 
to be submitted to the Council which would allow the notification of the unilateral withdrawal 
from  the  bilateral  agreement.  This  procedure  contained  in  the  agreement  itself  is  the  most 
appropriate  way  to  withdraw  from  the  agreement.  Considering  that  Korea  requested  first  to 
terminate  the  Agreement  by  mutual  consent  and  expressed  the  desire  to  avoid  unilateral 
withdrawal, it seems more appropriate for the Commission to respond to the Korean request 
through the mechanism settled in the Agreement while inviting the Government of Korea to 
exchange a similar notification.  

1 

OJ L 321, 22.11.1997 p. 32. 

2 

 
 
  
 
                                                 
2004/0107 (ACC) 

Proposal for a 

COUNCIL DECISION 

concerning the notification to the Republic of Korea of the withdrawal of the European 
Community from the Agreement on telecommunications procurement between the 
European Community and the Republic of Korea 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133 in conjunction with the first sentence of Article 300 thereof, 

Having  regard  to  paragraph  5  of  Article  8  of  the  Agreement  on  telecommunications 
procurement  between  the  European  Community  and  the  Republic  of  Korea2  as  adopted  by 
Council Decision 97/784/EC of 22 April 19973, 

Having regard to the proposal from the Commission,4 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Pursuant  to  paragraph  5  of  Article  8  of  the  Agreement  on  telecommunications 
procurement  between  the  European  Community  and  the  Republic  of  Korea  either 
Party may withdraw from the Agreement by notifying the other party. 

telecommunications  procurement  between 

the  European 
The  Agreement  on 
Community  and  the  Republic  of  Korea,  has,  with  the  withdrawal  of  the  Community 
telecommunications  operators,  the  liberalisation  of  the  Korean  telecommunications 
market and the privatisation of Korea Telecom become devoid of purpose. 

The  Republic  of  Korea  also  considers  that  the  Agreement  on  telecommunications 
procurement  between  the  European  Community  and  the  Republic  of  Korea  has 
become devoid of purpose. 

It is appropriate that the European Community should withdraw from the Agreement 
on  telecommunications  procurement  between  the  European  Community  and  the 
Republic of Korea. 

The  Council  should  authorise  the  Commission  to  notify  the  withdrawal  from  the 
Agreement. 

2 
3 
4 

OJ L 321, 22.11.1997 p. 32. 
OJ L 321, 22.11.1997 p. 30. 
OJ C […] […], p. […] 

3 

 
 
  
 
                                                 
(6) 

The  Agreement  in  the  form  of  a  memorandum  of  understanding  concerning  the 
the  European 
procurement  of  private 
Community and the Republic of Korea5 should be maintained, 

telecommunications  operators  between 

HAS DECIDED AS FOLLOWS: 

The  European  Community  hereby  withdraws  from  the  Agreement  on  telecommunications 
procurement between the European Community and the Republic of Korea. 

Article 1 

Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person  empowered  to 
notify the Republic of Korea. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

5 

OJ L 321, 22.11.1997 p. 41. 

4