Proposal for a Council Decision on the signature and provisional application of the agreement in the form of an exchange of letters between the European Community and Ukraine in relation to preservation of commitments on trade in services contained in the partnership and cooperation agreement
Date: 2008-04-28
Institutions: European Commission
Subjects: Ukraine, cooperation agreement (EU), exchange of information, negotiation of an agreement (EU), services contract, signature of an agreement, trade cooperation

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.4.2008 
COM(2008) 222 final 

Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Agreement in the form of an 
Exchange of Letters between the European Community and Ukraine in relation to 
preservation of commitments on trade in services contained in the Partnership and 
Cooperation Agreement 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

According  to  Article  44  of  the  Partnership  and  Co-operation  Agreement  between  the 
European  Communities  and 
their  Member  States,  and  Ukraine  (hereafter  “PCA”), 
commitments  undertaken  under  the  GATS  in  the  context  of  Ukraine's  WTO  accession  will 
automatically supersede the commitments on trade in services contained in the PCA. 

In  the  context  of  its  process  of  accession  to  the  WTO  Ukraine  has  offered  GATS 
commitments which substantially cover the commitments of Ukraine under the PCA, except 
for Article 39, paragraph 3, thereof. Ukraine, however, offered to preserve this provision of 
the PCA through a bilateral agreement outside the WTO context. 

In  order  to  formalise  this  agreement,  on  23  April  2007  the  General  Affairs  and  External 
Relations  Council  adopted  negotiating  directives  authorising  the  Commission  to  negotiate  a 
binding  international  agreement  in  the  context  of  the  PCA  in  the  form  of  an  Exchange  of 
Letters  with  Ukraine  to  preserve  commitments  on  trade  in  services  contained  in  the 
Partnership  and  Cooperation  Agreement  with  Ukraine  once  this  country  has  acceded  to  the 
WTO. 

Agreement  has  been  reached  on  the  text  of  the  formal  exchange  of  letters.  The  Agreement 
does not require the EC to undertake any commitments going beyond their present obligations 
under the GATS and the PCA. The Agreement was initialled on 18 February 2008. 

Therefore, the Commission proposes that the Council consults the European Parliament on the 
negotiated Agreement and, pending completion of the institutional procedures for conclusion 
of the Agreement, adopts the attached proposal. 

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Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Agreement in the form of an 
Exchange of Letters between the European Community and Ukraine in relation to 
preservation of commitments on trade in services contained in the Partnership and 
Cooperation Agreement 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
71(1)  and  80(2)  thereof  in  conjunction  with  the  first  sentence  of  the  first  subparagraph  of 
Article 300(2) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

On  14  June  1994  the  European  Communities  and  its  Member  States  and  Ukraine 
signed  in  Luxembourg  the  Partnership  and  Co-operation  Agreement  (PCA),  which 
entered into force on 1 March 1998. 

According to Article 44 of the PCA, commitments undertaken under the GATS in the 
context of Ukraine's WTO accession will automatically supersede the commitments on 
trade in services contained in the PCA. 

Article 39, paragraph 3, of the PCA is not reflected in the GATS commitments offered 
by Ukraine in the context of its accession to the WTO and shall therefore be preserved 
on a bilateral basis. 

On  the  basis  of  an  authorisation  given  by  the  Council  on  23  April  2007,  the 
Commission has negotiated on behalf of the Community an agreement in the form of 
an  Exchange  of  Letters  between  the  European  Community  and  Ukraine  preserving 
Article 39, paragraph 3 of the PCA, which was initialled on 18 February 2008. 

The Agreement does not require the EC to undertake any commitments going beyond 
its present obligations under the GATS and the PCA. 

The Agreement should be signed on behalf of the European Community and applied 
on a provisional basis pending its conclusion at a later date. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

The  signing  of  the  Agreement,  in  the  framework  of  the  Partnership  and  Co-operation 
Agreement and in the form of an Exchange of Letters between the European Community and 
Ukraine  with  a  view  to  preserve  commitments  on  trade  in  services  contained  in  the 
Partnership and Co-operation Agreement with Ukraine once this country has acceded to the 
WTO  is  hereby  approved  on  behalf  of  the  Community,  subject  to  the  Council  Decision 
concerning the conclusion of the said Agreement. 

The text of the Agreement in the form of an Exchange of letters is attached hereto. 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement on behalf of the Community subject to its conclusion. 

Article 2 

Article 3 

The Agreement shall be applied on a provisional basis pending completion of the procedures 
for  conclusion.  The  Commission  will  publish  a  notice  providing  information  on  the  date  of 
provisional application. 

Article 4 

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

Done at Brussels, 

For the Council 
The President 

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ANNEX  

AGREEMENT IN THE FORM OF 

EXCHANGE OF LETTERS 

between the European Community and Ukraine in relation to preservation of commitments on 
trade in services contained in the Partnership and Co-operation Agreement 

A. Letter from Ukraine 

Dear Sir, 

In  connection  with  the  signing  on  17th  March  2003  of  the  EC-Ukraine  bilateral  deal  for  the 
accession of Ukraine to the WTO and as part of that deal, the delegations of the EC and of 
Ukraine  agreed  to  preserve  the  provisions  on  international  maritime  transport  of  the 
Partnership and Co-operation Agreement between the European Communities and its Member 
States,  of  the  one  part,  and  Ukraine,  of  the  other  part,  signed  on  14th  June  1994  in 
Luxembourg. This agreement shall be drafted as follows: 

THE EUROPEAN COMMUNITY AND UKRAINE 

HAVING REGARD TO article 5 of the Partnership and Co-operation Agreement between the 
European Communities and its Member States, of the one part, and Ukraine of the other part, 
signed on 14th June 1994 in Luxembourg (hereafter “the PCA”); 

CONSIDERING the commitment of the Parties to liberalize trade, based on the principles of 
the WTO Agreement and the Multilateral Trade Agreements annexed thereto; 

CONSCIOUS  of  the  need  to  improve  conditions  affecting  trade  in  services  between  the 
Parties, based on reciprocity; 

TAKING INTO ACCOUNT the situation arising from Ukraine’s accession to the WTO and 
its impact on the provisions of the PCA on business and investment; 

HAVE DECIDED AS FOLLOWS, 

Sole Article 

International maritime transport 

Notwithstanding the provisions of Article 44 of the PCA, after the accession of Ukraine to the 
WTO, the following provisions of the PCA will continue to apply between the Parties: 

– 

Article 39 paragraph 3, in conjunction with article 32 (g), in the field of international 
maritime transport. 

I  would  be  grateful  if  you  would  confirm  that  the  EC  approves  this  text  and  send  me  your 
reply  signed  by  the  competent  authority  of  the  European  Community.  I  have  the  honour  to 
propose  that  this  letter  and  your  confirmation  in  reply  constitute  an  agreement  between 
competent  authorities  to  be  treated  as  an  integral  part  of  the  Partnership  and  Co-operation 

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Agreement signed on 14th June 1994 in Luxembourg. This agreement shall not be affected by 
the  eventual  expiration  of  the  Partnership  and  Co-operation  Agreement,  pursuant  to  Article 
101 thereof. 

Please accept, Sir, the assurance of my highest consideration. 

[On behalf of Ukraine] 

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B. Letter from the European Community 

Dear Sir, 

Thank you for your letter of ________________, which reads as follows: 

"Dear Sir, 

In  connection  with  the  signing  on  17th  March  2003  of  the  EC-Ukraine  bilateral  deal  for  the 
accession of Ukraine to the WTO and as part of that deal, the delegations of the EC and of 
Ukraine  agreed  to  preserve  the  provisions  on  international  maritime  transport  of  the 
Partnership and Cooperation Agreement between the European Communities and its Member 
States,  of  the  one  part,  and  Ukraine,  of  the  other  part,  signed  on  14th  June  1994  in 
Luxembourg. This agreement shall be drafted as follows: 

THE EUROPEAN COMMUNITY AND UKRAINE 

HAVING REGARD TO article 5 of the Partnership and Co-operation Agreement between the 
European Communities and its Member States, of the one part, and Ukraine of the other part, 
signed on 14th June 1994 in Luxembourg (hereafter “the PCA”); 

CONSIDERING the commitment of the Parties to liberalize trade, based on the principles of 
the WTO Agreement and the Multilateral Trade Agreements annexed thereto; 

CONSCIOUS  of  the  need  to  improve  conditions  affecting  trade  in  services  between  the 
Parties, based on reciprocity; 

TAKING INTO ACCOUNT the situation arising from Ukraine’s accession to the WTO and 
its impact on the provisions of the PCA on business and investment; 

HAVE DECIDED AS FOLLOWS, 

Sole Article 

International maritime transport 

Notwithstanding the provisions of Article 44 of the PCA, after the accession of Ukraine to the 
WTO, the following provisions of the PCA will continue to apply between the Parties: 

– 

Article 39 paragraph 3, in conjunction with article 32 (g), in the field of international 
maritime transport. 

I  would  be  grateful  if  you  would  confirm  that  the  EC  approves  this  text  and  send  me  your 
reply  signed  by  the  competent  authority  of  the  European  Community.  I  have  the  honour  to 
propose  that  this  letter  and  your  confirmation  in  reply  constitute  an  agreement  between 
competent  authorities  to  be  treated  as  an  integral  part  of  the  Partnership  and  Co-operation 
Agreement signed on 14th June 1994 in Luxembourg. This agreement shall not be affected by 
the  eventual  expiration  of  the  Partnership  and  Co-operation  Agreement,  pursuant  to  Article 
101 thereof. 

Please accept, Sir, the assurance of my highest consideration." 

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I confirm that the above-quoted letter and my reply will establish a formal agreement between 
the European Community and Ukraine. 

Please accept, Sir, the assurance of my highest consideration. 

[On behalf of the European Community] 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL :  

Council Decision on the signature and provisional application of the Agreement in the form of 
an Exchange of Letters between the European Community and Ukraine in relation to 
preservation of commitments on trade in services contained in the Partnership and 
Cooperation Agreement 

2. 

BUDGET LINES : 

Chapter and Article : 120 

Amount budgeted for the year concerned (2008): 16.431.900.000 euro 

3. 

FINANCIAL IMPACT:  

(cid:59) 

(cid:133) 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 
revenue – the effect is as follows: 

(€ million to one decimal place) 

Budget 
line 

Revenue1

12 month period, 
starting 
dd/mm/aaaa 

[Year n] 

Article … 

Impact on own resources 

Article … 

Impact on own resources 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

1 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs 

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Article…  

Article… 

4. 

5. 

ANTI-FRAUD MEASURES 

OTHER REMARKS 

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