Proposal for a Council Decision on the conclusion 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, ratification of an agreement, services contract, trade cooperation

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.4.2008 
COM(2008) 220 final 

2008/0087 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion 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 its present obligations 
under the GATS and the PCA. The Agreement was initialled on 18 February 2008 and signed 
on behalf of the Community on […]. Pending completion of the procedures for its conclusion, 
it  was  provisionally  applied  since  […].  The  Council  should  therefore  adopt  the  attached 
proposal. 

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2008/0087 (COD) 

Proposal for a 

COUNCIL DECISION 

on the conclusion 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 subparagraph of Article 300(3) thereof  

Having regard to the proposal from the Commission, 

Having regard to the Opinion of the European Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

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 was signed on behalf of the European Community on […] and applied 
on a provisional basis since […], subject to its subsequent conclusion. 

The necessary institutional procedures have been completed and the Agreement should 
therefore be approved, 

1 

Opinion delivered on […] (OJ C …) 

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HAS DECIDED AS FOLLOWS: 

Article 1 

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. 

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

The  President  of  the  Council  shall  inform  Ukraine  of  the  conclusion  of  this  Agreement  on 
behalf of the Community.2

Article 2 

Article 3 

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

Done at Brussels, 

For the Council 
The President 

2 

The date of entry into force of the Agreement will be published in the Official Journal of the European 
Union. 

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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 conclusion 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 

Revenue3

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] 

3 

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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