Proposal for a COUNCIL DECISION on the position to be taken by the European Union within the Trade Committee set up by the Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part, as regards the adoption of the rules of procedures of the Trade Committee and the establishment of a list of 15 individuals to serve as arbitrators
Date: 2011-09-28
Institutions: European Commission
Subjects: South Korea, appointment of members, free-trade agreement, rules of procedure

EUROPEAN COMMISSION 

Brussels, 28.9.2011 
COM(2011) 592 final 

2011/0253 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the European Union within the Trade Committee set up 
by the Free Trade Agreement between the European Union and its Member States, of 
the one part, and the Republic of Korea, of the other part, as regards the adoption of the 
rules of procedures of the Trade Committee and the establishment of a list of 15 
individuals to serve as arbitrators 

 
 
  
 
EXPLANATORY MEMORANDUM 

The Free Trade  Agreement between  the European Union and its Member States, of  the one 
part, and the Republic of Korea, of the other part (hereinafter referred to as "Agreement") was 
signed on 6 October 2010, and it is provisionally applied as of 1 July 2011. 

Article 15.1 of the Agreement establishes a Trade Committee and sets out its main tasks and 
functions.  Article  15.1.4(f)  of  the  Agreement  specifies  that  the  Trade  Committee  may 
establish  its  own  Rules  of  Procedure.  In  the  light  of  the  need  to  swiftly  initiate  the 
implementation of the Agreement, the Rules of Procedure of the Trade Committee are to be 
adopted  at  one  of  the  first  meetings  of  the  Trade  Committee.  The  first  such  meeting  is 
scheduled  to  take  place  on  12  October  2011  in  Seoul.  At  a  later  stage,  detailed  rules  of 
procedure for the Specialised Committees and Working Groups will follow. 

Article  14.18  of  the  Agreement  requires  the  Trade  Committee  to  establish  a  list  of  15 
individuals to serve as arbitrators within six months from the entry into force or provisional 
application  of  the  Agreement.  In  case  of  a  dispute,  the  parties  will  consult  with  a  view  to 
agreeing on the arbitrators who would sit on an arbitration panel (if the parties cannot agree 
on the composition of the panel, the arbitrators will be selected by lot from the roster). The 
establishment  of  the  roster  is  therefore  important  in  ensuring  that  the  dispute  settlement 
procedure under the Agreement is effectively available.  

The attached proposal constitutes the proposal for a legal  instrument approving the position 
that the European Union will be taking in the Trade Committee on the above mentioned two 
issues. 

EN 

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2011/0253 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the European Union within the Trade Committee set up 
by the Free Trade Agreement between the European Union and its Member States, of 
the one part, and the Republic of Korea, of the other part, as regards the adoption of the 
rules of procedures of the Trade Committee and the establishment of a list of 15 
individuals to serve as arbitrators 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 91 and 100(2) and the first subparagraph of Article 207(4) in conjunction with Article 
218(9) thereof, 

Having regard to the proposal from the European Commission1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

On  23  April  2007  the  Council  authorised  the  Commission  to  negotiate  a  free  trade 
agreement  with  the  Republic  of  Korea  on  behalf  of  the  European  Union  and  its 
Member States. 

These  negotiations  have  been  concluded  and  the  Free  Trade  Agreement  between  the 
European Union and its Member States, of the one part, and the Republic of Korea, of 
the other part, ("the Agreement")2 was signed on 6 October 2010. 

Pursuant  to  Article  15.10.5  of  the  Agreement,  the  Agreement  has  been  provisionally 
applied since 1 July 2011 subject to its conclusion at a later date. 

Article 15.1 of the Agreement establishes a Trade Committee, which shall, among its 
tasks ensure that the Agreement operates properly.  

Article  15.1.4(f)  of  the  Agreement  provides  that  the  Trade  Committee  may  adopt  its 
own rules of procedures. 

Article 14.18 of the Agreement stipulates that the Trade Committee shall, no later than 
six months after the entry into force of the Agreement or  its  provisional application, 
establish a list of 15 individuals to serve as arbitrators.  

1 
2 

OJ C xx, xx.xx.xxxx, p. x. 
OJ L 127, 14.5.2011, p.6 

EN 

3 

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(7) 

The  Union  should  determine  the  position  to  be  taken  as  regards  the  adoption  of  the 
Rules  of  Procedure  of  the  Trade  Committee  and  the  establishment  of  the  list  of  15 
individuals to serve as arbitrators, 

HAS ADOPTED THIS DECISION:  

Article 1 

The position to be taken by the European Union in the Trade Committee, set up by the Free 
Trade Agreement between the European Union and its Member States, of the one part, and the 
Republic of Korea, of the other part, as regards the adoption of the Rules of Procedure of the 
Trade  Committee  and  the  establishment  of  the  list  of  15  individuals  to  serve  as  arbitrators 
shall be based on the draft decisions of the Trade Committee attached to this Decision.  

Article 2 

The  delegation  of  the  EU  Party to  the  Trade  Committee  shall  be  composed,  in  accordance 
with the division of competences established pursuant to the Treaty, of representatives of the 
Commission and of the Member States, acting within their respective areas of competence as 
derived from the Treaties. 

Article 3 

This Decision shall enter into force on the date of its adoption. 

Done at Brussels, […] 

For the Council 
The President 

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DECISION No […] OF THE EU-KOREA TRADE COMMITTEE 

ANNEX I 

of […] 

on the adoption of the rules of procedure of the Trade Committee 

THE TRADE COMMITTEE,  

Having  regard  to  the  Free  Trade  Agreement  between  the  European  Union  and  its  Member 
States, of the one part, and the Republic of Korea, of the other part ("the Agreement"), signed 
in Brussels on 6 October 2010, and in particular Article 15.1.3(c) and 15.1.4(f) thereof, 

Whereas: 

(1) 

(2) 

The Trade Committee may adopt its own rules of procedure and shall supervise the 
work  of  all  Specialised  Committees,  Working  Groups  and  other  bodies,  with  the 
exception of the Committee on Cultural Cooperation in accordance with Article 3.3 
of the Protocol on Cultural Cooperation of the Agreement. 

The  Trade  Committee  has  the  exclusive  authority  to  adopt  decisions  in  the  areas 
covered  by  the  Specialised  Committees  and  Working  Groups,  unless  otherwise 
specified in the Agreement,  

HAS ADOPTED THIS DECISION: 

1. 

2. 

The  rules  of  procedure  of  the  Trade  Committee  are  established  as  set  out  in  the 
Annex.  

This Decision shall enter into force on … 

Done at … 

on … 

For the Trade Committee 

Minister for Trade 
of the Republic of Korea 
Kim Jong-hoon 

Commissioner for Trade 
of the European Commission 
Karel De Gucht 

EN 

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Annex 

RULES OF PROCEDURE OF THE TRADE COMMITTEE 

Article 1 

Composition and Chair 

The Trade Committee that is established in accordance with Article 15.1 of the Free 
Trade  Agreement  between  the  European  Union  and  its  Member  States,  of  the  one 
part, and the Republic of Korea, of the other part, ("the Agreement") shall perform its 
duties  as  provided  in  Article  15.1  of  the  Agreement  and  take  responsibility  for 
general implementation of the Agreement.  

As  provided  for  in  Article  15.1.1  of  the  Agreement,  the  Trade  Committee  shall  be 
composed  of  the  representatives  of  the  EU  Party,  on  the  one  hand,  and 
representatives of Korea, on the other hand. 

The Trade Committee shall be co-chaired by the Minister for Trade of Korea and the 
Member of the European Commission responsible for Trade. The Chairpersons may 
arrange to be represented by respective designees as provided in Article 15.1.2 of the 
Agreement. 

Article 2 

Representation 

A  Party  shall  notify  the  other  Party  of  the  list  of  its  members  of  the  Trade 
Committee. The list shall be administered by the Secretariat of the Trade Committee. 

A  member  wishing  to  be  represented  by  an  alternate  representative  shall  notify  the 
Chairpersons  of  the  Trade  Committee  of  the  name  of  his  or  her  alternate 
representative  before  the  meeting  at  which  he  or  she  is  to  be  so  represented.  The 
alternate  representative  of  a  member  of  the  Trade  Committee  shall  exercise  all  the 
rights of that member.  

Article 3 

Meetings 

The  Trade  Committee  shall  meet  once  a  year  or  at  the  request  of  either  Party.  The 
meetings  shall  be  held  in  Brussels  or  Seoul  alternately,  unless  the  Parties  agree 
otherwise.  

By way of exception and if both Parties agree, the meetings of the Trade Committee 
may be held by video or teleconference.  

Each  meeting  of  the  Trade  Committee  shall  be  convened  by  the  Secretariat  of  the 
Trade Committee at a date and place agreed by both Parties. The convening notice of 

1. 

2. 

3. 

1. 

2. 

1. 

2. 

3. 

EN 

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the  meeting  shall  be  issued  by  the  Secretariat  of  the  Trade  Committee  to  the 
members  of  the  Trade  Committee  no  later  than  28  days  prior  to  the  start  of  the 
session, unless the Parties agree otherwise. 

Article 4 

Delegation 

The members of the Trade Committee may be accompanied by officials. Before each meeting, 
the  Chairpersons  of  the  Trade  Committee  shall  be  informed  of  the  intended  composition  of 
the delegations attending the meeting. 

Article 5 

Observers 

The Trade Committee may decide to invite observers on an ad hoc basis. 

Article 6 

Secretariat 

The co-ordinators designated by the Parties in accordance with Article 15.6 of the Agreement 
shall jointly act as Secretariat of the Trade Committee.  

Article 7 

Documents 

Where the deliberations of the Trade Committee are based on written supporting documents, 
such documents shall be numbered and circulated by the Secretariat of the Trade Committee 
as documents of the Trade Committee. 

Article 8 

Correspondence 

1. 

2. 

Correspondence  to  the  Chairpersons  of  the  Trade  Committee  shall  be  forwarded  to 
the Secretariat of the Trade Committee for circulation to the members of the Trade 
Committee. 

Correspondence from the Chairpersons of the Trade Committee shall be sent to the 
recipients by the Secretariat of the Trade Committee and be numbered and circulated, 
where appropriate, to the other members of the Trade Committee. 

EN 

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Article 9 

Agenda for the Meetings 

A  provisional  agenda  for  each  meeting  shall  be  drawn  up  by  the  Secretariat  of  the 
Trade Committee. It shall be forwarded, together with the relevant documents, to the 
members  of  the  Trade  Committee  as  well  as  the  Chairpersons  of  the  Trade 
Committee no later than 7 days before the beginning of the meeting. 

The provisional agenda shall include items in respect of which the Secretariat of the 
Trade  Committee  has  received  a  request  for  inclusion  in  the  agenda  by  a  Party, 
together with the relevant documents, no later than 14 days before the beginning of 
the meeting.  

The  agenda  shall  be  adopted  by  the  Trade  Committee  at  the  beginning  of  each 
meeting. Items other than those appearing on the provisional agenda may be placed 
on the agenda if the Parties so agree. 

The  Chairpersons  of  the  Trade  Committee  may,  upon  agreement,  invite  experts  to 
attend its meetings in order to provide information on specific subjects. 

The  Chairpersons  of  the  Trade  Committee  may,  upon  agreement,  reduce  the  time 
periods specified in paragraphs 1 and 2 in order to take account of the requirements 
of a particular case.  

Article 10 

Minutes 

Draft  minutes  of  each  meeting  shall  be  drawn  up  by  the  Secretariat  of  the  Trade 
Committee, normally within 21 days from the end of the meeting. 

The minutes shall, as a general rule, summarise each item on the agenda, specifying 
where applicable: 

(a) 

the documents submitted to the Trade Committee; 

(b) 

(c) 

any statement that a member of the Trade Committee has asked to be entered; 
and 

the  decisions  adopted,  recommendations  made,  statements  agreed  upon  and 
conclusions adopted on specific items. 

The  minutes  shall  also  include  a  list  of  members  of  the  Trade  Committee  or  their 
alternate representatives who took part in the meeting, a list of the members of the 
delegations accompanying them and a list of any observers or experts to the meeting.  

The minutes shall be approved in writing by both Parties within 28 days of the date 
of the meeting or by any other date agreed by the Parties. Once approved, two copies 
of the minutes shall be signed by the Secretariat of the Trade Committee and each of 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

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the  Parties  shall  receive  one  original  copy  of  these  authentic  documents.  Copies  of 
the signed minutes shall be forwarded to the members of the Trade Committee.  

Article 11 

Reports 

The Trade Committee shall report to the Joint Committee of the Framework Agreement on its 
activities and those of its Specialised Committees, Working Groups and other bodies at each 
regular meeting of the Joint Committee as provided in Article 15.1.5 of the Agreement.  

Article 12 

Decisions and Recommendations 

The  Trade  Committee  shall  adopt  decisions  and  recommendations  by  agreement 
between the Parties, as provided for in Article 15.4 of the Agreement.  

In  the  period  between  meetings,  the  Trade  Committee  may  adopt  decisions  or 
recommendations by written procedure if both Parties agree. The written procedure 
shall  consist  of  an  exchange  of  notes  between  the  Chairpersons  of  the  Trade 
Committee.  

Where the Trade Committee is empowered under the Agreement to adopt decisions 
or  recommendations,  such  acts  shall  be  entitled  "Decision"  or  "Recommendation" 
respectively.  The  Secretariat  of  the  Trade  Committee  shall  give  any  decision  or 
recommendation  a  serial  number,  the  date  of  adoption  and  a  description  of  their 
subject-matter. Each decision shall provide for the date of its entry into force. 

Decisions  and  recommendations  adopted  by  the  Trade  Committee  shall  be 
authenticated  by  two  authentic  copies  signed  by  the  Chairpersons  of  the  Trade 
Committee.  

Article 13 

Publicity and Confidentiality 

Unless otherwise decided, the meetings of the Trade Committee shall not be public. 

When  a  Party  submits  information  considered  as  confidential  under  its  laws  and 
regulations  to  the  Trade  Committee,  Specialised  Committees,  Working  Groups  or 
any  other  bodies,  the  other  Party  shall  treat  that  information  as  confidential  as 
provided in Article 15.1.7 of the Agreement. 

Each Party may decide on the publication of the decisions and recommendations of 
the Trade Committee in its respective official publication. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

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Article 14 

Expenses 

1. 

2. 

1. 

2. 

3. 

4. 

Each  Party  shall  meet  any  expenses  it  incurs  as  a  result  of  participating  in  the 
meetings  of  the  Trade  Committee,  both  with  regard  to  staff,  travel  and  subsistence 
expenditure and with regard to postal and telecommunications expenditure. 

Expenditure  in  connection  with  the  organisation  of  meetings  and  reproduction  of 
documents shall be borne by the Party hosting the meeting. 

Article 15 

Specialised Committees and Working Groups 

The  Trade  Committee  shall  be  assisted  in  the  performance  of  its  duties  by  the 
Specialised  Committees  and  Working  Groups  established  under  the  auspices  of  the 
Trade Committee.  

The  Trade  Committee  shall  be  informed  of  the  contact  points  designated  by  each 
Specialised  Committee  and  Working  Group.  All  correspondences,  documents  and 
communications  including  the  exchange  of  e-mails  between  the  contact  points  of 
each  Specialised  Committee  and  Working  Group  regarding  the  implementation  of 
the  Agreement  shall  be  forwarded  to  the  Secretariat  of  the  Trade  Committee 
simultaneously. 

The  Trade  Committee  at  each  regular  meeting  shall  receive  reports  from  each 
Specialised Committee and Working Group on its activities.  

Each  Specialised  Committee  and  Working  Group  may  establish  its  own  rules  of 
procedure which shall be reported to the Trade Committee. 

EN 

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DECISION No […] OF THE EU-KOREA TRADE COMMITTEE 

of [date] 

on the establishment of a list of arbitrators referred to in Article 14.18 of the Free 
Trade Agreement between the European Union and its Member States, of the one 
part, and the Republic of Korea, of the other part 

THE TRADE COMMITTEE, 

Having  regard  to  the  Free  Trade  Agreement  between  the  European  Union  and  its  Member 
States, of the one part, and the Republic of Korea, of the other part, signed in Brussels on 6 
October 2010 ("the Parties" and "the Agreement"), and in particular Article 14.18 thereof, 

Whereas: 

(1) 

(2) 

(3) 

The  Agreement  provides  for  a  dispute  settlement  mechanism  whereby  disputes  are 
solved through recourse to a panel of arbitrators. 

In the event of a dispute, the Parties shall consult in order to reach an agreement on 
the composition of the arbitration panel and, failing this agreement, the panel shall be 
composed by drawing lots from a list of names. 

Such list of names shall be established by the Trade Committee in accordance with 
Article 14.18 of the Agreement. 

(4) 

The Parties have agreed on a list of 15names, 

HAS ADOPTED THIS DECISION: 

1. 

2. 

The list of 15 arbitrators is set out in the Annex to this Decision. 

This Decision shall enter into force on the date of its adoption 

Done at … 

on … 

For the Trade Committee 

Minister for Trade 
of the Republic of Korea  
Kim Jong-hoon  

Commissioner for Trade 
of the European Commission 
Karel De Gucht 

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Annex 

List of Arbitrators 

Arbitrators proposed by Korea 

Dukgeun AHN 

Seungwha CHANG 

Sungjoon CHO 

Joongi KIM 

Jaemin LEE 

Arbitrators proposed by the EU 

Jacques BOURGEOIS 

Claus-Dieter EHLERMANN 

Pieter Jan KUIJPER 

Giorgio SACERDOTI 

Ramon TORRENT 

Chairpersons 

William DAVEY (US) 

Merit JANOW (US) 

Virachai PLASAI (Thailand) 

Helge SELAND (Norway) 

Florentino FELICIANO (Philippines) 

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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 position to be taken by the European Union within the 
Trade Committee set up by the Free Trade Agreement between the European Union 
and its Member States, of the one part, and the Republic of Korea, of the other part, 
as  regards  the  adoption  of  the  rules  of  procedures  of  the  Trade  Committee  and  the 
establishment of a list of 15 individuals to serve as arbitrators 

2. 

BUDGET LINES: 

Chapter and Article:  

3. 

FINANCIAL IMPACT  

(cid:58) 

(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/yyyy

[Year n] 

Article … 

Impact on own resources 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

Article … 

Article … 

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. 

EN 

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4. 

ANTI-FRAUD MEASURES 

EN 

14 

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