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# 52012PC0569

**Proposal for a COUNCIL DECISION on the conclusion of the Cooperation Agreement on a civil Global Navigation Satellite System (GNSS) between the European Community and its Member States and Ukraine /\* COM/2012/0569 final - 2012/0274 (NLE) \*/**

  

COOPERATION AGREEMENT ON A CIVIL GLOBAL
NAVIGATION SATELLITE SYSTEM (GNSS) BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES AND UKRAINE

THE EUROPEAN
COMMUNITY hereinafter referred to as the "Community",

and

THE KINGDOM OF BELGIUM,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND
DUCHY OF LUXEMBOURG,

HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM
OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED
KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting
parties to the Treaty establishing the European Community, hereinafter referred
to as "Member States", of the one part,

and

UKRAINE, of the other part, hereinafter
referred to as "the Parties"

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 the European Community and Ukraine,

RECOGNISING
the advanced Ukraine's satellite navigation activities,

CONSIDERING
the increasing development of GNSS applications in Ukraine, the European
Community and other areas in the world,

HAVE AGREED
AS FOLLOWS:

Article 1

Objective of the agreement

The
objective of the agreement is to encourage, facilitate and enhance cooperation
between the Parties in civil global satellite navigation.

Article 2

Definitions

For the
purposes of this Agreement:

"Augmentation"
means regional or local mechanisms such as the European Geostationary
Navigation Overlay System (EGNOS). These mechanisms enable users to obtain
enhanced performance, such as increased accuracy, availability, integrity, and
reliability.

"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 open, commercial, safety of
life and search and rescue services, in addition to secured Public Regulated
Service with restricted access designed to meet the needs of authorised public
sector users.

"GALILEO
open service" means a service open to the general public free of charges
for its provision.

"GALILEO
safety of life service" means a service based on the open service offering
additionally integrity information, signal authentication, service guarantees
and other features necessary for Safety of Life applications like aviation and
maritime transport.

"GALILEO
commercial service" means a service facilitating the development of
professional applications and offers enhanced performance compared with the
Open Service, particularly in terms of higher data rates, service guarantees
and accuracy.

"GALILEO
search and rescue service" means a service improving search and rescue
operations by providing a faster and more accurate location of distress beacons
and return message capabilities.

"GALILEO
public regulated service" means a secured positioning and timing service
with restricted access specifically designed to meet the needs of authorised
public sector users.

"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 a general
approach for the development of local elements to support the market take-off
and to facilitate the standardisation.

"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.

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

"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. Interoperability of global and regional satellite navigation
systems enhances the quality of services available to users.

"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.

"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).

"Classified
information" means information, in any form, that requires protection
against unauthorised disclosure which could harm in various degrees the
essential interests, including national security, of the Parties or of
individual Member States. Its classification is indicated by a classification
marking. Such information is classified by the Parties in accordance with
applicable laws and regulations and shall be protected against any loss of
confidentiality, integrity and availability.

Article 3

Principles of the cooperation

The Parties
agree to apply the following principles to cooperation activities covered by
this agreement:

1. Mutual
benefit based on an overall balance of rights and obligations.

2. Partnership
in the GALILEO Programme in accordance with the procedures and rules governing
the management of GALILEO.

3. Reciprocal
opportunities to engage in cooperative activities in European Community and
Ukrainian GNSS projects for civil use.

4. Timely
exchange of information that may affect cooperative activities.

5. Appropriate
protection of intellectual property rights as referred to in Article 8(2) of
this Agreement.

Article 4

Scope of cooperation activities

1. The
sectors for cooperative activities in satellite navigation and timing are: radio-spectrum,
scientific research and training, industrial cooperation, trade and market
development, standards, certification and regulatory measures, development of
global and regional GNSS ground augmentation systems, security, liability and
cost recovery. The Parties may adapt this list of issues by common agreement.

2. Extending
cooperation, if requested by the Parties to:

2.1.    GALILEO
sensitive technologies and items under EU, EU and ESA Member States, MTCR and
WASSENAAR agreement export control regulation as well as cryptography and major
information security technologies and items,

2.2. GALILEO
System Security Architecture (space, ground and user segments),

2.3. Security
control features of the GALILEO global segments,

2.4. Public
Regulated Services in their definition, development, implementation, test and
evaluation and operational (management and use) phases, as well as

2.5. Exchange
of classified information concerning satellite navigation and Galileo would be
subject to an appropriate separate agreement to be concluded between the
Parties.

3. This
Agreement shall not affect the institutional structure established by European
Community law for the purpose of the operations of the GALILEO programme. Nor
does this Agreement affect the applicable laws, regulations and policies
implementing non-proliferation commitments and export control of dual-use items
and national domestic measures regarding security and controls of intangible
transfers of technology.

Article 5

Forms of cooperation activities

1. Subject to
their applicable regulatory measures, the Parties shall foster, to the fullest
extent practicable, the cooperative 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 cooperative activities as mentioned in Articles 6 to
13 of this Agreement.

Article 6

Radio spectrum

1. Building
on past successes in the framework of the International Telecommunication
Union, the Parties agree to continue cooperation and mutual support in
radio-spectrum issues.

2. In this
context the Parties shall promote adequate frequency allocations for GALILEO in
order to ensure the availability of GALILEO services for the benefit of users
worldwide and notably in Ukraine and in the Community.

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

4. Nothing in
this Agreement shall be construed so as to derogate from the applicable
provisions of the International Telecommunications Union, including the ITU
Radio Regulations.

Article 7

Scientific research and training

The Parties
shall promote joint research and training activities in the field of GNSS
through Community and Ukraine research programmes including the European
Community Framework Programme for Research and Development, the Research
Programmes of the European Space Agency and other relevant programmes of
Community and Ukrainian authorities.

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

The Parties
agree to define the appropriate mechanism aimed at ensuring effective contacts
and participation in the research and training programmes.

Article 8

Industrial cooperation

1.The Parties
shall encourage and support the cooperation between the industries of the two
sides, including by the means of joint ventures and mutual participation in
relevant industrial associations, with the objective of setting up the GALILEO
system as well as promoting the use and development of GALILEO applications and
services.

2. To
facilitate industrial cooperation the Parties shall grant and ensure adequate
and effective protection and enforcement of intellectual, industrial and
commercial property rights at the fields and sectors relevant to the
development and operation of Galileo/EGNOS, in accordance with the highest
international standards, including effective means of enforcing such standards.

3. Exports by
Ukraine to third countries of sensitive items and technologies developed
specifically and funded by the GALILEO programme will have to be submitted for
prior authorisation by the competent GALILEO security authority, if that
authority has recommended that these items and technologies be subject to
export authorisation in accordance with applicable regulatory measures. Any
separate agreement referred to in Article 4(2) of the Agreement shall also
elaborate an appropriate mechanism for Ukraine to recommend potential items to
be subject to export authorisation.

4. The
Parties shall encourage strengthened ties between the various stakeholders in
the GALILEO programme in the Ukraine and Community in the context of industrial
cooperation.

Article 9

Trade and market development

1. The
Parties shall encourage trade and investment in Community and Ukraine satellite navigation infrastructure, equipment, GALILEO local elements and
applications.

2. To this
end the Parties shall raise the level of public awareness concerning the
GALILEO satellite navigation activities, 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 Ukraine shall consider establishing an open GNSS user forum.

Article 10

Standards, Certification and Regulatory Measures

1. The
Parties recognise the value of coordinating 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 in the Ukraine and worldwide, emphasising interoperability with other GNSS systems. One objective
of the coordination is to promote broad and innovative use of the GALILEO
services for open, commercial and safety of life purposes as a worldwide
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 GNSS matters that arise notably in the
International Civil Aviation Organisation, EUROCONTROL, the International
Maritime Organisation and the International Telecommunications Union.

3. At
bilateral level the Parties shall ensure that measures relating to operational
and technical standards, certification and licensing requirements and
procedures concerning GNSS do not constitute unnecessary barriers to trade.
Domestic requirements shall be based on objective, non‑discriminatory,
pre-established transparent criteria.

Article 11

Development of global and regional GNSS ground
augmentation systems

1. The
Parties shall collaborate to define and implement ground system architectures
allowing an optimal guarantee of GALILEO/EGNOS integrity and continuity of
GALILEO and EGNOS services and interoperability with other GNSS systems

2. To this
end at the regional level the Parties shall cooperate with a view to implement
a ground regional augmentations system in Ukraine based on the GALILEO system.
Such a regional system is foreseen to provide regional integrity and high
accuracy services additional to those provided by the GALILEO system globally.
As a precursor, the Parties envisage the extension of EGNOS in Ukraine region through a ground infrastructure involving Ukrainian Ranging and Integrity
Monitoring Stations.

3. 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 quality, 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 consider establishing an appropriate consultation channel to
address GNSS security issues. The practical arrangements and procedures are to
be defined between the competent security authorities of both Parties in
accordance with Article 4(2).

Article 13

Liability and cost recovery

The Parties
shall cooperate, as appropriate, to define and implement a liability regime and
cost recovery arrangements, in particular in the framework of international and
regional organisations, in order to facilitate the provision of civil GNSS
services.

Article 14

Cooperative mechanism and exchange of information

1. The
coordination and facilitation of cooperative activities under this Agreement
shall be accomplished on behalf of Ukraine, by the Government of the Ukraine and, on behalf of the Community and its Member States, by the European Commission.

2. In
accordance with the objective in Article 1, these two entities shall establish,
in the framework of the Partnership and Cooperation Agreement establishing
partnership between the European Communities and their Member States and Ukraine, 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:

2.1.    Promoting,
making recommendations to and overseeing the different cooperative activities
as mentioned in Articles 4 to 13 of this Agreement;

2.2.    Advising
the Parties on ways to enhance and improve cooperation consistent with the
principles set out in this Agreement;

2.3.    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 the Ukraine. Additional 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
the official representatives 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
participation of any relevant Ukrainian entity to the Galileo Joint Undertaking
or to the European GNSS Supervisory Authority is possible in accordance with
the applicable legislation and procedures.

5. The
Parties shall encourage further information exchanges concerning satellite
navigation among the institutions and enterprises of the two sides.

Article 15

Funding

1. The amount and arrangements of
Ukrainian contribution to the GALILEO programme through the Galileo Joint
Undertaking will be subject to a separate agreement subject to compliance with
the institutional arrangements of the applicable legislation.

2. The
Parties shall take all reasonable steps and use its best efforts, in accordance
with their laws and regulations, to facilitate entry to, stay in and exit from
its territory of persons, capital, material, data and equipment involved in or
used in cooperative activities under this Agreement.

3. Without
prejudice to paragraph 2 when specific cooperative schemes of one Party provide
for financial support to participants from the other Party, any such grants and
financial contributions from one Party to the participants of the other Party
in support of those activities shall be granted tax, customs and other duties
exemption in accordance with the laws and regulations applicable in the
territories of each Party.

Article 16

Consultation and dispute resolution

1. The
Parties shall promptly consult, at the request of either 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
procedures under the Partnership and Cooperation Agreement
establishing partnership between the European Communities and their Member States, and Ukraine.

Article 17

Entry into force and termination

1. This Agreement
shall enter into force on the first day of the month following the day on which
the Parties have notified each other the completion of the procedures necessary
for this purpose. Notifications shall be sent to the General Secretariat of the
Council of the European Union which shall be the depositary of this Agreement.

2. The
expiration or 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 first day of the month following the
day on which the Parties have notified the depository of the completion of the
procedures necessary for this purpose.

4. This
Agreement shall remain in force for a period of five years and is renewable by
common agreement between the Parties for additional periods of five years at
the end of the initial five-year period. Either Party may, by giving three
months' notice to the other in writing, terminate this Agreement.

This
Agreement is drawn up in duplicate in the Czech, Danish, Dutch, English,
Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian,
Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish, Swedish
and Ukrainian languages, all texts being equally authentic.

EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Ukraine is one of the eight countries with
significant technological knowhow important in satellite navigation equipment,
applications and regional technology.

The Ukrainian space industry is among the world’s
leaders in the design and production of launchers and critical Global
Navigation Satellite Systems (GNSS) components.

Since 2000 Ukraine has shown interest in
European GNSS projects and has developed an own contribution to the regional
EGNOS System Test Bed, precursor of Galileo. Since 2010 discussions are
on-going to extend the EGNOS coverage to the Ukrainian territory. The EGNOS
coverage of Ukraine will increase the integrity of EGNOS in Eastern Poland,
Romania and Bulgaria.

On 7 October 2003 the EU-Ukraine summit
adopted the Ukraine - EU Joint Statement on Cooperation in Satellite
Navigation.

The Council authorised the Commission on 8
October 2004 to open negotiations with Ukraine for the conclusion of a
Cooperation Agreement on a Civil Global Navigation Satellite System.

The Cooperation Agreement on a Civil Global
Navigation Satellite System between Ukraine, of the one part, and the European
Community and its Member States, of the other part was signed on 1 December
2005.

This Agreement will allow for the EGNOS
extension to Ukraine and the collaboration in areas such standardisation,
certification, radio spectrum, industrial cooperation and trade and market
development.

The signatory Member States of the European
Union have completed their respective internal procedures related to the entry
into force of the agreement.

Bulgaria and Romania are to become parties
to the agreement by the conclusion of a protocol in accordance with Art 6(2) of
the Act concerning the conditions of accession of the Republic of Bulgaria and
Romania and the adjustments to the treaties on which the European Union is
founded.

The Council is requested to adopt the
following proposal for a Decision on the conclusion of the agreement on behalf
of the European Union after the approval of the European Parliament.

2012/0274 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the Cooperation
Agreement on a civil Global Navigation Satellite System (GNSS) between the
European Community and its Member States and Ukraine

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 172 in
conjunction with 218(6)(a) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the consent of the
European Parliament[1],

Whereas:

(1)       On 8 October 2004, the Council authorised the Commission to open
negotiations with Ukraine for the conclusion of a Cooperation Agreement on a
Civil Global Navigation Satellite System (GNSS).

(2)       In accordance with the
Decision of the Council of 15 November 2005, the Cooperation
Agreement on a Civil Global Navigation Satellite System (GNSS) (hereafter
referred to as 'the Agreement') between the European Community and its Member
States, of the one part, and Ukraine of the other part, was signed on 1
December 2005.

(3)       This Cooperation Agreement
allows for closer cooperation with Ukraine in the area of satellite navigation.
It will implement a number of elements of the European satellite navigation
programmes.

(4)       The Agreement should be
approved on behalf of the European Union.

HAS ADOPTED THIS DECISION:

Article 1

The Cooperation Agreement on a Civil Global
Navigation Satellite System (GNSS) between the European Community and its
Member States, of the one part, and Ukraine of the other part is hereby
approved on behalf of the European Union.

The text of the Agreement is attached to
this Decision

Article 2

The President of the Council shall designate
the person empowered to give the notification, on behalf of the Union, provided
for in Article 17(1) of the Agreement, and shall make the following
notification:

'As a consequence of the entry into force
of the Treaty of Lisbon on 1 December 2009, the European Union has replaced and
succeeded the European Community and from that date exercises all rights and
assumes all obligations of the European Community. Therefore, references to
“the European Community” in the text of the Agreement are to be read as to “the
European Union”'.

Article 3

The position to be taken by the Union in
the GNSS Steering Committee and the Joint Technical Working Groups, referred to
in Article 14 of the Agreement, shall be adopted by the Council, on a proposal
from the Commission.

Article 4

This Decision shall enter into force on the
day of its adoption. It shall be published in the Official Journal of the
European Union.[2]

Done at Brussels,

                                                                       For
the Council

                                                                       The
President

[1]               Consent given on […201.].

[2]               The date of entry into force of the Agreement will be
published in the Official Journal of the European Union by the General
Secretariat of the Council

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