CELEX: 52007PC0154
Language: en
Date: 2007-03-27
Title: Proposal for a Council Decision on the conclusion of the relevant agreements under Article XXI GATS with Argentina, Australia, Brazil, Canada, China, the Separate customs territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), Columbia, Cuba, Ecuador, Hong Kong China, India, Japan, Korea, New Zealand, the Philippines, Switzerland, and the United States, on the necessary compensatory adjustments resulting from the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of Sweden to the European Union

---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak--- NA ---documentbreak---                     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       Brussels, 27.3.2007
                                                       COM(2007) 154 final
                                                       2007/0055 (ACC)
                                          Proposal for a
                                    COUNCIL DECISION
   on the conclusion of the relevant agreements under Article XXI GATS with Argentina,
    Australia, Brazil, Canada, China, the Separate customs territory of Taiwan, Penghu,
     Kinmen and Matsu (Chinese Taipei), Columbia, Cuba, Ecuador, Hong Kong China,
   India, Japan, Korea, New Zealand, the Philippines, Switzerland, and the United States,
    on the necessary compensatory adjustments resulting from the accession of the Czech
    Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the
   Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of
     Austria, the Republic of Poland, the Republic of Slovenia, the Slovak Republic, the
            Republic of Finland, the Kingdom of Sweden to the European Union
                                 (presented by the Commission)
EN                                                                                         EN
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
   The terms and conditions under which WTO Members commit access to their market to the
   services and service suppliers of other members are specified in the members' GATS
   schedules of specific commitments. The original schedule of specific commitments of the EC
   and its Member States (hereafter "the EC GATS schedule") dates back to 1994, and only
   covers those twelve Member States who were members of the European Union at that time.
   The thirteen Member States that have joined the European Union in 1995 and 2004
   (hereinafter referred to as the new Member States) continued to maintain their individual
   GATS schedules, which were adopted prior to their accession to the European Union.
   In order to ensure that the new Member States do not maintain commitments which would be
   in breach of the acquis communautaire and that they are covered by the horizontal limitations
   included in the EC GATS schedule, it was necessary to notify the modification and
   withdrawal of certain specific commitments included in the list of specific commitments of
   the EC and in the individual GATS schedules of the new Member States, and to consolidate
   the schedules of the new Member States with the original EC schedule.
   To this end, under Article XXI of the GATS, the EC entered into negotiations with eighteen
   WTO Members, who claimed to be affected by the aforementioned modifications. In the
   course of such negotiations, in accordance with the Council Conclusions of 26 July 2006,1 the
   EC agreed on the compensation to be offered to the affected WTO Members. The notified
   modifications and withdrawals, together with the agreed compensatory adjustments, were
   incorporated into the EC's consolidated GATS schedule, the certification of which was
   concluded pursuant to the applicable WTO rules on 15 December 2006.
   Thereby, the EC became the first member of the World Trade Organization that successfully
   used the GATS provisions on the modification and withdrawal of trade commitments in the
   services area. As a result of the successful consolidation of the services schedule, the services
   commitments of the EC can finally be presented in a single document covering the 25
   Member States.
   Pending the conclusion of the negotiation with the "affected Members" of the WTO and in
   light of the residual competence of the Member States under Article 133(6), second
   subparagraph of the Treaty establishing the European Community, the Community
   institutions operated under the hypothesis that the potential content of the agreements being
   negotiated could, at least in theory, require the participation and the eventual individual
   approval of Member States, for those matters which could have fallen under their residual
   competence. For this reason, the negotiations with the "affected Members" of the WTO were
   pursued by the Commission on behalf of "the European Communities and their Member
   States".
   However, since the agreed compensatory adjustments do not include provisions which would
   go beyond the European Communities' internal powers, and do not lead to harmonisation of
   the laws or regulations of the Member States in an area for which the Treaties establishing the
   European Communities rules out such harmonisation, nothing in the said agreements actually
   falls under the residual competence of Member States. Therefore, the agreements only require
   approval by the Council.
   1
            12019/06 Limited WTO 135 Services 34
EN                                                 2                                                 EN
 ---pagebreak---    Nevertheless, to ensure consistency of representation, while leaving open the possibility for
   the future that commitments be undertaken under the GATS in such matters covered by the
   provisions of Article 133(6), second subparagraph of the Treaty establishing the European
   Community, the consolidated EC GATS schedule should retain its current title ("European
   Communities and their Member States – Schedule of Specific Commitments").
   The present Commission proposal for a Council decision aims at formally concluding the
   negotiations with those WTO Members considered as affected by the consolidation of the EC
   GATS schedule.
EN                                              3                                                EN
 ---pagebreak---                                                          2007/0055 (ACC)
                                            Proposal for a
                                       COUNCIL DECISION
     on the conclusion of the relevant agreements under Article XXI GATS with Argentina,
        Australia, Brazil, Canada, China, the Separate customs territory of Taiwan, Penghu,
   Kinmen and Matsu (Chinese Taipei), Columbia, Cuba, Ecuador, Hong Kong China, India,
     Japan, Korea, New Zealand, the Philippines, Switzerland, and the United States, on the
   necessary compensatory adjustments resulting from the accession of the Czech Republic,
    the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of
    Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Austria, the
       Republic of Poland, the Republic of Slovenia, the Slovak Republic, the Republic of
                      Finland, the Kingdom of Sweden to the European Union
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article
   133 (1) and (5), in conjunction with Article 300(2) thereof,
   Having regard to the proposal from the Commission,
   Whereas:
   (1)     The Treaty concerning the accession of the Kingdom of Norway, the Republic of
           Austria, the Republic of Finland and the Kingdom of Sweden to the European Union
           entered into force on 1 January 1995,2
   (2)     The Treaty concerning the accession of the Czech Republic, the Republic of Estonia,
           the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the
           Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of
           Slovenia, the Slovak Republic, to the European Union entered into force on 1 May
           2004,3
   (3)     Pursuant to Article XX of the General Agreement on Trade in Services (hereinafter
           referred to as GATS), members of the WTO shall set out in a schedule the specific
           commitments they undertake under Part III of the GATS,
   (4)     The current schedule European Communities and its Member States (hereinafter
           referred to as the European Communities) only covers the specific commitments
           related to the twelve Member States of 1994. The individual schedules of specific
           commitments of the Member States that have joined the European Communities in
   2
           OJ C 241, 29.08.1994
   3
           OJ L 236, 23.09.2003
EN                                                4                                            EN
 ---pagebreak---         1995 and in 2004 (hereinafter referred to as the new Member States) were adopted
        prior to their accession,
   (5)  In order to ensure that the new Member States are covered by limitations included in
        the list of specific commitments of the European Communities and to ensure
        consistency with the acquis communautaire, it was necessary to modify or withdraw
        certain specific commitments included in the list of specific commitments of the
        European Communities and in the lists of specific commitments of the new Member
        States,
   (6)  With a view to present a consolidated schedule, on 28 May 2004 the European
        Communities submitted a communication pursuant to Article V of the GATS whereby
        it notified its intention to modify or withdraw certain specific commitments included
        in the list of specific commitments of the European Communities and in the lists of
        specific commitments of the new Member States, pursuant to Article V:5 of the GATS
        and in accordance with the terms of Article XXI:1(b) of the GATS,
   (7)  Following the submission of the notification and pursuant to Article XXI:2(a) of the
        GATS, eighteen WTO Members (Argentina, Australia, Brazil, Canada, China, the
        Separate customs territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei),
        Colombia, Cuba, Ecuador, Hong Kong China, India, Japan, Korea, New Zealand, the
        Philippines, Switzerland, Uruguay and the United States of America, hereinafter
        referred to as the affected WTO Members) submitted claims of interest,
   (8)  The Commission conducted negotiations with the affected WTO Members. As a result
        of those negotiations, agreement was reached on compensatory adjustments related to
        the modifications and withdrawals notified on 28 May 2004,
   (9)  Following the conclusion of the negotiations, in accordance with the Council
        Conclusions of 26 July 2006,4 the Commission was authorised to sign the respective
        agreements with each of the affected WTO Members concerned. With a view to
        launch the certification procedure provided for by the applicable WTO rules, on 14
        September 2006 the Commission transmitted the draft consolidated schedule to the
        WTO Secretariat. The certification was concluded on 15 December 2006,
   (10) The agreed compensatory adjustments do not include provisions which would go
        beyond the European Communities' internal powers, and do not lead to harmonisation
        of the laws or regulations of the Member States in an area for which the Treaties
        establishing the European Communities rules out such harmonisation. Such
        compensatory adjustments furthermore constitute a satisfactory and balanced outcome
        of the negotiations. The corresponding agreements should therefore be approved on
        behalf of the European Communities,
   4
        12019/06 Limited WTO 135 Services 34
EN                                              5                                             EN
 ---pagebreak---    HAS DECIDED AS FOLLOWS:
                                              Article 1
   The agreements      with Argentina, Australia, Brazil, Canada, China, the Separate customs
   territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), Columbia, Cuba, Ecuador,
   Hong Kong China, India, Japan, Korea, New Zealand, the Philippines, Switzerland, and the
   United States on the necessary compensatory adjustments under Article XXI (GATS)
   resulting from the accession of the Czech Republic, the Republic of Estonia, the Republic of
   Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the
   Republic of Malta, the Republic of Austria, the Republic of Poland, the Republic of Slovenia,
   the Slovak Republic, the Republic of Finland and the Kingdom of Sweden to the European
   Communities, are hereby approved on behalf of the European Communities.
   The President of the Council is hereby authorized to designate the person empowered to
   express the consent of the European Communities to be bound by the agreements.
   The texts of the agreements are attached to this decision.
                                              Article 2
   This Decision shall be published in the Official Journal of the European Union.
   Done at Brussels, […]
                                                For the Council
                                                The President
                                                […]
EN                                                 6                                             EN
 ---pagebreak---                        ANNEX
   (the 17 agreements)
EN                       7   EN
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