Title
Framework Agreement for Trade and Cooperation between the European Community and its Member States, on the one hand, and the Republic of Korea, on the other hand
Preamble
THE KINGDOM OF BELGIUM,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
IRELAND,
THE ITALIAN REPUBLIC,
THE GRAND DUCHY OF LUXEMBOURG,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE PORTUGUESE REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Parties to the Treaty establishing the European Community and the Treaty on European Union, hereinafter referred to as ‘Member States’, and
THE EUROPEAN COMMUNITY,
on the one hand, and
THE REPUBLIC OF KOREA,
on the other hand,
CONSIDERING the traditional links of friendship between the Republic of Korea, the European Community and its Member States,
REAFFIRMING the attachment of the Parties to democratic principles and fundamental human rights as laid down in the Universal Declaration on Human Rights,
CONFIRMING their desire to establish a regular political dialogue between the European Union and the Republic of Korea, based on shared values and aspirations,
RECOGNISING that the General Agreement on Tariffs and Trade (GATT) has played a significant role to promote international trade in general and bilateral trade in particular, and that both the Republic of Korea and the European Community are equally committed to the principles of free trade and market economy on which that Agreement is based,
REAFFIRMING that both the Republic of Korea, the European Community and its Member States have pledged to implement fully their commitments made by the ratification of the Agreement establishing the World Trade Organisation (WTO),
HAVING IN MIND the need to contribute to the full implementation of the results of the GATT Uruguay Round and the need to apply all rules governing international trade in a transparent and non-discriminatory manner,
RECOGNISING the importance of strengthening the existing relationship between the Parties with a view to enhancing cooperation between them, and their common will to consolidate, deepen and diversify their relations in areas of mutual interest on the basis of equality, non-discrimination, respect for the natural environment and mutual benefit,
DESIROUS of creating favourable conditions for sustainable growth and diversification of trade and for economic cooperation in various areas of mutual interest,
BELIEVING that it will be advantageous to the Parties to institutionalise relations and to establish economic cooperation between them, as such cooperation would encourage further development of trade and investment,
MINDFUL of the importance of facilitating the involvement in cooperation of the individuals and entities directly concerned, in particular economic operators and the bodies representing them,
HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries:
THE KINGDOM OF BELGIUM:
Erik DERYCKE,
Minister for Foreign Affairs,
THE KINGDOM OF DENMARK:
Niels HELVEG PETERSEN,
Minister for Foreign Affairs,
THE FEDERAL REPUBLIC OF GERMANY:
Werner HOYER,
Minister of State, Foreign Affairs,
THE HELLENIC REPUBLIC:
Georgios PAPANDREOU,
Deputy Minister for Foreign Affairs,
THE KINGDOM OF SPAIN:
Abel MATUTES,
Minister for Foreign Affairs,
THE FRENCH REPUBLIC:
Michel BARNIER,
Minister with responsibility for European Affairs,
IRELAND:
Gay MITCHELL,
Minister of State for European Affairs at the Department of the Taoiseach,
THE ITALIAN REPUBLIC:
Lamberto DINI,
Minister for Foreign Affairs,
THE GRAND DUCHY OF LUXEMBOURG:
Jacques F. POOS,
Minister for Foreign Affairs,
THE KINGDOM OF THE NETHERLANDS:
Hans VAN MIERLO,
Minister for Foreign Affairs,
THE REPUBLIC OF AUSTRIA:
Wolfgang SCHÜSSEL,
Federal Minister for Foreign Affairs,
THE PORTUGUESE REPUBLIC:
Jaime GAMA,
Minister for Foreign Affairs,
THE REPUBLIC OF FINLAND:
Tarja HALONEN,
Minister for Foreign Affairs,
THE KINGDOM OF SWEDEN:
Lena HJELM-WALLÉN,
Minister for Foreign Affairs,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
David DAVIS,
Minister of State, Foreign and Commonwealth Office,
THE EUROPEAN COMMUNITY:
Dick SPRING,
Minister for Foreign Affairs (Ireland),
President-in-Office of the Council of the European Union,
Sir Leon BRITTAN,
Vice-President of the Commission of the European Communities,
THE REPUBLIC OF KOREA:
Ro-Myung GONG,
Minister for Foreign Affairs,
WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
Body
Article 1. Basis for Cooperation
Respect for democratic principles and human rights as defined in the Universal Declaration on Human Rights inspires the domestic and international policies of the Parties and constitutes an essential element of this Agreement.
Article 2. Aims of Cooperation
With a view to enhancing cooperation between them, the Parties undertake to promote further development of economic relations between them. Their efforts will in particular be aimed at:
(a) stepping up, establishing cooperation in and diversifying trade to their mutual advantage;
(b) establishing economic cooperation in fields of mutual interest, including scientific and technological cooperation and industrial cooperation;
(c) facilitating cooperation between businesses by facilitating investment on both sides and by promoting better mutual understanding.
Article 3. Political Dialogue
A regular political dialogue, based on shared values and aspirations, shall be established between the European Union and the Republic of Korea. This dialogue shall take place in accordance with the procedures agreed in the Joint Declaration between the European Union and the Republic of Korea on this subject.
Article 4. Most-favoured-nation Treatment
In accordance with their rights and obligations under the World Trade Organisation, the Parties undertake to accord each other most-favoured-nation treatment.
Article 5. Trade Cooperation
1. The Parties undertake to promote the development and diversification of their reciprocal commercial exchanges to the highest possible level and to their mutual benefit.
The Parties undertake to achieve improved market access conditions. They will ensure that applied, most-favoured-nation customs duties are set, taking into account various elements, including the domestic market situation of one Party and the export interests of the other Party. They undertake to work towards the elimination of barriers to trade, in particular through the timely removal of non-tariff barriers and by taking measures to improve transparency, having regard to the work carried out by international oganisations in this field.
2. The Parties shall take steps to conduct a policy aimed at:
(a) multilateral and bilateral cooperation to address issues relating to the development of trade which are of interest to both sides, including the future proceedings of the WTO. To that end they shall cooperate at the international level and bilaterally in the solution of commercial problems of common interest;
(b) promoting exchanges of information between economic operators and industrial cooperation between enterprises in order to diversify and increase existing flows of trade;
(c) studying and recommending trade-promotion measures suitable for fostering the development of trade;
(d) facilitating cooperation between the competent customs authorities of the European Community, its Member States and Korea;
(e) improving market access for industrial, agricultural and fisheries products;
(f) improving market access for services, such as financial services and telecommunications services;
(g) strengthening cooperation in the fields of standards and technical regulations;
(h) effectively protecting intellectual, industrial and commercial property;
(i) organising trade and investment visits;
(j) organising general and single industry trade fairs.
3. The Parties shall foster fair competition of economic activities through fully enforcing their relevant laws and regulations.
4. In accordance with their obligations under the WTO Government Procurement Agreement, the Parties shall ensure participation in procurement contracts on a non-discriminatory and reciprocal basis.
They will continue their discussions aimed at further mutual opening of their respective procurement markets in other sectors such as telecommunications procurement.
Article 6. Agriculture and Fisheries
1. The Parties agree to encourage cooperation in the fields of agriculture and fisheries, including horticulture and mariculture.
On the basis of discussions about their respective agricultural and fisheries policies the Parties will study:
(a) the possibilities for increased trade in agricultural products and fish products;
(b) the effect on trade of sanitary and phytosanitary measures, and measures relating to the environment;
(c) the links between agriculture and the rural environment;
(d) research in the fields of agriculture and fisheries, including horticulture and mariculture.
2. As appropriate, the provisions of paragraph 1 apply to products and services in the related agricultural processing industry.
3. The Parties undertake to comply with the terms of the Agreement on Sanitary and Phytosanitary Measures of the WTO and are willing to enter into consultations, on request of either of them, to discuss the proposals from the other Party on the application and the harmonisation of sanitary and phytosanitary measures, taking into consideration the standards agreed on in other international organisations such as OIE, IPPC and Codex Alimentarius.
Article 7. Maritime Transport
1. The Parties undertake to move towards the goal of unrestricted access to the international maritime market and traffic based on fair competition on a commercial basis, in accordance with the provisions of this Article.
(a) The above provision does not prejudice the rights and obligations arising from the United Nations Convention Code of Conduct for Liner Conferences as applicable to one or the other Party to this Agreement. Non-conference lines will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis.
(b) The Parties affirm their commitment to build a fair and competitive environment for the dry and liquid bulk trade.
In view of this commitment, the Republic of Korea will take necessary steps to phase out the existing cargo reservation of designated bulk commodities for Korean flag carriers over a transitional period, which will end on 31 December 1998.
2. In pursuit of the goal of paragraph 1, the Parties shall:
(a) abstain from introducing cargo-sharing clauses into future bilateral agreements with non-member countries concerning dry and liquid bulk and liner trade, except where, in exceptional circumstances, with regard to liner trade, shipping companies from one or the other Party to this Agreement would not otherwise have an effective opportunity to engage in trade to and from the nonmember country concerned;
(b) abstain from implementing, on entry into force of this Agreement, administrative and technical and legislative measures which could have the effect of discriminating between their own nationals or companies and those of the other Party in the supply of services in international maritime transport;
(c) grant no less favourable treatment for the ships operated by nationals or companies of the other Party, than that accorded to its own ships, with regard to access to ports open to international trade, the use of infrastructure and auxiliary maritime services of the ports, as well as related fees and charges, customs facilities and assignment of berths and facilities for loading and unloading.
3. For the purpose of this Article, access to the international maritime market shall include, inter alia, the right for international maritime transport providers of each Party to arrange door-to-door transport services involving a sea leg, and to this effect to directly contract with local providers of transport modes other than maritime transport on the territory of the other Party without prejudice to applicable nationality restrictions concerning the carriage of goods and passengers by those other transport modes.
4. The provisions of this Article shall apply to European Community companies and Korean companies. Beneficiaries of the provisions of this Article shall also be shipping companies established outside the European Community or the Republic of Korea and controlled by nationals of a Member State or the Republic of Korea, if their vessels are registered in that Member State or in the Republic of Korea in accordance with their respective legislations.
5. The issue of the operations in the European Community and in the Republic of Korea of shipping agency activities shall be dealt with by specific agreements, where appropriate.
Article 8. Shipbuilding
1. The Parties agree to cooperate in the field of shipbuilding with a view to promoting fair and competitive market conditions and note the severe structural disequilibrium between supply and demand and the market trends which depress the world shipbuilding industry. For these reasons, the Parties shall not adopt any measure or take any action to support their shipbuilding industry which would distort competition or allow their shipbuilding industry to escape from any future difficult situation, in accordance with the OECD Agreement on Shipbuilding.
2. The Parties agree to enter into consultations on a request from either Party regarding the implementation of the OECD Agreement on Shipbuilding, exchange of information on the development of the world market for ships and shipbuilding and on any other problem arising in this sector.
The representatives of the shipbuilding industry may be invited as observers to such consultations, on agreement by the Parties.
Article 9. Intellectual, Industrial and Commercial Property protection
1. The Parties undertake to ensure that adequate and effective protection is provided for intellectual, industrial and commercial property rights, including effective means of enforcing such rights.
2. The parties agree to implement the WTO Agreement on Trade-related Aspects of Intellectual Property Rights not later than 1 July 1996 (1).
3. The Parties confirm the importance they attach to the obligations contained in multilateral conventions for the protection of intellectual property rights. The Parties shall make efforts to accede as soon as practicable to the conventions in the Annex to which they have not acceded.