EU - Korea, Republic of FTA (2010)
Previous page Next page

Article 13.2. Scope

1. Except as otherwise provided in this Chapter, this Chapter applies to measures adopted or maintained by the Parties affecting trade-related aspects of labour (1) and environmental issues in the context of Articles 13.1.1 and 13.1.2.

2. The Parties stress that environmental and labour standards should not be used for protectionist trade purposes. The Parties note that their comparative advantage should in no way be called into question.

(1) When labour is referred to in this Chapter, it includes the issues relevant to the Decent Work Agenda as agreed on in the International Labour Organisation (hereinafter referred to as the "ILO") and in the 2006 Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work.

Article 13.3. Right to Regulate and Levels of Protection

Recognising the right of each Party to establish its own levels of environmental and labour protection, and to adopt or modify accordingly its relevant laws and policies, each Party shall seek to ensure that those laws and policies provide for and encourage high levels of environ- mental and labour protection, consistent with the internationally recognised standards or agreements referred to in Articles 13.4 and 13.5, and shall strive to continue to improve those laws and policies.

Article 13.4. Multilateral Labour Standards and Agreements

1. The Parties recognise the value of international cooperation and agreements on employment and labour affairs as a response of the international community to economic, employment and social challenges and opportunities resulting from globalisation. They commit to consulting and cooperating as appropriate on trade-related labour and employment issues of mutual interest.

2. The Parties reaffirm the commitment, under the 2006 Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work, to recognising full and productive employment and decent work for all as a key element of sustainable development for all countries and as a priority objective of international cooperation and to promoting the development of international trade in a way that is conducive to full and productive employment and decent work for all, including men, women and young people.

3. The Parties, in accordance with the obligations deriving from membership of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted by the Inter- national Labour Conference at its 86th Session in 1998, commit to respecting, promoting and realising, in their laws and practices, the principles concerning the fundamental rights, namely:

(a) freedom of association and the effective recognition of the right to collective bargaining;

(b) the elimination of all forms of forced or compulsory labour;

(c) the effective abolition of child labour; and

(d) the elimination of discrimination in respect of employment and occupation.

The Parties reaffirm the commitment to effectively implementing the ILO Conventions that Korea and the Member States of the European Union have ratified respectively. The Parties will make continued and sustained efforts towards ratifying the fundamental ILO Conventions as well as the other Conventions that are classified as "up-to-date" by the ILO.

Article 13.5. Multilateral Environmental Agreements

1. The Parties recognise the value of international environmental governance and agreements as a response of the international community to global or regional environmental problems and they commit to consulting and cooperating as appropriate with respect to negotiations on trade-related environmental issues of mutual interest.

2. The Parties reaffirm their commitments to the effective implementation in their laws and practices of the multilateral environmental agreements to which they are party.

3. The Parties reaffirm their commitment to reaching the ultimate objective of the United Nations Framework Convention on Climate Change and its Kyoto Protocol. They commit to cooperating on the development of the future international climate change framework in accordance with the Bali Action Plan (1).

(1) UNFCCC Decision-1/CP.13 adopted by the thirteenth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change.

Article 13.6. Trade Favouring Sustainable Development

1. The Parties reconfirm that trade should promote sustainable development in all its dimensions. The Parties recognise the beneficial role that core labour standards and decent work can have on economic efficiency, innovation and productivity, and they highlight the value of greater policy coherence between trade policies, on the one hand, and employment and labour policies on the other.

2. The Parties shall strive to facilitate and promote trade and foreign direct investment in environmental goods and services, including environmental technologies, sustainable renewable energy, energy efficient products and services and eco-labelled goods, including through addressing related non-tariff barriers. The Parties shall strive to facilitate and promote trade in goods that contribute to sustainable development, including goods that are the subject of schemes such as fair and ethical trade and those involving corporate social responsibility and accountability.

Article 13.7. Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards

1. A Party shall not fail to effectively enforce its environmental and labour laws, through a sustained or recurring course of action or inaction, in a manner affecting trade or investment between the Parties.

2. A Party shall not weaken or reduce the environmental or labour protections afforded in its laws to encourage trade or investment, by waiving or otherwise derogating from, or offering to waive or otherwise derogate from, its laws, regulations or standards, in a manner affecting trade or investment between the Parties.

Article 13.8. Scientific Information

The Parties recognise the importance, when preparing and implementing measures aimed at protecting the environment and social conditions that affect trade between the Parties, of taking account of scientific and technical information, and relevant intemational standards, guidelines or recommendations.

Article 13.9. Transparency

The Parties, in accordance with their respective domestic laws, agree to develop, introduce and implement any measures aimed at protecting the environment and labour conditions that affect trade between the Parties in a transparent manner, with due notice and public consultation, and with appropriate and timely communication to and consultation of non-state actors including the private sector.

Article 13.10. Review of Sustainability Impacts

The Parties commit to reviewing, monitoring and assessing the impact of the implementation of this Agreement on sustainable development, including the promotion of decent work, through their respective participative processes and institutions, as well as those set up under this Agreement, for instance through trade-related sustainability impact assessments.

Article 13.11. Cooperation

Recognising the importance of cooperating on trade-related aspects of social and environmental policies in order to achieve the objectives of this Agreement, the Parties commit to initiating cooperative activities as set out in Annex 13.

Article 13.12. Institutional Mechanism

1. Each Party shall designate an office within its administration which shall serve as a contact point with the other Party for the purpose of implementing this Chapter.

2. The Committee on Trade and Sustainable Development established pursuant to Article 15.2.1 (Specialised Committees) shall comprise senior officials from within the administrations of the Parties.

3. The Committee shall meet within the first year of the entry into force of this Agreement, and thereafter as necessary, to oversee the implementation of this Chapter, including cooperative activities undertaken under Annex 13.

4. Each Party shall establish a Domestic Advisory Group(s) on sustainable development (environment and labour) with the task of advising on the implementation of this Chapter.

5. The Domestic Advisory Group(s) comprise(s) independent representative organisations of civil society in a balanced representation of environment, labour and business organisations as well as other relevant stakeholders.

Article 13.13. Civil Society Dialogue Mechanism

1. Members of Domestic Advisory Group(s) of each Party will meet at a Civil Society Forum in order to conduct a dialogue encompassing sustainable development aspects of trade relations between the Parties. The Civil Society Forum will meet once a year unless otherwise agreed by the Parties. The Parties shall agree by decision of the Committee on Trade and Sustainable Development on the operation of the Civil Society Forum no later than one year after the entry into force of this Agreement.

2. The Domestic Advisory Group(s) will select the representatives from its members in a balanced representation of relevant stakeholders as set out in Article 13.12.5.

3. The Parties can present an update on the implementation of this Chapter to the Civil Society Forum. The views, opinions or findings of the Civil Society Forum can be submitted to the Parties directly or through the Domestic Advisory Group(s).

Article 13.14. Government Consultations

1. A Party may request consultations with the other Party regarding any matter of mutual interest arising under this Chapter, including the communications of the Domestic Advisory Group(s) referred to in Article 13.12, by delivering a written request to the contact point of the other Party. Consultations shall commence promptly after a Party delivers a request for consultations.

2. The Parties shall make every attempt to arrive at a mutually satis- factory resolution of the matter. The Parties shall ensure that the resolution reflects the activities of the ILO or relevant multilateral environmental organisations or bodies so as to promote greater cooperation and coherence between the work of the Parties and these organisations. Where relevant, subject to the agreement of the Parties, they can seek advice of these organisations or bodies.

3. Ifa Party considers that the matter needs further discussion, that Party may request that the Committee on Trade and Sustainable Development be convened to consider the matter by delivering a written request to the contact point of the other Party. The Committee shall convene promptly and endeavour to agree on a resolution of the matter. The resolution of the Committee shall be made public unless the Committee otherwise decides.

4. The Committee may seek the advice of either or both Domestic Advisory Group(s) and each Party may seek the advice of its own Domestic Advisory Group(s). A Domestic Advisory Group of a Party may also submit communications on its own initiative to that Party or to the Committee.

Article 13.15. Panel of Experts

1. Unless the Parties otherwise agree, a Party may, 90 days after the delivery of a request for consultations under Article 13.14.1, request that a Panel of Experts be convened to examine the matter that has not been satisfactorily addressed through government consultations. The Parties can make submissions to the Panel of Experts. The Panel of Experts should seek information and advice from either Party, the Domestic Advisory Group(s) or international organisations as set out in Article 13.14, as it deems appropriate. The Panel of Experts shall be convened within two months of a Party's request.

2. The Panel of Experts that is selected in accordance with the procedures set out in paragraph 3, shall provide its expertise in implementing this Chapter. Unless the Parties otherwise agree, the Panel of Experts shall, within 90 days of the last expert being selected, present to the Parties a report. The Parties shall make their best efforts to accommodate advice or recommendations of the Panel of Experts on the implementation of this Chapter. The implementation of the recommendations of the Panel of Experts shall be monitored by the Committee on Trade and Sustainable Development. The report of the Panel of Experts shall be made available to the Domestic Advisory Group(s) of the Parties. As regards confidential information, the principles in Annex 14-B (Rules of Procedure for Arbitration) apply.

3. Upon the entry into force of this Agreement, the Parties shall agree on a list of at least 15 persons with expertise on the issues covered by this Chapter, of whom at least five shall be non-nationals of either Party who will serve as chair of the Panel of Experts. The experts shall be independent of, and not be affiliated with or take instructions from, either Party or organisations represented in the Domestic Advisory Group(s). Each Party shall select one expert from the list of experts within 30 days of the receipt of the request for the establishment of a Panel of Experts. If a Party fails to select its expert within such period, the other Party shall select from the list of experts a national of the Party that has failed to select an expert. The two selected experts shall decide on the chair who shall not be a national of either Party.

Article 13.16. Dispute Settlement

For any matter arising under this Chapter, the Parties shall only have recourse to the procedures provided for in Articles 13.14 and 13.15.

Chapter FOURTEEN. DISPUTE SETTLEMENT

Section A. Objective and Scope

Article 14.1. Objective

The objective of this Chapter Is to avoid and settle any dispute between the Parties concerning the good faith application of this Agreement and to arrive at, where possible, a mutually agreed solution.

Article 14.2. Scope

This Chapter applies to any dispute concerning the interpretation and application of the provisions of this Agreement unless otherwise provided (1).

(1) For disputes relating to the Protocol on Cultural Cooperation all references in this Chapter to the Trade Committee shall be understood as referring to the Committee on Cultural Cooperation.

Section B. Consultations

Article 14.3. Consultations

1. The Parties shall endeavour to resolve any dispute regarding the interpretation and application of the provisions referred to in Article 14.2 by entering into consultations in good faith with the aim of reaching a mutually agreed solution.

2. A Party shall seek consultations by means of a written request to the other Party identifying any measure at issue and the provisions of the Agreement that it considers applicable. A copy of the request for consultations shall be delivered to the Trade Committee.

3. Consultations shall be held within 30 days of the date of the submission of the request and take place, unless the Parties agree otherwise, in the territory of the Party complained against. The consultations shall be deemed concluded within 30 days of the date of the submission of the request, unless the Parties agree to continue consultations. All information disclosed during the consultations shall remain confidential.

4. Consultations on matters of urgency, including those regarding perishable or seasonal goods (2) shall be held within 15 days of the date of the submission of the request, and shall be deemed concluded within 15 days of the date of the submission of the request.

5. If consultations are not held within the time frames laid down in paragraph 3 or 4 respectively, or if consultations have been concluded and no mutually agreed solution has been reached, the complaining Party may request the establishment of an arbitration panel in accordance with Article 14.4.

(2) Seasonal goods are goods whose imports, over a representative period, are not spread over the whole year but concentrated on specific times of the year as a result of seasonal factors.

Section C. Dispute Settlement Procedures

Subsection A. Arbitration Procedure

Article 14.4. Initiation of the Arbitration Procedure

1. Where the Parties have failed to resolve the dispute by recourse to consultations as provided for in Article 14.3, the complaining Party may request the establishment of an arbitration panel.

2. The request for the establishment of an arbitration panel shall be made in writing to the Party complained against and the Trade Committee. The complaining Party shall identify in its request the specific measure at issue, and it shall explain how such measure constitutes a breach of the provisions referred to in Article 14.2.

Article 14.5. Establishment of the Arbitration Panel

1. An arbitration panel shall be composed of three arbitrators.

2. Within 10 days of the date of the submission of the request for the establishment of an arbitration panel to the Trade Committee, the Parties shall consult in order to reach an agreement on the composition of the arbitration panel.

3. In the event that the Parties are unable to agree on the composition of the arbitration panel within the time frame laid down in paragraph 2, either Party may request the chair of the Trade Committee, or the chair's delegate, to select all three members by lot from the list established under Article 14.18, one among the individuals proposed by the complaining Party, one among the individuals proposed by the Party complained against and one among the individuals selected by the Parties to act as chairperson. Where the Parties agree on one or more of the members of the arbitration panel, any remaining members shall be selected by the same procedure.

4. The date of establishment of the arbitration panel shall be the date on which the three arbitrators are selected.

Article 14.6. Interim Panel Report

1. The arbitration panel shall issue to the Parties an interim report setting out the findings of facts, the applicability of the relevant provisions and the basic rationale behind any findings and recommendations that it makes, within 90 days of the date of establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel must notify the Parties and the Trade Committee in writing, stating the reasons for the delay and the date on which the panel plans to issue its interim report. Under no circumstances should the interim report be issued later than 120 days after the date of the establishment of the arbitration panel.

2. Any Party may submit a written request for the arbitration panel to review precise aspects of the interim report within 14 days of its issuance.

3. In cases of urgency, including those involving perishable or seasonal goods, the arbitration panel shall make every effort to issue its interim report and any Party may submit a written request for the arbitration panel to review precise aspects of the interim report, within half of the respective time frames under paragraphs 1 and 2.

4. After considering any written comments by the Parties on the interim report, the arbitration panel may modify its report and make any further examination it considers appropriate. The final arbitration panel ruling shall include a discussion of the arguments made at the interim review stage.

Article 14.7. Arbitration Panel Ruling

1. The arbitration panel shall issue its ruling to the Parties and to the Trade Committee within 120 days of the date of the establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel must notify the Parties and the Trade Committee in writing, stating the reasons for the delay and the date on which the panel plans to issue its ruling. Under no circumstances should the ruling be issued later than 150 days after the date of the establishment of the arbitration panel.

2. In cases of urgency, including those involving perishable or seasonal goods, the arbitration panel shall make every effort to issue its ruling within 60 days of the date of its establishment. Under no circumstances should it take longer than 75 days after its establishment. The arbitration panel may give a preliminary ruling within 10 days of its establishment on whether it deems the case to be urgent.

Subsection B. Compliance

Article 14.8. Compliance with the Arbitration Panel Ruling

Each Party shall take any measure necessary to comply in good faith with the arbitration panel ruling, and the Parties will endeavour to agree on the period of time to comply with the ruling.

Article 14.9. The Reasonable Period of Time for Compliance

1. No later than 30 days after the issuance of the arbitration panel ruling to the Parties, the Party complained against shall notify the complaining Party and the Trade Committee of the time it will require for compliance.

2. If there is disagreement between the Parties on the reasonable period of time to comply with the arbitration panel ruling, the complaining Party shall, within 20 days of the notification made under paragraph 1 by the Party complained against, request in writing the original arbitration panel to determine the length of the reasonable period of time. Such request shall be notified to the other Party and to the Trade Committee. The arbitration panel shall issue its ruling to the Parties and to the Trade Committee within 20 days of the date of the submission of the request.

3. In the event that any member of the original arbitration panel is no longer available, the procedures set out in Article 14.5 shall apply. The time limit for issuing the ruling shall be 35 days from the date of the submission of the request referred to in paragraph 2.

4. The Party complained against will inform the complaining Party in writing of its progress to comply with the arbitration panel ruling at least one month before the expiry of the reasonable period of time.

5. The reasonable period of time may be extended by mutual agreement of the Parties.

Article 14.10. Review of Any Measure Taken to Comply with the Arbitration Panel Ruling

1. The Party complained against shall notify the complaining Party and the Trade Committee before the end of the reasonable period of time of any measure that it has taken to comply with the arbitration panel ruling.

2. Where there is disagreement between the Parties as to the existence of a measure or consistency with the provisions referred to in Article 14.2 of any measure notified under paragraph 1, the complaining Party may request in writing the original arbitration panel to rule on the matter. Such request shall identify the specific measure at issue and it shall explain how such measure is incompatible with the provisions referred to in Article 14.2. The arbitration panel shall issue its ruling within 45 days of the date of the submission of the request.

3. In the event that any member of the original arbitration panel is no longer available, the procedures set out in Article 14.5 shall apply. The time limit for issuing the ruling shall be 60 days from the date of the submission of the request referred to in paragraph 2.

Article 14.11. Temporary Remedies In Case of Non-compliance

1. If the Party complained against fails to notify any measure taken to comply with the arbitration panel ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that no measure taken to comply exists or that the measure notified under Article 14.10.1 is inconsistent with that Party's obligations under the provisions referred to in Article 14.2, the Party complained against shall, if so requested by the complaining Party, present an offer for temporary compensation.

2. Ifno agreement on compensation is reached within 30 days of the end of the reasonable period of time or of the issuance of the arbitration panel ruling under Article 14.10 that no measure taken to comply exists or the measure notified under Article 14.10.1 is inconsistent with the provisions referred to in Article 14.2, the complaining Party shall be entitled, upon notification to the Party complained against and to the Trade Committee, to suspend obligations arising from any provision referred to in Article 14.2 at a level equivalent to the nullification or impairment caused by the violation. The notification shall specify the level of obligations that the complaining Party intends to suspend. The complaining Party may implement the suspension 10 days after the date of the notification, unless the Party complained against has requested arbitration under paragraph 4.

3. In suspending obligations, the complaining Party may choose to increase its tariff rates to the level applied to other WTO Members on a volume of trade to be determined in such a way that the volume of trade multiplied by the increase of the tariff rates equals the value of the nullification or impairment caused by the violation.

4. If the Party complained against considers that the level of suspension is not equivalent to the nullification or impairment caused by the violation, it may request in writing the original arbitration panel to rule on the matter. Such request shall be notified to the complaining Party and to the Trade Committee before the expiry of the 10 day period referred to in paragraph 2. The original arbitration panel shall issue its ruling on the level of the suspension of obligations to the Parties and to the Trade Committee within 30 days of the date of the submission of the request. Obligations shall not be suspended until the original arbitration panel has issued its ruling, and any suspension shall be consistent with the arbitration panel ruling.

5. In the event that any member of the original arbitration panel is no longer available, the procedures laid down in Article 14.5 shall apply. The period for issuing the ruling shall be 45 days from the date of the submission of the request referred to in paragraph 4.

6. The suspension of obligations shall be temporary and apply only until any measure found to be inconsistent with the provisions referred to in Article 14.2 has been withdrawn or amended so as to bring it into conformity with those provisions, as established under Article 14.12, or until the Parties have agreed to settle the dispute.

Article 14.12. Review of Any Measure Taken to Comply after the Suspension of Obligations

1. The Party complained against shall notify the complaining Party and the Trade Committee of any measure it has taken to comply with the ruling of the arbitration panel and of its request for the termination of the suspension of obligations applied by the complaining Party.

2. If the Parties do not reach an agreement on the compatibility of the notified measure with the provisions referred to in Article 14.2 within 30 days of the date of the notification, the complaining Party shall request in writing the original arbitration panel to rule on the matter. Such request shall be notified to the Party complained against and to the Trade Committee. The arbitration panel ruling shall be issued to the Parties and to the Trade Committee within 45 days of the date of the submission of the request. If the arbitration panel rules that any measure taken to comply is in conformity with the provisions referred to in Article 14.2, the suspension of obligations shall be terminated.

3. In the event that any member of the original arbitration panel is no longer available, the procedures laid down in Article 14.5 shall apply. The period for issuing the ruling shall be 60 days from the date of the submission of the request referred to in paragraph 2.

Subsection C. Common Provisions

Article 14.13. Mutually Agreed Solution

The Parties may reach a mutually agreed solution to a dispute under this Chapter at any time. They shall notify the Trade Committee of any such solution. Upon notification of the mutually agreed solution, the procedure shall be terminated.

Article 14.14. Rules of Procedure

1. Dispute settlement procedures under this Chapter shall be governed by Annex 14-B.

2. Any hearing of the arbitration panel shall be open to the public in accordance with Annex 14-B.

Article 14.15. Information and Technical Advice

At the request of a Party, or upon its own initiative, the arbitration panel may obtain information from any source, including the Parties involved in the dispute, as it deems appropriate for the arbitration panel proceeding. The arbitration panel also has the right to seek the relevant opinion of experts as it deems appropriate. Any information obtained in this manner must be disclosed to both Parties which may submit comments. Interested natural or legal persons of the Parties are authorised to submit amicus curiae briefs to the arbitration panel in accordance with Annex 14-B.

Article 14.16. Rules of Interpretation

Any arbitration panel shall interpret the provisions referred to in Article 14.2 in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties. Where an obligation under this Agreement is identical to an obligation under the WTO Agreement, the arbitration panel shall adopt an interpretation which is consistent with any relevant interpretation established in rulings of the WTO Dispute Settlement Body (hereinafter referred to as the "DSB"). The rulings of the arbitration panel cannot add to or diminish the rights and obligations provided for in the provisions referred to in Article 14.2.

Article 14.17. Arbitration Panel Decisions and Rulings

1. The arbitration panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote. In no ease shall dissenting opinions of arbitrators be published.

2. Any ruling of the arbitration panel shall be binding on the Parties and shall not create any rights or obligations for natural or legal persons. The ruling shall set out the findings of fact, the applicability of the relevant provisions of this Agreement and the basic rationale behind any findings and conclusions that it makes. The Trade Committee shall make the arbitration panel rulings publicly available in its entirety unless it decides not to do so.

Section D. General Provisions

Article 14.18. List of Arbitrators

1. The Trade Committee shall, no later than six months after the entry into force of this Agreement, establish a list of 15 individuals who are willing and able to serve as arbitrators. Each Party shall propose five individuals to serve as arbitrators. The Parties shall also select five individuals who are not nationals of either Party and shall act as chairperson to the arbitration panel. The Trade Committee will ensure that the list is always maintained at this level.

2. Arbitrators shall have specialised knowledge or experience of law and international trade. They shall be independent, serve in their indi- vidual capacities and not take instructions from any organisation or government with regard to matters related to the dispute, or be affiliated with the government of any Party, and shall comply with Annex 14-C.

Article 14.19. Relation with WTO Obligations

1. Recourse to the dispute settlement provisions of this Chapter shall be without prejudice to any action in the WTO framework, including dispute settlement action.

2. However, where a Party has, with regard to a particular measure, initiated a dispute settlement proceeding, either under this Chapter or under the WTO Agreement, it may not institute a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has been concluded. In addition, a Party shall not seek redress of an obligation which is identical under this Agreement and under the WTO Agreement in the two forums. In such case, once a dispute settlement proceeding has been initiated, the Party shall not bring a claim seeking redress of the identical obligation under the other Agreement to the other forum, unless the forum selected fails for procedural or jurisdictional reasons to make findings on the claim seeking redress of that obligation.

3. For the purposes of paragraph 2:

(a) dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the WTO Agreement (hereinafter referred to as the "DSU") and are deemed to be concluded when the DSB adopts the Panel's report, and the Appellate Body's report as the case may be, under Articles 16 and 17.14 of the DSU; and

(b) dispute settlement proceedings under this Chapter are deemed to be initiated by a Party's request for the establishment of an arbitration panel under Article 14.4.1 and are deemed to be concluded when the arbitration panel issues its ruling to the Parties and to the Trade Committee under Article 14.7.

4. Nothing in this Agreement shall preclude a Party from imple- menting the suspension of obligations authorised by the DSB. The WTO Agreement shall not be invoked to preclude a Party from suspending obligations under this Chapter.

Article 14.20. Time Limits

1. All time limits laid down in this Chapter, including the limits for the arbitration panels to issue their rulings, shall be counted in calendar days, the first day being the day following the act or fact to which they refer.

2. Any time limit referred to in this Chapter may be extended by mutual agreement of the Parties.

Chapter FIFTEEN. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 15.1. Trade Committee

1. The Parties hereby establish a Trade Committee (1) comprising representatives of the EU Party and representatives of Korea.

2. The Trade Committee shall meet once a year in Brussels or Seoul alternately or at the request of either Party. The Trade Committee shall be co-chaired by the Minister for Trade of Korea and the Member of the European Commission responsible for Trade, or their respective designees. The Trade Committee shall agree on its meeting schedule and set its agenda.

3. The Trade Committee shall:

(a) ensure that this Agreement operates properly;

(b) supervise and facilitate the implementation and application of this Agreement, and further its general aims;

(c) supervise the work of all specialised committees, working groups and other bodies established under this Agreement;

(d) consider ways to further enhance trade relations between the Parties;

(e) without prejudice to the rights conferred in Chapter Fourteen (Dispute Settlement) and Annex 14-A (Mediation Mechanism for Non-Tariff Measures), seek appropriate ways and methods of forestalling problems which might arise in areas covered by this Agreement, or of resolving disputes that may arise regarding the interpretation or application of this Agreement;

(f) study the development of trade between the Parties; and

  • Chapter   ONE OBJECTIVES AND GENERAL DEFINITIONS 1
  • Article   1.1 Objectives 1
  • Article   1.2 General Definitions 1
  • Chapter   TWO NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 1
  • Section   A Common Provisions 1
  • Article   2.1 Objective 1
  • Article   2.2 Scope and Coverage 1
  • Article   2.3 Customs Duty 1
  • Article   2.4 Classification of Goods 1
  • Section   B Elimination of Customs Duties 1
  • Article   2.5 Elimination of Customs Duties 1
  • Article   2.6 Standstill 1
  • Article   2.7 Administration and Implementation of Tariff-rate Quotas 1
  • Section   C Non-tariff Measures 1
  • Article   2.8 National Treatment 1
  • Article   2.9 Import and Export Restrictions 1
  • Article   2.10 Fees and other Charges on Imports 1
  • Article   2.11 Duties, Taxes or other Fees and Charges on Exports 1
  • Article   2.12 Customs Valuation 1
  • Article   2.13 State Trading Enterprises 1
  • Article   2.14 Elimination of Sectoral Non-tariff Measures 1
  • Section   D Specific Exceptions Related to Goods 1
  • Article   2.15 General Exceptions 1
  • Section   E Institutional Provisions 1
  • Article   2.16 Committee on Trade In Goods 1
  • Article   2.17 Special Provisions on Administrative Cooperation 1
  • Chapter   THREE TRADE REMEDIES 1
  • Section   A Bilateral Safeguard Measures 1
  • Article   3.1 Application of a Bilateral Safeguard Measure 1
  • Article   3.2 Conditions and Limitations 1
  • Article   3.3 Provisional Measures 2
  • Article   3.4 Compensation 2
  • Article   3.5 Definitions 2
  • Section   B Agricultural Safeguard Measures 2
  • Article   3.6 Agricultural Safeguard Measures 2
  • Section   C Global Safeguard Measures 2
  • Article   3.7 Global Safeguard Measures 2
  • Section   D Anti-dumping and Countervailing Duties 2
  • Article   3.8 General Provisions 2
  • Article   3.9 Notification 2
  • Article   3.10 Consideration of Public Interests 2
  • Article   3.11 Investigation after Termination Resulting from a Review 2
  • Article   3.12 Cumulative Assessment 2
  • Article   3.13 De-minimis Standard Applicable to Review 2
  • Article   3.14 Lesser Duty Rule 2
  • Article   3.15 Dispute Settlement 2
  • Section   E Institutional Provisions 2
  • Article   3.16 Working Group on Trade Remedy Cooperation 2
  • Chapter   FOUR TECHNICAL BARRIERS TO TRADE 2
  • Article   4.1 Affirmation of the TBT Agreement 2
  • Article   4.2 Scope and Definitions 2
  • Article   4.3 Joint Cooperation 2
  • Article   4.4 Technical Regulations 2
  • Article   4.5 Standards 2
  • Article   4.6 Conformity Assessment and Accreditation 2
  • Article   4.7 Market Surveillance 2
  • Article   4.8 Conformity Assessment Fees 2
  • Article   4.9 Marking and Labelling 2
  • Article   4.10 Coordination Mechanism 2
  • Chapter   FIVE SANITARY AND PHYTOSANITARY MEASURES 2
  • Article   5.1 Objective 3
  • Article   5.2 Scope 3
  • Article   5.3 Definition 3
  • Article   5.4 Rights and Obligations 3
  • Article   5.5 Transparency and Exchange of Information 3
  • Article   5.6 International Standards  3
  • Article   5.7 Import Requirements 3
  • Article   5.8 Measures Linked to Animal and Plant Health 3
  • Article   5.9 Cooperation on Animal Welfare 3
  • Article   5.10 Committee on Sanitary and Phytosanitary Measures 3
  • Article   5.11 Dispute Settlement 3
  • Chapter   SIX CUSTOMS AND TRADE FACILITATION 3
  • Article   6.1 Objectives and Principles 3
  • Article   6.2 Release of Goods 3
  • Article   6.3 Simplified Customs Procedure 3
  • Article   6.4 Risk Management 3
  • Article   6.5 Transparency 3
  • Article   6.6 Advance Rulings 3
  • Article   6.7 Appeal Procedures 3
  • Article   6.8 Confidentiality 3
  • Article   6.9 Fees and Charges 3
  • Article   6.10 Pre-shipment Inspections 3
  • Article   6.11 Post-clearance Audit 3
  • Article   6.12 Customs Valuation 3
  • Article   6.13 Customs Cooperation 3
  • Article   6.14 Mutual Administrative Assistance In Customs Matters 3
  • Article   6.15 Customs Contact Points 3
  • Article   6.16 Customs Committee 3
  • Chapter   SEVEN TRADE IN SERVICES, ESTABLISHMENT AND ELECTRONIC COMMERCE 3
  • Section   A General Provisions 3
  • Article   7.1 Objective, Scope and Coverage 3
  • Article   7.2 Definitions 3
  • Article   7.3 Committee on Trade In Services, Establishment and Electronic Commerce 4
  • Section   B Cross-border Supply of Services 4
  • Article   7.4 Scope and Definitions 4
  • Article   7.5 Market Access 4
  • Article   7.6 National Treatment 4
  • Article   7.7 Lists of Commitments 4
  • Article   7.8 MFN Treatment  (1) 4
  • Section   C Establishment 4
  • Article   7.9 Definitions 4
  • Article   7.10 Scope 4
  • Article   7.11 Market Access 4
  • Article   7.12 National Treatment  (1) 4
  • Article   7.13 Lists of Commitments 4
  • Article   7.14 MFN Treatment  (1) 4
  • Article   7.15 Other Agreements 4
  • Article   7.16 Review of the Investment Legal Framework 4
  • Section   D Temporary Presence of Natural Persons for Business 4
  • Article   7.17 Scope and Definitions 4
  • Article   7.18 Key Personnel and Graduate Trainees 5
  • Article   7.19 Business Service Sellers 5
  • Article   7.20 Contractual Service Supplier and Independent Professionals 5
  • Section   E Regulatory Framework 5
  • Subsection   A Provisions of General Application 5
  • Article   7.21 Mutual Recognition 5
  • Article   7.22 Transparency and Confidential Information 5
  • Article   7.23 Domestic Regulation 5
  • Article   7.24 Governance 5
  • Subsection   B Computer Services 5
  • Article   7.25 Computer Services 5
  • Subsection   C Postal and Courier Services 5
  • Article   7.26 Regulatory Principles 5
  • Subsection   D Telecommunications Services 5
  • Article   7.27 Scope and Definitions 5
  • Article   7.28 Regulatory Authority 5
  • Article   7.29 Authorisation to Provide Telecommunications Services 5
  • Article   7.30 Competitive Safeguards on Major Suppliers 5
  • Article   7.31 Interconnection 5
  • Article   7.32 Number Portability 5
  • Article   7.33 Allocation and Use of Scarce Resources 5
  • Article   7.34 Universal Service 5
  • Article   7.35 Confidentiality of Information 5
  • Article   7.36 Resolution of Telecommunications Disputes 5
  • Subsection   E Financial Services 5
  • Article   7.37 Scope and Definitions 5
  • Article   7.38 Prudential Carve-out  (1) 6
  • Article   7.39 Transparency 6
  • Article   7.40 Self-regulatory Organisations 6
  • Article   7.41 Payment and Clearing Systems 6
  • Article   7.42 New Financial Services 6
  • Article   7.43 Data Processing 6
  • Article   7.44 Specific Exceptions 6
  • Article   7.45 Dispute Settlement 6
  • Article   7.46 Recognition 6
  • Subsection   F International Maritime Transport Services 6
  • Article   7.47 Scope, Definitions and Principles 6
  • Section   F Electronic Commerce 6
  • Article   7.48 Objective and Principles 6
  • Article   7.49 Cooperation on Regulatory Issues 6
  • Section   G Exceptions 6
  • Article   7.50 Exceptions 6
  • Chapter   EIGHT PAYMENTS AND CAPITAL MOVEMENTS 6
  • Article   8.1 Current Payments 6
  • Article   8.2 Capital Movements 6
  • Article   8.3 Exceptions 6
  • Article   8.4 Safeguard Measures 6
  • Chapter   NINE GOVERNMENT PROCUREMENT 6
  • Article   9.1 General Provisions 6
  • Article   9.2 Scope and Coverage 7
  • Article   9.3 Government Procurement Working Group 7
  • Chapter   TEN INTELLECTUAL PROPERTY 7
  • Section   A General Provisions 7
  • Article   10.1 Objectives 7
  • Article   10.2 Nature and Scope of Obligations 7
  • Article   10.3 Transfer of Technology 7
  • Article   10.4 Exhaustion 7
  • Section   B Standards Concerning Intellectual Property Rights 7
  • Subsection   A Copyright and Related Rights 7
  • Article   10.5 Protection Granted 7
  • Article   10.6 Duration of Authors' Rights 7
  • Article   10.7 Broadcasting Organisations 7
  • Article   10.8 Cooperation on Collective Management of Rights 7
  • Article   10.9 Broadcasting and Communication to the Public 7
  • Article   10.10 Artists' Resale Right In Works of Art 7
  • Article   10.11 Limitations and Exceptions 7
  • Article   10.12 Protection of Technological Measures 7
  • Article   10.13 Protection of Rights Management Information 7
  • Article   10.14 Transitional Provision 7
  • Subsection   B Trademarks 7
  • Article   10.15 Registration Procedure 7
  • Article   10.16 International Agreements 7
  • Article   10.17 Exceptions to the Rights Conferred by a Trademark 7
  • Subsection   C Geographical Indications  (1) (2) 7
  • Article   10.18 Recognition of Geographical Indications for Agricultural Products and Foodstuffs and Wines 7
  • Article   10.19 Recognition of Specific Geographical Indications for Wines, Aromatised Wines and Spirits  (1) (2) (3) 7
  • Article   10.20 Right of Use 7
  • Article   10.21 Scope of Protection 7
  • Article   10.22 Enforcement of Protection 7
  • Article   10.23 Relationship with Trademarks 7
  • Article   10.24 Addition of Geographical Indications for Protection  (1) 7
  • Article   10.25 Working Group on Geographical Indications 7
  • Article   10.26 Individual Applications for Protection of Geographical Indications 8
  • Subsection   D Designs 8
  • Article   10.27 Protection of Registered Designs 8
  • Article   10.28 Rights Conferred by Registration 8
  • Article   10.29 Protection Conferred to Unregistered Appearance 8
  • Article   10.30 Term of Protection 8
  • Article   10.31 Exceptions 8
  • Article   10.32 Relationship with Copyright 8
  • Subsection   E Patents 8
  • Article   10.33 International Agreement 8
  • Article   10.34 Patents and Public Health 8
  • Article   10.35 Extension of the Duration of the Rights Conferred by Patent Protection 8
  • Article   10.36 Protection of Data Submitted to Obtain a Marketing Authorisation for Pharmaceutical Products  (1) 8
  • Article   10.37 Protection of Data Submitted to Obtain a Marketing Authorisation for Plant Protection Products 8
  • Article   10.38 Implementation 8
  • Subsection   F Other Provisions 8
  • Article   10.39 Plant Varieties 8
  • Article   10.40 Genetic Resources, Traditional Knowledge and Folklore 8
  • Section   C Enforcement of Intellectual Property Rights 8
  • Article   10.41 General Obligations 8
  • Article   10.42 Entitled Applicants 8
  • Subsection   A Civil Measures 8
  • Article   10.43 Evidence 8
  • Article   10.44 Provisional Measures for Preserving Evidence 8
  • Article   10.45 Right of Information 8
  • Article   10.46 Provisional and Precautionary Measures 8
  • Article   10.47 Corrective Measures 8
  • Article   10.48 Injunctions 8
  • Article   10.49 Alternative Measures 8
  • Article   10.50 Damages 8
  • Article   10.51 Legal Costs 8
  • Article   10.52 Publication of Judicial Decisions 8
  • Article   10.53 Presumption of Authorship or Ownership 8
  • Subsection   B Criminal Enforcement 8
  • Article   10.54 Scope of Criminal Enforcement 8
  • Article   10.55 Geographical Indications and Designs Counterfeiting 8
  • Article   10.56 Liability of Legal Persons 8
  • Article   10.57 Aiding and Abetting 8
  • Article   10.58 Seizure 8
  • Article   10.59 Penalties 8
  • Article   10.60 Confiscation 8
  • Article   10.61 Rights of Third Parties 8
  • Subsection   C Liability of Online Service Providers 8
  • Article   10.62 Liability of Online Service Providers  (1) 8
  • Article   10.63 Liability of Online Service Providers: "mere Conduit"™ 8
  • Article   10.64 Liability of Online Service Providers: "caching" 9
  • Article   10.65 Liability of Online Service Providers: "hosting" 9
  • Article   10.66 No General Obligation to Monitor 9
  • Subsection   D Other Provisions 9
  • Article   10.67 Border Measures 9
  • Article   10.68 Codes of Conduct 9
  • Article   10.69 Cooperation 9
  • Chapter   ELEVEN COMPETITION 9
  • Section   A Competition 9
  • Article   11.1 Principles 9
  • Article   11.2 Definitions 9
  • Article   11.3 Implementation 9
  • Article   11.4 Public Enterprises and Enterprises Entrusted with Special Rights or Exclusive Rights  (1) 9
  • Article   11.5 State Monopolies 9
  • Article   11.6 Cooperation 9
  • Article   11.7 Consultation 9
  • Article   11.8 Dispute Settlement 9
  • Section   B Subsidies 9
  • Article   11.9 Principles 9
  • Article   11.10 Definitions of a Subsidy and Specificity 9
  • Article   11.11 Prohibited Subsidies  (1) (2) 9
  • Article   11.12 Transparency 9
  • Article   11.13 Relation with the WTO Agreement 9
  • Article   11.14 Monitoring and Review 9
  • Article   11.15 Scope 9
  • Chapter   TWELVE TRANSPARENCY 9
  • Article   12.1 Definitions 9
  • Article   12.2 Objective and Scope 9
  • Article   12.3 Publication 9
  • Article   12.4 Enquiries and Contact Points 9
  • Article   12.5 Administrative Proceedings 9
  • Article   12.6 Review and Appeal 9
  • Article   12.7 Regulatory Quality and Performance and Good Administrative Behaviour 9
  • Article   12.8 Non-discrimination 9
  • Chapter   THIRTEEN TRADE AND SUSTAINABLE DEVELOPMENT 9
  • Article   13.1 Context and Objectives 9
  • Article   13.2 Scope 10
  • Article   13.3 Right to Regulate and Levels of Protection 10
  • Article   13.4 Multilateral Labour Standards and Agreements 10
  • Article   13.5 Multilateral Environmental Agreements 10
  • Article   13.6 Trade Favouring Sustainable Development 10
  • Article   13.7 Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards 10
  • Article   13.8 Scientific Information 10
  • Article   13.9 Transparency 10
  • Article   13.10 Review of Sustainability Impacts 10
  • Article   13.11 Cooperation 10
  • Article   13.12 Institutional Mechanism 10
  • Article   13.13 Civil Society Dialogue Mechanism 10
  • Article   13.14 Government Consultations 10
  • Article   13.15 Panel of Experts 10
  • Article   13.16 Dispute Settlement 10
  • Chapter   FOURTEEN DISPUTE SETTLEMENT 10
  • Section   A Objective and Scope 10
  • Article   14.1 Objective 10
  • Article   14.2 Scope 10
  • Section   B Consultations 10
  • Article   14.3 Consultations 10
  • Section   C Dispute Settlement Procedures 10
  • Subsection   A Arbitration Procedure 10
  • Article   14.4 Initiation of the Arbitration Procedure 10
  • Article   14.5 Establishment of the Arbitration Panel 10
  • Article   14.6 Interim Panel Report 10
  • Article   14.7 Arbitration Panel Ruling 10
  • Subsection   B Compliance 10
  • Article   14.8 Compliance with the Arbitration Panel Ruling 10
  • Article   14.9 The Reasonable Period of Time for Compliance 10
  • Article   14.10 Review of Any Measure Taken to Comply with the Arbitration Panel Ruling 10
  • Article   14.11 Temporary Remedies In Case of Non-compliance 10
  • Article   14.12 Review of Any Measure Taken to Comply after the Suspension of Obligations 10
  • Subsection   C Common Provisions 10
  • Article   14.13 Mutually Agreed Solution 10
  • Article   14.14 Rules of Procedure 10
  • Article   14.15 Information and Technical Advice 10
  • Article   14.16 Rules of Interpretation 10
  • Article   14.17 Arbitration Panel Decisions and Rulings 10
  • Section   D General Provisions 10
  • Article   14.18 List of Arbitrators 10
  • Article   14.19 Relation with WTO Obligations 10
  • Article   14.20 Time Limits 10
  • Chapter   FIFTEEN INSTITUTIONAL, GENERAL AND FINAL PROVISIONS 10
  • Article   15.1 Trade Committee 10
  • Article   15.2 Specialised Committees 11
  • Article   15.3 Working Groups 11
  • Article   15.4 Decision-making 11
  • Article   15.5 Amendments 11
  • Article   15.6 Contact Points 11
  • Article   15.7 Taxation 11
  • Article   15.8 Balance-of-payments Exceptions 11
  • Article   15.9 Security Exceptions 11
  • Article   15.10 Entry Into Force 11
  • Article   15.11 Duration 11
  • Article   15.12 Fulfilment of Obligations 11
  • Article   15.13 Annexes, Appendices, Protocols and Notes 11
  • Article   15.14 Relation with other Agreements 11
  • Article   15.15 Territorial Application 11
  • Article   15.16 Authentic Texts 11
  • ANNEX 7-A  LISTS OF COMMITMENTS 11
  • ANNEX 7-A-2  EU PARTY LIST OF COMMITMENTS IN CONFORMITY WITH ARTICLE 7.13 (ESTABLISHMENT) 11
  • ANNEX 7-A-4  KOREA. SCHEDULE OF SPECIFIC COMMITMENTS IN CONFORMITY WITH ARTICLES 7.7, 7.13, 7.18 AND 7.19 14
  • ANNEX 13  COOPERATION ON TRADE AND SUSTAINABLE DEVELOPMENT 14
  • ANNEX 14-A  MEDIATION MECHANISM FOR NON-TARIFF MEASURES 14
  • 1 Objective 14
  • 2 Scope 14
  • Section   A PROCEDURE UNDER THE MEDIATION MECHANISM 14
  • 3 Initiation of the Mediation Procedure 14
  • 4 Selection of Mediator 14
  • 5 Rules of the Mediation Procedure 14
  • Section   B IMPLEMENTATION 14
  • 6 Implementation of a Mutually Agreed Solution 14
  • Section   C GENERAL PROVISIONS 14
  • 7 Relationship to Dispute Settlement 14
  • 8 Time Limits 14
  • 9 Costs 14
  • 10 Review 14
  • ANNEX 14-B  RULES OF PROCEDURE FOR ARBITRATION 14
  • 1 General Provisions 14
  • 2 Notifications 15
  • 3 Commencing the Arbitration 15
  • 4 Initial Submissions 15
  • 5 Working of Arbitration Panels 15
  • 6 Replacement 15
  • 7 Hearings 15
  • 8 Questions In Writing 15
  • 9 Confidentiality 15
  • 10 Ex Parte Contacts 15
  • 11 Amicus Curiae Submissions 15
  • 12 Urgent Cases 15
  • 13 Translation and Interpretation 15
  • 14 Calculation of Time Limits 15
  • 15 Other Procedures 15
  • ANNEX 14-C  CODE OF CONDUCT FOR MEMBERS OF ARBITRATION PANELS AND MEDIATORS 15
  • 1 Definitions 15
  • 2 Responsibilities to the Process 15
  • 3 Disclosure Obligations 15
  • 4 Duties of Members 15
  • 5 Independence and Impartiality of Members 15
  • 6 Obligations of Former Members 15
  • 7 Confidentiality 15
  • 8 Mediators 15