52011XC0514(01)

Commission’s statements

1. Statement on rules of origin

The Commission confirms the exceptional nature of the derogations for some textile products and for surimi contained in the Protocol of Origin. The Commission also confirms its commitment to the EU standard preferential rules of origin as the basis for other FTA negotiations, and the importance of continuing to require in its rules of origin an appropriate level of transformation and processing in the country of origin of products to benefit from preferential treatment.

The Commission intends to favour in current and future FTA negotiations the prohibition of duty drawback. Any changes to this policy in a particular FTA will have to be preceded by a discussion with Member States.

2. Statement on entry prices

The Commission confirms the exceptional nature of the provisions in the FTA eliminating entry prices for certain fruits and vegetables, which were agreed with Korea in view of special circumstances of those negotiations and do not represent a precedent for other bilateral or multilateral negotiations.

3. Statement on the cultural cooperation protocol

The Commission points out that it remains deeply committed to the principles and provisions of the Unesco Convention on the Protection and Promotion of the Diversity of Cultural Expressions 2005. The Protocol on cultural cooperation annexed to the Free Trade Agreement with Korea, whose audiovisual co-production provisions will be in force for an initial three-year period, is placed directly under the aegis of that Convention, and is without prejudice to the EU’s policy that trade negotiations on cultural and audiovisual services should not affect the Union’s cultural and linguistic diversity.

The protocol has been drawn up and negotiated with reference to Korea’s specific cultural policy, in particular its support for the audiovisual sector. It cannot therefore be taken as a precedent in future negotiations with other partners.

The Commission reaffirms its undertaking to promote ratification and implementation of the Unesco Convention and to establish a comprehensive EU strategy on external cultural policy, in keeping with the Council’s November 2008 conclusions.

4. Statement on the FTA implementation

The Commission is committed to activate the procedures relating to limitations on duty drawback, safeguard and dispute settlement whenever the conditions established in the relevant provisions are met.

In order to ensure close monitoring of Korean commitments and cooperation on FTA implementation between the Commission and stakeholders, the following steps shall be taken:

- The Commission will regularly share with EU business, Member States and the INTA Committee statistics on Korean imports in sensitive sectors, as well as the import and export statistics relevant for the invocation of the safeguard clause and special clause on duty drawback. Statistics relevant to cars, consumer electronics and textiles shall be shared on a bi-monthly basis, starting from the date of provisional application of this agreement.

- In order to facilitate input to the preparation of FTA-related meetings, the Commission will circulate early in the year to stakeholders, Member States and the INTA Committee, a tentative agenda of FTA-related meetings.

- The Commission will consider carefully any substantiated information provided by EU business as to market access obstacles. It will discuss such information with business and will keep business informed as to the follow-up given to market access complaints. For this purpose, use shall be made of the different fora already established under the market access strategy both in Brussels and in Seoul.

With a view to ensuring a proper implementation of the Chapter on Trade and sustainable development, a Domestic Advisory Group shall be established. This group will include equal representation of business, trade unions and the non-governmental organisations. The Economic and Social Committee shall also be adequately represented. The particular modalities for the functioning of the group will be agreed with the stakeholders concerned.

5. Statement on special provisions on administrative cooperation

The Commission confirms the exceptional nature of the compromise wording of Article 2.17 "Special provisions on administrative cooperation" which does not represent a precedent for other bilateral or multilateral negotiations.

The Commission intends, in ongoing and future FTA negotiations, to favour anti-fraud provisions aimed at enforcing the correct application of tariff preferences by the partner country, by providing for the possible suspension of trade preferences in case of non-cooperation and/or fraud/irregularity.

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