Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part - Main contents

Document date	20-08-2010
Publication date	01-11-2013
Reference	8530/10 ADD 17
External link	original article
Original document in PDF

COUNCIL OF Brussels, 20 August 2010

THE EUROPEAN UNION (OR. en)

8530/10

Interinstitutional File: ADD 17

2010/0075 (NLE)

WTO 114 SERVICES 21 COMER 63 COASI 69

LEGISLATIVE ACTS AND OTHER INSTRUMENTS

Subject: Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part

8530/10 ADD 17 UH/hc

ANNEX 7-B

MFN TREATMENT EXEMPTION

• 1. 

  For the purposes of Articles 7.8.2 and 7.14.2, to be of a significantly higher level, obligations

  stipulated in a regional economic integration agreement shall either create an internal market

  on services and establishment 1 or encompass both the right of establishment and the

  approximation of legislation. The evaluation of the level of the obligations shall be conducted

  on the basis of sectoral or horizontal commitments.

  (a) The right of establishment referred to in this paragraph means an obligation to abolish

  in substance all barriers to establishment among the parties to the regional economic

integration agreement by the entry into force of that agreement. The right of

establishment shall include the right of nationals of the parties to the regional economic

integration agreement to set up and manage undertakings under the conditions laid

down for nationals by the legislation of the country where such establishment

is effected.

1 An internal market on services and establishment means an area without internal frontiers in

which the free movement of services, capital and persons is ensured. For greater certainty, the European Economic Area (EEA) is the only internal market with third countries of the European Union at the time of signature of this Agreement.

EU/KR/ANNEX 7-B/en 1

(b) The approximation of legislation referred to in this paragraph means:

(i) the alignment of the legislation of one or more of the parties to the regional

economic integration agreement with the legislation of the other party or parties to

that agreement; or

(ii) the incorporation of common legislation into the legal order of the parties to the

regional economic integration agreement. Such alignment or incorporation shall

be taking place, and is deemed to take place only from such time that it has been

enacted into the domestic legal order of the party or parties to the regional

economic integration agreement.

• 2. 

  The Parties shall notify the Committee referred to in Article 7.3 of any regional economic

integration agreement which fulfils the conditions of Articles 7.8.2 and 7.14.2. Such a

notification shall be made in writing within 60 days of the signature of the regional economic

integration agreement.

• 3. 

  Upon the request of a Party, and further to the notification mentioned in paragraph 2 of this

Annex, the Parties shall discuss and review, at the Committee or in separate consultations, the

conformity of the regional economic integration agreement with the conditions of

Articles 7.8.2 and 7.14.2 and this Annex.

_______________

EU/KR/ANNEX 7-B/en 2

ANNEX 7-C

LIST OF MFN EXEMPTIONS

EU PARTY

EU/KR/ANNEX 7-C/en 1

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 1. 

  All sectors The European Union reserves the All countries Indefinite To protect differential treatment deriving right to adopt or maintain any from ratchet clauses.

  measure that accords differential treatment to countries deriving from a specific provision found in economic integration agreements to which the European Union is a Party and according to which the European Union may amend any measure only to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with obligations on market access, national treatment and most-favoured-nation in these economic integration agreements.

EU/KR/ANNEX 7-C/en 2

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 2. 

  Road Transport In Romania, the permission for Austria, Albania, Belgium, Indefinite The need for the exemption is linked to vehicles registered in the countries Bulgaria, Czech Republic, the regional specificity of the

  indicated in column 3) to transport Cyprus, Croatia, Denmark, cross-border provision of road goods and/or passengers is in Switzerland, Latvia, transport services. accordance with existing or future Lithuania, France, bilateral road agreements. Road Finland, Italy, Iran, cabotage is reserved for domestic Germany, Greece, registered vehicles. Luxembourg, Great Britain, Norway, Netherlands, Poland, Portugal, Spain, Sweden, Slovakia, Syria, Slovenia, Turkey, Hungary, and possibly other countries in the future.

EU/KR/ANNEX 7-C/en 3

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 3. 

  Rail Transport Measures that are taken under All countries with which Indefinite To protect the integrity of rail transport

• - 

  Passenger and Freight existing or future agreements, and agreements are or will be infrastructure and the environment, and which regulate traffic rights and in force. to regulate traffic rights in the territory

  operating conditions, and the of the Czech Republic and Slovakia and provision of transport services in between the countries concerned.

  the territory of Bulgaria, Czech Republic and Slovakia and between the countries concerned.

EU/KR/ANNEX 7-C/en 4

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption

and 7.14

• 4. 

  Road Transport Provisions in existing or future Switzerland, states in Indefinite The need for exemption is linked to the

• - 

  Passenger and Freight agreements on international road Central, Eastern and regional characteristics of the haulage (including combined South-Eastern Europe and cross-border provision of road

  transport - road/rail) and passenger all members of the transport services. transport, concluded between the Commonwealth of Community/European Union or the Independent States, Member States and third Albania, Turkey, Lebanon, countries, which: Israel, Syria, Jordan,

  (a) reserve or limit the Egypt, Tunisia, Algeria, provision of transport service Morocco, Iran, between the contracting parties or Afghanistan, Iraq, across the territory of the and Kuwait.

  contracting parties to vehicles registered in each contracting

  1

  party ; or

  (b) provide for tax exemption for such vehicles.

1 With regard to Austria the part of the MFN exemption regarding traffic rights covers all countries with whom bilateral agreements on road

transport or other arrangements relating to road transport exist or may be desirable.

EU/KR/ANNEX 7-C/en 5

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 5. 

  Road Transport Measures that are taken under All countries with which Indefinite To protect the integrity of road transport

• - 

  Passenger and Freight existing or future agreements, and agreements are or will be infrastructure and the environment, and which reserve or limit the provision in force. to regulate traffic rights in the territory

  of transport services and specify of the Czech Republic and between the operating conditions, including countries concerned. transit permits and/or preferential road taxes of a transport services into, in, across and out of the Czech Republic to the contracting parties concerned.

• 6. 

  Road Transport Provisions in existing or future All countries with which Indefinite Regional specificity of the road transport

• - 

  Passenger and Freight reciprocal bilateral and plurilateral bilateral or plurilateral services. agreements on international road agreements are in force.

  transport (including combined transport, road and rail) reserving cabotage transport in Finland.

EU/KR/ANNEX 7-C/en 6

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 7. 

  Road Transport VAT exemption in Austria is Successor states of former Indefinite Reciprocity; and facilitating of the

• - 

  Passenger and Freight limited to international passenger Yugoslavia, Switzerland, development of international touring. transport carried out by foreign and successor states of the

  entrepreneurs by means of motor former USSR (with the vehicles registered in the countries exception of the Baltic indicated in column 3). States, Azerbaijan, Georgia, Moldova and Uzbekistan).

• 8. 

  Road Transport Exemption from vehicle tax in Israel, Monaco, San Indefinite Reciprocity; and facilitating of the

• - 

  Passenger and Freight Austria under certain conditions on Marino, Turkey, Vatican development of international touring the grounds of de facto reciprocity, City, and United States. and/or international transport of goods.

  limited to vehicles registered in the countries indicated in column 3).

• 9. 

  Road Transport Measures that are taken under All countries with which Indefinite To protect the transport infrastructure

• - 

  Passenger and Freight bilateral agreements and which set agreements are or will be and the environment, and to regulate the provisions for transport services in force traffic rights in the territory of Lithuania

  and specify operating conditions, and between countries concerned. including bilateral transit and other transport permits for transport services into, through and out of the territory of Lithuania to the contracting parties concerned, and road taxes and levies.

EU/KR/ANNEX 7-C/en 7

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 10. 

  Road Transport Measures taken under existing or All countries with which Indefinite Protection of the integrity of the

• - 

  Passenger and Freight future agreements which reserve agreements are or will be infrastructure, as well as environmental and/or restrict the supply of these in force. protection, and regulation of traffic

  kinds of transportation services and rights in the territory of Bulgaria and specify the terms and conditions of between the countries concerned. this supply, including transit permits and/or preferential road taxes, in the territory of Bulgaria or across the borders of Bulgaria.

• 11. 

  All Passenger and Poland: a reciprocity requirement All countries Indefinite System of existing and future reciprocal Freight Transport concerning supply of transport agreements on transport cooperation (or Services excluding services by suppliers of countries of similar character), and promotion and Maritime Transport concerned, in, into and across the protection of foreign investments,

  territory of such countries. implementing, inter alia, transportation quotas resulting from bilaterally agreed system of permits.

EU/KR/ANNEX 7-C/en 8

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 12. 

  Road Transport Measures that are taken under All countries with which Indefinite To protect the integrity of road transport

• - 

  Passenger and Freight existing or future agreements, and agreements are or will be infrastructure and the environment, and which reserve or limit the provision in force. to regulate traffic rights in the territory

  of transport services and specify of Slovakia and between the countries operating conditions, including concerned. transit permits and/or preferential road taxes of a transport services into, in, across and out of Slovakia to the contracting parties concerned.

• 13. 

  Road Transport Authorisation for the establishment All countries Indefinite Need to ensure effective market access

• - 

  Freight (CPC 7123) of a commercial presence in Spain and equivalent treatment for Spanish may be refused to service suppliers, service suppliers.

  whose country of origin does not accord effective market access to Spanish service suppliers.

EU/KR/ANNEX 7-C/en 9

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption

and 7.14

• 14. 

  Auxiliary Air The right to adopt or maintain any All countries Indefinite Needed to protect existing and future Transport Services measure that accords differential international agreements.

(a) aircraft repair and treatment to countries under any maintenance services international agreement in force or during which an signed after the date of entry into aircraft is withdrawn force of this Agreement.

from service;

(b) the selling and marketing of air transport services;

(c) computer reservation system

(CRS) services; and

(d) other services auxiliary to air transport services, such as ground-handling services, rental service of aircraft with crew, and airport management services

EU/KR/ANNEX 7-C/en 10

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 15. 

  CRS and Sales and Provisions of Article 7 of All countries where a CRS Indefinite The need for the exemption results from Marketing of Air Regulation (EEC) No 2299/89 i, as system vendor or a parent the insufficient development of Transport Services amended by Regulation (EEC) No air carrier is located. multilaterally agreed rules for the

  3089/93, whereby the obligations operation of CRS. of CRS system vendors or of parent and participating air carriers shall not apply to CRS system vendors or parent and participating air carriers of countries where treatment equivalent to that applied under the Regulation is not accorded to EU Party CRS system vendors or parent and participating air carriers in the countries.

• 16. 

  Cargo-Handling The right to supply these kinds of All countries Indefinite The aim of the application of such a

Services and Storage services is granted by Bulgaria measure is to guarantee equal access to and Warehouse upon a reciprocity basis and under the market of other countries for Services in Sea and bilateral agreements with the Bulgarian suppliers of such kinds River Harbours, countries concerned. of services

Including Services

Relating to Containers and Goods in Containers

EU/KR/ANNEX 7-C/en 11

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption

and 7.14

• 17. 

  Internal Waterways Measures based upon existing or Switzerland, States in Indefinite. To regulate transport capacity on inland Transport future agreements on access to Central, Eastern and

  inland waterways (including South-Eastern Europe and Exemption needed

  waterways, taking into account

  agreements following the Rhineall members of the for certain countries

  geographic specificity.

  Main-Danube link), which reserve Commonwealth of only until an traffic rights for operators based in Independent States. economic integration the countries concerned and agreement is meeting nationality criteria concluded regarding ownership. or completed.

• 18. 

  Internal Waterways Regulations implementing the Switzerland Indefinite To regulate transport capacity on inland Transport Mannheim Convention on waterways, taking into account

  Rhine Shipping. 2 geographic specificity.

2 The following Member States of the European Union are covered by this MFN exemption: Belgium, Denmark, France, Germany, Greece,

Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and United Kingdom.

EU/KR/ANNEX 7-C/en 12

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 19. 

  Inland In Austria: Successor states of former Indefinite; and the Historical development; and specific

Waterways Transport (a) Certain traffic rights are Yugoslavia, and successor exemption applies to regional aspects

• - 

  Passenger and Freight reserved for vessels of the countries states of former USSR. existing and indicated in column 3) (nationality new measures.

  requirements regarding ownership); and

  (b) Certificates and licences of the countries indicated in column 3) are recognised.

• 20. 

  Internal Waterways Measures that are taken under All countries with which Indefinite To protect the integrity of infrastructure

• - 

  Passenger and Freight existing or future agreements and agreements are or will be and the environment, and to regulate which reserve the access to and in force. traffic rights in Slovakia.

  traffic rights in internal waterways of Slovakia to foreign operators.

• 21. 

  Maritime Transport Measures concerning the Unspecified Indefinite International agreements in the context establishment, activities and of overall trade relations.

  operations of shipping companies beyond the commitment

  undertaken by Korea in Annex 7-A.

EU/KR/ANNEX 7-C/en 13

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 22. 

  Maritime Transport Existing or future reciprocal All countries Indefinite Regional specificity of the maritime

• - 

  Cabotage measures taken by Finland cabotage transport. exempting vessels registered under

  the foreign flag of a specified other country from the general prohibition to operate cabotage transport in Finland.

• 23. 

  Maritime Transport Reciprocal measures taken by All countries with which Indefinite To regulate cabotage traffic based on Sweden based upon existing or bilateral or plurilateral reciprocal agreements.

  future agreements exempting agreements are in force. vessels registered under the foreign flag of the countries indicated in column 3) from the general prohibition to operate cabotage traffic in Sweden.

• 24. 

  Rental/Leasing Chartering-in of foreign ships by All countries Indefinite Need to ensure effective market access Services without consumers resident in Germany and equivalent treatment for German Operators, relating to may be subject to a condition service suppliers.

Ships (CPC 83103) of reciprocity.

Rental of Vessels with Crew

(CPC 7213, 7223)

EU/KR/ANNEX 7-C/en 14

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 25. 

  Fisheries The European Union reserves the All countries Indefinite Needed to protect existing and future right to adopt or maintain any bilateral and plurilateral

  measure that accords differential international agreements. treatment to countries under any bilateral or plurilateral international agreement involving fisheries in force or signed after the date of entry into force of this Agreement.

• 26. 

  Fishing and Preferential treatment - in the area All countries Indeterminate Cooperation concerning the conservation Fishing-related of fisheries jurisdiction of countries of fisheries and fishing based on the Services involved - to the services and practice as well as existing and future

  service providers from countries agreements, particularly in the Baltic Sea

  with which Poland has favourable basin.

  fishery relations, in accordance

  with the international conservation

  practices and polices or agreements

  on fisheries, particularly in the

  Baltic Sea basin.

• 27. 

  Legal Services Attorneys from foreign countries All countries with which Indefinite Need to ensure an ability to control the can act as advocates in court in agreements are or will be legality and responsibility.

  Lithuania only in accordance with in force. bilateral agreements on

  legal assistance.

EU/KR/ANNEX 7-C/en 15

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 28. 

  Legal Services In Bulgaria, full national treatment Countries with which Indefinite Obligations under on the establishment and operation preferential arrangements international agreements. of companies, as well as on the are or will be concluded.

  provision of services, may be extended only to companies established in, and citizens of, the countries indicated in column 3.

• 29. 

  Human Provision for Cypriot citizens of All countries with whom Indefinite The measure is necessary due to the

Health Services medical treatment, not available in medical cooperation might existence of, or possible future signing of Cyprus, in selected countries with be desirable. new, bilateral agreements between

which bilateral agreements have Cyprus and third countries with whom been signed or will be signed in Cyprus has geographical proximity or the future. other special links.

• 30. 

  Medical and Public medical insurance, Countries with which such Indefinite Obligations under

Dental Services subsidisation and compensation bilateral agreements are or international agreements. plans and programs, which cover will be concluded.

the cost and expenses relating to medical and dental services provided for foreign citizens in the territory of Bulgaria, are granted on the basis of reciprocity in the framework of bilateral agreements.

EU/KR/ANNEX 7-C/en 16

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 31. 

  Public Social Provisions of bilateral agreements Australia, Egypt, Canada, Indefinite To enable persons who are or become

Security Services on social security concluded Province of Quebec, and subject to the social security legislation between Cyprus and any country with whom an of the contracting parties to maintain

certain countries. agreement may be their social security rights if they move concluded in the future. from one country to another, or to

acquire such rights.

These agreements which provide, inter alia, for totalizing periods of insurance or residence in the contracting parties for purposes of eligibility for benefits are concluded between Cyprus and countries with whom there is movement of labour.

• 32. 

  Publishing Foreign participation in companies All countries Indefinite Need to ensure effective market access

(Part of CPC 88442) in Italy exceeding 49% of the and equivalent treatment for Italian capital and voting rights in the service suppliers.

companies, subject to a condition of reciprocity.

• 33. 

  News Foreign participation in companies All countries Indefinite Need to ensure effective market access Agency Services in France publishing publications in and equivalent treatment for French

(Part of CPC 962) the French language exceeding 20% service suppliers. of the capital or of voting rights in

the companies, subject to a condition of reciprocity.

EU/KR/ANNEX 7-C/en 17

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 34. 

  Press Market access in France. Subject to All countries Indefinite Need to ensure effective market access Agency Services a condition of reciprocity. and equivalent treatment for French

(Part of CPC 962) service suppliers.

• 35. 

  Purchase of Land According to the Constitution of the All countries determined Indefinite Desire to create more favourable

  Republic of Lithuania local by the constitutional law: conditions for greater economic

  governments (municipalities), other Member-states of OECD 3 , cooperation between Lithuania and the

  national entities as well as foreign 3 NATO and associated countries concerned.

  entities from the countries indicated countries of EU. under column 3), conducting economic activities in Lithuania which are specified by the constitutional law in compliance with the criteria of European and other integration which Lithuania has embarked on are permitted to acquire, into their ownership, non-agricultural land plots required for the construction and operation of buildings and facilities necessary for their direct activities. The land plot acquisition procedure, terms and conditions, as well as restrictions shall be established by the constitutional law.

EU/KR/ANNEX 7-C/en 18

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 36. 

  Tourist In Lithuania, tourist guides from All countries with which Indefinite Preservation and promotion of the

Guides Services foreign countries can provide agreements (or contracts) cultural identity. tourist guides services only in are or will be in force.

accordance with bilateral agreements (or contracts) on tourist guides services assistance on a reciprocity basis.

• 37. 

  All sectors Cyprus: EFTA countries Indefinite A gradual liberalisation of commercial

  Waiving of limitations to market presence. Bilateral agreements relating to

  access and national treatment in the the mutual protection and promotion of

  area of commercial presence, investments with some of the EFTA

  including the movement of capital, countries are under preparation.

  with respect to the countries indicated under column 3).

EU/KR/ANNEX 7-C/en 19

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption

and 7.14

• 38. 

  All sectors Measures taken by Denmark, Iceland and Norway Indefinite To maintain and develop Sweden and Finland aimed at Nordic cooperation.

  promoting Nordic cooperation, such as:

  (a) financial support to R&D projects (the Nordic

  Industrial Fund);

  (b) funding of feasibility studies for international projects (the Nordic Fund for Project Exports); and

  (c) financial assistance to

  companies 4 utilizing environmental

  technology (the Nordic Environment Finance Corporation).

4 Applies to East European companies, which are cooperating with one or more Nordic companies.

EU/KR/ANNEX 7-C/en 20

Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption and 7.14

• 39. 

  All sectors Poland: All countries Indeterminate Reciprocal provisions of existing and

  Commercial presence notions, future agreements

  which go beyond limitations for Poland embodied in Annex 7-A, contained in:

  (a) commerce and navigation treaties;

  (b) business and economic relation treaties; and

  (c) promotion and protection of foreign investment agreements.

• 40. 

  All sectors Poland accepts compulsory All countries Indeterminate Promotion and protection of foreign arbitration of investor-state investment. investment disputes brought by or in respect of service suppliers of countries with which Poland has or will have agreements providing for such procedure.

  EU/KR/ANNEX 7-C/en 21

  Sector or sub-sector Description of measure indicating Countries to which the Intended duration Conditions creating the need for its inconsistency with Articles 7.8 measure applies the exemption

  and 7.14

  • 41. 

    All sectors Authorisation for purchase of real All countries Indefinite The reciprocity requirement is necessary estate in Italy by foreign natural to ensure equivalent treatment for

    persons and juridical persons Italians in other countries. granted on a reciprocity basis.

  • 42. 

    All sectors Waiver of nationality requirements Countries of Portuguese Indefinite This measure reflects historical links for the exercise, in Portugal, of official language (Angola, between Portugal and these countries. certain activities and professions by Brazil, Cape Verde,

    natural persons supplying services Guinea-Bissau, from the countries indicated in Mozambique and São column 3). Tomé & Principe).

  • 43. 

    All sectors Measures based on existing or San Marino, Monaco, Indefinite The geographical situation and future bilateral agreements between Andorra, and Vatican City historical, economic and cultural links certain Member States of the State. between the Member States of the

    European Union 5 and the countries European Union and the countries and

    and principalities concerned, principalities concerned. providing for the right of

    establishment for natural and juridical persons.

5 The following Member States are covered: Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal,

Spain and United Kingdom.

EU/KR/ANNEX 7-C/en 22

KOREA

Sector or Sub-Sector Description of Measure Indicating its Inconsistency with MFN

• 1. 

  All Sectors Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement signed after the date of entry into force of this

  Agreement involving:

  (a) fisheries; or

(b) maritime matters, including salvage.

• 2. 

  All Sectors Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries deriving from a specific provision found in economic integration agreements to which Korea is a Party and according to which Korea may amend any measure only to the extent that the

  amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with obligations on market access, national treatment and most-favoured-nation in these economic integration agreements.

EU/KR/ANNEX 7-C/en 23

Sector or Sub-Sector Description of Measure Indicating its Inconsistency with MFN

• 3. 

  Auxiliary Air Transport Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

(a) aircraft repair and maintenance services during which countries under any international agreement involving auxiliary air transport services signed after the an aircraft is withdrawn from service; date of entry into force of this Agreement.

(b) the selling and marketing of air transport services;

(c) computer reservation system (CRS) services; and

(d) other services auxiliary to air transport services, such as ground-handling services, rental service of aircraft with crew, and airport management services

• 4. 

  Disadvantaged Groups Korea reserves the right to adopt or maintain any measure that accords rights or preferences to socially or economically disadvantaged groups, such as the disabled, persons who have rendered distinguished services to the state, and ethnic minorities.

• 5. 

  Social Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for public purposes: income security or insurance, social security or insurance, social welfare, public training, health, and child care.

• 6. 

  Communication Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Broadcasting Services persons of other countries due to the application of reciprocity measures or through international agreements involving sharing of the radio spectrum, guaranteeing market access, or national treatment

  with respect to the one-way satellite transmission of direct-to-home (DTH) and direct broadcasting satellite (DBS) television services and digital audio services.

EU/KR/ANNEX 7-C/en 24

Sector or Sub-Sector Description of Measure Indicating its Inconsistency with MFN

• 7. 

  Transportation Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Railroad Transportation countries under any international agreement involving railroad transportation signed after the date of entry into force of this Agreement.

• 8. 

  Transportation Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Passenger Road Transportation Services persons of other countries with respect to taxi services and scheduled passenger road transportation services.

(Taxi Services and Scheduled Passenger Road

Transportation Services)

• 9. 

  Transportation Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Freight Road Transportation Services persons of other countries with respect to freight road transportation services, not including road transportation of containerized freight (excluding cabotage) by international shipping companies and

(not including Road Transportation Services Related to road transportation services related to courier services.

Courier Services)

• 10. 

  Transportation Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Internal Waterways Transportation Services and Space persons of other countries with respect to internal waterways transportation services and space

Transportation Services transportation services.

EU/KR/ANNEX 7-C/en 25

Sector or Sub-Sector Description of Measure Indicating its Inconsistency with MFN

• 11. 

  Education Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Pre-Primary, Primary, Secondary, Higher, and persons of other countries with respect to pre-primary, primary, and secondary education; health and

Other Education medicine-related higher education; higher education for prospective pre-primary, primary, and secondary teachers; professional graduate education in law; distance education at all education levels

(except adult education services, provided that such services do not confer academic credit, diplomas,

or degrees); and other education services.

This entry does not apply to the administration of educational testing for foreign use. For greater certainty, nothing in this Agreement affects Korea's authority to select and apply educational testings, or to regulate school curriculum in accordance with domestic education policy.

• 12. 

  Social Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Human Health Services persons of other countries with respect to human health services.

  This entry shall not apply to the preferential measures provided in the Act on Designation and Management of Free Economic Zones (Law No. 9216, December 26, 2008), and the Special Act on Establishment of Jeju Special Self-Governing Province and Creation of Free International City (Law No.9526, March 25, 2009) relating to establishment of medical facilities, pharmacies, and similar facilities, and the supply of remote medical services to those geographical areas specified in those Acts.

• 13. 

  Recreational, Cultural, and Sporting Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Motion Picture Promotion, Advertising, or Postpersons of other countries with respect to motion picture promotion, advertising, or

Production Services post-production services.

EU/KR/ANNEX 7-C/en 26

Sector or Sub-Sector Description of Measure Indicating its Inconsistency with MFN

• 14. 

  Transportation Services Korea reserves the right to adopt or maintain any measure that accords differential treatment to

• - 

  Maritime Passenger Transportation and persons of other countries with respect to the provision of international maritime passenger

Maritime Cabotage transportation services, maritime cabotage, and the operation of Korean vessels, including the following measures:

A person that supplies international maritime passenger transportation services must obtain a license from the Minister of Land, Transport and Maritime Affairs, which is subject to an economic needs test.

Maritime cabotage is reserved for Korean vessels. Maritime cabotage includes maritime transportation between harbors located along the entire Korean peninsula and any adjacent islands. Korean vessel means:

(a) a vessel owned by the Korean government, a state enterprise, or an institution established under the

Ministry of Land, Transport and Maritime Affairs;

(b) a vessel owned by a Korean national;

(c) a vessel owned by an enterprise organised under the Korean Commercial Code;

a vessel owned by an enterprise organised under foreign law that has its principal office in Korea and whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a Korean national. In the event there is more than one, all dae-pyo-ja must be Korean nationals.

_______________

EU/KR/ANNEX 7-C/en 27

ANNEX 7-D

THE ADDITIONAL COMMITMENT ON FINANCIAL SERVICES

Transfer of information

• 1. 

  The Parties recognise the importance of the cross-border transfer of information by financial

service suppliers. Korea has expressed its intent to undertake modification to its regulatory

regime that will result in its adoption of approaches that will permit the transfer of financial

information across borders while addressing such areas as the protection of sensitive

information of consumers, prohibitions on unauthorised reuse of the sensitive information, the

ability of financial regulators to have access to records of financial service suppliers relating

to the handling of such information, and requirements for the location of

technology facilities 1 .

Performance of functions

• 2. 

  The Parties recognise the benefits of allowing a financial service supplier in a Party's territory

  to perform certain functions at its head office or affiliates located inside or outside the Party's

territory. To the extent practicable, each Party should allow such an office or affiliate to

perform these functions which generally include, but are not limited to:

1 This includes, in particular, the transfer of information for the purpose of compliance with

transparency and reporting requirements of financial services suppliers with regard to financial regulators of their home country.

EU/KR/ANNEX 7-D/en 1

(a) trade and transaction processing functions, including confirmation and

statement production;

(b) technology-related functions, such as data processing 2 , programming and system

development;

(c) administrative services, including procurement, travel arrangements, mailing services,

physical security, office space management and secretarial services;

(d) human resource activities, including training and education;

(e) accounting functions, including bank reconciliation, budgeting, payroll, tax, account

reconciliation and customer and proprietary accounting; and

(f) legal functions, including the provision of advice and litigation strategy.

• 3. 

  Nothing in paragraph 2 prevents a Party from requiring a financial service supplier located in

  its territory to retain certain functions.

• 4. 

  For greater certainty, a financial service supplier located in the territory of a Party retains

ultimate responsibility for compliance with requirements applicable to those functions

performed by its head office or affiliate.

2 To the extent that a Party is obligated under Article 7.43 to allow the transfer of information

outside its territory, that Party shall also allow data processing of that information after the transfer.

EU/KR/ANNEX 7-D/en 2

Supply of insurance by the postal services to the public

• 5. 

  The regulation of insurance services supplied by a Party's postal service supplier to the public

  should not accord to the Party's postal service supplier a competitive advantage over private

  service suppliers of like insurance services in the territory of the Party.

• 6. 

  To this end, Korea should, to the extent practicable, provide that the Financial Services

Commission (hereinafter referred to as the "FSC") exercise regulatory oversight over the

insurance underwriting services supplied by Korea Post to the public and that those services

be subject to the same rules applicable to private suppliers supplying like insurance

underwriting services in its territory 3 .

Sectoral cooperatives selling insurance

• 7. 

  The regulation of insurance services supplied by a sectoral cooperative should not provide the

  cooperative a competitive advantage over private suppliers of like insurance services. To the

  extent practicable, a Party should apply the same rules to services supplied by such

  cooperatives that it applies to like services supplied by private insurers.

3 This commitment shall also apply to the European Union in case the postal service supplier of

any jurisdiction of a Member State of the European Union engages in insurance underwriting services in its territory.

EU/KR/ANNEX 7-D/en 3

• 8. 

  To this end, the FSC should exercise regulatory oversight over services supplied by sectoral

  cooperatives. At a minimum, Korea shall provide that no later than three years after the entry

into force of this Agreement, solvency matters related to the sale of insurance by the National

Agricultural Cooperative Federation, the National Federation of Fisheries Cooperatives, the

Korea Federation of Community Credit Cooperatives and the National Credit Union

Federation of Korea shall be subject to regulation by the FSC.

Self-Regulatory Organisations

• 9. 

  The Korea Insurance Development Institute is subject to the discipline of Article 7.40. This

  confirmation is without prejudice to the status of any other organisation in this or any other

  financial services sub-sector.

• 10. 

  For greater certainty, if each Party's financial regulatory authority delegates a function related

  to insurance to a self-regulatory organisation or other non-governmental body, the authority

shall take reasonable steps to ensure compliance with Article 7.39 (Transparency) and

Article 7.23.2 (Domestic Regulation) with regard to any actions taken by the organisation or

other non-governmental body pursuant to the delegated function.

_______________

EU/KR/ANNEX 7-D/en 4