On 26 and 27 August, intensive talks took place between the EU and Korea at working level.

　

　The delegations had the opportunity to exchange views on short term action to address the problem of deteriorating prices in the shipbuilding sector. During the consultation, the two parties were not able to bring their positions closer. The discussion focused on the price level and the other terms and conditions of an agreement.

　The EU delegation was rather disappointed about the preliminary proposal made by the Korean delegation. Concerning the terms and the conditions, the impression was that the agreement, if signed, could lead to renounce the agreement easily in six months time. Concerning the price level the Korean offer was am average of 10% below the level offered during the consultations on June 2001.

　

While the position of the two delegations are widening, the Commission remains open to try to find a workable solution by the end of September.

　

A further round of discussion is expected around mid September in Brussels.

　

Should these efforts fail, the EU has no option but to go to the WTO.