AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and the Republic of Belarus amending the Agreement between the European Community and the Republic of Belarus on trade in textile products

A. Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the negotiations held on 9 and 10 September 1999 between our respective Delegations with a view to renewing the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, as last amended and extended by the Agreement in the form of an Exchange of Letters initialled on 7 November 1995.

2. As a result of these negotiations, both Parties agreed to amend the following provisions of the Agreement:

2.1. Annex I which sets out the products referred to in Article 1 of the Agreement is replaced by Appendix 1 to this letter.

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community is replaced by Appendix 2 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community after OPT operations in the Republic of Belarus is replaced for the period of 1 January 2000 to 31 December 2003 by Appendix 3 to this letter.

2.4. The second and third sentences of Article 19(1), shall be replaced by the following text: "It shall be applicable until 31 December 2003."

2.5. Imports into Belarus of textile products from the Community shall be subject to the maximum rates of imports duties as set out in Appendix 4.

In the case of non-application of these rates the Community will have the right to reintroduce for the period of the Agreement remaining unexpired on a pro rata basis the levels for quantitative restrictions applicable for 1999 as specified in the Exchange of Letters initialled on 7 November 1995 with annual increases of these quantitative restrictions in accordance with the agreement.

3. Should the Republic of Belarus become a Member of the World Trade Organisation (WTO) before the date of expiry of the Agreement the restrictions in force shall be phased out in the framework of the WTO Agreement on textiles and clothing and Belarus' Protocol of accession to the WTO. In addition, the provisions of Articles 2, (2) and (3), 3, 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, Protocol A, B, and C, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2(17) of the WTO Agreement on textiles and clothing.

4. I should be obliged if you would kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an Exchange of Letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from ... on the conditions to be specified in an Excange of Notes (see Appendix 5).

Please accept, Sir, the assurance of my highest consideration.

For the Council of the European Union

Appendix 1

Annex I to the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, containing the category and goods descriptions for textile products, is replaced by Annex I to Regulation (EC) No 3030/93(1). It is understood that without prejudice to the rules for the interpretation of the Combined Nomenclature, the wording of the description of goods is considered to be of indicative value only, since the products covered by each category are determined, within that Annex by CN codes. Where there is an "ex" symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

(1) This Annex was last amended by Commission Regulation (EC) No 1072/1999 (OJ L 134, 28.5.1999, p.1).

Appendix 2

ANNEX II

>TABLE>

Appendix 3

ANNEX TO PROTOCOL C

>TABLE>

Appendix 4

Maximum rates of duties applicable for imports into the Republic of Belarus of textile products from the European Community

>TABLE>

Appendix 5

Exchange of notes

The Directorate-General for Trade of the Commission of the European Community presents its compliments to the Mission of the Republic of Belarus and has the honour to refer to the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 11 November 1999.

The Directorate-General for Trade wishes to inform the Mission of the Republic of Belarus that, whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the Agreement in the form of an Exchange of Letters, the European Community is prepared to allow the provisions of the Agreement to apply de facto from.... This is on the understanding that either Party may at any time terminate this de facto application of the Agreement in the form of an Exchange of Letters provided that four months notice is given.

The Directorate-General for Trade would be grateful if the Mission of the Republic of Belarus would confirm its agreement to the foregoing.

B. Letter from the Government of the Republic of Belarus

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"Sir,

1. I have the honour to refer to the negotiations held on 9 and 10 September 1999 between our respective Delegations with a view to renewing the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, as last amended and extended by the Agreement in the form of an Exchange of Letters initialled on 7 November 1995.

2. As a result of these negotiations, both Parties agreed to amend the following provisions of the Agreement:

2.1. Annex I which sets out the products referred to in Article 1 of the Agreement is replaced by Appendix 1 to this letter.

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community is replaced by Appendix 2 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community after OPT operations in the Republic of Belarus is replaced for the period of 1 January 2000 to 31 December 2003 by Appendix 3 to this letter.

2.4. The second and third sentences of Article 19(1), shall be replaced by the following text: 'It shall be applicable until 31 December 2003.'

2.5. Imports into Belarus of textile products from the Community shall be subject to the maximum rates of import duties as set out in Appendix 4.

In the case of non-application of these rates the Community will have the right to reintroduce for the period of the Agreement remaining unexpired on a pro rata basis the levels for quantitative restrictions applicable for 1999 as specified in the Exchange of Letters initialled on 7 November 1995 with annual increases of these quantitative restrictions in accordance with the agreement.

3. Should the Republic of Belarus become a Member of the World Trade Organisations (WTO) before the date of expiry of the Agreement the restrictions in force shall be phased out in the framework of the WTO Agreement on Textiles and Clothing and Belarus' Protocol of accession to the WTO. In addition, the provisions of Articles 2, (2) and (3), 3, 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, Protocol A, B, and C, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2(17) of the WTO Agreement on textiles and clothing.

4. I should be obliged if you would kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this Agreement in the form of an Exchange of Letters shall enter into force on the first day of the month following the day on which the Parties have notified each other that the legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from ... on the conditions to be specified in an Exchange of Notes (see Appendix 5).

Please accept, Sir, the assurance of my highest consideration."

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Republic of Belarus