AGREEMENT in the form of an exchange of letters between the European Community and Malaysia amending the Agreement between the European Economic Community and Malaysia on trade in textile products to take into account the expected accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the Agreement between the European Economic Community and Malaysia on trade in textile products initialled on 28 June 1986, as last amended and extended by the exchange of letters initialled on 3 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Agreement between the European Economic Community and Malaysia on trade in textile products:

2.1. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of Malaysia and the European Community to the WTO, Appendix I sets out the notional quantitative restrictions for the enlarged Community to be considered, for the purposes of the notification to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships Annex II of the Agreement which sets out the quantitative restrictions for exports from Malaysia to the European Union is replaced for the period 1 January to 31 December 1995 by Appendix II to this letter.

2.2. Article 13, paragraph 2, subparagraph 2, second indent of Protocol A, Title III, Section II should be amended as follows:

'- two letters identifying the intended Member State of customs clearance as follows:

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden`

2.3. The Annex of Protocol A, setting out the model of the certificate of origin is replaced by Appendix III to this letter.

2.4. The Annex to Protocol A setting out the model of the export licence is replaced by Appendix IV to this letter.

2.5. The Annex to Protocol B setting out the model of the certificate applicable to certain cottage industry and folklore products is replaced by Appendix V to this letter.

2.6. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of Malaysia and the European Community to the WTO, Appendix VI sets out the notional quantitative restrictions for economic outward processing operations for the enlarged Community to be considered, for the purposes of notification to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships the Annex to Protocol E of the Agreement which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January to 31 December 1995 by Appendix VII to this letter.

2.7. Should one or more acceding countries not join the European Union the adjustments calculated for this or these countries shall be deducted from the 'Adjusted limits` set out in the Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of Malaysia shall be authorized to continue issuing the forms that were in use in 1994.

2.9. Should inaccuracies appear in the trade figures used to establish the adjustments contained in Appendices I, II, VI and VII, technical revisions of these adjustments will be made.

3. I should be obliged if you could 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 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VIII).

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

For the Council of the European Union

Appendix I

NOTIONAL COMMUNITY QUANTITATIVE LIMITS 1994 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 28 June 1986 remain unchanged.

Appendix II

ANNEX II

COMMUNITY QUANTITATIVE LIMITS 1995 Direct quotas

>

TABLE POSITION>

The footnotes to Annex II of the Agreement as initialled on 28 June 1986 remain unchanged.

Appendix III

>REFERENCE TO A FILM>

Appendix IV

>REFERENCE TO A FILM>

Appendix V

>REFERENCE TO A FILM>

Appendix VI

NOTIONAL OUTWARD PROCESSING TRAFFIC QUOTAS 1994

>TABLE>

Appendix VII

ANNEX TO PROTOCOL E

Outward processing traffic quotas 1995

>

TABLE POSITION>

Appendix VIII

Exchange of notes

The Directorate-General for External Economic Relations of the Commission of the European Communities presents its compliments to the Mission of Malaysia and has the honour to refer to the Agreement on trade in textile products between Malaysia and the European Economic Community initialled on 28 June 1986, as amended and extended by the exchange of letters initialled on 3 December 1992 and further amended by the exchange of letters initialled on 10 January 1995.

The Directorate-General wishes to inform Malaysia that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Directorate-General for External Economic Relations would be grateful if the Mission of Malaysia would confirm its agreement to the foregoing.

The Directorate-General for External Economic Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of Malaysia the assurance of its highest consideration.

Letter from the Government of Malaysia

Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir,

1. I have the honour to refer to the Agreement between the European Economic Community and Malaysia on trade in textile products initialled on 28 June 1986, as last amended and extended by the exchange of letters initialled on 3 December 1992.

2. In order to take into account the likely accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the European Community considers that the following amendments should be made to the Agreement between the European Economic Community and Malaysia on trade in textile products:

2.1. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of Malaysia and the European Community to the WTO, Appendix I sets out the notional quantitative restrictions for the enlarged Community to be considered, for the purposes of the notification to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships Annex II of the Agreement which sets out the quantitative restrictions for exports from Malaysia to the European Union is replaced for the period 1 January to 31 December 1995 by Appendix II to this letter.

2.2. Article 13, paragraph 2, subparagraph 2, second indent of Protocol A, Title III, Section II should be amended as follows:

"- two letters identifying the intended Member State of customs clearance as follows:

AT = Austria

BL = Benelux

DE = Federal Republic of Germany

DK = Denmark

EL = Greece

ES = Spain

FI = Finland

FR = France

GB = United Kingdom

IE = Ireland

IT = Italy

PT = Portugal

SE = Sweden"

2.3. The Annex of Protocol A, setting out the model of the certificate of origin is replaced by Appendix III to this letter.

2.4. The Annex to Protocol A setting out the model of the export licence is replaced by Appendix IV to this letter.

2.5. The Annex to Protocol B setting out the model of the certificate applicable to certain cottage industry and folklore products is replaced by Appendix V to this letter.

2.6. Should the Uruguay Round Agreement on Textiles and Clothing become applicable in our relationships, as a consequence of the accession of Malaysia and the European Community to the WTO, Appendix VI sets out the notional quantitative restrictions for economic outward processing operations for the enlarged Community to be considered, for the purposes of notification to the Textiles Monitoring Body, as those maintained by the enlarged Community and in force before the day of entry into force of the Uruguay Round Agreement on Textiles and Clothing, within the meaning of Article 2 of the Uruguay Round Agreement on Textiles and Clothing.

Should the Uruguay Round Agreement on Textiles and Clothing not become applicable in our relationships the Annex to Protocol E of the Agreement which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January to 31 December 1995 by Appendix VII to this letter.

2.7. Should one or more acceding countries not join the European Union the adjustments calculated for this or these countries shall be deducted from the "Adjusted limits" set out in the Appendices to this letter and the respective amendments mentioned under point 2.2 shall not enter into force.

2.8. Notwithstanding the modifications referred to under points 2.3, 2.4 and 2.5, during a transitional period that will end on 30 June 1995, the competent authorities of Malaysia shall be authorized to continue issuing the forms that were in use in 1994.

2.9. Should inaccuracies appear in the trade figures used to establish the adjustments contained in Appendices I, II, VI and VII, technical revisions of these adjustments will be made.

3. I should be obliged if you could 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 1 January 1995 on the conditions to be specified in an exchange of notes (see Appendix VIII).

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 Malaysia

Appendix I

NOTIONAL COMMUNITY QUANTITATIVE LIMITS 1994 Direct quotas

>TABLE>

The footnotes to Annex II of the Agreement as initialled on 28 June 1986 remain unchanged.

Appendix II

ANNEX II

COMMUNITY QUANTITATIVE LIMITS 1995 Direct quotas

>

TABLE POSITION>

The footnotes to Annex II of the Agreement as initialled on 28 June 1986 remain unchanged.

Appendix III

>REFERENCE TO A FILM>

Appendix IV

>REFERENCE TO A FILM>

Appendix V

>REFERENCE TO A FILM>

Appendix VI

NOTIONAL OUTWARD PROCESSING TRAFFIC QUOTAS 1994

>TABLE>

Appendix VII

ANNEX TO PROTOCOL E

Outward processing traffic quotas 1995

>

TABLE POSITION>

Appendix VIII

Exchange of notes

The Mission of Malaysia presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the Note of the Directorate-General of 25 November 1994 regarding the Agreement on trade in textile products between Malaysia and the European Economic Community initialled on 28 June 1986, as amended and extended by the exchange of letters initialled on 3 December 1992 and further amended by the exchange of letters initialled on 10 January 1995.

The Mission of Malaysia wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the amended Agreement, the Government of Malaysia is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1995. This is on the understanding that either Party may at any time terminate this de facto application of the amended Agreement provided that one hundred and twenty days notice is given.

The Mission of Malaysia to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration.