NoL297/24 OfficialJournaloftheEuropeanCommunities 17.11.75
AGREEMENT
betweentheEuropeanEconomicCommunityandtheIslamicRepublicofPakistanon
tradeintextileproducts
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEISLAMICREPUBLICOFPAKISTAN ,
oftheotherpart,
DESIRINGtoensuretheorderlyandequitabledevelopmentoftradeintextilesbetween
theEuropeanEconomicCommunity (hereinafterreferredtoastheCommunity )andthe
IslamicRepublicofPakistan(hereinafterreferredtoasPakistan);
HAVINGREGARDtotheprovisionsoftheArrangementregardingInternationalTradein
Textiles(hereinafterreferredtoastheGenevaArrangement )andespeciallyArticle4thereof;
HAVEDECIDED,inaspiritofmutalcooperationandinaccordancewiththesaidGeneva
Arrangement ,toconcludethisAgreementandtothisendhavedesignatedastheir
Plenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEISLAMICREPUBLICOFPAKISTAN :
WHOHAVEAGREEDASFOLLOWS :
Article1
CCT
headingNoNimexe
No Description
55.09
ex62.02AllNos
11,71and73Otherwovenfabrics
ofcotton
Bedlinen,toiletlinen
andkitchenlinenof
cotton1.ThePartiesrecognizeandconfirmthat,subject
totheprovisionsofthisAgreementandwithout
prejudicetotheirrightsanddutiesundertheGeneral
AgreementonTariffsandTrade,theconductof
theirmutualtradeintextilesshallbegovernedby
theprovisionsoftheGenevaArrangement .
2.ThisAgreementshallapplytotradeinthose
categoriesoftextileproducts,originatinginand
dispatchedfromPakistan,whicharelistedbelow
andtothosereferredtoinArticle5(4).3.Pakistanagreestoestablishquantitativelimits
onexportstotheCommunityinaccordancewith
AnnexI.Quantitiesofthequotasharessetoutin
AnnexInottakenupbyaMemberStateofthe
CommunitymaybereallocatedtoanotherMember

17.11.75 OfficialJournaloftheEuropeanCommunities NoL297/25
StatewithinthelimitsdecidedbytheCommunityin
accordancewiththeproceduresinforceinthe
Community .TheCommunityundertakestorespond
withinfourweeksofitsreceipttoanyrequestmade
byPakistanforsuchreallocation .Itisunderstood
thatanyreallocationsoeffectedwouldnotneedto
beconfinedwithinanylimitssetinflexibility
provisionsestablishedelsewhereinthisAgreement .administrative systemofcontrolinforcethat
importsoftextileproductstowhichthisAgreement
applieshavebeenchargedagainstquantitativelimits
establishedunderthisAgreementbutsubsequently
re-exportedoutsidetheCommunity ,thecompetent
authorityconcernedwillinformthePakistani
authoritiesofthequantitiesinvolvedandauthorize
importsofthesamequantitieswhichshallnotbe
chargedtothequantitative limitsunderthe
Agreement .
Article2
1.Pakistanundertakestoensurethatitsexports
totheCommunityoftextileproductstowhichthis
Agreementappliesdonotexceedthequantitative
limitsestablishedundertheprovisionsthereofand
shallcooperatewiththeCommunity in
implementing themeasuresrecognizedinthis
Agreementasnecessaryforthispurpose.
2.TheCommunityundertakes,inrespectofthe
categoriesoftextileproductstowhichthis
Agreementapplies,andsubjecttothesatisfactory
operationofthisAgreement,nottointroducenew
quantitativerestrictions,tosuspendtheapplication
ofanyatpresentinforceandtorefrainfrom
invokingtheprovisionsofArticle3oftheGeneva
Arrangement providedthatexportstothe
Communityofsuchtextileproductsoriginatingin
anddispatchedfromPakistandonotexceedthe
quantitativelimitsestablishedundertheprovisions
ofthisAgreement .Article4
1.ThefollowingPakistanitextileproductsshall,
subjecttotheconditionsindicatedhereafter,be
admittedintotheCommunitywithoutquantitative
limit:
(i)cottonhandloomfabricsofthecottageindustry,
containingnotmorethan5°/obyweightof
man-madefibres,beingfabricswhichareboth
traditionallyofthekindwovenonhandlooms
andactuallywovenonaloomforwhichthe
motivepowerisprovidedentirelybythe
operators (thatiswherethethreeprimary
movementsofweaving,namelyshedding,
pickingandbeating,areinducedbyhandor
footandnoothersourceofpowerisused);
(ii)goodsmadeupbythecottageindustryfrom
suchcottonhandloomfabrics;
(iii)traditionalPakistanifolklorehandicrafttextile
productscut,sewnorotherwisefabricatedby
handincottageswhichareunitsofthecottage
industry.
2.AdmissionintotheCommunity ofthese
productswithoutquantitativelimitshallbesubject
tothesatisfactoryoperationofagreedarrangements
forcertification .Article3
1.ImportsintotheCommunityofthosetextile
productstowhichthisAgreementapplies,whichare
forimmediatere-exportorforinwardprocessing
andsubsequentre-exportoutsidetheCommunity
shallnotbesubjecttoquantitativelimitsestablished
underthisAgreement,providedtheyareenteredas
suchunderanadministrative systemofcontrolin
forceforthispurposewithintheCommunity .
2.InanycasewhereCommunityauthorities
ascertainthatimportsdescribedinparagraph1have
beenretainedforconsumption withinthe
Community ,thelatterwillnotifytheGovernmentof
Pakistanonaquarterlybasisoftheamounts
involved.Pakistanshallinsuchcasesandatthe
requestoftheCommunity ,chargesuchamounts
againstthequantitativelimitorlimitsinquestionfor
thecurrentAgreementyearorforthenextfollowing
Agreementyear.
3.Inanycasewherethecompetentauthorities
withintheCommunity ascertainunderanArticle5
1.BothPartiesagreetoenterpromptlyinto
consultations witheachother,attherequestof
eitherandinaccordancewiththeprovisionsofthe
GenevaArrangement ,onanymatterconcerningtheir
mutualtradeintextilesandinparticularonany
problemsarisingfromtheapplicationofthis
Agreement .Consultations heldundertheprovisions
ofthisArticleshallbeapproachedbybothPartiesin
aspiritofcompromiseandwithaviewtothe
conciliationofdifferencesexistingbetweenthem.

NoL297/26 OfficialJournaloftheEuropeanCommunities 17.11.75
2.Anyrequestforconsultations underthis
Agreementshallbeaccompanied byafactual
statementofthereasonsandjustificationsforsucha
request.6.Theprocedurereferredtoinparagraph5will
onlyberesortedtosparinglyandwillbe
implemented inamannerconsistentwiththe
principlesandobjectivesoftheGenevaArrangement .
7.IntheeventthatthePartiesareunabletoreach
agreementduringtheconsultationsprovidedforin
thisArticle,eitherofthePartiesmay,asasignatory
totheGenevaArrangement ,.referthemattertothe
TextilesSurveillanceBodyinaccordancewithArticle
11oftheGenevaArrangement .EitherParty,
choosingtoadoptsuchacourseofaction,shall
immediatelynotifytheotherofitsintention.3.ThetwoParties,unlessagreedotherwise,will
consultassoonaspossiblewithin30daysofthe
requestforsuchconsultations ,andwillmaketheir
besteffortstocompletesuchconsultationswithin30
daysoftheircommencement .
Article6
If,havingregardtotheprovisionsoftheGeneva
Arrangement ,eitherPartyconsidersthatitisbeing
placedinaninequitablepositioninrespectoftrade
intextilesascomparedwithathirdcountry,that
Partymayrequestconsultationswiththeotherwith
aviewtoseekingequitablesolutions.Such
consultationswillbeheldandconcludedpromptly.
ThePartieswilltakesuchappropriateremedial
measuresasmaybemutuallyacceptableand
consistentwiththeirinternational rightsand
obligations,includingthemakingofanynecessary
reasonablemodificationtothisAgreement .4.Notwithstanding thegeneralityofthe
provisionsofparagraphs 1,2,3and7,the
Communitymayatanytimerequestconsultations
withPakistan:
(a)wheneverconditionsinitsmarketaresuchthata
limitationoffurthertradeincottontablelinen
(CCTheadingNoex62.02,NimexeNos41,43
and47)maybenecessarytoeliminaterealrisks
ofmarketdisruption;
(b)wheneverimportsintotheCommunityoftextile
productsoffibresotherthancottonindirect
competitionwiththosewhicharewithinthe
categorieslistedinArticle1(2)andparagraph4
(a)ofthisArticlecauseorthreatentocausea
realriskofmarketdisruptionsuchthatthe
quantitative limitsestablishedunderthis
Agreementcouldbeevaded;
(c)wheneveranexcessiveconcentration oftradein
anyspecificproductswithinthecategorieslisted
inArticle1(2)andparagraph4(a)ofthisArticle
causesorthreatenstocausearealriskofmarket
disruptioninrespectofthatproduct.Article7
1.(a)WithinanyoneAgreementyear,unused
portionsofquantitativelimitsestablished
underthisAgreementmaybetransferredto
anotherquantitativelimitsoestablished,
undertheconditionssetoutbelow.
(b)Transfersmayonlybeeffectedunderthis
Agreementasfollows:
(i)intocategory55.09(otherwovenfabrics
ofcotton)and,therein,intosubcategory
ex55.09(cottonfabrics,otherthangrey
orbleached)fromcategoryex62.02
(NimexeNos11,71and73)(bedlinen,
toiletlinenandkitchenlinen,ofcotton),
providedthatsuchtransfersdonot
exceed10%ofthequantitativelimitfor
thecategoryorsubcategoryintowhich
theyaremade;
(ii)intocategoryex62.02(NixemeNos11,
71and73)(bedlinen,toiletlinenand
kitchenlinen,ofcotton)fromcategory
55.09(otherwovenfabricsofcotton),5.Pendingamutuallysatisfactorysolutiontothe
consultations describedinparagraph4,Pakistan
shalllimitexportsoftheproduct(s)inquestionto
theCommunitytothegreaterof:
(i)107°/ooftheexportsofsuchproduct(s)tothe
Communityduringthemostrecent12-month
periodprecedingthemonthinwhichthe
requestforconsultations wasmadeforwhich
statisticsareavailabletothetwoParties;or
(ii)theaverageannualexportsofsuchproduct(s)
fromPakistantotheCommunityforthemost
recentthree-yearperiodprecedingthemonthin
whichtherequestforconsultationswasmade,
forwhichstatisticsareavailabletothetwo
Parties.

17.11.75 OfficialJournaloftheEuropeanCommunities NoL297/27
Article10
Subjecttothesatisfactoryoperationofthis
Agreementandthecommunication oftherelevant
statisticaldataindicatedinArticle9,theParties
agreethatthequantitativelimitsestablishedunder
thisAgreementshallbemanagedunderasystemof
doublechecking,consistingofexportlicencesand
automaticcounterpartimportlicences.providedthatsuchtransfersdonot
exceed7°/oofthequantitativelimitof
thecategoryintowhichtheyaremade;
(iii)withincategory55.09(otherwoven
fabricsofcotton),intosubcategoryex
55.09(cottonfabrics,otherthangreyor
bleached),providedthatsuchtransfers
donotexceed7°/oofthequantitative
limitforthesubcategoryintowhichthey
aremade.
2.Portionsofanyquantitativelimitestablished
underthisAgreementwhicharenotusedduringany
Agreementyearmaybecarriedoverandaddedto
thecorresponding quantitativelimitinthefollowing
Agreementyear,withinalimitof10°/oofthelatter.
3."Withinalimitof10°/oofeachofthe
quantitativelimitsestablishedunderthisAgreement,
advancedeliveriesshallbeauthorizedfromthe
corresponding quantitativelimitestablishedforthe
followingAgreementyear.Amountsdeliveredin
advanceshallbedeductedfromthequantitative
limitsfortheproductsinquestionforthefollowing
Agreementyear.Article11
1.BothPartiesshalltakeallpossiblemeasuresto
ensurethattraditionalchannelsandmethodsof
tradebetweentheCommunityandPakistanare
maintained .
2.ShouldtheCommunityinformPakistanthat
theapplicationofthisAgreementhasgivenriseto
difficultiesregardingthemaintenanceofexisting
commercialrelationsbetweenimportersinthe
CommunityandtheirsuppliersinPakistanthe
Partiesagreetoconsulttogetherinaccordancewith
theproceduressetoutinArticle5.
Article12
Withoutprejudicetotheotherprovisionsofthis
Agreement,Pakistanagreesthatquantitative
restrictionswithregardtoimportsintoIrelandof
thefollowingtextileproductsfromPakistanmaybe
maintaineduntil30June1977atthelatestin
accordancewiththerightsenjoyedbyIrelandunder
theTreatybywhichthatcountryaccededtothe
EuropeanCommunities .4.Theflexibilityprovisionssetoutinparagraphs
1,2and3shallnot,inanygivenAgreementyear,
resultinanyquantitativelimitforanycategory
beingexceededbymorethan15%ofthe
quantitativelimitforthatcategoryforthat
Agreementyear.
Article8
Pakistanshallensurethatexportsofalltextile
productsrestrainedunderthisAgreementarespaced
outevenlyovereachoftheAgreementyears,due
accountbeingtaken,inparticular,ofseasonal
factors.CCT
headingNoDescription
55.05 Cottonyarn,notputupforretailsale
55.06 Cottonyarn,putupforretailsale
55.07 Cottongauze
Article13
1.ThisAgreementshallenterintoforceonthe
firstdayofthemonthfollowingthedateonwhich
thePartieshavenotifiedeachotherofthe
completionoftheproceduresnecessaryforthe
purpose(*).Itshallremaininforceuntil31December
1977.Article9
ThePartiesrecognizethatthesuccessful
implementation ofthisAgreementdependsinlarge
partuponmutualcooperationonstatisticalmatters.
Pakistanthereforeagreestofurnishtothe
Communityprecisestatisticalinformation ,ona
quarterlybasis,onallexportauthorizations issued
bythePakistaniauthoritiesforallcategoriesof
textileexportstotheCommunitytowhichthis
Agreementapplies.(!)Thedateofentryintoforcewillbepublishedinthe
OfficialJournaloftheEuropeanCommunities .

NoL297/28 OfficialJournaloftheEuropeanCommunities 17.11.75
4.TheAnnexestothisAgreementshallforman
integralpartthereof.
Article14
ThisAgreementshallbedrawnupintwocopiesin
theDanish,Dutch,English,French,Germanand
Italianlanguages,eachofthesetextsbeingequally
authentic.2.ThisAgreementshallapplywitheffectfrom
1January1975.
3.Eitherpartymayatanytimepropose
modifications tothisAgreementordenounceit
providedthatnoticeisgivenatleast120daysbefore
theexpiryofany12-monthperiod;inthelatter
eventtheAgreementwillcometoanendonthe
expiryofthesaid12-monthperiod.

NoL297/29 17.11.75 OfficialJournaloftheEuropeanCommunities
ANNEXI
ProductsforwhichPakistanwillexerciserestrainttowardsthewholeCommunityfromthe
entryintoforceoftheAgreement
TheCommunityherebynotifiesPakistanthatthequantitativelimitsforthetextileproducts
listedbelowwillbeallocatedbetweentheMemberStatesasfollows:
Quantitativelimits
(inmetrictons)Productscategory
orsubcategoryMemberState
1975 1976 1977
55.09
OtherwovenfabricsofcottonGermany 165020282437
France 108013271595
Italy 1729 20492399
Benelux 905 10751256
UnitedKingdom 103261037810430
Ireland 677680 683
Denmark 671693 710
EEC 170381823019510
Germany 75 85 95
France 677684
Italy 58 65 72
Benelux 38 43 48
UnitedKingdom 381 .386390
Ireland 296297298
Denmark 87 88 88
EEC 1002 10401075ofwhich
ex55.09
Cottonfabricsotherthangrey
orbleached
ex62.02
(NimexeNos11,71and73)
Bedlinen,toiletlinenandkitchen
linen,ofcotton387
212
291
270
497
8
339285
152
257
261
454
6
335333
183
274
265
474
7
337Germany
France
Italy
Benelux
UnitedKingdom
Ireland
Denmark
EEC 18732004 1750

NoL297/30 OfficialJournaloftheEuropeanCommunities 17.11.75
ANNEX 11
Handloomandtextilehandicraftarticles
1.InaccordancewithArticle12(3)oftheGenevaArrangement ,theCommunityandPakistan
haveagreed,inArticle4oftheAgreementthat,subjecttocertainconditionsPakistani
exportsofcertainhandloomandtextilehandicraftproductswouldbeadmittedintothe
Communitywithoutquantitativelimit.TheconditionssetoutinArticle4(2)ofthe
AgreementspecifiesthatadmissionofsuchproductsintotheCommunitywithout
quantitativelimitshallbesubjecttothesatisfactoryoperationofagreedarrangementsfor
certification .
2.TheCommunityandPakistanherebyagreethatincarryingouttheprovisionsofArticle4
oftheAgreementthefollowingformofcertificateshallbeused.
'Certificateinregardtocottonhandloomfabricsandproductsthereof
Nameandaddressofmanufacturer ,
Nameandaddressofexporter,
NameandaddressofimporterwithintheCommunity ,
Descriptionofgoods,
Quantity(metrictons),
Nameofshiporflightnumber,
Portorairportofdestination.
Thisistocertifythattheaboveshipmentconsistsof:
(i)cottonhandloomfabricsofthecottageindustry,containingnotmorethan5%by
weightofman-madefibres,beingfabricswhicharebothtraditionallyofthekind
wovenonhandloomsandactuallywovenonaloomforwhichthemotivepoweris
providedentirelybytheoperators (thatiswherethethreeprimarymovementsof
weaving,namelyshedding,pickingandbeating,areinducedbyhandorfootandno
othersourceofpowerisused);
(ii)goodsmadeupbythecottageindustryfromsuchcottonhandloomfabrics;
(iii)traditionalPakistanifolklorehandicrafttextilesproductscut,sewnorotherwise
fabricatedbyhandincottageswhichareunitsofthecottageindustry.
Signed '
3.ThebodywhichshallbeauthorizedtoissuetheabovecertificatesistheExportPromotion
Bureau,GovernmentofPakistan.
4.InadditionsuchdescriptivecertificateshallbeendorsedbyaGovernmentagencytothe
effectthattheconsignment isapprovedforexport,withoutanyquantitativeceilings,as
providedforintheAgreementandintheGenevaArrangement .

NoL297/31 17.11.75 OfficialJournaloftheEuropeanCommunities
ANNEX 111
Systemofdoublechecking
1.AsagreedbetweenthePartiesinArticle10oftheAgreement,theadministration oftextile
importsfromPakistanwillbebasedonasystemofdoublechecking.Thedetailsofthis
systemhavebeenagreedbetweenthePartiesandaresetoutbelow.
2.TheauthoritiesoftheMemberStatesoftheCommunitywill*automaticallyandwithout
delay,acceptimportsofcottontextileproductsonsubmissionoftheimporter'sapplication
togetherwiththeoriginalexportlicence.Theseexportlicenceswillbeissuedbythe
Pakistaniauthoritiesuptothetotalamountoftheagreedceilings.
3.TheexportlicencesissuedbythePakistaniauthoritiesshallbeapplicabletotheproducts
subjecttorestraintundertheAgreement .
4.Theexportlicencemustspecify:
(1)destination,
(2)serialnumber,
(3)importer'snameandaddress,
(4)exporter'snameandaddress,
(5)netweight(inkilogrammesormetrictons)andvalue,
(6)categoryanddescriptionofproduct,
(7)theissueofacertificatebythePakistaniauthoritiesshowingthatthequantityhas
beendebitedagainsttheagreedceilingforexportstotheCommunityor,where
appropriate,ifforimmediatere-exportorforinwardprocessingandsubsequentre­
exportoutsidetheCommunity .
5.TheauthoritiesoftheMemberStatesoftheCommunitywillnotraisedifficultiesinthe
eventofadiscrepancybetweentheweightindicatedintheexportlicenceandtheshipment
orimportweightprovideditiswithinreasonablelimits,whilethePakistaniauthorities,
fortheirpart,willendeavourtokeepanydiscrepanciestoaminimum.
,6.Intheeventoftotalorpartialwithdrawalofanexportlicence,thePakistaniauthorities
willnotifytheauthoritiesoftheMemberStatesoftheCommunityofsuchtotalorpartial
withdrawal .TheauthoritiesoftheMemberStatesoftheCommunitywilltakethe
appropriatemeasuresinaccordancewiththeirexistingadministrative provisions.
7.ThePakistaniauthoritieswillforwardtotheauthoritiesoftheMemberStatesofthe
Community ,viatheembassiesoftheMemberStatesoftheCommunityanddirectlytothe
Commission,quarterlyreturnsshowingthetotalnetweightinmetrictonscoveredbythe
exportlicencesissuedagainsttheceilingsforexportstotheMemberStatesofthe
Community,forallcategoriesoftextileexportstotheCommunitytowhichtheAgreement
applies.

NoL297/32 OfficialJournaloftheEuropeanCommunities 17.11.75
ANNEXIV
Conversionfactors
1.InthecourseofnegotiatingtheAgreement,itwasnotedthatrestrictionspreviouslyin
forceinoneMemberStatehadbeenexpressedinsquareyards,whereas'underthe
AgreementmetricweightunitsareusedfortheCommunityasawhole.Itwasfurthernoted
thatinordertoarriveatbaselevelsforquantitativelimitsinthenewAgreementthe
relationshipbetweensquareyardsandmetrictonshadbeendirectlyderivedfromcustoms
statisticsrelatingtoimportsoftheproductsinquestionfromPakistan.
2.ThePakistanidelegationexpressedconcernlest,nevertheless ,theeffectofthischange
mightprovetoberestrictiveintermsofthetradeopportunities provided.Forthe
avoidanceofdoubt,itwasconfirmedonbehalfoftheCommunitythatthechangeofunit
ofmeasurementwasinnowayintendedtohavethiseffect.
3.Itwasfurtheragreedthatforatransitionalperiodoftwoyears(1975and1976)the
CustomsauthoritiesoftheMemberStateconcerned (theUnitedKingdom)wouldmaintain
arunningcheckonboththetonnageandsquareyardageofimportsfromPakistanand
thatifduringthistransitionalperiodthesquareyardequivalentofthequantitativelimits
expressedinmetrictonswasnotreached,additionalimportswouldbeacceptedtoa
levelnotexceedingthesquareyardequivalentderivedasindicatedabove.Incaseanew
ratioemergesbytheendof1976,thequantitativelimitfor1977expressedinmetrictons,
willbefixedonthebasisofthenewratioandappropriategrowthfactor.