NoL188/2 28.7.77 OfficialJournaloftheEuropeanCommunities
AGREEMENT
betweentheEuropeanEconomicCommunityandtheSocialistFederalRepublic
ofYugoslaviaontradeintextileproducts
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,and
THEGOVERNMENT OFTHESOCIALISTFEDERALREPUBLICOFYUGOSLAVIA ,
oftheotherpart,
DESIRINGtoensuretheorderlyandequitabledevelopmentoftradeintextileproductsbetweenthe
EuropeanEconomicCommunity (hereinafterreferredtoas'theCommunity')andYugoslavia,and
havingregardtotheirrespectivelevelsofdevelopment ,
HAVINGregardtotheprovisionsoftheArrangementregardinginternationaltradeintextileshere­
inafterreferredtoas'theGenevaArrangement'),andinparticularArticle4thereof,
HAVEDECIDED,inaspiritofmutualcooperationandinconformitywiththeGenevaArrange­
ment,toconcludethisAgreementandtothisendhavedesignatedastheirPlenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHESOCIALIST FEDERALREPUBLIC OFYUGOSLAVIA :
WHOHAVEAGREEDASFOLLOWS :
ofitsreceipttoanyrequestmadebyYugoslaviafor
suchre-allocation .Itisunderstoodthatanyre-alloca­
tionsoeffectedwouldnotneedtobeconfinedwithin
anylimitssetinflexibilityprovisionsestablishedelse­
whereinthisAgreement.Article1
1.Thepartiesrecognizeandconfirmthat,subject
totheprovisionsofthisAgreementandwithoutpreju­
dicetotheirrightsandobligationsundertheGeneral
Agreementontariffsandtrade,theconductoftheir
mutualtradeintextileproductsshallbegovernedby
theGenevaArrangement .
2.ThisAgreementshallapplytotradeinthose
categoriesoftextileproducts,originatinginand
comingfromYugoslavia,setoutinAnnexesIandII
tothisAgreement .
3.Yugoslaviashallestablishquantitativelimitson
exportstotheCommunityinaccordancewiththe
tableinAnnexI.
4.QuantitiesofthequotasharessetoutinAnnexI
nottakenupbyaMemberStateoftheCommunity
maybere-allocatedtoanotherMemberStatewithin
thelimitsfixedbytheCommunityinaccordance
withtheproceduresinforceintheCommunity .The
CommunityundertakestorespondwithinfourweeksArticle2
1.TheCommunityundertakes,inrespectofthe
categoriesoftextileproductstowhichthisAgreement
applies,andsubjecttothesatisfactoryoperationof
thisAgreement,nottointroducenewquantitative
restrictions,tosuspendimmediatelytheapplicationof
anyatpresentinforceandtorefrainfrominvoking
Article3oftheGenevaArrangementprovidedthat
exportstotheCommunityofsuchtextileproducts
originatinginandcomingfromYugoslaviadonot
exceedthequantitativelimitsestablishedunderthis
Agreement .
2.TheYugoslavauthoritiesundertaketotakeall
appropriatemeasurestoensurethattheagreedquantit­
ativelimitsarenotexceeded.

NoL188/3 28.7.77 OfficialJournaloftheEuropeanCommunities
3.TheCommunityshallnotobjecttotheagreed
quantitativelimitsbeingexceededintheeventofaddi­
tionaldemandontheCommunitymarket,onthe
understanding thattheadditionalquantitiesshallbe
fixedbycommonagreementbetweenbothparties.
Article3
1.ImportsintotheCommunityoftextileproducts
towhichthisAgreementapplieswhichareforimmed­
iatere-exportorforinwardprocessingandsubsequent
re-exportoutsidetheCommunityshallnotbesubject
tothequantitativelimitsestablishedunderthisAgree­
ment,providedtheyareenteredassuchunderan
administrative systemofcontrolinforceforthis
purposewithintheCommunity .
2.WhereCommunityauthoritiesascertainthat
importsreferredtoinparagraph 1havebeenretained
forusewithintheCommunity,thelatterwillnotify
theGovernment ofYugoslaviaquarterlyofthe
amountsinvolved.Yugoslaviashallinsuchcasesand
attherequestoftheCommunitysetoffsuchamounts
againstthequantitativelimitorlimitsinquestionfor
thecurrentAgreementyearorforthefollowingyear.
3.WherethecompetentauthoritiesintheCommu­
nityascertainunderanadministrative systemof
controlinforcethatimportsoftextileproducts
coveredbythisAgreementhavebeensetoffagainst
quantitativelimitsestablishedunderthisAgreement
buthavebeensubsequentlyre-exportedoutsidethe
Community ,thecompetentauthoritiesconcernedwill
informtheYugoslavauthoritiesofthequantities
involvedandauthorizeimportsofequivalentquanti­
ties,whichshallnotbesetoffagainstthequantitative
limitsundertheAgreement .
4.Re-importsintotheCommunity oftextile
productstowhichthisAgreementappliescarriedout
afterworkingorprocessinginYugoslaviaofproducts
whichhavebeentemporarilyexportedbytheCommu­
nityinaccordancewiththeproceduresinforceinthe
Communityshallnotbesubjecttothequantitative
limitsestablishedundertheAgreement .2.TheCommunitymay,wheneverimportsof
productsoriginatinginandcomingfromYugoslavia
andlistedinAnnexIIcauserealrisksofmarket
disruption(withinthemeaningofAnnexAtothe
GenevaArrangement ),requestconsultations with
Yugoslaviawithregardtotheseproductsinaccor­
dancewiththeprocedurelaiddowninparagraph5.
3.Ifitisascertainedthatthereisanexcessive
concentration oftradeinaproductwithinacategory
forwhichquantitativelimitshavebeenestablishedby
theCommunityunderthetermsofthisAgreementor
whichisotherwisesubjecttotheprovisionsofthis
Articleandif,intheopinionoftheCommunity ,there
isariskofsuchconcentration causingrealmarket
disruptioninrespectofthisproduct,theCommunity
mayrequestconsultationswithYugoslaviaunderthe
sameprocedureasthatspecifiedinparagraph5.
4.Therequestforconsultationsreferredtoinpara­
graphs2and3shallbefollowedwithinareasonable
period(andatthelatestwithin21days)byareporton
theconditionsontheCommunitymarketwhich,in
theopinionoftheCommunity ,justifysucharequest.
Thisreportshallcontaininformationdemonstrating
theexistenceofrealrisksofdisruptiontothismarket
(withinthemeaningofAnnexAtotheGenevaArran­
gement).Theconsultationproceduresreferredtoin
thisparagraphshallbeusedinmoderationandonly
intheeventofsubstantialchangesinthelevelof
exportsofYugoslavproductstotheCommunityand
shallbeappliedwithdueregardfortheprinciplesand
aimsoftheGenevaArrangement .
5.Pendingamutuallysatisfactoryconclusionofthe
consultationsprovidedforinparagraph2,Yugoslavia
shalllimititsexportsoftheproductorproductsin
questiontotheCommunitytothehigherofthe
followingtwolevels:
(i)onehundredandsevenpercent(107%)ofthe
exportsoftheproductorproductstotheCommu­
nityduringthemostrecent12-monthperiod
precedingthemonthinwhichtherequestfor
consultations wasmadeforwhichstatisticsare
availableforthetwoparties,or
(ii)theaverageannualexportsoftheproductor
productsfromYugoslaviatotheCommunityfor
anythree-yearperiodwithinthesixyears
precedingthemonthinwhichtherequestfor
consultations wasmadeforwhichstatisticsare
availableforthetwoparties.
6.TheCommunityshallauthorizetheimportation
ofgoodsdispatchedfromYugoslaviabeforethedate
onwhichtherequestforconsultations wasmade.
Moreover,theCommunityshallexamineattentively
andgiveitsfavourableconsiderationtoarrangementsArticle4
1.BothPartiesagreetoenterpromptlyintoconsul­
tationswitheachother,attherequestofeitherandin
conformitywiththeGenevaArrangement ,onany
matterconcerningtheirtradeintextileproductsand
inparticularonanyproblemsarisingfromthisAgree­
ment.Consultations heldunderthisArticleshallbe
approachedbybothpartiesinaspiritofcompromise
andwithaviewtotheconciliation ofdifferences
existingbetweenthem.

NoL188/4 OfficialJournaloftheEuropeanCommunities 28.7.77
(iii)withinheadingNo55.09(otherwovenfabricsof
cotton),toheadingNoex55.09(cottonfabrics,
otherthanunbleachedorbleached),providedthat
suchtransfersdonotexceed7%ofthequantita­
tivelimitfortheheadingtowhichtheyaremade.
4.Theflexibilityprovisionssetoutinparagraphs 1,
2and3mustnot,inanygivenAgreementyear,result
inthequantitativelimitforanycategorybeing
exceededbymorethan15%ofthequantitativelimit
forthatheadingforthatAgreementyear.
5.Theflexibilityprovisionssetoutinparagraphs 1,
2and3maybeappliedbyYugoslaviaonlyfollowing
writtennotificationtotheCommunity bythe
Yugoslavauthorities.
Article6
Yugoslaviashallmakeeveryendeavourtoensurethat
exportsofalltextileproductsforwhichquantitative
limitsmaybeestablishedunderthisAgreementare
spacedoutasevenlyaspossibleovereachAgreement
year,dueaccountbeingtaken,inparticular,of
seasonalfactors.forgoodsforwhichexportauthorizations havebeen
issuedonthebasisofbonafidecontractsandletters
ofcredit.IftheYugoslavauthoritiesconsiderthatthe
applicationoftheseprovisionsgivesrisetoproblems
whichdamagethetradeinterestsinquestion,Yugo­
slaviamayrequestconsultationswiththeCommunity
inaccordancewithparagraph2.
7.Consultations shallbeheldattherequestof
Yugoslaviainordertoreviewtheneedforthemainte­
nance,modificationorabolitionofanyquantitative
limitsestablishedunderthisArticle,wheneverthe
marketconditionswhichledtotheestablishment of
suchlimitsnolongerprevail.
8.Intheeventofthepartiesbeingunabletoreach
agreementintheconsultationsprovidedforinthis
Article,eitherofthemmay,asasignatorytothe
GenevaArrangement ,referthemattertotheTextiles
SurveillanceBodyinaccordancewithArticle11ofthe
GenevaArrangement .Eitherpartychoosingsucha
courseofactionshallimmediatelynotifytheother
partyofitsintention.
Article5
1.Portionsofanyquantitativelimitestablished
underthisAgreementwhicharenotusedduringany
Agreementyearmaybecarriedoverandaddedtothe
corresponding quantitativelimitsforthefollowing
year,withinalimitof10%ofthelatter.
2.Withinalimitof10%ofeachquantitativelimit
establishedunderthisAgreement,advancedeliveries
shallbeauthorizedfromthecorresponding quantita­
tivelimitinforceforthefollowingAgreementyear.
Amountsdispatchedinadvanceshallbededucted
fromthequantitativelimitsfortheproductsinques­
tionforthefollowingyear.
3.WithinanyoneAgreementyear,unused
portionsofquantitativelimitsestablishedunderthis
Agreementmaybetransferredtoanotherquantitative
limitundertheconditionssetoutbelow:
(i)toheadingNo55.09(otherwovenfabricsof
cotton)and,therein,toheadingNoex55.09
(cottonfabrics,otherthanunbleached or
bleached)fromheadingNoex62.02B(bedlinen,
tablelinen,toiletlinenandkitchenlinen,of
cotton;curtainsandotherfurnishingarticlesof
cotton),providedthatsuchtransfersdonot
exceed10%ofthequantitativelimittowhich
theyaremade,
(ii)tosubheadingex62.02B(bedlinen,tablelinen,
toiletlinenandkitchenlinen,ofcotton;curtains
andotherfurnishingarticlesofcotton)from
headingNo55.09(otherwovenfabricsofcotton),
providedthatsuchtransfersdonotexceed7%of
thequantitativelimittowhichtheyaremade,Article7
Thetwopartiesagreetoexchangeallrelevantinforma­
tionconcerningtheirmutualtradeintextileproducts
inordertoensurethesmoothfunctioningofthis
Agreement.
Article8
1.Thepartiesagreethatthequantitativelimitsesta­
blishedunderthisAgreementshallbemanagedunder
asystemofdoublechecking,thedetailsofwhichare
setoutinAnnexIII.
2.Yugoslaviathereforeundertakestofurnishthe
Communitywithprecisestatisticalinformationquar­
terlyonallexportauthorizations issuedbythe
Yugoslavauthoritiesforallcategoriesoftextile
productsexportedtotheCommunitycoveredbythis
Agreement .
3.TheCommunityshalllikewiseforwardtothe
Yugoslavauthoritiesquarterlyprecisestatisticalinfor­
mationonimportsofsuchproductsintotheCommu­
nity.
Article9
1.Bothpartiesshalltakeallappropriatemeasures
toensurethatthetraditionaltradeflowsandcommer­
cialpracticesaremaintainedbetweentheCommunity
andYugoslavia .

28.7.77 OfficialJournaloftheEuropeanCommunities NoL188/5
2.Shouldeitherpartyinformtheotherthatthe
functioningofthisAgreementhasgivenrisetodiffi­
cultiesregardingthemaintenanceofexistingcommer­
cialrelationsbetweenCommunityimportersand
Yugoslavsuppliersthepartiesagreetoconsult
togetherinaccordancewiththeproceduressetoutin
Article4(1).
Article10
Withoutprejudicetotheotherprovisionsofthis
Agreement,Yugoslaviaagreesthatthequantitative
restrictionsonimportsintoIrelandofthefollowing
textileproductsfromYugoslaviamaybemaintained
until30June1977atthelatest:tionslaiddowninthatTreaty,and,ontheotherhand,
totheterritoryoftheSocialistFederalRepublicof
Yugoslavia .
Article12
1.ThisAgreementshallenterintoforceonthe
firstdayofthemonthfollowingthedateonwhich
thepartieshavenotifiedeachotherofthecompletion
oftheproceduresnecessaryforthatpurpose.Itshall
remainapplicableuntil31December1977.
2.ThisAgreementshallbeapplicablefrom1
January1976.
3.Eitherpartymayatanytimeproposemodifica­
tionstothisAgreementordenounceitprovidedthat
noticeisgivenatleast120daysbeforetheexpiryof
any12-monthperiod.InthelattereventtheAgree­
mentwillcometoanendattheexpiryofthesaid
12-monthperiod.
4.TheAnnexestothisAgreementshallforman
integralpartthereof.
Article13
ThisAgreementshallbedrawnupintwocopiesin
theDanish,Dutch,English,French,German,Italian
andSerbo-Croatlanguages,eachofthesetextsbeing
equallyauthentic.Brussels
tariff Description
nomenclature
55.05 Cottonyarn,notputupforretailsale
55.06 Cottonyarn,putupforretailsale
55.07 Cottongauze
Article11
ThisAgreementshallapply,ontheonehand,tothe
territoriesinwhichtheTreatyestablishingtheEuro­
peanEconomicCommunityisapplied,onthecondi­

NoL188/6 OfficialJournaloftheEuropeanCommunities 28.7.77
ANNEXI
ProductsinrespectofwhichYugoslaviawillexercisevoluntaryrestraint'vis-à-vis'the
CommunityasawholefromtheentryintoforceoftheAgreement
TheCommunityherebyinformsYugoslaviathatthequantitativelimitsforthetextileproductslisted
belowwillbeallocatedbetweentheMemberStatesasfollows:
Quantitativelimit
CCT(tonnes)
heading NIMEXEcode Description MemberState
No 1976 1977
55.09 01to98 Otherwovenfabricsofcotton Germany 2774 3097
France 863 1012
Italy 6443 6475
Benelux 1264 1367
UnitedKingdom 525 675
Ireland 10 15
Denmark 900 905
EEC 12779 13546
ofwhich Cottonfabrics,otherthan
ex55.09 unbleachedorbleached Germany 459 497
France 94 116
Italy 372 374
Benelux 238 244
UnitedKingdom 21 31
Ireland 4 5
Denmark 237 238
EEC 1425 1505
ex62.02B11;41;43;47;Bedlinen,tablelinen,toiletlinenGermany 276 299
71;73;81andkitchenlinen,ofcotton;curtainsFrance 175 189
andotherfurnishingarticles,ofItaly 186 193
cotton Benelux 190 191
UnitedKingdom 21 31
Ireland 5 6
Denmark 99 100
EEC 952 1009

28.7.77 NoL188/7 OfficialJournaloftheEuropeanCommunities
ANNEXII
Productssubjecttothespecialconsultationprocedureprovidedfor<nArticle4
CCT
headingNoDescription
55.05 Cottonyarn,notputupforretailsale
56.07 Wovenfabricsofman-madefibres(discontinuous orwaste)
ex60.03 Men'ssocks
60.04 Undergarments,knittedorcrocheted,notelasticorrubberized
ex60.05A Knittedorcrochetedoutergarments
61.01 Men'sandboys'outergarments
61.02 Women's,girls'andinfants'outergarments
61.03 Men'sandboys'undergarments,includingcollars,shirtfrontsandcuffs
ex62.02 Bedlinen,tablelinen,toiletlinenandkitchenlinen,otherthanofcotton;
curtains,netcurtainsandotherfurnishingarticles(otherthantheproducts
listedundersubheadingex62.02BinAnnexI)
ANNEXIII
AsagreedbetweenthepartiesinArticle8oftheAgreement,themanagementoftextileimports
fromYugoslaviawillbebasedonasystemofdoublechecking.Thedetailsofthissystemhavebeen
agreedbetweenthepartiesandaresetoutbelow.
ThecompetentauthoritiesintheCommunitywill,automaticallyandwithoutdelay,acceptimports
oftextileproductsonsubmissionoftheimporter'sapplicationtogetherwiththeoriginalexport
licenceissuedbytheYugoslavauthorities .ThecompetentauthoritiesintheCommunitywillbe
entitledtorequestthepresentationofanexportauthorizationinrespectofgoodsoriginatingin
YugoslaviaofthecategoriesshowninAnnexIand,whereArticle4hasbeeninvoked,inAnnexII.
Theseexportauthorizations willbeissuedbytheYugoslavGovernmentauthoritiesuptothetotal
amountoftheagreedquantitativelimits.
Theexportauthorizationmustspecify:
1.destination ;
2.serialnumber;
3.importer'snameandaddress;
4.exporter'snameandaddress;
5.netweight(intonnes)andvalue;
6.categoryandclassificationofproduct;
7.certificateissuedbytheYugoslavauthoritiesshowingthatthequantityhasbeendebitedagainst
theagreedquantitativelimitforexportstotheCommunityor,whereappropriate,isforimmed­
iatere-exportorforprocessingandsubsequentre-exportoutsidetheCommunity .
ThecompetentauthoritiesintheCommunitywillnotraisedifficultiesintheeventofadiscrepancy
betweentheweightindicatedontheexportauthorizationandtheshipmentorimportweight
provideditiswithinreasonablelimits,whiletheYugoslavauthorities,fortheirpart,willendeavourto
keepanydiscrepancies toaminimum .

28.7.77 NoL188/8 OfficialJournaloftheEuropeanCommunities
IntheeventoftotalorpartialwithdrawalofanexportauthorizationtheYugoslavauthoritieswill
notifythecompetentauthoritiesintheCommunityofsuchtotalorpartialwithdrawal.Thecompe­
tentauthoritiesintheCommunitywilltaketheappropriatemeasuresinaccordancewiththeir
existingadministrative provisions.
TheYugoslavauthoritieswillforwardtothecompetentauthoritiesintheCommunity,viatheembas­
siesoftheMemberStatesoftheCommunityanddirectlytotheCommission ,quarterlyreturns
showingthetotalnetweightintonnescoveredbytheexportauthorizationissuedagainsttheceilings
forexportstotheCommunity ,aswellastheallocationoftheseauthorizations amongtheMember
StatesoftheCommunityforeachcategoryoftextileproductsexportedtotheCommunitysubjectto
aquantitativelimitundertheAgreement .
ANNEXIV
ExchangeoflettersconcerningtheAgreementbetweentheEuropeanEconomicCommu­
nityandtheSocialistFederalRepublicofYugoslaviaontradeintextileproducts
Brussels,
Madam,
InconcludingthenegotiationsheldbetweentheCommunityandtheGovernmentofYugoslavia
whichhaveledthisdaytothesigningoftheAgreementontradeintextileproducts,theCommunity
hasthehonourtoinformyouofthefollowing :
AsstatedinArticle3(4),theAgreementdoesnotapplytore-importsfromYugoslaviaoftextilearti­
clesproducedbytheworkingorprocessingofproductstemporarilyexportedfromtheCommunity .
TheCommunityrecognizestheeconomicimportanceofsuchworkingandprocessingoperationsfor
Yugoslavia .Whilereserving,therefore,therighttoadoptunilateralmeasuresgoverningthistradeby
subjectingittoauthorizationtheCommunitywillendeavourtomaintainsuchtradechannelsasexist
underthecurrentarrangements .
IshouldbegratefulforyourconfirmationofyourGovernment'sagreementwiththeabove.
Pleaseaccept,madam,theassuranceofmyhighestconsideration .
Forthedelegationof
theEuropeanEconomicCommunity
Brussels,
Sir,
Ihavethehonourtoacknowlegereceiptofyourletteroftoday'sdatewordedasfollows:
'InconcludingthenegotiationsheldbetweentheCommunityandtheGovernmentofYugoslavia
whichhaveledthisdaytothesigningoftheAgreementontradeintextileproducts,theCommu­
nityhasthehonourtoinformyouofthefollowing :
AsstatedinArticle3(4),theAgreementdoesnotapplytore-importsfromYugoslaviaoftextile
articlesproducedbytheworkingorprocessingofproductstemporarilyexportedfromthe
Community .

28.7.77 NoL188/9 OfficialJournaloftheEuropeanCommunities
TheCommunityrecognizestheeconomicimportanceofsuchworkingandprocessingoperations
forYugoslavia .Whilereserving,therefore,therighttoadoptunilateralmeasuresgoverningthis
tradebysubjectingittoauthorization ,theCommunitywillendeavourtomaintainsuchtrade
channelsasexistunderthecurrentarrangements .
IshouldbegratefulforyourconfirmationofyourGovernment'sagreementwiththeabove.'
IhavethehonourtoconfirmtheagreementofmyGovernmentwiththeabove.
Pleaseaccept,sir,theassuranceofmyhighestconsideration .
Forthedelegation
oftheSocialistFederalRepublic
ofYugoslavia