NoL47/2 OfficialJournaloftheEuropeanCommunities 18.2.77
AGREEMENT
betweentheEuropeanEconomicCommunityandtheFederativeRepublicofBrazil
ontradeintextileproducts
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFTHEFEDERATIVE REPUBLICOFBRAZIL,
oftheotherpart,
DESIRINGtoensuretheorderlyandequitabledevelopmentoftradeintextilesbetweenthe
EuropeanEconomicCommunity (hereinafterreferredtoas'theCommunity')andBrazil,
HAVINGREGARDtotheprovisionsoftheArrangementregardinginternationaltradein
textiles(hereinafterreferredtoas'theGenevaArrangement')andinparticularArticle4thereof,
HAVEDECIDED,inaspiritofmutualcooperationandinconformitywiththeGenevaArrange­
ment,toconcludethisAgreementandtothisendhavedesignatedastheirPlenipotentiaries :
THECOUNCILOFTHEEUROPEAN COMMUNITIES :
THEGOVERNMENT OFTHEFEDERATIVE REPUBLICOFBRAZIL:
WHOHAVEAGREEDASFOLLOWS :
Article1
ThePartiesrecognizeandconfirmthat,subjectto
theprovisionsofthisAgreementandwithout
prejudicetotheirrightsandobligationsunderthe
GeneralAgreementontariffsandtrade,theconduct
oftheirmutualtradeintextilessJ'hallbegoverned
bytheprovisionsoftheGenevaArrangement .ment,providedthatexportstotheCommunityof
suchtextileproductsoriginatinginanddispatched
fromBrazildonotexceedtheagreedquantitative
limits,
2.TheGovernmentoftheFederativeRepublicof
Brazilshallestablishquantitative 'limitsonexports
totheCommunityinaccordancewithAnnexI,and
undertakestotaketheappropriatemeasurestoensure
thatthequantitativelimitsslhownthereinarenot
exceeded.
3.TheCommunity shallnotobjecttothe
aforementioned quantitativelimitsbeingexceeded
intheeventofadditionaldemanddevelopingonthe
marketoftheCommunity ,ontheunderstanding
thattheadditionalquantitiesshallbefixedby
commonagreementbetweenbothParties.
4.QuantitiesofthequotasharessetoutinAnnexI
nottakenupbyaMemberStateoftheCommunityArticle2
1.Inrespectofthosecategoriesoftextileproducts
whioharesetoutinAnnexI,beingtextileproducts
originatinginanddispatchedfromBrazil,andsubject
tothesatisfactoryoperationofthisAgreement,the
Communityshallnotintroducenewquantitative
restrictions,shallsuspendtheoperationofany
previouslyinforce,andshallrefrainfrominvoking
theprovisionsofArticle3ofcheGenevaArrange­

18.2.77 OfficialJournaloftheEuropeanCommunities NoL47/3
maybere-al'locatedtoanotherMemberStatein
accordancewiththeproceduresinforceintheCom­
munity.TheCommunityundertakestorespond
withinfourweeksofitsreceipttoanyrequestmade
bytheGovernmentoftheFederativeRepublicof
Brazilforsuchreallocation .Itisunderstoodthat
anyre-allocationsoeffectedwouldnotneedtobe
confinedwithinanylimitssetinflexibilityprovisions
establishedelsewhereinthisAgreement .
5.Allotherquantitativerestrictionswihichhavebeen
notifiedbytheCommunity totheTextiles
SurveillanceBodyunderArticle2(1)oftheGeneva
Arrangement ,shall,unlessjustifiedunderthe
provisionsofGATTorincludedinagreements
negotiatedormeasuresadoptedpursuanttothe
provisionsofArticle3oftheGenevaArrangement ,
besuspendedassoonaspossibleaftertheconclusion
oftheAgreementandinanycaseby31March1977.
6.ThePartiesshallcooperateinimplementing the
measuresnecessaryforthepurposeofthisArticle.quantitieswhichshallnotbechargedtothequanti­
tativelimits.
Article4
1.ThePartiesshallenterpromptlyintoconsul­
tationswitheachother,attherequestofeitherand
inconformitywiththeprovisionsoftheGeneva
Arrangement ,onanyproblemsarisingfromthe
applicationofthisAgreement .Consultations held
undertheprovisionsofthisArticleshallbe
approachedbybothPartiesinaspiritofcompromise
andwithaviewtotheconciliation ofdifferences
existingbetweenthem.
2.ThePartiesshallconsultassoonaspossible
within30daysfollowingtherequestandwillmake
theirbesteffortstocompletesuchconsultations
within30daysoftheircommencement .
3.IntheeventthatthePartiesareunable,within
areasonableperiodoftime,toreachasatisfactory
solutionduringtheconsultations providedforin
thisArticle,eitherofthePartiesmayreferthematter
totheTextilesSurveillanceBodyinaccordancewith
Article11(4)oftheGenevaArrangement .TheParty
choosingtoadoptsuchacourseofactionshall
notifytheotherofitsintention.
Article5
If,havingregardtotheprovisionsoftheGeneva
Arrangement ,eitherPartyconsidersthatitisbeing
placedinaninequitablepositioninrespectoftrade
intextilesascomparedwithathirdcountry,that
Partymayseekconsultations withtheotherwith
aviewtotakingappropriateremedialaction.
Article6
1.Portionsofanyquantitativelimitshownin
AnnexIwhicharenotusedduringanycalendar
yearmaybecarriedoverandaddedtothe
corresponding quantitativelimitinthefollowing
year,withinalimitof10%ofthelatter.
2."Withinalimitof10%ofeachofthequantitative
limitsshowninAnnexI,advancedeliveriesshallbe
authorizedfromthecorresponding quantitativelimit
establishedforthefollowingyear.Amountsdelivered
inadvanceshallbedeductedfromthequantitative
limitsfortheproductsinquestionforthefollowing
year.
3.Withinanyonecalendaryear,unusedportions
ofquantitativelimitsshowninAnnexIinrespectof
anyregionoftheCommunitymarketmaybe
transferredtoanotherquantitativelimitestablishedArticle3
1.WiththeexceptionofCategoryNo2(woven
fabricsofcotton,unbleachedandbleached),imports
intotheCommunityofthetextileproductsshown
inAnnexIwhichareforimmediatere-exportorfor
inwardprocessingandsubsequentre-exportoutside
theCommunityshallnotbesubjecttoquantitative
limitsestablishedunderthisAgreement,provided
theyareenteredassudhunderanadministrative
systemofcontrolinforceforthispurposewithin
theCommunity .
2.Inanycasewherethecompetentauthorities
withintheCommunity ascertainthatimports
describedinparagraph1abovehavebeenretained
forconsumptionwithintheCommunity ,thelatter
willnotifytheGovernment oftheFederative
RepublicofBrazilonaquarterlybasisoftheamounts
involved.Brazilshallinsuchcasesattherequest
oftheCommunity ,chargesuchamountsagainstthe
quantitativelimitorlimitsinquestionforthecurrent
calendaryearorforthenextfollowingyear.
3.Inanycasewherethecompetentauthorities
withintheCommunityascertainunderanadminis­
trativesystemofcontrolinforcethatimportsof
textileproductsshowninAnnexIhavebeencharged
againstquantitativelimitsestablishedthereinbut
subsequentlyre-exportedoutsidetheCommunity ,the
competentauthorityconcernedwillinformthe
Brazilianauthoritiesonaquarterlybasisofthe

NoL47/4 OfficialJournaloftheEuropeanCommunities 18.2.77
forthatsameregionoftheCommunitymarket
withinaceilingof7%oftherecipientquantitative
limit.
4.Theprecedingflexibilityprovisionsshallnot,in
anygivenyear,resultinaquantitativelimitforany
categorybeingexceededbymorethan15%ofthe
quantitativelimitforthatcategoryforthatyear.
5.Theflexibilityprovisionscontainedinthis
ArticlemayonlybeappliedbyBrazilfollowing
writtennotificationtotheCommunity bythe
Brazilianauthorities .2.ShouldeitherPartyinformtheotherthatthe
applicationofthisAgreementhasgivenriseto
difficultiesregardingthemaintenanceofexisting
commercialrelationsbetweenimportersintheCom­
munityandtheirsuppliersinBrazil,thePartieswill
consulttogetherinaccordancewiththeprocedures
setoutinArticle4above.
Article11
ThisAgreementshallapplytotheterritorieswhere
theTreatyestablishingtheEuropeanEconomicCom­
munityapplies,ontheconditionsestablishedinthe
saidTreaty,andtotheterritoryoftheFederative
RepublicofBrazil.
Article12
1.ThisAgreementshallenterintoforceonthefirst
dayofthemonthfollowingthedateonwhichthe
Partieshavenotifiedeachotherofthecompletion
oftheproceduresnecessaryforthepurpose.Itshall
remaininforceuntil31December1977.
2.ThisAgreementshallhaveeffectfrom
1January1976.
3.EitherPartymayatanytimepropose
modifications tothisAgreementordenounceit
providedthatnoticeisgivenatleast120daysbefore
theexpiryofany12-monthperiod;inthelatterevent
theAgreementwillcometoanendattheexpiry
ofthesaid12-monthperiod.
4.TheAnnexestothisAgreementshallforman
integralpartthereof.
Article13
ThisAgreementshallbedrawnupintwocopiesin
theDanish,Dutch,English,French,German,Italian
andPortugueselanguages,eachofthesetextsbeing
equallyauthentic.Article7
Brazilshallendeavourtoensurethatexportsofall
textileproductsforwhichquantitativelimitsare
showninAnnexIarespacedoutasevenlyas
possibleovereachcalendaryear,dueaccountbeing
taken,inparticular,ofseasonalfactors.
Article8
ThePartiesshallexchangeallusefulinformation
concerningtheirmutualtradeintextilesinorder
toensurethesuccessfulimplementation ofthis
Agreement .
Article9
ThequantitativelimitsshowninAnnexIshallbe
administeredunderasystemofdoublechecking,the
detailsofwhicharesetoutinAnnexIItothis
Agreement .
Article10
1.ThePartiesshalltakeallpossiblemeasuresto
ensurethattraditionalchannelsandmethodsoftrade
betweenthemaremaintained .

18.2.77 OfficialJournaloftheEuropeanCommunities NoL47/5
ANNEXI
ProductsforwhichBrazilwillexerciserestrainttowardsthewholeCommunityfromtheentry
intoforceofthisAgreement
TheCommunityherebynotifiesBrazilthatthequantitativelimitsforthetextileproductslisted
belowwillbeallocatedbetweentheMemberStatesasfollows:
Cate­
gory ProductcategoryorsubcategoryCommunity
regionQuantitativelimits
(tonnes)
No
1976 1977
155.05 D 11175 11552
CottonyarnF
I2830
38393370
4162
BNL 6732 6766
UK 452 678
IRL 1113 1119
DK 359 443
EEC 2650028090
2ex55.09 D 6700 6786
Wovenfabricsofcotton,
unbleachedandbleachedF
I
BNL1396
3337
23961518
3381
2428
UK 830 977
IRL 200 203
DK 141 157
EEC 15000 15450
3ex55.09 D 618 682
Wovenfabricsofcotton,other
thanunbleachedandbleachedF
I
BNL225
510
553260
523
556
UK 364 411
IRL 500 503
DK 80 86
EEC 2850 3021
4ex62.02 D 3900 3920
Bedlinen,tablelinen,toiletlinen
andkitchenlinenofcottonF
I
BNL360
340
400432
406
464
UK 740 860
IRL 110 111
DK 150 167
EEC 6000 6360

NoL47/6 OfficialJournaloftheEuropeanCommunities 18.2.77
ANNEX 11
AsagreedbetweenthePartiesinArticle9oftheAgreement,theadministration oftextile
importsfromBrazilwillbebasedonasystemofdoublechecking.Thedetailsofthissystem
havebeenagreedbetweenthePartiesandaresetoutbelow.
ThecompetentauthoritieswithintheCommunitywill,automaticallyandwithoutdelay,accept
importsoftextileproductsonsubmissionoftheimporter'sapplicationtogetherwiththeori­
ginalexportcertificate.ThecompetentauthoritieswithintheCommunityshallbeentitledto
requirethepresentationofanexportcertificateinrespectofgoodsoriginatinginBrazilofthe
categoriesshowninAnnexI.
TheseexportcertificateswillbevalidatedbytheBrazilianauthoritiesuptothetotalamount
oftheagreedceilings.
TheexportcertificatesissuedbytheBrazilianauthoritiesshallbeapplicabletotheproducts
showninAnnexI.
Theexportcertificatemustspecifyorcontain:
1.destinationwithintheCommunity,
2.serialnumber,
3.importer'snameandaddress,
4.exporter'snameandaddress,
5.netweight(inkilogramsortonnes)andvalue,
6.categoryanddescriptionofproduct,
7.certificationbytheBrazilianauthoritiesthatthequantityhasbeendebitedagainstthe
agreedceilingforexportstotheCommunityor,whereappropriate,isforimmediatere­
exportorforinwardprocessingandsubsequentre-exportoutsidetheCommunity .
ThecompetentauthoritieswithintheCommunitywillnotraisedifficultiesintheeventofa
discrepancybetweentheweightindicatedintheexportcertificateandtheshipmentorimport
weightprovideditiswithinreasonablelimits,whiletheBrazilianauthorities,fortheirpart,will
endeavourtokeepanydiscrepanciestoaminimum.
IntheeventoftotalorpartialwithdrawalofanexportcertificatetheBrazilianauthoritieswill
notifythecompetentauthoritieswithintheCommunityofsuchtotalorpartialwithdrawal .The
authoritiesoftheMemberStatesoftheCommunitywilltaketheappropriatemeasuresin
accordancewiththeirexistingadministrative provisions.
TheBrazilianauthoritieswillforwardtothecompetentauthoritieswithintheCommunity ,via
theRepresentations oftheMemberStatesoftheCommunityanddirectlytotheCommission,
quartelyreturnsshowingthetotalnetweightintonnescoveredbytheexportcertificates
issuedagainstthequantitativelimitsforexportstotheMemberStatesoftheCommunity,for
allcategoriesoftextileexportstotheCommunitytowhichthisAgreementapplies.
TheCommunitywillforwardtotheauthoritiesofBrazil,onaquarterlybasis,precisestatistical
informationofimportsofsuchproductsintotheCommunity .