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AGREEMENT

BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA ON TRADE IN COIR PRODUCTS

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

OF THE ONE PART , AND

THE GOVERNMENT OF THE REPUBLIC OF INDIA ,

OF THE OTHER PART ,

DESIROUS OF ENSURING AN INCREASING USE OF COIR PRODUCTS AND THE ORDERLY DEVELOPMENT OF TRADE IN THESE PRODUCTS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY , HEREINAFTER REFERRED TO AS " THE COMMUNITY " , AND THE REPUBLIC OF INDIA ,

NOTING THE JOINT DECLARATION OF INTENT ON THE DEVELOPMENT OF TRADE RELATIONS WITH CEYLON , INDIA , MALAYSIA , PAKISTAN AND SINGAPORE , ANNEXED TO THE FINAL ACT OF THE TREATY OF ACCESSION OF THE KINGDOM OF DENMARK , IRELAND , THE KINGDOM OF NORWAY AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO THE EUROPEAN ECONOMIC COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY ,

HAVING REGARD TO THE COMMERCIAL COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA ,

CONSCIOUS OF THE PROVISIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ,

HAVE DECIDED , IN A SPIRIT OF MUTUAL COOPERATION , TO CONCLUDE THIS AGREEMENT :

ARTICLE 1

THIS AGREEMENT SHALL APPLY TO MANUFACTURED COIR PRODUCTS , ORIGINATING IN AND COMING FROM INDIA , AS DEFINED IN ARTICLE 2 .

ARTICLE 2

THE COMMUNITY SHALL , AUTONOMOUSLY AND IN THE CONTEXT OF ITS OFFER REGARDING THE GRANTING OF GENERALIZED TARIFF PREFERENCES , APPLY TO MANUFACTURED COIR PRODUCTS ORIGINATING IN AND COMING FROM INDIA , THE DUTIES OF THE COMMON CUSTOMS TARIFF SUSPENDED IN ACCORDANCE WITH THE RATES AND TIME-TABLE INDICATED BELOW :

CCT HEADING NO*DESCRIPTION*RATE OF REDUCTION TO BE APPLIED*

**1 . 7 . 1976*1 . 1 . 1978*

58.02*OTHER CARPETS , CARPETING , RUGS , MATS AND MATTING , AND " KELEM " , " SCHUMACKS " AND " KARAMANIE " RUGS AND THE LIKE ( MADE UP OR NOT ) : ***

*A . CARPETS , CARPETING , RUGS , MATS AND MATTING : ***

*I . COIR MATS AND MATTING , AND TUFTED CARPETS , CARPETING AND RUGS*80 % *100 % *

ARTICLE 3

THE COMMUNITY SHALL NOT SUBJECT IMPORTS OF THE PRODUCTS LISTED IN ARTICLE 2 , ORIGINATING IN AND COMING FROM INDIA , TO NEW QUANTITATIVE RESTRICTIONS . THE CONTRACTING PARTIES AGREE TO TAKE ALL APPROPRIATE STEPS TO FACILITATE THE FULL UTILIZATION OF THE IMPORT POSSIBILITIES DERIVING FROM EXISTING QUANTITATIVE RESTRICTIONS .

ARTICLE 4

THE REPUBLIC OF INDIA AND THE COMMUNITY SHALL EXCHANGE ALL INFORMATION THAT IS OF USE TO THE CONTRACTING PARTIES RELATING TO TRADE IN COIR PRODUCTS .

ARTICLE 5

THE IMPLEMENTATION OF THIS AGREEMENT SHALL NOT DISRUPT THE NORMAL TRADE CHANNELS BETWEEN INDIA AND THE COMMUNITY FOR THE PRODUCTS IN QUESTION .

SHOULD ONE OF THE CONTRACTING PARTIES INFORM THE OTHER THAT ABNORMAL DIFFICULTIES HAVE ARISEN IN CONNECTION WITH THE USE OF NORMAL TRADE CHANNELS , THEN THE CONTRACTING PARTIES SHALL CONSULT EACH OTHER ON MEASURES NECESSARY TO REMEDY THE SITUATION .

ARTICLE 6

SUBJECT TO THE POLICIES OF THE GOVERNMENT OF THE REPUBLIC OF INDIA CONCERNING THE REGULATION OF ITS EXPORTS ACCORDING TO ITS PRODUCTION SITUATION AND THE EXTERNAL DEMAND FOR THE PRODUCTS DEFINED ABOVE , THE REPUBLIC OF INDIA AGREES TO TAKE ALL APPROPRIATE STEPS TO ENSURE THAT THE NEEDS OF THE COMMUNITY MARKET AND INDUSTRIES ARE MET IN A NON-DISCRIMINATORY MANNER .

ARTICLE 7

1 . A JOINT COOPERATION COMMITTEE SHALL BE SET UP AND ENTRUSTED WITH THE FOLLOWING TASKS :

- TO EXAMINE ANY PROBLEM WHICH MAY ARISE AS A RESULT OF THE IMPLEMENTATION OF THIS AGREEMENT , INCLUDING THE QUESTION OF APPROPRIATE SOLUTIONS TO PROBLEMS ARISING OUT OF CURRENT QUANTITATIVE RESTRICTIONS ,

- TO INVESTIGATE POSSIBILITES OF , AND FORMULATE SUGGESTIONS FOR , COOPERATION IN REGARD TO :

- EXISTING PRODUCTION METHODS ,

- RESEARCH INTO AND DEVELOPMENT OF NEW TECHNIQUES OF PREPARING AND PROCESSING COIR AND MANUFACTURING COIR GOODS ,

IN ORDER TO EXPAND THE END USES OF COIR ,

- TO DEVELOP CONTACTS BETWEEN , AND FACILITATE JOINT PROJECTS AND PROGRAMMES MUTUALLY AGREED UPON BY , REPRESENTATIVES OF THE COIR TRADE AND INDUSTRY OF BOTH INDIA AND THE COMMUNITY .

2 . THE JOINT COOPERATION COMMITTEE SHALL BE COMPOSED OF REPRESENTATIVES OF THE REPUBLIC OF INDIA AND OF THE COMMUNITY .

3 . THE JOINT COOPERATION COMMITTEE SHALL BE CONVENED UPON THE REQUEST OF EITHER CONTRACTING PARTY AND IN ANY CASE AT LEAST ONCE A YEAR .

ARTICLE 8

THIS AGREEMENT SHALL ENTER INTO FORCE ON THE FIRST DAY OF THE MONTH FOLLOWING THE DATE ON WHICH THE CONTRACTING PARTIES HAVE NOTIFIED EACH OTHER OF THE COMPLETION OF THE PROCEDURES NECESSARY FOR THIS PURPOSE . SUBJECT TO SUCH AMENDMENTS AS MAY BE MUTUALLY AGREED DURING ITS PERIOD OF VALIDITY , THE AGREEMENT SHALL BE VALID UNTIL 31 DECEMBER 1979 .

ARTICLE 9

THE ANNEX CONSTITUTES AN INTEGRAL PART OF THIS AGREEMENT .

ARTICLE 10

THIS AGREEMENT HAS BEEN DRAWN UP IN TWO COPIES , IN THE DANISH , DUTCH , ENGLISH , FRENCH , GERMAN , ITALIAN AND HINDI LANGUAGES , EACH TEXT BEING EQUALLY AUTHENTIC .

ANNEX

JOINT DECLARATION

1 . THE CONTRACTING PARTIES AGREE TO MAKE A SPECIAL EFFORT TO FULFIL THE TASKS SET OUT IN ARTICLE 7 OF THE AGREEMENT . TO THIS END , THEY WILL ENDEAVOUR TO FACILITATE ANNUAL ROUND-TABLE DISCUSSIONS BETWEEN THE INDUSTRIAL , COMMERCIAL AND RESEARCH INTERESTS OF BOTH SIDES , AND THEY UNDERTAKE TO EXAMINE THE POSSIBILITY OF PROVIDING SUPPORT FOR ANY PROGRAMMES OR PROJECTS RECOMMENDED AS A RESULT OF SUCH DISCUSSIONS AS LIKELY TO BE OF MUTUAL BENEFIT TO THESE INTERESTS .

2 . THE CONTRACTING PARTIES WILL KEEP UNDER REVIEW THE EVOLUTION OF FISCAL POLICIES AND THEIR IMPACT ON THE POSSIBILITIES FOR THE INCREASED USE OF COIR PRODUCTS , THE ORDERLY DEVELOPMENT OF TRADE AND POSSIBILITIES OF COOPERATION , HAVING DUE REGARD TO THE DEVELOPMENT NEEDS AND PROGRAMMES OF THE REPUBLIC OF INDIA IN THE COIR SECTOR AND TO THE PROSPECTS OF THE COIR INDUSTRIES IN THE MEMBER STATES OF THE COMMUNITY .