AGREEMENT in the form of an exchange of letters amending the Agreement between the European Economic Community and the Republic of India on trade in textile products

Letter N° 1

Sir,

1. I have the honour to refer to the consultations held on 15 to 17 December 1992 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and the Republic of India applied since 1 January 1987, as extended by the exchange of letters applied since 1 January 1992 (hereinafter 'the Agreement`).

2. As a result of these consultations, both Parties agreed to amend the following provisions of the Agreement:

2.1. Annex I and Annex II which set out the products concerned by the Agreement and the quantitative restrictions for exports respectively, from the Republic of India to the European Economic Community, are replaced for the period 1 January 1993 to 31 December 1994 by Appendix 1 and Appendix 2 to this letter, respectively.

2.2. Article 8 (6) and Protocol C to the Agreement are deleted.

2.3. Article 9 (2) is replaced by the following:

'The information referred to in paragraph 1 shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate.`

2.4. Article 12 is replaced by the following:

'1. The quantitative limits established under this Agreement on imports into the Community of textile products of Indian origin will not be broken down by the Community into regional shares.

2. The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows resulting in regional concentration of direct imports into the Community.

3. India shall monitor its exports of products under restraint or surveillance into the Community. Should a sudden and prejudicial change in traditional trade flows arise, the Community will be entitled to request consultations in order to find a satisfactory solution to those problems. Such consultations must be held within 15 working days of their being requested by the Community.

4. India shall endeavour to ensure that exports of textile products subject to quantitative limits into the Communtiy are spaced out as evenly as possible over the year due account being taken in particular of seasonal factors.`

2.5. Article 14 and all references to this Article in the Agreement are deleted.

2.6. The following is added at the beginning of Article 16 (1):

'1. Save where it is otherwise provided for in this Agreement, . . .`

2.7. The second sentence of Article 18 (1) is replaced by the following:

'It shall be applicable until 31 December 1994. Thereafter, the application of all the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 1995, unless either Party notifies the other at least six months before 31 December 1994 that it does not agree with this extension. However, if the Agreement on trade in textiles and clothing products resulting from the Uruguay Round GATT trade negotiations is concluded and enters into force at an earlier date, this Agreement shall be automatically terminated as of the date agreed for the implementation of the results of the Uruguay Round GATT trade negotiations.`

2.8. The first sentence of Article 6 (1) of Protocol A is replaced by the following:

'1. The export certificate shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Economic Community is applied. However, where the Community has made recourse to the provisions of Article 8 in accordance with the provisions of Agreed Minute No 1, or to Agreed Minute No 2, the textile products covered by the export certificates can only be put into free circulation in the region(s) of the Community indicated in those certificates.`

2.9. The second indent of Article 11 (1) of Protocol A to the Agreement is replaced by the following:

'The import authorizations shall be valid for six months from the date of their issue for imports throughout the customs territory to which the Treaty establishing the European Economic Community is applied. However, where the Community has recourse to the provisions of Article 8 in accordance with the provisions of Agreed Minute No 1, or to Agreed Minute No 2, the products covered by the import licences can only be put into free circulation in the regions(s) of the Community indicated in those licences.`

2.10. The second and fifth indents of Article 13 (2) of Protocol A are replaced by the following:

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

BL = Benelux,

DE = Germany,

DG = Denmark,

EL = Greece,

ES = Spain,

FR = France,

GB = United Kingdom,

IE = Ireland,

IT = Italy,

PT = Portugal`,

'- a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.`

2.11. Agreed Minute N° 1 set out in Appendix 3 to this letter shall form an integral part of the Agreement.

2.12. Agreed Minute N° 2 set out in Appendix 4 to this letter shall form an integral part of the Agreement.

2.13. Agreed Minute N° 3 set out in Appendix 5 to this letter shall form an integral part of the Agreement.

2.14. Agreed Minute N° 4 set out in Appendix 6 to this letter shall form an integral part of the Agreement.

2.15. Agreed Minute N° 5 set out in Appendix 7 to this letter shall form an integral part of the Agreement.

3. The Parties agreed that 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.

The Parties also agreed that this Agreement in the form of an exchange of letters and the amendments hereby to the Agreement of 1987, as extended, shall be applied provisionally from 1 January 1993.

4. I should be obliged if you kindly confirm the acceptance of your Government of the foregoing.

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

For the Council of the European Communities

Appendix 1

(The contents of Appendix 1 are identical to those of Appendix 1 to the Agreement with Singapore; see pages 16 to 42)

Appendix 2

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

Agreed Minute N° 1

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, initialled on 18 December 1992, the Parties agreed that Article 8 of the Agreement does not preclude the Community, if the conditions are fulefilled, from applying the safeguard measures for one or more of its regions in conformity with the principles of the internal market.

In such an event, India shall be informed in advance of the relevant provisions of Protocol A to the Agreement to be applied, as appropriate.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 4

Agreed Minute N° 2

Notwithstanding Article 12 (1) of this Agreement, for imperative technical or administrative reasons or to find a solution to economic problems resulting from regional concentration of imports, or in order to combat circumvention and fraud of the provisions of this Agreement, the Community will establish for a limited period of time a specific management system in conformity with the principles of the internal market.

However, if the Parties are unable to reach a satisfactory solution during the consultations provided for in Article 12 (3), India undertakes, if so requested by the Community, to respect temporary export limits for one or more regions of the Community. In such a case, these limits shall not preclude the importation into the region(s) concerned of products which were shipped from India on the basis of export certificates obtained before the date of formal notification to India by the Community about the introduction of the above limits.

The Community shall inform India of the technical and administrative measures, such as defined in the attached note verbale, that need to be introduced by both Parties in order to implement the above paragraphs in conformity with the principles of the internal market.

For the Government of the Republic of India

For the Council of the European Communities

Note verbale

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of India to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Republic of India and the Community applied since 1 January 1987, as extended by the exchange of letters initialled on 16 December 1991 and as further extended by the exchange of letters of 18 December 1992.

The Directorate-General wishes to inform the Mission of the Republic of India that the Community has decided to apply, starting from 1 January 1993, the provisions of paragraph 1 of Agreed Minute No 2 to the exchange of letters initialled on 18 December 1992. Consequently, the corresponding provisions of Articles 6 and 11 of Protocol A to the Agreement shall also be applied as of the above date.

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

Appendix 5

Agreed Minute No 3

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, initialled in Brussels on 18 December 1992, the Parties agreed that India shall endeavour not to deprive certain regions of the Community which have traditionally had relatively small shares of Community quotas of imports of products serving as inputs for their processing industry.

The Community and India further agreed to hold consultations, should the need arise, in order to avert any problems which might occur in this respect.

The Parties agreed that this Agreed Minute replaces the corresponding Agreed Minute of the Agreement on this subject.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 6

Agreed Minute N° 4

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, applied since 1 January 1987, as extended by the exchange of letters initialled on 15 December 1991 and further extended by the exchange of letters initialled on 18 December 1992, India agreed that, from the date of request for and pending the consultations referred to in Article 12 (3), it shall cooperate by not issuing export licences that would further aggravate the problems resulting from the regional concentration of direct imports into the Community.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 7

Agreed Minute N° 5

In the context of the Agreement between the Community and the Republic of India on trade in textile products initialled on 18 December 1992, the following was agreed:

1. Exports of hand-made garments made in the cottage industry of India from fabrics referred to in paragraph 1 (a) of Protocol B (i. e. those categories of products falling within Groups I B, II B and III B in Annex I to the initialled Agreement) will be included in the quantitatieve limits established under the Agreement. These products will be covered by export certificates.

2. In addition, for such products belonging to categories 6, 8, 15 and 27, the following global quantities:

1993 // 4 311 pieces

1994 // 4 484 pieces

1995 // 4 665 pieces

may be exported to the Community, provided they are accompanied by the certificate referred to in paragraph 2 of Protocol B bearing the following reference in box 7: 'Hand-made garments`. The category of the product in question, as well as the quota year, must also be indicated in the same box.

For each of the categories in question the total quantity exported to the Community shall not exceed the following levels:

1 000 pieces // 1993 // 1994 // 1995

Category 6 // 646 // 678 // 712

Category 18 // 1 645 // 1 690 // 1 737

Category 15 // 730 // 774 // 821

Category 27 // 1 290 // 1 342 // 1 395

3. The provisions of Article 7 of the Agreement shall apply to the above quantities, except that there shall be no inter-category transfers between the quantitative limits referred to above and those set out in Annex II to the Agreement.

4. The provisions of Title III, IV and V of Protocol A shall apply mutatis mutandis to the above products.

For the Government of the Republic of India

For the Council of the European Communities

Exchange of notes

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of India to the European Communities and has the honour to refer to the Agreement on textile products between the Republic of India and the Community applied since 1 January 1987, as extended by the exchange of letters initialled on 16 December 1991 and as further extended by the exchange of letters initialled on 18 December 1992.

The Directorate-General wishes to inform the Mission of the Republic of India that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1993. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 120 days' notice is given.

The Directorate-General for External Relations would be grateful if the Mission would confirm its Agreement to the foregoing.

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

Letter N° 2

Sir,

I have the honour to acknowledge receipt of your letter of 18 December 1992, which reads as follows:

'Sir,

1. I have the honour to refer to the consultations held on 15 to 17 December 1992 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and the Republic of India, applied since 1 January 1987, as extended by the exchange of letters applied since 1 January 1992 (hereinafter "the Agreement").

2. As a result of these consultations, both Parties agreed to amend the following provisions of the Agreement:

2.1. Annex I and Annex II which set out the products concerned by the Agreement and the quantitative restrictions for exports, respectively from the Republic of India to the European Economic Community, are replaced for the period 1 January 1993 to 31 December 1994 by Appendix 1 and Appendix 2 to this letter, respectively.

2.2. Article 8 (6) and Protocol C to the Agreement are deleted.

2.3. Article 9 (2) is replaced by the following:

"The information referred to in paragraph 1 shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate."

2.4. Article 12 is replaced by the following:

"1. The quantitative limits established under this Agreement on imports into the Community of textile products of Indian origin will not be broken down by the Community into regional shares.

2. The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows resulting in regional concentration of direct imports into the Community.

3. India shall monitor its exports of products under restraint or surveillance into the Community. Should a sudden and prejudicial change in traditional trade flows arise, the Community will be entitled to request consultations in order to find a satisfactory solution to those problems. Such consultations must be held within 15 working days of their being requested by the Community.

4. India shall endeavour to ensure that exports of textile products subject to quantitative limits into the Community are spaced out as evenly as possible over the year due account being taken in particular of seasonal factors."

2.5. Article 14 and all references to this Article in the Agreement are deleted.

2.6. The following is added at the beginning of

"1. Save where it is otherwise provided for in this Agreement, . . ."

2.7. The second sentence of Article 18 (1) is replaced by the following:

"It shall be applicable until 31 December 1994. Thereafter, the application of all the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 1995, unless either Party notifies the other at least six months before 31 December 1994 that it does not agree with this extension. However, if the Agreement on trade in textiles and clothing products resulting from the Uruguay Round GATT trade negotiations is concluded and enters into force at an earlier date, this Agreement shall be automatically terminated as of the date agreed for the implementation of the results of the Uruguay Round GATT trade negotiations."

2.8. The first sentence of Article 6 (1) of Protocol A is replaced by the following:

"1. The export certificate shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Economic Community is applied. However, where the Community has made recourse to the provisions of Article 8 in accordance with the provisions of the Agreed Minute No 1, or to the Agreed Minute No 2, the textile products covered by the export licences or export certificates can only be put into free circulation in the region(s) of the Community indicated in those certificates."

2.9. The second indent of Article 11 (1) of Protocol A to the Agreement is replaced by the following:

"The import authorizations shall be valid for six months from the date of their issue for imports throughout the customs territory to which the Treaty establishing the European Economic Community is applied. However, where the Community has recourse to the provisions of Article 8 in accordance with the provisions of the Agreed Minute No 1, or to Agreed Minute No 2, the products covered by the import licences can only be put into free circulation in the region(s) of the Community indicated in those licences."

2.10. The second and fifth indents of Article 13 (2) of Protocol A are replaced by the following:

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

BL = Benelux,

DE = Germany,

DK = Denmark,

EL = Greece,

ES = Spain,

FR = France,

GB = United Kingdom,

IE = Ireland,

IT = Italy,

PT = Portugal",

"- a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance."

2.11. Agreed Minute No 1 set out in Appendix 3 to this letter shall form an integral part of the Agreement.

2.12. Agreed Minute No 2 set out in Appendix 4 to this letter shall form an integral part of the Agreement.

2.13. Agreed Minute No 3 set out in Appendix 5 to this letter shall form an integral part of the Agreement.

2.14. Agreed Minute No 4 set out in Appendix 6 to this letter shall form an integral part of the Agreement.

2.15. Agreed Minute No 5 set out in Appendix 7 to this letter shall form an integral part of the Agreement.

3. The Parties agreed that 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.

The Parties also agreed that this Agreement in the form of an exchange of letters and the amendments hereby to the Agreement of 1987, as extended, shall be applied provisionally from 1 January 1993.

4. I should be obliged if you kindly confirm the acceptance of your Government of the foregoing.

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 the Republic of India

Appendix 1

(The contents of Appendix 1 are identical to those of Appendix 1 to the Agreement with Singapore; see pages 16 to 42)

Appendix 2

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

Agreed Minute N° 1

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, initialled on 18 December 1992, the Parties agreed that Article 8 of the Agreement does not preclude the Community, if the conditions are fulfilled, from applying the safeguard measures for one or more of its regions in conformity with the principles of the internal market.

In such an event, India shall be informed in advance of the relevant provisions of Protocol A to the Agreement to be applied, as appropriate.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 4

Agreed Minute N° 2

Notwithstanding Article 12 (1) of this Agreement, for imperative technical or administrative reasons or to find a solution to economic problems resulting from regional concentration of imports, or in order to combat circumvention and fraud of the provisions of this Agreement, the Community will establish for a limited period of time a specific management system in conformity with the principles of the internal market.

However, if the Parties are unable to reach a satisfactory solution during the consultations provided for in Article 12 (3), India undertakes, if so requested by the Community, to respect temporary export limits for one or more regions of the Community. In such a case, these limits shall not preclude the importation into the region(s) concerned of products which were shipped from India on the basis of export certificates obtained before the date of formal notification to India by the Community about the introduction of the above limits.

The Community shall inform India of the technical and administrative measures, such as defined in the attached note verbale, that need to be introduced by both Parties in order to implement the above paragraphs in conformity with the principles of the internal market.

For the Government of the Republic of India

For the Council of the European Communities

Note verbale

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of India to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Republic of India and the Community applied since 1 January 1987, as extended by the exchange of letters initialled on 16 December 1991 and as further extended by the exchange of letters of 18 December 1992.

The Directorate-General wishes to inform the Mission of the Republic of India that the Community has decided to apply, starting from 1 January 1993, the provisions of paragraph 1 of Agreed Minute No 2 to the exchange of letters initialled on 18 December 1992. Consequently, the corresponding provisions of Articles 6 and 11 of Protocol A to the Agreement shall also be applied as of the above date.

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

Appendix 5

Agreed Minute No 3

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, initialled in Brussels on 18 December 1992, the Parties agreed that India shall endeavour not to deprive certain regions of the Community which have traditionally had relatively small shares of Community quotas of imports of products serving as inputs for their processing industry.

The Community and India further agreed to hold consultations, should the need arise, in order to avert any problems which might occur in this respect.

The Parties agreed that this Agreed Minute replaces the corresponding Agreed Minute of the Agreement on this subject.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 6

Agreed Minute N° 4

In the context of the Agreement between the European Economic Community and the Republic of India on trade in textile and clothing products, applied since 1 January 1987, as extended by the exchange of letters initialled on 15 December 1991 and further extended by the exchange of letters initialled on 18 December 1992, India agreed that, from the date of request for and pending the consultations referred to in Article 12 (3), it shall cooperate by not issuing export licences that would further aggravate the problems resulting from the regional concentration of direct imports into the Community.

For the Government of the Republic of India

For the Council of the European Communities

Appendix 7

Agreed Minute N° 5

In the context of the Agreement between the Community and the Republic of India on trade in textile products initialled on 18 December 1992, the following was agreed:

1. Exports of hand-made garments made in the cottage industry of India from fabrics referred to in paragraph 1 (a) of Protocol B (i. e. those categories of products falling within Groups I B, II B and III B in Annex I to the initialled Agreement) will be included in the quantitative limits established under the Agreement. These products will be covered by export certificates.

2. In addition, for such products belonging to categories 6, 8, 15 and 27, the following global quantities:

1993 // 4 311 pieces

1994 // 4 484 pieces

1995 // 4 665 pieces

may be exported to the Community, provided they are accompanied by the certificate referred to in paragraph 2 of Protocol B bearing the following reference in box 7: 'Hand-made garments`. The category of the product in question, as well as the quota year, must also be indicated in the same box.

For each of the categories in question the total quantity exported to the Community shall not exceed the following levels:

1 000 pieces // 1993 // 1994 // 1995

Category 6 // 646 // 678 // 712

Category 18 // 1 645 // 1 690 // 1 737

Category 15 // 730 // 774 // 821

Category 27 // 1 290 // 1 342 // 1 395

3. The provisions of Article 7 of the Agreement shall apply to the above quantities, except that there shall be no inter-category transfers between the quantitative referred to above and those set out in Annex II to the Agreement.

4. The provisions of Title III, IV and V of Protocol A shall apply mutatis mutandis to the above products.

For the Government of the Republic of India

For the Council of the European Communities

Exchange of notes

The Mission of the Republic of India to the European Communities presents its compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Agreement on textile products between the Republic of India and the Community applied since 1 January 1987, as extended by the exchange of letters initialled on 16 December 1991 and as further extended by the exchange of letters initialled on 18 December 1992.

The Mission of the Republic of India wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Community is prepared to allow the provisions of the extended Agreement to apply de facto from 1 January 1993. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 120 day's notice is given.

The Directorate-General for External Relations would be grateful if the Mission would confirm its Agreement to the foregoing.

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