AGREEMENT in the form of an Exchange of Letters between the European Community and the Republic of Uzbekistan concerning the renewal of the Agreement between the European Economic Community and the Republic of Uzbekistan on Trade in Textile Products initialled on 8 June 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 23 February 1995

Letter from the Council of the European Union

Sir,

I have the honour to refer to the negotiations held on 4 December 1995 between our respective Delegations with a view to renew the Agreement between the European Economic Community and the Republic of Uzbekistan on trade in textile products initialled on 8 June 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 23 February 1995.

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

2.1. The second and third sentence of Article 20, paragraph 1, are replaced by the following text:

'It shall be applicable until 31 December 1998. 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 1999, unless either Party notifies the other at least six months before 31 December 1998, that it does not agree with this extension.`

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Uzbekistan to the European Community is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 1 to this letter.

3. Should the Republic of Uzbekistan become a Member of the World Trade Organization before the date of expiry of the Agreement, the provisions of Articles 2, paragraphs 2 and 3, 3, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, Protocol A, Protocol B, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2, paragraph 17 of the WTO Agreement on Textiles and Clothing.

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

5. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, 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. In the meantime, it shall be applied provisionally from 1 January 1996 on conditions of reciprocity.

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

For the Council of the European Union

Appendix 1

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 2

AGREED MINUTE

In the context of the Agreement between the European Community and the Republic of Uzbekistan on trade in textile and clothing products, initialled in Brussels on 4 December 1995, the Republic of Uzbekistan declared that at present there are neither quantitative limits, licensing systems or other non-tariff barriers applicable to imports of textile and clothing products originating in the European Community into the Republic of Uzbekistan, and agreed not to introduce any non-tariff barriers to imports of textile and clothing products originating in the European Community.

As regards customs duties presently applicable to the abovementioned imports into the Republic of Uzbekistan, as annexed to this Agreed Minute, both Parties agreed that these duties will be maintained at the present level for the duration of the Agreement.

Concerning customs duties applicable to imports into the Republic of Uzbekistan of carpets covered by Harmonized System codes 5701, 5702, 5703, 5704 and 5705, the Community's proposal for their progressive alignment within the period of duration of the Agreement to customs duties applicable to imports of the same products into the Community was accepted by the Republic of Uzbekistan.

Both parties also agreed that the Republic of Uzbekistan will ensure that the supply to the Community industry of cotton and other raw textile materials, as well as of other textile products shall be made at conditions not less favourable than to users in the Republic of Uzbekistan.

Brussels, 4 December 1995.

For the Government of the Republic of Uzbekistan

For the Council of the European Union

ANNEX

>TABLE>

Letter from the Government of the Republic of Uzbekistan

Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir,

I have the honour to refer to the negotiations held on 4 December 1995 between our respective Delegations with a view to renew the Agreement between the European Economic Community and the Republic of Uzbekistan on trade in textile products initialled on 8 June 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on 23 February 1995.

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

2.1. The second and third sentence of Article 20, paragraph 1, are replaced by the following text:

"It shall be applicable until 31 December 1998. 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 1999, unless either Party notifies the other at least six months before 31 December 1998, that it does not agree with this extension."

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Uzbekistan to the European Community is replaced for the period 1 January 1996 to 31 December 1999 by Appendix 1 to this letter.

3. Should the Republic of Uzbekistan become a Member of the World Trade Organization before the date of expiry of the Agreement, the provisions of Articles 2, paragraphs 2 and 3, 3, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, Protocol A, Protocol B, Protocol C, Agreed Minute No 1, Agreed Minute No 2, Agreed Minute No 3, Agreed Minute No 4 and Agreed Minute No 6 shall continue to be applicable as administrative arrangements within the meaning of Article 2, paragraph 17 of the WTO Agreement on Textiles and Clothing.

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

5. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, 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. In the meantime, it shall be applied provisionally from 1 January 1996 on conditions of reciprocity.

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 Uzbekistan

Appendix 1

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 2

AGREED MINUTE

In the context of the Agreement between the European Community and the Republic of Uzbekistan on trade in textile and clothing products, initialled in Brussels on 4 December 1995, the Republic of Uzbekistan declared that at present there are neither quantitative limits, licensing systems or other non-tariff barriers applicable to imports of textile and clothing products originating in the European Community into the Republic of Uzbekistan, and agreed not to introduce any non-tariff barriers to imports of textile and clothing products originating in the European Community.

As regards customs duties presently applicable to the abovementioned imports into the Republic of Uzbekistan, as annexed to this Agreed Minute, both Parties agreed that these duties will be maintained at the present level for the duration of the Agreement.

Concerning customs duties applicable to imports into the Republic of Uzbekistan of carpets covered by Harmonized System codes 5701, 5702, 5703, 5704 and 5705, the Community's proposal for their progressive alignment within the period of duration of the Agreement to customs duties applicable to imports of the same products into the Community was accepted by the Republic of Uzbekistan.

Both parties also agreed that the Republic of Uzbekistan will ensure that the supply to the Community industry of cotton and other raw textile materials, as well as of other textile products shall be made at conditions not less favourable than to users in the Republic of Uzbekistan.

Brussels, 4 December 1995.

For the Government of the Republic of Uzbekistan

For the Council of the European Union

ANNEX

>TABLE>