Proposal for a COUNCIL DECISION on the provisional application of a bilateral agreement between the European Community and the Republic of Belarus on trade in textile products

(presented by the Commission)

EXPLANATORY MEMORANDUM

In accordance with the Council negotiating directives of 12 July 1999, the Commission has negotiated an agreement on the revision and an extension of the existing bilateral Agreement between the European Community and the Republic of Belarus on trade in textile products. This agreement in the form of an exchange of letters was initialled on 11 November 1999.

The agreement provides for an extension of the present textiles agreement until 31 December 2003. It furthermore provides for an increase of quantitative limits applied on imports of textile products from the Republic of Belarus for the years 1999 to 2003, as well as for a staged reduction of tariffs applied on exports of textile products from the EC to the Republic of Belarus. Since the agreement provides for increases of the 1999 levels of the quantitative restrictions, provisional application should become effective as soon as possible in 1999.

The Council is invited to approve on behalf of the Community this proposal for a Council Decision on the provisional application of the Agreement in the form of an Exchange of Letters amending the existing Agreement between the European Community and the Republic of Belarus on trade in textile and clothing products pending the formal conclusion of that Agreement on behalf of the Community.

1999/0260 (ACC)

Proposal for a

COUNCIL DECISION

on the provisional application of a bilateral agreement between the European Community and the Republic of Belarus on trade in textile products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with Article 300, paragraph 2, first sentence thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C

Whereas:

(1) The Commission has negotiated on behalf of the Community a bilateral agreement to revise and extend the existing bilateral agreement and protocols on trade in textile products with the Republic of Belarus;

(2) This bilateral agreement should - considering the provisions on increases of quotas in 1999 - be applied on a provisional basis as soon as possible before the end of 1999, after publication of the present Decision in the Official Journal, pending the completion of procedures required for their conclusion, subject to the reciprocal provisional application by the Republic of Belarus.

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of Letters amending the Agreement between the European Community and the Republic of Belarus on trade in textile products shall be applied on a provisional basis, pending its formal conclusion and subject to reciprocal provisional application of the Agreement by the Republic of Belarus [2].

[2] The date from which provisional application will become effective will be published in the Official Journal of the European Communities, C series.

The text of the Agreement is annexed to this Decision.

Article 2

This Decision shall be published in the Official Journal of the European Communities. It shall enter into force the day after its publication in the Official Journal.

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT in the form of an Exchange of Letters between the European Community and the Republic of Belarus amending the Agreement between the European Community and the Republic of Belarus on trade in textile products

Letter from the Council of the European Union

Sir,

1. I have the honour to refer to the negotiations held on 9 and 10 September 1999 between our respective Delegations with a view to renew the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, as last amended and extended by the Agreement in the form of an Exchange of Letters initialled on 7 November 1995.

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

2.1. Annex I which sets out the products referred to in Article 1 of the Agreement is replaced by Appendix 1 to this letter.

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community is replaced by Appendix 2 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community after OPT operations in the Republic of Belarus is replaced for the period of 1 January 2000 to 31 December 2003 by Appendix 3 to this letter.

2.4. The second and third sentence of Article 19, paragraph 1, are replaced by the following text:

'It shall be applicable until 31 December 2003'.

2.5. Imports into Belarus of textiles products from the Community shall be subject to the maximum rates of import duties as depicted in Appendix 4.

In the case of non-application of these rates the Community will have the right to reintroduce for the period of the agreement remaining unexpired on a pro rata basis the levels for quantitative restrictions applicable for 1999 as specified in the Exchange of Letters initialled on 7 November 1995 with annual increases of these quantitative restrictions in accordance with the agreement.

3. Should the Republic of Belarus become a Member to the World Trade Organisation before the date of expiry of the Agreement the restrictions in force shall be phased out in the framework of the WTO Agreement on Textiles and Clothing and Belarus' Protocol of accession to the WTO. In addition, the provisions of Articles 2, paragraphs 2 and 3, 3, 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 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. 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 & on the conditions to be specified in an Exchange of Notes (see Appendix 5).

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

For the Council of the European Union

Appendix 1

Annex I to the Agreement between the European Community and Belarus on trade in textile products initialled on 1 April 1993, containing the category and goods descriptions for textiles products, is replaced by Annex I to EC Regulation 3030/93 [3]. It is understood that without prejudice to the rules for the interpretation of the combined nomenclature, the wording of the description of goods is considered to be of indicative value only, since the products covered by each category are determined, within that Annex by CN codes. Where there is an 'ex' symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

[3] In 1999 this Annex was published in EC Official Journal L 134 of 28.5.1999.

Appendix 2

Annex II

>TABLE>

T pieces: thousand of pieces

Appendix 3

Annex to Protocol C

>TABLE>

Appendix 4

Maximum rates of duties applicable for imports into the Republic of Belarus of textile products from the European Community

>TABLE>

Appendix 5

EXCHANGE OF NOTES

The Directorate General for Trade of the Commission of the European Union presents its compliments to the Mission of the Republic of Belarus and has the honour to refer to the Agreement between the European Community and the Republic of Belarus on Trade in Textile Products initialled on 1 April 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on & 1999.

The Directorate General for Trade wishes to inform the Mission of the Republic of Belarus that, whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the Agreement in the form of an Exchange of Letters, the European Community is prepared to allow the provisions of the Agreement to apply de facto from &. This is on the understanding that either Party may at any time terminate this de facto application of the Agreement in the form of an Exchange of Letters provided that four months notice is given.

The Directorate General for Trade would be grateful if the Mission of the Republic of Belarus would confirm its agreement to the foregoing.

Letter from the Government of the Republic of Belarus

Sir,

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

"Sir,

1. I have the honour to refer to the negotiations held on 9 and 10 September 1999 between our respective Delegations with a view to renew the Agreement between the European Community and the Republic of Belarus on trade in textile products initialled on 1 April 1993, as last amended and extended by the Agreement in the form of an Exchange of Letters initialled on 7 November 1995.

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

2.1. Annex I which sets out the products referred to in Article 1 of the Agreement is replaced by Appendix 1 to this letter.

2.2. Annex II which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community is replaced by Appendix 2 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for exports from the Republic of Belarus to the European Community after OPT operations in the Republic of Belarus is replaced for the period of 1 January 2000 to 31 December 2003 by Appendix 3 to this letter.

2.4. The second and third sentence of Article 19, paragraph 1, are replaced by the following text:

'It shall be applicable until 31 December 2003'.

2.5. Imports into Belarus of textiles products from the Community shall be subject to the maximum rates of import duties as depicted in Appendix 4.

In the case of non-application of these rates the Community will have the right to reintroduce for the period of the agreement remaining unexpired on a pro rata basis the levels for quantitative restrictions applicable for 1999 as specified in the Exchange of Letters initialled on 7 November 1995 with annual increases of these quantitative restrictions in accordance with the agreement.

3. Should the Republic of Belarus become a Member to the World Trade Organisation before the date of expiry of the Agreement the restrictions in force shall be phased out in the framework of the WTO Agreement on Textiles and Clothing and Belarus' Protocol of accession to the WTO. In addition, the provisions of Articles 2, paragraphs 2 and 3, 3, 6, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 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. 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 & on the conditions to be specified in an Exchange of Notes (see Appendix 5).

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

I have the honour to confirm that my Government is in agreement with the content of your letter.

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

For the Government of the Republic of Belarus

Appendix 1

Annex I to the Agreement between the European Community and Belarus on trade in textile products initialled on 1 April 1993, containing the category and goods descriptions for textiles products, is replaced by Annex I to EC Regulation 3030/93 [4]. It is understood that without prejudice to the rules for the interpretation of the combined nomenclature, the wording of the description of goods is considered to be of indicative value only, since the products covered by each category are determined, within that Annex by CN codes. Where there is an 'ex' symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

[4] In 1999 this Annex was published in EC Official Journal L 134 of 28.5.1999.

Appendix 2

Annex II

>TABLE>

T pieces: thousand of pieces

Appendix 3

Annex to Protocol C

>TABLE>

Appendix 4

Maximum rates of duties applicable for imports into the Republic of Belarus of textile products from the European Community

>TABLE>

Appendix 5

EXCHANGE OF NOTES

The Directorate General for Trade of the Commission of the European Union presents its compliments to the Mission of the Republic of Belarus and has the honour to refer to the Agreement between the European Community and the Republic of Belarus on Trade in Textile Products initialled on 1 April 1993, as last amended by the Agreement in the form of an Exchange of Letters initialled on & 1999.

The Directorate General for Trade wishes to inform the Mission of the Republic of Belarus that, whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the Agreement in the form of an Exchange of Letters, the European Community is prepared to allow the provisions of the Agreement to apply de facto from &. This is on the understanding that either Party may at any time terminate this de facto application of the Agreement in the form of an Exchange of Letters provided that four months notice is given.

The Directorate General for Trade would be grateful if the Mission of the Republic of Belarus would confirm its agreement to the foregoing.