Proposal for a COUNCIL DECISION on the conclusion, on behalf of the European Community, of an Agreement in the form of an Exchange of Letters between the European Community and the Republic of Estonia amending Protocol 1 of the Europe Agreement and on its provisional application pending its entry into force

(presented by the Commission)

EXPLANATORY MEMORANDUM

Protocol 1 to the Europe Agreement with Estonia sets out the arrangements applicable to trade in textile and clothing products, notably the rules for the application of a double-checking surveillance system (licensing without quotas) to the textile products listed in Annex II to the Protocol.

The main purpose of surveillance is to discourage circumvention by operators in neighbouring countries. With the successive liberalisation of textile quota regimes with CIS countries (Russia in 1998, Ukraine in 2001), the necessity of maintaining double-checking with countries like the Baltic States has been diminishing. The regimes with Latvia and Lithuania expired on 31.12.2000. Since the Textiles Protocol with Estonia does not provide a time limit, a specific act by the Parties, modifying the Protocol has become necessary.

Agreed Minute No. 5 of Protocol 1 provides the basis for a review of the application of the double-checking system, including an examination of the list of products subject to double-checking surveillance.

Consultations have been held with Estonia and it was concluded that double-checking should be terminated for all the textile products listed in Annex II to Protocol 1. It was accordingly agreed that Annex II should be revised by an Agreement in the form of an Exchange of Letters.

The termination of double-checking with Estonia is in line with the regimes now in place with Latvia and Lithuania. It also implies equal treatment of textiles and clothing imports from all the candidate countries for EU accession.

The Council is invited to approve this proposal for a Council Decision on the signing, on behalf of the European Community, of an Agreement in the form of an Exchange of Letters between the European Community and the Republic of Estonia amending Protocol 1 of the Europe Agreement and authorising its provisional application.

2001/0141 (ACC)

Proposal for a COUNCIL DECISION on the conclusion, on behalf of the European Community, of an Agreement in the form of an Exchange of Letters between the European Community and the Republic of Estonia amending Protocol 1 of the Europe Agreement and on its provisional application pending its entry into force

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the first sentence of the first subparagraph of Article 300(2) 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 in the form of an Exchange of Letters to amend the Protocol 1 on trade in textile and clothing products to the Europe Agreement,establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part;

(2) The Agreement in the form of an Exchange of Letters should be approved on behalf of the Community;

(3) This Agreement in the form of an Exchange of Letters should be applied on a provisional basis, pending completion of the relevant procedures for its entry into force, subject to reciprocity.

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of Letters amending Protocol 1 on trade in textile products to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part, is hereby approved on behalf of the European Community.

The text of the Agreement is annexed to this Decision.

Article 2

The President of the Council is hereby authorised to designate the persons empowered to sign the Agreement in the form of an Exchange of Letters in order to express the consent of the Community to be bound thereby.

Article 3

Subject to reciprocity, the Agreement in the form of an Exchange of Letters shall be applied on a provisional basis from 1 January 2001, pending its entry into force.

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 Estonia amending Protocol 1 of the Europe Agreement

A. Letter from the Council of the European Union

Sir,

I have the honour to refer to Protocol 1 of the Europe Agreement on trade in textile and clothing products.

Following consultations held in December 2000 pursuant to Agreed Minute No. 5 of Protocol 1 on the application of the double-checking (licensing) system for textile products, the Parties have agreed to discontinue the application of double-checking and associated licensing. Accordingly, Protocol 1 of the Europe Agreement should be amended as follows:

The textile product categories listed in Annex II of Protocol 1 of the Europe Agreement are deleted from the Annex with effect from 1 January 2001.

I should be obliged if you could kindly confirm you Government's acceptance of the foregoing.

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

For the Council of the European Union

B. Letter from the Republic of Estonia

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

"Sir,

I have the honour to refer to Protocol 1 of the Europe Agreement on trade in textile and clothing products.

Following consultations held in December 2000 pursuant to Agreed Minute No. 5 of Protocol 1 on the application of the double-checking (licensing) system for textile products, the Parties have agreed to discontinue the application of double-checking and associated licensing. Accordingly, Protocol 1 of the Europe Agreement should be amended as follows:

The textile product categories listed in Annex II of Protocol 1 of the Europe Agreement are deleted from the Annex with effect from 1 January 2001.

I should be obliged if you could kindly confirm you Government's acceptance of the foregoing."

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

For the Government of the Republic of Estonia