ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)327
Vol.1982/0119

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
Genero!SecretonotCOM(82)327 final
Brussels,7June1982
FOROFFICIAL USEONLY
Recommendation fora
COUNCILDECISION
authorizingtheCommissiontonegotiatewithYugoslavia aprotocol
concerningtradeintextileproductsannexedtotheEEC-Yugoslavia
.iCooperation Agreement
(submittedtotheCouncilbytheCommission )
C0M(82)327final

EXPLANATORY MEMORANDUM
1.Importsoftextileproductsoriginating inYugoslaviaarecovered
0
byabilateralagreementwhichwasconcludedunderArticle4ofthe'MFA
andwasapplicable from1January1978to31December1982.Thetrade
provisionsoftheEEC-Yugoslavia Cooperation Agreementcameintoforce
on1July1980(EEC-Yugoslavia InterimAgreement)® ThisAgreementcovers
textileproductsbutstipulates,inArticle17,thatitiswithoutprejudice
totheprovisionsoftheMFAbilateralagreementandlaysdownthatnolater
thansix'monthsbeforetheexpiryoftheagreementontradeintextilesbetween
YugoslaviaandtheCommunityconcludedundertheMFA,thatisby30June1982,
thecontractingpartiesaretodeterminethesubsequentarrangements to
applytotextileproducts,,.
2«Thepurposeofthiscommunication istoproposetotheCouncilsupple­
mentarynegotiatingdirectiveswithaviewtoestablishing thefuturearrange­
mentsforYugoslavexportsoftextileproducts*
3„Thegeneralnegotiatingdirectivesregardingtextilesadoptedbythe
Councilatitsmeetingof25February1982applytoYugoslaviainthesame
wayastoothersuppliers,subjecttothespecialprovisionsapplicableto
Yugoslavia,notgblyasregardsoutwardprocessingtraffic*
4*Nevertheless,inviewofthespecificnatureoftheCommunity's
relationswithYugoslavia,certainaspectsofthearrangements applicable
tothatcountry'stextileexportseitherdonotcomeunderthegeneral
textiledirectives (legalbasis,tariffaspects)orjustifycertainlimited
derogations fromthosedirectives (productcoverage,surgeclause)*
5aThisproposalforsupplementary directivesisaimedatsecuringfor
textileexportsoriginating inYugoslaviaspecificarrangements whichtake
accountbothofthepoliticalandlegalimperativesresultingfromthe
Cooperation Agreementandofthecurrentarrangements forthoseexports,
whileatthesametimeremainingfullyconsistentwiththepolicytheCommunity
hasrecentlyadoptedconcerningtextileimportsoriginating inalllow-cost
countries,includingthoselinkedtdtheEECbyvariouspreferential agree-

Specificproposals
I.Formoftheagreement
1,Itisproposedthatthefuturearrangements togovernimportsoftextile
productsoriginating inYugoslaviashouldbethesubjectofaprotocoltobe
annexedtotheCooperation Agreement,TheCommissionconsidersthatthis
solutionisinkeepingwiththespiritandobjectivesoftheEEC-Yugoslavia
Cooperation Agreement,
2,Thisprotocolwouldcoverthequantitative andtariffa.spectsandwould
applytodirectimportsandthoseunderoutwardprocessingarrangements,
3,Insofarasthequantitative aspectsareconcerned,thisprotocol
shouldincorporatetheprovisionsofthestandardagreementtobenegotiated
withtheotherpartners,
II,Derogations fromthegeneraltextiledirectivesadoptedbytheCouncil
on25February1982
1-
Itisproposedthatsomeproductsshouldbeexcludedfromthescope
oftheprotocol.Thismeansthattheproductsinquestion,whicharecovered
bythecurrentMFA,wouldnevertheless remainsubjecttothegeneralprovisions
.oftheCooperation Agreement,
Theseproductswillbedeterminedinthelightoftheirimpactonthe
Communitymarket,
2,"SurgeClause"
Inviewofthespecificarrangements envisagedforthispartner,the
Commissionfeelsthattheprotocolshouldnotincludethe"surgeclause"inits
presentform.Itis,however,proposedtoincludeintheprotocolandadhoc
mechanismwiththesameobjectivesinordertotakeaccountofsituations
coveredbythesurgeclause.

Ill*Tariffaspects
(i)Outwardprocessingtraffic
Itisproposedthatallimportsunderoutwardprocessingarrangements
shouldbedutyfree*
«
(ii)Directimports
It-isproposedthatthetariffceilingsfortheproductsincludedin
AnnexesIIAandIIBtoProtocolNo1totheCooperation Agreementandto
besubjecttoquantitative restrictions,shouldbefixedat75%ofthe
quantitative levels*
IV»Conclusions 1
ItisthereforeproposedthattheCouncilauthorizestheCommission
toenterintonegotiations withYugoslavia onthebasisoftheattached
negotiatingdirectives®

Recommendation fora
COUNCILDECISION
authorizing theCommissiontonegotiatewithYugoslavia aprotocol
concerningtradeintextileproductsannexedtotheEEC-Yugoslavia
Cooperation Agreement
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtotheRecommendation fromtheCommission,
Whereasthearrangements fortradeintextileproductsbetweenYugoslavia
andtheCommunityaresetoutinArticles15and17oftheEEC-Yugoslavia
Cooperation Agreement;whereasthesearrangements expireon31~December
1982andnegotiations fornewarrangements shouldbeconcluded by
30June1982;
Whereasthesenegotiations shouldbeconductedwithintheframeworkofthe
Community'soverallpolicyontradeintextileproducts,
HASDECIDED ASFOLLOWS :
./
Article 1
TheCommissionisherebyauthorizedtonegotiatewithYugoslavia aprotocol
concerningtradeintextileproductsannexedtotheEEC-Yugoslavia Cooperation
Agreement.
Article 2
TheCommissionshallconductthesenegotiations inconsultation withrepresen­
tativesoftheMemberStatesonthebasisofthegeneralnegotiating
directives adoptedbytheCouncilconcerningexportstotheCommunityofcertain
textileandclothingproductsaswellastheguidelines setoutintheAnnex.
DoneatBrussels, FortheCouncil

Annex
1.Formoftheagreement
Aprotocolcoveringthequantitative andtariffaspectsandapplying
todirectimportsandimportsunderoutwardprocessing arrangements willbe'
annexedtotheEEC-Yugoslavia Cooperation Agreement,
Withregardtothequantitative aspectstheprotocolshouldincorporate
theprovisionsofthestandardagreementtobenegotiatedwiththeCommunity's
otherpartners.
2,Prodgctcoverage
Someproductscoveredbytheagreementcurrentlyinforcewillbeex­
cludedfromthescopeoftheprotocolinthelightoftheirimpactonthe
Communitymarkets
\
4
3.SurgeClause
Thesurgeclauseinitspresentformwillnotbeincludedinthe
protocol# Anadhocmechanismwiththesameobjectiveswillbeprovided
forinordertotakeaccountofthesituations coveredbythatclause,,
4„Tariffaspects
(a)Allimportsunderoutwardprocessing arrangements willbedutyfree,
(b)ThetariffceilingsfortheproductsincludedinAnnexesIIAandIIBto
Protocol No1totheCooperation Agreement andtobesubjecttoquantitative
restrictions willbefixedat75%ofthequantitative levels*