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DOCUMENTS "COM"
COM(76)309
Vol.1976/0094

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COMMISSION OFTHEEUROPEAN COMMUNITIES
■
x :
/ I
COM(76)309 final- -i
* Brussels.24June1976
., ' :(!'
RECOMMENDATION FORACOUNCILREGULATION
concluding anAgreementbetweentheEuropeanEconomic
Community andtheRepublicofIndiaontradeincoir
tiproducts
I <
(submittedtotheCouncilbytheCommission )
C0M(76)309final

EXPLANATORY MEMOR ANDUM
1 Itydecision of16February 1976 theCouncil authorized theCommission to
open negotiations with India forthepurpose ofconcluding anagreement on
trade incoir products#
2*Inaccordance with that decision and inconsultation with theArticle 113
Committee theCommission conducted negotiations with India on30and 31March
andon6April 1976#
3.Following these negotiations adraft agreement wasdrawn up,comprising
thefollowing mainpoints 1:
confirmation that thealmost total freedom from import restrictions
existing intheCommunity will bemaintained (quantitative restrictions
still exist inoneoftheMember States );
continuation ofaprogramme tosuspend progressively theCCTduty ,
which theCommunity isimplementing inthecontext ofitsoffer
regarding generalized tariff preferences fortheproduct concerned
(thecurrent 60$reduction will beextended to80$on1July 1976
andto100$ on1January 1978 »while thefull exemption from this
duty already applying intheUnited Kingdom andDenmark will be
maintained );
assurances from India regarding thesupply onnon-discriminatory
terms oftherawmaterials needed bytheCommunity coir products
industry ;
definition oftheJoint Cooperation Committee 'stasks ,especially
asregards theinvestigation ofpossibilities andtheformulation
ofsuggestions forcooperation onresearch anddevelopment onthe
production anduses ofcoir products .
After finding that thetext ofthedraft agreement wasinline with the
conclusions ofthenegotiations ,theheads ofthedelegations initialled
iton7April 1976#
4*TheCommission considers that thedraft agreement inquestion represents
aconclusion acceptable totheCommunity *Itrecommends totheCouncil
that itshould conclude this agreement byadopting theregulation adraft
ofwhich isannexed *
Anearlier agreement between theCommunity andIndia (see0JL82,24March 1974 )
onthe same products expired on31December 1975 *

RECOMMENDATION FORACOUNCILREFLATION
concludinganAgreement "betweentheEuropeanEconomic
CommunityandtheRepublicofIndiaontradeincoirproducts
THECOUNCILOFTHEEUROPEANCOMMISSION,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,•
andinparticularArticle113thereof,
Havingregardtotherecommendation fromtheCommission ,
WhereastheAgreementontradeincoirproductsnegotiatedbetweenthe
EuropeanEconomicCommunityandtheRepublicofIndiashouldbeconcluded,
HASADOPTEDTHISREGULATION :
Article1
TheAgreementbetweentheEuropeanEconomicCommunityandtheRepublicof
Indiaontradeincoirproducts,thetextofwhichisannexedhereto,is
herebyconcludedonbehalfoftheCommunity.
Article2
ThePresidentoftheCouncilshallgivenotification totheotherContracting
PartythattheproceduresrequiredfortheentryintoforceoftheAgreement
havebeencompletedonthepartoftheCommunity.
Article3
ThisRegulationshallenterintoforceonthethirddayfollowingits
publicationintheOfficialJournaloftheEuropeanCommunities.
DoneatBrussels. FortheCouncil
ThePresident

AGREEMENT
between theEuropean Economic Community andtheRepublic ofIndia on
trade incoir products
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
oftheonepart ,and
THE GOVERNMENT OFTHE REPUBLIC OFINDIA ,
oftheother part ,
DESIROUS ofensuring anincreasing use ofcoir products and theorderly
development oftrade inthese products between the European Economic
Community ,hereinafter referred toas"theCommunity ",and theRepublic
ofIndia ,
NOTING the Joint Declaration ofIntent onthe development oftrade
relations with Ceylon ,India ,Malaysia ,Pakistan and Singapore ,annexed
totheFinal Act oftheTreaty ofAccession oftheKingdom ofDenmark ,
Ireland ,theKingdom ofNorway and theUnited Kingdom ofGreat Britain
andNothern Ireland totheEuropean Economic Community andtheEuropean
Atomic Energy Community ,
HAVING REGARD totheCommercial Cooperation Agreement between the
European Economio Community and India ,
CONSCIOUS oftheprovisions oftheGeneral Agreement onTariffs and
Trade ,
HAVE DECIDED ,inaspirit ofmutual cooperation ,toconclude this
Agreement t

-2-
Article 1
ThisAgreementshallapplytomanufactured coirproducts,origina­
tinginandconingfromIndia,asdefinedinArticle2.
Article2
TheCommunityshall,autonomously andaspartofitsoffer
relatingtothegrantingofgeneralisedtariffpreference ,applytomanu­
facturedcoirproductsoriginatinginandcomingfromIndia,theduties
oftheCommonCustomsTariffsuspendedinaccordance withtheratesand
timetableindicated below:
,.1.IV.!!"III
CCT
headingDescriptionKateofreduction
tobeapulied
No1.7.761.1.78
58.02Othercarpets,carpeting,rugs,mats
andmatting,and"Kelem",
"Schumacks"and"Karamanie"rugs
andthelike(madeupornot):
A.Carpets,carpeting,rugs,mats
andmatting:
ex.I.Coirmatsandmatting,and
tuftedcarpets,carpetingand
rugs80%100%
Article3
TheCommunity shallnotsubjectimportsoftheproductsreferredtoin
Article2,originating inandcomingfromIndia,tonewquantitative
restrictions.TheContractingPartiesagreetotakeallnecessary'
stepsto.enabletheopportunities toimportunderexfstingquantitative
restrictions tobefullyused.
/.

-3-
Article '+
TheRepublic ofIndia andtheCommunity shall exchange all
necessary information relating totrade incoirproducts between the
Contracting Parties .
Article 5
Theimplementation ofthis Agreement shall notdisrupt thenormal
pattern oftrade between India andtheCommunity fortheproducts
concerned .
Ifone ofthe Parties informs the other that abnormal difficulties
have arisen inconnection with theuse ofnormal pattern oftrade ,then the
Contracting Parties shall consult each other onmeasures necessary tore­
medy the situation .
Article 6
Subject tothepolicies oftheGovernment ofthe Republic ofIndia
relating to,theregulation ofitsexports according toitsproduction
situation and theexternal demand forthe said products ,the
Republic ofIndia undertakes totake allnecessary steps toensure that the
needs ofthe Community market and industries are met inanon-discri­
minatory manner *
Article 7
AJoint Cooperation Committee shall besetupandentrusted with
thefollowing tasks :
-toexamine any problem which mayarises asaresult of
theimplementation ofthis Agreement ,including thequestion of
appropriate solutions toproblems arising outofcurrent quantita­
tive restrictions s

-4-
–toinvestigatepossibilities of,andformulatesuggestionsfor,coope­
rationinregardtot
–existingproductionmethods,
–researchintoanddevelopmentof,newtechniquesofpreparing
andprocessingcoirandmanufacturing coirgoods
inordertoexpandtheendusesofcoir*
–todevelopcontactsbetweenrepresentatives ofthetradeandindustry
incoirofbothIndiaandtheCommunityandfacilitatethesettingup
ofjointprojectsandprogrammesmutuallyagreeduponbybothParties.
2*TheJointCooperation Committeeshallconsistofrepresentatives
oftheRepublicofIndiaandoftheCommunity*
3*TheJointCooperation Committeeshallbeconvenedupontherequest
ofeitherContractingPartyandinanycaseatleastonceayear*
Article8
ThisAgreementshallenterintoforceonthefirstdayofthemonth
followingthedateonwhichtheContractingPartieshavenotifiedeachother
ofthecompletionoftheproceduresnecessaryforthispurpose*Subjecttoany
suchamendmentsasmaybemutuallyagreedduringitsperiodofvalidity,the
Agreementshallbevaliduntil31December1979*
Article9
TheAnnexesconstituteanintegralpartofthisAgreement*
Article10
ThisAgreementhas-beendrawnupintwooopies,intheDanish,Dutch,
English,French,German,ItalianandHindilanguages,eachtextbeing
authentic *
Doneata***************

DECLARATION OF_THE_COMMUNITï
TheEuropeanEconomicCommunitynotesthattheGovernmentof
theRepublicofIndialeviesatax,atarateof15%advalorem,on
itsexportsofcoiryarn.Itconsidersthatthistax,theincidence
ofwhichhasbeencalculatedat6%ofthesalepriceofcoirproducts,
constitutes adisadvantage forthecoirindustryofitsMemberStates.
Takingaccountoftheprogrammefortheprogressive suspension
ofdutiesundertheCommonCustomsTariffappliedbytheCommunityas
partofitsofferrelatingtothegrantingofgeneralizedtariff
preferences,setoutinArticle2oftheAgreement,theCommunity
reservestherightbothtoevaluatethepracticaleffectsofthistax
onthecoirindustryoftheMemberStatesand,inanycasebeforethe
startofthelastphaseofsuspensionofdutiesundertheCommonCustoms
Tariff,toseekanexaminationofthesituationontheCommunitymarket
forcoirproductsbytheJointCooperation Committee,setupunder
Article7ofth«*Agreement.

JOINTDECLARATION
1,TheContractingParties .undertakestomakeaspecialeffort
tofulfillthetaskssetoutinArticle^oftheAgreement.Tothis
endtheywillendeavourtoprovideannualround-tablediscussions
betweentheindustrialtcommercialandresearchinterestson"bath
sides,andtheyundertaketoexaminethepossibilityofsupporting
anyprogrammesorprojectsrecommended asaresultofsuch
discussions whicharelikelytobeofmutualbenefittotheseinterests.
2»TheContractingPartieswillkeepunderreviewthedevelop­
mentoffiscalpoliciesandtheirimpactonthepossibilities for
theincreaseduseofcoirproducts,theorderlydevelopment of.
tradeandpossibilities ofcooperation,havingdueregardtothe
needsanddevelopment programmesoftheRepublicofIndiainthe
coirsectorandtotheprospectsofthecoirindustriesinthe
MemberStatesoftheCommunity *