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Vol.1973/0142

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)731final ""
Brussels,14May1973
PROPOSAL FORA
REGULATION OPTHECOUNCIL
addingthePhilippinestothelistofdeveloping
countries,pursuanttoRegulation (EEC)Nos2763/72
and2764/72
(SubmittedtotheCouncilbytheCommission)
COM(73)731final

c
EXPLANATORY MEMORANDUM
1.Initsletterof24October1972addressedtothePresidentofthe
Commission,whichwastransmittedtotheCouncilon-24November1972,
theMissionofthePhilippinestotheEuropeanCommunitiesrequested
thattheCommunitygrantgeneralizedpreferencesinrespectofcotton
textilesandsubstituteproductstothePhilippines ,althoughthat
countryisnotasignatorytotheLong«-termArrangementregarding
international tradeincottontextiles(LTA).
2.ItshouldberecalledinthisconnectionthattheCommunity,inits
offerconcerninggeneralizedpreferences ,restrictedthegrantingof
suchpreferencesinrespectofcottontextilesandsubstituteproduots
tothosedevelopingcountrieswhichweresignatoriesoftheLTA.
However,initsrevisedoffer,theCommunityacceptedthatpreferences
forthoseproductscouldalsobegrantedtocountrieswhichwerenot
signatories ,onconditionthatsuchcountriesenteredintocommitments
withtheCommunitysimilartothosecontainedinthesaidArrangement .
TheCommunitythusgrantedpreferencesinrespectofcottontextiles
andsubstituteproductsasfrom1January1973toAfghanistan ,
Bangladesh,andThailand,whichenteredintoanundertakingwiththe
Communitytorespecttheconditionssetoutintheletterwhioh
appearsasanAnnex^.
3.Thepreparatory workontheCommission'sproposalsforgeneralized
preferencesfor1973wasalreadyattooadvancedastagewhenthe
applicationfromthePhilippinesarrivedforittobetakenintocon­
sideration.ThatiswhytheCommissionisnowputtingforwarda
separateproposal.
4«ThePhilippines *positionasregardstheexportingofcottontextiles
andsubstituteproductsiscomparabletothatofAfghanistan ,
BangladeshandThailand.During1968,19^9*and1970therewereno
1ReplieshavebeenreceivedfromAfghanistan andThailand;thatof
Bangladeshhaanotyetarrived.

importsoftheseproduotsintotheCommunityfromthePhilippines.
Consequently ,theadditionofthePhilippinestothelistofthose
"benefitingfrompreferencesforcottontextilesandsubstituteproducts
wouldhavenoeffectontheleveloftheceilings.Moreover,inview
ofthesmallvolume(11tons)ofimportsduring1971»andthevery
restrictedopportunities forthePhilippinestoexporttheseproducts
totheCommunity,thegrantingofpreferencestothatcountryfor
cottontextilesshouldnotgiverisetoanyeconomicproblemduring
thenextfewyears.
TheCommissionthereforeproposesthatthePhilippines beincludedin
thelistofcountriestowhichgeneralizedpreferencesaregrantedfor
cottontextilesandsubstituteproducts,subjecttothesameundertaking
asthatgivenearlierbyAfghanistan ,BangladeshandThailand.
.Asregardstheproceduretobefollowedinordertoarriveatan
arrangementwiththePhilippines ,theCommission -isoftheopinion
thattheprocedureofanexchangeoflettersfollowedinthecaseof
Afghanistan ,Bangladesh andThailandcouldagainbeadopted.The
textofthelettertothePhilippineauthorities ,shownintheAnnex,
isthesameasthatsenttotheauthorities ofthosethreecountries
exceptasregardsthedateonwhichthegeneralizedpreferencesareto
becomeoperative.Inthisconnectionitshouldbenotedthatthe
secondrecitaloftheproposalstatesthat"suchanundertakinghas
beengiven",whichisnotyetthecase;thatbeingso,thepublication
andentryintoforceofthesaidRegulationshouldbedeferreduntil
suchanundertaking hasinfactbeengiven.
JheCommissionisoftheopinionthatthecaseofthePhilippines
shouldnotbedissociatedfromIjhat.oftheotherthreecountries0
.concerned.-OnlythedelayinlodgingthePhilippines'application
preventeditfrom.beingconsideredatthesametimeasthoseof
Afghanistan,BangladeshandThailand.

•3-
TheproblemsraisedbythePhilippines' enjoymentofpreferencesfor
cottontextilesandsubstituteproductsareinanycaseexactlythe
sameasthoseconnectedwiththeextensionofpreferencesforthose
productstothesaidthreecountries.
ItshouldthereforebepossibletograntpreferencestothePhilippines
fortheproductsinquestioninaccordancewiththeexceptional procedure
adoptedbytheCouncilinthecaseofAfghanistan,BangladeshandThailand
atitsmeetingof18–19December1972,ofwhichthedetailedrules
ofapplication weresetoutinastatementcontainedinanannextothe
minutesofthemeeting.
6.Onthebasisoftheforegoing,theattachedproposalforaRegulation,
whichissubmittedfortheapprovaloftheCouncil,grantsgeneralized
tariffpreferencestothePhilippinesbyamendingRegulations (EEC)
HOB2763/72(Tariffquotas)and2764/72(ceilings)concerningcotton
textilesandsubstituteproducts.Itshouldbenotedthatthese
Regulations expireon30September1973.

Proposalfora
REGULATION OFTHECOUNCIL,
cdding-thePhilippinesto"thelistofdevelopingooxxntriss,purswmt
toRegulation(3EC)ITos27*53/72end2?o4/72
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,and
inparticularArticle113thereof,
HavingregardtotheproposalfromtheCommission,
A
WhereasunderCouncilRegulation (EEC)No2763/72of19December1972
opening,allocatingandprovidingfortheadministration ofCommunity
tariffquotasforcertaintextileproductsoriginatingindeveloping
countries,andRegulationNo2764/72of19December1972establishing
preferentialtariffsinrespectofcertaintextileproductsoriginating
indevelopingcountries,theCommonCustomsTariffdutiesaretotally
suspendedinrespectofthesaidproductsoriginatinginthecountrieswhich
aresignatoriesoftheLong-termArrangementregardinginternational trade
incottontextilesorpossiblyinthecountrieswhichenterintounder­
takingswiththeCommunitysimilartothoseinthatArrangement ;whereas
suchanundertaking hasbeengivenbytheRepublicofthePhilippines ;
whereasitthusappearsappropriatetoaddthePhilippinestothelistsof
countriescontainedinAnnexBtoeachoftheabove-mentioned Regulations ;
whereasthisadditiondoesnot,however,entailanyadjustmentofthe
sizeofthequotas,Communityceilings,ormaximumamountsbecauseduring
thereferenceyearinquestion,therewerenoexportsfromthePhilippines
totheCommunity;
OJNoL296,30December1972,p.63
idem,p.69

-2-
•HASADOPTEDTHISREGULATION :
Article 1
"ThePhilippines"isinsertedineachofthelistsofdeveloping
countrieswhichenjoygeneralizedtariffpreferencesfor"certaintextile
products,containedinAnnexBtoCouncilRegulations (EEC)Uos2763/72
and2764/72of19December1972.
Article2
ThisRegulationshallenterintoforceonthethirddayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallhe"bindinginitsentiretyand
directlyapplicableinallMemberStates.
DonortErwcnels,Done&t FortheComic
ThePresidentFortheCouncil

Draft letter
-totheauthorities ofthePhilippines on
thegreeting tothat country ofgeneralized
preferences forcotton textile products and
products treated assuch .
Inresponse tothewish expressed "byyour Government that the
Coccrunity s>?uid grant generalized preferences toyour country forcotton
textile products andproducts treated assuch ,Ihave inthefirst place
the hoE-cur torecall that under theter^s oftheoffer cade bythe
Cocmnity attheUnited Sations Conference onTrade andDevelopment in
IJcJ jaccording tow*"*ahpreferences forcotton textiles covered "bythe
Long-ters :Arrangeeiert would begranted tothe countries enjoying
gesi -eraliz -edpreferences rTnaresignatories totheLcng-tera Arr-srgggiact ,
ard fcrtheduration ofthesaid Arrangesent .Nevertheless ,under the
teres cfthess^e offer ,preferences ~sayalso "begranted *during thesa^e
period ,inaccordance with corditions anddetailed rules of leeantat ion
tobelaid daiei bi–laterally ,tocountries enjoying generalized preferences
vMc*>arenotsignatories totheLen^-tern Arrangement ,butwhich undertake
vis–a-^Tis the Ccgmir.ity comitnents sirdlar tothose ezisting under the
said Arrangement .
Inthis connection andinresponse toyour application Ias
instructed toinfora youthat the Corzrcjiity isprepared togrant your
country generalized preferences forcotton textiles ardproducts treated
assuch onthecorditions setoutbelow . !Iheacceptance ofthese con­
ditions byyour Govez^aent would beconsidered bytheCorrrority tobea
con -itmerit similar ,asfarasyour country isconcerned ,tothose existing
under theLcng-ters Arrangement binding thepresent beneficiary countries
enjoying preferences fcrcotton textiles .
Intheperiod Suring which these preferences aregranted ,the
3sion reserves theright intheevent ofthreatened oractual
disruption oftheEfixket ,toadopt protective ceasure swith regard to
eirort 3froa yctr country ofcotton textiles acdproducts treated assuch
inaccordance with aprocedure ar^rules siailar tothose provided forin
Article 3oftheLocg-tera Arrangeaerfc regarding international trade in
ccttaei textiles .

•2-
TheCommunitydoes^notconsideritnecessary^inthepresentcir­
cumstancesandwithoutprejudicetoitspositionsinrelationtoother
countries,toproposetoyourGovernmentasa"similarcommitment",the
conclusionofa"bilateralagreementofthetypeconcludedunderArticle4
oftheLong-termArrangementwithcertaincountriesenjoyingCommunity
generalizedpreferencesforcottontextileproducts.
AsthedurationoftheCommunitygeneralizedpreferencesforcotton
textileproductsandproductstreatedassuchisatpresentlimitedto
thedurationoftheLong-termArrangement ,thegeneralizedpreferences
can,atthepresentstage,only"begrantedtoyourcountry,astothe
otherbeneficiarycountries,until30September1973.Thistime–limit
innowayprejudicessuchmeasuresasmaybetakenatalaterstageby
theCommunityinrespectoftheperiodafterthatdate.■
Inorderthatit-maybepossibletoincludeyourrcountryretmooig
thebenefioiaries ofgeneralizedpreferencesfortheproductsinquestion,
Ishouldbegratefulifyouwouldkindlyconfirmasrapidlyaspossible
yourGovernment'sagreementtotheforegoing.