COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 29.03.1995 
COM(95) 109 final 
95/0077 (ACC) 
Proposal for a 
COUNCIL DECISION 
ON THE CONCLUSION OF THE AGREEMENT BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL 
AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. The Commission has negotiated a bilateral Agreement on the modification of certain 
provisions of the MFA bilateral Agreement on trade in textile products between the 
^ People's Republic of China and the European Community with the People's Republic of 
China. 
» •• . . 
2. The Commission has initialled this Agreement on 14 December 1994. 
3. The Council is therefore asked to approve on behalf of the Community the attached 
Decision on the conclusion of the Agreement between the European Community and the 
People's Republic of China on the modification of certain provisions of the MFA bilateral 
Agreement on trade in textile products between the People's Republic of China and the 
European Community. 
CD 
PROPOSAL FOR A COUNCIL DECISION 
ON THE CONCLUSION OF THE AGREEMENT BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
ON THE MODIFICATION OF CERTAIN PROVISIONS OF THE MFA BILATERAL 
AGREEMENT ON TRADE IN TEXTILE PRODUCTS BETWEEN 
THE EUROPEAN COMMUNITY AND THE PEOPLE'S REPUBLIC OF CHINA 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community and in particular Article 
113 in conjunction with Article 228, paragraph 2, first sentence, thereof, 
Having regard to the proposal from the Commission, 
Whereas the Commission has negotiated on behalf of the Community an Agreement with the 
People's Republic of China on the modification of certain provisions of the MFA bilateral 
Agreement on trade in textile products between the People's Republic of China and the 
European Community. 
Wteeas this bilateral Agreement should be approved, 
i 
HAS DECIDED AS FOLLOWS: 
ARTICLE 1 
The bilateral Agreement between the European Community and the People's Republic of 
China on the modification of certain provisions of the MFA bilateral Agreement on trade in 
textile products between the People's Republic of China and the European Community shall be 
approved on behalf of the European Community. 
The text of this Agreement is attached to this Decision. 
ARTICLE 2 
The President of the Council is hereby authorized to designate the person empowered to sign 
the Agreement referred to in Article 1 in order to bind the European Community. 
Done at Brussels, For the Council 
The President 
Agreement 
on the modification of certain provisions of the 
MFA bilateral agreement on trade in textile products 
between the People's Republic of China and the European Community 
Following discussions in December 1992 on the adaptation of growth and flexibility rates laid down 
in the 1988 MFA bilateral agreement between China and the European Community, and the 
discussions in 1994 concerning the modifications of economic provisions of the agreement, as 
envisaged in the Exchange of Letters between Sir Leon Brittan and Minister Wu Yi in view of 
China's accession to GATT/WTO, the two Parties have agreed that: 
a) the growth and flexibility rates set out in the bilateral agreement between China and the 
European Community are modified, as of 1 January 1993, as indicated in the annex to this 
Agreement. This commitment reflects a compromise that takes into account the following 
elements: 
1) the fact that China has become the largest supplier of the EC in textiles and clothing; 
2) the perspective of China's accession to GATT/WTO; 
b) these modified rates will be the basis of all notifications to GATT/WTO, as being those in force 
during the 12 month period prior to the entry into force of the ATC (Uruguay Round 
Agreement on Textiles and Clothing); 
c) the actual application of the modified rates shall remain suspended until the date of China's 
accession to GATT/WTO; 
d) should China's accession to GATT/WTO not be completed during the first 9 months of 1995, 
consultations will be held between the two Parties to discuss the terms of a bilateral Agreement 
governing the trade in textile products for 1996 and subsequent years, to be based on the growth 
and flexibility rates not lower than those listed in the annex attached to this agreement; 
e) this Agreement shall enter into force on the first day of the month following its signature. It shall 
apply provisionally as of the date of its initialling. 
For the Government of the For the Council of the 
People's Republic of China European Union 
CD 
ANNEX TO THE AGREEMENT ON THE MODIFICATION 
OF THE MFA BILATERAL AGREEMENT ON TRADE IN TEXTILE PRODUCTS 
BETWEEN THE PEOPLE'S REPUBLIC OF CHINA 
AND THE EUROPEAN COMMUNITY 
Growth rates for quantitative limits (%) 
Categories 
2 
3 
4 
5 
6 
7 
8 
9 
12 
15 
16 
18 
19 
20/39 
21 
22 
23 
26 
32 
37. 
73 0.2 
2 0 
13 
1.5 
175 
1.5 
1.5 
2.5 
3.0 
3.0 
2.0 
3.0 
3.0 
2.75 
2.5 
3.5 
3.0 
15 
3.0 
5.0 
2.0 
II. Flexibility rates (%) 
b) advance use 
carry over 1 to 5 
3 to 7 
c) transfers 
- between categories 
2 and 3 
- from 1 to 2 and 3 
- between 4 to 8 
- from groups I, II and 
III to groups II and III 
C 
ISSN 0254-1475 
COM(95) 109 final 
DOCUMENTS 
EN 11 02 
Catalogue number : CB-CO-95-122-EN-C 
ISBN 92-77-87073-7 
Offîce for Official Publications of the European Communities 
L-2985 Luxembourg