ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)662
Vol.1976/0200

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)662 final
Brussels ,13December 1976
\
RECOMMENDATION FOR AREGULATION OPTHE COUNCIL
concluding anAgreement between theEuropean Economic
Community andtheArab Republic ofEgypt ontrade in
textiles
(submitted totheCouncil bytheCommission )
I
COM(76)662final
I
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/

EXPLANATORY MEMORANDUM
1.Byadeoisionof2*fFebruary1976,theCouncilauthorisedthe
Commissiontoopennegotiations withtheArabRepublicofEgypt
fortheconclusionofanAgreementontradeintextiles.This
Agreement,negotiatedundertheprovisionsofArticle4ofthe
ArrangementregardingInternational TradeinTextiles,willreplace
thevariousautonomousorbilateraldispositions inforceforthetextile
productsbetweentheCommunityanditsMemberStatesontheonehandand
Egyptontheother
2.InaccordancewiththeaboveCouncilDecisionandinconsultation
withtheArticle113Committee,theCommissionconductednegotiations
withEgypton12and13May1976#Followingthesenegotiations
adraftAgreementwasdrawnup.
3.TheessenceofthedraftAgreementisaclauselayingdowna
consultationprocedurewhichmaybeengagedwhenever,intheCommunity *s
opinion,conditionsinanyofitsmarketsaresuchthatalimitation
ontradeinanyproductcoveredbytheAgreementappearsnecessaryto
eliminaterealrisksofmarketdisruption.Wheresuchconsultations
arerequested,Egypthasagreedtolimitatadefinedleveltheissue
ofexportlicenoesforthe-productin~?iueBtion.~TheAgrementr-appHeiy
tothosecategoriesoftextilesproducts,originatinginandexported
fromEgypt,towhichtheGenevaArrangementapplies.
Foritspart,theCommunityhasundertaken,forthesesamepro­
ductsandsubjecttothesatisfactoryoperationoftheAgreement,to
suspendallquantitativerestrictionsinforcewithintheCommunity,
nottointroducenewquantitativerestrictions andtorefrainfrom
invokingtheprovisionsofArticle3oftheGenevaArrangement *
5.TheheadsofdelegationfoundthedraftAgreementtobeinaccor­
dancewiththeresultsofthenegotiations andinitialledthetext
on13May1976.
6.TheCommissionconsidersthatthisdraftAgreementconstitutes-a
resultthatisacceptabletotheCommunity *Itproposesthatthe
CouncilconcludethisAgreementbyadoptingthedraftRegulation
annexedhereto*

RECOMMENDATION FOR AREGULATION OFTHE COUNCIL
concluding anAgreement "between -theEuropean Economio Community
and theArab Republic ofEgypt ontrade intextiles
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economio Community ,
and inparticular Artiole 113thereof ;
Having regard totherecommendation from theCommission ;
Whereas theAgreement ontrade intextiles negotiated between the
European Economic Community andtheArab Republic ofEgypt should be
concluded ;
HAD ADOPTED THIS REGULATION :
Article 1
TheAgreement between theEuropean Economic Community andtheArab
Republic ofEgypt ontrade intextiles ,thetext ofwhich isgiven in
theAnnex ,ishereby concluded onbehalf oftheCommunity .
Article 2
ThePresident oftheCouncil shall notify theother Contracting Party
oftheaccomplishment bytheCommunity oftheprocedures required for
theentry into force oftheAgreement *
Article 3
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Communities *
Done atBrussels , FortheCouncil
The President

I
DRAFTFORINITIALLING
AGREEMENT BETWEENTHEARABREPUBLIC OF
»
EGYPT
ANDTHE
EUROPEAN ECONOMIC COMMUNITY
s
ONTRADEINTEXTILES
13.5.1976

TheCouhcaloftheEuropeanCommunities
oftheonepart.
The0ov4nftmentoftheArabRepublicofEgyptoftheotherpart,
Desiringtoensuretheorderlyandequitabledevelopmentoftradein
textilelkbetweentheEuropeanEconomioCommunity,hereinaftercalled
"theCoiirniunity"andtheArabRepublicofEgypt,hereinaftercalled
"Egypt"i
«
HavingfreftardtotheprovisionsoftheArrangementregardingInter­
nationaltradeinTextiles(hereinafterreferredtoaMtheGeneva
Arrangement)andespeciallyitsArticle4,
Havedecided,inaspiritofmutualco-operationandllnconform:.ty
withthftdaidGenevaArrangement ,toconcludethis-Agreementantto
thisendhavedesignatedastheirPlenipotentiaries :
THECOUNCILOPTHEEUROPEANCOMMUNITIES :
THECOVERNWENT OPTHEARABREPUBLICOFEGYPTt
Whohaveagreedasfollowst

Article1
1,ThePartiesrecogniseandcorlfirmthat,subjecttotheprovi­
sionsofthisAgreementandwithoutprejudicetotheirrightsand
obligations undertheGeneralAgreementonTariffsandTrade,and
undertheirAgreementdated18December,1972,theconductof
theirmutualtradeintextilesshallbegovernedbytheprovi­
sionsoftheGenevaArrangement.
2.ThisAgreementshallapplytotradeinthosecategoriesof.
textilesproducts,originatinginanddespatchedfromEgyptto
whichtheGenevaArrangementapplies.
$

Article 2
The Community undertakes ,inrespect ofthecategories of
textiles products towhich this .Agreement applies ,andsubject
tothesatisfactory operation ofthis Agreement ,and inparticular
Article khereof ,tosuspend forthwith all quantitative restric­
tions atpresent inforce within theCommunity ,not tointroduce'
nev;quantitative restrictions ,andtorefrain from -invoking the .
provisions ofArticle 3oftheGeneva Arrangement .
AU .

Article3
ThePartiesehallenterpromptlyintoconsultations with
eachother,attherequestofeitherandinconformitywiththepro­
visionsoftheGenevaArrangement ,onanymatterconcerningtheir
tradeintextilesandinparticularonanyproblemsarisingfromthe
applicationofthisAgreement#Consultations heldtindertheprovisions
ofthisArticleshallbeapproachedbythePartiesinaspiritof
compromiseandwithaviewtotheconciliation ofdifferencesexisting
betweenthem* n,(&%>

Article4
.... \
1.Inviewofthedesireof-theCommunityandEgypttoavoid,on
onehand,realrisksofmarketdisruptionand,ontheotherhand,dis­
ruptiontothetextiletradeofEgypt,andhavingfullregardtothe
needforequitabletreatmentofparticipating countriesinthe
GenevaArrangement ,thefollowingspecificconsultation procedure
shallapplytotheproductstowhichthisAgreementapplies.
2.TheCommunitymayrequestconsultations withaviewtoreaching
agreementonanappropriatelevelofrestraintforanyproducttowhich
thisAgreementapplieswheneverinthe..>d.cwoftheCommunity,con­
ditionsinan^-ofitsmarketsaresuchthatalimitation onfurther
tradeinanysuchproductmaybenecessarytoeliminaterealrisks
ofmarketdisruption(asdefinedinAnnexAoftheGenevaArrangement).
Theconsultation procedurereferredtointhisparagraphwillonlybe'
resortedtosparinglyandwillbeimplementedinamannerconsistent
withtheprinciplesandobjectivesoftheGenevaArrangement.
3.Therequestforsuchaconsultation shallbeaccompaniedwithin
areasonableperiodoftime,byastatementofthemarketconditions
intheCommunitywhich,intheopinionoftheCommunity,makenecessary
therequestforconsultations .
4*Untilsuchtimeasamutuallysatisfactory solutionhasbeen
reached,Egyptundertakes,ifsorequestedbytheCommunity,tolimit
issueofexportlicencesfortheproductsinquestiontotheCommunity,
ortotheregionorregionsoftheCommunitymarketasindicatedbyth-.;
Community.Forthepurposeofestablishing anylevelofrestreinI
forsuchlimitationofexportlicencesbyEgypt,theCommunity
&hal]nottreatEgypt'shistoricaltradeperformance asbean.*nee-.
B&rilydeterminant ;theCommunityshallhavefullregardbothto
theequiIabletreatmentofEgyptsocomparedwithothevfjirppl.ier.>
ofliketextileproc'uetawithwhichtheCommunityhasreset3ated
bi:i.t-.rnlagroer.-jiltsv.ndcvthoGenevaArraivjonrztfc ,an<*rO.ro,.--si
c.'~«ivybe;,to'r,volitiona.cv.potentialnowen'.ir.
pectofcertaintextileprooucts.

Article «fcontinued
5. ThaParties shall consult assoon aspossible v/ithin $0days
following thecommunication ofthestatement referred toinparagraph 3
above andwill make their best efforts tocomplete such consxiltations ,/O
within £odays oftheir commencement# A_
Nfcle ,
6. Intheevent that theParties areunable toreach ,within area­
sonable period oftime ,asatisfactory solution during theconsultation
provided forinthis Article ,either oftheparties mayrefer thematter
totheTextiles Surveillance Body inaccordance with Article 11,
paragraph 4»OftheGeneva Arrangement .Either Party choosing to
adopt such acotr reofaction ,shall notify theother inadvance
ofits intention .
7. Consultations will take place attherequest ofEgypt inordsr
toreview theneed forthemaintenance ormodification ofanylevel of
restraint established under -this Article whenever market conditions
which ledtotheestablishment ofsuch level ofrestraint nolonger
prevail# .f~)gA•

Article 5
TheParties shall exchange alluseful information conoernin
their mutual trade intexiiles inoi-der toensure the successful
implementation ofthis Agreement *
Λ

Article 6
Anyleve^# ofrestraint thatmaybeestablished underArticle !bhereof shall bemanegod under asystem ofdouble control
I
d'tails ofwhich are set out inthe Annex hereto .
AU,
$

Article7
1.ThePartiesshalltakeallpossiblemeasurestoensurethat
traditionalchannelsandmethodsoftradebetweentheCommunityand
♦
Egyptaremaintained. 1
L^-1y
y

Artici e8
9
This Agreement shall apply totheterritories where the
Treaty establishing theEuropean Economic Community applies ,on
theconditions established inthesaid Treaty .,andtoEpypt .

■sArticle 9
1. This Agreement shall enter into force onthefirst day ofthe
month following thedate onwhich .theContracting Parties have noti­
fied each other ofthecompletion oftheprocedures necessary for
thepurpose .Itshall remain inforce until 31December 1977 »
2. This Agreement ^hall have effect from 1January 1976 .
3. Either Party may atanytime propose modifications tothis
Agreement ordenounce itprovided that notice isgiven atleast
120days "before theexpiry ofanytwelve-month period ;inthe latter
event theAgreement will come toanendattheexpiry ofthe said
twelve-month period . • . /-j '

Article 10
This Agreement shall bedrawn upintv»ocopies intheDanish ,
Dutch ,English ,French ,German ,Italian and Arabic languages ,each
ofthese texts being equally authentio .

ANNEX
Asagreedbetv/eenthePartiesin.Article6oftheAgreement,
theadministration ofanyrestraintestablishedunderArticlekshall
bebasedonasystemofdoublecontrol.Thedetailsofthissystem
havebeenagreedbetv/eenthePartiesandaresetoutbelow.
Thecompetentauthorities withintheCommunitywill,automati­
callyandwithoutdelay,acceptimportsoftextileproductsonsub­
missionoftheimporter'sapplication togetherwithacertifiedcopy
oftheexportlicence.Thecompetentauthorities withintheCommunity
shallbeentitledtorequirethepresentation ofanexportlicence
inrespectofgoodsofirginating inEgyptofthecategories wherethe
0
provisionsofArticlekhavebeeninvoked.
TheseexportlicenceswillbeissuedbytheEgyptianauthorities
uptothetotalamountofthelevelsofrestraint.
*
Theexportlicencemustspecify:
I.destination (relevantMemberState)
2.sériainumber
3.importer'snameandaddress
4«exporter'snameandaddress
5*ne"tweight(inkilogramsormetrictons)orotherunitsasmay
beagreedupon
6.descriptionofproduct(includingCustomsCooperationCouncil
Nomenclature ,formlycalledBTNnumber)
7*certification bytheEgyptianauthoritiesthatthequantity
hasbeendebitedagainstthelevelofrertrsintfor'export?:
totheCommunity(relevantMemberState)or,v<rcexpro­
priate,iijforimmediatere-exportorforinv.ardprocessing
andcubr.cquentre-exportoutsidetheCommunity.
ThecompetentauthoritieswithintheCommunitywillr.otrair.c
difficulties j.11theeventofadescropancy betweentheweightiriic^';' .
intlioexportlicenceandtheshipment ,orimportweightprovidedit
icvithinroononjiblnlir/ot,-1,v.'hilsthoEgyptinnauthorities !,.lor1hci:-
I-art-%fillc.iutc-n-oMkeepr?tiydic<.repwr.cior :tyuicinini

ΑΝΝίίΧ ,ρ.ί
Intheevent oftotal orpartial withdrawal ofanexport
licence ,theEgyptian authorities will notify thecompetent autho­
rities within theCommunity ofsuch total orpartial withdrawal .
Thecompetent authorities within theCommunity will take theappro­
priate measures inaccordance with prevailing administrative arrange -
TheEgyptian authorities will forward tothecompetent autho­
rities within theCommunity ,viatheRepresentations oftheMember
States oftheCommunity anddirectly totheCommission ,quarterly
returns showing thetotal quantity covered bytheexport licences
issued against anylevels ofrestraint established forexports tothe
Community *
TheCommunity will forward totheauthorities ofE&ypt ,onn
quarterly basis ,precise statistical information ofimports ofsuch
products into theCommunity .mentf ,
à\l.