2. 10. 90 Official Journal of the European Communities No C 248/1 
II 
(Preparatory Acts) 
COMMISSION 
The Community and German unification — Proposals for legislation (x) 
COM (90) 400 final 
(Submitted by the Commission on 22 August 1990) 
i1} Already published in Official Journal of the European Communities No C 230 of 15 September 1990: 
— Proposal for a Council Directive on interim measures applicable after the unification of Germany, in 
anticipation of the adoption of transitional measures by the Council in cooperation with the European 
Parliament 
— Proposal for a Council Regulation on interim measures applicable after the unification of Germany, in 
anticipation of the adoption of transitional measures by the Council after consultation of the European 
Parliament 
Recommendation for a 
COUNCIL DECISION 
of . . . 
authorizing the Commission to open negotiations with third countries having textile agreements with 
the Community with a view to adapting those agreements to take account of the German 
unification 
(90/C 248/01) 
Introduction 
1. The recently signed Treaty (Staatsvertrag) between the 
Federal Republic of Germany and the German 
Democratic Republic deals, inter alia, with the 
progressive integration of the former German 
Democratic Republic into the legal system of the 
Community in advance of the formal unification of the 
two German States. 
In pursuit of the objectives outlined in the 
abovementioned Treaty, the Council of the European 
Communities has adopted Regulation (EEC) 
No 1794/90 of 28 June 1990 dealing with transitional 
measures concerning trade with the German Democratic 
Republic (!). Article 2 (1) (a) of that Regulation provides 
that the German Democratic Republic shall introduce 
into its trade with third countries the Common Customs 
Tariff, Community customs legislation and other 
common commercial policy measures. These measures 
are to be applied as from 1 July 1990. 
(') OJ NoL 166, 29. 6. 1990, p. 1. The Commission services have agreed with the 
authorities of the German Democratic Republic and the 
Federal Republic of Germany by means of an Exchange 
of Letters which measures were to be introduced by the 
former German Democratic Republic for the second half 
of 1990 to ensure that the Community commercial policy 
in the textile sector is not circumvented. 
2. Following the unification of the two Germanies, the 
unified Germany is expected to apply the acquis 
communautaire on textiles. However, in order to take 
account of the new situation for textile and clothing 
imports in the unified Germany, all bilateral agreements 
with third countries and arrangements with preferential 
countries, concluded under the 1986 textile negotiating 
Directives or under subsequent specific negotiating 
Directives (China and USSR) will be amended. The 
Commission, therefore, needs negotiating directives 
which will authorize the Commission to negotiate such 
adaptations with all the countries concerned. 
No C 248/2 Official Journal of the European Communities 2. 10. 90 
3. The amendments could be effected by increasing the 
Community quotas by a certain percentage and by 
allocating this increase to the German share of the quota. 
The formula for such increases would be similar to the 
one used following the accession of Spain and Portugal to 
the Community, whilst taking into account traditional 
trade flows and bona fide agreements the former German 
Democratic Republic has concluded with its trading 
partners by 30 June 1990. 
4. Amendments will be necessary for 1991 for the majority 
of the bilateral agreements, because the expiring date of 
these bilateral agreements is 31 December 1991, except 
for two agreements (USSR and China) which expire on 
31 December 1992. 5. Concurrently with these amendments, the Community 
should update the Community global ceilings for 
1991. 
6. The Commission accordingly recommends the Council 
to decide that: 
— the Commission be authorized to open negotiations 
with all third countries- having bilateral textile 
agreements or arrangements with the Community 
containing quantitative restrictions so that the 
necessary adjustments can be made to take account of 
the German unification, 
— the Commission conduct the negotiations in 
accordance with the Directives annexed hereto and in 
consultation with the Article 113 Committee. 
2. 10. 90 Official Journal of the European Communities No C 248/3 
ANNEX 
NEGOTIATING DIRECTIVES 
1. Principles 
— Adjustments designed to take account of the unification of the two Germanies must conform to the textile 
trade policy adopted by the Council in December 1977 and confirmed in February 1982 and March 1986 
with the conclusion of textile agreements with third countries. 
— The adjustments will be applicable up to the expiry of the bilateral textile agreements, which is at the end 
of 1991, except for the China and USSR agreements which run until the end of 1992. 
2. Countries concerned 
The exercise will involve all those countries having bilateral agreements or arrangements with the Community 
containing quantitative restrictions (see point 4 of this Annex). 
3. Substantive provisions 
A. MFA COUNTRIES 
(a) Fixing the quantitative levels 
Levels will be adjusted for Germany wherever the agreements or arrangements currently provide for a 
Community level allocated among all Member States or a regional quota for Germany. 
Those increases will be based on existing trade flows. However, they may not be lower than a level 
calculated according to the formula which had been used following the accession of Spain and Portugal 
to the Community, which consists of a certain percentage of the EEC basket exit threshold. In 
accordance with this formula of calculation, the percentage of increase in this case should be 4,5 
%. 
(b) Community basket exit for 1991 
Basket exit levels for 1991 should be calculated by applying the percentages fixed in the bilateral 
agreements to total imports in 1990 (for the German Democratic Republic in 1989) into the enlarged 
customs territory of the Community. If this reference base turns out to be lower than that used prior to 
German unification, then, exceptionally, the latter shall be retained. 
(c) Regional basket exit 
In order to avoid a generalized readaptation of the burden-sharing and the regional basket exit for all 
Member States, it is proposed to continue applying in 1991 the same formula as previously. 
B. PREFERENTIAL COUNTRIES 
Only the provisions of paragraph A (a) above will apply. These countries will be granted more favourable 
arrangements. 
No C 248/4 Official Journal of the European Communities 2. 10. 90 
4. Countries which have agreements or arrangements with the Community with quantitative levels 
Bilateral agreements MFA-type Arrangements 
Argentine Poland Morocco 
Brazil Romania Egypt 
Peru China Malta 
USSR Tunisia 
Turkey 
Hong Kong Yugoslavia 
Macao 
South Korea 
Malaysia 
Philippines 
Singapore 
Thailand 
Indonesia 
India 
Pakistan 
Sri Lanka 
Bulgaria 
Czechoslovakia 
Hungary 
NB: The autonomous arrangement for Taiwan will also need to be adapted according to the same formula. 
Likewise the quotas for the State-trading countries under the autonomous regime should be adapted.