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DOCUMENTS "COM"
COM(76)35
Vol.1976/0016

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)35 final .
Brussels ,3February 1976
Recommendation for
aCouncil Decision
authorising theCommission toopen negotiations with
Romania fortheconclusion ofanagreement ontrade
intextiles
(submitted totheCouncil "bytheCommission )
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®(76 )35final .

Explanatory Memorandum
1. TheCommunity isaparty totheArrangement Regarding International
Trade inTextiles (M.F.A. ).Article 4ofthis Arrangement leaves open
the .possibility forparticipating countries toconclude bilateral agreements
between importing andexporting countries .TheCommunity wasofthe
opinion that itwasthrough theconclusion ofsuch agreements with its
principal suppliers that theprincipal objective oftheM.F.A. ,i.e.
theorderly development oftrade intextiles ,could best beachieved .
Inaccordance with this view ,negotiations were initiated first
with those third countries with which theCommunity hadalready concluded
agreements ontrade incotton textiles .
2. Atitsmeeting on12March 1975 the Committee ofPermanent
Representatives decided that negotiations should also beproposed by
theCommunity tothethree state-trading countries which areparties
totheM.P.A.-Hungary ,Poland andRomania (without prejudice topossible
negotiations forglobal trade agreements ).Italso agreed "thetext
ofaletter tobeaddressed bytheCommission tothethree countries
indicating thewillingness oftheCommunity toopen negotiations which ,
"while taking account ofthedifferences incommercial structures ,would
bebased ontheprovisions ofArticle 4oftheM.F.A. "(seetext of
letter inAnnex A).
On8January 1976 theRomanian authorities replied that they
were prepared toopen negotiations with theCommunity based onArticle 4
oftheM.F.A. andalso taking account ofArticles 2and6(seetext
ofletter inAnnex B).
Bycontrast ,Poland andHungary have notreplied totheCommunity *s
offer .TheCommission considers ,consequently ,that theimport rules
atpresent applied with regard tothose oountries ,inconformity with
theprovisions oftheGATT ,including theprotocols ofaccession ,should
remain ineffect .

-2-
3..Inviewofthetime–limitfixedintheM.F.A.fortheconclusion
ofbilateralagreements (31March1976)and.inviewalsoofthe
favourableresponsefromRomaniatotheCommunityoffer,theCommission
isoftheopinionthatnegotiations withRomaniashouldbeopenedas
quicklyaspossible.Inunofficialconversations betweentheCommission's
servicesandtheRomanianauthorities andin-..eatingsoftheCouncil's
textilegrouponthepreparation ofpossiblenegotiations withthe
state-trading countriescertainelementswhichcouldserveasabasis
forthenegotiations haveemerged.
Inthelightoftheseelementsandinviewoftheprovisions
andobligations oftheM.F.A.,theCommissionconsidersthatthe
negotiations withRomaniashouldbegovernedbythesamecriteria
astheothernegotiations whichhavealreadytakenplace,withthe
exceptionofthose _itemswhicharenecessarytotakeaccountofthe
differences incommercial structures mentionedintheCommission's
letter,citedaboveatpoint2.
Ontheinternallevel,theprovisionsadoptedforthepreceding
negotiations ,particularly burden-sharingj shouldapply.
4.Consequently ,theCommissionrecommendstotheCouncil,byvirtue
ofArticle113oftheTreaty,thatitadopttheattachedDecision.

Recommendation foraCouncilDecision
authorisingtheCommissiontoopennegotiations withRomania
fortheconclusionofanagreementontradeintextiles
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereofj
Havingregardto'therecommendation fromtheCommission ,
WhereasArticle4oftheArrangement RegardingInternationalTradein
.Textilespermitstheconclusionofbilateralagreements "between
importingandexportingcountries;
Whereas •theCommunityconsidersthattheconclusionofsuchagreements
withthethirdcountrieswhicljareitsprincipalsupplierswouldbest
enableittoachievetheobjectivesofthesaidArrangement Regarding
International Trade.±1Textiles;
WhereastheCommunitytherefore _proposedtoRomania,aparty
tothesaidArrangement ,theopeningofnegotiations fortheconclusion
ofanagreementontradein"textilesandwhereasRomaniahasreplied
favourably,
HASADOPTEDTHISDECISION :
Article1
TheCommissionisherebyauthorisedtoopennegotiations with
Romaniawithaviewtotheconclusionofanagreementontradein
textileproducts,inaccordancewiththeprovisionsoftheArrangement
RegardingInternational TradeinTextiles.

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Article2
TheCommissionshallconductsuchnegotiations inconsultations
withthespecialArticle113Committeeandonthebasisofthe
directivesintheAnnexhereto.
DoneatBrussels, FortheCouncil
ThePresident
o

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Directivesforne,gotiations withRomania
I.Itemsidentical .withthoseadopted,withregardtoallthecountries
withwhich-theCommunityhasnegotiated.
;.•>*a)Autolimitarfcionagreement,validuntil31December1977>with
anadministration systemwhichincludesdouble-cheeking.
b)•.Coverageoftheagreementestablishedselectively onthe
basisofthecriteriainArticle4oftheM.F.A.jelimination
ofrealr.isksofmarketdisruptionandthefixingofceilings
basedonthatconcept.
.c)Bindingconsultationclauseandregionalmeasures.
d)Provisionsforflexibility ,carry-overandanticipation .
ν/
II.Additional items
a)Inclusionoflineninthecoverageoftheagreement.
b)Provisionsrelatingtooutwardprocessingtraffic:ofthekind
adoptedforYugoslavia.
III.Specificitemsfbwingfromthedifferencesincommercialstructures.
a)Apriceclauseallowingaccounttobetakenoftheparticular
methodsofprice-formation inRomaniaandgivingtotheCommunity
thepossibility ofinterveningincaseproductscoveredbythe
.agreementshouldbeofferedforsaleatpricesconsiderably below:
-thepriceofthenationalproductatthesameleveloftrade
.:-andthepricegenerallyprevailingforexportsbyother
countriestotheimportingmarket.
b)MarketaccessforCommunitytextileproducts:anundertakingto
begivenbyRomaniatodiversifyandincreaseitsimportsof
v-textileproductsfromtheCommunity.