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COM(77)607
Vol.1977/0197

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)607final.
Brussels.18November1977
•//
Proposalfora
:.COUNCILREGULATION(EEC)
onthearrangements ,appliedtoimportsofcertain
textileproducts
(submittedtotheCouncil "bytheCommission)
C(77)607final.

EXPLANATORY STATEMENT
TheCommunity assuch j.s3,party totheArrangement regarding
International Trade inTextiles ,concluded within theframework
oftheGATT .TheArrangement applies tocertain textiles products
described initsArticle 12.(1)
Onaccepting theArrangement (2),theCommunity 'sprimary obli­
gation wastoadapt all "unilateral quantitative restrictions ,bi­
lateral agreements andanyother quantitative measures inforce which
have arestrictive effecU' on31.12.1973 »whether these were maintained
onaCommunity ornational level ,sothat they were brought into con­
formity with theArrangements provisions .Todothis ,theCommission
assembled alist oftherestrictions referred toabove ,inforce within
theCommunity andnotified thedetails ofthis list totheTextiles
Surveillance Body inGeneva ,inaccordance with Article 2(1)ofthe
Arrangement .Itistobenoted that ,theCommunity having initsown
right' accepted theArrangement ,theobligations with regard tothe
restrictions notified ,particularly asregards their treatment under
theArrangement andtheir eventual treatment should theArrangement
./•
(1) Article 12
1.Forthepurposes ofthis Arrangement ,theexpression "textiles "is
limited totops ,yarns ,piece-goods ,made-up articles ,garments andother
textile manufactured products (being products which derive their chief
characteristics from their textile components )ofcotton ,wool ,man-made
fibres ,orblend thereof ,inwhich anyorall ofthose fibres incombination
represent either the chief value ofthefibres or50Percent ormore byweight
(or17percent ormore byweight ofwool )oftheproduct .
2.Artificial andsynthetic staple fibre ,tow ,waste ,simple mono-andmulti­
filaments ,arenotcovered byparagraph 1above .However ,should conditions
ofmarket disruption (asdefined inAnnex A)befound toexist forsuch pro­
ducts ,theprovisions ofArticle 3ofthis Arrangement (andother provisions
ofthis Arrangement directly relevant thereto )andparagraph 1ofArticle 2
shall apply .
3.This Arrangement shall notapply todeveloping country exports ofhandloom
fabrics ofthecottage industry ,orhand-made cottage industry products made
ofsuch handloom fabrics ,ortotraditional folklore handicraft textiles pro­
ducts ,provided that such products areproperly certified under arrangements
established between theimporting andexporting participating countries con­
cerned .
(2)OJNoL118of30April 1974 ,p.1

expire ,accrued totheCommunity itself .Inother words ,bythe
Community 'sacceptance oftheArrangement ,aCommunity regime was ,
ipso facto ,established foralltextiles products towhich the
Arrangement applies .TheCommunity 'sacceptance oftheArrangement
thus represented aconsiderable step towards basing thecommon com­
mercial policy inrespect oftextiles onuniform principles ;likewise ,
theCommunity 'sfulfillment ofits'obligations under Article 2asre­
gards restrictions existing intheCommunity on31*12.1973 ,instilled
ameasure of'\miformit;y "into theCommunity 'scommercial policy ,inthe
sense inwhich that term isused inArticle 113of "theTreaty .Retreat
from theposition thus achieved ,naturally ,isquite inconceivable from
theCommission 'spoint ofview .
Atleast five options were open totheCommunity asregards the
treatment tobeaccorded -tothe restrictions thus notified tothe
Textiles Surveillance Body .These aresetoutinArticle 2,paragraph
2oftheArrangement :
–termination oftherestrictions "within oneyear oftheentry
into force "oftheArrangement ;
–justification under theprovisions oftheGATT (including its
Annexes andProtocols );
–inclusion inaprogramme fortheir progressive elimination by,
atthelatest ,31-3*1977 »
–inclusion inbilateral agreements negotiated under Article 4of
theArrangement ;
–inclusion inagreements negotiated ormeasures adopted pursuant
totheArrangement »sArticle 3.
With theexception oftherestrictions against thestate –trading
countries party totheArrangement (1)justified onthe
basis oftheir respective Protocols ofAccession totheGATT ,theCommuni­
ty'spolicy wasaseek toconclude bilateral agreements with itsprincipal
suppliers ,covering selectively those products which caused real risks of
disruption onCommunity markets .Residual restrictions were tobeelimi­
nated progressively according toaprogramme communicated totheT.S.B.
bytheCommunity on27.3.1975 (2).
(1)Hungary ,Poland andRoumania .N.B. Abilateral agreement under Article 4
oftheArrangement waseventually concluded with Roumania .
(2)GATT documents TEX.SB/24of7.4.1975 andCOM.TEX /SB/97of22August 1975 .

Itshould "benoted that onseveral occasions ,theCommunity has
also taken ,atCommunity level andonbehalf ofindividual member
States ,safeguard action tocontrol imports ofcertain textile products
from specific sources ,under Article 3oftheArrangement .
Sofarasthebilateral agreements under Article 4andrestrictions
under Article 3areconcerned ,theterms ofthese measures have been im­
plemented inevery case byappropriate Community legislation .This task
must nowbeaccomplished sofarastheabove –mentioned programme iscon­
cerned .
Inparticular ,sofarastherestrictions referred tointheprogramme
areconcerned ,thepresent proposed Regulation makes itclear that ,any
reintroduction ofmeasures previously applied atthelevel ofmember States ,
mayonly take place byapplication oftherelevant Community legislation
inforce .This isnotonly legally butalso economically indispensable ,if
thedegree ofcohesion currently achieved intheCommunity 'scommercial
policy fortextiles isnottodisintegrate upon expiry oftherelevant
international Arrangement .
Thepurpose oftheannexed proposal foraCouncil Regulation is
thus twofold ;
(1)toconsolidate ,onaCommunity basis ,the "elimination "or
"suspension "(1)ofthose restrictions notified totheT.S.B. inthe
Community *sprogramme ;
(2)toensure that ,upon theexpiry oftheArrangement on31.12.1977 ,
theintegrity oftheCommunity regime ,which hasbeen established inthe
manner described above ,remains intact .
TheCommission istherefore invited toadopt thepresent proposal
andtotransmit ittotheCouncil ,together with arecommendation that
thematter betreated with urgency which ismanifestly required inorder
tomake this important contribution towards establishing aCommunity
commercial policy fortextiles well before theendofthepresent year .
(1)Article 2(2)(i )oftheArrangement speaks oftheprogramme being
"designed toeliminate existing restrictions instages ".From the
Community *spoint ofview ,however ,therestrictions canonly becon­
sidered tobe"suspended "forsolong asaninternational regime for
textiles trade exists under theGATT .

COUNCIL REGULATION (EEC)No /77""
onthe "arrangements applied toimports ofoertain textile
produots
THE COUNCIL OPTHE EUROPEAN COMMUNITIES :
Having regard totheTreaty establishing theEuropean Eoonomio Community *»
and inparticular Artiole 113thereof ,
Having regard toCouncil Regulation (EEC)NO1439/74of4June 1974
oncommon rules forimports (l),
Having regard toCouncil Regulation (EEC)No1023/70of25May1970 ,establishing
(2)acommon procedure foradministering quantitativa quotas v',
Having regard totheproposal from theCommission »
Whereas theCommunity isaparty totheArrangement regarding International
Trade inTextiles ^^(hereinafter called "theArrangement ");
Whereas ,inpursuance ofitsobligations under theArrangement ,theCommunity
hasnegotiated certain bilateral export –restraint Agreements andtaken ormaintained
certain unilateral quantitative restriction measures towards anumber ofsupplying
countries ; whereas ,ontheother hand ,theCommunity hasadopted andexecuted
aprogramme .to eliminate 'certain residual quantitative restrictions
*existing intheCommunity on1January 1974 ;
Whereas ,following theexecution ofthis programme ,restraints onimports of
textile products towhioh theArrangement applies mayonly bemaintained byvirtue
oftheprovisions oftheArrangement ,unless they arejustified under theprovisions
of GATT (including itsAnnexes andProtocols );
Whereas theexecution oftheabove-mentioned programme .falls within
thecommon commercial policy , theimplementation whereof should beconfirmed
byappropriate Community legislation ,
HAS ADOPTED THIS REGULATION "within
confirmed
(1)0J.No.L159,15.6.1974 ,p.1.
(2)0J.No,L124,8.6.1970 ,p.1.
(3)0J.No.L118,30.4.1974 ,p.1.

Article 1
Imports into theCommunity ofthose textile products
defined inNimexe chapters 51-63 »"being textile products to
which theArrangement regarding International Trade inTextiles at
present .applies ,shall nolonger besubject toquantitative
restrictions intheCommunity except "byvirtue of'Community regula­
tions inforce .
Article 2
Notwithstanding ofArticle 1, imports into
theCommunity ofproducts referred to .therein shall "beper­
mitted uptothequantitative limits fixed "bytheCommunity inagree­
ments negotiated ormeasures taken under theCommunity ^international
obligations andlaid down inCommunity regulations
Article 3
This Regulation shall enter into force
onthe day '■itspublication inthe Official Journal of
theEuropean Communities .Itshall apply with effect from 1April 1977 .
Done atBrussels , For the Council
The President