ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)777
Vol.1980/0241

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)777 final
Brussels -21st November 1980
RECOMMENDATION FOR ACOUNCIL DECISION
AUTHORISING THE COMMISSION TOOPEN NEGOTIATIONS WITH THE
REPUBLIC OFTUNISIA FOR AVOLUNTARY RESTRAINT ARRANGEMENT
INRESPECT OFCERTAIN TEXTILE PRODUCTS
(presented bytheCommission tothe Council )
Η
C0M<80)777final

EXPLANATORY MEMORANDUM
I.On19March1979Tunisiaconcluded avoluntaryrestraint arrangement „
withtheCommunitycoveringexportsofanumberofitstextile
productstotheEEC.Thearrangement established Community and
regionalquotasforten,categoriesoftextileproduct;itisdue
toexpireon31December.
II.Giventhepresentstateof,theEuropeantextileindustry anewarrange­
mentwillbeneededfrom1January1981.Thishasbeenexplainedto
theTunisianauthorities,interaliabyMr.Davignon,whovisitedTunis
from28-30August.
III.OnthatoccasiontheTunisianGovernment ,indicatedthatwhiledeploring
theabsenceofanyprospectforarapidreturntotheletterofthe
co-operation agreement^itintendedtotakearealisticandco-oper-
ativeattitudetowardstheCommunity,andthereforeagreedinprinciple
toafurthervoluntaryrestraintarrangement .
IV.Tunisfeelsthatthenewarrangement shouldbebothtemporary and
morefavourable thanitspredecessor/soastoconstitute asignificant
stepbacktowardsthe"legality"oftheco-operation agreement.
Asregardsthecontentofthearrangement/Tunisiahasinformedthe
Commissionthatit,considersthefollowingpointsessential :
-thenumberofproductssubjecttoquotashouldbereduced
-theCommunityshouldnottreatimportsofindigodenimofTunisian ~
originlessfavourably thanimportsofthesameproductproducedin
similarconditions r
-greaterflexibility shouldbeallowedfortrousers(category6).
V.Inthecourseoftheexploratory talkswhichtookplaceinBrussels
on3OctobertheCommission againindicatedtheneedforanew
arrangement,particularly sothattheCommunitywouldnotbeobliged
toapplythesafeguardclauseduringtheyear.Italsoemphasised
thatitwasintheinterestsofbothpartiestointroduce c!
administrative co-operationbasedontrie-double-checking system.
e/••e

2.
TheTunisiandelegation wasnotinapositionatthatstagetobe
morespecificabouttheimprovements Tuniswantedtoseeincorp­
oratedinthenewarrangement .However,itrepeatedthepoints
madeinTunisbytheMinisterfortheNationalEconomy(seeIII
andIVabove),withparticular referencetoindigodenim,itsex­
portsof.whichTunisiafeelsarebeingdiscriminated againstsince
theUnitedStates,anon-preferential country,exportsthisproduct
totheCommunityfreeofanyquantitative limitation .

RECOMMENDATION .FOP*"OUNCILDECISION AUTHOR-
ISINGTHECOMMISSION TOOPENNEGOTIATIONS WITH
THEREPUBLIC OFTUNISIA .TORAVOLUNTARY RE-'
STHAINTARRANGEMENT INRESPECT OFCERTAINTEX­
TILEPRODUCTS
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomic Com­
munity*,andinparticularArticle113thereof,
HavingregardtotheYecommendation fromtheConrnission.
WhereastheCommunity hasconcludedbilateraltextileagreements and
arrangements withcertainthirdcountries,whereasitisnecessary
torenewthearrangement withTunisia,whichexpiresoh31December
1980,.'.
y
HASDECIDED ASFOLLOWS :
SoleArticle
TheCommissionisherebyauthorised toopennegotiations withthe
RepublicofTunisiawithaviewtoconcluding avoluntaryrestraint
arrangement inrespectofcertaintextileproducts.
TheCommission shallconductthenegotiations inaccordance withthe
directives containedinAnnex1andinconsultation withtheSpecial
r
CommitteeprovidedforinArticle113oftheTreaty.

ANNEX1
Negotiating directives
1.Durationofthearrangement
Oneyear(from1January1981to31December1981)withareview
-clausefor1982(1)..
2.GroupIproducts
a)Category2:(2)
-removalofquota,establishment ofCommunity .andregional
limitsbeyondwhichthesafeguardclausecanbebroughtinto
I
operation;
•-
-settingupofcompulsorymachinery(coupledwithsuspensionof
exports)tooperatewhenimportsstandat80%ofthelimit.
:i
b)Category4:
-increaseinlinewiththe1977burden-sharing formula.
c)Category6:
-Communityquotatoberaised10%from1980administrative
level;andadjustmentofregionalquotas.
d)Category7:
-increaseof10%inCommunityquota,adjustmentofregional
aIlocation.
e)Category8: v'
-increaseinline-withthe1977burden-sharing formula.
•/•••■
(1)Notlaterthanthreemonths .beforetheendof1981theparties
shallreview "thete:;':ilesituationtodeterminewhatarrangements
aretoapplytoTunisiantextileexportsfrom1January1982,in
thecontextoftherelevantprovisionsoftheco-operation agreement
(2)Indigodenimaccount-f<-■rnearlyallTunisianexportsofcategory
2fabrics.Itisp'..nnedtocreateaseparatestatistical heading
fordenim.Oncethi;Jone,thetermsofthearrangement-
assuming :iisstiLinrorce-willapplyonlytodenim.

2.
3.Group IIproducts :
-elimination ofregional quotas (categories 13,21,26+27,and27);
less than 50%ofthe 1979 quotas for these products was taken up
-statistical SLVei Ilance "ofimports plus consu Itati onclause and
re-introduction ofquantitative controls inthe event ofabnormal
trade flows developing . '
4.ExpOrtl^to Greece ; -
-the -arrangement will include quotas forexports toGreece corres -
3yppnelang tothe "theoretical minimum share "(1).
5.Outward processing :
-iftheoutward processing regulation currently under consideration
isadopted specific outward processing quotas wi11have tobe
'incorporated inthearrangement .
6.Flexibi lity ■: '
~flexibility margin tobeincreased .-
7.Administrative co-operation :
-Asaquidpro quo fortheabove substantial concessions Tunisia .
will hav£ toagree tothe introduction ofthedouble-checking
system ,which isboth administratively simpler than thepresent
system and able toprevent anyoccurrence offraud (ithas sofar
been extremely reluctant todoso). . .•
' i '
8.Theimplications forMorocco :
-Morocco agreed toavoluntary restraint arrangement with the Com-
muryity which isnotduetoexpire until 31December 1981 .Inthe
course ofthenegotiations Morocco wasrightly concerned lest it
.should receive less ,favourable treatment than -Tunisia simply because
ithadagreed toalonger-term arrangement .
m/'mmmm
(1)5%of2%ofthetotal EEC (9)quota (aminimum level of1tonne
or1500 pieces ,according totheproduct ), -

Inreturnforuseofthedouble-checking system,theCommunitycouldaccept
toremove,forMorocco,thequotasofGroupIIandtheincreaseinthe*
flexibility margin.
1■> 1■

1981
QU0TA SANNEX 2
CATEGORY UNIT D F I BNL UK IRLl
:DK GR CEE
!
*
T-shirts"1,000
pieces1310 3,090 330 330 670 30100 ''.'5 4,865
6
Trousersl
1,000
pieces3,070 3,480 550 3,480 650 20 90 15 11,355
7 ,
:Blouses1,000
ipieces 3
I : 3685 555
r T90
3"420 80 4 1* 2
■■ ■ i1,850
8
Shirtsi : :
1,000
pieces
' '4,225 2,130 380 300 .600 25
•:50 10 7,420
- *i i'SAFEGUARD CLAUSE TRIGGER LEVEL FOR CATEGORY 2
PRODUCTS
2
Woven Cotton
fabricsTonnes 510 6,530 550 2,800 135\
35 35 10 10,605