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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)505final.
I
Brussels,8October1976.
Proposalfora
COUNCILREGULATION
establishing aeuropeanagencyfortradecooperation withthedeveloping
countries x
(submittedtotheCouncilbytheCommission)
)
CCM(76)505final

EXPLANATORY MEMORANDUM
I.INTRODUCTION
On30April1974"theCounciladoptedtworesolutions ,oneonimproving
theGeneralizedSystemofPreferences (GSP)andtheotheronfinancing,
byappropriations tqheenteredintheCommunityBudget,specifictech­
nicalassistance schemestopromotetheexportsofnon-associated
developingcountries;tradepromotionisalsoprovidedforintheLome
Convention.• I
Inthemeantimeinanotherresolution,adoptedon3Maifch1975»"the
Councilhasconfirmeditswilltomakeasustainedandjprogressive
efforttoimprovethegeneralizedpreferences,inparticularbyen­
couragingthebeneficiarydeveloping ,countriestomakebetteruseofthe
Community'sGSPbyprovidingthemwithmoreinformatiorl onit.Itisin
thiscontextthattheideaofcreatinganAgencyhasgrownup:thetask
oftheAgencywouldbe,amongstotherthings,tohelpimprovetheuti­
lizationoftheCommunity'sgeneralizedpreferences ,pieideareceived
immediatesupportfromtheEuropeanParliament(which/dealtwiththis
questionatlengthin1974and1975)1fromtheEconomicandSocial
Committee(inanOpinionda^ed15September1975)»friomthenationaladministrations oftheNine(seeAnnexII:ReportbyjMrdiMARTINO)
andfinally,ofcourse,fromthebeneficiarycountries.
''II.NATUREOPTHENEWTASKS
/ 1–
.
Inthefieldofgeneralizedpreferences,thenational 1iadministrations
jwouldliketoimproveboththequalitativeandthequantitative useof
GSPbydisseminating documentation ,information andadvicetotheusers,
withfouraimsinmind:
tomakeitsuseeasierforthedevelopingcountrieswhichhave
tounravelthecomplexities oftheCommunity'sscheme5
i I
tospreaditsusemoreevenlyoverthe'wholeCommunityand
increaseutilizationwhileadaptingittothestructuralandcyclicaltrendsof*theeconomicsectorsoftheCommunity
affectedbytheGSP; /f
-tospreaditsusemoreevenly ,/^mongtuevariousbeneficiary
countries *
•/2

-tomake itsusemore profitable fordeveloping country exporters ,
especially asregards thefinancial advantages .
\
Here are some figures that will give abetter overall picture :
YEAR POSSIBILITIES OFFERED UTILIZATION %
UKDER GSP
1974 3»250 m.u.c . 2.100 m.u.c . 65
1975 3*600 m.u.c . 2.450 m.u.c . 67
1976 4.6OO m.u.c . 2.700 -3.000 m.u.c.(l )59-65
1977 6.470m.u.c . 3.000 -3.500 m.u.c .(l)46-54.
Amore detailed analysis would reveal that the drop intheutilization rate
isconcentrated essentially inthe sector ofnon-sensitive products andthat
thebulk ofimports under theGSP isincreasing steadily inthe sectors of
sensitive and semi-sensitive products .
/
t!
Thenew t'&sks ,which will essentially involve execution ,will consist in
supporting theCommunity 'sGSPbyhelping topromote aneconomic impact
mpre favourable tothedeveloping countries andbetter adapted totheCommunity economy . ,, < J
' / ' \
' } ./' j>'.n ] J .| ,Asalltheaction envisaged i/sdiredted primarily fartprivate enterprise ,
thenewtasks should bedesigned ,carried outand'administered inaccor­
dance with themethods andstandard ^used intheprivate /sector /. f
1 ■/.J
Thetasks will involve thecollection andprocessing of/avast 'amount of
data .Thewo^k will cover allagricultural andindustrial products >
(2.429 tariff lines covered bythe1977 GSPscheme ).Theinformation
collected wi/llbeavailable toallactual orpotential users ^ofthepre­
ferences in ,theCommunity andinallthenon-member countries concerned .
Allthework concerned with distributing documentation ,providing infor­
mation andadvice will naturally call formethods suited tothespecific
character ofthe Community-' sscheme ofpreferences andthecomplex i^ules
governing itsoperation . '
Hence this action will bequite different from anything donemtheway
oftrade promotion tobedescribed later . /
I ■!
Inthe field oftrade promotion ,theimplemention ofthetrade promotion ,
action programme forthe ;46ACPStates andincreasingly fortheother developing
(l)estimate •/3

3.-
countriesmeansaconsiderable increaseintheworkloadallrequiring
theCommission'sstafftotakeactionveryquickly.
Thenewandadditionaltaskstobecarriedout,becauseoftheneed,
forspeedinthem,oftheiroperational andcommercialnature,indirect
andconstantcontactwiththeprivatesector,aremoreandmoredifficult
toreconcilewiththeadministrative andfinancialprocedures whichare
theCommunity's.'
Itshouldbenotedthatmanytradepromotionschemestakeplaceondates
setbyindependentbodiesandthesedatescannotbechanged.Itfollows
thatthepreparation oftheseschemesmustbecarriedoutwithinastrict
timeschedule,whichisgenerallyshort,withthehelpofmanypeopleor
companiesestablishedinthedevelopingcountriesandintheCommunityand
that,forthisreason,itisdifficulttousenormalchannelsofcommu­
nicationandadministrative decision-making procedurestocarryoutthis
typeofwork.
Experiencehasshownthatthenationaladministrations ofthellomberStates
havecomeupagainstsimilardifficulties intryingtocarryoutpromotion
schemesfornationalproductsonforeignmarkets;theyhavesolved,the
problembysettingupspecializedbodies,withsemi-publicstatus,which
aretheinstrumentsforcarryingoutthepolicydesignedanddecidedupon
intheMinistriesforForeignAffairs,EconomyandForeignTrade.
Thesolutionswhichhavebeenprovenatthenationallevelhavelargely
inspiredthethoughtsbelow.
III.CREATION OFACOIMJjnTY AGENCY
Theoperationalrequirements describedabove,althoughtheydiiferaccor­
dingtowhethertheyconcerntheGSPortradepromotion,dorunparallel
toandcomplement eachotherinmanyrespects:theyareundoubtedly
theresultofthebroadeningoutofCommunityactioninrespectofthe
developingcountriesinthefieldoftraderelations.Theymakeitneces­
saryforanappropriate bodytobesetupunderthecontrolandresponsi­
bilityoftheCommission,chargedexclusivelywithcarryingouteverything
relatedtotheschemes,programmesandprojects ,mentionedabove.
Itcouldbeintheformofa"Community
Agency"tocoverbothGSPandtradepromotion.ThisAgencywillbeput
undertheresponsibility andcontroloftheCommission.Forreasonsofa
practicalnatureitwillhaveitsheadquarters incloseproximitytoth-i
Commissionandthedevelopingcountries'trademissions,ordiplomatic
missionsasthecasemaybe.
TheAgency,whoseestablishment isproposed,willbecalledontoworkin
themainwithvariouspartiesintheprivatesectbr.Itsworkingmethods
anditsstaffwillthereforeneedtobeadaptedtothisrequirement .Hence
thedutiesassignedtothisAgencyarebydefinitiondutieswhichofficials
oftheCommission whoareboundbyStaffRegulations andbynatureinclined
tobecautious,willnotbeabletotakeon. /.

4.-
IV.DESCRIPTION AMDDISTRIBUTION OFTASKS
Themissionof"theAgencyistocarryoutdutiesintendedtofacilitate
generallytheachievement oftheCommunity'sobjectivesinthefieldof
traderelationswiththedevelopingcountriesthroughpracticalschemes
intwodistinctbutcomplementary fields:useoftheGSPandtradepromotion.
Becauseofthisdualpurpose,theAgencyhastwodistinctdepartments ,onefor
theGSPandtheotherfortradepromotionschemes.Thedutiesassignedto
eachofthesetwobranchesaredescribed below:
1.TheGSPDepartmentwillberesponsibleforthreekindsoftasks(seeAnnexi/A)
a)Providingdocumentation ontheGSP
-Settingupandoperatingthreecardindexsystems(ofimporters,
exportersandotherdonorcountries);
-SummaryoftheinfluenceoftheGSPontheexporttradeandeconomies
ofthedevelopingcountriesandontheEuropeanimporttradebased
onthesethreeindexes(l);
-Factualsummaryonacomparative andongoingbasisofimportsunder
theGSPintovariousdonorcountries .
b)Providinginformation
-Annualpublication-intheofficiallanguagesoftheCommunity,inSpanish
andifpossibleinArabic-ofapracticalguidetotheGSP;
-Updatedstatementsforusebyimportersandexportersoftheunused
quotaundereachceilingsubjecttosurveillance andeachindividual
maximumcountryamountlinkedtothatceiling(l);
-Organization ofGSPusers'meetings.
c)ProvidingadviceforGSPusersandindustryindevelopingcountries:
-Ontheadvantageous effectsoftheGSPontradecontractsyetto
beawarded;
-Throughmarket-by-marketorproduct-by-productfactualevaluationsinthe
Community.
2.TheTradePromotionDepartmentwillberesponsibleforthetechnicalpreparatior .
ofexecutionoftheactivitiesdescribedbelow,inaccordancewithpro­
grammesagreeduponbytheCommissionfollowingtheappropriateprocedures
-/5
(l)TheCommissionisinthecourseofinvestigating whatarethemostsuitable
meansofensuringthattheAgencyachievesitsobjectivesinthe
fieldsofstatistics anddata-processing .ItwillinformtheCouncilassoon
aspossibleoftheresultofthisinvestigation .

inforcefortheEDForforthegeneralbudget(seeAnnexi/B).
a)Assistanceforparticipation bythedevelopingcountriesin
tradeevents
-Organization offairsand"tradefortnights"inEuropeand
thedevelopingcountries.
b)Organization oftrademissionsandseminars
-MissionsbyEuropeanbuyerstothedevelopingcountries;
-MissionsbyproducersfromthedevelopingcountriestoEurope
and,aspartofthesetrademissions,theorganization inthe
MemberStatesofinformation seminarstoprovideanintroduction
tosalestechniquesandothermorespecificsubjects.
c)Trainingandtechnicalassistance
-Organization oftrainingcoursesforthestaffemployedbythe
governments ofthedevelopingcountriesinthevariousofficial
agenciesresponsibleforthepromotionofforeigntradeandfor
commercialrepresentation abroad;
-Providingexpertstogivetechnicalassistanceinsettingup
bodiessuchasForeignTradeCentresortohelpthepublic
authoritiestotakestepstodevelopexports.Providingexperts
tohelpadaptproductiontomarketrequirements (quality,design,
etc.);
-Carryingoutofmarketandmarketingresearchforspecificproducts
andthefollow-uptosuchstudies;
-Distribution ,especiallyattradeevents,ofallnecessarycom­
mercialliterature.Composingtechnicalnotes,specializedbooklets,
listsoftradeaddresses,etc.Inthelightofthedevelopmentofits
tasks,theAgencywillberesponsibleforhiringconsultants and
qualifiedexpertstocarryoutmissionsoutsidetheCommunityto
avoidaninappropriate expansioninitsownstaff.
NATUREOFTHEAGEENCY
TheAgencywillbesetupasaEuropeanagencywithlegalpersonality and
financialautonomyunderCommissionsupervision (seetheestablishment
scheduleatAnnexIIl)JEheAgency'sworkwillbesubjecttotherulesofbu­
sinessmanagement,receivesupportfromsimilarnationalbodiesinthe
iMemberStatesaridwouldbeindirectcontact,asfarasnecessary,withs
thedevelopingcountries'officesforthepromotionof
foreigntrade;
Je

-theoffices ofthedeveloping countries' commercial oreconomic
representatives ;
-the private bodies forliaison between theMember States ar<3.the
developing countries (Chambers ofCommerce ,etc.);
-theprivate sector ,especially business firms .
VI.STRUCTURE OPTHE AGENCY
TheAgency will beheaded byanExecufciveDirector assisted bytwoHeads
ofDepartment .Themanaging Director and thetwoHeads ofDepartment will
beappointed bytheCommission . •
The staff structure vail beasunbureaucratic aspossible sothat itissuited
totheprivate sector work requirements .Asiscustomary ,itwill have admi­
nistrators (twolevels )andsecretaries (twolevels ).
Theorganization oftheGSPDepartment oftheAgency isbased ontheprinciple of
dovetailing responsibilities horizontally (categories ofproducts )andver­
tically (importers' markets ,beneficiary anddonor countries ).This Department
consists oftwoteams (seeAnnex i/A).
TheTrade Promotion Department consists ofthree teams ,each corresponding toa
major field ofactivity inthepromotion oftrade (seeAnnex I/B).
ThetwoDepartments will have afurther service incommon ,which will deal with
administration and accounts .
Details ofthestaff numbers aregiven inAnnex i/C),
■VII .FINANCING THE AGENCY
Thefinancing oftheAgency 'soperating costs will becovered byanannual
subsidy from thebudget oftheEuropean Communities ,aswell asbyvarious
other incomings .
TheAgency will draw upandsubmit totheCommission forapproval ,notlater
than 31March each year ,theforecast ofitsoperating costs forthefollowing
year .Theforecast for1977 istobefound inAnnex I/D.

DIKECTORATE-GMERAL FOR
EXTERNAL RELATIONS
DIRECTORATE-GENERAL FOR
DEVELOPMENTBrussels,1stOctober1976
Annexes
\
κ

ANNEXI
DESCRIPTION' ANDDISTRIBUTION OFTHETASKSOFTHEGSPDEPARTMENT ANDOFTHE
TRADEPROMOTION DEPARTMENT
A.THEGSPDEPARTMENT
TheGSPDepartmentoftheAgencywill"beresponsible ,onthebasisofCommission
directivesandunderCommission'scontrolandresponsibility ,forthreecategories
ofactivity.
1.Documentation
Thepurposeofthedocumentation workistocollectinformationessentialfora
betterknowledgeoftheGSP'sroleinrelationtotradeandtheeconomy.
TothisendtheGSPDepartmentwillcompileandmakeuseofindexsystems:
-oneofimporterswhouseorareaffectedbytheGSP(urgentlyrequestedbythe
beneficiarycountries);
-oneofexportersinthebeneficiary countrieswhouseorareaffectedbythe
GSP(requestedbytheimporters)• *
TheGSPDepartmentwillundertakefactualsummariesoftheGSP'simpactonthein­
dustrialized countries'exporttrade,onthebeneficiarycountries'export
tradeand,subjecttotheinformationavailable,ontheeconomyofthedeveloping
countries .
2.Information
TheGSPDepartment'sfirsttaskwill.betopublishinalltheofficiallanguagesof
theCommunity,andinSpanishandArabic,atthebeginningofeachcalendaryear,
apracticalguidetotheCommunity'sGSP.Thisguidewillconsolidate themany
regulations andPTOdecisionsgoverningeachannualschemeintoasimplifiedbut
completeandprecisemanualofinstructionsaccessibletoallusers(importers
andexporters).
Thesecondtaskwillbetomakepermanentlyavailabletoimportersandexportersa
continuously updatedstatementoftheunusedquotaundereachceilingsubjectto
surveillance andeachindividual maximumcountryamountlinkedtothatceiling
(and,ifpossible,ofeachtariffquotaandthecorresponding nationalquotashares).
3.Advice
Duringafirststage,theGSPDepartmentwiH.beabletomakeavailabletoGSPusers
ontheimportingandexportingsidestheinformation (accompaniedbyappropriate
commentaries basedonfactual"summaries)containedintheindexes-
2./

oftheGSPtariffbenefitswhichcould
theconclusionofsalescontracts.
*
* *
Onthebasisofthesethreecategoriesofactivity,thestafftoberecruitedby
theGSPDepartmentwouldberesponsibleforthefieldsbrieflydescribedbelow,subje
towhateverformoforganizationisdecideduponbythefutureExecutiveDirector
oftheAgency.
Thedistribution ofresponsibilities isbasedonthreekeyideas:
-thestaffstructurewillbeasunbureaucratic aspossiblesothatitcanbe
adjustedtotheprivatesector'srequirements :itwillbemadeupmainlyof
administrative andassistantadministrative staffandofsecretaries recruted
onthebasisoftheirqualifications andexperienceinthefieldofinternationaltrade;-teamworkandjointresponsibility willbetherul6topreventtheillnessor
temporaryabsenceofanofficialfromblockingtheactivityoftheDepartment
especiallyasregardsthecollectionanddistribution ofinformationregarding
useoftheGSP;
-areasofresponsibility willallocatedhorizontally (bycategoriesofproducts)
andvertically (importmarkets,beneficiarycountries,donorcountries)}
Twoteams,eachwithitsownspecifictermsofreference,willberesponsiblefor
carryingoutthesetasks.
1.Thefirstteamwillbeaguidanceandliaisonunitresponsiblefor:
-summarizing theusemadeoftheGSPatthelevelofthevariouscategoriesof
product,themarketsoftheMemberStatesandthemarketsofthebeneficiary
countries;
3./

-liaisonwiththeCommssion'sdepartments ;
-preparingtheGSPguide;
-liaisonwiththecorresponding organizations andtheimportersandindustries
concernedintheMemberStatesandthebeneficiary countries ;
-organizingmeetingsofGSPusers;
-studiesand.adviceontheuseoftheGSP.
Thesecondteamwillcollectsectoralinformation andundertakeanalyses.This
sectionwillcompromisethreespecialized subsections responsiblerespectively
forthefollowingsectors,whichcorrespondtothreespecificareasofapplication
oftheGSP:
agriculturalproducts(chapters1-24oftheCCT),includingagricultural pro­
ductssubjecttotariffquotas;marketsoftheUnitedKingdom,Irelandand
Denmark;
-textileproductsandindustrialproductssubjecttotariffquotasor"hybrid"
ceilings;marketsofFranceandItaly;
-semi-sensitive productswithceilingstosubjecttosurveillance andnon-sensitive
products;marketsofGermanyandBenelux.
Foritsanalyses,theteamwillmakeuseoftheindexofimportersusingtheGSP
andtheindexofexportersinthebeneficiary countriesusingtheGSP.Itwillhave
availableforusethestatisticaldatarelatingtotheGSPinthethreesectors
referredtoaboveandprovidespecializedinfonnation oneachproductinvolved.
4./

ANNEXI
B,THETRADEPROMOTION DEPARTMENT
TheTradePromotionBranchwillberesponsible ,onthebasisofCommission
directivesandunderCommissionsupervision ,forallactivitiesrelatingtothe
executionofthetradepromotionprogrammesandprojectsdecideduponbytheCom­
missioninfavouroftheassociatedandnon-associated developingcountries.
Thesetaskswillbecarriedoutbythreeteamseachspecializedinfield
requiringspecificqualifications .
1.Thefirstteamwillberesponsiblefortheparticipation bythedeveloping
countriesintradeeventsincludedintheCommunityprogrammesinfavourofthe
associatedandnon-associated developingcountries.Itsdutieswillcover:
-contactswiththemanagementoffairsandspecialized showswithaviewto
selectingandreservingexhibitionsites;
-contactswithmajorstoreswithaviewtoorganizing "seminars"or"trade
fortnights"foroneormoredevelopingcountries;
-contactswiththedevelopingcountries'tradepromotiondepartments and
officeswithaviewtodetermining thedetailsoftheirparticipation s
areaofstands,natureofconstruction ,choiceofmaterials,interiorfittings,
decoration,additionalequipment,productsexhibited(quantities,volumes,
etc.);
-contactswithspecialized bodieswithaviewtoencouragingparticipation
andwiththemassmediaforthedissemination ofinformation ontheevents;
-contactswithtradeorganizations inEuropeandinthedevelopingcountries
withaviewtothepreparation ,attradefairsandshows,ofmeetingsbetween
thoseinthetradeinordertoimprovetheexchangeofinformation between
firms;
-preparationofmeetings(halls,organization andsecretarialassistance);
-hiringsitesforthestandsinfairsandlargestores;
-preparation ofinvitationstotenderfortheconstruction ofthestands;
-construction ofthestands;
-evaluationoftheresultsoftheparticipation bythedevelopingcountriesin
thetradeeventsintermsoftradingresultsandimprovement ofthequality
ofparticipation •
5./

5.-
ANNEXI
2.Thesecondteamwillberesponsiblefororganizingtrademissionsanditstasks
willcover:
-studies,inliaisonwithEuropeantradeorganizations ,relatingtoEuropean
purchasingmissionsinthedevelopingcountries;
-approachstothedevelopingcountries'promotionofficeswithaviewtothe
organization ofsuchmissionsinthecountryconcerned;
-negotiations withtradeorganizations onthenatureandamountofCommunity
contributions ;
-contactswithpublicorprivatebodiesintheMemberStatesthatcouldassist
theCommunitywiththeorganization ofthesemissions;
-contactswithtravelagenciesforthepracticalpreparation ofthemissions;
-evaluatingthetradingresultsofthemissionsinquestion,inliaisonwith.the
subcontracting organizations .
3.Thethirdteamwillberesponsiblefortrainingschemesintheareasof
tradeandtechnicalassistance anditsmaindutieswillbe:
-preparation ofseminarsinthedevelopingcountriesonmarketingandinter­
nationaltradequestions;
-recruitingfirmsorindividualstotakecharge0fthecourses,conferences
product-by-productstudies,groupdiscussions ,etc.;
-examiningthedevelopingcountries'requestfortechnicalassistanceinthe
veryvariedfieldsofmarketingandsalespromotion (quality,presentation ,
packaging,transport,agents,design,et.),discussionwiththerepresentatives
oftheapplicantdevelopingcountriesofthejobdescriptions andevaluationof
theresultsoftheseoperations onthebasisofreportssuppliedbythe
individuals orfirmswithwhomcontracts havebeenconcluded .
6./

ANNEXI–
-marketresearchandsurveysand,ingeneral,tradeinformation anddocumentation
work;
-theimplementation ofanytradepromotionschemesadoptedbytheCommission
infavourofoneormoredevelopingcountries.Ingeneralthisinvolves
promotioncampaignsforaproductonthemarketofoneormoreMemberStates;
-examining,togetherwiththedevelopingcountries,thetradedocumentation
theyarepreparingwiththeCommunity'saidandparticipation indrafting
information sheetsonproducts,specialized brochuresandallotherspecialized
documentation .
7./
\

7.
ANNEXI
C.THEAGENCY'SSTAFFCOMPLEMENT
Thestaffareallocatedasfollows
Managerialstaff
Administrative staff8
10
Technician 1
Administrative andaccountingofficer 1
Secretarial staff 12
Subordinate staff 2
34
IntheopinionoftheCommissionthestaffcomplementof34peoplematches
uptothetasksoftheAgencyasdescribed.Recrutmentofpersonalwillbe
carriedoutinaprogressive mannerasandwhenthedifferentservicesofthe
Agencyarebroughtintooperationinrelationtothedevelopment oftheir
activities .
8./

MNE3CI
ORDEROPMAGNITUDE OPANTICIPATED COSTS
u.a.
1.Initialinstallation costs 180.000
2.Operatingcosts 120.000
3.Expenditure onstaff 750*000
1.050.000

ANNEX -L-
CONFIDENT IAL
REPORT
onthecreationoftheGSPDocumentation ,StudyandAdvisoryAgency
Bycontract .signedwiththeCommissionoftheEuropean
Communities ,theundersigned wascharged,withaviewtothe
establishment oftheGSPDocumentation ,StudyandAdvisory
Agency,withcarryingoutthefollowingtaskonthe
Commission'sbehalf:
(i)identifyingtheproblemsfacingindustriesandimporters
associations asaresultofthegeneralized preferences
andsoundingouttheideasofnationalauthorities on
whatthefunctionoftheAgencyshouldbe;
(ii)makinganysuitablesuggestionsastothetaskstobe
assignedtotheAgencyandastoitsoperation.
Thisisareportontheresultsofthemissionwhichthe
undersigned wasrequiredtoundertake.

-2-
ANWEXII
Introduction
Assoonasthefirstapproacheshad"beenmadeitprovednecessary
tosoundoutthe"beneficiarycountriesoftheCommunity'sGSPtoo
inordertoidentifycorrectlytheirneedsanddesiderata.In
agreementwithDGI,thesesurveyswerecarriedoutwiththehelp
oftheUNCTAD/UNDPteamresponsiblefortheGSPseminarsproject,
thatoftheIndianrepresentatives (Indiawasthefirstcountry
tosupporttheideaofanAgencyandtopressforitscreation
subsequently),thatofASEANandtheCentralAmericancountries.
Thefirstpartofthisreportwillsumupthemainbasicideas
whichrepresentthepointsonwhichtheviewsofeachofthese
groupsconvergedmostclosely.Itwillthensetout,inthesecond
part,thetaskstobeundertakenbytheAgencyassuggestedbythese
generally-held ideasandthenmakeafewsuggestions astothe
operationoftheAgency.
I.ThecreationoftheAgency:theideasofthenationalauthorities
andthedesiderata ofthedevelopingcountriesandoftheprivate
sectorintheCommunity
Asfarasthenationalauthoritiesareconcerned,theneedfor
theAgencyisrecognized.Itshouldformthekeyelementinthe
back-upforthegeneralizedpreferences.
TheAgencyshouldbeusedastheinstrumentparexcellencefor
improvingtheutilizationoftheGSP,inotherwords:
(i)easieruseforallbeneficiaries (theGSPschemeisvery
complex);
(ii)morewidespreaduseifpossibleoverthewholeCommunityand
agreaterusequantitivelythroughbetteradaptationtothe

-3-
ANKEX-I
structuralandcyclicaltrendofbusinessintheCommunity
(thesensitiveandsemi-sensitive sectorshavereached
saturationpointasregardsimprovement ;importsunder
theGSPareconcentrated onthefirstsectorandtoa
lesserdegreeinthesecondsector,whileinthesectorof
non-sensitive productstherearegreatopportunities fora
widerangeofproductsandonalargescale);
(iii)betterspreadofutilizationamongthevarious "beneficiaries
(over50%ofimportsundertheGSPinthesectorsof
sensitiveandsemi-sensitive productscomefromfive
beneficiaries );
(iv)moreprofitableutilizationforexportersinthedeveloping
countries(becauseofinsufficient informationandnoreal
securityatthetechnicallevelforimportsundertheGSP,
exportershardlybenefitfromthefinancialadvantages
resultingfromtheduty-freearrangements).
TheAgencyshouldalsobedesignedtofulfiltheneedsand
desiderataofthebeneficiary countriesandtheirregional
economicgroupingsinapracticalmanner.Inthisconnection ,
itwasstressedbyallthattheAgency,whichisaimedat
countriesnotassociatedwiththeCommunity,representsaboveall
apoliticaleffortillustrating theCommunity'swilltotakeon
moreresponsibility inrespectofthosecountriesfollowingthe
successfulconclusionandbringingintooperationoftheACP-EEC
ConventionofLom£.Thisiswhyparticularattentionshouldbe
paidtoturningtheAgencytogoodaccount.Thisshouldbedone
insuchaway-particularly asfarasthetimingandchoiceof
international contextareconcerned-astoenabletheCommunity
todrawthemaximumpoliticalbenefitfromit.
Promtheangleofindustrythebusinesssituationisnotfavourable
tonewinitiativestopromotetheGSP.AlthoughtheGSPisnot
beingcalledinquestion,therearedoubtsabouttheutilization-
describedasabusive-oftheGSPbycertainover-competitive
countries.ThereisinterestintheAgencyasaninstrumentto
moderateimportsundertheGSP,whichoughttobereserved
primarilytothosefromthedevelopingcountriesthatmostneedto
exportunderthescheme.ItisrecognizedthattheAgency,intime

ANNEX I
andgiven certain conditions ,could beuseful forestablishing
conversion measures ,preparing forthetransfer ofcertain
industrial activities tothesouthern hemisphere andworking
outinvestment policy forfirms .
Forimporters ,theAgency fills aneed .TheInternational
Wholesale andForeign Trade Centre ,which embraces thenational
horizontal organizations andEuropean sectoral organizations ,
stressed theproblem ofuncertainty astowhether customs duties
aretobereintroduced ,which tends tocomplicate theaward of
purchasing contracts ,andthought that theAgency should deal
with theresultant difficulties .The importers areaware that
their role isimportant :itisupon them andupon the consumers
that thesuccess and coverage oftheGSPdepend inthefinal
analysis ,especially when business conditions aredifficult .
TheAgency could help them byenabling them tobecome better
acquainted with theexporting firms inthebeneficiary countries ,
their export products and ,last butnotleast ,theexport barriers .
Foranumber ofbeneficiary countries which arereasonably
representative ,such asIndia andtheASEAN and Central American
Common Market countries ,theAgency -thecreation ofwhich was
announced along time agoandhasnowbecome urgent -could play
akey role inimproving GSPutilization .Thequestion ofsecurity
atthe legal andtechnical levels crops upagain andagain :how
canonemake anyindustrialization plans (oneofthethree agreed
objectives ofthegeneralized preferences )when theGSPmayatany
time bereduced ,oreven withdrawn ,since itiscompletely
autonomous andoften even arbitrary ?How isitpossible tonegotiate
sales contracts ongood terms when theexporters cannot foresee the
moment when the customs duty will bereintroduced ?Inadequate
knowledge oftheGSPandthegeneral lack ofinformation onEEC
markets place thedeveloping countries' exporters inasituation
where they aregreatly dependent onimporters .Itwill not ,of
course ,betheAgency *sjobtosolve political problems such as
those concerning theduration oftheGSPandsecurity atthelegal
level ;itcould ,nonetheless ,contribute towards attenuating
certain difficulties onthepractical level .Itcould ,forexample ,
provide acertain degree ofsecurity atthetechnical level bymakirg
available toexporters among other things ,up-to-date information on
thedegree ofutilization ofeach quota (andeach national quota share )

-5-
AMEX ■-
andofeachceiling,whichisnotyetpossibleatpresent.It
couldpublishforeachproductinformation onthetrendofGSP
utilization andofimportsoverpastyearssothatexporters
haveaccesstodataonthesizeofthemarketandoncompetition.
Aboveall,itshouldsetupacentralindexofallimportersby
branchofindustry.Everyyear,itshouldpublish,inthemost
commonlanguages,aguidetotheverycomplexrulesgoverning
theannualschemes.ItshouldalsoarrangemeetingsforGSP
users:importers,exportersandevencandidatesforindustrial
cooperationprojects.(Apointthatwasemphasizedwasthe
provisionofsimultaneous interpretation becausethelanguage
questionwasinmanyinstancesamajorbarriertothedevelopment
ofcontacts.)Finally,theAgencywouldenableexportersto
havedirectaccesstotheinformationtheyneed;thiswould
facilitatethetaskofthebeneficiary countries *authorities
and.thatoftheirdiplomaticmissionsaccreditedtothe:
Community.
Fortherepresentatives oftheUNCTADSecretariat ,andparticularly
fortheUNCTAD/UUDPteamworkingontheGSPprojecttheAgency
wouldbeapreciousinstrumentforpromotingabetterknowledge
oftheGSPandespeciallyofitsimpact,whichwouldmakeit
easiertoimprovetheutilizationoftheGSPandgiveabetter
distribution oftheburdenamongthedonorcountries.TheUNCTAD
Secretariat expectstheexamplegivenbytheCommunitytobe
followedbyotherdonorcountries.Itispreparedtocooperate
withtheAgencyintheexchangeofexparienceandinformation
ofallkinds.
II.Suggestions astothetaskstobeallottedtotheAgencyand
itsoperation
1.TheAgency'stasks
Inthelightoftherequirements anddesideratadescribedabove,
threetypesoftaskshouldbeallottedtotheAgency.

-6-
AMEXII
Providingdocumentation andirn_ormation
TheAgency'sfirsttaskwouldbetopublishinalltheofficial
languagesoftheCommunityandinSpanish,atthebeginningof
eachcalendaryear,apracticalguidetotheCommunity'sGSP.
Thisguidewouldtransformthenumerousregulations and
decisionsgoverningeachannualschemeintoasimplifiedbut
completeandprecisemanualofinstructions ,easilyunderstood
byallusers(importersandexporters).
Thesecondtaskwouldconsistinkeeping,forusebyimporters
andexporters,constantlyupdatedstatementsoftheunused
quotaundereachceilingsubjecttosurveillance andeach
individualmaximumcountryamountlinkedtothatceiling(and,
ifpossible,ofeachtariffquotawithitsnationalquota
shares).
Undertaking£tudies
Thepurposeofundertakingstudiesistoprovideassystematic
informatioraspossibleontheGSP'sroleinrelationtotrade
andeconomy.
Forthiswork,theAgencywouldbaseitselfonthreeindexesit
wouldhavetocompile:
(i)oneofimporterswhouseorareaffectedbytheGSP
(urgentlyrequestedbythebeneficiarycountries);
(ii)oneofexportersinthebeneficiarycountrieswhouseor
areaffectedbytheGSP(requestedbytheimporters);
(iii)acomparativeindexofimportsundertheGSPintothe
preference-giving countries.
TheanalysesandstudiestobecarriedoutbytheAgencywould
concerntheGSP'simpactontheindustrialized countries'import
trade,onthebeneficiarycountries'exporttradeand,subject
totheinformationavailable,ontheeconomyofthedeveloping
countries.
Providingadvice
TheAgencywouldnotbeabletoprovideatrueadvisoryservice
intheinitialstages.Itwouldbeabletodothisonlylater,

ΑΪΓΝΕΧ
when ithadbuilt upasufficient store ofexperience andwhen
anumber ofpolitical options hadbeen taken atCommunity level .
During aninitial stage ,theAgency 'sscope initsadvisory
capacity would besomewhat restricted .Tostart with ,itwould
make available toGSPusers ontheimporting and exporting sides
theinformation (accompanied byappropriate commentaries based
ondetailed analyses )contained intheindexes ofimporters and
exporters referred toabove .Secondly ,itwould provide them
with opportunities tomeet andorganize meetings forthem
together with the essential infrastructure .Precise details
would also besupplied toallinterested exporters ,onaproduct -
by-product basis ,ofthe extent oftheGSPtariff benefits which
could beturned togood advantage tofacilitate theconclusion
ofsales contracts .
Atalater date ,theAgency would beable toextend itsadvisory
activities :
(i)forexporters byencouraging orfacilitating thetrade
promotion ofthedeveloping countries *industrial
manufactured products inthe context oftheGSP ;
(ii)fordeveloping countries *industries byproviding them
with analyses oftheprospects onthe sectoral markets
oreven forspecific products inthe Community ;
(iii)forCommunity industries byproviding data onthe
opportunities forextending their activities and
establishing themselves inthedeveloping countries .
2.TheAgency 'soperation
Toenable theAgency tocarry outthethreefold task sketched
outabove ,anumber ofconditions have tobemet .
First ,asfarasthedesign oftheAgency itself isconcerned ,
theidea istosetupanoperational instrument that is
effective and inasclose touch aspossible with theusers .
Itshould beneither acivil service department nora
consultancy bureau butacentre that provides aservice and is

-8-
ANNEX II
atthedisposal ofbusiness firms .Placed under Commission
supervision ,theAgency should beable tooperate ina
sufficiently autonomous manner toadapt itself constantly
totheworking conditions andneeds ofthebusiness world .
TheAgency should adopt theoperational style ofworking used
intheprivate sector .
TheAgency should beprovided with theappropriate means .
Thecreation ofalarge urrwiedly staff should beavoided :ten
orsoexecutive officers ,with assistants andsecretaries
should suffice .The equipment should include adequate computer
facilities andmeeting rooms equipped forsimultaneous
interpretation .TheAgency should beable torely onhaving
asure supply ofbasic data ,forexample onusebeing made of
theGSP (from theCommission andthenational authorities ).
Finally ,concerning work methods ,theAgency should concentrate
tostart with onthe documentation and information side ofits
task .Only gradually ,asitbuilds upitsresources ,will the
Agency beable tobegin carrying outstudies andproviding
advice .TheAgency should work inconstant liaison with national
centres ofthesame type ("Import Opportunities Office forthe
Developing Countries "intheUnited Kingdom ",Centrum tot
bevordering vandeimport uitontwikkelingslanden "inthe
Netherlands ,"Bundesstelle furAussenhandelsinformation "in
Germany ,andsoon)andcooperate with theGATT/UNCTAD Trade
Promotion Centre and the UNCTAD Secretariat .Inthe initial
stages the first bodies toreceive the information ontheunused
balance ofceilings andtariff quotas should betheInternational
Wholesale andForeign Trade Centre andthetrade promotion
institutes ofthebeneficiary countries .Insetting upthe
indexes ofimporters andexporters ,theAgency should draw on
theexperience ofthe Import Opportunities Office forthe
Developing Countries which uses the "Company profile "formula
toidentify thefirms requesting itsservices .
Brussels ,10January 197°
M.V. diMartino

AnnexTTT
PROPOSAL FORACOUNCILREGULATION ESTABLISHING AEUROPEAN
AGENCYFORTRADECOOPERATION WITHTHEDEVELOPING COUNTRIES
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomic
Community,andinparticularArticles113and235thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheOpinionoftheEuropeanParliament,
HavingregardtotheOpinionoftheEconomicandSocialCommittee,
Whereasbyitsresolutions of30April1974and3March1975
theCouncilreiterateditswishtoimprovetheuseofthe
generalizedpreferences schemeandactivelytocontribute
towardsthedevelopment oftraderelationswiththedeveloping
countries ;whereasithastothisendrequestedtheCommission
toputbeforeitconcreteproposalsfortheimplementation of
theresolutions adopted;
Whereastheappropriate useoftheCommunity *sgeneralized
preferences schemeandtheexerciseoftheresponsibilities
incumbentupontheCommunityinthematteroftradepromotion
forthebenefitofthedevelopingcountriesraiseparticularly
wide–rangingandcomplexproblemsbecauseofthevolumeof
tradeinvolvedandtheinterestsatstakeandwhereasthe
relevantimplementing measurestobetakenintheCommunity
andthedevelopingcountriesmustbecarriedoutunderoptimum
conditions ;
Whereas,withaviewtofacilitating Commissionactionand
makingadministration asflexibleaspossibleatthelevelof
execution,aEuropeanAgencyforTradeCooperation withthe
DevelopingCountriesshouldbesetupasadecentralized body
managedonbusinesslinesandunderthesupervisionofthe
Commission,forwhichitwillreceivedirectives;

-2-Annex
Whereas theTreaty has notprovided the specific powers
necessary for setting upsuch anAgency ;
Whereas theAgency will besetupwithin theframework of
theEuropean Communities and will function inaccordance
with Community lawand with the directives given toitby
theCommission ,andwhereas theconditions under which
certain general provisions will apply should bedefined ,
HAS ADOPTED THIS REGULATION :
Article 1
AEuropean Agency forTrade Cooperation with theDeveloping
Countries ,hereinafter called the "Agency ",ishereby setup.
Itshall have legal personality .
Ineach oftheMember States ,itshall enjoy themost extensive
legal capacity accorded tolegal persons . Itshall exercise
itsactivity exclusively inthegeneral interest .
Itshall benon–profit making .
It/shall bemanaged onbusiness lines .
TheAgency shall have its seat inBrussels .
Article 2
Theaim oftheAgency shall betofacilitate bymeans of
practical measures theachievement oftheCommunity 'sobjectives
inthe sphere oftrade relations with thedeveloping countries .
(i)asregards generalized preferences itstask shall beto
provide information ,documentation andadvice forbusiness firms ,
inparticular Community importers anddeveloping country exporters .

Annex ill
(ii)asregards trade promotion ,itstask shall bethe
execution ofprojects andaction programmes defined and
approved bytheCommission .
TheAgency shall ,where necessary ,ensure complementarity ir
these two fields .
Incarrying outthetasks entrusted toitbytheCommission
theAgency shall cooperate closely with thenational bodies
oftheMember States specializing intrade cooperation with
thedeveloping countries andshall establish appropriate
contacts with those concerned .
Article 3
TheAgency shall berunbyaManaging Director assisted by
twoHeads ofDepartment .TheManaging Director andthetwo
Heads ofDepartment shall beappointed bytheCommission .
Their term ofoffice shall bethree years andshall be
renewable .TheManaging Director andtheHeads ofDepartment
maybedismissed bytheCommission .
Article 4
TheManaging Director shall beresponsible totheCommission for
theadministration oftheAgency .Intheperformance ofhisduties
theManaging Director shall observe thegeneral andspecific directives
given tohimbytheCommission .Heshall inallcircumstances submit
tosupervision bytheCommission andbeaccountable toit.
TheManaging Director shall bethe legal representative of
theAgency .
TheManaging Director may delegate hispowers totheHeads
ofDepartment ortomembers ofthestaff oftheAgency .
Article 5
TheManaging Director shall beassisted byaManagement
Committee composed offour members appointed bytheCommission
and selected from within theCommission 'sdepartments
responsible forimplementation ofthegeneralized system of
preferences andfortrade promotion activities .

-4-
Annex III
Thetask ofthe Management Committee shall betoadvise the
Managing Director ,either athisrequest oronitsowninitiative .
TheChairman shall convene theManagement Committee atleast
twice ayear ,asagreed with theManaging Director .
Article 6
TheManaging Director shall ,by31March each year atthe
latest ,send theCommission theoperating budget ofthe
Agency forthefollowing year .This budget ,which shall
include anestablishment plan ,shall beforwarded bythe
Commission totheCouncil with thepreliminary draft budget
oftheEuropean Communities .
Thebudget oftheEuropean Communities shall each year ,under
aspecific heading ,include asubsidy fortheoperating ofthe
Agency .
TheManaging Director shall adopt theestimate ofrevenue and
expenditure before thebeginning ofthefinancial year ,
adjusting ittothe subsidy granted bythebudgetary authority .
Article 7
TheCommission shall communicate theannual action programmes
totheManaging Director oftheAgency sothat they canbe
carried outassoon aspossible after theCommunity budget
hasbeen approved .
Projects notcontained intheannual action programmes shall
besent totheManaging Director oftheAgency asandwhen
they have been approved .
Theappropriations tocover the operational expenditure of
each Department oftheAgency shall befixed bytheCommission
when itsends each programme orproject totheAgency .

AnnexIII
Article8
TheManagingDirectorshall,by31Marcheachyearatthe
latest,prepareanannualgeneralreportontheactivities
andfinancialsituationoftheAgencyforthepreceding
yearandshallsubmitit,afterreceivingtheopinionofthe
ManagementCommittee,totheCommission.
Article9
Abalancesheetadoptedon31December,towhicharevenue
andexpenditure accountisannexed,shallbedrawnupannually.
Itshallbeaddressed,by1Marchatthelatest,totheAudit
BoardprovidedforinArticle206oftheTreaty,whichshall
reportontheAgency'saccounts.
TheManagingDirectorshalleachyeardrawupamanagement
reportontheprecedingfinancialyear.TheCommissionshall
receive,by1Mayatthelatest,thebalancesheet,theRevenue
andexpenditure account,thereportoftheAuditBoardandthe
managementreportoftheManagingDirectorandshallgrantthe
latteradischargeinrespectofhismanagementduties.
Theabovedocumentsshallbeannexedtotheaccountsofthe
precedingyearandtheCommissionshallsubmitthemannually
totheCouncilandtheEuropeanParliamentpursuanttothe
fourthparagraphofArticle206oftheTreaty.
Article10
TheprovisionsgoverningthestaffoftheAgencyshallbe
adoptedbytheCouncil,actingonaproposalfromtheCommission.
Article11
TheManagingDirector,thetwoHeadsofDepartment,thestaff
andallotherpersonsparticipating intheactivitiesofthe
Agencyshallberequired,evenaftertheirdutieshaveceased,
nottodiscloseinformation ofthekindcoveredbythe
obligationofprofessional secrecy.
Article12
TheProtocolonthePrivilegesandImmunitiesoftheEuropean
CommunitiesshallapplytotheAgency.

AnnexIII
Article13
ThecontractualliabilityoftheAgencyshallbegovernedby
thelawapplicabletothecontractinquestion.
TheCourtofJusticeoftheEuropeanCommunitiesshallhave
jurisdictiontogivejudgmentpursuanttoanyarbitration
clausecontainedinacontractconcludedbytheAgency.
Inthecaseofnon-contractual liability,theAgencyshall,
inaccordancewiththegeneralprinciples commontothelaws
oftheMemberStates,makegoodanydamagecausedbythe
Agencyoritsservantsintheperformance oftheirduties.
TheCourtofJusticeshallhavejurisdiction indisputes
relatingtocompensation foranysuchdamage.
Article14
MemberStates,membeflsoftheManagementCommitteeofthe
Agencyandthirdpartiesdirectlyandpersonallyinvolvedmay
refertotheCommissionanyactoftheAgency,whetherexpress
orimplied,fortheCommissiontoexaminethelegalityof
thatact.
ReferralshallbemadetotheCommissionwithinfifteendays
ofthedayonwhichthepartyconcernedfirstbecameaware
oftheactinquestion.
TheCommissionshalltakeaDecisionwithinonemonth.If
noDecisionhasbeentakenwithinthisperiod,thecaseshall
bedeemedtohavebeendismissed.
Article15
TheCommissionisauthorizedtotakeallstepsrequiredfor
thesettingupandoperationoftheAgencyanditsbodies.
TheinitialcostofsettinguptheAgencyshallbecharged
totheCommunities' budget.
Article16
ThisRegulationshallenterintoforceonthethirdday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities.

AnnexIII
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.
DoneatBrussels. PortheCotincil
ThePresident

FINANCIAL RECORD
drawnupforthe1976-1977budgetyears
A.PARTIjINTERVENTION APPROPRIATIGNS
Establishment ofaEuropeanAgencyforCommercialCooperation withthe
developingcountries.
1.RELEVANTBUDGETHEADINGCODE
Anewheadinghastobecreated
2.TITLEOPBUDGETHEADING
AidfortheoperationoftheEuropeanAgencyforcommercialcooperation
withthedevelopingcountries
3.LEGALBASIS
113and235EEC
4.DESCRIPTION ,OBJECTIVES ANDJUSTIFICATION OFTHEPROJECT
ThemissionoftheAgencyistocarryoutdutiesintendedtofacilitate
generallytheachievementoftheCommunity'sobjectivesinthefieldof
traderelationswiththedevelopingcountriesthroughpracticalschemes
intwodistinctbutcomplementary fields:useoftheGSPandtrade
promotion *
5.FINANCIALAPPROPRIATIONS (inu.a.)
5.0MULTI-ANNUAL TIMETABLE
1977i760.000u.a.
1978:870.000u.a.
5.1PATTERNOFUTILIZATION DURING1HEFINANCIAL YEARNOWBEINGPREPARED
Theexpendituretobeincurredduringthefinancialyearwillbe
concernedwithappropriations foroperating.TheAgencyshould
starttooperateatthebeginningof1977andwillreachitsnormal
patternofactivitiesin1978.
5.2MS1H0BOFCALCULATION
Fortheequipmentandtherentthepriceshavebeencaloulated on
thebasisofthoseIneffectinBrusselsin1916,
3>>

Forstaffcostssalarieshaveteencalculated onthe"basisof
thosewhichhavebeenestimatedforsimilarpostsintheprivate
sectorplusexpatriation allowances.
6.TYPEOPCQNTROLTOBEAPPLIED
Therulesforfinancialcontrolwillbethoseprovidedbythefinancial
regulationof25April1973»
PART2:ADDITIONAL DATATOBEPROVIDEDFORANEWPROJECT(*)
7.OVERALLCOSTOFTHEPROJECTFORTHEWHOLEOFITSEXPECTEDDURATION
TheAgency'soperatingcostsduringthefirstyearwillbe1,050,000u.a.
Itsoperationswilltrontinuethereafterwithoutitbeingpossibletoestimate
theoverallcost.
8.INFORMATION REGARDING STAFFING ANDTHEAPPROPRIATIONS FORADMINI52PATIV5
EXPENDITURE NECESSARY FORTHEIMPLEMENTATION OFTHEPROJECT
Theprojectwillbeimplementedwithoutaffectingthepresentstaffing
oftheCommission anddoesnotnecessitate additionaladministrative
expenditurefortheCommission.
9.PROJECTFINANCEDFROM
TheBudgetoftheEuropeanCommunities.
Th9CommissionDecisionof28November1973onnewbudgetproceduresmentions
theneedtodrawupa"financialmemorandum"foreachnewprojectconsisting
ofthetwopartsofthisfinancialrecord.
IH